THE ROLE OF CONSIGNEE IN THE TRANSPORTATION PROCESS

In documents related to import and export activities, the term “Consignee” often appears first when parties engage in exchanging and purchasing goods. However, many people can easily confuse the terms consignee and notify party due to varying interpretations. So, what exactly is a consignee, and the role of consignee in the export and import process?

What is a Consignee?

A consignee (often abbreviated as Cnee) is the final recipient of the goods, which can be understood as the buyer. The consignee is the actual party receiving the shipment, designated on the bill of lading, which explicitly lists the name and address of the individual or organization receiving the goods. The carrier is obligated to deliver the shipment according to the information on this bill of lading.

In cases where the consignee appears on a non-specific bill of lading (one that does not list a particular recipient or include the term “to order”), the consignee does not necessarily have to be the buyer. The consignee can either directly carry out the import procedures or be appointed to do so. However, in some cases, the Consignee may also act as an intermediary responsible for transportation, depending on prior agreements.

Typically, on the bill of lading, information about the consignee is listed below that of the shipper – the seller. This information includes the name of the individual or organization, address, tax identification number, phone number, etc.

The Role of consignee

In export and import operations, the consignee plays the following roles:

The consignee is the final recipient of the goods. When the shipment arrives at the destination port, the carrier will only deliver the goods to the Consignee listed on the original bill of lading. However, if there are no documents verifying that you are the Consignee on the original bill of lading, you will not be able to claim the goods. Therefore, when completing the goods collection process, it is necessary to bring documents proving you are the Consignee to ensure smooth delivery.
Under FOB (Free on Board) shipping terms, once the goods have been loaded onto the ship, all risks, costs, and responsibilities related to customs clearance for import fall upon the Consignee.
The Consignee is responsible for negotiating with the carrier regarding shipping costs and any additional charges related to containers.

Notes on the consignee in Import and Export Documentation

When handling import and export documentation, it is important to take note of the following information related to the Consignee:

Ensure that complete information about the Consignee, such as the individual or organization’s name, address, phone number, and tax identification number, is clearly stated on the bill of lading.
The Consignee can be the buyer (in the case of a master bill of lading) or may not be the buyer (in the case of an open bill of lading). When presenting the bill of lading to claim the goods, if you can verify that you are the Consignee, you will be able to receive the goods.
On most ocean bills of lading, the consignee is also the notify party.
With an open bill of lading, anyone presenting the bill can carry out the procedures to collect the goods and has the right to transfer ownership of the goods by handing over the bill of lading. The person presenting the open bill of lading to receive the goods is also considered the Consignee of that shipment.

This explanation clarifies the role of consignee in the transportation process, ensuring efficient operations in export-import activities. We hope this article provides readers with useful knowledge. We are committed to offering you services and solutions that help your goods reach global markets with dedication and customer collaboration. With over 13 years of experience in the logistics industry, we take pride in being a reliable and professional partner.

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If you require assistance with international import and export of goods, please contact our team at Smartlink Logistics. We are available to provide you with professional guidance on our services and the necessary customs procedures.

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