The Government of India shall grant duty-free access to all exports from Sri Lanka in respect of goods freely imported into India, with the exception of the items listed in Annex D to this Agreement, in accordance with the progressive separation schedule set out below:- Duty-free access for goods listed in Annex `E`, preferential margin of 50% for other products, with the exception of articles listed in Annex D. Posts in chapters 51 to 56, 58 to 60 and 63 are limited to 25%. The preferential margin for the items referred to in point (b) shall be increased to 100% in two stages within three years of the entry into force of the Agreement, with the exception of the textile products referred to in point 1(b). 3. In the event of circumvention or alleged circumvention of the Agreement, both Parties shall cooperate fully and in accordance with their national laws and procedures in order to resolve the problems arising from the circumvention, including the facilitation of joint factory visits and contacts between representatives of both Parties upon request and on a case-by-case basis. (a) are covered by a description of the products which may be the subject of concessions in the country of destination under this Agreement; (i) the transit is justified for geographical reasons or by considerations related exclusively to transport requirements; (ii) the products have not been marketed or consumed there; and (iii) the products have not undergon any treatment other than unloading and transhipment or any operation necessary to keep them in good condition. The agreement may be amended or supplemented by mutual agreement between the parties. Proposals for such amendments or additions shall be submitted to the Joint Committee and, after adoption by the Joint Committee, shall be approved in accordance with the applicable legal procedures of each Party. Such amendments or additions shall take effect if confirmed by an exchange of diplomatic notes and shall form an integral part of the Agreement. However, in emergency situations, proposed amendments may be considered by the Parties and, if agreed, take effect through the exchange of diplomatic notes. The Parties agree to establish a free trade area for the free movement of goods between their countries by abolishing customs duties on trade in goods, in accordance with the provisions of Annexes A and B which form an integral part of this Agreement.

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