The government said on Friday that Sri Lanka has not imposed quota on export of rice from Pakistan. An official statement said that under the bilateral Free Trade Agreement, Sri Lanka has given duty-free market access on export of 6000 tons long grain Basmati rice annually.
When the Agreement was implemented in June 2005, rice was subject to duty at the rate of 9000 Sri Lankan rupees per ton, which was subsequently increased by Sri Lanka to SR Rs 20,000 per ton. In spite of substantial increase in duty on rice by Sri Lanka the market access provided by it to Pakistan remained unchanged. The quantity of rice exported from Pakistan in access of 6000 tonnes per year would be subject to duty in Sri Lanka and there is no restriction imposed by Sri Lanka on such exports.
As a quid pro quo to market access provided by Sri Lanka on rice to Pakistan, Sri Lanka was given 10,000 tons tea to be exported to Pakistan at zero duty. Any quantity of tea exported in excess of 10,000 tons tea to Pakistan would be subject to duty, which is at present 10 percent.
It was incorrectly reported that Sri Lankan government had allocated the entire quantity of duty-free export of rice to only one exporter of Pakistan. The factual position is that the consignments exported under Free Trade Agreement (including rice) would accompany a 'Certificate of Origin' issued by Export Promotion Bureau of Pakistan. The Government of Sri Lanka has no control on issuance of these Certificates of Origin. Initially, Sri Lanka had only allowed its public sector agency to import rice from Pakistan under the FTA.
Since, with the efforts of the Government of Pakistan, Sri Lanka has now allowed private sector importers of Sri Lanka to import duty-free rice from Pakistan, Ministry of Commerce is presently working on the modality of export of duty-free quantity of rice to Sri Lanka in consultation with Rice Exporters Association of Pakistan (Reap) to address concerns of the exporters of rice to Sri Lanka.
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