Transport and Marketing Assistance (TMA) scheme for Specified Agriculture Products

Ministry of Commerce & Industry

Context:

Centre has revised “Transport and Marketing Assistance” (TMA) scheme for Specified Agriculture Products’

Key Highlights of Transport and Marketing Assistance (TMA) scheme:

• Transport and Marketing Assistance (TMA) for Specified Agriculture Products Scheme’ was launched to provide assistance for the international component of freight, to mitigate disadvantage of higher freight costs faced by the Indian exporters of agriculture products.
• The scheme was initially applicable for exports effected during the period from 01.03.2019 to 31.03.2020 and was later extended for exports effected up to 31.03.2021.
• Now the Department has notified ‘Revised Transport and Marketing Assistance (TMA) for Specified Agriculture Products Scheme’ for exports effected on or after 01.04.2021 up to 31.03.2022.
• The existing scheme will remain in operation for exports effected up to 31.03.2021.

Following major changes have been made in the revised scheme:

• Dairy products, which were not covered under the earlier scheme, will be eligible for assistance under the revised scheme.
• Rates of assistance have been increased, by 50% for exports by sea and by 100% for exports by air. 

About:

• Transport and Marketing Assistance (TMA) for Specified Agriculture Products Scheme launched In February 2019
• The scheme comes under Department of Commerce
• It aims to provide assistance for the international component of freight and marketing of agricultural produce.
• It will mitigate disadvantage of higher cost of transportation of export of specified agriculture products due to trans-shipment
• It also aims to promote brand recognition for Indian agricultural products in the specified overseas markets.
• The scheme will be included in the Foreign Trade Policy (2015-20).

Objective:

• Aims to provide assistance for the international component of freight and marketing of agricultural produce which is likely to mitigate disadvantage of higher cost of transportation of export of specified agriculture products due to trans-shipment and to promote brand recognition for Indian agricultural products in the specified overseas markets.
• Scheme would be suitably included in the Foreign Trade Policy (2015-20).

Coverage:

• All exporters, duly registered with the relevant Export Promotion Council as per Foreign Trade Policy, of eligible agriculture products shall be covered under this scheme.
• The assistance, at notified rates, will be available for export of eligible agriculture products to the permissible countries, as specified from time to time.

Eligibility of Products:

• The assistance will be provided on export of all agriculture products covered in HSN chapter 1 to 24 including marine and plantation products except those mentioned in Annexure (1).

Pattern of Assistance

• Assistance under TMA would be provided in cash through direct bank transfer as part reimbursement of freight paid. 
• FOB supplies where no freight is paid by Indian exporters are not covered under this scheme.
• The level of assistance would be different for different regions as notified from time to time for export of eligible products. List of export destinations/countries in each region eligible for assistance under TMA are mentioned in Annexure (2).
• The assistance shall be admissible only if payments for the exports are received in Free Foreign Exchange through normal banking channels.
• The scheme shall be admissible for the exports made through EDI ports only.
• The scheme covers freight and marketing assistance for export by air as well as by sea (both normal and reefer cargo).         
• For export of products by sea, TMA will be based on the freight paid for a full Twenty-feet Equivalent Unit (TEU) container. 
• The assistance will not be available for 
  • Less than Container Load (LCL) 
  • A container having both eligible and ineligible categories of cargo. 
• Assistance for products exported by air would be based on per ton freight charges on net weight of the export cargo, calculated on the full ton basis, ignoring any fraction thereof.

Categories of export ineligible for TMA

• Products exported from SEZs/ EOUs/ EHTPs/ STPs/ BTPs/ FTWZs
• SEZ/EOU/EHTPs/STPs/BTPs/FTWZs products exported through DTA units
• Export of imported goods covered under paragraph 2.46 of the FTP;
• Exports through trans-shipment, i.e. exports that are originating in third country but trans- shipped through India;
• Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS), unless specifically notified.
• Export products which are subject to Minimum Export Price or export duty, unless specifically notified.
• Export of goods through courier or foreign post offices using e-Commerce

Mechanism for Scrutiny of the claims, audit, recovery and penal action

• DGFT will lay down procedures for scrutiny of the claims, audit of the payments made, recovery of the ineligible/excess paid assistance, interest on such recoveries. 
• The defaulters shall be liable for penal action under the provisions of Foreign Trade (Development & Regulation) Act, 1992, Rules and orders made thereunder.

Agricultural and Processed Food Products Export Development Authority 

• The Agricultural and Processed Food Products Export Development Authority (APEDA) is a non-trading, statutory body established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the Parliament in December, 1985.
• APEDA has marked its presence in almost all agro potential states of India and has been providing services to agri-export community through its head office in New Delhi, five Regional offices and 13 Virtual offices.
• In 2017, APEDA launched a mobile app- “Farmer Connect” to allow farmers to apply online to facilitate their farm registration, tracking the status of application & approvals by State Government and Lab sampling by authorized Laboratories.

Directorate General of Foreign Trade

• DGFT is an attached office of the Ministry of Commerce and Industry and is headed by Director General of Foreign Trade.
• Right from its inception till 1991, when liberalization in the economic policies of the Government took place, this organization has been essentially involved in the regulation and promotion of foreign trade through regulation.
• Keeping in line with liberalization and globalization and the overall objective of increasing of exports, DGFT has since been assigned the role of “facilitator”.
• The shift was from prohibition and control of imports/exports to promotion and facilitation of exports/imports, keeping in view the interests of the country.

Electronic Data Interchange( EDI )Ports

• EDI comprises of many types of “messages” which when transmitted between two parties is designed to substitute other forms of data transfer.
• EDI messaging is also used to send the data to Customs (Manifest, Bill of Entry), Port (Container Stowage planning, Cargo Dues, Load/Discharge list, Container moves), Principals (Load/Discharge list, Container moves, Bookings).

Source: PIB

Answer : d

• Department of Commerce of the Ministry of Commerce & Industry has recently notified a scheme for Transport and Marketing Assistance (TMA) for Specified Agriculture Products.
• It aims to provide assistance for the international component of freight and marketing of agricultural produce which is likely to mitigate disadvantage of higher cost of transportation of export of specified agriculture products due to trans-shipment and to promote brand recognition for Indian agricultural products in the specified overseas markets.

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