“Transport and Insurance Prepaid” rule expresses that the seller is to deliver the goods to a carrier or other person selected by itself at a specified point (if not such place have been agreed by the parties) and that the seller must enter into the transport agreement for bringing the goods to a specified destination point and must pay the transport expenses. When the CPT rule is used (just like in the CIP, CFR or CIF rules), seller carries out its delivery obligation not when the goods arrive at the place of destination, but when the goods are delivered pursuant to the respective rule to the carrier.
Characteristics of the delivery type: This type of delivery is used specifically in the forms of transport with multiple vehicles. Seller is obliged to pay the freight charge until the place of delivery. The risks and expenses at the moment it transfers the goods to the supervision of the first carrier, except for the freight, pass to the buyer.
Seller’s Obligations: Seller prepares the goods in compliance with the agreement terms and conditions. Prepares the required documents it will be using in the Buyer’s country. Completes the customs clearances. It pays the fee of the freight for the destination point entering into an agreement with the transport agency. It is free of the respective risks and expenses at the moment it transfers the goods to the supervision of the first carrier. Seller notifies the buyer about loading that took place and the possible date of arrival. Seller, Seller must pay the respective expenses of the control processes required for the delivery of the goods (quality control, measurement, weighing, count etc.) as well as the preloading examination expenses imposed by the authorized bodies of the export country.
Buyer’s Obligations: Pays the value of the goods in compliance with the agreement terms and conditions. Completes the customs clearances by arranging the customs documents for import. Pays the customs taxes. The risks and expenses at the moment they are transferred to the first carrier, except for the freight, pass to the buyer. The customs expenses that might occur due to transit shipment shall be borne by the buyer. It receives the bill of lading with turnover by paying the unloading charge if not included in the freight fee from the agency. Buyer must pay all kinds of mandatory preloading costs of inspections, excluding the examination expenses stipulated by the export country, prior to the loading.