13 Avr 2021

Trade Agreement Of Sri Lanka

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The agreement contains articles on objectives, definitions, the elimination of tariffs, paratarifs and non-tariff barriers, rules of origin, safeguards, dispute resolution, amendments, annexes, etc. Following the signing of the agreement, the two countries were able, after several rounds of bilateral negotiations, to finalize the annexes of the agreement in December 2004 and February 2005 and exchange diplomatic notes confirming the completion of the annexes. Sri Lanka`s trade relations with India marked a historic milestone when the India-Sri Lanka Free Trade Agreement (ISFTA) was signed on 28 December 1998 as Sri Lanka`s first bilateral free trade agreement. The ISFTA came into force on March 1, 2000. The ISFTA is now fully implemented, with both parties fulfilling their progressive obligations under the Tariff Liberalisation Programme (TLP), as explained below. Pl. visit India`s website below for ISFTA tariff concessions and other India customs information: www.indiantradeportal.in/index.jsp tariff quotas (TRQ) are specific quantities of products on which the importing country would agree either to grant duty-free access or a preferential tariff when imported by the other contracting party to the agreement. Products that go beyond the agreed TRQ are subject to the normal tariffs applied by the importing country to these products. Rules of Origin (ROC) Criteria for export products that are not fully obtained or produced in Sri Lanka (with imported inputs) Pakistan has granted a tariff quota for 6,000 m/t of Basmati rice and 1,000 m/t of potatoes per calendar year (January-December). However, the importation of potatoes is only permitted during the low season of Sri Lankan lands. (2/3, which will be introduced in June – July and 1/3 in October – November each year). The Pakistani government has issued the following communications regarding the implementation of the Pak-Sri Lanka Free Trade Agreement: the Ministry of Commerce has communicated the « rules of origin » s.R.O.508(1)/200 June 6, 2005 and the operational procedure for issuing and verifying the Empty Certificate of Origin Notification S.R.O.509 (1)/2005) of June 6, 2005. Pakistan`s negative list consists of 540 shS tariff lines (products) at the six-digit level.

Because these products are on the negative list, these products are not allowed to benefit from tariff concessions when imported from Sri Lanka. Sri Lankan products exported to India are currently exempt from tariffs, with the exception of the following categories Products of Indian origin exported to Sri Lanka under the ISFTA are currently exempt from customs duties, with the exception of 1,180 TL products included in the ISFTA in the Netherlands of Sri Lanka. The products listed in Schedule IV are entitled to a margin of preference of 20% of the applied MFN tariff, without any quantitative limitations. The list of emergency concessions contains a total of 206 six-digit HS (product) tariff lines, and Sri Lanka immediately enjoys 100% duty-free access for these products on the Pakistani market. Sri Lanka has identified a total of 102 six-digit shS tariff lines, on which Pakistan will have 100% duty-free access. Cumulative rules of origin encourage exporters to source inputs from the other contracting country. However, domestic value added in the exporting country should not be less than 25% of the FOB value of the final product, while the total value added in both parts should be at least 35% of the FOB value. In addition, the products concerned should also comply with the change in the six-digit HS code requirement, as in the case of manufactured products listed in Category B. The authority responsible for issuing the PSFTA certificates of origin is the Export Promotion Bureau, as indicated by the Ministry of Empty Trade S.R.O.510 (1)/2005 of June 6, 2005.

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