Incoterms are the standard trade terms (published by the International Chamber of Commerce; the current set is Incoterms 2020) that define who arranges transport, who pays which costs and where risk passes from seller to buyer. Japanese suppliers quote matcha under a range of terms, and the difference between an EXW price and a DAP price is the entire freight and clearance chain.
This is a practical overview, not legal advice. Your forwarder or broker can confirm details for your shipment.
01 · The terms
The terms you will actually see
| Term | Seller does | Buyer does | Typical use |
|---|---|---|---|
| EXW (Ex Works) | Makes goods available at their premises | Everything else: pick-up, export clearance, freight, import | Common from smaller suppliers; most work for the buyer |
| FCA (Free Carrier) | Delivers to the buyer’s carrier, export cleared | Main freight, insurance, import | Good general-purpose term for air and sea |
| FOB (Free on Board) | Delivers on board the vessel at the port of shipment, export cleared | Ocean freight, insurance, import | Sea freight only |
| CFR / CIF | Pays ocean freight (and insurance for CIF) to destination port | Import clearance, duty, onward delivery | Sea freight; risk still passes at loading |
| CPT / CIP | Pays carriage (and insurance for CIP) to a named place | Import clearance, duty | Air or sea |
| DAP (Delivered at Place) | Delivers to the named place, not import cleared | Import clearance, duty, taxes | Convenient for buyers with a broker |
| DDP (Delivered Duty Paid) | Everything including import duty and taxes | Receives goods | Rare from Japanese tea suppliers; needs an importer of record |
02 · Compare
Comparing quotes on the same basis
An EXW quote will always look cheapest. Before comparing, convert every quote to the same basis, ideally landed at your warehouse. Ask your forwarder for freight and clearance estimates and add them to EXW/FCA/FOB quotes; ask suppliers quoting CIF or DAP what is inside the price. How to compare matcha wholesale quotes shows a comparison sheet with a delivery-basis column.
Under CIF the seller pays freight to your port, but risk passes when the goods are loaded in Japan. Insurance matters; check who holds it and for what.
03 · Which term
Which term to ask for
- First orders and small buyers: FCA or DAP keep the buyer’s workload manageable; EXW is fine if your forwarder collects regularly in Japan.
- Repeat sea shipments: FOB or FCA with your own forwarder gives cost control.
- Buyers without import experience: DAP with your own customs broker at destination; be wary of DDP unless the supplier truly has an importer of record in your country.
04 · Costs
Costs that sit outside the tea price
- Export packing and documents (usually the seller’s, but confirm)
- Pick-up and export clearance in Japan
- Main freight and insurance; see air versus sea freight
- Destination handling, import clearance, duty and taxes
- Delivery to your warehouse
- Payment costs and currency conversion
05 · In writing
Put it on the order
Write the Incoterm, the named place and the version (“FCA Osaka Kansai Airport, Incoterms 2020”) on the quote and the order confirmation. Vague phrases like “freight included” or “ex-warehouse” cause disputes. Our procurement service confirms these details with suppliers in Japan and coordinates the handover with your forwarder.
06 · FAQ
Frequently asked questions
What does EXW mean on a matcha quote?
The seller makes the goods available at their premises; you arrange and pay for pick-up, export clearance, freight, insurance and import. It is the lowest number and the most work.
Which Incoterm is best for a first import?
FCA or DAP keep the buyer’s workload manageable and are widely understood by Japanese suppliers. Use your own forwarder or customs broker at destination either way.
Who pays import duty on matcha?
The buyer, under every common term except DDP. Duty and taxes are set by the destination market; ask your broker for an estimate before you compare landed costs.
Japan-side support
Not sure what a quote includes?
Send us the quote. We confirm the delivery basis and what is inside the price with the supplier and lay out your landed-cost picture.
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