Ministry of Commerce and Industry issues ‘Revised Transport and Marketing Assistance (TMA) for Specified Agriculture Products Scheme’

Sep 13, 2021 | by Avantis RegTech Legal Research Team

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Industry Specific Compliance

The Ministry of Commerce and Industry on September 9, 2021 has issued the ‘Revised Transport and Marketing Assistance (TMA) for Specified Agriculture Products Scheme’. The Scheme would be applicable for the exports effected from April 1, 2021 to March 31, 2022. 

The Objective 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.

Eligibility 

All exporters, duly registered with relevant Export Promotion Council as per Foreign Trade Policy, of eligible agriculture products shall be covered under this scheme. 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. 

Pattern of Assistance

• 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.

• 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.

• The scheme shall be admissible for the exports made through EDI ports only. 

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

• 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.”

• TMA would be reimbursed through the Regional Authorities of DGFT as per the procedure laid down in Chapter 7(A) of Handbook of Procedures.

The following exports categories / sectors shall be ineligible under this scheme:

• Export of imported goods covered under paragraph 2.46 of the FTP

• Exports through trans-shipment, i.e. exports that are originating in third country but trans- shipped through India.

• Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS), unless specifically notified.

• Export products which are subject to Minimum Export Price or export duty, unless specifically notified.

• Export of goods through courier or foreign post offices using e-Commerce.

[Notification No - 17/2/2021-EP (Agri.IV)][Gazette ID- 229518]

 


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