When using this term, the seller is obliged to conclude a contract of carriage and bear the transportation costs necessary to deliver the goods to the agreed destination. When using the term CPT, the seller transfers the goods to the carrier or another person nominated by the seller at an agreed place (if such a place is agreed by the parties and fulfills its delivery obligation.
The term contains two critical points, since risk and costs are transferred in two different places.
When using this term, the seller is obliged to conclude a contract of carriage and bear the transportation costs necessary to deliver the goods to the agreed destination. When using the term CPT, the seller transfers the goods to the carrier or another person nominated by the seller at an agreed place (if such a place is agreed by the parties and fulfills its delivery obligation.
The term contains two critical points, since risk and costs are transferred in two different places.
"Carriage paid to" ("Carriage paid to") means that the seller transfersproductto the carrier or another person nominated by the seller at an agreed place (if such a place is agreed by the parties) and that the seller is obliged to conclude a contract of carriage and bear the transportation costs necessary to deliver the goods to the agreed destination.
When using the term CPT, the seller fulfills his delivery obligation when he transfers the goods to the carrier, and not when the goods have reached their destination.
This term contains two critical points, since risk and costs are transferred in two different places. The parties are recommended to define in the contract as clearly as possible the place of delivery of the goods in which the risk passes to the buyer, as well as the named destination to which the seller is obliged to conclude a contract of carriage.When using several carriers to transport goods in an agreed direction and if the parties have not agreed on a specific delivery point, the disadvantage is that the risk passes when the goods are transferred to the first carrier at a point whose choice completely depends on the seller and which is beyond the buyer's control.
If the parties intend for the transfer of risk to be carried out at a later stage (i.e. at the seaport or at the airport), this must be defined in the contract. The parties are also advised to identify the point at the agreed destination as accurately as possible, since the costs up to this point are borne by the seller. It is recommended that the seller provide contracts of carriage that accurately reflect this choice. If the seller under his contract of carriage bears the costs of unloading at the agreed destination, the seller has no right to demand from the buyer compensation for such costs, unless otherwise agreed by the parties.
The CPT requires the seller to perform customs formalities for export, if any. But the seller is not obliged to perform customs formalities for importation, pay import duties or perform other customs formalities upon importation.
The term CPT is convenient for the importer, because the exporter takes over the organizational aspects with the delivery of the goods and its insurance. But all these costs, the seller will still include in the price of the goods.
This list is not complete and depends on the specific case, under these conditions of delivery, the seller's logistics may give a lower freight cost compared to, for example,FOB, but it may happen that in the end, due to the fact that the buyer pays various port fees at the port of arrival and this increases the total cost, it is also not recommended to use this term ifcargoit is planned to ship further across Russia in container trains.