Currently, CPT is one of the most commonly used Incoterms 2010 delivery terms. You will inevitably have to do with incoterms 2010 when doing work in the import and export industry. So what is the CPT condition? What are the advantages and disadvantages of the parties? Please also Giaiphapdonggoi.net find out!
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1. What is the CPT condition?
The CPT term stands for “Carriage Paid To”, which is an international trade term that means that the seller delivers the goods at their own expense to the carrier nominated by the seller.
What is the CPT condition?
The carrier may be the person or organization responsible for the transportation (by sea, rail, road, etc.) of the goods, or the person or organization employed to purchase the goods. CPT prices will likely include a terminal handling fee (THC) in their freight rates.
CPT terms are Incoterms, which are a set of standardized international trade terms published by the International Chamber of Commerce.
In a CPT transaction, the seller must clear the goods for export and deliver the goods to the carrier or nominated person at the place agreed between the two parties, the seller and the buyer. In addition, the seller pays freight costs to deliver the goods to the specified place.
The risk encountered, such as damage to or loss of the goods, passes from the seller to the buyer as soon as the goods are delivered to the carrier. The seller is solely responsible for arranging the carriage of the goods to the final destination and shall not be liable for insurance in the carriage of the goods during transit.
The term CPT is often used in conjunction with a destination. For example, CPT Chicago says that the seller pays the freight to Chicago.
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2. Advantages and disadvantages of CPT . condition
The pros and cons of CPT terms depend on which side of the transaction you are on: buyer or seller. The advantage of CPT for the buyer is to significantly reduce the risk during the transportation of goods. This, in turn, increases the risk of freight for the seller as he or she is liable for any loss or damage until the goods have reached the carrier.
However, the CPT condition can be advantageous for the seller in that it can make the buyer more inclined to buy. For example, if a buyer is looking to buy a product, but is hesitant because of the risk of shipping from a distant supplier, they may not buy or they may buy from a supplier closer but not necessarily. must be better. If the supplier is responsible for all costs until it reaches the carrier, reducing the risk for the buyer, the buyer may be more inclined to purchase the goods.
The CPT term is also beneficial to the buyer as it eliminates the complexity of all the paperwork. The seller has handled all legal aspects of shipping the goods, such as arranging the carrier, taking care of customs duties, taxes and other formalities related to the export of the goods. .
Advantage
Reduce shipping risks for the buyer of the goods.
Help sellers sell goods by assuming a large portion of the shipping risk.
Buyer will not be responsible for handling export inquiries and export fees.
Defect
Increased risk for the seller..
If the goods are shipped by sea or by air, the risk is higher for the buyer because the buyer bears the risk from the point of view of the first carrier, usually a truck.
Buyer will be responsible for transit clearance.
3. Responsibilities of seller and buyer under CPT
Responsibilities of seller and buyer under CPT
For the seller
Export Packaging: Sellers are required to pack the products sold in suitable export packaging.
Loading Fees: In the event of charges incurred while the goods are loaded onto the truck at the seller's warehouse, the seller is responsible.
Delivery to Port/Place: The seller bears all costs associated with the carriage of the loaded goods to the port or place of export.
Origin Terminal Processing Fees: Also known as OTHC, these costs must be paid by the seller at the origin terminal.
Loading the goods on the transport vehicle: The cost of loading the goods on the means of transport is the responsibility of the seller.
Shipping Fee: This is the shipping fee paid by the seller.
Destination Terminal Handling Fees: Also known as DTHC, the seller must also pay these costs at the destination terminal.
For buyers
Insurance: Although not required, in case, the buyer wishes to purchase a China cargo insurance policy for their shipment, the cost of insurance is either the buyer's responsibility or must be negotiated with seller before ordering.
Delivery to destination: After the goods are unloaded
carrier, the buyer is responsible for delivering the goods to their final destination.
Unloading at destination: Sometimes, there is an unloading fee at the warehouse when the goods arrive. If any costs are incurred, the buyer is responsible for paying these fees.
Import duties, taxes and customs clearance: Buyer must pay all import charges. This includes customs checks, dumming, fines or holding fees.
Above is some information about CPT conditions that Giaiphapdonggoi.net wants to share with you, hopefully it will help you somewhat. Good luck!
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