Coffee Export
Incoterms for Coffee
Incoterms allocate cost, risk and obligations between seller and buyer. This page covers the terms actually used in green coffee, the one fact that unites the common three, and how to choose between them.
Last reviewed 2 min read
Quick answer
Green coffee is traded overwhelmingly on FOB, CFR and CIF, with FCA and EXW occasionally used. Under all three of the common terms, risk passes to the buyer when the goods are on board at the port of shipment — what changes is who pays for freight and, under CIF, insurance.
The terms used in coffee
FOB
seller paysbuyer pays
CFR
seller paysbuyer pays
CIFseller also contracts minimum cargo insurance
seller paysbuyer pays
Cost borne by seller Risk passes to buyer
Under all three terms risk passes when the goods are on board at the port of loading. CFR and CIF move the freight cost to the seller — they do not move the risk transfer point.
| Term | Seller delivers | Risk passes | Seller pays freight? | Seller insures? |
|---|---|---|---|---|
| EXW | At the seller’s premises | At collection | No | No |
| FCA | To the carrier at a named place | On handover to carrier | No | No |
| FOB | On board at the port of shipment | On loading | No | No |
| CFR | On board at the port of shipment | On loading | Yes, to named destination port | No |
| CIF | On board at the port of shipment | On loading | Yes, to named destination port | Yes, minimum cover |
Choosing a term
- 1Do you have competitive freight rates? If yes, FOB and use them. If no, CFR or CIF.
- 2Do you have an open cargo policy? If yes, CIF’s insurance adds little. If no, CIF is the safer choice than CFR.
- 3How much control do you need over routing? FOB lets you choose the line and the schedule. CFR and CIF do not.
- 4Is this a first import? CIF removes two things to arrange. Move to FOB as volume and confidence grow.
- 5Are you comparing origins? FOB makes the coffee price comparable without freight distortion; CFR gives a landed-cost comparison. Both are useful for different questions.
Terms rarely used for coffee, and why
- EXW puts export clearance on the buyer, which is impractical from most origins — a foreign buyer generally cannot lodge an export declaration.
- FCA appears where coffee is handed over at an inland depot rather than at the port, which happens on some landlocked routings. It is workable but less common than FOB.
- DAP and DDP shift almost everything to the seller, including import clearance under DDP. Very rarely used in green coffee, because origin exporters are not usually positioned to clear customs in the destination market.
What the contract must state
- The term
- FOB, CFR, CIF, FCA or EXW
- The named place or port
- Required by every term — "FOB Mombasa", not "FOB Kenya"
- The Incoterms version
- State the edition; the rules have changed between editions
- Who books carriage
- Follows from the term but is worth restating
- Insurance level
- Under CIF, whether minimum cover is accepted or an upgrade is required
- Cost allocation at destination
- Terminal handling charges are a frequent source of dispute under CFR and CIF
We quote on your preferred term
FOB Dar es Salaam, Mombasa or Djibouti as standard; CFR and CIF on request. Tell us which basis you work on.
Request Current Crop OfferFrequently asked questions
Which Incoterm is most common for green coffee?
FOB, followed by CFR and CIF. FCA and EXW appear occasionally, and the delivered terms are rare because origin exporters are not usually positioned to clear customs in the destination market.
Does buying CIF mean I am fully insured?
No. CIF obliges the seller to contract cargo insurance at a minimum level, which is a restricted named-perils cover rather than all-risks. If your exposure is broader, agree an upgrade in the contract or arrange your own cover.
Why do I need to name a port?
Because every Incoterm requires a named place or port to be complete. "FOB East Africa" allocates nothing. Name Mombasa, Dar es Salaam, Djibouti or the applicable port.
Do Incoterms cover payment terms?
No. Incoterms allocate delivery, cost and risk. Payment mechanism, title transfer and dispute resolution are separate contractual matters and must be agreed independently.
Tell us the coffee you need
Lots can be specified by origin, region, process, grade, screen, moisture, defect tolerance, crop year and packaging. Send what you know and we will confirm what each origin realistically supports.
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Related guides
- FOB CoffeeFOB in green coffee contracts: what the seller delivers, where risk transfers, and the East African specifics of inland transit from landlocked origins.
- CFR CoffeeCFR in green coffee contracts: the seller pays freight to the destination port but risk still passes at origin. What that means practically and when CFR is the right basis.
- CIF CoffeeCIF in green coffee contracts: what the seller’s insurance obligation actually covers, why minimum cover is often not enough, and when CIF is the right basis.
- Coffee Trade TermsThe working vocabulary of green coffee trading: differentials, the C price, contract types, quality clauses, weight terms, payment and what each one commits you to.