Incoterms® 2020 — Category C

CPT — Carriage Paid To (Incoterms 2020)

CPTCarriage 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.

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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

  1. Seller: Makes goods available at the named place.
  2. Export clearance: Seller arranges & pays for export clearance.
  3. Main carriage: Seller contracts & pays carrier to named destination.
  4. Risk transfers: When goods are handed over to the first carrier at the origin.. After this point, loss/damage is buyer's risk.
  5. Insurance: Buyer arranges own insurance if desired.
  6. Import clearance: Buyer arranges & pays for import clearance, duties, taxes at destination.
  7. 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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ProformaFlow is a document formatting tool, not legal or customs advice. Customs regulations change frequently and vary by country, carrier, and shipment. The user is solely responsible for the accuracy and regulatory compliance of all data entered. ProformaFlow does not guarantee, ensure, or certify customs acceptance or clearance.