CPT stands for Carriage Paid To. Unlike FOB and FAS this incoterm can be used for various modes of transportation. Thus the CPT incoterm is versatile. Under this incoterm the seller is responsible for bringing the goods to the destination and payment of any cost related to international freight.
In CPT the transfer of risk is done when the goods have been loaded on board to the means of transport. The terminal operator makes the Terminal Handling Charges. There are chances that these charges may not be included in the freight rates, in such a case the buyer should enquire beforehand that if the CPT includes these charges to avoid complications.
The seller under CPT is responsible for the goods and their packaging and wrapping. The seller is also responsible for the documents required. He needs to gets custom clearance and pay for the international freight and as with most incoterms the seller pays for the inland transportation at the country of origin.
The buyer on the other hand is responsible for payment of goods, insurance of goods and arrival expenditure. With all other terms being same as FOB and FAS the buyer must also get a customs clearance at the arrival of the shipment.
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