Types of exporters

Types of Exporters

1. TYPES OF EXPORTERS By Manish Manghnani

2. DIFFERENT TYPES OF EXPORTERS Manufacturer Exporter Merchant Exporter Export Houses Star Export Houses Trading Houses Star Trading Houses Canalizing Agencies State Export Corporations Export Consortia Government Public Sector Trading Corporation

3. MANUFACTURER EXPORTER 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. They are not dependent on intermediaries for exporting. some exporter manufacture superior quality called "export quality products". Since export trade requires huge financial support only large organization can manage this. In India large business houses such as Tata, Birla's, Ambuja Cement,L&T etc. act as manufacturer exporter

4. MERCHANT EXPORTER Merchant exporters are primarily marketing trading organizations specialized in exporting Indian goods. They book orders directly or through their agents & act as a middlemen between Indian Exporters & Foreign Buyers. Merchant exporters focus on the demands in foreign market & therefore are in less risk, by adapting export marketing strategy. Merchant exporters export products like food Products, Beverages, Exclusive Furniture, Cement, Oil Painting, Computer Technology Items, Processors, Hard Drives, Electrical Products etc; Via. Sea freight, Air freight, Customs House Agents, CHA, LCL, FCL etc.

5. EXPORT HOUSES Export House is defined as a registered exporter holding a valid Export House Certificate issued by the Director general of Foreign Trade in India.

6. OBJECTIVES OF EXPORT HOUSE To make available supplies of essential commodities to consumers at reasonable prices on a regular basis. To ensure a fair price of the produce to the farmers so that there may be an adequate incentive to increase production. To minimize violent price fluctuations occurring as a result of seasonal variations in supply and demand. To arrange for supply of fertilizers and insecticides To arrange for storage, transportation, packaging and processing.

7. STAR EXPORT HOUSE In April 2007 the government replaced the concept of two star export house by star export house. The units eligible to apply for the recognition of star export house include manufacturer exporters, merchant exporters, units in SEZ etc. In order to qualify for star export house, the exporter must have aggregate export performance of rs.100 crore during the four years computed in FOB performance.

8. STATUS CATEGORY Status Category Export Performance FOB /FOR (as Converted Value in US $ Millions) One Star House 3 Two Star House 25 Three Star House 100 Four Star House 500 Five Star House 2000

9. TRADING HOUSES A business that specializes in facilitating transactions between a home country and foreign countries. A trading house is an exporter, importer and also a trader that purchases and sells products for other businesses. Trading houses provide a service for businesses that want international trade experts to receive or deliver goods or services

10. STAR TRADING HOUSES The government of India has recognized a new class of trading house called star trading house to facilitate global marketing activities in the export import policy. 1990-93 exporters having exports during the preceding three licensing years of Rs.500 Crores fob shall qualify the exporter for the recognition as a star trading status.

11. OBJECTIVES OF STAR TRADING HOUSES To make available supplies of essential commodities to consumers at reasonable prices on a regular basis. To ensure a fair price of the produce to the farmers so that there may be an adequate incentive to increase production.

12. CANALIZING AGENCIES Canalizing agencies are concerned with production, distribution and marketing of goods and services. The main canalizing agency is the State Trading Corporation of India which was established on May 18, 1956. For example : MMTC Ltd. Metals and Minerals Trading Corporation of India, is one of the two highest earners of foreign exchange for India and India's largest public sector trading body

13. STATE EXPORT CORPORATION In India some state government have set up export corporations to promote exports of the products manufactured by the small scale industries(SSIs) and cottage industries. Some of the state are Gujarat, Uttar Pradesh and Bihar Which have set-up State corporation for promoting Small Scale Industries(SSIs) and cottage industries. These are exclusive export corporations engaged in export marketing of SSIs and cottage industries only.

14. EXPORT CONSORTIA Manufactures from the small scale sector find it difficult to export on their own due to financial, marketing and other difficulties. They form co-operative marketing groups for joint export marketing Small/ individual marketing firms get the benefit of joint marketing research, joint publicity abroad and the benefit of joint shipment of goods

15. GOVERNMENT PUBLIC SECTOR TRADING CORPORATIONS The government of India has to set up a number of government/public sector trading corporation in the field of foreign trade. corporations support and supplement the efforts of private sector export organizations. Corporations handle actual export-import transactions maintaining offices/branches abroad and function like any other commercial unit in the private sector. operation is done as per the guidelines issued by the government from time-to-time.

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