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
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
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.
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.
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.
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
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.
The following issues should be noted when using CPT terminology
1. The problem of the boundaries of risk division. According to the General Conditions 2000, the goods from the place of delivery to the destination of the transportation of the risk borne by the importer, the seller only bear the risk of the goods to the carrier before the control.
2. The division of responsibility and costs. The importing party shall give the exporting party adequate notice of the time and place of delivery in time to facilitate the exporting party’s fulfillment of its delivery obligations, and the exporting party shall give the importing party adequate notice that the goods have been delivered in time after the exporting party has handed the goods over to the carrier to facilitate the importing party’s timely taking out of the insurance policy and taking possession of the goods at the place of destination.
Normal freight charges from the place of delivery to the named place of destination shall be borne by the exporting party, and other related costs in addition to normal freight charges shall be borne by the buyer.CPT incoterms meaning
CPT incoterms meaning
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CPT incoterms meaning
