Carriage Paid To
“Carriage paid to…” means that the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier.
“Carrier” means any person who, in a contract of carriage, undertakes to perform or to procure the performance of carriage, by rail, road, sea, air, inland waterway or by a combination of such modes.
If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.
The CPT term requires the seller to clear the goods for export.
This term may be used for any mode of transport including multimodal transport.
A. The seller must
A.1 Provision of goods in conformity with the contract
Provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity which may be required by the contract.
A.2. Licences, authorisations and formalities
Obtain at his own risk and expense any export licence or other official authorisation and carry out all customs formalities necessary for the exportation of the goods.
A.3. Contract of carriage and insurance
a) Contract of carriage
Contract on usual terms at his own expense for the carriage of the goods to the agreed point at the named place of destination by a usual route and in a customary manner. If a point is not agreed or is not determined by practice, the seller may select the point at the named place of destination which best suits his purpose.
b) Contract of insurance
Deliver the goods into the custody of the carrier or, if there are subsequent carriers, to the first carrier, for transportation to the named place of destination on the date or within the period stipulated.
A.5. Transfer of risks
Subject to the provisions of B.5., bear all risks of loss of or damage to the goods until such time as they have been delivered in accordance with A.4.
A.6. Division of Costs
Subject to the provisions of B.6.
– pay the freight and all other costs resulting from A.3.a), as well as costs of loading the goods and any charges for unloading at the place of destination which may be included in the freight or incurred by the seller when contracting for carriage ;
– pay the costs of customs formalities necessary for exportation as well as all duties, taxes or other official charges payable upon exportation.
A.7. Notice to the buyer
Give the buyer sufficient notice that the goods have been delivered in accordance with A.4. as well as any other notice required in order to allow the buyer to take measures which are normally necessary to enable him to take the goods.
A.8. Proof of delivery, transport document or equivalent electronic message
Provide the buyer at the seller’s expense, if customary, with the usual transport document (for example, a negotiable bill of lading, a non-negotiable sea waybill, an inland waterway document, an air waybill, a railway consignment note, a road consignment note, or a multimodal transport document).
Where the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraph may be replaced by an equivalent electronic date interchange(EDI) message.
Pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods in accordance with A.4.
Provide at his own expense packaging (unless it is usual for the particular trade to send the goods of the contract description unpacked) which is required for the transport of the goods arranged by him. Packaging is to be marked appropriately.
A.10. Other obligations
Render the buyer at the latter’s request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages (other than those mentioned in A.8.) issued or transmitted in the country of dispatch and/or origin which the buyer may require for the importation of the goods and, where necessary, for their transit through another country.
Provide the buyer, upon request, with the necessary information for procuring insurance.
B. The buyer must
B.1. Payment of the price
Pay the price as provided in the contract of sale.
B.2. Licences, authorisations and formalities
Obtain at his own risk and expense any import licence or other official1 authorisation and carry out all customs formalities for the importation of the goods and, where necessary, for their transit through another country.
B.3. Contract of carriage
B.4. Taking delivery
Take delivery of the goods in accordance with A.4.
B.5. Transfer of risks
Bear all risks of loss of or damage to the goods from the time they have been delivered in accordance with A.4.
Should he fail to fulfil his obligations in accordance with B.2., bear all additional risks of loss of or damage to the goods incurred thereby and should he fail to give notice in accordance with B.7., or should the vessel named by him fail to arrive on time, or be unable to take the goods, or close for cargo earlier than the stipulated time, bear all risks of loss of or damage to the goods from the agreed date or the expiry date of the period stipulated for delivery provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
B.6. Division of costs
Pay all costs relating to the goods from the time they have been delivered in accordance with A.4.
Pay any additional costs incurred, either because the vessel named by him has failed to arrive on time, or will be unable to take the goods, or will close for cargo earlier than the stipulated time, or because the buyer has failed to fulfil his obligations in accordance with B.2., or to give appropriate notice in accordance with B.7. provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as the contract goods.
Pay all duties, taxes and other official charges as well as the costs of carrying out customs formalities payable upon exportation and importation of the goods and, where necessary, for their transit through another country.
Pay all costs and charges incurred by the seller in rendering assistance in accordance with A.2.
B.7. Notice to the seller
Whenever he is entitled to determine the time for dispatching the goods and/or destination, give the seller sufficient notice thereof.
B.8. Proof of delivery, transport document or equivalent electronic message
Accept the transport document in accordance with A.8. if it is in conformity with contract.
B.9. Inspection of goods
Pay, unless otherwise agreed, the costs of pre-shipment inspection except with mandated by the authorities of the country of exportation.
B.10. Other obligations
Pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A.l0. and reimburse those incurred by the seller in render his assistance in accordance therewith.