CPT — Carriage Paid To (Incoterms 2020)
CPT — Carriage Paid To (Incoterms® 2020). Risk transfers when goods are handed over to the first carrier at the origin.. Freight included. Insurance NOT included.Generate compliant CPT documents in 60 seconds. Free up to 3/month.
infoCPT at a Glance
Responsibilities
- Risk Transfer
- When goods are handed over to the first carrier at the origin.
- Cost Responsibility
- Seller bears transport costs to named destination. Buyer bears import clearance, duties, inland transport from destination.
- Transport Mode
- Any mode (road, rail, air, sea)
- Freight Included
- Yes — seller arranges & pays main carriage
- Insurance Included
- No — buyer arranges if desired
- Category
- Main Carriage Paid (C)
When to Use CPT
- For multimodal transport (air + road, sea + rail, etc.)
- When seller pays freight but not assume risk in transit
- For air freight shipments
When NOT to Use CPT
- When seller wants to control entire logistics to buyer (use DAP/DDP)
- When buyer wants control over freight (use FCA/EXW)
articleCPT Explained — Practical Guide
What CPT Means in Plain Language
CPT (Carriage Paid To (Incoterms® 2020)) is an Incoterms® 2020 term in Category C — main carriage paid. Under CPT, the seller when goods are handed over to the first carrier at the origin.and pays for main carriage to the named destination.
Step-by-Step: Who Does What
- Seller: Makes goods available at the named place.
- Export clearance: Seller arranges & pays for export clearance.
- Main carriage: Seller contracts & pays carrier to named destination.
- Risk transfers: When goods are handed over to the first carrier at the origin.. After this point, loss/damage is buyer's risk.
- Insurance: Buyer arranges own insurance if desired.
- Import clearance: Buyer arranges & pays for import clearance, duties, taxes at destination.
- Final delivery: Buyer unloads at destination.
Common CPT Mistakes to Avoid
- Using CPT for sea shipments — mode mismatch invalidates the term.
- Not naming the precise place/port — "CPT China" is invalid; use "CPT Shanghai" or "CPT Guangzhou".
- Assuming insurance is included when it's not — only CIP and CIF include seller-procured insurance.
- Confusing risk transfer with cost transfer — they happen at different points in C-terms.
- Missing "Incoterms® 2020" in contract — without edition, old 2010 rules may apply.
local_shippingCarrier Implementation Notes for CPT
local_shippingFedEx
- • Terms of Sale field: CPT + named place
- • Freight prepaid — seller provides carrier docs
- • Insurance: buyer's responsibility
- • Air waybill (12-digit FedEx / 1Z UPS / 10-digit DHL)
inventory_2UPS
- • Terms of Sale field: CPT + named place
- • Freight prepaid — seller provides carrier docs
- • Insurance: buyer's responsibility
- • Air waybill (12-digit FedEx / 1Z UPS / 10-digit DHL)
deployed_codeDHL
- • Terms of Sale field: CPT + named place
- • Freight prepaid — seller provides carrier docs
- • Insurance: buyer's responsibility
- • Air waybill (12-digit FedEx / 1Z UPS / 10-digit DHL)
downloadFree: Incoterms® 2020 Cheat Sheet (PDF)
One-page reference: all 11 terms, risk transfer points, cost matrix, when to use each. Perfect for your desk or forwarding team.
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