A bill of lading is issued by a carrier when goods are loaded for transport. It confirms what was received, under what terms, and, for negotiable forms, who has the right to take delivery. Trade finance banks often require an original B/L under a letter of credit.
Key takeaways
- Clean bills state goods were received in apparent good order; claused bills note damage or shortfall.
- Negotiable bills can transfer control of the goods by endorsement.
- Electronic bills exist in some corridors but paper originals still dominate many trades.
- Mismatch between the B/L and the LC is a classic documentary discrepancy.