TRANSPORT AND MARKETING ASSISTANCE FOR SPECIFIED AGRICULTURE PRODUCTS

[Mr. M. GOVINDARAJAN]

Transport and Marketing Assistance

The ‘Transport and Marketing Assistance’ (‘TMA’ for short) 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 transshipment; and
• to promote brand recognition for Indian agricultural products in the specified overseas markets.

Scheme

In March, the Central Government announced a scheme for providing financial assistance for transport and marketing of agriculture products.  The Central Government has laid out a detailed procedure for claiming benefits under the Transport and Marketing Assistance (TMA) scheme, vide Notification No. F.No.17/3/2018-EP (Agri-IV), dated 27.2.2019.

Applicability of the scheme

This scheme would be applicable for a period as specified from time to time.  Currently this scheme would be available for exports effected from 01.03.2019 to 31.03.2020.

Coverage

• All exports, duly registered with relevant Export Promotion Council as per Foreign Trade Policy, of eligible agricultural products shall be covered under this scheme.
• The assistance, at notified rates, will be available for export of eligible agricultural products to the permissible countries, as specified from time to time.

Eligible products

The assistance will be provided on export of all agriculture export products covered in HSN Chapters 1 to 24 including marine and plantation products except the following products-

• Chapters 1, 2 & 5 – All HS Code-
  • Live animals;
  • Meat and edible meat offal;
  • Products of Animal Origin, not elsewhere specified or included.
• Chapter 3 – 030617 – Other shrimps and prawns.
• Chapter 4 –
  • 0401 – Milk and cream, not concentrated nor containing added sugar or other sweetening matter;
  • 0402 – Milk and cream, concentrated or containing added sugar or other sweetening matter;
  • 0403 – Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavored or containing added fruit, nuts or cocoa;
  • 0404 – Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included;
  • 0405 – Butter and other fats and oils derived from milk; diary spreads;
  • 0406 – Cheese and Curd.
• Chapter 7 – 0703 – Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled;
• Chapter 10 –
  • 1001 – Wheat and Meslin;
  • 1006 – Rice.
• Chapters 13 & 14 – All HS Codes-
  • Lac; gums, resins and other vegetable saps and extracts;
  • Vegetable plaiting materials; vegetable products not elsewhere specified or included.
• Chapter 17 –
  • 1701 – Cane or Beet Sugar and Chemically Purse Sucrose, in solid form – raw sugar not containing added flavoring or coloring matter;
  • 1703 – Molasses resulting from the extraction or refining of sugar.
• Chapters 22 and 24 – All HS Codes-
  • Beverages, spirits and vinegar;
  • Tobacco and manufactured tobacco substitutes.

Assistance

The following are the patterns of assistance under this scheme-

• In cash through direct bank transfer as part reimbursement of freight paid.FOB supplies 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 shall be admissible only if payments for the exports are received in free foreign exchange through normal banking channels.
• The scheme shall be admissible for the exports made through EDI ports only.
• The scheme shall be admissible for the exports for export by air and sea.
• For export of products by sea, the assistance will be based on the freight paid for a full 20 feet equivalent container for-
  • Less than Container Load; and
  • A container having both eligible and ineligible category of cargo.

No assistance will be available where the cargo is shipped in bulk/break bulk mode.  A 40 feet container will be treated as two TEUs.

• The assistance for products exported by air would be based on per ton freight charges on net weight of the export cargo, calculated on full ton basis, ignoring any fraction thereof.

Assistance rate

The following table will show the differential rate of assistance under this scheme-

(in Indian Rupees)

Region	About Per TEU (Normal)	Amount per TEU (Reefer)	By air - amount per tonne
West Africa	11200	19600	840
European Union	9800	21000	1120
Gulf	8400	14000	700
North America	21000	28700	2800
ASEAS	5600	12600	700
Russia & CIS	12600	22400	700
Far East	8400	12250	840
Oceana	16800	24500	2800
China	0	12600	840
South America	23800	31500	3500

Eligible countries

The list of regions and export countries in each region eligible for this assistance is shown in the following table-

Region	Country name
West Africa	Benin, Mali, Burkina Faso, Mauritania, Ivory Coast, Niger, Cape Verde, Nigeria.
European Union	Albania, Andorra, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Kosovo, Latvia, Liechtenstein, Lithuania, Luxemburg, Macedonia, Malta, Monaco, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, an Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, Vatican City.
Gulf	Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates.
North America	Antigua and Barbuda, Bahamas, Belize, Canada, Costa Rica, Cuba, Dominica, Dominican Republic, El Salvador, Grenada, Guatemala, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Saint Kitts and Nevis, Saint Lucia, Saint Vincent  and the Grenadines and Tobago, United States of America.
AS,EAS	Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam.
Russia & CIS	Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan.
Far East	Japan, North Korea, South Korea.
Oceana	Australia, Fiji, Kiribati, Marshall islands, Micronesia, Nauru, New Zealand, Palau, Papua Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu.
China	PRC China, Hong Kong, Taiwan
South America	Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Peru, Paraguay, Suriname, Uruguay, Venezuela.

Ineligible exports

The following exports and categories/sectors are ineligible under this scheme-

• Products exported from SEZs/EOUs/EHTPs/STPs/BTPs/FTWZs;
• SEZ/EOU/EHTPs/STSs/BTPs/FTWZs products exported through DTA units;
• Export of imported goods covered under para 2.46 of FTP;
• Export through transshipment, i.e., exports that are originating in third country but transshipped 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 counter or foreign post offices using e-commerce.

Procedure

• The assistance would be reimbursed through the Regional Authorities of DGFT as per the procedure laid down in Chapter 7(A) of Handbook of Procedures (2015-2020).
• The DGFT will scrutinize the claims, audit of the payments made, recovery of the ineligible or excess paid assistance or interest on such recoveries.
• The defaulters shall be liable for penal action under the Foreign Trade (Development and Regulation) Act, 1992, Rules and orders made there under.

Assistance included in FTP policy

Vide Notification No. 58/2015-2020, dated 29.03.2019, the Central Government added Chapter 7A in Foreign Trade Policy (2015-2020) and incorporate the TMA.  The procedure under Chapter 7A of Handbook of Procedures (2015-2020) is yet to be incorporated.