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What is Bank Delivery Order in Imports
Bank Release Order (BRO) or Bank Delivery order in imports is quite common term used regularly in an import trade where in Letter of Credit is involved.
What is Bank Delivery Order in Imports? How does Bank DO work in delivery of imported goods? To whom a Bank release order is issued?
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If Bill of Lading consigned ‘To Order’ followed by Banks address, the carrier can not release delivery order to final consignee without Bank Delivery Order, as the consignee in bill of lading is Bank address. If an exporter instructs carrier to mention ‘To order’ in ‘consignee column’ of Bill of Lading, the carrier act accordingly by mentioned the same. If consignee column shows ‘To Order of Bank’, the carrier is responsible to deliver cargo as per the order of bank only.
Here, once after receiving original bill of lading by the beneficiary bank under letter of credit, he notifies his client who is the final importer and advises him to accept documents.The final importer approaches bank and accepts documents by necessary endorsement. Once after accepting documents, the bank delivers original bill of lading to him along with ‘Bank delivery order’, instructing carrier to deliver the goods to the said importer.
However, in the case of Letter of Credit at sight (LC at sight), bank releases Delivery Order only after collecting export proceeds from importer. Means, importer need to pay the value of goods to his supplier through his bank as agreed while opening LC. The Carrier release his delivery order to the final consignee only after receiving Bank Release Order along with original bill of lading under said shipment in such cases.
Carriers also accepts Bank’s Delivery order on reverse of original Bill of Lading issued by his counterpart at port of loading subjected to all information and proper endorsement of bank mentioned in the consignee column of Bill of Lading.
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