Incoterms & Delivery Terms
CPT
Also known as: Carriage Paid To
Carriage Paid To is the multimodal counterpart of CFR: the seller contracts and pays for carriage to the named destination, but risk passes to the buyer much earlier, at the point where the goods are handed to the first carrier. This split between where risk transfers (origin) and where the seller's cost obligation ends (destination) is the defining feature of the 'C' family of Incoterms and a frequent source of insurance gaps. CIP is the same term with the added requirement that the seller also buy transport insurance for the buyer.
CPT is CFR for the container era — carriage paid to the destination, risk passing much earlier, at the first carrier. The gap between where risk passes and where the seller stops paying is wider than most buyers assume, and it is entirely uninsured unless you arrange cover.
Where it matters for compliance
- Carriage costs to the named destination are in the price and are deductible from customs value where identified.
Related terms
Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.