Document background
The Freight Paid Bill of Lading is a fundamental document in international maritime trade, particularly within the Indonesian legal framework. It is used when the freight charges have been paid in advance by the shipper, as indicated by the 'Freight Paid' stamp or notation. This document type is governed by Indonesian law, specifically the Commercial Code (KUHD) and Shipping Law No. 17 of 2008, while also adhering to international maritime practices. The Freight Paid Bill of Lading serves multiple crucial functions: it acts as a receipt confirming the carrier's possession of goods, provides evidence of the contract of carriage, and serves as a document of title enabling the transfer of ownership. It is particularly important in letter of credit transactions and international trade where proof of freight payment and cargo ownership must be clearly documented.
