A Bill of Lading is a legal document issued by a carrier to the shipper of goods. It serves as a receipt for the goods, a contract for transportation, and as evidence of the ownership of goods.
The importers use the Bill of lading to claim the goods at the destination port. Furthermore, it is one of the mandatory documents required for customs clearance and the release of imported goods.
For instance, if you are importing electronics to Philippines from China, the shipping company will issue your supplier a Bill of Lading once it takes possession of the container. This document details the contents of the container, the quantity of items, and the destination port in the Philippines. Your seller will provide this Bill of Lading to you so you can claim the goods upon arrival. If needed, you can transfer ownership to another party by endorsing the document.
This legal document is usually mandatory for applying for import licenses (countries like Malaysia, Indonesia, etc.) and for any import activities that involve shipping like manufacturing in Thailand.