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  • WTO launches new edition of Handbook on the TRIPS Agreement November 27, 2020
    The WTO launched today (27 November) the second edition of “A Handbook on the WTO TRIPS Agreement”, which describes the historical and legal background to the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS), its role in the organization and its institutional framework. The publication coincides with the 25th anniversary of the entry into […]
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  • WTO to host first Trade for Peace Week November 25, 2020
    The WTO will host the first edition of the Trade for Peace Week from 30 November to 4 December 2020. Ten virtual panel sessions will explore the nexus between trade and peace, with the focus on fragile and conflict-affected countries in accession which want to use trade and economic integration to promote sustainable and inclusive […]
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  • DDG Agah at ITC Joint Advisory Group: Open trade and economic inclusion key to post-COVID recovery November 25, 2020
    In remarks on 25 November to the 54th session of the Joint Advisory Group that oversees the work of the International Trade Centre (ITC), WTO Deputy Director-General Yonov Frederick Agah argued that open international trade, together with efforts to ensure the benefits from economic activity are widely shared, would be necessary to repair the social […]
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  • DDG Wolff: “WTO reform is both necessary and feasible” November 24, 2020
    Speaking at the “1+6” roundtable meeting presided by Chinese Premier Li Keqiang on 24 November, Deputy Director-General Alan Wolff urged WTO members to begin serious engagement on improving the WTO, arguing there was enough common ground to reach major new agreements. He also called on China to participate actively and contribute positively to planning far-reaching […]
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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.