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Unit 13 Text A Bill of lading

A bill of lading is document issued by a carrier to a shipper, signed by the captain, agent, or owner of a vessel, and stating the conditions in which the goods were delivered to (and received by) the ship; and an engagement to deliver goods at the prescribed port of destination to the lawful holder of the bill of lading. A bill of lading is, therefore, both a receipt for merchandise and a contract to deliver it as freight. It is a document of title to the goods, enabling the shipper or owner of the goods to endorse title to other parties, sell goods in transit, and Present to banks with other documents in seeking payment under documentary credits. Abbreviated generally as B/L, it is the most important document for sea transport. There are a number of different types of bills of lading. Shipped (On Board) B/L and received for shipment B/L Shipped B/L is issued by the shipping company after the goods are actually shipped on board the designated vessel. Since shipped bill of lading provides better guarantee for the consignee to receive the cargo at the destination, the importer will normally require the exporter to produce shipped B/L and most bill of lading forms are preprinted as "Shipped Bill". Received for Shipment B/L arises where the word "shipped" does not appear on the bill of lading. It merely confirms that the goods have been handed over to, and are in the custody of the shipowner. The buyer under a CIF contract will not accept such a B/L because, in the absence of the date ofshipment, he is in no position to anticipate the arrival of the consignment. Clean B/L and unclean B/L A clean bill of lading is a bill of lading where the carrier has noted that the merchandise has been received in apparent good condition (no apparent damage, loss, etc.) and which does not bear such notations as "Shipper's Load and Count". If defects are found on the exteriors of the goods, or the shipping company does not agree to any of the statements in the B/L, the bill will be marked as "unclean", "foul" or "... packages in damaged condition". Unclean B/L is usually unacceptable to the buyer and banks. Straight, blank and order B/L A Straight bill of lading indicates that the shipper will deliver the goods to the consignee. The document itself does not give title to the goods (non-negotiable). The consignee need only identify himself to claim the goods. A straight bill of lading is often used when payment for the goods has been made in advance. Blank B/L also called Open B/L or Bearer B/L, means that there is no definite consignee of the goods. There usually appear in the box of consignee words like "To bearer". Anyone who holds the bill is entitled to the goods the bill represents. No endorsement is needed for the transfer of the blank bill. Due to the exceedingly high risk involved, this bill is rarely used. Order B/L, or Shipper's Order B/L is widely used in international trade. A Shipper's Order Bill of Lading is a title document to the goods, issued "to the

order of" a party usually the shipper, whose endorsement is required to effect its negotiation. Because it is negotiable, a shipper's order B/L can be bought, sold, or traded while goods are in transit and is commonly used for letter-of credit transaction. The buyer usually needs the original or a copy as proof of ownership to take possession of the goods. Direct, transshipment, through bill of lading Direct B/L means that the goods are shipped from the port of loading direct to the port of destination without involving transshipment. Transshipment B/L means that the goods need to be transshipped at an intermediate port as there is no direct service between the shipment port and the destination port. It is sometimes necessary to employ two or more carriers to get the goods to their final destination. In this case, usually the first carrier will sign and issue a through bill of lading. The on-carriage may be either by a second vessel or by a different form of transport. Liner B/L, container B/L and combined transport B/L Liner bill of lading is issued by a liner company for shipment on scheduled port calls through scheduled routes. Container B/L is becoming more common in use with the development of containerization. It covers the goods from port to port or from inland point of departure to inland point of destination. Combined transport B/L is issued by combined transport operator that covers the multi--modal transport on a door-to-door basis in one contract of carriage. It is ideal for container movements. It differs from "through B/L" in that combined transport is operated by only one carrier. Long form and short form B/L Long form B/L is more detailed with shipping contract clause printed on the back of the page. Short form B/L, as the name implies, is an abbreviated type of document, smaller and not containing the long list of detailed clauses that generally appear on bills of lading. In certain circumstances it may not, therefore, be considered a suitable form of evidence of contract or of freight. On Deck B/L, stale B/L, ante-dated B/L and advanced B/L On Deck B/L is issued when the cargo is loaded on the ship's deck. It applies to goods like livestock, plans, dangerous cargo, or awkwardly-shaped goods that can not fit into the ship's holds. In this case, the goods are exposed to greater risks and therefore usually specific insurance must be taken out against additional risks. It is important that the Bill of Lading is available at the port of destination before the goods arrive or, failing this, at the same time. Bills presented to the consignee or buyer or his bank after the goods are due at the port of destination are described as "Stale B/L". As a cargo cannot be collected by the buyer without the Bill of Lading, the late arrival of this all-important document may have undesirable consequences such as warehouse rent, etc. and therefore should be avoided. Sometimes especially in the case of short sea voyages, it is necessary to add a

clause of "Stale B/L is acceptable". Ante-dated B/L means when the actual shipment date is later than that stipulated in the L/C, the carrier sometimes, at the shipper's request, issues a B/L with a date of signature that suits the requirement so as to avoid non-acceptance by the bank. Due to the risk of the goods being rejected by the buyer arising from the issuance of such a bill, it is advisable to avoid this mal practice even when it seems necessary in certain circumstances. Advanced B/L is issued when the expiry date of the L/C is due but the exporter hasn't yet got the goods ready for shipment. The purpose of issuing such a bill is to negotiate payment with the bank in time within the validity of the L/C. It is also regarded as unlawful and risky and should be avoided Still there are some other types of B/L such as Groupage B/L which covers a number of consignments from different shippers, and House B/L issued by a freight forwarder to each individual shipper. House B/L is issued by the freight forwarder before he gets one groupage B/L from the shipowner All the above mentioned bills are not independent of each other. Several types may be combined into one like "Clean on board, to order, blank endorsed B/L". A received for shipment bill may also be a straight and clean bill. Bills of lading are made out in sets, consisting of a number of originals (usually three) and a number of copies and marked "original" and "copy" respectively. Only the originals signed by the carrier enable the consignee to take delivery of the goods. The copies are just for reference.

Exercises
IMatch Column A with Column B. A 1. custody 2. consignment 3. notation 4. defect 5. box 6. bearer 7. empoy 8. liner 9. antedate 10. malpractice B a. a quantity of goods that are sent or delivered somewhere b. a fault or imperfection in a person or thing c. a large passenger or cargo ship traveling on a regular route d. put an earlier date on (a document, letter, etc) than the one at the time of writing e. to use sth such as a skill, method etc. for a particular purpose f. the legal right or duty to take care of or keep sb/sth g. an agreement for the hire of a ship for a particular voyage or period of time h. careless, illegal or unethical behaviour by sb in a professional or official position i. a small square or rectangle drawn on a page for people to write information in j. a system of signs or symbols used to represent information

II. Complete the following sentences with the appropriate form of a word or

phrases chosen from the words listed below. on board hand sth over to sb in the custody of in that in the absence of sb in no position to do sth in advance to take possession of sth to be exposed to sth to fit into sth 1. __________ a will the courts decide who the guardian is. 2. I am _____________ to make any comment on this accident. 3. It's impossible to know _______ what will happen. 4. Privatization is thought to be beneficial ________ it promotes competition. 5. Have the passengers gone ______ yet? 6. The children _____________ good books ever since they could read. 7. When his parents died, he was placed ______________ his aunt. 8. This morning the American was formally ________ to the ambassador. 9. The cooker wont _______ your new kitchen. 10. You cannot legally _____________ the property until three weeks after the contract is signed.
III. 1.

2. E. 3.

4.

5.

For each of the following questions, choose the most appropriate answer according to your understanding of the text. Normally, an importer will require an exporter to produce _______, since it means that the goods are already on board and therefore better guarantee is provided for the consignee to the receive the cargo at the destination. A. a received for shipment B/L B. a shipped B/L C. a straight B/L D. a shippers order B/L Anyone who holds _________ is entitled to the goods the bill represents. a shipped B/L B. an order B/L C. a long-form B/L D. a blank B/L _________ applies to goods like livestock, dangerous cargo or awkwardly-shaped goods that cannot fit into the ships holds. A. A shipped B/L B.A straight B/L C. A direct B/L D. An on deck B/L It is important that the B/L is available at the port of destination before the goods arrive, because _______________________ . A. a cargo cannot be collected by the buyer without the B/L, and undesirable consequences will arise B. the B/L ensures that the cargo is delivered a proper way C. the seller can be paid in time D. the carrier can be paid in time When the actual shipment date of a cargo is later than the stipulated in the L/C, the carrier, sometimes, at the shippers request, issues _________ with a date of signature that suits the requirement so as to avoid non acceptance by the bank.

A. a received for shipment B/L C. a shippers order B/L IV.

B. a long form B/L D. an ante-dated B/L

True (T) or False (F)? Put a T at the end of the statement if you think it is true and put an F if you think it is false. 1. A blank bill of lading is rarely used, because without any information about the date of shipment, the consignee cannot anticipate the arrival of the goods. 2. Unclean B/L is usually unacceptable to the buyer and banks. 3 A straight bill of lading itself gives title to the goods. 4. The difference between a combined transport B/L and a through B/L lies in the fact that combined transport is operated by only one carrier. 5. Copies of B/L entitle a consignee to take delivery of goods. Questions for discussions. 1. What do you know about a bill of lading? 2. What do you know about a shippers order bill of lading? 3. What differences do a long form B/L and short form B/L have? 4. Are bills independent of each other? Are there copies for bills of lading?

V.

Text B WTO ( )
A brief history of the WTO The WTO was created as the result of the Uruguay Round of GATT negotiations (l986--1993). GATTM was a forum for trade negotiations among its members and seven rounds of GATT negotiation had been carried out prior to the Uruguay Round. Negotiations were a permanent feature of GATT through which the members reached consensus and agreements on amendments and improvements to GATT. The events leading to the creation of the WTO began in 1982 when the ministerial meeting of GATT members decided to set up a preparatory committee for the purpose of considering the next round of GATT negotiation. The committee came into existence in l985. It entered into operation immediately and called for proposals from members to prepare the agenda of negotiation. Some countries wished to widen the scope of the negotiation; others preferred to maintain the traditional sphere of discussion. These differences were not resolved and the committee could not reach any decision in June 1986 When the ministerial declaration for the next round was scheduled for announcement. The final meeting of members' representatives took place in September 1986 at Punta del Este, Uruguay and the countries wishing to expand the scope of negotiation succeeded. Consequently, many new areas, such as services, intellectual property rights and investment were included in the agenda of discussion. Negotiations were lengthy and difficult and lasted from 1986--1993, carried out by 14 negotiating groups consisting of countries which had interests in the matters concerned. The Trade Negotiation Committee supervised and monitored the activities

of each group. The l4 groups were rationalized and consolidated in l990. As a result, seven new groups were formed. These were agriculture, textiles and clothing; services; rulemaking and TRIMs; TRIPs; Institution; and market access. The results of these negotiations are seen in the agreements or decisions attached in the WTO Agreement. In 1992 and 1993, negotiations reached a stage where the United States and the EU could not compromise on a number of trade terms, in particular on subsidized farm products. In January 1993, Clinton became the President of the United States. In June 1993, the US Congress granted a new 'fast track' negotiating authority (which means an authority to negotiate a trade agreement at a fast speed) to President Clinton. The authority required Clinton to notify Congress by l5 December l993 of his intention to sign a Uruguay Round accord and to submit a final deal for approval to the Congress by 16 April 1994. This forced the United States to give its consent to the WTO Agreement on 15 December 1993 subject to the condition that the expression 'WTO' is used to replace 'MTO' (Multilateral Trade Organization). This was accepted by other countries and the Final Act Embodying the Result of the Uruguay Round of Multilateral Trade Negotiations was signed on 15 December 1993. This was the end of the Uruguay Round negotiations.. On 15 April 1994, l24 countries and the EU approved the WTO Agreement in the Ministerial Meeting held in Marrakesh, Morocco. The WTO Agreement came into effect on 1 January 1995. As at April 2003, WTO had 146 members. Major functions of the WTO The functions of the WTO are set out in article 3 of the WTO Agreement. This Article has five provisions (subsections). Each of them represents a particular task or group of tasks to be accomplished by the WTO. The first task of the WTO is to implement and administer the WTO Agreement and annexes. The WTO must also provide a framework to implement and administer the Plurilateral Trade Agreements (PTAs) among the countries which have ratified them. The PTAs, which presently include two agreements, are not compulsory agreement. In order to perform this task, the WTO may have to set up mechanisms for each of the PTAs, as contracting countries to each of them can be different. There is certainly a connection between the functions of the WTO and its structure. The second task is to provide a forum of negotiation for members to discuss issues of Concern; the WTO must provide a forum for members to negotiate issues arising from the operation and implementation of the WTO Agreement. It is also obliged to provide a forum or establish a mechanism to deal with any trade issues arising from international trade within the WTO or to be decided by the Ministerial Conference of WTO members. The third task is to provide a dispute settlement mechanism pursuant to the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). The WTO must enforce agreement on the establishment of the WTO dispute settlement mechanism and ensure the effective operation of the mechanism. This task is subject to the first and second tasks in that if there is any problem arising from the enforcement of the agreement on dispute settlement, the WTO must provide an adequate forum and take appropriate measures to ensure the problem can be dealt with effectively. In fact,

the dispute settlement mechanism appears to be working well and productively. As at July 2002, 26l disputes had been submitted to the dispute settlement mechanism for consultation, mediation, panel proceedings and arbitration. More than 80 disputes have been submitted to panel proceedings, which in a sense can be regarded as rule-based proceedings.
The fourth task is to administer the Trade Policy Review Mechanism (TPRM) established under Annex 3. The TPRM is a monitoring body which observes, collects and reviews data and information on members' trade policies. It does not have power to determine whether or not a policy is consistent with the WTO Agreement, and provides assistance for the evaluation of the relevant policy by the Ministerial Conference.

The last task is to cooperate with the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD). The IMF was set up under the Bretton Woods Agreement of 1944, which was also the basis for the IBRD. The IMF came into existence in 1945 and began operation in 1947. It makes funds available to its member countries to enable them to maintain balance of payments. The IBRD is an intergovernmental financial institution and membership is open to IMF members only. The WTO Agreement and its annexes The WTO Agreement establishes the WTO as the organization regulating and controlling international trade between contracting countries. It consists of the Final Act Embodying the Results of the Uruguay Round of Multilateral Trade Negations, the Marrakesh Agreement Establishing the World Trade Organization and six annexes: Annex 1A, Annex 1B, Annex 1C, Annex 2, Annex 3 and Annex 4. The details of the annexes are as follows: Annex 1 A is entitled the Multilateral Agreements on Trade in Goods. It consists of the following agreements: the General Agreement on Tariffs and Trade 1994 (GATT 1994) which defines the Meaning of GATT l994 and contains the amendments to GATT made during the Uruguay negotiations, in particular: Understanding on the Interpretation of Article :1(b) of GATT 1994; Understanding on the Interpretation of Article XV11 of GATT 1994, Understanding on Balance-of-Payments Provisions of GATT 1994, Understanding on the Interpretation of Article XXIV of GATT 1994, Understanding in Respect of Waivers of Obligations under GATT 1994; Understanding on the Interpretation of Article XXV of GATT 1994, and Marrakesh Protocol to GATT 1994; Agreement on Agriculture; Agreement on the Application of Sanitary and Phytosanitary Measures; Agreement on Textile and Clothing; Agreement on Technical Barriers to Trade; Agreement on Trade--Related Investment Measures; Agreement on Implementation of Article Vof GATT 1994; Agreement on Implementation of Article VII of GATT 1994; Agreement on Pre-shipment Inspection; Agreement on Rules of Origin;

Agreement on Import Licensing Procedures; Agreement on Subsidies and Countervailing Measures; and Agreement on Safeguards. Annex 1B is entitled General Agreement on Trade in Services. Annex 1C is entitled Agreement on Trade-Related Aspects of Intellectual Property

Rights. Annex 2 is entitled Understanding on Rules and Procedures Governing the Settlement of disputes. Annex 3 is entitled Trade Policy Review Mechanism. Annex 4 is entitled Plurilateral Trade Agreements, and includes two agreements: Annex 4(a): Agreement on Trade in Civil Aircraft; Annex 4(b): Agreement on Government Procurement. The agreements reflect the results of the negotiations carried out within the special groups. The annexes to the WTO Agreement are divided into two categories: integral agreements and optional agreements. Annexes 1A, 1B, 1C, 2 and 3 are integral agreements of the WTO Agreement, and a WTO member must unconditionally approve them when joining Annex 4 is optional, and a WTO member can decide whether or not to approve any agreements covered by Annex 4. It follows that any of the agreements under Annex 4 operate only between those WTO members who have approved it.

Exercises
VI. Questions for Discussion: 1. What do you know about GATT? 2. What do you know about the Uruguay Round of GATT negotiations? 3. What are the major functions of the WTO?

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