Trade term: CPT - Carriage Paid To

This term is used without exception for any chosen mode of transport, including situations where multiple modes of transport are utilized. "Carriage Paid To..." means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place, and the seller must contract for and pay the costs necessary for the carriage of the goods to the named destination. Under CPT, CIP, CFR, or CIF, the seller's delivery obligation is fulfilled when the goods are handed over to the carrier, not when they arrive at the named destination. This rule has two critical points because risk and costs transfer at different locations. The buyer and seller should specify as precisely as possible in the sales contract the following two points: the place of delivery where risk transfers to the buyer; and the named destination specified in the transport contract they must enter into. If multiple carriers are used to transport the goods to the named destination, and no specific delivery point has been agreed upon by the parties, the contract defaults to the risk transferring from the buyer to the first carrier. The seller has absolute discretion in choosing the place of delivery without any control from the buyer. If the parties wish the risk to transfer later, for example at a seaport or airport, they must clearly specify this in the sales contract.

Since the seller bears the costs for transporting the goods to the named destination, the parties should specify the exact point within the destination as precisely as possible. The seller must name this specific delivery point in the transport contract. If the seller incurs any demurrage charges under its contract of carriage at the named destination, it is not entitled to charge the buyer for such costs unless otherwise agreed upon.

The CPT trade term requires the seller to carry out customs formalities for the export of the goods, if and where applicable. However, the seller is not obligated to clear the goods for import, pay import duties, or carry out any customs formalities required for import.

A THE SELLER’S OBLIGATIONS	B THE BUYER’S OBLIGATIONS
A1 The seller’s general obligations The seller must provide the goods in conformity with the contract of sale and the commercial invoice, as well as any evidence that the goods conform to the contract requirements. Any document referred to in A1-A10 may be an equivalent electronic record or procedure if agreed by the parties or customary.	B1 The buyer’s general obligations The buyer must pay the price of the goods as provided in the contract of sale. Any document referred to in B1-B10 may be an equivalent electronic record or procedure if agreed by the parties or customary.
A2 Licenses, authorizations, security clearances and other formalities Where these formalities need to be carried out, the seller must obtain, at its own risk and expense, any export license or other official authorization and carry out all customs formalities necessary for the export of the goods and their transit through any country prior to delivery.	B2 Licenses, authorizations, security clearances and other formalities If these customs formalities are required, the buyer, at its own risk and expense, is free to decide whether to obtain any import license or other official authorization and carry out all customs formalities for the import of the goods and their transit through any country.
A3 Contracts of carriage and insurance a) Contract of carriage The seller must contract for the carriage of the goods from the agreed point of delivery to the named place of destination, if any, or to the agreed point at the place of destination. The seller must contract at its own expense for the carriage of the goods on usual terms and by the usual route and customary manner to the named point at the place of destination. If no such point is agreed or is not determined by practice, the seller may select the point at the named place of destination which best suits its purpose. b) Contract of insurance The seller has no obligation to contract for insurance with the buyer. However, at the buyer's request, and at the buyer's risk and expense (if any), the seller must provide the buyer with the information it needs to obtain insurance.	B3 Contracts of carriage and insurance a) Contract of carriage The buyer has no obligation to contract for carriage with the seller. b) Contract of insurance The buyer has no obligation to contract for insurance with the seller. However, where required by the seller, the buyer must provide the seller with the necessary information to obtain insurance.
A4 Delivery The seller must deliver the goods to the carrier contracted in accordance with A3 on the agreed date or within the agreed period.	B4 Taking delivery The buyer must take delivery of the goods when they have been delivered in accordance with A4 and receive them from the carrier at the named place of destination.
A5 Transfer of risks Subject to the exceptions of B5, the seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A4.	B5 Transfer of risks The buyer bears all risks of loss of or damage to the goods from the time they have been delivered in accordance with A4. If the buyer fails to give notice to the seller in accordance with B7, then provided that the goods have been clearly identified as the contract goods, the buyer must bear all risks of loss of or damage to the goods from the agreed date of delivery or the expiry date of the agreed period for delivery.
A6 Allocation of costs The seller must pay a) All costs relating to the goods until they have been delivered in accordance with A4, other than those payable by the buyer as provided in B6; b) The freight and all other costs resulting from A3 a), including the costs of loading the goods and of unloading at the place of destination, which were for the seller's account under the contract of carriage; and c) The costs of customs formalities necessary for export, all duties, taxes and other charges payable upon export, and costs for transit through any country, if any, which were for the seller's account under the transport contract.	B6 Allocation of costs Subject to A3 a), the buyer must pay a) All costs relating to the goods from the time they have been delivered in accordance with A4, except those applicable customs formalities costs, duties, taxes, and charges payable upon export as mentioned in A6, if these formalities are required; b) All costs of the goods in transit until their arrival at the place of destination, unless such costs are for the seller's account under the transport contract; c) Unloading costs, unless such costs are for the seller's account under the transport contract; d) All additional costs incurred if the buyer fails to give notice to the seller as per B7, from the agreed date for dispatch or the expiry of the agreed period for dispatch, provided that the goods have been duly appropriated to the contract; e) All duties, taxes and other charges payable upon import, and the costs of customs formalities for import, as well as costs for transit through any country, unless these costs are included in the contract of carriage.
A7 Notice to the buyer The seller must give the buyer notice of the delivery in accordance with A4. The seller must give the buyer any other necessary notice to enable the buyer to take the measures normally required to receive the goods.	B7 Notice to the seller The buyer must give the seller sufficient notice whenever the buyer is entitled to decide the time for dispatching the goods and/or the named place of destination or the point within the place of destination.
A8 Document of delivery If customary or at the buyer’s request, the seller must provide the buyer, at the seller’s expense, with the usual transport document for the goods contracted in accordance with A3. The transport document must cover the contract goods and be dated within the agreed period for shipping. If agreed or customary, the document must enable the buyer to take delivery of the goods from the carrier at the place of destination and to sell the goods in transit by transfer of the document to a subsequent buyer or by notification to the carrier. When such transport document is issued in negotiable form and in several originals, a complete set of originals must be presented to the buyer.	B8 Evidence of taking delivery The buyer must accept the transport document provided according to A8 if it is in conformity with the contract.
A9 Checking, packaging, marking The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A4, as well as the costs of any compulsory pre-shipment inspection mandated by the authorities of the country of export. The seller must at its own expense provide packaging (unless it is customary in the trade to ship the goods of the description described without packaging). The seller must deliver suitable packaging for the transport, unless the buyer has already specified specific packaging requirements before the conclusion of the sales contract. The packaging must be marked appropriately.	B9 Inspection of goods The buyer must pay the cost of any compulsory pre-shipment inspection, except where such inspection is mandated by the authorities of the country of export.
A10 Assistance with information and related costs When these procedures are required in the port location, the seller must, at the buyer’s request and at the buyer’s risk and expense, render prompt assistance and provide information to enable the buyer to obtain any documents and information, including information related to security, needed for import and/or transport of the goods to their final destination. The seller must reimburse the buyer for all losses and costs incurred by the seller in obtaining or assisting the buyer in obtaining the documents and information, correspondingly with B10.	B10 Assistance with information and related costs The buyer must promptly notify the seller of any demands for security-related information for the seller to comply with its A10 obligations. The buyer must reimburse the seller for all costs incurred in providing or assisting the buyer’s procurement of documents and information as per A10. When such procedures are in the port location are required, at the seller’s request, risk, and expense, the buyer must promptly provide or assist the seller in obtaining any documents and information, including security-related information, needed for export and transit through any country.

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