5/6/2023 0 Comments Merchant exporter![]() Under the Earlier Central Excise provisions, Merchant Exporter have to get CT-1 form from the Jurisdictional Commissioner / Deputy Commissioner / Asstt. Selling through such merchant exporters automatically ensures that the goods will reach the important distributors and through them down the distribution system and therefore enable penetration of product and brand image in the overseas markets.Export entry through merchant exporters is the easiest and least costly.The manufacturer is free to concentrate on production and not to bother about export marketing and other export formalities.They are frequently arranges overseas buyers and provide sales opportunities.The firm does not have to spend money on market research or on setting up branches abroad.Export merchants usually finance manufacturers against purchase of their goods. ![]() ![]() The merchant exporter takes care of all botheration involved and assumes all sales and credit risks.Merchant Exporting is more suitable for a small company which does not possess adequate financial and managerial resources required for making a successful entry in to a foreign market. This method of exportation through Merchant Exporters is useful when the company is small and lacks expertize in exporting and it’s related nitty-gritties, therefore, not in a position to start exports on it’s own.Īdvantages of Exporting through Merchant Exporters: In addition, merchant exporters often co-operate with producers in developing countries to adapt products, for instance, by providing product specification giving designs and styling guidance, offering in quality control, and counseling on packaging, labeling and shipping. They often have specialized resources and may have their own Shipping, Documentation and Insurance Department and also may maintain their branches at port towns and in important centers abroad. They may have technical and commercial expertise who can guide on product development, packing, inspection, regulatory and other related aspects of exports. Merchant exporters are usually well financed and they usually extend pre-shipment finance to supporting manufacturers. They often specialize in certain commodities or in certain areas. The nature of their business makes it possible for them to assess the marketability of products and the prospects of their success. They usually have a system of gathering market information and keep a close watch on market trends. ![]() They may have extensive contact network all over the specific regions in the world and have access to focused markets. They have generally intimate knowledge of export markets and exportable products. Merchant exporters sell and buy on their own account and thus assume the risks involved in exporting. They may not have their own manufacturing unit or processing facility. Merchant Exporters buy goods from the Indian manufacturers and sell them abroad. ![]() Para 9.32 of FTP, “ Manufacturer Exporter” means a person who exports goods manufactured by him or intends to export such goods. Merchant exporters are instrumental in a boosting of country’s exports especially exports from MSME and small manufacturers.Īs per Foreign Trade Policy, Para 9.33 “ Merchant Exporter” means a person engaged in trading activity and exporting or intending to export goods. ![]()
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