L.B. Singhal 
Director General    

Sub: Revised Market Development Assistance guidelines with effect from April 1, 2004.

Ministry of Commerce and Industry has revised Market Development Assistance (MDA) guidelines with effect from April 1, 2004. Some of the major changes incorporated in these revised guidelines are as follows:

1. Now only the exporter with an f.o.b. value of exports upto Rs.5 crore in the preceding year will be eligible for MDA assistance.

2. An exporter shall be entitled for MDA assistance only for participation in the Export Promotion Council led trade delegations/buyer seller meets/fairs/exhibitions abroad.

3. MDA assistance shall be available to only an exporter who is having complete 12 months membership with concerned Export Promotion Council and has been filing returns with concerned Export Promotion Council regularly. However, in the case of EPCES, since the Council has been started last year only and many of the members will not be having a membership of 12 months, an exemption has been sought from Ministry of Commerce for this year for the requirement of having membership for 12 months. However, the exporter will have to be member of EPCES.

4. For participation in trade fairs/exhibitions/trade delegations/buyer-seller meets in general areas (excluding Focus-Latin American countries, Focus-Africa, Focus-CIS and Focus-ASEAN) no travel grant is admissible for participation in general area. Only stall charges etc. are admissible.

The details of revised guidelines are given as follows:

“Assistance to individual exporters for export promotion activities abroad – Participation in EPC etc. led Trade Delegations/BSMs/Trade Fairs/Exhibitions only:

(i) Exporting companies with an F.O.B. value of exports of upto Rs. 5 Crore in the preceding year will be eligible for MDA assistance for participation in EPC etc. led trade delegations/BSMs/fairs/exhibitions abroad to explore new markets for export of their specific product(s) and commodities from India in the initial phase. This will be subject to the condition that the exporter is having complete 12 months membership with concerned EPC etc., and filing of returns with concerned EPC/organization regularly.

(ii) Assistance would be permissible on travel expenses by air, in economy excursion class fare and/or charges of the built up furnished stall, @90% for exporters having valid SSI registration certification and @75% for others including merchant exporters. This would, however, be subject to an upper ceiling mentioned below in the table per tour.

*(90% for exporters having valid SSI registration certification and 75% for others including merchant exporters)

Criteria for availing MDA through Council

(1) For EPC etc. led Trade delegations/BSMs only air-fare by Economy Excursion class shall be permissible. For participation in Trade Fairs/Exhibitions stall charges in addition to travel expenditure shall also be permissible subject to ceilings.

(2) Maximum number of permissible participations shall be five in a financial year (No travel grant is permissible for one visit to General Areas).

(3) Assistance shall be permissible to one regular employee/director/partner/proprietor of the company. Assistance would not be available to exporter of foreign nationality or holding foreign passport.

(4) Intimation application must be received in the office with a minimum of 14 days clear advance notice excluding the date of receipt of application in the office of the concerned organization and the date of departure from the country.

(5) The Company shall not be under investigation charged/prosecuted/debarred/black listed under EXIM Policy of India or any other law relating to export and import business.

(6) A maximum of three participations in a particular trade fair/exhibition would be eligible for MDA assistance and exporting companies after availing assistance three times including past cases for a particular fair/ exhibition, have to participate in that fair, if any, on self-financing basis.”