Carriage Paid To (CPT) (Incoterm)
Carriage Paid To (CPT) is an Incoterm where the seller pays the freight charges to move the goods to a named destination, such as a port, airport, or logistics hub. This means the seller covers the cost of the main transport. However, CPT separates cost responsibility from risk responsibility, which can be confusing for new traders. Under CPT, the seller arranges and pays for transportation but does not assume the transportation risk once the goods are handed over to the first carrier.
Risk transfers from the seller to the buyer at the moment the goods are delivered to the first carrier—whether that is a trucking company, airline, ocean line, or rail operator. From that point onwards, the buyer bears all risks of loss or damage, even though the seller may still be paying for the rest of the transport to the final destination. This distinction makes CPT a flexible option but requires clear communication between both parties.
CPT can be used for any mode of transport, including air, sea, road, rail, or multimodal shipments. It is commonly used when buyers want the seller to handle the main freight arrangements but prefer to manage risk through their own insurance or protection methods. The seller is responsible for export clearance, while the buyer handles import clearance upon arrival of the goods. Proper documentation, such as a commercial invoice, transport document, and packing list, is essential for smooth movement.
Overall, CPT provides buyers with cost convenience while giving sellers control over freight booking. It works well for international shipments where the seller has strong logistics partnerships. When both parties understand when risk transfers and who handles each stage, CPT offers a structured, efficient, and predictable shipping arrangement.
Frequently Asked Questions about Carriage Paid To (CPT) (Incoterm)
Clear answers to the most common questions people have when learning about Carriage Paid To (CPT) (Incoterm).
Risk transfers once the goods are handed over to the first carrier, even if the seller continues to pay for the main transportation to the destination.
Export clearance is the seller's responsibility, whereas import clearance and any duties or taxes at the destination are the buyer's.
Yes. CPT is adaptable and can be used for any mode of transportation, making it ideal for complex or multi-leg global shipments.