The Sri Lankan government grants tariff concessions for exports from India to Sri Lanka for goods freely admitted to Sri Lanka, as described below: Zero duty for Schedule F – I positions after the agreement enters into force. Preferred margin of 50% for points in Schedule "F" – II after the agreement comes into force. The preferential margin for these items is increased to 70% and 100% respectively at the end of the first, second and third years of the agreement`s entry into force. For other items other than those in Schedule D, rates are reduced by at least 35% before three years and by 70% before the end of the sixth year and by 100% before the effective date of the agreement before the end of the sixth year and by 100% before the effective date of the agreement. Contracting parties are free to apply their domestic legislation to limit imports when prices are influenced by unfair trade practices such as subsidies or dumping. Subsidies and dumping mean that they have the same meaning as in the 1994 General Agreement on Tariffs and Trade and in the relevant WTO agreements. 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 may be amended or amended by mutual agreement between the parties. Proposals for these amendments or amendments are submitted to the Joint Committee and, after adoption by the Joint Committee, are approved in accordance with the applicable legislation of each party.
These amendments or amendments come into effect when confirmed by an exchange of diplomatic notes and are an integral part of the agreement. However, if, in the event of an emergency, proposals for amendments can be considered by the parties and, if agreed, implemented through the exchange of diplomatic notes. Explanation. – for the purposes of this notification, "preferential treatment" for each product is the exemption granted under the Indian government`s communication to the Ministry of Finance (Ministry of Finance), No. 26/2000 of 1 March 2000, and includes preferential concessions. (i) the crossing is justified for geographical reasons or by considerations related exclusively to transportation needs; (ii) products are not marketed or consumed; and (iii) the products have not undergone any operation other than unloading and transloading or an operation necessary to keep them in good condition. 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. Where a product subject to preferential treatment under this agreement is imported into the territory of a contracting party in a manner or in quantities that cause or threaten to cause serious harm to the importing party, the importing party may, after prior consultation, except in critical circumstances, temporarily and indiscriminately suspend the preferential treatment granted under the agreement.