Revised Marketing Development Assistance (MDA) Guidelines - 
Effective from May 1, 2002

 
No.05/008/MDA/2001-02                                                                                         April 8, 2002.

All Members of the Council,

Sub: New amendments in the Marketing Development Assistance (MDA) for export promotion efforts

Dear Sirs,

The Council has received a letter No.2/1/2002-E&MDA dated 31st March, 2002 & No.5/12/98-E&MDA-Vol.III dated 14th March, 2002 from Under Secretary, Government of India, Ministry of Commerce and Industry, Department of Commerce, New Delhi regarding announcement of new amendments in the MDA scheme for the exporters. The above amendments are enclosed herewith for your kind information. The amendments would be applicable for Sale cum Study Tours, Trade Delegations, participation in International Trade Fairs, Exhibitions, Council’s sponsored Buyer-Seller-Meets (BSM)etc., with the departure of the company’s representative for participation in these events on or after 1st May, 2002 from India.

Thanking you,

Yours faithfully,


(K.VIJAYAKUMAR)
Assistant Director.

Encl: as above

Sl.No.

Sale-cum-Study Tour/Trade delegations
 
All exporters would be eligible to avail MDA assistance only on economy excursion class air fare, irrespective of annual exports in the preceding financial year on percentage basis (@90% to SSI exporters and @75% to other than SSI exporters.

 
Sales tour to Latin American Countries
 
One additional activity (either Sales tour or Trade Fair) is permissible for Latin American countries apart from two events in a financial year.

Sale-cum-Study Tour/Trade delegations
 
Exporting companies having an annual export turnover of more than Rs.4 crore in the preceding financial year will not be eligible to avail MDA assistance for Sale-cum-Study Tour(s)/Trade delegations.

Exporters with annual export turnover of Rs.4 crore or less in the preceding financial year will be eligible to get MDA assistance only on economy excursion class air fare (@90% to SSI exporters and @ 75% to other than SSI exporters subject to a maximum ceiling of Rs.60,000/- per event. For LAC region the ceiling is Rs.90,000/-.

Sales tour to Latin American Countries
 
One additional activity (either Sales tour or Trade Fair) is permissible for Latin American countries apart from two events in a financial year subject to above conditions.

International Trade Fairs/ Exhibitions/ Buyer- Seller- Meets abroad.

All exporters would be eligible to avail MDA assistance for economy excursion class air fare and charges of built-up furnished stalls for display of products on percentage basis (@90% to SSI exporters and @75% to other than SSI exporters)

International Trade Fairs/ Exhibitions/ Buyer-Seller-Meets abroad.

Exporting companies having an annual export turnover of more than Rs.4 crore in the preceding financial year will be eligible to avail MDA assistance only on charges of built up furnished stalls for display of products on percentage basis (@90% to SSI exporters and @75% to other than SSI exporters subject to a maximum ceiling of Rs.1,10,000/- per participation. For LAC region, the ceiling is Rs.1,40,000/-

Exporters with annual export turnover of Rs.4 crore or less in the preceding financial year will be eligible to get MDA assistance on economy excursion class air fare and charges of built-up furnished stalls (@90% to SSI exporters and @ 75% to other than SSI exporters subject to a maximum ceiling of Rs.1,10,000/- per participation. For LAC region Rs.1,40,000/-). 

Trade Fairs/Exhibitions in Latin American countries
 
One additional activity (either Sales tour or Trade Fair) is permissible for Latin American countries apart from two events in a financial year.

Trade Fairs/Exhibitions in Latin American countries
 
One additional activity (either Sales tour or Trade Fair) is permissible for Latin American countries apart from two events in a financial year subject to above conditions.

Special MDA package for Sale cum Study Tours to USA and Europe countries.
 
Under the Special Marketing Development Assistance financial assistance was extended to the exporters for undertaking sale-cum-study tours to USA and select countries in the European Union (Germany, UK, France, Italy, Netherlands, Spain) over and above the limit of two permissible events allowed under normal MDA scheme. This special MDA package was implemented for a period of six months from October 2001 to March 2002. 

Special MDA package for Sale cum Study Tours to USA and Europe countries.
 
The Ministry of Commerce and industry has now announced that the Special MDA package will not be extended for the year 2002-2003.