Which document serves as evidence of contract of carriage for goods in international trade?

Which document serves as evidence of contract of carriage for goods in international trade?

• A. Certificate of origin
• B. Insurance policy
• C. Bill of lading
• D. Packing list

Answer: (C)

The contract of carriage in international trade is evidenced by the bill of lading. This document is issued by the carrier to the shipper and confirms that a contract to transport the goods has been formed, outlining key details like the voyage, loading and discharge ports, vessel, and the description and quantity of the cargo. It also acts as a receipt, showing that the carrier has taken possession of the goods for shipment. In many cases it serves as a document of title as well, meaning it can be endorsed or transferred to another party, which is important for financing and transferring ownership during trade. A certificate of origin simply verifies where the goods come from and is used for customs duties and tariff treatment, not to prove the carriage contract. An insurance policy shows coverage terms but does not establish the carriage agreement. A packing list provides a detailed inventory for handling and inspection but does not prove the contract of carriage.

The contract of carriage in international trade is evidenced by the bill of lading. This document is issued by the carrier to the shipper and confirms that a contract to transport the goods has been formed, outlining key details like the voyage, loading and discharge ports, vessel, and the description and quantity of the cargo. It also acts as a receipt, showing that the carrier has taken possession of the goods for shipment. In many cases it serves as a document of title as well, meaning it can be endorsed or transferred to another party, which is important for financing and transferring ownership during trade.

A certificate of origin simply verifies where the goods come from and is used for customs duties and tariff treatment, not to prove the carriage contract. An insurance policy shows coverage terms but does not establish the carriage agreement. A packing list provides a detailed inventory for handling and inspection but does not prove the contract of carriage.