• Posted on: 5 March 2016
  • By: admin

Market Development Assistance (MDA) Export Scheme

Ministry of Commerce has designated our Council as Nodal Agency to process & reimburse MDA grant for Export Promotion activities., has revised guidelines with effect from April 1, 2006.  

  • EOUs and SEZ Units with an FOB value of exports of upto Rs. 15 crore (as per earlier guidelines this was Rs. 10 crore) 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 unit is having membership with EPCES etc and filing of returns with concerned EPC/organization regularly.

  • Application should reach Council’s office within a minimum of 14 days clear advance notice excluding the date of receipt of application in the office and date of departure from the country.

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

  • Member EOUs & SEZ Units of EPCES would also be eligible for MDA for participation in events organized by ITPO abroad. Their applications/claims would be routed/reimbursed through Export Promotion Council for EOUs & SEZ Units.

  • However, MDA is not eligible for direct participation in Trade Fairs and Exhibitions abroad.

Details of MDA grant, Sector-wise is as under:-

S.N. Area/Sector  No. of visits  Maximum Financial ceiling per event
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 (no travel grant is permissible



for visit to General Areas
Maximum number of participation will be five in a financial year. 
A copy of the revised guidelines w.e.f. 1-4-2006 is attached herewith.

2/1/2004-E&MDA(Part)
Government of India
Ministry of Commerce & Industry
Dept. of Commerce
MARKETING DEVELOPMENT ASSISTANCE SCHEME
(REVISED GUIDELINES W.E.F. 01.04.2006)

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 under mentioned 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 organizations/trade bodies in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts for their members

(iv)  Assist Focus export promotion programmes in specific regions abroad like FOCUS (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN + 2) programmes.

(v) Residual essential activities connected with marketing promotion efforts abroad.

2.   Administration of the Scheme

(i)  The utilization of scheme is administered by the E&MDA Division in the Department of Commerce, Government of India, Udyog Bhavan, New Delhi – 110 011. Recognized EPCs on product grouping basis, Commodity Boards and Export Development Authorities are eligible for MDA assistance for development and promotional activities to promote exports of their products and commodities from India.

(ii)   MDA budget allocation to recognized EPCs and other export promotion organizations for export promotion activities including specific special development and promotional projects are finalized in annual meetings with the respective EPCs, which are chaired, by the Additional Secretary and Financial Advisor (AS&FA), Department of Commerce. Proposals for adhoc grants for exclusive innovative export promotional activities, which are considered helpful to promote exports of Indian products and commodities are examined by the E&MDA Division and decided with the approval of the AS&FA.

(iii) Proposals of individual exporters for eligible MDA supported activities like participation in EPC led Trade Delegations/BSMs/Trade Fairs/Exhibitions for reimbursement of MDA assistance will be considered and approved by the Chief Executive Officer of the Export Promotion Councils/FIEO etc.

  

The approved claims shall be then disbursed by the concerned organization out of the funds allocated to them for this purpose. A monthly utilization report in the format at Annexure- IX , duly signed by the Chief executive Officer of the concerned organization shall be sent to the E&MDA Division in Department of Commerce. A copy of the report shall also be sent electronically at moc_mda@nic.in by the 7th day of every month. The names of beneficiaries giving details viz. Name of the participant, Name of the company represented, fair attended, amount disbursed etc. shall also be hosted on the respective  website by the concerned organisation,

The MDA Committee in the Dept. of Commerce shall test check 10% of the cases approved by the EPCs etc. through a random selection method, based on the monthly progress reports to be send by the EPCs.

3.   Assistance to individual exporters for export promotion activities abroad – Participation in EPC etc. led Trade Delegations/BSMs/Trade Fairs/ Exhibitions:

(i)  Exporting companies with an f.o.b. value of exports of upto Rs. 15 crore 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/organisation 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

General Areas

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).

   However, for priority sectors, having large employment generation potential, viz. Agriculture including food items, Handicrafts, Handlooms, Carpets, Leather & Minor Forest Produce including LAC, 2 (two) participations  in General Areas would be admissible with the assistance of Rs. 1,50,000 for each participation. The exporters availing of assistance under this provision would, however, be in addition to these participations, eligible for only any 2 Focus Area participations.

(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 by 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 participate in that fair, if any, on self-financing basis.

4.  Assistance to Export promotion Councils:

(i)   Export Promotion Councils (EPCs) are autonomous in administrative matters and no financial assistance is provided to them from MDA for administrative expenditure (non-code). List of recognized EPCs is given in Annexure-I. The EPCs can, however, be considered for one time assistance for computerization for data collection, analysis, dissemination under MDA.  Maintenance and updating of systems shall be the responsibility of the EPCs.

(ii)   EPCs will be allocated a budget, both for code activities and reimbursement of Individual Exporter’s claims, on annual basis. The budget for code activities and the funds for assistance to Individual Exporters will be released in two installments.

(iii) The EPCs are required to send their detailed annual action plan and estimated funds required for reimbursement to individual exporters to E&MDA Division three months in advance. The activities approved in the annual meetings with each EPC well before the start of the financial year shall only be financed from MDA funds. EPCs shall have to utilize the MDA funds in a financial year for purposes for which these are sanctioned. 50% of the MDA budget approved for both the Code activities as well as for reimbursement to individual exporters shall be released to the EPCs in the beginning of the financial year. The EPCs shall indicate their  further requirement of funds latest by 30th November of the year. Funds for reimbursement to individual exporters shall be released only when 90% of the first installment has been utilized and a utilisation certificate to this effect has been submitted by the concerned organisation. Earmarked grant for the financial year but not claimed within the year or wherein complete information has not been provided to facilitate its release, would lapse and shall not be carried over to the next financial year.

(iv) EPCs shall  furnish activity-wise detailed accounts for each approved code activity certified by a Chartered Accountant and the utilization certificate for the funds released in a financial year duly signed by the Chief Executive Officer of the concerned organisation by 30th September of the succeeding financial year.. The EPCs shall qualify for release for second installment of funds of the year only after their accounts including activity wise financial  accounts for the preceding year have been audited by the Chartered Accountant and accepted by the Department of Commerce.

(v)  The EPCs shall plan development and export promotion activities in overseas markets for export promotion of particular products, based on the findings of the desktop studies/findings of the strategy papers on potential of exports and data available with institutes like NCTI etc., to penetrate into new potential markets and to consolidate in the already explored export markets. Eligible activities shall be trade delegations to potential markets, organizing participation in the important trade fairs/exhibitions in the focus markets associated with BSMs, focused publicity for the event etc.

(vi) While formulating the  annual action plan, the EPCs shall identify and plan participation in at least two established trade fairs/exhibitions for their product group. Participation in these fairs shall be done irrespective of the number of exporters participating. One EPC official will be eligible for assistance under the scheme for such participation with the prior approval of the Joint Secretary  of the concerned commodity/territorial division. The EPCs shall carry product samples for display in these   fairs/exhibitions on behalf of their members.

(Vii) Role of the  EPCs  shall  also  be to diversify the export promotion activities to new emerging potential markets wherein the participation by the Indian companies is yet to be established.

(viii) Based on the recommendations of the concerned Commodity Division (s)  of  the   Department  of   Commerce/Ministry  of  Textiles,   Export promotion Councils,  with  the  prior approval of the E & MDA Division, may undertake promotional & export development activities abroad and within  India  with  assistance  from  MDA  to stimulate and diversify the exports of Indian products and commodities as follows:


 FOR ACTIVITIES IN NON-FOCUS AREAS:

S.No Permissible Items of expenditure under MDA Percentage of funding under MDA
(I) Participation in Fairs/Exhibitions abroad by EPCs etc.
1.

Central Stall of Council

(i)   Rent of Council’s area

(ii)  Other organizing expenditure 
 

60% of (i)+(ii) (subject to a ceiling of Rs.15 lakh per event)*
However, if the event is conducted in more than one country during the same tour, additional expenses @ 60% of the rent and organizing expenses not exceeding Rs. 15 lakhs per country shall be allowed.
2. Air fare for official of EPC in economy excursion class(visa charges to be met by the Council) 100%
3. D.A. for  official of EPC etc.:  As per notified MEA rates for Govt. officials of equivalent status. 100%
4. Hotel stay for  official of EPC : On scales applicable to equivalent Govt. officials on duty abroad and subject to furnishing of original bills (with upper ceiling of US$150 per night stay) 100%
5.

Entertainment:

(i)   For EPC sponsored activity led by Chairman.

(ii)  For EPC sponsored activity led by Vice-
Chairman/E.D/ Addl. E.D.
(On production of bills)

US $ 500 US $ 250
(II) EPC sponsored Buyer Seller Meets/Trade Delegations abroad:
1. (i) Venue Cost

(ii)  All other organizing expenditure 
 

60% of (i)+(ii) (subject  to a ceiling of Rs. 15 lakh per event) 
However, if the event is conducted in more than one country during the same tour, additional expenses @ 60% of the rent and organizing expenses not exceeding Rs. 15 lakhs per country shall be allowed.

2. Air fare, DA, Hotel stay, for one official of EPC

As applicable  in the case of participation in fairs/exhibitions

3. Entertainment

As applicable in the case of participation in fairs/exhibitions

(III) Promotional Activities within India by EPCs etc.:
1. Organizing seminars, workshops etc., on quality upgradation, awareness creation etc., with focus on export promotion.
(i)  Venue cost 
(ii) All other organizing expenditure
60% subject to maximum ceiling of Rs.1,00,000/-
per event.
 
2. Organisation of important international fairs/ exhibition in India.(support from MDA only for three years)
(i)  Venue cost 
(ii) All other organizing expenditure
60% of (i) + (ii)
(subject to a ceiling of Rs.15 lakh per event)
 
3. Buyer Seller Meets in India

(i)   Venue Cost

(ii)  All other organizing expenditure 
 

60% of (i) +(ii)
(subject to a ceiling of
Rs.15 lakh per event)
(IV) PUBLICITY:

(i) Publication/publicity with focus on export
promotion and brought out for circulation/use of overseas buyers/organizations
(ii) Advertisement abroad
(iii) Publication for circulation to the members and publicity within the country etc.
60% of net approved
expenditure after accounting for the revenue generated through the sales, advertisement.
etc.)
Not an eligible item.
 

Note:

 (1) Expenses relating to stay, per diem allowance, local travel etc. of Council’s official etc. for activities within India are to be met by the EPCs etc.

(2) MDA grant required for exporters accompanying the EPCs etc. led delegation/Trade fair/Exhibition is required to be shown along with Budget of each Activity in the Annual Action Plan.

(3)  In case where the activities are planned as a part of the “Made in India” Trade Promotion initiative of the Department of Commerce, Government of India, the scale of assistance may be increased upto 90% of the venue cost and organizing expenditure.


5.   Focus Area Programmes:

At present 4 Focus Area programmes viz. Focus (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN+2) are under operation in the Department. In addition to activities in non focus areas, special provision has been made under Reverse Trade Visits for visit of prominent delegates and buyers (one person from each organization) from these Focus Area Regions for participation in buyer cum seller meets, exhibitions etc. in India. The foreign delegates/buyers/journalists would be assisted in meeting their return air travel expenses in economy excursion class upto the entry point in India. This would, however, be subject to financing only the well planned participations wherein the potential of the incoming delegate(s) /buyer(s) /journalist(s) have been screened by the concerned EPC and Territorial Division. The following activities are eligible to be undertaken under Focus Area Programmes:

FOR ACTIVITIES UNDER THE FOCUS-AREA PROGRAMMES

S.No. Permissible Items of expenditure under MDA Percentage of funding under MDA 
1. (i) Participation in International Fairs/exhibitions
organised by EPCs etc.
(ii) Sponsoring BSMs/Trade delegations abroad by EPCs etc.

As applicable in non-focus area with ceiling of Rs.15 lakh.

2.

Reverse Trade visits of prominent foreign buyer/ delegates/journalists to India for participation in BSMs/ exhibitions etc.:
(i)  Return air-fare travel expenses in economy excursion class upto the entry point in India and hotel charges etc.
(ii) Venue charges
(iii) All other organizing expenditure.
All other expenses relating to stay, per diem allowance, local travel etc. of delegates invited from abroad are to be met by the EPC or by sharing between the organizers and delegates.

(i)100% (subject to a ceiling of Rs.1,00,000/- for LAC and Rs.70,000/- for other Focus areas)
(ii)&(iii) As applicable in non-focus area with ceiling of Rs. 15 lakh

3.

Translation facilities in foreign languages and vice versa

60%
4. Product catalogue in CD ROM 60%

6. Participation/organisation of export promotional activities shall be subject to the following conditions:

(i)   The exporters participating in EPC sponsored trade delegations and fairs/exhibitions/buyer cum seller meets etc. abroad shall receive the MDA assistance on reimbursement basis on scales.

(ii)  One official of the EPC (subject to an upper ceiling of two visits in one financial year by individual official) can accompany EPC sponsored trade delegation/organized participation in trade fair/exhibition followed by BSM. This would, however, be subject to the condition that a minimum of five exporters participates in such events except in case of established trade fairs where this condition shall not apply for two such fairs in a financial year with the prior approval of the Joint Secretary of the concerned commodity/territorial division . In rare circumstances, the Joint Secretary of the concerned commodity/territorial division can also relax the condition of a maximum of two visits by an individual official in a financial year. However, in case the number of participants for a particular event goes beyond 20 (Twenty), MDA assistance for one additional official of the EPC for every block of 20 participants shall be permitted.

(iii) Per diem allowance, hotel charges etc. would not be permissible from MDA funds to exporters/elected office bearers of the EPCs etc.  traveling abroad.

(iv) MDA assistance shall be limited to 60% of the total approved cost ( upto 90% in case of ‘Made in India’ shows) and the remaining has to be met by the EPCs from the contributions from participants, members, trade etc.

(v)  For ‘Reverse Trade Visits’ the air-fare by economy excursion class for invited delegates would be subject to the upper ceilings of Rs.100,000/-for LAC region and Rs.70,000/- for CIS, Africa and ASEAN+2 regions.


7.   Approved organisation(s)/trade bodies

(a) Approved organization/trade body means an organization, institution or association engaged in development and promotion of exports and approved by the E&MDA Division in the Department of commerce for this purpose. These Organizations can organize programme/activity for specific purpose of development and promotion of exports of Indian products and commodities with the prior approval of the Government (E&MDA Division in the Department of Commerce) for its members.

  These are of following two types:

(i)   Approved organizations who can sponsor MDA proposals of its member exporters:-

List of the approved organizations is given in Annexure-II. No MDA grant on annual basis would be given to these organizations for their export promotion activities. However, organizations can sponsor requests of their member exporters for participation in fairs/exhibitions/BSMs/Trade delegations led by these organizations for MDA assistance.

(ii)  Other approved trade bodies

List of organizations approved under this heading is at Annexure-III.

These organizations cannot sponsor proposals of their member exporters for MDA assistance. However, with the prior approval of the E&MDA Division of the Department of Commerce, their proposals for organizing non-recurring specific promotional activity for export growth of Indian Products and Commodities abroad can be considered for MDA assistance.

Any other organization, institution or association desirous of getting itself registered as an approved organization, may apply to the Department of Commerce (E&MDA Division) with full particulars in the prescribed proforma (Annexure-IV).

8.   Pattern of assistance to Grantee/ Approved organizations other than EPCs

(i)   FIEO  

MDA assistance to FIEO will be on the lines as applicable to EPCs, with the condition that export promotion activities by them should be for multi-products/sectors or products/services not covered by any other EPCs or to a country where EPC is not in a position to participate. However, the total  MDA grant to FIEO would not be more than Rs. 100 lakhs in a financial year .

FIEO can, in addition,  also sponsor requests of its member exporters for participation in fairs/exhibitions/BSMs/Trade delegations led by FIEO for MDA assistanceprovided these members are not members of any Export Promotion Council..

(ii)  ITPO

Allocation for ITPO from MDA would be kept to the minimum and confined to the special fairs to meet deficit as approved by the Exhibition Advisory Committee in the Department of Commerce.

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

(iii) IIFT, IIP, IDI and ICA

MDA assistance to IIFT, IIP, IDI and ICA for various activities on an annual basis would not be provided. However, specific development activities directed towards export growth of Indian products and Commodities would be considered by the Govt. (E&MDA Division in the Department of Commerce) for part financing.

(iv)   To other approved trade bodies

On receipt of specific development and export promotion project(s) from the approved trade bodies such as ASSOCHAM, CII, FICCI etc. (other than FIEO, IIFT, IIP,IDI, ICA and ITPO) , E&MDA Division may consider financing one or two special specific non-recurring activities with 60% financial assistance of the net expenditure on approved items from MDA subject to maximum MDA assistance of Rs. 15 lakh for each focus area programme + Rs. 15 lakhs for general areas.

As such the total MDA grant to such approved trade bodies would not be more than Rs. 75 lakhs in a financial year to a particular approved trade body.

9.   Adhoc Grant-In-Aid

Residual essential activities or proposals connected with the export effort, which qualify for the grant-in-aid but not covered by this Code will also be considered on merits for assisting from the Marketing Development Assistance scheme.

DOCUMENTATION FOR REIMBURSEMENT OF ASSISTANCE TO

EXPORTERS:

(i)   Intimation application in Annexure V 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 must 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 preferable within 5 working days of the receipt of the intimation, in the prescribed format (Annexure-VI).

(iii) Claim along with the declaration duly completed and the Certificate (as per Annexure VIII) duly signed by a Chartered Accountant shall be submitted by the exporter to the concerned Organization (FIEO), EPC etc.) in the prescribed format (Annexure-VII) 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 would. However, claims submitted within 30 days from the expiry of the 90 days period may be entertained  by or wherein the deficiencies in the claim as intimated by the concerned EPC, FIEO etc., with 10% deduction. The claims 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. .