What is a Switch Bill of Lading? (2024)

Much can change in the process of sending goods from one place to another. Corrections or changes to the original bill of lading require the issuance of another set with the correct data through a replacement bill of lading.

While there are very minor changes to the original bill of lading, there may be other changes that require a new set to be issued.

These include changes to the port of discharge, the buyer or consignee, a product description that includes full product information, or certain specifications or trade terms. Any of these prearranged items may be changed during the shipment of the goods.

Shippers sometimes request a bill of lading change to hide the name of the actual seller or even mislead the buyer as to the actual country of origin of the shipment. While not very ethical, some shippers do this for a variety of reasons.

A bill of lading for change cannot be issued while the original kit is in use or the buyer has already taken delivery.

The first set of the original bill of lading must be returned to the issuing shipping company with a signed and stamped request from the party authorized to request the change, which in most cases will be the original shipper. This request must be confirmed by the consent and permission of the buyer in writing.

After the issuance of a replacement bill of lading, the first set ceases to be part of the shipping documents for a particular lot. The most important thing here is that there can never be two different sets of bills of lading for the same cargo.

Global trade and transportation of goods is a dynamic area that is undergoing continuous transformation. Buyers and sellers negotiate the best deals and terms for their goods.

Certain conditions relating to goods that have been sold to the buyer and brought on board the vessel to its destination may be changed during its voyage. In such cases, the original terms of trade between the seller and the buyer, stated in the original bill of lading, must be changed.

Parties to a trade agreement may sometimes agree to change the original port of discharge for reasons beneficial to both parties. Sometimes, to correct an error or add additional information for customs clearance purposes, it may be necessary to change the product description. This is done primarily to meet legal or government import requirements.

It is also common practice to sell goods in transit to another buyer. In all of the above cases, the original bill of lading must be amended to reflect the new information.

Clearance of cargo at the port of destination may be disrupted if the original bill of lading is retained and submitted for clearance. In most cases, the bill of lading will have to be replaced with a new set, which will contain all the corrected details. A replacement bill of lading issued subsequently will contain the correct and amended details to facilitate customs clearance of the cargo at the new port of destination by the rightful buyer.

What is a Switch Bill of Lading? (2024)
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