The third-party exporter obtains the export order, sources goods from another manufacturer exporter, and exports those goods in his name while obtaining foreign exchange. Many companies that provide Import Export Service also guide businesses in managing third-party exports, ensuring compliance with international regulations. In addition, professional freight forwarders play a crucial role in arranging transportation, documentation, and smooth delivery of the consignment.

After obtaining a purchase order from an overseas buyer, a third party exporter provides a purchase order to the manufacturer exporter at a lesser price. He then pays the value of goods to the manufacturer exporter as per the agreement. The value of goods is then paid in local currency to the manufacturer exporter, and in return, the third party exporter receives his export proceeds from the overseas buyers in foreign currency.