MARKETING DEVELOPMENT ASSISTANCE CODE
FOR EXPORT PROMOTION EFFORTS
Government of India
Ministry of Commerce & Industry
Department of Commerce (E&MDA Division)
Udyog Bhavan, New Delhi - 110 011 June, 2001


Ref.No. PUB/MDA/Scheme/1619                                                                                          04th May, 2006

Dear Sir/s,

Revised MDA Guidelines w.e.f. 1st April, 2006

As you are aware, the Government of India gives Market Development Assistance (MDA) to individual exporters for undertaking export promotional activities with a view to stimulate and diversify India’s export trade in a big way. The Government has now revised the guidelines which have come into force w.e.f.1st April, 2006. Given below is the extract of the revised MDA Guidelines relevant   to individual exporters who wish to avail of the facility for participating in export promotional activities abroad; EPC–led Trade Delegations/BSMs/Trade Fairs/Exhibitions:  

Eligibility 

(i)              Exporting companies with an f.o.b.value of exports upto Rs.15 crores in the preceding year will be eligible for MDA assistance for participation in Trade Delegations/BSMs/Fairs/Exhibitions abroad to explore new markets for export of their specific product(s) and commodities from India in the initial phase. This will be subject to the condition that the exporter is having complete 12 months membership with concerned EPC etc. and filing of returns with concerned EPC/organization regularly. However, this condition would not apply in case of a new EPC for a period of 5 years from the date of its creation.

(ii)            Assistance would be permissible on travel expenses by air, in economy excursion class fair and/or charges of the built up furnished stall. This would, however, be subject to an upper ceiling mentioned in the table per tour.

 

S.No.

 

(1)  

Area/Sector

 

(2)

No. of visits

 

(3)

Maximum Financial

Ceiling per event

(4)

1.

Focus LAC

 1

Rs.1,80,000

2.

Focus Africa (including WANA Countries)

 1

Rs.1,50,000

3.

Focus CIS

 1

Rs.1,50,000

4.

Focus Asean+2

 1

Rs.1,50,000

5.

General Areas

 1

Rs. 80,000

 

TOTAL

 5

 

 

The participation of individual companies in the above activities shall be subject to the following conditions: 

(1)            For EPC etc. led Trade Delegations/BSMs only air-fare by Economy Excursion class upto a maximum of Rs.70,000 (Rs.1,00,000 in case of Focus LAC) shall be permissible. For participation in Trade Fairs/Exhibitions reimbursement shall be permissible subject to ceilings mentioned in the column 4 in the above table.

(2)            Maximum number of permissible participations shall be five in a financial year as indicated in above table (No travel grant is permissible for visit to General Areas).

(3)            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.

(4)            Intimation application must be received in the concerned EPC etc. 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 the Foreign Trade Policy of India or any other law relating to export and import business.

(6)            Member exporters of EPCs etc. would also be eligible for MDA assistance for participation in events organized by ITPO abroad. Their applications/claims would be routed/reimbursed through concerned EPC etc.

(7)            Maximum MDA assistance shall be inclusive of MDA assistance received from all Govt. bodies/FIEO/EPCs/Commodity Boards/Export Development Authorities/ITPO etc. 

(8)            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 participation in that fair, if any, on self-financing basis. 

                Documentation for Reimbursement of Assistance to Exporters: 

(i)              Intimation application in the prescribed format duly completed and signed shall be submitted by the exporter to the concerned EPC etc. giving clear 14 days advance notice. Intimation and the application may be sent electronically by email also.

(ii)            Concerned Organization (FIEO, EPC etc.) on receipt of intimation shall immediately issue acknowledge receipt. Thereafter they will examine and issue approval letter to the exporter preferably within 5 working days.

(iii)          Claim along with the declaration duly completed and the Certificate duly signed by a Chartered Accountant shall be submitted by the exporter to the concerned Organization (FIEO, EPC etc.)  in the prescribed format along with under mentioned papers immediately on return to India after completion of the activity but positively within 45 days of their return to India: 

·              Details of activity undertaken earlier with MDA assistance to the same country/countries.

·              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 evidence such as Hotel Bills, Boarding pass, Lodging pass, etc. be submitted.

·              Original air ticket/jacket used during the journey. If Original air ticket/jacket is lost, a legible photocopy of the same along with a  certificate from the concerned airline indicating following may be sent:

(a)    Name of the traveler

(b)   Ticket number

(c)    Flight No.

(d)   Date of departure from India

(e)    Sectors/countries visited

(f)     Class in which traveled

(g)   Economy excursion class fare for sectors/countries visited 

·              Self certified f.o.b. value export figures during the last three financial years, year-wise.

·              Brief report about the activity participated and achievements made.

(iv)          Claim forms duly filled in and complete in all respects must be submitted to the concerned EPC, FIEO etc. within 90 days of return to India. However, claims submitted within 30 days from the expiry of the 90 days period may be entertained by wherein the deficiencies in the claim as intimated by the concerned EPC, FIEO etc. with 10% deduction. The claim which are submitted after 120 days of return to India shall not be entertained under any circumstances. Any deficiencies in the claim as intimated by the concerned EPC, FIEO etc., must be completed within 30 days of the date of directions given in this regard failing which the claim shall stand rejected without any further intimation or reminder in this regard by the concerned EPC, FIEO etc.

Members are requested to kindly take note of the revised guidelines and strictly adhere to the conditions thereon while applying for MDA for participation in export promotional activities abroad.

Thanking you,

Yours faithfully,


SANCTUS EPHREMS
DEPUTY  DIRECTOR (PUB)


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