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MARKETING
DEVELOPMENT
ASSISTANCE CODE |
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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.
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,
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