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CPT incoterms (2020)
Understanding CPT Incoterms with EDS Logistics
Written by Mathilda
As a leading logistics service provider, EDS Logistics understands the importance of incoterms in international trade. One of the most widely used incoterms is CPT in Air freight, which stands for Carriage Paid To. In this article, we will explore the CPT Incoterms, including the latest revision, CPT 2020 Incoterms, and who pays for freight in these terms.
CPT Incoterms Explained
CPT Incoterms specify the obligations and risks of both the buyer and seller in international transactions. With CPT Incoterms, the seller is responsible for arranging and paying for the transportation of goods up to the agreed-upon destination. This means that the seller is responsible for all costs and risks associated with the transportation of the goods, including loading, shipping, and unloading.
Once the goods have been delivered to the agreed-upon destination, the buyer is responsible for any costs and risks associated with the goods. This includes any customs duties, taxes, or other charges that may be imposed by the destination country. It is important to note that CPT Incoterms do not cover insurance or other additional costs, and these should be negotiated separately.
CPT 2020 Incoterms
The latest revision of CPT Incoterms is CPT 2020 Incoterms, which came into effect on January 1, 2020. CPT 2020 Incoterms include some significant changes to the previous version, including:
Insurance
CPT 2020 Incoterms clarify that the seller is only required to obtain insurance for the minimum coverage, and any additional insurance must be negotiated separately.
Electronic communication
CPT 2020 Incoterms allow for electronic communication, such as email or electronic data interchange (EDI), to be used for notifications and documents.
Costs
CPT 2020 Incoterms specify that the seller is responsible for all costs associated with obtaining any documents or permits required for the transportation of the goods.
Seller Pays Freight in CPT Incoterms
One of the most common questions about CPT Incoterms is who pays for the freight. In CPT Incoterms, the seller is responsible for paying the freight charges for transporting the goods to the agreed-upon destination. This includes all costs associated with loading, shipping, and unloading the goods, as well as any other charges that may be incurred during transportation.
Once the goods have been delivered to the destination, the buyer is responsible for any further transportation costs or charges associated with the goods. This includes any costs associated with the goods once they are in the possession of the buyer, such as storage, handling, or transportation to their final destination.
Seller and Buyer duties in CPT
CPT Incoterm are an essential part of international trade, and understanding them is crucial for both buyers and sellers. With CPT Incoterms, the seller is responsible for arranging and paying for the transportation of goods up to the agreed-upon destination, while the buyer is responsible for any costs and risks associated with the goods once they have been delivered. When it comes to who pays for the freight, the seller is responsible for all transportation costs associated with the goods up to the agreed-upon destination. As a logistics service provider, EDS Logistics is committed to helping our clients navigate the complexities of international trade and ensuring that their shipments arrive safely and on time.
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FAQ
What are the responsibilities of the seller under CPT Incoterms?
In CPT Incoterms is the seller responsible for arranging and paying for the transportation of goods up to the agreed-upon destination, including loading, shipping, and unloading.
What are the responsibilities of the buyer under CPT Incoterms?
Once the goods have been delivered to the agreed-upon destination, the buyer is responsible for any costs and risks associated with the goods, such as customs duties, taxes, or other charges that may be imposed by the destination country.
Does CPT Incoterms cover insurance?
CPT Incoterms do not cover insurance or other additional costs, which should be negotiated separately.
Who pays for the freight in CPT Incoterms?
The seller is responsible for paying for the freight charges for transporting the goods to the agreed-upon destination under CPT Incoterms.
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