Explain the following business documents and state two uses of each: Consignment note; Delivery note; Bill of lading; Bill of sight.

Answer Details

The following are business documents used mainly in the movement and transport of goods.

1. Consignment Note

A consignment note is a document that accompanies goods sent by road or rail. It is prepared by the sender (consignor) and gives details of the goods, the sender, the receiver (consignee) and the carriage charges.

Two uses:

• It serves as evidence of the contract of carriage between the sender and the carrier.
• It gives the receiver full details of the goods being delivered so that they can be checked on arrival.

2. Delivery Note

A delivery note is a document sent by the seller along with the goods to the buyer, listing the goods being delivered. The buyer signs a copy to acknowledge receipt.

Two uses:

• It enables the buyer to check that the goods delivered agree with the goods ordered.
• The signed copy serves as proof (evidence) that the goods were actually delivered and received.

3. Bill of Lading

A bill of lading is a document used in sea transport. It is issued by the shipping company to the exporter and acknowledges that the goods have been received on board for shipment.

Two uses:

• It is a document of title to the goods, so whoever holds it can claim the goods at the port of destination.
• It serves as a receipt for the goods shipped and as evidence of the contract of carriage by sea.

4. Bill of Sight

A bill of sight is a document that an importer presents to the customs authorities when he does not have full details of the goods he is expecting. It allows the goods to be landed and inspected before duty is finally assessed.

Two uses:

• It enables the importer to inspect goods of unknown description before paying the correct duty.
• It allows the customs to grant provisional clearance so that the goods can be examined and the accurate duty determined.