SS Armistan: Bill of Lading, Agreement, Libel or an Estopple?

"A bill of lading BL or BoL) is a legal document issued by a carrier transportation company) to a shipper that details the type, quantity, and destination of the goods being carried. A bill of lading also serves as a Shipment receipt when the carrier delivers the goods at a redetermined destination. This document must accompany the shipped products, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper, and receiver."

- Dr. Soumi Mukherjee

A bill of lading (BL or BoL) is a legal document issued by a carrier (transportation company) to a shipper that details the type, quantity, and destination of the goods being carried. A bill of lading also serves as a shipment receipt when the carrier delivers the goods at a predetermined destination. This document must accompany the shipped products, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper, and receiver.

A 'clean' Bill of Lading is issued when goods are received in good condition and do not contain any damage or discrepancies, which is crucial for the carriage of goods. Not having a Clean Bill can lead to legal disputes and financial losses. Furthermore, a Clean Bill of Lading should accurately reflect what has been shipped, how it has been packed and its destination. It helps avoid disputes about damages or missing items during transport and provides proof that the carrier has fulfilled its obligation to deliver goods in original condition. The bill also acts as a receipt for payment by the importer.

To ensure maximum protection from possible problems arising from incorrect documentation, shippers should always pay close attention to details such as loading procedures, weight verification, cargo handling practices and document preparation to avoid errors or discrepancies on Bills of Lading. If a bill of lading is not clean, it can lead to several complications:

1. Delays in Customs Clearance: Unclean bills of lading can cause delays in customs clearance. Customs authorities typically require a clean bill of lading for clearance.

2. Refusal of Shipments: Importers may refuse a shipment if it comes with a clause bill of lading. This is because the importer pays for a certain quantity of goods in a specific condition. If there are goods missing or they are damaged, this will cause a loss to the importer.