SGM COLLEGE OF COMMERCE &

ECONOMICS
STD: S.Y.B.M.S.
SEMESTER IV
 
SUBJECT:
Export – Import
Procedures and Documentation
 
TOPIC:
Export Marketing Organisations
 
SUBMITTED TO:
PROF. Deepak Salve
PRESENTED By :- GROUP

Name Roll no.

 ARUN JAMES 03
 JULFIKAR ALI 17
Export Marketing Organisations

 Export Marketing organisations are

specialised agencies concerned with trade.

 These organisations explore foreign

market and arrenge to send goods to
foreign buyers as per the order received.

 Export Marketing organisations are

different from Export Promotion
organisations .
Structure of Export Marketing Org.
1. In-built Export Department

2. Independent Export

3.Export Subsidiary

4. Export Subsidiary in Importer’s Country

1. In-built Export Department

 Under this structure, an exporter will create an export

department as one of his internal department.

 This department will deal with the export marketing while

others may deal with domestic marketing.

 This organisational is simple and can be used by a

company which exports on small scale along with large
scale internal domestic marketing.
2. Independent Export

 Here, the company will have separate export division for

export marketing.

 The division will be given budget as well as specialised

staff and necessary facilities for the conduct of export
marketing activities.

 The division function independently but within the overall

supervision of the top management of the company.
3.Export Subsidiary
 In this structure, export subsidiary is started to undertake export
marketing activities.

 Such arrangement convenient when export on a large scale and

long term export planning is required to be undertaken.

 The subsidiary may undertake production of export quality goods

as well as export marketing operations.

 Creation of export subsidiary is a better alternative to export

division in certain respects.
4. Export Subsidiary in Importer’s Country
 The exporter may establish export subsidiary in the foreign
country / importer’s country to undertake export
marketing activities.

 Such subsidiary may undertake production as well as

export marketing activities or may look after export
marketing only.

 This arrangement convenient when exports are made on a

large scale to a specific country.
Types of Export Marketing Orgs.
3.Star Trading
2. Merchant
1.Manufactur Houses of five
er Exporters Exporters categories

5.State
4. Canalising
Export
6. Export
Agencies
Corporations Consortia
7. Government
Trading /
Marketing
Corporations
1.Manufacturer Exporters
 It is basically manufacturer but also exports his products abroad.

 He gets profit out of his export transactions relating to products

manufactured by him only.

 They are large manufacturing org. which undertake export

directly.

 In India Tatas, Birlas and Kirloskars etc. are the examples of this
type of exporters.
2. Merchant Exporters
 Export merchant is a person or organisation whose business is to
buy goods made in his home country , ship them abroad to
another country and them there, paying all expenses and keeping
all the profit.

 It is a middleman in export marketing and looks after exporting

goods abroad.

 They get the benefit of large-scale export operations.

 They enjoy benefit of specialisation.
 Small-scale manufaturers prefer to export through marchant
exporters due to limited financial support.
3.Star Trading Houses of five categories
 The Foreign Trade Policy 2004-09, has replaced the Export House &
Trading Houses by Star Export Houses.
 The Export Orgs. Eligible for the status of Star Export House are :
 1. Merchant & Manufacturer Exporters.
 2. Export Oriented Units (EOUs).
 3. Units located in SEZs, AEZ, EHTP, STP & BTP.
 4. Service Providers.

The categories of Star Export Houses are :

Category / Status Performance
FOB Value (in Rs. Crore)
1. One Star Export House. 15
2. Two Star Export House. 100
3. Three Star Export House. 500
4. Four Star Export House. 1,500
5. Five Star Export House. 5,000
4. Canalising Agencies
 In India, export of certain commodities / items is
undertaken only by canalising agencies decided by the
government under Exim policy.

 For example, minerals are canalised through MMTC or

NAFED undertakes the export of agricultyral commodities.

 These agencies export specified items on a large scale and

make positive contribution in the promotion of export.
5.State Export Corporations

 In India, some State Govt. have established their own

export orgs. For the promotion of export of certain items at
the state level.

 Such states include Gujrat, U.P. & Bihar. The contribution

of such corporations in exports is limited.

 However they are treated as Export Marketing Orgs.

6. Export Consortia
 Manufacturer from small scale sector find it difficult to
export on their own due to financial, marketing and other
difficulties. They form co-operative marketing groups for
joint export marketing.

 Here, small / individual marketing firms get the benefit of

joint marketing research, joint publicity abroad and the
benefit of joint shipment of goods.
7. Government Trading / Marketing Corporations
 In addition to private sector orgs., the Govt. of India set up a
number of govt. / public sector trading corporation in the field of
foreign trade. Such corporations support and supplement the
effort of private sector export organisations.

 Such public sector trading corporation are :

◦ 1. The State Trading Corporation of India (STC).
◦ 2. The Minerals & Metals Trading Corporation. (MMTC).
◦ 3. Project and Equipment Corporation.
◦ 4. Government Corporations such as Jute Corporation of India (JCI),
Cotton Corporation of India, National Textile Corporation and so on.
 www.wikipedia.org

 Bibliography

 Export-Import Procedures & Documentation (By Kale-Ahmed)