Plain-language export guide

Export terms, explained simply

Sourcing from Sri Lanka comes with a few three-letter terms: FOB, CIF, HS, CoO. Here is what each one means in plain language, and a simple picture of who pays for what along the way.

Incoterms: who pays for what

An Incoterm is the rule that says how far the seller’s cost and risk reach before the buyer takes over. Most SriLankaExport.com listings are priced FOB Colombo, the seller covers everything up to the goods being loaded on the ship in Colombo; the buyer covers the sea freight and the rest.

FactorySri Lanka
Colombo Portloaded
Sea Freightin transit
Arrival Portyour country
Buyer’s Doordelivered
EXW
Seller

Ex Works. The buyer collects from the factory gate and arranges everything after that. Cheapest headline price, most work for the buyer.

FOB
Seller

Free On Board (FOB Colombo). The seller delivers the goods loaded on the ship in Colombo. The buyer pays the sea freight onward. This is the default on most listings.

CIF
Seller

Cost, Insurance & Freight. The seller also pays the sea freight and insurance up to the arrival port. The buyer handles import clearance and final delivery.

DDP
Seller

Delivered Duty Paid. The seller delivers all the way to the buyer’s door, import duties paid. Most convenient for the buyer, highest headline price.

Covered by the seller (in the price) Arranged & paid by the buyer

Common export terms

The acronyms you’ll see on listings and in quotes, in one line each.

MOQMinimum Order Quantity

The smallest amount an exporter will sell in one order, e.g. 500 kg or one 20ft container. Listed on every product.

HS CodeHarmonized System code

A global product number that customs use to set duty. Your freight agent matches each product to its HS code.

CoOCertificate of Origin

An official document proving the goods were made in Sri Lanka, needed for customs and for tariff preferences.

PhytosanitaryPlant-health certificate

Confirms plant products (tea, spices, coconut) are pest- and disease-free. Issued by Sri Lanka’s plant-quarantine service.

GSP+EU tariff preference

An EU scheme letting many Sri Lankan goods enter Europe at reduced or zero duty, a real price advantage for EU buyers.

FCL / LCLContainer load

FCL = a full container is yours. LCL = your goods share a container, cheaper for smaller orders.

L/CLetter of Credit

A bank guarantee that the seller gets paid once shipping documents are in order, protection for large orders.

TT / WireTelegraphic Transfer

A direct bank-to-bank payment (SWIFT) to the exporter’s Sri Lankan account, the most common way bulk orders are paid.

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