Sri Lanka Free Trade Agreements

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. Tariff quotas (TRQs) are specific quantities of products for which the importing country would be agreed to grant either duty-free access or preferential duty if 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. Sri Lanka has identified a total of 102 six-digit shS tariff lines, on which Pakistan will have 100% duty-free access. 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 Lankan products of origin exported to India are currently duty-free, with the exception of the following categories Sri Lanka`s trade relations with India marked a historic milestone by signing the India-Sri Lanka Free Trade Agreement (ISFTA) 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 following website for ISFTA tariff concessions and other India customs information: www.indiantradeportal.in/index.jsp 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 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. 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 Pakistani government has published the following information on the application of the pak-Sri Lanka Free Trade Agreement: the six-digit HS code amendment provision has made the PSFTA`s rules of origin more flexible than most other free trade agreements that require the HS code to be amended in four-digit terms. The Ministry of Commerce notified the empty "Rules of Origin" S.R.O.508 (1)/2005 of June 6, 2005 and the operating procedure for issuing and verifying the empty certificate of origin Notification S.R.O.509 (1)/2005) of June 6, 2005. Criteria for export products not fully obtained in Sri Lanka or products in Sri Lanka (with imported intermediate consumption) The authority responsible for issuing PSFTA certificates of origin is the Export Promotion Bureau, as notified by the Ministry of Empty Commerce S.R.O.510(1)/2005 of 6 June 2005. Pakistan`s negative list consists of 540 shS tariff lines (products) at the six-digit level.