CFR (Cost and Freight)

Written by : TATA AIG Team

CPT(carriage paid to) is an international trade term in which the seller pays for the transport of goods to a specific destination. This includes arranging shipping and covering costs until the goods arrive.

Anyone involved in international trade should understand the details of CPT to ensure correct invoicing, customs clearance and risk management.

This guide delves into the intricacies of CPT, such as the Carriage Paid To meaning, advantages and disadvantages, to help avoid misunderstandings, reduce costs and prevent any disputes during the trade.

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CPT Shipping Terms – Know When Risk Transfers

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List of Content

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    What is CPT Incoterm Meaning?
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    Seller’s Obligations Under the Carriage Paid To Incoterms
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    Buyer’s Obligations Under the Carriage Paid to Incoterms
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    Advantages of the Carriage Paid To Incoterms
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    Disadvantages of the Carriage Paid To Incoterms
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    Difference Between Carriage Paid To and Carriage and Insurance Paid To
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    Marine Insurance Under Carriage Paid To Incoterms
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    Frequently Asked Questions

What is CPT Incoterm Meaning?

CPT is an international agreement that outlines the responsibilities of the seller and buyer regarding the delivery of goods. Under CPT incoterms, the seller is responsible for arranging and paying the transportation costs until the goods reach a specified destination. The seller also handles export procedures, while the buyer manages import formalities.

Once the goods are delivered to the first carrier, the risk of loss or damage transfers from the seller to the buyer. However, the buyer is only responsible for additional costs incurred after the goods arrive at their final destination. CPT is commonly used for various modes of transportation, including air freight, ocean freight and land transportation.

It is important to note that CPT does not require the seller to obtain insurance for the goods. The buyer is responsible for obtaining insurance coverage, if desired. Additionally, the seller’s delivery obligation can be fulfilled at either their premises or another agreed-upon location.

Frequently Asked Questions

-What is the key difference between CPT and CIF?

CIF applies specifically to maritime shipping, while CPT is more general and can be used for any mode of transport.

-What is the key difference between DDP and CPT?

DDP requires the seller to bear all costs and risks until the buyer receives the goods at the destination, while CPT requires the seller to do so only until the goods are delivered to the first carrier.

CPT Shipping Terms – Know When Risk Transfers

Insure Your Shipment in Minutes — Plans Begin at ₹591.

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