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 agreement contains articles on objectives, definitions, tariff elimination, paratarifs and non-tariff barriers, rules of origin, safeguards, www.indiantradeportal.in/index.jsp 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. . Products of Sri Lankan origin exported to India are currently duty-free, with the exception of the following categories published by the Pakistani government for the purpose of implementing the Pak-Sri Lanka Free Trade Agreement: all products manufactured under category b) should contain at least 35% of the internal capital gain in their FOB value for 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. The products listed in Schedule IV are entitled to a margin of preference of 20% of the applied MFN tariff, without any quantitative limitations. Criteria for export products that are not fully obtained in Sri Lanka or produced in Sri Lanka (with imported inputs) Pakistan`s negative list consists of 540 six-digit shS tariff lines (products). Since these products are on the negative list, they are not entitled to tariff concessions if imported from Sri Lanka, Sri Lanka has 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 authority responsible for issuing the certificates of origin of the PSFTA is promotional export, as carried out by the Ministry of Empty Trade S.R.O.510 (1)/2005 of 6 The Ministry of Commerce has notified “Rules of Origin” empty S.R.O .508 (1)/2005 of June 6, 2005 and the operating procedure for issuing and verifying the certificate of origin empty notification S.R.O.509 (1)/2005) of June 6, 2005. 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.