As the 2nd bilateral FTA of Sri Lanka, the framework agreement of PSFTA was signed on the 01st August 2002 and the PSFTA came into operation from 12th June 2005. In accordance with the respective commitments under the PSFTA, Pakistan has implemented its final phasing out in March 2009, whereas Sri Lanka has completed its phasing out commitments in November 2010.

PSFTA- at a glance

Product Coverage by Pakistan

Product CoverageDescriptionApplicable Customs Duty
 (i). No Concession List  541 Tariff Lines at 6-digits level  General duty rates
 (ii). 100% Immediate Duty Reduction w.e.f 12.06.2005  206 Tariff lines at 6-digit level  Zero 
 (iii). Phasing out(other than i and ii above )
 Upon entering into force reduce basic customs duties not less than by34% (12.06.2005)  
 At the end of the second year, increase customs duty reduction to 67%  
 At the end of third year increase customs duty reduction to 100%  
(iv). Tariff Rate Quota at Zero Duty   
Tea

10,000 MTs per year at zero duty (01 July to 30 June)

 Zero
 (v). Tariff Rate Quota with a Margin of Preference (MOP)   
 Apparel-21 Tariff Lines

3 million pieces of garments with a maximum quantity of 200,000 pieces per tariff line

(01 July to 30 June)

35% -MOP

 Betel Leaves

Originally 1200 MTs/year with a MOP of 35%

At present this quota(1200 MTs) is not administered strictly
 

72% -MOP

 (vi). Tariff Lines with a Margin of Preference (MOP)   
 HS 6907.20  Ceramic flags and paving, hearth or wall tiles; ceramic mosaic cubes and the like, whether or not on a backing; finishing ceramics: Flags and paving, hearth or wall tiles, other than those of subheadings 690730 and 690740: Of a water absorption coefficient by weight not exceeding 0.5 %  20% MOP
 HS 6907.22    Ceramic flags and paving, hearth or wall tiles; ceramic mosaic cubes and the like, whether or not on a backing; finishing ceramics: Flags and paving, hearth or wall tiles, other than those of subheadings 690730 and 690740: Of a water absorption coefficient by weight exceeding 0,5 % but not exceeding 10 %  20% MOP
 HS 6907.23  Ceramic flags and paving, hearth or wall tiles; ceramic mosaic cubes and the like, whether or not on a backing; finishing ceramics: Flags and paving, hearth or wall tiles, other than those of subheadings 690730 and 690740: Of a water absorption coefficient by weight exceeding 10 %  20% MOP
 

HS 690730

 Ceramic flags and paving, hearth or wall tiles; ceramic mosaic cubes and the like, whether or not on a backing; finishing ceramics: Mosaic cubes and the like, other than those of subheading 690740  20% MOP
 HS 691110
 Tableware, kitchenware, other household articles and toilet articles, of porcelain or china: Tableware and kitchenware  20% MOP
 HS 691190
 Tableware, kitchenware, other household articles and toilet articles, of porcelain or china: Other  20% MOP
HS 6914.10 Other ceramic articles: Of porcelain or china 20% MOP

 

Product Coverage by Sri Lanka

Product Coverage Descriptions Current Applicable Customs Duty
(i). No Concession List 697 Tariff Lines at 6- digits level General duty rates
(ii).100% Immediate Duty Reduction w.e.f.12.06.2005 102 Tariff Lines at 6- digits level Zero
(iii).Phasing Out List of Sri Lanka(other than i and ii above) Upon entering into force ,reduce basic customs duties by not less than 20% (12.06.2005) -
At the end of first year increase customs duty reduction to 30% -
At the end of the second year increase customs duty reduction  to 40% -
At the end of the third year increase customs duty reduction to 60% -
At the end of the fourth year increase customs duty reduction to 80% -
At the end of the fifth year increase -
customs duty reduction to 100% -
 (iv).Tariff Lines with Tariff Rate Quota at zero duty   
 Long grain rice(Basmati)  6,000 MTs per year  Zero

Potatoes

In the recent years, no imports of potatoes were made under the quota
1,000 MTs per year2/3rd during June – July and 1/3rd during October – November  Zero

 

Rules of Origin (ROO) Criteria under the PSFTA

There are key ROO criteria as "wholly obtained or produced" vs the products which are
"not wholly produced". Requirements of ROOs under "not wholly produced" are as follows:
1. Minimum Domestic Value Addition (DVA): 35% of FOB and when it is applicable to Cumulative Rules of Origin there should be a minimum DVA of 25%, subject to the Aggregate Value Addition of 35%
2. Change of Tariff Sub-Heading (CTSH) or at HS 6-digit level
3. And there should be a sufficient working or processing or should not be an in sufficient working.

For the products that are eligible for tariff concession from Pakistan under PSFTA, you may check the List of Concession attached.

Pl. visit the following website of Sri Lanka for the PSFTA duty concessions and other tariff information of Sri Lanka: http://www.customs.gov.lk/classification/tarrif

For further information, you may contact Ms. Chandima Kiriwandala, Deputy Director of Commerce, Department of Commerce on Tel 011- 2329733, Ext, 229, Email: இந்த மின்-அஞ்சல் முகவரி spambots இடமிருந்து பாதுகாக்கப்படுகிறது. இதைப் பார்ப்பதற்குத் தாங்கள் JavaScript-ஐ இயலுமைப்படுத்த வேண்டும்.

 

 

Statistical Analysis