A S/D B/L is a payment document that combines a sight draft and a bill of lading. It is used in international trade to ensure payment before goods are released to the buyer. A draft is an order to pay money, similar to a check. There are different types of drafts, including clean drafts and time drafts. Draft can also refer to military enlistment or the act of writing or composing something.
S/D B/L, which stands for Sight draft with bill of lading attached, is a type of draft that involves an unconditional written order. The order is signed by the drawer, who directs the drawee or payor to pay a specific amount of money to a third person or bearer on demand or at a specific time. In this case, the sight draft is attached to a bill of lading, which serves as proof of shipment and receipt of goods. When the sight draft is attached to the bill of lading, it means that payment is required upon the delivery of the goods.
For example, let’s consider a scenario where an exporter in the United States ships goods to a buyer in China. The exporter attaches a sight draft with bill of lading attached to the shipping documents and sends them to the buyer’s bank. The buyer’s bank will only release the shipping documents to the buyer once they pay the specified amount in the sight draft. Once the buyer makes the payment, they can take possession of the goods.
This example demonstrates how S/D B/L works in international trade. It provides security for the exporter, ensuring that they receive payment before the buyer takes possession of the goods. At the same time, it also provides security for the buyer, guaranteeing that they will receive the goods they have paid for.
S/D B/L stands for “Shipped on Board Bill of Lading.” It is a document issued by a carrier or their agent to acknowledge that goods have been loaded on board a vessel for shipment.
The purpose of a S/D B/L is to provide evidence that the goods have been loaded on board the vessel, which is crucial for the transfer of ownership and the payment of goods.
The S/D B/L is typically issued by the carrier or their agent, such as a shipping line or freight forwarder.
The S/D B/L contains details about the shipment, including the shipper and consignee’s names and addresses, a description of the goods, the vessel’s name, the port of loading and discharge, and any special instructions or conditions.
Yes, the S/D B/L can be transferred to another party through an endorsement or assignment. This allows the new party to take ownership of the goods and exercise the rights and obligations associated with the shipment.
If the S/D B/L is lost or misplaced, it can cause delays and complications in the shipment process. It is important to notify the carrier or their agent immediately to initiate the necessary procedures for reissuing or replacing the document.
Yes, the S/D B/L can be amended or corrected if there are errors or changes needed. However, any amendments or corrections should be done in accordance with the carrier’s policies and procedures.
If the goods are damaged or lost during shipment, the S/D B/L plays a crucial role in determining liability and initiating any necessary claims. It is important to carefully review the terms and conditions stated in the S/D B/L to understand the carrier’s liability and the procedures for filing a claim.
In some cases, the S/D B/L can be used as a negotiable instrument, especially if it is made “to order” or “to bearer.” This allows the document to be transferred and used as a form of payment or security in international trade transactions.
Yes, the issuance of a S/D B/L is subject to various legal requirements, including compliance with international conventions, local laws, and the terms and conditions agreed upon between the parties involved. It is important to consult with legal professionals or experts in international trade to ensure compliance and avoid any legal issues.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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