CUS CIR NO. 22/2007 DATE 05/06/2007
Removal of port restrictions on import of Tea from Sri Lanka under India-Sri Lanka Free Trade Agreement vide Notification No.75/2007-Cus. dated 5th June 2007 regarding procedure to be followed for monitoring of Tariff Rate Quota (TRQ)-regarding/-
I am directed to refer to Notification No. 75/2007-Customs dated 5th June 2007 regarding removal of port restrictions on import of tea from Sri Lanka under the India-Sri Lanka Free Trade Agreement (ISLTA) subject fulfillment of Rules of Origin criteria.
2. The monitoring mechanism for TRQ imports of tea from Sri Lanka under ISLFTA was agreed in the meeting held between the Government of India and Government of Sri Lanka on 18-19 April 2000 (copy of the Minutes enclosed). The said monitoring mechanism shall continue even after removal of port restrictions for import of tea from Sri Lanka under ISLFTA.
3. Chief Commissioners are requested to direct all officials under their charge to strictly comply with the monitoring mechanism referred to above. Chief Commissioners shall also forward details of imports of tea under ISLFTA to the Directorate General of Systems, Customs & Central Excise, New Delhi. Customs ports having EDI facility shall provide the information to DG, Systems online, while non-EDI locations may do so electronically.
5. Directorate General of Systems, Customs & Central Excise, New Delhi will maintain record of import of tea from Sri Lanka under ISLFTA and ensure that the total quantity imported in a year does not exceed the TRQ. The Directorate General of Systems, Customs & Central Excise, New Delhi may fix the frequency of reports to be sent by EDI/non-EDI locations for this purpose.
Yours Faithfully,
(S.P.RAO)
Under Secretary to the Government of India
F.No.467/24/2007-Cus.V
Minutes of meeting reg. ISLFTA
Minutes of the meeting held between the Government of the Republic of India and the Government of the Democratic Socialist Republic of Sri Lanka on 18-19 April 2000 in New Delhi.1. The Government of the Republic of India and the Government of the Democratic Socialist the Republic of Sri Lanka had signed a Free Trade Agreement (FTA) on the 28th December 1998.
2. A meeting between the Commerce Secretary, Government of India and the Secretary, Treasury, Government of Sri Lanka was held on 2nd February 2000 in New Delhi to operationalise the FTA. In the minutes signed on 2nd February 2000 it was decided "both sides agreed that the Tea Boards of India and Sri Lanka should meet within a month and finalise issues such as method for allocation of quota, monitoring mechanism, authorised signatories for issue of Certificate of Origin and other related procedural matters." It was also decided "both sides agreed that the nodal agencies of India and Sri Lanka should meet within a month and finalise all issues including revised format of Certificate of Origin for export of Sri Lankan garments into India under the Agreement, authorised signatories for issue of Certificate of Origin and other related procedural matters so as to ensure immediate operationalisation of the quota mechanism."
3. Pursuant to the above decisions, delegations from the Government of the Republic of India and the Government of the Democratic Socialist Republic of Sri Lanka met in New Delhi on 18-19 April 2000. The Indian side was led by Mrs. Rathi Vinay Jha, Additional Secretary, Department of Commerce, Ministry of Commerce & Industry and the Sri Lankan side was led by Mr. A. Andrew De Silva, Secretary, Ministry of Plantation Industries. The composition of the two delegations is at Annexure-I.
4. During the inaugural meeting, two Sub-Committees were formed to finalise the arrangements for operationalisation of Tariff Rate Quota (TRQ) exports of tea and garments under the FTA. The agreed minutes of the Sub-Committee on tea signed on 19th April 2000 is at Annexure-II. The agreed minutes of the Sub-Committee on garments on 19th April 2000 is at Annexure-III.
5. Both sides agreed to implement steps to bring these arrangements into effect at the earliest.
On behalf of the Indian side
(Rathi Vinay Jha)
Additional Secretary
Department of Commerce
Ministry of Commerce & Industry
Government of India
19-04-2000 | On behalf of the Sri Lankan side
(A. Andrew De Silva)
Secretary
Ministry of Plantation Industries
(B. Government of Sri Lanka)
19-04-2000 |
Annexure - IINDIAN DELEGATION :-1. MRS. R.V.JHA, ADDITIONAL SECRETARY, DEPARTMENT OF COMMERCE
2. MR. U.S.BHATIA, JOINT SECRETARY, DEPARTMENT OF COMMERCE
3. MR. R.SHARMA, COMMISSIONER, CUSTOMS, MUMBAI
4. MR. P.K.KHERA, DY. COMMISSIONER, CUSTOMS, MUMBAI
5. MR. G.K.DIXIT, OSD TO MEMBER (CUSTOMS), DOR
6. MR. S.M.TATA, UNDER SECRETARY(TRU), DOR
7. MR. VIVEK JOHRI, DEPUTY SECRETARY (TRU), DOR
8. MR. K.KANNAN, RESIDENT DIRECTOR, UPASI
9. MR. N. RAMADURAI, SECRETARY GENERAL, UPASI
10. DR. H.N.DWIBEDI, TEA BOARD
11. MR. T.K.JAYARAMAN, COMMISSIONER, CUSTOMS, KOCHI
12. MR. A.K.RAHA, COMMISSIONER, CUSTOMS, CALCUTTA
13. MR. ATUL CHATURVEDI, JOINT SECRETARY (TEXTILES), MINISTRY OF TEXTILES
14. MR. P.C.JHA, JOINT SECRETARY (CUSTOMS), DEPARTMENT OF REVENUE
15. MR. R.SWAMINATHAN, COUNSELLOR (E&C), HCI, COLOMBO
16. MR.J.AKHTAR,DEPUTYSECRETARY,DEPARTMENTOFCOMMERCE
17. MR.R.C.M.REDDY, SECRETARY, TEXTILES COMMITTEE, MUMBAI
18. MR. DEEPAK SHETI, ADDL. TEXTILE COMMISSIONER, MUMBAI
19. MR. K.K.JALAN, DIRECTOR, TEXTILES, MINISTRY OF TEXTILES
20. MR. A.K.KALA, TEA BOARD, DELHI
21. MR. P.K.MANDAL, CIO, TEXTILES
22. MR. R.S.RATNA,JOINT DIRECTOR, DEPARTMENT OF COMMERCE
23. MRS. G.SIDHU, ASST. DIRECTOR, DEPARTMENT OF COMMERCE
SRI LANKAN DELEGATION :- 1. MR. A. ANDREW DE SILVA, SECRETARY, MINISTRY OF PLANTATION INDUSTRIES
2. MR. PRASAD KARIYAWASAM, DHC, SLHC,NEW DELHI
3. MR.J.M.C.R. JAYASINGHE, ADDL. SECRETARY, MIN. OF INDUSTRIAL DEVELOPMENT
4. MR. J.M.U.JAYASEKERA, D.G., MIN. OF INDUSTRIAL DEVELOPMENT
5. MR. HASITHA de ALWIS, DIRECTOR, SRI LANKA TEA BOARD
6. DR. S. JAYANETTI, ECONOMIC ADVISER, DEPARTMENT OF FISCAL POLICY & ECONOMIC AFFAIRS, MINISTRY OF FINANCE & PLANNING
7. MRS. MANEL de SILVA, CONSUL GENERAL, SRI LANKA TRADE CONSULATE, MUMBAI
8. MR. SAMAN UDAGEDERA, DY. DIRECTOR, MINISTRY OF INDUSTRIAL DEVELOPMENT
9. MRS. YASOJA KANANGARA, SECOND SECRETARY, SRI LANKA HIGH COMMISSION, NEW DELHI
Annexure-II
Agreed Minutes of the meeting of the Sub-Group on Tea held on 18th and 19th April, 2000 for operationalising the Tariff Rate Quota Arrangement under the Indo-Sri Lanka Free Trade Agreement. 1. In order to finalise the procedure for operationalising the Tariff Rate Quota Arrangement in respect of tea, the sub-groups of the delegations of the Government of Republic of India and the Government of Democratic Socialist Republic of Sri Lanka met and held discussions. The sub-group from the Indian side was led by Shri Jawaid Akhtar, Deputy Secretary to the Government of India whereas, Mr. Hasitha de Alwis, Director, Sri Lanka Tea Board led the discussions on behalf of the Sri Lanka side.
2. Pursuant to the signing of the Free Trade Agreement, a meeting between the two sides was held on 2nd February, 2000 to operationalise the Agreement. In that meeting it was decided, inter alia that the import of tea into India from Sri Lanka under the Tariff Rate Quota Arrangement would be through Calcutta and Cochin Ports. The Sri Lanka side requested that Mumbai may also be included as an additional port of entry. They further proposed that the details could be discussed during the forthcoming JMC meeting.
3. The following four related issues were discussed during the meeting :
A. Quota Allocation
B. Monitoring of the Quota by Indian side particularly by Tea Board of India
C. Certificate of Origin, and
D. Quality Assurance
A. Quota Allocation: 4. Since the exports will commence with effect from April, 2000, the quota for year 2000 for tea will be 11.25 m.kgs. Sri Lanka Tea Board would allocate the quota in respect of tea exports from Sri Lanka under tariff concessions. Sri Lanka Tea Board immediately after allocation of quota to any Sri Lanka exporter, shall inform Tea Board of India indicating the following
i. Name and address of the exporter
ii. Name and address of the Indian tea importer
iii. Port of entry in India
iv. Allocated quantity
5. The Sri Lanka Tea Board shall issue a certificate as per Annexure-A indicating the allocation of quota to each exporter which would accompany the certificate of origin issued by the Director General of Commerce, Government of Sri Lanka with every consignment. A copy of both the certificates shall be sent to the Tea Board of India.
6. Sri Lankan side also informed that they will make available details regarding quota allocation on their Web site which can be accessed by Indian authorities viz. Tea Board of India, Department of Customs and High Commission of India, Colombo, Sri Lanka.
B. Monitoring of Quota : 7. Tea Board of India, after receipt of the above information from Sri Lanka Tea Board will monitor the utilisation of the quota in liaison with the Customs Authorities of Calcutta and Cochin. In respect of quota allocation for any year, the date of Bill of Lading/Airway Bill will be taken into account. The ports of entry allowed under the Agreement will be Calcutta sea, Calcutta air, Cochin sea and Cochin air.
The Sri Lanka Tea Board will also monitor the allocations and actual exports regularly.
C. Certificate of Origin 8. As decided in the meeting held on 2nd February, 2000, the Director General of Commerce, Sri Lanka will be the designated authority to issue Certificate of Origin from the Sri Lanka side. The format of Certificate of Origin shall be as per Annexure-B.
D. Quality Assurance: 9. Sri Lanka Tea Board shall ensure that the standard of tea exported from Sri Lanka shall conform to ISO 3720/Specification for tea under the Prevention of Food Adulteration Act (PFA) operative in India.
10. The Tea Waste (Control) Order, 1959 is operative in India. Import and Marketing of Tea waste as defined therein shall be governed by the provisions of the Tea Waste (Control) Order.
11. Tea Board of India, in pursuance of their statutory duty, shall have the right to inspect at random the tea consignments emanating from Sri Lanka and have the discretion of drawing samples, in order to ascertain whether the tea shipment conforms to ISO specifications/PFA standards. If, on visual inspection they have reasonable suspicion that a particular consignment may not conform to the said specifications, Tea Board of India may advise Customs at the designated port, not to allow clearance of the suspect consignment till the test of the sample is completed and the report is favourable.
12. In the cases of random sampling, Customs shall not detain the consignment and release the same on obtaining an undertaking from the importer to the effect that in the event of adverse test result, the entire goods shall be surrendered, and that they shall be liable to penal action under the Customs Act. In the cases where Tea Board of India has specifically advised Customs to detain the tea consignment pending test, the Customs shall allow the option of bonding under Section 49 of the Customs Act to guard against demurrage. In all cases where penal action has been initiated by Customs, Sri Lanka Tea Board shall be kept apprised.
13. If the tea is off-loaded at a port or airport other than the designated port or airport, the Customs shall be at liberty to levy the duty at the normal tariff rate without allowing 50% concession, except in a case of force majeure which, inter alia includes natural disasters and any other circumstances beyond the control of the exporter such as port strike, etc.
14. In the case of a shipment being rejected/penalised on account of action as envisaged in paras 11 and/or 12 above, or in the case of a shipment being charged full duty as envisaged in para 13 above, the quantity of the shipment so dealt with and therefore not counted towards the Tariff Quota will still be considered available for allocation by the Sri Lanka Tea Board under the Tariff Quota Arrangement.
15. India and Sri Lanka agree to maintain close cooperation for operationalising these arrangements. For this purpose, both the sides agree to designate their respective officers for regular contact, if required, between the two countries. The officers designated from the Indian side are (1) Chairman, Tea Board or his nominee, (2) Commissioner of Customs, Calcutta, and (3) Commissioner of Customs, Cochin. On the Sri Lanka side the designated officers are (1) Chairman, Sri Lanka Tea Board or his nominee, (2) Director General (Development), Ministry of Plantation Industries, Government of Sri Lanka or his nominee, and (3) Director General of Commerce, Government of Sri Lanka or his nominee.
16. India and Sri Lanka agree to hold consultations, on the written request of either of the two sides, at a mutually agreed place and time, to foster appropriate implementation of these arrangements.
17. The Agreement is being operationalised with effect from calendar year 2000.
18. It was also decided that a review may be made on the request of either side in August, 2000, as this is the first year of implementation of this Arrangement
On behalf of the Government of India
Jawaid Akhtar
Deputy Secretary
Ministry Of Commerce & Industry
Government of India
New Delhi | On behalf of the Government of Sri Lanka
Hasitha de Alwis
Director
Sri Lanka Tea Board
Colombo |
ANNEXURE-A
SRI LANKA TEA BOARD
No. 574, Galle Road
Colombo - 3
CERTIFICATEIt is hereby certified that the declaration given by the exporter is correct and that the position of tea quota is as follows:
i. Total quota as on date __________ in Kgs.
ii. Less this consignment __________ in Kgs
iii. Balance quota ________ in Kgs.
(Place and date) | i. Total quota allocated to the port of ____________; in Kgs.
ii. Less this consignment _________ in Kgs.
iii. Balance quota __________ in Kgs.
Sign & Stamp of certifying authority |
ANNEXUREB
CERTIFICATE OF ORIGIN| 1. Goods consigned from (Exporters Business Name, Address, Country) | Reference No.
INDO-SRI LANKA FREE TRADE AGREEMENT (ISFTA)
(Combined declaration and Certificate for exporting under preferential tariff against Tariff Rate Quota)
Issued in
.
(Country)
(See notes overleaf)
|
| 2. Goods consigned to (Consignees Name, Address, Country) | 4. For Official use |
| 3. Means of transport and route (as far as known) |
| 5. Tariff item number | 6. Marks and numbers of packages | 7. Number and kind of packages: description of goods | 8. Origin criterion (see Notes overleaf) | 9. Gross weight or other quantity | 10. Number and date of invoice |
11. Declaration by the Exporter
The undersigned hereby declares that the above details and statements are correct;
That all the goods were produced in
(Country)and that they comply with the origin requirements specified for those goods in ISFTA for goods exported to
(Importing Country)
.
Place and date, signature of the authorised signatory | 12. Certificate:
It is hereby certified, on the basis of control carried out that the declaration by the exporter is correct.
.
Place and date, signature and stamp of certifying authority. |
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