Carriage paid to (CPT),
Definition of Carriage paid to (CPT):
Carriage Paid To (CPT) is one of the 11 current Incoterms (International Commercial Terms), a set of standardized international trade terms that are published by the International Chamber of Commerce.
CPT stands for Carriage Paid To and is an international trade term which means that the seller delivers the goods at their expense to a carrier or another person nominated by the seller. The seller assumes all risks, including loss, until the goods are in the care of the nominated party. The carrier could be the person or entity responsible for the carriage (by sea transport, rail, road, etc.) of the goods or the person or entity enlisted to procure the performance of the carriage. The CPT price might include Terminal Handling Charges (THC) in their freight rates.
Term of sale signifying that the price invoiced or quoted by a seller does not include insurance cost, but includes all other charges up to a named place of destination (usually the buyers warehouse). In comparison, cost and freight (C&F) terms include transport charges only up to a named port of destination.
How to use Carriage paid to (CPT) in a sentence?
- With multiple carriers, the risks and costs transfer to the buyer upon delivery to the first carrier.
- As an alternative, the buyer could opt for the Carriage and Insurance Paid To (CIP) arrangement, whereby the seller also insures the goods during transit.
- Carriage Paid To (CPT) is an International Commercial Term denoting that the seller incurs the risks and costs associated with delivering goods to a carrier to an agreed-upon destination.
- CPT costs include export fees and taxes.
Meaning of Carriage paid to (CPT) & Carriage paid to (CPT) Definition