Consignee Definition | Apparel Search

In a contract of carriage, the consignee is the person to whom the shipment is to be delivered, whether by land, sea or air. The carrier is required by the contract to deliver the goods to that specific receiver, and the documentation is the key to making delivery correctly. A straight bill of lading by land or sea, or an air waybill, is not a document of title: it simply requires delivery of the goods to the named consignee and, subject to the shipper ability to redirect the goods, to no other person. An order or bearer bill of lading is different, because it is a possessory title document that can be endorsed, transferring the right to take delivery to the last endorsee. Delivery rules are regulated by international conventions and national law, and practice differs by country on whether the consignee must produce the bill itself or simply prove identity. For an apparel importer, being correctly named as consignee, and having the documents and identification ready at arrival, is what turns a container waiting at a port into inventory that can be received, inspected and sold.

In a contract of carriage, the consignee is the person to whom the shipment is to be delivered whether by land, sea or air.

A brief statement of law

This is a difficult area of law in that it regulates the mass transportation industry which cannot always guarantee arrival on time or that goods will not be damaged in the course of transit. A further two problems are that unpaid consignors or freight carriers may wish to hold goods until payment is made, and fraudulent individuals may seek to take delivery in place of the legitimate consignees. The key to resolving such disputes lies in the documentation. The standard form of contract is a bill of lading which, in international shipping law, is simply a contract for the carriage of goods entered into between the shipper and the carrier that is not a charter party. It is always a term of that contract that the carrier must deliver the goods to a specific receiver.

Documentation and legal requirements for delivery

A straight bill of lading by land or sea, or air waybill are not documents of title to the goods they represent. They do no more than require delivery of the goods to the named consignee and (subject to the shipper's ability to redirect the goods) to no other. This differs from an "order" or "bearer" bill of lading which are possessory title documents and negotiable, i.e. they can be endorsed and so transfer the right to take delivery to the last endorsee. This aspect of shipping law is regulated by the Hague Rules, and the laws of individual countries, e.g. the U.K. Carriage of Goods by Sea Act 1992 and the U.S. Pomerene Act 1916. There is some international dispute as to whether the consignee on a straight bill must produce the bill in order to take delivery. The U.S. position is that the person taking delivery must prove his or her identity but, as in Hong Kong, there is no need to present the bill itself. In the U.K. there are conflicting obiter dicta in "The Rafaela S" [2003] 2 Lloyd's Rep. 113 and "The Happy Ranger" [2002] 2 AER (Comm) 23, so the matter must remain unclear even though there are serious problems, for example, arising from the everyday occurrence of cargo being discharged against letters of indemnity when original bills of lading are not yet available to be presented at the discharge port.

Consignee rights

The rights of the consignee under an air waybill are regulated by the Warsaw Convention for the Unification of Certain Rules for International Carriage by Air, 1929 and the Montreal Convention for the Unification of Certain Rules for International Carriage by Air 1999 and the relevant state laws (which may be one law chosen as the proper law by the parties, or any combination of laws representing the seller, buyer, consignor, and carrier.

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The above article is licensed under the GNU Free Documentation License. From Wikipedia, the free encyclopedia (Consignee - Wikipedia, the free encyclopedia). Modified by Apparel Search 12/27/05.

The Consignee Role From Booking to Delivery

The consignee is named when the shipment is booked and documented, long before the goods arrive. That name must match customs filings, commercial invoices and the receiving warehouse records, because a mismatch can hold up clearance and delivery even when the goods themselves are in order. On arrival, the consignee or its customs broker presents the required documents, pays any duties, taxes and carrier charges that are due, and arranges pickup or delivery from the terminal. For container freight, the consignee is also responsible for returning the empty container within the allowed free time or paying detention charges, and for reporting damage or shortage promptly so claims can be filed within the carrier time limits.

In many apparel transactions the consignee is the importer and buyer, but the roles can be split. A shipment may be consigned to a customs broker, a third-party warehouse or a distribution center for the account of the buyer, and a notify party may be listed to receive arrival information without being the party entitled to delivery. Keeping those roles straight on the bill of lading prevents the most common arrival problems: cargo released to the wrong party, cargo no one claims, and storage charges accumulating while documents are corrected.

Consignee Rights, Risks and Problem Deliveries

Delivery disputes usually arise in three situations: goods arrive damaged or late, payment between seller and buyer is incomplete, or someone other than the legitimate consignee tries to take delivery. Documentation resolves most of them, which is why carriers deliver strictly against the bill type and identification rules that apply. Unpaid consignors or carriers may claim a right to hold goods until payment is made, and shipments are sometimes discharged against letters of indemnity when original bills have not yet arrived at the discharge port, a routine practice that carries its own risks. A consignee who has paid for goods but cannot obtain delivery, or who receives damaged garments, needs to act quickly: note exceptions on the delivery receipt, preserve packing and evidence, notify the carrier and insurer in writing, and check which law and convention govern the movement, since the right to sue may depend on ownership and on who bore the risk of loss during transit.

Common Questions

Who is the consignee in a shipment?

The consignee is the person or company to whom the shipment is to be delivered under the contract of carriage, whether the goods travel by land, sea or air. The carrier must deliver to that specific receiver identified in the transport documentation.

Must a consignee produce the bill of lading to take delivery?

Practice differs by country and by the type of bill. On a straight bill, the United States position is that the person taking delivery must prove identity, with no need to present the bill itself, while other jurisdictions and order bills can require surrender of the document.

What rights does a consignee have under an air waybill?

Consignee rights under an air waybill are regulated by the Warsaw Convention of 1929 and the Montreal Convention of 1999, together with relevant state laws, which may include a law chosen by the parties or laws representing the seller, buyer, consignor and carrier.

Consignee