Types of Export Businesses

Export businesses are mainly classified into export-traders, export-manufacturers and service-exporters.

Export-Traders

The export-traders include the export companies known as trading houses, trading companies, buying offices, buying agents, purchasing agents, resident buyers, sourcing agents, export representatives, export distributors, export agents, export management companies (EMCs), and manufacturers' representatives.

The export-trader operates on a buy-and-sell basis or a commission/fee basis, or a combination of these two. In the buy-and-sell basis, the export-trader buys from export-manufacturers and adds a markup to the export price. In the commission/fee basis, the export-trader collects a commission or fee from the export-manufacturer or the foreign importer, or from both of them without adding a markup to the price.

Export-Manufacturers

Export-manufacturers include the manufacturers, producers, assemblers and processors of export goods. Export-manufacturers either directly export the goods or indirectly export the goods through the export-traders.

Service-Exporters

Service-exporters include the banks, ocean shipping (steamship) companies, air cargo companies or airlines, trucking companies, rail carriers, insurance companies, freight forwarders or consolidators, consulting firms, and miscellaneous service companies. Service-exporters provide services to export-traders and export-manufacturers.