{"id":869,"date":"2023-05-05T14:59:24","date_gmt":"2023-05-05T12:59:24","guid":{"rendered":"https:\/\/www.cti-fwd.com\/incoterms-cpt-what-does-it-mean\/"},"modified":"2024-07-23T11:47:12","modified_gmt":"2024-07-23T09:47:12","slug":"incoterms-cpt-what-does-it-mean","status":"publish","type":"post","link":"https:\/\/www.cti-fwd.com\/en\/news\/incoterms-cpt-what-does-it-mean\/","title":{"rendered":"Incoterms CPT: what does it mean?"},"content":{"rendered":"

CPT<\/strong>, literally “Carriage Paid To<\/strong>” is one of the clauses in international sales contracts and is intended to specify that the seller<\/strong> is solely responsible for the shipment of the goods<\/strong> and their transportation.<\/p>\n

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By “transportation” the term CPT means the journey from the place of departure to the carrier<\/strong> – a third party contractually obliged to move things or people from one place to another – who is responsible for transporting the goods to the destination agreed with the buyer.<\/p>\n

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Developed by the International Chamber of Commerce<\/strong> (ICC), the organisation that represents an international business, the CPT contract term<\/strong> is part of the ICC Incoterms<\/strong><\/a>, a set of international transport rules<\/strong> that define the obligations<\/strong> and rights of parties<\/strong> to an agreement for the international sale and purchase of goods.<\/p>\n

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CPT yield: who pays?<\/h2>\n

The CPT clause, as we have seen before, indicates the seller’s obligation to pay the cost of transportation<\/strong> to the destination agreed<\/strong> with the buyer. However, once the carrier receives the goods, the risks<\/strong> and liability<\/strong> for any damage or loss automatically pass to the buyer<\/strong>.<\/p>\n

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The clause generally covers the main transport costs but does not include additional expenses<\/strong> such as insurance fees or import taxes. Nevertheless, these additional expenses can be included in advance in the negotiation between buyer and seller.<\/p>\n

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Obligations of seller and buyer<\/h2>\n

Now let’s look in detail at the specific obligations of the seller and the buyer. Over the years, the International Chamber of Commerce has developed rules<\/strong> and guidelines<\/strong> for the international sale and purchase of movable goods, known as the ICC Rules for the International Sale and Purchase of Goods (ICC Incoterms)<\/strong>, which were updated in 2020 and entered into force on 1 January of the same year<\/a>.<\/p>\n

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The Incoterms Rules<\/a>, which contain the CPT Incoterms<\/strong> within them, are used to standardise international trade and to minimise possible disputes between the parties involved. That is why the CPT Incoterms<\/strong> establish unambiguous perimeters as to which obligations<\/a> are the sellers’ and which are the buyers’.<\/p>\n

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Seller’s Obligations: <\/strong><\/p>\n