What Incoterms for Spice Trade?
The Indian spice trade runs mainly on FOB, CFR and CIF; the choice sets who arranges and pays freight and insurance.
What Incoterms are used in the spice trade?
Sea shipments mostly use FOB, CFR or CIF. FOB puts freight and risk on the buyer once goods are on board; CFR adds seller-paid freight; CIF adds seller-paid insurance too. Pick one basis and compare all suppliers on it.
The three common terms
| Incoterm | Freight paid by | Insurance paid by |
|---|---|---|
| FOB | Buyer | Buyer |
| CFR | Seller | Buyer |
| CIF | Seller | Seller (to destination port) |
Choosing and using it
FOB suits buyers with their own freight contracts and control preferences; CIF suits buyers who want a single landed figure and less logistics work. Whichever you use, freight and insurance are only part of the cost; the goods value inside the quote still moves daily.
Keep the Incoterm consistent across your document set. The certificate of origin, invoice and packing list travel with the shipment regardless of term; for the UAE a preferential origin certificate under CEPA is what unlocks 0% duty rather than 5%.
Frequently asked
Should a first-time importer use FOB or CIF?
CIF is often simpler for a first shipment because the seller arranges freight and insurance to the port, giving one landed number. Move to FOB once you have your own freight rates.
Sourcing this? Tell us the spice, grade and destination and we return a documented offer — vetted supply, QC oversight, and the test dossier your market needs.
Start a sourcing enquiry →What this page does not tell you
- DDP and door-delivery terms
- Terms beyond the ship's rail such as DDP shift customs and inland delivery to the seller and are arranged case by case; they are not detailed here.
Reviewed 16 July 2026.
Sources
- CBI — Entering the European market for spices and herbs· Tier 2, retrieved 2026-07-16
- India–UAE CEPA — text and tariff schedules· Tier 1, retrieved 2026-07-16