5 Essential Notes about: CPT Incoterms (Carriage Paid To)

Carriage Paid To (CPT Incoterms) means that the seller delivers the goods at agreed place in origin country. The seller is obliged to contract for the carriage of the goods to named destination and pay its costs. it is used in all mode of transports. Costs and Risks of the shipment transfer at different places under this term.

1. Who is responsible for arranging the shipment from named place of delivery to named destination?

– The seller is responsible to contract for the carriage, unless otherwise agreed, “on usual terms” and “by the usual route”. The seller is obliged to pay all of shipment costs. Although the seller fulfills his delivery obligation upon handing over the goods for carriage, He is obliged to pay for the carriage up to the agreed point in the country of destination.

2. What if the parties do not agree on a specific place in named destination under CPT Incoterms?

– If a specific point is not agreed or is not determined, the seller may select the point the point at the named place of destination that best suit its purpose.

3. Who must pay the loading costs at delivery place and unloading costs at named destination?

– Obviously the loading costs at delivery place must be paid by the seller. The seller is not entitled to recover unloading at the named place of destination such costs from the buyer. Unless otherwise is agreed between the parties.

4. When and Where cost and risk of the shipment transfers to the buyer under CPT Incoterms?

– This term has two critical points, because risk passes and costs are transferred at different places. The place of delivery, where the risk passes to the buyer.  The named place of destination to which the seller must contract for the carriage and pay its costs.

5. Which place must be mentioned after Carriage Paid To CPT incoterms in sale contract?

– Use the named place of destination following to carriage Paid To (CPT) term. Be sure to specify the named place of delivery elsewhere in the contract.

To read the full obligation of the seller and the buyer in FOB Incoterms read the book “ICC Guide to Incoterms 2010”

Other useful links:
5 Essential Notes about: Free On Board (FOB) Incoterms
5 Essential Notes about: Free Carrier (FCA) Incoterms
5 Essential Notes about: Ex Works (EXW) Incoterms
Incoterms: Shipping Guide Every Trader Must Know