Documentation fraud, Fraudulent bills of lading

Abstract: This thesis investigates the issue of bill of lading fraud and discusses the impact of electronic bills of lading. The thesis will focus on English common law and international conventions under which the issue of bill of lading frauds will be analysed. In the analytical chapters, the thesis will make a detailed descriptive investigating as to the different kind of bill of lading fraud. Further it will look at impact of the Rotterdam rules in dealing with its provision on handling fraudulent bills of lading. It was argued that electronic bills of lading system were not only created to minimize the problem of late arrival of documents at the port of discharge but also minimizing the risk of fraud. This should foremost be achieved by electronic bills of lading no longer being sent in three or six originals. It is, however, still debatable, due to lack of a reliable e-commerce system, weather this will minimize the incidence of fraud in bills of lading. Moreover, according to some scholars, the occurrence of bills of lading fraud may even increase due to the likelihood of computer mismanagement and where an open network such as the internet is used. In order for traders to turn to an e-commerce system a reliable and trustworthy system is of essential importance. Further there should be a strong co-operation between states to exchange information about cross-border data flow and access evidence. The Rotterdam Rules was created to progress the current regimes and were projected to satisfy the needs of shipping industry in the 21st century. The Rotterdam Regime makes a more comprehensive attempt to further mitigating the occurrence of bill of lading fraud. Foremost, the particulars which are required to be incorporated in the bill of lading are more clarified and precise. Further, it seems that the Rotterdam regime provides a broader security for the carrier who acts in fraud than its former regimes.