CPT — Carriage Paid To

Mode of transport

Any mode

Definition

The seller delivers the goods to the carrier it has contracted with, and pays the carriage to the named place of destination. Delivery and arrival are two different points: risk transfers early, costs run to destination.

Delivery point

When the goods are handed over to the first carrier in the country of dispatch.

Risk transfer

On handover to the first carrier — not at destination. This is the most misunderstood feature of the C-rules.

Seller costs

• Packing, checking, export clearance
• Contract of carriage and freight to the named destination
• Unloading charges at destination only if included in the freight contract

Buyer costs

• All risks and costs after handover to the first carrier that are not part of the carriage contract
• Import clearance, duties and taxes
• Onward delivery after the named destination

Insurance

No insurance obligation. The buyer carries the risk in transit and should arrange cover.

Export formalities

Seller's responsibility and cost.

Import formalities

Buyer's responsibility and cost.

Documents

• Commercial invoice, packing list
• Usual transport document for the agreed destination
• Export declaration and certificate of origin as agreed

Best use cases

Multimodal or container shipments where the seller organises the main carriage but does not want transit risk or insurance duty.

Common mistakes

• Believing the seller bears risk to destination
• Naming only the destination country instead of a precise place
• Not agreeing who pays destination terminal handling charges

Practical example

CPT Hamburg, Incoterms® 2020.