CPT
Carriage Paid ToCPT
Incoterms 2020
Any mode
When goods are handed to the first carrier (NOT at destination)
Cost responsibility
Seller pays carriage to named destination. Risk transfers at first carrier.
Seller obligations
- S1Export clearance
- S2Main carriage to destination
- S3Delivery to first carrier
Buyer obligations
- B1Unloading at destination
- B2Import clearance
- B3Import duties and taxes
- B4Insurance (if desired — note: seller does NOT insure under CPT)
When to use CPT
When seller arranges and pays for transport but doesn't want destination risk. Multi-modal shipments where CIF/CFR (sea-only) don't apply.
When NOT to use CPT
When buyer needs insurance included in the price (use CIP instead). When goods are high-value and the risk gap between handover to carrier and arrival concerns the buyer.
Common mistakes with CPT
- !Assuming risk transfers at the destination (it doesn't — risk transfers at first carrier)
- !Buyer not arranging insurance, thinking seller's carriage contract covers loss