How can an exporter retain control over products exported to a foreign buyer?
A seller can retain control over products exported to a foreign buyer by insisting on title documents that forestall the buyer’s access to or possession of the goods. Title documents transfer title or, at least, possession. In an export transaction, the title documents are comprised of the main carriage transportation documents or bills of lading, such as ocean bills of lading and air waybills. Ocean bills of lading can be in either negotiable (order of) form or in non-negotiable (straight) form, whereas air waybills can only be non-negotiable. The form of a bill of lading instructs the carrier on how to handle or disburse the goods that the carrier is transporting when the carrier reaches its destination. If the bill of lading is in negotiable form, i.e. “order of the shipper”, the carrier will hold the goods until it receives an original bill of lading that has been endorsed by the shipper (seller). If the bill of lading is in non-negotiable or straight form and consigned to the buye
