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An Overview of TMA Scheme
The Government of India has launched a programme for agricultural products called Transport and Marketing Assistance (TMA). It seeks to provide less expensive commodities transportation, which is essential to modern international trade. This plan has reduced the cost of transportation needed to export some particular agricultural goods. It essentially means that the Government will refund the Freight Cost up to a certain level in order to increase the competitiveness of our agricultural products on the international market. Additionally, it offers advantages for agricultural product marketing, which aids in brand promotion and aids in gaining awareness for Indian agricultural products in international markets. In the Foreign Trade Policy (2015–20), the TMA Scheme is mentioned.
Eligibility for the TMA Scheme - Who is Eligible?
According to the Foreign Trade Policy, the programme covers all exporters of qualified agricultural products who are registered with the relevant Export Promotion Council. The transport and marketing support programme seeks to recoup the exporter's portion of air and sea freight as well as marketing expenses incurred in the promotion of the good. The duration of this programme was from 01.03.2019 to 31.03.2020. The TMA programme has been extended through March 31, 2021, according to the most recent update.
Eligible Products under the TMA scheme
All export products listed in chapters 1 through 24 of the ITC HS, including marine and plantation products, are eligible for the programme. However, the Scheme for support would not provide support for some particular products falling under Chapters 1 to 24. In Annexure (1), a list of such ineligible products is provided.
List of ineligible products under TMA scheme as given below:
Coverage under the TMA scheme
- Only the TMA programme will cover the export of agricultural products to the permitted nations listed in Annexure (2).
- The programme covers both air and sea freight transportation as well as export marketing for both non-refrigerated and chilled products.
- A list of all the export destinations/countries in each region eligible for assistance under the TMA Scheme is provided in Annexure-2.
- The rate of aid is provided by country in Annexure-3.
List of Regions and Export destinations/countries in each region eligible for assistance under TMA are as under:
Transport and Marketing Assistance (TMA) Scheme Annexure (3)
Differential rate of assistance under TMA (Amount in Indian Rupees)
Important terms and circumstances covered by the TMA Scheme and their applicability
Applicability under TMA Scheme
- It is crucial to realise that the scheme would only be effective from March 1 to March 31, 2021. This indicates that all exports made during the time frame will be qualified for the TMA programme.
- The agriculture markets for particular items would be significantly impacted by this government assistance.
Important Terms & Conditions under the TMA Scheme
- The Twenty-Feet Equivalent Unit (TEU) container freight is used by the TMA scheme to calculate the shipping costs.
- LCL containers, or less than container loads, and vessels carrying both eligible and ineligible cargo are not eligible for the TMA advantage. Where the cargo is shipped in bulk or break-bulk mode, TMA will not be applicable.
- A forty-foot container will be regarded as two TEUs (Twenty-Foot Equivalent Units), which is crucial to note.
- The aid for export goods that are shipped by air would be determined on a per kilogramme basis.
- The only prerequisite for receiving help is that export payments must only be made in foreign currency through conventional banking channels.
- Under the programme, only exports made through EDI ports are allowed.
- Types of Assistance under the TMA Programme – As part of reimbursing the exporter for the goods they have already paid, assistance under the scheme will be given in cash through a direct bank transfer.
- The plan implies that such shipments would not be covered under this plan if they are FOB supplies, where the Indian exporter does not pay freight.
Ineligible categories under the TMA Scheme
The below are the ineligible categories under TMA scheme:-
- 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 via trans-shipment, that is, exports that originate in a third nation but are trans-shipped through India;
- Unless otherwise specified, exported items are restricted or prohibited for export under Schedule-2 of the Export Policy in ITC (HS).
- Export of goods through courier or foreign post offices using e-Commerce
Documents required for benefit claims under the TMA Scheme
The following is a complete updated list (2020) of all the documentation required for an online application under the Transport and Marketing Assistance (TMA) Scheme.
- Import Export Code (IEC Code)
- Registration-Cum-Membership-Certificate (RCMC)
- Shipping Bill Copy
- E-BRC
- Commercial Invoice
- Bill of Lading, in case of Shipment by Sea
- Airway Bill, in case of Shipment by Air
- TMA Application Form- ANF- 7 (Part- A & Part- B)
- Chartered Accountant (C.A.)/ Cost and Works Accountant (ICWA)/ Company Secretary (C.S.) Certificate as per Annexure A to ANF-7(A)A
- Pre-receipt.
Procedure to apply under TMA scheme – How to apply under TMA scheme for Exporters?
- The application must be submitted by a registered exporter with a valid RCMC.
- When making the first application, the applicant must select the option "RA's" led by Additional DGFT, and no adjustments are permitted for subsequent claims.
- Applicants must submit a quarterly application within one year after the end of a quarter in a single batch. This scheme does not have any late cut provisions.
- The documents necessary for physical submission are shipping invoices, E-BRCs, bills of lading, and CA certificates.
- The applicant must provide a physical PDF copy of ANF 7(A) A along with the specified documentation to RA within 30 days.
- The failure to submit a physical copy of the application with necessary papers within 30 days of filing the online application, as well as the incomplete or deficient application, may result in non-acceptance, and the application will be denied.
- Notice to the public 02/2015-20 The DGFT has granted a one-time relaxation for the submission of physical papers on April 13, 2020. According to the public notice, applications filed electronically on or after 01.02.2020 and up to 30.09.2020, as well as physical copies of ANF- 7(A) A along with necessary documents, can be submitted physically to DGFT RA up to 30.10.2020.
How can we help you collect TMA Scheme benefits?
We are a renowned Import Export (DGFT Consultants) firm with clients all throughout India. We offer all DGFT-related services, such as MEIS, EPCG, SEIS, Advance Authorisation, DFIA, RoSCTL scheme, TMA scheme, RoDTEP scheme, and so on.
While filling out the TMA application, the table below will walk you through the phases of how we may assist you in claiming TMA benefits.
- Step 1: We collect the papers from you, such as copies of shipping bills, E-BRCs, commercial invoices, bills of lading, or airway bills.
- Step 2: Our team will begin working on the documents and creating the online application.
- Step 3: Following the completion of the online application, an electronic copy will be mailed to you for confirmation.
- Step 4: Once the online application has been authorised by you, we will send it. And will provide you paper documents for signature.
- Step 5: Once we obtain the hard copy of the documents from you, we will submit them to DGFT and maintain frequent contact with them.
- Step 6: Once the application has been approved by DGFT, the Pre-receipt copy is issued. We will share the print with you and follow up with DGFT on a regular basis till the benefit amount is credited to your account.
Frequently Asked Questions
The Transport and Marketing Assistance (TMA) plan attempts to repay the exporter for a portion of the freight paid (sea and air) as well as the marketing costs associated with the product's promotion. The scheme is accessible for the designated exported product under Chapters 1 to 24 from 01.03.2019 to 31.03.2021.
The Merchandise Exports from India Scheme (MEIS) is an extra export incentive programme in which a Credit Scrip or MEIS Licence is granted as a reward for approved exports.
Check Eligibility -> Prepare Document -> Apply Online Application to DGFT <----> Submit Online and Manual Application to DGFT -> Follow-up with DGFT and get application approved from DGFT -> Once application is approved from DGFT, DGFT will credit the refund amount to exporter Bank Account.
The applicant can check the TMA Scheme benefit by referring to Public Notice. 82/2015-20/ dated 29.03.2019. Alternatively, you can just submit the documents with us, and our team will provide you with an excel summary of eligible benefit shipping bills.
The Applicant must submit an online application at http://dgft.gov.in. TMA applications will be submitted on a quarterly basis.
On a quarterly basis, the applicant must create an online application at the DGFT Site. CIF Shipments is the basis for the claim. This scheme does not have any late cut provisions. With the assistance of our in-house TMA scheme experts, we can streamline the application procedure for you.
Applicant has to pay online Government fees of Rupees 1,000/- for each application.
Following the submission of a Manual Application, the DGFT RA may review the application, and the DGFT may approve the application within 15 to 30 days. If the DGFT approves the application and the funds are available with DGFT, money will be credited immediately to the exporter account; otherwise, RA will issue the Pre-receipt letter. Once payment has been received by DGFT, the refund will be credited to the exporter's account.
The applicant must file a claim within one year of the end of the quarter. For example, if the export occurred during the quarter of January to March 2020, the claim must be filed by 31.03.2021.