TMA scheme revised by the Government

“Transport and Marketing Assistance”- “TMA”

Key Highlights:

• Centre Revises “Transport and Marketing Assistance” (TMA) scheme for Specified Agriculture Products’
• Dairy products, which were not covered under the earlier scheme, will be eligible for assistance
• Rates of assistance have been increased, by 50% for exports by sea and by 100% for exports by air

In February 2019, the Department of Commerce had introduced ‘Transport and Marketing Assistance (TMA) for Specified Agriculture Products Scheme’ to provide assistance for the international component of freight, to mitigate disadvantage of higher freight costs faced by the Indian exporters of agriculture products. 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. Details are mentioned in the press release:
• The Directorate General of Foreign Trade (DGFT) will shortly notify the procedure for availing assistance under the revised scheme.
• Enhanced assistance under the revised scheme is expected to help Indian exporters of agricultural products to meet rising freight and logistics costs.

Categories of export ineligible for TMA

The following exports categories / sectors shall be ineligible under this scheme:

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

To apply for TMA scheme, an IEC is required. Other pre-requisites as mentioned in the Chapter 7 of Foreign Trade Policy and Hand book of Procedures may be referred. All exporters, duly registered with relevant Export Promotion Council as per Foreign Trade Policy, of eligible agriculture products shall be covered under this scheme.

TMA would be reimbursed through the Regional Authorities of DGFT as per the procedure laid down in Chapter 7(A). The assistance, at notified rates, will be available for export of eligible agriculture products to the permissible countries, as specified from time to time.

Source: Release ID: 1753895 & 189200

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