Choosing the Ultimate Consignee Type

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By: Heather Hrytsyshyn

You probably know that identifying the ultimate consignee in the Automated Export System (AES) is mandatory. However, did you realize that you need to select an ultimate consignee type? There are four types: direct consumer, government entity, reseller and other/unknown.

Let’s dive into the details of each type: woman questioning

  1. Direct Consumer is a non-government institution, enterprise, or company that will consume or use the exported good as a consumable, for its own internal processes, as an input to the production of another good or as machinery or equipment that is part of a manufacturing process or a provision of services and will not resell or distribute the good.
  2. Government Entity is a government-owned or government-controlled agency, institution, enterprise, or company.
  3. Reseller is a non-government reseller, retailer, wholesaler, distributor, distribution center or trading company.
  4. Other/Unknown is an entity that is not a Direct Consumer, Government Entity or Reseller, as defined above, or whose ultimate consignee type is not known at the time of export.

Helpful tips to consider:

  • If the form of the good (commodity) exported is changed or consumed by the ultimate consignee, the type would be direct consumer.
  • If you chose other/unknown and later determine the ultimate consignee type changed, you may update the type in the AES.

So which type do you choose?

Identifying the proper ultimate consignee is pretty simple. Just remember to focus on the primary business function of the ultimate consignee. If more than one type applies, choose the type that applies most often. Let’s take a look at a couple of examples:

Example 1: If you export printers to a company in Scotland and they use the printers in their office, what ultimate consignee type do you choose?

Drum roll please… Direct Consumer.

The Reason: The ultimate consignee is using the printer for its own consumption.

Example 2: If you export paintings to an art distributor in France, what ultimate consignee type do you choose?

Drum roll please…Reseller

The Reason: The ultimate consignee is a distributor.

For more information on ultimate consignee type, refer to Section 30.6(a)(28) in the Foreign Trade Regulations. If you still have questions, contact the Regulations, Outreach and Education Branch at 1-800-549-0595, Option #3.

woman questioning

 

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11 Responses to Choosing the Ultimate Consignee Type

  1. Jenny says:

    What if you are selling to a sales office? The shipment is delivered to a Laredo Broker for consolidation and then delivered to the sales branch or the end user in Mexico. We have the end user information, but it is a routed shipment. Sometimes it is gets shipped to the sales office for a short period of time prior to going to the end user. Who would be listed as the ultimate consignee on the AES?

    • Global Reach Daniel says:

      @Jenny,
      The Ultimate Consignee is the person or party abroad that actually receives the goods. Based on the information you provided, the ultimate consignee is the party in Mexico that receives the goods.

  2. Julia says:

    Informative and well describe explanation. Excellent!

  3. Mohamad Abujawayed says:

    Government Entity is a government-owned or government-controlled agency, institution, enterprise, or company.
    Is there a minimum percentage of ownership by the government for a company to be considered a government entity?

    • Global Reach Daniel says:

      @Mohamad,
      Government ownership must be 100% to be considered Government Entity.

      • Rebecca says:

        At Update, it was stated that government funded agencies/entities were “government”. I asked about civilian agencies such as NASA (page states that they are a civilian agency) and other Research labs that are funded both by private funds and govt funds and was told to call them government. What about public universities that are direct consumers but also receive federal funding? Can you please clearly define “government”? Thanks!

        • Heather says:

          @Rebecca- Provide the business function of the ultimate consignee that most often applies for the public universities. Government ownership must be 100% to be considered a Government Entity.

  4. Nova West says:

    When will this field be added to AESPCLink?

    • Global Reach Daniel says:

      @Nova,
      The field is currently “optional” in AESPCLink until the 180 compliance period ends on October 2, 2014.

  5. Cricket says:

    What if you are sending knit componemt parts to be finished then returned? Since the ultimate consignee is finishing the knit component part as opposed to using it up, and they are returning it, is it really a direct consumer?

  6. Heather says:

    @Cricket, if the form of the good is changed, this would still be a direct consumer.

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