Export Houses (EH)
According to the dictionary of management by D. French and H. Saward, export house means an enterprise specializing in selling goods to foreign buyers. An export house may act:
(1) As a merchant buying a manufacturer’s products and attempting to sell them abroad;
(2) As an agent for manufacturer, promoting and arranging the sale of his products abroad;
(3) As an agent for foreign buyer, seeking sources of supply in the export house’s country and arranging purchases there.”
An export house acts as a professional middleman exclusively devoted to export marketing. It acts as a middleman and gets income for the services rendered. An export house conducts various activities such as procuring goods, finding buyers’ abroad (collection of foreign orders), making arrangements for transportation, preparation of shipping and other documents and customs clearance. It relieves manufacturers from the entire botheration of export procedures.
Export houses are operating in other countries since long. This was felt in India after 1958 for promotion of exports. The government also felt to give legal recognition to export houses with sizeable export performance and offer them certain facilities. In India, merchant exporters and manufacturer exporters who fulfill certain conditions laid down by the government are eligible for recognition as registered export houses. Even 100% EOUs and units operating in the EPZs are eligible to function as export houses.
47 Comments