Meaning of merchant exporter and difference between manufacture exporter and merchant exporter

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“Merchant Exporter” means a person who is engaged in trading activity and exporting or intends to export the goods. Merchant exporters purchase the material from manufacturer and export the same.

Manufacturing exporter means a person who manufactures the goods and export or intend to export the goods.

The following points show the difference between the manufacture exporter and merchant exporter.

Sr. No. Manufacturing Exporter Merchant Exporter
1.       Meaning Manufacturing exporter is the person who export
the goods manufacture by him.		 Merchant exporter is the person who engaged in
the trading activity of export.
2.       Delivery
Schedule		 It is possible to manufacturing exporter to
deliver the goods as per the given time schedule.		 Merchant exporter depends on manufacture for
delivery of the goods. It may difficult him to deliver the goods as per time
schedule.
3.       Preference Generally the overseas importers always prefer to
buy from manufacture.		 Some overseas importers also prefer to buy from
merchant exporter if he makes some value addition in the product.
4.       Sampling Manufacturing exporter can prepare the sample as
per requirement of the importer.		 Merchant exporter is fully depends upon the
manufacturer for developing new samples.
5.       Modification
in the product		 Any modification in the product can be done
easily by the manufacturing exporter.		 Modification in the product is the big challenge
for merchant exporter due to his dependency.
6.       Value
addition		 Manufacturer has relatively less scope for value
addition in the product. He has more attention on the manufacturing
activities.		 There is large scope of value addition in the
products. The merchant exporter can attract the importer with value addition
services like packing, re-packing, labeling, re-labeling, kit making, set
making, etc.
7.       Wide
Varieties of goods		 Manufacturer exporter generally exports its own
goods.		 The merchant exporter can offer wide varieties of
the products of different manufacturers.

This is the main different between manufacturing exporters and merchant exporter. However, the merchant exporter in the agro commodities (like fruits, vegetables, cereals, etc.) can have big advantages, as growers (farmers) are generally not direct exporters.

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CA Rajendra Shete
The author is FCA, Dip. IFRS (ACCA, UK). He is practicing Chartered Accountant since 2004. He can be reached at ca.rajendra.shete@gmail.com. CA Rajendra Shete is the author of the book The Rules and Red Flags. - To know more about the book pls visit !

1 thought on “Meaning of merchant exporter and difference between manufacture exporter and merchant exporter”

  1. I want to start an export import business. Please help me to progress of the business. Here in kerala there is pepper, cardamom, ginger,etc.can you give me good advices

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