On the Bill of Lading, why is the “Consignee” item sometimes not “Buyer”? This is one of the basic but extremely important business points, often confusing for those new to import and export. Misunderstanding or misrepresenting this information can lead to great risks in receiving goods and payment. Let’s distinguish these two concepts on import and export documents with Vietsun Logistics.
1. Who are Buyer and Consignee?
Although often one, these are essentially two completely different roles:
👤 BUYER
– Is the person who signs the sales contract with the seller.
– As a trading partner, responsible for payment for the shipment.
📦 CONSIGNEE (Consignee)
– Is the person whose name is on the bill of lading (B/L) and has the legal right to receive the goods at the port of destination.
– This is the logistics partner, which can be the Buyer or a third party designated by the Buyer (trust company, bank, FWD…).
2. Some common situations
🔹 Case 1: BUYER = CONSIGNEE (Common)
– When: When the buyer receives the goods and completes import procedures.
– For example: Company A in Vietnam buys raw materials from China for production.
➡️ B/L will state:
Consignee: [Name of Company A]
(Buyer on Contract & Invoice is also Company A)
🔹 Case 2: BUYER ≠ CONSIGNEE (3-party transaction / Consignment)
– When: Used in 3-party sales (cross-trade) or when Buyer authorizes a service unit/intermediary to handle procedures and receive goods.
– For example: Company XYZ (Buyer) purchases goods but designates company BCD (service provider) to receive the goods.
➡️ B/L will state:
Shipper: ABC Co., Ltd (China) (Contract Seller)
Consignee: BCD Company (Company designated to receive goods)
Notify Party: XYZ Company (Buyer on the contract)
🔹 Case 3: CONSIGNEE = “TO ORDER”, this is the most important case to pay attention to
– When: Usually used in payment by Letter of Credit (L/C) or when the seller wants to retain control of the goods until payment is received.
– The bill of lading will state “Consignee: To order” or “Consignee: To order of [Bank Name]”.
– Meaning: Goods will be delivered according to the order of the bill of lading issuer (usually Shipper) or according to the order of the Bank.
➡️ Example on B/L (L/C payment):
Shipper: ABC Co., Ltd (China)
Consignee: To order of Vietcombank
Notify Party: XYZ Trading Co., Ltd (Vietnam)
➡️ Explanation:
– Notify Party (XYZ Trading): The Buyer is the party notified when the goods arrive.
– Consignee (Vietcombank): The bank holds ownership of the shipment.
– Process: After Buyer (XYZ) completes payment obligation to the bank, the bank will endorse the bill of lading, transferring ownership of goods to Buyer to receive the goods.
Vietsun Shipping always accompanies you on every journey.
📞 Hotline: 028 3826 9539 or contact Vietsun customer care staff
📧 Email: admin@vietsunlogistic.com
🌍 Website: www.vietsunlogistic.com
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