Which is more beneficial Merchant Exporter or Manufacturer Exporter?

[Praveen Sarda]

Dear Sir

We are going to start business as a merchant exporter. We will export moulded plastic items in Gulf & African countries. Kindly suggest we should trade it on our brand name or should be on Manufacturer brand name?

Also what are benefits under export scheme for merchant & manufacturer exporter?

Thanks

AI Summary

Exporter status choice affects paperwork, control, and profit allocation; export incentives remain the same for both.
Choice between manufacturer-exporter and merchant exporter affects transactional structure, control, and paperwork rather than entitlement to export incentives. Manufacturer-exporter entails a single transaction and lower documentary burden; merchant exporter involves two transactions, greater paperwork, dependence on manufacturers, and profit sharing. Merchant exporters retain the option to export under their own brand and may exercise stronger pre-shipment quality control, while manufacturers may mix production lot qualities. Decision should be based on capacity for manufacturing, control over quality and branding, and tolerance for administrative burdens.