Switch Bill of Lading (Switch BL): Meaning, Use & Procedure

In international shipping, documentation is everything. One of the more flexible — and often misunderstood — instruments in global logistics is the Switch Bill of Lading (Switch BL). It allows a party to replace the original Bill of Lading with a new one, altering fields such as the shipper, consignee, or even the port of discharge. This tool is particularly relevant for India-based freight forwarders, NVOCCs, and traders working with transshipment hubs like Singapore, Dubai, or Colombo. However, it must be used cautiously, as improper use can invite customs scrutiny or legal issues. In this guide, we explore what a Switch BL is, how it’s used in India, the procedure, risks, and compliance best practices.

What Is a Switch Bill of Lading?

A Switch BL is a second set of Bills of Lading issued in substitution for the original set. The key contents of the BL (like vessel and cargo details) remain the same, while others (e.g. consignee, shipper, port of discharge) can be updated depending on commercial requirements. Switch BLs are typically requested when:

• A freight forwarder is acting as a middleman and does not want the end buyer to know the original supplier’s identity
• Trade is routed via a transshipment port where shipment is consolidated or re-labelled
• Original consignee changes due to resale or credit issues mid-shipment
• BLs need to reflect bonded movement or cross-dock handling

Original vs Switch Bill of Lading: Comparison

Use Cases in India

• Electronics Import via Singapore: An Indian buyer purchases from a Chinese OEM. The freight forwarder switches the BL in Singapore to show themselves as shipper and buyer as consignee — protecting supplier relationships.
• Textile Re-exports via Dubai: A Surat-based trader consolidates multiple textile exports and sells to different African buyers. The Switch BL enables individual documentation while shipping in bulk.
• Agri Commodity Trades: Traders use Switch BL to resell commodities while en route, reflecting changes in final destination or buyer.

Step-by-Step Procedure to Issue a Switch BL

1. Request Initiation: The shipper or forwarder submits a formal switch request to the carrier/NVOCC at the transshipment hub.
2. Submit Documents: Include original BL, new BL draft, invoice, packing list, and letter of indemnity (LOI).
3. Carrier Approval: The shipping line checks for discrepancies and either approves or asks for rectification.
4. New BL Issued: Carrier issues the Switch BL set with updated consignee, shipper, notify party, and discharge port if required.
5. Original BL Surrender: The original BL must be surrendered before the new one is valid.
6. Intimation to Broker: Customs broker is informed to align paperwork for clearance.

Documents Required

• Original BL copy or surrender receipt
• New draft BL (highlighting changes)
• Invoice and Packing List (updated if necessary)
• Letter of Indemnity (LOI)
• Approval from shipper & consignee

Switch BL in Letter of Credit (LC) Transactions

Switch BLs are particularly delicate when LC is involved. The issuing bank must agree to accept the new BL terms. The applicant must ensure that the new consignee matches the one in the LC. Banks may require the LOI and explanation for switch to be documented in the LC compliance file.

Risks & Challenges

• Fraud or misrepresentation: Changing description, weight or origin without disclosure
• Customs Rejection: Indian customs may reject the switch if documents appear inconsistent
• Double Issuance: If original BL is not properly surrendered, cargo may be released on both versions
• Loss of insurance coverage: If cargo value or ownership changes are not informed to insurer

Best Practices for Indian Traders

• Ensure full audit trail and document retention
• Use only known and compliant NVOCCs / carriers for switch BL issuance
• Never switch cargo details — only permissible fields like consignee
• Align customs broker, buyer, and shipping line on final BL terms
• Do not delay switch requests — last-minute requests can lead to demurrage

How Cogoport Helps

Using Cogoport, Indian exporters and importers can securely request Switch BL operations with digital workflows, document storage, LOI templates, and verified carrier partners. Notifications ensure BL switches are tracked, audit compliant, and executed well before cargo discharge.

FAQs

Is Switch BL legal in India?

Yes, provided the original BL is surrendered and all changes are transparent. However, misuse can lead to customs holds.

Can I change port of discharge in a Switch BL?

Yes — if the carrier and destination customs allow. Port change must reflect actual route feasibility.

Will customs in India question a Switch BL?

They may — especially if fields like origin, quantity, or weight are changed. Keep original BL, LOI, and correspondence ready.

Can I use Switch BL for hazardous cargo?

Only if approved by the shipping line. Some cargo categories have restrictions on document switching.

Can two Switch BLs be issued on the same cargo?

Technically yes, but strongly discouraged. It creates legal ambiguity. One switch is recommended per BL chain.

What if the buyer refuses the switched BL?

This can cause delivery disputes. Always confirm buyer details before initiating a switch.

Updated: October 2025

Disclaimer: This article provides general information and is not legal or financial advice.