Relationship between Consignee and Notify Party

Is there a relationship between consignee and notify party in a bill of lading..?? Simple enough question.. But the answer may not be as simple..

In a previous article on this blog, the consignee and notify has been defined as below :

Consignee – is a key entity in the shipping chain and is the person or company that is legally allowed to receive the cargo covered in the bill of lading..

Image for consignee and notifyNotify – is the name and address details of the person who should be notified of the arrival of the cargo..

There could be several types of relationships between consignee and notify, whether contractual or not.. Based on the way the bill of lading has been consigned, the permutation/combination and the relationship may be categorised as below :

CONSIGNEE NOTIFY RELATIONSHIP OF NOTIFY TO CONSIGNEE
To Order or To Order of Shipper DEF Forwarder Could be the freight forwarder at destination that is authorised to receive, clear and deliver the cargo the final receiver once the endorsed bill of lading is received
ABC Company Could be the final receiver who is being notified of the impending arrival of the shipment.. Certain buyers await this confirmation so that they can then pay the seller who can then endorse the bill of lading over to them for release..
To Order of XYZ Bank DEF Forwarder Could be the freight forwarder at destination that is authorised to receive, clear and deliver the cargo the final receiver
ABC Company Could be the final receiver who is being notified of the impending arrival of the shipment.. Once this notification is received, the buyer will pay the issuing bank (consignee’s bank) the charges as per the sales contract and receive the endorsed original bill of lading for release of cargo..
 
ABC Company DEF Forwarder Could be the freight forwarder at destination that is authorised to receive, clear and deliver the cargo the final receiver
Same as consignee Usually used when there is no specific notify, but can be used only if there is a full address of consignee in the consignee field
 
Name of Individual Name of Individual Could be the actual final receiver and in case of personal effects shipments, may be the same as shipper
DEF Forwarder Could be the freight forwarder at destination that is authorised to receive, clear and deliver the cargo on behalf of the receiver
Same as consignee Usually used when there is no specific notify, but can be used only if there is a full address of consignee in the consignee field

Have you come across any other combination, if you have please do share..


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32 comments on “Relationship between Consignee and Notify Party”

  1. By gerar Reply

    hi
    i work in liner

    if the condition let say
    cnee : ABC ltd
    notify : XYZ ltd (not a forwarder or bank, but maybe have relation with shipper as distributor)
    does the BL need to be endorsed by both (cnee and notify) before i can release Delivery order?

  2. By Maryjoe Reply

    I have a few questions. I bought goods that r being shipped overseas I have a shipping company here who will be picking up goods for me at arrival and putting them in storage for me. The shipping company here would it be the notifying party?
    I’m the buyer does that mean I am the consignee and the receiver since I’m paying for all delivery fees?

  3. By Mary Rose de Vega Reply

    Hi what I’m I supposed to signed a consignee?? I’m working at the system global data and act as a corporate affiliate globally I advertise and handling the network improving site what it would be fits me?

    • By Hariesh Manaadiar

      Consignee yes.. Notify party generally no, but there are no legal implications whoever you mention in Notify, but in some countries notify party has to be someone in that country of import..

  4. By Karim Reply

    Hi
    Lets say the importer of the goods is a company called Malaga ltd, and their bank is HSBC.
    Can you tell me the difference please between a BL with:

    Consignee: HSBC Bank
    Notify: Malaga ltd

    and a BL with:

    Consignee: Malaga ltd
    Notify: Malaga ltd

    Thanks

    • By Hariesh Manaadiar

      Karim, there is no difference unless the terms To Order is mentioned in front of either HSBC Bank or Malaga Ltd., in the consignee field.. Then it becomes a Negotiable Bill of Lading.. Otherwise it is a Straight Bill of Lading, although then in the first case ONLY HSBC can take release of the cargo..

    • By Karim

      Hi
      Thanks for your reply.
      If in the consignee and notify we indicate Málaga Ltd, is it possible for Málaga Ltd to receive the goods without paying the bank for the original documents?
      Is there a risk?
      Thanks

    • By Hariesh Manaadiar

      Karim, if there is a bank involved then it would be better to consign it To Order of HSBC Bank so the documents are safe with the bank who will only endorse it to the receiver once they have received the money..

    • By Karim

      Hi Hariesh

      Thanks again for the reply.
      Ok i understand.
      But what can happen if the BL is consigned to the receiver?
      Consignee: Receiver
      Notify: Receiver
      No bank will be mentioned on the BL, but the documents will be sent to the bank, and the receiver will go to the bank to collect the documents, this is how we do it normally for many years, is it wrong?

    • By Hariesh Manaadiar

      If you consign a bill to a company, that becomes a “Straight Bill of Lading” and in a Straight Bill of Lading the risk is that depending on the country, that consignee could secure release from the shipping line without an original bill of lading..

    • By Karim

      Hi Hariesh

      the 3 original bill of lading will be sent by the bank of the exporter, to the bank of the receiver, bank to bank.
      Then, the receiver will collect from his bank the original documents.
      So you mean that the receiver can collect the documents from his bank without paying his bank ??

    • By Hariesh Manaadiar

      No, on a Straight Bill of Lading, in certain countries it is possible for the receiver to approach the shipping line for the release of the cargo without surrendering any OBL as long as the bill is consigned to him..

    • By Karim

      I don’t think you understand the point.
      How can the receiver take release of the goods without BL as long as BL is consigned to him??
      Following this logic, it doesn’t matter what the BL is consigned to if you say he can take release without any BL.
      All original BL will go to his bank, and he will have no BL at all, not even copies, without going to the bank first.
      So please understand my previous question.

      Thanks

    • By Hariesh Manaadiar

      Karim, I did not say receiver can take release without any b/l.. I said there is a possibility in certain countries for a receiver to take delivery of a cargo consigned to him as a Straight Bill without presenting any originals.. There is a difference.. If he doesn’t even get copies then that could be a different thing.. But usually if he is the consignee, he will get an Arrival Notification from the line and in some cases that may be enough.. These things have happened..

      I suggest you read this article fully and you will understand what I have written.. If you still have doubts, pls drop me an email..

  5. By Prakash Reply

    Hi,
    Can you suggest if consignee and notify party be from different countries. We are receiving payments from notify party and hence the question.

    • By Hariesh Manaadiar

      Hi Prakash, yes they can be.. But in some countries, customs regulations require that the consignee is from the same country as port of discharge.. Notify can be anywhere..

  6. By Steve Manson Reply

    Can a Consignee reassign a container of goods to another Consignee by the use of “Endorsement” or do all the BoL have to be reissued?

  7. By Carmela Reply

    As a notify party on the bill of lading do I need to provide a tax ID number ? Steamship line says they need it

    • By Hariesh Manaadiar

      Hi Carmela.. I have heard of this requirement in the Consignee column but never in the Notify Party Column.. Maybe you should recheck with the steamship line..

  8. By Jason Reply

    hi i have a question: can the shipper and consignee be the same person whilst the notify party is the customer?

  9. By Mthoko Reply

    Can someone please advise on this situatuion; the consignee is ABC Company and notify party (and forwarder) is DER Forwarder, does the notify party/forwarder need a release letter (or seperate authorisation) to be able to take custody of the goods or does it suffice that they are listed as notify party on the Bill?

    • By Els

      I would also be interested in that answer. Also does the type of bill of lading influence this answer e.g. original bill of lading vs seaway bill?

  10. By Howard Reply

    i am told that the south korean govt requires the consignee is the party responsible for paying the seller, which is obvious. My question is, when my company in the USA is responsible for paying the seller in korea, but the shipment is going to our client, our client insists that he be listed as the consignee. anyone have advice for my situation? greatly appreciate your feedback. Thanks

  11. By Nafi SEREZ Reply

    hello,

    I’d like to mention Freight Forwarder involved cases as well… here is an example which we usually deal with: FF requests MBL from shipping line as Shipper DEF Forwarder, Consignee GHI Forwarder, Notify GHI Forwarder then issues his HBL as requested by actual shipper/consignee. (GHI Forwarder acts as DEF Forwarder’s agent at POD)

    Regards
    Nafi SEREZ

    • By Hariesh Manaadiar

      Good question..

      As the role of a notify party is to receive notification of the arrival of the cargo, it is mandatory to have some notify party’s name in cases where consignee is not clearly identified – like if consignee is shown as

      To Order
      To Order of Shipper
      To Order of XYZ Bank
      Or Consignee shows only company’s name or individual’s name and no other contact details

      Shipping lines will insist that the notify party be someone from the same country as the POD especially in above cases.. Means either the consignee or notify must be from the same country as the port of discharge..

  12. By Barai Overseas (@baraioverseas) Reply

    In case of L/C contract, generally “name of buyer co.” is written in notifying party and “Bank name” is written on Consignee. That is proper methodology of Invoice and PKL, but in terms of B/L this article is absolutely correct.

    • By junaid ahmed

      in the said case as it happened two days ago in Paraguay with a customer, we s a shipping company has shown the consignee as o Order of XYZ Bank, and in notify column ABC trading ASUNCION PARAGUAY. Now our agent in Paraguay told us that consignee should be the one who is the ultimate receiver of the cargo. we explained them that the consignee is the bank who has endorsed the back of the obl in favour of the notify ABC TRADING. But they refused and said thatthe consignee should be the same as notify and charged USD.770/= for the amendment charges in customs. they said this is PARAGUAY custom authorities regulation. what you think is that correct

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