Every nut export contract rests on an Incoterm — the three-letter rule that defines exactly where the seller's responsibility ends and the buyer's begins. Choose the wrong one and costs, risks, and customs duties land in unexpected places. This guide explains the Incoterms most relevant to nut buyers, what each one means in practice, and how to choose between them.
What Incoterms actually govern
Incoterms (International Commercial Terms, published by the International Chamber of Commerce) define three things for any shipment: who arranges and pays for transport, at what point risk of loss or damage transfers from seller to buyer, and who handles export and import formalities. They do not cover price, payment terms, or title — those sit in the wider contract. What they fix is the handover point, and with it the allocation of cost and risk along the journey.
For nut shipments — typically moving in full container loads (FCL) by sea — five Incoterms cover the great majority of contracts.
EXW — Ex Works
Under EXW, the seller makes the goods available at their own premises. Everything after that — loading, inland transport, export clearance, freight, insurance, import clearance — is the buyer's responsibility and cost. EXW places maximum obligation on the buyer and minimum on the seller. It suits buyers with strong logistics capability in the origin country who want full control of the supply chain, but it leaves the buyer managing export formalities in a foreign jurisdiction, which many prefer to avoid.
FAS — Free Alongside Ship
With FAS, the seller delivers the goods alongside the vessel at the named port of shipment and clears them for export. Risk transfers once the goods are placed alongside the ship. From that point the buyer arranges loading, freight, and onward costs. FAS is more common for bulk and break-bulk cargo than for containerised FCL nut shipments, but it appears in some contracts and sits a step beyond EXW in seller responsibility.
FOB — Free On Board
FOB is one of the most widely used terms in nut trading. The seller delivers the goods on board the vessel at the named port of shipment and handles export clearance. Risk transfers once the goods are on board; from there the buyer arranges and pays for freight, insurance, and import. FOB gives the buyer control over ocean freight and insurance — useful for buyers with freight relationships or volume discounts — while leaving origin-side handling and export formalities with the seller.
CFR — Cost and Freight
Under CFR, the seller delivers on board and additionally arranges and pays for freight to the named destination port. Risk, however, still transfers when the goods are on board at origin — so during the sea voyage the goods travel at the buyer's risk even though the seller paid the freight. CFR suits buyers who want the seller to handle freight booking but are willing to carry transit risk or insure it themselves.
CIF — Cost, Insurance and Freight
CIF extends CFR by adding insurance: the seller arranges and pays for freight and a minimum level of marine insurance to the destination port. Risk still transfers on board at origin, but the seller-arranged insurance covers the buyer's interest during transit. CIF is popular with buyers who want a single, predictable landed-to-port cost and prefer the seller to handle freight and insurance as a package.
Choosing the right term
The decision turns on where you want control and where you want to offload effort:
- Choose EXW or FAS if you have strong origin-country logistics and want maximum control.
- Choose FOB if you want to manage your own ocean freight and insurance but leave export handling to the seller.
- Choose CFR if you want the seller to arrange freight but you will handle transit risk or insurance.
- Choose CIF if you want the simplest seller-managed package to the destination port, freight and insurance included.
Beyond the Incoterm, a complete nut export contract also addresses documentation that buyers should confirm up front: phytosanitary certificates, certificates of origin, and the food-safety certifications relevant to the destination market.
Discuss terms with us
Pasha International quotes and contracts across EXW, FAS, FOB, CFR, and CIF for South African nut exports, and can advise on the documentation each destination market requires. To discuss the right term for your shipment, get in touch with our team.
For pricing, specifications or a trading discussion, our team responds to all enquiries within one business day.