Bill of Lading Essentials for NVOCCs: Required House Bill Fields and Liability Basics

An NVOCC's house bill of lading has to satisfy several masters at once: the Federal Maritime Commission, U.S. Customs and Border Protection, the Carriage of Goods by Sea Act and the shipper paying the freight. This guide collects the rules that shape the house bill, the fields that must be right, and the liability terms behind the paper.

What the house bill of lading does

For an NVOCC, the house bill is the contract with its own customer. The NVOCC acts as the carrier to its shipper, while it is a shipper in its relationship with the ocean carrier, which issues the master bill. Our article on house vs master bills of lading covers that split in detail.

Under the Carriage of Goods by Sea Act (COGSA), after receiving the goods the carrier must, on the shipper's demand, issue a bill of lading showing the leading marks, the number of packages or the quantity or weight as furnished by the shipper, and the apparent order and condition of the goods. That bill is prima facie evidence that the carrier received the goods as described. In other words, what you print is what you may be held to.

What the FMC requires of an NVOCC bill

The FMC rules for ocean transportation intermediaries add their own requirements:

• License or registration number on documents. Under 46 CFR 515.31(a), when an OTI's name appears on shipping documents, its FMC license or registration number must also be shown. Under 515.31(b), the name and number must be permanently imprinted on office stationery and billing forms.
• Sample bill of lading in the tariff. Under 46 CFR 520.4(a)(5), published tariffs must include sample copies of any bill of lading showing legible terms and conditions.
• A maintained tariff. Under 46 CFR 520.3(f), failure to maintain a tariff will result in revocation of an NVOCC's license or suspension of a foreign-based unlicensed NVOCC's registration.
• No false documents. Under 515.31(e), an OTI may not prepare or file any document it has reason to believe is false or fraudulent. Under 515.31(f), if it suspects its shipper made an error or omission in a bill of lading or export declaration, it must advise the shipper promptly and decline to participate until the matter is resolved.

Licensing, the bond and tariff publication are covered in our guide to FMC NVOCC licensing, bond and tariff.

What CBP requires of the bill data

For U.S. imports, the house bill feeds the manifest, so the CBP rules in 19 CFR 4.7a shape what goes on it:

• Unique bill number. Every bill, whether issued by a carrier, freight forwarder or other issuer, carries a unique identifier of up to 16 characters: the issuer's four-character SCAC followed by up to 12 letters or digits. It may not be used for another bill for 3 years after issuance.
• Shipper. For each house bill in a consolidation, the shipper is the foreign vendor, supplier, manufacturer or similar party, with a foreign address. The NVOCC, forwarder or consolidator is not acceptable.
• Consignee. The party to whom the cargo will be delivered in the United States. For cargo shipped "to order of" a named party, that party is reported as consignee, and any other commercial party for delivery or contact goes in the notify party.
• Quantity. The lowest external packaging unit; containers and pallets are not acceptable manifested quantities.
• Description. A precise description or the 6-digit HTS number. "FAK", "general cargo" and "STC" are not acceptable.

House bill field checklist

Putting the FMC, CBP and COGSA requirements together with ordinary commercial practice, a sound house bill covers these fields:

Liability basics under COGSA

COGSA applies to contracts for the carriage of goods by sea to or from U.S. ports in foreign trade, and every bill of lading for carriage from U.S. ports in foreign trade must contain a statement that it has effect subject to the Act. Three provisions matter most day to day:

• $500 per package. Neither the carrier nor the ship is liable for loss or damage above $500 per package, or per customary freight unit for goods not shipped in packages, unless the shipper declared the nature and value of the goods before shipment and that declaration was inserted in the bill of lading.
• Notice of loss. If loss or damage is not reported in writing at the port of discharge before or at removal of the goods, removal is prima facie evidence of delivery as described. If the damage is not apparent, notice must be given within three days of delivery.
• One year to sue. The carrier and ship are discharged from liability unless suit is brought within one year after delivery, or the date the goods should have been delivered.

Common house bill mistakes

1. Printing the NVOCC, not the real seller, as shipper on import house bills.
2. Reusing or duplicating bill numbers, often after a system change or when two offices number independently.
3. Copying the booking description ("general merchandise") onto the bill without asking the shipper for detail.
4. Showing pallets or containers as the package count, which affects both the manifest quantity and the COGSA package count.
5. Leaving the FMC license number off a new bill form or a branch office template.
6. Issuing bills on terms that differ from the sample bill of lading in the published tariff.

Keeping bills, manifest and accounting in step

Most bill of lading problems are consistency problems: the bill says one thing, the manifest another and the invoice a third. Each manual retyping is a chance to drift. Under 46 CFR 515.33, licensed and registered NVOCCs must also keep their OTI records current and correct, in paper or electronic form, readily available to the Commission.

In GDZ-ISIS for NVOCCs, bill of lading entry is fed from the booking, the dock receipt and the contacts already in the system, rated against the tariff and compared with the original quotation, and the same bill drives the ACE manifest and posts to accounting. To see it with your own bill format, schedule a demo.

Frequently asked questions

Does an NVOCC have to show its FMC license number on the bill of lading?

Under 46 CFR 515.31(a), when a licensee's or registrant's name appears on shipping documents, its FMC license or registration number must also be included. Its name and number must also be permanently imprinted on its stationery and billing forms.

How long can a bill of lading number be for CBP?

Up to 16 characters under 19 CFR 4.7a: the issuer's four-character SCAC followed by up to 12 letters or digits. The same number may not be used for another bill for 3 years after issuance.

Who is the shipper on an NVOCC house bill for CBP?

For each house bill in a consolidated shipment, CBP accepts the foreign vendor, supplier, manufacturer or similar party, with a foreign address. The NVOCC, forwarder or consolidator is not acceptable as the house-level shipper.

What is the COGSA $500 per package limit?

COGSA limits carrier liability for loss or damage to $500 per package, or per customary freight unit for goods not shipped in packages, unless the shipper declared the nature and value before shipment and it was inserted in the bill. Ask a maritime attorney how it applies to a specific claim.

Does an NVOCC need a sample bill of lading in its tariff?

Yes. Under 46 CFR 520.4(a)(5), tariffs must include sample copies of any bill of lading showing legible terms and conditions, along with other documents evidencing the transportation agreement.

Sources

• eCFR: 46 CFR 515.31, general duties of OTIs
• eCFR: 46 CFR 520.4, tariff contents
• eCFR: 19 CFR 4.7a, inward manifest information required
• GovInfo: Carriage of Goods by Sea Act (note to 46 U.S.C. 30701)

Related articles

• What Is ACE AMS Filing? Who Must File the Ocean Manifest and When
• ISF 10+2 Explained: Who Files What, NVOCCs and Carriers Included
• How to Avoid CBP Late or Inaccurate Manifest Penalties and Holds