CPT

CPT Carriage Paid To

This Inco term CPT -Carriage Paid To- can be compared to the CFR term used for carriage by sea transport. The price quoted includes cost of goods and freight charges. The seller has to prepare the goods, pack them, pay for checking operations and take them for transportation to the carrier. If there are more than one carrier, the seller's obligation is fulfilled when he delivers goods to the first carrier. The risk for loss of or damage to the goods passes to the buyer when they are delivered to the first carrier. The formalities for export, like obtaining license, payment of export duty, has to be borne by the seller when using CPT.. If customary, the seller should provide the buyer with the usual transport document.

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Incoterms 2010 is the eighth revision of Incoterms by the International Chamber of Commerce (ICC).

Incoterms 2010 , – ICC rules for the use of domestic and international trade terms.

Incoterms 2010 were defined by the International Chamber of Commerce (ICC) to provide a set of international rules for the interpretation of the trade terms used in domestic and international trade contracts. Incoterms 2010 is the eighth revision of Incoterms since its introduction in 1936. It explains a set of three-letter trade terms reflecting business to business practice in contract for the sale of goods. The rules basically involved in the task, costs and risks for delivery of goods from sellers to buyers. Incoterms were published first in 1936 and subsequently amended and added to in 1953, 1967, 1976, 1980, 1990, 2000 and 2010. The latest Incoterms 2010 version defined 11 contract terms, providing an up-to date set of rules broadly in line with the current international trade practice.
Scope of Incoterms 2010:
In Incoterms 2010 the number of terms has been reduced from13 to 11. The new two rules that may be used irrespective of the agreed mode of transport DAT, Delivered at Terminal, and DAP, Delivered at Place . Both DAT and DAP rules, delivery occurs at a named destination.
The adoption of Incoterms is optimal. Merchants wishing to use these rules should specify that their contacts will be governed by ‘Incoterms 2010’. Further special provision in the individual contract between the parties will override anything provided in the rules.
The scope of Incoterms is limited to rights and obligations of parties to the contract of sale. It does not relate to other contracts required for international sales, such as contract of carriage, insurance and financing. However, choosing a particular Incoterm has an implication on these contracts. Incoterms deal only with specific terms of contract of sale such as packing, clearance, transportation and delivery of goods. A great number of problems that may arise in such contracts like transfer of ownership and other property rights, breaches of contract and exemptions from liability in certain cases are not covered by Incoterms.

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Incoterms

Incoterms i.e.International Commercial Terms

A contract for sale of goods involves mutual agreement between the buyer and the seller on several aspect of the deal. Apart from quality, quantity, price etc. the contract also lays down certain sales terms i.e. Incoterms, that spell out how the underlying goods are to be delivered by the seller to the buyer. In the past interpretation of Incoterms varied across countries leading to misunderstanding and trade disputes. So the Paris based International Chamber of Commerce (ICC) have standardized and incorporated these into a wider classification of defined terminology to facilitate international trade. This classification is known as International Commercial Terms or Incoterms. The basic purpose of Incoterms or sales terms is to determine at what points the seller has fulfilled his obligations so that the goods in a legal sense could be said to have been delivered to the buyer. Thus the Incoterms are so expressed as to indicate clearly:
1.Who will arrange and pay for the carriage of the goods from one point to another?
2. Who will bear the risk if this operation can’t be carried out?
3. Who will bear the risk of loss or damage to the goods incurred in transit?

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