ovrseasCPT: Carriage Paid To
C-group rule · any mode of transport · Incoterms® 2020
CPT (Carriage Paid To) means the seller clears the goods for export and pays the carriage to the named place of destination, by any mode of transport. Risk passes to the buyer when the goods are handed to the first carrier.
- Risk passes
- When the goods are handed to the first carrier — not at the destination the seller is paying to reach.
- Main freight
- Paid by the seller
- Insurance
- Neither side is obliged to insure — agree who does
- Customs
- Export: Seller · Import: Buyer
Who pays what under CPT
| Export clearance | Seller |
|---|---|
| Carriage to port / terminal | Seller |
| Loading onto main carriage | Seller |
| Main carriage (freight) | Seller |
| Insurance | Neither obliged |
| Unloading at destination | Buyer Unless unloading is included in the seller’s carriage contract (liner terms, door-to-door rates) — then the seller pays it and cannot charge it on. |
| Import clearance | Buyer |
| Duties and import taxes | Buyer |
How to write CPT on your documents
The rule is only complete with its named place. The place of destination the seller pays carriage to (risk passes earlier, at the first carrier).
CPT Chicago, IL, USA — Incoterms® 2020
Write it the same way on the quotation, the proforma, the commercial invoice and the shipping instructions — a different place on one document is a different deal.
Use CPT when
- Containers, air, road or rail where the seller arranges and pays the main carriage.
- The buyer arranges its own insurance (CPT requires none).
Think twice when
- The buyer thinks the seller carries risk until arrival — risk left at the first carrier, often a truck at the seller’s door.
- Several carriers are involved and the contract does not say where «first carrier» is: name the place of handover too.
With two carriers, risk passes at the first one. A seller shipping by a trucking carrier, then sea, has already transferred risk at the truck — unless the truck is the seller’s own, in which case risk passes at the next, contracted carrier.
Questions about CPT
- What does CPT mean in shipping?
- CPT (Carriage Paid To) means the seller clears the goods for export and pays the carriage to the named place of destination, by any mode of transport. Risk passes to the buyer when the goods are handed to the first carrier.
- Where does risk pass under CPT?
- When the goods are handed to the first carrier — not at the destination the seller is paying to reach.
- Who pays the freight under CPT?
- The seller pays the main carriage — even though risk has already passed to the buyer at origin.
- Who pays import duties under CPT?
- The buyer. Import clearance, duties and taxes are the buyer’s under every rule except DDP.
- Can CPT be used for containers or air freight?
- Yes. CPT works for any mode of transport, including containers, air, road and rail.
The documents where CPT is written
- Commercial invoice template
Customs and the buyer’s bank read the Incoterm here; it decides which costs belong in the invoice value.
- Proforma invoice template
The buyer opens a letter of credit or pays a deposit on these terms — the same rule must follow through.
- Quotation template
A price means nothing without its rule: «USD 12.50 FOB Busan» and «USD 12.50 DAP Dallas» are different offers.
Compare CPT with
Incoterms® is a registered trademark of the International Chamber of Commerce. This page is an independent summary of how costs and risk are allocated and is not affiliated with or endorsed by ICC. For contract drafting, use the official Incoterms® 2020 rules published by ICC.