consignorconsignee

Consignor and consignee are terms used in shipping and logistics to identify two parties in a transfer of goods. The consignor is the party that sends or ships the goods, typically the owner or seller. The consignee is the recipient at the destination, often a buyer, retailer, or warehouse operator designated to receive the goods and, in some arrangements, to sell or store them on behalf of the consignor.

In consignment arrangements, ownership of the goods generally remains with the consignor until the items are sold by the consignee. The consignee holds the goods for sale and typically keeps a portion of the proceeds as a commission while remitting the balance to the consignor. Unsold items may be returned or disposed of according to the terms of the contract. Risk and responsibility for the goods can vary by contract but often place initial custody with the consignee, with liability for loss or damage determined by the agreement and applicable law.

In standard shipping practices, the consignor is the party shown as the shipper on documents such as the bill of lading, while the consignee is named as the recipient at the destination. These roles help clarify responsibility for freight charges, customs clearance, and delivery obligations. The terms may differ from those used in Incoterms or other contractual frameworks, so the exact allocation of risk, cost, and title transfer is governed by the shipping contract and applicable law.

Key duties include the consignor supplying properly packaged and documented goods and clear delivery instructions, while the consignee is responsible for receiving, storing, inspecting, and, if applicable, selling and reporting stock to the consignor. In accounting, consignment stock may be treated differently on the books of both parties, with revenue recognition typically occurring only upon sale. The consignor–consignee relationship is widespread across industries but varies by contract and jurisdiction.