What is a bill of lading ? How does it differ from bill of entry ?

(Annual Exam. 2011) 

Bill of Lading : It is a receipt giving details of the goods shipped by the exporter signed by the captain or master of the ship. It is an undertaking to the effect that the goods stated there in would be delivery to the person where name is expressed or endorsed there on by the exporter.

The bill of lading contain the following particulars :

(a) Name of the ship. (b) Place of loading.

(c) Port destination. (d) Date of shipment.

(e) Freight. (f) Name of exporter.

(g) Name of importer.

(h) Number of packages.

(i) Marks thereon, if any.

After giving the necessary information, in the bill of lading, the exporter will submit it, along with the dock’s or mate’s receipt, to the shipping company.

Then, the bill of lading is examined by the shipping company. There after, the shipping company will send a “Freight Note” to the exporter giving the freight charges for the goods. If the exporter pays the freight as given in the freight note, the bill of lading duty counter signed by the captain or master of the ship, will be delivered to the exporter.

Bill of Entry is a form supplied by the customs office to the importer. It is prepared by the importer at the time of receiving the goods. It contain information like :

(a) Name of ship.

(b) Name and address of the imports.

(c) Port of destination.

(d) Customs duty payable.