Now that we are in the digital age and electronic bills of lading are gradually replacing the old paper bills, you may be wondering how this affects you legally, with regard to responsibility and legal title to the goods. In days gone by, many shippers and consignees took assurance that the piece of paper they held in their hand gave them title to the shipment.
Just like paper bills of lading, eBLs facilitate the electronic transfer of ownership and information within the supply chain, streamlining the process and reducing paperwork. Like a traditional paper bill, an eBL serves as a document of title, meaning the holder has the right to claim the goods, or arrange for the transfer of ownership to another party by endorsing or transferring the document.
The bill of lading provides proof of the goods’ ownership as they travel. It’s also used to transfer the ownership of those goods to the recipient upon delivery. The contract of sale will generally set out the responsibilities of each party to the commercial transaction, and usually identifies the person who is responsible for paying duties and taxes. This is done through the use of the relevant “Incoterm.”
Who is an owner under the Customs Act?
It must be mentioned that the Australian Border Force (ABF) has their own definition of “Owner.” According to the Customs Act (1901) the responsibility of making an import declaration and payment of duty, rests with the “owner” as defined in Section 4 of the Act which says:
“Owner ” in respect of goods includes any person (other than an officer of Customs) being or holding himself or herself out to be the owner, importer, exporter, consignee, agent, or person possessed of, or beneficially interested in, or having any control of, or power of disposition over the goods.”
This means that most parties participating in an import or export supply chain, including licensed customs brokers, may be considered the “Owner” for the purposes of Customs Act. This is particularly relevant to importations where the goods are sold under the “Delivered Duty Paid” (DDP) type of transaction.
Bill of lading vs Sea Waybill
If you’re transporting goods via shipping lines, you might come across the words “Sea Waybill.” These documents are used as an alternative to the bill of lading. The differences are that a sea waybill cannot serve as the document of title and is non-negotiable.
While you might not ordinarily give too much thought to bills of lading, questions of legal ownership will arise when your cargo is lost or damaged, subject to general average or any type of insurance claim while in transit.
Colless Young offers you professional advice on bills of lading and all other necessary shipping documentation. For more information, contact Andrew, email enq@collessyoung.com.au Tel: +61 7 3890 0800.
