Podcast
Questions and Answers
What is the seller's main responsibility under the CPT term?
What is the seller's main responsibility under the CPT term?
- To provide cargo insurance for the shipment
- To handle all import formalities in the destination country
- To pay for both pre carriage and main carriage to the named place of destination (correct)
- To ensure the buyer has sufficient funds for shipment
At what point does the risk pass from the seller to the buyer under CPT terms?
At what point does the risk pass from the seller to the buyer under CPT terms?
- Upon arrival of the goods at the named place of destination
- Once the goods are loaded onto the vessel at the destination
- When the goods are delivered to the nominated carrier at the agreed place of shipment (correct)
- When the goods are cleared for export
Who is responsible for procuring cargo insurance under the CPT term?
Who is responsible for procuring cargo insurance under the CPT term?
- The insurance company, automatically upon shipment
- The seller, before the goods are shipped
- The carrier, as part of their service
- The buyer, upon delivery of goods to the carrier (correct)
What should be noted in the contract regarding carriage costs under CPT terms?
What should be noted in the contract regarding carriage costs under CPT terms?
Which statement correctly describes the relationship between risk and costs in CPT terms?
Which statement correctly describes the relationship between risk and costs in CPT terms?
What is required of the seller in relation to carriage costs under CPT terms?
What is required of the seller in relation to carriage costs under CPT terms?
At what point does the buyer become liable for import formalities under CPT terms?
At what point does the buyer become liable for import formalities under CPT terms?
Under CPT terms, when does the transfer of risk occur?
Under CPT terms, when does the transfer of risk occur?
Which of the following statements about CPT terms is accurate?
Which of the following statements about CPT terms is accurate?
Which aspect of the CPT term underscores its complexity?
Which aspect of the CPT term underscores its complexity?
Study Notes
CPT – Carriage Paid To
- The seller is responsible for clearing goods for export and covers costs related to pre carriage and main carriage.
- Seller pays for carriage costs, which should be clearly specified in the sales contract.
- Buyer must secure cargo insurance and handle all import procedures.
- Risk transfer occurs when goods are delivered to the designated carrier at the origin's shipment point.
- Seller contracts for carriage to a specified place of destination, where costs are handed over.
- Understanding the distinction between the transfer of risk and cost responsibility is critical in CPT agreements.
CPT – Carriage Paid To
- The seller is responsible for clearing goods for export and covers costs related to pre carriage and main carriage.
- Seller pays for carriage costs, which should be clearly specified in the sales contract.
- Buyer must secure cargo insurance and handle all import procedures.
- Risk transfer occurs when goods are delivered to the designated carrier at the origin's shipment point.
- Seller contracts for carriage to a specified place of destination, where costs are handed over.
- Understanding the distinction between the transfer of risk and cost responsibility is critical in CPT agreements.
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Description
Test your understanding of the CPT term in international trade. This quiz covers key aspects such as risk transfer, cost responsibilities, and insurance requirements. Knowing the specifics of CPT can be crucial for both sellers and buyers in logistics.
