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SEAFREIGHT ASSISTANCE SCHEME

FOR INCREASING EXPORT OF VALUE ADDED


MARINE PRODUCTS AND FOR MAKING INDIA
A SEAFOOD PROCESSING HUB

THE MARINE PRODUCTS EXPORT DEVELOPMENT AUTHORITY


(Ministry of Commerce & Industry, Government of India)

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1. INTRODUCTION

India with a coastline of 8100 Km having a processing capacity of over 14,000 MT per
day and with more than 200 EU approved processing plants has not been able to achieve
consistent growth of seafood exports, even though seafood exports from India had
crossed the US $ 1 billion mark more than a decade ago. The main bottleneck faced by
the Indian seafood entrepreneurs is shortage of raw material for processing due to
stagnation in sea catch and failure of coastal aquaculture. Because of this presently only
20% of the installed capacity is utilized and a major portion of the processing facility
remains idle and hence it has become imperative to depend on sourcing of raw material
from other fish producing countries. Another major issue affecting the growth of seafood
exports from India is low percentage of value added products in the export basket. While
India’s competing countries like Vietnam, Thailand, Indonesia, China etc have made
considerable progress in the export of value added products, presently India’s share of
value added products in the seafood export kitty is estimated at less than 10% only.

The main constraint faced by the Indian exporters in importing raw material and
exporting value added products is the high sea freight charges prevailing now. India’s
competitors like China, Thailand have already gone much ahead in the export of value
added products by encouraging import of raw materials from advanced countries like,
European Union, Japan, etc. and because of the large volume of imports taking place the
shipping lines could offer them reduced freight charges. To make import of raw
materials attractive for Indian processors, MPEDA is implementing a scheme to extend
financial assistance to entrepreneurs who intend to import raw material for processing
and re-export of value added products. The scheme also provides assistance for export of
value added products for which raw material has been sourced indigenously.

2. OBJECTIVES

¾ To make India a Seafood processing hub and generate substantial employment


opportunities.
¾ To encourage better utilization of installed capacity in the processing units and
thereby improve their financial health.
¾ To give further thrust for increasing export of value added products.

3. COMPONENTS ELIGIBLE FOR ASSISTANCE


(a) Sea freight assistance for import of raw material for processing and export of
specified value added products.

Assistance at the rate of 100% of the freight differential per container for the first three
years and 50% for the fourth year will be given to the units for import of raw material for
processing and export of specified value added products provided there is at least 25%
value addition on such material. For this purpose, freight rates as applicable in India and
China should only be taken into account and assistance should not exceed 50% of the

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total freight from India. The maximum eligible assistance would be Rs. 100 lakh per year
per exporter.

(b) Sea Freight Assistance for export of specified value added products to
EU/USA/ Japan and other countries.

This aims to offset the adverse weight volume ratio of the value added products in
containers and to offset the freight difference. Assistance will be extended under this
component as detailed below:

Year Market Rate of Assistance


Rs./Kg
1st and 2nd implementing years EU 4
1st and 2nd implementing years USA 5
1st and 2nd implementing years Japan 3
3rd and 4th implementing years EU 2
3rd and 4th implementing years USA 3
3rd and 4th implementing years Japan 1.50

Note: Freight assistance to other countries like South East Asia, Middle East, China
and Korea will be applicable at the same rate as that of Japan. For countries like
Canada, Mexico etc. the rate will be that of USA. For countries like Australia,
Africa etc., the rate will be that of EU.

The maximum assistance per exporter per year would be as follows.

Category Export Value Max. Eligible


Assistance
I Below Rs.1 Crore Rs.5 lakh
II Above Rs.1 Cr. - Rs. 5 Cr Rs.10 lakh
III Above Rs.5 Cr – Rs.15 Cr Rs.20 lakh
IV Above Rs.15 Cr – Rs.30 Cr Rs.30 lakh
V Above Rs.30 Cr – Rs.50 Cr Rs.40 lakh
VI Above Rs.50 Crore Rs.50 lakh

As the Scheme is to provide assistance to increase the export of value added


products, after the first assistance the subsequent assistance would be dependent
on a 10% increase of export in value compared to the year the assistance was
availed of.

4. TARGETED BENEFICIARY

All MPEDA registered manufacturer exporters of marine products who process and
export value added products specified in the Appendix.

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5. PERIOD OF VALIDTY OF SCHEME

The scheme is implemented from 11th September 2009 during 11th Five Year Plan.
Extension of scheme beyond 11th Five Year Plan will depend on the sanction of Govt. of
India. .

6. THE TERMS AND CONDITIONS OF THE SCHEME

(a) The imported fish and fishery products should be free from any pathogenic
bacteria / microbes etc. as per the standards prescribed by the competent agencies.
All necessary clearances like Sanitary Import Permit should be taken prior to
import.

(b) The imported fish and fishery products should be solely for reprocessing and
value addition and no portion of the same should be marketed in the domestic
market.

(c) Subsidy will be granted back ended after proper verification of containers
imported/exported.

(d) Domestic marketing of the imported fish and fishery products will not be allowed,
as it will affect the domestic fish marketing industry

(e) There will not be assistance to the processors / exporters for under-taking job
work.

(f) The beneficiaries will not get assistance for the same purpose, from any other
Departments of Government of India/State Government or any other Government
agencies.

7. METHOD OF IMPLEMENTATION

The scheme will be implemented through MPEDA’s Regional and Sub Regional Offices
and the procedure advised for the implementation of the scheme is given below:

1. Prospective beneficiaries should submit an application in advance intimating the


intention to avail of the Scheme in the prescribed format to the concerned
RO/SRO of MPEDA.
2. (a) RO/SRO shall issue acknowledgement for the application.
(b) Verification of the facility/capacity to produce the value added items will be
done by RO/SRO of MPEDA if required and specific approvals/rejections (in

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case of the facilities are not according to the requirement for production of the
products intimated to MPEDA for export) shall be intimated to the beneficiary by
the RO/SRO after this.

3. The application for Sea Freight Assistance Scheme may be made in Form
prescribed (Form I & IIA/IIB).
4. Application should be accompanied by the following documents duly signed with
office seal by the respective authorities.

Assistance for import of raw material for re-export of value added products.

(a) Copy of the certified Commercial Invoice of import


(b) Bill of Lading of Shipping Lines
(c) Customs certified copy of the Bill of Entry
(d) Freight Invoice issued by the Shipping Lines of import.
(e) Freight rate from port of import to Shanghai (China) certified by the same
Shipping Line.
(f) Customs certified copy of the Commercial invoice of export
(g) Customs certified export promotion copy of the shipping bill
(h) Certified copy of the Bill of Lading of export
(i) Freight invoice issued by the Shipping Lines for export
(j) Certificate of realization of Foreign Exchange issued by the Bank in Form I
(k) The list of the value added products produced and its value of exports from
the imported material duly verified by the officer of RO/SRO.

Assistance for export of value added products.

(a) Customs certified copy of the Commercial invoice of export


(b) Customs certified export promotion copy of the shipping bill
(c) Certified copy of the Bill of Lading of export
(d) Freight invoice issued by the Shipping Lines for export
(e) Certificate of realization of Foreign Exchange issued by the bank in Form I

5. List of value added fish products eligible for assistance under the scheme is
appended for guidance.
6. The applications received shall be considered on a first-cum-first served basis and
subject to availability of funds.
7. Application for Sea Freight Assistance should be addressed to the concerned
ROs/SROs of MPEDA where the applicants registered office is situated on or
before 180 days from the date of shipment, failing which such applications will be
summarily rejected.
8. The date of submission of claim in any MPEDA office shall be the date of claim
for consideration. Exporters should claim the assistance on per shipment basis.
However, applications for shipments would be on fortnightly basis i.e., 1st to 15th
and 16th to the end of the calendar month.

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9. The financial assistance shall be paid only to the actual exporter effecting the
shipments.
10. If the details furnished by the applicant are incomplete and letter has been issued
by the MPEDA for re-submission of application with details within the stipulated
time, such applications shall be rejected after.
11. In case of any doubts/disputes, the matter will be referred to the Chairman,
MPEDA and his/her decision shall be final and binding.

8. OPERATION OF THE FINANCIAL ASSISTANCE SCHEME

1. On receipt of the applications at the concerned Regional/Sub-Regional offices of


MPEDA, the date of receipt and entry number shall be recorded in each application
and details furnished shall be verified/cross checked at the Regional/Sub-Regional
Offices and the application for financial assistance will be forwarded to HO within 7
working days with its verification and recommendation.

2. Applications, received from the Regional/Sub-Regional Offices will be scrutinized


individually by a committee constituted for this purpose and the eligible subsidy
amount would be recommended to the sanctioning authority for sanction and
effecting payment directly to the concerned beneficiaries after obtaining necessary
receipts. The Committee shall consists of

1. Secretary/Joint Director

2. Deputy Director (MS)

3. Deputy Director (Stat)

4. Assistant Director (MS)

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APPENDIX
LIST OF VALUE ADDED FISHERY PRODUCTS
Sr. No. Description
1 Shrimp – breaded, battered, marinated and other such prepared products
2 Shrimp pickle
3 Shrimp Curry
4 AFD Shrimp, AFD Powder
5 Shrimp IQF raw in consumer packs upto 2 kg.
6. Shrimp IQF blanched/cooked
7. Shrimp in Tray/pouch packs
8. Shrimp IQF (Headon) in pouches or tray packs upto 2 kg.
9. Squid – breaded, battered, marinated and other such prepared products
10. AFD Squid
11. Squid IQF raw in consumer packs upto 2 kg.
12. Squid IQF blanched/cooked
13. Squid in Tray/ pouch packs
14. Cuttlefish AFD
15. Cuttlefish IQF raw (consumer packs upto 2 kg.)
16. Cuttlefish IQF blanched/cooked
17. Cuttlefish in tray/pouch packs
18. Cuttlefish breaded, battered, marinated and other such prepared products
19. Octopus AFD
20. Octopus IQF raw (consumer packs upto 2 kg.)
21. Octopus IQF blanched/cooked
22. Octopus in tray/pouch packs
23. Fish fillets / loins / steaks etc in tray / vacuum pouches
24. Breaded fish fingers / fish fillets, precooked loins and other such
prepared products
25. Fish pickle
26. Fish curry
27. Lobster cooked / half cut IQF / packed in tray / pouches
28. Stuffed crab
29. Breaded crab cakes / Crab cake
30. Pasteurized crab meat
31 Raw crab meat / soft shell crab
32 Mussel / clam meat pickle
33 Surimi Products
34 Canned Tuna
35 Frozen Yellow fin Tuna (Sashimi grade)
36 Frozen Big-eye Tuna (Sashimi grade)
37 Frozen Tuna fillet and other tuna meat (whether or not minced).

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(Proforma)

To
Dy.Director/Asst. Director
RO/SRO
MPEDA
…………
………….

Sir,

Sub: Intimation for availing of assistance under Sea Freight Assistance Scheme

This is to inform you that we are registered with the MPEDA as a Manufacturer Exporter
under Regn. No………… dated ……….

We wish to avail of the Sea Freight Assistance under MPEDA Scheme. Items proposed
to be exported and its approximate quantity and value are given below:

Sl.No. Item Exported Quantity( kgs) Value (Rs.)


1
2
3
Total

Authorised Signatory:
Name (Block letters)
Designation with seal of Company
Place:
Date:
---------- ------------------- --------------- --------------- ------

Acknowledgement by Regional Office/Sub Regional Office, MPEDA

We hereby acknowledge the receipt of your intimation letter dated ………… for availing
the assistance under Sea Freight Assistance Scheme

Signature of Officer in charge of RO/SRO.


Place:
Date:

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(Proforma of approval/rejection to be issued by RO/SRO, MPEDA )

Ref: ………. Date………….

To
……………
………….
…………

Sir,

Approval / Rejection for Sea Freight Assistance Scheme

We are in receipt of your intimation letter No………….. dated …… ….. for availing
the assistance under Sea Freight Assistance Scheme for export of ………………… to
……..

*1. We hereby inform you that you are eligible for availing Sea Freight Assistance for the
products mentioned in the above letter on compliance of the provisions of the scheme and
upon submission of all documents as required under the scheme. You may submit the
application in the prescribed form.

*2. We hereby inform you that you are not eligible for availing Sea Freight Assistance for
the products mentioned in above letter as your facility is not registered with the authority
for the manufacture of the said products/your facility does not meet the requirements for
the production of products mentioned for export.

Signature of Officer in charge of RO/SRO.


Place:
Date:

(* Strike out whichever is not applicable)

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