Every trade mandate begins with a conversation. Both principals respond personally within 24 hours.

Porto, Portugal · +91 98881 47147 Panchkula, India · +91 98881 47147
What We Do

Mercantile Trade: The Model Explained

Mercantile trading means organising the commercial, documentary, and payment flow of a bilateral or trilateral trade transaction without taking physical possession of goods. Global Nexus sits at the centre of the transaction as the organising intelligence — not as buyer, seller, or freight operator.

We earn a commission when the deal closes. No inventory. No capital at risk. No goods touch our premises. Every mandate is commission-only — meaning we earn only when you earn.

This model is not new — it is the foundation of how commodity traders, merchant bankers, and commercial intermediaries have operated for centuries. What is new is our specific application: India–EU bilateral trade, FTA-optimised routing, and documentation systems designed for the post-BTIA era.

The Three Roles — How a Deal Flows
🏭
Indian Manufacturer / Supplier

Produces goods. Receives payment from Global Nexus or directly from buyer under LC. Issues invoice to buyer or intermediary.

🔗
Global Nexus (Intermediary)

Coordinates documentation, payment instrument, FTA routing, and logistics. Issues back-to-back invoice (merchant model) or facilitates direct sale (agent model). Earns commission.

🏢
EU Buyer / Importer

Sources goods through Global Nexus. Pays via LC or TT. Receives goods with compliant documentation for EU customs clearance.

Deal Structures

Bilateral vs Trilateral — Choosing the Right Structure

The structure we recommend depends on product type, FTA eligibility, payment security needs, and the relationship between the principals.

Bilateral Deal

India → EU (Direct)

Most common structure. Indian supplier ships directly to EU buyer. Global Nexus coordinates documentation and earns agent commission. FTA preferential duty claimed at EU customs.

Fastest shipment timeline
FTA duty preference easiest to claim
Transparent to both parties
Best for established product-buyer pairs
Commission: 2.5–8% FOB/CIF · Payment: LC or TT

Trilateral Deal

India → Hub → EU (via UAE / Singapore)

Indian supplier ships to a hub country. Hub entity adds value (repackaging, blending, relabelling) or re-exports. EU buyer imports from hub. Used for FTA-neutral goods or when hub processing adds value.

Useful for re-export trading
Repackaging or relabelling in hub
Confidentiality of supplier identity
Some goods attract lower duty via hub
Commission: 3–6% + hub margin · Payment: Back-to-back LC
Strategic Intelligence

FTAs as Margin Creators, Not Just Policy

Most exporters leave FTA benefit uncaptured because they don't understand Rules of Origin, don't maintain the right documentation, or don't know which routing delivers the highest duty reduction.

We map the FTA landscape for every mandate — identifying the optimal routing, the applicable preferential duty rate, and the documentation required to claim it at EU customs.

India–EU FTA Intelligence Guide
India–EU FTA (2026)

Direct: 85–90% tariff elimination. Textiles 12%→0%. Engineering 7.5–15%→0%. Services Mode 4 IT mobility.

India–UAE CEPA

Zero duty on most Indian goods into UAE. UAE as re-export hub for MENA and Africa corridors.

ASEAN–India FTA

Near-zero duty into Vietnam, Indonesia, Thailand. ASEAN-EU access for processed goods.

India–Japan CEPA

Engineering, chemicals, auto parts. Japan as East Asian value chain gateway for EU manufacturers.

How Every Deal Works

The 4-Stage Mercantile Deal Architecture

Every bilateral or trilateral mandate follows the same sequential structure — regardless of vertical, product, or geography.

01
Stage 01

Pre-Deal Intelligence

Vinod Kumar Jain — Panchkula
Supplier / manufacturer identification and KYC verification
Production capacity, certification status, export references
Pricing discovery — ex-works, FOB, CIF quotations
Sample availability and lead time confirmation
FTA eligibility pre-assessment (HS code, RVC check)
Amit Jain — Porto
Buyer / importer identification and qualification
EU market demand validation and price benchmarking
Import duty calculation (standard and FTA-preferential)
Buyer creditworthiness and payment instrument feasibility
Logistics routing and landed cost modelling
02
Stage 02

Deal Structuring

Both Principals — Jointly
NCNDA executed before any principal identities are shared
Commission Agency Agreement — rate, trigger, currency, timeline
Incoterms selection: FOB / CIF / DDP based on mandate
Payment instrument: LC, DA/DP, TT advance, SBLC
FTA routing decision and Rules of Origin compliance plan
Back-to-back invoicing structure (merchant model if applicable)
03
Stage 03

Execution & Documentation

Vinod Kumar Jain — India-side
Commercial Invoice and Packing List
Bill of Lading or Airway Bill coordination
Certificate of Origin / REX declaration for FTA
Pre-shipment inspection (SGS / Bureau Veritas / Intertek)
Phytosanitary / Health Certificate (agro/food)
DGFT Export License (where applicable)
Amit Jain — EU-side
EU Customs Import Declaration review
REACH / CE / product compliance documentation
LC document presentation coordination
FTA duty preference claim at EU customs
VAT registration and import VAT accounting
EU distributor / importer agreement coordination
04
Stage 04

Post-Deal & Repeat Pipeline

Both Principals — Jointly
Delivery confirmation and buyer acceptance
Commission invoice issuance and settlement
Dispute resolution (quality, quantity, delivery)
Repeat order scheduling and volume negotiation
Annual supply framework negotiation (year 2+)
Category expansion: additional SKUs, new buyers, new markets
The Commission Model

Why Commission-Only Alignment Wins

When an intermediary earns only when the deal closes, their entire incentive aligns with yours. There is no retainer to justify, no hours to bill, no advisory fee that accrues while the deal stalls.

We pursue only deals we believe in. We pre-qualify both sides. We execute with urgency because our income depends on it — not on the passage of time.

Incentive Alignment

We earn only when you earn. Every action we take is oriented toward closing the deal.

No Dead Cost

No retainer. No advisory fees. If the deal does not close, you owe nothing.

Credibility Filter

Commission-only model forces us to pursue only mandates we believe are closeable. We say no to weak mandates.

Scalability

Unlimited verticals, unlimited geography. Every closed deal adds compounding commission income.

Compound Income

Repeat orders generate ongoing commission for the agreed term — without additional work per shipment.

Where We Operate

Highest-Commission Sectors for Mercantile Trade

Mercantile deal structures work in any sector — but commission rates, deal complexity, and repeat order frequency vary significantly by vertical.

Business Brokerage & M&A
3–10%

Highest single-deal commission in the portfolio. SME acquisitions, JV structuring.

Medical Tourism
10–20%

Commission from empanelled hospitals. EU/MENA patients to Indian JCI/NABH hospitals.

Textiles & Apparel
4–8%

India FTA duty 12%→0%. GOTS/OEKO-TEX certified mills. EU private label.

Pharma CMO Outsourcing
3–6% p.a.

Annual CMO contract. EU nutraceutical brands to Indian WHO-GMP manufacturers.

IT Recruitment
15–25% CTC

EU tech companies seeking Indian IT professionals. Portugal D8 visa pathway.

Engineering & Auto Parts
2.5–5%

High-volume repeat orders. IATF-16949 certified Tier-2 suppliers.

Luxury & Premium Goods
8–15%

Kashmiri Pashmina, Jaipur gems, Varanasi silk. GI-certified post-FTA.

D2C Brand Market Entry
5–10% Y1

Amazon EU launch. VAT, CE marking, FBA setup. Indian brands to EU consumers.

View All 30 Verticals
Common Questions

Frequently Asked About Our Trade Model

Is back-to-back invoicing legal? +
Yes, completely legal. Back-to-back invoicing is a standard merchant trading structure used by commodity traders, export houses, and trade intermediaries worldwide. The intermediary receives an invoice from the supplier and issues a separate invoice to the buyer — earning the margin between the two. All parties must be aware that an intermediary is involved (which is disclosed and protected by the NCNDA), and all invoices must accurately describe the goods and value for customs purposes.
How is the commission rate determined? +
Commission rates are negotiated deal-by-deal based on: sector (trade facilitation 2.5–5%, brokerage 3–10%, recruitment 15–25% CTC), deal complexity, deal size, repeat order frequency, and the level of effort required to originate, qualify, and close the mandate. Rates are specified in the Commission Agency Agreement and locked before any introduction is made.
Do you handle smaller deals or only large volumes? +
We handle deals from approximately EUR 20,000 upward. Below this threshold, the commission typically does not justify the documentation and coordination effort. Our sweet spot is EUR 50,000–500,000 per initial order, with annual supply contracts of EUR 200,000–2M. We do not impose upper limits — and some mandates (business brokerage, M&A) exceed EUR 10M.
What happens if the buyer and supplier try to deal directly after introduction? +
The NCNDA (Non-Circumvention, Non-Disclosure & Non-Competition Agreement) executed before introduction gives Global Nexus enforceable legal protection against circumvention. The circumvention period is typically 5 years, with a commission tail of 24 months post-mandate expiry. Circumvention is actionable under ICC arbitration in Lisbon or New Delhi.
How long does it typically take to close a first deal? +
Timeline depends entirely on sector and product type. Simple commodity trade mandates (textiles, chemicals, agro): 8–16 weeks from NCNDA to first shipment. Complex mandates (business brokerage, CMO arrangements, IT recruitment): 3–8 months. We provide realistic timeline projections at mandate inception.
Go Deeper

Related Intelligence

Documentation Framework →

Every document type in a mercantile trade transaction — what it is, who issues it, and when.

India–EU FTA Guide →

Tariff schedules, Rules of Origin, REX registration, and sector-by-sector FTA impact.

Legal Document Library →

NCNDA, Commission Agency Agreement, Mandate Letter, and more — available on request.

Prospecting Kit →

How to originate, qualify, and present a trade mandate to Global Nexus — with templates.

⚖️ Legal Disclaimer: This page and the data/information presented herein are for general commercial orientation and informational purposes only. All figures, trade data, tariff rates, regulatory requirements, and timelines are indicative only and subject to change without notice. Nothing on this page constitutes legal, tax, customs, financial, or regulatory advice. Vinod Kumar Jain and Amit Jain / Global Nexus Trade & Advisory are commercial trade intermediaries and not licensed legal advisers, customs agents, financial advisers, or regulatory specialists. Before relying on any information presented, engage qualified legal counsel, a licensed CHA (Custom House Agent), a certified tax adviser, and relevant regulatory specialists in both India and the applicable EU member state. All regulatory thresholds, timelines, and procedures must be independently verified before reliance.

Ready to discuss a specific trade mandate? We engage every enquiry personally.

Porto, Portugal · +91 98881 47147 Panchkula, India · +91 98881 47147
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