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  • Items proposed for consideration at the next meeting of Dispute Settlement Body February 28, 2020
    The WTO Secretariat has circulated a meeting notice and list of items proposed for the next meeting, on 28 February 2020, of the Dispute Settlement Body, which consists of all WTO members and oversees legal disputes among them. The meeting notice is circulated in the form of a document officially called an “airgram”.
    WTO
  • US donates USD 600,000 to further developing countries’ trading capacities February 25, 2020
    The United States contributed USD 600,000 (CHF 590,000) in 2019 to help developing and least-developed countries (LCDs) participate effectively in global trade negotiations. This donation will finance training workshops for officials from WTO member governments to help them deepen their understanding of multilateral trade rules and strengthen their negotiating capacity.
    WTO
  • Lithuania donates EUR 50,000 to enhance developing countries’ trading capacity February 24, 2020
    Lithuania is contributing EUR 50,000 (CHF 53,000) to help developing and least-developed countries take an active part in global trade negotiations. The contribution was acknowledged by Director-General Roberto Azevêdo at a meeting with Lithuania’s Minister of Foreign Affairs, Linas Linkevičius, on 24 February 2020.
    WTO
  • Third anniversary of Trade Facilitation Agreement sees increasing implementation rate February 22, 2020
    Three years since the Trade Facilitation Agreement (TFA) entered into force on 22 February 2017, WTO members have continued to make steady progress in its implementation. Director-General Roberto Azevêdo, on the occasion of the TFA’s third anniversary, welcomed members’ efforts to ensure traders can reap the full benefits of the Agreement.
    WTO

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.