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. 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). Sri Lanka has identified a total of 102 six-digit shS tariff lines, on which Pakistan will have 100% duty-free access. 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. Pl. visit India`s following website for ISFTA tariff concessions and other India customs information: www.indiantradeportal.in/index.jsp The list of emergency concessions contains a total of 206 six-digit HS tariff lines (products) and Sri Lanka immediately enjoys duty-free access to these products on the Pakistani market. 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. 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. 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. All products manufactured in category b) should contain at least 35% of the national value added of their FOB value in order to receive preferential treatment. In addition, it is necessary for all non-original materials used by exporters to change their SH codes to six digits relative to those of the final product as a result of the manufacturing process carried out in the export country.