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Apparel Business Update, 2nd Quarter 2008
Textiles Intelligence, Aug 2008, Pages: 32
Extract from Report
INDIA’S MINISTRY OF FINANCE HAS EASED RESTRICTIONS ON INDIAN IMPORTS OF APPAREL FROM SRI LANKA
India’s Ministry of Finance has eased restrictions on imports of clothing from Sri Lanka. It will allow up to 3 mn pieces of apparel items a year to enter India on a duty-free basis regardless of the port through which the items are shipped, and regardless of the country of origin of the fabric used to manufacture the apparel.
Prior to the decision to remove these restrictions, Indian importers of apparel from Sri Lanka could benefit only from reduced tariffs if the import items were made from Indian fabric and were imported through certain designated ports.
This development is an extension of a free trade agreement (FTA)which was implemented by the Indian and Sri Lankan governments in March 2000.
Under the FTA, certain imports from Sri Lanka have been awarded duty-free access to the Indian market since March 2003. However, there are still some “sensitive” items on which duty must be paid.
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