The following article will be analyzed more carefully by the Import-Export and Logistics expert at Le Anh Import-Export about the Sea Way bill, functions, and business processes when using Sea way bill, notes. when using this transport document,…

Viewing: What is Swb

The Sea Way bill is also a transport document that the shipping company issues to the shipper after he or she completes the delivery of the goods. The basic content of a Sea Way bill is the same as a bill of lading. But the biggest difference between these two documents lies in their function.

If the bill of lading has three functions: document of ownership of goods, proof of charter party and a delivery receipt; Sea Way bill does not have the function of document of ownership of goods. Therefore an original SWB is also non-transferable. Sea Way bill contains the name of the consignee and only this person can receive the goods regardless of whether this person can present the original SWB, just prove that he is a genuine consignee by presenting the delivery notice. .

Because of this nature, when paying by L/C, very few banks accept the transport document as a Sea Way bill. The nature of SWB is usually to name the consignee as the importer, the importer does not need the confirmation/authorization of the bank/does not need the shipment documents that the bank is holding in hand can also pick up the goods. at the shipping company. The bank has no way to control the importer/do not allow the importer to pick up the goods if this person has not previously made a 100% deposit to open the L/C. This situation is very risky for the bank, so they do not accept the use of Sea Way bill.

However, there are also a few L/Cs that allow the use of a Sea Way bill, but usually, the importer must deposit 100% of the goods when requesting to open the L/C.

Surrundered B/L has two use cases as analyzed: one is to issue the original B/L but then because the documents arrive slowly, it will surrender to get the goods quickly; the second is the decision to use Surrendered B/L from the start, not to issue the original B/L. And Sea Way bill is not used for the first case, but only for the second case. Does that mean:

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If the original B/L is used initially. After that, if you want to receive goods quickly, you can only request to surrender the original B/L. The Sea Way bill does not appear. If initially decided not to use the original B/L, you can choose between the Surrendered B/L or the Sea Way bill.

Business process if using Sea Way bill:

The exporter delivers the goods to the shipping line and requires the use of the Sea Way bill, does not issue the original B/L; The shipping company will issue a SWB to deliver to the exporter to prove receipt of the exporter’s goods. Immediately after the ship runs. , the leading shipping line informs the importing shipping line about the use of SWB. The shipment was then considered to have been released. This action is carried out by the two-head shipping lines office on the same internal electronic system.

This drop-off takes place on the electronic system, so it is also called the E-B/L (Electronic B/L) form. Dropping goods takes place very quickly, so it is also called Express Bill.

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The shipping company let the goods go. The goods arrive at the port of destination. Whether the exporter sends/or does not need to send this SWB to the importer when sending the shipment documents. (Just send the soft copy so that the importer can be assured that the goods have been delivered to the ship) The importer comes to the office of the leading shipping company to present the Incoming Shipment Notice + and the company introduction letter to get the goods. (no hardcopy SWB required)

If so, it is too risky for the exporter if the importer has not paid/paid in full. Because if using the Sea Way bill, according to the principle, the shipping company will automatically release the goods without waiting for the confirmation of the exporter.

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Therefore, the exporter must work closely with the exporting shipping company: the goods can only be released upon confirmation of the exporter. Several shipping lines agreed to accept this offer. But a few shipping lines are very rigid and strictly follow the principle of “dropping goods without anyone confirming” above. At this time, exporters are very risky. If this is the case, the exporter should switch to using Surrendered B/L (the shipping line only releases the goods when there is a Release order/confirmation from the exporter).

Especially, in case the importer is a charterer (according to Incoterms groups E, F), even though the exporter has agreed in advance with the shipping line “When the exporter confirms/orders, he/she can release the carrier” + “The carrier will be released” the ship agrees to this”, then the importer will force the shipping company/use his soft power/relationship with the shipping line to request the shipping line to follow the principle of Sea Way bill and release the goods to the importer if the importer present the correct documents proving that the importer is Consignee (even though the goods have not been paid to the exporter). The NK is absolutely right in this. Thus, the risk is in favor of the exporter. To minimize this risk, exporters should win the right to charter ships, giving their voice before shipping lines more weight.

But regardless of who charters the ship and how, the writer wants to repeat, using the Sea Way bill means that after the exporter has delivered the goods to the shipping company, the goods have been released to the importer – the exporter cannot claim back. the goods are received – cannot be detained when the goods arrive at the port of destination – the goods are in the possession of the shipping line – the ownership has been transferred to the importer as soon as the goods are delivered to the shipping company.

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Because of the risks mentioned above, Sea Way bill is only used when:

The importer with the exporter has a relationship between a parent company/subsidiary or a close and reliable customer; the importer has paid the goods in advance; The exporter for late payment; the amount in the contract is small… Both parties want to save costs, do not need to issue the original B/L; Importers usually do not need to transfer the shipment with documents (SWB is not transferable)

The cost of using a Sea Way bill is cheap (there are shipping lines that do not charge) because the printing of the terms in very small letters on the back (like the style of a B/L) is replaced by a reference to the conditions, shipping regulations on the front in a brief provision. Shipping lines only issue one original SWB while must issue at least one set of 3 originals if B/L is used.

Some countries in the Middle East, South Asia … have the custom not to use Sea Way bill.

SWB is a type of identity document, it only allows delivery to a single person when they prove they are the legal consignee. It allows the parties involved to reduce the risk in the delivery of goods, and, since the Sea Way bill is not a document of ownership/value, it is not a risk to be lost.

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Hopefully the above analysis will be useful to those of you who are working on Sea Way bill, and apply it more effectively. The article was analyzed under the advice of experts at the training center for practical import-export courses, Le Anh.

You need to learn more about the types of bills of lading to serve your work at import-export and Logistics enterprises, you can join the Import-Export Course for the uninitiated at Le Anh Import-Export. The course is taught by a team of experts in the field of import-export and Logistics who are working at large domestic and international import-export and logistics enterprises. accounting apprenticeship