Stale Bill of Lading

A bill of lading that is not presented within 21 days of shipping is called a stale bill of lading. In other words, the stale bill of Lading is a type of bill which is presented to the designated bank after the period of presentation.

A bill of lading can be considered as a ‘stall’ if it is presented long after the voyage of a ship with a shipment to the loading port. Such representations of the Bill of Lading may be with the supplier's bank, the discount bank, the negotiating bank, the buyer's bank or the buyer. The term ‘still bill of lading’ is also used when the billing bill is presented to the bank after the expiry of the term.

According to international commercial practice, other shipping documents, including bills of lading, must be submitted to the bank not later than twenty-one days after the date of invoice provided in the bill of lading. In some events, the importer may indicate within how many days the documents must be submitted from the date of shipment. The exporter has to comply with the stipulated time frame. Alternatively, the bill of lading becomes stale and the bank does not accept it for payment. A stale bill of lading is that which is delivered to the presenting bank so late that it is impossible for the bank to send the goods to the place of consignment before the goods reach the port in time.