Last updated: December 17th, 2019 5:04 PM

Transport and Marketing Assistance (TMA)

The scheme of Transport and Marketing Assistance (TMA) for Specified Agricultural Products was introduced as a means of providing assistance for the international component of freight and marketing of agricultural produce. The initiative is set to mitigate the drawback of higher transportation costs while exporting certain agricultural products, which results from transhipment. In addition to this, it would promote brand recognition for Indian agricultural products in the specified overseas markets. Notably, the scheme also finds its place in the Foreign Trade Policy of 2015-20.

Validity and Coverage

The scheme could be availed by exporters from the 1st March 2019 and is valid until the 31st of March 2020. It is extended to all exporters of eligible agricultural products who are duly registered with the concerned Export Promotion Council as per the Foreign Trade Policy. The assistance would be rendered as per the notified rates for the export of specific agricultural produce (as mentioned in HSN chapter 1-24) to permissible countries (specified on a frequent basis) and is only applicable if the payments for the same are received in Free Foreign Exchange through normal banking channels. Products not covered under this scheme include live animals, milk, cream, animal origin products, curd, buttermilk, rice, wheat, tobacco, garlic, etc. Note – the scheme is only applicable for exports made through EDI (Electronic Data Interchange) ports. It also covers freight and marketing assistance for export by air and sea.

Eligible Countries

The following regions and export destinations/countries are considered eligible for assistance under the scheme:

West Africa

1. Benin
2. Mali
3. Burkina Faso
4. Mauritania
5. Ivory Coast, Niger
6. Cape Verde

European Union (EU)

1. Albania
2. Andorra
3. Austria
4. Belgium
5. Bosnia and Herzegovina
6. Bulgaria
7. Croatia
8. Cyprus
9. Czech Republic
10. Denmark
11. Estonia
12. Finland
13. France
14. Germany
15. Greece
16. Hungary
17. Iceland
18. Ireland
19. Italy
20. Kosovo
21. Latvia
22. Liechtenstein
23. Lithuania
24. Luxemburg
25. Macedonia
26. Malta
27. Monaco
28. Montenegro
29. Netherlands
30. Norway
31. Poland
32. Portugal
33. Romania
34. San Marino
35. Serbia
36. Slovakia
37. Slovenia
38. Spain
39. Sweden
40. Switzerland
41. Turkey
42. United Kingdom
43. Vatican City

Gulf Countries

1. Bahrain
2. Kuwait
3. Oman
4. Qatar
5. Saudi Arabia
6. United Arab Emirates (UAE)

North America

1. Antigua and Barbuda
2. Bahamas
3. Barbados
4. Belize
5. Canada
6. Costa Rica
7. Dominica
8. Dominican Republic
9. El Salvador
10. Grenada
11. Guatemala
12. Haiti
13. Honduras
14. Jamaica
15. Mexico
16. Nicaragua
17. Panama
18. Saint Kitts and Nevis
19. Saint Lucia
20. Saint Vincent and the Grenadines
21. Trinidad and Tobago
22. United States of America

ASEAN

1. Brunei Darussalam
2. Cambodia
3. Indonesia
4. Laos
5. Malaysia
6. Myanmar
7. Philippines
8. Singapore
9. Thailand
10. Vietnam

Russia and the Commonwealth of Independent States (CIS)

1. Armenia
2. Azerbaijan
3. Belarus
4. Estonia
5. Georgia
6. Kazakhstan
7. Kyrgyzstan
8. Latvia
9. Moldova
10. Russia
11. Tajikistan
12. Turkmenistan
13. Ukraine
14. Uzbekistan

Far East

1. Japan
2. North Korea
3. South Korea

Oceana

1. Australia
2. Fiji
3. Kiribati
4. Marshall Islands
5. Micronesia
6. Nauru
7. New Zealand
8. Palau
9. Papua New Guinea
10. Samoa
11. Solomon Islands
12. Tonga
13. Tuvalu
14. Vanuatu

China

1. PRC China
2. Hong Kong
3. Taiwan

South America

1. Argentina
2. Bolivia
3. Brazil
4. Chile
5. Colombia
6. Ecuador
7. Guyana
8. Peru
9. Paraguay
10. Suriname
11. Uruguay
12. Venezuela

Ineligible Exports

The following exports categories/sectors do not qualify for the scheme:

• Products exported from SEZs, EOUs, EHTPs, STPs, BTPs, and FTWZs.
• The products of SEZs, EOUs, EHTPs, STPs, BTPs and FTWZs exported via DTA units.
• Export of imported goods (covered under paragraph 2.46 of the FTP).
• Exports through transhipment.
• Commodities restricted or forbidden for exports under Schedule 2 of Export Policy in ITC (HS), except on specifications.
• Export products subject to Minimum Export Price or export duty, except on specifications.
• Export of goods through courier or foreign post offices by means of e-Commerce.

Mode of Assistance

Funds under the scheme would be rendered in cash through direct bank transfer as part of reimbursement of freight paid. Freight on Board (FOB) supplies where no freight charges are borne by Indian exporters are not covered under this scheme. The scope of assistance varies in accordance with the different regions as notified from time to time. Assistance wouldn’t be provided for:

• Less than Container Load (LCL).
• Containers with both eligible and ineligible category of cargo.
• Cargos shipped in bulk/break bulk mode.

Scrutinization of Claims

The procedure of scrutiny of claims, the audit of remittances, recovery of ineligible or excess funds, and the interest on such recoveries are determined by the Directorate General of Foreign Trade (DGFT). Any defaults resulting out of such scrutiny would make the defaulter liable for penal action under the provisions of the Foreign Trade (Development and Regulation) Act 1992 and other related provisions.