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Is telex release B/L safe?

Feb 19, 2024|View:12

We all know that ocean bill of lading is a proof of title. With ocean bills of lading in hand, the risk of releasing goods without bills of lading will be relatively low.

However, with the rapid development of the international container transportation industry, more and more bills of lading arrive later than the goods, especially in the inshore route, this phenomenon is more common.

Telex release bill of lading comes into being, it has the advantages of fast, simple and cost saving, so it is widely used in the actual business of international trade activities. But it has advantages and risks.

First, what is telex release?

Telex release is different from the traditional delivery of goods by the original bill of lading. Telex release means that after the goods are loaded on the ship and shipped, the guest requires and issues a letter of guarantee. On the premise of not issuing the original bill of lading or taking back all the original bills of lading already issued, the carrier notifying its agent at the port of destination by E-mail, fax or telegram, and delivers the transported goods to the consignees designated by the shiver. Under telex release, the carrier does not issue the original bill of lading, but usually issues a copy of the bill of lading or a copy of the bill of lading.

It is worth noting that before telex release, the customer must obtain the written application of the letter of guarantee! This is the basis for future verification of problems and the proof of the shipping company's exemption from liability.

Second, telex release process

After the original bill of lading or the full set of bills of lading is not signed, the shipowner (shipping company) or his agent (freight forwarding company) issues an entrusting application and guarantee letter to the shipowner (shipping company) or his agent (freight forwarding company), the shipowner (shipping company) or his agent (freight forwarding company) shall notify the agent at the port of destination by E-mail, fax, telegram, etc., which goods (bill of lading number) need to be telex released instead of taking delivery with the original bill of lading.

The advantages of telex release of B/L

1. Improve customs clearance speed

Since it is telex release bill of lading, the speed is naturally faster than mail. Generally, it will not delay the timely customs clearance of goods, which can avoid the occurrence of backlogs and port stacking of goods, reduce the cost of port and storage, and then reduce the transportation cost of consignees and conshipers.

2. Avoid losing documents

At present, the sea bill of lading is basically three correct, and it is often lost or defective in the process of mailing, but telex release bill of lading does not have such a problem, which is conducive to the consignees to take delivery of goods quickly.

Risks and prevention of telex release of bill of lading

1.Risk

Telex release bill of lading has the advantages of fast, simple and cost saving, but it should be noted that because telex release bill of lading is only a copy or photocopy of the bill of lading, it has no real right effect, and also provides the possibility for the consignees to cheat. If the consignor uses the method of telex release before payment, it is very likely that the consignees will refuse to pay the goods. Therefore, it is very important to use telex release bill of lading correctly, otherwise it will cause serious losses.

The risk to the consignee is relatively small. However, since in the case of "telex release", the carrier will accept the instructions of the shipper (consignor) to determine the consignee (except for registered bill of lading), and the name of the consignee may be changed before the consignee takes delivery of the goods. In addition, in the case of "telex release", the consignee also cannot obtain the bill of lading. When there is a dispute, the consignee may not be able to safeguard his own rights and interests because he cannot get the bill of lading.

2.Prevention

1) The consignor should carefully understand the credit status and financial status of the importer and apply for telex release selectively.

2) Under L/C settlement, if the goods arrive at the port of destination before the documents, and the consigessor wants to take delivery of the goods first, the delivery can be carried out by bank guarantee. In the actual business, telex release bill of lading and telegraphic transfer (T/T) settlement method can be combined to minimize the risk.

3) When signing the contract, the terms of CIF and CRF shall be adopted as far as possible, and the exporter shall arrange to charter the ship and book the space.

4) In the case of freight forwarder bill of lading, if the exporter wants to do telex release, it should try to choose a large domestic company with good reputation, strong strength and standard operation as the agent.

5) For the consideration of goods rights, it is suggested that the consignment try not to choose telex release before receiving the full payment.

6) The consignees also need to consider the consignment more, to avoid the situation that the payment has been paid and the telex release is refused.

5. Not suitable for telex release

Not all countries can accept telex release. For example, South American countries such as Cuba, Venezuela, Brazil, Chile and Costa Rica all require the original, and some also need to provide CO/FORM F and other certificates.

In addition, telex release is not possible for indicative B/L or blank B/L.

Specifically whether telex release of B/L can be supported, it is suggested to confirm and communicate with the consignees/forwarders before operation, so as to avoid unnecessary losses and delay the speed of import and export.

PS: The concept of telex release bill of lading, telex release letter of guarantee and COPY of bill of lading

1. Telex release of B/L

The concept of TELEX release will not be repeated, the surface of the telex release bill of lading will display the words telex release: TELEX RELEASED or B/L SURRENDED.

2. Telex release letter of guarantee

Before telex release, the shipper needs to submit a telex release guarantee to the carrier: the general content is to indicate the name of the ship, voyage, bill of lading number of the goods under the request of the shipper to do telex release, especially to indicate the details of the consignee, consistent with the actual consignee, the liability caused by this shall be borne by the shipper and so on.

3. COPY of bill of lading

Generally, it is the scanned copy of the original bill of lading, which does not have the effect of delivery, but is only the delivery certificate for the customer. After the real telex release, the COPY of the telex release bill of lading will be sent to the customer, and the customer can pick up the goods by the COPY.