Clean Bill of Lading - Explained
What is a Clean Bill of Lading?
Written by J. Mance Gordon
Updated at April 21st, 2024
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What is a Clean Bill Of Lading?
A clean bill of lading is a document issued by a carrier which indicates that the goods received in the vessel are in good condition and without any damage or defect. Product carriers issue a clean bill of lading when the bill is free from clauses, negative remarks, or notation of defects. Before carriers can issue a clean bill of lading, a thorough inspection of the goods in the vessel must take place in order to detect damage or loss that might have occurred.
Specifics of a Clean Bill of Lading
A bill of lading is an official document between a carrier and shipper of goods, this document can also serve as evidence of the delivery of goods to an agreed location. A bill of lading contains the following information:
- The type of product being shipped.
- Quality and quantity of the products.
- The predetermined destination.
A clean bill of lading, however, indicates that a carrier received the shipped goods without any damage or loss to them. Absence of a clean bill of lading stalls the acceptance of goods by importers because it indicates that the losses, defects or damages have occurred to the goods.