Under CPT the seller pays the transport to the named place of destination, but the risk passes to the buyer when the goods are handed to the first carrier at origin.
CPT Carriage Paid To
Any mode of transport
| Step | CPT |
|---|---|
| Export packing and marking | Seller |
| Loading at the seller's premises | Seller |
| Export customs clearance | Seller |
| Transport to the port or terminal | SellerRisk passes to the buyer here |
| Terminal charges and loading at origin | Seller |
| Main carriage (ocean or air freight) | Seller |
| Cargo insurance | Not required by the rule |
| Unloading at destination terminal | Buyer, unless in the freight contract |
| Transport to the named place | Seller, to the named place |
| Unloading at the named place | Buyer |
| Import clearance, duties and taxes | Buyer |
CPT (Carriage Paid To) means the seller hands the goods to the carrier it has contracted and pays the transport to the named place of destination. Risk passes to the buyer as soon as the goods are handed to the first carrier, at origin. CPT works for any mode of transport, including containers, air, road, rail and multimodal journeys.
Because the delivery point is not in the rule's name, it helps to state it in the contract: "CPT Warehouse 5, Rotterdam, Incoterms® 2020, delivery at Container Terminal Shekou". Otherwise risk passes when the goods reach the first carrier, wherever that is.
| Seller | Buyer |
|---|---|
| Contracts and pays carriage to the named destination | Bears the risk from delivery to the first carrier |
| Clears export and pays export fees | Insures the goods if it wants cover (no obligation either way) |
| Provides the usual transport document and commercial invoice | Pays unloading at destination, unless the carriage contract includes it |
| Notifies the buyer that the goods are delivered | Clears import and pays duties and taxes |
A Chinese electronics maker sells "CPT Nairobi Inland Container Depot, Kenya, Incoterms® 2020". It hands the container to the shipping line at Shenzhen and pays ocean freight and rail to Nairobi. When the line receives the container in Shenzhen, the risk is the buyer's. The buyer insures the journey and clears import in Nairobi.
CPT is the any mode version of CFR: same idea, but risk passes at the first carrier instead of on board a ship, so it fits containers and air freight. CIP is CPT plus an obligation for the seller to buy all risks insurance. Choose CPT when the buyer prefers to insure locally or already has an annual cargo policy.
Whatever the rule, the seller provides a commercial invoice that names the Incoterm and place, and usually a packing list. For quotes before the order, use a proforma invoice with the same rule written on it.
CPT means Carriage Paid To. The seller pays the transport to the named place of destination, but the risk passes to the buyer when the goods are handed to the first carrier.
Neither party is obliged to insure. The buyer bears the risk during the main journey, so the buyer usually insures. Under CIP the seller must insure.
Insurance. CIP adds a seller obligation to buy all risks cargo insurance for the buyer. Otherwise the two rules are the same.
Yes. CPT works for any mode, including sea. For containers it is recommended over CFR.
At the point of delivery to the first carrier, usually in the seller's country, not at the named destination.