Importing Green Coffee to the UK from Indonesia: Tariffs, FOB vs CIF Pricing, and MOQ

Importing Green Coffee to the UK from Indonesia Tariffs, FOB vs CIF Pricing, and MOQ

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Every few weeks, a UK roaster emails us worried about the tariff on importing green coffee from Indonesia. Here is the short version, so you can stop worrying about the wrong thing: there is no tariff. Green coffee beans, unroasted and caffeinated, enter the UK at 0% import duty and are zero-rated for VAT. The commodity code is 0901 11 00 00, and the duty stays at zero whether the coffee comes from Indonesia, Brazil, or anywhere else.

So if the customs line is free, where does the money actually go? Into freight, destination charges, and the price terms you agree with your exporter. That is the part nobody warns you about, and the part that decides whether your first container lands smoothly or lands with a surprise invoice. This article walks through all of it: the tariff facts, FOB versus CIF pricing, what a container really costs to land, minimum order quantities, and the steps to buy.

Last updated: June 2026

Do you pay import tariffs on green coffee in the UK?

No. Importing green coffee to the UK carries a 0% tariff. Unroasted, caffeinated green coffee beans sit under commodity code 0901 11 00 00, which the UK Integrated Online Tariff lists at zero duty for all origins. The tariff only appears once coffee is processed: roasted coffee is dutiable, and decaffeinated coffee is dutiable too.

Here is where the confusion comes from. People read “coffee tariff” online and assume it applies to them. It usually doesn’t, because most of those figures are for roasted or decaf product. For raw beans the picture is simple:

Commodity code Product UK import duty
0901 11 00 00 Green coffee, not roasted, caffeinated 0%
0901 12 00 00 Green coffee, not roasted, decaffeinated 8%
0901 21 00 00 Roasted coffee, caffeinated 6%
0901 22 00 00 Roasted coffee, decaffeinated 8%

If you are importing green beans to roast yourself, which is what nearly every roaster reading this is doing, the duty column is a zero. That is the whole reason the green coffee trade works the way it does: the value gets added in the importing country, by the roaster, not at the border.

By contrast, do not assume the same for samples of roasted coffee or for any finished product. The moment heat or decaffeination touches the bean, the commodity code changes and so does the duty. Always check the exact code on the UK Trade Tariff tool before you ship anything that isn’t plain green coffee.

VAT and the DCTS: what actually applies

Green coffee is zero-rated for VAT in the UK, because unprepared food generally carries 0% VAT. So on a standard green coffee import you pay no duty and no import VAT. The Developing Countries Trading Scheme (DCTS), which sets preferential rates for Indonesian goods, makes no practical difference here, because the standard rate is already zero and you cannot beat zero.

This trips people up, so it’s worth being precise. The DCTS replaced the old GSP in June 2023 and keeps Indonesia in its Standard preference tier. For many products that means a lower duty if you can prove Indonesian origin. For green coffee, the most-favoured-nation rate is already 0%, so origin paperwork doesn’t unlock a saving on duty. You may still need a proof of origin for other reasons, but you are not chasing a tariff cut that doesn’t exist.

A word of caution on VAT, because zero-rated is not the same as exempt. Your customs entry still has to be filed correctly for the zero rate to apply, and if your clearing agent miscodes the entry, you can end up with a VAT charge you then have to claw back. Get the commodity code right on the paperwork and the import stays clean. If you import other coffee formats later, roasted, instant, or capsules, recheck both the duty and the VAT treatment, because those are not zero-rated.

FOB vs CIF vs CFR: which price are you comparing?

When an Indonesian exporter quotes you a price, the first question is which Incoterm it uses, because the same coffee can carry three different numbers. FOB is the price with the coffee loaded onto the ship at the Indonesian port, and you arrange everything after that. CFR adds the ocean freight to your UK port. CIF adds freight plus marine insurance. The per-kilo coffee inside is identical; what changes is how much of the trip to your port the seller has priced in.

Here is the practical breakdown:

Term Seller pays to You arrange and pay Risk transfers
FOB (Free On Board) Loaded on ship at Belawan Ocean freight, insurance, UK destination charges, clearance, delivery On board in Indonesia
CFR (Cost and Freight) UK port (freight included) Insurance, all UK destination charges, clearance, delivery On board in Indonesia
CIF (Cost, Insurance, Freight) UK port (freight + insurance) All UK destination charges, clearance, delivery On board in Indonesia

Notice what every one of these has in common: none of them gets the coffee to your roastery, and none of them includes UK destination handling, clearance, duty, or VAT. Even CIF, the most “complete” sounding term, only covers the coffee to the ship’s arrival. Everything that happens on the UK quayside is still yours to pay.

One detail that affects the price per kilo: Indonesian processing changes the weight you ship. Most Sumatran coffee is semi-washed, then wet-hulled (Giling Basah) with the bean still at 35-40% moisture, then dried down for export to around 12-13%. By the time it loads FOB Belawan it is at export moisture, so you are paying for dry weight, not water. Ask any exporter for the moisture at shipment. A lot quoted cheap but loaded wet is not a bargain, it is a future defect and a weight you overpaid for.

The honest trade-off: why CIF can cost you more

CIF looks like the easy button. One price, freight and insurance handled, less for you to organise. For a first-time importer that simplicity is tempting, and that is exactly the trap. With CIF, the seller chooses the freight forwarder, and that forwarder’s agent in the UK controls the charges you cannot avoid: destination terminal handling, the delivery order fee, port storage, and demurrage if anything sits too long.

Picture the common version of this. Your container lands at Felixstowe. A UK agent you have never spoken to emails you a release invoice, and the coffee does not move until you pay it. The figure is whatever they decided, and you have no relationship and nothing to push back with, because the exporter picked them, not you. We have watched buyers save a little on the CIF coffee price and then lose far more on destination charges they never saw coming.

Now the honest part, including where it costs us a sale. For a first container, FOB with your own UK freight forwarder is usually cheaper and almost always less stressful, even though it means more admin up front. You choose the forwarder, you see every charge before it lands, and you can compare quotes. CIF is fine once you have a forwarder you trust and a route you have run before. As a first move, it tends to swap a small, visible saving for a large, invisible risk. That is not the deal it looks like on the quote.

What it costs to land a container from Indonesia

Your landed cost is the FOB coffee price plus ocean freight plus UK destination charges, with duty and VAT both at zero. As a working picture for a full container of Indonesian green coffee, the coffee itself is the large majority of the cost, ocean freight adds a modest amount per kilo, and UK quayside charges add a smaller but real layer on top. The exact figures move with the shipping market, so treat the ranges below as a frame, not a quote, and cross-check them against the current Indonesian green coffee market price.

Verified FOB Belawan ranges for Gayo, to anchor the coffee-price line (these are current export ranges; confirm live pricing before you budget):

Process (two-step) FOB Belawan
Semi-washed, wet-hulled $8.00-10.00/kg
Full-washed, dry-hulled $9.50-11.00/kg
Honey or natural, dry-hulled $11.00-16.00/kg
Wine process $16.00-20.00+/kg
Grade 2 commercial $7.00-8.00/kg

On top of FOB, expect ocean freight in the region of a low number of US cents per kilo on a full container, and UK destination charges, the terminal handling, delivery order, and haulage to your roastery, adding another layer that you pay on the quayside regardless of Incoterm. CIF Rotterdam runs roughly $0.85/kg over FOB and CIF Los Angeles about $0.70/kg, which gives you a sense of scale for the freight-and-insurance uplift; a UK port sits in broadly the same territory and shifts with the market.

The point of laying it out this way: the coffee is the cost that matters, and it is the one part nobody can surprise you on if you agreed it in writing. Freight moves, and destination charges are where the unbudgeted money hides. Build your landed-cost model around all three lines, not just the headline price per kilo.

MOQ: how much do you have to buy

You do not have to start with a container. A serious Indonesian exporter will sell you a cupping sample first, then scale up in steps as you commit. The ladder runs from a 1 kg sample, to a microlot, to a wholesale pallet quantity, to a full container. You taste before you buy the volume, which is the only sane way to start a sourcing relationship.

Here is the typical structure:

Order size Quantity Who it suits
Sample from 1 kg Cupping and roast trials before any commitment
Microlot around 60 kg A single bag, small roaster testing a lot in production
Wholesale around 350 kg Established roaster running a lot as a regular offering
Container 9 MT+ Importers and larger roasters; custom quote

A few things to know before you ask for a quote. Sample shipping is usually a courier cost you pay, and that is normal; what you are buying is the information, not the kilogram. The economics shift hard at container scale, where ocean freight per kilo drops sharply, which is why importers consolidate. And if you cannot yet justify a full container, buying a pallet quantity through someone already importing is often smarter than forcing a container you’ll struggle to roast through before the coffee ages.

How to actually buy: step by step

Importing green coffee from Indonesia is a sequence, not a leap. The order matters: get registered, line up your forwarder, taste before you commit, then ship on terms you control. Here is the path most UK roasters take for a first import.

First, get your paperwork base in place. You need an EORI number starting with GB to clear customs; you can apply through GOV.UK and it is free. You do not need an import licence for plain green coffee, and there is no novel-food registration for it, but you must comply with standard UK food law on labelling and traceability once you are selling.

Second, choose a UK freight forwarder before you choose an Incoterm. A good forwarder will quote you the destination charges up front and clear the goods on your behalf. With that in hand you can ask your exporter for an FOB price and run the full landed-cost model yourself, instead of accepting a CIF number blind.

Third, sample before volume. Ask for a cupping sample of the actual current-crop lot, not a generic origin sample. Request the crop year, the full two-step process description, the moisture at shipment, and a recent cupping score. Roast it, cup it, and only then talk quantity.

Fourth, agree the contract clearly: coffee price and Incoterm, quantity and packaging (GrainPro-lined bags protect the cup through transit), shipment window, and payment terms. Sort out proof of origin if your forwarder asks for it, even though duty is already zero. Then your forwarder books the vessel, the coffee ships, and you clear it at the UK port with the commodity code 0901 11 00 00 entered correctly so the zero duty and zero VAT both apply.

What this means for UK roasters and importers

If you are a small UK roaster making your first Indonesian import, the headline is reassuring: no tariff, no VAT, no import licence, no novel-food hurdle. Your real job is cost control on freight and clearance, and quality control on what you actually receive. Start with a sample, import FOB through your own forwarder, and keep your first order to a quantity you can roast through within a few months so the coffee doesn’t age in store.

If you are an importer or a larger roaster buying at container scale, the maths changes in your favour: ocean freight per kilo falls, and you have the volume to negotiate FOB terms and your own destination handling. Your risk shifts from “will the numbers work” to “is the quality consistent across a full container,” which is a cupping and supplier-trust question more than a logistics one. Either way, the customs line is the easy part. The coffee, and the people you buy it from, are what you should spend your attention on.

Frequently asked questions

Is there an import tariff on green coffee in the UK?

No. Unroasted, caffeinated green coffee beans (commodity code 0901 11 00 00) enter the UK at 0% import duty from all origins, including Indonesia. Duty only applies once coffee is roasted or decaffeinated. For plain green beans you intend to roast, the tariff is zero.

Do you pay VAT when importing green coffee to the UK?

Green coffee is zero-rated for VAT in the UK, so import VAT on a standard green coffee shipment is 0%. The entry still has to be coded correctly for the zero rate to apply. Roasted, instant, and capsule coffee are treated differently, so recheck VAT for those formats.

What is the difference between FOB and CIF for coffee?

FOB prices the coffee loaded onto the ship at the Indonesian port, and you arrange freight, insurance, and all destination costs. CIF adds ocean freight and insurance to your UK port. Neither includes UK destination handling, clearance, or delivery to your roastery.

What is the minimum order to import coffee from Indonesia?

You can start with a 1 kg cupping sample, then scale to a microlot of around 60 kg, a wholesale quantity of around 350 kg, or a full container of 9 metric tonnes and up. Most roasters sample first, then order a pallet quantity before committing to a container.

Do I need a licence to import green coffee into the UK?

No import licence is required for plain green coffee, and it is not a novel food. You do need an EORI number to clear customs and must meet standard UK food law on labelling and traceability once you sell. Always confirm current requirements before your first shipment.

Sourcing Indonesian green coffee from the UK

Whatever supplier you choose, ask for the current crop year, the full two-step process description, the moisture at shipment, and a recent cupping score before you commit to a bag, let alone a container. Then price it FOB and run your own landed-cost numbers through a UK forwarder you picked.

If you want to start with Gayo, Indonesia Specialty Coffee ships 1 kg cupping samples of the lots we export FOB Belawan, so you can cup before you commit: request a sample or see the current green coffee pricelist.