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TRANSPORT AND MARKETING ASSISTANCE FOR SPECIFIED AGRICULTURE PRODUCTS

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..... TRANSPORT AND MARKETING ASSISTANCE FOR SPECIFIED AGRICULTURE PRODUCTS
By: - DR.MARIAPPAN GOVINDARAJAN
Customs - Import - Export - SEZ
Dated:- 8-4-2019

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 ass .....

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..... istance 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 .....

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..... 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 .....

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..... 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, .....

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..... 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 differ .....

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..... ent 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. * Th .....

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..... e 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 e .....

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..... ach 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, B .....

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..... ahamas, 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. .....

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..... 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 Mini .....

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..... mum 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 .....

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..... 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.
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