Key Differences Between Export House & Export Companies That You Must Know

Key Differences Between Export House & Export Companies That You Must Know

Every export house is an export company, but every export company is not an export house. That’s the primary difference between the two. However, if every export house is an export company, can anyone call that export company an export house? No, they can’t. 

An export house is made after export companies receive certain accreditations. This means no one can start out as an export house just because they want to. So, what are the accreditations required for a company to qualify as a garment export house? And what are the key differences between an export house in Jaipur and an export company? Let’s find out.

4 Crucial Differences Between An Export Company & An Export House in Jaipur

1. Explanation of Terms

An export company is set up just like any other company to export products from one country to the other. These companies have to get an import and export code from the Directorate General of Foreign Trade in India. That’s the basic necessity alongside getting a GST registration. Companies have to get clearance from the government’s customs department and arrange for financing from banks accordingly. The last step is to finalise the logistical responsibilities to get your products from one place to another, and you’re set.

An export house on the other hand, is a title that’s awarded to export companies who have consistently performed exceptionally well. This title allows said companies to enjoy certain benefits and privileges such as duty exemptions, tax benefits, and easy access to government export schemes. As export houses are not set up from scratch, these companies just have to apply for an export house status with the government when they clear certain criteria.

2. Prerequisites or Qualification Criteria

Export companies do not have a prerequisite or a qualification criteria as these companies are newly set up. Once they have the government clearance to function, they are ready to start working as an export company. The only prerequisite here is getting your business registration completed and getting the IEC from the DGFT.

Export houses must qualify as per the norms of India’s Foreign Trade Policy based on their export performance. There’s a minimum export volume consideration annually, which must be cleared by the export company before they can apply for export house status. Export houses are rated on a star system from one star to five stars based on their level of operation.

3. Government Benefits

An export company doesn’t enjoy many benefits from the government apart from general export incentives offered by the government. There are no export duty exemptions or tax breaks offered to general export companies.

Certain benefits and privileges are offered to export houses by the government. This includes faster customs clearance, duty-free import allowance, and also access to any and all the latest government incentives on export. However, it should be noted that export houses are also subject to stringent regulatory norms and failure to comply may lead to export houses losing their special status.

4. Market Reputation & Operations

Setting up and running an export company is not an easy task, and based on your experience and expertise, companies will trust and work with you. However, considering export companies that don’t hold any government accreditation might not be considered as a partner for major brands for export requirements.

Export houses such as garment export house like CheerSagar have an additional mark of trust attached to their name. When you work with these companies, brands can remain assured that their exports will be completed safely. An export house in Jaipur also operates high-volume exports, which ensures brands that their export requirements, no matter the quantity, can be managed by export houses.

Conclusion

These are the most important differences between an export company and an export house. Depending on your requirements, you can choose to work with an export company if you have low-volume export requirements and would like to get affordable solutions. Working with an export house can ensure your export requirements are fulfilled despite the volume, and it can add a layer of security to the process. So, choose the company that suits your needs, and if you’re looking for a kids & women’s wear exporter in Jaipur, check out CheerSagar. As an experienced garment export house in Jaipur, they can help you get your products to six continents across the world.