
Understanding Bills of Lading (BLs) A Comprehensive Guide. Bills of Lading (BLs) are crucial documents in international trade. They serve as contracts of carriage between shippers and carriers. They acknowledge receipt of goods, outline the terms of transportation, and function as title documents for the goods. Understanding BLs is essential for exporters, importers, freight forwarders, and customs brokers involved in global trade.
Types of Bills of Lading
There are primarily three types of BLs:
Clean Bill of Lading:This type is the most desirable, indicating that the recipient received the goods in good condition. It is essential to obtain bank payment under a letter of credit.
Dirty Bill of Lading: This type notes specific damages or deficiencies in the goods at the time of shipment. It can delay or prevent payment under a letter of credit.
Received for Shipment (RFS) Bill of Lading: The carrier issues this before the goods are loaded onto the ship. The airline typically uses it for inland transportation or when it needs to verify the condition of the goods.
Key Clauses in a Bill of Lading
A typical BL contains several essential clauses:
Importance of Bills of Lading
BLs serve several critical functions in international trade: