CIP - Both Transportation and Insurance from the Seller!" | Delivery Methods in Foreign Trade #4

Описание: In the third video of our foreign trade forms of delivery series, we discuss the CPT - Carriage Paid To rule. CPT is one of the most prominent forms of delivery under Incoterms 2020 because the cost and risk of transportation are borne by different parties.

In this form of delivery, the seller is obliged to transport the goods to the designated destination and pay the transportation fee. But beware: the risk passes to the buyer as soon as the goods are delivered to the first carrier. In other words, even if the transportation fee belongs to the seller, the buyer is responsible for any damages and losses that may occur during the journey.

📌 CPT Highlights:

The seller pays the transportation cost.

Risk passes to the buyer at the time of delivery to the carrier.

Insurance is not compulsory (this is the main difference with CIP).

It can be used for all modes of transportation.

This mode of delivery is suitable for parties who want to leave partial control of transportation with the seller but want to transfer the risk early.
CPT offers both a safe and strategic middle ground in foreign trade.

Remember:
💼 Cost is on the seller,
⚠️ Risk is on the buyer,
📦 Responsibility ends when the goods are handed over to the carrier!

#finance #economy #globalfinancialsystem #foreigntrade #export