Different categories of exporters


Types of Exporters

On the basis of direct and indirect methods of exporting, export market organisations in India are classified into the following categories:

(a) Manufacturer Exporters: Manufacturer exporters are the manufacturers who export goods directly to foreign buyers without any intervention from intermediaries. The manufacturer may also appoint agents abroad for selling products. They enjoy several advantages:

First hand information about foreign markets.

Exercise a direct control over marketing activities.

Enjoy full benefit of export incentives.

Enjoy greater profits and goodwill in the market.

(b) Merchant Exporters: Merchant exporters are the exporters who purchase goods from the domestic market and sell them in foreign countries. They enjoy several advantages:

Limited capital.

Specialization in marketing.

Large market share.

(c) Status Holders: The Government of India introduced the concept of status holders in the in the year 1960. Export House (EH) was the first category introduced by the Government with the objective of promoting exports by providing assistance for building marketing infrastructure and expertise required for export promotion. Thereafter in the year 1981, Trading Houses were introduced in order to develop new products and new markets, particularly for the products of SSls and Cottage industries. The categorisation, their eligibility and nomenclatures have changed since then. As per the new Foreign Trade Policy 2009-2014, status holders have been categorised as follows on the basis of their export performance:

(d) Service Export House: Considering the increasing share of services in the total export from India, the government introduced the concept of Service Export House in the EXIM policy 2002-07. As per this policy, the service providers who have achieved a stipulated level of export performance are eligible for recognition of status holder. Accordingly they are eligible for all the facilities and incentives, hitherto given to the export and trading houses. These facilities include import of capital goods under EPCG scheme, passenger baggage, import of restricted items, etc. The above categorisation also applies to the service providers.

(e) Canalising Agencies: Canalisation of import and export means import and export of commodities through specified government agencies such as State Trading Corporation of India (STC), Metals and Minerals Corporation (MMTC). The items specified in the canalised list can be canalised only through specified canalising agency.

(f) Export Consortia: In this case, a number of economically independent manufacturers, voluntarily or under the direction of the government, set up a joint organisation for co-ordination of their export activities. This has several advantages, such as;

Price stabilisation;

Saves unproductive expenditures such as advertising;

Economies of scale.



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Tips to exporters on Documentation
How does First Appraisement system of import customs clearance procedures work?
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How does STP units work in India?
How does TT (Telegraphic Transfer) work?
Transferability of Bill of Lading
Transhipment - A redefinition
Travelers to India under import duty exemption, Frequently Asked Questions Part 2
Triangular shipment
Types of Insurance Documents.
How does Wire transfer work in international business?


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info: I represent a company named Biospan Contamination Control solution Pvt Limited, I get to know about you while accessing howtoimportexport.com portal. I was looking for the knowledge resources on “import on consignment basis” in India.In fact, we are a small private limited start-up company, importing some pharmaceutical consumables for cleanroom production facility and sale in India.Under the current pandemic situation, we have been exploring various ways to reduce financial burden on our start-up company.One of the options, that we are exploring is import on consignment basis. However, we wish to understand in detail and with specific aspect of such import like What would be specific modalities for import on consignment basis. What additional customs clearance procedure to be followed What are the banking regulation for payment over extended time What documents to be submitted to customer and bank for such transaction etc I would very much appreciate if you can share your experience and guide us to plan and execute such transaction with your kind advice in whatever way, even by suggesting some reading material. It will go a long way for a small start-up company like us.

prakash: My name is Prakash. I'm interested and planning to enter into the export business slowly. I happened to see your website and thought of dropping a mail. I'm in the process of knowing more about this industry by doing some research on internet etc. I realized that its not an easy thing to learn all the rule, regulations, process etc. involved in export business. As an alternative, I'm thinking of entering this industry initially by using the help of people/companies like you. I do have a few general questions as given below. 1) As a beginner can I export through your company? (i.e. if your company is doing all the work, do I need to get all the licence and code numbers from the export council? 2) If I do it through you, will it still be profitable for me? 3) You provide any training/classes for those who are interested Your clarification will be really helpful.

alok: Our organisation is a Publishing house and acting as a branch of overseas unit. As per RBI permission we are allowed to carry out only trading activity. We are dealing with printed books and we don't have any manufacturing unit. My questions on duty drawback are as follows: 1. Under which category we falL :Merchant exporter or normal exporter. 2. Customs duty paid on books is 5.005% (BCD-5% and Social Welfare Surcharge(10% on 5%). 3. If books are exported as such and without adding value on it under which section we fall Sec 74 or Sec75 of customs act. 4. How much duty drawback we can claim against 5.005% customs duty. 5. For export of books which form ARE-1 / ARE-2 is applicable. We are not exporting books in SEZ. If any other form is available besides above where trader can file , please share. 6. What is the penal action if anyone claim duty drawback for products for which he did not pay any duty. Besides interest what are other penal action would be applicable. 7. is HS classification code is mandatory to declare in shipping bill since countrywise HS classification differs. 8. If exports are made for multiple products which were imported on different dates , how duty drawback would be calculated. 9. How duty drawback is calculated for export of good

manoj: I'm a graduate of Indian Institute of Technology, Kharagpur, 2014 batch. I'm currently bootstrapping my own fintech startup called "Wise Economy" which aims to make the process of trade financing super easy for Indian exporters and importers. I really loved your blog about import-export related topics(howtoexportimport.com) and thought I'll write to see if you're interested in talking to me over the phone regarding my idea and the team I'm building at Wise Economy. Your website gave me a lot of knowledge to understand the import export processes in India. Thanks a lot for that.

stephen: First of all may we thank you for all the informative articles on howtoexportimport.com May we request you to kindly refer to the two attached notifications from the Ministry of Textiles dated 18th December 2018 with effect from 1st January 2019. On the one hand the quota free regime began from 1st January 2005 and on the other this notification has been issued. Does this notification mean a merchant exporter or exporter from India should compulsorily first apply for export quota entitlement from the Ministry of Textiles to export garments, knitwear and textiles before he can export?

jade: I am an Australian residing in Bangalore for the last 10 years and I am exploring an opportunity to import a product from Australia to India. I would like to make contact with someone who can advise me regarding the import license, customs and taxation as well as FSSAI approvals etc. I have been to the Indian Trade Portal although I am not getting the specific details I require.

Selvam M: Wood Charcoal manufacturer and supplier in India tamilnadu

Renu: What does category of exporter - others refer to

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