Updated on August 06, 2025 11:56:04 AM
The Governments of India and Sri Lanka signed the India-Sri Lanka Free Trade Agreement (ISFTA) in order to facilitate trade by lowering or doing away with tariffs on goods. Signed on December 28, 1998, the agreement became operative on March 1, 2000. It seeks to fortify the commercial ties between the two adjacent nations, boost trade volume, and improve economic cooperation.
Both India and Sri Lanka committed to providing duty-free and preferential access to a variety of goods under the ISFTA, which will increase the competitiveness and economy of cross-border trade. With a primary focus on lowering customs duties for qualified products under specific Rules of Origin and Product Negative Lists, this agreement covers goods but excludes services and investments.
Businesses in industries including consumer goods, chemicals, automotive components, textiles, and agriculture have benefited greatly from the ISFTA. Exporters and importers from both nations can lower trade costs, increase market access, and strengthen their bilateral economic ties by taking advantage of this agreement.
ISFTA SAMPLE REPORT
The India-Sri Lanka Free Trade Agreement (ISFTA) allows for the import and export of certain goods between India and Sri Lanka at preferential rates of duty. To claim these preferential rates, exporters need to obtain a Certificate of Origin (COO) that verifies that their goods meet the origin criteria specified in the agreement.
There are two types of schemes associated with the ISFTA COO - preferential and non-preferential schemes.Under the preferential scheme, eligible goods exported to Sri Lanka attract lower or zero tariff rates. The ISFTA COO is required to claim these preferential rates.
On the other hand, the non-preferential scheme applies to goods traded between India and Sri Lanka that are not covered under the preferential scheme. The non-preferential scheme is mainly used for statistical purposes and to enforce trade regulations. In such cases, a COO is also required, but it is not needed to claim preferential tariff rates.
Before we dive into the registration process, let's take a look at the benefits of the ISFTA. The agreement offers the following advantages to the businesses of India
Under the ISFTA, both countries have agreed to eliminate or reduce customs duties on a wide range of goods. This means that Indian exporters can sell their products in Sri Lanka without paying any duty, and vice versa. This makes the products more affordable and competitive in the market.
The ISFTA also simplifies customs procedures for the exporters and importers of both countries. The agreement provides for faster clearance of goods at the border, reducing the time and cost of trade.
The ISFTA includes provisions for the protection of intellectual property rights of the businesses of both countries. This provides a secure environment for innovation and creativity and encourages investment in research and development.
The fee for India-sri lanka free trade agreement are as follows:
| Particulars | Cost of India-sri lanka FTA |
|---|---|
| Government Fee | ₹736 |
| One time registration fee | ₹500 |
| Application fee | ₹2000 |
| Total cost of registration | INR 3,236/- only |
Note: This certificate is generally valid for one year from the date of issuance. Exporters must renew the certificate annually to continue availing benefits under the ISFTA agreement.
To avail the benefits of the ISFTA, businesses need to register themselves with the respective authorities of India and Sri Lanka. Here are the steps involved in the registration process:
India has enhanced its market access commitments for neighbouring service providers. These commitments provide companies with an opportunity to build market expertise and grow by international expansion. Under Free or Preferential Trade Agreement there are multiple options where certificate of origin can be generated from India for import benefits to importing companies:-
ICPTA - India Chile Preferential Trade Agreement
SAFTA - South Asia Free Trade Agreement
SAPTA - SAARC Preferential Trade Agreement
IKCEPA - India Korea Comprehensive Economic Partnership Agreement
IJCEPA - India Japan Comprehensive Economic Partnership Agreements
AIFTA - ASEAN India Free Trade Agreement
ISFTA - India Sri Lanka Free Trade Agreement
APTA - Asia Pacific Trade Agreement
GSP - Generalized System of Preferences
GSTP - Global System of Trade Preferences
IMCECA - India Malaysia Comprehensive Economic Cooperation Agreement
ISCECA - India Singapore Comprehensive Economic Cooperation Agreement
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Conclusion
The ISFTA has opened up opportunities for businesses of both India and Sri Lanka to expand their trade relations. The registration process is relatively simple, and businesses can benefit from duty-free access, simplified customs procedures, and protection of intellectual property rights. By following the above steps, businesses can take advantage of the ISFTA and increase their competitiveness in the market.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
Although having an ISFTA is not necessary for exporters of goods from India, ISFTA comes with many benefits such as low or zero tariff rate under preferential scheme for a variety of goods. Which can help exporters in the growth of their business.
The fee for india srilanka certificate of origin is ₹3,236 only.
The DGFT of india issues the Certificate of origin (COO) for ISFTA
it usually takes 5-7 working days to acquired certificate of origin for ISFTA
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