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CARRIAGE PAID TO INCOTERM （CPT）
What is Carriage Paid to (CPT)?
CPT is one of the 11 International Commercial Terms (Incoterms) used in trade, where the seller is required to pay for the costs of transporting the goods to an agreed place (named place).
Point of Risk Transfer!
When the goods are delivered to the first carrier, the risk is transferred to the buyer. The seller no longer guarantees that the goods will reach the destination in good condition.
When should you choose CPT?
CPT is more common for larger importers shipping containerized freight because
they have agents at the port or terminal of import who can assist with the clearance and delivery of goods.
Cost allocation. Who pays for what under CPT:
What is the difference between CPT and CIP?
The only difference is insurance!
- • Under CIP, the seller is legally obligated to buy insurance for the goods at 110% of their value.
- • Under CPT, there is no legal obligation to buy insurance but the buyer can purchase it if they wish.