Our Articles

Enjoy,comment and share

RSS World Trade Organization — Latest news

  • WTO issues 2020 Annual Report May 28, 2020
    The WTO’s Annual Report, published today (28 May), provides a comprehensive account of the organization’s activities in 2019 and early 2020. The Report opens with a message from Director-General Roberto Azevêdo and a brief overview of the year. This is followed by in-depth accounts of the WTO’s main areas of activity over the past 12 […]
    WTO
  • 2020 WTO Public Forum cancelled May 28, 2020
    After careful consideration of COVID-19 related uncertainties and health concerns, the WTO has decided to cancel this year’s WTO Public Forum, scheduled for 29 September to 2 October. This decision responds to the complexities around planning to host thousands of people from around the world for a public event under the WTO roof, as well […]
    WTO
  • DDG Wolff: This is the time to consider the future of the multilateral trading system May 27, 2020
    The outbreak of the COVID-19 pandemic has heightened the urgent need to examine the underlying principles and values of the WTO and whether the organization needs change, Deputy Director-General Alan Wolff said on 27 May. Speaking at a webinar hosted by the Korean International Trade Association, DDG Wolff called for immediate action to control the […]
    WTO
  • Members discuss impact of COVID-19 on developing economies’ participation in world trade May 26, 2020
    On 26 May, WTO members assessed the impact of the COVID-19 pandemic on the trading capacity of developing countries in a virtual meeting of the Committee on Trade and Development. The new chair, Afghanistan’s WTO Ambassador, Mohammad Qurban Haqjo, said: “Trade must form part of the solution in assisting and supporting recovery in developing countries.”
    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.