Why it matters for payment
The third function is the one that matters. Because an original bill of lading controls who can collect the cargo, it is the closest thing in trade to holding the goods themselves.
This is why the standard T/T structure pays the balance "against the B/L". The factory will not release the original until it is paid; the buyer cannot collect the container without it. Both sides are partially protected by the document itself.
Original versus telex release versus seaway bill
The distinction decides how much protection you actually have.
- Original B/L: a physical document, usually issued in a set of three. Whoever presents an original at destination collects the goods. Couriered between parties.
- Telex release: the shipper surrenders the originals at origin and the carrier notifies the destination office to release without presentation. Faster, but the buyer's leverage disappears once the release is issued.
- Seaway bill: non-negotiable. Goods go to the named consignee, full stop. Fine for shipments between related parties, weak protection between strangers.
The trap
A scanned copy of a bill of lading proves nothing about what is in the container.
It proves a carrier accepted a shipment described in a certain way. The description on a B/L is supplied by the shipper and is not verified by the carrier. Bills routinely carry the clause "said to contain".
Paying a 70% balance against a scanned B/L, with no inspection, means paying against the factory's own description of what it shipped. If the goods matter, the payment gate should be a pre-shipment inspection report and the B/L, not the B/L alone.