CPT – Carriage Paid To

CPT goes beyond FCA by specifying that the seller bears the costs of transportation to the buyer’s place of destination. The seller clears the goods for export and delivers them to the carrier or place of destination as instructed by the buyer.

At the defined place of shipment is where the risk is transferred to the buyer. The seller is responsible for the transportation costs associated with delivering goods. However, he is not responsible for procuring insurance.

If the buyer requires the seller to obtain insurance, the parties should consider the Incoterm CIP instead.

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