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.