MCOM 2nd Year Direct Exporting Study Material Notes

EXPORT HOUSES VS. TRADING HOUSES

Export House is defined as a registered exporter holding a valid Export House certificate issued by the Director General of Foreign Trade.

The objective of the scheme is to recognise established exporters as Export House, Trading House, Star Trading House, and Superstar Trading House with a view to build marketing infrastructure and expertise required for promotion. Such Homes should operate as highly professional and dynamic institutions and act as important instrument of export growth.

Merchant and manufacturer exporters EOUS and units locate in EPZ/EHTP/ STP may be recognised as Export Houses, Trading Houses, Star Trading Houses and Super Trading Houses subject to the fulfillment of the criteria laid down by the government. 

CRITERIA FOR RECOGNITIONS OF EXPORT HOUSES AND TRADING HOUSES 

Category FOB Criterion NFE Criterion
Export Houses Trading Houses Star Trading Houses Superstar Trading Houses Average FOB value of exports made during the preceding three licencing years in rupees. FOB value of exports made during the preceeding licensing year in rupees Average NFE value of exports made during the preceding three licensing years, in Rupees NFE value of exports made during the preceding three licensing years, in rupees
15 crores 75 crores 375 crores 1,125 crores 22 crores 112 crores 560 crores 1,680 crores. 12 crores 62 crores 312 crores 937 crores  

For the purpose of recognition, weightage is given to certain categories of exports as indicated below provided such export are made in freely convertible currency:

(i) Double weightage on FOB or NFE on the export of: 

(a) Products manufactured by small-scale/tiny/cottage units respectively. 

(b) Fruits and vegetables, floriculture and horticulture produce products. 

(c) Goods manufactured in North Eastern States. (ii) Double weightage on exports to specified developing countries. 

(iii) Double weightage on FOB value and Triple weightage on NFE On exports of products manufactured by handlooms and handicraft sector (including handloom silk), hand-knitted, carpet, carpet made of silk etc.

Export Houses/Trading Houses/Star Trading Houses/Superstar Tradin Houses are entitled to special import licence as per the criteria laid down, relate to the export/net foreign exchange earnings the amount of entitlement is lowes for Export House (6% on FOB basis and 7.5% on NFB basis) and highest fo 4 Superstar Trading Houses (12% and 15%),

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