Any mode of transport
CPT
Carriage Paid To
The seller pays carriage to the named destination, but risk passes when the goods are handed to the first carrier.
WHO DOES WHAT — 8 STAGES
SELLER
Contract and pay for carriage to the named place of destination
Deliver the goods to the first carrier
Complete export clearance
BUYER
Bear risk from handover to the first carrier
Complete import clearance and pay duties
Pay unloading costs at destination unless included in the carriage contract
KEY FACTS
Risk, cost and paperwork at a glance.
RISK TRANSFERS
When the goods are handed to the first carrier.
COST TRANSFERS
The seller pays carriage to the named place of destination.
INSURANCE
No obligation for either party.
EXPORT CLEARANCE
Seller
IMPORT CLEARANCE
Buyer
IN PRACTICE
When to use it, and when not to
Under CPT, cost and risk transfer at different points. Buyers often arrange their own insurance because the risk is theirs while the seller controls the carriage.
Educational summary of the Incoterms® 2020 rules, not legal advice. Incoterms® is a trademark of the International Chamber of Commerce; check the official ICC text and take professional advice for contracts.
GUIDE
Incoterms® 2020, explained in full
ALL RULES
The other ten rules
AGREED THE TERMS?