Consignee To Order in Bill of Lading

Posted on 04 January 2019 Category : Bill of Lading

The information provided here is part of Online export import training guide

‘TO ORDER’ BILL OF LADING – More facts

The term ‘To order’, ‘To the Order’, ‘To the Order of’, ‘To the order of Bank’ in Bill of Lading – These are the general terms mentions in a Bill of Lading/Airway Bill to hold title of goods in international business. If you see a Bill of Lading or Airway Bill where in consignee column mentioned as ‘To Order’, ‘To the Order’, ‘To the Order of’, ‘To the order of Bank’ or ‘to the order of XYZ bank’, what do you mean about such Bill of Lading/Airway Bill? Can an importer take delivery of imported goods if the term To Order, To the Order, To the Order of xxx Bank or To the order of Bank mentioned in Bill of Lading/Airway Bill?

In this article, we discuss about the terms To Order, To the Order, To the Order of xxx Bank, To the order of Bank etc. used in Bill of Lading and Airway bill. I will also explain about the endorsement procedures and delivery order formalities at destination port under a shipment where consignee column mentioned as To Order, To the Order, To the Order of xxx Bank or To the order of Bank.

To order, to the order, to the order of, to the order of bank, to the order of xyz bank etc.etc. are the terms used under negotiable instruments generally. However, if such terms are used in a Bill of Lading or Air Way Bill which are two of negotiable instruments, that means, the ownership of goods under such Bill of Lading/Airway bill is transferable to another party. Here, have mentioned Air Way Bill as one of the documents of title. But, commonly Airway bill is not a document of title, but Airway Bill can be prepared in such a way to treat as document of title.

Normally bill of lading is consigned to the buyer whose name and address is mentioned on bill of lading when issuing at load port by carrier, once after receipt of goods from shipper after necessary export legal export customs procedures and formalities at load port.As you know, Bill of lading is a negotiable instrument where in the title of goods can be transferred from one party to another. Means, you can transfer the ownership of goods to another party by endorsing a Bill of Lading with proper documentation. If consignee XYZ who placed purchase order with overseas supplier wants to deliver the goods later to some other party either by re-selling or transfer, the consignee instructs overseas supplier to mention consignee column in Bill of lading as “To the order of XYZ’ or ‘TO ORDER’. In this case, once after arrival of goods at destination, if XYZ wants to transfer the goods to ABC, XYZ endorse the Bill of lading by signing back side of original bill of lading by mentioning “Please deliver cargo to ABC….” or equivalent words with other documentation if any.

If Bill of Lading is consigned ‘To Order’ and banks address as consignee in Bill of lading, the title of cargo is with the said Bank and without the endorsement by the bank; the final consignee cannot take delivery of cargo. If the final consignee is DEF, bank has to endorse back side of original bill of lading by affixing his rubber stamp and mentioning as ‘Please delivery goods to DEF…’ or equivalent words. Bank can also issue a separate document as Delivery Order to issue goods to DEF with endorsement on back side of original bill of lading in lieu of endorsing reverse side of Bill of Lading.

Generally Bill of lading is consigned “To Order” or “To the Order of XYZ Bank” under Letter of Credit terms mutually agreed with buyer and seller. However, in some cases, ‘To Order’ in consignee column is used to resell the goods or transfer the goods to a third party by the buyer. Also read - Bank Release Order (BRO) in Imports

Here I have explained in this article about the terms To Order, To the Order, To the Order of xxx Bank, To the order of Bank etc. used in Bill of Lading and Airway bill. I have also explained about the endorsement procedures and delivery order formalities at destination port under a shipment where consignee column mentioned as To Order, To the Order, To the Order of xxx Bank or To the order of Bank. Do you wish to add more information about this subject about ‘To order’, ‘To the Order’, ‘To the Order of’, ‘To the order of Bank’ in Bill of Lading/Airway Bill? Have you experienced in handling a shipment with a consignee column ‘To order’, ‘To the Order’, ‘To the Order of’, ‘To the order of Bank’ in Bill of Lading/Airway Bill?

Share below your experience in handling a shipment in international business by transferring document of title, releasing import goods under LC terms by settling sale amount through bank or any other experience in handling Bill of Lading/Airway bill where in consignee column mentioned as To the Order, To Order, To the Order of xyz…Bank or To the order of Bank.

The above information is a part of Import Export course online

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Have you satisfied with this article? Write below your comments about this article – Consignee column in Bill of Lading / Air Way Bill shows ‘To order’, ‘To the Order’, ‘To the Order of’, ‘To the order of Bank’ or ‘To the order of xyz Bank’.

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Comments

G.RAMASWAMY : On 21 February 2014 If B/l consigned " TO order' and back side of bl endorsed by our Indian Bank to foreign Bank, we want to know whether foreign bank directly collect the payment from original buyer and release the goods to originalbuyer, or release the goods to other supplier as per direction of original buyer

Nikos: On 30 March 2014 Thnks

lee saw chin: On 16 June 2014 My question is our current practice for payment term document against payment, BL consignee showing customer‘s bank name only, but one of carrier said, correct way should state "to order of" in front bank name. Is it true? I didn't hear anything that customer have problem for clearance.

sudharshie: On 19 September 2014 hi, can i knw if BL mention consignee as TO ORDER & notify with actual consignee's name the can we release the delivery order without bank endorsement. Thanks

olivio Fernandes: On 23 September 2014 We have an L/C which states Consignee To the order or XYZ Bank. The L/C does not state blank endorsed. My question is can we mention To the order and blank endorsed Or can we put To the order of XYZ bank or just XYZ bank.

Rubaiyum: On 10 October 2014 This is really a wonderful article specially for beginners.

Hariesh Manaadiar: On 29 November 2014 Hello G.Ramaswamy/Sudharshie.. If the Bill of Lading is consigned "To Order" then only the shipper can endorse the bill to say who the cargo must be released to.. The buyer does not have the authority to endorse the bill of lading.. The shipper will endorse bill only after he gets the money from the buyer.. Below articles will help you to understand.. http://shippingandfreightresource.com/endorsements-on-bill-of-lading/ http://shippingandfreightresource.com/duly-discharged-bill-of-lading/ Regards Hariesh Manaadiar http://shippingandfreightresource.com

Admin: On 30 November 2014 shippingandfreightresource.com is a very good website about shipping and carrier related subject writing by Mr.Hariesh Mannadiar. The readers may visit the same web blog to know more about the subject. Thanks, Mr.Hariesh your wonderful job.

Gangadhar K: On 14 February 2015 Nice to see your website on how to import export. I have one doubt, please clarify. If the buyer and consignee is different, then in BL we will show the Consignee column as actual consignee and to buyer details in BL, there is no column, where we should show buyer details in BL? In actual commercial invoice to be made on buyer name and in this case, the consignee details to be disclosed in Invoice which to be routed thru bank ?

Naveen Solanki: On 01 April 2015 Dear All Concern Its a good platform to give and take suggestion/comments/information for any doubt relating to international business (Import-Export). Recently we have faced a problem related to "TO THE ORDER OF SHIPPER" given in Consignee name in Delivery Order of Shipping Line. We have filed a B/E for clearance of goods for Home Consumption at customs port ICD PATPARGANJ DELHI. The custodion is CWC here at PPG. after all formalities customs allow clearance and after payment of storage charges at CWC and at last final check a CWC employee deny to get delivery due to Consignee name given in Delivery Order is "TO ORDER OF" and importer name given in notify column. He said that importer name must be mention in consignee name or if not then NOC of Consignee mut be submitt to them for taking delivery. We want your valuable comments/suggestion in this regard as 1. whether its a genuine objection?? 2. Can we take any action/complaint against him??? 3. How to know the Legal aspects and all necessery details required for delivery of goods from custodion???

lananhnguyen: On 12 May 2015 If a shipment with a consignee column "To order" but has no name of a person or a bank/a company, then what kind of BL is it and the consignment belongs to who? Thanks for answering my question.

Sindhu: On 18 May 2015 If the materials are importing through documents through bank, then in who will be the nofity party Regards., Sindhu

Mohd Shoaib: On 22 June 2015 What is bill of loading Endorsement..

PKH EXPORTS : On 04 July 2015 We have shipped a export consignment and have received all the shipping documents from our CHA, pertaining to that shipment. Buyer's bank was shown as consignee on our commercial invoice and that has been reflected in shipping bill as well. We have sent our buyer the scanned copy of shipping documents for there reference. Our buyer has now informed us that they have changed there bank, and has asked us to update our record. Now we want to send the documents to our buyer's bank for collection of payment, so please let us know what we have to do in that case

sanjeev mehta: On 11 July 2015 we had export material on credit basis now party deny for payment can I take any legal action against him if yes how can I do this

aravind vaidyanath : On 15 October 2015 We are into trading business , we are exporting through 3rd party exports . Our full information is visible in the data we want to hide our CONSIGNEE INFORMATION for filing purpose in the ports , what is the procedure to be followed . Please intimate us at the earliest .

BC Nair: On 11 February 2016 I have small concern about Bill of lading : Consignee column shows To Order and Notify is (1st) is Bank and Second is Consignee - Still bank has to endorse on the bill of lading ?? Shipping line is not giving DO to us without Bank Endorsement ?? is it proper way Or Bank should endorsed can you clarify

shamim : On 27 March 2016 If Bill of Lading is consigned ‘To Order’ and banks address as consignee in Bill of lading, the title of cargo is with the said Bank and without the endorsement by the bank; the final consignee cannot take delivery of cargo. I want to know, is there any restriction to endrose the bill of lading on back page. or Is it possibe,if we want to endrose the bill of lading in the front page.

B: On 18 April 2016 Just to Brief My Company in Mumbai Suman Marble Industries Private Limited and Engaged in Exports only since Incorporation in 1987. Basically buying material Locally and selling overseas and also from China to Middle east as my Co negotiates with Chinese co and sending material directly to Middleeast with Switch B/L in India. Now the Sales Authority here in Mumbai is objecting and disallowing the same. I can provide you complete detail related to this. In fact we have been buying Lots of Granites from Bangalore Mysore and other part of south in last more than 25 years. and to be frank NEVER claimed even any DUTY DRAWBACK just as a matter of policy. but now facing problmes with Department being clean exporter!!!. Please advice, Appreciate your time and Thank you in Advance.

Kajal bhatt: On 13 July 2016 For CALLAO-PERU shipment, is it ok to mention "TO ORDER" in consignee and in notify Buyer's address?

Jerwin: On 04 August 2016 Hi ! Just wanna ask if the consignee address is To The "Order of the Shipper" who is the Final Consignee ?

Amit : On 30 March 2017 In my querry there are 3 parties involved lets say A, B, C from 3 different countries A is shipper (India) B is middle party ( Dubai) C is final Buyer (Europe) "A" sends material to B on DA basis. "B" has received confirmed L/C from "C". "B" has asked "A" to mention LC details on Bill of lading " To the order of XYZ bank" and all details like LC no and all on bill of lading. Now "A's" bank says they cannot lodge under collection/or discount document reasoning "C's" bank name is mentioed on B/L. Please suggest if this is valid transaction? Looking for prompt reply. Regards

sumeet: On 13 April 2017 is consignee address and airport of destination maybe differ ??

A. K. MUKADAM: On 15 November 2017 I buy timber for different countries and intend to sell to customer in other countries. At the time of shipment I do not know who I will sell it to. I need to know what is the best way to make B/L. This is what I plan to do . Consignor : Shipper/supplier Consignee : To the order of my company or just make it To order. ( what is better way). If I do not make to order and put my company as consignee . Can I endorse it another customer. notify : My company. I have two option when I sell the goods to customer. 1)I send the documents to their bank . do I have to endorse the B/L in favor of the bank. Will the bank finance customer when the B/L is endorsed to Bank 2) If the customer pays to me directly, do I have to endorse B/L in favour of customer. can you advise if these is the correct way or am I doing something wrong. thanks

Baha: On 16 July 2019 Pls confirm which is a correct regulation in India for DO release of a Bank consigned shipment. whether we need to collect original BL/AWB with bank endorsement or to accept BANK's Release order letter alone ! These days, the Banks in India are releasing only the Release Letter on thier letter head to cnee. Cnee also demanding to forwarders that the Bank Letter is enough for DO release. Pls guide with clear customs notification or RBI notification in this regard.

jignesh: On 04 December 2019 hi, we have L/C and B/L required ''made out to order of applicant and marked freight prepaid and notify as applicant means consignee and notify both need to mention applicant as per LC

Wael Ereidi: On 30 March 2020 Can I grantee Payment if I keep or put my buyer as Consignee when the Documents send to his Bank , Please Advise Thank You

Eric: On 03 June 2020 If consignee is under TO ORDER, can the BL be switched?

Jelena: On 05 August 2021 What if Consignee will be "to the order of XXX on behalf of YYY". Who has the control over the good/documents?

Consignee To Order in Bill of Lading

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