Importer of Record vs Consignee: What’s the Difference, and Why Does It Matter?

Corporate Secretary Service Indonesia – If you’re handling international shipments, especially importing goods into Indonesia, you’ve likely come across terms like consignee and importer of record. These two roles often get lumped together, but in reality, they’re quite different. Understanding the difference between an importer of record vs consignee isn’t just a matter of terminology, it’s essential to avoid delays, fines, or worse.

Let’s walk through what a consignee really is, how it compares to the importer of record, and why getting this right is crucial if you want your shipments to arrive on time and without surprises.

So, Who Exactly Is the Consignee?

In simple terms, the consignee is the person or company listed on the shipping documents (like the Bill of Lading) who is supposed to receive the goods once they arrive in Indonesia. Think of them as the “end recipient.” But don’t confuse that with ownership, sometimes, the consignee is just a logistics partner or agent, not the buyer or final user of the goods.

Under Indonesian law (specifically Law No. 17/2006 on Customs), a consignee needs to be someone who has the legal standing to deal with customs, whether that means paying duties, arranging clearances, or handling paperwork. And here’s where things get interesting: the consignee might not always be the importer of record.

Importer of Record vs Consignee: Where the Line is Drawn

Let’s break this down with a real-world example.

Say a German company ships industrial machinery to PT Sinar Terang in Jakarta. PT Sinar Terang buys the goods and plans to use them in its factory. In this case, PT Sinar Terang is both the importer of record and the consignee, they’re listed on the documents and they’re responsible for everything, including customs compliance and taxes.

Now, let’s say PT Sinar Terang hires a local logistics company, like PT Cipta Logistik, to handle the import process. The logistics firm might be listed as the consignee on the Bill of Lading, but the importer of record (the one legally responsible for the import) remains PT Sinar Terang. This setup is pretty common in Indonesia, especially for companies that prefer to outsource the complexity of the customs process.

Read Also: Navigating Indonesia’s Import Permit System: What You Need to Know

So again, the importer of record vs consignee question comes down to responsibility. The importer of record deals with compliance, duties, and paperwork. The consignee is the party receiving the shipment, sometimes the same, sometimes different.

What Does a Consignee Actually Do?

If you’re listed as a consignee, you’re not just sitting around waiting for boxes to arrive. You’ve got responsibilities:

• Ensure accurate documentation: The HS Code, commercial invoice, and packing list all need to be correct and aligned with Indonesian customs rules.
• Register an API (Importer Identification Number) if the goods are commercial and above the minimum value. Without it, your goods might get stuck.
• Work with a PPJK or Pengurus Jasa Kepabeanan (licensed customs broker) for customs clearance. Make sure they’re officially registered with the Directorate General of Customs and Excise (DJBC or Dirjen Bea Cukai).
• Pay duties and taxes, unless you’re working under a special facility.

You’ll also need to have your paperwork ready, including the original Bill of Lading, invoice, API, and, if you’re acting on someone’s behalf, a notarized Power of Attorney.

Key Takeaways

• The consignee is the named recipient of the goods. They may or may not be the one responsible for the legal import.
• The importer of record holds the legal and financial responsibility for ensuring compliance with all import regulations.
• Mixing up the importer of record vs consignee roles can lead to delays or penalties.
• Always check the latest regulations, like PMK No. 203/2017 or DJBC Regulation No. 32/2021, before arranging a shipment.

Final Word: Clarity Beats Complication

If you’re importing into Indonesia, whether it’s your first time or your hundredth, it’s worth taking the time to understand who does what. The distinction between importer of record vs consignee might seem small, but it has big implications for compliance, timing, and cost. At PortCorp, we help businesses from around the world manage this complexity. Whether you’re listed as the consignee or want to appoint us as your local representative, we’ll make sure everything is handled properly, from documentation to customs clearance. No guesswork. No last-minute problems at the port.

If you’re not sure where you stand, importer of record, consignee, or both, we’ll help you sort it out. So, don’t worry about developing your business by setting up a company in Indonesia, because Portcorp is here as a solution for your business, also when you need to know about Importer of Record vs Consignee. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!