Bill of Lading (BOL) (Customs Glossary)

🔖 This article is part of the Customs Glossary Guide

Bill of Lading (BOL)

The fundamental contract of carriage, receipt of goods, and document of title in freight transportation.

Type: Legal Document Mode: Highway & Multimodal

Overview

An example of a standard Bill of Lading

In the realm of North American highway trade, a Bill of Lading (BOL) is a crucial document that serves as a contract, receipt, and record of the transportation of goods between a shipper, carrier, and consignee.

For cross-border shipments, the BOL plays a pivotal role in customs compliance. It is the source document used to generate the Shipment Control Number (SCN) for US Customs and the Cargo Control Number (CCN) for Canadian Customs, linking the physical cargo to the electronic manifest.

Compliance Tip: Customs officers strictly verify that the piece count and weight on the physical Bill of Lading match the electronic data filed in ACE or ACI. Discrepancies are a leading cause of border delays and AMPS penalties.

Core Functions

A Bill of Lading performs three distinct legal functions in the logistics chain:

Function	Description
1. Receipt of Goods	Issued by the carrier to acknowledge they have received the cargo in apparent good order and condition. It is proof that the carrier has taken possession of the freight.
2. Contract of Carriage	It serves as evidence of the contract between the shipper and the carrier, outlining the terms, conditions, and liability limitations under which the transportation is performed.
3. Document of Title	Depending on whether it is "Straight" or "Negotiable," the BOL can serve as proof of ownership, allowing the holder to claim the goods or transfer ownership while in transit.

Types of Bills of Lading

In highway freight, the distinction between "Straight" and "Order" bills is critical for liability and delivery.

• Straight Bill of Lading: A non-negotiable document where goods are consigned to a specific person or entity. The carrier must deliver only to the named consignee. This is the standard for most "Prepaid" or open-account truck shipments.
• Order Bill of Lading: A negotiable document made out "To Order" (usually of a bank or shipper). The goods can only be released when the original endorsed Bill of Lading is surrendered to the carrier. This is often used when payment is not yet secured (e.g., Letter of Credit).

Cross-Border Usage Scenarios

The following scenarios illustrate how the Bill of Lading integrates with customs procedures:

US to Canada (ACI eManifest)

Scenario: An exporter in Ohio ships auto parts to an assembly plant in Ontario.

• The Document: The shipper issues a BOL listing the parts, weight, and the Canadian Consignee.
• The PARS Label: The carrier applies a PARS barcode label (Cargo Control Number) to the BOL.
• The Link: The carrier enters the PARS number into the ACI eManifest. The broker uses the same PARS number from the BOL to file the entry. CBSA links the two electronically.

Canada to US (ACE Manifest)

Scenario: A lumber mill in BC ships timber to a distributor in Washington State.

• The Document: The mill provides a BOL detailing the bundles of lumber.
• The PAPS Label: The carrier affixes a PAPS barcode label (Shipment Control Number) to the BOL.
• The Link: The carrier transmits this PAPS number in their ACE eManifest. The US Customs Broker files the entry against this same PAPS number.

In-Bond Movements

Scenario: Goods arrive at the border but are not cleared; they must move inland to a bonded warehouse.

• Usage: The BOL is used to generate the IT (Immediate Transportation) entry (Form 7512 in the US). The BOL number becomes the reference for the bond, ensuring duties are paid if the goods go missing en route.

Usage in BorderConnect

In BorderConnect's software, the Bill of Lading is the source of truth for creating Shipments.

Entering BOL Data

When creating a shipment in ACE or ACI eManifest, users do not typically see a field labeled "Bill of Lading Number." Instead, you enter the control number that corresponds to the BOL:

• ACE Manifest: Enter the number into the Shipment Control Number (SCN) field. This is typically your SCAC code followed by the BOL number (e.g., ABCD123456).
• ACI eManifest: Enter the number into the Cargo Control Number (CCN) field. This is your Carrier Code followed by the BOL number.

Document Management

BorderConnect allows you to go paperless by uploading the physical Bill of Lading directly to the manifest.

• Upload: Use the "Documents" tab inside a Shipment profile to upload a PDF or image of the signed BOL.
• Transmit: These documents can be faxed or emailed directly to brokers or drivers from within the system.

Official Resources

• CBP (USA): Bill of Lading Definition & Requirements
• CBSA (Canada): Memorandum D3-1-1: Policy Respecting the Importation and Transportation of Goods
• FMCSA: 49 CFR Part 373 - Receipts and Bills

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