EPZs/EOUs

EPZ means Export Processing Zones which are special enclaves, separated from the Domestic
Tariff Area (DTA), for export production at low cost. EOU means Export Oriented Units. The
EOU scheme is complementary to the EPZ scheme, except that it is widely dispersed in location,
unlike EPZs, which are set up at specific locations. There are seven EPZs in the country -- at
Kandla, Santa Cruz, Falta, Noida, Cochin, Chennai and Visakhapatnam.
SEZs SEZ means Special Economic Zones. Two new SEZs are being permitted at Pipavav and
Tuticorin in the private sector in the private sector besides the four existing EPZs, namely, Santa
Cruz, Kandla, Cochin and Visakhapatnam, which are being converted into SEZs
FoB FoB means Free on Board -- i.e., when an exporter delivers goods "free on board", he pays
all charges involved in getting them actually onto the ship.
NFE NFE refers to Net Foreign Exchange. Net Foreign Exchange earning is calculated as a
percentage of exports

EXPORT HOUSES, TRADING HOUSES, STAR TRADING HOUSES AND SUPERSTAR

TRADING HOUSES

OVERVIEW OF EXPORT AND TRADINGHOUSES

International trading houses are commercial intermediaries specialized in the long term
development of trade in goods and services supplied mainly by other parties. They focus on
exporting, importing and third country trading as their core activity and use overseas marketing
organization and infrastructure as well as procurement networks to service suppliers and
customers.
They procure locally and sell internationally, they procure internationally and sell
locally and they also procure internationally and sell internationally. They have the
flexibility and the agility to work in many markets with many products
simultaneously as international marketing is their core business
Trading houses serve as commercial intermediaries between suppliers and buyers
located in different countries.
They may also act as agents on behalf of
manufacturers or on behalf of the buyers, earning a commission for their various
services.
OBJECTIVES: The objective of the scheme is to recognise established exporters as Export House, Trading
House, Star Trading House and Super Star Trading House with a view to building marketing infrastructure and
expertise required for export promotion. Such Houses should operate as highly professional and dynamic

institutions and act as important instruments of export growth.

ELIGIBLITY: Merchant as well as Manufacturer exporters, Service providers, Export Oriented

Units (EOUs)/ units located in Export Processing Zones (EPZs)/ Special Economic Zone(SEZs)
/Electronic Hardware Technology Parks (EHTPs)/ Software Technology Parks (STPs) shall be
eligible for such recognition.

Criterion for Recognition:

The eligibility criterion for such recognition shall be on the basis of the FOB/NFE value of export
of goods and services, including software exports made directly, as well as on the basis of services
rendered by the service provider during the preceding three licensing years or the preceding
licensing year, at the option of the exporter. The exports made, both in free foreign exchange and
in Indian Rupees, shall be taken into account for the purpose of recognition.
The level of export performance for the purpose of recognition shall be as per the table below:
Category

Average
FOB value
during the
preceding
three
licensing
years, in
Rupees

FOB value
during the
preceding
licensing year,
in Rupees

Average NFE
earnings made
during the
preceding three
licensing years
, in Rupees

NFE earned
during the
preceding
licensing year,
in Rupees

(1)

(2)

(3)

(4)

(5)

EXPORT HOUSE

15 crores

22 crores

12 crores

18 crores

TRADING HOUSE

75 crores

112 crores

62 crores

90 crores

STAR TRADING
HOUSE

375 crores

560 crores

312 crores

450 crores

SUPER STAR
TRADING HOUSE

1125 crores

16 80 crores

937 crores

1350 crores

http://www.oath.on.ca/publications/PDF_En/EN_TradingHousesPractical.pdf