Revised Transport and Marketing Assistance Scheme

Revised Transport and Marketing Assistance Scheme

Revised Transport and Marketing Assistance Scheme- Notification

F. No. 17/2/2021-EP (Agri.IV).—The Central Government had introduced a Scheme titled „Transport and Marketing Assistance (TMA) for Specified Agriculture Products Scheme‟ vide Notification No. 17/3/2018-EP (Agri.IV) dated 27.02.2019. The Scheme was further amended vide Notification No. 17/3/2018-EP (Agri.IV) dated 06.06.2019, Notification no. 7/3/2018-EP (Agri.IV) dated 17.03.2020 and Notification no. 17/3/2018-EP (Agri.IV) dated 27.04.2020. It has now been decided to introduce the ‘Revised Transport and Marketing Assistance (TMA) for Specified Agriculture Products Scheme’ for the exports effected on or after 01.04.2021. The earlier scheme would remain in operation for the
exports effected up to 31.03.2021.

  1. Introduction and Objective
    The “Transport and Marketing Assistance” (TMA) for specified agriculture products scheme aims to provide assistance for the international component of freight and marketing of agricultural produce which is likely to mitigate disadvantage of higher cost of transportation of export of specified agriculture products due to trans-shipment and to promote brand recognition for Indian agricultural products in the specified overseas markets.
  2. Coverage
    (a) All exporters, duly registered with relevant Export Promotion Council as per Foreign Trade Policy, of eligible agriculture products shall be covered under this scheme.
    (b) The assistance, at notified rates, will be available for export of eligible agriculture products to the permissible countries, as specified from time to time.
  3. Applicability: The Scheme would be applicable for the exports effected from 1.4.2021 to 31.03.2022
  4. Eligibility of Products: The assistance will be provided on export of all agriculture products covered in HSN chapter 1 to 24 including marine and plantation products, except those mentioned in Annexure-1.
  5. Pattern of Assistance

    (a) Assistance under TMA would be provided in cash through direct bank transfer as part reimbursement of freight paid. FOB supplies, where no freight is paid by Indian exporters, are not covered under this scheme.

    (b) The level of assistance would be different for different regions as notified from time to time for export of eligible products. List of export destinations/countries in each region eligible for assistance under TMA are mentioned in Annexure-2.

    (c) The assistance shall be admissible on the production of Bill of Lading/ Airway Bill with an indemnity bond to be submitted by the exporter, undertaking to refund the amount received as assistance under the scheme in case the export does not fructify.

    (d) The scheme shall be admissible for the exports made through EDI ports only.

    (e) The scheme covers freight and marketing assistance for export by air as well as by sea (both normal and reefer cargo).

    (f) For export of products by sea, TMA will be based on the freight paid for a full Twenty-feet Equivalent Unit (TEU) containers. The assistance will not be available for (i) Less than Container Load (LCL) and (ii) a container having both eligible and ineligible category of cargo. Further, no TMA is available where the cargo is shipped in bulk/break bulk mode. A forty feet container will be treated as two TEUs.

    (g) Assistance for products exported by air would be based on per kilogram freight charges on net weight of the export cargo, calculated on full kilogram basis, ignoring any fraction thereof.”

    (h) The assistance will be provided at the rates as notified in Annexure-3.
  6. Categories of export ineligible for TMA
    The following exports categories / sectors shall be ineligible under this scheme:

    (i) Export of imported goods covered under paragraph 2.46 of the FTP.
    (ii) Exports through trans-shipment, i.e. exports that are originating in third country but trans- shipped through India.
    (iii) Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS), unless specifically notified.
    (iv) Export products which are subject to Minimum Export Price or export duty, unless specifically notified.
    (v) Export of goods through courier or foreign post offices using e-Commerce.
  7. Procedure for Availing Assistance under the Scheme
    TMA would be reimbursed through the Regional Authorities of DGFT as per the procedure laid down in Chapter 7(A) of Handbook of Procedures.
  8. Mechanism for Scrutiny of the claims, audit, recovery and penal action
    DGFT will lay down procedure for scrutiny of the claims, audit of the payments made, recovery of the ineligible/excess paid assistance, interest on such recoveries. The defaulters shall be liable for penal action under the provisions of Foreign Trade (Development & Regulation) Act, 1992, Rules and orders made thereunder.

Annexures at Page No. 6

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