India Sri Lanka Free Trade Agreement (ISFTA)

Country / jurisdiction: Sri Lanka · Year: 2000 · Status: In force · Level: International · Type: Voluntary

The India-Sri Lanka Free Trade Agreement (ISFTA) entered into force on March 1, 2000. The agreement only covers the trade in goods. It provides for the reduction and elimination of import tariffs, but does not provide for the elimination of non-tariff barriers.

This includes most energy products and its constituents including but not limited to:

Electric motors, turbines and generators;

Mechanical equipment including pumps, appliances, and other advanced machinery;

Electric accumulators, transformers, capacitors, batteries; Motor vehicles;

Mineral ore, slag and ash;

Mineral fuels, oils and other products;

Metals and their articles e.g. iron and steel;

Semiconductors devices and photovoltaic cells.

Rules of origin and local content requirements apply, by which "Minerals and other naturally occurring substances” are considered wholly obtained or produced in the originating territory of the relevant party. All other goods are considered originating from India or Sri Lanka provided:

i)              Non-originating materials used in the production of the good have undergone a tariff reclassification under the tariff sub-heading level of the Harmonized System; or,

ii)             The qualifying value content of the good does not exceed more than 60% of the FOB value.

Official source: https://commerce.gov.in/international-trade/trade-agreements/india-sri-lanka-fta/