Sri Lanka Free Trade Agreements

Products of Sri Lankan origin exported to India are currently duty-free, with the exception of the following categories, Sri Lanka has identified a total of 102 six-figure shs customs positions, to which Pakistan enjoys 100% duty-free access. Pl. visit India`s website below for ISFTA tariff concessions and other India customs information: 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. Products of Indian origin exported under the ISFTA to Sri Lanka are currently duty-free, with the exception of 1,180 TL products that are included in the Netherlands under the ISFTA. Sri Lanka granted Pakistan, duty-free, a tariff quota of 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 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`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. The determination of the six-digit HS code change has made the PSFTA`s rules of origin more flexible compared to most other free trade agreements that require the HS code to be amended in four-digit terms. 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.

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