Notify Party of a Bill of Lading

Understanding notify party field of a bill of lading and its effect on delivery of goods and payments.

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What Does Notify Party Mean?

Notify party means a person that should be notified by the carrier along with the consignee when the shipment arrives at port of discharge.

Notify party has no effect on the title of goods, which determines delivery of the goods to the consignee.

Notify party is mostly importer, importer’s forwarder or importer’s customs broker.

Notify Party Examples:

Notify Party is the Importer:

Under an advance payment terms a Belgium dessert exporter makes a shipment to an importer located in Saudi Arabia.

The importer pays the contract amount full in advance before shipment takes place.

The goods have been shipped under FOB trade terms and shipment takes place between Antwerp Port, Belgium and Dammam Port, Saudi Arabia.

As freight will be paid by the buyer the freight notation that is mentioned on the bill of lading is Freight Collect.

The bill of lading consigned to the importer company. The bill of lading is not issued in negotiable form, but in straight form.

Notify Party is the Importer’s Forwarder:

Under a letter of credit payment a German machinery exporter makes a shipment to an importer located in Hong Kong.

The letter of credit is payable at sight.

The goods have been shipped under CFR trade terms and shipment takes place between Hamburg Port, Germany and Hong Kong Port, Hong Kong.

As freight will be paid by the seller the freight notation that is mentioned on the bill of lading is Freight Prepaid.

The bill of lading consigned to order of the issuing bank. The bill of lading is issued in negotiable form.

Points of Consideration When Filling Out Notify Party Field:
  1. Notify party has no connection with the title of goods.
  2. Selected payment method may affect notify party field completion.
  3. Under open account, cash in advance and cash against documents payment methods notify party field is usually filled out by the shippers without any restrictions.
  4. Under letters of credit payment methods notify party field must be completed according to the letter of credit terms and conditions.

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