Buyer vs Consignee
Knowing the difference between buyer and consignee is important to those involved in trade or working in the procurement / purchase departments. Consignee and buyer are terms that are usually used in relation to one another especially when discussing international trade. The term buyer is also used in a more general sense when discussing sales and purchases of goods and services in an economy. A buyer is a person who purchases products or services in exchange for money. A consignee is an individual who receives the shipments of goods. The consignee may also be the buyer of the goods, though this is not always the case. The article offers a clear explanation of each term and highlights the similarities and differences between buyer and consignee.
Who is a Consignee?
A consignee is the person to whom a shipment of goods is delivered. In most instances the consignee is also the buyer of the goods. However, this may not always be the case. In international shipments a document known as a bill of lading is used to ensure the security of the goods that are being shipped. The bill of lading outlines the name of consignor (party that ships the goods), name of consignee, shipping destination, nature of goods and other important information about the shipment. The consignee is named on this bill of lading so that the goods are only delivered to this person. The consignee is held legally responsible for the goods and is responsible to pay taxes and duties, fees to customs authorities, fill out documentation, etc. The consignor retains the ownership of the goods until such time that full payment is made. Once full payment is made, the title to the goods is passed onto the consignee. In the event that the consignee does not comply with requirements and fails to make payments, the consignor can sue the consignee and obtain the goods.
Who is a Buyer?
In simple terms, a buyer is an individual who purchases a product or service in exchange for money. A buyer always strives to obtain the best quality for the lowest price. A buyer may be a consumer who purchases products and services for their own use or maybe working for an organization and will purchase goods and services on behalf of the firm. Such buyers include purchasing agents, merchandisers, purchasing officers, etc. who purchase raw materials, semi-finished goods, products and services to be utilized in the production of finished goods. Their job is to find the best materials for the lowest price and to negotiate deals and discounts with sellers to obtain the best bargain price for the goods and services purchased.
What is the difference between a Buyer and a Consignee?
A consignee is a person who is responsible for the receipt of a shipment of goods, whereas a buyer is an individual who obtains goods and services in exchange for money. In most cases a consignee is also the buyer of the goods. However, there are times when the consignee is not the buyer and is an agent appointed by the buyer to receive the goods on his behalf. The buyer of the goods may then purchase the goods from the consignee and obtain legal title. The main similarity between the consignee and buyer is that once the consignee and buyer make full payments and meet obligations to the consignor and the seller, the goods in question become the property of the consignee and the buyer. Both the consignee and buyer will then have legal possession of the goods and can choose to do as they please.
Summary:
Consignee vs Buyer
• A consignee is the person to whom a shipment of goods is delivered. In most cases a consignee is also the buyer of the goods. However, there are times when the consignee is not the buyer and is an agent appointed by the buyer to receive the goods on his behalf.
• A buyer is an individual who purchases a product or service in exchange for money. A buyer will always strive to obtain the best quality for the lowest price.
• A buyer may be a consumer who purchases products and services for their own use or maybe working for an organization and will purchase goods and services on behalf of the firm.
• The main similarity between consignee and buyer is that once the consignee and buyer make full payments and meet obligations to the consignor and the seller, the goods in question become the property of the consignee and the buyer.
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