In international trade, documentation is everything. Two of the most commonly used terms are the bill of lading and bill of entry. While both are essential for smooth import and export processes, they serve different purposes. If you’re new to the world of global trade, it is important to understand what each document means and how they differ.
What is the difference between bill of lading & bill of entry?
To put it simply:
- A bill of lading is a legal document issued by the carrier to the exporter. It acts as a shipment receipt and contract between the exporter and the carrier.
- A bill of entry, on the other hand, is a declaration filed by the importer with the customs department. It is required for clearing goods from customs during import.
Here’s a quick look at the key differences:
- Purpose:
- Bill of lading proves goods were shipped.
- Bill of entry is used to assess duties and taxes.
- Used by:
- Bill of lading: Exporter, Carrier, Importer.
- Bill of entry: Importer, Customs Authority.
- Issued by:
- Bill of lading: Shipping carrier.
- Bill of entry: Filed by importer or customs broker.
Both documents are often used alongside a shipping bill in export, which is also submitted to customs to move goods out of the country.
Importance of marine insurance for shipping bills
When you're dealing with international cargo, there are several risks involved—damage, theft or even loss of goods. This is where marine insurance becomes essential. It covers financial losses that may occur while goods are in transit via sea or air.
- A marine insurance policy ensures that in case of any unforeseen mishaps, your financial investment is protected.
- This is especially important when you’re preparing a shipping bill in export or an import bill, as it adds an extra layer of safety to your documentation process.
Conclusion
Understanding the bill of lading and bill of entry is crucial for anyone involved in trade. One proves the shipment, while the other enables customs clearance. For a hassle-free experience, always make sure your documents are in order and never skip getting marine insurance. It is a small step that saves you from big losses.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.