1.In order to finalise the procedure for operationalising the Tariff Rate Quota Arrangement in respect of tea, the sub-groups of the delegations of the Government of Republic of India and the Government of Democratic Socialist Republic of Sri Lanka met and held discussions. The sub-group from the Indian side was led by Shri Jawaid Akhtar, Deputy Secretary to the Government of India whereas, Mr. Hasitha de Alwis, Director, Sri Lanka Tea Board led the discussions on behalf of the Sri Lanka side.
2. Pursuant to the signing of the Free Trade Agreement, a meeting between the two sides was held on 2nd February, 2000 to operationalise the Agreement. In that meeting it was decided, inter alia that the import of tea into India from Sri Lanka under the Tariff Rate Quota Arrangement would be through Calcutta and Cochin Ports. The Sri Lanka side requested that Mumbai may also be included as an additional port of entry. They further proposed that the details could be discussed during the forthcoming JMC meeting.
3. The following four related issues were discussed during the meeting :
A. Quota Allocation:
4. Since the exports will commence with effect from April, 2000, the quota for year 2000 for tea will be 11.25 m.kgs. Sri Lanka Tea Board would allocate the quota in respect of tea exports from Sri Lanka under tariff concessions. Sri Lanka Tea Board immediately after allocation of quota to any Sri Lanka exporter, shall inform Tea Board of India indicating the following
5. The Sri Lanka Tea Board shall issue a certificate as per Annexure-A indicating the allocation of quota to each exporter which would accompany the certificate of origin issued by the Director General of Commerce, Government of Sri Lanka with every consignment. A copy of both the certificates shall be sent to the Tea Board of India.
6. Sri Lankan side also informed that they will make available details regarding quota allocation on their Web site which can be accessed by Indian authorities viz. Tea Board of India, Department of Customs and High Commission of India, Colombo, Sri Lanka.
B. Monitoring of Quota :
7. Tea Board of India, after receipt of the above information from Sri Lanka Tea Board will monitor the utilisation of the quota in liaison with the Customs Authorities of Calcutta and Cochin. In respect of quota allocation for any year, the date of Bill of Lading/Airway Bill will be taken into account. The ports of entry allowed under the Agreement will be Calcutta sea, Calcutta air, Cochin sea and Cochin air.
The Sri Lanka Tea Board will also monitor the allocations and actual exports regularly.
C. Certificate of Origin
8. As decided in the meeting held on 2nd February, 2000, the Director General of Commerce, Sri Lanka will be the designated authority to issue Certificate of Origin from the Sri Lanka side. The format of Certificate of Origin shall be as per Annexure-B.
D. Quality Assurance:
9. Sri Lanka Tea Board shall ensure that the standard of tea exported from Sri Lanka shall conform to ISO 3720/Specification for tea under the Prevention of Food Adulteration Act (PFA) operative in India.
10. The Tea Waste (Control) Order, 1959 is operative in India. Import and Marketing of Tea waste as defined therein shall be governed by the provisions of the Tea Waste (Control) Order.
11. Tea Board of India, in pursuance of their statutory duty, shall have the right to inspect at random the tea consignments emanating from Sri Lanka and have the discretion of drawing samples, in order to ascertain whether the tea shipment conforms to ISO specifications/PFA standards. If, on visual inspection they have reasonable suspicion that a particular consignment may not conform to the said specifications, Tea Board of India may advise Customs at the designated port, not to allow clearance of the suspect consignment till the test of the sample is completed and the report is favourable.
12. In the cases of random sampling, Customs shall not detain the consignment and release the same on obtaining an undertaking from the importer to the effect that in the event of adverse test result, the entire goods shall be surrendered, and that they shall be liable to penal action under the Customs Act. In the cases where Tea Board of India has specifically advised Customs to detain the tea consignment pending test, the Customs shall allow the option of bonding under Section 49 of the Customs Act to guard against demurrage. In all cases where penal action has been initiated by Customs, Sri Lanka Tea Board shall be kept apprised.
13. If the tea is off-loaded at a port or airport other than the designated port or airport, the Customs shall be at liberty to levy the duty at the normal tariff rate without allowing 50% concession, except in a case of force majeure which, inter alia includes natural disasters and any other circumstances beyond the control of the exporter such as port strike, etc.
14. In the case of a shipment being rejected/penalised on account of action as envisaged in paras 11 and/or 12 above, or in the case of a shipment being charged full duty as envisaged in para 13 above, the quantity of the shipment so dealt with and therefore not counted towards the Tariff Quota will still be considered available for allocation by the Sri Lanka Tea Board under the Tariff Quota Arrangement.
15. India and Sri Lanka agree to maintain close cooperation for operationalising these arrangements. For this purpose, both the sides agree to designate their respective officers for regular contact, if required, between the two countries. The officers designated from the Indian side are (1) Chairman, Tea Board or his nominee, (2) Commissioner of Customs, Calcutta, and (3) Commissioner of Customs, Cochin. On the Sri Lanka side the designated officers are (1) Chairman, Sri Lanka Tea Board or his nominee, (2) Director General (Development), Ministry of Plantation Industries, Government of Sri Lanka or his nominee, and (3) Director General of Commerce, Government of Sri Lanka or his nominee.
16. India and Sri Lanka agree to hold consultations, on the written request of either of the two sides, at a mutually agreed place and time, to foster appropriate implementation of these arrangements.
17. The Agreement is being operationalised with effect from calendar year 2000.
18. It was also decided that a review may be made on the request of either side in August, 2000, as this is the first year of implementation of this Arrangement
On behalf of the Government of India Jawaid Akhtar |
On behalf of the Government of Sri Lanka
Hasitha de
Alwis Director Sri Lanka Tea Board Colombo |
SRI LANKA TEA BOARDIt is hereby certified that the declaration given by the exporter is correct and that the position of tea quota is as follows:
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| (Place and date) | Sign & Stamp of certifying authority |
ANNEXURE–B CERTIFICATE OF ORIGIN
| 1. Goods consigned from (Exporters’ Business Name, Address, Country) | Reference No. INDO-SRI LANKA FREE TRADE AGREEMENT (ISFTA) (Combined declaration and Certificate for exporting under preferential tariff against Tariff Rate Quota) Issued in…………………………. (Country) (See notes overleaf) |
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2. Goods consigned to (Consignee’s Name, Address, Country) |
4. For Official use | |||||
3. Means of transport and route (as far as known)
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| 5. Tariff item number
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6. Marks and numbers of packages | 7. Number and kind of packages: description of goods | 8. Origin criterion (see Notes overleaf) | 9. Gross weight or other quantity | 10. Number and date of invoice
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| 11. Declaration by
the Exporter The undersigned hereby declares that the above details and statements are correct; That all the goods were produced in ……………………………………………
and that they comply with the origin requirements specified for those goods in ISFTA for goods exported to …………………………………………… (Importing Country) ……………………………………………. Place and date, signature of the authorised signatory |
12. Certificate: It is hereby certified, on the basis of control carried out that the declaration by the exporter is correct.
……………………………………………. Place and date, signature and stamp of certifying authority. |
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