Sri Lanka to get 100% duty concessions on 6mn apparel & clothing pieces

22 Jun '05

2 min read

Under existing FTA agreement, India will grant additional concessions to Sri Lanka in the clothing and apparel sector. India makes a decision to eliminate the current annual restriction of 1.5 million pieces of clothing per category.

New Delhi has also decided to provide 100 percent duty concessions on six million pieces of apparel and clothing, which is allowed to be imported from Sri Lanka as per the tariff quota agreement signed by the two countries. Tariff concession on the six million pieces was 75 per cent so far.

Textiles Ministry Officials informed that the decision for additional concessions had been taken at a bilateral meeting in the month of February this year. The revenue department was likely no notifying the concessions this week.

The tariff concessions on additional two million pieces would also raised from 50 to 75 percent, the officials added.

India has permitted concessions on imports of eight million pieces of clothing and apparel per year from Sri Lanka under the tariff rate quota, but the addition concessions has a clause, that the fabric would have to be imported from India.

The decision of providing additional concessions was doubtful to have any unfavorable crash on the domestic industry, because Sri Lanka was not even capable to utilize the presented quota, officials added.

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