Overview

விவரங்கள்
பிரிவு: Pakistan-Sri Lanka Free Trade Agreement (PSFTA)

As the 2nd bilateral Free Trade Agreement (FTA) of Sri Lanka, the framework agreement of Pakistan- Sri Lanka Free Trade Agreement (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, allowing Sri Lanka a duty-free market access for more than 4500 products. Sri Lanka has completed its phasing out commitments in November 2010.

PSFTA- at a glance

Product Coverage of the PSFTA for Tariffs Concessions:

Type of commitment

By Pakistan

By Sri Lanka

  

Description

Applicable Customs Duty

Description

Applicable Customs Duty

 

No Concession List

541 Tariff Lines at 6 digits

General duty rates

697 Tariff Lines at 6 digits

General duty rates

  

100% immediate duty reduction ( w.e.f. 12.06.2005)

206 Tariff Lines at 6 digits

Zero

102 Tariff Lines at 6 digits

Zero

 

Phasing Out Lists

-      Upon entering into force not less than 34% (12.06.2005)

-      At the end of the second year not less than 67%

-      At the end of third year not less than 100%

-         

-          Upon entering into force not less than 20% (12.06.2005)

-          At the end of first year not less than 30%

-          At the end of the second year not less than 40%

-          At the end of the third year not less than 60%

-          At the end of the fourth year not less than 80%

-          At the end of the fifth year not less than 100%

-         

 

Tariff Rates Quotas (TRQs)

Apparel:

-      3 million pieces of garments with a maximum quantity of 200,000 pieces per category

-      21 categories

MOP – 35%

Basmati:

-       Duty free 6,000 MT per year

Zero

  

Potatoes:

-       Duty free 1,000 MT per year

-       2/3rd during June – July and 1/3rd during October – November

Zero

  

Tea:

-      Duty free 10,000 MT per year (July/ June)

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”.

There are 03 requirements of ROOs under “not wholly produced”, 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

 

Statistical Analysis