Import & Export Guides
Consignee, Notify Party and Shipper on the Bill of Lading: Getting Them Right for Bangladesh Imports
Oct
Three boxes near the top of every bill of lading cause more delays for Bangladeshi importers than almost any other part of the document: shipper, consignee and notify party. They look simple. In practice they decide who legally controls the cargo, who the shipping line contacts on arrival, which name appears on the import manifest in Bangladesh, and whether your bank will accept the document under a letter of credit. A spelling mistake or the wrong format in one of these boxes can hold a container at Chattogram while amendments travel back and forth between Bangladesh and China.
This guide explains what each field means, how they are normally filled for Bangladesh imports under LC and under TT, and how to check them before the bill of lading is issued.
What each field means
The shipper is the party sending the goods, usually your Chinese supplier. The consignee is the party to whom the goods are consigned, the party entitled to take delivery, subject to the type of bill of lading. The notify party is the party the carrier informs when the vessel arrives; it has no ownership right on its own, but it is the contact for the arrival notice.
How these work together depends on the type of bill. A straight bill names a specific consignee and is not transferable by endorsement. An order bill is made out “to order” or “to order of” a named party, usually a bank, and is transferred by endorsement. Our guide to straight, order and switch bills covers the types in detail.
The usual format under a letter of credit
In Bangladesh, most LC-financed imports use an order bill of lading made out to the order of the LC opening bank, with the importer as notify party. The LC itself states exactly how the bill must be made out, typically in the documents required clause. A common pattern looks like this:
- Shipper: the beneficiary named in the LC, your supplier.
- Consignee: “To the order of” the LC issuing bank, with the bank name exactly as stated in the LC.
- Notify party: the applicant, your company, with full name and address as stated in the LC, often with additional details the LC requires.
Why is the bank the consignee? Because the bank is financing the purchase. Until you pay or accept the bill under the LC, the bank holds control of the goods through the bill of lading. When you settle, the bank endorses the bill to you, and you or your C&F agent present it to the shipping line to get the delivery order. Our article on letters of credit for China imports explains the full LC flow.
The wording must follow the LC instruction. Under UCP 600, data in documents does not need to be identical to the LC, but it must not conflict. Banks examining documents are strict about consignee and notify party details because these control title. A bill made out to the importer directly when the LC called for “to order of” the bank is a discrepancy, and discrepancies cost fees and time. See LC discrepancies under UCP 600.
The usual format under TT or open account
When you pay by telegraphic transfer, there is no bank in the middle holding title, so the bill is usually a straight bill or a sea waybill with your company as consignee and also as notify party, or with your C&F agent as notify party for convenience. Because you are the consignee, you must still surrender the original bill (or the shipper must arrange a telex release) before the line issues the delivery order. Our guide to telex release explains when that option makes sense.
Why the importer details must match in Bangladesh
On the Bangladesh side, the consignee and notify party data flows into the Import General Manifest (IGM) that the shipping agent files with customs before or on arrival. Your bill of entry, lodged through ASYCUDA World, must then match the IGM line. If the importer name, address or identifiers on the bill of lading differ from your registration details, the mismatch can block or delay lodgement of the bill of entry until the IGM is amended. Our article on IGM amendments explains that process.
Bangladesh customs also expects the importer’s Business Identification Number (BIN) to be shown on import shipping documents, and many forwarders ask for it at booking. Requirements are updated from time to time, so confirm the current list of details your C&F agent needs to see on the bill of lading before your supplier books the shipment. Our BIN guide covers the number itself.
A worked example of what goes wrong
A Dhaka importer opens an LC for kitchen equipment. The LC asks for bills of lading “made out to the order of” the issuing bank, notify applicant with full address and BIN. The supplier’s forwarder, used to TT shipments, issues the draft bill with the importer as consignee and the bank as notify party, the reverse of what was required. Nobody checks the draft. The original bills are issued, couriered to the bank, and rejected as discrepant. The importer must either accept the discrepancy, paying the bank’s discrepancy fee and accepting risk, or ask the supplier to have the line reissue the bills, paying amendment charges and losing days. Meanwhile the container has arrived and port charges are running.
The fix costs almost nothing if made at the draft stage: one email asking the forwarder to swap two boxes.
How to check a draft bill of lading
Always ask your supplier to send the draft bill of lading before it is issued, and check it against your LC or purchase contract. A practical checklist:
| Field | What to check |
|---|---|
| — | — |
| Shipper | Matches the LC beneficiary or contract seller; a third-party shipper only if the LC allows it |
| Consignee | Exactly as the LC requires, usually to order of the issuing bank; for TT, your company name as registered |
| Notify party | Your company name, address and identifiers exactly as required |
| Port of loading and discharge | Match the LC and booking; discharge port Chattogram or as agreed |
| Goods description | Consistent with the LC and commercial invoice |
| Marks and numbers | Match the cartons and packing list |
| Freight terms | Freight prepaid or collect, consistent with the Incoterm |
| Number of originals | As required by the LC |
If you are not sure what the LC wording means, ask your bank or C&F agent before approving the draft, not after the originals are issued.
Common mistakes and their cost
- Consignee and notify party reversed: LC discrepancy, possible reissue fees and delay.
- Importer name spelt differently from the trade licence and IRC: IGM amendment needed before the bill of entry can be lodged.
- Missing BIN or other required identifiers: queries at clearance.
- Wrong bank branch named: discrepancy, because the LC names a specific issuing bank.
- Shipper shown as a trading company not named in the LC: discrepancy unless the LC permits third-party shippers.
Amendment fees, discrepancy charges and the time lost depend on the shipping line, the bank and how late the error is found, so we cannot give a single figure; the honest answer is that checking the draft is always the cheapest option.
DE International checks shipping documents before they are issued, coordinates with Chinese suppliers and forwarders, and clears cargo at Chattogram and Dhaka. Explore our services, browse the shop, use our China sourcing and buying agent service, or contact us. Related: bill of lading amendments and fees and delivery order release.
