How to Write a CPT Clause in Your Sales Contract (Template Included)

A CPT clause that names only the destination leaves the key question unanswered: where did the seller hand the goods to the carrier. Under CPT, that handover is the delivery, and it usually happens long before the goods reach the place named after the letters CPT. A clause recording both places, the carrier, and who insures the transit gives both sides one document to point to when a carton arrives damaged or a freight bill is disputed.

This article gives drafting guidance only and is not legal advice. Ask a lawyer or broker to review the signed wording before the goods move.

What the document is for

The CPT clause is the delivery section inside a sales contract. CPT means Carriage Paid To. Under Incoterms 2020, the seller delivers by handing the goods to the carrier it contracts, and risk passes to the buyer at that handover.¹ The seller then contracts and pays for carriage to the named destination, while the buyer handles import formalities and transit customs.¹ The clause must therefore carry two places at once: delivery, where risk passes, and destination, where seller-paid carriage ends.¹

CPT works for any mode of transport, including sea, road, rail, air, or a combination of modes.¹ That scope suits container cargo handed to a carrier at an inland terminal, air freight from Dhaka, or a multimodal journey, rather than a sea-only rule whose delivery point is loading on board a vessel. If several carriers handle successive legs, delivery occurs on handover to the first carrier, and the seller still pays carriage to the agreed destination.¹

The clause does not set the price, the payment method, or when ownership passes, and it does not make the seller an insurer. Neither party is obliged to insure under CPT, so a buyer who wants cover must arrange it or agree it expressly.² CIP is the insured counterpart: same delivery and risk points, plus a seller duty to buy insurance.³

Required fields explained

Fill in every field before signing.

• Named place of destination, in full. Write where seller-paid carriage ends, in full, as "CPT (named place of destination) Incoterms 2020". A city alone is weak: name the airport, terminal, or depot inside it.¹

• Place and point of delivery, in full. Name where the seller hands the goods to the carrier, as precisely as possible, and state that delivery and risk transfer happen there.¹ Most CPT clauses omit this field.

• First carrier. State that the carrier is contracted by the seller, name it if known, and say who chooses a substitute if it cannot take the goods.¹

• Incoterms version. Write "Incoterms 2020" in full, beside the rule and the named destination. Without the edition, the governing rules are not fixed.

• Delivery event and risk transfer. State in one sentence that delivery occurs, and risk passes, on handover to the carrier at the agreed delivery point, not on arrival at the destination.¹ Use one risk point only.

• Carriage scope and freight. State that the seller will contract and pay for carriage to the named destination, and list what the freight price covers and excludes, including destination handling and unloading.³

• Export clearance. State that the seller will complete export formalities, and list the documents supplied, such as the invoice and transport document.¹

• Import and transit clearance. State that the buyer will handle import clearance, duty, taxes, and transit customs.¹ Seller help should be written as assistance, not as a transfer of the duty.

• Insurance position. State the insurance position in writing even though CPT imposes no insurance duty on either party.² For seller-bought insurance as a duty, use CIP instead.³

• Delivery window and notice. State the handover date or window, and how the seller will notify the buyer on handover.¹

• Onward carriage beyond the destination. State that carriage beyond the named destination is for the buyer's account unless agreed otherwise.¹

• Goods covered. Name the goods, quantity, and marks, with the order number.

Template (table or downloadable)

Copy the table into the contract and fill in every row. Check the two places before signing: they must not be the same entry twice.

If the delivery point, carrier, destination, or insurer is still unstated, the clause is not finished.

Filled example

All names, figures, and dates below are examples only. Adapt every entry, and have a lawyer or broker review the final clause.

Example clause. Delivery is CPT Frankfurt Airport, Germany, Incoterms 2020. Example Jute Goods Ltd, the seller, will hand 180 cartons of cotton tote bags, order number EX-4921, export cleared, to the first carrier at the Dhaka airport cargo terminal on or between 11 and 13 May. The seller will contract and pay for air carriage to Frankfurt Airport, and will notify the buyer by email on handover with the air waybill number. Delivery occurs, and risk passes, on handover to the first carrier at Dhaka. The buyer will arrange its own insurance from handover, handle import clearance, duty, and taxes, and pay for onward carriage beyond Frankfurt Airport.

The example turns on the handover, not the arrival: the seller pays for the flight to Frankfurt, but the buyer carries the risk from Dhaka onward and insures it itself. Had the buyer wanted seller-bought insurance as a duty, the clause would have named CIP.

Common errors

Naming only the destination. A CPT clause with one place reads as if risk follows the freight. It does not: risk passes at the delivery place, often in the seller's country, while freight runs to the destination.¹ Name both places, in full.

Writing arrival wording for a handover rule. Sentences such as "delivery on arrival at destination" contradict CPT: delivery is the handover to the carrier, not loading onto the aircraft, train, or vessel.¹

Treating CPT as a sea-only rule. CPT applies to any mode, including multimodal transport.¹ Restricting it to a vessel pushes the parties toward the wrong delivery point for air, road, rail, or terminal handovers.

Assuming the freight price includes insurance. Under CPT, neither party is obliged to insure.² A buyer who assumes cover exists finds the gap only after a loss, when no policy exists to claim against.

Assuming the freight price includes delivery to the buyer's door. CPT ends at the named destination. Unloading, destination charges not in the carriage contract, and onward transport are the buyer's unless the contract says otherwise.³

Omitting the Incoterms version. Without "Incoterms 2020", the governing edition is not fixed.

Letting the seller choose the delivery point by default. If the parties do not agree the delivery point, the seller may choose the most suitable locations.¹ A buyer who cares about the risk point should fix it in writing.

FAQs

Who issues this document?

No authority issues a CPT clause. It is a delivery section the buyer and seller write into their sales contract, using Incoterms 2020 CPT and the two places it names. A broker or lawyer can review it, but the parties agree it.

Which fields are mandatory?

The delivery term, edition, delivery point, first carrier, risk sentence, carriage scope, clearance split, and insurance position are all needed. A clause missing the delivery point or insurance row is incomplete even if the destination is correct.

Can it be digital?

Yes. The clause is contract text, so it can sit in a digitally signed contract like any other section. Check that the transport document the carrier issues, such as an air waybill, meets the contract, any letter of credit, and the buyer's import requirements.

What errors cause delays?

A missing or vague delivery point, a destination named only as a city, an unnamed carrier, and an unstated insurance position cause the most delays. Carriers and customs also hold goods when the transport document, invoice, and import declaration disagree.

Next steps on Exportain

Read the Incoterms guide for shipments from Bangladesh to compare CPT with the other ten rules, and the CIF guide if you are weighing a sea-only insured term against an any-mode carriage-paid term. When you are ready to buy, read how to buy from Bangladesh, then post a free RFQ on Exportain stating the quantity, destination, and Incoterm, so suppliers quote on the same delivery basis.