CPT and CIP, a comparative study based on Inco Terms rules 2020
CPT means Carriage Paid To a named place agreed between buyer and seller under contract of carriage. CIP means Carriage and Insurance Paid to a named place where buyer and seller mutually agreed under carriage contract, a part of Sale contract.
Both CPT and CIP delivery rules are used by buyers and sellers to move goods Warehouse to Warehouse, movement under LCL shipments and Break bulk shipments. The CPT and CIP delivery terms are ideally to use for the movement of goods to Dry ports and intermediary locations. CPT modes are used widely used for the shipments by air also.
The major difference between CIP and CPT is that under CIP, the seller is responsible to undertake insurance for movement of goods. But under CPT terms, Inco terms rules is silent about insurance thereby, the seller or buyer may arrange insurance as per their mutual agreement under contract of carriage.
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CIP – Carriage and Insurance Paid
(named Place)
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CPT – Carriage Paid To (named Place)
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Costs
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Risks
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Costs
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Risks
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Warehouse services
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Seller
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Seller
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Warehouse services
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Seller
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Seller
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Marking and labeling
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Seller
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Seller
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Marking and labeling
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Seller
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Seller
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Packing of Goods
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Seller
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Seller
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Packing of Goods
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Seller
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Seller
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Loading at Seller’s premises
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Seller
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Seller
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Loading at Seller’s premises
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Seller
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Seller
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Transportation from Seller’s
premises to Load port
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Seller
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Seller
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Transportation from Seller’s
premises to Load port
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Seller
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Seller
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Unloading at Loading Port
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Seller
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Seller
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Unloading at Loading Port
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Seller
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Seller
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Loading to Vessel/Aircraft
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Seller
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Seller
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Loading to Vessel/Aircraft
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Seller
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Seller
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Export documentation
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Seller
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Seller
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Export documentation
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Seller
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Seller
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Export Customs Clearance
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Seller
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Seller
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Export Customs Clearance
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Seller
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Seller
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Export Taxes and duties (if any)
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Seller
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Seller
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Export Taxes and duties (if any)
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Seller
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Seller
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Handling at Load Port
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Seller
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Seller
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Handling at Load Port
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Seller
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Seller
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Main Carriage
(Ocean Freight/Airfreight)
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Seller
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Buyer
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Main Carriage
(Ocean Freight/Airfreight)
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Seller
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Buyer
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Import Customs Clearance
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Buyer
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Buyer
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Import Customs Clearance
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Buyer
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Buyer
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Import Documentation
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Buyer
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Buyer
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Import Documentation
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Buyer
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Buyer
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Import Taxes and Duties (if any)
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Buyer
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Buyer
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Import Taxes and Duties (if any)
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Buyer
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Buyer
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Transportation from named place to final destination
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Buyer
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Buyer
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Transportation from named place to final destination
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Buyer
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Buyer
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Unloading at named place
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Buyer
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Buyer
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Unloading at port named
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Buyer
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Buyer
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Insurance
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Seller
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NA
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The detailed posts about CPT and CIP are written in this website and you may click below links to read for a clear understanding about CIP and CPT.
CIP Carriage and Insurance Paid To
CPT Carriage Paid To
The above details are about difference between CPT and CIP. You may add your thoughts also about the comparison between CIP and CPT in the column below.
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