Clean Bill of Lading

Clean Bill of Lading

Clean Bill of Lading

 

The Clean Bill of Lading is a document that declares there was no damage to or loss of the vehicle/goods during shipment. The clean bill of lading is issued by the product carrier after thoroughly inspecting all packages for any damage to the vehicle, missing quantities, or deviations in quality. The clean bill of lading document is a type of ocean bill of lading, which is a contract for shipment between a shipper, carrier, and a receiver for goods shipped overseas by water.

A bill of lading is a legal document between a shipper and carrier detailing the type, quantity, and destination of the vehicle/goods being carried. The bill of lading document also serves as a receipt of shipment when the goods are delivered at the predetermined destination.

 

Understanding Clean Bills of Lading

A clean bill of lading document is one type of bill of lading signed by the carrier and the shipper. It guarantees the vehicle received and placed on the vessel are in good condition with no apparent damage or defect. The clean bill of lading also guarantees the number of vehicles is as ordered before the vehicles are actually shipped.

The carrier inspects the number of vehicles in the shipment, the packaging, and any other details pertaining to the freight before issuing the clean bill of lading. If there are any exceptions in the shipment, the carrier issues a claused or foul bill of lading to accompany the freight.

Since the receiver has no other way to verify the shipment before it arrives, the clean bill of lading is the only way to ensure the vehicles are delivered as per the original agreement with the shipper.

 

Claused Bills of Lading

Importers can refuse a shipment of the vehicle/goods if there is no accompanying clean bill of lading, or if a claused bill of lading comes with the shipment. That's because the entity that receives the vehicle—the importer—pays the shipper for a certain quantity of vehicles/parts/goods in a specific condition. If there are vehicles missing and/or they are damaged, this will cause a loss to the importer. This party can refuse acceptance. They may also refuse it because they will not receive money for the shipment if a bank has issued a letter of credit.

This means a clean bill of lading documents must often be issued to fulfill the requirements set forth in letters of credit. Many purchasers rely on letters of credit to pay for imports and banks may refuse to supply the money if a claused bill of lading is presented. A claused or foul bill is issued when the received vehicle/product is damaged or does not meet specifications.

 

Important Points of Clean Bill of Lading

  • A clean bill of lading is a document that declares there was no damage to or loss of the vehicle/goods during shipment to the recipient.

  • This bill of landing is issued by the product carrier who inspects the shipment for damages or missing quantities of the vehicle/goods.

  • The receiver can refuse a shipment if there is no clean bill of lading or a claused bill, which outlines damage to or missing quantities of vehicle/goods in a shipment.

  • Banks can refuse to advance money if shipments come with a claused bill of lading.

 

 

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