DEFINITION of 'Clean Bill Of Lading'

A clean bill of lading is one kind of bill of lading, declaring that there was no damage to or loss of goods during shipment. The product carrier will issue a clean bill after thoroughly inspecting the packages for any damage, missing quantities or deviations in quality.

BREAKING DOWN 'Clean Bill Of Lading'

A clean bill of lading is one kind of bill of lading

Very quickly, a bill of lading is a legal document between the shipper and carrier detailing the type, quantity and destination of the goods being carried. The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination. 

Specifics of a Clean Bill of Lading

So, a bill of lading is a contract of carriage between a shipper and a carrier, outlining the details of a particular shipment. And a clean bill of lading indicates that the carrier received the goods in good condition, before they actually ship them. Often, a clean bill of lading must be issued to fulfill the requirements set forth in letters of credit. Many purchasers rely on letters of credit to pay for imports and banks may refuse to supply the funds if a claused bill of lading is presented. A claused or foul bill is issued when the received product is damaged or does not meet specifications.

RELATED TERMS
  1. Through Bill Of Lading

    A bill of lading that allows the transportation of goods both ...
  2. Claused Bill Of Lading

    A claused bill of lading shows a shortfall or damage in the delivered ...
  3. Uniform Bill Of Lading

    A uniform bill of lading is an agreement between an exporter ...
  4. Ocean Bill Of Lading

    An ocean bill of lading is a document required for the transportation ...
  5. Bill Of Sale

    A bill of sale is a formal document detailing in writing a sale ...
  6. Billing Cycle

    A billing cycle is the interval of time from the end of one billing, ...
Related Articles
  1. Investing

    How to Use a Bill of Lading

    A Bill of lading, sometimes called a BL or BoL, is a legal document between a shipper of a good, and a transporter or carrier. It is often used in international trade. The word “lading” derives ...
  2. IPF - Banking

    Procrastinator's Guide To Bill Payment

    Avoid punishing late fees and keep your credit score intact with these 10 tips.
  3. Investing

    Bill of Exchange

    A bill of exchange is a document used in international trade to pay for goods or services. It is signed by the person promising to pay, and given to the person entitled to receive the money. ...
  4. Personal Finance

    8 Steps To An Organized Financial Life

    Disorganization makes planning difficult, and that can cost you big-time. Follow these 8 steps to an organized financial life.
  5. Personal Finance

    Fed Will Print More $50 Bills This Year

    It costs three times more to produce a $50 bill than a $1 bill. Here's why:
  6. Personal Finance

    What to Do When You Can't Pay Your Medical Debts

    There’s no shame in having medical debt that you can't pay. Here's how to get help.
  7. Insights

    Apple Is Expanding Mobile-Carrier Billing

    Apple has launched its mobile-carrier billing services in Japan, Singapore and Taiwan, to facilitate purchases with just a tap.
  8. Trading

    The Life Of A $20 Bill

    Next time you pull a $20 out of your wallet, consider where it has been.
  9. Personal Finance

    Mortgage Borrowers Face Some Changes With Senate Bill

    If the financial reform bill is approved, changes are coming for mortgage borrowers.
  10. Insurance

    Do This If Health Insurance Doesn’t Cover Your Bills

    Health insurance doesn't pay enough to help the millions of consumers who are drowning in medical debt. Are there any other options to soften the blow?
RELATED FAQS
  1. 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 >>
  2. Can I improve credit score with utility bill?

    In most states, utility providers aren't obligated to regularly report payment histories to the major credit bureaus. Read Answer >>
Trading Center