How may a bill of lading function as a receipt for freight?

MCA Oral Exam Questions
Typography

If freight was paid before issue (e. g. advance freight paid to a carrier operating a liner service), the bill of lading should be stamped "FREIGHT PAID" or "FREIGHT PRE-PAID". No freight can be demanded when at the discharge port. If not so stamped, freight may be demanded before delivery of the goods.

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