What is Bill of Lading? How does it differ from bill of entry?

Bill of Lading is an essential document required at the time of an export transaction. It is issued by the shipping company as a token of acceptance that the goods have been put on board in its vessel. A Bill of Lading is an undertaking from the shipping company to transfer the goods to the port of destination. Bills of Lading are freely transferable. In contrast, a Bill of Entry is required at the time of an import transaction. It is a form supplied by the customs office and filled by the importer once the goods are received. A Bill of Entry is submitted at the customs office with information such as the name and address of the importer, name of the ship in which the goods were transported, number of packages, marks on the package, description of imported goods, quantity and value of the imported goods, name and address of the exporter, port of destination and customs duty payable.

Bill of lading is the document signed by the shipping company’s representative stating that the goods have been booked for shipment. It contains the terms and conditions on which the goods are to be delivered at the destination port. It is a document of title to the goods and freely endorsable. It contains the following particularsname of the ship, date of shipment, port of loading, destination port, name of the exporter, name of the importer, etc. 

On the other hand, Bill of entry because it is a document used by an Importer, which contains details of goods imported. It is used by the customs authority for determining the import duty. It contains details such as name and address of importer and exporter, name of ship, description of goods, quantity and value of goods.

Bill of lading is issued by the shipping company after the receipt of freight; it serves as evidence that the shipping company has accepted the goods for carrying to the designated destination. In case the goods are being sent by air, this document is referred to as airway bill. On the other hand “Bill of entry” is filled by the importer for assessment of customs import duty.

One appraiser examines the document carefully and gives the examination order. The importer procures the said document prepared by the appraiser and pays the duty, if any After payment of the import duty, the bill of entry has to be presented to the dock superintendent. The examiner gives his report on the bili of entry which is then presented to the port authority which issues the release order after receiving necessary charges.