Incoterms® 2020 · C: main carriage paid

CPT Carriage Paid To

The seller pays carriage to the named destination, but risk passes to the buyer when the goods are handed to the first carrier.

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Delivery point: Handed over to the first carrier contracted by the seller
Risk passes: When the goods are handed to the first carrier, in the seller's country
Transport mode: Any mode, including multimodal
Export clearance: Seller
Import clearance: Buyer
Insurance: Not required of either party

Responsibility matrix

Costs and risk, stage by stage

CPT has two critical points. The seller pays the freight to the named place of destination, but the risk passes much earlier, when the goods are handed to the first carrier. If the goods are lost at sea, the buyer bears the loss, even though the seller booked the freight.

Seller pays
Buyer pays
Depends on the contract of carriage or the named place
Risk passes to the buyer

01 Loading at seller's premises Seller pays
02 Pre-carriage to export terminal Seller pays
03 Export clearance Seller pays
04 Origin terminal and loading on board Seller pays
05 Main carriage Seller pays
06 Destination terminal charges Depends on the contract of carriage or the named place
07 Import clearance, duties and taxes Buyer pays
08 Carriage to named destination Depends on the contract of carriage or the named place
09 Unloading at destination Buyer pays

Who does what

The seller must

Contract and pay for carriage to the named place of destination
Deliver the goods to the first carrier and notify the buyer
Clear the goods for export
Provide the usual transport document
Pay unloading costs at destination only if they are in its contract of carriage

The buyer must

Bear the risk from handover to the first carrier
Insure the goods if it wants cover; it is not required
Pay costs at destination not included in the seller's carriage contract
Clear the goods for import and pay duties and taxes
Accept delivery and receive the goods from the carrier

When to use it

Container, air or multimodal shipments where the seller gets better freight rates
You do not want to arrange international freight yourself

Be careful when

You assume the seller's freight booking also protects you against loss: arrange your own insurance
Destination charges are unclear: ask what the freight includes

Tip for buying from Vietnam

Ask the seller for the freight quote and the destination charges separately. Container lines often bill destination terminal charges to the consignee even under CPT.

How to write it

CPT Rotterdam, Netherlands, Incoterms® 2020

Compare with

This guide summarises the Incoterms® 2020 rules in plain language for planning. It is not the official text. Incoterms® and the Incoterms® 2020 logo are trademarks of the International Chamber of Commerce. For the full rules, see ICC publication No. 723E.

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