If you are engaged in import and export business or thinking to start one, do you know which category are you in? There are different categories of exporters like manufacturer exporters, merchant exporters, service exporters, deemed exporters, project exporters etc. The definition, services and functions of each category are different than that of others. You need to necessarily know these classifications before you start your export and import business. Get in touch with Canada car import calculator to get all the required consultancy and services for your export and import business. Go through the below to know what category of exporter you are.
A person already engaged in business and trade and exporting goods or wants to export goods is called a merchant exporter. A merchant exporter does neither manufacture goods nor does the processing of goods. But he procures goods from a manufacturer and exports in the name of his farm. A merchant exporter does not own a factory or production unit, rather procures the excisable materials from the international market directly from the production or processing unit of the manufacturer. A merchant exporter can get the goods with or without the sealing or through the factory of the manufacturer for compromising rebate.
A manufacturer exporter does both. He or she manufactures the goods as well as exports the goods or wants to export goods. The manufacturer exporter produces the materials or does the processing of the materials and exports the finished materials in his or her own name or brand. However, the manufacturer in the process of producing materials also procures raw materials. The manufacturer exporter does the entire cycle of procurement of raw materials, processing them and producing the final materials and finally exporting them.
In eh cases of merchant exporter or manufacture exporter, the goods the export are visible. But in the case of service exporter, the service he or she exports is not visible. In spite of the invisibility of the services, the service exporter earns foreign exchange. One of the examples of service export is software export. Similarly, tourism, healthcare, hotel and hospitality, various kinds of consultancy services are classified under service export.
Professional taking up international contracts for various projects like designing, erection, supply, manufacturing etc. are called project exporters. As they earn foreign exchanges, they are counted under project exporting.
Besides the above categories, there are other categories like deemed exporters and country- specific exporters. Different countries have their own classifications of export categories. You need to seek for the export categories of your country and the country you intend to engage with export and import activities.