Mr Old Man Payment Q&A SURRENDERED BILL OF LADING By Mr Old Man Posted on March 6, 2010 5 min read 24 0 6,771 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUERY FROM LINH DAN Thank you for answering my rather… annoying question the other day! I have another question. Recently, a customer submitted documents for payment by TTR, but the B/L was neither an original nor marked as a copy. On the B/L, there was also a note stating: “NO ORIGINAL B/L ISSUED. ORIGINAL B/L SURRENDERED IN SINGAPORE.” I don’t quite understand: What is this type of B/L called? Why would no original B/L be issued, and in what situations is this type of B/L used? Could you please help me with this? Thank you very, very much! Linh Dan _____ COMMENT FROM MR. OLD MAN Hi, In your situation, the word “surrender” means “presented.” The note on the B/L can be understood as: “NO ORIGINAL BILL OF LADING ISSUED. ORIGINAL BILL OF LADING HAS BEEN PRESENTED IN SINGAPORE.” When the shipper presents the original B/L to the carrier or its agent, the document is referred to as a Surrendered B/L. The carrier will then send a message to its counterpart or agent at the port of discharge confirming that the original B/L has been presented, and instructing them to issue a Delivery Order without requiring the original B/L. The consignee can therefore take delivery of the goods without presenting any original B/L. In short, Surrendered B/Ls or Express B/Ls allow the consignee to receive the goods using a copy of the B/L, without presenting the original. Because this arrangement enables faster cargo release, it can help importers avoid demurrage charges. Such B/Ls are often issued at the request of the importer. In L/C transactions, however, issuing banks usually do not accept this type of B/L, as the bank would lose control over the goods. For your reference, please see the message below, which illustrates a typical surrender notice: FROM: EM SHIPPING SDN BHD LEVEL 9, MENARA LIEN HOE, NO 8 PERSIARAN TROPICANA, TROPICANA GOLF & COUNTRY RESORT, 47410 PETALING JAYA, SELANGOR DARUL EHSAN, MALAYSIA. TO: HUB MARINE VIETNAM CO., LTD 6TH FLOOR, NGU PHUC BUILDING, NO. 7 – LOT 3B, LE HONG PHONG STREET, HAIPHONG, VIETNAM ATTN: IMPORT DEPARTMENT RE: CONTAINER RELEASE Vessel: HUB STELLAR Voyage: No. HS074N ETA: 07-02-2010 B/L No.: PKGHPH10020760 Date of Surrender: 10-02-2010 Shipper: AXIS CARRIERS SDN BHD Consignee: R.L.G (VIETNAM) CO., LTD Freight Term: FREIGHT PREPAID Remark: FULL SET OF ORIGINAL B/L HAS BEEN SURRENDERED AT PKG. Total Units: 2 × 40FR Container No.: HSBU2800041, HSBU2800083 UPON SETTLEMENT OF ALL CHARGES DUE AT YOUR DISCHARGE PORT, PLEASE RELEASE DELIVERY ORDER (D/O) TO THE CONSIGNEE WITHOUT PRESENTATION OF ORIGINAL B/L AS IT HAD BEEN SURRENDERED IN PORT KLANG, MALAYSIA. I hope this clarifies your concern. Best regards, Mr. Old Man