Coffee Glossary · Trade
Letter of Credit (L/C)
A bank's irrevocable payment undertaking: the buyer's bank commits to pay the exporter upon presentation of exactly conforming documents — invoice, bill of lading, certificates — within set dates. L/Cs at sight are coffee's standard first-transaction instrument, protecting both sides across borders: the exporter ships knowing payment is bank-guaranteed; the buyer pays only against proof of correct shipment. Precision matters obsessively — a misspelled consignee or late presentation ('discrepancy') voids the guarantee and forces renegotiation.
Related terms
Bill of Lading (B/L)
The ocean shipment's master document, issued by the carrier: simultaneously a receipt for the cargo, evidence…
Cash Against Documents (CAD)
A documentary collection payment method lighter than a letter of credit: the exporter ships, then routes the…
Incoterms (FOB, CIF, CFR, EXW, DDP)
The ICC's standardized trade terms defining exactly where seller responsibility ends and buyer responsibility…
Crop Year / Fresh Crop / Past Crop
Coffee's vintage system: each origin's harvest defines its crop year (Laos: roughly October–September), and…
Cup of Excellence (CoE)
The most prestigious origin-country coffee competition: national juries winnow hundreds of farm entries…
Differentials (Price Basis)
How most coffee is priced: as a premium or discount ('differential') against the futures markets — New York's…
Reading up before buying? Volcana Coffee exports SGS-inspected specialty Arabica and Fine Robusta from the Bolaven Plateau, Laos — and we're happy to walk new importers through every term on a real offer sheet.
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