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.

The buyer, on receipt of intimation from seller, may arrange for insuring the goods. He should arrange for getting import license and pay import duties. If he required the seller to furnish him with certificate of origin or any other document, he should reimburse the seller for the expenses.

Documents to be submitted by the seller are:

(a) Freight paid waybill (b) Invoice and (c) Other documents as required by the buyer.

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