Asforeign tradeNewcomer, you might be confused about the Bill of Lading Copy sent by the freight forwarder. Simply put, a bill of lading copy is a draft version of the bill of lading, with identical content to the original but no legal validity. Its main purpose is to allow you to verify information in advance, such as cargo description, consignee, shipping schedule, etc., ensuring no errors. After confirmation, the freight forwarder will issue the stamped original bill of lading, which is the legally binding document.

In practice, the bill of lading copy is very useful. You can send it to the client for their review to avoid future issues. If the payment terms are final payment after shipment but before arrival, sending the bill of lading copy to the client for payment reminder is acceptable—clients usually cooperate to settle the payment upon seeing the copy, knowing the goods are already on board.

A Telex Release Bill of Lading is issued electronically, eliminating the need for physical document delivery. The freight forwarder or shipping company will notify the destination port via email or system to confirm cargo release. Compared to the original bill of lading, telex release is faster.

When to use telex release?

• The client urgently needs to pick up the goods, and sending the original bill of lading is too slow.
• Both parties have high trust and are willing to simplify the process.
• The final payment has been settled, and there are no disputes over cargo ownership.

Telex release steps:

1. You apply for telex release with the freight forwarder.
2. After confirmation, the freight forwarder notifies the destination port to release the cargo.
3. The client picks up the goods with the telex release notice and identification.

Key reminders: Once telex release is issued, you relinquish cargo ownership. Therefore,Never apply for telex release before receiving the final payment, or you may face the awkward situation of losing both the goods and the payment!

The shipping process might seem confusing for newcomers, but its simple when broken down. Below is the complete FOB-based process:

1. Receive PO, request deposit

• The client places a purchase order (PO), and you send a proforma invoice (PI) to confirm details.
• Request the client to pay the deposit (usually 30%), and notify the factory to start production upon receipt.

2. Goods ready, contact freight forwarder

• When the goods are nearing completion, notify the freight forwarder to book shipping space.
• Provide details like quantity, volume, gross weight, HS code, etc., and the freight forwarder will arrange the shipping schedule.

3. Booking confirmed, arrangeTrailer

• The freight forwarder sends a booking confirmation, including the bill of lading number.
• You can arrange your own trucking or let the freight forwarder handle it to pick up an empty container from the port.

4. Loading and customs declaration

• Load the goods into the container, take photos for records, and fill out the packing list.
• Prepare customs documents (packing list, invoice, declaration elements, etc.) and submit them to the customs broker.
• The freight forwarder will send you the bill of lading copy for verification.

5. Ship sails, request final payment

• After the ship departs, the freight forwarder issues the bill of lading (original or telex release).
• Send the bill of lading copy, contract, packing list, and commercial invoice to the client to request the final payment.

6. Client picks up the goods

• The customer picks up the goods with the original bill of lading or telex release notice.

Regarding the bill of lading time: After the ship sails, the bill of lading is usually issued within a few days. Confirm with the freight forwarder for specifics. If the ship has already sailed, sending the bill of lading copy and customs clearance documents to urge the final payment is completely fine.

FOB (Free on Board) is the trade term you are currently operating under. The customer will find a freight forwarder at the destination port, and this freight forwarder will contact the designated freight forwarder in China to coordinate with you.

Your responsibilities:

• Send the Booking Order to the designated freight forwarder and provide cargo information.
• Confirm the shipping schedule, arrange trucking and customs clearance.
• After container loading, prepare customs clearance documents and verify the bill of lading copy.

Division of labor between freight forwarders and customs brokers:

• Designated freight forwarder: Book shipping space, issue cargo loading notice, and issue the bill of lading.
• Customs Broker: Handle customs clearance, requiring your packing list, invoice, and other documents.

Fee reminder: Trucking fees, customs clearance fees, etc., will be invoiced to you by the freight forwarder or customs broker. Remember to verify them carefully to avoid unnecessary expenses.

Its normal to feel nervous when operating for the first time, but by asking the freight forwarder more questions and verifying details, youll quickly get the hang of it. Freight forwarders and customs brokers are your good helpers—dont hesitate to trouble them!