MOQ, Incoterms and lead times: the commercial basics of importing from India

Most of the friction in a first order is commercial rather than technical. Getting three things straight — quantity, terms and timing — removes the majority of it.

Minimum order quantities

MOQs exist because processing, testing and documentation carry fixed costs per lot. A typical MOQ for bulk botanical ingredients sits in the hundreds of kilograms, and varies by product: standardized extracts usually carry lower MOQs than raw powders because they are more concentrated and more valuable per kilo.

If a trial volume is what you need, ask directly. Many suppliers will accommodate a smaller first lot at an adjusted price rather than lose the relationship.

Incoterms, briefly

• EXW — you take responsibility at the supplier's door. Maximum control, maximum coordination effort.
• FOB — supplier delivers to the port of origin and handles export clearance. The most common arrangement for buyers with their own freight forwarder.
• CIF — supplier arranges carriage and insurance to your destination port. Simpler, but you are buying their freight rate.
• DDP — delivered duty paid. Simplest for you, and priced accordingly.

There is no universally correct choice. If you ship regularly and have forwarder relationships, FOB usually wins on cost. If this is your first import, CIF or DDP buys simplicity.

Lead times that hold up

A realistic timeline has four segments: production and processing, laboratory testing and release, documentation and export clearance, and ocean transit. Transit from Indian west-coast ports to North America commonly runs several weeks, and testing turnaround is often underestimated.

Ask for the breakdown rather than a single number. A supplier who can itemise the stages is a supplier who has thought about them.

Documentation to expect

A standard export set includes the Certificate of Analysis, phytosanitary certificate, certificate of origin, packing list and commercial invoice. Confirm early which additional documents your customs broker will require for your specific product and destination.