What Is CPT Delivery

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What Is CPT Delivery
What Is CPT Delivery

Video: What Is CPT Delivery

Video: What Is CPT Delivery
Video: Carriage Paid To (CPT) - Incoterm Explained in Hindi 2024, November
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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 have a poor understanding of all the nuances associated with transportation, which are regulated by international law. For example, it is very important to understand the CPT delivery terms, which are quite common in trade contracts.

CPT delivery terms are very common
CPT delivery terms are very common

In international practice, the CPT delivery terms stipulate the seller's obligations to deliver the goods to the buyer who paid for it, but not transportation. That is, it is the buyer who assumes all obligations to pay for services related to the delivery of goods. This is the most important provision of the terms of delivery cpt.

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 the goods. Therefore, he has every reason, for example, to insure the cargo. And as a "carrier" is any legal entity or individual who, according to the supply agreement, fulfills its obligations to deliver the goods in the agreed way (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 risks for the safety of the cargo are transferred 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 the goods are handed over to him.

In this case, the seller's responsibility returns to him already at the point of delivery of the goods, which is indicated in the documents for transportation. From the above description of the CPT delivery terms, it is obvious that the sales contract concluded on such terms implies the maximum responsibility of the seller.

Risk transfer procedure

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

CPT delivery basis is used in many multimodal transportation
CPT delivery basis is used in many multimodal transportation

The practice of life and the imperfection of Russian legislation show that in a situation with several carriers and the absence of an exact delivery point, a contradiction may arise between the first carrier and the subsequent ones. As a rule, the first carrier on the list, indicated in the documents, by default assumes all risks for the safety of the goods and non-compliance in the documents. In order to avoid this egregious injustice, all participants in the delivery of the goods should document all the key points of the transfer of responsibility (in the purchase and sale agreement, the contract for carriage and shipping documents).

Otherwise, critical moments will be resolved exclusively through the courts. And there is such a sad practice, for example, for the terms of delivery of CPT-Moscow. 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 place of destination) is the exact name of the final point of delivery of the goods. After all, it is the place of destination under these conditions of delivery that is key from the point of view of the transfer of responsibility of the parties. At this point, the transport and logistics company transfers all risks for the safety of the cargo to the seller. And he, in turn, provides the goods here to the buyer after he has fulfilled all his obligations under the contract of sale. A special feature of the CPT delivery terms is that the unloading of goods in the destination meta is carried out at the expense of the seller, unless otherwise stipulated in the delivery contract.

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

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

Allocation of costs

In addition to the cases described above, which were agreed separately, all costs 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 the carrier or carriers. An exception can only be a situation that is separately agreed in advance and spelled out in the relevant documents. An important point is the customs formalities at the border, which are paid by the seller exclusively within the framework of the contract. This means that in the absence of the seller's obligations under the sales and purchase agreement concluded with the buyer, the standard CPT delivery terms do not imply this procedure at his expense.

It is the buyer who is responsible for the delivery of the goods to the place of destination under the conditions of delivery of the CPT
It is the buyer who is responsible for the delivery of the goods to the place of destination under the conditions of delivery of the CPT

In addition, all costs associated with checking the goods, weighing and labeling them, packaging and packaging are considered in full the seller's responsibility.

Buyer's responsibilities

According to the standard terms of delivery of the CPT, the buyer is only obliged to make timely payment for the goods. This applies to a situation where specific obligations of the buyer are not specified in the individual clauses of the sales contract. However, all risks and obligations for obtaining permits from government agencies for the import of contractual cargo into the country of destination and payment of all customs payments here directly relate to the buyer. And again, all these norms work by default, if a separate one is not spelled out in the agreement with the seller. In addition, it is the buyer's responsibility to pay for cargo insurance.

Terms of delivery cpt are very common when importing goods to Russia
Terms of delivery cpt are very common when importing goods to Russia

According to Incoterms 2010, the CPT delivery terms still imply some conditions, when exactly the buyer will bear the cost of shipping the goods, unless otherwise provided by contracts with the seller or carrier. This refers to a situation in which the buyer has not accepted the goods delivered on time. In this case, all additional costs for storage and warehousing of the cargo will completely fall on the shoulders of the buyer. In addition, if unforeseen expenses arise in the process of transport and logistics manipulations in the territory of the country of destination, they, as a rule, are also paid by the buyer.

In this context, it is important to take into account the concept of "force majeure", which is understood as "force majeure circumstances". These include natural disasters, political instability in a country or region, etc. As a rule, standard treaties have special sections devoted to this topic, and otherwise each individual case will be considered in court.

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