Incoterms CPT

Incoterms CPT: Carriage Paid To

The Incoterm CPT, or "Carriage Paid To," is an international trade term defined by the International Chamber of Commerce (ICC). It stipulates that the seller is responsible for paying the transportation costs to an agreed location, but does not include insurance for the transport of goods. This means that the seller covers the main transportation costs to the designated destination, but the risk of loss or damage is transferred to the buyer as soon as the goods are handed over to the carrier.

Seller's Responsibilities

• Main transport paid: The seller arranges and pays for the transport to the agreed destination.
• Customs formalities: The seller handles the export customs formalities.

Buyer's Responsibilities

• Transport risk: The buyer assumes the risks as soon as the goods are handed over to the carrier.
• Insurance: It is advisable for the buyer to take out insurance to cover the risks during transport.

Practical Tips

• Clarify the risk transfer point: Ensure that the contract clearly specifies the point where the risk is transferred from the seller to the buyer.
• Check additional costs: Although the main transport is paid by the seller, the buyer should be aware of potential additional costs, such as unloading or handling fees at the destination.

In conclusion, the Incoterm CPT is ideal for transactions where the seller has a better capacity to organize the main transport, but the buyer must be vigilant about risk management and insurance.