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CPT Carriage Paid To.

Seller pays carriage to the named destination, but risk passes when the goods go to the first carrier.

Where risk passes

CPT named place of destination
SellerCarrierAlongsideOn boardImport portDestinationUnloaded
Risk passesWhen handed to the first carrier in the export country
Transport modeAny mode of transport
Main carriage booked bySeller
Cargo insuranceNot required; buyer insures if he wants to
Export clearanceSeller
Import clearance and dutiesBuyer
Seller pays6 of 13 cost steps

Who pays what under CPT

CostPaid by
Loading at originSeller
Export customs declarationSeller
Carriage to port of exportSeller
Unloading of truck in port of exportSeller
Loading on vessel/airplane in port of exportSeller
Carriage (sea/air) to port of importSeller
InsuranceBuyer
Unloading in port of importAgreed
Loading on truck in port of importAgreed
Carriage to place of destinationBuyer
Import customs clearanceBuyer
Import duties and taxesBuyer
Unloading at destinationBuyer

Sources: ICC, Incoterms® 2020; cost split as given inWikipedia, Incoterms (section "Allocations of costs"). Duties, fit and pitfalls below are Navo's own summary, not ICC text. Incoterms® is a trademark of the ICC.

When CPT fits

Multimodal and container shipments where the seller books the freight but the buyer carries the transit risk.

What to watch

  • Risk passes at the first carrier, long before the goods arrive, even though the seller pays freight to destination.
  • Name both the delivery place (where risk passes) and the destination (where carriage is paid to) to avoid disputes.
  • Unloading costs at destination are on the buyer unless the carriage contract includes them.
  • Shipping under CPT? Compare freight rates and check sailings.