The Complete Guide to Exporting Coffee to the United States: From Legality to Payment

Disclaimer: This article is intended to provide general information and guidance on the process of exporting coffee from Indonesia to the United States. The information presented is based on research from official sources and practical experience as of August 2025. However, international trade regulations are subject to change. Readers are strongly advised to re-verify all information with relevant government agencies and professional consultants before making any business decisions.

The United States coffee market is one of the largest and most dynamic in the world. Having been involved in the business and economic landscape for over two decades, I have witnessed how the demand for high-quality coffee, especially specialty coffee from Indonesia, continues to show a positive trend. For coffee entrepreneurs in our homeland, the U.S. market is no longer just a dream, but a tangible opportunity that can be seized with thorough and systematic preparation.

However, penetrating this market is no simple feat. It requires a deep understanding not only of product quality but also of the labyrinth of regulations, logistics, and risk mitigation. Based on my experience in advising several business actors, many export potentials are hindered not by poor coffee quality, but by a lack of understanding of the existing procedures.

This article will systematically and meticulously break down—step-by-step—the entire process of exporting coffee from Indonesia to the United States, from handling legalities at home to receiving payment from buyers abroad.

Stage 1: The Foundation of Legality and Quality – Building Business Credibility

Before you even think about buyers and shipping, your business foundation must be solid. This is the pillar that will support your entire export transaction.

Becoming a Registered Coffee Exporter (ETK)

The Indonesian government, through the Ministry of Trade, regulates the coffee export trade to maintain the quality and reputation of Indonesian coffee in the global market. The primary requirement to be able to export coffee is to be recognized as a Registered Coffee Exporter (Eksportir Kopi Terdaftar – ETK).

In my experience, this process is the first gate that must be passed. Referring to the relevant Regulation of the Minister of Trade, here are the key steps to obtain ETK recognition:

1. Business Entity: You must have a legal business entity, which can be a Limited Liability Company (PT) or a Commanditaire Vennootschap (CV).
2. Business Identification Number (NIB): Register your business entity through the Online Single Submission (OSS) system to obtain your NIB. The NIB serves as a single identity for your business.
3. Trade Business License (SIUP): Ensure that the Indonesia Standard Industrial Classification (KBLI) code on your SIUP includes the export trade of coffee commodities.
4. Regional Office Recommendation: Apply for a recommendation from the Trade Office at the provincial or city/regency level where your business is domiciled.
5. AEKI Membership (Optional but Recommended): Becoming a member of the Association of Indonesian Coffee Exporters and Industries (AEKI) can facilitate the process and provide access to crucial networks and market information.

The application for ETK status is submitted to the Directorate General of Foreign Trade, Ministry of Trade of the Republic of Indonesia. This process demonstrates your commitment to the standards set by the government and serves as proof of your authority as a legitimate exporter.

Product Quality Standards: SNI and SCAA

The United States is a highly quality-conscious market. Buyers, especially in the specialty coffee segment, will be extremely detailed in assessing your coffee beans.

• Indonesian National Standard (SNI) for Coffee Beans (SNI 01-2907-2008): This is the minimum standard you must meet. The SNI classifies coffee beans based on the number of defect values, moisture content (maximum 12.5%), and bean size. Compliance with SNI is the basis for obtaining other export documents.
• Specialty Coffee Association (SCA) Standard: If your target is the specialty market, then you must be familiar with the evaluation standards of the SCA (formerly SCAA – Specialty Coffee Association of America). This standard uses a 100-point cupping score system, where coffee scoring above 80 is considered “specialty.” This quality is assessed on attributes such as aroma, flavor, aftertaste, acidity, body, and balance.

From my experience, investing in a certified Q Grader to conduct internal quality control is a strategic move that will yield long-term results.

Additional Certifications: A Selling Point in the U.S. Market

U.S. buyers are increasingly concerned with sustainability and traceability. Possessing certifications like the ones below can significantly enhance the competitiveness and selling price of your coffee:

• Organic: Guarantees the coffee is grown without synthetic pesticides or chemical fertilizers.
• Fair Trade: Ensures that farmers receive a fair price and that the production process considers worker welfare.
• Rainforest Alliance: Indicates that the coffee is produced using methods that conserve biodiversity and ensure sustainable livelihoods.

The process to obtain these certifications requires an investment of time and money for audits by independent certification bodies, but this is an investment in trust and your brand image.

Stage 2: Export Documentation – The Paper Trail of International Transactions

Every step in the export process is recorded in documents. A minor error in filling out a document can lead to customs delays, fines, or even the rejection of your goods. Here are the essential documents:

1. Commercial Invoice: The seller’s (exporter’s) bill to the buyer (importer), containing details of the goods, price, and terms of sale.
2. Packing List: A detailed list of the contents of each package (sack or box), including net weight and gross weight.
3. Bill of Lading (B/L) or Air Waybill (AWB): Proof of the contract of carriage between the exporter and the shipping line (for a B/L) or airline (for an AWB). This document also serves as a title to the goods.
4. Certificate of Origin (COO): A crucial document issued by the local Trade Office. The COO proves that the exported coffee genuinely originates from Indonesia. For coffee exports, an ICO Form that complies with the standards of the International Coffee Organization is often required.
5. Export Declaration (Pemberitahuan Ekspor Barang – PEB): A customs document that must be submitted to the Customs and Excise office as an official notification of the goods to be exported. The PEB is now filed online through the Electronic Data Interchange (EDI) system. Once approved, Customs will issue an Export Service Note (Nota Pelayanan Ekspor – NPE), which is the green light to load the goods onto the carrier.
6. Insurance Policy: Proof that your shipment has been insured against the risk of damage or loss during transit.
7. Phytosanitary Certificate: This is one of the most important documents for agricultural products. Issued by the Agricultural Quarantine Agency, this certificate declares that the exported coffee is free from pests and plant diseases. Without this document, your goods will certainly be rejected at the port of destination.

Stage 3: The Shipping Process – The Journey of Coffee Across the Ocean

Logistics is the backbone of export activities. The efficiency and reliability of this process determine whether your coffee arrives on time and in prime condition.

Choosing a Freight Forwarder Partner

For novice exporters, trying to handle all shipping details alone is a very risky move. I always emphasize the importance of partnering with a reputable Freight Forwarder with experience in handling coffee commodities to the U.S.

The role of a Freight Forwarder includes:

• Booking Space: Reserving space on a container ship or aircraft.
• Inland Transportation: Arranging for the transport of the container from your warehouse to the port of loading (e.g., Belawan Port in Medan or Tanjung Priok in Jakarta).
• Customs Clearance: Assisting with the PEB submission process until the NPE is issued.
• Issuing B/L or AWB: Handling the transport document on your behalf.
• Consolidation (if necessary): Combining your shipment with others if the volume is not enough for a full container (Less than Container Load – LCL).

Compliance on the U.S. Side

Before your ship departs, there are two important U.S. regulations that must be met by the importer or their agent over there:

1. U.S. Food and Drug Administration (FDA) Prior Notice: The FDA requires an electronic notification (Prior Notice) to be filed before a shipment of food (including coffee) arrives at a U.S. port. Failure to file this will result in the cargo being detained.
2. U.S. Customs and Border Protection (CBP) Importer Security Filing (ISF 10+2): For sea freight, the importer or their agent is required to submit 10 data elements related to cargo security to CBP at least 24 hours before the cargo is loaded onto the vessel at the port of origin.

Although these are the importer’s responsibilities, as a good exporter, you should be proactive in ensuring your buyer has fulfilled these obligations to avoid problems.

From Warehouse to Destination Port: A Timeline

In general, the physical flow is as follows:

1. Stuffing: The process of loading the coffee sacks into the container at your warehouse. The container must be dry and odor-free. A liner bag is often used for extra protection.
2. Trucking to Port: The container is transported to the port of loading.
3. Customs Clearance & Loading: After the NPE is issued, the container is loaded onto the ship.
4. Sea Freight: The sea journey from Indonesia to a major U.S. port (e.g., Los Angeles/Long Beach on the West Coast or New York/New Jersey on the East Coast) can take approximately 3-5 weeks.
5. Arrival & Unloading: Upon arrival at the destination port, the container is unloaded from the ship.
6. U.S. Customs & FDA Clearance: The importer or their customs broker will handle the customs and FDA inspection process. If all documents are complete and there are no suspicions, the goods will be released.
7. Delivery to Buyer: The container is transported from the port to the buyer’s warehouse.

Stage 4: Payment Mechanisms – Securing the Fruits of Your Labor

In international trade, trust is everything, but trust must be backed by a secure payment system. Avoid deals based solely on a “gentlemen’s agreement,” especially with new buyers.

Here are the common payment methods, ordered from most secure to least secure for the exporter:

1. Advance Payment: This is the ideal scenario. The buyer pays the full or a significant portion of the transaction value (e.g., 50%) before the goods are shipped. This minimizes the risk of non-payment but may be difficult to negotiate with new buyers.
2. Letter of Credit (L/C): This is the most common method and one I highly recommend for large-value transactions. An L/C is a written guarantee from the buyer’s bank (Issuing Bank) to the seller’s bank (Advising Bank) that payment will be made if the exporter submits documents that comply with the terms and conditions specified in the L/C. The process is highly detailed, and every word in the documents must be precise. The most secure type of L/C is an Irrevocable & Confirmed L/C at Sight.
3. Documents Against Payment (D/P) or Cash Against Documents (CAD): In this scheme, you ship the goods first. The title documents (like the B/L) are sent through a bank. The bank will release the documents to the importer only after the importer makes the payment. The risk is that if the importer refuses to pay, the goods are already at the destination port.
4. Open Account: You send the goods and documents directly to the buyer, and the buyer promises to pay on a future due date (e.g., 30 or 60 days later). This is the riskiest method for the exporter and should only be done with buyers who have a very long and trusted business relationship.

Hypothetical Case Study: The Export Journey of PT Kopi Nusantara

To provide a more concrete picture, let’s simulate an export process:

• Exporter: PT Kopi Nusantara in Medan, an ETK focusing on Mandailing Arabica coffee.
• Importer: “Artisan Roasters Inc.” in New York, USA.
• Goods: 1 x 20-foot container (approx. 19.2 metric tons) of Grade 1 Mandailing Arabica Coffee, SNI compliant.
• Agreement: Price of USD 7,500 per ton, on CIF (Cost, Insurance, and Freight) New York terms. Payment via an Irrevocable L/C at Sight.

The Steps:

1. Contract & L/C: Artisan Roasters Inc. instructs its bank in New York to issue an L/C in favor of PT Kopi Nusantara through a correspondent bank in Medan.
2. Production & Preparation: PT Kopi Nusantara receives the L/C, verifies its authenticity, and begins preparing the coffee according to specifications. They also contact their Freight Forwarder to book a container and vessel schedule.
3. Initial Documentation: PT Kopi Nusantara prepares the Commercial Invoice and Packing List. They also apply for a Phytosanitary Certificate from the Agricultural Quarantine Agency, providing a coffee sample.
4. Stuffing & Customs: The container arrives at PT Kopi Nusantara’s warehouse. After the stuffing process is complete, the container is sealed and transported to Belawan Port. The Freight Forwarder files the PEB online.
5. Export Approval: Customs grants approval and issues the NPE. The container is loaded onto the vessel. The shipping line issues a Draft Bill of Lading for review.
6. Final Document Processing: After the ship departs, the shipping line issues the Original Bill of Lading. PT Kopi Nusantara also obtains the ICO Form COO from the Trade Office and the Insurance Policy.
7. Document Presentation to Bank: PT Kopi Nusantara gathers all documents required by the L/C (Invoice, Packing List, B/L, COO, Insurance Policy, Phytosanitary Certificate) and submits them to their bank in Medan.
8. Payment: The bank in Medan checks the documents for completeness and accuracy. If compliant, they forward them to the bank in New York. As per the principle of an L/C at Sight, the New York bank will immediately execute the payment. The funds are credited to PT Kopi Nusantara’s account.
9. Process in the U.S.: Meanwhile, the cargo arrives in New York. The customs broker for Artisan Roasters Inc., having received the documents from the bank, handles the customs and FDA release process. The coffee is then delivered to their warehouse.

The transaction is complete. Both parties received what they expected through a structured and secure process.

Risk Mitigation: Vigilance in Global Trade

The world of exports is not always smooth sailing. Based on experience, there are three primary risks that must always be watched for:

1. Cargo Risk: Goods can be damaged by moisture inside the container, become contaminated, or even be lost. Solution: Use proper packaging (e.g., jute bags with a GrainPro liner), ensure the container is in good condition, and most importantly, always purchase marine cargo insurance. Do not cut corners on this.
2. Foreign Exchange Risk: Export transactions are generally conducted in U.S. Dollars (USD). Fluctuations in the Rupiah-to-USD exchange rate can affect your profit margins. Solution: Consult with your bank about hedging options like a forward contract, where you “lock in” an exchange rate for a future transaction.
3. Fraud Risk: There are many stories of exporters being deceived by fictitious buyers. The warning signs are often offers that are too good to be true, pressure to ship goods immediately, or a reluctance to use secure payment methods like an L/C. Solution: Conduct due diligence on your prospective buyers. Utilize the network of the Trade Attaché or the Indonesian Trade Promotion Center (ITPC) located in the U.S. to verify an importer’s credibility.

Conclusion: Exporting Coffee is a Marathon, Not a Sprint

Exporting coffee to a competitive market like the United States is a marathon that requires preparation, perseverance, and attention to detail. It’s not just about selling a product; it’s about building a credible, structured, and resilient business.

From ensuring your legal status as an ETK, maintaining internationally recognized quality standards, managing documentation with precision, choosing reliable logistics partners, to securing payment, each stage is an interconnected link in a chain. A strong chain will not only bring Indonesia’s finest coffee to American ports but also into the cups of its connoisseurs, all while building a sustainable reputation and profit for entrepreneurs back home.