GROW Liberia

www.growliberia.com
Newport Street by UN Drive, Mamba Point, Monrovia
info@growliberia.com

EXPORTER
GUIDE
Exporting Premium Cocoa Beans to
Europe and the USA
Table Of Contents

3 Introduction

4 Exporting cocoa beans to Europe and to the USA

5 Finding Your Potential Buyers

7 Approaching Buyers

9 Samples and Buyers’ Visits

11 Product Specifications and Prices

13 Prices

15 Contracts

17 Logistics and Transportation

19 Customs Procedures: Liberia

21 Customs Procedures: Europe and USA

22 Checklist

23 References and other resources

2 GROW LIBERIA: Exporter Guide

Introduction
The guide Exporting Premium Cocoa Beans
to Europe and the USA was compiled to
support small and medium-sized exporters
and future exporters in Liberia to better
understand the market and export their cocoa
beans successfully.
The guide is a step-by-step document
containing explanations, checklists and
resources that exporters can use in their
daily business activities. It mainly targets the
European and USA markets, but its general
steps can be used in understanding and
accessing other international markets as well.
Please, check other resources available
online on how to export your cocoa beans:
• Centre for the Promotion of Imports from
Developing Countries (CBI): Link
• Cocoa Merchants: link
• Federation of Cocoa Commerce (FCC):
link
• International Standards for the
Assessment of Cocoa Quality and
Flavour (ISCQF): link
About
GROW Liberia
GROW Liberia is a market systems
development program that collaborates with
businesses, investors, associations and
government agencies to accelerate systemic
solutions that transform high-potential industries
and drive inclusive growth in Liberia. GROW
currently invests in the cocoa, vegetables, and
rubber sectors. The program is funded by Sida
and implemented by Adam Smith International.
Learn more at www.growliberia.com
GROW Liberia
www.growliberia.com
Newport Street by UN Drive, Mamba Point,
Monrovia
info@growliberia.com
Publication date: March 2021
Authors: Gustavo Ferro, Maurits de Koning,
Simone Mattar Altoé Peppelenbos
3
 Exporting cocoa beans to
Europe and to the USA
in eight steps

01. Find Your Potential Buyers

02. Approaching Buyers

03. Samples And Buyers’ Visit

04. Product Specifications And Prices

05. Contracts

06. Logistics And Transportation

07. Packaging And Labelling

08. Customs Procedure And Control

4 GROW LIBERIA: Exporter Guide

01.
Finding Your
Potential Buyers

5
International Trade Fairs
Trade fairs provide a comprehensive overview of
the cocoa and chocolate industries. They bring
together thousands of buyers and sellers in one place,
enabling you to see large numbers of products, to
present your products, and to ask questions to buyers.
If you are not able to attend these trade fairs, they
still offer online tools that make it possible for you to
look through exhibitors’ lists, conferences and product
assortments. Their websites are useful tools to search
for buyers:
Cocoa and chocolate
• Chocoa (Netherlands): link
• Salon du Chocolat (France): link
• Chocolate Expo (USA): link
Organic products
• Biofach (Germany): link
• Natural Products Expo (USA): link
Confectionery and other food products
• ISM (Germany): link
• Anuga (Germany): link
• SIAL (France): link
Cosmetics
• In-Cosmetics Global: link
• Vivaness (Germany): link
6 GROW LIBERIA: Exporter Guide
Sector Associations
Look for importers of cocoa beans, manufacturers
and chocolate makers by using Internet databases of
sector associations. They all have member pages
where you can browse through the main companies in
that region or country. The main associations are:
Cocoa importers and processors
• Federation of Cocoa Commerce (FCC)
(International): link
• EUROCOCOA (Europe): link
• Cocoa Merchants’ Association of America
(USA): link
Chocolate manufacturers and craft chocolate
makers
• Chocosuisse (Switzerland): link
• Infozentrum Schokolade (Germany): link
• Syndicat du Chocolat (France): link
• AIDEPI (Italy): link
• Royal Belgian Association of the Chocolate,
Pralines, Biscuit and Confectionary (Belgium):
link
• National Confectioners Association NCA (USA): link
• Fine Chocolate Industry Association (Interna-
tional): link
Cosmetics
• Cosmetics Europe: link
• American Cosmetic Manufacturers Association:
link
02.
Approaching
Buyers

7
Filtering your search and
selecting buyers
Once you have created a database of potential buyers,
you will need to assess whether these buyers are a real
match for you. Consider the following aspects when
exploring and assessing their profiles
:
Minimum requirements
• Does the company have minimum volume
requirements you can meet?
• Does the company have minimum quality
requirements you can meet?
Presenting your offer
It is important that you present your product offer
and your cooperative/company in a clear and
consistent way. Use the following guidelines to
present your offer when approaching buyers:
• Characteristics of your region – highlight
vegetation, climate and social conditions
• Number of producers and the main
characteristics of the producing communities
• Size of the farms
• Pictures of the farm, post-harvest facilities and
producers

Market segment • Average productivity per hectare

• Does the company focus on bulk, certified or
specialty cocoa?
• Who is the company’s end-client?
Main activities
• Is the company an importer, processor or
chocolate manufacturer?
• Does the company import directly from producing
countries?
• Annual production and exportable volume – if
possible, per cocoa variety or quality
• Characteristics of the post-harvest processes –
fermentation and drying
• Organoleptic characteristics of the different co-
coa varieties
• Certifications – if requested, provide an up-to-
date certificate
• Policies related to Sustainability or Corporate
Social Responsibility

Geographic focus
• Is the company focused on only one region
(example: Latin America)?
• Does the company source cocoa from West
Africa?

Not all these questions will be directly answered

on the company’s website. Contact them via email,
followed by a call to ask. Search for the main buyer
or purchasing department. Be proactive and
create a tailored strategy to approach each potential
buyer.

8 GROW LIBERIA: Exporter Guide

03.
Samples and
Buyers’ Visits

9
Sending samples to
interested buyers
• Offer to send interested buyers a sample of your
product. This sample should represent the overall
quality of your cocoa.
• Make sure to understand the buyer’s
requirements, and agree on what kind of
samples to send, including packaging, labeling,
quantity and documentation. The sample will be
shipped by air (for example, using DHL).
• Most buyers will request a sample of 1 kilogram.
With this amount, interested buyers will have
enough beans to conduct tests. Also, keep 1
kilogram of the same sample for yourself and
document which sample you sent to which
potential buyer.
• It is quite common to send the samples in a simple
plastic bag or zip lock (see pictures below).
Credit: Maurits de Koning - Buro del Rey
10
Prepare well for buyers’
visits
Buyers of premium cocoa prefer to visit farmers,
communities and cocoa plantations. They are
interested in investing in long-term social relationships,
discussing drying and fermentation techniques and
finding interesting sourcing and unique cocoas. When
buyers want to visit, pay attention to the following:
• Before accepting a request from, or inviting a
buyer to visit, assess your production volumes and
quality, and see when is the best time for a visit.
Buyers are most likely to be interested in visiting
your farm during the harvesting season, as this
gives them the opportunity to test your cocoa and
discuss the post-harvest.
• Create an interesting programme which allows the
buyer to see different production areas and to meet
the farmers.
• Be ready to answer questions about production
volumes and to negotiate pricing if you are both
interested in establishing a commercial relationship.
• Tell your story and make them feel special!
Credit: GROW Liberia
GROW LIBERIA: Exporter Guide
04.
Product Specifications
and Prices

11
Product specifications
After establishing a commercial relationship, it is
important that the exact product specifications are clear
both to you and to your buyer:
General characteristics
• Origin + Type, grade and variety of the cocoa
bean
• Agro-climatic context. Example: cocoa is grown in
agro forestry system
• Characteristics of producing communities and
social impact
• Certification(s)
• When the cocoa is harvested
Physical, chemical and organoleptic
characteristics
In order to comply with the specifications, you will
have to carry out an analysis for each cocoa bean
lot. Guidelines: link
External Analysis and Cut Test. Tool needed: guillotine
(cut test: cocoa beans)
• Colour, flavour /odour
• Size / calibre (bean count) in x / 100 grammes
• Cocoa Related Matter (CRM): in % (max.) -
clusters, fragments, pieces of shell
• Foreign matter, in % (maximum)
• Defective beans, in % (maximum) - slaty, flat,
insect-damaged, mouldy,violet
• Fermentation level, in %
Measuring Moisture Content. Tool needed:
moisture meter
• Humidity, in %(maximum)
Chemical analysis
• Fat content, in % - laboratory analysis needed -
check with buyer if required
12
Prices
Pricing is a highly important area to determine when
making an agreement with your buyer in Europe or
the USA. The price of cocoa usually depends on the
prices determined in the stock markets of New York or
London. You can check the daily prices for cocoa
beans on the website of the International Cocoa
Organization (ICCO): link
CERTIFIED cocoa
Organic certification: Prices will normally use the
stock market as a reference, plus a premium of
USD 300 per tonne.
Fairtrade certification: Buyers will pay a
minimum price of USD 2,400 per tonne (or
higher, when stock market prices are higher),
plus a Fairtrade premium of USD 240 per
tonne. An organic differential of USD 300 per
tonne is paid if applicable. This is the reference
price in 2020. For future updates, consult: link
SPECIALTY cocoa
For specialty cocoa, premiums paid can go
as high as USD 500 to USD 5,000 per tonne
above the stock market. Generally, prices are
determined in relation to the uniqueness, scarcity
and origin of the particular cocoa bean.
Specialty cocoa buyers will often pay prices
that are not referenced against the stock market,
but that are based on the value of the product.
GROW LIBERIA: Exporter Guide
05.
Contracts

13
Cocoa trade contracts Payment terms
Once you agree with your buyer on product It is important that the payment terms are clearly
specifications, price and payment terms, incoterms, defined on the contract:​
shipment and destination, a Purchase Order (P.O.) will
be made by the buyer. You will then need to draft a
contract.​
Cash Against Documents (CAD): payment
made via a bank transfer, and the party that
The Federation of Cocoa Commerce (FCC)
owns the documents also owns the goods. It is
provides contract rules for cocoa beans, which you
the most common payment method in the cocoa
can use as guidelines for your own contracts. In
trade.
case of disputes, the FCC offers an arbitration
service to parties who use FCC contracts. Familiarity
with both the legal and the practical aspects of
Letter of Credit (L/C): payment is made from the
export terms and responsibilities is very important to
buyer’s bank to the exporter’s bank when certain
prevent disputes.
documents are presented (example: invoice,
You can download the rules from the FCC website
certificate of origin, and the bill of lading). It is an
once you register: www.cocoafederation.com/
expensive option due to the paperwork, but it is
services/rules
also the most secure for the exporter (if buyer
agrees).

Clear agreements Sometimes, payment is made after arrival of

goods, following quality approval. This is less
common in the cocoa trade, and usually used
• Clear payment terms: for example, if it’s agreed that when the buyer perceives higher risks. It is
the buyer will pre-finance a certain percentage (e.g. important to get part of the payment in advance, as
30%), and the remaining value is paid upon arrival. a sign of commitment.
• Clear delivery terms: always agree on terms of
delivery for your export (Incoterms) with your
Cocoa is traded in US dollars (USD) both in Europe and
buyer before transporting cocoa beans. The
in the USA. Exchange rates fluctuate, which may
delivery term chosen usually depends on your
influence the price you get. Cover this risk by including a
buyer’s preference.
clause on currency risk in your contracts.
• An export insurance agreement: marine insurance
is the most common type of insurance in cocoa
Know your rights: Read about the protection of
trade, providing protection against future losses of
exporters’ rights in the European Union. Directive
cargo carried on ships and boats. Insurance costs
(EU) 2019/633 protects all suppliers selling to an
are usually covered by the buyer.
EU-based buyer: link

14 GROW LIBERIA: Exporter Guide

06.
Logistics and
Transportation

15
Logistics and
Transportation
Cocoa beans are usually transported in a Full
Container Load (FCL). An FCL cargo means that you
do not share the container with anyone else; it does
not necessarily mean that the container must be
fully loaded. Keep in mind, however, that containers
that are not full are more susceptible to damage
during shipment, because bags can move around the
container when they are not solidly packed.
When you do not have sufficient volumes to export
FCL (usually less than 20 cubic meters), you must
try to find economic logistics solutions to lower your
costs. It is recommended to choose consolidation
options, which means that a freight forwarder or
agent will organize multiple Less than Container
Load (LCL) shipments into one fully-loaded
container.​​
If you make use of organized transport and logistics,
realize that large importing companies usually prefer
to make transport arrangements themselves, as it
gives them more control over potential risk factors.​
Always ask your buyers for help and advice. They
normally have their own preferred transporters or a
network that they can recommend to you.
16
Incoterms
Always agree on terms of delivery for your export
(Incoterms) with your buyer before transporting the
cocoa beans. The delivery term chosen usually
depends on your buyer’s preference:
FREE-ON-BOARD (FOB)
In most cases, the use of Free on Board
(FOB) terms is recommended. FOB means
the buyer takes ownership of the cargo at the
point of departure from the exporter’s
shipping dock. If goods are damaged in
transit, the buyer (or their insurance company)
is responsible.
COST INSURANCE FREIGHT (CIF)
Cost, Insurance and Freight (CIF) is not
recommended to cocoa exporters. Under a
CIF delivery term, the exporter bears the
responsibility and costs of any loss of or
damage to the product during transport. This
means that it is the exporter who must
purchase specific documents, such as export
licenses and in-surances, and pay for
inspection costs. Once the freight unloads at
the buyer’s port of destination, the buyer
becomes responsible for the product.
GROW LIBERIA: Exporter Guide
07.
Packaging and
Labelling

17
Packaging
Cocoa beans are mainly shipped in jute bags, with a
net weight between 60 and 65 kilograms each. ​
To optimize their quality, cocoa buyers may request
that the cocoa beans are first packaged into vacuum-
sealed GrainPro bags, and then packed into jute bags.
This is common in the specialty cocoa industry. ​
In some cases, buyers may prefer that the cocoa
beans are loaded directly into the ship’s cargo hold or
in shipping containers containing a flexi-bag. This bulk
packaging method is often adopted by larger
processors.​
Consult your buyer for their specific preferences!​
FLEXI-BAG
JUTE BAG GRAINPRO
18
Labelling
The labelling of the cocoa bean packaging should
give the buyer sufficient information about its
content. The label should be printed on the outside
oft-he bag, using an ink quality that can both
withstand transportation and not contaminate the
product.
Labels should contain the following information:
• Product name: Cocoa beans
• Grade or specification
Example: Organic cocoa beans, Grade A cocoa
beans
• Lot or batch code
• Country of origin
• Net weight
• Name / code of Certification Body and
certification number (applicable to certified
cocoa: organic, FairTrade, Rainforest
Alliance)
• Supplier’s name and address
• Date of packing
The information on the label will be complemented by
the delivery note and other documentation that you
send to the buyer. ​
See the specific documentation in the next section..
GROW LIBERIA: Exporter Guide
08.
Customs Procedures:
Liberia

19
Export documentation
Liberian exporters of cocoa beans must comply with specific documentation requirements to ship the product to
Europe, the USA and other international markets. The following documents are required from Liberian
authorities and are the responsibility of the exporting company:

1. Commercial Invoice. Must include tonnage amount and purchasing price from suppliers (agencies,
traders, cooperatives,etc).

2. Declaration of Tonnage. This enables the exporter to acquire the Export Permit from LACRA by the
following process:
• Formally write the Director General (DG) of LACRA to declare the quality and quantity of cocoa beans
to be shipped
• The Quality Control and Inspectorate Departments of LACRA do quality and quantity verification at the
exporter’s warehouse and produce a report to the Deputy Director General (DDG)
• LACRA DG approved shipment
• Exporter pays US$10* royalty to LACRA based on the tonnage, after which LACRA DG writes to MOA,
LRA/customs, MoCI, and APM Terminals
• Export Permit issued by LACRA and exporter can proceed with shipment

3. Commercial Export Declaration from Ministry of Commerce

• Proceed to MoCI and present both Commercial Invoice and LACRA Export Permit
• MoCI will issue a Certificate of Origin
• Pay US$250.000 for Certificate of Commerce

4. Customs Export Duty Payment

• Proceed to Customs to provide all previously acquired documentation
• Pay 2.5% of Commercial Invoice as Export Duty

5. Complete Phyto-sanitary Process to obtain Certificate of Disinfection

• Hire a service provider of your choosing and complete disinfection exercise– charges may vary per
company
• Obtain Certificate of Disinfection from service provider

* This is the rate for the 2020 season. Check with LACRA for the current royalty amount.
20 GROW LIBERIA: Exporter Guide
6. Acquire Phyto-sanitary Certificate from MoA.
• Present the Phyto-sanitary Certificate
acquired from your service provider to MoA
• Pay US$100.00 fee to obtain MoA Phyto-
sanitary Certificate
7. NAP/AMP Terminals & BIVAC Charges
Consult your buyer regarding how and
when to provide export documentation to
them, in addition to the import
documentation detailed in the following
section.

• Proceed to NPA
• Pay AMP Terminals Handling Charges –
charges differ based on quantity
• Pay 1.14% BIVAC charges

8. LRA Payment – Cooperate Income Tax (CIT)

• Quarterly payment of 2% of all final
purchase receipts owed to LRA as CIT
• Exporter must file CIT even if no shipment
was made in a given quarter – in this case
the exporter would report zero CIT to LRA

9. Certificate of Analysis (CoA)

• Required by buyer prior to export
• Sample taken just before shipment to verify
conformity to specifications provided earlier to
buyer including moisture content, grading,
contamination, etc. Can also be used by
border control in importing country to verify
contaminant levels.

21
 08.
Customs Procedures:
Europe and USA

22 GROW LIBERIA: Exporter Guide

Customs documentation
All goods imported into the European Union (EU)
and into the USA must be declared to the respective
customs authorities. This is the responsibility of the
importer that you will be working with.
• Shipping bill number and date
• Name and address of both the shipper and the
receiver (buyer)
• Type and quantity of the goods being carried

Your responsibility as an exporter is to help your
buyer comply with the customs procedures. Make
sure to also send a delivery note, containing:
• Date and Reference (Purchase Order - P.O. number)
• Incoterms
• Pick-up address
• Product description
• Quantity – weight, in kilograms
Next to the B/L, a Packing List (P/L) should contain:
• Date
• Shipper and exporter contact information
• Consignee (buyer) contact information
• The origin address of cargo
• The destination address of cargo
• Total number of packages within this shipment
• A detailed description of each package
• The volume and weight of each package

It is also important that you submit an official Submitting a Certificate of Origin is also indispens-able!
invoice for customs declaration. The invoice should It contains information about the product, its
include the following information:​ destination and the country of export.

• Date
Make sure to send the mentioned documents by
• Reference to order (Purchase Order - P.O. number)
email to your buyer (soft copy) and together with the
• Contact details of buyer and supplier
shipment (hard copy).
• Invoice number
• Payment conditions Consult your buyer for any other required
documents!
• Delivery conditions
• Country of origin

You will also be required to send a Bill of Lading

(B/L) with the shipment. This document represents
the contract between the owner of the goods
(producer organization) referred to as shipper, and
the carrier of the goods. It is a receipt for the freight
services, containing:

Exporting Premium Cocoa Beans to Europe and the USA

23
Upon arrival, the cocoa shipment goes through food safety clearance, and can be rejected for several
reasons by customs authorities: pesticide residues, insect and mold infestation, etc. The shipment may be
subjected to sampling and control through laboratory testing to check for compliance with legislative
requirements. Customs authorities in the European Union and in the USA will check for compliance with
regulatory requirements mostly regarding maximum contaminant levels, as outlined below:

USA: Regulatory requirements

Contaminant
and main causes
Pesticide residues
Contamination during production and
harvesting. Cross-contamination
during handling and transport.
EU: Regulatory requirements
For updates: link
Check the database for approved
pesticides and their maximum
limits in cocoa beans:
Search products >> Cocoa beans
For updates: link
(Titles 21 and 40)
Check the USA Code of Federal
Regulations for specific tolerances
and exemptions for pesticide
residues in food.
Search the document with “cacao
bean” and “cocoa bean” for limits
applicable to cocoa beans.

Mycotoxins
Improper drying (high % moisture),
improper storage and transportation
(no ventilation, high temperature).
No defined limits for cocoa beans. But
the shipment will be rejected if
mold infestation is found.
Ochratoxin A is of special concern for
cocoa beans.
No defined limits for cocoa beans. But
the shipment will be reject-ed if
mold infestation is found.
Ochratoxin A is of special concern for
cocoa beans.

Polycyclic Aromatic Maximum levels of PAHs according to
Hydrocarbons (PAHs) Regulation (EU) 2015/1933:
• Benzo(a)pyrene: 5.0 µg/kg fat
Smoke contamination from artificial • Sum of benzo(a)pyrene, benz(a)
driers or surrounding traffic and anthracene,
machinery. benzo(b)fluoranthene and
chrysene: 30.0 µg/kg fat
The USA has no established standards
governing the PAH content of
foodstuffs. It is advisable, however, to
avoid contamination and use the EU
maximum levels as reference.

Heavy metals
Cadmium is of special concern for cocoa
beans, but not a common issue in
West Africa. Main causes: uptake from
the contaminated soil due to volcanic
.
activity, forest fires, weathering of rocks
Maximum cadmium levels (and
other contaminants) are laid out in
Regulation (EC) No 1881/2006. The
maximum levels target cocoa products
and chocolate, not cocoa beans. But
cocoa beans are controlled as well.
California has a specific requirement
regarding cadmium con-tamination
in cocoa products and chocolate
through Proposition 65. Buyers in
other states will also measure and
control cadmium levels in cocoa
beans. link

24 GROW LIBERIA: Exporter Guide

Checklist

1. Find a suitable buyer

2. Compile and present your offer to the buyer
3. Send samples upon request
4. Prepare for buyer’s visit
5. Agree with buyer on:
- Product specifications
- Price
- Payment terms
- Delivery terms
- Incoterms
- Export insurance
- Shipping and destination
6. Accept Purchase Order from buyer
7. Draft a contract with clear agreements
8. Consult your buyer for specific preferences in packaging
9. Label your product with sufficient information
10. Make sure the product meets legal requirements in Europe
and/or the USA
11. Arrange export documentation in Liberia
12. Send the buyer a copy of the following documents (by email
and with shipment)
- A delivery note
- An official invoice
- Bill of Lading (B/L)
- A Certificate of Origin
13. Consult your buyer for any other required documents.

25
 References and
other resources

26 GROW LIBERIA: Exporter Guide

Regulation European
Union
CBI Market Requirements in Europe: link Industry Standards
European Commission - Cadmium: link
European Commission - Contaminants: link and Guidelines
European Commission - Food Safety: link
CBI - Exporting Cocoa and Cocoa prod-ucts
European Commission - Pesticides Database: link
to Europe: link
European Food Safety Authority: link Cocoa Merchants: link
Federation of Cocoa Commerce (FCC): link
European Cocoa Association,CAOBISCO
and FCC - Cocoa Beans: link
The Unfair Trading Practices Directive:a
Regulation United States transposition and implementation guide: link
International Trade Centre – A Guide to
Agency for Toxic Substances and Disease Registry: Trade Practices: link
link International Standards for the Assessment
Electronic Code of Federal Regulations-Tolerances of Cocoa Quality and Flavour: link
and Exemptions for Pesticide Chemical Residuesin
Food: link
ScienceDirect: link
State of California - Proposition 65 - Cadmium: link
U.S. Food and Drug Administration: link

27
GROW Liberia
www.growliberia.com
Newport Street by UN Drive, Mamba Point, Monrovia
info@growliberia.com

Publication date: March 2021

28 GROW LIBERIA: Exporter Guide