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 ‘T
o 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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