Difference between CFR and CPT

CPT and CFR under Inco terms 2020

 Under this post we can discuss about the difference between CFR delivery rules  and CPT delivery rules as per Incoterms 2020 issued by ICC.

CFR means Cost and Freight to a named destination mutually agreed between seller and buyer under contract of carriage incorporated  under their sale contract.   

CPT means,  Carriage Paid To a named destination both seller and buyer contracted .

What  are the differences between CPT AND CFR

One of the main differences between CFR and CPT is that CFR is meant for movement of goods by Sea and Inland waterways only whereas CPT may be used for all modes of transport.  . 

CPT is widely used to move goods from Warehouse to Warehouse, movement of LCL cargo, shipments under break bulk etc. especially to Dry ports and intermediary ports. CPT modes are used widely used for the shipments by air also.    CFR delivery rules are widely used for the movement of goods by sea with destination to a port in buyer’s side.

Under CFR, the seller transfers the risks involved in movement of goods  when goods  gone onboard the vessel.  Under CPT terms, the delivery takes place when goods are handed over to the carrier contracted by seller, where the risks are transferred from seller to buyer. 

CFR – Cost and Freight (named Place)

 

CPT – Carriage Paid To (named Place)

 

 

Costs

Risks

 

 

Costs

Risks

Warehouse services

Seller

Seller

 

Warehouse services

Seller

Seller

Marking and labeling

Seller

Seller

 

Marking and labeling

Seller

Seller

Packing of Goods

Seller

Seller                                   

 

Packing of Goods

Seller

Seller                                   

Loading at Seller’s premises

Seller

Seller

 

Loading at Seller’s premises

Seller

Seller

Transportation from Seller’s

premises to Load port

Seller

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 Vesselt

Seller

Seller

 

Loading to Carrier 

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 (Vessel)

Seller

Buyer

 

Main Carriage

Seller

Buyer

Import Customs Clearance

Buyer

Buyer

 

Import Customs Clearance

Buyer

Buyer

Import Documentation

Buyer

Buyer

 

Import Documentation

Buyer

Buyer

Import Taxes and Duties (if any)

Buyer

Buyer

 

Import Taxes and Duties (if any)

Buyer

Buyer

Transportation from named place to final destination of buyer

Buyer

Buyer

 

Transportation from named place to final destination

Buyer

Buyer

Unloading at named place

Buyer

Buyer

 

Unloading at port named

Buyer

Buyer

Two web posts related to CFR and CPT explaining   both terms in detail in simple language  are available below to read.  You may click below to know easily to understand  both term CPT and CFR:

 

CFR  Cost and Freight

 

CPT  Carriage Paid To

 

Would you like to add more information on the difference between CPT and CFR?  Share below your comments  on CFR Vs.CPT.

Learn practical problems and solutions in Exports and Imports

Click here to read latest Inco terms rules for delivery of goods  

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FOB and DDP under Inco terms 2020     DDP and CFR under Inco terms 2020, a comparison     CFR Terms of delivery, Exporter or Importer to unload goods at destination?     Who unloads goods under DAP terms of delivery at named place?     CIP terms of movement, Unloading goods by Buyer or Seller?     CPT delivery terms, buyer or seller to unload goods at destination?     FCA terms, who is responsible to unload cargo at named place?     Who arranges Insurance under CFR terms under Export Import trade?               CIF and DDP under Inco terms 2020     Less risk for an Exporter, Which Inco terms is better?     Is Inco terms DAT valid after 2020?         Distinguish between CPT and CIF under Inco terms     Difference between CFR and CPT under delivery terms


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