CPT and CIP have different deliveries: Place of Receipt at the first carrier (origin) and Place of Delivery loaded (destination). This articles explains when to use them.

When delivery occurs in CPT and CIP?

In CPT and CIP Incoterms, delivery is defined as occurring at the origin, specifically at the first carrier contracted by the seller and loaded. The buyer is then obligated to receive the goods from the carrier at this point, as per the arrangements made by the shipper. The actual place of receipt is typically a warehouse, and the loading cost is paid by the seller. It is notable that Incoterms 2020 does not specify when the delivery occurs.

Interestingly, Incoterms 2020 deliberately does not specify a delivery place for CPT and CIP. This flexibility allows for slight variations in different trade contexts while maintaining the core principle of origin-point transfer.

Recommendation

It is imperative that the specific location of the delivery be clearly indicated when contracting. Furthermore, the use of detailed notes is highly recommended, with particular attention to the following: “at time of booking,” “crossing the border,” “port of loading,” and “warehouse location.”

CPT has two places:

• Place of Receipt at the first carrier (origin)
• Place of Delivery loaded (destination)

When the risk starts for the buyer in CPT and CIP?

The delivery process commences at the designated point of receipt, well in advance of the buyer assuming control of the cargo. In standard practice, this occurs within a designated yard or logistics facility.

How to work with Letters of Credit?

It is recommended that a shipping window of 14 or 21 days after delivery be added. Furthermore, the possible ports of loading should be specified, for example, “any port from the Netherlands.” It is also advised that the seller be held harmless in the event of shipment delays. Similarly, the seller should not be held responsible for delays resulting from buyer failure.

Recommendations when using Letters of Credit in CPT/CIP

• Add a shipping window of 14 or 21 days of shipment after delivery.
• Add possible ports of loading. For example: “any port from Netherlands”
• State that the seller is not responsible in case of shipment delay
• State that seller is not responsible of delay in case of buyer failure