# CPT, Carriage Paid To (Incoterms 2020)

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.

- Transport: any mode
- Delivery and risk transfer: When the goods are handed over to the first carrier contracted by the seller, at the agreed place in the seller's country.
- Seller's costs run to: Arrived at destination

## Responsibilities

| Job | Who |
|---|---|
| Export clearance | Seller |
| Loading at origin | Seller |
| Main carriage | Seller |
| Insurance | No obligation |
| Unloading at destination | Buyer, unless in seller's freight contract |
| Import clearance and duties | Buyer |

## Common 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 or CIP?

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

Incoterms® is a trademark of the International Chamber of Commerce; CartonMath is not affiliated with the ICC.

## FAQ

**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.

Source page: https://cartonmath.com/incoterms/cpt/
Updated: 2026-10-06
Publisher: CartonMath (https://cartonmath.com)