Accountee on bill of lading4/10/2023 ![]() ![]() Issuing and implementing the clean bill of lading can come with some limitations for all parties. It also ensures the delivery to the right consignee at the right destination. It also boosts confidence between the importer and the exporter, especially in a new trade contract. It prevents the loss or damage of the shipped goods. It further provides security to the exporter and importer.Ī clean B/L ensures the shipment of goods safely and in the correct quantity. It legally binds the shipping company and the shipper in a contract. Advantages of a Clean Bill of LadingĪ bill of lading is an important document in international trade. The STC bill secures the carrier from any claims from either party on the shipment ends. Note: if the carrier cannot examine the quantity of packaged goods properly, it will issue a “said to contain” bill of lading. READ: How to Calculate the EBITDA Coverage Ratio? These days most bills of lading are issued as shipped onboard for further clarification and security purposes. The carrier issues the “shipped on board” bill after confirmation of the loaded container. Shipped on Board Bill of Ladingįor further security, an exporter can ask for a clean bill of lading after the goods have been actually shifted to the vessel. It is issued before the goods are transferred to a named vessel for transportation. Clean on-Board Bill of LadingĪn on-board bill of lading is issued when the carrier receives the goods and sends the container for shipment. It can be issued either as a “clean on-board bill of lading” or “shipped on board bill of lading”. In some cases, the importer may refuse to accept the shipment if the carrier issues a foul or claused bill of lading. It issued if there are any damages or loss of quantity is found on the shipment. ![]() The shipping company may issue a claused or dirty bill of lading. Special Considerations with a Clean Bill of Lading Hence, the shipping companies act as facilitators to both parties by issuing a clean bill of lading. ![]() The importer cannot verify the quality and quantity of packaged goods before receiving them. It is an importer document, especially in international trade contracts between two new partners. The importer’s bank also ensures through a bill of lading the transfer of goods as per terms in the letter of credit. The importer can use the original copy along with the LC to claim possession of these goods. The exporter can then send an original copy to the importer. READ: What is a Call Provision and How Does It Work? Once the carrier examines the goods, it will decide to issue a clean bill of lading. The shipping carrier will examine goods for any apparent damages, quality, and quantity of goods as described in the order form. If the exporter requires a clean bill of lading, the carrier will inspect the goods. Once the exporter prepares the goods for shipment, it then delivers these items to the carrier. When two parties in an international contract agree on different terms, they can decide on a clean bill of lading as well. For the importer to claim possession at the destination. It then becomes an important part of the shipping documents such as invoices, letters of credit, etc. It is one form of ocean bill of lading that is used in international shipping through the water. In some cases, it can be issued after getting the goods on board on the ship as well. The bill is issued to the exporter at the time of loading the goods. Deeper DefinitionĪ clean bill of lading is a document issued by the carrier to declare no damage or loss of goods. If there is any damage or missing items, the carrier would issue a foul, dirty, or claused bill of lading. A clean bill of lading is issued by the carrier to confirm there is no apparent damage, missing items, or packaging flaws in the shipment. ![]()
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