DDP and CPT under Inco terms 2020

Seller

Transportation from Seller’s

premises to Load port

Seller

Seller

Unloading at Loading Port

Seller

Seller

Unloading at Loading Port

Seller

Seller

Loading to Vessel/Aircraft

Seller

Seller

Loading to Vessel/Aircraft

Seller

Seller

Export documentation

Seller

Seller

Export documentation

Seller

Seller

Export Customs Clearance

Seller

Seller

Export Customs Clearance

Seller

Seller

Export Taxes and duties (if any)

Seller

Seller

Export Taxes and duties (if any)

Seller

Seller

Handling  at Load Port

Seller

Seller

Handling  at Load Port

Seller

Seller

Main Carriage

(Ocean Freight/Airfreight)

Seller

Buyer

Main Carriage

(Ocean Freight/Airfreight)

Seller

Seller

Import Customs Clearance

Buyer

Buyer

Import Customs Clearance

Seller

Seller

Import Documentation

Buyer

Buyer

Import Documentation

Seller

Seller

Import Taxes and Duties (if any)

Buyer

Buyer

Import Taxes and Duties (if any)

Seller

Seller

Transportation from named place to final destination

Buyer

Buyer

Transportation from destination

port to named place

Seller

Seller

Unloading at port named

Buyer

Buyer

Unloading at named place

Buyer

Buyer

More information about CPT and DDP are explained separately with table for each delivery rules under Inco terms 2020 available below for clicking to read where   explained easily to understand. 

DDP  Delivered Duty Paid

CPT  Carriage Paid To

The above information is about the difference between DAP and CPT.  You may add more information based on your experience in handling CPT and DAP delivery terms for movement of goods under INCOTERMS 2020 published by International Chamber of Commerce (ICC)

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CPT Vs. DDP,  a differentiating study based on Incoterms 2020

How to differentiate DDP and CPT as per Inco terms 2020?

As you know, DDP means Delivered at Duty Paid at a named place agreed between buyer and seller when agreeing mutually as contract of carriage under Sale agreement. 

CPT means Carriage Paid To  a named place where seller and buyer agrees mutually under contract of carriage which is a part of Sale contract.

What is difference between both CPT and DDP?

One of the main differences between DDP and CPT is that; under DDP terms, the seller is responsible for import customs clearance and duties at buyer’s country whereas under CPT terms, buyer undertakes import customs clearance and taxes.

Under CPT delivery rules, the seller transfers the cost of movement of goods to the buyer at the named location in Buyer’s country, in export import business.  But the risk under CPT transfers from seller to buyer immediately up on loading the goods to the carrier contracted by seller.  So the risk and cost equally do not move from seller to buyer under CPT terms, where costs and risks equally move from seller to buyer under DDP terms.

Usually, DDP terms are contracted when the buyer does want to take very less risks and costs on movement of goods where most of the risks and costs on movement of goods are on the shoulder of seller. 

CPT delivery rules under Inco terms 2020 is ideal to use for movement of goods  from one warehouse to another,  movement of Less Container Load cargo (LCL),  movement of break bulk cargo etc. whereas DDP delivery rules are preferably used for movement of cargo from sellers place to buyer’s premises  either by Sea or by air. CPT modes are used widely used for the shipments by air also.

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