CartonMath

CPTCarriage Paid To

CPT (Carriage Paid To) means the seller pays the carriage to the named place of destination, but risk passes to the buyer when the goods are handed to the first carrier. It works for any mode of transport.

Summarised from the Incoterms® 2020 rules. Not legal advice.Updated

Where CPT hands over

The orange marker is where risk passes to the buyer. Blue bars are the seller's, yellow the buyer's.

Seller'spremisesExportclearanceOriginterminalPort ofshipmentMaincarriageDestinationportImportclearanceNamedplaceRiskSellerBuyerTransport costsSellerBuyerCustomsExport: sellerImport, duties: buyerRisk passes here

CPT at a glance

Transport
Any modeIncluding containers and multimodal
Risk passes
Handed to carrier
Main carriage
Seller paysand arranges the contract
Insurance
No obligationthe party at risk usually insures
Delivery point
When the goods are handed over to the first carrier contracted by the seller, at the agreed place in the seller's country.
CPT responsibilities
JobWho
Export clearanceSeller
Loading at originSeller
Main carriageSeller
InsuranceNo obligation
Unloading at destinationBuyer, unless in seller's freight contract
Import clearance and dutiesBuyer

When to use CPT

Use CPT when

  • Any mode, including containers and air
  • The seller arranges the main carriage
  • The buyer insures from the first carrier onward

Avoid CPT when

  • The buyer assumes the seller carries transit risk
  • The place of handover to the first carrier is not named
  • The buyer needs insurance arranged for it (use CIP)

Common CPT mistakes

Risk passes early

Many buyers assume the seller carries the risk until destination because the seller pays the freight. It does not; the buyer should insure the whole journey.

Name both places

Name the destination (where carriage is paid to) and ideally the place of delivery to the first carrier, because that is where risk passes.

Destination costs

Unloading and other costs at destination are the buyer's unless they are in the seller's carriage contract.

CPT beside its neighbours

CIP is CPT plus insurance with ICC (A) cover arranged by the seller. Read about CIP.

CIFCost, Insurance and FreightRisk passes: on board vesselCPTCarriage Paid ToRisk passes: handed to carrierCIPCarriage and Insurance Paid ToRisk passes: handed to carrier
Previous ruleCIF, Cost, Insurance and FreightNext ruleCIP, Carriage and Insurance Paid To

All eleven rules

E rulesDeparture
EXWEx WorksAny mode of transport
F rulesMain carriage unpaid
FCAFree CarrierAny mode of transportFASFree Alongside ShipSea and inland waterwayFOBFree On BoardSea and inland waterway
C rulesMain carriage paid
CFRCost and FreightSea and inland waterwayCIFCost, Insurance and FreightSea and inland waterwayCPTCarriage Paid ToAny mode of transportCIPCarriage and Insurance Paid ToAny mode of transport
D rulesArrival
DAPDelivered at PlaceAny mode of transportDPUDelivered at Place UnloadedAny mode of transportDDPDelivered Duty PaidAny mode of transport

Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). CartonMath is not affiliated with or endorsed by the ICC. This is a plain-language summary; the full rules are published by the ICC and the contract wording governs.

Common questions

What does CPT mean?

CPT (Carriage Paid To) means the seller pays the carriage to the named place of destination, but risk passes to the buyer when the goods are handed to the first carrier. It works for any mode of transport.

When does risk pass under CPT?

When the goods are handed over to the first carrier contracted by the seller, at the agreed place in the seller's country.

Who pays the main freight under CPT?

The seller arranges and pays the main carriage.

Who pays import duties under CPT?

The buyer clears the goods for import and pays any duties and taxes under CPT.

Can CPT be used for container shipments?

Yes. CPT works for any mode of transport, including containers and multimodal shipments.

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