A Study On Legal Issues Of Remarks On Bill Of Lading

With the constantly deepening economic globalization, more than two thirds of the international trade on goods have been successfully made through marine transportation. Bill of Lading (B/L) , as the most important legal document in marine transportation, is directly related to the immediate interests of the shippers, the consignees, the carriers and etc. Upon its initial appearance, Bill of Lading only functioned as receipt and was the documentary certificate of having received and accepted goods, confirming in written form of the quality, quantity and surface condition of the shipped goods. With its coming into the trading fields,Bill of Lading begins to be endowed with another two functions——evidence oftransportation contracts and document of title to the goods. The function as receipt is always of the fundamental significance, which is demonstrated thoroughly in the field of transportation. Descriptions on Bill of Lading are the shipper's names or titles, and the name, quantity, quality, specification etc. of the goods. Where the goods are damaged during shipment, the carrier will note on the receipt indicating the actual conditions of the goods as the evidence of exemption of liability upon the delivery of goods. In such a manner, "Remarks on Bill of Lading" are produced.Remarks on Bill of Lading, mean the written remarks added on the face of Bill of Lading noting the accuracy of the name, mark, number of packages, weight or volume of the goods and the surface conditions of the goods objectively, reflecting the actual conditions of the goods recorded by Bill of Lading. To note an exception on Bill of Lading is a necessary requirement of international trade and the demonstration of the requirement in the transportation by the contract of sale and by settlement and remittance. A legitimately valid remark would effectively protect both the carrier's and the consignee's legal interests. It is because the remarks on Bill of Lading concern the interests of many parties such as the shipper, the carrier, the consignee and etc. that they carry a big weight in the transportation practices. The carrier shall prudently and cautiously make Bill of Lading, and be forbidden excessively issuing Clean Bill of Lading, whereas any tiny negligence may cause great financial losses. To note an exception on Bill of Lading is the carrier's important right and obligation. To command and exercise proper perspectives and methods is of great significance for the carrier in the transportation practices to correctly express themselves and to note an exception on Bill of Lading. This thesis, with it as the starting points, employs the writing method of combining the discussion of the theoretical knowledge of Remarks on Bill of Lading and the practical operations, hoping to more clearly understand the legal issues concerning remarks on Bill of Lading, helping the carrier properly perform such right and obligation, and further promoting the healthy development of our nation's shipping industry.This thesis is comprised of the following seven parts:The part of prelude mainly introduces the legal issues concerning Remarks on Bill of Lading and the purpose of composing this thesis.PartⅠtells the value of the existence and applicability of Remarks on Bill of Lading is introduced from the perspectives of the practical reasonableness and the legal feasibility.PartⅡelaborates on basic knowledge of the remarks on the Bill of Lading. Firstly, theauthor in the sight of the legal nature of noting an exception Bill of Lading——the carrier'sboth right and obligation to be performed timely without being expanded. Secondly, the author comparatively studies the following concepts: descriptions of Bill of Lading, Clean Bill of Lading, Unclean Bill of Lading, and remarked Mate's receipt, with the hope of better understanding the function of Remarks on Bill of Lading. Then, the author, respectively from the angles of theory and marine practices, introduces and explains the two manifestations and several standard categories of the remarks of Bill of Lading.PartⅢelaborates on the exercise of the right of remarking on the Bill of Lading. The author refers to the subject and object of the exercise of this right. Then, the author further discusses disputes arising from the exercise of the right, which are to be regarded and studied from the cause of and the dividing principle of and the dividing time-limit of the rights and obligations of the parties. Besides, the author makes explanations on two special issues when the carrier exercises the right of remarking on Bill of lading.PartⅣelaborates on the effect of remarking on Bill of Lading from the perspectives of the interested parties. Between the shipper and the carrier, when the surface conditions of the goods are not in conformity with the descriptions of Bill of Lading, the shipper, usually out of the purpose of settling exchange smoothly and procuring the completion of the contract of sale, issues a letter of indemnity to obtain Clean Bill of Lading from the carrier. A bona fide letter of indemnity, in marine usages and legal stipulations, is confirmed and accepted. The descriptions of Bill of Lading are the prima facie evidence of the carriers receiving the goods, but are conclusive evidence for such assignees of the Bill of Lading. If the Bill of Lading is properly remarked by the carrier, such remarks shall protect the carrier and the descriptions of the conditions of the goods shall not be valid as evidence, and so the carrier is exempted from liability. Between the shipper and the bank, the bank is only under the obligation of checking up the prima facie documents, and the shipper must submit to the bank Clean Bill of Lading in order to settle exchange smoothly. The checking-up of the documents is based upon the descriptions of and the remarks on Bill of Lading. The banks shall not blindly refuse the remarked Bill of Lading and must strictly determine what remarks are unclear, so as not to hinder the smooth payment.PartⅤdiscusses from statutes how to perfect the stipulations concerning Remarks of Bill of Lading and makes suggestions from marine practices about how to exercise the right of remarking Bill of Lading by the carrier. The maritime law is the legal discipline strongly emphasizing practical operations. Bill of Lading, as the most important legal document in the shipping industry, takes an important place in the whole discipline of the maritime law. Remarks on Bill of Lading, seemingly a trivial legal and marine issue, concerns the interests of many parties, and the starting point and end point of the author's studies is to hope to bring in practical operations more and sufficient guidance and help so as to promote the healthy development of our nation's shipping industry. As of the perfecting and revising relevant laws and special legislation, two suggestions are brought forward. Then, from the practical operations, the author proposes five points as of how to correctly and properly exercise the right of remarking Bill of Lading.The part of conclusion summarizes the main viewpoints of this thesis and makes prospects.