This term may be used irrespective of the chosen mode of transport and by using more than one mode of transport.
"Carriage paid to" means that the seller sends product to the carrier or other person nominated by the seller in the agreed place (if such a place is agreed by the parties) and that the seller is obliged to enter into a contract of carriage and bear the transportation costs necessary to deliver the goods to the agreed destination.
Using the term CPT, the seller fulfills his obligation to deliver when he delivers the goods to the carrier, and not when the goods reach their destination.
This term contains two critical points, since risk and expense pass in two different places. It is recommended that the parties as clearly as possible determine in the contract the place of delivery of the goods at which the risk passes to the buyer, as well as the named destination, to which the seller is obliged to conclude a contract of carriage. delivery point, the disadvantage is that the risk passes when the goods are transferred to the first carrier at the point the choice of which depends entirely on the seller and which Out of control of the buyer.
If the parties intend for the transfer of risk to take place at a later stage (i.e. at the seaport or at the airport), this must be specified in the contract. The parties are also encouraged to determine as accurately as possible the point at the agreed place of destination, since the costs to that point are borne by the seller. The seller is advised to provide contracts of carriage that accurately reflect this choice. If the seller, under his contract of carriage, bears the costs of unloading at the agreed place of destination, the seller is not entitled to demand compensation from the buyer for such costs, unless otherwise agreed by the parties.
The CPT requires the seller to complete customs formalities for exportation, if any. However, the seller is not obliged to carry out import customs formalities, pay import duties or perform other import customs formalities.
Term CPT It is convenient for the importer, because the exporter takes on organizational issues with the delivery of the goods and their insurance. But all these costs, the seller will still include in the price of the goods.
Find out what you need to consider and take when choosing CPTClose the list of actions for CPT
to clarify in detail the parameters and characteristics of the packages (including labeling), this is necessary for the subsequent customs clearance of goods;
clearly coordinate with the seller the port of delivery of the goods;
determine in the contract the place of delivery of the goods, since the seller fulfills his obligations for delivery when he transfers the goods to the carrier;
agree with the insurance company the terms of insurance, if necessary;
This list is not complete and depends on the specific case, under these conditions of delivery, the seller's logisticians may give a lower freight cost compared to, for example, FOB, but it may happen that in the end, due to the fact that the buyer pays various port charges at the port of arrival and this increases the total cost, it is also not recommended to use this term if cargo It is planned to ship further across Russia in container trains.
1. General obligations of the seller and the buyer under the terms of CPT
A.1.The seller is obliged, in accordance with the contract of sale, to provide the buyer with the goods, the commercial invoiceinvoice, as well as any other proof of compliance of the goods with the terms of the contract of sale, which may be required under the terms of the contract. Any document referred to in paragraphs A1-A10 may be replaced by an equivalent electronic record or procedure if agreed by the parties or is common.
V.1. The buyer is obliged to pay the price of the goods, as provided for in the contract of sale. Any document referred to in paragraphs B1-B10 may be in the form of an equivalent electronic record or other procedure, if agreed by the parties or is common.
2.Licenses, permits, security control and other formalities under CPT conditions
A.2.If required, the seller must, at his own expense and risk, to obtain an export license or other official authorization and carry out all customs formalities necessary for the export of goods and their transport through any country prior to delivery of the goods.
V.2.If required, the buyer must obtain at his own expense and risk, import license or other official authorization and carry out all customs formalities for the import of goods and its transportation through any country.
3. Contracts of carriage and insurance under CPT conditions
A.3.a) Contract of carriage The seller must conclude or secure the conclusion of the contract of carriage of the goods from the named delivery point, if it is specified, or from the place of delivery to the named place of destination or, if agreed, to any point in such place. The contract of carriage must be concluded on normal terms at the seller's expense and provide for transportation in the usual way and in the usual way. If a particular item is not agreed or can not be determined based on practice, the seller can choose the delivery point or item at the agreed destination, which is most suitable for its purposes. b) Contract of insurance The seller no duty to the buyer under a contract of insurance. However, the seller must provide the buyer, at his request, at his risk and expense (in the presence of costs) the information necessary for the buyer of insurance.
V.3.a) Contract of carriage The buyer has no obligation to the seller to conclude a contract of carriage. b) Contract of insurance The buyer has no obligation to the seller to conclude a contract of insurance. However, the buyer must provide the seller, at his request, the information necessary for the conclusion of the insurance contract.
4. Delivery and acceptance of goods under CPT conditions
A.4.The seller must deliver the goods by transferring it to the carrier with whom a contract in accordance with paragraph A3 on the date or within the agreed period.
V.4.The buyer must take delivery of the goods as soon as they have been delivered in accordance with paragraph A4, and receive them from the carrier at the named place of destination.
5. Transfer of risks under conditions of CRT
A.5.Seller shall bear all loss or damage to the goods until it is delivered in accordance with paragraph A4, with the exception of the risks of loss or damage in the circumstances referred to in paragraph B5.
V.5.The buyer bears all risks of loss or damage to the goods from the moment of delivery in accordance with paragraph A4. At default by the buyer obligations to provide notification in accordance with paragraph B7, he shall bear all risks of loss or damage to the goods from the agreed date or the date on which expired the agreed delivery period, provided that the goods were explicitly individualized as a commodity, which is the subject agreement.
6 Cost allocation under CPT conditions
A.6.The seller must pay:
all expenses related to the goods until the time of their delivery in accordance with paragraph А4, with the exception of expenses paid by the buyer, as provided for in paragraph Bb;
freight and other expenses specified in clause A3 a), including the costs of loading the goods and any fees in connection with unloading the goods at the destination, which are borne by the seller under the contract of carriage;
if necessary, the cost of the customs formalities required for the export of goods, as well as duties, taxes and fees paid for export, as well as the cost of its transportation through third countries, if they are charged to the seller under the terms of the contract of carriage.
V.6.The buyer must, subject to the provisions of paragraph A3, pay:
all expenses related to the goods from the moment of their delivery in accordance with paragraph А4, except, if applicable, the cost of customs formalities for the export of goods, as well as taxes, fees and other expenses payable during export, as provided for in paragraph А6 with);
all costs and charges relating to the goods during transit prior to their arrival at the agreed destination, unless such costs and charges are incurred under the contract of carriage to the seller; c) the costs of unloading, unless such costs are borne by the seller under the contract of carriage;
any additional costs incurred due to the seller’s failure to send the notice in accordance with paragraph 7, from the agreed date or from the date of expiration of the agreed period for shipment, provided that the goods were explicitly individualized as goods subject to the contract;
if applicable, the costs of paying taxes, duties and other official charges, as well as the performance of customs formalities payable when importing goods, and the cost of transporting it through any country, unless such costs and charges are not included in the contract of carriage to the seller .
7.Notification to buyer and seller under CPT conditions
A.7.The seller must give the buyer notice that the goods have been delivered in accordance with paragraph A4. The seller must give the buyer a notice to provide the customer the possibility of adopting such measures, which are usually needed to get the goods by the buyer.
V.7.If the buyer is entitled to determine the time for shipment and / or a named destination or point of receipt of goods in this place, he must account to the seller due notice thereof.
8.Documentary proof of delivery under CPT conditions
A.8.If it is customary at the request of the buyer or the seller, at his own expense, must provide the buyer with the usual transport document (of), in accordance with the contract of carriage concluded pursuant A3. The transport document shall indicate the goods under the contract and be dated within the agreed period of shipment. If it is agreed or is generally accepted, the document should also provide the buyer to claim the goods from the carrier at the named place of destination and allow the buyer to sell the goods during transit through the transfer of subsequent buyer or by notification to the carrier. If the transport document is negotiable and issued in several originals, a buyer must be a full set of originals.
V.8.The buyer must accept the transport document issued in accordance with paragraph A8 if it complies with the conditions of the contract.
9.Checking, packaging, marking and inspection of goods under CPT conditions
A.9.The seller must pay all costs associated with checking (checking quality, measuring, weighing, counting) which are necessary for the delivery of goods in accordance with paragraph A4, as well as the costs of inspection of goods before shipment, which is prescribed by the authorities of the exporting country. The seller must, at his own expense, ensure the packing of the goods, unless it is customary in the industry to ship the goods specified in the contract in unpacked packaging. The seller may pack the goods in such a way as is necessary for his transportation, unless the buyer informs the seller about the specific packaging requirements before entering into the contract. Marking packaged goods must be properly implemented.
V.9.The buyer must pay the costs for the mandatory inspection of goods prior to shipment, except when such inspection is carried out by order of the authorities of the exporting country.
10. Assistance in obtaining information and related costs under CPT conditions
A.10.If need be, the seller is obliged to provide the purchaser or to assist him in obtaining, at the request of the buyer, at his risk and expense, documents and information, including important safety information, which may require the buyer to the goods import and / or transport it to the final destination. The seller is obliged to compensate the buyer for all costs and charges incurred by the buyer in obtaining or providing assistance in obtaining documents and information as provided for in paragraph B10.
V.10.The buyer must notify the seller in a timely manner the requirements with regard to safety information, so that the seller could act in accordance with paragraph A10. The buyer must reimburse the seller for all costs and charges for providing or rendering assistance in obtaining documents and information, as provided in paragraph A10. If required, the buyer is obliged to provide the seller or facilitate in the seller receiving, at the request of the seller, at his risk and expense, documents and information, including important safety information, which may require the seller to transport, export of goods and for their transport through any country.
The Federal Customs Service and the Federal Tax Service of the Russian Federation have approved an electronic check format for returning VAT to foreign citizens when exporting goods purchased in Russia.