The acronym CIF means that the freight, insurance the rates that make up the cost are paid by the supplier, or rather, is paid at the origin of the sale, being responsible for delivery to the destination. The acronym CIF (cost, insurance and freight), cost, insurance and freight remit the responsibility of the payment of the freight to which you made the sale, just as the tax refund is destined to it.

The other mode of payment of the cost of freight is the FOB (fee on board) “free on board” is the reverse, since the CIF is paid at the origin, the FOB is paid by the recipient, that is, on account of who buys the merchandise. The buyer is responsible for hiring and paying for transportation, so also has the right to tax refund.

Most contracting companies commit to delivery by committing themselves to hiring a carrier, making CIF freight for several reasons. We select some advantages attributed by the supplier company as contractor and responsible for the freight:

• Make a previous selection of the company that will be responsible for transportation, researching the profile of the carrier to meet the needs of product conditioning;

• Guide and train the field staff of the contracted carrier to serve in a manner that maintains cargo safely
Price negotiation through proposal that facilitates the calculation of freight in the formation of the sale price, making the negotiation of the sales team more competitive;

• Request adequate equipment and staff to meet their customers according to commercial conditions of sale, such as term, price and cargo security;

• Implementation of PGR according to the need of the carrier insurer or in case of DDR, registration of the load with the insurer, monitoring when risk loading;

• Increased productivity in the shipment by working with scheduling for loading and unloading, avoiding collection and delivery after hours;

• For chemical companies, because they are responsible for the cargo to the final destination, the contracting of the CIF directly reflects in minimizing the risks of inadequate transport or without the compliance with the legislation;

• Centralizing and controlling a single logistics supplier increases the productivity gains of deliveries
Cost reduction;

• Compliance with legislation, control of documents, monitoring of cargo on behalf of the supplier is a facility to be negotiated with the customer at the time of the sale and assume the contracting of transportation is a great differential.