Certified Supply Chain Professional (CSCP) Practice Exam

In CPT terms, what responsibility does the seller have?

1. Load the goods

2. Pay for freight charges

3. Handle all customs documentation

4. Risk associated with lost goods

The correct answer is: Pay for freight charges

In CPT terms, which stands for "Carriage Paid To," the seller has the responsibility to pay for freight charges to transport the goods to the named destination. This means that the seller must bear the costs associated with the main carriage of the goods, ensuring that they are delivered to the agreed-upon location. Although the seller does assume some risk until the goods are delivered to the carrier, they are not responsible for the risks associated with lost goods after that point. The obligations of the seller in a CPT agreement are clearly defined, emphasizing their role in covering transport costs while transferring the responsibility of risk to the buyer once the goods are handed over to the freight carrier. In contrast, responsibilities such as handling customs documentation and loading the goods may vary depending on the specific agreement or local practices, which could lead to misunderstandings regarding responsibilities.