What is the definition of manufacturer exporter?

[Dinesh kumar]

What is the procedure and required documents to get the Manufacturer Exporter tag ?

How is a Manufacturer Exporter different from a Merchant Exporter?

While issuing the RCMC (Registration Cum Membership Certificate) by Export Promotion Councils, what do they check before issuing the appropriate tag to exporters?
 

[Sadanand Bulbule]

A Manufacturer Exporter is an exporter who manufactures the goods in his own production unit/factory and exports them directly. In contrast, a Merchant Exporter procures goods from third-party manufacturers and exports without owning a manufacturing facility.

Procedure & Documents to get Manufacturer Exporter tag (for RCMC):

1. Apply for RCMC to the concerned Export Promotion Council.

2. Submit IEC (Importer Exporter Code) copy.

3. Proof of ownership of manufacturing unit (Factory/SSI/MSME/Udyam/Industrial license).

4. GST registration.

5. Memorandum & Articles of Association / Partnership Deed / Proprietorship proof.

6. Chartered Engineer / CA certificate confirming manufacturing activity.

7. Self-declaration regarding the nature of exports.

Verification by EPC before issuing RCMC:

• They check proof of manufacturing activity (factory registration, MSME certificate, Udyam, pollution clearance if applicable, etc.).

• Ensure IEC is valid.

• Confirm whether applicant is a manufacturer exporter or merchant exporter based on documents.

Thus, the key difference lies in whether the exporter actually manufactures the goods (Manufacturer Exporter) or trades in goods produced by others (Merchant Exporter)

[Shilpi Jain]

Para 11.31 of the FTP 2023 defines manufacturer. If the activities carried out by the exporter falls therein, he can be regarded as a manufacturer exporter.

[Dinesh kumar]

Why does a merchant exporter obtain an advance license when he exports raw materials even though he doesn’t have a manufacturing unit? How does he use the raw materials?

AI Summary

Manufacturer exporter designation requires demonstrable manufacturing activity and specified RCMC documentation for verification. Manufacturer Exporter means an exporter who manufactures goods in its own production unit and exports them directly; merchant exporters procure from third parties. To obtain the Manufacturer Exporter tag on an RCMC, apply to the Export Promotion Council with IEC, proof of manufacturing unit (factory/MSME/Udyam/industrial licence), GST registration, entity incorporation documents, a CA/chartered engineer certificate confirming manufacturing activity, and a self-declaration. Councils verify IEC validity and manufacturing proofs (including pollution clearance where applicable) to decide the appropriate tag, with FTP definition of manufacturer serving as a reference.