No.CLE /EXH/ MDA /2010-11                                                                                  12th  Oct, 2010

To All Members of the Council

Sub :   Reimbursement to Individual Exporter / Companies participating in EPC/FIEO  ITPO led / sponsored export promotion events abroad under Market Development Assistance ( MDA Scheme).
 
 Dear Members,
 
As members are  aware, Department of Commerce in the Ministry of Commerce and Industry, Government of India , New Delhi  had issued  revized guidelines vide circular No.,2/1/2004- E & MDA ( Part) and being implemented  w.e.f 1-4-2006 on the above mentioned subject. In the existing   MDA guidelines,   no minimum eligibility limit  is provided in respect of F.O.B. value of exports in the proceeding year for the individual exporters / firms  to avail MDA Assistance.

 In this regard, Department of Commerce has now issued new guidelines vide letter  
 No.F.No.8/2/2010-E & MDA dated 15th June 2010 and 9th Sep 2010 in respect of disbursement of assistance  Exporters/ firms.  The following are the new Guidelines.

1. Since the MDA resources are limited and based on  audit observation, it has been decided by competent authority that in future it would not be appropriate to provide assistance to exporters/ firm who are having “ Nll” exports in the previous year. Hence the exporter / firm having “ Nil “ exports in the previous year will not be eligible for MDA Assistance under  MDA Guidelines.      
   
   
2. Further, the Department of Commerce has advised EPC’s to fix minimum threshold  F.O.B   value of exports in previous year  in consultation with Committee  of Administration, as eligibility criteria for receiving MDA Grant.  

 Accordingly the Committee of Administration of the Council in its meeting held on 28th Sep 2010. has decided to  fix  Rs.3.00 lakhs as threshold  F.O.B value of exports in the previous year, for availing assistance  by exporters of leather and leather products under MDA Scheme. The decision of Committee of Administration was communicated to Department of Commerce vide mail dated  5th oct 2010.


 Therefore, as per new MDA Guidelines, the MDA assistance will not be eligible to

    The Exporters who have  “ NIL” exports in the previous year.
    The Exporter who have less than Rs.3 00 Lakhs  F.O.B. value of exports in previous year.

 Henceforth, the Council will process the MDA claims as per new MDA Guidelines. Member Exporter are  requested  to kindly note the aforesaid new criteria.
  
 With regards,  
 
 Ali Ahmed Khan
Executive Director