Consignment is a method of financing trade. When goods are shipped on a consignment basis, related shipping documents are dispatched either directly to the importer or through his bank, which will be instructed to deliver them, free of payment, against a simple form of receipt undertaking payment when the merchandise is sold, or within a specified time.
Payment is usually made when the goods are sold, or within a specified time thereafter, and title to the goods remains with the exporter until they are sold by the consignee.
Webster Dictionary Meaning
- The act of consigning or sending property to an agent or correspondent in another place, as for care, sale, etc.
- That which is consigned; the goods or commodities sent or addressed to a consignee at one time or by one conveyance.
- The writing by which anything is consigned.
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