CPT : Carriage Paid To

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Carriage Paid To (...named port of destination)

In Carriage Paid To, the seller/exporter/manufacturer clears the goods for export, delivers them to the carrier, and is responsible for paying for carriage to the named port of destination. However, once the seller delivers the goods to the carrier, the buyer becomes responsible for all additional costs.

In Incoterms 2000 the seller is also responsible for the costs of unloading, customs clearance, duties, and other costs if such costs are included in the cost of carriage such as in small package courier delivery.

The seller is not responsible for procuring and paying for insurance cover.

The CPT term is valid for any form of transport including multimodal.

The "named port of destination" in CPT and all "C" terms is domestic to the buyer, but is not necessarily the final delivery point.

The Carriage Paid To term is often used in sales where the shipment is by air freight, containerized ocean freight, courier shipments of small parcels, and in "ro-ro" (roll-on, roll-off) shipments of motor vehicles.

A "carrier" can be a shipping line, airline, trucking firm, railway or also an individual or firm who undertakes to procure carriage by any of the above methods of transport including multimodal. Therefore, a person, such as a freight forwarder, can act as a "carrier" under this term.

If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.

*Insurance Note

While neither the buyer nor seller have obligation for providing insurance during the main voyage, both may have "insurable interest" and prudence may dictate purchase of insurance coverage.

Incoterm Category
CPT is a "C" Incoterm where the seller is responsible for contracting and paying for carriage of the goods, but not responsible for additional costs or risk of loss or damage to the goods once they have been shipped. C terms evidence "shipment" (as opposed to "arrival") contracts.

Modes of Transport Covered
All modes of transport including multimodal.

Seller's Responsibilities (summary)

  1. Goods - Provide the goods, commercial invoice or electronic message, and other documentation as required by the sales contract.
  2. Licenses and Customs Formalities - Obtain at own risk and cost any export licenses and authorizations and carry out all export formalities and procedures.
  3. Carriage and Insurance - Contract for and pay all costs of carriage to the agreed point at the named place of destination. No obligation to provide insurance.
  4. Delivery - Deliver the goods to the carrier (or first of multiple carriers) for carriage to the named port of destination within the time period stipulated in the sales contract.
  5. Risk Transfer - Assume all risks of loss or damage to the goods until they have been delivered to the carrier or first of multiple carriers.
  6. Costs - Pay all costs until the goods have been delivered to the carrier plus costs of loading, carriage to the port of destination and normal unloading. Also to pay all costs related to export including duties, taxes and customs formalities. Pay the costs of unloading, customs clearance, duties, and other costs if such costs are included in the cost of carriage.
  7. Notice to the Buyer - Provide sufficient notice to the buyer that the goods have been delivered to the carrier.
  8. Proof of Delivery, Transport Documents - Provide the buyer with a transport document.
  9. Checking, Packing, Marking - Pay all costs associated with checking the quality and quantity of the goods to be in conformity with the sales contract. Provide appropriate packing (unless the goods are traditionally delivered unpackaged) as required for the transport of the goods, to the extent that the buyer has made transport circumstances known to the seller prior to the execution of the sales contract. Provide marking appropriate to the packaging.
  10. Other - Provide the buyer at the buyer's request, risk and expense any and all assistance in securing documentation originating in the country of export or of origin required for import and for transshipment (as necessary). Provide the buyer at the buyer's request information necessary to obtain insurance.

Buyer's Responsibilities (summary)

  1. Payment - Pay for the goods as provided in the sales contract.
  2. Licenses and Customs Formalities - Obtain and pay costs of all import licenses and authorizations and carry out all import formalities.
  3. Carriage and Insurance - No obligation to the seller for either carriage or insurance.
  4. Taking Delivery - Take delivery of the goods from the carrier at the port of destination as provided in the sales contract.
  5. Risk Transfer - Assume all risk of loss or damage from the time the goods have been delivered to the carrier by the seller.
  6. Costs - Pay all additional costs (not covered in the seller's contract of carriage in Seller's #6) for the goods once they have been delivered to the carrier, including unloading, lighterage and wharfage at the port of destination. Pay all costs relating to import formalities including duties, taxes and other charges including transshipment.
  7. Notice to Seller - If, according to the sales contract, the buyer is able to specify a time for shipping and/or specify a port of destination, to give the seller sufficient notice.
  8. Proof of Delivery, Transport Document - Accept the seller's transport document so long as it is in conformity with the sales contract.
  9. Inspection(s) - Pay for the costs of pre-shipment inspection(s) except inspections required by the country of export.
  10. Other - Pay all costs associated with securing documentation from the country of origin or export as required for import. Reimburse seller for costs in providing such documentation or assistance.
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