CPT (Carriage Paid To) is an Incoterm where the seller pays for transportation of goods to a specified destination, but the risk transfers to the buyer once the goods are handed over to the first carrier.
How It Works:
- The seller prepares and dispatches the goods.
- The seller arranges and pays for transportation.
- Goods are handed over to the first carrier.
- Risk transfers to the buyer at that point.
- The buyer handles further risks and import procedures.
Benefits:
- Simplifies logistics planning for buyers
- Suitable for multimodal transport
- Clearly separates cost and risk responsibilities
- Widely used in international trade
Example:
An exporter sends goods to France under CPT terms, paying for transportation, but the buyer bears risk once the goods are handed to the carrier.