Ultimate Consignee

Ultimate Consignee: The Ultimate FAQ Guide

I know you’re probably wondering what ultimate consignee is about.

A reason this guide will answer all questions you have been asking about ultimate consignee.

So, keep reading to learn more.

What Does Ultimate Consignee Mean?

An ultimate consignee is the projected individual to receive the imported merchandize which has been sold by the shipper.

Ultimate consignee

ultimate consignee

Who Is An Ultimate Consignee In An Export?

An ultimate consignee in an export is an individual or party who has their location abroad and is the receiving the exported shipment.

Is The Ultimate Consignee The Importer Of Record?

Yes, the ultimate consignee is the importer of record.

In cases where there is no presence of a broker or agent, the ultimate consignee should act as the importer of record.

They will be in charge and responsible to make sure that the goods being shipped are compliant with the regulations and legal requirements of the desired destination country.

Also, the ultimate consignee will ensure that the relevant duties and taxes have been paid accordingly, then files the correct export permits and documents.

Which Are The Types Of Ultimate Consignee?

There are four types of ultimate consignees that include the following;

Direct Consumer

This is an ultimate consignee that desires to use the exported goods as usable for their own internal processes.

The goods might be as an input to be used in the production of another good or as machinery that is part of the production process.

The goods cannot be distributed or sold to other parties for their own use.

A direct consumer can be a company, a non-governmental institution or an enterprise.

Reseller

This is an ultimate consignee who receives the imported merchandize and resells it.

The reseller of the imported merchandize can be a trading company, a wholesaler, a retailer, a distributor or a non-government reseller.

Government Entity

This is a government owned, a government controlled company, institution, enterprise or agency that receives the imported merchandize.

Unknown Or Other

This is an ultimate consignee that is not known at all during the time of export.

By not being known, means that the ultimate consignee is not a government entity, a direct consumer or a reseller.

What Does Intermediate Consignee Mean?

An intermediate consignee is an individual, entity or part that takes responsibility of goods at the time the goods are in transit.

The intermediate consignee take possession of the goods during transits so as to effect delivery to the intended receiver at the destination.

It might be a company that engages itself with transport services or a freight forwarder who is international.

 intermediate consignee

intermediate consignee

Is Ultimate Consignee The End User?

At times, the ultimate consignee can be the end user if they have imported the goods for their own internal use and processes.

For example, an ultimate consignee can import machinery to be used in their own manufacturing company.

On the other hand, the ultimate consignee is not the end user if the goods are for resell purposes.

What Is Intermediate And Ultimate Consignee Compare?

An intermediate consignee is an individual responsible of the goods while they are in transit to effect delivery to the purported owner.

While an ultimate consignee is the purported receiver of the merchandize that has been sold by the shipper.

Additionally, the intermediate consignee can be a bank or any other individual acting as an agent for principal party interest.

While an ultimate consignee does not function as a forward agent or any other midway but can be an end user of the goods.

What Is The Purpose Of Bis-711 Form In Ultimate Consignee?

Being a document that is used by other countries that do not use the import certificate, it provides assurance from the importer.

The assurance is about the imported good not being transferred, misused or re-exported in violation of the Export Administration Regulations.

The BIS-711 must have sufficient information about the products, the end user and the use of the product in order to effectively control the product.

 Bis -711 form

Bis 711 form

The information in the document helps the licensing authorities in making decisions on whether to approve or disapprove license applications.

Which Are The Requirements Of Ultimate Consignee?

The ultimate consignee is required to give the brokers and agents certain information will help the customs department to know who takes responsibility of the shipment.

  • Information required is;
  • Name
  • Address
  • Internal Revenue Service number

Through that, it will be easier for the customs department to track the shipments to their final destinations.

Which Are The Instructions Of Completing The Bis -711 Form In Ultimate Consignee?

The following are instructions of completing BIS-711 form in ultimate consignee;

Block 1: Ultimate Consignee

In the case it is an individual, the name stated should be similar to the name listed on government issued ID.

If the ultimate consignee is a company, the name on the business certificate or license should be issued.

Block 2: Use Of Items

The intended usage of items by the consignee named in the above block is explained at this phase.

Block 3: Ultimate Consignee’s Nature Of Business

The business’s nature of the ultimate consignee should be put here

It can be completed in both “A” and “B”.

Possible choices for “A” can include manufacturer, broker, wholesaler, original equipment manufacturer, retailer and much more.

Possible choices for “B” can be franchise, individual business, contractual, distributor and much more.

Block 4: Additional Information

Additional information that is not present on the document should be provided under this particular block.

Information that may involve transactional parties and any additional details concerning the material that may be of value during license application and review should be provided.

Additionally, the intended use of the products need to be well stated and explained.

Block 5: Assistance In The Statement Preparing

All individuals who assisted in the preparation of the statement excluding employees of the purchaser or ultimate consignee should be named.

Block 6: Ultimate Consignee

The ultimate consignee need now to put in the information that has been requested and sign the statement using ink.

Block 7: Purchaser

The document should get signed by the purchaser if at all the purchaser is not the ultimate consignee that had been identified in Block 1.

Block 8: Exporter Certification

The block should be duly completed to ensure and certify that there exists no any type of correction, addition or modification that was made on the document.

This is made following the signing of the ultimate consignee in Block 6 and purchaser in block 7.

Who Is The Ultimate Consignee?

This is an individual or party that is going to be the final receiver of the imported merchandize.

What Is Ultimate Consignee And Importer Of Record Compare?

An ultimate consignee receives the imported goods and products that have been sold by the shipper while an importer of record owns the imported goods during the time of importation.

The importer of the record can be an agent or broker facilitating the delivery of the goods but they are not theirs.

Who Is A Nominal Consignee?

A normal consignee is a carrier, freight forwarder or consolidator who may designate a customs broker to make an entry on their behalf but not themselves.

How Is Nominal Consignee And Ultimate Consignee Compare?

The nominal consignee in any case cannot make an entry in their own name where as an ultimate consignee is allowed to make entries in their own names.

What Is Ultimate Consignee In Shipping?

In shipping, ultimate consignee is the individual that is the authentic party of interest in receiving the goods for the intended purposes and use.

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