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.

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RELATED FAQS
  1. Can I have more than three original Bills of Lading?

    How many bills of lading copies are allowed when importing or exporting? Should I ship by air or sea? What type of bill of ... Read Answer >>
  2. I have lost my original Bills of Lading. Can I obtain a new set?

    Find out why an original bill of lading cannot be replaced if it is lost or stolen and how a court order must be obtained ... Read Answer >>
  3. I need a telex release for a Bill of Lading. What must I do to obtain it?

    Learn how to obtaining a telex release as well as what it is used for. Find out why a company might request this release ... Read Answer >>
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