Valid IEC
Must hold an Import Export Code from DGFT.
MERCHANT EXPORTER REGISTRATION
Merchant Exporter Registration Registration
Complete setup for traders who procure finished goods and export them overseas. 0.1% concessional GST on procurement. Zero-rated exports with LUT. Access to RoDTEP, duty drawback and EPC support. IEC + GST + RCMC + LUT in one package. Start exporting in 10–15 working days.
DedicatedExpert Assistance
0.1%Concessional GST
10–15 DaysTypical Setup
TRADERS · 0.1% GST · EXPORT BENEFITS
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SAMPLE
IEC / Export Trade Certificate
Directorate General of Foreign Trade (DGFT) — sample IEC certificate
Illustrative sample. Your official certificate is issued after approval.
01
No Factory Needed
Procure finished goods from domestic suppliers and export — no manufacturing facility required
02
0.1% GST
Concessional rate on procurement under Notification 40/2017 & 41/2017
03
Full Export Benefits
RoDTEP, duty drawback, ECGC and EPC schemes on par with manufacturer exporters
04
90-Day Export Rule
Goods procured at 0.1% must be exported within 90 days of supplier invoice
OVERVIEW
What is a Merchant Exporter?
A Merchant Exporter is a trader who buys finished goods from domestic manufacturers or suppliers and exports them to overseas buyers. Unlike a Manufacturer Exporter, a Merchant Exporter does not own a manufacturing facility — they act as an intermediary using market knowledge, buyer relationships and logistics.
Under the Foreign Trade Policy 2023 and the FTDR Act, Merchant Exporters enjoy the same legal recognition and benefits as Manufacturer Exporters, including RoDTEP, duty drawback and ECGC. The standout fiscal benefit is the 0.1% concessional GST rate on procurement (Notification 40/2017 and 41/2017), which sharply reduces working capital blockage. Mandatory registrations typically include IEC, GST, RCMC and LUT for zero-rated supplies.
Model
Procure & Export (no manufacturing)
Key Benefit
0.1% concessional GST
Core Registrations
IEC · GST · RCMC · LUT
Export Window
Within 90 days of invoice
0.1% GST BENEFIT
Concessional Rate for Merchant Exporters
| Aspect | Standard | Merchant Exporter |
|---|---|---|
| Intra-State (CGST+SGST) | 5%–28% | 0.1% + 0.1% = 0.2% |
| Inter-State (IGST) | 5%–28% | 0.1% IGST |
| Export (with LUT) | Zero-rated | Zero-rated (no IGST) |
| Export deadline | — | Within 90 days of supplier invoice |
Example: On ₹50 lakh purchases at 18% GST you would pay ₹9 lakh; at 0.1% you pay only ₹5,000 — freeing substantial working capital. Supplier needs your IEC, concessional tax invoice and undertaking to export within 90 days.
ELIGIBILITY
Who Can Be a Merchant Exporter
GST Registered
Active GSTIN required for 0.1% procurement and zero-rated supplies.
Any Entity Type
Proprietorship, partnership, LLP, Pvt Ltd, Public Ltd or HUF.
Procure for Export
Goods sourced from domestic registered suppliers for the purpose of export.
REGISTRATIONS
What You Need to Set Up
IEC
Import Export Code from DGFT — lifetime validity; mandatory for all exports.
GST
GST registration for 0.1% procurement and zero-rated export supplies.
RCMC
Registration Cum Membership Certificate from the relevant Export Promotion Council for RoDTEP and other benefits.
LUT
Letter of Undertaking on the GST portal for zero-rated supplies without payment of IGST.
DOCUMENTS
What You Typically Need
1. PAN & Aadhaar
Entity PAN and Aadhaar of proprietor/partners/directors.
2. Entity Proof
Certificate of Incorporation, Partnership Deed or LLP Agreement.
3. Bank Proof
Cancelled cheque or bank certificate (current account preferred).
4. Address Proof
Office address proof (utility bill, rent agreement or property documents).
5. IEC & GST (if existing)
Existing IEC and GST certificates if already obtained.
6. Authorisation
Board resolution or authorisation letter for companies/LLPs.
PROCESS
How Merchant Exporter Setup Works
1. IEC Registration
Obtain Import Export Code from DGFT (2–3 days if documents are complete).
2. GST Registration
Get GSTIN if not already registered; ensure status is active for 0.1% and LUT.
3. RCMC from EPC
Apply to the relevant Export Promotion Council based on product category; RCMC typically valid 5 years.
4. LUT Filing
File Letter of Undertaking on the GST portal for zero-rated export supplies without IGST.
5. Ready to Export
Procure at 0.1%, export within 90 days, file Shipping Bills and claim RoDTEP/drawback as eligible.
WHY CHOOSE US
Why Corporate Mart for Merchant Exporter Setup?
End-to-End Bundle
IEC, GST, RCMC and LUT handled as one coordinated setup so nothing is missed.
0.1% GST Clarity
We explain supplier documentation and the 90-day export condition so the concessional rate is used correctly.
Right EPC for RCMC
Product category mapped to the correct Export Promotion Council for RoDTEP and other benefits.
Export Compliance Guidance
Basic guidance on Shipping Bills, LUT and claim processes so you can start exporting with confidence.
IEC → GST → RCMC → LUT → Export at 0.1%
FAQ
Frequently Asked Questions
A trader who procures finished goods from domestic suppliers and exports them to overseas buyers, without owning a manufacturing facility. Recognised under the Foreign Trade Policy with access to the same incentives as manufacturer exporters.
Under Notification 40/2017 and 41/2017, registered Merchant Exporters can procure goods from domestic suppliers at 0.1% CGST + 0.1% SGST (or 0.1% IGST). Goods must be exported within 90 days of the supplier’s invoice date.
IEC from DGFT, GST registration, RCMC from the relevant Export Promotion Council, and LUT on the GST portal for zero-rated supplies. ICEGATE and AD Code are needed for customs filing and bank linkage.
RCMC is required to avail government export benefits such as RoDTEP, duty drawback and many EPC-supported schemes. It is obtained from the EPC matching your product category and is typically valid for 5 years.
The supplier must pay the differential GST (standard rate minus 0.1%) with interest (e.g. 18%) from the invoice date. Strict compliance with the 90-day window is essential.
Yes. Merchant Exporters with a valid RCMC can claim RoDTEP and other export incentives on par with manufacturer exporters, subject to scheme conditions and Shipping Bill declarations.
Typically 10–15 working days once documents are ready: IEC 2–3 days, GST 3–7 days, RCMC 7–15 days, LUT 1–2 days. Some steps can run in parallel.
No. Merchant Exporters do not need a manufacturing facility. You source finished goods from domestic suppliers and arrange export logistics. A registered office address is required for registrations.
