Carriage of Goods by Sea

The Hague Rules were extensively revised in 1968 by a Brussels Protocol. The amended version is known as the Hague-Visby Rules. Most countries are a party to the 1921 Hague Rules, and a few have adopted that Hague-Visby amendments such as France and the United Kingdom. A bill of lading serves three purposes, First it is a carrier"s receipt for goods. Second it is evidence of a contract of carriage, and finally it is a document of title. This means that the person rightfully in possession fo the bill is entitled to possess, use, and dispose of the goods that the bill represents.

             One aspect of the bill of lading is that of the receipt for goods. A bill of lading must describe the goods put on board a carrier, and state the quantity and their condition. The process once goods are to be shipped goes as follows, first the form is filled out in advance by the shipper, then as the goods are loaded aboard the shop, the carrier"s tally clerk will check to see that the loaded goods comply with the goods listed. The carrier, however is only respnsible to check for outward compliance. If all appears correct the agent of the carrier will sign the bill and return it to the shipper. This process leading up to the bill called a clean bill of lading. .

             If however a discrepancy is noted by the carriers clerk then a notation may be added to the bill of lading. This is called a claused bill of lading, which is a bill of lading indicating that some discrepancy exists between the goods loaded and the goods listed on the bill. These bills are normally unacceptable to third parties, including a buyer or the goods under a CIF contract or a bank which has agreed to pay the seller under a documentary credit on receipt of the bill of lading and other documents. Later notations will have no effect, and the bill will be treated as if it were clean. .

             When using bill of lading your need to distinguish between two different types, the straight bill and the order bill.

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