1. The three fields
Consignee: the party to whom the goods are consigned.
Notify party: the party the carrier notifies on arrival.
Delivery agent: the party at destination the carrier’s agent contacts.
2. Consignee options
Named consignee
The bill names a specific company or person.
Only that party can take delivery.
To order
The bill is made out “to order” and transferred by endorsement.
The holder of the endorsed original can take delivery.
Used where the goods may be on-sold in transit, or where the bank needs to control.
To order of a named party
“To order of [shipper]” or “to order of [bank]”.
The named party endorses.
Used where a bank holds the document as security.
3. The bank’s requirement
Where a credit is involved, the bill of lading is often made out to the order of the issuing bank or to the order of the shipper, endorsed in blank.
The credit specifies which. The bill must match.
4. The notify party
The notify party is whom the carrier contacts when the goods arrive.
Commonly the consignee, or the consignee’s clearing agent.
Where the notify party is the clearing agent rather than the consignee, the agent learns of arrival and arranges clearance.
Where the notify party is wrong, nobody is notified and the goods accrue demurrage.
5. The consignee and the customs entry
The consignee on the bill of lading must be the importer of record, or the customs entry has to explain the difference.
Where the bill names a bank and the customs entry names the buyer, the discrepancy is queried.
6. The common arrangements
Straight consignment, open account
Consignee: the buyer.
Notify: the buyer or the buyer’s agent.
Delivery agent: the carrier’s destination agent.
Letter of credit
Consignee: to order of the issuing bank, or to order of the shipper endorsed in blank, as the credit specifies.
Notify: the buyer.
Documentary collection
Consignee: to order of the shipper, endorsed to the collecting bank.
Notify: the buyer.
Group company transfer
Consignee: the group’s local entity.
Notify: same.
7. The “same as consignee” shortcut
Forms often allow “same as consignee” for the notify party.
This is convenient and occasionally wrong, particularly where the consignee is a bank or a financial entity that has no operational role at destination.
8. Common errors
Consignee differing from the invoice
Queried at customs.
Notify party missing
No notification on arrival.
Bank named as consignee where the customs entry names the buyer
Discrepancy.
“To order” where the credit requires a named consignee
Discrepancy under the credit.
Notify party a party with no role at destination
Notification goes nowhere.
9. What to check before the bill is issued
Read the credit’s requirement for the consignee.
Match the notify party to who will actually clear the goods.
Check the consignee against the invoice and the customs entry.
Confirm the delivery agent.
10. Closing view
The three fields look administrative and determine who can collect the goods, who learns they have arrived, and whether the customs entry can be filed.
Getting them right is a matter of knowing the transaction, not of knowing the rules.
*This article is based on standard international trade practice and documentary credit rules. Exporters should confirm requirements with their carrier and bank.*