Carriage Paid To
CPTThe seller pays carriage to the named destination, but risk passes much earlier when goods are handed to the first carrier.
Last reviewed: 30 September 2026
Professional definition
The seller pays carriage to the named destination, but risk passes much earlier when goods are handed to the first carrier. The named place must be stated precisely and the parties should identify the Incoterms® 2020 version.
Example
A Manchester seller pays air freight to Dubai, while the buyer bears risk once the airline receives the cargo in Manchester.
Where it is used
Any mode. Name the destination to which freight is paid and separately identify the delivery point if needed.
CPT responsibilities
Seller
- Clear goods for export
- Deliver to the first carrier
- Contract and pay carriage to the named destination
- Provide the transport document
Buyer
- Bear risk after first-carrier delivery
- Arrange insurance if wanted
- Handle import clearance and onward delivery after the named point
- Delivery point
- Name the destination to which freight is paid and separately identify the delivery point if needed.
- Risk transfer
- Transfers when the seller hands the goods to the first carrier, not when they reach the paid destination.
- Cost responsibilities
- Seller pays export and carriage to the named destination. Buyer pays import clearance and costs not included in the seller's carriage contract.
- Insurance
- Neither party must insure; the buyer should consider cover from first-carrier handover.
- Customs
- Export: Seller. Import: Buyer. Seller pays export duties/taxes; buyer pays import duty, import VAT and clearance charges.
Common mistakes and things to remember
Incoterms® allocate delivery, risk, cost and customs tasks; they do not determine title, payment, product compliance or every contract obligation.
Source
Use the linked authority and applicable national guidance for current requirements.