Bob Ronai
With over 50 years of experience in the fields of exporting and importing, Bob initially worked in international banking before moving to international commerce.
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Contents
“Carriage Paid To” (CPT) is an Incoterms rule applicable across all transport modes.
It elaborates beyond Free Carrier (FCA), indicating that the seller is responsible for the costs associated with transporting goods to the buyer’s specified location and that ownership risk transfers from the seller to the buyer once the carrier begins handling the goods at the designated site.
Introduction to Carriage Paid To (CPT)
The CPT rule mandates that the seller deliver the goods to their carrier, though it doesn’t specify if this occurs at the seller’s location with the goods loaded or at another site without unloading from the seller’s transport.
The seller handles all export processes, while the buyer manages all import activities.
Under CPT, the seller must also organize and finance the transport, which is usually integrated into the sale price. Like the FCA Incoterm, risk transfers to the buyer as soon as the goods are handed over.
This rule is particularly useful for ground transportation between Europe and Central Asia, where it is common for the same vehicle to collect and deliver goods directly to their endpoint.
Carriage Paid To (CPT) Diagram 2024
Diagram: CPT indicates that the seller bears all transport expenses to the specified location. Risk transfers to the buyer when the goods reach the designated site and the carrier takes possession. Source: ICC
