Back-date B/L Letter of Indemnity

A Back-date B/L Letter of Indemnity is a written guarantee issued by the shipper (usually the exporter) to the carrier (shipping company) in foreign trade practice when the actual shipment date is later than the shipment period stipulated in the letter of credit. Its core content is: the shipper requests the carrier to issue a bill of lading with an earlier date as required by the letter of credit (i.e., a back-dated bill of lading), and promises to bear all responsibilities and expenses arising therefrom, including claims from the consignee, losses of the carrier, etc. It is mostly used under letter of credit settlement when goods fail to be shipped on time for some reason, but the exporter is unwilling to amend the letter of credit or cannot complete shipment within the shipment period, so it uses a back-dated bill of lading to meet the document requirements of the letter of credit. Precautions: Back-dating a bill of lading is a fraudulent act, violating international trade practices and the laws of many countries. Once discovered, the carrier may face penalties, and the shipper may also lose the right to receive payment under the letter of credit and even be held legally liable. Unlike a general letter of indemnity used for taking delivery of goods, a back-date letter of indemnity specifically addresses the back-dating of the bill of lading date, and is different from an 'advanced bill of lading': an advanced bill of lading is issued before the goods are loaded on board, while a back-dated bill of lading is issued after the goods are loaded but with an earlier date.