CPT (Carriage Paid To)
From Supply Chain Management Encyclopedia
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In accordance with rules of Incoterms® 2010 <ref>Incoterms® 2010: ICC rules for the use of domestic and international trade terms – ICC Publication No 715E</ref> , the CPT (Carriage Paid To) may be used irrespective of the mode of transport selected and may also be used where more than one mode of transport is employed. The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between the parties). The seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. The seller fulfills its obligation to deliver when it hands the goods over to the carrier and not when the goods reach the place of destination. The parties are well advised to identify as precisely as possible in the contract both the ''place of delivery'', where the risk passes to the buyer, and the ''named place of destination'' to which the seller must contract for the carriage. If several carriers are used for the carriage to the agreed destination and the parties do not agree on a specific point of delivery, the ''default position'' is that risk passes when the goods have been delivered to the ''first carrier'' at a point entirely of the seller's choosing and over which the buyer has no control. Should the parties wish the risk to pass at a later stage (e.g., at an ocean port or airport), they need to specify this in their contract of sale. | In accordance with rules of Incoterms® 2010 <ref>Incoterms® 2010: ICC rules for the use of domestic and international trade terms – ICC Publication No 715E</ref> , the CPT (Carriage Paid To) may be used irrespective of the mode of transport selected and may also be used where more than one mode of transport is employed. The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between the parties). The seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. The seller fulfills its obligation to deliver when it hands the goods over to the carrier and not when the goods reach the place of destination. The parties are well advised to identify as precisely as possible in the contract both the ''place of delivery'', where the risk passes to the buyer, and the ''named place of destination'' to which the seller must contract for the carriage. If several carriers are used for the carriage to the agreed destination and the parties do not agree on a specific point of delivery, the ''default position'' is that risk passes when the goods have been delivered to the ''first carrier'' at a point entirely of the seller's choosing and over which the buyer has no control. Should the parties wish the risk to pass at a later stage (e.g., at an ocean port or airport), they need to specify this in their contract of sale. | ||
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| + | The parties are also well advised to identify as precisely as possible the point within the agreed place of destination, as the costs to that point are for the account of the seller. The seller is advised to procure contracts of carriage that match this choice precisely. If the seller incurs costs under its contract of carriage related to unloading at the named place of destination, the seller is not entitled to recover such costs from the buyer unless otherwise agreed between the parties. The CPT requires the seller to clear the goods for export, where applicable. However, the seller has no obligation to clear the goods for import, pay any import duty or carry out any import customs formalities. | ||
=='''References'''== | =='''References'''== | ||
<references /> | <references /> | ||
Revision as of 20:51, 16 July 2011
General Provisions
In accordance with rules of Incoterms® 2010 [1] , the CPT (Carriage Paid To) may be used irrespective of the mode of transport selected and may also be used where more than one mode of transport is employed. The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between the parties). The seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. The seller fulfills its obligation to deliver when it hands the goods over to the carrier and not when the goods reach the place of destination. The parties are well advised to identify as precisely as possible in the contract both the place of delivery, where the risk passes to the buyer, and the named place of destination to which the seller must contract for the carriage. If several carriers are used for the carriage to the agreed destination and the parties do not agree on a specific point of delivery, the default position is that risk passes when the goods have been delivered to the first carrier at a point entirely of the seller's choosing and over which the buyer has no control. Should the parties wish the risk to pass at a later stage (e.g., at an ocean port or airport), they need to specify this in their contract of sale.
The parties are also well advised to identify as precisely as possible the point within the agreed place of destination, as the costs to that point are for the account of the seller. The seller is advised to procure contracts of carriage that match this choice precisely. If the seller incurs costs under its contract of carriage related to unloading at the named place of destination, the seller is not entitled to recover such costs from the buyer unless otherwise agreed between the parties. The CPT requires the seller to clear the goods for export, where applicable. However, the seller has no obligation to clear the goods for import, pay any import duty or carry out any import customs formalities.
References
- ↑ Incoterms® 2010: ICC rules for the use of domestic and international trade terms – ICC Publication No 715E
