| MARKETING
DEVELOPMENT ASSISTANCE SCHEME
(REVISED GUIDELINES W.E.F.
1.4.2004)
Export promotion continues to be a major
thrust area for the Government. In view of the prevailing
macro economic situation with emphasis on exports and to facilitate
various measures being undertaken to stimulate and diversify
the country’s export trade, Marketing Development Assistance
(MDA) scheme is under operation through the Department of
Commerce to support the undermentioned activities:
(i) Assist exporters for export promotion activities abroad
(ii) Assist Export Promotion Councils (EPCs) to undertake
export promotion activities for their product(s) and commodities
(iii) Assist approved organisations/trade bodies in undertaking
exclusive non-recurring innovative activities connected with
export promotion efforts for their members
(iv) Assist EPCs to contest Countervailing Duty/Anti Dumping
cases initiated abroad
(v) Assist Focus export promotion prgrammes in specific regions
abroad like Focus (LAC), Focus (Africa), Focus (CIS) and Focus
(ASEAN + 2) programmes
(vi) Residual essential activities connected with marketing
promotion efforts abroad.
Assistance to individual exporters for
export promotion activities abroad – Participation in
EPC etc. led Trade Delegations/BSMs/Trade Fairs/Exhibitions:
| Sl. No (1) |
Area/Sector
(2) |
No. of visits
eligible (3) |
Maximum Financial ceiling
per event |
| BSM/Trade
fair/delegations /exhibition etc. abroad(Travel grant(A)
(4) |
Trade
Fair/ Exhibition abroad (Stall Charges(B) (5) |
Total(in
Rs.) (A+B) (6) |
| 1. |
Focus LAC |
1 |
Rs. 90,000/- |
Rs. 50,000/- |
1,40,000/- |
| 2. |
Focus Africa (Including
WANA countries) |
1 |
Rs. 60,000/- |
Rs. 50,000/- |
1,10,000/- |
| 3. |
Focus CIS |
1 |
Rs. 60,000/- |
Rs. 50,000/- |
1,10,000/- |
| 4. |
Focus ASEAN |
1 |
Rs. 60,000/- |
Rs. 50,000/- |
1,10,000/- |
| 5. |
General Areas |
1 |
Nil |
Rs. 50,000/- |
Rs. 50,000/- |
| |
TOTAL |
5 |
|
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- Assistance would be permissible on travel
expenses by air, in economy excursion class fare and/or
charges of the built up furnished stall, @ 90% for exporters
having valid SSI registration certification and @ 75% for
others including merchant exporters. This is subject to
upper ceiling as mentioned above in the table.
- Eligibility for MDA assistance is subject
to exporting companies having FOB value of exports upto
Rs.5 crore ( Amended to Rs. 10 crore effective from 1st
April, 2005) in the preceeding year and having complete
12 months membership with EEPC with regular filing of returns.
12 months should be counted from the date of registration
to date of departure of the firm from India .
- For EPC etc. led Trade Delegation/BSMs only
(Amended, with effect from 1st April, 2005, to: The present
arrangement of allowing participation of exporting companies
in fairs/exhibitions only through the EPCs/ITPO lead activities
stands amended to provide that the participation in fairs/exhibitions/BSMs
abroad will not be allowed “either directly”
OR “through the EPCs/ITPO lead activities”)
air fare by Economy Excursion class as indicated in the
table above shall be permissible. For participation in Trade
Fairs/Exhibitions stall charges in addition to travel expenditure
shall also be permissible subject to ceiling mentioned in
the above table.
- Maximum number of permissible participations
shall be five in a financial year ( one in each area/sector)
as indicated in above table (No travel grant is permissible
for one visit to General Areas).
- Assistance shall be permissible to one regular
employee/director/partner/ proprietor of the company.
- Assistance would not be available to exporter
of foreign nationality or holding foreign passport.
- Intimation application for MDA claim must
be received in the EEPC office with a minimum of 14 days
clear advance notice excluding the date of receipt of the
application in the office of EEPC and the date of departure
from the country.
- The company shall not be under investigation/charged/prosecuted/
debarred/black listed under Exim Policy of India or any
other law relating to export and import business.
- Maximum MDA assistance shall be inclusive
of MDA assistance received from all Govt. bodies/FIEO/EPCs/Commodity
Boards/Export Development Authorities/ITPO etc.
- A Maximum of three participations in a particular
trade fair/exhibition would be eligible for MDA assistance.
Exporting companies after availing assistance three times
including past cases for a particular fair/exhibition, have
to participate in that fair, if any, on self-financing basis
(Amended, with effect from 1st April, 2005, to : The ceiling
of three consecutive participation in a particular trade
fair/exhibition abroad by an EPC in all areas has been withdrawn.
The present restriction of not more than three consecutive
participation for an individual exporter shall however,
continue) .
Application for MDA may be submitted in the nearest Regional
office of EEPC.
Amendments of Marketing Development Assistance (MDA) Scheme
Guidelines (Effective from 1st April, 2005)
Reproduced below the relevant contents of the letter No.
2/1/2004-E&MDA dated 12th April, 2005 and 26th April,
2005 received from the Deputy Secretary to the Government
of India, Ministry of Commerce, New Delhi
- Exporting companies with an f.o.b. value
of exports upto Rs. 10.00 crore in the preceding
year will be eligible for MDA assistance.
- The ceiling of three consecutive participation
in a particular trade fair/exhibition abroad by an EPC in
all areas has been withdrawn. The present restriction of
not more than three consecutive participation for an individual
exporter shall however, continue.
- The present arrangement of allowing participation
of exporting companies in fairs/exhibitions only through
the EPCs/ITPO lead activities stands amended to provide
that the participation in fairs/exhibitions/BSMs abroad
will not be allowed “either directly” OR “through
the EPCs/ITPO lead activities”.
Clarification on the MDA
Scheme Guidelines
Reproduced below the relevant contents of the letter No. 2/1/2004-E&MDA
dated 28th Dec ‘05 as received from the Director, Government
of India, Ministry of Commerce & Industry, New Delhi
- Kind attention is drawn to our letters of
even number dated 26th April, 2005 and 9th May, 2005 intimating
amendments in the MDA Scheme guidelines.
- A doubt has arisen as to whether both, the
assistance under the MAI Scheme to eligible organizations,
for holding exhibitions as well as the reimbursement of
stall charges under the MDA Scheme to the eligible exporters,
participating in such exhibitions directly or through the
EPCs/ITPO are available.
- The issue has been
considered in this Ministry and the undersigned is directed
to clarify that the Exporting Companies participating in
fairs/exhibitions held abroad organized with assistance
under the Market Access Initiative Scheme (MAI) would not
be eligible for MDA assistance for stall charges
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