Merchant Exporter And Manufacturer Exporter

If you want to know what is the difference between merchant exporter and manufacturer exporter.

You are on the right page!

This article will help you to understand the difference between merchant exporter and manufacture exporter.

Hello, friends welcome to another fresh article on “Indiancustoms.info”, Here in this article I explained what is a merchant exporter and manufacturer exporter.

Most people are confused and can’t understand the difference between merchant exporter and manufacturer exporter.

They all are the same or they can’t see any difference in manufacturer exporter and Marchant exporter.

But don’t worry about that this article is especially for those who want to understand the difference and importance of both exporters.

Here we explain how both exporters work and how to identify the manufacturer exporter and merchant exporter.

Also Read:- Incoterms® 2020 [In Export-Import Business]

Difference Between Merchant Exporter And Manufacturer Exporter.

I know you are curious to understand the difference between merchant exporter and manufacturer exporter.

Merchant exporters and manufacturer export both are contributors to our economic growth.

Both types of exporters create job vacancies for the country.

Now let’s find out who is a merchant exporter and who is a manufacturer exporter. First, we understand Who is a Merchant exporter?

Also Read:- Meaning of Exports And Imports

Who Is Merchant Exporter?

“Merchant Exporter” means an exporter engaged in trading activity and exporting or intending to export goods.

Merchant exporters purchase goods from manufacturers or markets and export them to their company name and brand.

They don’t have their manufacturing unit or they did not manufacture anything.

Let’s understand it with an example:-

For example, If you got an order from Dubai, UAE for 2000 kgs of vegetables and you accept the order and decide to purchase vegetables from farmers or markets.

After completion of the packing process and export customs clearance process, you export the vegetables to your Dubai buyer.

Now you will be known as a “Merchant Exporter”.

I hope now you understand who is the merchant exporter, now it’s time to understand who is the manufacturer exporter.

Also Read:- Export General Manifest (EGM) [Importance Explained]

Who Is Manufacturer Exporter?

“Manufacturer Exporter” means an exporter who manufactures goods and exports or intends to export such goods.

The manufacturer exporter purchases or imports raw materials and processes raw materials at his factory and exports finished products.

Manufacturer exporters always produce goods at their factories.

Let’s try to understand it with an example.

For example, If you got an order from Canada, or the USA for 1000 PCS of ladies’ T-shirts and you accept the order and decide to purchase fabric and other raw materials from the market to produce ladies’ T-shirts.

After completion of production, packing, and export customs clearance process your export goods to your Canadian buyer.

Now you will be known as a ” Manufacturer Exporter “.

Here in this case you purchase raw materials from the local market but some exporters import raw materials under the Advance license scheme.

Under advance license, manufacturer exporters can import raw materials duty-free.

Merchant exporters and manufacturer exporters always get subsidies and other benefits from Governments and the Government always promote export

I hope you now understand what is the difference between merchant exporter and manufacturer exporter. If anyone has any suggestions or queries please comment in the comment box.