CPT incoterms explained – international shipments – damages during transport

Categories: aftersales before I buy transport & logistics

Formal Definition:
CPT (Carriage Paid To) is one of the IncotermsĀ® rules published by the International Chamber of Commerce (ICC). Under CPT, the seller is responsible for arranging and paying for the transport of the goods to a named place of destination. However, the risk transfers from the seller to the buyer as soon as the goods are handed over to the first carrier (typically at the point of departure), not at the final destination.

What this means for you as a potential buyer:
When we sell and dispatch goods under CPT terms, we cover the cost of shipping to your location. However, you as the buyer assumes responsibility for the goods once they are handed over to the carrier (e.g., DHL, FedEx, UPS). This means that any loss or damage occurring during transit is legally a buyer’s responsibility, even though a seller may have arranged and paid for the shipment.

What to do if goods arrive damaged or missing:
If you receive damaged goods or if a package is lost in transit:

  1. Immediately file a claim with the carrier who delivered the shipment (e.g., FedEx, DHL, UPS).
  2. Carriers sometimes state that only the shipper can file a claim. In such cases, you must request a “Letter of Authorization” (LOA) from the carrier, which will allow you to officially act as the agent filing the claim.
    Carriers like Fedex , UPS & DHL are sometimes notoriously difficult in dealing with this and sometimes staff is oblivious to these facts. Point out to them that the shipment is CPT and that by law they have to comply with a LOA.
  3. Once you receive the LOA fill it out and send it to our service center. A service rep. will promptly provide the necessary document to support your claim with the carrier. Please note that we can not help you to obtain a letter of authorization.

Please note that we as the seller are not part of the claims process.
We cannot file claims on your behalf nor intervene in the carrier’s decision-making process. Per international incoterm ruling all responsibility for claims under CPT terms rests with you, the buyer, from the point the goods are handed over to the carrier.

Need more information ? Please visit the official international standards on incoterms rules here :
https://iccwbo.org/business-solutions/incoterms-rules/

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