Import and export: how to protect against non-payment using the bill of lading
International trade opens doors to new business opportunities, but it also involves financial risks, especially in export and import transactions. A key tool to protect against the risk of non-payment is the bill of lading, an essential document in maritime transport operations. This article explores its importance, how to use it to mitigate risks, and ensure collection for the goods.
What is the bill of lading and why is it important?
The bill of lading is a legal document issued by the carrier to the exporter, which fulfills three main functions:
- Title of ownership: Establishes who has the right to claim the goods at destination.
- Transport contract: Details the conditions of carriage between the shipper and the carrier.
- Receipt of goods: Confirms that the goods have been delivered to the carrier in good condition.
In the context of international collection, this document is vital because it can act as a control tool. As long as the importer does not make the agreed payment, the exporter can retain the bill of lading, preventing the buyer from accessing the goods.
Risks in international trade related to payment
- Non-payment by the buyer: This can occur due to insolvency, commercial disputes, or fraud.
- Premature release of goods: If the carrier delivers the cargo without requiring the original bill of lading, the exporter loses control over the goods.
- Differences in the quality or quantity of the goods: Claims may arise that delay payment.
Strategies to protect yourself using the bill of lading
- Negotiation with clear terms: Make sure that the international sales contract specifies that the bill of lading will be released only upon full payment or fulfillment of pre-established conditions.
- Use of letters of credit (L/C): Letters of credit are a secure financial mechanism that links payment to the presentation of documents, including the bill of lading. This ensures that the exporter receives payment before the buyer accesses the goods.
- Monitoring the transport: It is important to maintain constant communication with the carrier to ensure that the goods are not released without the presentation of the original bill of lading.
- Hiring credit insurance: Credit insurance covers the risk of non-payment in international transactions, protecting the exporter even in the event of the buyer’s insolvency.
Practical recommendations for exporters
- Keep the original bill of lading: Do not deliver the document to the buyer until payment has been confirmed or the agreed terms have been met.
- Check the buyer’s creditworthiness: Before closing a transaction, assess the importer’s ability to pay through credit reports.
- Work with reliable agents: Collaborate with carriers, freight forwarders, and banks of proven reputation.
Legal aspects in colombia related to the bill of lading
In Colombia, the bill of lading is regulated by international trade and maritime law regulations. In the event of a dispute, this document is considered key evidence in legal proceedings. If a foreign buyer defaults on payment, the exporter can:
- Exercise their right over the goods: As long as they keep the bill of lading, they can block the release of the cargo.
- Resort to international mediation or arbitration: These are agile alternatives to resolve disputes without the need to litigate.
Conclusion
The bill of lading is more than a technical document; it is an essential tool to protect the interests of exporters and importers in international trade. Its proper use, combined with other preventive measures such as letters of credit and credit insurance, can significantly reduce the risks of non-payment. At Trébol Jurídico, we offer specialized services in international collection to help you secure your transactions and recover portfolio effectively.
Contact us to protect your business interests in Colombia and Latin America!