Page 92 - International Marketing

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94 International Marketing BRILLIANT'S

Introduction
The origin of export houses in India dates back to 1958, when the
government gave a thoughtful consideration to the development of some
specialized agencies for promoting exports mainly of non traditional items.
In 1960, Indian government evolved criteria for the recognition of export houses
with emphasis on the ability to diversify the export trade and to a large
number of countries. The main objectives of export houses is to effectively
assist the small scale units in exporting their goods and building up an
export market. As the export houses are registered exporters hodling a valid
export house certificate issued by the chief controller of imports and exports,
their recognition is based upon their exports performance in the past three
years and their capability of embarking upon export marketing.
An export house is a registered exporter, holding a valid Export House
Certificate issued by the Director General of Foreign Trade. These are set
up to act as the ‘export department’ for a range of companies. They
conducts business on the name of each manufacturer, it represents. All
correspondence and contracts with buyers are negotiated on the name of
the manufacturer and all quotations and orders are subject to the
confirmation by the manufacturer. They can spread their selling and
administrative costs over more products and companies as well as can
reduce the transportation costs by making large shipments of goods from
a number of companies.
Facilities or Benefits Available to Recognised Export Houses
(i) Release of blanket foreign exchange for:
(a) Business travels abroad.
(b) Market studies conducted by specialists deputed from India or
through market research organization abroad.
(c) Participation in overseas exhibitions, trade fairs and Indian trade
centre abroad.
(d) Publicity abroad.
(e) Securing samples and technical information relating to export
products and commodities.
(ii) Grants-in-aid under the code of grants for:
(a) Any project for developing new products for export.
(b) Overseas market surveys.
(c) Exploration of new markets.
(d) Publications of brouchers, catalogues, price lists, etc for use
abroad.