Who pays for insurance under CPT?

Under CPT the seller has no obligation to insure the goods for the buyer.

Who is responsible for unloading at destination under CPT?

One source says the seller pays for unloading at the destination when its contract of carriage includes it; otherwise it falls to the buyer. Check what the freight contract covers.

CPT (Carriage Paid To) Incoterms® 2020 rule

The seller clears export and pays carriage to the named destination, but risk passes when the goods reach the first carrier.

In our own words, checked against public explanatory sources. The official rule text is published by ICC.

Transport mode: Any mode of transport
Risk passes: When handed to the first carrier
Seller must insure?: No

Who pays, at a glance

Seller pays or arranges:: packaging, loading at origin, export clearance, pre-carriage, main carriage.
Buyer pays or arranges:: import clearance, import duties, on-carriage.
Depends on the delivery place or arrangement:: insurance, unloading at destination — see the notes in the cost table.

Where risk passes

Risk passes when the seller hands the goods to the carrier it has contracted; with several carriers, normally on handover to the first one unless another point is agreed.

Cost and risk diagram

Rows follow the goods from the seller (top) to the buyer (bottom); the dashed line marks where risk passes. Generated from the table below. Positions are schematic — the named place in your contract decides the exact point.

Who pays for what

Cost item	Paid / arranged by	Notes
Packaging	Seller
Loading at origin	Seller
Export clearance	Seller
Pre-carriage	Seller
Main carriage	Seller
Insurance	Depends	No party has to insure under this rule. The buyer carries the risk during carriage; each party may cover the part of the journey where it carries the risk.
Unloading at destination	Depends	One source says the seller pays for unloading at the destination when its contract of carriage includes it; otherwise it falls to the buyer. Check what the freight contract covers.
Import clearance	Buyer
Import duties	Buyer
On-carriage	Buyer	The seller's carriage ends at the named destination; transport beyond it is the buyer's.

Insurance

This rule puts no obligation on the seller to insure the goods for the buyer. Either side may still choose to buy cover for its own risk.

Common mistakes

Assuming the seller carries the transit risk because it pays for carriage; risk passes on handover to the carrier.
Not defining the place of delivery when several carriers are involved, which can leave the seller carrying the risk longer than expected.

In your ERP and on invoices

Practical consequences of the cost split above for order data, cost bookings and invoice layout. Generic — not specific to any ERP product.

Store the rule code, the edition (for example 2020) and the named place as separate fields on orders, and print all three on the invoice.
Main-carriage freight is a seller cost: expect it on the sales side (as a freight line or built into the price), not as a separate line on the buyer's purchase order.
Import duties are a buyer cost: the buyer's landed-cost calculation should add duties and clearance fees on top of the purchase price.

When to look at another rule

Derived from the cost tables: rules for the same kind of route that differ from CPT in one of export clearance, main carriage, import clearance or insurance.

If the buyer should arrange the main carriage: FCA.
If the seller should clear import and pay the duties: DDP.
If the seller must insure the goods: CIP.
Same split of those four duties but a different risk point: DAP, DPU.

Compare CPT with

Questions about CPT

Where does risk pass from seller to buyer under CPT?: Risk passes when the seller hands the goods to the carrier it has contracted; with several carriers, normally on handover to the first one unless another point is agreed.
Which transport modes can CPT be used for?: Any mode of transport.
Who pays for insurance under CPT?: Under CPT the seller has no obligation to insure the goods for the buyer.
Who is responsible for export clearance under CPT?: The seller.
Who is responsible for main carriage under CPT?: The seller.
Who is responsible for import clearance under CPT?: The buyer.
Who is responsible for import duties under CPT?: The buyer.
Who is responsible for unloading at destination under CPT?: One source says the seller pays for unloading at the destination when its contract of carriage includes it; otherwise it falls to the buyer. Check what the freight contract covers.

Sources

Checked on 11 October 2026.

Export Development Canada — edc.ca
Netherlands Chamber of Commerce (KVK) — kvk.nl
US International Trade Administration — trade.gov
Maersk (chart by Pilot Freight Services) — delivers.maersk.comsecondary