Meaning of export

Export meaning includes such manufactured goods and services which originate in one country,
but are procured by another country. Export can be of services and goods of any type, and that
may be traded through electronic transmission or traditional transportation like shipping.The top
exports from India are mineral fuels (14.9%), precious metals and gems (12.4%), machineries
(6.3%), and pharmaceuticals (4.4%) among others. The fastest gain rate of exports from India is
recorded for organic chemicals at 30.7%. 

Registration process

Formalities of Registration and Export Documentation Export are a very wide concept with a lot
of preparations which is required by an exporter before starting the export business. 

 Establishing an Organization

Opening a Bank Account

Obtaining Permanent Account Number (PAN)

Obtaining Importer-Exporter Code (IEC)

NumberRegistration cum membership certificate (RCMC)

Selection of productSelection of MarketsFinding

BuyersSamplingPricing/Costing

Negotiation with BuyersCovering

Risks through ECGC

Selection of Product

The selection of work is considered the key to success in all markets of the business. Exporter always
wishes to deal with all types of products but it is almost impossible to do so and thus he has to select a
proper product and a proper market.
Bellow is Product Selection For Export Business

1. Trends in export
Thorough market research is the base for the success of any business. In the era of globalization,
export-import has actually become an integral part of a successful business life.

2. Target markets
Unless you have a product that is unique, you would face stiff competition. It is very necessary
to present a unique and different product. Aspected differences like demand, cultural, social,
political, and demographic aspects should be considered.

At times the most challenging market offers the greatest potential for your product. Always aim
for opportunity and quality marketing for higher success.

3. Supply base
The timely supply of the product is the key to any business’s success. Along with demand,
supply base analyses are a must. Factors such as power shortages, transport problems, strikes,
lockouts, etc. affect the supply so take action. Always have a back –up plan for your products.

4. Profitability
As a businessman, you should select a product that has a higher financial rewarding capacity.
Try to forecast all possible expenses that are related to the product Ex. taxes & duties, logistics,
insurance, export cost, etc.
There are numerous government incentives schemes, which both the governments provide and so
benefit of the same, should be taken as it helps to increase the profitability.

It is the prime objective behind doing any business and so due care should be taken to ensure no
loss is there.

5. Availability of the product and production capacity

Try to avoid that type of product selection for export business, which has a monopoly on one or
more suppliers. The success kneels on the demand rate of the product and its availability to a
great extend. Remember that for selling a product, the SKY is the limit.

6. Demand stability
There is a possibility that you already have some specific products in your mind but you need to
analyze the demand for those products in the exporting country and how to stabilize the demand
is.

for the stability of demand, you need to do Deep research. It is advisable to select a country,
which has a steady demand. Stagnating sales can be detrimental.

7. Product adaptability
Product adaptability plays a pivotal role in the export business. Choose always that product
which accepted universally, and used because it helps broaden your horizons.

8. Trade restrictions
When it comes to trade regulations or compliance, every market is unique. Trade relations of
India with that country should be taken into consideration.

There is Government support for import-export but you should have a plan.

Market Payment Terms

Some of the widely recommended and accepted modes of payment for International trades are:

1.  Advance Payment

Advance Payment is a payment done by an importer to the exporter before shipment.

This method is most beneficial from exporter perspective as he receives funds in advance. The
payment may be received either as soon as the order is confirmed or any time before shipment.
The exporter may be willing to impose the term as a pre-condition only when he knows that the
goods are in overwhelming demand and the goods are of rare-nature. Advance payments may be
also used to negotiate a reduced price or to cover initial supply costs.

However with a buyer’s point of view, advance payment carries little risk, as he advances
payment before dispatch of goods. Advance payment of term in exports and imports is picked by
a purchaser only when he knows the seller in details on genuineness as a seller.

For international sales, wire transfers and credit cards are the most commonly used cash-in-
advance options accessible to exporters. With the advancement of the Internet, escrow services
turning into another cash-in-advance option for small export transactions.

 2.  Letter of credit

Letter of credit is a type of payment term opted by importers and exporters. Letters of credit
(LCs) are one of the most secure instruments accessible to international traders. An LC is a
commitment by a bank on behalf of the buyer that payment will be made to the exporter,
provided that the terms and conditions stated in the LC have been met, as confirmed through the
presentation of all required documents.

In other words, we can explain that a Letter of Credit is an undertaking issued by a Bank, at the
request of a importer, affirming the payment to the exporter on presentation of complying
documents as stated in the LC.

It is an assurance from the bank that a buyer's payment to a seller will be received on time and
for the correct amount and thus makes elimination of possible risks. If the buyer is unable to
make payment on the purchase, the bank will be required to cover the full or remaining amount
of the purchase. Due to the nature of international dealings, including factors such as distance,
contrasting laws in each country, and difficulty in knowing reliability of each party personally,
the use of letters of credit has become a vital aspect of international trade. A letter of credit is
typically a negotiable instrument, the issuing bank pays the beneficiary or any bank nominated
by the beneficiary. If a letter of credit is transferrable, the beneficiary may assign another entity,
such as a corporate parent or a third party, the right to draw. Banks typically require a pledge of
securities or cash as collateral for issuing a letter of credit. Banks also collect a fee for service,
typically a percentage of the size of the letter of credit.

An LC is useful when reliable credit information about a foreign buyer is hard to get, but the
exporter is satisfied with the creditworthiness of the buyer’s foreign bank. An LC also secures
the buyer because no payment obligation arises until the goods have been shipped or delivered as
promised or guaranteed.

 3.  Documents against Payments - D.A.P or D/P basis

Documents against Payment – DP/DAP is a term of payment in international trade. It relies on an
instrument generally used in international trade called a bill of exchange or draft.

In this term, the documents under consignment are delivered to buyer/importer only after
collecting payment of goods by buyer’s bank. The exporter ships the goods and submits
Shipping documents to importers Bank with their instructions to discharge documents to the
importer against payment, where the importer needs to pay the exporter when the documents
being released from the Bank. The collecting bank hands over the shipping documents including
the document of title only when the importer has paid the bill.

Simply, D/P is an arrangement in which a seller directs the presenting bank to release shipping
and title documents to the buyer only if the importer completely pays the accompanying bill of
exchange or draft.

 4.  Documents against Acceptance (D/A)

Documents against Acceptance are another term of payment in international payment.

The Documents against Acceptance (D/A), depend on an instrument broadly used in

international trade called a bill of exchange or draft. Under this, transaction utilizes a time draft
or Usance (It is the allowable timeframe, allowed by custom, between the date of the bill and its
payment) i.e, the Exporter allows credit to Importer. The importer is required to accept the bill to
make a signed promise to pay the bill at a set date later on. When he has signed the bill in
acceptance, he can take the documents and clear his goods.

Simply, D/A is an arrangement in which an exporter instructs a bank to discharge shipping and
title documents to an importer only if the importer accepts the accompanying bill of exchange or
draft by signing it. In this case, the documents required to take possession of the goods are
released by the clearing bank only after the buyer accepts a time draft drawn upon him.

Export Costing & Pricing

Export pricing

Export pricing and domestic pricing are different: different overseas market conditions, different
costs, different quoting formats and different currencies all affect what you charge your
customers for your products or services. Pricing for any market requires an understanding of the
relative costs, demand and competition of that market.

Many overseas contacts you meet will want to know your price, so it is essential to have your
pricing determined before you approach an overseas market.

The total cost of exporting

Before you can determine the prices you should be charging for your goods or services, you must
first be clear about the total cost to your business of exporting that product or service.
Developing your export markets can involve a range of costs that do not apply to domestic sales.
These are general costs for exporting that are not specific to an individual contract or shipment.
They could be considered your ‘fixed costs’ of exporting. How much you recover of these costs
per unit or per order or contract is up to you, but these costs should be factored in before you
start adding shipping costs, duties, etc. Costs may include:

•  Research into international markets

•  Travel to overseas markets
•  International communications
•  Production of export literature (including translations)
•  Modifications to your product or service
•  Packaging and labeling (products)
•  Product liability insurance or other insurances
•  Compliance with foreign standards
•  Credit checking
•  Export financing charges
•  Promotional costs

Different prices for different markets

Calculating a separate price for each of your export markets is important because:

•  For products, distributor, wholesale and retail mark-ups are often different in each market and
industry, which will affect the final price of your products. Remember to include questions about
these mark-up costs when you are doing your initial market research.

•  Your competitors and the way they price their products or services will probably be different
in different markets, and you have to take this into account when setting your prices.

•  The price that end users are willing to pay for your products or services will not be the same in
all markets around the world.

Price changes

Exporters need to adjust prices for many reasons including increases in the cost of production
such as raw materials, currency fluctuations and inflationary increases. But customers don’t like
surprises and although price increases are part of doing business, it’s wise to give as much notice
as possible.

You will need to advise your customers or in-market partners when your prices change – and
why. You will also need to give sufficient lead time for buyers to be able to pass price changes
on to their customers.

Extending credit terms will have a real cost impact

As an exporter you may be asked to offer credit terms. Or you may find that you need to match
your competitors on credit terms.

Extending credit terms will have a real cost impact on your company because cash flow is
critical to any business.

If you decide to offer credit terms you will have to estimate the cost of the time it takes to receive
payment at the end of the credit period and build this cost into your price.

It’s not always all about price

Although some products are sold purely on the basis of price, many exporters find that price is
not the only factor that affects their success in attracting new customers. Credit terms, delivery
speed and reliability, customer service and warranty, after-sales care and the quality of your
product or service are all important in getting and keeping new international business.

Pricing for products

While most businesses spend the necessary time to gain a thorough understanding of price
calculations for their domestic business, many do not put in the same amount of effort when it
comes to their export markets.

Unfortunately, this can have a flow-on effect on both competitiveness and the profitability of the
business.

Although some exporters simply charge their domestic price with no further thought, those who
are successful over the longer term have almost always invested the necessary time to get their
export pricing right.

Pro-forma Invoices

All export quotations should be made with a Pro-forma Invoice. Pro-formas are actually not
invoices at all, but formal export price quotations that spell out precisely what is proposed in the
quotation, including the full product description, shipping terms, and terms of sale.

Pro-forma quotations ensure that both the buyer and the seller are clear about who pays for
which costs, and where ownership transfers from seller to buyer, exporters use terms known as
Incoterms.

Costs to include when setting export prices

Regardless of who arranges and pays for freight and costs such as import duties, you should
know the costs your product attracts through the supply chain. Without knowing these costs, you
can’t fully understand where your product fits into the market and therefore compare your price
against those of your competitors.
Some examples of costs in the supply chain include:

•  Shipping ex-factory to port of departure

•  Air or sea freight and insurance
•  Import duty and taxes
•  Customs clearance/broker fee
•  Ground transportation from port of entry to the warehouse or the customer
•  Warehouse fees
•  Break-bulk fees, if third party warehouse applies
•  Agent’s commission or importer’s mark-up

Incoterms

Some common Incoterms you may have heard mentioned include FOB and CIF. It is very
important that exporters understand the details of each Incoterm they may use and their
responsibility for each one.

One common mistake, that can lead to confusion, is not including a named place after the
Incoterm. If you are using FOB and shipping from Savannah, GA, then the correct way to
communicate this is FOB Savannah. Not including a named place here means the buyer will not
know where they have to arrange and pay for freight from.

Which Incoterm you use depends on your situation and that of the buyer. Whilst there is no rule
about which Incoterm should be used for particular countries or industries, buyers will most
likely have a strong preference for how they buy from overseas. Some Incoterms result in less
effort for the customer, so require more arrangements to be made from the exporters’ side. This
may be a good customer service offering from your business should buyers be seeking to have
goods delivered right through to their door..

Export price lists and written quotations

Some tips for preparing an export price list:

•  Show which currency you are quoting in. If at all possible quote in US dollars, as this protects
you against fluctuations in foreign currencies.
•  Even if Incoterms are used, when quoting it is recommended include clear details about what
the price includes as some buyers may have incorrect understanding of the terms used. An
explanation should be included in your price lists and contracts as well.
•  Include validity for pricing, when is the price list valid until?
•  Include any minimum order quantities you may require or quantity the pricing is based on
•  Item codes make it easier for buyers to place an order and result in less confusion
•  Clearly show your company name, address (including USA) and contact details for placing an
order or inquiry

Two different methods for calculating prices for products

While there are many different ways for calculating prices, the methods listed below are some of
the most common. Cost Plus and Top Down are two of the best costing methods to calculate
your export price, but they are best used in parallel; do two separate calculations and then
compare one against the other to achieve a finely-balanced result. Here is what you do:

     1. Cost Plus: you work outwards from your ex-factory price to the end customer.
     2. Top Down: you work from the ideal end customer price backwards to you.

The reason that these two methods in parallel are better than using one method alone is that each
method individually has its weaknesses.

Using the Cost Plus method alone, for example, may result in a price that is too high, which
means that you won’t have many customers. And, if you sell at a price that customers would
ideally like and calculate by using the Top Down method, you may end up losing money on each
order.

So, calculating your final selling price between Cost Plus and Top Down is a balancing act that
all sellers must face.

Preliminaries for export

International Marketing is complex and challenging activity in today’s dynamic world

environment. International marketing involves the performance of operations that determine
existing and potential demand in a market. In order to determine the market opportunity it is
necessary to study the customers market needs and characteristics through the performance of
activities like Market Research, Demand Analysis, and Forecasting. It also includes those
operations that influence existing and potential demand. In order to influence the demand
pattern of customers, the marketing operations include activities like Product development,
Branding and Packing, Pricing, Advertising, Sales promotion, Public Relations.

Advantages of Exporting :
1- Opportunity to expand Market Share.
2- Increase production if capacity is underutilized in the Domestic Market.
3- Decrease dependence on domestic sales or compensate foreign market.
4- Diffuse domestic competition by expanding in to less competitive foreign market.

What to Export :
It is necessary to select very carefully the products to be sold in any particular market. The
selected products must be in demand in the country where the product is to be sold. Exporter
should select the product that can be manufactured and sourced with consistent standard quality
at least equal to that of competitors.
The products selected should be possible to be manufactured at most economic cost so that it
can be competitively priced and it is possible to sell. The product should be available in
sufficient quantity and it should be possible to supply timely and regularly.
The exporter should take care of the following points while choosing the commodity which
he wants to export :

 Government of India policy and regulations in respect of the commodities.

 Matching of product features with market including technical specification if possible as
per ISO standard should be accepted.
 Import regulations in respect of such commodities by the importing countries.
 Availability and profitability of such commodities.
 Rates of Duty Drawback and import replenishment in respect of such commodities.
 Demand in the foreign market and desirable variations in quality and design that the
market demands.
 Quota fixation in respect of such commodities in both countries.
 Knowledge about competitive position, market penetration level and experience in
respect of such commodities of other exporters of different countries.
 Whether such commodities enjoy tariff preferences or not, in the importing country?
 Suitable Packaging and Labeling.
 Mode of transport and suitability of Logistics.

Where to Export :
The exporter should collect adequate market information before selecting one or more target
markets. The target market should be selected after consideration of various factors like past
performance, Market size political embargo, scope of export of selected product, demand
stability, preferential treatment to products from developing countries, market penetration of
competitive countries and products, distance of potential market, transport problems, language
problems, tariff and non- tariff barriers applicable, distribution infrastructure, size of demand in
market, expected life span of market and product requirements, sales and distribution channel.

Factors for Assessing Market :

1 - Demographic and Physical Environment :

 Total population and growth density trends.

 Distribution of the population by targeted age groups.
 Distribution of population by urban, suburban and rural areas.
 Climate and Weather variations. How will these effect the product offered?
 Shipping distances from the point of export.
 Age and Quality of the transportation and telecommunication infrastructure.
 Adequacy of shipping, packaging unloading and other local distribution networks.

2 - Political Environment :

 Whether the system of Government is conducive to conducting business?

 To what extent the government is involved in private business transactions.
 Government’s attitude to importing.
 Whether the political system is stable.
  Government’s attitude towards the dismantling of quotas, tariffs and other trade barriers.

3 - Economic Environment :

 Whether the country is committed to fostering higher levels of imports and exports?
 Predicted economic growth levels.
 Gross National Product and balance of payments situation.
 Percentage share of imports and exports in the overall economy.
 The country import to export ratio.
 Rate of inflation and foreign currency or exchange regulations.
 Per capita income of the target country.

4 - Technological Environment :

 High Expectation of consumers.

 System Complexity.
 Increased productivity.
 Need to spend on R & D.
 Demand for Capital.

5 - Social and Cultural Environment :

 Percentage of discretionary income spent on consumer goods.

 Percentage of people who are literate. What is the average educational level achieved.
 Percentage of the population identified as a middle class.

6 - Market Access :

 To what extent the target market similar to home market.

 Whether the product need translation or adaptation.
 Summarize the legal aspects of distributorships for each country.
 Documentary requirements and the technical or environmental import regulations
covering the product.
 What intellectual property protections Laws would effect the product.
 Where a commercial dispute arises, does the judicial system offer a fair and unbiased
review ?
 Are tax Laws to foreign investors. What is the rate of tax on repatriated profits?

Registrations for export

IEC

Any form of business that carries out the process of import and exports would require a business
transaction number. This number is known as the import export code (IEC). The Import Export
Code is a ten digit identification number which has to be quoted by the business during every
transaction of import and export. Every individual or business requires obtaining an IEC
Certification. The process of obtaining the Import Export Code Certification is straightforward.
However, it would be beneficial to utilise services from a third-party for import export code
Certification.

Meaning of Import Export Code

IEC is an abbreviation for Import Export Code. Any institution or business requires this
certification to improve their avenues. Any individual, partnership or business requires this
certification for carrying out the activities related to import and export in India.

This certification is issued by the Director General of Foreign Trade (DGFT). It is a ten digit
number which provides proof that the business can engage in imports and exports. The applicant
requires to register for the IEC code.

However there is lifetime validity for this code. Hence the applicant would not require going for
the process of renewal of this certification. It would usually take about a month to secure this
code.  Any business not fulfilling the requirement of the import export code would not be
allowed to carry out any process.

Regulatory Authority/ Body for Import Export Code

Registration
The primary regulatory authority or body for IEC registration is the Director General of Foreign
Trade (DGFT). The Government of India, Ministry of Commerce and the DGFT are the main
authorities for the IEC. Applications have to be made independently to the DGFT for any IEC
registration. This system can be carried out online through the DGFT website.

Benefits of Import Export Code

RCMC Registration
The Registration Cum Membership Certificate (RCMC) is a certificate of authorization to import
or export products restricted under the Foreign Trade Policy (FTP). It is usually issued by the
Export Promotion Councils(EPCs), Commodity Boards and Export Development Authorities
established by the Director General of Foreign Trade for each restricted product. RCMC also
acts as proof of membership/registration of an exporter with a particular EPC/Commodity
Board/Export Development Authority. RCMC is obtained to avail concession provided under the
FTP for the import/export of restricted items.
Registering Authorities for RCMC Application
Registering Authorities are empowered to issue RCMC to the exporter/importers. The DGFT
authorizes the Export Promotion Councils, Commodity Boards and Export Development
Authority to act as registering authorities. They are an organization of exporters formed to
promote and develop the Indian Export industry. Each authority is responsible for promotion of a
particular group of products.

Currently, there are 35 organizations working towards the promotion of import/export of

restricted items. These organizations, after being authorized by the DGFT, can issue RCMC.

 27 Export Promotion Councils

 6 Commodity Boards
 2 Development authorities

Why Do You Need RCMC Certificate

 EPCs, Commodity Board and Export Development Authorities work with Better
Governance with much Transparency
 Effectively Controlled by Central Government
 Allows participation of members in governance by way of e-voting facility in election of
Vice Chairman

EPC Export promotion Council

Export promotion councils (EPC) are advisory bodies that actively contribute to the policies of
the Government of India and acts as an interface between the industry and the Government. EPC
conduct a large number of promotional activities such as buyer-seller meets, trade
fairs/exhibitions and information booths to promote Indian exports and provide overseas buyers
with a mechanism to easily reach Indian exporters. The Export Promotion Councils are non-
profitable organizations, registered under the Indian Companies Act or the Societies Registration
Act. They are supported by financial assistance from the Government of India. The role of the
EPCs is to project country’s image abroad as a council of reliable suppliers of high quality goods
and services. The EPCs encourage and monitor the observance of international standards and
specifications by exporters. The EPCs keep abreast of the trends and opportunities in
international markets for goods and services and assist their members in taking advantage of
such opportunities in order to expand and diversify exports. 

Some of the export promotion councils are Council for Leather exports (leather and related
products), Engineering export promotion council (for engineering goods), Gem and jewelers
export promotion council (for gem and jewelry), cashew export promotion council (for cashew)
etc.
 Central Excise

Central excise duties are levied by the Union Government on commodities manufactured or
produced within the country and consumed within the country, as against the State excise duties
which are levied on alcoholic drinks, opium, etc. Commodities liable to central excise duties are
listed in the Schedule to the Central Excise Tariff Act, 1985 (Act 5 of 1986) which came into
effect from 28.02.1986. Prior to this, excisable commodities were contained in the First Schedule
to the Central Excises and Salt Act, 1944. The current Tariff is an exhaustive code covering each
and every commodity manufactured or produced in the country. Central excise duty is an indirect
tax, i.e. each person, rich or poor, is liable to pay tax indirectly on purchase of goods which have
already been charged to duty. This tax is administered under the authority of Entry 84 of Union
List of the Seventh Schedule read with Article 226 of the Constitution of India. The Central
Excise law is administered by the Central Board of Indirect Taxes and Customs (CBIC)
through its field formations, the Central Excise Commissionerates. For this purpose, the country
is divided into 10 Zones and a Chief Commissioner of Central Excise heads each Zone. There
are 61 Commissionerates under these Zones that are headed by the Commissioner of Central
Excise. Divisions and Ranges are the subsequent formations, headed by Deputy/Assistant
Commissioners of Central Excise and Superintendents of Central Excise, respectively.

Categories of Export

There are different categories of exporters like Merchant exporters, Manufacturer exporters,
Service exporters, Project exporters, Deemed exporters etc.

Who is a 'Merchant exporter'

"Merchant Exporter" means a person engaged in trading activity and exporting or intending to
export goods .Merchant exporter procures the material from a manufacturer and exports in his
firm’s name. Here merchant exporter procures the order from international market. Merchant
exporter does not have own manufacturing unit or processing factory. Merchant Exporter can
export the excisable goods either directly from the premises of the manufacturer, with or without
sealing of the export consignments, or through his premises under claim for rebate or under
bond.

What is meant by 'Manufacturer exporters'

"Manufacturer Exporter" means a person who manufactures goods and exports or intends to
export such goods. The manufacturer exporter procures and process raw materials at his factory
and exports finished products. Here, the manufacturer exporter procures the export order and
exports in their own name.

Is 'service treated as exports'?. What is Service exports: If an exports through a merchant

exporter or manufacturer export, we can see the export product tangibly. But there are many
servicing industry where we can not see the product physically, but helps to earn foreign
exchange. A best example of service exporter is those who export software. Here while selling
software to other countries, our country earn foreign exchange. Tourism, Software, Health Care,
Consultancy, Hotels, etc. are other examples for service exports.

Who are Project Exporters: There are many professional companies undertake contracts for
Designing, manufacturing, supply, erection, commissioning, etc. When they earn foreign
currency on their sale, they falls under Project exporters and eligible of all assistance and support
as project exports.

What is Deemed Exports:

In deemed exports, goods supplied do not move out of country, and payment for such supplies is
received either in Indian Rupees or in free foreign exchange. You may have a doubt now that if
the goods are not crossing the border of country, how can we treat as an exports?. In deemed
exports, some of the other way the transaction boost to earn foreign exchange . Deemed
exporters are also eligible government assistance within the parameters of earning foreign
exchange.

What is direct exporting?

Direct exporting is when a business sells directly to buyers in other countries. There is no
middleman, which means that as a seller, you don’t have to worry about a third-party
company taking a cut. Some businesses also open a foreign branch of their companies in the
country where they plan to expand into or have a business representative on the ground.

With direct exporting, the export company will handle all client communication and negotiations
with international business. This includes being solely responsible for acquiring new customers,
setting up contracts, marketing activities, selling items, and dealing with international logistics
and payment. You’re also in control of every transaction, which means you can represent your
brand the way that makes the most sense. When you have the resources for this sort of task, it
can work in your favor.

What is indirect exporting?

Indirect exporting means you make the sale to a third-party company that subsequently
sells directly to international buyers or importers. Since indirect exporting involves
middlemen to handle nearly all the export operations, it is the least expensive and the quickest
approach to enter foreign markets for smaller companies.

Two types of companies that take on the intermediary role are Export Trading Companies (ETC)
and Export Management Companies (EMC). ETCs are companies that will buy your products on
behalf of their clients whereas EMCs will simply manage your transactions. The difference
between the two is that ETCs assume some sort of risk by purchasing stock, whereas EMCs
don’t typically hold any stock of their own.
In simple terms, ETCs generally work on behalf of buyers and EMCs work on behalf of sellers.
Both of these third-party companies generally operate in the same country as the seller. Since
sellers generally choose ETCs and EMCs are in the same country, they can still sell to far-off
countries without having to worry about compromising profits.