Holivet Africa Ltd

29/03/2026

In international trade, the difference between a smooth shipment and a costly headache often comes down to one thing: the agreed Incoterm. On paper, they look like simple three-letter codes. In reality, they define who pays, who controls, and who carries the risk at every stage of the journey. To make this real, let’s walk through a shipment’s journey under two commonly used terms CIF and DAP and see how responsibilities shift along the way. This side-by-side story will help you understand not just definitions, but how decisions play out in the real world.
CIF vs DAP Incoterm: What’s the Core Difference?
Under CIF (Cost, Insurance, and Freight), the seller arranges and pays for transportation to the destination port, including basic insurance. However, risk transfers to the buyer once the goods are loaded onto the vessel.

Under DAP (Delivered at Place), the seller takes on much more responsibility—covering transport all the way to the buyer’s named destination. Risk transfers only when the goods are ready for unloading at that final location. Simply put, CIF splits cost and risk at different points, while DAP keeps both largely with the seller until the very end.

Scenario Setup: Export from Shanghai to Hamburg
Let’s imagine a shipment of industrial machinery moving from Shanghai, China to Hamburg, Germany.

Seller: Manufacturer in Shanghai
Buyer: Importer in Hamburg
Mode: Ocean freight + inland delivery
We’ll follow the same shipment twice, once under CIF and once under DAP.

Stage 1: Pickup and Export Handling (Origin Logistics)
Under CIF
The seller arranges pickup from their factory, handles export packaging, and completes export customs clearance. They also book the ocean freight.

Under DAP
Exactly the same so far. The seller is still responsible for origin logistics, including export clearance and documentation. At this stage, there’s no visible difference. Both terms place responsibility on the seller early in the journey.

Stage 2: Loading and Risk Transfer (Freight Risk Transfer Point)
Here’s where things begin to diverge.

Under CIF
Once the goods are loaded onto the vessel in Shanghai, the risk transfers to the buyer. Even though the seller is still paying for freight and insurance, the shipment is now technically at the buyer’s risk.

Example: If a storm damages the cargo mid-voyage, the buyer must claim insurance—even though they didn’t arrange the shipment.

Under DAP
The seller retains full risk. If anything happens during transit, it’s the seller’s problem to resolve. This is the first critical distinction in the CIF vs DAP Incoterm comparison: cost responsibility does not equal risk ownership.

Stage 3: Main Carriage (Ocean Freight Responsibilities)
Shipping Costs and Freight Responsibility
Under CIF
The seller pays for ocean freight to Hamburg and provides minimum insurance coverage. However, the buyer has no control over carrier selection or routing. This can lead to issues such as:

Longer transit times due to cheaper routes
Limited visibility or communication
Insurance that may not fully cover the cargo value
Under DAP
The seller also pays for ocean freight but with a key difference: they remain responsible for the shipment’s condition throughout the journey. This often pushes sellers to:

Choose more reliable carriers
Ensure better cargo handling
Maintain tighter coordination with freight forwarders
Stage 4: Arrival at Destination Port (Import Customs Clearance)
Customs Clearance and Import Duties
Under CIF
Once the cargo arrives in Hamburg, the buyer takes over. They are responsible for:

Import customs clearance
Payment of duties and taxes
Port handling charges
If the buyer isn’t prepared, delays can pile up quickly. Example: If documents are missing or incorrect, the cargo may sit at port, incurring demurrage and storage charges—at the buyer’s expense.

Under DAP
The seller arranges delivery to the final destination, but the buyer still handles import customs clearance and duties. However, since the seller is responsible for delivery timelines, they often assist in coordinating documentation to avoid delays.

Stage 5: Final Delivery (Last-Mile Logistics)
Last-Mile Delivery and Control
Under CIF
The seller’s responsibility ends at the port of destination. From there, the buyer must arrange inland transport to their warehouse. This means:

Hiring a local trucking company
Managing delivery schedules
Handling potential delays or damages
Under DAP
The seller arranges transport all the way to the buyer’s premises. The goods are delivered to the specified location, ready for unloading. Only at this point does the risk transfer to the buyer. This makes DAP especially attractive for buyers who want a hands-off experience.

Risk, Cost, and Control: A Practical Comparison
Let’s simplify the CIF vs DAP Incoterm difference using a real-world lens:

Risk: Transfers early (CIF) vs late (DAP)
Cost coverage: Split (CIF) vs largely seller-managed (DAP)
Control: Buyer takes over mid-journey (CIF) vs seller manages end-to-end (DAP)
Imagine you’re a first-time importer.

Under CIF, you might feel comfortable because the seller is paying for shipping. But once the goods hit the water, you carry the risk—and later, the operational burden at destination.

Under DAP, you pay a bit more upfront, but the seller handles the heavy lifting until the goods reach your door.

Choosing the Right Incoterm for Your Shipment
CIF vs DAP Incoterm in Practice
So which one should you choose?

Choose CIF if
You have strong logistics capabilities at destination
You want control over import clearance and inland transport
You’re comfortable managing risk after loading
Choose DAP if
You prefer a simplified, door-delivery model
You lack local logistics infrastructure
You want the seller to manage transit risks
For example, a large importer with an established logistics team in Hamburg might prefer CIF to control costs and operations. Meanwhile, a smaller business importing machinery for the first time might opt for DAP to avoid complexity

27/10/2025

03/09/2025

Administration

THE EAST AFRICAN COMMUNITY CUSTOMS
MANAGEMENT REGULATIONS, 2010

IN EXERCISE of powers conferred by section 251 of the East
African Community Customs Management Act, 2004, the
Council of Ministers makes these Regulations this 1st day of
December,. 2010.
PART 1
PRELIMINARY PROVISIONS
1. (1) These Regulations may be cited as the East African
Community Customs Management Regulations, 2010.
(2) These Regulations shall commence on a date to be
appointed by the Council and different dates may be appointed
for different parts of the Regulations.
2. In these Regulations, unless the context otherwise
requires—
“Act” means the East African Community Customs
Management Act, 2004;
“duty drawback co-efficient” means the amount of duty
refundable per unit of goods exported;
“internal container depot” means any place appointed
and licensed by the Commissioner for the deposit
of goods subject to customs control.
PART II
ADMINISTRATION
3. (1) The Commissioner may authorise a proper officer to
exercise any of the powers conferred by the Act upon the
Commissioner.
(2) A function performed by a proper officer under
these Regulations shall be deemed to have been performed

4. (1) A proper officer may, on application, permit the
attendance of officers on Sundays and public holidays or before
or after the hours of general attendance on any working day.
(2) The Commissioner may, by notice posted in a
conspicuous place at any port or place, vary the hours of general
attendance of officers at such port or place in order to meet the
convenience of the public or the exigencies of the Customs.
5. (1) An application for services of an officer outside the
hours of general attendance shall, except in the case of a person
arriving in, or departing from a Partner State overland or by
inland waters, be made in writing to a proper officer using Form
C.1, which shall be submitted to him or her at least twenty-four
hours before the services are required, unless the proper officer,
in any special circumstances, otherwise allows.
(2) Every application shall set out the nature and
probable duration of the services required, and shall contain an
undertaking to pay all overtime fees which may be incurred,
unless a proper officer requires the applicant to deposit with him
or her a sum sufficient to cover the fees.
6. (1) The fees payable at a Customs land frontier station
by the person applying for the services of an officer outside the
hours of general attendance, for the purpose of dealing with any
private vehicle carrying passengers and their personal baggage
only, shall not exceed twenty dollars per vehicle.
(2) The fees payable for the services of an officer
outside the hours of general attendance at any port, place or
premises at which Customs business is not normally carried on
for any purpose other than that described in sub-regulation (1)
shall not exceed twenty dollars per hour.
(3) The following conditions shall apply to the fees
payable under sub regulation (2)—
(a) the time calculated for the fees to be charged, shall
be calculated to the last completed half hour;

16/07/2025

Precautions for SOC (shipper owned container) container shipment:

1. For SOC container shipment, photos of the container are required (including the door, nameplate, and the main body).
2. It is necessary to check whether the container has damages, bulges, or other issues.
3. It is essential to confirm the container return location. If there are multiple return locations abroad, ask the supplier for the return location of the most recent shipment. If the return location is too far, the supplier will compensate for the corresponding transportation fees, but this will be very troublesome.
4. Confirm the type of the SOC container. It should be a normal 40HQ container, not a 40HQDD (double-door) or a 40HQ re**er.

16/07/2025

Driving unregistered vehicle from the port of entry to your final destination, know the following.You may pay for this advice but am giving it for free.

1. Car dealers are allocated The Showroom green (KD) Number Plate to use temporarily. This
KD is specifically meant for transferring the car from a Showroom to the next, or to a customer or for a test drive.

2. Every KD Plate has an insurance cover and should be Insured separately. Most of them are third party insured. So be careful when hiring it for your car movement from the origin/port to your destination because in the event of an accident, you are not covered.

3. Any driver must have a valid driving license and endorsed with a class of the vehicle driven. A driver licenced to drive small cars should not be allowed to driver classes beyond his endorsement.

4. Each KD number has a designated route depending on the entries of the dealer. Don't accept these plates from brokers at the gates of cfs. This would cost you alot because entries might not correspond with your vehicle movement. For example, you come from msambweni and live in Nairobi but since you have imported a vehicle, you decide to go home before heading to Nairobi. Unfortunately, you get an accident at home. Nobody will cover the cost.

5. Its advisable to counter check the insurance of the plate before putting on the vehicle. Some may not even have insurance. Be very careful. Don't take someone's word of mouth.

6. The person who is driving this car must not carry passengers. These vehicles don't have insurance cover for passengers. Anyone boarding these vehicles is doing so at their own risk.

CN

20/06/2025

Hi

20/06/2025

JKIA Cargo terminal

20/02/2025

ELEVATOR PITCH

YOU KNOW HOW COMPLICATED IT BECOMES WHEN SOMEONE SENDS GOODS FROM ABROAD FOR HIS PERSONAL OR FAMILY? WELL, WE ASSIST TO CLEAR THEM FROM THE PORT WITHOUT ISSUES. ACTUALLY LAST WEEK WE HELPED SOMEONE WHO DIDN’T HAVE EVEN A KENYAN PIN TO GET HIS GOODS OUT WITHOUT STORAGE CHARGES.

25/12/2024

+1

29/10/2024

Early morning deliveries.

07/10/2024

The East African Business
Cargo airlines leave Kenya fresh produce exporters stranded
Sunday October 06 2024

Several international airlines have withdrawn their cargo services from Nairobi's Jomo Kenyatta International Airport in search of "better pay" in other markets. File| Nation Media Group

Kenya’s fresh produce sub-sector is staring at massive losses at the onset of the peak season, as several international airlines withdraw their freight services from the Jomo Kenyatta International Airport (JKIA) for “better pay” in other markets ahead of the festive season and lack of a binding agreement for the airlines to serve the local market.

The situation inflicting the horticultural sector has been compounded by the Red Sea crisis, which has increased the cost of transit through the Egyptian waterway, Suez Canal, by $200 per refrigerated (reef) container, and prolonged the transit period by 10 days as vessels take the longer route through the Cape of Good Hope in South Africa to Europe.

The horticultural sector generated KSh157 billion ($1.21 billion) in export earnings in 2023, according to data from the Agriculture and Food Authority (AFA).

The Shippers Council of Eastern Africa (SCEA), a private sector membership organisation representing the interests of importers and exporters, confirmed the logistics crisis at the airport affecting fresh produce destined for export to the European market and urged the government to act swiftly to alleviate the crisis by allowing temporary permits for freighters to fill the gap, currently estimated at 800 tonnes, and to consider wet leasing of cargo airlines.

Wet leasing is paying to use an aircraft with crew, fuel and insurance for a short period. “The situation at the JKIA is worse this week. We are over 800 tonnes less than the same week last year,” said Agayo Ogambi, SCEA CEO. “This results in delayed delivery, loss of markets, and affects the shelf life of the products, resulting in huge losses. We are asking the government to consider temporary approval of freighters to fill the gap.”

The EastAfrican has reliably learnt that key international cargo airlines such as Qatar, Turkish and Magma Aviation, have removed some of their freighters, with CargoluxAirlines International SA, a flag carrier cargo airline of Luxembourg, expected to join the fray on October 4.

Sources said Qatar Airways removed two freighters carrying flowers from Nairobi to Liege, Belgium, resulting in a 200-tonne drop in capacity, while Turkish Airlines removed one freighter per week from Nairobi to Maastricht, Netherlands, affecting flowers and leading to a further 100 tonnes decline.

The reduced capacity has translated into increased airfreight costs from $2.3 per kilogramme to between $3.57 and $3.6 per kilogramme.

Higher demand
“Yes, it is true Qatar and Turkish Airlines have withdrawn freight services on some routes. I think it has to do with pricing. You know, we are entering the peak season, and some alternative routes could be paying better than us (Kenya),” a clearing agent at the airport who requested not to be named said.

The management of Qatar and Turkish cargo airlines did not respond to emailed questions at the time of going to the press.

“Thank you for contacting Qatar Airways Cargo. We have received your enquiry and one of our representatives will contact you shortly,” said Qatar Airways Cargo.

Calls and text messages to the cellphone of Kenya’s Principal Secretary for Agriculture Paul Rono went unanswered. According to the SCEA, foreign cargo airlines have been enticed by relatively “better” pay for their services in other global jurisdictions because of the increasing activities ahead of the festive season.

For instance, from Asia to the US, these cargo airlines are getting up to $8 per kilogramme, compared with Kenya, where they are getting $2.5-$2.8 per kilogramme “There is higher demand and higher pay for their services in other global markets.

"The other reason is that they don’t have a binding agreement to serve Kenya. Most of them are bilateral agreements, which do not bind them to operate here, and so they can leave at their own will. This is a contractual challenge,” Mr Ogambi said.

Global share of exports
The logistics crisis facing the fresh produce earmarked for airlifting to the European market through the JKIA has increased the cargo rollovers by 200-300 tonnes, according to the SCEA.

Kenya's economy is firmly rooted in agriculture, with horticulture becoming one of the country's main sources of foreign income by exporting f­lowers to more than 60 countries.

Kenya’s global share of exports of fruits and vegetables stood at 12 per cent and six percent in 2023 respectively.

Read: Kenya avocado exports to China hit $64m in three months to May

Kenya’s share of global fruit and vegetable production was 0.5 per cent and 0.3 percent respectively in the same period according to data from AFA.

The major fruits produced in 2023 were bananas (34 per cent), avocado (23 percent), mangoes (16 per cent), oranges (5.8 per cent), and watermelon (five percent). Others were pawpaw, pineapple and lime.

The top fruit exports in 2023 were avocado, pineapples, mangoes, apples, oranges and raspberries.

Vegetables produced in the period were tomatoes, cabbages, kales, garden peas, bulb, onions, spinach and French beans.

­

04/10/2024

US port update

The strike was the first by the ILA since 1977, and it impacted port operations at 36 different ports, including the 10 busiest ports in North America.