CPT, or Carriage Paid To, is an Incoterms rule under which the seller delivers goods to the first carrier and pays carriage to the named destination. Risk transfers at the first-carrier handoff, not when the goods reach destination.
What does the seller handle?
The seller packages the goods, completes export formalities, hands them to the contracted carrier and pays transport to the named place.
What does the buyer handle?
The buyer bears transit risk after delivery to the first carrier, arranges insurance if desired, completes import clearance and pays duties, taxes and charges outside the seller’s carriage contract.
Why must the delivery point be clear?
The risk-transfer point and the paid-to destination are different. The contract should identify both when several carriers or terminals are involved.
How does CPT affect landed cost?
Add the CPT price to insurance, import duty, tax, brokerage, destination handling and onward delivery not included. For example, a $30,000 CPT price plus $250 insurance, $1,500 duty and $750 destination costs gives an illustrative $32,500 landed cost before recoverable tax.
CPT versus CIP
Both can be used for any transport mode and transfer risk at the first carrier. CIP also requires the seller to obtain specified cargo insurance.
