Terms of delivery CPT Incoterms 2010
What is CPT, risks, and liability under the CPT Baseline Conditions
CPT (Carriage Paid To) is translated as "freight/carriage paid before". The destination is indicated below. This is one of the basic Incoterms used in foreign trade activities and defines the duties and risks of the seller and the buyer when delivering the goods. The CPT term implies that the seller must pay for the delivery of the goods. This includes the transport of the goods to the place of loading as well as the loading itself onto the means of transport (car, rolling stock, etc.). When the seller delivers the goods to the carrier, the risk of loss of or damage to the goods is transferred to the buyer, as well as the costs. The term CPT is used for any type of transport, including mixed transport. If there are several carriers, the responsibility and risk from the seller to the buyer passes on at the time the goods are transferred to the first carrier.
Duties of the parties and nuances in the delivery of CPT
The main duties of the seller under the terms of delivery of CPT for export are considered: 1. Provide the buyer with the goods by the contract. 2. Escort the goods with all necessary commercial documentation. 3. To conclude a contract with the carrier of the goods to the point of destination specified in the contract and to pay all the costs of carriage. 4. Provide the goods with the necessary marking and name. 5. Pay for all procedures related to the export of the goods and deliver the goods to the carrier at the point of dispatch. 6. Notify the buyer that the goods have been loaded into the carrier vehicle. The main duties of the buyer under the terms of the CPT's delivery at the time of importation include: 1. Pay the seller the delivered goods by the terms of the contract. 2. Pay for all procedures related to the import of goods. 3. Take care of all customs expenses as well as expenses related to the delivery of the goods from the destination point. 4. Accept all documents forwarded by the seller. 5. Notify the seller of the receipt of the goods. The term CPT indicates which party carries out the actions related to transport and customs clearance, when and where the goods are transferred from seller to buyer and what costs are borne by each party. The CPT term does not define the price of the goods, the method of payment, the process of transfer of title to the goods and the liability of the parties for breach of contract.