Consignee Meaning in Shipping
The consignee is the person or company a shipment is sent to and who is entitled to take delivery at the destination. It is often the buyer, but not always.
What is a consignee?
A consignee is the party a shipment is consigned (sent) to: the person or company named on the transport document as entitled to receive the goods at the destination. The party sending the goods is the consignor, also called the shipper.
Example
A factory in Vietnam ships furniture to a retailer in Canada. On the bill of lading, the factory is the shipper and the retailer is the consignee. When the ship arrives in Vancouver, the shipping line releases the containers to the consignee, or to a customs broker acting for it.
Consignee vs consignor vs notify party
| Role | Who it usually is | What it does |
|---|---|---|
| Consignor (shipper) | The seller or exporter | Hands the goods to the carrier and is named as shipper |
| Consignee | The buyer, its agent, or a bank | Is entitled to take delivery at destination |
| Notify party | The buyer, its customs broker or forwarder | Is told by the carrier when the goods arrive |
Is the consignee always the buyer?
No. The consignee is whoever should receive the goods, which can be:
- the buyer, in most simple sales;
- a bank, when the sale is paid by letter of credit and the bill is made out "to order of" the issuing bank, so the bank controls the goods until it is paid;
- "to order", with no name at all, so the bill can be endorsed to whoever pays;
- a warehouse, distributor or the buyer's customer, when goods are shipped direct to a third party.
What to write in the consignee box
Give the full legal name, street address, city, postcode and country, plus a phone number and, where the destination country asks for it, a tax or importer number (such as an EORI number in the EU or UK). The consignee should match the commercial invoice and, for letter of credit sales, the exact wording the credit requires. A wrong or incomplete consignee delays customs clearance and can make it hard to release the cargo.
Ultimate consignee
For customs and export control, the ultimate consignee is the party that will finally receive and use the goods, which may differ from the importer or the first consignee. US export filings, for example, ask for both the intermediate and the ultimate consignee.
The consignee and Incoterms
Being the consignee does not by itself mean you pay freight or carry the risk; the Incoterm in the sales contract decides that. Under DDP, for instance, the seller handles import even though the buyer is the consignee.
Features
- Plain English definition
- Consignee vs consignor vs notify party
- How to write the consignee box
- Ultimate consignee for customs
Frequently asked questions
What does consignee mean?
The consignee is the person or company a shipment is sent to and who is entitled to take delivery at the destination.
Who is the consignee on a bill of lading?
The party named in the consignee box: usually the buyer, but it can be a bank, a third party, or 'to order' when the bill is negotiable.
What is the difference between consignee and consignor?
The consignor (or shipper) sends the goods; the consignee receives them.
What is the difference between consignee and notify party?
The consignee is entitled to the goods. The notify party is only told when they arrive; it is often the buyer or its customs broker.
Can the consignee be different from the buyer?
Yes. A bank, a warehouse or the buyer's own customer can be the consignee, depending on how the sale is paid and where the goods should go.