What is CPT? Carriage Paid To Shipping

What is CPT?

Carriage Paid To, or CPT is an international trade term that described a contract between buyer and seller where the seller is responsible for export clearance and arranging carriage to the named place of destination. 

According to CPT Incoterms, what is each party responsible for?

Under CPT, the seller is responsible for export requirements and carriage, but does not need to pay for insurance. Although the seller is responsible for carriage by potentially more than one mode, risk transfers from the seller to the buyer when the first carrier (ship, train, plane, etc) receives the goods. However, the buyer is financially responsible for the goods once they arrive at the final destination. The buyer is also responsible for import costs, taxes, duties, and insurance throughout the carriage. 

When is CPT used?

CPT is generally used in containerized ocean freight, air freight, and small parcel shipments.