Incoterms® are the backbone of international trade contracts. Published by the ICC and updated in 2020, they define who pays for freight, insurance, customs, and where risk transfers.

The 11 Incoterms: EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAP, DPU, DDP.

For first-time importers we usually recommend CIF or CPT — the seller arranges shipping to the destination port, and the buyer takes over from there. For experienced buyers with their own forwarder, FOB offers more cost control.

Always specify the Incoterm followed by the named place — e.g. "CIF Hamburg, Incoterms® 2020". Ambiguity here is the single biggest cause of dispute we see.

Advance payment is fastest and safest for the exporter, but buyers rarely accept 100% upfront beyond the first order.

Letter of Credit (LC) is bank-backed — the buyer's bank guarantees payment once shipping documents match LC terms. Best for medium-large shipments to new buyers.

Against BL (cash against documents, payment on Bill of Lading) is common for repeat clients. The exporter ships, then releases the original BL only after payment.

At Kalinova we accept all three. For new buyers we typically start with 30% advance + 70% against BL copy, then move to LC for larger volumes.

FCL (Full Container Load) means you book an entire 20' or 40' container. Best when your order fills ≥60% of a container, or when handling sensitive cargo.

LCL (Less than Container Load) shares container space with other shippers. Cheaper for small volumes but slower (extra consolidation/deconsolidation time) and more handling.

Rule of thumb: under 15 CBM → LCL. Over 15 CBM → FCL almost always wins on cost and transit time. We help buyers benchmark both for every quote.

Every Indian exporter needs an IEC (Import Export Code) from DGFT. For agri products, registration with APEDA is mandatory for most categories and unlocks export incentives.

For food-grade products: FSSAI license is required, plus product-specific certificates — Phytosanitary Certificate (issued by the Plant Quarantine authority), Certificate of Origin, and increasingly, residue/heavy-metal lab reports from NABL-accredited labs.

Destination-specific regulations also apply: EU has strict pesticide MRLs, the US requires FDA prior notice, and GCC countries often demand halal certification. Kalinova handles all documentation in-house.