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A plain-language reference for terms you'll encounter when importing from India — Incoterms, HS codes, certifications, specification parameters, and shipping terminology.
A quick-reference glossary for buyers importing agro commodities from India. Alphabetically ordered. Bookmark this page.
EXW (Ex Works) — Buyer takes delivery at exporter's premises, arranges all transport and documentation.
FCA (Free Carrier) — Exporter delivers to a named carrier at agreed location. Buyer takes risk from that point.
FOB (Free On Board) — Exporter delivers goods on board the vessel at named port of shipment. Most common Incoterm for Indian agro exports.
CFR (Cost and Freight) — Exporter pays sea freight to destination port. Risk transfers at origin port.
CIF (Cost, Insurance and Freight) — Exporter pays freight + marine insurance to destination port.
CPT (Carriage Paid To) — Exporter pays carriage to named destination (multimodal).
CIP (Carriage and Insurance Paid To) — Like CPT with insurance added.
DAP (Delivered at Place) — Exporter delivers to a named place at destination, cleared for import, buyer pays import duties.
DDP (Delivered Duty Paid) — Exporter delivers to named place, pays all import duties and taxes.
FCL (Full Container Load) — Buyer books a whole container. Standard for export orders.
LCL (Less than Container Load) — Buyer books space in a shared container. Higher per-kg freight, slower.
20ft FCL / 40ft FCL — Standard container sizes. 20ft typically carries 18-26 MT depending on product; 40ft carries 36-50 MT.
Jumbo Bag / FIBC — Flexible Intermediate Bulk Container; 1 MT bag used for bulk shipment.
Bill of Lading (BL) — Transport document issued by the shipping line / NVOCC.
Mundra / Kandla / JNPT / Nhava Sheva / Mumbai — India's major export ports. Mundra and JNPT handle most agro-commodity container traffic.
IEC (Importer Exporter Code) — Mandatory 10-digit code for Indian exporters, issued by DGFT.
COO (Certificate of Origin) — Certifies the country where goods were produced. Can be preferential (for FTA tariff benefits) or non-preferential.
Phytosanitary Certificate — Issued by India's Plant Quarantine authority, certifying agricultural goods are free of pests and diseases.
Mill Test Certificate / Certificate of Analysis (COA) — Lab report confirming the shipped goods meet contracted specifications.
Proforma Invoice — Preliminary invoice issued before confirmed order, used by buyer for LC opening and advance TT.
Commercial Invoice — Final invoice with full shipment details, used for customs clearance.
Packing List — Itemized list of what's inside each container / pallet, with weights.
APEDA — Agricultural and Processed Food Products Export Development Authority (India).
FSSAI — Food Safety and Standards Authority of India. Mandatory for food-grade exporters.
HACCP — Hazard Analysis and Critical Control Points. International food-safety management system.
ISO 22000 — Food-safety management system (international standard).
ISO 9001 — Quality management system (international standard).
HALAL — Islamic dietary compliance certification.
Kosher — Jewish dietary compliance certification.
NPOP / USDA Organic / EU Organic / JAS — Organic certification standards for India, USA, EU, and Japan respectively.
GAP (Good Agricultural Practices) — Farm-level compliance for safe and sustainable production.
Purity (%) — Percentage of actual product vs admixture / foreign matter.
Moisture (%) — Water content. Lower = longer shelf life.
Mesh Size — Particle fineness for powders. Higher number = finer.
Viscosity (cps) — Thickening power of hydrocolloids like guar gum. Measured in centipoise.
FFA (Free Fatty Acid) — Fat breakdown in oilseeds. Lower = fresher.
Volatile Oil (%) — Essential-oil content in spices.
Protein (%) — Protein content in pulses, soya products.
MRL (Maximum Residue Limit) — Legal maximum for pesticide residue in food, set by destination country.
Sortex — Brand name commonly used generically for optical sorting machines that remove foreign matter.
MOQ (Minimum Order Quantity) — Smallest order the exporter will accept. Typically 1 x 20ft FCL for Indian agro.
Lead Time — Days from confirmed PO to loading at Indian port.
Transit Time — Days of sea voyage from Indian port to destination port.
Shelf Life — How long the product remains sellable in proper storage. Varies by product and packaging.
Private Label / White Label — Exporter manufactures and packs under buyer's brand.
Spot vs Contract Pricing — Spot = today's market price. Contract = fixed price for defined volume over a defined period.
Hedge — Price-risk management via futures or options; relevant for buyers with long order horizons.
LC at Sight — Letter of Credit, payable upon document presentation.
Usance LC / LC 30/60/90 — Letter of Credit with deferred payment.
TT (Telegraphic Transfer) — SWIFT bank wire. Common split: 30% advance + 70% against BL.
DP (Documents against Payment) — Documents released only against payment through buyer's bank.
DA (Documents against Acceptance) — Documents released against buyer's acceptance of a time draft.
0909.31 / 0909.32 — Cumin seeds, whole / crushed
0909.21 / 0909.22 — Coriander seeds, whole / crushed
1207.40 — Sesame seeds
1207.50 — Mustard seeds
0713.20 — Chickpeas (chana)
0713.31 / 0713.32 — Moong (green gram) / Masoor (lentils)
1001.99 — Wheat (not seed)
1003.90 — Barley (not seed)
1302.32 — Mucilages / thickeners of guar seeds (includes guar gum powder, splits)
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