Transport Documents used in International Trade
2. Airway Bill
This is the second type of Transport document after Bill of Lading. Airway Bill is an acknowledgement issued by an airline company or their authorized agents (and not forwarding agents) stating that they have received the goods detailed therein (number of packages, quantity and nature of goods) for dispatch by auto the named consignee at the address stated therein. Unlike a B/L, Airway Bill is not a document titled to goods because it is merely an acknowledgement of goods. When it is not a title of goods, naturally it is not a negotiable document.
Since an Airway Bill is not a document of title to the goods, it is not necessary for a consignee to process the AWB for taking delivery of goods. Thus, for shippers the AWB is not as safe a document as a B/L. Further, in case of Airway Bill it is obligatory on the part of airlines to notify the consignee on arrival of goods and they will normally deliver the goods to the consignee or his order on proper identification.
- Air Consignment Note: It is otherwise known as Air Receipt. Forwarding agents issue this generally. This document shows the departure and the destination stations as well as the name of the shipper and the addressee. It must also indicate the forwarding station and date stamp. This document also gives the description of goods etc. and their apparent good order and condition (or otherwise).
- House Airway Bill: House Airway Bill is a receipt for goods issued on the same lines as Airway Bill by cargo consolidating agents. When air cargo is shipped under consolidation, the airline company issues an Airway Bill called Master Airway Bill to the consolidating cargo agent and he in turn issues his own House Airway Bills to individual shippers. Thus, House Airway Bill is a receipt for goods issued not by the actual carriers or their agents but an intermediary cargo-consolidating agent. A House Airway Bill is not safe as a document as an Airway Bill. In case the consolidating agents fail to pay the freight, the carriers will have the right over the goods and the holder of House Airway will not get his goods.
3. Postal Receipt
The third type of transport document, as the name indicates, is a receipt issued by postal authorities. It can be a Sea Mail receipt or an Airmail receipt depending upon the mode by which they are sent. Postal receipt is also an acknowledgement of receipt of goods for delivery to a named consignee, hence it is not a document of title to goods nor is it a negotiable instrument. Though the postal receipt is not a must for taking delivery of goods, in certain countries a receipt must be shown to the Customs and postal authorities for clearance and delivery. Postal regulations in certain countries allow senders to issue and authenticate their own certificate of posting. Considering all these, it is not considered a safe document from the banker’s point of view.
4. Courier / Expected Delivery Service
Another transport document is, it is a courier/Service document that evidences receipt of goods for delivery and should appear on its face to indicate the name of the courier/service and should be stamped/signed or otherwise authenticated by such courier/service. This document should also indicate the date of pick-up or receipt. If no name of courier/service is stated in the letter of credit, the bank can accept the document issued by any courier/service.
5. Multimodal Transport Document
This document is issued when the movements of goods involve more than one mode of transport. Hence, this is also called as “intermobile transport document (ITD)” or “Combined Transport Document (CTD)”. In simple words it is defined as a document evidencing contract for performance and procurement of performance of combined transport. Thus, in a multimodal transport document the carriers (called as Multimodal Transport Operators (MTO)) take the liability for safe conduct of transport of goods by various modes of transport from the place of receipt of goods to the place of delivery. In most respects it has the characteristics of a Bill of Lading. It is a document evidencing receipt of goods and not shipment on board. It is also a negotiable document and issued in sets. MTD is a safe document than a Through Bill of Lading (which serves the same practical purpose) in the sense, that it has the guarantee of M.T.O. for the safe conduct of goods right through.
Credit: International Trade-MGU MBA
Pages: Page 1 Page 2
Website Search
- Posts You May Have Missed
- History of Commodity Futures
- Corporate Restructuring at Arvind Mills
- Tandon Committee Report on Working Capital: Norms and Recommendations
- Inventory Control: Benefits of Holding Inventories
- Case Study on Corporate Governance: UTI Scam
- Importance of International HRM
- Cross-Cultural Decision Making
- The macroeconomic environment in marketing
- Strategic Control and Operational Control
- Foreign Institutional Investors (FII’s) and Indian economy
