Exporting terms can be complex and often confusing, making it essential to clarify the differences between exporter of record vs shipper vs 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 can they 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 for export. The EOR is also responsible for accurately declaring key details such as the goods’ value, classification, and origin while complying with complex export regulations that vary by country and product type.
In addition, the exporter 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 exporter may not always be the seller of the goods. For a deeper understanding of this role, check out our guide to Exporter of Record (EOR).
The Shipper
The shipper is the individual or entity identified in key shipping documents—such as the bill of lading, commercial invoice, and packing list—as the party responsible for organizing the shipment of goods. This role involves placing the order for shipment and, in some cases, managing the payment for freight, which covers transportation costs. It’s important to note that the shipper does not necessarily have to be a registered exporter, nor do they have to be the seller of the goods.
Shipper’s Responsibilities:
The primary responsibility of the shipper is the physical transportation of goods. Typically, the exporter hires the shipper to manage the logistics and ensure the timely delivery of goods to their destination. The shipper’s key responsibilities include coordinating cargo transportation, working with carriers, freight forwarders, and customs brokers, providing accurate shipping documentation, facilitating smooth customs clearance, and monitoring the shipment’s progress.
While the exporter handles the legal and regulatory compliance, the shipper is focused on ensuring the efficient movement and logistics of the goods, ensuring that they reach their destination on time and in compliance with shipping requirements.
The Consignor
The consignor is the party—whether an individual or company—responsible for sending a shipment. In most cases, the consignor and the seller are the same entity. However, it’s crucial to understand that legal ownership of the goods does not transfer until the recipient or consignee signs the Bill of Lading (BOL). Until the sale is completed and the goods are received, ownership remains with the consignor.
In international shipping, the consignor typically serves as the exporter of record, meaning they are the primary entity accountable for ensuring that the goods comply with all export regulations. The consignor, often the seller or supplier, initiates the shipment to another party, typically a shipper or consignee.
Consignor’s Responsibilities:
The key responsibilities of the consignor include ensuring the goods are properly packaged and labeled for shipment, preparing and providing necessary documentation such as commercial invoices, packing lists, and certificates of origin, and communicating essential shipment details to both the exporter and shipper. These details include product specifications, quantities, and delivery schedules. Through these actions, the consignor plays a vital role in facilitating the smooth and compliant shipment of goods.
Exporter of Record vs Shipper vs Consignor
Understanding the roles and responsibilities of the exporter, shipper, and consignor is essential for ensuring smooth and compliant trade operations. Below is a simplified breakdown of the distinctions between exporter of record vs 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, 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 exporter. | Sends goods to another party, often a shipper 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 exporter. | Prepares goods for shipment, including packaging and labeling, and hands them over to the shipper 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 shipper or carrier and ensure goods are as described. |
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Frequently Asked Questions
What is the basic contract between the exporter and the shipper?
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.
Is the shipper the importer or exporter?
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.
Who is the shipper in a bill of lading?
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