Spice trade glossary: FOB, CIF, COA, MRL, sortex and more

Plain-English definitions of the terms used when buying spices from India, from mandi grades to shipping documents and payment terms.

Admixture: Anything in a lot that is not whole seed of the product: dust, stones, stems, broken seed and other seeds. Purity is the share left after admixture is removed.
Aflatoxin: A toxin produced by moulds on crops stored warm and damp. The EU and other markets set limits for spices such as chilli and nutmeg, so importers ask for a lab test.
APEDA: Agricultural and Processed Food Products Export Development Authority, the Indian government body that registers exporters of many farm products.
APMC / mandi: A regulated agricultural market yard in India where farmers sell to traders, such as the seed-spice market at Unjha.
ASTA colour: A measure of red colour used to grade chilli and paprika. Higher values mean a deeper red.
Bill of Lading (B/L): The shipping line's receipt for the cargo. It is also the document of title, so the original B/L releases the goods at the destination port.
CAD (cash against documents): Payment term where the buyer pays through a bank to receive the original shipping documents needed to clear the goods.
Certificate of Analysis (COA): A lab report for a specific lot, stating results such as purity, moisture, admixture and any residue or aflatoxin tests.
Certificate of Origin (COO): A document certifying where the goods were produced. It can lower import duty under trade agreements.
CFR: Cost and Freight. The seller pays freight to the destination port; the buyer arranges insurance and destination charges.
CIF: Cost, Insurance and Freight. The seller pays freight and insurance to the destination port.
Curcumin: The yellow compound in turmeric that gives colour and much of its value. Content varies by variety and is measured by lab test.
Eagle, Scooter, Badami: Indian coriander grades by colour and size: Eagle is bold and bright green, Scooter green-yellow, Badami brownish.
Ethylene oxide (ETO): A fumigant banned for food use in the EU. EU buyers of sesame and spices often ask for ETO test results.
FCL: Full Container Load: one buyer's cargo fills a whole 20 ft or 40 ft container.
FOB: Free On Board. The seller's costs end when the goods are loaded on the vessel at the Indian port; the buyer pays ocean freight onward.
Fumigation certificate: Proof that the cargo or container was treated against insects before shipping, required by many importing countries.
GSTIN: A business's Goods and Services Tax identification number in India. Buyers add it to invoices to claim input tax credit.
HS code: The international Harmonized System number customs use to classify goods. The first six digits are the same worldwide; countries add more.
IEC: Importer Exporter Code, issued by India's DGFT. Every Indian business that exports or imports needs one.
LC (letter of credit): A bank's promise to pay the seller once compliant shipping documents are presented. Common on first orders between new partners.
LCL: Less than Container Load: a small shipment that shares a container with other cargo. Used for trial orders.
Lucknowi fennel: A fine, bright green fennel type with small seeds, prized for mukhwas and confectionery.
Machine-cleaned: Cleaned with sieves, aspirators and gravity separators to remove dust, stones and light seed.
Moisture: Water content of a lot by weight. Low moisture keeps seed spices stable in transit; contracts usually set a maximum.
MRL: Maximum Residue Limit: the highest pesticide residue allowed in food in a market. EU limits are among the strictest.
MT: Metric tonne, 1,000 kg. Spice export prices and container loads are quoted per MT.
Phytosanitary certificate: A government certificate that plant products meet the importing country's plant-health rules.
Pre-shipment sample: A sample drawn from the actual lot to be shipped, approved by the buyer before loading.
Purity: Share of the lot by weight that is whole seed of the product, for example 99.5%.
Scoville heat units (SHU): A measure of chilli pungency. Higher SHU means hotter chilli.
Singapore quality / Europe quality: Trade names for cumin and fennel export grades. Singapore quality is about 98–99% pure; Europe quality is 99–99.5% and sortexed.
Sortex: Optical colour sorting that removes discoloured seed and foreign matter. Named after an early sorter brand.
Spices Board (CRES): India's Spices Board issues the Certificate of Registration as Exporter of Spices (CRES), required to export spices.
Unjha: A town in north Gujarat with India's main market for cumin, fennel and other seed spices.