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CPT - Carriage Paid To [Updated: Oct 2021]

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Updated on 06 Jul 20212 min read

Person standing next cubes spelling CPT for the Incoterm carriage paid to when shipping with Shipa Freight.

The CPT Incoterm, or “Carriage Paid To”, is a versatile Incoterm that can be used for all modes of transportation and regardless of how many are employed during the shipping process. Under this Incoterm, the seller holds the obligation of bringing the goods to the destination and bears all risks of damage or loss until they have been handed to the carrier.

The seller is also the one who contracts a carrier to ship the goods to the agreed final destination.

The Seller’s Obligations Under the CPT Incoterm

  • Checking, packaging, and marking
  • Handing over the goods to the contracted carrier, as well as the required documents
  • Bear risks of loss and damage to the goods until they have been delivered
  • Contract of carriage
  • Transport-related security requirements
  • Export clearance
  • Assist the buyer in obtaining import clearance documents and information
  • Notify the buyer that the goods have been delivered
  • No obligation to obtain a contract of insurance but at the buyer’s request, must provide information needed to obtain insurance

The Buyer’s Obligations Under the CPT Incoterm

  • Payment for the goods
  • Bear risks of loss and damage to the goods from the time they have been delivered
  • Import clearance
  • Assist the seller in obtaining export clearance documents and information
  • Take the delivery of the goods
  • No obligation to create a contract of carriage
  • No obligation to obtain insurance

What Does the Seller Pay For Under the CPT Incoterm?

  • All costs relating to the goods until they have been delivered
  • Costs of loading the goods
  • Transport-related security costs
  • Any charges for unloading, if under the seller’s account under the contract of carriage
  • Cost of transit, if under the seller’s account under the contract of carriage
  • Costs of providing usual proof
  • Export clearance
  • Duties and taxes

What Does the Buyer Pay For Under the CPT Incoterm?

  • All costs relating to the goods after they have been delivered
  • Charges of transit and unloading
  • Duties and taxes