Glossary Discription

Carriage Paid To (CPT) is an International Commercial Term (Incoterm) established by the International Chamber of Commerce (ICC) that defines a delivery arrangement where the seller is responsible for arranging and paying for the transportation of goods to a named destination. Under CPT terms, the seller fulfills their delivery obligation when they hand over the goods to the first carrier at an agreed-upon point of origin, not at the final destination. This Incoterm is applicable to all modes of transport—including air, sea, road, rail, and multimodal shipments—making it one of the most versatile delivery terms in international trade. A critical distinction of CPT is that while the seller pays for carriage to the named destination, the risk of loss or damage transfers to the buyer much earlier, at the moment the goods are delivered to the first carrier. 

Key Characteristics

• Universal Transport Mode Applicability
• Distinct Risk and Cost Transfer Points
• Seller’s Transportation Obligations
• Buyer’s Risk Management Responsibility
• Contract Specification Requirements