Which is more beneficial Merchant Exporter or Manufacturer Exporter?, Customs - Exim - SEZ

[Praveen Sarda]

Dear Sir

We are going to start business as a merchant exporter. We will export moulded plastic items in Gulf & African countries. Kindly suggest we should trade it on our brand name or should be on Manufacturer brand name?

Also what are benefits under export scheme for merchant & manufacturer exporter?

Thanks

Posts / Replies

[KASTURI SETHI]

Sh.Parveen Sarda Ji,

Manufacturer-exporter is more beneficial than Merchant Exporter. .As Merchant Exporter, there are two transactions. One is between Merchant Exporter and manufacturer and other is between Merchant Exporter and foreign buyer. As Merchant Exporter paper work is more than manufacturer-exporter. As Merchant Exporter you are dependent on the manufacturer. Export benefits are the same.

[MUKUND THAKKAR]

I agree view express by shri Kasturi Sethiji,

In addition export benifit remain same for both. if you are act as merchant exporter your profit will be share with manufacturer. if it is nominal than need not be a manufacturer exporter.

This is my view

[KASTURI SETHI]

Sh.Sarda Ji,

I agree with a new point suggested by Sh.Mukund Thakkar, Sir. There are so many pros. and cons. on this issue and the final decision is to be taken by you after weighing pros. and cons. and personal circumstances and your convenience.

[Ganeshan Kalyani]

Sir, rich discussion in fact. Enriched my knowledge. Thanks.

[Kishan Barai]

I am in favor of merchant exporter because based on my experience with foreign clients mfg unit cant provide quality control as provided by merchant

> Production in most MFG units is done lot wise, Lot A is best quality lot, Lot B is mid level, Lot C is poor quality.

now if they don't sell C lot they will occur huge loss. So they have opt for stock clearance. So if they get export order of whole container they will provide 75% A quality & add 25% of C lot quality. I have seen this in many MFG units in India.

> When a merchant get export order he will visit industry and will check each and every goods loaded in container. If merchant has got sound practical knowledge in export rules and product. Its best. Merchant will never allow lot C or lot B lot.

> merchant can export in this own brand name

> there are many mfg units available to help merchant exporter and to make products for them, almost all mfg units do this...

> I am supporter of Make in India, so if you have capacity to establish unit opt for it, if you don't opt for merchant exporter with practical knowledge its really good.

Cordially yours,

Kishan Barai