Related Glossary
Who is a Consignee?
A Consignee is the person or company to whom the goods are delivered at the destination. In simple terms, it’s the party named in the shipping documents such as Bill of Lading or Air Waybill, who has the right to receive the cargo once it arrives. The consignee may or may not be the actual buyer, but they are the recognized receiver of the shipment in logistics and legal terms.
Key Points
Role in Shipping Documents: The consignee’s name and address are mentioned on the Bill of Lading, Air Waybill, or Delivery Order. Without this, cargo cannot be released.
Ownership vs. Receipt: The consignee doesn’t always own the goods; sometimes they are just authorized to receive them (e.g., a warehouse, agent, or distribution center).
Customs Clearance: The consignee is often responsible for customs clearance, duties, and taxes, unless otherwise arranged.
Types of Consignees:
Named Consignee – Clearly mentioned on the document.
To Order Consignee – Flexible; allows transfer of cargo ownership during transit.
Legal Importance: The consignee is the recognized legal party for delivery and claims at the destination.
Example Scenario
A textile exporter in India ships fabric to a retailer in Germany. On the Bill of Lading, the German retailer’s name is written as the Consignee. Once the shipment arrives at the Hamburg port, customs and the shipping line will release the goods only to this consignee (or their authorized representative). If the retailer hired a local logistics agent to receive the goods, that agent could also be named as the consignee.
Frequently Asked Questions (FAQs)
1. Is the consignee always the buyer?
Not always. The consignee is the receiver, but in some cases, a freight forwarder, warehouse, or agent can be listed as the consignee on behalf of the buyer.
2. Can there be multiple consignees in one shipment?
Generally, one consignee is listed per Bill of Lading. If goods need to go to different receivers, separate documents or shipments are prepared.
3. Who pays duties and taxes – the consignee or the shipper?
Usually, the consignee pays import duties and taxes at the destination, unless the shipping terms (Incoterms) state otherwise.
4. What happens if the consignee refuses the goods?
If the consignee refuses, the shipping line holds the cargo until instructions are given by the shipper or a legal resolution is found. This may lead to storage costs or the return of goods.
5. What’s the difference between Consignee and Consignor?
The Consignor is the sender (shipper), while the Consignee is the receiver. Think of it as "from" (consignor) and "to" (consignee).
Additional Insights
Consignee vs. Notify Party: A notify party is informed when goods arrive, but only the consignee has the legal right to take delivery.
Bank as Consignee: In some cases, especially under Letter of Credit transactions, banks are named as consignees until payment is cleared.
Expert Tip: Always double-check consignee details on shipping documents. Even a small mistake in the consignee’s name or address can delay cargo release and cause demurrage charges.