Facilitators of External Trade

The traders need support from others in the process of buying and selling. The persons or institutions that provide various kinds of support are termed as facilitators of external trade.

  1. Indent Houses / Indent Firms: They help importer and exporter in sending and receiving the order of goods along with other instructions.

  2. Export Houses: These are organisations involved in export promotion activities, such as STC, MMTC, Handicrafts and Handloom Export Corporation (HHEC) and Central Cottage Industries Corporation (CCIC), etc.

  3. Forwarding Agents: They act on behalf of exporters to complete all the formalities of loading the goods on the ship.

  4. Clearing Agents: Clearing agents act on behalf of the importer and complete all formalities required for clearing the goods from the port of destination. He takes delivery of the goods from the customs authority and sends the goods by rail or road to the place of importer.

  5. Shipping Company: It carries goods on payment of freight charges, and undertakes to deliver the same to the importer.

  6. Insurance Company: It bears the loss or damage to the goods against insured risks right from the godown of the exporter to the godown of the importer.

  7. Trade Commissioners: These officials are appointed by the government in its embassy to represent the country’s trade-interests abroad. They collect information relating to trade relations and disseminate the same among traders. They also advise the traders on matters relating to imports and exports.

  8. Trade Representatives: These officials provide guidance to exporters abroad on behalf of the government of their own country. They make efforts to secure payment for goods and also advise on legal matters.

Essential Requirements for Exporter and Importer

If you want to start an export-import business then first you have to obtain the following legal documents.

  1. Import Export Code (IEC) Number: The IEC number is granted by the Director General of Foreign Trade. Every firm dealing with export or import business must obtain this number without which no documents relating to external trade will be forwarded.

  2. Registration-cum-Membership Certificate (RCMC): Government provides certain facilities and benefits to the exporters and importers under its EXIM policy. To avail such facilities every firm must obtain the Registration-cum-Membership Certificate from the appropriate export promotion council. Export promotion councils are different organizations set up by the Government to promote and develop exports of different categories of products.