CPTIncoterms 2020

Carriage Paid To

Seller pays for carriage to the named destination, but risk transfers at the first carrier.

CPT means the seller contracts and pays for carriage to the named destination, but the risk transfers to the buyer the moment the goods are handed to the first carrier. This split between cost and risk is the trickiest part of CPT.

CPT is used for any mode of transport, especially multimodal and container shipping. For insurance-covered carriage, the equivalent term is CIP.

If the buyer needs the seller to bear risk all the way to the destination, consider DAP or DDP instead.

Who is responsible for what

Cost
Seller pays freight to the named destination.
Risk
Transfers to the buyer at the first carrier.
Insurance
Not obligatory — use CIP if insurance is required.
Duties
Seller for export, buyer for import.

When to use

Seller has better freight rates and is willing to contract the carriage, but not the risk.

Transport modes

air, sea, road, courier

FAQ

Does CPT include insurance?
No. CPT only covers carriage. Use CIP if you want the seller to include insurance.

Create a CPT invoice

Start the wizard with CPT pre-selected. Takes about a minute.

Start with CPT