Difference Between Exporter, Shipper, and Consignor
Exporter of Record (EOR)
Trade Compliance
Exporting terms can be complex and often confusing, making it essential to clarify the differences between the exporter of record, the shipper, and the consignor. Understanding these roles is crucial for anyone involved in international trade, as each party plays a vital part in ensuring a smooth and compliant export process.
In this article, we will define these key terms, delve into the distinct roles of the exporter and shipper, as well as the consignor, and explore how they can simplify your shipping experience, allowing you to focus on growing your business.
The Exporter of Record
An Exporter of Record (EOR) is a person, company, or entity officially authorized by customs and government authorities to export goods internationally. This role involves filing export declarations and ensuring that all legal and regulatory requirements are met—including securing the necessary licenses, permits, and clearances required for compliant exports under local regulations. The EOR is also responsible for accurately declaring key details such as the goods’ value, classification, and origin, including the correct Harmonized System (HS) code classification, while complying with complex export regulations that vary by country and product type.
In addition, the vendor prepares and submits essential documents like invoices, permits, and certificates, and coordinates the logistics for transporting the goods to the departure port to ensure timely and compliant shipping. It’s important to note that the goods originator may not always be the seller of the goods, for a deeper understanding of this role.
The Shipper
The consignor is the party—whether an individual or a company—responsible for sending a shipment. In most cases, the consignor and the seller are the same entity. However, legal ownership of the goods does not transfer until the recipient or consignee signs the transport document known as the Bill of Lading. Until the sale is finalized and the goods are officially received, ownership remains with the consignor.
In international shipping, the consignor typically serves as the exporter of record, making them the primary entity responsible for ensuring goods comply with all export regulations. The consignor—often the seller or supplier—initiates the shipment to another party, usually a shipper or the legally designated consignee in the import process.
Shipper’s Responsibilities:
The primary responsibility of the shipper is the physical transportation of goods. In most cases, the exporter appoints a transporter to manage international logistics operations and ensure timely delivery to the destination. The shipper’s role includes coordinating cargo movement across different modes of transportation, working with carriers and freight forwarders, preparing accurate shipping documentation, supporting smooth customs clearance procedures, and tracking shipment progress from origin to destination.
While the overseas supplier remains accountable for legal and regulatory obligations, the shipper focuses on the operational flow of goods—handling transport execution, coordination with service providers, and understanding when a freight forwarder may also act as the exporter of record to avoid compliance gaps and delays.
The Consignor
The shipper is the individual or entity identified in key shipping documents—such as the bill of lading, commercial invoice, and a detailed packing list for the shipment—as the party responsible for organizing the movement of goods. This role involves placing the order for shipment and, in some cases, managing freight payments that cover transportation costs. It’s important to note that the transporter does not necessarily need to be a registered overseas supplier, nor the seller of the goods.
Consignor’s Responsibilities:
The key responsibilities of the consignor include ensuring goods are properly packaged and labeled for shipment, preparing and supplying essential trade documents such as a commercial invoice used for customs valuation, packing lists, and certificates of origin, and communicating critical shipment details to both the vendor and shipper. These details typically cover product specifications, quantities, and delivery schedules. Through these actions, the consignor plays a central role in enabling a smooth and compliant movement of goods across borders.
Exporter of Record vs Shipper vs Consignor
Understanding the roles and responsibilities of the vendor, shipper, and consignor is essential for ensuring smooth and compliant trade operations. Below is a simplified breakdown of the distinctions between exporter of record, shipper, vs consignor:
Aspect | Exporter | Shipper | Consignor |
|---|---|---|---|
Definition | The party is responsible for exporting goods from one country to another. | The entity or person physically transporting the goods is usually handling logistics. | The entity or person who sends goods to another party, typically a shipper or consignee. |
Role | Initiates the export process and handles export documentation, customs, and regulations. | Manages the physical transportation of goods, often hired by the goods originator. | Sends goods to another party, often a sender or carrier, for transportation or further handling. |
Responsibilities | Ensures compliance with export regulations, prepares necessary paperwork (invoices, permits), and arranges transport to the port of departure. | Ensures goods are securely packed, labeled, and transported to the destination as specified by the vendor. | Prepares goods for shipment, including packaging and labeling, and hands them over to the freight coordinator or carrier. |
Legal Liability | Primary responsibility for export compliance and the accuracy of documentation. | Liable for physical loss or damage to goods during transit. | Liable until goods are delivered to the sender or carrier, and ensure goods are as described. |
IOR Africa Exporter of Record Services
IOR Africa streamlines international trade by delivering legally compliant export representation that removes the burden of regulatory complexity from your operations. We manage every stage of outbound compliance—from navigating export regulations to handling controlled and restricted items—so shipments move without risk or disruption. Designed to support tech and IT-driven supply chains, our solutions extend across over 70 global trade jurisdictions, enabling businesses to operate confidently throughout Africa and the Middle East. With our experienced export specialists, you reduce exposure to penalties and keep international shipments running smoothly and efficiently.
With IOR Africa, your business can focus on growth and innovation while we take care of the complexities of importing. We ensure a smooth and efficient process at every step, providing peace of mind and minimizing risks. Partner with us today for seamless, efficient, and compliant imports. Fill out the form to get started!
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Frequently Asked Questions
A Bill of Lading is a contract between the exporter and shipper. For ocean shipments, there are two types: a straight bill of lading, which is non-negotiable, and a negotiable bill of lading (shipper’s order), which allows the goods to be bought, sold, or traded while in transit. The customer usually needs the original Bill of Lading as proof of ownership to take possession of the goods from the carrier.
The shipper is neither the importer nor the exporter. The shipper is responsible for the physical transportation of goods and is typically hired by the exporter to manage logistics and shipping. While the exporter sends the goods and the importer receives them, the shipper handles the preparation and transportation. It’s important to note that the shipper is not necessarily the freight payer. In industries like beverages, the shipper is often the exporter or supplier, while the buyer or importer usually pays the freight.
The shipper on a Bill of Lading (BOL) is the party responsible for packing, preparing, and turning over the goods to the carrier for transport. The shipper is typically listed as the consignor and may be a supplier sending goods to a manufacturer or an exporter sending goods to an importer. In addition to preparing the shipment, the shipper arranges transportation, ensures the goods are properly packaged and labeled, and handles logistics. The BOL serves as a contract between the shipper and the carrier, detailing the terms of the shipment. It’s important to note that the shipper is not always the freight payer, as in some cases, the buyer or importer may cover the shipping costs