<P> Although the term "bill of lading" is well known and well understood, it may become obsolete . Articles 1: 15 & 1: 16 of the Rotterdam Rules create the new term "transport document"; but (assuming the Rotterdam Rules come into force) it remains to be seen whether shippers, carriers and "maritime performing parties" (another new Rotterdam Rules coinage) will abandon the familiar term "bill of lading". </P> <P> 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 (cost and freight) and FOB (free on board). </P> <P> There are two types where bill of lading can be used as carrier's receipt for goods . The first is on board bill of lading, also known as clean bill of lading . Clean bill of lading is used when there is no discrepancy between description filled by shipper and the actual goods shipped on board . Clean bill of lading indicates that the goods have been properly loaded on board the carrier's ship according to the prima facie evidence . If the carrier finds out that the bill of lading is different from the goods on board, one can provide contradictory evidence on clean bill of lading . It is valid as long as in the hand of the carrier, but once it is transferred and negotiated to the third party, it cannot be rebutted and the carrier can no longer mark discrepancy . The second is claused bill of lading . Claused bill of lading is used when there is some discrepancy between description in the bill of lading and the actual goods . For claused bill of lading, one can mark only when the goods are loaded . </P> <P> The bill of lading from carrier to shipper can be used as an evidence of the contract of carriage by the fact that carrier has received the goods and upon the receipt the carrier would deliver the goods . In this case, the bill of lading would be used as a contract of carriage . In this case, the bill of lading can be used if shipper does not properly ship the goods then the shipper cannot receive the bill of lading from the carrier . Eventually, the shipper would have to deliver the bill of lading to the seller . In this case, the bill of lading is used as a contract of carriage between seller and carrier . However, when the bill of lading is negotiated to a bona fide third party then the bill of lading becomes a conclusive evidence where no contradictory evidence can be introduced . It is because the third party cannot examine the actual shipment and can only pay attention to the document itself, not survey or examination of the shipment itself . However, the bill of lading will rarely be the contract itself, since the cargo space will have been booked previously, perhaps by telephone, email or letter . The preliminary contract will be acknowledged by both the shipper and carrier to incorporate the carrier's standard terms of business . If the Hague - Visby Rules apply, then all of the Rules will be automatically annexed to the bill of lading, thus forming a statutory contract . </P>

Who is responsible for filling out a bill of lading