Carriage Paid To (CPT) is a term used in international trade contracts to define the seller’s responsibility for the delivery of goods to a specified destination. Under CPT, the seller is responsible for arranging and paying for the transportation of the goods to the agreed-upon destination, as well as any necessary export documentation and customs clearance. Once the goods are delivered to the carrier, the risk of loss or damage transfers from the seller to the buyer. The buyer is responsible for any subsequent transportation costs, import duties, and taxes. CPT is commonly used in multimodal transportation, where multiple modes of transport are involved in the delivery process.
The seller is responsible for arranging and paying for the transportation of the goods to the agreed destination under the CPT terms. They must ensure that the goods are properly packaged and ready for shipment.
The buyer’s main obligation under CPT is to receive the goods from the carrier at the agreed destination. They must also handle any import customs formalities, pay any applicable taxes or duties, and provide the necessary information for the seller to arrange transportation.
If the goods are lost or damaged during transportation, the seller is responsible for any resulting loss or damage until the goods are delivered to the carrier. The buyer should immediately notify the seller and the carrier, and the necessary insurance claims or legal actions can be pursued.
Unless otherwise agreed upon, the seller has the right to choose the carrier and transportation method under CPT. However, if the buyer has specific requirements or preferences, they should negotiate these terms with the seller before entering into the contract.
No, under CPT, the seller is responsible for all transportation costs to the agreed destination. They cannot charge the buyer any additional fees for transportation unless otherwise specified in the contract.
The buyer should accept the goods at the agreed destination unless there is a valid reason for refusal, such as non-conformity with the contract specifications or damage during transportation. In such cases, the buyer should notify the seller and provide evidence to support their claim.
If the buyer fails to receive the goods at the agreed destination without a valid reason, the seller may have the right to terminate the contract. However, this right may vary depending on the specific terms and conditions agreed upon in the contract.
Yes, the CPT terms can be modified or replaced by other Incoterms if both parties agree to the change. It is important to clearly define the chosen Incoterms in the contract to avoid any misunderstandings or disputes.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 4th April 2024.
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