(Carriage Paid To) CPT Incoterms Meaning,Working Principle

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CPT incoterms meaning

CPT incoterms is Carriage Paid To the first letter of the English abbreviation, its Chinese translation is “freight paid to”, meaning that the seller to the designated carrier delivery, the goods to the carrier, but the seller must bear the cost of transporting goods to the destination. The buyer has to bear all the costs and risks after the delivery is completed.

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CPT incoterms process

1. Provide goods in accordance with the contract.

The seller must provide goods and commercial invoices or electronic information that have the same validity as the provisions of the sales contract. As well as any other documents required by the contract to prove that the goods comply with the contract.


CPT incoterms meaning

CPT incoterms meaning


2. Licenses, other permits and formalities.

The seller must obtain at its own risk and expense any export licenses or other official permits and, if necessary, all customs formalities required for the export of the goods.

3. Contracts of carriage and insurance.

The seller must enter into a contract of carriage on the usual terms and at his own expense and transport the goods by the usual routes and in the customary manner to a named place at a named destination.

If no specific place of delivery has been agreed upon or cannot be determined in accordance with customary practice, the seller may choose the place of delivery at the named place of destination that best suits its purpose.

4. Delivery.

The seller must deliver the goods to the carrier contracted for under a3 or, if there are other pick-up carriers, to the first carrier so that the goods are delivered to the named place at the named place of destination on the date or within the period agreed upon.


Rules of Origin

CPT incoterms meaning


Difference between CPT incoterms and DDP

DDP freight is paid to the buyer’s address and the seller is responsible for customs clearance and duties.

CPT freight is paid to the buyer’s address, the buyer is responsible for customs clearance and the seller is responsible for duties.


CPT incoterms meaning

CPT incoterms meaning


Difference between CPT incoterms and FCA

According to the two terms of the transaction, the seller’s delivery place is the same, are in the agreed location of the goods to the carrier to complete the delivery of control.

The transfer of risk is also the same, and the risk borne by the seller is transferred with the completion of the delivery obligation at the place of delivery. In addition, both terms are applicable to various modes of transportation.

Difference between CPT and CIF

Cost plus insurance and freight (CIF) is similar to CPT, but slightly different. The main difference is that, according to Incoterms, CIF applies only to ocean transportation.

The seller is responsible for the transportation costs, insurance and freight of the goods until they are loaded in the port. From then on, the responsibility lies with the buyer.

We specialize in shipping from China to USA, and can provide sea freight from China to USA,air freight from China to USA.

CPT incoterms meaning

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