DEFINITION of 'Claused Bill Of Lading'
A bill of lading that shows a shortfall or damage in the delivered goods. Typically, if the shipped products deviate from the delivery specifications or expected quality, the receiver may declare a claused bill of lading.
Also known as a "dirty bill of lading" or "foul bill of lading."
BREAKING DOWN 'Claused Bill Of Lading'
Being issued a claused bill of lading can be troublesome for most exporters. If the goods are deemed damaged or some quantity is missing, the exporter may have difficulty receiving payment. Because most banks will refuse to accept any claused bills of lading, purchasers relying on letters of credit to pay for the goods will be unable to receive funds if the bill is foul.