Terms of delivery CPT. Delivery on CPT terms

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Logistics has been massively developed in recent years. This is facilitated by some growth in the development of regions, in connection with which the importance of cargo transportation in the country has increased. Of course, the number of entrepreneurs who would like to do this has also increased significantly.

The beginning of such activity is greatly complicated by the fact that newly minted carriers often do not realize the nuances, many of which are very important. For example, the terms of delivery CPT. They are used extremely widely in the world volume, so it is very important to know about all their features.

Definition of concept

In world practice, CPT delivery terms mean that the seller undertakes to deliver the goods to the buyer who paid for the purchase, but not for the transportation. This is a key feature of this type of transportation: the seller assumes all obligations regarding the costs of the service. The buyer, in turn, fully agrees with all risks.

The "carrier" in this particular case means any natural or legal person whomay carry out (under the terms of the contract) the delivery of cargo by road, air, sea or other means of transport provided for in the documents. If the CPT terms of delivery provide for the shipment of goods with the participation of several suppliers, all risks pass from one of them to another at the moment when the goods are transferred from one mode of transport to another.

All customs operations are also the responsibility of the seller. Note that the term CPT can be used for any existing mode of transport.

Other details

In foreign literature, the term Carriage paid to is used, which means exactly the same as what we just wrote about. In addition, the terms of delivery of CPT assume that in the event that the parties have agreed to use the services of a third-party carrier, all responsibility also rests with the supplier at the time of delivery of the goods to him. The responsibility of the seller in this case does not extend until the delivery of the goods to the point specified in the documents.

Thus, the terms of delivery of CPT is an example of such logistics transportation, in which the responsibility lies almost entirely with the seller. That is why the supplier should be extremely careful when drafting or reading the sales contract.

Critical points

Given that there is at least a double transfer of goods, any standard delivery has two critical points. Important! Sellers and buyers (as well aslogistics firms, if any) are strongly encouraged to distinguish as clearly as possible all terms of delivery, including step-by-step transfer of responsibility when loading or unloading goods.

If multiple carriers are used at once, and the parties are still unable to determine the exact destination, the first carrier on the list must take into account the fact that, taking advantage of the imperfection of our laws, all subsequent carriers may lay the blame for inconsistencies in the documents or damage to the cargo on it. Therefore, all these points should be specified in advance in the sale and purchase documents or the transportation contract, otherwise it will take a long time to prove one's case in court.

Have there already been such cases, if we talk about the supply of CPT? Moscow, where delivery conditions have always been confusing, certainly remembers the numerous scandals associated with the development of promising sites. Often, suppliers of building materials found themselves not only without money, but were also forced to litigate for a long time, proving the guilt of other carriers in the loss of material.

Defining a destination

Thus, in the final contract it is recommended to determine as accurately as possible the destination to which the responsibility for the transported goods will lie with the logistics company (or the seller himself, subject to self-transportation). It is the seller who must ensure that the relevant supply contracts are in place. Note! According to CPT DAP rules, delivery terms are notprovide for reimbursement to the seller of the costs of unloading the goods, unless otherwise provided by agreement of the parties, which is reflected in the documents being drawn up.

Once again, we note that the seller will also be required to fulfill all customs formalities if the conditions of transportation require passage through the state or internal border. But! In no case is he obliged to bear the costs and formalities for the importation of goods, pay customs duties or other services.

Having done with the general points, we should discuss more specific nuances of deliveries that are directly related to the seller.

Presence and other conditions

So, in any case, the supplier is obliged to provide the goods for review to the buyer, transfer the invoice, as well as other documents that may be needed to determine the quality or other characteristics of the goods. If this is normal procedure or pre-approved in the contract, an electronic signature may be used.

Licenses, other control

If required, the seller should, at his own risk, obtain (and pay for) all export permits (and pay for them), as well as other official documents, comply with all customs regulations and other formalities adopted in the case of transportation of a particular type of cargo.

About the contract of carriage and insurance

The seller is obliged to conclude a contract for the delivery of goods to a specific destination, if it is defined, or to a specific place in it. Thisthe document must also provide for transportation under normal conditions and in a standard way, so that the seller cannot knowingly overcharge for his services. If the destination has not been agreed upon or not mentioned in the contract, the seller can choose it independently, in full accordance with where it is more convenient for him to deliver the goods.

As for the cargo insurance contract, in this respect the seller has no obligations whatsoever. But! He is obliged, upon request, to provide all the information necessary to obtain insurance to the buyer.

About cost sharing

The seller is obliged to pay all costs until the goods arrive at their destination, except in those cases that we have already written about above. In addition, he is responsible for paying the freight, as well as the costs associated with the loading and unloading of goods (see above). Of course, if other circumstances are not agreed in advance and are not specified in the documents, and the delivery on CPT terms takes place as usual, without force majeure situations.

We remind you once again that all the costs associated with the clearance of cargo at the border, as well as other similar formalities, the seller pays only if it is written in the contract. In all other cases, he does not bear such obligations.

Checking and packing the shipment

The costs associated with marking, weighing and checking the goods are entirely the responsibility of the seller. In addition, all costs associated withpackaging and packaging of goods, except in cases where the industry is allowed to transport a specific type of cargo in bulk. However, even in this case, the labeling of goods in the accompanying documents must be carried out in strict compliance with all rules.

Buyer Responsibilities

Let's talk now about what are the obligations for the buyer under the CPT. Terms of delivery (2010 and later) in this case provide only timely payment for the goods. If there are no additional conditions in the contract, other obligations are rarely imposed on it. Important! Just the same, he is obliged to receive at his own risk all permits for the importation of some kind of cargo into the country, as well as pay for all customs formalities, unless otherwise agreed in advance and written in the papers.

Neither under the contract of carriage, nor under the contract of insurance, the buyer has no special obligations. However, if he wishes to take out insurance, then this will have to be done at his own expense. However, we already wrote that the seller must provide any data that is necessary for the preparation of the relevant documents.

More on cost sharing

However, the terms of delivery of CPT (Incoterms 2010) provide for some conditions under which the buyer will also pay. Let's take a closer look at them.

Unless otherwise specified in the contract, he will pay all costs incurred up to the time of delivery. However, if the documents do notsomething else is indicated, the supplier pays for all this. Again, subject to the presence of such a clause in the contract, it can be calculated for the services of unloading and loading goods, but usually the supplier himself is responsible for this.

If the buyer did not accept the goods within the specified period, although his delivery was carried out, then he pays all the additional costs that have arisen. In addition, payment of unforeseen expenses (related to the cargo) when transporting goods through the territory of another country (unless otherwise specified in the contract) is almost always the responsibility of the recipient.

So we have considered the terms of delivery CPT (Incoterms). 2012 brought new rules, but all the provisions we described in them remained unchanged.

Cases of force majeure

This refers to situations where one of the parties cannot fulfill its obligations for reasons beyond the control of the supplier or buyer. As a rule, these are natural disasters, destabilization of the political situation in the country, or something similar. Most often, the contract contains a clause according to which the parties can disperse amicably. If this does not happen, the situation is considered in the arbitration court.