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Government launches scheme to provide Transport and Marketing Assistance for agriculture products

The Transport and Marketing Assistance for specified agriculture products scheme aims to provide assistance for the international component of transportation of agricultural produce to mitigate the disadvantage of higher cost of exporting agriculture products.

Mar 6, 2019 13:41 IST
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The Department of Commerce under the Union Ministry of Commerce & Industry on March 5, 2019 notified a scheme for Transport and Marketing Assistance (TMA) for Specified Agriculture Products.

The scheme would be included in the Foreign Trade Policy (2015-20).

Objective

The Transport and Marketing Assistance for specified agriculture products scheme aims to provide assistance for the international component of transportation of agricultural produce to mitigate the disadvantage of higher cost of exporting agriculture products.

It will promote brand recognition for Indian agricultural products in the specified overseas markets.

Transport and Marketing Assistance for Specified Agriculture Products: Everything explained

Coverage

All exporters who are registered with relevant Export Promotion Council as per Foreign Trade Policy will be covered under the scheme.

The assistance will be available for export of eligible agriculture products to the permissible countries, as specified from time to time.

Timeline

The Scheme will be applicable for a period as specified from time to time by the government. At present, the scheme would be available for exports with effect from March 1 to 31, 2019.

What are the Specified Agriculture Products covered under the scheme?

The scheme would provide assistance on export of all agriculture products covered in HSN chapter 1 to 24 including marine and plantation products except those mentioned in Annexure (1).

List of agriculture products not eligible under TMA (Annexure (1))

Live animals

Butter and other fats and oils derived from milk

Cane and Chemically Pure Sucrose

Vegetable Plaiting Materials

Meat and Edible Meat Offal

Dairy spreads, Cheese and curd

In Solid Form - Raw Sugar not containing added flavouring

Buttermilk, curdled milk and cream, yogurt and other fermented or acidified milk and cream

Products of Animal Origin

Onions, shallots, garlic, leeks and other alliaceous vegetables

Molasses resulting from the extraction of sugar

Milk and cream, concentrated or containing added sugar

Shrimps and prawns

Wheat And Meslin

Beverages, Spirits and Vinegar

Lac; Gums, Resins and other Vegetable Saps and Extracts

 

Milk and cream, not concentrated nor containing added sugar

Rice

Tobacco and Manufactured Tobacco Substitutes

 

How the assistance would be provided under the scheme?

  • Assistance under TMA would be provided in cash through Direct Bank Transfer as part reimbursement of freight paid.
  • The Freight On Board (FOB) supplies where no freight is paid by Indian exporters are not covered under this scheme.
  • The level of assistance would be different for different regions as notified from time to time for export of eligible products.
  • The assistance will be provided only if payments for the exports are received in Free Foreign Exchange through normal banking channels.
  • The scheme will be eligible for the exports made through Electronic Data Exchange (EDI) ports only.
  • The scheme covers freight and marketing assistance for export by air as well as by sea.
  • 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 Less than Container Load (LCL) and a container having both eligible and ineligible category of cargo.
  • Assistance for products exported by air would be based on per ton freight charges on net weight of the export cargo, calculated on the full ton basis.

Procedure for Availing Assistance under the Scheme

The TMA scheme would be reimbursed through the Regional Authorities of Directorate General of Foreign Trade (DGFT).

The DGFT will lay down procedure for scrutiny of the claims, audit of the payments made, recovery of the ineligible paid assistance, and interest on such recoveries. 

The defaulters will be liable for penal action under the provisions of Foreign Trade (Development & Regulation) Act, 1992, Rules.

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