Definition of the CPT Incoterm (Carriage Paid To)

The CPT Incoterm means that the seller is responsible for contracting and paying for the main transport to the agreed destination, but the risk transfers earlier, when the goods are handed over to the first carrier.

Incoterms 2020: CPT remains unchanged and is valid for all types of transport (maritime, air, land, multimodal).

It is widely used in operations involving multiple successive modes of transport, such as intercontinental shipments.

Seller's Obligations (CPT)

• Prepare the goods: inspection, measurements, weight, packaging, and labeling
• Deliver to the carrier at the agreed point and within the set timeframe
• Bear the risk until the goods are handed over to the carrier
• Contract and pay for main transport to the agreed destination
• Complete export clearance and associated costs
• Provide documentation: commercial invoice, proof of delivery, and notify the buyer of any requirements for cargo reception
• Insurance: not mandatory, but must provide necessary information if the buyer wishes to obtain insurance

Buyer's Obligations (CPT)

• Pay for the goods as per the contract
• Bear the risk from the moment the goods are delivered to the first carrier
• Handle import clearance, including duties, VAT, and taxes
• Assist the seller with any required documentation at the destination
• Provide timely notification of the exact place and date of delivery, if agreed
• Insurance: not required, but the buyer may obtain it independently

Transfer of Risk under CPT

• The point of delivery must be clearly specified in the contract, as that is where risk transfers to the buyer
• If multiple carriers are involved, the exact transfer point must be indicated
• The final destination must also be clearly defined, as the transport arranged by the seller ends there

Cost Allocation under CPT

Seller bears:

• All costs up to delivery to the first carrier
• International freight to the destination
• Loading, security, and export clearance
• If agreed, also the costs of unloading at destination

Buyer bears:

• Costs incurred after delivery to the carrier (except those already paid by the seller)
• Unloading and inland transport if not included in the seller’s contract
• Import customs clearance and associated charges
• Any additional charges due to lack of advance delivery notification

Additional Considerations

CPT is useful in multimodal sales or when the buyer wants to reduce logistical involvement, but it's important to note that cost responsibility and risk do not align.

If the buyer prefers that the seller also assumes insurance, they should consider using the CIP Incoterm, which includes mandatory insurance coverage by the seller.