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November 14, 2021 1:25 pm by admin

Carriage paid to – CPT



Incoterms 2020 CPT

 

The CPT 2020 Incoterms stands for “carriage paid to”. It could be used with any mode of transport including multimodal transport.

With the CPT the transfer of risk takes place when the goods have been handed over to the carrier loaded in the vehicle. Furthermore, the seller must bear the cost of transport up to agreed destination.

 

In case where several carriers are involved in the transport of the goods, the transfer of the risks is deemed to happen when the goods have been handed over to the first carrier.

Therefore, any damage or loss that might occur beyond the delivery to the first carrier are under the buyer’s responsibility.

As a result, it is of paramount importance to determine the point of delivery to the carrier (transfer of risk) as well as the location details of the final destination (determine the cost of transport paid by the seller)

Although the seller is liable for the export formalities, he has no obligation regarding the import formalities which must be handled and paid for by the buyer.

 

Overall the seller obligations are:

 

Unless otherwise agreed, the seller must provide the goods with a package appropriate for the transport (A8)

Must provide the goods as well as a commercial invoice in line with the terms of the sales contract (electronic or paper form)(A1)

The seller must deliver the goods to the carrier at a given date or within an agreed period (A2)

As soon as the goods have been delivered or handed over to the carrier, the risks are transferred to the buyer (A3)

The seller must bear the cost of transport up to the agreed destination (A4)

If no specific point has been decided by the parties involved, the seller is entitled to select a point of delivery at the agreed destination based on what suits him best (A4)

Upon request, the seller must assist the buyer for obtaining documentation needed for insuring the goods. In such case, the ensuing costs must be paid for by the buyer (A5)

The seller is liable for transport costs up to the agreed destination and within the agreed period where the shipment must take place. Furthermore, the seller must provide transport documentation which allow the buyer to sell the goods and transfer its ownership to subsequent buyer while goods are in transit. When transport documentation is issued in negotiable form, a full set of originals must provided to the buyer (A6)

The seller must handle export formalities (ex: pre-shipment inspection, Licence, export taxes and duties, etc.. ) and is liable for the ensuing costs. (A7)

In addition, the seller must provide assistance for obtaining import documentation to the buyer who have to bear the associated costs.(A7)

The seller is only liable for the unloading costs if this was part of the carriage contract (A9) otherwise such costs must be paid for by the buyer.

The seller must give notice to the buyer sufficiently in advance, so that he can organize the reception of the goods. Similarly, the seller has the obligation to inform the buyer when the delivery  to the carrier has been completed, as soon as possible.  (A10)

 

Overall the Buyer obligation are:

 

Must pay for the goods according to the sales contract terms (B1)

Must take the delivery from the carrier at the agreed destination, at the specific point in the destination if such point has been defined. (B2)

If the Buyer fails to take delivery at the agreed date or within the agreed period, he will bear all the risk (damage, loss etc….) (B3).

No Obligation to subscribe to a contract of carriage or insurance (B4, B5).

Must accept the transport document handed over to him providing that it reflects the terms of sales contract.(B6)

The Importer must provide assistance to the seller, for obtaining documentation that might be required for Export Cleareance (security documents, Pre-shipment Inspection etc..) . However in such case, the associated costs must be borne by the seller (B7)

The Importer must bear the cost of Import as defined by the local authorities (duties, security clearance for Import) (B7,B9)

Once the goods have been delivered to the carrier, the Importer is liable for every upcoming costs.(B9)

He might also bear the unloading costs if such costs were not part of the carriage contract subscribed by the Exporter(B9)

 

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