India, Lanka sign MoU on Tariff Rate Quota

NEW DELHI: India and Sri Lanka on Friday signed an MoU to finalise procedures for operationalising the Tariff Rate Quota (TRQ), under which Colombo will enjoy duty-free export of three million apparel pieces to its neighbour.

As per the India-Sri Lanka Free Trade Agreement that came into force on March 1, 2000, the Island nation can export to India in one calendar year, three million pieces of apparel articles covered under the FTA, on duty free basis and without any restriction on entry points and sourcing of fabrics.

The MoU was signed by Joint Secretary in the Ministry of Textiles Qaiser Shamim and Additional Secretary in the Sri Lankan Ministry of Textiles Industries W D Jayasinghe, an official release said.

Under the MoU, the Textile Quota Board and Department of Commerce, Sri Lanka would be the nodal agency for issuance of quota and certificate of origin for apparel articles export. From India, the Textiles Committee would monitor the TRQ parameters, it said.