Explain the shipping term CPT?

CPT - Carriage Paid To (Place of Destination)


The term CPT means the seller delivers merchandise to the carrier chose by him by bearing the cost of carriage up to the destination said in the contract. From the location of delivery of goods by the seller at importing country, the purchaser bears all extra costs if any happening after such delivery of goods to the agreed location under CPT terms.

The major difference between CIF and CPT is that the shipping term CPT is used in all modes of transport, where as CIF terms of shipping is used only for sea and inland water transport. 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.

If two carriers are involved in a CPT terms of delivery i.e, if involves multimodal transportation, 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.


This term can be used for Air and Sea transport.


Obligation and expenses of seller:-

All responsibilities and charges should incur by seller include Warehouse Services, Export packing, assistance in obtaining any exports licence or other official authorisation, loading at point of Origin, Origin Inland Freight, Origin Port Charges, Export Customs clearance, Origin Forwarder Fees, Ocean/Air Freight.

The risk passes to the buyer from the seller after the goods have been delivered to the custody of the carrier in accordance with contract.


Obligation and expenses of Buyer:-

All responsibilities and charges must incurs by Buyer includes Destination Port Charges, Import Customs clearance, Import Duties and Taxes, Delivery cartage to Final Destination.

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