India and Sri Lanka have agreed to a deal on eliminating tariffs on some clothing items.

The two nations signed a memorandum of understanding (MoU) to finalize the procedures for "operationalisation of the Tariff Rate Quota (TRQ)" for import of three million pieces of apparel pieces duty free, according to a statement by India's government. This MoU is in line with the existing bilateral free trade agreement between the two countries.

Under the India-Sri Lanka Free Trade Agreement, Sri Lanka can export to India, in a calendar year, three million pieces of apparel articles on duty free basis. That is also without restriction on entry points and sourcing of fabrics.

The MoU was signed by Joint Secretary of the India's Textile Ministry Qaiser Shamim and Additional Secretary of the Sri Lankan Ministry of Textile Industries W D Jayasinghe, the statement said.

Under the MoU, the Textile Quota Board and Department of Commerce of Sri Lanka has been designated as authority for issuance of quota and certificate of origin for the export of apparel articles from the country to India. And, in the case of India, the Textiles Committee has been nominated to monitor the TRQ parameters.

Mr. Divya Aggarwal

Money Management Consultants Ltd

Senior Copy Editor, Money Management Consultants Ltd
New Delhi, India

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