CPT terms of shipping made simple

 The information provided here is part of Import Export course online


 

CPT terms of shipping - A quick reference

 

Detailed articles about Inco Terms of Delivery under export and import of International business  have been mentioned in  separate category – INCO TERMS – in this web site.  You can click here to read.

 

CPT terms of shipping made simpleCPT terms of delivery means Carriage paid to (place mentioned).  In simple language, CPT means the seller pays amount of carriage (freight) up to the importing destination mentioned in the contract of sale.  For example, if contract is CPT Singapore, the exporter (seller) pays cost of carriage up to Singapore which is in importing country. 

 

If easily explaining, the term CPT means the seller delivers goods to the carrier decided by him by bearing the cost of carriage up to the destination mentioned in the contract. From the location of delivery of goods by the seller at importing country, the buyer bears all risks and additional costs if any occurring after such delivery of goods to the agreed location under CPT terms.

 

Who completes export customs clearance procedures under CPT terms of shipping?

 

 

 

Under CPT terms, the export customs clearance procedures are done by the seller at customs location of exporting country.

Whose liability to cover risks under CPT terms?

 

Once after delivery of goods to the carrier, the liability of risk passes to the buyer under CPT terms.  In simple explanation under CPT terms, once after handing over goods to the carrier, the seller’s responsibility on risks ends and the buyer is responsible to insure goods up to  final destination of shipment. 

 

When does seller’s risks end if two carriers are involved under CPT terms of shipping?

 

If two carriers are involved in a CPT terms of delivery, the seller’s risk on goods ends once after delivery of goods to the first carrier.  The buyer needs to insure goods from the delivery point of first carrier up to the final destination of buyer’s premises.

 

I hope, I have explained CPT terms in easy language to make the term easy to understand.  

Detailed articles about Inco Terms of Delivery under export and import of International business  have been mentioned in  separate category – INCO TERMS – in this web site.  You can click here to read.

 

Do you have different thought on CPT terms?  Write below:

 

 

 


The above information is a part of Online Export Import course 


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Comments


JAMS: Who will be the responsible for customs clearance in the country of buyer?

Sovan: The seller has no obligation to customs clear the cargo at importing country. Hence, buyer is responsible for customs clearance under CPT terms.

Argee.Del: Question - CPT terms - if invoice mentions terms as CPT Bangalore, would it be construed to mean that insurance is also covered? If BE is to be filed on a CPT invoice, can it be filed as CIF?

Arif Ullah: if I need to buy the goods from a local seller in my country and want the seller to be responsible for goods delivery in my warehouse with all associated risks and costs up to the final destination on the seller end. what Incoterm would be the best suit for this scenario

Surendran Kollerath: Hi Argee.Del, Insurance not covered under CPT shipment. BE can not be filed as CIF, if shipment is under CPT

Oksana: What if in contract it says that delivery is made on CPT terms City of Russia and price is FOB airport of Western europe, who should pay transportation costs -seller or buyer?

Debdip Das : I interested to import usb drive from china.The company said me "Our minimum order amount is $200,the shipping charge is always $30,free shipping for all orders over $350.We can offer customs clearance,you don't need to pay any other charges. " I want to know It is true or not.If not then Please advise me about import details like custom duty ,landing charges.

CHANDRASEKHAR PUTCHA: Hello, if in the invoice the installation charges and finnce costs are included do we have to pay customs duty on that

Abdulla Balfakih: (If two carriers are involved in a CPT terms of delivery, the seller’s risk on goods ends once after delivery of goods to the first carrier) in case terms of the deal is CPT , port of delivery is Dubai. Goods shippef from Japan , Nagoya port by 1st carriers then in Singapore vessel changed to the 2nd carrier sailing to Dubai. in this case seller still responsible to deliver goods to Dubai on CPT terms( cost and freight ) .is it ??

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