How to Use a Dual-Consignee Bill of Lading? A Guide to Mastering It!

In international trade, a Bill of Lading (B/L) serves as a document of title for goods, recording key information such as the shipper and consignee.Dual-header bill of ladingrefers to displaying two company names simultaneously in the Shipper or Consignee fields of the bill of lading, typically using formats like O/B (on behalf of) or C/O (care of). This practice is common in trade scenarios involving intermediaries, aiming to meet specific requirements for bank payments, trade contracts, or cargo ownership.

In certain trade situations, banks or trade contracts may require the bill of lading to display specific company names to ensure clarity in payments or cargo ownership. For example, intermediary Company B needs to pay exporter Company A, but the bank requires Company Bs name on the bill of lading to release funds. In this case, using a dual-header (e.g., A O/B Company B) satisfies the banks requirements while maintaining Company As status as the actual exporter.

Depending on trade requirements, dual-headers can appear in either the Shipper or Consignee fields. Below are two common methods:

Shipper dual-header: A O/B Company B

• Applicable scenarios: Company B acts as an intermediary, actually paying Company A, and the bank requires Company Bs name on the bill of lading.
• Operation method: Fill in the Shipper field as Company A O/B Company B, indicating that Company A is shipping on behalf of Company B.
• Advantages: Clearly shows Company Bs involvement, facilitating the banks verification of payment information.

Consignee dual-header: C O/B Company B

• Applicable scenarios: Company B wants Company C to handle customs clearance on its behalf after the goods arrive at the destination port.
• Operation method: Fill in the Consignee field as Company C O/B Company B, indicating that Company C is receiving the goods on behalf of Company B.
• Advantages: Ensures Company Bs cargo ownership while entrusting Company C with customs clearance.

• Trade structure: Company A (exporter) → Company C (importer), with intermediary Company B (payer).
• demand: Company Bs name must appear on the bill of lading for the bank to release funds to Company A.
• Solutions: Fill in the Shipper field as Company A O/B Company B to ensure Company Bs name appears on the bill of lading, meeting the banks payment requirements.

If the Certificate of Origin also requires a dual-header, the Shipper field can similarly be filled as A O/B Company B. If the local chamber of commerce or inspection bureau cannot issue a dual-header Certificate of Origin, a note can be added below the Goods Description: Shipper: Company B name to meet relevant requirements.

Selection advice: Depending on the actual situation, if Company B is an intermediary that needs to pay Company A and the bank requires Company Bs name on the bill of lading for payment, it is recommended to useShipper dual-header, i.e., A O/B Company B, to meet the banks payment conditions.

• Bank communication: Before implementing a dual-header bill of lading, always confirm specific requirements with the bank to ensure the format and content meet payment conditions.
• Freight forwarder coordinationNotify the freight forwarder in advance about the bill of lading title requirements to avoid errors after issuance that may affect cargo release.
• Negotiate with trade partnersCommunicate thoroughly with Company A and Company C to ensure all parties have no objections to the bill of lading title, avoiding future disputes.
• L/Cbusiness based on thisFor transactions involving letters of credit, the bill of lading title must strictly comply with LC requirements without arbitrary changes.

Dual-title bills of lading may seem complex but are actually a flexible tool in trade practice. By properly setting dual titles for Shipper or Consignee, they can meet bank remittance requirements while ensuring clear ownership of goods.foreign tradeBeginners should communicate thoroughly with all parties and pay attention to details to successfully complete export operations. This article aims to demystify dual-title bills of lading and smooth your foreign trade journey!