What is CPT delivery?

The large-scale development of transport logistics, associated primarily with the dynamic development of many regions, entails an increase in the number of suppliers. Many of them still poorly represent all the nuances associated with transportation, which are regulated by international law. For example, it is very important to understand the terms of CPT supply that are quite common in trade contracts.

In international practice, the terms of delivery of CPT provide for the seller’s obligations to deliver the goods to the buyer who paid for it, but not the transportation. That is, all the obligations to pay for services related to the delivery of goods are undertaken by the buyer. This is the most important clause of the cpt delivery terms.

The international interpretation of the CPT delivery basis is expressed as "Carriage paid to" or "Carriage paid to." The buyer is responsible for all risks that may arise during the transportation of goods. Therefore, he has every reason, for example, to insure the cargo. And as a “freight carrier” any legal or natural person acts, which, according to the supply agreement, fulfills its obligations to deliver the goods in the agreed manner (by rail, road, air, sea or mixed (multimodal) mode of transport).

CPT delivery terms also imply a type of delivery of goods in which several suppliers can participate in the transportation process. In this case, all the risks of cargo safety pass at the time of its actual transfer from one vehicle to another. In addition, all customs formalities are also the responsibility of the seller. It is important to understand that when using the services of a third-party carrier with the consent of both parties to the transaction, all responsibility passes to the supplier at the time of transfer of the goods to him.

In this case, the seller’s responsibility is returned to him at the point of delivery of the goods, which is indicated in the documents for transportation. From the above description of the terms of delivery of CPT, it is obvious that the contract of sale concluded under such conditions implies the maximum responsibility of the seller.

Risk Transfer Procedure

It is necessary to take into account the key points of delivery of goods at which they are transferred. Since this procedure occurs at least twice in any transaction, all its participants (seller, buyer and carrier or carriers) should clearly distribute their responsibility. This is especially true for PRR (loading operations), during which it is recommended to have step-by-step instructions.

The practice of life and the imperfection of Russian legislation show that in the situation with several freight carriers and the absence of an exact delivery point, a contradiction may arise precisely between the first carrier and the subsequent ones. As a rule, the first carrier listed in the documents by default assumes all risks regarding the safety of the goods and discrepancies in the documents. To avoid this flagrant injustice, all parties to the delivery of goods should provide in documentary form (in the contract of sale, contract of carriage and shipping documents) all the key points of transfer of responsibility.

Otherwise, critical moments will be resolved exclusively in court. And such a sad practice, for example, is available for the CPT-Moscow delivery terms. There were cases when suppliers of building materials were left without cargo and money due to the fact that unscrupulous carriers simply stole someone else's property.

Destination and other nuances

An important point in the terms of delivery of CPT DAP ("Delivered At Point" or "Delivery at Point" - the specified name of the destination) is the exact name of the final delivery point of the goods. Indeed, it is the destination under the given delivery conditions that is key in terms of the transfer of responsibility of the parties. At this point, the transport and logistics company transfers all the risks of cargo safety to the seller. And he, in turn, provides the goods here to the buyer after he fulfills all his obligations according to the contract of sale. A specific feature of the CPT delivery conditions is that the goods are unloaded in the destination metro at the seller’s expense, unless otherwise specified in the delivery contract.

It should be borne in mind that the supplier must familiarize the buyer with the goods delivered to the destination. In this context, the standard package of shipping documents (invoice, packing list, certificates of conformity, etc.) is usually used, which can be certified by electronic signature according to the terms of the contract. If necessary, the seller, at his own expense and with his own efforts, prepares all export documents, including the requirements of customs control, which are necessary for the transportation of a particular cargo. Also, the seller is directly responsible for drawing up a delivery contract with the carrier, which indicates the specific place of delivery. In this clause of the contract there is one nuance related to the degree of specification of the place of delivery.

This is necessary (an exact indication of the place of delivery) in order to avoid unjustified overstatement of goods delivery services by the seller. In addition, if such a situation did occur, the seller has the right to independently decide where it is necessary to unload and transfer the goods. Regarding cargo insurance, it should be noted that this procedure is entirely in the buyer's responsibility. However, the seller is obliged to provide any thematic information upon his first request.

Cost sharing

Except for the cases described above, which were agreed separately, all the expenses until the delivery of the goods to the destination, including unloading, are borne by the seller. That is, his immediate responsibilities include paying for the services of a carrier or carriers. An exception can only be the situation, separately agreed in advance and spelled out in the relevant documents. An important point is the customs formality at the border, which is paid by the seller exclusively within the framework of the contract. This means that in the absence of the seller’s obligations according to the purchase and sale agreement concluded with the buyer, the standard terms of delivery of CPT do not imply this procedure at his expense.

In addition, all costs associated with checking the goods, weighing and labeling, packaging and packaging are fully considered the seller’s responsibility.