Bill of lading

Bill of lading

• Is required whenever goods are transported by sea.
• An agreement entered into by the shipping company and the exporter.
• Is evidence (acknowledgement) of receipt fr goods on board a ship.
• It is a document of title which gives the bearer ownership of goods.
• It is a quasi-negotiable instrument which allows ownership of goods to be transferred to another person by endorsement.
• Forms part of a documentary credit.
• Allows goods to be bout or sold whilst in transit.
• I usually made in three copies which are distributed as follows:
• One copy remains with the exporter who is also known as the consignor.
• The second cop is sent to the importer also known as the consignee by air transport to reach him/her/them before the goods arrive.
• The third copy is given o the captain of the ship and accompanies the consignment of goods.
• It shows:
• A detailed description of the goods i.e. the types and quantities of the goods forming the consignment.
• The condition of the goods when the bill was made, described as either clean or dirty. A clean bill of lading is issued when the goods are received intact and a dirty bill when the goods are damaged.
• The port of loading and offloading the goods.
• The cost of transporting the goods.
• The numbers or markings of the crates or containers.
• The name of the shipping company and the details of the ship.
• Names and addresses of the consignor and the consignee.
• Anticipated date of arrival of the ship.
• The total value of the goods.
• The party paying for the insurance of the goods.
• The signatures of the exporter and the captain of the ship.

To access more topics go to the Commerce Notes page.