Category: Incoterms
CPT (Carriage Paid To)
Also known as: Carriage Paid To
Definition
The seller pays carriage to the named destination, but risk passes when goods reach the first carrier.
CPT is the multimodal counterpart of CFR: the seller contracts and pays for carriage to the agreed destination, while risk transfers to the buyer as soon as the goods are handed to the first carrier — often far from the destination named in the contract.
Because cost and risk split at different points, buyers should understand they own the in-transit risk despite the seller paying the freight. CPT suits any mode or combination of modes.
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