The bill of lading (B/L) is made out according to the information contained in the dock receipt, or in some cases according to the completed working copy of the B/L supplied by the customs broker. If a dock receipt is clean, the B/L will be clean, otherwise the B/L will be foul. The bank will reject a foul bill of lading, unless stipulated otherwise in the letter of credit (L/C).
Clean Bill of Lading
The clean bill of lading bears an indication that the goods were received without damages, irregularities or short shipment, usually the words "apparent good order and condition", "clean on board" or the like are indicated on the B/L.
Foul Bill of Lading
The foul bill of lading---unclean bill of lading, dirty bill of lading or claused bill of lading---is the opposite of the clean bill of lading. It bears an indication that the goods were received with damages, irregularities or short shipment, usually the words "unclean on board" or the like are indicated on the B/L, for example, "insufficient packing", "missing safety seal" and "one carton short".
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