Under CPT, the seller pays carriage to the named destination—but the buyer assumes cargo risk much earlier, when the goods are handed to the carrier. This practical guide explains how CPT works for air, sea, rail, road and multimodal shipments from China.
CPT means Carriage Paid To. Under CPT Incoterms 2020, the seller delivers the goods to a carrier contracted by the seller, completes export formalities and pays transport to the named place of destination.
The buyer takes the risk of loss or damage once the goods are handed to the carrier at the agreed place and point of delivery. The buyer normally handles import customs clearance, duties, taxes and any onward delivery not included in the carriage contract.
Incoterms® is a registered trademark of the International Chamber of Commerce. For the authoritative rule, consult the ICC Incoterms® 2020 resources. This operational guide is not legal or tax advice.
A precise CPT clause identifies both the early delivery point and the later named destination. This prevents disputes about cargo damage, terminal handling and duplicated charges.
The seller hands the goods to the agreed carrier. Delivery is completed and risk transfers to the buyer here. With several carriers, this is normally the first carrier unless the parties define another point.
Example: carrier warehouse in QingdaoThe seller contracts and pays carriage to this place. Whether unloading or terminal charges are included depends on the transport contract and the exact CPT wording.
Example: air cargo terminal in Frankfurt| Task or Cost | Penjual | Pembeli | Practical Note |
|---|---|---|---|
| Commercial goods and export packing | Responsible | — | Packaging must suit the agreed transport. |
| Delivery to the agreed carrier | Responsible | — | The exact delivery point should be named. |
| China export customs clearance | Responsible | Assist if needed | Licences and product data may be required. |
| Main carriage to named destination | Contracts and pays | — | Check what the carrier's rate includes. |
| Risk after carrier handover | — | Responsible | Risk may transfer before the main journey begins. |
| Asuransi kargo | No obligation | Recommended | Arrange cover from the risk-transfer point. |
| Transit/import customs formalities | — | Responsible | Includes import permits where applicable. |
| Import duty, VAT/GST and taxes | — | Responsible | CPT is not a duty-paid term. |
| Unloading and destination handling | Only if in carriage contract | Otherwise responsible | Confirm in writing to prevent double charging. |
| Final delivery beyond named destination | Only if expressly included | Normally responsible | Use a precise terminal, warehouse or address. |
Buyer and seller agree the goods, price, delivery point, named destination and “Incoterms® 2020.”
Seller prepares export packaging, marks, invoice, packing list and product information.
Seller or its Perusahaan pengurusan pengiriman barang di Tiongkok books the agreed route.
Goods are delivered to the carrier; the CPT risk transfer normally happens here.
Seller completes China export formalities. See Proses bea cukai di Tiongkok.
Cargo moves to the named destination by air, sea, road, rail or combined transport.
Buyer arranges import declarations and pays applicable duty and tax.
Buyer receives the cargo and arranges any final leg outside the CPT contract.
CPT is suitable for one mode or a combination of modes, making it useful for containerized and multimodal shipping from China.
For pure port-to-port sea or inland-waterway trade, parties may also compare CFR shipping. The correct rule depends on the actual delivery point and transport chain.
| Istilah | Seller Pays Main Carriage | Risk Transfers | Seller Insurance Duty | Transport Scope |
|---|---|---|---|---|
| CPT | Yes, to named destination | At carrier handover | Tidak | Any mode / multimodal |
| CIP | Yes, to named destination | At carrier handover | Yes, specified cover | Any mode / multimodal |
| DAP | Yes, to named place | At destination, ready for unloading | No buyer-cover obligation | Any mode / multimodal |
| CFR | Yes, to destination port | When goods are on board vessel | Tidak | Sea/inland waterway only |
CPT and CIP share the same delivery and risk-transfer logic; CIP additionally requires seller-arranged insurance. DAP keeps seller risk to the named destination. CFR is a maritime-only rule. Contract language and circumstances govern each shipment.
Useful when a Chinese supplier has a capable freight partner and can efficiently arrange export transport to a specified destination.
CPT can cover air cargo, container transport and multimodal routes without changing to a maritime-only trade term.
A clearly named destination helps buyers compare the remaining import, handling and final-delivery costs.
The buyer carries transport risk after carrier handover even while the seller pays the remaining freight.
Unlike CIP, CPT does not require the seller to insure the buyer's cargo risk.
Terminal, unloading, storage, import clearance and final delivery may remain outside the quoted CPT price.
BRF Logistics can coordinate the operational transport behind a CPT sale from China. The exact scope is confirmed shipment by shipment and should match the buyer–seller contract.
Factory collection, supplier coordination and delivery to the agreed warehouse or carrier facility.
Cargo receiving, package records, dimensions, photos and preparation for export transport.
Combine eligible commercial goods from multiple Chinese suppliers into one planned shipment.
China export declaration coordination using accurate cargo details and supporting documents.
FCL, LCL, air cargo and multimodal planning to the agreed named destination.
If CPT stops short of the buyer's address, compare DAP, DDP or another compliant door-to-door structure.
Send BRF Logistics the product name, HS code if available, pickup point, agreed carrier-handover point, named destination, cartons, weight, dimensions, cargo-ready date and special-cargo details.
CPT means the seller hands the goods to its contracted carrier, clears them for export and pays carriage to the named destination. Risk transfers to the buyer at carrier handover, not when the goods reach that destination.
The seller contracts and pays carriage to the named place of destination. The sales price may incorporate that freight cost. Costs after the named destination and charges not included in the carriage contract are normally for the buyer.
Risk transfers when the seller delivers the goods to the carrier at the agreed delivery point. In a transport chain with multiple carriers, it normally transfers at handover to the first carrier unless a different point is precisely agreed.
No. CPT does not require the seller to obtain insurance for the buyer. Because the buyer assumes risk at carrier handover, appropriate cargo insurance should be considered from that point.
The seller handles export formalities. The buyer normally completes transit and import formalities and pays import duty, VAT/GST and other taxes. CPT is not a duty-paid Incoterm.
Yes. CPT can be used for air, road, rail, sea and multimodal transportation. It is commonly considered for air cargo and containerized or combined transport.
Both terms use the same carrier-handover risk point and require the seller to pay carriage to the named destination. CIP additionally requires the seller to arrange the insurance specified by that rule; CPT does not.
Not automatically. CPT can name a terminal, port, airport, warehouse or other destination. Import clearance, tax and final delivery may still be the buyer's responsibility. If delivery to the final address is required, compare DAP or a properly structured DDP service.
