What is the Difference Between a Shipper, Consignee, and Notify Party? - Alba Wheels Up (2024)

When it comes to documentation for inbound shipments, every country has different requirements. Most often, international shipments should be accompanied by a Bill of Lading, a Shipper’s Letter of Instruction, a commercial invoice, a packing list and a certificate of origin.

Accurate documentation is an essential element in international logistics and customs clearance. Properly completed documentation will help shipments reach its international destination on time and reduce the risk of a delayed shipment at customs. To make sure shipments get to their destination without any trouble, paperwork and shipping documentation must be precise.

To ensure nothing goes wrong, you must understand not only the process and all the required documentation but also the roles and responsibilities of each party involved in the shipping of goods overseas.

Related: A Legacy of Unmatched Freight Forwarding

What is a Shipper?

The shipper is the party responsible for preparing all goods being transported, as well as handling all the required paperwork. Examples of the type of paperwork needed include obtaining the proper licenses and checking for customs exceptions and restrictions to prevent any delays during customs clearance both at origin and destination port.

While one shipper is engaged in packing and transporting the goods, another shipper is in charge of receiving the cargo when it arrives at the destination.

There are also professional companies that provide shippers’ duties to prospective clients. Professional shippers are knowledgeable in all relevant areas about cargo transportation and thus ensure clients’ faith and trust in them. Professional shippers not only provide services but also reduce a lot of burden on their clients.

Are you need of an experienced customs broker and freight forwarder? schedule your meeting with us today at Alba Wheels Up.

What is a Consignee?

Although the consignee is the receiver of the shipment, they are not necessarily the owner of the goods. The shipment’s ownership is transferred only when the consignee has paid for the goods in full.

A bill of lading must name a consignee. Unless instructed otherwise, whoever is listed as ‘consignee’ on the Bill of Lading is legally required to be present to collect the shipment.

The consignee is the one who must receive, inspect, and sign for the shipment at the time of delivery. Typically, the carrier will be unable to legally complete the delivery without the approval of a consignee or other authorized representative.

What is an Ultimate Consignee?

The U.S. Customs and Border Protection (CBP) requires one to identify the ultimate consignee at the time of entry or release. This ultimate consignee will be the final recipient of a shipment. In many cases, the consignee is the same party as the ultimate consignee. A U.S. business will need to act as the ultimate consignee for a foreign importer.

There are four types of ultimate consignees:

• Government entity
• Direct consumer is a company that plans to consume or use the exported for its own internal processes or as an input to the production of another good and will not resell or distribute the good.
• Reseller is a retailer, wholesaler, distributor, distribution center, or trading company.
• Other/Unknown is when the ultimate consignee type is unknown at the time of export.

Related: Assuring Your Shipments Arrive as Planned

What is the Notify Party?

The notify party is the contact person who is notified when the shipment arrives at the destination. The notify party can be several people: the buyer, the shipping agent, or any other entity. The notify party is also responsible for arranging customs clearance at destination.

To avoid delays with release processing and unnecessary storage charges that may arise due to failure to receive the correct arrival information, accurate contact information must be provided and shown on the documentation for the notify party.

Who can be labeled as the Notify Party on a Bill of Lading:

• The actual receiver of the cargo may be labeled in instances where a bill of lading is consigned To Order.
• The agent of the consignee, who could either be a freight forwarder or a clearing agent.
• A trader or indenting agent that brokered the deal.
• Any other entity that is interested to know the arrival and delivery of the shipment. They may have a direct or indirect interest in the system.

Why is The Supplier Asking About the Notify Party?

Your supplier may also request a Notify Party, the party who might to be informed about the cargo’s incoming arrival. A bill of lading may include multiple Notify Parties, but one is not required. Name yourself as the Notify Party if you are unsure of who the Notify Party is.

Related: Our Expertise on Customs Brokerage

Bottom Line

Documentation must always be accurate; otherwise, your shipments could result in delays. The documents you will need depends on the shipment’s origin and destination, along with a description of the goods. Because most countries have varying import regulations, the exporter or importer must be careful to provide all proper documentation.

The time spent filling out paperwork correctly will help shippers prevent losses and damage due to improper handling and delays in getting shipments through customs. As part of this process, understanding the roles of the parties involved is important to ensure the accuracy of all shipping documentation.

As a knowledgeable provider of freight forwarding solutions, we cater to your shipping needs. For more information, visit us at Alba Wheels Up.