Clean Bill of Lading
A Clean Bill of Lading is a bill of lading that bears no clauses or notations recording damage, shortage or defective condition of the goods or their packaging at the time the carrier received them. It confirms the cargo was taken on board in “apparent good order and condition” — the opposite of a claused (or “dirty”/“foul”) bill, which the carrier annotates when it notices damage, such as torn packaging or rusted goods.
The distinction is commercially critical. Buyers and banks generally require a clean bill of lading under a letter of credit, because a claused bill signals the goods may already be damaged, potentially defeating payment. A clean bill supports the presumption that any damage found on arrival occurred during carriage, strengthening a cargo claim. Carriers, in turn, will only issue a clean bill if the goods genuinely appear sound — so the clean-versus-claused status is a key checkpoint at loading.
Under a letter of credit, a claused bill of lading can stop the seller getting paid — banks want a clean bill as evidence the goods left in good order. The clean-versus-claused status also shapes who is liable for damage found on arrival. It is a make-or-break detail at loading for both payment and claims.
What is a claused (dirty) bill of lading?
One the carrier has annotated to note damage or shortage in the goods or packaging at receipt — the opposite of a clean bill.
Why do banks require a clean bill of lading?
It evidences the goods were shipped in apparent good order; a claused bill signals possible damage and can defeat payment under a letter of credit.