CPT is one of the incoterms created to determine the authorities and responsibilities of exporters and importers. CPT incoterm is described in incoterms 2010 with all the details.

CPT Delivery Term

CPT / Carriage Insurance Paid To (Paid to Carriage Fees and Insurance)

CPT Delivery term is very similar with CIP. The main difference is; more than one veichle using to complate the main transportation. The main shipment is organized by the seller company and the goods reach to the buyer facility. The delivery adress mentioned on proforma or contract as "CPT ... City"
Incoterms 2010 including 11 different delivery methods. CPT is one of the less using option in C group incoterms..

Carriage Insurance Paid To

In the form of CPT delivery, the exporter company completes the operation in such a way as to deliver the cargo to an agreed place or the buyer's facility according buyer ie exporter request. So seller (exporter) company responsible to carry the goods from his facility to the destination point.

This process include an expense; inland transportation, customs clearence, port charges (if its sea shipment), shipment costs, port charges in destination port (if its sea shipment) and also inland transportation in buyer's country. CPT using when carriage needs more than 1 veicle. Mostly its using overseas operations. 

For example; the delivery term in the contract or in the proforma invoice is CPT London XYZ Warehouse in UK, 
The seller ie exporter company based in Izmir city in Turkey. 
The exporter company should handle all shipment process until the goods reach to London city, XYZ warehouse. Therefore, the seller company should arrange the vessel shipment and also carry the container from any port in UK to XYZ warehouse in London. So its a typical CPT shipment

CPT Delivery Term Insurance Obligation 

CPT delivery term dont include,insurance, so its the buyer's obligation. 

CPT, "Cost Insurance Paid To" How to Calculate Price

When calculating the CPT price, the seller company, adds the profit share on the cost of the export product, the packaging cost, the inland transportation from the sellers facility to the port, the port costs, the customs costs, the freight cost and also inland delivery at destination country. When you calculated all this phases, CPT price is determined.

CPT Price Account: Product cost + profit share + packaging costs + loading in factory + inland transportation + port charges + customs expenses + freight cost + inland port charges + inland transportation at destination country

CPT Delivery Term: How it works

According to the CPT delivery method, the seller company should handle to all process and steps in CPT delivery term. Its also important to clear the ETA and agreed about the latest delivery time if the buyer company have any urgency. In everycase the seller company get the confirmation about the ETA and mention it on proforma invoice or sales contract. Its important to avoid future problems. 

CPT delivery term basicly using with truck deliveries. the seller company organize the truck shipment to agreed adress at destination point, it could be buyer's facility or any warehouse or point in buyer's country. CPT delivery terms also using for overseas shipments. In this scenerio; The truck or semi-trailer with ro-ro ships to the destination port. The truck continue to the road after the 

CPT Delivery In the form of Buyer and Seller's Responsibilities

Seller (Exporter) responsibilities CPT delivery Term
  • The seller load the container in his own facilities, 
  • The seller should arrange the international shipment
  • Organizes the inland transportation to reach container to harbour, 
  • Ensures that the cargo is loaded to the ship on time 
  • Complete the customs clearence
  • International shipment costs belong to the seller.

  • Inland transportation from destination port to agreed place in destination country

Buyer (Importer)
  • The buyer's responsibilities start when the goods reach to destination port/place
  • Customs clearance at destination point (in buyer's contry)
  • The buyer company should prepare the insurance covering all risks


CPT delivery is not populer as CIP or CIF in "group C". Mostly CIP is using instead of CPT
cause most companies dont know the difference between them.

The seller (exporter) company  should prepare the documents including: invoce, packing list, certificate or origin. Exporter company also should finish the customs clearence process

The seller (exporter) company handle the shipment process so they also managed the shipment with carrier company. As an advice, its better to send the Bill of lading draft to buyer (importer) company and get their confirmation before the Bill of lading done. 

The carrier company agent contact with buyer (importer) company before the ship reach to destination port and let them know about the arrival date and details about the goods. The seller company also should send the original documents to the buyer company before the ship arrives to destination port. The buyer company responsible for all demuraggae costs or any other extra expense at destination port, because of their faulty or latency about the customs clearence.

The seller (Exporter) company should send their export documents including; "invoice, packing list, certificate of origin, bill of lading and any other agreed  document" to the buyer by courier.

CPT delivery term is mostly using with roro shipments and also air shipments

CPT Delivery Term :  Responsibilities for Both Side

details CPTCostsRisks
PackagingSeller ie exporterSeller ie exporter
Internal shipment (to the harbour)Seller ie exporterSeller ie exporter
Customs clearenceSeller ie exporterSeller ie exporter
Port Loading (handling charges)Seller ie exporterSeller ie exporter
Shipment (main shipment charges)Seller ie exporterSeller ie exporter
InsuranceBuyer ie importerBuyer ie importer
Port Unloading at destination (handling)Seller ie exporterSeller ie exporter
Customs clearence at destinationBuyer ie importerBuyer ie importer
Internal shipment at destination ( (www.ihracat.co)Seller ie exporterSeller ie exporter


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CPT is one of the incoterms created to determine the authorities and responsibilities of exporters and importers. CPT incoterm is described in incoterms 2010 with all the details.
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