CPT shipping is suitable for all modes of transport including container and multimodal. Usually, the transport costs are included in the sales price. Delivery must be made within an agreed period or by a certain date. However, with CPT, the risk (damage, loss, etc.) already changes to the buyer when the goods are handed over to the first carrier or another named person (e.g. a freight forwarder). As with all C-clauses ("two-point clauses"), the transfer of costs and risks occurs at different points.
CPT Delivery: Precisely define handover and destination place
Two places are important and should be precisely defined: the place of CPT delivery and the place of destination. In the absence of more precise specifications as well as customary practices, the seller has the right to choose the exact place of delivery at their own discretion. There may be a risk that the place used may pose risks to the goods (e.g. damage or loss).
Since the CPT risk transfer takes place at the place of delivery when the goods are handed over to the first carrier, the exact specification of this place is essential to avoid disputes in the event of damage. The dispute as to whether handling costs at the terminal can be charged to the buyer is also averted if the precisely determined place of delivery is clearly upstream in the CPT supply chain.
Cost allocation for CPT Incoterms 2020
The costs of unloading at the place of destination shall be borne by the seller, unless otherwise agreed. Furthermore, the seller is responsible for CPT export handling, but not for CPT import or even transit via third countries. The buyer takes care of the customs formalities and pays the import duty. However, the seller must assist the buyer, if the buyer requests it, with the relevant documents or information, should these be necessary for the import.
In order for the buyer to be able to take out transport insurance, the seller is obliged to provide the correspondingly necessary information for this with regard to the freight.
Important: If damage occurs due to improper packaging or other actions or omissions on the part of the seller, the seller is liable for the damage. They are also liable for hidden defects, for example, not adhering to the shelf-life of the goods.