Documentation
Switch Bill of Lading
A second set of bills of lading issued to replace the originals, typically to conceal the true supplier or origin from the end buyer in a cross-trade transaction.
In depth
Switch bills are used in three-party trades where a trader buys from a supplier in one country and sells to a buyer in another, and does not want the buyer to learn who the supplier is. The first set is surrendered and the carrier issues a replacement showing the trader as shipper. The practice is legitimate and common, but it carries real risk: two sets must never be in circulation at once, and the carrier will normally require all originals back before switching. Altering cargo descriptions, quantities, or origin on a switch set moves it from commercially sensible into fraud.
Key points
- A replacement set issued after the originals are surrendered
- Used in cross trades to protect supplier relationships
- All originals must be returned first — two live sets is a serious risk
- Changing cargo facts or origin on the switch set is fraud