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Marketing Development Assistance - Amendments Thereto


(Date:2007-2-15 19:20:27 Hits:
From:GOGOstone
Recent Amendments
In partial modification of para 4(1) of the MDA Code regarding eligibility conditions for availing MDA Assistance, this is to inform that the undermentioned amendments would be applicable for sales cum-study tours, trade delegations, participation in international trade fairs/exhibitions, Council sponsored buyers-sellers meets etc., with the departure of the company's representative for participation in these events on or after 1st May, 2002 from India.
 
1. Exporting companies with annual export of Rs.4 crore or less in the preceding financial year:
 
Assistance on travel allowance (air fare) in economy class would be eligible for MDA to the exporting companies for having annual export turnover of Rs.4 crore or less in the preceding financial year both for sales-cum-study tours/trade delegations, participation in international trade fairs/exhibitions/Council sponsored BSMs abroad.
 
The assistance under MDA will be available on percentage basis with unchanged upper ceilings of the events indicated in the MDA code.
 
2. Exporting companies with annual export of more than Rs.4 crore:
 
Exporting companies with annual export of more than Rs.4 crore in the preceding financial year will be eligible for MDA assistance for 2 participations in international trade fairs/exhibitions/Council sponsored BSMs only on charges of built up furnished stalls for display of products.
 
The assistance under MDA will be eligible on percentage basis with unchanged upper ceilings for such participation in the MDA code.
 
3. Additional activity on LAC (Latin American Countries)/Sub Saharan(Focus Africa):
 
One additional activity permissible for Latin American Countries / Sub Saharan Countries (Focus Africa) will also be admissible on the parameters mentioned against para 1 & 2 above.
All other terms and conditions of the MDA code remain unaltered and applicable.
 
MARKETING DEVELOPMENT ASSISTANCE SCHEME
 
1. Eligible Activities
 
All exporters for bonafide overseas marketing promotion activities to explore new markets for export of their specific product(s) and commodities from India in the initial phase are eligible for assistance under MDA scheme in undertaking following activities abroad:
 
1) Participation in trade fair/exhibition.
2) Publicity through printed material.
 
2. Number of Activities Permissible
 
Maximum number of permissible participations fairs/exhibitions are two in a financial year. One additional activity, participation in trade fair/exhibition in the Latin American Countries / Sub Saharan Countries (Focus Africa) would also be permissible in a financial year.
 
3. Eligible Exporters/Routing of MDA Assistance
 
Recognized export/trading houses by the DGFT would be provided assistance through Federation of Indian Export Organizations (FIEO) and other exporters would be provided assistance through concerned EPCs, Commodity Boards, APEDA & MPEDA.
 
4. Participation in Trade Fairs/Exhibitions:
 
Assistance would be permissible on travel expenses by air, eurorail etc. in economy excursion class fair and/or charges of the built up finished stall, electricity and water charges @ 90% for exporters having valid SSI registration certification and @ 75% for other including merchant exporters. This would, however, be subject to an upper ceiling of Rs.1,10,000/- per participation Rs.1,40,000/- for LAC/Sub Sahara (Focus Africa) region. This would also be subject to meeting the following conditions:
 
(1) A maximum of three participations in a particular trade fair/exhibition would be eligible for MDA assistance and 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.

(2) Assistance for participation in trade fair/exhibition, wherein national participation is arranged by ITPO/EPC/Commodity Board/Export Development Authority would be provided if participated in the Indian Pavilion through the concerned organization or after getting waiver certificate from the concerned organization.

(3) Assistance for travel expenses would be permissible to one regular employee/Director/Partner/proprietor of the company.

(4) Intimation application must be received in the concerned EPC, FIEO, Commodity Board, APEDA & MPEDA with a minimum of 14 days clear advance notice excluding the date of receipt of application in the office of the concerned organization and the date of departure from the country.

(5) 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.

(6) Maximum MDA assistance shall be inclusive of MDA assistance received from all Govt. bodies/FIEO/EPCs/Commodity Boards/Export Development Authorities/ITPO etc.
 
5. Publicity through printed material:
 
Cost of production of publicity material like product catalogue, brochure, information handout etc., for use abroad during sale cum study tour, participation in trade fair/Exhibition, EPC sponsored buyer cum seller meet/trade delegation etc. would be permissible for assistance from MDA scheme @ 25% of the total approved cost subject to an upper ceiling of Rs.15,000. This would be subject to meeting the following conditions :
 
(1) Assistance would be provided once in a financial year.
(2) A copy of the publicity material is to be submitted alongwith the claim.
(3) Quotation from a minimum of three printers is to be obtained and submitted alongwith the claim. Assistance will, however, be allowed on the lowest quotation subject to the upper ceiling as mentioned above.
(4) Intimation application must be received in the concerned EPC, FIEO commodity, APEDA & MPEDA with a minimum of 14 days clear advance notice excluding the date of receipt of application in the office of the concerned organization and the date of the publication of the material.
(5) 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.
(6) Maximum MDA assistance shall be inclusive of MDA assistance received from all Govt. bodies/FIEO/EPCs/Commodity Boards/Export Development Authorities/ITPO etc.
 
6. DOCUMENTATION FOR REIMBURSEMENT OF ASSISTANCE TO EXPORTERS:
 
6.A - For participation in trade fair and exhibition
 
(i) Intimation application duly completed and signed in the prescribed format (Annexure-II) shall be submitted by the exporter to the concerned FIEO/EPC/Commodity Board/APEDA/MAEDA giving clear 14 days advance notice.

(ii) Concerned Organization (FIEO, EPC etc.) on receipt of application shall examine and issue approval letter to the exporter preferably within soonest possible time on receipt of the application form in the prescribed format (Annexure IV).

(iii) Claim alongwith the declaration duly completed shall be submitted by the exporters to the concerned organization (FIEO, EPC etc.) in the prescribed format alongwith under mentioned papers immediately on return to India after completion of activity by positive within 3 months of return to India after completion of activity:
  • Details of participation in the past with MDA assistance in the same trade fair/exhibition.
  • Self-certified copy of the export house / trading house certificate, if applicable.
  • Self-certified copy of SSI registration certificate issued by the concerned Directorate of Industries, if applicable
  • Legible photocopy of passport highlighting the entries about departure from and arrival into India and also the countries visited. In case, passport does not have arrival /departure dates regarding visits to various countries, some documentary evidences such as Hotel Bills, Boarding pass, lodging pass etc.
  • Original air ticket/jacket used during the journey. If Original air ticket/jacket is lost, a legible photocopy of the same alongwith a certificate from the concerned airline indicating following may be sent:
1.       Name of the traveller
2.       Ticket number
3.       Flight no.
4.       Date of departure from- India.
5.       Sectors/countries visited
6.       Class in which travelled.
7.       Economy excursion class fare for sectors/countries visited.
  • Self certified copy of receipts/bank advice bank debit advice etc. evidencing payment(s) made.
  • Self certified f.o.b. value export figures during the last three financial year, year wise.
  • Report about the participation and achievements.
  • Copy of Travel agent bill for Airfare.
(IV) Claim form received after 3 month of return of India or wherein the deficiencies in the claim as intimated by the concerned EPC, FIEO etc. are not fully completed within 30 days of the date of directions given this regard by the concerned EPC, FIEO etc. would not be entertained and rejected.
 
6.B- For publicity through printed material
 
(i) Intimation application duly completed and signed in the prescribed format (Annexure-III) shall be submitted by the exporter to the concerned FIEO/EPC/Commodity Board/APEDA/MPEDA giving clear 14 days advance notice.

(ii) Organization (FIEO, EPC etc.) on receipt of application shall examine and issue approval letter to the exporting company, preferably within soonest possible time on receipt of the application form in the prescribed format (Annexure-IV).

(iii) Claim alongwith the declaration duly completed shall be submitted to the concerned organisaton (FIEO, EPC etc.) in the prescribed format alongwith undermentioned papers immediately on return to India/ production of publicity material :
  • Copy of the publicity material, self-certified.
  • Self-certified copy of the invoice.
  • Self certified copy of receipt/bank advice etc. evidencing payments made.
  • Copies of three quotations from printers, self certified.
  • Self certified f.o.b. value export figures during the last 3 financial year, year wise.
(iv) Claim form received after 3 month of the production of publicity material or wherein the deficiencies in the claim as intimated by the concerned EPC, FIEO etc. are not fully completed within 30 days of the date of directions given in this regard by the concerned EPC, FIEO etc., would not be entertained and rejected.

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