I (Meaning and importance of Exports) Unit Structure

13.7.3 IMPORTANCE OF BILL OF LADING: 
I) Importance of BL to the Exporter 
a) Bill of lading is a legal document. In the event of dispute it 
can be presented in a court of law. 
b) It is a contract of transportation. 
c) It is an acknowledgement of the receipt of the goods on 
board the ship. 
d) It enables the exporter to send a shipment advice to the 
buyer. 
e) It helps the exporter to file claim of compensation, if goods 
are damaged in transit. 
f) It helps the exporter to calculate exact amount of freight 
while submitting CIF quotation. 
II) Importance of BL to the Importer 

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a) It is a document title of goods; as such he can claim the 
possession. 
b) It is a semi-negotiable document i.e. its ownership can be 
transferred by endorsement and delivery. 
c) It enables him to pay proper freight amount under FOB 
contract. 
III) Importance of BL to the shipping company 
a) It helps the shipping company to collect the freight from the 
shipper or the importer. 
b) It protects the shipping company in sense that goods 
damaged before loading on the ship is shown in bill of 
lading. 
CHECK YOUR PROGRESS: 
 
1. Fill in the blanks: 
a. A bill of lading does not containing any indication that the 
goods were defective when boarded is called as ----------. 
b. The words ---------------is mentioned on the Freight paid bill of 
lading. 
c. In this importer / consignee / agent is named in the----------- 
bill of lading. 
d. -------------------------- indicates that goods have been property 
packed and there is no defect of any kind in the packing. 
e. Certificates for clearance are generally issued by ---------------
-----------and ----------------------------. 
f. The certified copy of the -------------------is called consular 
invoice. 
2. Define the following terms 
a. Clause Bill of lading
b. State bill of lading 
c. On board bill of lading 
d. Container bill of lading 
e. Qualified mate receipt 
f. Consular invoice 
g. Certificate of origin