01Obligations under CPT
Seller: Export clearance, main carriage to destination, handover to first carrier.
Buyer: Risk from first carrier, import clearance, insurance, on-carriage from destination.
The precise split of the 10 obligation pairs (A1–A10 / B1–B10) is binding under the ICC Incoterms 2020 rules.
02Risk and cost transfer
Risk transfer: At handover to the first carrier.
Cost transfer: Seller pays carriage to named destination.
For several Incoterms, the risk and cost points do not coincide — this is the biggest source of misunderstanding in international trade. Cargo insurance should always be aligned with the risk transfer point, not the cost transfer point.
03When to use CPT
Functionally similar to CFR but for all transport modes. Critical: risk and cost transfer at different points — a frequent source of dispute when cargo is damaged in transit.
Before choosing, verify: Can both parties operationally handle customs, carriage and insurance in the respective country? Are there tax implications (e.g. VAT under DDP)? Which documents (commercial invoice, certificate of origin, B/L, CMR, AWB) are required?
04Common pitfalls
1) Mode mismatch: CPT works for all modes — but always specify the named place precisely (city, country, optionally a terminal code) on the commercial invoice.
2) On-board notation: For sea Incoterms, a correct on-board notation on the B/L is critical for letter-of-credit settlement.
3) Insurance cover: Explicitly agree ICC A / B / C and the sum insured.
Questions fréquentes
What does CPT mean in practice?
Seller pays freight to named destination, but risk transfers at the first carrier. Applicable to any mode of transport. Risk transfer: At handover to the first carrier.
Who pays cargo insurance under CPT?
No mandatory insurance. The buyer bears the risk from the transfer point onwards and should insure accordingly.
Is CPT suitable for containers?
Yes. The term applies to all modes, including container transport.