Which category of exporter are you? Merchant Exporter,Manufacturer exporter,Service exporter Project Exporter or Deemed Exporter


The information provided here is part of Export Import Training course online


Which category of exporter are you Merchant Exporter,Manufacturer exporter,Service exporter Project Exporter or Deemed Exporter copy

There are different categories of exporters like Merchant exporters, Manufacturer exporters, Service exporters, Project exporters, Deemed exporters etc.

Who is a 'Merchant exporter'

"Merchant Exporter" means a person engaged in trading activity and exporting or intending to export goods .Merchant exporter procures the material from a manufacturer and exports in his firm’s name. Here merchant exporter procures the order from international market. Merchant exporter does not have own manufacturing unit or processing factory. Merchant Exporter can export the excisable goods either directly from the premises of the manufacturer, with or without sealing of the export consignments, or through his premises under claim for rebate or under bond.

What is meant by 'Manufacturer exporters'

"Manufacturer Exporter" means a person who manufactures goods and exports or intends to export such goods. The manufacturer exporter procures and process raw materials at his factory and exports finished products. Here, the manufacturer exporter procures the export order and exports in their own name.

Is 'service treated as exports'?. What is Service exports: If an exports through a merchant exporter or manufacturer export, we can see the export product tangibly. But there are many servicing industry where we can not see the product physically, but helps to earn foreign exchange. A best example of service exporter is those who export software. Here while selling software to other countries, our country earn foreign exchange. Tourism, Software, Health Care, Consultancy, Hotels, etc. are other examples for service exports.

Who are Project Exporters: There are many professional companies undertake contracts for Designing, manufacturing, supply, erection, commissioning, etc. When they earn foreign currency on their sale, they falls under Project exporters and eligible of all assistance and support as project exports.

What is Deemed Exports:

In deemed exports, goods supplied do not move out of country, and payment for such supplies is received either in Indian Rupees or in free foreign exchange. You may have a doubt now that if the goods are not crossing the border of country, how can we treat as an exports?. In deemed exports, some of the other way the transaction boost to earn foreign exchange . Deemed exporters are also eligible government assistance within the parameters of earning foreign exchange.

The above are as per India Government.  What categories  of exporters in your country.  Comment.


The above information is a part of Import Export Training course online

Other details on how to import export  

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Mode of payments in international trade
What is Terms of Delivery in Imports and exports
What is Shipper Load, stow and count in Bill of Lading
What is packing credit in export business?
Is Letter of Credit (LC) a safe mode of payment for an Exporter?
What is Third Party Exports? Difference between manufacturer exporter and third party exporter.
Triangular shipment
Excise and Customs - Click here to read complete notification under Budget 2014
How to get Export Orders?
How to settle dispute in Exports and Imports?
Click here to know India Trade Classification(ITC)
Pre shipment bank finance to suppliers for exports through other agencies
Types of export containers
Measurement of export containers
Foreign Trade Policy of India 2015-2020
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports

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poornima.g.s: dear sir, as i am here a merchant exporter so i got a order for a product. so that i don't have any money in my hand for my business.so how can i get money for exporting. thank you

Admin: Hi Poornima, you can approach a financial institution to export on your own name or you can transfer your export order to another exporter on commission basis

rajat arora: i am a manufacturer exporter , one third party exporter wants me to deleiver the goods at france and wants to pay me in indian rupee. , in which category i will be , how is this possible to arrange deleivery if thid party exporter wants me to deleiver the goods at france.

rajat arora: can a manufacturer exporter export on behalf of merchant exporter , i mean can manufacturer exporter arrange deleivery outside of india for the merchant exporter(indian) and at the same time can he accept payment in india ruppee.

ANIL KUMAR: Sie, I want to start export business (Merhant). I want to know that there is any particular language for affidavit for make firm, if it is so kindly send me the draft for the affidavit. Thanks & Regards

Sudip Bhattacharya: Respected sir/mam i am a merchant exporter, i want to know that how can i get marketing support from export promotion council in garments and ladies ware. They are providing marketing support on manufacture not to merchant exporter.

SPUTNIK : Hi n hello Krishna here, your website throws lots of information regarding export/import related terms n queries. My appreciation n wishes to you n your team. Exporter type : Am a merchant exporter My nature of export: We involve in exporting injection moulding plastic components/parts which are used in electronics products. Am not dealing with any electronics exports, but am exporting plastic parts like housing/spacer/cap/holder which are used in electronic assemblies. We send these consignments directly to customer, without any LC. Nature of work : We do two activities. One is manufacturing plastic injection moulding die - Receive advance 50 % payment against proforma invoice to manufacture the die. Once samples taken from the die meets customer requirements/specification, they well remit balance 50% against Invoice. Another one manufacturing plastic parts out of manufacturing die - This would be our regular business. we ship parts via air to customer, once dispatched production parts are as per specification, they will remit money to us in 30 days credit from the date of shipment received. How can i avail export benefits and sales tax inputs claims ? guide me

Praveen: Dear Sir, Please, We procure imported raw material under Advance License and need to do "port registration". Request you Kindly explain me the port registration. Thanks and regards, Praveen

Louis Fernandes : thank you for your wonderful blog. It's like a bible for the beginners. although, you had given all relevant information on how to apply IEC, I greatly appreciate if you could clarify following 2 quarries for which I could not find any answers in your blog. 1) presently i do not have registered any company on my name. Is it possible to get IEC on my name without registered a company ? 2) Can a company having IEC with Registered Office at Mangalore or Udupi, import / export goods from Mundra Port in Gujarat ? Assuming that the company has no presence of business at Gujarat. Can the company show the address as Mangalore / Udupi? Whether the company shall be required to take branch registered under IEC for importing/exporting goods from Gujarat ? I'm an NRI from Mangalore currently in Saudi Arabia working for a shipping industry. (I have experience in shipping / freight for more than 20 years). I intended to start a business of exporting of Basmati Rice, spices, food stuffs to Gulf region and import some items from china.

Admin: Hi Louis Fernandes, You can register as Sole Proprietor ship for forming a firm as your own. If you have an IEC, you can export or import from all ports subjected to the nature of goods by obtaining necessary specific import license/export license if required.

Admin: Hello Praveen, You may collect latest procedures of Advance License from Director General of Foreign Trade DGFT near your place and consult with customs authorities about port registration.

Chirag Rank: First of all i would thank you for the immense help i have received from your website. Its full of valuable contents compiled at one place. Though most of all my doubts have been cleared through articles beautifully written by you. But still i am left with a confusion regarding the documents to be submitted while opening a current account needed for IEC license. My case is as follows -I want to start a Merchant Exporter Proprietorship firm. As the business firm is still in the initial stage, i want to operate it from my home rather than any commercial space. i contacted a few banks and consultancy firms for the guidance regarding the necessary registration documents needed( In short Under which Category should I get my business firm Registered?). I got two types of advises for registraion-1) ssi(small scale industries) registration. 2) Shop and Establishment license. I don't know which one to choose.

Admin: Hi Chirag Rank, As per my experience, Shop and Establishment license is easier to get than SSI.

Raghunath: Sir We are 100% EOU ( Manufacturer Exporter) of polished granite & marble and registered with VSEZ -visakapratnam Now we wants to purchase the Marble Slabs from Rajasthanand planing to Export from Rajasthan as a Merchant Exporter Are we eligible for get the focus product scheme incentive benefit(2% of FOB value of Export) ? and may we file the Shipping bill in Focus Product scheme ? and may we file the completed docs to DGFT for get the Focus product benefit? Please advise me sir Thanking you sir Raghunath

Anand: I ask my foreign country supplier to supply the material to my customer in another country. I receive proof of export to customer . i receive invoice from supplier in my name and I have to make invoice to my customer . what should be the value addition required as per our FEMA Rules. This is nothing but Merchant Trading.

Somu Raghav : For the long time i think that do a buisness. Now i am select the export buisness by part time .Once i will get the consistency profit through this business, i will left my current job.But i will try to do the both. I want to play the role of Merchant Exporter. I don't know that from where i have start.My queries are below 1) As a merchant exporter,first i have to select my product (or) select the buyer? 2)How to identify the buyer? 3)How to identify the supplier? 4)Basically which type of product have to selct for more profit with low risk? 5)From starting to start the exports business , i need guidance from you.

suchita: I have read your article on rewards for earning foreign exchange. I am a sole proprietor of a company involved in sending healthcare professionals to USA. We are the staffing company earning foreign exchage for the country. For example I earned about $ 30000 last year and hope to earn similar amount this year.

BASAVARAJ N C : Is it Merchant exporter required to registered under Central Excies ? IF Not means Please share under which section it is mentioned .

Sailajananda Jana: We are a new export house and got IE code for doing IE business. We identified supplier for Parboiled Rice for export. However we are acting as middlemen in this export activity. The exporter is asking us to source the item and complete FOB Port delivery by raising invoice in his name.Therefore there are involvement of two invoices as buy and sell. We have following quires - 1. Would we be treated as deemed export in this transaction. 2. What types of tax implication we need to follow. We are based out at West Bengal and sourcing and export activities would be at Gujarat state. Is there any VAT/CST issue will come. We do not have any registration of sales tax. 3. Is there any eligibility of export credit benefit. Kindly guide us.

Samuel: I have formed a Private Ltd company with following in MOA. 1. To carry on the business of Engineering Consultancy Services in India, Middle East and other foreign countries. 2. To carry on business of distributing, retailing engineering products and spare parts for machinery and also to import and export and trade in any of engineering products, machinery and spare parts of machinery. Now I am applying for IEC and I want to get, "Merchant Exporter" code. If I get as, "Service Exporter", can I do both Service and Merchant Exporter as my company MOA says both?

Malligaraj: As we are going to start small hydro Power plant we are importing of equipment & machinery under duty draw back scheme,EPCG scheme , under deemed export scheme

vinoth k : Dear Sir, a company which provides only freight forwarding and relocation services globally for it's clients, but has IE Certificate under the category of MANUFACTURING EXPORTER. Is it Legally correct and there will be any penalty or anything if the certificate should have been obtained as a SERVICE EXPORTER. Kindly Clarify. Thanks in advance.

parth patel: hy sir , i m studying master of engineering in mechanical eng. in canada. i want my future in export import.i want to do this business from canada and i have little bit knowledge of this business. but , i can not do this officially here as a student.i have lots of contacts of exporters in india ,and i have some engineering products also for trading . but no contacts in canada. so , by what way i can do this business from here. please suggest me some procedure and ideas for this business.. email : parth71086@yahoo.in m: 226 975 3161 thnxs....

minhaj badarpura: hi sir,i m frm gujart,india,i m a manufacturer..i m manufacturing the spare parts of commercial vehicle nd also car spare parts like bonnet,bumper,roof,door etc

ajit: Sir I m a merchant exporter I hv buying order from my importer client. My goods which I intend to export are excise able ine. Sir I want to know if I require any excise registration if my co for the same

Sonal: Hi Sir, I live in UAE and I wish to start my own business dealing with raw foodstuff and spices etc to the UAE market. I have a registered firm in MUMBAI. I would like to trade foodstuff from India to UAE. I need to make an IE Certificate under the category of MERCHANT EXPORTER ? How do I go about this procedure? How long does this process take? Please reply asap.

Dishant tibrewal: Hey, i am a class 12 student right now but i seriously want to persue my career as a merchant exporter. I am very much interested in doing export business as this will open me up to the international market and help me and my country earn some foriegn exchange. My queries are. 1) when can/should i start? 2) what are the graduation courses i can do for learning exporting skills? 3) what will be my minimum capital requirement? 4) what is the minimum % margin a merchant exporter has?

S KRISHNAMOORTHY: Sir, M/s X is our merchant exporter, who is having advance license, procuring goods manufactured by us and exporting them under the said advance license. If he adds our name as manufacturer in the advance license, can we get any export benefit? Kindly clarify

Nitin Malhotra: Sir i have a doubt regarding future prospect of exporters.Because i read in many articles that from last year export from India is falling down in every sector So, i need your advice for new exporters specially Merchant Exporters.Do they take entry in the trade?Is this the right time?Is the business profitable?

K. Satheesh Kumar: My self Satheesh kumar from Kanchipuram Tamilnadu , we basically a weaver of silk saree , Cotton silk saree , handloom weaving from home. We want export our product “saree” to world wise Kindly guide me / advise me 1) How to find a buyers for my product 2) How I can promote my product exports

vishal puri: Dear All, We are a manufacturer of medical Machines (i.e. X RAY MACHINE), Our a dealer want to export 4 machines but he have no time for CT-1 & Bond formalities, can we (Manufacturer) export in behalf of merchant exporter. without payment of duty against our Letter of undertaking. Please clarify our doubts at the earliest possible. regards vishal puri

Ravin Dhankecha : This is Ravin from Sachin, Surat. working in Export firm company located in Surat Special Economic zone as custom Executive. I have referred your website howtoexportimport.com and it's very nice and very useful for newcomers who want to start export import business. now I am planning to start an own business but I need our help and that is HOW TO "SELECT PRODUCT FOR EXPORT". please guide us or share important document or web link where can I find useful data.

shivendu kumar : I firstly wish you to a very very happy and prosperous new year 2016. I want to take help regarding export my medicine in Gulf countries. I have a Medicine company which is involved in Marketing in India. It will be helpful for me if you support to me in this regard. My Product name is as follows. 1.Ferrofame (Softgel Iron Capsules with Vitamins) 2. Pantorid_D (Gas Purpose Cap) 3. Zentovit (Multivitamins in Softgel Capsule)

Piyush Chorghe : I am from Mumbai, I read your blog how to start export import business it is good knowledge for feature exporter those who start export business sir, I registered import export code but how to find products for export I want to start merchant export bussiness, please sir help me to find export product & which product best for export from India like. Handicraft, engenring, lether.

mani shankar : i want to register my company in SSI...i am merchant exporter. but there is no option for export. i had searched in service category don't have any option for exporters. which one i have to select sir? and also ask machine power details in that application what can i do sir? please help me sir.

shashi bhushan: I am merchant exporter and want to export a material from china to africa so for this could i need some specified types of export code in my old Iec Certificate.

Siddhant Jain : I'd like to convey my sincerest thanks for all the content and articles you have put up on howtoexportimport.com! Your website has greatly helped me in understanding the working of international trade and related topics such as finance, documentation, logistics, etc. I was hoping you could guide me on the necessary tax registrations necessary for merchant exporters (Pvt Ltd company) in India as I could not find much relevant information regarding the same.

Subhradeep Biswas: For the long time i am thinking that do a buisness. I am alooking a export buisness by part time . Once i will get the consistency profit through this business, i will left my current job and would be a Merchant Exporter. I don't know how do I start my business. My queries are below as a merchant exporter, first let me know the product having good market return in terms of profit as well as to earn foreign currency . Secondly to get buyer information out side india?

KUNJAL: We are merchant exporters. Which type of goods we can export.

Rajesh: I sir I have registed GST as sole proprietor as merchant exporter, and working from home as a single person however I am confused if I am required to apply for shop and establishment licence even if I am working from home ? GST registered in kerala, Pls advise

DIWAKAR AGGARWAL: I am manufacturer Air cooler

m a exports: how to export software,what documentation required, how to channelise foreing inward remittance,what formalities required for software exports.

pARESH: i am liquor mfg. and exporter , which code select in iec

JAGADISH R: I'm New To Start A Manufacturing Firm Which Involves Import Of Raw Materials From Outside The Country & Export Of Finished Goods Out Of Country. Both Export & Import Of Items Need Certain Documents For Free Movement But I'm Not Sure What To Do I Want A Experienced Person Who Assists Me In A Right Way In All Steps Of My Business

hemant: I'm Personally Very Thankful To You For Sharing The Details Free For Everyone Who Wants To Be An Exporter ,importer. Sir i Am Confusing About Which Category Should i Choose Between is manufacturer Exporter or Merchant Cum Manufacturer Exporter. What Are The Pros ,Cons Of Thiers . Right Now i am Manufacturer Having Manufacturing Unit in Ahmedabad,Gujarat But in Future May be. Any Good Product I Found To Export As Merchandise Export. If Possible Please Suggest Me The Category i Should Choose in IEC Application Form & Also Suggest Me Can i Export Any Other Product Which I Am Not Manufacturing When I Had Chosen The Manufacturer Exporter Category in IEC Form.

LOZENGE EXPORTS : your website, really its a good venture to the beginners and exporters We are a company called Lozenge Exports based in thrissur, kerala we are planning to export some food supplements and vitamins, not medicines We are only a trader, can we export after buying from the manufacturer? we have got only a licence from panchayat stating for trading of bottles, cosmetics and spices can you please help to give direction on this thanking you in advance

imkar: I am very much interested in Import Export business.I would like to ask if would mind mentoring me.I have just completed my graduation and want start my business as a merchant exporter but I am completely directionless in the regard. I shall be much obliged if you take my request into consideration. Looking forward to hearing from you.

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Twinkle: Which category is most profitable for importing and exporting from India to other countries? Please Suggest.... waiting for your response.

Sridhar: Sir, What to select in "Category of Exporters" if I am an Importer ?

ANKIT : Dear Sir, We have IEC code register in Marchant export category .Can we import & export products in this category . Please inform IEC Categeries & brief about . Thanks & Regards Aniket K

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