CPT - CARRIAGE PAID TO



Can be used for any transport mode, or where there is a couple of transport mode.

The vendor is answerable for arranging carriage to the named area, however, now not for ensuring the goods to the named location. However, shipping of the products takes place, and danger transfers from vendor to buyer, at the factor where the goods are taken in charge by using a provider, see delivery.

Things to watch for

Terminal Handling Charges (THC) are expenses made via the terminal operator. These expenses may additionally or won't be included through the service in their freight rates – the buyer has to inquire whether or not the CPT rate consists of THC, to avoid surprises.

The buyer may additionally desire to arrange insurance cowl for the primary carriage, beginning from the factor where the goods are taken in charge with the aid of the provider – NB this could now not be the location stated in the Incoterms rule but might be specified elsewhere in the commercial agreement
  
The switch of chance and cost from supplier to buyer occurs at distinct points.

CIF Incoterm Obligations

Seller’s Obligations
  • Goods, industrial bill and documentation
  • Export packaging and marking
  • Export licenses and customs formalities
  • Pre-carriage and transport
  • Loading costs
  • Cost of delivery at the named location of destination
  • Proof of shipping
  • Cost of pre-cargo inspection

Buyer’s Obligations

  • Payment for goods as detailed within the sales contract
  • Import formalities and duties
  • Cost of import clearance pre-cargo inspection