Difference between Clean On Board Bill of Lading and Shipped On Board Bill of Lading.

One of the readers of this web blog requested recently to explain the term Clean On Board Bill of Lading and Shipped on board Bill of Lading.

This is one of the common doubts among the traders to differentiate Shipped on Board Bill of Lading and Clean On Board Bill of Lading.  Are shipped on board bill of lading and clean on board bill of Lading same? If different, what are the difference between Clean On Board Bill of Lading and Shipped On Board Bill of Lading?

• What is Shipped On board Bill of Lading? 
• How does Shipped On board Bill of Lading work?

I have discussed about the step by step movement of goods from seller’s premise to buyer’s premise in detail in a couple of articles in same website.  In an export trade, once after completion of necessary customs export formalities at exporter’s country, the goods are handed over to Carrier for transportation to buyer’s destination.  If cargo is moved by sea, the carrier issues a receipt of goods to the shipper which is called Bill of Lading.  If said goods have not been gone on board the vessel, the bill of lading shows ‘Received for shipment’, without mentioning ‘Shipped On Board’.   If the shipper needs to mention ‘Shipped On Board’ on Bill of Lading, such bill of lading is issued once after the shipment gone ‘On Board’ the vessel.    Shipped On Board bill of lading may be demanded by buyer as per mutually agreed contract of sale or it may be required for the exporter to claim different export benefits from various government agencies.

• What is Clean On board Bill of Lading?   
• How does  Clean On board Bill of Lading work?

Clean On Board Bill of Lading is commonly mentioned under a contract of Letter of Credit between buyer and seller in terms of Transport Document under shipment of sale carries.

I have discussed about Clean Bill of Lading under my article on ‘different types of bill of lading’ in this web blog.

Let us discuss about Clean Bill of Lading and then Clean On board Bill of Lading.  A clean bill of Lading means, the carrier of goods receives cargo with good condition with proper packaging.    In other words, the cargo received under a clean bill of lading has no clause, notation or remarks on the quantity or quality of goods as well as packing.  Once after issuing a clean bill of lading by carrier, the responsibility on poor packing, damage of goods and other handling defective falls on carrier.  

Once the goods received with good conditions with proper packing gone on board the vessel, the carrier issues Clean On board Bill of Lading.  Clean On board Bill of Lading certifies that the cargo on board has no negative clause, notation or remarks on the quantity, quality or packaging of goods.   In other words, when issuing a clean on board bill of lading, the carrier certifies that the goods gone on board the vessel are in good conditions with proper packing.