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  • Trade Policy Review: Saudi Arabia March 3, 2021
    The third review of the trade policies and practices of Saudi Arabia takes place on 3 and 5 March 2021. The basis for the review is a report by the WTO Secretariat and a report by the Government of Saudi Arabia.
    WTO
  • Civil society call for fishing subsidies deal welcomed by Dr Ngozi and negotiations chair March 1, 2021
    Director-General Ngozi Okonjo-Iweala welcomed civil society’s plea for a successful conclusion to the fisheries subsidies negotiations, illustrated through a fish ice sculpture set up by a coalition of non-governmental organizations (NGOs) in front of the WTO headquarters on 1 March. Dr Okonjo-Iweala visited the sculpture accompanied by the chair of the negotiations, Ambassador Santiago Wills […]
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  • Twelfth Ministerial Conference to take place in Geneva in late 2021 March 1, 2021
    WTO members have agreed that the organization’s Twelfth Ministerial Conference (MC12) will take place in the week of 29 November 2021 in Geneva, Switzerland. The timing and venue were endorsed at a meeting of the WTO’s General Council on 1 March.
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  • DG Okonjo-Iweala: WTO can deliver results if members “accept we can do things differently” March 1, 2021
    Addressing the WTO General Council immediately after taking office on 1 March, Director-General Ngozi Okonjo-Iweala called on members to “do things differently” to achieve reforms necessary to keep the WTO relevant, starting with swift action to curb harmful fisheries subsidies, and to help scale up COVID-19 vaccine production and distribution. The new head of the […]
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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.