CPT — Carriage Paid To
The seller pays the carriage to the named destination, but the risk passes to the buyer as soon as the goods are handed to the first carrier.
- Transport
- Any mode
- Main carriage
- The seller books and pays carriage to the named destination.
- Risk passes
- When the goods are handed over to the first carrier in the seller's country.
- Insurance
- Not required
Who pays and who carries the risk
- Export clearanceSeller
- Loading at sellerSeller
- Risk passes to buyerTransport to terminalSeller
- Origin terminal & loadingSeller
- Main carriageSeller
- Destination terminal & unloadingBuyer
- Import clearance & dutiesBuyer
- Delivery to buyerBuyer
- Unloading at buyerBuyer
Destination terminal charges are the buyer's unless they are included in the seller's carriage contract.
Seller
- Clear the goods for export
- Contract and pay carriage to the named destination
- Hand the goods to the first carrier and notify the buyer
Buyer
- Bear risk from handover to the first carrier
- Pay costs after arrival not covered by the carriage contract
- Clear the goods for import and pay duties
- Insure the cargo if it wants cover
When to use it
Containers, air and multimodal shipments where the seller controls the freight. The container-friendly version of CFR.
Watch out
Risk and cost pass at two different points: the buyer carries the risk of the whole main voyage that the seller paid for. Agree who pays terminal handling at destination.
Not sure which term to agree?
Tell us the route and the cargo — we'll suggest the term that fits and quote the freight for it.
Get a quoteOther Incoterms® rules
Incoterms® is a registered trademark of the International Chamber of Commerce. This guide is Cargo 4S's own summary for everyday use; for the complete rules see the official ICC Incoterms® 2020 publication.
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