CPT


CPT Carriage Paid To

Infographic illustrating CPT (Carriage Paid To) Incoterms 2020, showing seller responsibility up to delivery to the carrier with truck, cargo, ship, and airplane icons.


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.

Seller’s Responsibilities under CPT:

  • Prepare, pack, and check the goods.

  • Pay for transportation up to the named destination.

  • Deliver the goods to the first carrier (even if multiple carriers are involved).

  • Handle all export formalities, such as:

    • Obtaining export licenses.

    • Paying export duties.

  • Provide the buyer with the usual transport document, like a freight-paid waybill, if customary.

Risk Transfer Point:

The risk of loss or damage passes to the buyer when the goods are handed over to the first carrier, not when they reach the final destination.

Buyer’s Responsibilities:

  • Arrange and pay for insurance (if desired).

  • Obtain any import licenses and pay import duties/taxes.

  • Reimburse the seller for any documents requested additionally, such as:

    • Certificate of origin

    • Inspection certificates

    • Other custom-specific documents.

Documents typically provided by the seller:

  1. Freight-paid waybill or transport document

  2. Commercial invoice

  3. Other agreed documents required by the buyer (e.g., certificate of origin)

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