Consignee Meaning Types, Best Practices & More

Ever wondered what the word ‘consignee’ means while sending a shipment? 

A consignee is a person or entity that is legally entitled to receive a shipment of goods. You usually find this term mentioned in the bill of lading or other logistics-related documents. As a sender or receiver of goods, it is essential that you have a clear idea of the consignee meaning, its types, best practices, and more in order to make informed decisions regarding your business’ logistics.

What is a Consignee – A Brief Overview

When goods are shipped, the consignee is the recipient of the package. This term is commonly found in documents like bills of lading and commercial invoices, which contain the consignee’s name, address, and other necessary details for the shipper to identify them.

In the case of domestic deliveries, the consignee is generally the buyer. However, for international deliveries, the importer acts as the consignee and is responsible for selling the goods and transferring their ownership to the buyer.  

Consignee vs Consignor – Key Differences

While the recipient of the goods is called a consignee, the sender is known as the consignor.  

It usually refers to the party responsible for shipping the goods to the consignee, which can be an individual, company, or distribution centre. The ownership of the goods during the delivery process remains with the consignor until the consignee pays for all the items in full.    

Thus, the contract of sale is usually between the consignee and the consignor. Meanwhile, the contract of transportation is generally between the consignor and the carrier (logistics company).   

Consignees: Exploring the Various Types 

Now that you have a clear idea of the meaning of consignee, let’s move on to its types:

Government Entity: Any company, agency, institution, or enterprise that is government-controlled or government-owned. 

Direct Consumer: Any non-government entity, institution, agency, or company that will use the goods as consumables for their own internal processes.  

Reseller: Any non-government agency or entity acting as a retailer, reseller, distributor, wholesaler, trading company, or distribution centre.  

Other/Unknown: Any entity that does not fall under government entity, direct consumer and reseller. Also, it is applicable when the consignor does not know the ultimate consignee type during export.  

Top Mistakes to Avoid as a Consignee

Here are some of the top mistakes that entities should avoid when acting as a consignee:

Providing Inaccurate Delivery Details

Providing the wrong delivery address will result in the consignor sending your goods to the wrong location. This will not only delay your expected delivery date but also cost you a lot of money to reroute the package to the correct location. 

Not Verifying the Goods Upon Arrival

The consignee should always verify the goods upon arrival to ensure that the items received match the shipped goods. Additionally, if there is any discrepancy or damaged items, the consignee should immediately inform the consignor. 

Not Communicating With the Shipper

It is the responsibility of the consignee to communicate with the shipper and know the expected delivery dates. Additionally, they should provide clear instructions on the package’s delivery location. 

In addition, the consignee should be clear on what to expect in terms of the quality, quantity, and condition of the shipped goods. 

Consignee Best Practices

Listed below are some of the best practices that consignees should always follow:

• Promptly receiving and inspecting the goods upon arrival at their destination port. 
• Completing all paperwork and customs declaration formalities. 
• Paying the required import duties, taxes and clearance charges if the goods are Delivered Duty Unpaid (DDU). 
• Verifying the goods’ labels. 
• Safely transporting the items to their warehouses.
• Ensuring proper segregation and categorisation during the storage process.     

You now have a clear understanding of the meaning of consignee and their responsibilities related to the delivery process. 

However, there is something else you should know. If the consignees belong to any other type other than Direct Consumer, they will need reliable last-mile delivery services to facilitate on-time deliveries to customers. 

In this regard, Porter can be an ideal choice!

We offer an on-demand delivery service through which you can transport anything from small items to a variety of industrial goods hassle-free. 

Moreover, if your business requires shipping large volumes of goods all across India, Porter Enterprise enables you to choose from a wide array of vehicles according to your delivery requirements.      

Download the Porter app today and leave your last-mile deliveries to us!