Sea Freight
Content
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)
1
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 To make India a Seafood processing hub and generate substantial employment opportunities. To encourage better utilization of installed capacity in the processing units and thereby improve their financial health. 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
2
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 1st and 2nd implementing years 1st and 2nd implementing years 1st and 2nd implementing years 3rd and 4th implementing years 3rd and 4th implementing years 3rd and 4th implementing years Market EU USA Japan EU USA Japan Rate of Assistance Rs./Kg 4 5 3 2 3 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 II III IV V VI
Below Rs.1 Crore Above Rs.1 Cr. - Rs. 5 Cr Above Rs.5 Cr – Rs.15 Cr Above Rs.15 Cr – Rs.30 Cr Above Rs.30 Cr – Rs.50 Cr Above Rs.50 Crore
Rs.5 lakh Rs.10 lakh Rs.20 lakh Rs.30 lakh Rs.40 lakh 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.
3
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) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Copy of the certified Commercial Invoice of import Bill of Lading of Shipping Lines Customs certified copy of the Bill of Entry Freight Invoice issued by the Shipping Lines of import. Freight rate from port of import to Shanghai (China) certified by the same Shipping Line. Customs certified copy of the Commercial invoice of export Customs certified export promotion copy of the shipping bill Certified copy of the Bill of Lading of export Freight invoice issued by the Shipping Lines for export Certificate of realization of Foreign Exchange issued by the Bank in Form I 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) (b) (c) (d) (e) Customs certified copy of the Commercial invoice of export Customs certified export promotion copy of the shipping bill Certified copy of the Bill of Lading of export Freight invoice issued by the Shipping Lines for export 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)
6
LIST OF VALUE ADDED FISHERY PRODUCTS
APPENDIX
Sr. No.
1 2 3 4 5 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31 32 33 34 35 36 37
Description
Shrimp – breaded, battered, marinated and other such prepared products Shrimp pickle Shrimp Curry AFD Shrimp, AFD Powder Shrimp IQF raw in consumer packs upto 2 kg. Shrimp IQF blanched/cooked Shrimp in Tray/pouch packs Shrimp IQF (Headon) in pouches or tray packs upto 2 kg. Squid – breaded, battered, marinated and other such prepared products AFD Squid Squid IQF raw in consumer packs upto 2 kg. Squid IQF blanched/cooked Squid in Tray/ pouch packs Cuttlefish AFD Cuttlefish IQF raw (consumer packs upto 2 kg.) Cuttlefish IQF blanched/cooked Cuttlefish in tray/pouch packs Cuttlefish breaded, battered, marinated and other such prepared products Octopus AFD Octopus IQF raw (consumer packs upto 2 kg.) Octopus IQF blanched/cooked Octopus in tray/pouch packs Fish fillets / loins / steaks etc in tray / vacuum pouches Breaded fish fingers / fish fillets, precooked loins and other such prepared products Fish pickle Fish curry Lobster cooked / half cut IQF / packed in tray / pouches Stuffed crab Breaded crab cakes / Crab cake Pasteurized crab meat
Raw crab meat / soft shell crab Mussel / clam meat pickle
Surimi Products Canned Tuna Frozen Yellow fin Tuna (Sashimi grade) Frozen Big-eye Tuna (Sashimi grade) Frozen Tuna fillet and other tuna meat (whether or not minced).
7
(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 1 2 3 Total
Quantity( kgs)
Value (Rs.)
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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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)
1
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 To make India a Seafood processing hub and generate substantial employment opportunities. To encourage better utilization of installed capacity in the processing units and thereby improve their financial health. 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
2
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 1st and 2nd implementing years 1st and 2nd implementing years 1st and 2nd implementing years 3rd and 4th implementing years 3rd and 4th implementing years 3rd and 4th implementing years Market EU USA Japan EU USA Japan Rate of Assistance Rs./Kg 4 5 3 2 3 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 II III IV V VI
Below Rs.1 Crore Above Rs.1 Cr. - Rs. 5 Cr Above Rs.5 Cr – Rs.15 Cr Above Rs.15 Cr – Rs.30 Cr Above Rs.30 Cr – Rs.50 Cr Above Rs.50 Crore
Rs.5 lakh Rs.10 lakh Rs.20 lakh Rs.30 lakh Rs.40 lakh 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.
3
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
4
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) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Copy of the certified Commercial Invoice of import Bill of Lading of Shipping Lines Customs certified copy of the Bill of Entry Freight Invoice issued by the Shipping Lines of import. Freight rate from port of import to Shanghai (China) certified by the same Shipping Line. Customs certified copy of the Commercial invoice of export Customs certified export promotion copy of the shipping bill Certified copy of the Bill of Lading of export Freight invoice issued by the Shipping Lines for export Certificate of realization of Foreign Exchange issued by the Bank in Form I 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) (b) (c) (d) (e) Customs certified copy of the Commercial invoice of export Customs certified export promotion copy of the shipping bill Certified copy of the Bill of Lading of export Freight invoice issued by the Shipping Lines for export 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.
5
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)
6
LIST OF VALUE ADDED FISHERY PRODUCTS
APPENDIX
Sr. No.
1 2 3 4 5 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31 32 33 34 35 36 37
Description
Shrimp – breaded, battered, marinated and other such prepared products Shrimp pickle Shrimp Curry AFD Shrimp, AFD Powder Shrimp IQF raw in consumer packs upto 2 kg. Shrimp IQF blanched/cooked Shrimp in Tray/pouch packs Shrimp IQF (Headon) in pouches or tray packs upto 2 kg. Squid – breaded, battered, marinated and other such prepared products AFD Squid Squid IQF raw in consumer packs upto 2 kg. Squid IQF blanched/cooked Squid in Tray/ pouch packs Cuttlefish AFD Cuttlefish IQF raw (consumer packs upto 2 kg.) Cuttlefish IQF blanched/cooked Cuttlefish in tray/pouch packs Cuttlefish breaded, battered, marinated and other such prepared products Octopus AFD Octopus IQF raw (consumer packs upto 2 kg.) Octopus IQF blanched/cooked Octopus in tray/pouch packs Fish fillets / loins / steaks etc in tray / vacuum pouches Breaded fish fingers / fish fillets, precooked loins and other such prepared products Fish pickle Fish curry Lobster cooked / half cut IQF / packed in tray / pouches Stuffed crab Breaded crab cakes / Crab cake Pasteurized crab meat
Raw crab meat / soft shell crab Mussel / clam meat pickle
Surimi Products Canned Tuna Frozen Yellow fin Tuna (Sashimi grade) Frozen Big-eye Tuna (Sashimi grade) Frozen Tuna fillet and other tuna meat (whether or not minced).
7
(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 1 2 3 Total
Quantity( kgs)
Value (Rs.)
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:
8
(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)
9
