Terms of delivery

Delivery Duty Paid (DDP)

The importer pays for transport and takes the risk for the entire delivery. The risk transfers when the coffee arrives at the roasters facility. The Delivery Duty Paid alleviates a roaster from arranging and paying for shipment, insurance, and carrying any risk.

Cost, Insurance, and Freight (CIF)

The importer pays the cost of insurance and freight: from origin to the port of destination. Either a seaport, airport or dry port. But when the importer loads the coffee unto a carrier, the risk of loss transfers to the roaster. After the coffee reaches the port of destination, the roaster is responsible to arrange insurance for the remaining transport.

Free Carrier (FCA)

At the warehouse, the importer loads the coffee unto a carrier and passes on the risk to the roaster at that point. The coffee roaster pays for the transport, insurance, and any loss that might occur. On the contract, you will see FCA followed by the specific warehouse where you pick up the coffee.

Ex Warehouse (EXW)

The risk transfers from importer to roaster at the warehouse. If you choose this option, you agree to arrange the transport yourself. The importer only needs to prepare the coffee before pick up.

In ‘coffee trade slang’, Ex-warehouse is called Ex-works. On your contract, you will find the term ‘Ex-works’ followed by the warehouse and the reference to the Incoterms 2010.