Optimize your business: use unlimited savings with Pazago fulfilled now!

Get Started ->

Every year, more than 11 billion tons of goods are shipped by sea. This massive trade movement is essential to the global economy, and it all relies on the right shipping documents to keep everything running smoothly. The Bill of Lading (B/L) is one of the most important documents in international shipping. It acts as a receipt for the goods, a contract for the transport, and proof of ownership. But did you know that there are different types of B/Ls, each with its own benefits and use cases?

In this blog, we'll break down the fundamental differences between these two types of B/Ls, the advantages and disadvantages of each, and the steps involved in handling them. By the end, you'll have a clearer understanding of which type suits your shipping needs and how to simplify your export process. 

What is a Bill of Lading?

Before we explore the differences between the Original and Express Bill of Lading (B/L), let's first understand what a Bill of Lading is and why it's so important in shipping.

A Bill of Lading is an important legal document that serves three key purposes in international trade:

  1. Receipt for Goods: It proves that the goods have been loaded onto the shipping vessel or are ready for shipment.
  2. Contract of Carriage: It explains the rules and agreements for how the goods will be transported. It serves as an agreement between the shipper and the carrier (the company handling the delivery of the goods).
  3. Document of Title: It grants ownership of the goods to the holder of the document. This is crucial because it allows the holder to transfer ownership or claim the goods at the destination.

In essence, the Bill of Lading ensures that the entire shipping process is documented and legally binding, protecting both the exporter and the importer. It's a key part of international trade, especially when goods are being sent over long distances, such as from India to other countries.

Let's now take a closer look at the two main types of Bill of Lading: Original and Express. Understanding their specific characteristics will help you choose the right option for your export business.

Also Read: How To Make Bill Of Lading? Best Tips, Simple Guide

Original Bill of Lading

The Original Bill of Lading (B/L) is a negotiable document that plays a crucial role in international shipping. It serves as proof that the goods were received, a contract for their transport, and a document that lets the holder claim the goods when they arrive. Sellers often prefer this type of B/L when they want to maintain control over the goods until payment is made or other conditions are met.

Characteristics of the Original Bill of Lading

The Original Bill of Lading is a crucial document in international trade, serving as proof of ownership and a receipt for the goods being shipped. Below are the key characteristics that define this important document:

  • Negotiability: The Original Bill of Lading is a negotiable document that can be transferred or endorsed to another party, allowing ownership of the goods to shift from the exporter to the importer or a third party.
  • Multiple Originals: The document is issued in multiple originals, usually three copies. This ensures that the goods can still be claimed by the rightful owner even if one original is lost or delayed.
  • Claim Flexibility: Although only one original B/L is required to claim the goods, having multiple copies offers flexibility in case of issues such as loss or delays.

Use Cases for the Original Bill of Lading

The Original Bill of Lading is especially useful in situations where the exporter wants to retain control over the goods or when there are conditions tied to the release of goods. Here are the primary cases when an Original B/L is typically used:

  • Payment Pending: If the exporter wants to make sure they are paid before releasing the goods, the Original B/L can be used to ensure that the importer does not receive the goods until they have made the payment.
  • Letter of Credit: In global trade, a Letter of Credit (L/C) is often used to guarantee payment. The Original B/L is crucial here because the buyer needs to present it to the bank to prove they have received the goods before payment is made.
  • Collateral for Financing: Exporters can use the Original B/L as collateral if they need financing. They can use the document as collateral to get a loan or credit from a bank or financial institution until the buyer makes the payment.

Process for Obtaining and Handling an Original Bill of Lading

The process of obtaining and handling an Original B/L involves several steps. These steps ensure that the goods are documented properly and the seller retains control until the necessary conditions are met. Here's a breakdown of the process:

  1. Booking and Shipping the Goods: Once the goods are ready for shipment, the exporter books the cargo with the carrier, and the goods are loaded onto the vessel.
  2. Issuance of the Bill of Lading: After the goods are loaded, the carrier issues the Original Bill of Lading. This document confirms that the carrier has received the goods for shipment.
  3. Sending the Original B/L: The exporter sends the original Bill of Lading to the recipient. This is typically done through courier services to ensure that the consignee receives it on time. The B/L can be sent to the buyer directly or to a third party, such as a bank, depending on the terms of the sale.
  4. Claiming the Goods: When the goods arrive at the destination port, the consignee needs to show the original B/L to the carrier in order to collect the goods. The goods won't be handed over unless the consignee presents the original document.
  5. Transfer of Ownership: If necessary, the owner of the Original B/L can transfer ownership of the goods by endorsing the document and handing it over to another party, such as a buyer or a financial institution.

While the Original Bill of Lading offers many benefits, there's another option worth considering: the Express Bill of Lading.

Also Read: Understanding The Purpose And Format Of Ocean Bill Of Lading

Express Bill of Lading (Sea Waybill)

The Express Bill of Lading, also known as a Sea Waybill, is a non-negotiable, electronic version of the Bill of Lading. Unlike the Original Bill of Lading, it doesn't require physical documents to claim the goods at the destination. Instead, it simplifies the process by allowing the consignee to receive the goods upon identifying themselves, eliminating the need to present original documents. 

This B/L type is gaining popularity due to its convenience and speed, especially when the seller and buyer have a trusted relationship.

Characteristics of the Express Bill of Lading

The Express Bill of Lading offers a more streamlined approach compared to the Original Bill of Lading. Below are the key characteristics of the Express Bill of Lading:

  • Non-Negotiable: The Express Bill of Lading is a non-negotiable document, meaning it cannot be transferred or endorsed to another party. Its sole purpose is to confirm the shipment of goods and authorize their release to the consignee upon identification.
  • Electronic Format: Unlike the Original B/L, the Express Bill of Lading does not require multiple originals. It is typically issued electronically, allowing the consignee to receive it digitally, which eliminates the need for physical copies.
  • Efficiency: The electronic format reduces paperwork and accelerates the entire process, providing a faster and more efficient method for handling shipments.

Use Cases for the Express Bill of Lading

The Express Bill of Lading is more suited to certain shipping scenarios, especially when there's a high level of trust between the exporter and importer and when immediate release of goods is desired. Here are the common situations in which the Express B/L is used:

  • Prepaid Shipments: This type of B/L is ideal when the goods have already been paid for before shipment. There's no need to hold the goods until payment is received, as the Express B/L indicates that the transaction is complete.
  • Trusted Relationships: If the exporter and importer have a long-standing relationship based on trust, the Express B/L is a faster, simpler option. The goods can be released without requiring physical documents, which is particularly beneficial when time is critical.
  • Direct Shipment with No Need for Collateral: The Express B/L is commonly used when there's no need for the exporter to retain control of the goods. It allows for a straightforward transfer of goods without the complexities of endorsements or collateralization.

Process for Obtaining and Handling an Express Bill of Lading

The process for obtaining and handling an Express B/L is much quicker and simpler than that of an Original Bill of Lading. Here's how it typically works:

  1. Booking and Shipping the Goods: The exporter books the cargo with the carrier, and the goods are loaded onto the vessel as usual.
  2. Issuance of the Sea Waybill: After the goods are loaded, the carrier issues an electronic Sea Waybill (Express B/L). This document acts as proof that the goods have been received by the carrier and are on their way to the destination.
  3. Sending the Sea Waybill: Since it is a non-negotiable document, the Sea Waybill can be sent electronically. The exporter or carrier sends it to the consignee, often via email or an online portal.
  4. Claiming the Goods: At the destination port, the consignee can claim the goods by simply presenting their identification or other reference details. No physical B/L is required for the goods to be released.
  5. No Transfer of Ownership: Unlike the Original B/L, ownership cannot be transferred through endorsement. The goods are automatically released to the consignee listed in the Sea Waybill.

Now that we've covered both types of Bills of Lading, let's compare their key differences to help you decide which is best for your needs.

Also Read: Understanding What a Waybill Is and Its Use Cases

Key Differences Between Original and Express Bill of Lading

Knowing the differences between both types of Bills of Lading will help you choose the best option based on your business needs, shipping preferences, and how much control you want over your goods.

Here's a comparison of the two B/L types:

Feature

Original Bill of Lading

Express Bill of Lading 

Type

Negotiable (transferable)

Non-negotiable (non-transferable)

Ownership Transfer

Through endorsement and presentation

Automatically to named consignee

Document Format

Physical (usually three originals)

Electronic or soft copy

Required to Release Goods

Yes, the original must be presented

No, goods released on consignee ID

Control Over Goods

The exporter retains control until B/L is presented

No control once issued

Use in Letters of Credit

Common and often required

Rarely accepted

Suitable For

Payment pending, financing involved

Prepaid, trusted relationships

Courier or Mailing Needed

Yes

No

Risk of Document Delay

High

None

Use as Collateral

Yes

No

This comparison should give you a clearer idea of the Original Bill of Lading and the Express Bill of Lading. Depending on your needs, either option can work, but the key is to evaluate the level of control you need, how fast you need your goods released, and whether you can rely on your buyer to complete the transaction smoothly.

Now that you understand the key differences between the two types of B/Ls, let's discuss the factors that Indian exporters should consider when choosing the right one.

Also Read: Understanding Received for Shipment Bill of Lading and its Types

Considerations for Indian Exporters

Choosing the right type of Bill of Lading isn't one-size-fits-all. Here's what you should think about:

  • Payment Terms: If you're waiting for payment or using a Letter of Credit, go with the Original B/L. It gives you control until money hits your account.
  • Buyer Relationship: Trust your buyer? If payments are upfront or you've done business together before, the Express B/L can save time and paperwork.
  • Shipping Timeline: Tight deadlines? The Express B/L avoids delays linked to document couriering.
  • Cost: Want to cut down courier charges and document handling fees? The Express B/L is your friend.
  • Bank or Financing Involvement: Need the shipment as collateral? Stick with the Original B/L.

Once you have a clear understanding of what to consider, let's see how Pazago can simplify and enhance your export process.

Also Read: Cross Border Transactions and Transfers

How Pazago Can Enhance Your Export Process

Managing the export process can be overwhelming, especially when dealing with multiple stakeholders and documents. However, Pazago simplifies it all by providing effective features that enhance efficiency at every step. Here's how Pazago can improve your export experience:

  • Centralized Document Storage: Pazago allows you to keep all your essential documents in one place, making it easier to stay organized and access any needed files with a click.
  • Real-Time Collaboration: Share and get approvals on documents with everyone involved in your shipment process, from your team to freight forwarders and customs agents, all in real time. This keeps everyone on the same page and speeds up decision-making.

Pazago offers much more than just document handling. It helps simplify key parts of the export journey:

  • Cost-Effective Logistics: By analyzing routes, Pazago helps you find the most economical shipping options, saving you money.
  • Real-Time Tracking: Keep tabs on your shipments as they move, minimizing delays and ensuring on-time deliveries.
  • Simplified Payments: With integrated tools for managing payments and currency conversions, Pazago makes international transactions hassle-free.
  • Quality Assurance: You can schedule pre-shipment inspections through Pazago, ensuring everything meets quality standards and complies with regulations.

Pazago can help simplify your export process by making documentation, logistics, and payments easier, saving you time and reducing hassle. 

Conclusion

Understanding the differences between the Original Bill of Lading and the Express Bill of Lading is crucial for any exporter looking to simplify their shipping process. The right choice depends on factors like payment terms, buyer trust, and shipping timelines. Making the right choice can help you avoid delays, save money, and make the process run more smoothly.

For even more efficiency in your export operations, consider integrating tools like Pazago to centralize document storage, improve collaboration, track shipments, and manage logistics and payments with ease. It's all about making your export process simpler, faster, and more cost-effective.

Ready to optimize your export journey? Book a demo today and see how it can improve your business.

Optimize your business: use unlimited savings with Pazago fulfilled now!

Get Started ->

Table of content

Get in Touch Now!

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Optimize your business: use unlimited savings with Pazago fulfilled now!

Get Started ->

Related Blogs

GUIDECustoms delays can significantly impact the efficiency and cost-effectiveness of international shipments. Each day a shipment is delayed in customs, it can lead to increased storage fees, demurrage charges, and potential loss of market opportunities. In some cases, lengthy customs delays can damage customer relationships due to missed deadlines or increased costs. The commercial invoice ensures accurate tariff codes, valuation, and classification, preventing customs delays and fines by ensuring correct duty and tax calculations. The packing list provides an itemized breakdown, verifying the shipment matches its declaration. These documents are crucial to ensure efficient customs clearance. This blog will walk you through creating a commercial invoice and packing list for international export, covering essential elements like product details, pricing, and shipping instructions. Importance of a Commercial Invoice and Packing List The commercial invoice and packing list are vital for efficient international trade. The commercial invoice serves as the primary document for customs declaration, outlining the value of goods for duty and tax assessments. The packing list, however, provides a detailed shipment breakdown, including the contents, quantities, and packaging type. Together, these documents guarantee compliance with regulations and ease communication between exporters, importers, and customs authorities, helping prevent costly delays, fines, and potential legal issues. What is a Commercial Invoice? A commercial invoice is a critical document used in international trade to facilitate customs declarations. It provides essential information about the transaction, ensuring easy clearance through customs and determining the duties and taxes due. Description and Use for Customs Declaration Customs authorities use the commercial invoice to assess the value of goods, calculate duties and taxes, and verify compliance with trade regulations. Identifies Value and Quantity of Shipped Products It specifies the total value of the goods being shipped and their quantities, enabling customs officials to determine the applicable fees. Essential Elements of a Commercial Invoice A commercial invoice must contain specific details to ensure proper processing by customs and facilitate the easy movement of goods. Key elements include: Seller and Buyer Information: The names, addresses, and contact details of both the seller (exporter) and the buyer (importer) are essential for identifying the parties involved in the transaction. Invoice Number and Date: A unique invoice number and the issue date are required for record-keeping and reference during customs clearance. Description of Goods: A detailed description of the products being shipped, including the type, model, and purpose, helps customs verify the nature of the goods. Quantity and Unit Price: The quantity of each item and the unit price, along with the total cost for each product, allow customs to determine the overall value of the shipment for duty assessment. Total Value of Goods: The total invoice value calculates the duties and taxes owed, making it one of the most crucial pieces of information on the commercial invoice. Country of Origin: This specifies the country where the goods were manufactured or assembled, which is important for calculating customs duty and complying with trade agreements. Payment Terms: The payment terms (e.g., net 30, prepayment, letter of credit) outline how the buyer will pay for the goods and under what conditions. Harmonized System (HS) Code: The HS code is a standardized system of names and numbers that customs use to classify goods. It helps determine applicable tariffs and facilitates international trade. Shipping Information: The method of shipment (air, sea, road), the name of the shipping company, and the destination are essential for the logistics of the goods' movement. Additional Costs: Any extra charges, such as shipping, insurance, and packaging costs, are typically included to provide a complete view of the total transaction. These essential elements ensure the commercial invoice meets legal and regulatory requirements, allowing customs authorities to clear the goods efficiently and accurately. Interesting Read: Understanding the Format and Importance of a Commercial Invoice What is a Packing List? A packing list is a detailed document that accompanies shipments, providing important information about the contents of each package. It plays a crucial role in facilitating customs clearance and ensuring proper handling throughout the shipping process. Purpose and Definition for Customs Clearance The packing list serves as an essential document for customs officials to verify the contents of a shipment. It helps ensure that the transported items match what is declared on the commercial invoice and comply with import/export regulations. Provides Shipment Item Details, Including Weight and Dimensions The packing list includes detailed information about each item in the shipment, such as the quantity, weight, dimensions, and packaging type. This helps customs authorities assess the shipment more accurately and makes it easier to verify the goods during inspection. Consistency with the Commercial Invoice The invoice packing list must align with the commercial invoice in terms of item descriptions, quantities, and total value. Consistency between the two documents helps avoid discrepancies that could lead to delays or issues with customs clearance. Contents of a Packing List A packing list provides detailed information about the contents of a shipment to ensure easy handling, shipping, and customs clearance. The key components of a packing list include: Shipper and Receiver Details: This section includes the names, addresses, and contact information of the shipper (exporter) and the receiver (importer), ensuring that the shipment can be traced to the right parties. Invoice Number: The packing list should align with the commercial invoice number to ensure it matches the shipment details and facilitates easier tracking. Description of Goods: Each item in the shipment is listed with a brief description, including the type, model, or category of the products. This helps customs officials and handling staff identify the goods. Quantity of Items: The packing list includes the amount of each product being shipped, ensuring accuracy when the shipment is inspected or when goods are counted at the destination. Weight and Dimensions: Detailed information about the weight and dimensions of each package or item is included to help with logistics planning, shipping cost calculation, and customs requirements. Packaging Details: Information on how the goods are packaged, such as boxes, pallets, crates, or containers, is provided to aid in handling and unloading. Shipment Type: The packing list specifies the method of shipment (e.g., air, sea, land) and may also include the mode of transport (e.g., container, truck, etc.). HS Code: Some packing lists include the Harmonized System (HS) code, which classifies products for customs purposes, ensuring proper tariff classification. Country of Origin: The packing list typically includes the country where the goods were produced, which is necessary for customs clearance and duty calculation. Additional Instructions or Notes: Any special instructions or conditions, such as fragile items, handling requirements, or delivery specifics, can be added to ensure proper care during shipping and delivery. By including these details, the invoice packing list ensures accurate documentation for shipping, customs clearance, and inventory management, helping to avoid delays and errors in the logistics process. You may also be interested in reading Creating a Packing List for International Exports. It's important to understand why merging the commercial invoice and packing list into one document can benefit your business. Let's look at the details. Why Have a Combined Document for Commercial Invoice and Packing List? Combining the commercial invoice and packing list is a practical approach that enhances the efficiency of international shipping and customs processes. By bringing these two essential documents together, businesses can simplify operations, reduce delays, and ensure efficient transactions from start to finish. Here's why combining them makes sense: Efficient Customs Clearance: Customs authorities require both documents to assess the value, contents, and origin of goods. Having both in one package simplifies the process and reduces the likelihood of delays or mistakes. Consistency and Accuracy: When both documents are combined, they offer a clear and consistent reference for the shipment. This ensures that the details on the commercial invoice (such as quantity, description, and value) align with the packing list, reducing discrepancies that could trigger customs inspections or shipping issues. Improved Efficiency in Handling: Combining the two documents (commercial invoice and invoice packing list) helps simplify logistics operations by providing all necessary shipment information at once. This makes it easier for warehouse staff, freight forwarders, and customs officers to process the shipment without cross-referencing multiple documents. Enhanced Customer Experience: By ensuring that shipments are accurately documented and processed, combining these documents reduces the chance of errors, returns, or delays, resulting in a better experience for both the importer and exporter. Saves Time and Reduces Paperwork: A single combined document reduces the need to manage multiple forms. This simplifies administrative tasks, reduces paperwork, and speeds up processing for logistics teams, freight forwarders, and customs officials. Improves Logistics Operations: With all relevant shipment details in one document, it becomes easier for logistics and warehouse teams to handle shipments quickly and accurately. This leads to more efficient inventory management and faster processing times. While a combined document for the commercial invoice and packing list offers significant benefits, there are also several challenges that must be addressed to ensure its effectiveness. Challenges in Creating and Managing Combined Documents Creating and managing combined commercial invoices and invoice packing lists can come with certain challenges, but understanding these obstacles can help you address them effectively and ensure better shipping operations. Complex Regulations: International shipping involves managing various regulations, including customs rules, taxes, and export/import laws. A combined document can simplify the process, but staying updated on regulations is critical to avoid costly mistakes. Language Barriers: Language barriers may pose challenges for shipments to different countries. Make sure all necessary fields are accurately translated to meet local requirements. The shipping software or third-party translation services can often handle this. Varying Requirements by Country: Different countries may have unique commercial invoice and packing list requirements. While combining these documents is often effective, it's essential to stay aware of any specific local guidelines that may affect how these documents should be formatted or the information they must include. Overcoming these challenges is essential to ensuring the success of a combined document, which is why implementing best practices becomes crucial for maintaining accuracy and compliance. Best Practices for Creating a Combined Document Best practices ensure the accuracy and consistency of both the commercial invoice and packing list, reducing the risk of errors and delays. By adhering to these practices, businesses can simplify the shipping process, ensure compliance with regulations, and improve customs clearance and delivery efficiency. Double-Check All Details: Ensure the commercial invoice and packing list contain accurate, up-to-date information, such as correct product descriptions, quantities, pricing, and weights. This is crucial for customs and to avoid any potential issues with your shipment. Use Clear and Concise Descriptions: Where applicable, provide clear descriptions of the goods, including model numbers or specific identifiers. This avoids ambiguity and helps customs authorities and recipients understand precisely what is being shipped. Organize the Document Clearly: Structure the document in an easy-to-read format, with well-labelled sections for item descriptions, quantities, prices, and shipping details. This will facilitate quicker processing by all parties involved, from logistics teams to customs officers. Automate Document Generation: Using logistics software, like Pazago, to automate the creation of these documents reduces human error, ensures compliance, and speeds up the entire process. While following best practices is essential for creating an accurate combined document, there are still challenges that can arise during the process. Understanding these challenges helps ensure efficient document preparation and management. How Pazago Simplifies International Export Pazago helps businesses simplify the creation of commercial invoices and packing lists for international export, ensuring accuracy, compliance, and efficiency. Centralized Document Management: Store, manage, and share export documents in one place, reducing paperwork and ensuring compliance with international regulations. Easy Collaboration: Facilitate efficient communication between export teams, customs agents, and freight forwarders to ensure timely and accurate document preparation. Fast, Secure Payments: Simplify payments and currency conversions for faster, secure transactions during the export process. Affordable Logistics: Pazago optimizes shipping routes to reduce costs and minimize delays, while still ensuring timely deliveries, so you can manage your shipping expenses effectively. Pazago simplifies the creation and management of export documentation, making international shipping more efficient. Conclusion Exporting internationally can be complex, and managing the required documentation efficiently is crucial to avoid delays and errors. A combined commercial invoice and packing list simplifies the shipping process, ensures compliance, and improves accuracy across the board. Having both documents in one place reduces the chances of discrepancies, speeds up customs clearance, and enhances overall efficiency in your supply chain. However, creating and managing these documents manually can be time-consuming. That’s where Pazago can help. With automated document generation, efficient integration, and real-time tracking, Pazago ensures your commercial invoices and packing lists are accurate and ready for shipment, making international trade more efficient. Ready to simplify your export documentation process? Schedule a demo today and see how Pazago can help simplify your commercial invoice and packing list management!

Creating a Commercial Invoice and Packing List for International Export

Learn how to create a commercial invoice and packing list for international export, ensuring compliance and accuracy for your shipments.

June 3, 2025