What Does CPT Mean In Shipping

Posted by FBASZ

CPT (Cargo Paid To) is an international trade term related to the sale of goods. It represents an agreement between the seller and buyer regarding the responsibilities and costs associated with the transportation of goods.

A CPT agreement requires the seller to arrange and pay for the transportation of the goods to a named destination (usually specified in the sales contract). This means that the seller is responsible for selecting the means of transport, booking transport services and ensuring that the goods are transported to the agreed destination. The seller is also responsible for paying associated shipping charges, which may include freight, handling and loading charges.

However, once the goods have been delivered to the named destination, the responsibility for the goods shifts from the seller to the buyer. This includes the risk of loss or damage to the goods. It is essential for the buyer to be ready to take possession of the goods and handle all further costs, such as unloading, customs duties, taxes, and inland transportation from the arrival point to the final destination.

In essence, CPT terms define the seller’s commitment to deliver the goods to a specified location, while the buyer assumes responsibility for the goods and associated costs once they arrive at the designated destination. It is crucial for both parties to clearly understand their obligations and the specific details outlined in the sales contract when using CPT terms in international trade transactions.