1. Legal Aspects of the Bolero
CEO Series
Legal Aspects of the Bolero
By Professor Alkis John Corres

2. The Bolero replicates the functions of a Bill of Lading
This is achieved through a series of electronic messages tracked in a Central Database operated by a trusted third party.
Speed, efficiency and low cost are claimed as its advantages.

3. Everything is electronic, no paper involved. Two main components:
The Bolero is a functional equivalent of a BoL based on a different philosophy.
Everything is electronic, no paper involved.
Two main components:
A text very similar to a paper BoL (which can be clean or claused, in short form or in long form incorporating all terms and conditions)..and..
A Title Registry Record (i.e. the Database).

4. After the BoL has been created and its BBL Text has been issued ..
..the BoL may be tranferred by a change of roles that the Users have in the Title Registry Record.
Electronic BoLs can be surrendered to the TRR or replaced with paper ones, should that be desired.

5. The definition of a TRR user is wide enough to include practically every player in shipping..
Carrier, carrier’s port agent at disport, shipper, consignee, ‘’to order party’’, holder, bearer holder, pledgee holder.
The system is governed by the Bolero Rulebook and the TRR enabes users to perform operations

6. Some of these operations are listed below:
Issue a BoL by the carrier
Endorsement of the BoL by its rightful owner
Blank endorsement of the BoL to make it negotiable by the bearer (blank endorsee).
Allow for amendments by the carrier
Surrender of the BoL by its holder in disport
Designate holder

7. By the function of surrendering the BoL at the disport..
..there is no need for presentation of an original BoL prior to discharge of the cargo..
..thereby the need for an LOI is eradicated as the legality of the receiver is guaranteed by the Title Registry Record.
Transfer of title also become automated when old BoLs are nulled simultaneously, and there is no need to keep a record of the other – not produced at disport- original BoL copies.

8. A digitally signed electronic document evidences a contract of carriage just like in the paper version.
The transfer of title is achieved through ‘’novation’’i.e. redrafting of the contract with a different party.
Each carrier in the Bolero System has appointed Bolero International as its agent and redrafts each contract of carriage with each new transferee.

9. In short..
There is a lot of merit in electronic BoL replication systems.
It is regrettable that UNCITRAL and CMI have been so desperately slow in developing an international standard to facilitate international trade and rid of the dangers of LOI’-based cargo deliveries for the carrier.
Private shipping companies are commendable for their initiatives to promote such systems.

10. Thank you for listening