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Indo Sri Lanka Free Trade Agreement — Operational modalities

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..... d ready-made garments, for which the concession is not limited to any stipulated quantity. 3.0 Notification No. 60/2000-Customs and 26/2000-Customs grant partial exemption from the tariff rate of import duty to a tea and ready-made garments respectively, subject to the condition that the importer observes the relevant procedures that may be prescribed under the ISLFTA. It has been decided that the following appurtenant procedures will be complied with for operating the preferential TRQ in respect of tea and ready-made garments; 4.0 Tea : 4.1.0 Quota allocation : 4.1.1 The Tea Board of Sri Lanka, Colombo, will allocate the quota amongst the exporters of tea in Sri Lanka and immediately thereafter inform the Tea Board of India about the name and addresses of the Sri Lankan exporter and the Indian importers thereof, the quota quantities allocated, as well as the port of entry thereof into India. The Tea Board of Sri Lanka shall also issue, in the proforma enclosed herewith as Annexure - A, a certificate of quota allocation to each exporter indicating the quantity allocated. The certificate of origin for such shipments, as indicated in the enclosed Annexure 'B', .....

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..... release the same on obtaining an undertaking from the importer(s) to the effect that in the event of an adverse sample test result, the impugned goods shall be surrendered in toto and that the Indian importers concerned shall be liable to penal action under the provisions of the Customs Act in force in India. In a case where the T.B.I has specifically advised the concerned Customs authorities to detain a tea consignment(s) pending the outcome of the test of the sample(s) concerned, the jurisdictional Customs authorities may allow to the importer an option of bonding the consignment(s) concerned under Section 49 of the Customs Act, to guard against an incurring of demurrage in the intervening period. In all those cases where penal action has been initiated by Customs authorities, the Tea Board of Sri Lanka shall be kept appraised by its Indian counterpart. 4.4.5 If a consignment of tea originating from Sri Lanka is off-loaded at a port or airport in India other than the designated port of airport, the Customs authorities concerned shall be at liberty to levy the applicable normal tariff rate of duty, without allowing the otherwise admissible tariff concession under these arra .....

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..... ded subject to the transferee also being a manufacturer-exporter. The Designated Authority in Sri Lanka will ensure that there is a one-to-one co-relation between the RMG articles exported from Sri Lanka by a manufacturer-exporter and the fabrics imported from India for the manufacture of such apparel articles. For this purpose, the conversion factors (adopted from the European Union/United States of America models) in respect of the ratio, in unit terms, of the fabrics exported from India to the garments manufactured thereof in Sri Lanka and exported consequently to India, as also indicated in Annexure-C, will be taken into account by the designated authority of Sri Lanka while certifying that the apparel articles exported from Sri Lanka into India correspond thus with the quantity of fabrics imported from India. For instance, a manufacturer-exporter of apparel articles in Sri Lanka will have to import from India and use 100 Kgs. of fabrics for the manufacture and export resultantly to India of 648 pcs. of category 1 apparel articles mentioned in Annexure-C. 5.5 For the RMG articles exported by Sri Lanka into India on preferential import duty, the concerned Designated Author .....

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..... ficate of Origin issued by the designated agency of Sri Lanka for the concerned shipment. These original documents will be retained by the Customs authorities, amongst other things, will be retained by the Customs authorities for deviding the due quantity of quota cleared under such consignment through the respective seaport/air cargo complex. 5.8 The date of the 'Bill of Lading'/'Air Way Bill' issued in Sri Lanka in respect of the consignment of PMG articles exported from Sri Lanka to India will be taken as the relevant date for reckoning the preferential tariff quota year under these arrangements. 5.9 There will be no provision for the carry-forward (to a preceding year) or carry-over (to the succeeding year) of quota from a given year. 5.10 High-sea sales of the RMG articles consignments (from Sri Lanka to India) will not be allowed, since the export of such articles is enjoined to be effected by a manufacturer-exporter and as the Country of Origin Certificate and the Tariff Rate Quota Certificate issued by the designated authorities in Sri Lanka are importer specific. 5.11 In the event of any contingency relating to an import consignment of RMG articles .....

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..... trol carried out that the declaration by the exporter is correct. (Country) ………………………………………. Place and date, signature and stamp of certifying authority and that they comply with the origin requirements specified for those goods in ISLFTA for goods exported to ……………………………………… (Importing Country) ……………………………………. place and date, signature of the authorised signatory ANNEXURE - C List of the product category description [under Chapter 61 and 62 of the Harmonized System of Nomenclature (HSN) ] and conversion factor for the import of apparel articles from Sri Lanka into India Cate-gory Product description Conversion factor (1) (2) (3) 1. Shirts, T-shirts, highweight tine knit roll, polo or turtle necked jumpers and pullovers (other than of wool or fine animal hair), undervests and the like knitted or chrocheted. 6.48 Pcs./Kg. 2. Jerseys, pullovers, slipovers, wai .....

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..... , bathrobes, dressing gown and similar articles, knitted or crocheted. 3.9 Pcs./Kg. Women's or girls' nightdresses, payjamas, negliges, bathrobes, dressing gowns and similar articles, knitted or crocheted. 17. Women's or girls' dresses, of wool, of cotton or of man-made fibres. 3.10 Pcs./Kg. 18. Women's or girls' skirts, including divided skirts. 2.60 Pcs./Kg. 19. Trousers, bib and brace overalls, breeches and shorts (other than swimwear) knitted or crocheted, of wool, of cotton or man-made fibres. 1.61 Pcs./Kg. 20. Women's or girls' suits and ensembles other than knitted or crocheted, of wool, of cotton or man-made fibres, excluding ski-suits. 1.37 Pcs./Kg. 21. Brassieres, woven, knitted or crocheted 18.2 Pcs./Kg. 22. Babies garments and clothing accessories excluding babies gloves, mittens and mitts of categories 6 and 36, and babies' stockings, socks and sockettes, other than knitted or crocheted of category 37. 6.30 M2 /Kgs. 23. Women's or girls' slips and petticoats knitted or crocheted. 7.8 Pcs./Kg. 24. Panty-hose (tights) of synthetic fibres, measuring per single yarn less than 67.67 decitex (6.7 tex). Women's stockings of synthetic fibres 30.4 Pai .....

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..... hat all the goods were produced in……..…………………………………….. (Country) 12. Certificate : It is hereby certified, on the basis of control carried out that the declaration by the exporter is correct. ………………………………… and that they comply with the origin requirements specified for those goods in ISLFTA for goods exported to ………………………………………. (Importing Country) Place and date, signature and stamp of certifying authority. ……………………………………………. Place and date, signature of the authorised signatory Annex.-1 Declaration by the exporter of Sri Lanka for export of Garments under FTA (To be filled only in cases where condition of sourcing of fabric from India is applicable) It is certified that the goods exported are manufactured from the fabrics of Indian origin, the .....

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..... port invoice No. & date        Bill of lading/Airway Bill No. & date Description Quality Value of fabric 5. …….. of exports 6. Bill of entry No. Date Port of import in Sri Lanka Part-B : Details of exports of garments 1. Name & Address of Sri Lankan Exporter of Garments 2. Name & Address of Indian Importer of Garments 3. Category No. 4. Quota Year 5. Quantity in Pcs. 6. FOB value 7. Description of Goods 8. Marks & Nos. on Shipping packages 9. Mode of Transport and Port of Loading 10. Remarks if any Explanation : In case the name of Sri Lankan exporter in Part I of part-B is different from that of Sri Lankan Importer at Box 2 of Part-A, the details of regarding one to one correspondence in respect of materials versus finished product are to be given : Part-C : Quota details and certification It is hereby certified that with this consignment, the position regarding garment quota is as follows : (i) Total quota for this category : _____________ in pcs. (i) Total quota for this category at Chennai/Mumbai port : ____________ in pcs. (ii) Less this consignment : ____________ in pcs. (ii) Less this consignment : __ .....

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