The Indian Parliament has passed the Bills of Lading Bill, 2025, replacing the colonial-era Indian Bill of Lading Act of 1856. This new law modernises the legal framework governing shipping documents. It aims to simplify procedures and address contemporary challenges in maritime trade. The bill was passed by the Rajya Sabha through a voice vote after earlier approval in the Lok Sabha.
Background and Purpose
A bill of lading is important document issued by a freight carrier to a shipper. It details the type, quantity, condition and destination of goods being transported. The document serves as proof of contract and ownership of goods during shipping. The 2025 Act updates this framework to reflect modern shipping practices and legal requirements.
Key Provisions of the Bill
The Bill of Lading Bill, 2025, provides for the transfer of rights and liabilities to consignees and endorsers named in the bill of lading. This ensures that ownership and legal responsibilities pass correctly upon consignment or endorsement. The legislation also allows a bill of lading to be valid even if goods have not been shipped, a point that has raised concerns about potential misuse.
Concerns and Criticism
Some lawmakers expressed caution over the provision allowing bills of lading to be valid without goods being shipped. This could lead to fraudulent activities such as fake bills, hawala transactions and illegal trading. Critics emphasised the need to balance modernisation with accountability, equity and legal clarity.
Electronic Bills of Lading
The Act does not cover electronic bills of lading (e-bills). The Union Minister of Ports, Shipping and Waterways noted that e-bills require a separate legal framework. He clarified that an e-bill is not just a digital copy of the physical document but a distinct legal instrument needing dedicated legislation.
Impact on Ports and Shipping
The Bill aligns with broader efforts to modernise India’s ports and shipping sector under initiatives like the Sagarmala programme. This programme focuses on developing world-class ports and improving connectivity with railways and roadways. The new law is expected to enhance efficiency and legal certainty in maritime trade.
Parliamentary Process
The Bill was introduced and moved for consideration by Union Minister Sarbananda Sonowal. It was adopted clause-by-clause in the Rajya Sabha after the Opposition staged a walkout. The Bill had earlier been passed by the Lok Sabha in March 2025, completing the legislative process.
Questions for UPSC:
- Critically analyse the role of bills of lading in international trade and their impact on maritime commerce.
- Explain the significance of modernising maritime laws like the Bills of Lading Act in the context of India’s economic development.
- What are the challenges and opportunities presented by electronic bills of lading? How can legislation balance innovation and security?
- Discuss the importance of port connectivity and infrastructure development under programmes like Sagarmala. How do they influence India’s global trade competitiveness?
