Carriage Paid to

Carriage Paid to, abbreviated as CPT, is a delivery clause according to the INCOTERMS which obliges the seller to bear the freight costs up to the named place of delivery at the place of destination. This clause applies specifically to the transportation of goods by rail and road.

  1. Meaning of CPT: CPT means that the seller is responsible for bearing the freight costs up to the named place of delivery at the place of destination. This includes both the transportation of the goods and the associated costs and risks up to this point. From this point, responsibility is transferred to the buyer.
  2. Application of CPT: The CPT clause is often used in international trade transactions, especially when the goods are transported by rail or road. It provides clear agreements on the delivery and transportation of the goods to the named place of delivery and helps to avoid disputes and misunderstandings between buyer and seller.
  3. Advantages of CPT: For the buyer, the CPT clause offers the advantage of having clear costs and responsibilities for the transportation of the goods to the place of destination. For the seller, it provides a clear and transparent regulation of freight costs and risks up to the named place of delivery, resulting in a smoother and more efficient trading process.

Overall, Carriage Paid to (CPT) is an important delivery clause in international trade that sets out clear arrangements for the transportation and delivery of goods by rail and road. By defining clear costs and responsibilities, it contributes to the safety and efficiency of trade and facilitates the international movement of goods.