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Customs brokerage and international shipping terms guidance

Incoterms® 2020

CPT - Carriage Paid To

Under CPT, the seller arranges and pays carriage to the named destination place, but risk transfers when the goods are handed to the first carrier.

Any mode · Named place of destination

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CPT at a glance

Under CPT, the seller arranges and pays carriage to the named destination place, but risk transfers when the goods are handed to the first carrier.

Any mode or multimodalInsurance required by the rule: No

Shipment

Named location
Named place of destination
Delivery point
When goods are handed to the first carrier
Risk transfer
When goods are handed to the first carrier

Responsibilities

Main carriage
Seller arranges and pays
Export clearance
Seller
Import clearance
Buyer
Insurance
CPT does not require the seller to contract for cargo insurance (compare CIP).

Contract

Common comparison
Compare with CIPCIP adds a seller insurance obligation.

Illustrative notation: CPT Rotterdam warehouse, Incoterms® 2020. Customize and copy below ->

Responsibility journey

Delivery point
When goods are handed to the first carrier
Risk transfer
When goods are handed to the first carrier
Seller sideBuyer sideDelivery + risk transfer

  1. Seller / exporter

    Cost
    Seller

  2. Origin pickup

    Cost
    Seller

  3. Export clearance

    Cost
    Seller
    Export
    Seller

  4. Origin terminal

    Cost
    Seller

  5. Carrier handoff

    Cost
    Seller
    Handoff
    Delivery + risk transfer

  6. Main carriage

    Cost
    Seller

  7. Destination terminal

    Cost
    Buyer

  8. Import clearance

    Cost
    Buyer
    Import
    Buyer

  9. Final delivery

    Cost
    Buyer

  10. Buyer / importer

    Cost
    Buyer
Text alternative for CPT: Seller-paid cost through Main carriage. Delivery occurs at Carrier handoff. Risk transfer at Carrier handoff. Insurance: CPT does not require the seller to contract for cargo insurance (compare CIP). Export clearance: Seller. Import clearance: Buyer. Main carriage: Seller.

Who pays what under CPT?

CPT separates cost and risk: the seller pays main carriage, while risk usually moves earlier at origin handoff to the carrier.

Seller does

  • Contract and pay for carriage to the named place of destination
  • Deliver goods to the first carrier
  • Complete export clearance

Buyer does

  • Bear risk after handoff to the first carrier
  • Handle import clearance
  • Arrange insurance if desired

Not determined by the CPT rule alone

  • Seller cargo insurance obligation

When to use CPT

When CPT fits

  • Multimodal lanes where the seller should book freight but risk transfers at origin

When to use CPT with caution

  • Buyers who assume risk only transfers at destination because the seller paid freight

CPT shipment example

A seller pays air freight to a named destination airport. Risk transfers when the cargo is handed to the first carrier at origin, even though the seller’s freight contract continues to destination.

Common mistakes

  • Confusing CPT with destination delivery terms such as DAP
  • Assuming CPT includes insurance like CIP

How do you write CPT in a contract?

Include the acronym, the exact named location, and the edition.

Contract notation builder

Build an illustrative line with the acronym, named place or port, and Incoterms® 2020. Parties must agree the exact location; this does not create a contract.

CPT Rotterdam warehouse, Incoterms® 2020

Edition is fixed to Incoterms® 2020. Catalog example: CPT Rotterdam warehouse, Incoterms® 2020

Does CPT include insurance?

CPT does not require the seller to contract for cargo insurance (compare CIP).

CPT compared with related terms

Use these comparisons when the shipment mode, handoff point, or insurance need does not match CPT.

  • CPT vs. CIP

    CIP adds a seller insurance obligation.

    CIP adds a seller insurance obligation.

    Open CIP details ->

  • CPT vs. CFR

    CFR is sea/inland-waterway only and uses a named port of destination.

    CFR is sea/inland-waterway only and uses a named port of destination.

    Open CFR details ->

  • CPT vs. DAP

    DAP keeps risk with the seller until destination arrival (not unloaded).

    DAP keeps risk with the seller until destination arrival (not unloaded).

    Open DAP details ->

View all Incoterms(R) 2020 terms in the comparison matrix

Frequently asked questions

Does CPT include insurance?

No. CPT Incoterms® 2020 does not require either party to buy cargo insurance. CIP is the related term with a seller insurance obligation.

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Unsure which shipping term fits your movement?

Talk with a Crane trade or customs specialist about transport mode, handoff points, documentation, and clearance responsibilities. This guidance is educational and is not legal advice; the parties remain responsible for selecting contractual terms.

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Last reviewed July 30, 2026. Edition reference: Incoterms® 2020 (not a new calendar-year edition).