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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