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Importance of Bill of Lading

The Bill of Lading is used in international trade in export and import shipments via sea. What are the 3 major importance of the Bill of Lading in export and import trade? Let’s take a look. Know more about international import and export and start your business with us.

Evidence for a carriage contract:

A Bill of Lading serves as evidence for a contract of carriage by the sea. It means that the Bill of Lading is proof of shipment under the sea mode of transport.

Proof of receipt of shipment by carrier:

The document represents receipt by the carrier of goods shipping to an overseas destination. Once the export customs procedures in a country have been fulfilled, the cargo is turned over to the shipping company who will ship the goods to the final destination. Bills of lading are issued by carriers or their agents as proof of receipt of cargo.

Bill of Lading is a document of title:

This document provides proof of shipment in various authorities. It is a legal document that is approved under Negotiable Instrument Act. If the original bill of lading is not present, the goods cannot be delivered at their destination. Did you enjoy our article? Do share your experience in the comment section. The information provided above is part of our Online Export Import Training course.