Last updated: December 17th, 2019 4:56 PM

Marketing Support to MSMEs (Bar Code) Scheme

To enhance the marketing competitiveness of Micro and Small Enterprises (MSE) in domestic as well as international market, Ministry of Micro, Small and Medium Scale Enterprises (MSME) has initiated the Marketing Support to MSMEs (Bar Code) scheme. Under this scheme, the Ministry conducts seminars and reimburses registration fee for barcoding to encourage MSEs to use bar-code. Financial assistance on Bar Code scheme is launched under the National Manufacturing Competitiveness Programme (NMCP).  In this article, we will look at the Marketing Support/Assistance to MSMEs (Bar Code) scheme in detail.

Objective of Scheme

The basic objective of the Marketing Support/Assistance to MSMEs (Bar Code) scheme is to provide financial assistance to enhance the marketing competitiveness of Micro and Small Enterprises (MSEs):

• To provide 75% off one-time registration fee and annual recurring fee for first three years paid by MSEs to Global Standard 1 (GS1) India
• For popularizing the adoption of bar codes on large scale amongst the Micro and Small Enterprises (MSE)
• Motivating and encouraging MSEs for use of bar codes through conducting seminars on Bar Code

Importance of Bar-codes

Bar codes are the series of black lines and white spaces printed on product packages or attached as tags on consumer products. Bar Coding has a significant impact on the success of any enterprise. Bar Coding facilitates the exchange of information between buyers and sellers and furnishes the potential for better visibility and sharing of data across an entire supply chain. Other benefits are given below:

• Automated data capture with 100% accuracy
• Fast and error-free data recording on product and consignment movement
• Real-time stock management of raw material and finished goods
• Easy integration with existing software
• In compliance with the growing requirement of leading national markets
• In line with the requirements of international retailers
• Provides international look and feel to products

Get Registration for Use of Bar Code

Global Standard 1  is an autonomous body under the Ministry of Commerce and Industry, Government of India is a solution provider for registration to use Bar Code. To become a subscriber of GS1 India, every MSE has to fill up the subscription enquiry or prescribed registration form. The MSE has to make the necessary payments for getting GS1 India registration. Detail about registration with GS1 India for use of Bar Coding is available on the official website.

Prescribed Authority

Office of the Development Commissioner (MSME) under Ministry of Micro, Small & Medium Enterprises, Government of India is the implementing agency for Marketing Support/Assistance to MSMEs (Bar Code) scheme.

Eligibility Criteria

Micro & Small Enterprises (MSEs) who have Entrepreneurial Memorandum Part-II acknowledgement number from Directorate of Industries or District Industries Centers and also have registration with GS1 India for use of Bar Codes are eligible Marketing Support/Assistance to MSMEs (Bar Code) scheme.

Financial Assistance Details

• Under Small Scale Industries - Market Development Assistance Scheme, the financial assistance is provided towards 75% reimbursement of the only one-time registration fee paid by MSEs
• Considering the difficulty of MSEs to meet the liability of the payment of annual recurring fee, 75% annual recurring fee for first three years is reimbursed to MSEs under the Marketing Assistance/Support to MSMEs (Bar Code)

Note: Fee structure for one-time registration and annual recurring to be paid by MSEs for using of Bar Codes are revised by GS1 India. The revised fee structure will be available on the website: www.gs1india.org.

• Reimbursement under the scheme is 75% of the fee paid by MSEs. Any other charges like service taxes are not reimbursable under this scheme.
• The 75% reimbursement of the one-time registration fee paid by MSEs to Global Standard 1 is provided to those MSEs who have got registration from GS1 India for use of Bar-Codes on or after  January 2002.
• Besides, 75% reimbursement of annual recurring fee paid by MSEs to Global Standard 1 (GS1) India is provided to only those MSEs who have paid the fee for the period from 1st June 2007 and thereafter.

Documents Required

The documents required for Marketing Support/Assistance to MSMEs (Bar Code) scheme is explained in detail below:

• A copy of Cash Receipt for the total amount (one-time registration fee and annual Recurring fee) paid to GS1 India for using Bar Codes.
• The license received from GS1 India for use of Bar Code.
• Pre-receipted bill in triplicate for the amount to be reimbursed for one-time registration fees
• Entrepreneur's Memorandum from the State Directorate of Industries, DICs duly attested by GM, DIC-State, DI-Director MSME-DI, Chartered Accountant or any other gazette officer
• A certificate from GM, DIC, DI confirming the status of the enterprise as micro or small
• A certificate from GM, DIC, DI confirming the status enterprises functional status.
• An affidavit from Managing Director or Proprietor or Partner of MSE duly sworn before a Notary Public confirming Micro and Small Enterprise and functional status of the unit at the time of Bar Code registration and as on date of application accompanied by Chartered Accountant Certificate of the total investment in Plant and Machinery (original purchase value)
• An undertaking as per prescribed format (concerning non-receipt of similar financial assistance from any other organization or Office of the DC (MSME).

Application Procedure for Marketing Support/Assistance to MSMEs (Bar Code)

The application procedure for the Marketing Support/Assistance to MSMEs (Bar Code) scheme is explained in detail below: The eligible MSEs have to apply to the Micro, Small & Medium Enterprises-Development Institute of their region in the prescribed application form for claiming reimbursement on Bar Code. Application Forms along with formats for the supporting documents can be collected from Director, MSME-DI of their region or download from here. After the verification of the application, the reimbursement on Bar Code registration will be provided.