When your cargo moves across borders, everything must be documented in all detail. Each party should know, for instance, who sends the goods (shipper), who receives them (consignee), and who must be notified (notify party).
What Is A Notify Party?
A notify party is the individual or entity that must receive a notification when a shipment arrives at its final destination. The name of the notify party is documented on the accompanying shipping documents, such as a Bill of Lading, Sea Waybill, or Air Waybill.
Upon arrival notice, this party makes all arrangements for customs clearance, inland transportation, or any other essential procedures. They also inform the actual receiver of goods.
The notify party can be any party involved in the cargo’s handling, such as the buyer, a shipping agent, or the consignee themselves.
Even though they may be the same person/entity, a consignee and a notify party have different responsibilities.
Notify Party Vs. Consignee: What’s The Difference?
These two entities have distinct roles in cargo shipping.
What Does A Consignee Do?
Regarding a specific shipment, a consignee is:
- The legal recipient and owner of goods upon arrival.
- Authorized to claim the shipment from the carrier.
- Responsible for customs clearance, including duties and taxes.
What Does A Notify Party Do?
A notified party’s role in a shipment is primarily informational and logistical.
- They must be informed of the cargo’s arrival.
- They can arrange customs clearance and inform the consignee.
- They do not necessarily own the cargo.
In simple shipping arrangements, the consignee and the notify party can be the same entity. But in more complex scenarios, for instance, when a bank acts as the consignee under a letter of credit, a separate notify party (often the actual buyer) will be designated to handle arrival and clearance.
What Is A Bill Of Lading Document?
The Bill of Lading (BoL) is one of the most important trade documents required for shipping. Issued by the carriers, it contains details about the type and quantities of goods, their origin and destination, and all the entities involved (shipper, carrier, recipient, notify party, etc).
The Bill of Lading is a legal document that serves three primary functions:
- Confirms the shipper/carrier agreement for the transportation of the goods.
- Acknowledges the carrier has received the cargo in good order (or as noted otherwise).
- Acts as proof of ownership so that the holder can claim the cargo.
The BoL can also be transferred to another party so they can legally claim or own the goods.
Bills of Lading are created by the carrier after a shipping booking is made, and follow instructions provided by the shipper. They actually account for 10-30% of total trade documentation costs!
On top of the notify parties, consignees, and shippers, other details typically included in BoLs are payment terms, ports of loading and discharge, cargo weight and volume, and more.
What Is A Notify Party On A Bill of Lading?
Within the context of a bill of lading, the notify party is the entity the carrier should contact upon the cargo’s arrival at the indicated destination and the one who facilitates the smooth handover of the shipment.
The name, address, and contact details of the notify party on the BoL are usually included in the shipping instructions provided to the shipping line.
What Is A Consignee On A Bill Of Lading?
On a Bill of Lading, the consignee is documented as the legal recipient of the shipment and the legal owner of the goods upon the cargo’s arrival. The consignee is actually the one who can claim the cargo.
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