Required usually for import of industrial equipment, meat products, and perishable merchandise, it certifies that the item meets the required specifications and was in good condition and correct quantity when it left the port of departure. Also called inspection certificate or inspection report.
History
The bill of lading evolved with the growth of international trade in the medieval world. Merchants needed a way of knowing what had been loaded onto ships, and began to issue signed receipts to certify the loading of goods on to vessels and to verify the condition of those goods at the time of loading. With the growth of mercantilism, these receipts began to be used as the title to the goods, and the bill of lading became established in much the same form as we know today
The current regulations on bills of lading were codified by the Hague Rules in 1924
Uses
As a receipt
The principal use of the bill of lading is as a receipt issued by the carrier once the goods have been loaded onto the vessel. This receipt can be used as proof of shipment for customs and insurance purposes, and also as commercial proof of completing a contractual obligation, especially under Incoterms such as CFR and FOB
As title
The bill of lading confers title to the goods to the consignee noted on the bill. The bill of lading may also be made out "To Order", which confers title to the goods to the holder of the ship
Because the bill of lading represents title to the goods detailed upon it, it can be traded in much the same way as the goods may be, and even borrowed upon if desired