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Trade · Contract

Green coffee contracts

The standard contract forms under which most green coffee is bought and sold – the European ESCC and the New York GCA contract – and what they say about quality, weights, documents, payment, claims and arbitration.

Source-checkedby Coffearium verification pass· Last source-checked 16 Oct 2026· Prepared with AI assistance· 14 sources (3 tier A)· Updated 16 Oct 2026
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Contents
  • International green coffee is commonly traded on standard contract forms, mainly those of the European Coffee Federation (ECF) and the Green Coffee Association (GCA).3
  • The ECF’s form is the European Standard Contract for Coffee (ESCC); its 2018 edition merged earlier European contracts into one document.1,6
  • Both forms offer shipped or landed weights; on shipped weights, loss beyond 0.5% is for the seller’s account (GCA: unless the contract sets another franchise).1,2
  • Quality claims have short time limits after discharge: 28 calendar days under the 2018 ESCC, 15 under the GCA contract.1,2
  • Disputes go to arbitration in the coffee trade, not to court: at the place named in an ESCC contract, under GCA rules in New York by default.1,2

Why the trade uses standard forms#

Most green coffee that crosses a border is sold under a written contract. Writing every condition anew for each deal would be slow and would invite disputes. The trade therefore agrees on standard contract forms.3,5

Two forms are the main ones. One is published by the European Coffee Federation (ECF), the other by the Green Coffee Association (GCA) in New York.3 The ECF’s form is called the European Standard Contract for Coffee (ESCC).5 Buyer and seller agree the points of their own deal and name the form; the form supplies everything else.3

Each deal concerns a lot: a batch of coffee from one origin and process, traded as a unit. An offer to sell, or a bid to buy, still states its own terms. These are quality, quantity, price, shipment period, the conditions that apply and how long the offer is valid.3 Coffearium describes the published forms here. This is not legal advice: the signed contract, and the edition of the form it names, decide.

What a contract fixes#

Quantity. ESCC figures in this entry are those of its 2018 edition. The quantity shipped must be the one stated in the contract.1 Both forms accept 3% more or less, but only when the difference has causes beyond the seller’s control.1,2

Quality. The ESCC says the quality must match the contract description.1 Unless the contract says otherwise, the coffee must be of “sound merchantable quality”.1 The GCA contract asks the parties to state whether the coffee is commercial or specialty quality; if they do not, it counts as commercial.2 According to the GCA, a good description names crop year, grade, screen size and colour. It adds a cup profile and how the coffee roasts.2 How grades are defined is explained in Green coffee grading.

Price. The price is either agreed in full at once (outright) or as a differential to the futures price. In the second case the futures part is fixed later.9,10 How these parts add up is in How a coffee price is made.

Shipment period. Both forms define short periods in words. “Prompt” means within 30 calendar days of the contract date, “immediate” within 15.1,2 The proof of the shipment date is the “on board” or “shipped” date on the bill of lading, the transport document issued for the coffee.1,2

Terms of delivery. The contract also says where the seller’s duties end. That can be on board a ship at origin, at the port of destination or in a warehouse.1,2 The shipment part of the ESCC covers FOB, C&F (CFR in Incoterms 2020), CIF and FCA contracts.1,7 The GCA contract lists nine standard types, from FCA to ex dock, ex warehouse, delivered and spot.2 What each term means is explained in Incoterms for coffee.

Weights, documents and payment#

Weights. The contract says which weight is invoiced. On shipped weights, the seller invoices the weight at loading.1,2 If the coffee arrives lighter by more than 0.5%, the seller pays back the loss beyond that margin (2018 ESCC; GCA form).1,2 The GCA calls this margin the franchise.2 On landed weights, the coffee is weighed after arrival and the invoice is settled on that weight.1,2

Documents. Under the ESCC the seller provides the documents free of charge. They include the invoice, the bills of lading, a weight certificate and, for CIF sales, an insurance certificate.1 If the buyer asks in good time, the list also includes a certificate of origin, such as the ICO certificate, and phytosanitary (plant health) and fumigation certificates.1 Due diligence documents under the EU Deforestation Regulation are not in the 2018 list. One roaster’s 2025 buying terms ask sellers to help compose due diligence statements required by law.1,13 See EUDR.

Payment. The GCA contract says payment terms must be defined when the contract is made.2 When a letter of credit is used, both forms require it to stay valid at least 21 calendar days beyond the shipment period.1,2 Under the ESCC, the coffee remains the seller’s property until it is paid for in full.1

Claims and arbitration#

A buyer who finds the coffee short in weight or poor in quality must claim quickly. Under the 2018 ESCC, quality claims are due within 28 calendar days of the final discharge at the port of destination.1 Under the GCA shipment terms (FCA, FOB, CFR, CIF, DAF), the coffee counts as accepted unless the claim is settled or arbitration samples are ordered within 15 calendar days of discharge (or of government clearance, if later).2

If the quality is worse than agreed, the usual remedy is a price allowance. Under the ESCC, arbitrators set it; only unsound coffee or a radical difference lets the buyer give the coffee back.1 Excessive moisture is one sign that coffee is unsound.1

Disputes the parties cannot settle go to arbitration: an arbitral body of the coffee trade decides, not a court.1,2 An ESCC contract names the place, and the coffee trade’s arbitral body there applies its rules.1 A GCA contract goes to arbitration under GCA rules, in New York unless the contract names another place.2 In London, the British Coffee Association’s 2026 rules have three arbitrators decide each case.8

The life of a contract#

The figure follows one shipment contract from signature to arbitration. The coffee travels in the upper lane, the papers and the money in the lower.

CoffeePaper and money25671348
  1. Contract. Quality, quantity, price, shipment period and conditions are agreed; a standard form supplies the rest.3
  2. Shipment. The coffee is loaded within the shipment period; the bill of lading’s “on board” date proves when.1,2
  3. Documents. Invoice, bills of lading, weight and origin certificates, phytosanitary certificate; insurance certificate for CIF.1
  4. Payment. As agreed in the contract, for example under a letter of credit; on landed weights against a provisional invoice.1,2
  5. Discharge. Arrival at the port of destination starts the clock for weighing, sampling and claims.1,2
  6. Weighing. On landed weights, within 21 calendar days of discharge (ESCC 2018) or 15 days of availability at the port (GCA).1,2
  7. Sampling and quality. ESCC (2018) arbitration samples are drawn and sealed by an independent body within 28 calendar days of discharge.1
  8. Claim and arbitration. Unsettled claims go to the trade’s arbitral body at the place in the contract.1,2
Main steps of a green coffee shipment contract under the ESCC (2018) and GCA forms, in time order. Schematic, not to scale.

Reference values: the two forms side by side#

Clause ESCC, 2018 edition (shipment section) GCA contract, as amended to 2021
Publisher European Coffee Federation; adopted 19 June 2018, effective 1 September 20181 Green Coffee Association, New York; effective 1 May 2002, last amended 27 September 20212
Quantity tolerance 3% more or less, only for causes beyond the sellers’ control1 Fulfilled within 3% of the contracted quantity, same condition2
Default quality “Sound merchantable quality” unless otherwise stated1 Commercial quality unless specialty is stated2
“Prompt” / “immediate” shipment 30 / 15 calendar days from the contract date1 30 / 15 calendar days from the contract date2
Proof of shipment “On board” or “shipped” date of the bill of lading1 Same2
Shipped-weight loss borne by seller Beyond 0.5% of the invoice weight1 Beyond a franchise of 0.5%, unless the contract says otherwise2
Landed weighing Within 21 calendar days of final discharge1 Within 15 days of availability at the port of destination2
Weight note Within 28 calendar days of weighing1 Certified landed and plant weight notes within 30 days of weighing2
Insurance All risks, war, strikes and riots; 5% above the contract price, freight included1 Buyer insures on FCA, FOB, CFR; seller “All Risks” on CIF2
Letter of credit validity At least 21 calendar days beyond the last shipment or delivery date1 At least 21 days beyond the shipment period2
Quality claim 28 calendar days from final discharge1 15 calendar days after discharge (or government clearance, if later)2
Other claims 45 calendar days from discharge1 Weight claims: weighing within 15 calendar days of discharge (21 for bulk); claim within 90 calendar days of weighing2
Force majeure Performance extended until the impediment ends, at most 45 calendar days1 Relief only as long as the cause reasonably persists; not for lack of export quota2
Arbitration Arbitral body for the coffee trade at the place stated in the contract; law of that country1 GCA Rules of Arbitration; New York law; New York if the contract is silent2
Arbitration filing Quality: 28 calendar days from the claim; other: 90 calendar days1 Quality: 30 days from receipt of sealed samples; technical: 1 year2
UN sales convention (CISG) Excluded1 Excluded2

Values as written in the two forms; the time limits run from different events (discharge, availability, receipt of samples), so equal numbers do not always mean equal periods. Later ESCC editions were not opened for this entry (see Editions).

Quality: description, sample and allowance#

A contract can sell coffee on a description or on a sample. The spot and delivery section of the 2018 ESCC has an article for each: “Sale as per Sample” and “Sale on Description”.1 In both cases a sample of at least 250 g goes to the buyer by courier within 2 working days; the buyer then has 4 working days to report an appreciable difference and accept or discharge the contract.1 In a sale as per sample the buyer asks for it at the buyer’s cost; in a sale on description the seller sends it at the seller’s cost.1 The phrase “fair average quality” does not appear in the ESCC 2018 clauses opened for this entry; the default standard there is “sound merchantable quality”.1

For ex-dock, ex-warehouse and delivered contracts, the GCA form compares a tender with the type sample or the description sold on. If the coffee is inferior by more than 1¼ US cents per lb, the buyer may take it with the allowance set or refuse it; within that margin the buyer must accept it at the allowance.2 Each chop tendered must be uniform in grade and appearance.2

Under the 2018 ESCC, an arbitration that finds a quality difference awards the buyer an allowance, which may include costs.1 With specific evidence of unsoundness or a radical difference in quality, the buyer may instead discharge the contract by invoicing the coffee back; the arbitrators fix the price.1 Arbitration samples must be drawn and sealed by an independent, qualified body; for bulk coffee the sample is an average of 2 kg.1 Buyers who do not inform the sellers’ supervisors of sampling lose the right to a quality claim.1

ISO 9116 gives guidance on methods of specification to describe green coffee for sale and purchase.12 Its full text is not open, so this entry does not compare it with the two forms.

Weights, tare and franchise#

Shipped (or, for FCA, loaded) weights put the risk of weight loss in transit on the buyer, up to the franchise.1,2 Under the 2018 ESCC, the seller refunds any loss above 0.5% of the invoice weight, as ascertained by weighing at destination.1 The GCA contract sets the same 0.5% franchise unless the contract states another, and charges the excess loss to the seller at the contract price.2

Landed weights put the loss on the seller. The ESCC invoices provisionally on the shipped weight and settles the difference once the landed weight is known.1 The GCA contract also has plant weights, taken within 15 days of tender at the buyer’s plant, and silo weights.2 If weighing or weight notes are late, a GCA contract settles on shipped weights.2

The bag counts too. The ESCC deducts actual or customary tare in the invoice.1 The GCA contract has the weighmaster tare at least 3 bags in a chop of up to 500 bags, with more for larger chops.2

Price clauses#

Neither form opened for this entry prescribes a pricing method; the price is one of the points the parties agree for each deal.3 In an outright contract the whole price is fixed at once. A 2017 textbook chapter describes how, in the telex and fax era, offers for several containers over a 6-month spread at a fixed price went to roasters’ buying offices.9

In a price-to-be-fixed (PTBF) contract, the differential is agreed and the futures part is fixed later.9,10 Fairtrade’s 2022 guidance names a common variant for producer organisations, the price to be fixed at seller’s call: the seller decides when to fix.11 According to the guidance, this lets the organisation fix the price when its members deliver, and leaves the differential risk, the gap between the futures market and one grade and origin.11 No source opened for this entry describes a buyer’s-call clause, so it is not described here. The mechanics of fixing and exchange of futures for physicals are in How a coffee price is made and Coffee futures.

Forward contracts also serve as finance. According to the same textbook, producer organisations use them as their main collateral for working capital.10 The textbook also describes the risk: when the market rises above a fixed price, members may sell elsewhere and the cooperative may default; such defaults are rare.10

Some contracts leave the origin open. In a “Horseman” contract the seller may choose among a basket of origins; the number gives how many, so a five Horseman contract allows five.9

Shipment, delivery and spot contracts#

The 2018 ESCC has three sections: shipment, spot and delivery, and general clauses for all contracts.1,7 According to a trade body summary, a shipment contract covers coffee moving from the port of shipment to the port of destination; a delivery contract, coffee delivered at an agreed place in Europe; a spot contract, coffee already in a European warehouse at the time of sale.6 The same summary says the first ESCC replaced four earlier European contracts, among them the European Contract for Coffee and the European Delivery Contract for Coffee.6,7

Under the 2018 ESCC, spot coffee is by default for immediate delivery, within 14 calendar days of the tender; “prompt” delivery means within 28.1 The quantity tolerance on spot sales is 1%, on the basis of the previous weights.1 Sellers pay warehouse rent during the delivery period for spot coffee.1

In shipment contracts, the seller who cannot ship on time is relieved only on proof of several conditions, among them timely booking of freight.1 If the impediment still lasts 45 calendar days after the end of the period, the contract is discharged without allowance unless the parties agree otherwise.1

Default, insolvency and force majeure#

Under the 2018 ESCC, force majeure covers only unforeseeable and insurmountable events and extends performance by at most 45 calendar days.1 The GCA contract gives relief only for causes wholly beyond a party’s control and only as long as they reasonably persist, and never for a seller’s lack of export quota.2 The GCA contract also states that it is not contingent on any other contract.2

Under the ESCC, the party declaring a default may claim discharge of the contract, with or without damages; consequential damages are excluded.1 The GCA contract refers remedies to the Uniform Commercial Code of the State of New York and also excludes consequential damages.2 An insolvency clause, new in 2018, discharges the open contracts at the market price and sets the amounts due off against each other.1,7

Arbitration in practice#

According to a 2017 textbook chapter, the first New York coffee exchange also set up an arbitration system to settle disputes.9 Both forms now keep disputes inside the trade and exclude the UN Convention on Contracts for the International Sale of Goods.1,2

The ESCC does not name cities. It sends disputes to the arbitral body for the coffee trade at the place stated in the contract, and the law of that country applies.1 Awards can be enforced in the courts where the defaulting party is established.1 Quality arbitrations under the GCA contract are filed within 30 days of the association receiving the sealed samples, technical arbitrations within 1 year.2 The GCA’s standard data format lists the GCA, the European contract, the Pacific Coast Coffee Association and the Specialty Coffee Association as arbitration providers.2

The British Coffee Association’s rules show how such a body works. Disputes referred from 1 April 2026 are decided under English law, with the seat in England.8 A tribunal of three arbitrators decides; an appeal goes to a board of five and must reach the association within 28 days of the award.8 Appeals are new proceedings, with new submissions and evidence allowed.8 Samples sent to the association become its property.8 One roaster’s purchasing terms name the Court of Arbitration of the German Coffee Association.13

Specialty buying#

Specialty buying uses the same contract logic with different counterparties. According to a 2017 textbook chapter, buyers for second- and third-wave roasters seek coffee from exporters or cooperatives at origin, some directly from producers, and buy FOB, organising freight and insurance themselves.9 Conventional roasters rely mostly on importers and want delivery to the port nearest their plant or to the plant itself.9 The textbook also gives the cash-market example of a roaster buying coffee on the spot from a merchant.9

Company terms build on the standard forms. One merchant’s European sales terms apply the European Delivery Contract for Coffee.14 One large roaster’s 2025 buying terms take the ESCC general conditions as their base, set their own claim rules and add traceability and due diligence duties for the seller.13 These are single company documents, not a measure of practice.

Editions and sources read#

The ESCC text read for this entry is the 2018 edition.1 The ECF offers a “latest edition” for download without naming its date.5 Later amendments could not be opened or confirmed on 16 October 2026, so any changes are not described. The GCA terms read are those as amended to 27 September 2021.2 The ITC’s 2021 Coffee Guide has a chapter on the commercial side of the trade, with sections on quality, weights, payment, ECF and GCA contracts, Incoterms and arbitration; only its table of contents was readable.4

Open questions#

  • Current ESCC wording. Whether later ESCC editions change the time limits, franchise or document list of the 2018 edition is not established for this entry.1,5
  • Due diligence in standard forms. The 2018 ESCC document list predates the EU Deforestation Regulation; how standard forms will carry due diligence information is not shown in the sources opened.1,13
  • Use of each form. No source opened for this entry measures what share of green coffee trades under the ESCC, the GCA contract or company terms.

Key documents#

European Coffee Federation, 2018 – European Standard Contract for Coffee. One contract in three sections – shipment, spot and delivery, general – that replaced earlier European coffee contracts. It sets time limits for weighing, sampling, claims and arbitration and leaves the place of arbitration to the contract.

ESCC, 2018 edition · PDF (CAIC copy)

Green Coffee Association, 2021 – Contract Terms and Conditions. The New York form, amended several times since 2002. It defines nine contract types, weight bases from shipped to silo weights, a 1¼-cent quality threshold and arbitration under GCA rules.

GCA, effective 1 May 2002, amended 27 September 2021 · PDF

International Trade Centre, 2012 – Contracts. The contracts chapter of the Coffee Exporter’s Guide explains why the trade relies on standard forms and what every offer must still state. Its abstract names the ECF and GCA forms as the main ones.

The Coffee Exporter’s Guide, 3rd ed., pp. 63–82 · doi:10.18356/216e14bc-en

British Coffee Association, 2026 – London Arbitration Rules. Rules for coffee disputes referred from April 2026: English law, a first tribunal of three, an appeal board of five and fixed time limits for submissions and appeals.

BCA, 2026 · PDF

Share or cite this entry

Sources

  1. A/BEuropean Coffee Federation (2018). European Standard Contract for Coffee (ESCC), 2018 Edition. European Coffee Federation, Brussels (copy hosted by the Comitato Associazioni Italiane Caffè, CAIC).
  2. A/BGreen Coffee Association (2021). Contract Terms and Conditions (effective May 1, 2002, as amended to September 27, 2021). Green Coffee Association, Inc., New York.
  3. AInternational Trade Centre (2012). Contracts (chapter 13). In: The Coffee Exporter's Guide, 3rd edition, International Trade Centre, Geneva; United Nations iLibrary, pp. 63–82. doi:10.18356/216e14bc-en · other copies
  4. AInternational Trade Centre (2021). The Coffee Guide, 4th edition. International Trade Centre, Geneva.
  5. BEuropean Coffee Federation International Trade. European Coffee Federation.
  6. BFoodDrinkEurope (2021). European Standard Contract for Coffee: facilitating the green coffee trade. FoodDrinkEurope (industry action page on its member, the European Coffee Federation).
  7. BGordon, E. (2018). European Coffee Contract (presentation to the ICO Private Sector Consultative Board, 19 September 2018). European Coffee Federation, at the International Coffee Organization.
  8. A/BBritish Coffee Association (2026). British Coffee Association London Arbitration Rules 2026. British Coffee Association, London.
  9. BNadelberg, E.; Polit, J. R.; Orjuela, J. P.; Ranitzsch, K. (2017). Trading and Transaction – Market and Finance Dynamics. In: Folmer, B. (ed.), The Craft and Science of Coffee, Academic Press, ch. 9, pp. 205–224.
  10. BPerez, J.; Kilian, B.; Pratt, L.; Ardila, J. C.; Lamb, H.; Byers, L.; Sanders, D. (2017). Economic Sustainability – Price, Cost, and Value. In: Folmer, B. (ed.), The Craft and Science of Coffee, Academic Press, ch. 6, pp. 133–160.
  11. BFairtrade International, Standards Unit and Global Product Management (2022). Guidance document on Price Risk Management of the Fairtrade Coffee Standard. Fairtrade International, Bonn.
  12. AInternational Organization for Standardization (ISO/TC 34/SC 15) (2025). ISO 9116:2025 Green coffee — Guidance on methods of specification (edition 3). ISO.
  13. CJDE Peet's (2025). KDE Green Coffee Sourcing Terms. JDE Peet's (roaster), Amsterdam.
  14. CSucafina Terms and conditions (EMEA). Sucafina (green coffee merchant).

Tier A · authoritative · B · trade and expert · C · general. Supporting quotes for every source are in the data version of this entry. If a publisher’s site refuses access, try the doi link or “other copies”.

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