Claused Bill of Lading

Claused Bill of Lading

Claused Bill of Lading


The Claused Bill of Lading documents refers to a specific kind of bill of lading in the shipping of goods. The claused bill of lading shows a shortfall or damage in the delivered goods. A bill of lading (BOL) is a legal document that tracks a shipment from start to finish. When a bill of lading document is claused, it means that the legal bill of lading shipment did not provide what was promised.

NOTE: In a situation that produces a claused bill of lading document, the receiver, not the shipper, declares the claused bill of lading.


How a Claused Bill of Lading Works


The claused bill of lading is used when shipped vehicles/products deviate from the delivery specifications or expected quality. Many people also call the claused bill of lading a "dirty bill of lading" or "foul bill of lading." If an individual receiver issues a claused bill of lading, the exporter may face future difficulty. For example, if the goods arrive and the receiver deems them damaged or determines some of the goods went missing, the exporter may experience trouble receiving payment.

When shipping vehicles/goods, purchasers rely on letters of credit for payment. However, most banks refuse to accept any claused bills of lading documents. Thus, if a receiver files a claused bill of lading document and the exporter relies on letters of credit to pay for the goods originally, they will not receive repayment for the vehicles/goods, and thus will experience a loss.


Bill of Lading vs. Claused Bill of Lading


In general, a bill of lading (BOL) is a legally binding document that includes both the shipper and carrier. These documents include the following details, such as the type, quantity, and destination of the goods being carried. For example, if a shipping company ships any cargo, a completed bill of lading containing all the details of the cargo will accompany the shipment.

The shipping company uses the bill of lading document upon delivery as well. When the company delivers the shipment to its destination, the shipping company must deliver the bill of lading at the same time, and the receiver must sign it upon completed delivery.

In the case of a claused bill of lading, the delivered vehicle/goods either have not all arrived or have arrived damaged in some way. There are several kinds of bills of lading that cover various situations that may occur during shipping.

 For example, a Through Bill of Lading for a Bill of Lading covers the transportation of vehicle/goods both domestic markets and across international borders. Governments often require a through bill of lading when a company exports vehicle/goods to another country. By comparison, an inland bill of lading describes a contract for the overland transportation of vehicle, as opposed to overseas shipments.



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