In foreign trade (imports and exports), transport documents are not merely logistical paperwork; they are instruments that produce direct legal consequences in relation to payment, delivery, customs procedures, and dispute management. In particular, the process that begins with the question “what is a bill of lading?” extends to other critical issues such as what a bill of lading number is, how bill of lading tracking is conducted, what information bill of lading instructions must contain, and what freight is and how freight charges are assessed in customs valuation. For this reason, bills of lading and freight are among the areas that most frequently give rise to disputes in Customs Law, both in terms of documentary compliance and financial obligations.
Under Turkish law, the bill of lading has been expressly defined, and types commonly encountered in practice—such as the received-for-shipment bill of lading and the shipped/on-board bill of lading—have also been directly regulated. Freight, on the other hand, refers both to the contract of carriage by sea and to the freight charge that constitutes the counter-performance under that contract; it becomes particularly important in the calculation of customs value.
What Is a Bill of Lading?
Under the Turkish Commercial Code, a bill of lading is a transport document of the nature of a valuable instrument which proves that a contract of carriage has been concluded, shows that the goods have been received by the carrier or loaded onto the vessel, and under which the carrier is obliged to deliver the goods only upon presentation of the bill of lading.
From the perspective of customs practice, this definition gives rise to two practical consequences. First, the bill of lading sits at the center of the principal documentary set answering the questions: what goods, what carriage, and which parties are involved? Second, in terms of delivery of the goods, the principle of “delivery against presentation” is particularly strong. Indeed, the law expressly provides that delivery shall be made in return for the surrender of a copy of the bill of lading endorsed accordingly by the person taking delivery.
What Is a Bill of Lading Number and Why Is Bill of Lading Tracking Important?
In practice, the question “what is a bill of lading number?” generally refers to the unique reference number assigned to the bill of lading by the carrier line. This number performs a critical function for the proper filing of the documentary set, banking transactions (particularly documentary credit sales), the delivery process, and, where necessary, bill of lading tracking. Such tracking is usually carried out through the systems of the carrier or its agent by reference to this number. Legally, however, the true value of the document lies in its representative and evidentiary function.
What Are Bill of Lading Instructions?
In practice, bill of lading instructions are the set of directions given by the shipper/consignor (or a logistics operator) to the carrier in response to the question of how the bill of lading should be issued. Incorrect or incomplete instructions may directly lead to customs and delivery disputes by causing errors such as incorrect consignee details, the wrong payment or delivery model, inconsistencies in the description of the goods, or inaccurate indication of freight items. Under the heading of “instructions of the shipper,” the law further regulates that, particularly in the case of an order bill of lading, the master may comply with such instructions only if all originals of the bill of lading are returned. This provision demonstrates the strong legal effect of such instructions in relation to the bill of lading.
Is There a Tax on Bills of Lading?
In practice, the expression “bill of lading tax” generally refers to stamp tax. Under the Stamp Tax Law, the general rule is that documents listed in Table No. (1) annexed to the law are subject to stamp tax. In the relevant tariff published for 2026, the item “Bills of Lading” is subject to a fixed amount of TRY 161.80. Since fixed amounts are updated from year to year by communiqués, however, the amount applicable on the transaction date should always be separately verified.
Bills of Lading in Terms of Transferability
The most critical feature of a bill of lading within the transport chain is that it represents the goods and, for certain types, its transferability may affect rights of disposal over and delivery of the goods. The Turkish Commercial Code expressly states that a bill of lading may be issued to order, to bearer, or in the name of a specific person; it further provides that, unless otherwise agreed, at the request of the shipper the bill of lading shall be issued “to the order of the consignee” or “simply to order.”
Straight Bill of Lading (to a named consignee)
This type is issued in the name of a specific consignee. Its transferability is more limited than that of order bills of lading; in practice, it increases the level of discipline regarding identification, authority, and documentary verification upon delivery.
Order Bill of Lading
This is the type issued with an “order” notation and is more suitable for economic circulation through a chain of endorsements. It is particularly preferred in trade transactions involving financing, as it supports security in receivables and delivery. The law also clarifies that, as a rule, the term “to order” means “to the order of the shipper.” In addition, the requirement that all originals be returned in order for the shipper’s instructions to be implemented serves to preserve the logic of the endorsement chain and the lawful holder.
Bearer Bill of Lading
This is a high-risk form under which possession of the document may itself confer the authority to demand delivery. The law accepts that a bill of lading may be issued to bearer. In our view, however, due to security and abuse risks, it should only be used on a limited basis and under specific conditions in practice.
Bills of Lading in Terms of Loading Criteria
In terms of the time of loading, bills of lading are generally examined in practice around two principal concepts: the received-for-shipment bill of lading and the shipped/on-board bill of lading.
The Turkish Commercial Code states that, for goods not yet loaded onto the vessel but received for carriage, a received-for-shipment bill of lading may be issued with the consent of the shipper. It further provides that, once the goods are loaded onto the vessel, the carrier is obliged—upon return of the temporary receipt or the received-for-shipment bill of lading—to issue, in the requested number of originals, a shipped/on-board bill of lading.
More importantly, the law expressly states that if an annotation is made on the received-for-shipment bill of lading indicating when and on which vessel the goods were loaded, that document shall have the legal effect of a shipped/on-board bill of lading. This provision concretely reflects, under Turkish law, the distinction between a “Received for Shipment B/L” and an “On Board B/L.”
In international trade, particularly in documentary credit transactions, the importance of the “On Board” notation becomes even greater. In guides regarding the application of UCP 600 published by the International Chamber of Commerce, detailed explanations are provided on how a bill of lading is evaluated under Article 20 of UCP 600 with respect to the named vessel, the port of loading, and the “on board / shipped on board” indication. In this context, the “on board” annotation is central to documentary examination logic, as it is generally used to evidence both the shipment date and the fact that the goods were loaded onto the named vessel.
In customs practice, this issue may also become important in distinguishing the loading date/annotation, the commencement of the transport chain, and the period or cost item to which the freight charge relates; indirectly, it may also affect the accurate declaration of customs valuation elements.
What Is Freight?
In its simplest form, freight is the transportation charge paid in return for the carriage of goods by sea. In Customs Law, however, freight is not merely a commercial cost item; in certain circumstances, it is an element that directly affects the tax base for customs valuation and import duties.
The Customs Law sets out the additions to be made to the price actually paid or payable when determining the customs value of imported goods. One of these additions is the cost of transport and insurance up to the port or place of entry into Türkiye for the imported goods. This wording clearly explains why, in practice, freight charges—and, within a certain scope, insurance costs—are critical elements of the tax base for import duties.
The law further provides that transport and insurance costs incurred after the point of entry of the goods are not to be included in the customs value, provided that they can be separately identified. This distinction forms the basis of disputes in practical matters such as how freight charges are reflected on invoices under delivery terms like CFR, CIF, and FOB, how they are evidenced through separate freight invoices or manifest data, and how the distinction between foreign and domestic costs is made.
For this reason, if freight charges are not properly structured on the import side, additional taxes, interest, and administrative proceedings may arise during subsequent customs valuation reviews. Depending on the nature of the specific case, correspondence with the customs administration, transport contract/bill of lading data, and accounting records should be evaluated together.
What Are the Essential Elements of a Freight Contract?
The freight contract is regulated under the heading “Freight Contract” in the Turkish Commercial Code, which sets out its basic framework. According to the law, in return for freight, the carrier undertakes to carry goods by sea either by allocating the whole or a part of the vessel to the charterer under a voyage charter or by carrying specific identified goods under a contract of affreightment. On this basis, the essential elements of a freight contract may be read as follows:
- Carriage obligation: The carriage of goods by sea is at the core of the contract.
- Parties: At a minimum, the carrier and the charterer/shipper are involved; in practice, the roles of the consignor and consignee are also decisive.
- Consideration (freight charge): It is essential that freight be agreed and paid in return for the carrier’s performance. If freight has not been agreed, the customary freight shall apply.
- Framework for disposal and delivery: The bill of lading is often a critical means of proof and representation for the performance of the freight contract and for delivery/title relations. The law clearly establishes the definition of the bill of lading and the delivery mechanism.
The due date of the freight charge is also expressly regulated by law: freight becomes due when delivery of the goods is requested and, in any event, at the end of the unloading period. This rule is important particularly in determining the timing of payment in disputes relating to delivery, demurrage, detention, and rights of retention.
It should nevertheless be remembered that the cost items under a freight contract are not identical to the elements that are to be added to or excluded from customs value. Drawing this distinction correctly is essential in preventing later allegations of undervaluation.
What Are the Types of Freight Contracts?
The Turkish Commercial Code defines freight contracts together with their types and establishes two principal categories: the voyage charter and the contract of affreightment.
Voyage Charter
This type is based on the logic that the carrier allocates the whole vessel, a part of it, or a specific space on it to the charterer for carriage on a particular voyage. The law expressly lists this type when defining the freight contract. In practice, the distinction between full charter and partial charter is shaped by the scope of the allocation, and alignment between the bill of lading instructions and the charterparty provisions becomes important.
Contract of Affreightment / Liner or Parcel Cargo Arrangement
This type concerns the carriage of identified goods—often within a liner service framework—with the aim of delivering them to the consignee. The law separately lists this type as part of the freight contract. In such carriage operations, the bill of lading becomes even more visible in standardizing the transaction flow and ensuring documentary discipline at the delivery stage.
In practice, the term “charter” often also evokes other vessel allocation contracts, such as time charter arrangements. However, it should not be overlooked that, within the Turkish Commercial Code’s definition of freight contracts, the principal distinction is established between voyage charter and contract of affreightment. Making this distinction correctly is decisive in determining which rules apply, which document serves which function, and which evidentiary instruments will come to the fore in the event of a dispute.
Assessment and Conclusion
Although bills of lading and freight are sometimes perceived as technical matters operating in the “background” of customs procedures, in reality they touch upon critical areas such as the right to delivery, documentary payment, customs valuation, stamp tax, and dispute management. The definition of the bill of lading, the distinction between received-for-shipment and shipped/on-board bills of lading, and the various modes of transfer may all seriously affect both the transport chain and the resulting legal and tax consequences if not properly structured.
Particularly in import transactions, separating and properly evidencing the freight charges that must be included in customs value—namely, those up to the port or place of entry—from subsequent costs is key to reducing the risk of future additional assessments. Similarly, stamp tax—often referred to in practice as “bill of lading tax”—should not be overlooked at the document issuance stage.
At this point, issues such as the preparation of bill of lading instructions, documentary consistency in bill of lading tracking processes, traceability through the bill of lading number, and alignment between the freight contract and customs valuation all determine both the operational efficiency and legal security of companies. The Turkish Commercial Code’s detailed regulation of delivery against presentation of the bill of lading and of the instruction mechanism directly reflects this importance. In addition, the fact that delivery of goods in customs practice is tied to the bill of lading and, in the case of order bills of lading, to transfer by endorsement, makes the intersection between Customs Law and private law particularly visible.
Reducing the risk of disputes arising from bills of lading and freight in your import and export operations is possible only by properly structuring the contractual and documentary framework from the outset. In such processes, support from a Customs Law attorney can make costs more predictable both in terms of preventive legal advisory services and dispute resolution.
At Bektaş Law Office, with our expert team in Customs Law, we provide our clients with strategic legal support in relation to customs valuation matters (including freight charges), bill of lading-related delivery and endorsement disputes, and the resolution of commercial disputes. For further information, please feel free to contact our office.