How does CPT inco terms benefiting importers?
Advantages of CPT for Buyer (Importer)
When deeply analyzing the Incoterms 2020, the team of this website separated the advantages and disadvantages to both exporters and importers against each inco term, and trying to enlighten our readers. Here in this post we are bringing out the strengths of buyers when a delivery terms is on CPT basis.
So the upper hands for an exporter when he agrees contract of carriage on CPT basis is as follows:
01. Under CPT terms, the seller pays the cost till the named destination port. So, the importer is free from paying costs till the named place contracted with the exporter in international business. This is an advantage for the importer under CPT terms who buys goods from the seller.
02. Another benefit for importer under CPT terms is that the pre carriage process is on the shoulders of exporter under CPT delivery rules and importer does not want to experience either the cost or risk of pre carriage in international business.
03. The importer does not want to know and experience the rules and regulations of exporting country on export customs clearance, documentation, customs clearance and export taxes if any as the exporter takes care of them under CPT delivery rules in export import trade. This is an advantage for importer under CPT terms of delivery rules.
04. One of the other merits for importer is that under CPT delivery terms in export import business, once the goods arrived at importer’s country at the named place contracted, the further movement of goods to his premises is undertaken by him. So he can monitor the shipping tracking till arrival of goods to him.
05. Under CPT deliver terms, since the seller is responsible to undertake export customs clearance and taxes if any, the buyer (importer in export import trade) is free from facing port congestion, vessel shortage, vessel cancellation etc. in exporter’s country. This is another upper hand for buyer under CPT terms in movement of goods.
06. Another advantage under CPT terms for importer is that under CPT terms of delivery, on carriage is undertaken by the importer thereby, the safety in handling goods and the shipping tracking is easy for importer.
The above information is about the advantages under CPT terms for importers under movement of goods from seller to buyer.
You may comment below your experience and views about this topic, demerits for a buyer under CPT delivery terms: