Commercial Agency Service: Functions of Clearing and Forwarding Agents, Relating to Imports and Exports, Advertising Agency (For CBSE, ICSE, IAS, NET, NRA 2022)

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Functions of Clearing and Forwarding Agents

Relating to Imports

Relating to Imports

Relating to Exports

Relating to Exports

Advertising Agency

An advertising agency is a business, set up to render specialised services in advertising and marketing of products. It helps advertisers in drafting the advertisement copy and placing them in appropriate media for publicity. Some large business firms have their own advertising departments. But many producers may not afford such in-built facilities. Consequently, they depend upon specialised advertising agencies for designing and publicising or exhibiting their advertisements in an effective manner.

Functions of Advertising Agency

The main functions of advertising agencies include:

  • Designing and Preparing the advertisement copies.
  • Planning and selecting the advertising media; and
  • Securing space or time in all categories of media, i.e.. , print, televisions, radio, billboard, etc.

Additional services provided by the advertising agencies may include printing the labels of the product, designing the package, undertaking market research, presentation of advertising strategy to advertisers etc.

Packing Agency

Unless goods, particularly manufactured goods are packed properly, they cannot be transported or conveniently handled. Packing serves the purpose of protecting goods from deterioration or damage, facilitates their handling and promotes their marketing. Any person or firm undertakes the task of packing goods on behalf of the producer or owner is known as a packing agent. Packing agencies design the appropriate package to be made and make use of wrappers or containers for the purpose of packing the products. The package may consist of goods wrapped in cloth, paper or plastic sheets or goods packed in a container, carton, box, bag or crate. Packages may be of different sizes depending on the purpose in view. For example, sugar may be packed in bags for transportation but for retail sale it may be packed in small packages.

Functions of Packing Agency

The following are some of the main functions of packing agency:

Preservation of Product

The packing agent packs the goods properly so that the goods can be preserved for a long period. The original colour, shape, size can be maintained if the goods are properly packed.

Easy Handling of Goods

Packing makes handling of goods easier and more convenient. So, the packing agent packs the goods in suitable container to facilitate easy handling.


Attractive packages serve as a means of self-advertising. Therefore, packing agents design and prepare the packages in a way that attract the attention of the prospective customers.

Information on the Package

The packing agent labels useful information regarding the contents, quantities, maximum retail price, date of manufacturing and date of expiry etc. on the package of the goods. These information՚s are very much useful before taking any buying decision.

Protection from Damage

Special packing is necessary for fruit and vegetable, fish, fragile goods etc. The packing agents make special packing arrangement for these goods by using straw, paper, wood etc. In case of certain specific products, transporters are cautioned about the necessity of handling the packages with due care, like, for example. “Glass with Care” .

Protection of Quality

To avoid adulteration, the products are supplied in sealed containers. It helps in maintaining its quality.

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