Freight Assistance Scheme
Freight Assistance Scheme
The Government of Haryana has introduced the Freight Assistance scheme for MSME exporting units in the State. Under this scheme, all eligible units can avail the maximum assistance of Rs.20 lakhs on transportation of finished goods through inland waterways. In this article, we look at the Freight Assistance Scheme in detail.
Also, read about Transport Subsidy Scheme
Objective of the Scheme
The objectives of the Freight Assistance Scheme are given below:
- To provide support to the industrial units for transporting manufacturing goods.
- To enhance the competitiveness of exporting units.
Quantum of Assistance
The assistance to the extent of 1% of actual freight or Free on Board (FOB) value excluding government taxes and fees on transportation of goods from manufacturing units to the seaport, which is limited to Rs.20 lakhs per annum will be provided for export of goods, manufactured by the exporting MSME units in the State.
Grant of Assistance
The assistance amount would be calculated on the FOB value of the export as certified by the concerned authority of Custom and Central Excise, as indicated in the shipping bill.
- The assistance would be provided only in case of direct export of the goods manufactured by the exporting unit.
- The assistance will not be given in case of goods transported through railways or the railway public sector undertakings and scheduled airline.
- The units must have obtained Entrepreneurs Memorandum (EM Part-II) or Udyog Aadhar or SSI registration from concerned District Industries Centre before submitting the claim.
- The units must have obtained a registration-cum-membership certificate from Export Promotion Council.
The units must have obtained Importer-Exporter code from Directorate General of Foreign Trade (DGFT).
Note: Any MSMEs existing units in the State under the same management can be merged together, and the maximum cover of the eligible amount of freight subsidy for both units would not exceed Rs.20 lakh in a financial year.
The policy period of the scheme is for five years. The freight assistance is applicable only on goods shipped on or after 15th August 2015 and before 14th August 2020.
The Director of Industries & Commerce Department is the concerned authority responsible for sanction of freight subsidy above Rs.10 lakhs to Rs.20 lakhs whereas additional director of Industries & Commerce Department will be the authority to sanction the assistance for up to Rs.10 lakh within 30 days from the day of completion of the claim.
- The following are the documents to be furnished along with the application form:
Copy of Acknowledgement of UAM/EM Part-II.
Certificate in Form “A” and Form “C” which is issued by District Registrar of Firms & Societies/Registrar along with a copy of Partnership Deed/Certificate of the Incorporation of the Company in case of limited companies.
- Duly Attested Special Power of Attorney by Notary Public.
In the case of limited companies, resolution of the board of directors of the company in Form (b)/F(c) in the original.
- Registration-cum-membership issued by relevant Export Promotion Council. Government of Haryana Industries and Commerce Department.
- Certified copy of Importer Exporter Code (IEC) issued by DGFT.
- Copy of Shipping Bills.
- Copy of bank realization certificate of concerned shipping bill.
- Copy of Land proof- allotment letter/lease deed/rent deed.
- No Objection Certificate (NOC)
- Change of Land use (CLU) from concerned authority, if any.
- Certified copy of Chartered Accountant indicating the total amount of Freight paid from manufacture to the seaport in the prescribed form F(d).
- Copy of Chartered Accountant Certificate in respect of total FOB Value in the prescribed form F(e).
- Details of exports.
To apply for the Freight Assistance Scheme, follow the procedure given below:
Step 1: The application for the grant of freight assistance on export along with the document mentioned above has to be submitted online on the web portal of the department.
The application form for the freight assistance is reproduced below for the reference:Screenshot from 2019-09-30 16-58-11
Step 2: The form has to be made within 90 days from the date of the year which the products were shipped for exports.
Step 3: The application will be processed and examined. If any deficiencies will be directly communicated to the applicant in writing within 20 working days.
Step 4: In case the corrections are not made within eight weeks, then the claim would be filed by the concerned authority, i.e. Additional Director, Government of Haryana Industries and Commerce Department under intimation to the unit through an e-mail.
Step 5: The claim application so filed will be reviewed with the orders of Director of Industries & Commerce department provided the request for the same is received within a period of one month from the day of filing the claim by the designated competent authority.
Step 6: For a period exceeding 30 days, the case will be reviewed with the orders of Administrative Secretary of Industries and Commerce, if the request for the same is received within 60 days from the day of filing the claim by the additional director.
Note: The exporting unit will not be required to submit any additional document other than specified at Form F without the approval of the concerned authority.
The eligible enterprise has to submit the duly filled claim application form within 90 days from the date of closing of the Fiscal Year in which the products were shipped for exports.
The appeal can be made under the following grounds:
- An appeal can be made against orders passed by the Competent Authority would lie with the Director of Industries & Commerce, Haryana.
- An appeal can be made against orders passed by the Director of Industries & Commerce, Haryana would lie with the Secretary of Industries & Commerce, Haryana and orders passed by the Administrative Secretary Industries and Commerce in appeal shall be final.
Note: Appeals mention above is applicable within 30 days from the date of communication of orders appealed against.
In case of assistance availed by the applicant from the Government by providing false information, then the applicant is required to refund the assistance along with the penal interest at the rate of 12% per annum.