Types of Exporters in a Country
In general, the sense to send products to another country is export. But export means to sell the products to different countries. Export is a very important part of foreign trade. They are the goods and services produced in one country and purchased by citizens of another country.
One of the basic elements of exporting is the ‘exporter’. The nature of the exporter varies with the nature of the exporting. The different exporting format creates different types of exporters. Generally, exporters are divided into two groups:
- Direct Exporters.
- Indirect exporters.
The direct exporters are of four types. Such as-
- Manufacturers or producers,
- Wholesalers or distributors abroad,
- Jobbers or Import House abroad.
- Deemed Exports.
There are five types of exporters of indirect exporters. Such as –
- Export Merchants,
- Export agents or indenters,
- Export commission agents,
- Forwarding agents,
- Importers buying houses.
Direct Exporters: Direct exporters are the exporters who are involved with the exporting procedure directly.
- Manufactures: Manufactures sell or export their products by contacting the foreign buyers directly. In this situation, manufacturers maintain all the formalities to export by themselves. Manufacturer exporters are the manufacturers who export goods directly to foreign buyers without any intervention from intermediaries.
- Wholesalers or Distributors in Abroad: Manufacturers can export the products to wholesalers or distributors from abroad. They are the exporters who purchase goods from the domestic market and sell them in foreign countries. Here, the wholesalers or the distributors collect the products and reach to the importers.
- Jobber or Import House in Abroad: Manufacturers can export their products by the jobbers or the import house in abroad.
- Deemed Exports: In deemed exports, some of the other way the transaction boost to earn foreign exchange. Deemed exporters are also eligible for government assistance within the parameters of earning foreign exchange.
Indirect Exporters: Indirect exporters are the exporters who are not directly involved with the export trade. They involve indirectly;
- Export Merchants: Export merchants are the businessmen of exportable products who collect the products from the country and sell the products to foreign buyers. Merchant exporter procures the material from a manufacturer and exports in his firm’s name. Here merchant exporter procures the order from the international market. Merchant exporter does not have its own manufacturing unit or processing factory.
- Export Agent or Indenters: Export agents or indenters normally collect the order and according to this order they collect products from exporters and sell to the importers. The manufacturer exporter procures and processes raw materials at his factory and exports finished products. Here, the manufacturer exporter procures the export order and exports in its own name. Again they analyze the market. Both parties give them a commission.
- Export commission agents: Export commission agents purchase the products from manufacturers by their own responsibilities and sell to the importers. They work as agents of importers and they also get the commission for their every work. Tourism, Software, Health Care, Consultancy, Hotels, etc. are other examples of service exports.
- Forwarding Agents: Forwarding agent work as the agent of importers. To do all the formalities of import and to maintain all the rules and regulations of tax are the main task of forwarding agents. There are many professional companies undertake contracts for Designing, manufacturing, supply, erection, commissioning, etc. They also get a commission.
- Exporter buying house: Exporter’s buying house is employed by the importers to collect the products from manufacturers directly and reach the importers. When they earn foreign currency on their sale, they fall under Project exporters and eligible for all assistance and support as project exports. They work as the order of the importers.