ZIMSEC O Level Commerce Notes: Transport/International Trade: 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.
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