Incoterms Rules
FCA vs CPT: what is the difference
Both rules work for any mode of transport, and in both the risk passes when the goods are handed to the carrier. The difference is who pays the main carriage: under FCA the buyer books and pays it, under CPT the seller pays the carriage to the named destination.
Side by side
| FCA Free Carrier | CPT Carriage Paid To | |
|---|---|---|
| Transport | Any mode | Any mode |
| Export clearance | Seller | Seller |
| Import clearance | Buyer | Buyer |
| Main carriage paid by | Buyer | Seller |
| Insurance | Not required | Not required |
| Risk passes to the buyer | When the goods are handed to the buyer's carrier at the named place | When the goods are handed to the first carrier |
Which one to choose
Choose FCA if the buyer has its own freight contracts or forwarder and wants to control the transport. Choose CPT if the buyer wants a price that includes carriage to its destination. Under CPT the seller pays the freight, but the buyer carries the risk from the handover to the first carrier, so it should insure from that point.