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 


Posts about international trade cauching

 

Difference between CIP and CPT in shipping terms
Difference between CPT and CIF in shipping terms
How to differentiate CPT and DAP in shipping terms
Difference between FCA terms and CPT terms
Difference between CPT and DDP in shipping terms
Difference between CFR and CPT in shipping terms
Excise and Customs - Click here to read complete notification under Budget 2014
How to get Export Orders?
How to settle dispute in Exports and Imports?
Click here to know India Trade Classification(ITC)
Pre shipment bank finance to suppliers for exports through other agencies
Types of export containers
Measurement of export containers
Export Import Policy of India 2015-20
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation

Definition of E-Commerce under GST
How to identify the steps in enrolment process of a tax payer at the GST common portal. 
TDS under GST, Frequently Asked Questions
Does Interest attract on GST Tax payment delay?
Step by step procedure to login with GST common portal in India
Mechanism of Payment of GST tax in India
Levy of late fee for GST Tax returns filing in India
I pay Service Tax on my services. But I am not sure how do I pay the new GST?
Notice to GST return filing defaulters
When to file Annual Return of GST online?
Procedures to claim reduction in output tax liability of GST in India
Process to issue GST Provisional ID to existing VAT payers in India
Procedures to claim Input Tax Credit under GST in India
When to file first Return of GST tax in India?
GST Tax returns filing – Who, How and When?
Step by step procedures to create username and password in GST common portal
How is time of supply accounted under GST Tax Calculation
Valuation of GST under special cases
Valuation of GST Taxable supply
Step by step procedures to issue GST provisional ID in India
When to pay GST for supply of services?
When to pay GST?
GST on short supplied goods and services by nature
Step by step procedures about e-signing under GST system in India
Goods and services exempted to pay GST
Who has to pay GST?

 How many of you know the meaning of Exports and Imports in India?
 How many types of imports in India. Types of bills of Entry in India

 

How many types of shipping bills in export

 

 How to add Line number in Import General Manifest in Custom in India

 

How to amend AWB number in Import General Manifest (IGM)

 

 How to amend BL number in Import General Manifest (IGM)

 

How to amend consignee (importer) name in Import General Manifest (IGM)

 

 How to amend container number in Import General Manifest IGM

 

 How to amend date of bill of lading in Import General Manifest (IGM) in India

 

 How to amend description of goods in Import General Manifest (IGM)

 

Transferability of Bill of Lading

Transhipment - A redefinition

 

 


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.

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers