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Carriage paid to CPT



 

 

Any types of transport mode, including Multimodal Transport

Carriage paid to

 

 

With the Carriage paid to (CPT) Incoterms rule, the Seller has the obligation to pay for the transport up to the agreed destination (named place).

In other words, the Seller is liable for pre-carriage, main carriage and post-carriage costs as well as for terminal handling costs (depending on liner terms).

However, the transfer of risks (loss or damage) to the buyer takes place as soon as the goods are handed over to the carrier. Note that in case of multimodal transport where multiple carriers are involved in the delivery process, the risks are transferred from the Seller to the Buyer as soon as goods are in the custody of the first carrier (unless specified otherwise in the sales contract).

In addition, the Seller is liable for the export custom clearance formalities (export licence for instance).

Any pre-shipment inspection required by law in the Seller’s country, is at the seller’s expense.

Although, there is no formal obligation regarding insurance coverage, upon buyer’s request the seller must provide any information needed for insuring the goods (at the buyer’s expense)

Furthermore, the seller has the obligation to provide the transport documents needed by the buyer for claiming the goods from the carrier in the port of destination, as well as for selling the goods while in transit.

The buyer is liable for post carriage transport costs as well as for import customs clearance formalities (taxes and duties).

Upon request, the Seller must assist the Buyer for obtaining documents that might be required for the importation.

Note that the related costs engendered by such assistance are at the Buyer’s expense.

Usual Documents required:

  • Commercial Invoice
  • Documents as agreed in the contract
  • Transport documents:
  1. Dated in line with agreed period for shipment
  2. Clean Bill of lading with the mention “freight prepaid” and full set of originals when issued in negotiable form

Caution:

Make sure the exact point of delivery is precisely specified (paid by the seller).

When should I use the Carriage paid to  (CPT) Incoterms?

 

The Carriage paid to (CPT) Incoterms rule is recommended when goods are containerised. If the Buyer requests insurance, consider the Cost Insurance and freight (CIP) Incoterms rule instead.