[{"nid":"2126","title":"Free Trade Agreement Text","body":"\u003Csection class=\u0022maincontent\u0022\u003E\u003Cdiv class=\u0022container\u0022\u003E\u003Cdiv class=\u0022row ft_africa-sec\u0022\u003E\u003Cdiv class=\u0022col-lg-12 col-md-12 col-sm-12\u0022\u003E\u003Ch1 class=\u0022titleinner\u0022\u003EFREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF INDIA AND THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA\u003C\/h1\u003E\u003Cdiv class=\u0022ft-africa-box\u0022\u003E\u003Cdiv class=\u0022row\u0022\u003E\u003Cdiv class=\u0022col-lg-12 col-md-12 col-sm-12\u0022\u003E\u003Cdiv class=\u0022ft-africa-details\u0022\u003E\u003Cdiv\u003E\u003Ch2 class=\u0022subheading\u0022\u003EPREAMBLE\u003C\/h2\u003E\u003Cp\u003EThe Government of the Republic of India and the Government of the Democratic Socialist Republic of Sri Lanka, (hereinafter referred to as the \u201cContracting Parties\u201d).\u003C\/p\u003E\u003Cp\u003ECONSIDERING that the expansion of their domestic markets, through economic integration, is a vital prerequisite for accelerating their processes of economic development.\u003C\/p\u003E\u003Cp\u003EBEARING in mind the desire to promote mutually beneficial bilateral trade.\u003C\/p\u003E\u003Cp\u003ECONVINCED of the need to establish and promote free trade arrangements for strengthening intra-regional economic cooperation and the development of national economies.\u003C\/p\u003E\u003Cp\u003EFURTHER RECOGNIZING that progressive reductions and elimination of obstacles to bilateral trade through a bilateral free trade agreement (hereinafter referred to as \u201cThe Agreement\u201d) would contribute to the expansion of world trade.\u003C\/p\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle I \u2013 Objectives\u003C\/h2\u003E\u003Cp\u003EThe Contracting Parties shall establish a Free Trade Area in accordance with the provisions of this Agreement and in conformity with relevant provisions of the General Agreement on Tariff and Trade, 1994.\u003C\/p\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003ETo promote through the expansion of trade the harmonious development of the economic relations between India and Sri Lanka.\u003C\/li\u003E\u003Cli\u003ETo provide fair conditions of competition for trade between India and Sri Lanka.\u003C\/li\u003E\u003Cli\u003EIn the implementation of this Agreement the Contracting Parties shall pay due regard to the principle of reciprocity.\u003C\/li\u003E\u003Cli\u003ETo contribute in this way, by the removal of barriers to trade, to the harmonious development and expansion of world trade.\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle II \u2013 Definitions\u003C\/h2\u003E\u003Cp\u003EFor the purpose of this agreement:\u003C\/p\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003E\u201cTariffs\u201d means basic customs duties included in the national schedules of the Contracting Parties.\u003C\/li\u003E\u003Cli\u003E\u201cProducts\u201d means all products including manufactures and commodities in their raw, semi-processed and processed forms.\u003C\/li\u003E\u003Cli\u003E\u201cPreferential Treatment\u201d means any concession or privilege granted under this Agreement by a Contracting Party through the elimination of tariffs on the movement of goods.\u003C\/li\u003E\u003Cli\u003E\u201cThe Committee\u201d means the Joint Committee referred to in Article XI.\u003C\/li\u003E\u003Cli\u003E\u201cSerious Injury\u201d means significant damage to domestic producers, of like or similar products resulting from a substantial increase of preferential imports in situations which cause substantial losses in terms of earnings, production or employment unsustainable in the short term. The examination of the impact on the domestic industry concerned shall also include an evaluation of other relevant economic factors and indices having a bearing on the state of the domestic industry of that product.\u003C\/li\u003E\u003Cli\u003E\u201cThreat of serious injury\u201d means a situation in which a substantial increase of preferential imports is of a nature so as to cause \u201cSerious injury\u201d to domestic producers, and that such injury, although not yet existing is clearly imminent. A determination of threat of serious injury shall be based on facts and not on more allegation, conjecture, or remote or hypothetical possibility.\u003C\/li\u003E\u003Cli\u003E\u201cCritical circumstances\u201d means the emergence of an exceptional situation where massive preferential imports are causing or threatening to cause \u201cserious injury\u201d difficult to repair and which calls for immediate action.\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle III \u2013 Elimination of Tariffs\u003C\/h2\u003E\u003Cp\u003EThe Contracting Parties hereby agree to establish a Free Trade Area for the purpose of free movement of goods between their countries through elimination of tariffs on the movement of goods in accordance with the provisions of Annexures A \u0026amp; B which shall form an integral part of this Agreement.\u003C\/p\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle IV \u2013 General Exceptions\u003C\/h2\u003E\u003Cp\u003ENothing in this Agreement shall prevent any Contracting Party from taking action and adopting measures, which it considers necessary for the protection of its national security, the protection of public morals, the protection of human, animal or plant life and health, and the protection of articles of artistic, historic and archaeological value, as is provided for in Articles XX and XXI of the General Agreement on Tariff and Trade, 1994.\u003C\/p\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle V \u2013 National Treatment\u003C\/h2\u003E\u003Cp\u003EThe Contracting Parties affirm their commitment to the principles enshrined in Article III of GATT 1994.\u003C\/p\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle VI \u2013 State Trading Enterprises\u003C\/h2\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003ENothing in this Agreement shall be construed to prevent a Contracting Party from maintaining or establishing a state trading enterprise as understood in Article XVII of General Agreement on Tariff and Trade, 1994.\u003C\/li\u003E\u003Cli\u003EEach Contracting Party shall ensure that any state enterprise that it maintains or establishes acts in a manner that is not inconsistent with the obligations of the Contracting Parties, under this Agreement and accords non-discriminatory treatment in the import from and export to the other Contracting Party.\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle VII \u2013 Rules of Origin\u003C\/h2\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EProducts covered by the provisions of this Agreement shall be eligible for preferential treatment provided they satisfy the Rules of Origin as set out in Annexure C to this Agreement which shall form an integral part of this Agreement.\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle VIII \u2013 Safeguard Measures\u003C\/h2\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EIf any product, which is the subject of preferential treatment under this Agreement, is imported into the territory of a Contracting Party in such a manner or in such quantities as to cause or threaten to cause, serious injury in the importing Contracting Party, the importing Contracting Party may, with prior consultations except in critical circumstances, suspend provisionally without discrimination the preferential treatment accorded under the Agreement.\u003C\/li\u003E\u003Cli\u003EWhen action has been taken by either Contracting Party in terms of paragraph I of this Article, it shall simultaneously notify the other Contracting Party and the Joint Committee established in terms of Article XI. The Committee shall enter into consultations with the concerned Contracting Party and endeavor to reach mutually acceptable agreement to remedy the situation. Should the consultations in the Committee fail to resolve the issue within sixty days, the party affected by such action shall have the right to withdraw the preferential treatment.\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle IX \u2013 Domestic Legislation\u003C\/h2\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EThe Contracting Parties shall be free to apply their domestic legislation to restrict imports, in cases where prices are influenced by unfair trade practices like subsidies or dumping. Subsidies and dumping shall be understood to have the same meaning as in the General Agreement on Tariff and Trade, 1994 and the relevant WTO Agreements.\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle X \u2013 Balance of Payment Measures\u003C\/h2\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003ENotwithstanding the provisions of this Agreement, any Contracting Party facing balance of payments difficulties may suspend provisionally the preferential treatment as to the quantity and value of merchandise permitted to be imported under the Agreement. When such action has taken place, the Contracting Party, which initiates such action shall simultaneously notify the other Contracting Party.\u003C\/li\u003E\u003Cli\u003EAny Contracting Party, which takes action according to paragraph 1 of this Article, shall afford, upon request from the other Contracting Party, adequate opportunities for consultations with a view to preserving the stability of the preferential treatment provided under this Agreement.\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle XI \u2013 Joint Committee\u003C\/h2\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EA Joint Committee shall be established at Ministerial level. The Committee shall meet at least once a year to review the progress made in the implementation of this Agreement and to ensure that benefits of trade expansion emanating from this Agreement accrue to both Contracting Parties equitably. The Committee may set up Sub-Committees and\/or Working Groups as considered necessary.\u003C\/li\u003E\u003Cli\u003EIn order to facilitate cooperation in customs matters, the Contracting Parties agree to establish a Working Group on customs related issues including harmonization of tariff headings. The Working Group shall meet as often as required and shall report to the Committee on its deliberations.\u003C\/li\u003E\u003Cli\u003EThe Committee shall accord adequate opportunities for consultation on representations made by any Contracting Party with respect to any matter affecting the implementation of the Agreement. The Committee shall adopt appropriate measures for settling any matter arising from such representations within 6 months of the representation being made. Each Contracting Party shall implement such measures immediately.\u003C\/li\u003E\u003Cli\u003EThe Committee shall nominate one apex chamber of trade and industry in each country as the nodal chamber to represent the views of the trade and industry on matters relating to this Agreement.\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle XII \u2013 Consultations\u003C\/h2\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EEach Contracting Party shall accord sympathetic consideration to and shall afford adequate opportunity for, consultations regarding such representations as may be made by the other Contracting Party with respect to any matter affecting the operation of this Agreement.\u003C\/li\u003E\u003Cli\u003EThe Committee may meet at the request of a Contracting Party to consider any matter for which it has not been possible to find a satisfactory solution through consultations under paragraph 1 above.\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle XIII \u2013 Settlement of Disputes\u003C\/h2\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EAny dispute that may arise between commercial entities of the Contracting Parties shall be referred for amicable settlement to the nodal apex chambers. Such references shall, as far as possible, be settled through mutual consultations by the Chambers. In the event of an amicable solution not being found, the matter shall be referred to an Arbitral Tribunal for a binding decision. The Tribunal shall be constituted the Joint Committee in consultation with the relevant Arbitration Bodies in the two countries.\u003C\/li\u003E\u003Cli\u003EAny dispute between the Contracting Parties regarding the interpretation and application of the provisions of this Agreement or any instrument adopted within its framework shall be amicably settled through negotiations failing which a notification may be made to the Committee by any one of the Contracting Parties.\u003C\/li\u003E\u003C\/ul\u003E\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle XIV \u2013 Duration and Termination of Agreement\u003C\/h2\u003E\u003Cp\u003EThis Agreement shall remain in force until either Contracting Party terminates this Agreement by giving six months written notice to the other of its intention to terminate the Agreement.\u003C\/p\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle XV \u2013 Amendments\u003C\/h2\u003E\u003Cp\u003EThe Agreement may be modified or amended through mutual agreement of the Contracting Parties. Proposals for such modifications or amendments shall be submitted to the Joint Committee and upon acceptance by the Joint Committee, shall be approved in accordance with the applicable legal procedures of each Contracting Party. Such modifications or amendments shall become effective when confirmed through an exchange of diplomatic notes and shall constitute an integral part of the Agreement.\u003C\/p\u003E\u003Cp\u003EProvided however that in emergency situations, proposals for modifications may be considered by the Contracting Parties and if agreed, given effect to through an exchange of diplomatic notes.\u003C\/p\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle XVI \u2013 Annexures to be finalized\u003C\/h2\u003E\u003Cp\u003EAnnexure D(i) and D(ii) (Negative Lists of India and Sri Lanka respectively), E (Items on which India has undertaken to give 100% tariff concession on coming into force of the Agreement) and F (Items on which Sri Lanka has undertaken to give 100% tariff concession on the coming into force of the Agreement) shall be finalised within a period of 60 days of the signing of this Agreement. All the Annexures shall form an integral part of the Agreement.\u003C\/p\u003E\u003Ch2 class=\u0022subheading\u0022\u003EArticle XVII \u2013 Entry into Force\u003C\/h2\u003E\u003Cp\u003EThe Agreement shall enter into force on the thirtieth day after the Contracting Parties have notified each other that their respective constitutional requirements and procedures have been completed.\u003C\/p\u003E\u003Cp\u003EIn witness where of the undersigned, duly authorised thereto by their respective Governments, have signed this Agreement.\u003C\/p\u003E\u003Cp\u003EDone in duplicate at New Delhi this 28th day of December 1998 in two originals in the English language.\u003C\/p\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003ESd\/- For the Government of the Republic of India\u003C\/li\u003E\u003Cli\u003ESd\/- For the Government of the Democratic Socialist Republic of Sri Lanka\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2 class=\u0022subheading\u0022\u003EAnnexure \u2013 \u2018A\u2019 \u2013 Concession offered by India\u003C\/h2\u003E\u003Cp\u003EThe Government of India shall grant duty free access to all exports from Sri Lanka in respect of items freely importable into India, except on items listed in Annex D of this Agreement, in accordance with the phase out schedule detailed below:\u003C\/p\u003E\u003Cul\u003E\u003Cli\u003EUpon entry into force of the Agreement :-\u003C\/li\u003E\u003Cli\u003EZero duty access for the items in Annexure \u2018E\u2019\u003C\/li\u003E\u003Cli\u003E50% margin of preference on the remaining items except on items listed in Annexure D. Concessions on items in Chapters 51 to 56, 58 to 60 and 63 shall be restricted to 25%.\u003C\/li\u003E\u003Cli\u003EThe margin of preference on the items mentioned in (b) above shall be increased to 100% in two stages within three years of the coming into force of the Agreement, except for the textiles items referred to in 1(b) above.\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2 class=\u0022subheading\u0022\u003EAnnexure \u2013 \u2018B\u2019\u003C\/h2\u003E\u003Ch2\u003EConcession offered by Sri Lanka\u003C\/h2\u003E\u003Cp\u003EGovernment of Sri Lanka shall provide tariff concessions on exports from India to Sri Lanka in respect of items freely importable into Sri Lanka, as detailed below:-\u003C\/p\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EZero duty for the items in Annex \u2018F\u2019 \u2013 I, upon entering into force of the Agreement.\u003C\/li\u003E\u003Cli\u003E50% margin of preference for the items in Annex \u2018F\u2019 \u2013 II, upon coming into force of the Agreement. The margin of preference in respect of these items shall be deepened to 70%, 90% and 100%, respectively, at the end of the first, second and third year of the entry into force of the Agreement.\u003C\/li\u003E\u003Cli\u003EFor the remaining items except those in Annex \u2018D\u2019, the tariffs shall be brought down by not less than 35% before the expiry of three years and 70% before the expiry of the sixth year and 100% before the expiry of eight years, from the date of entry into force of the Agreement.\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2 class=\u0022subheading\u0022\u003EAnnexure \u2013 \u2018C\u2019\u003C\/h2\u003E\u003Ch2\u003ERules of Origin\u003C\/h2\u003E\u003Ch2\u003E1. Short title\/commencement\u003C\/h2\u003E\u003Cp\u003EThese rules may be called the rules of Determination of Origin of Goods under the Free Trade Agreement between the Democratic Socialistic Republic of Sri Lanka and the Republic of India.\u003C\/p\u003E\u003Ch2\u003E1. Application\u003C\/h2\u003E\u003Cp\u003EThese rules shall apply to products consigned from the territory of either of the Contracting Parties.\u003C\/p\u003E\u003Ch2\u003E1. Determination of Origin\u003C\/h2\u003E\u003Cp\u003ENo product shall be deemed to be the produce or manufacture of either country unless the conditions specified in these rules are complied with in relation to such products, to the satisfaction of the appropriate Authority.\u003C\/p\u003E\u003Ch2\u003E1. Claim at the time of importation\u003C\/h2\u003E\u003Cp\u003EThe importer of the product shall, at the time of importation:\u003C\/p\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003Emake a claim that the products are the produce or manufacture of the country from which they are imported and such products are eligible for preferential treatment under the Agreement, and\u003C\/li\u003E\u003Cli\u003Eproduce the evidence specified in these rules.\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2\u003E1. Originating products\u003C\/h2\u003E\u003Cp\u003EProducts covered by the Agreement imported into the territory of a Contracting Party from another Contracting Party which are consigned directly within the meaning of rule 9 hereof, shall be eligible for preferential treatment if they conform to the origin requirement under any one of the following conditions:\u003C\/p\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EProducts wholly produced or obtained in the territory of the exporting Contracting Party as defined in rule 6; or\u003C\/li\u003E\u003Cli\u003EProducts not wholly produced or obtained in the territory of the exporting Contracting Party, provided that the said products are eligible under rule 7 or rule 8.\u003C\/li\u003E\u003C\/ul\u003E\u003Cdiv\u003E\u003Ch2\u003EWholly produced or obtained\u003C\/h2\u003E\u003C\/div\u003E\u003Cp\u003EWithin the meaning of rule 5(a), the following shall be considered as wholly produced or obtained in the territory of the exporting Contracting Party:\u003C\/p\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003Eraw or mineral products extracted from its soil, its water or its seabed;\u003C\/li\u003E\u003Cli\u003Evegetable products harvested there;\u003C\/li\u003E\u003Cli\u003Eanimals born and raised there;\u003C\/li\u003E\u003Cli\u003Eproducts obtained from animals referred to in clause (c) above;\u003C\/li\u003E\u003Cli\u003Eproducts obtained by hunting or fishing conducted there;\u003C\/li\u003E\u003Cli\u003Eproducts of sea fishing and other marine products from the high seas by its vessels3,4;\u003C\/li\u003E\u003Cli\u003Eproducts processed and\/or made on board its factory ships exclusively from products referred to in clause (f) above4,5;\u003C\/li\u003E\u003Cli\u003Eused articles collected there, fit only for the recovery of raw materials;\u003C\/li\u003E\u003Cli\u003Ewaste and scrap resulting from manufacturing operations conducted there;\u003C\/li\u003E\u003Cli\u003Eproducts extracted from the seabed or below seabed which is situated outside its territorial waters, provided that it has exclusive exploitation rights;\u003C\/li\u003E\u003Cli\u003Egoods produced there exclusively from the products referred to in clauses (a) to (j) above.\u003C\/li\u003E\u003C\/ul\u003E\u003Cdiv\u003E\u003Ch2\u003ENot wholly produced or obtained\u003C\/h2\u003E\u003C\/div\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EWithin the meaning of rule 5(b), products worked on or processed as a result of which the total value of the materials, parts or produce originating from countries other than the Contracting Parties or of undetermined origin used does not exceed 65% of the f.o.b. value of the products produced or obtained and the final process of manufacture is performed within the territory of the exporting Contracting Party shall be eligible for preferential treatment, subject to the provisions of clauses (b), (c), (d) and (e) of rule 7 and rule 8.\u003C\/li\u003E\u003Cli\u003ENon-originating materials shall be considered to be sufficiently worked or processed when the product obtained is classified in a heading, at the four digit level, of the Harmonised Commodity Description and Coding System different from those in which all the non-originating materials used in its manufacture are classified.\u003C\/li\u003E\u003Cli\u003EIn order to determine whether a product originates in the territory of a Contracting Party, it shall not be necessary to establish whether the power and fuel, plant and equipment, and machines and tools used to obtain such products originate in third countries or not.\u003C\/li\u003E\u003Cli\u003EThe following shall in any event be considered as insufficient working or processing to confer the status of originating products, whether or not there is a change of heading:\u003C\/li\u003E\u003Cli\u003EOperations to ensure the preservation of products in good condition during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations).\u003C\/li\u003E\u003Cli\u003ESimple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, cutting up;\u003C\/li\u003E\u003Cli\u003Echanges of packing and breaking up and assembly of consignments, simple slicing, cutting and repacking or placing in bottles, flasks, bags, boxes, fixing on cards or boards, etc., and all other simple packing operations.\u003C\/li\u003E\u003Cli\u003Esimple mixing of products, whether or not of different kinds, where one or more components of the mixture do not meet the conditions laid down in these Rules to enable them to be considered as originating products;\u003C\/li\u003E\u003Cli\u003Esimple assembly of parts of products to constitute a complete product;\u003C\/li\u003E\u003Cli\u003Ea combination of two or more operations specified in (a) to (f);\u003C\/li\u003E\u003Cli\u003Eslaughter of animals.\u003C\/li\u003E\u003Cli\u003EThe value of the non-originating materials, parts or produce shall be:\u003C\/li\u003E\u003Cli\u003EThe c.i.f. value at the time of importation of the materials, parts or produce where this can be proven; or\u003C\/li\u003E\u003Cli\u003EThe earliest ascertainable price paid for the materials, parts or produce of undetermined origin in the territory of the Contracting Parties where the working or processing takes place.\u003C\/li\u003E\u003Cli\u003ENot wholly produced or obtained\u003C\/li\u003E\u003C\/ul\u003E\u003Cdiv\u003E\u003Ch2\u003ECumulative rules of origin\u003C\/h2\u003E\u003C\/div\u003E\u003Cp\u003EIn respect of a product, which complies with the origin requirements provided in rule 5(b) and is exported by any Contracting Party and which has used material, parts or products originating in the territory of the other Contracting Party, the value addition in the territory of the exporting Contracting Party shall be not less than 25 per cent of the f.o.b. value of the product under export subject to the condition that the aggregate value addition in the territories of the Contracting Parties is not less than 35 per cent of the f.o.b. value of the product under export.\u003C\/p\u003E\u003Cdiv\u003E\u003Ch2\u003EDirect consignment\u003C\/h2\u003E\u003C\/div\u003E\u003Cp\u003EThe following shall be considered to be directly consigned from the exporting country to the importing country:\u003C\/p\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EIf the products are transported without passing through the territory of any country other than the countries of the Contracting Parties.\u003C\/li\u003E\u003Cli\u003EThe products whose transport involves transit through one or more intermediate countries with or without transhipment or temporary storage in such countries; provided that:\u003Cul class=\u0022list-type-circle ms-4\u0022\u003E\u003Cli\u003EThe transit entry is justified for geographical reason or by considerations related exclusively to transport requirements;\u003C\/li\u003E\u003Cli\u003EThe products have not entered into trade or consumption there; and\u003C\/li\u003E\u003Cli\u003EThe products have not undergone any operation there other than unloading and reloading or any operation required to keep them in good condition.\u003C\/li\u003E\u003C\/ul\u003E\u003C\/li\u003E\u003C\/ul\u003E\u003Cdiv\u003E\u003Ch2\u003ETreatment of packing\u003C\/h2\u003E\u003C\/div\u003E\u003Cp\u003EWhen determining the origin of products, packing should be considered as forming a whole with the product it contains. However, packing may be treated separately if the national legislation so requires.\u003C\/p\u003E\u003Cdiv\u003E\u003Ch2\u003ECertificate of origin\u003C\/h2\u003E\u003C\/div\u003E\u003Cp\u003EProducts eligible for a Certificate of origin in the form annexed shall support preferential treatment issued by an authority designated by the Government of the exporting country and notified to the other country in accordance with the certification procedures to be devised and approved by both the Contracting Parties.\u003C\/p\u003E\u003Cdiv\u003E\u003Ch2\u003EProhibitions\u003C\/h2\u003E\u003C\/div\u003E\u003Cp\u003EEither country may prohibit importation of products containing any inputs originating from States with which it does not have economic and commercial relations.\u003C\/p\u003E\u003Cdiv\u003E\u003Ch2\u003ECo-operation between contracting parties\u003C\/h2\u003E\u003C\/div\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EThe Contracting Parties will do their best to co-operate in order to specify origin of inputs in the Certificate of origin.\u003C\/li\u003E\u003Cli\u003EThe Contracting Parties will take measures necessary to address, to investigate and, where appropriate, to take legal and\/or administrative action to prevent circumvention of this Agreement through false declaration concerning country of origin or falsification of original documents.\u003C\/li\u003E\u003Cli\u003EBoth the Contracting Parties will co-operate fully, consistent with their domestic laws and procedures, in instances of circumvention or alleged circumvention of the Agreement to address problems arising from circumvention including facilitation of joint plant visits and contacts by representatives of both Contracting Parties upon request and on a case-by-case basis.\u003C\/li\u003E\u003Cli\u003EIf either Party believes that the rules of origin are being circumvented, it may request consultation to address the matter or matters concerned with a view to seeking a mutually satisfactory solution. Each party will hold such consultations promptly.\u003C\/li\u003E\u003C\/ul\u003E\u003Cdiv\u003E\u003Ch2\u003EReviews\u003C\/h2\u003E\u003C\/div\u003E\u003Cp\u003EThese rules may be reviewed as and when necessary upon request of either Contracting Party and may be open to such modifications as may be agreed upon.\u003C\/p\u003E\u003Cdiv\u003E\u003Ch2\u003ENotes\u003C\/h2\u003E\u003C\/div\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EIncludes mineral fuels, lubricants and related materials as well as mineral or metal ores.\u003C\/li\u003E\u003Cli\u003EIncludes agricultural and forestry products.\u003C\/li\u003E\u003Cli\u003E\u003Cp\u003E\u201cVessels\u201d shall refer to fishing vessels engaged in commercial fishing, registered in the country of the Contracting Party and operated by:\u003C\/p\u003E\u003Cul class=\u0022list-type-circle ms-4\u0022\u003E\u003Cli\u003EA citizen or citizens of the Contracting Party; OR\u003C\/li\u003E\u003Cli\u003EA partnership, corporation or association, duly registered in such country, at least 60% of equity of which is owned by a citizen(s) and\/or Government of such Contracting Party or 75% by citizens and\/or Governments of the Contracting Parties.\u003C\/li\u003E\u003C\/ul\u003E\u003Cp\u003EProducts taken from vessels under Bilateral Agreements (chartering\/leasing\/sharing catch) are also eligible for preferential treatment.\u003C\/p\u003E\u003C\/li\u003E\u003Cli\u003EFor vessels or factory ships operated by Government agencies, the requirements of flying the flag of the Contracting Party do not apply.\u003C\/li\u003E\u003Cli\u003E\u201cFactory ship\u201d means any vessel, as defined, used for processing and\/or making on board products exclusively from those products referred to in clause (f) of Rule 6.\u003C\/li\u003E\u003Cli\u003E\u201cCumulation\u201d (Rule 8) means that only products which have acquired originating status in the territory of one Contracting Party may be taken into account when used as inputs for a finished product eligible for preferential treatment in the territory of the other Contracting Party.\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2\u003ETo qualify for preference, products must:\u003C\/h2\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EFall within a description of products eligible for concessions in the country of destination under this agreement.\u003C\/li\u003E\u003Cli\u003EComply with ISFTA Rules of Origin (each Article in a consignment must qualify separately in its own right).\u003C\/li\u003E\u003Cli\u003EComply with the consignment conditions specified by the ISFTA Rules of Origin (in general products must be consigned directly within the meaning of Rule 9 from the country of exportation to the country of destination).\u003C\/li\u003E\u003C\/ul\u003E\u003Ch2\u003EEntries to be made in Box 8:\u003C\/h2\u003E\u003Cp\u003EPreference products must be wholly produced or obtained in the exporting Contracting Party in accordance with Rule 6, or where not wholly produced or obtained must be eligible under Rule 7 or Rule 8.\u003C\/p\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EProducts wholly produced or obtained enter the letter \u2018A\u2019 in box 8.\u003C\/li\u003E\u003Cli\u003EProducts not wholly produced or obtained; the entry in box 8 should be as follows:\u003C\/li\u003E\u003Cli\u003EEnter letter \u2018B\u2019 in box 8 for products, which meet the origin criterion according to Rule 7. Entry of letter would be followed by the sum of the value of materials, parts or produce originating from non-contracting parties or undetermined origin used, expressed as a percentage of the f.o.b. value of the products; (example B( ) percent).\u003C\/li\u003E\u003Cli\u003EEnter letter \u2018C\u2019 in box 8 for products, which meet the origin criteria according to Rule 8. Entry of letter \u2018C\u2019 would be followed by the sum of the aggregate content originating in the territory of the exporting Contracting Party expressed as a percentage of the f.o.b. value of the exported product: (example \u2018C\u2019 ( ) per cent).\u003C\/li\u003E\u003C\/ul\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C!-- \/.col-lg-12 --\u003E\u003C\/div\u003E\u003C!-- \/.row --\u003E\u003C\/div\u003E\u003C!-- \/.container --\u003E\u003C\/section\u003E","field_visit_page_link":"\/ministryofcommerce\/international-trade\/trade-agreements\/india-sri-lanka-fta\/free-trade-agreement-between-the-republic-of-india-and-the-democratic-socialist-republic-of-sri-lanka"},{"nid":"2127","title":"Letters of Exchange","body":"\u003Csection class=\u0022maincontent\u0022\u003E\u003Cdiv class=\u0022container\u0022\u003E\u003Cdiv class=\u0022row ft_africa-sec\u0022\u003E\u003Cdiv class=\u0022col-lg-12 col-md-12 col-sm-12\u0022\u003E\u003Cdiv class=\u0022ft-africa-box\u0022\u003E\u003Cdiv class=\u0022row\u0022\u003E\u003Cdiv class=\u0022col-lg-12 col-md-12 col-sm-12\u0022\u003E\u003Cdiv class=\u0022ft-africa-details\u0022\u003E\u003Ch2 class=\u0022subheading\u0022\u003ELetters of Exchange (2nd February, 2000)\u003C\/h2\u003E\u003Ch2\u003ECOMMERCE SECRETARY GOVERNMENT OF INDIA NEW DELHI-110011\u003C\/h2\u003E\u003Cp\u003EDear Dr. Jayasundera,\u003C\/p\u003E\u003Cp\u003EPursuant to Article XVI of the Free Trade Agreement between the Republic of India and the Democratic Socialist Republic of Sri Lanka, signed in New Delhi on 28th December 1998, and the agreement reached in subsequent discussions between the two Governments to continue negotiations on the Annexures to be finalised, notwithstanding the time-frame stipulated in the aforesaid Article, we have finalised and exchanged today the following Annexures which shall form an integral part of the Agreement:\u003C\/p\u003E\u003Ch2\u003EAnnexure D(i)\u003C\/h2\u003E\u003Cp\u003ENegative List of India\u003C\/p\u003E\u003Ch2\u003EAnnexure D(ii)\u003C\/h2\u003E\u003Cp\u003ENegative List of Sri Lanka\u003C\/p\u003E\u003Ch2\u003EAnnexure E\u003C\/h2\u003E\u003Cp\u003EItems on which India has undertaken to give 100% tariff concession on coming into force of the Agreement.\u003C\/p\u003E\u003Ch2\u003EAnnexure F(I)\u003C\/h2\u003E\u003Cp\u003EItems on which Sri Lanka has undertaken to give 100% tariff concession on coming into force of the Agreement.\u003C\/p\u003E\u003Ch2\u003EAnnexure F(II)\u003C\/h2\u003E\u003Cp\u003EItems on which Sri Lanka shall give a 50% margin of preference upon coming into force of the Agreement, with the margin subsequently being deepened to 70%, 90% and 100%, respectively, at the end of the first, second and third year of the entry into force of the Agreement.\u003C\/p\u003E\u003Ch2\u003EAnnexure A Para 1(b)\u003C\/h2\u003E\u003Cp\u003EItems in Chapters 51 to 56, 58 to 60 and 63 of the ITC-HS Code on which India has undertaken to give 25% tariff concession on coming into force of the Agreement.\u003C\/p\u003E\u003Cul class=\u0022list-type-disc\u0022\u003E\u003Cli\u003EPursuant to discussion between our two governments, the items related to tea are not in India\u2019s Negative List. However, import of tea from Sri Lanka to India on a preferential basis shall be subject to an annual maximum quota of up to 15 million Kg. on a fixed tariff concession of 50%.\u003C\/li\u003E\u003Cli\u003EFurther, in the interest of expansion and diversification of Sri Lanka\u2019s exports to India, garments under ITC-HS Chapters 61 and 62, while remaining in the Negative List {Annexure D(I)}, will be given 50% tariff concession on a fixed basis by the Government of India subject to an annual restriction of eight million pieces, of which six million pieces shall be extended the concession only if made of Indian fabric, provided that no category of garments shall exceed one and a half million pieces per annum.\u003C\/li\u003E\u003Cli\u003EAlso, pursuant to the discussion between our two governments, two items relating to cement (ITC-HS Codes 2523.21 and 2523.29) will remain on Sri Lanka\u2019s Negative List for the time being. The tariffs on these items would nevertheless be reduced progressively in such a manner, so that at the end of eight years from the date of entry into force of the Agreement, the items shall attract no duty and shall be phased out of the Negative List. It is noted that the present regime of there being no restrictions on the import of Indian cement into Sri Lanka would continue to be in effect.\u003C\/li\u003E\u003Cli\u003EThese understandings shall be deemed to be a part of the Agreement and shall enter into effect on the coming into force of the Agreement.\u003C\/li\u003E\u003Cli\u003EIt is also agreed that the Agreement will be notified to the WTO under the Enabling Clause (Decision of 28th November, 1979) which allows for such arrangements to be entered into among developing countries. We may decide on the timing of the notification to WTO after the Agreement enters into force.\u003C\/li\u003E\u003Cli\u003EI shall be grateful for an acknowledgement of this letter by the Government of the Democratic Socialist Republic of Sri Lanka. This letter and your acknowledgement thereto shall complete the process of finalisation of Annexures under Article XVI of the Agreement.\u003C\/li\u003E\u003C\/ul\u003E\u003Cp\u003EYours sincerely,\u003C\/p\u003E\u003Cp\u003E\u003Cstrong\u003EP.P. Prabhu\u003C\/strong\u003E\u003C\/p\u003E\u003Cp\u003EDr. P.B. Jayasundera\u003Cbr\u003ESecretary\u003Cbr\u003EMinistry of Finance \u0026amp; Planning \u0026amp; Secretary to the Treasury\u003Cbr\u003EGovernment of the Democratic Socialist Republic of Sri Lanka\u003Cbr\u003EColombo.\u003C\/p\u003E\u003Ch2\u003EMINISTRY OF FINANCE AND PLANNING The Secretariat, Colombo 01\u003C\/h2\u003E\u003Cp\u003EDear Shri Prabhu,\u003C\/p\u003E\u003Cp\u003EI have the honour to acknowledge the receipt of your letter of 2nd February, 2000 which reads as follows :\u003C\/p\u003E\u003Cblockquote\u003E\u003Cp\u003EQuote\u003C\/p\u003E\u003Cp\u003E[Full text of the letter from Shri Prabhu, as above]\u003C\/p\u003E\u003Cp\u003EYours sincerely,\u003Cbr\u003E\u003Cstrong\u003ESgd. P.P. Prabhu\u003C\/strong\u003E\u003C\/p\u003E\u003Cp\u003EUnquote\u003C\/p\u003E\u003C\/blockquote\u003E\u003Cp\u003EIn reply, I have the honour to confirm that the proposal in your letter is acceptable to the Government of the Democratic Socialist Republic of Sri Lanka. I wish to further confirm that your letter under reference and this acknowledgement thereto, shall complete the process of finalization of Annexures under Article XVI of the Agreement and that these understandings shall be deemed to be part of the Agreement and shall enter into effect on the coming into force of the Agreement.\u003C\/p\u003E\u003Cp\u003E\u003Cstrong\u003EYours sincerely,\u003C\/strong\u003E\u003Cbr\u003E\u003Cstrong\u003ESgd. (P.B. Jayasundera)\u003C\/strong\u003E\u003Cbr\u003E\u003Cstrong\u003ESecretary, Ministry of Finance \u0026amp; Planning and Secretary to the Treasury\u003C\/strong\u003E\u003C\/p\u003E\u003Cp\u003EShri P.P. Prabhu\u003Cbr\u003ECommerce Secretary\u003Cbr\u003EMinistry of Commerce and Industry\u003Cbr\u003EGovernment of India\u003Cbr\u003ENew Delhi.\u003C\/p\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/section\u003E","field_visit_page_link":"\/ministryofcommerce\/international-trade\/trade-agreements\/india-sri-lanka-fta\/letters-of-exchange-2nd-february-2000"},{"nid":"2128","title":"Minutes of the meeting on Tariff Rate Quota arrangement for tea and garments","body":"\u003Csection class=\u0022maincontent\u0022\u003E\u003Cdiv class=\u0022container\u0022\u003E\u003Cdiv class=\u0022row ft_africa-sec\u0022\u003E\u003Cdiv class=\u0022col-lg-12 col-md-12 col-sm-12\u0022\u003E\u003Cdiv class=\u0022ft-africa-box\u0022\u003E\u003Cdiv class=\u0022row\u0022\u003E\u003Cdiv class=\u0022col-lg-12 col-md-12 col-sm-12\u0022\u003E\u003Cdiv class=\u0022ft-africa-details\u0022\u003E\u003Ch2 class=\u0022subheading\u0022\u003EMinutes of the Meeting held between the Government of the Republic of India and the Government of the Democratic Socialist Republic of Sri Lanka on 18-19 April 2000 in New Delhi\u003C\/h2\u003E\u003Cp\u003EThe Government of the Republic of India and the Government of the Democratic Socialist Republic of Sri Lanka had signed a Free Trade Agreement (FTA) on the 28th December 1998.\u003C\/p\u003E\u003Cp\u003EA meeting between the Commerce Secretary, Government of India and the Secretary, Treasury, Government of Sri Lanka was held on 2nd February 2000 in New Delhi to operationalise the FTA. In the minutes signed on 2nd February 2000 it was decided \u003Cem\u003E\u201cboth sides agreed that the Tea Boards of India and Sri Lanka should meet within a month and finalise issues such as method for allocation of quota, monitoring mechanism, authorised signatories for issue of Certificate of Origin and other related procedural matters.\u201d\u003C\/em\u003E It was also decided \u003Cem\u003E\u201cboth sides agreed that the nodal agencies of India and Sri Lanka should meet within a month and finalise all issues including revised format of Certificate of Origin for export of Sri Lankan garments into India under the Agreement, authorised signatories for issue of Certificate of Origin and other related procedural matters so as to ensure immediate operationalisation of the quota mechanism.\u201d\u003C\/em\u003E\u003C\/p\u003E\u003Cp\u003EPursuant to the above decisions, delegations from the Government of the Republic of India and the Government of the Democratic Socialist Republic of Sri Lanka met in New Delhi on 18 \u2013 19 April 2000. The Indian side was led by \u003Cstrong\u003EMrs. Rathi Vinay Jha\u003C\/strong\u003E, Additional Secretary, Department of Commerce, Ministry of Commerce \u0026amp; Industry and the Sri Lankan side was led by \u003Cstrong\u003EMr. A. Andrew De Silva\u003C\/strong\u003E, Secretary, Ministry of Plantation Industries. The composition of the two delegations is at \u003Cstrong\u003EAnnexure \u2013 I\u003C\/strong\u003E.\u003C\/p\u003E\u003Cp\u003EDuring the inaugural meeting, two Sub-Committees were formed to finalise the arrangements for operationalisation of Tariff Rate Quota (TRQ) exports of tea and garments under the FTA. The agreed minutes of the Sub-Committee on tea signed on 19th April 2000 is at \u003Cstrong\u003EAnnexure \u2013 II\u003C\/strong\u003E. The agreed minutes of the Sub-Committee on garments signed on 19th April 2000 is at \u003Cstrong\u003EAnnexure \u2013 III\u003C\/strong\u003E.\u003C\/p\u003E\u003Cp\u003EBoth sides agreed to implement steps to bring these arrangements into effect at the earliest.\u003C\/p\u003E\u003Cdiv class=\u0022row mt-4\u0022\u003E\u003Cdiv class=\u0022col-lg-6 col-md-6 col-sm-12\u0022\u003E\u003Cp\u003E\u003Cstrong\u003EOn behalf of the Indian side\u003C\/strong\u003E\u003Cbr\u003ERathi Vinay Jha\u003Cbr\u003EAdditional Secretary\u003Cbr\u003EDepartment of Commerce\u003Cbr\u003EMinistry of Commerce \u0026amp; Industry\u003Cbr\u003EGovernment of India\u003Cbr\u003E\u003Cem\u003E19-04-2000\u003C\/em\u003E\u003C\/p\u003E\u003C\/div\u003E\u003Cdiv class=\u0022col-lg-6 col-md-6 col-sm-12\u0022\u003E\u003Cp\u003E\u003Cstrong\u003EOn behalf of the Sri Lankan side\u003C\/strong\u003E\u003Cbr\u003EA. Andrew De Silva\u003Cbr\u003ESecretary\u003Cbr\u003EMinistry of Plantation Industries\u003Cbr\u003EGovernment of Sri Lanka\u003Cbr\u003E\u003Cem\u003E19-04-2000\u003C\/em\u003E\u003C\/p\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C!-- ft-africa-details --\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/section\u003E","field_visit_page_link":"\/ministryofcommerce\/international-trade\/trade-agreements\/india-sri-lanka-fta\/minutes-of-the-meeting-on-tariff-rate-quota-arrangement-for-tea-and-garments"},{"nid":"2129","title":"PRESS RELEASE","body":"\u003Csection class=\u0022maincontent\u0022\u003E\u003Cdiv class=\u0022container\u0022\u003E\u003Cdiv class=\u0022row ft_africa-sec\u0022\u003E\u003Cdiv class=\u0022col-lg-12 col-md-12 col-sm-12\u0022\u003E\u003Cdiv class=\u0022ft-africa-box\u0022\u003E\u003Cdiv class=\u0022row\u0022\u003E\u003Cdiv class=\u0022col-lg-12 col-md-12 col-sm-12\u0022\u003E\u003Cdiv class=\u0022ft-africa-details\u0022\u003E\u003Ch2 class=\u0022subheading\u0022\u003EPress Release\u003C\/h2\u003E\u003Cdiv class=\u0022cardContentTwo\u0022\u003E\u003Cp\u003EIndia and Sri Lanka signed the Free Trade Agreement on \u003Cstrong\u003E28th December 1998\u003C\/strong\u003E and further discussions were held between India and Sri Lanka on \u003Cstrong\u003E2nd February 2000\u003C\/strong\u003E in New Delhi. The Agreement provides duty free market access to both the countries on a preferential basis in a phased manner. India has also agreed to permit limited quantities of imports of tea and garments from Sri Lanka. Tea quota will be \u003Cstrong\u003E15 million kilogram\u003C\/strong\u003E per annum and garments \u003Cstrong\u003E8 million pieces\u003C\/strong\u003E.\u003C\/p\u003E\u003Cp\u003EIndian and Sri Lankan delegations finalised the procedures for effective monitoring of the tea and garments quota today in New Delhi. The Indian delegation was led by \u003Cstrong\u003EMrs. Rathi Vinay Jha\u003C\/strong\u003E, Additional Secretary, Department of Commerce, Ministry of Commerce \u0026amp; Industry and the Sri Lankan side by \u003Cstrong\u003EMr. A. Andrew De Silva\u003C\/strong\u003E, Secretary, Ministry of Plantation Industries.\u003C\/p\u003E\u003Cp\u003EFor tea, the nodal agencies would be the Tea Boards of both the countries and for garments the nodal agencies would be the Textile Committee in Mumbai and Textiles Division of the Ministry of Industrial Development, Colombo. To facilitate effective monitoring of the quotas, both the Governments decided that for tea, exports will be through the air and sea ports in \u003Cstrong\u003ECalcutta\u003C\/strong\u003E and \u003Cstrong\u003ECochin\u003C\/strong\u003E, whereas for garments, it will be \u003Cstrong\u003EMumbai\u003C\/strong\u003E and \u003Cstrong\u003EChennai\u003C\/strong\u003E.\u003C\/p\u003E\u003Cp\u003EThe Free Trade Agreement is expected to boost the bilateral trade between India and Sri Lanka and also consolidate the close economic, commercial and political relations between the two countries through increased trade and investments. As of now, India is one of the largest exporters to Sri Lanka and the trade balance is heavily in favour of India.\u003C\/p\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/section\u003E","field_visit_page_link":"\/ministryofcommerce\/international-trade\/trade-agreements\/india-sri-lanka-fta\/press-release"}]