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.
- 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
-
CIP
Carriage and Insurance Paid To
As CPT, plus the seller insures the goods for the buyer, with all-risks cover under Incoterms® 2020.
- Loading at seller's premises: Seller pays
- Pre-carriage to export terminal: Seller pays
- Export clearance: Seller pays
- Origin terminal and loading on board: Seller pays
- Main carriage: Seller pays
- Destination terminal charges: Depends on the contract of carriage or the named place
- Import clearance, duties and taxes: Buyer pays
- Carriage to named destination: Depends on the contract of carriage or the named place
- Unloading at destination: Buyer pays
-
CFR
Cost and Freight
The seller pays ocean freight to the destination port, but risk passes when the goods are on board in the origin port.
- Loading at seller's premises: Seller pays
- Pre-carriage to export terminal: Seller pays
- Export clearance: Seller pays
- Origin terminal and loading on board: Seller pays
- Main carriage: Seller pays
- Destination terminal charges: Depends on the contract of carriage or the named place
- Import clearance, duties and taxes: Buyer pays
- Carriage to named destination: Buyer pays
- Unloading at destination: Buyer pays
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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