CPT, or Carriage Paid To, is an international trade term defined in the Incoterms rules published by the International Chamber of Commerce (ICC). CPT is a versatile Incoterm that can be used for various modes of transportation, including road, rail, air, and sea. It outlines the responsibilities, costs, and risks between the seller and the buyer.

Delivery Point

In a CPT transaction, the seller is responsible for delivering the goods to the named destination (often a place or location) agreed upon by the buyer and seller. The seller is also responsible for the cost of transportation to that destination.

Seller's Responsibilities

Under CPT, the seller is responsible for:

• Packaging and preparing the goods for export.
• Transporting the goods to the named destination, which can be in the seller's own country or another country.
• Paying for the transportation costs to the named destination.
• Providing the buyer with any necessary documents, like invoices, export licenses, or other documentation.

Buyer's Responsibilities

• Unloading the goods at the named destination.
• Handling import customs formalities, duties, taxes, and clearances.
• Bearing any costs or risks incurred after the goods have been delivered to the named destination.

Transfer of Risk

Risk is transferred from the seller to the buyer at the point when the goods are delivered to the named destination. Once the goods are delivered to the agreed-upon location, the buyer assumes the risks associated with the goods.

CPT is a versatile Incoterm that is often used when both parties want to share some of the responsibilities and costs of the transportation. It allows the buyer to have more control over the import process while still benefiting from the seller's assistance in arranging and paying for transportation to the agreed-upon destination. Clear specification of the named destination and a well-defined agreement between the parties are essential for a successful CPT transaction.