WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/237/Add.1 
25 February 2011 
 (11-0976) 
Trade Policy Review Body 
4 and 5 November 2010 Original: English/French 
 anglais/français  inglés/francés 
 
 
TRADE POLICY REVIEW 
SRI LANKA  
Record of the Meeting
 
Addendum  
Chairperson:  H.E. Mr. Bozkurt Aran (Turkey) 
 
 This document contains the advance written questions, and replies provided by Sri Lanka.1 
__________________________________________________________________________________ 
 
Organe d'examen des politiques commerciales 
4 et 5 novembre 2010  
EXAMEN DES POLITIQUES COMMERCIALES 
SRI LANKA 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. M. Bozkurt Aran (Turquie) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par le Sri Lanka.1 
__________________________________________________________________________________ 
 
Órgano de Examen de las Políticas Comerciales 
4 y 5 de noviembre de 2010  
EXAMEN DE LAS POLÍTICAS COMERCIALES 
SRI LANKA 
Acta de la reunión
 
Addendum  
Presidente:  Excmo. Sr. Bozkurt Aran (Turquía) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Sri Lanka.1 
                                                      
1 In English and French only./En anglais et français seulement./En inglés y en francés solamente.   
    WT/TPR/M/237/Add.1 
 Page 3 
 
 
  REPLIES PROVIDED BY SRI LANKA 
AUSTRALIA  
 
Q1:  TRADE POLICIES AND PRACTICES BY MEASURE   
Reference :  Secretariat Report – Page 32 
 Introduction  
Australia welcomes Sri Lanka's ongoing efforts (pg 32)  to simplify the range of tariffs and other 
charges applied to imported goods. We note that, while Sri Lanka has scheduled WTO rights to the 
application of the 'cess' (Export Development Bo ard) EDB Levy) to import  of some goods, it 
continues to apply several unscheduled ‘other duti es and charges’ within the meaning of Article 11: 
1(b) of GATT(i.e. which are not applied to domest ic goods or applied to do mestic goods at a lower 
level) these include a National Building Tax and Ports and Airports Development Levy. 
 
a. Australia is interested in Sri Lanka's plans  to remove unscheduled ODCs and further simplify 
the range of tariffs and other duties applied to imported goods. 
 
Answer:  
Most of these border levies are being  reviewed a nd appropriate action will be taken in the national 
Budget scheduled in November 2010. 
 
b. Australia is also interested in the reasons as to why Sri Lanka's applied rates of duty exceed 
WTO bound rates in some cases and what steps it is taking to remain within scheduled bindings. 
(page 32)  
 
Answer:  
Most of these border levies were imposed as a re venue measure during the  conflict which was ended 
in 2009. These taxes are being  reviewed and approp riate action will be taken at the national Budget. 
 
Q2: 
 
Reference:  Secretariat Report Page 36 & 37 
 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(ii) Customs valuation and rules of origin  
(a) Customs valuation   
We note on page 37 that Sri Lanka requested in 2005 further extension to WTO Committee on 
Customs Valuation (granted in March 2003) to re tain established minimum values on certain products 
for customs purposes, under the provisions of paragraph 2 of Annex 111.   Q2: Australia is interested in fu rther steps Sri Lanka may be taking to eliminate the practice of 
applying minimum values for the purposes of Customs Valuation.  
 
Answer:  
The current method of determining the customs value of used motor vehicles is within the principles 
of WTO Customs Valuation Agreement. However, the existing regulations in th is regard, need to be 
further clarified. This will be done in due course.  WT/TPR/M/237/Add.1 
Page 4  
 
   
Q3: 
 Reference:  Secretariat Report Page 52  
(v) Import restrictions and licensing  (a) Import restrictions 
 
Australia notes that Sri Lanka continues to ope rate extensive non – automatic forms of import 
licensing, including for “economic” reasons. In particular , such licences appear to be in place to when 
the country requires such importation and hence operates as prohibited quantitative restrictions on import.  
Q3: Australia is interested in Sri Lanka's plans to further reduce the application of non-automatic 
import licensing.  
 
Answer:  
There are no prohibited quantitative restrictions on imports. The clause "when the country requires 
such importation" means an instance when a person or  an  organization request for a license to import 
certain goods to Sri Lanka.  
 
Sri Lanka maintains import licensing requirement  mainly because of health, security and 
environmental reasons. In addition, some items ha ve been brought under license as obligations arising 
from international conventions.   Q4:  
 
Reference:  Secretariat Report Page 75-76 
 (4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(iv) State trading, state–owned enterprises and privatization  
 We note on pages 75-76 that Sri Lanka has suspended its state-owned enterprise (SOEs) privatization 
programme but is looking for private investors to  take strategic stakes in SOEs while retaining 
majority government ownership.   Q4: Does this include the banking sector where th ere are two state-owned commercial banks and 
seven specialized banks .   
 
Answer:  
Already several subsidiaries of the state-owned comme rcial banks have offered their shares to private 
investors. The state banks have also invested in associate companies where the banks have no 
controlling interest. 
 
Q5:   
Reference:  Secretariat Report Page 111 – para 75 
 TRADE POLICY BY SECTOR (5) S
ERVICES – MAIN FEATURES AND MULTILATERAL COMMITMENTS  
 
The report (page 111, para 75) notes that issuance of new licences for other basic telecom services 
would be subject to economic needs crit eria, which are not further defined.   WT/TPR/M/237/Add.1 
 Page 5 
 
 
   
Q5: Can Sri Lanka provide advice on its economic needs criteria for the issuance of new licences 
for other basic telecom services?  Answer:   
The economic criteria related to the issuance of licences has to be developed. 
 However, it is noteworthy that Sri Lanka has alr eady liberalized basic telecom services beyond the 
level of her commitments in the GATS.  Q6:  
 
Reference:  Secretariat Report Page 111 – para 75 
 
The report (page 111, para 76) notes that commitmen ts in financial services provide for the approval, 
registration and licensing of banks a nd other financial institutions to be subject to an economic need 
test, but the criteria for this test are not specified  
Q: Can Sri Lanka provide advic e on its economic needs test for the approval, registration and 
licensing of banks and other financial institutions?  
Answer:   The Central Bank of Sri Lanka (CBSL) pays speci al emphasis to the economic needs criteria i.e. 
economic growth and banking densit y, with priority given to service enhancing proposals that are 
capable of addressing presently unfulfilled n eeds in the sectors/areas listed below:  
 
The small and medium enterprises sector  
Micro finance  Agricultural finance  Housing finance  Infrastructure lending  Asset reconstruction/management and business recovery  
Corporate debt restructuring  
Forward market development  Enhancement of worker remittances  Hi-tech banking  Personal banking  
Bank-assurance  
Off-shore banking business   The Guidelines on Opening of New Banks in Sr i Lanka can be accessed on the CBSL website under 
the section titled Laws and Regulations (http://www.cbsl.gov.lk/).   In addition, we observe that paragraph 76 shou ld be amended to incorporate the following:   
 
Foreign participation in a licensed bank incorporated or established in Sri Lank a, is permitted up to 
100% of its issued share capital, subject to complia nce with the individual shareholding limits of 15%. 
However, with regard to licensed commercial ba nks, prior approval should be obtained to acquire 
shares in excess of 10% of the issu ed capital carrying voting rights. 
  WT/TPR/M/237/Add.1 
Page 6  
 
  BRAZIL
 
 
Reference:  Secretariat Report – page 53, para 76 - 78  
 According to the Report by the Secretariat (WT/TP R/S/237), page 53, paragr aphs 76-78, "Sri Lanka 
has no laws or regulations governing anti-dumpi ng or countervailing actions. And "Sri Lanka 
currently has no laws or regulations relevant to safeguard measures. Two bills containing provisions 
on anti-dumping, countervailing duties, and safegua rd measures were gazetted in October and 
November 2005, but as at June 2010, still awaited the approval of Parliament.”  
 
Q1: 
Brazil would appreciate some information about any  particular reasons for such a delay in the 
Parliament's approval of those two bills.  
 
Answer:  
As there were more urgent legislations and other issues before the Parliament during the last few 
years the Government was unable to take up th ese two Bills. However, these bills were discussed 
extensively at the Parliamentary Consultative Co mmittees, on the Ministry of commerce. While the 
bills were pending the Parliament was also diss olved and the new Parliament was elected in 
April 2010. 
 The Ministry is in the process of re-s ubmitting these Bills to the Parliament. 
 
Q2: 
Brazil would also be interested to learn what inst ruments would be available to the domestic industry 
in Sri Lanka facing the competition of du mped or subsidized imported products. 
 
Answer:  
Sri Lanka does not at present have any legislati on providing action against dumped or subsidized 
imports.  
 
 
CANADA
 
 
Q1: 
 
Reference:  Secretariat Report – page 79, para 202   
Part III. Trade Policies by Measures: (4) Measures Affecting Production and Trade: ( v) 
Government Procurement:  
 
The Secretariat report notes that 'Sri Lanka grants price preferences to locally manufatured goods as 
determined by the Treasury and includ ed in the procurement guidelines.  
 
Q: Could Sri Lanka please provide examples of  the principal domestic products that receive 
preferences? 
 
Answer:  
As stated in para 203 of the Secretariat Report a ll domestic products meeting the requirements given 
therein receive preferential treatment. 
  WT/TPR/M/237/Add.1 
 Page 7 
 
 
  Q2: 
 Reference:  Secretariat Report – page 83, para 216   
Part III. Trade Policies by Measures: (4) Measures Affecting Production and Trade: ( v) 
Government Procurement:   
The Secretariat report states that a study conducted by the World Bank in 2003 noted that although 
Sri Lanka's procurement system seemed to have served its purposes, a strengthening of the rules 
would be desirable. The study noted that, althoug h the guidelines prescribed the procedures, which 
have the force of Law on procurement issues , they we re easily amendable by the Ministry of Finance 
without going through Parliament. The study considered that since the guidelines have some inbuilt flexibilities and discretionary provisions, which may result in abuse, a Procurement Act and Rules to 
govern public procurement would substantially im prove transparency, reduce possible abuses and 
malpractices and enhance public confidence in the system.  
 
Q: Could Sri Lanka please provide a detailed explanation of abuses and irregularities of the 
procurement rules?  Answer:  
Sri Lanka has a strong regulatory framework with transparency in its Public Procurement Committee 
System.  An Appeal Board directly under th e President, reviews any reported procurement 
irregularities.  Therefore, although the Secretariat Report  quoting the World Bank report states that the guidelines "may result in abuses", the GOSL ha s already established institutional arrangements to 
check and rectify such abuses should they arise.      Q3:  Could Sri Lanka provide further information on measures or steps it is enacting to overcome 
perceived challenges to its procurement system, in particular measures as it pertains to foreign 
companies’ involvement in th e public procurement process? 
 
Answer:  Government Procurement Guidelines represent a ha rmonized procurement policy which are in line 
with international guidelines and documents such as FIDIC which cover the principles of public 
procurement such as fairness, transparency, open co mpetition etc.  Therefore, these principles govern 
the  procurement system. Moreover, appeal process will address the procurement complaints. 
Meanwhile, the Ministry of Finance continuall y maintains an oversight  of all government 
procurement activities.    WT/TPR/M/237/Add.1 
Page 8  
 
  CHINA
 
 
Reference:   Government Report - Page 9 – para 24 
 Secretariat Report - Page 92 – para 5 
 
Report by the Government of Sri Lanka   III. TRADE POLICY  
 
24. Sri Lanka has pursued an export-oriented i ndustrialization strategy si nce 1977, but production 
and trade remain concentrated in a few products and markets. Therefore, Sri Lanka has identified 
three priority areas for Aid-fo r-Trade assistance, namely assist ance for trade policy analysis, 
negotiation and implementation, export dive rsification and improving competitiveness. 
 
Report by the Secretariat 
 
IV. TRADE POLICIES BY SECTOR (1) I
NTRODUCTIONI . COMMON ECONOMIC ENVIRONMENT  
 
5. During the review period, Sri Lanka maintained  an industrial policy aimed at diversifying its 
industrial base and promoting regiona l industrialization.  In order to encourage investment in the 
manufacturing sector, the Government has offered a wide range of tax incentives, concessionary 
credit and other types of assistance, targeted in par ticular at small and medium-sized enterprises.  The 
sector remains an important contributor to econom ic growth, accounting for 18.1% of GDP in 2009 
(at current prices) and 17.7% of total employment.  However, it is highly concentrated in a few products and export markets, and relies heavily on im ported inputs, all of which make it vulnerable to 
external economic cycles.  
 
Q: China commends the efforts made by Sr i Lanka Government on the diversification of 
production and export. Could the Sr i Lanka delegation please elaborate the sectors that it prioritizes 
in its diversification plan and what a re the main supportive measures?  
 
Answer:  
As stated in the report by the Secretariat the de velopment strategy of the Government particularly 
focuses on the regional development. In the area of  infrastructure development, the focus is on 
connectivity. Roads, ports and ai rport development are key areas identified for development, along 
with investment in power generations.  
 
As over 60% of total export earnings of Sri La nka are derived from two products, at present 
(garments, 44% and tea, 17%), the government along with the private sector have taken the initiatives 
to further diversify country’s exports.  The dive rsification efforts will focus on expanding export 
earnings from the following product sectors; rubbe r based products, diamonds, gems & jewellery, 
food and beverages, spices and a llied products, fish products, coc onut based products, electrical & 
electronics, petroleum products, printing & stationery and boat building. In the area of services the 
focus is on the ICT and BPO services as well as other professional services    WT/TPR/M/237/Add.1 
 Page 9 
 
 
  CHINESE TAIPEI  
 
Q1: 
 
Reference:  Secretariat Report – Page 63, para 129  
 III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(iv) Export Support 
 With reference to Sri Lanka's TIEP 4 as described in  the Report, notwithstanding the fact that that 
Article 27.2(b) of the SCM Agreement applies to  Sri Lanka as an exempt developing country 
Member, please could Sri Lanka clarify:   Q1: 
 
a) when the expiry period under Article 27.4 was extended by the Committee on Subsidies and 
Countervailing Measures, and  
 
Answer:  
Sri Lanka is exempted under the Agreement of SCM,  since it is listed under Annex VII (b) therein.  
 Sri Lanka is covered under the Ge neral Council decision as containing WT/L/691, dated 31 July 2007 
and has not yet graduated.    
 
Q1: 
 b) What is the duration of the TIEP4 Scheme? 
 
Answer: 
No time limit has been specified.  
 
Q2: 
 Reference:  Secretariat Report - page 75, para 183-194 
 
(4)
  M EASURES AFFECTING PRODUCTION AND TRADE  
(iv) State-trading, state-owned enterprises and privatization 
 According to the Report, the government of Sri Lanka has completed 50 privatization transactions 
since 1990. However, its current policy is not to privatize. The government has control of 
218 commercial public enterprises, including 107 th at are fully government-owned and 4 public 
enterprises newly established in 2007.  
 
Q2: 
 
a) In light of the dominant position of public en terprises in the economic activity of Sri Lanka, 
how is it possible for the Sri Lankan government to ma intain a policy of free-trade consistent with the 
principles of the WTO?   
Answer:  
State Trading / State owned  enterprises do not ha ve monopoly in any trading sector. These companies 
have to compete with the private sector. Govern ment ownership of companies does not necessarily WT/TPR/M/237/Add.1 
Page 10  
 
  interfere with the maintenance of a policy of  free trade consistent with WTO under these 
circumstances.   
Sri Lanka has been the forerunner in the region for liberalizing its economy and moving towards free 
trade. There is no impact from the public enterp rises for free trade as there are so many private 
enterprises involved in trade in competition with the public sector.  
 
Q2: 
 
Is there any possibility of further pr ivatization in the near future? 
 
Answer: The current policy is to encourage Public-Private  Partnership for the Public enterprises as against 
privatization. The Government is also contempla ting broad basing of ownership structure through the 
share market.  
 
Q3: 
 
V. Investment  Reference:  Government Report - page 11, para 39 
 The Government Report indicates that national treat ment on investment is offered to all foreign 
investors.   
The experience of one of our Chinese Taipei investor s in Sri Lanka, however, suggests that this is not 
always the case, as shown by the following observations recently reported:    
 
Q3: 
 a) Foreigners have to pay 100% tax while purc hasing land for setting up factories, but local 
people pay only 50%. 
 
Answer:  In many countries foreigners are not allowed to pur chase land. In Sri Lanka foreigners are allowed to 
purchase but subject to a land tax.  However, land tax does not apply to companies with foreign 
participation in the share structure.  
 They may also lease land without levy of a special tax.   
 
Q3: 
 
b) Foreigners are prohibited from planting tea in areas more than 1900 metres above sea-level. 
 Answer:  
Soil Conservation Act of Sri Lanka regulates the cultivation of land above  1,500 metres above sea 
level. Accordingly, existing cultivations (natural fo rest, plantation crops, pasture) above 1,500 metres 
are not allowed to be disturbed for cultivation of crops.  
 
Q3: 
 
c) There is no proper administration set up so far to handle investment disputes.  The Board of 
Investment can provide only very limited assistance .   WT/TPR/M/237/Add.1 
 Page 11 
 
 
   
Q: It would be appreciated if the Sri Lank an government could please comment on the above.  
 
Answer: It is not within the purview of the BOI. Investme nt Disputes can be resolved through consultations 
and negotiations. Failing which it coul d be referred to local jurisdiction, ICSID or UNCITRAL or any 
Ad - hoc arbitration depending on the contractual obligations.  
 
Further an Arbitration Centre has been establis hed in Colombo for the settlement of commercial 
disputes expeditiously, economically and privately.  A new law has already been enacted for this 
purpose. The Centre will be affiliated with the Ar bitration Institute of the Stockholm Chamber of 
Commerce and will follow its standards and norms. Th e Arbitration Act gives recognition to the New 
York Convention on the Recognition and Enforcement of Foreign Arbitral Awa rds. This means that 
arbitration awards made abroad provided it is a st ate party to the convention are now enforceable in 
Sri Lanka. Similarly, awards made in Sri Lanka can be enforced abroad.  
  
EUROPEAN UNION
 
 
Economic Environment  
 
At the latest TPR of Sri Lanka in 2004 EU raised  concerns about the level of corruption in the 
government sector. Unfortunately, EU has to raise th is issue again in light of continuous concerns 
expressly by the EU business operating on the ground.  
 
Q1: 
 Could Sri Lanka describe the actions undertaken an d the effectiveness of the activities of the Bribery 
and Corruption Commission?  
Answer: The Commission is fully empowered legally to op erate in terms of its objectives by an Act of 
Parliament. Activities undertaken by the Commission are stated in its annual report and statement of 
account relating to a particular year.   
It is not possible to comment on opinions expressed by third parties which are of a general nature. 
However, specific instances of concern could be investigated under due process, if reported. 
 
Q2: 
 Are there any other bodies created to fight corrupt ion or any activities (e.g campaigns) foreseen in 
the near future? 
 Answer: 
Such activities have been carried out in the past  by public interest groups from outside as well as 
within the state sector. There are no restrictions for voluntary association of persons to address such 
issues. 
 WT/TPR/M/237/Add.1 
Page 12  
 
  Q3: 
 Reference:  Secretariat Report – page 38, para 34 & 38 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(iii) Tariffs 
(b) applied tariff  
European exports in sectors such as non electrical machinery, chemicals, textiles and clothing, 
furniture or pulp and paper have registered an in crease in applied tariff over the last years due to the 
so called Revenue Protection Order. 
 
Q3: 
 
Could Sri Lanka give the reasons why tariffs were increased? 
 
Answer:  
Due to urgent need of revenue during the conflict time, tariffs on certain goods were increased with a 
view to achieving development objectives. These tari ffs are being  reviewed and appropriate action 
will be taken at the national Budget.  
Q4: 
 
Are there any further increa ses of the described tariffs foreseen in the future? 
 Answer:  
Not foreseen.  
 
Q5: 
 
Reference:  Secretariat Report – pa ge 44- paras 50,52,57,60,61,64,67,69 
 (iv) Other charges affecting imports   
The Secretariat's report refers to a number of  import levies in paragraph 52,57,60,61,64,67,69. 
[…] Imports are subject to several additional le vies [..] these increase the cost of importing 
considerably and in some cases by more than 100% […] . The EU maintains that these levies 
constitute a discriminatory treatment between impor ted and domestic goods whic h is contrary to the 
WTO rules requiring non discrimination  Q:  How does Sri Lanka plan to abolish the discriminatory treatment  Answer:  
Questions refer to variety of measures which are in place with different objectives. Most of these 
measures are applied in a non-discriminatory manner between the imported and the domestic 
products. Most of these charges were introduced duri ng the later part of the conflict  for revenue 
objectives. Measures are being taken to simplify and streamline tariffs and  other levies on most of the goods  through the national Budget.  
Q6: 
 
Is there any intention by Sri Lanka to simp lify the number of charges affecting imports?  WT/TPR/M/237/Add.1 
 Page 13 
 
 
   
Answer:  
Please refer to the answer for question no 5 
 
Q7: 
 
For the sake of transparency of ec onomic operators, could Sri Lanka provide clarification as to all 
the duties , taxes, levies etc applied to im ported spirits and locally produced spirits? 
 Answer:   
Please refer the attached list.  
 
Q8:  Reference:  Secretariat Report –page 47, para 57 & 58 
 (c) Excise Duties 
 According to the Secretariat's Report […] The list of  goods subject to excise taxes is considerably 
more extensive than in 2003.  
 
Q:  Is there any policy guideline envisaged to brin g a standstill on the use of the excise duties?  
 Answer: 
At present there is no such policy to bring stands till on use of excise duties. These apply to imported 
as well domestic products.  Q9:  Reference:  Secretariat Report –page52, para-s 73 and 75  (v) Import restrictions, and licensing 
(b) Import licensing 
 
The Secretariat's Report notes "[….] The Special Import Licensing Scheme was introduced on 
grounds of national security, health and envi ronment, as well as "economic" reasons, and is 
administered by the Department of Imports and E xport Control.  Products listed in the Regulation are 
subject to non automatic licensing, as and when the country requires such importation, which is 
considered on a case-by-case basis. The system appli es to goods originating in all countries.  There is 
no automatic import licensing system.  The authorities indicate that applications for licences are processed within two days.  [….] Certain licen ces may be issued only on the basis of past 
performance [….] In some cases, licen ces may be issued on condition that the goods are exported and 
not sold in the domestic market, […] Imports by en terprises that have an agreement with the Board of 
Investment and are eligible to import/export goods free of restrictions, are not subject to import 
licensing restrictions for materials related to the projects." 
 
Q:  Does Sri Lanka envisage any measure on th e subject of import licensing in order to avoid 
discretionary denials? 
 
Answer : 
Sri Lanka maintains import license requirement for so me goods mainly because of the health, security 
and environmental reasons. Any i ndividual, organization or compan y can apply for import licenses. 
The import control licences, as gazetted under the Impor t and Export Control Act, are issued based on WT/TPR/M/237/Add.1 
Page 14  
 
  the recommendations from the line ministries taking in to consideration the objective of the relevant 
restrictions. For example; if an item has been brought under license because of an environmental 
reasons, then license is issued on the recomme ndation of the Ministry of Environment.  
 All reported cases are being considered with a view  to harmonize the discrepancies in the applicable 
regimes within Sri Lanka.  
 
Q10: 
 Reference:  Secretariat Report –page 53, para 78 
 
(vi) Contingency Measures   
(b) Safeguard measures 
 
According to the Secretariat’s Report Sri Lanka curre ntly has no laws or regulations relevant to 
safeguard measures, but two bills containing rele vant provisions were gazetted in 2004 and 2005, 
which are currently still awaite d the approval of Parliament. 
 
Q:  What is the current status of the two bills  containing provisions on anti-dumping, countervailing 
duties, and safeguard measures?  
Answer: As there were more urgent legislations and other issues before the Parliament during the last few 
years the Government was unable to take up these two Bills. However, these bills were discussed  
extensively  at the Parliamentary Consultative Co mmittees, on the Ministry of commerce. While the 
bills were pending  the Parliament was also di ssolved and the new Parliament was elected in 
April 2010. 
 The Ministry  is in the process of re -submitting these Bills to the Parliament. 
 
Q11:   
What are their main features? 
 Answer: 
Lapsed bills were fully compatible with the WTO rules in this areas.   
 
Q12: 
 (vii) Technical regulations and standards  
 
Are there any governmental measures in place to  help Sri Lanka producers access niche markets 
overseas through, adherence to vol untary sustainability standards (for example, Fair Trade, UTZ 
Certified, Fair Trade, Ethical Tea Initiative)? 
 Answer: 
The GOSL has, for a long period, encouraged its private sector firms to adopt high CSR and  
sustainable development standards. Sri Lanka’s private sector companies have taken far reaching 
initiatives, over the last several years, in th ese areas, with the direct encouragement of the 
Government. The GOSL has always used trade instruments in its efforts towards achieving 
sustainable development and her commitments of reaching MDGs.  The main constraints to these initiatives by the GOSL and the private sector are as follows:   WT/TPR/M/237/Add.1 
 Page 15 
 
 
  First, Voluntary Sustainable Standards are devel oped and managed largely by the establishments in 
the developed countriesand the costs of certification are mostly beyond the reach of the most SMEs in the developing world, even when they meet the required standards. Hence, it sometime leads to wrong 
perception among the consumers that a product certifi cation is superior to similar product which does 
not carry the certifications, even though the pr oducts are manufactured under similar conditions. 
Furthermore most of the price premium, in most inst ances, is collected by the Certification Authority. 
To address this issue, the mutual recogniti on of certificates needs to be encouraged.  
 Secondly, in some instances the voluntary sustaina ble standards are developed and managed largely 
by the establishments in the developed countriesa nd the costs of compliance are mostly beyond the 
reach of the SMEs when costly changes are require d in the factories and in the production process 
along with the expensive certification requirements. Sri Lanka has recently raised this with United 
States at the bilateral discussions under TIFA, par ticularly in the context of the initiatives by the 
apparel industry to set up “Green Factories” and h as requested assistance.  In this regard we are 
pleased to inform you, that Organic Standards have been developed w ith the support of EU. 
 
However, the main obstacle to promotion of such initiatives stems from the trade policies of some of 
our developed country trading partne rs, particularly the EU, which have the discriminatory effect of 
rewarding countries that do not integrate sustainable development standards in their preferential arrangements, as against countries with higher standards.  
Even the instruments that were developed to reward sustainable development are in their 
implementation, appears to be guided by   political objectives rather than by the objectives of the sustainable development  
Q13: 
 
Reference:  Government Report page 10 para 33 and Secretariat's Report page 33 para 9, and page 58 para, 105  (viii) Sanitary and Phytosanitary Measures  
According to the Secretariat's Report […..] Imports of  animals and animal produc ts of ruminant origin 
are allowed only from countries which have offici ally been declared as "Bovine Spongiform 
Encephalopathy (BSE) Provisional Free Status" by th e World Organization for Animal Health (OIE). 
[..]  Q:  Could Sri Lanka clarify and justify their impor t conditions related to BSE and whether Sri Lanka 
has the intention to review this measure in line with the relevant OIE standard? 
 
Answer:  
Given that any outbreak of BSE could have drastic  repercussions on human health and the livelihood 
of vulnerable segments of societies specially rura l farmer communities, animal health authorities 
exercised caution with regard to such imports.  
 No recommendation shall be made by the Director regarding the issue of a permit to import any animal product unless the importer produces a certificate from the Chief Veterinary Officer or authorized Veterinary Officer of origin of the an imal product stating that such animal product is free 
from any infective substances that is likely to cau se disease in animals.  The details of contagious 
diseases are available at www.dhpa.gov.lk under “Act s and Regulations of the Animal Diseases Act”. 
 WT/TPR/M/237/Add.1 
Page 16  
 
  Q14:  
 In case that this would be the case, could Sr i Lanka inform in which timeframe the import 
requirements would be amended and whether Sri L anka would notify such an amended version to the 
WTO SPS notification system? 
 
Answer: 
It is not possible to give a timeframe. If regulations are amended WTO will notified. 
 
Q15: 
 
Furthermore, the EU would like to highlight that the OIE standard does not require a total ban on 
animal and animal products of ruminants, even wh en the country has been classified as Controlled 
Risk status or as Undetermined.   Q:  Could Sri Lanka provide its risk assessment based  on science for deviating from the international 
standards if the current import conditions would be kept in place?  Answer: 
Since prevalence of a disease such as BSE poses a risk  to the animal and human health , Sri Lanka has 
adopted import licensing to control such imports into the country.  
 
Q16:  
 Reference:  Secretariat  Report page 58 para-s 103 and 104  
Could Sri Lanka inform, if an impor t permit is required for all plan ts and plant products, and whether 
the International Standard on Phytosanitary Measur es, ISPM 32 has been taken into consideration? 
 Answer: 
Yes. 
Sri Lanka Follows International ISPM standards. 
 
Q17: 
 Could Sri Lanka inform for which products a phytosanitary certificate is required? Has this 
information been published? 
 
Answer: 
Imports of plant and plant products  require an import permit and phytosanitary certificate. 
 It is also included in the draft regulation which is published in the website of the Department of 
Agriculture, Sri Lanka www.agridept.gov.lk .   
 Q18:  With regard to import permits could Sri Lank a explain if the import permits specifies any 
phytosanitary conditions the products have to meet?  If so, where can the exporters find information 
on the conditions that have to be met for certain products beforehand? 
  WT/TPR/M/237/Add.1 
 Page 17 
 
 
  Answer: 
Most of the information is available on the we bsite www.agridept.gov.lk. However, in certain 
instances based on the information submitted in the application, the regulatory authority may seek 
additional clarification.  Q19: 
 
Could Sri Lanka inform whether information on impo rt requirements for plants and plant products as 
well as a list of quarantine pests will be m ade available, e.g. on the IPPC web page? 
Answer: 
Relevant information is posted in the Departm ent of the Agriculture website – www.doa.gov.lk. 
 The above web link is mentioned in the IPPC web page.  Q20: 
 
(3) M
EASURE DIRECTLY AFFECTING EXPORTS   
(v) Export finance, insurance, and guarantee 
(a) Export finance 
 
According to the Secretariat's Report "[…} Sri La nka has taken the initiative to establish an Exim 
Bank "to provide financial assistance to exporters an d importers, and to promote international trade in 
goods, services, and capital, and thereby enhan ce growth, employment and real income.[…] 
 
Q:  How is the Exim Bank going to operate – will it provide direct financing or will it operate through 
the banks? 
 Answer: 
The proposed Exim Bank will operate with the particip ation of other banks and as in other countries it 
will provide direct financing to exporters and importers. 
 
Q21:  
Is the Exim Bank going to follow speci al environmental and social rules? 
 Answer: 
Operational details are not available. 
 
Q22: 
 
Reference:  Secretariat Report, page 65, para 141 
 
(v) Export finance, insurance, and guarantees (b) Export insurance and guarantees 
 
According to the Secretariat's Report, Sri Lanka Export Credit Insurance Corporation (SLECIC) is the 
only agency that insures exporters in Sri Lanka. 
 
Q:  Does the government of Sri Lanka work within  the framework of the OECD Agreement on Export 
Credit (Consensus OECD)?  WT/TPR/M/237/Add.1 
Page 18  
 
  Answer: 
No. However ,SLECIC presently engages in Short Term Export Credit Insurance and Guarantees (up 
to 6 months).  
Q23: 
 
Is the Sri Lanka Export Credit Insurance Co rporation going to co ver investment abroad? 
 Answer: 
When need arises, SLECIC intends to enter into Investment Insu rance in the future. 
 
Q24: 
 
Is Sri Lanka following special environmental or social rules (e.g as the EU does with the 
recommendation on common approaches to the envi ronment and officially supported export credits, 
the OECD Recommendation on Bribery and Officially Supported Export Credits or the Principles and 
Guidelines to promote sustainable lending)? 
 
Answer: 
Although SLECIC is engaged in short term business we  do respect  environmental or social rules.   
 Q25:  Reference:  Secretariat Report page 68, para 156  (4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(a) Competition policy and price regulation - Competition policy 
 
According to the Secretariat's Report "[There is no comprehensive single law on competition in Sri 
Lanka that outlaws practices per se; […] the competiti on body is geared mainly to dealing with the 
effect of unfair practices on consumers.  Draft co mpetition legislation is currently being analysed 
[…]". 
 
Q:  What is the current status of the draft competition legislation?  Answer: 
The draft competition legislation is an amendment to the existing Consumer Affairs Authority Act 
No. 9 of 2003 which amendments are awaiting the cl earance from the Attorney General in order to 
proceed ahead with same.  
Q26: 
 
What are its main features? 
 Answer: 
The main features are that the Consumer Affairs Authority (CAA) will be empowered to investigate 
into mergers & acquisitions and also in respect of monopoly situations once the legislation is in place.  
The Consumer Affairs Council will have powers to determine on the said issues.  The powers of the 
CAA are balanced with the existence of sector speci fic Regulators such as the Securities & Exchange 
Commission [SEC] and other Regulators in the Utilities industries such as the Public Utilities 
Commission [PUC], Telecommunicati ons Regulatory Commission [TRC].  
  WT/TPR/M/237/Add.1 
 Page 19 
 
 
  Q27: 
 Is there going to be a monitoring and enforcement mechanism?  Answer:  
As per the proposed provisions on Mergers and M onopolies CAA will have powers of enforcement of 
orders in respect of these matters.   
 
Q28: 
 
Reference:  Secretariat Report, page 70, para 166  (ii) Competition policy and price regulation 
(b) Price regulation 
 
According to the Secretariat's Report the Consumer Affairs Council (CAA) Act provides that "[…] 
any item of goods or services may be "specified" as an essential commodity by the Minister of 
Cooperatives and Internal Trade in consultation with the Consumer Affairs Authority.  Once an item 
is specified no importer, manufacturer or trader may increase the price of the product without the CAA's prior written approval. […]".  Q:  How does Sri Lanka explain that the classific ation of a good or service as an essential commodity 
(with its subsequent increase in price) does not imply a form of price control?  Answer:  
It is expected that the classification of any good or a service as an essential good or a service is  with a 
view of regulating the prices of such goods or services for the welfare of the community, particularly 
the more vulnerable segment of the population.    This provision does not allow the traders to fi x prices of essential commodities arbitrarily and 
unreasonably.  Q29:  Reference:  Secretariat Report, page 72, para 171  (iii) Incentives 
(a) Tax incentives 
 
According to the Secretariat's Report, there are two main investment incentive regimes: (a) granted to 
Board of Investment (BOI) companies (under Secti on 17 of the Board of Investment (BOI) Act), 
which enjoy tax benefits under BOI Regulation No. 2 of 2006; a nd (b) granted under the Inland 
Revenue Act No. 10 of 2006, and amendments up to the Inland Revenue (Amendments) Act No. 19 
of 2009, "[…] The first regime of incentives is ma naged by the BOI, while the second is run by the 
Inland Revenue Department (IRD) of the Ministry of  Finance.  In the last Review, it was mentioned 
that there appear to be moves to eliminate this distinction, but this has not happened". 
 
Q:  What is the state of play in eliminating th e distinction of the two largest tax incentive regimes 
notified in 2002?  
 
The Tax Commission was appointed with a wider cove rage to study country's tax system, including 
the two tax regimes and to propose a rational and equitable mechanism through which strategically 
important investments could continue to be attracted. The Tax Commission Report has been WT/TPR/M/237/Add.1 
Page 20  
 
  submitted and its recommendations wh ere appropriate would be consid ered for incorporation in the 
forthcoming national budget during November  2010.   
Q30: 
 
Does Sri Lanka agree with the statement in paragrap h 172 regarding the fact that a complex system 
of tax incentives might be distorting resources location and creating rent seeking?  Answer:  
As stated in the answer to question 29 all incentiv e schemes are under review at present and this issue 
will be addressed at the forthcoming national budget.  
 
Q31:  Reference:  Secretariats Report, page 77, para 196 
 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(v) Government procurement  Q:  Is Sri Lanka considering applying for the observer status to the GPA? 
 
Answer: 
Sri Lanka is already an observer to the WTO- GPA 
 
Q32: 
 
Reference:  Secretariat's Report, page 83, para 216 
 
The Secretariat's Report informs that a study on Sri Lanka's procurement system was conducted by 
the World Bank in 2003.  Q:  Does Sri Lanka agree with the statements in the World Bank Study of 2003? Have some of the 
recommendation taken into account?  Answer:  
Some of the World Bank recommendations have  been taken into account as appropriate.  
 Q33:  Q:  To what extent is Sri Lanka analyzing the po ssibility of applying Public-Private Partnership 
models in order to improve its  infrastructure, as many nei ghbouring countries are already doing? 
 
Answer:  
Public Private Partnership model is already being pr omoted for infrastructure projects in Sri Lanka.    
 
Q34: 
 
Intellectual Property Rights  
Before its 2
nd TPR in 2004, Sri Lanka had adopted an Inte llectual Property Act (IPR Act of 2003) and 
has been foreseeing training for customs and police officers.   WT/TPR/M/237/Add.1 
 Page 21 
 
 
  Q:  Were these training activities carried out, and a re they planned to continue on an ongoing basis 
also in the medium and long term future?  Answer: 
These activities are carried out in Colombo as well as in regions. The training and awareness building 
activities will continue and the users of IP Rights a nd the public will be particularly educated on the 
importance of   the respect for IP Rights disc ouraging the infringement to the maximum possible 
level.   A national IP Academy will be established with the assistance of WIPO  
 
Q35: 
 
According to the Secretariat's Report and also ac cording to the EU business operating on the ground, 
lack of enforcement still remains a key problem.  Ev en though IPR Act of 2003 has a wide coverage, 
pirated music, software and movies etc are freel y available in local shops.  The lack of a 
well-functioning system for the protection of fore ign brands and the lengthy and costly legal 
procedures against piracy and counterfeiting is  a major concern for foreign companies. 
 
Q:  How is Sri Lanka assessing the current situation in enforcement of IPR?  
Answer: Increased attention is being paid to enforcement aspects in a more coordinated environment by the 
relevant authorities.  
Q36: 
 
What concrete steps have been ta ken to improve the situation? 
 Answer: 
Training the enforcement officials  
Awareness building on respect for IP Rights  
Special Units within Sri Lanka Police and  Customs 
Proposal to establish a national IP Academy   
Sprits - Imports 
 
22.07 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher: 
ethyl alcohol and other spirits, denatured, of any strength  
 
HS Code CID (%) VAT (%) PAL (%) SRL (%) NBT (%) Cess (%) 
2207.10 Rs. 125/l 20.0 5.0 1.5 3.0 30.0 
2207.20.10 Rs. 125/l 20.0 5.0 1.5 3.0 30.0 
2207.20.10 15.0 20.0 5.0 1.5 3.0 0.0 
2207.20.90 Rs. 125/l 20.0 5.0 1.5 3.0 30.0 
 WT/TPR/M/237/Add.1 
Page 22  
 
  22.08 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol; 
sprits, liqueurs and other spirituous beverages  
 
HS Code CID (%) VAT (%) PAL (%) SRL (%) NBT (%) Cess (%) 
2208.20 Rs. 1,000/l 20.0 5.0 1.5 3.0 30.0 
2208.30. Rs. 1,000/l 20.0 5.0 1.5 3.0 30.0 
2208.40.10 Rs. 1,000/l (G) & 
Rs. 975/l (GT) 20.0 5.0 1.5 3.0 30.0 
2208.40.90 Rs. 1,000/l 20.0 5.0 1.5 3.0 30.0 
2208.50 Rs. 1,000/l 20.0 5.0 1.5 3.0 30.0 
2208.60 Rs. 1,000/l 20.0 5.0 1.5 3.0 30.0 
2208.70 Rs. 1,000/l 20.0 5.0 1.5 3.0 30.0 
2208.90.10 Rs. 1,000/l 20.0 5.0 1.5 3.0 30.0 
2208.90.90 Rs. 1,000/l 20.0 5.0 1.5 3.0 30.0 
 
Spirits - Locally Produced 
 
Category Excise Duty (Rs./Litre) (with effect from 24.06.2010) 
Arrack 660.00 
Other  Liquor 790.00 
Beer (Alcohol % less than 5%) 58.00 
Beer (Alcohol % 5% and more) 74.00 
Wine 515.00 
 
 
INDIA  
 
Reference:  Secretariat Report – para 2 – Page vii 
 
SUMMARY  
Para 2.of the Secretariat Report states -The incen tives programmes have been streamlined somewhat 
but continue to be complex; the authorities consid er that they have been necessary to offset the 
disincentives created by the internal strife.  Furthe r rationalization of the incentives regime could help 
improve resource allocation and overall econom ic efficiency, hence increasing Sri Lanka’s 
international competitiveness.  It could also help to  eliminate distortions and diversify production and 
trade, which remain concentrated in a few products and markets.  
Question 1. We would like Sri Lanka to elaborate and share information on its future plans to 
simplify its incentives programmes.  
Answer:  
Incentives were granted by Sri Lanka mainly to set off the disincentives that prevailed in the country 
due to the internal conflict, prior to 2009. A ll incentive programmes are presently under review. 
 
The President of Sri Lanka appointed a Commission on Taxation in mid 2009. Its mandate also 
included assessing the impact of incentive programmes. Findings of this Commission which include proposals to simplify the tax regime, have alr eady been presented and w ill be dealt with as 
appropriate,  in  the forthc oming budget (scheduled on 22
nd November 2010).  
  WT/TPR/M/237/Add.1 
 Page 23 
 
 
  It is anticipated that the  refo rms proposed therein will seek to simplify the tax regime and bring down 
the corporate tax levels to a lower level. It is al so anticipated that special  incentives will  be given 
only for projects of strategic nature.   JAPAN
 
 
Q1: 
 
Reference:  Secretariat Report – Page 35, para 19 
 III. TRADE POLICIES AND PRACTICES BY MEASURE  
(2) 
MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Procedures 
(a) Registration and documentation 
 Q:  Japan heard from local companies that there were cases where imported materials and equipment 
were kept for more than 1 month by the custom authority. Please explain how your government 
intends to improve the custom pro cedures to make them faster and more.  
 
Answer:  
Under normal circumstances for foreign investors (companies), Sri Lanka has a special speedy 
investor facilitation process through the BOI Invest or Services unit which is very effective.  
 
Presently over 90% of the consignments are releas ed on the same day provided duties and other levies 
are paid and necessary approvals from other govern ment authorities such as Food, SLSI, Quarantine 
etc are available.   Some consignments are delayed due to reasons be yond the control of the Customs. However, if the 
consignments are detained by the Customs for i nvestigations on a suspected fraud there could be 
delays.     
Q2: 
 
Reference:  Secretariat Report – page 42, para 41  
(iii) Tariffs (b) Bound tariff 
 
Q:  According to the Secretariat report, at the current applied levels, 103 HS tariff lines exceed their 
bound rates. Please explain Sri Lanka's view on the conformity of these tariffs with its obligation 
under WTO agreements.   Answer:  
The issue of applied tariff rates exceeding bound ra tes will be addressed at the national budget. Due to 
urgent need of revenue during the conflict period, par ticularly the last stages of it, certain effective 
rates had to be raised and this will be addressed.  
 WT/TPR/M/237/Add.1 
Page 24  
 
  Q3: 
 Reference:  Secretariat Report – Page 51, para 66 
 
(iv) Other charges affecting imports 
(g) Value-Added Tax 
 Q:  Japan has been requesting Sri Lanka to wo rk on more prompt refund of VAT, and the situation 
has improved due to Sri Lanka’s efforts. Please pr ovide the measures currently being taken, or having 
been taken so far, toward improving and implementing a more rapid refund of VAT.   
Answer:  Value Added tax (VAT) is imposed on both impor ts and locally purchased as a revenue tax. 
 Action is being taken to review and simplify rele vant procedures for prompt refund of VAT and 
expedite the refunds.  
 
The Department of Inland Revenue  has taken following measures. 
- More units have been established to  attend all the outstanding refunds  
- new manual for refund procedure has been implemented 
- The refunds related to special projects are dealt with separately on priority bases.  
- The audit function is limited to check the correctness of the input credit, output and 
related issues only.    
 
Q4:  Reference:  Secretariat Report – Page 75, para 183 
 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(iv) State-trading, state-owned enterprises and privatization   
Q:  According to the Secretariat report, no notificatio n has been made to the WTO with respect to the 
state-trading enterprises. Please explain the reason for the absence of the notification.  
 Answer:  
As we observe the notifications to WTO with resp ect to State Trading Enterprises are largely limited 
to the enterprises which have been granted exclusive or special rights or privileges including statutory 
or constitutional powers, in the exercise of which they influence through purchases or sales, the level 
or direction of imports or exports.     
 
None of the Sri Lankan State Trading Enterprises are covered by this definition, hence there is no 
need for notification.  
 
  WT/TPR/M/237/Add.1 
 Page 25 
 
 
  NEW ZEALAND  
 
Q1: 
 Reference:  Secretariat Report – Page 19, para 19 and Page 35, para 17 
 
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES  (2) T
RADE POLICY FORMULATION AND IMPLEMENTATION  
 
What is the structure and accountabilities of the Sri Lankan Departments and Ministries responsible 
for the regulation of food and animal products? Moreo ver, what are the roles of the Department of 
Commerce and Sri Lanka Customs within this re gulatory framework, as these are mentioned 
respectively at page 19, paragraph 19 and page 35, paragraph 17 of the Report as important 
institutions in the regulation of external trade? 
 
Answer: 
Departments and Ministries responsible for the re gulation of food and animal products are as well as 
the private sector and the consumer organizati ons are members of the Food Advisory Committee 
which is the statutory body under the Food Act.   
 
Director General Health Services is the chief author ity responsible for implementing the Food Act.   
 The Director General Customs is the Food Authorit y responsible for implementation of the Food Act 
for the imported food items.  
 
The Department of Commerce is a member of the regulations formulation sub-committee of the Food 
Advisory Committee.  Under the Food Act,  officers of the Department of Animal Production and Health are appointed as 
authorized officers for inspection and certif ication of meat and poultry products.  
 
Department of Animal Production and Health comp rises mostly of professionally qualified veterinary 
and other technical personnel dealing with h ealth of live animals and animal feed. 
 
Q2: 
 
Reference:  Secretariat Report –page 59, para 109  III. TRADE POLICES AND PRACTICES BY MEASURE  (3) M
EASURES DIRECTLY AFFECTING EXPORTS  
 
We note at page 59, paragraph 109 of  the Report that quarantine or veterinary certificates have to be 
issued by the Department of Animal Production a nd Health, if requested by the buyer of exported 
animal products. Are there any other Departments or Ministries responsible for providing export 
certification of animal products?     
Answer:  
The Department of Animal Production and Health h as the authority of issuing quarantine certificate 
on animal product exports.  The Department has the sole authority in issuing quarantine certificates 
and the Department maintains a National Animal Quar antine Service Office at Colombo to investigate 
and issue quarantine certificates for exports.   
 WT/TPR/M/237/Add.1 
Page 26  
 
  According to the Animal Diseases Act (1992) Section 34,  
 1) Export: No person shall export any animal, an imal product, veterinary drug, veterinary 
biological product, semen or embryo except under the authority of a permit issued by the Controller of Imports and Exports on the recommendation of th e Director, Department of Animal Production. 
 
2) No recommendation shall be made by the Dir ector for the issue of a permit to export any 
animal, animal product, veterinary drug, veterinary  biological product, semen or embryo unless the 
exporter produces to the Director a certificate from an Authorized Officer, before exportation. For the purpose of this section " Authorized Officer  " means a veterinary surgeon authorized by the 
Director in that behalf. 
 3) The certificate under subsection (2) shall be subs tantially in the form set out in the Second or 
Third Schedule hereto, as the case may be.  
4) Every exporter shall give at least one week's notice: to the Director of any such exportation 
 Upon request from a foreign buyer the Department of Health Services issue health certificates for 
food products destined for human consumption.   
Q3: 
 
Reference:  Secretariat Report – page 54, para 82  III. TRADE POLICES AND PRACTICES BY MEASURE  
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
 We note the Report lists categories of products at page 54, paragraph 82 that can be subject to 
standards created by the Sri Lanka Standards Institu te (SLSI). What role does the Food Control 
Administration Unit (FCAU) have in the creation of  food standards by the SLSI? Can the FCAU 
direct the SLSI to remove any redundant import tes ting requirements in a policy when the FCAU and 
the exporting country agree that the purpose of the policy has been satisfied?  Answer:  
1) Most members of the Food Advisory Committee are also members of the Sectoral Committee on Food and Agriculture which is the Technical Committee responsible for formulation, revising, 
amending and adopting of food standards.  2) SLSI controls the quality of the imported pr oducts listed under the Import Inspection Scheme 
and this is based on the Import and Export C ontrol Act no 1 of 1969 (amended in 1987) .  
 
3) Sri Lanka's national requireme nts of import testing of food products destined for human 
consumption are fully harmonized between the FACU and SLSI.  
 
4) The SLSI standards on food products are adopted under the Food Act in the absence of 
similar standards under the Food Act.  
 Q4:  Reference:  Secretariat Report – Page 56, para 91 
 
We note the information on the role of the Sri Lanka Standards Institution (SLSI) in formulating 
national standards, but there is no information on the role of the Food Advisory Committee (FAC)  WT/TPR/M/237/Add.1 
 Page 27 
 
 
  with regard to standards for food and animal pr oducts. The FAC is one of the principal bodies 
New Zealand engages with on food standards. What is the FAC’s function within the regulatory 
framework and standards formulati on for food and animal products? 
 Answer: 
National Standards are formulated, revised amende d and adopted through a committee by adopting a 
consensus process and representatives from the FAC ar e also taking part in the relevant committees 
when said processes are taking place.   In a recent development, the H ealth Ministry has adopted nati onal standards for food products 
developed by SLSI under the Food Act in the absen ce of  similar standards under the Food Act. 
 Moreover, SLSI is  represented in the Food Advi sory Committee where food related policy matters 
are discussed and therefore these institutions are having a proper coordination in relation to food 
related standards and regulations. 
 
 
PAKISTAN
 
 
Reference:  Secretariat Report  
 
Q1: As noted by the Secretariat Report, applie d tariff on 103 HS applied tariff lines exceeded their 
bound rates in June 2010. Does Sri Lanka have plans  to roll back tariffs exceeding the bindings?  
 Answer:  
Due to urgent need of revenue during the conflict period, particularly the last stages of it, certain effective rates had to be raised and this will be  addressed at the forthcoming national budget.   
 
Q2: The Secretariat Report notes that imports into  Sri Lanka are subject to a number of other 
charges including excise duty, Export Development Board Levy (cess), VAT, Social Responsibility 
levy, the Ports and Airports Development Levy, th e Nation Building tax and port handling charges, 
adding that these charges increased co nsiderably the cost of importing into Sri Lanka, which in some 
cases may exceed 100%. In certain cases these levies may not be in accordance with Article III of 
GATT 1994. Sri Lanka is requested to inform whethe r any steps are being taken to address this issue.    
 
Answer:  
Most of these border levies were imposed as a reve nue measure during the  conflict which ended in 
2009.  
 However, some of these levies apply to imports as well as domestically manufactured items. This will be addressed at the national Budget.     
Q3: The Secretariat Report states that Sri Lanka does not have any provisions in place to use 
contingency measures and that two bills containi ng provisions on anti-dumping, CV duties and 
safeguard measures were gazetted in 2005, but s till awaited the approval of Parliament. Could 
Sri Lanka state how soon the trade remed y laws are expected to be enacted? 
 
Answer:  
As there were more urgent legislations and other issues before the Parliament during the last few 
years the Government was unable to take up these two Bills. However, these bills were discussed  
extensively  at the Parliamentary Consultative Co mmittees, on the Ministry of commerce. While the 
bills were pending  the Parliament was also dissolv ed and the new Parliament was elected in April 
2010. WT/TPR/M/237/Add.1 
Page 28  
 
   
The Ministry  is in the process of re -submitting these Bills to the Parliament. 
 
Q4: The Secretariat Report states that governmen t intervention in Agriculture, including border 
protection and domestic support, remains signifi cant, adding that reducing import protection, 
rationalizing domestic support, and implementing a more consistent trade policy would allow a more 
efficient allocation of resources, thus increasing productivity and farmers’ in come. Could Sri Lanka 
explain if it has plans to reduce government int ervention in Agriculture, and through what specific 
measures? 
 
Answer: 
As in many developing countries, in Sri Lanka, the Government intervention in agriculture is largely 
based on food security, livelihood security and rural de velopment needs. Sri Lanka is also a Net Food 
Importing Developing Country.   
Frequently, the government has to maintain a delicat e balance between the consumer interest and the 
interest of the producer.  However, the government intervention in agriculture is largely limited to  research and development, 
input subsidies and  border protection through im port duties. The scale of  market interventions 
remains extremely limited.  (The total level of th is assistance remains less than 10% of Agriculture 
GDP)  
  
THAILAND
 
 
Q1:  Reference:  Secretariat Report – Page 25 – para 44  II. TRADE POLICY REGIME FRAMEWORK AND OBJECTIVES 
(4) F
OREIGN INVESTMENT REGIME   
 
Although Sri Lanka's foreign invest ment regime is generally open to foreigners, the investment 
approval process has proved to be cumbersome at  times where approval is required from several 
different agencies. When does Sri Lanka envisage es tablishing a 'one-stop' investment service center 
to facilitate foreign investment ?   
Answer: 
The GOSL is in the process of reviewing the role of  the Board of Investment (BOI) and  its current 
activities with the objective of developing an appropr iate model of operations to provide a more 
streamlined service to the investors. Time frame for this will be known after the national Budget. 
 
Q2:  TRADE POLICIES BY SECTOR 
 
Reference:  Secretariat Report – Page 112 – para 78 
 
(5) S
ERVICES  
 
Sri Lanka mentioned that market access conditions in Sri Lanka's current legislation are generally 
more liberal than those stipulated in its GATS sch edule of specific commitments. We would like to  WT/TPR/M/237/Add.1 
 Page 29 
 
 
  see Sri Lanka's revised offers reflect its current le gislation, including further commitments in sector 
where no offers have yet to be made eg. Te rtiary education, retail trade and services.  
 
Answer: 
As mentioned in the report, Sri Lanka's current level of liberalization remains higher than many 
developing countries.  Sri Lanka is presently invol ved in negotiations in Services under two regional 
trade arrangements namely  SAARC Agreement in Trade in Services and APTA. Initially new 
commitments will be undertaken within these regiona l arrangements prior to extending them to the 
multilateral level.    
 
TURKEY
 
 
Q1: 
 
Reference:  Secretariat Report  – Page 33 – para 5 
 III. TRADE POLICIES AND PRACTICES BY MEASURE (1) I
NTRODUCTION  
 In paragraph 5 of the Secretariat Report, it states 'A Special Commodity Levy was introduced in 2007 
on 11 essential food commodities, including milk powder, dhal, sugar, potatoes and onions.' 
 
In 2007, the share of red lentils ( Mansoor Dhal) in  Turkey's total exports to Sri Lanka was 53% . 
Following the introduction of the Levy under consid eration, it came down to 41% and 14% in 2008 
and 2009, respectively.   
Could you evaluate the impact of the duty on domestic production of the respective products, 
particularly lentils.    
Answer: Lentils are not produced in Sri Lanka and they  are mainly imported from Australia, Canada and 
Turkey. Special Commodity Levy which was intr oduced in 2007 on few essential commodities is a 
single composite levy in place of  all other duties/ta xes  that were previously in force. The measure 
has facilitated smooth and speedy clearance of these commodities.  
 
The split type lentils are carrying a higher rate of le vy, as compared to whole type lentils to encourage 
the local value addition. The whole type lentils are mainly imported from Australia and Canada.   
 
Q2:  
 
Reference:  Secretariat Report 
 II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES (5) A
ID FOR TRADE  
(i) Mainstreaming Trade into National Development  Strategies  
There is reference to the Mahinda Chintana: Visi on for a New Sri Lanka : A  Ten Year Horizontal 
Development Framework 2006 – 2016 in the Secret ariat Report where information is offered 
concerning national development strategies. In the 3
rd paragraph it is stated ‘strengthening of trade 
performance is identified as a macroeconomic objective , but it is not mainstreamed at an operational 
level in the national development strategy as a tool for pro-poor growth.   WT/TPR/M/237/Add.1 
Page 30  
 
  Could the Sri Lankan Government kindly point to a link where the Memb ers can reach the above 
indicated document in the English language?  Does Sri Lankan Government have a secondary developm ent  strategy with an export – oriented 
outlook? Would it consider relying more heavily on an export oriented development strategy along 
the way until 2017 , the deadline for reaching the Government’s ultimate objective of reaching an 
upper middle income country status?     Answer:  
Sri Lankas development strategy is based on ‘Mah inda Chinthana’, the Government’s Ten Year 
Horizon Developement Framework 2006 – 2016. 
(TYHDF – 2006 – 2016).   http://www.mahinda2010.lk/manifesto2010.html  or  
http://www.treasury.gov.lk/EPPRM/npd/pdfdocs/b udget2007/MahindaChinthanaTenYearDevelopme
ntPlan.pdf  The second development strategy, the Vision 2020 docume nt is being prepared by the Department of 
National Planning and this document will be publis hed in mid November along with the Budget 2011. 
The new development strategy for the 2011-2020 period aims at developing an export oriented 
economy. The new development strategy foresee an average economic growth rate of 10.5 for the 
next ten year and the country is expected to r each the upper middle income country status by 2016. 
 
Q3:  
Reference:  Government Report – Page 8-9 – para 23 
 III. TRADE POLICY  
In paragraph 23 of the Government  Report it states 'S ri Lanka has also entered into two bilateral trade 
agreements: Indo Sri Lanka Free Trade Agreement (ISFTA)_ and the Pakistan – Sri Lanka Free Trade 
Agreement (PSFTA), signed in 1998 and 2002 respectively'. 
 
Q: Does the Sri Lankan Government have the inte ntion to sign free trade agreement with other 
countries in the near future and if so, could the Sri Lankan representative kindly offer the names of 
those countries?    
Answer: 
At present the Government has not taken a decision on any new FTA's. 
   WT/TPR/M/237/Add.1 
 Page 31 
 
 
  UNITED STATES  
 
Q1: 
 Reference:  Government Report – Page 10 – para 33 
 
I. ECONOMIC ENVIRONMENT (7) T
RENDS AND DEVELOPMENTS IN TRADE AND FOREIGN DIRECT INVESTMENT  
(ii) Direction of merchandise trade 
 
Page 10, paragraph 33: Please explain Sri Lanka's restriction of imports of ruminant products from 
countries that are classified as Bovine Spongiform  Encephalopathy (BSE) "controlled-risk" by the 
OIE in light of Sri Lanka's WTO commitments. 
 
Answer: 
Given that any outbreak of BSE  could have drastic  repercussions on human health and the livelihood 
of vulnerable segments of  societies specially rural farmer communities, animal health authorities exercised caution with regard to such imports.   No recommendation shall be made by the Director regarding the issue of a permit to import any animal product unless the importer produces a certificate from the Chief Veterinary Officer or 
authorized Veterinary Officer of origin of the an imal product stating that such animal product is free 
from any infective substances that is likely to cau se disease in animals.  The details of contagious 
diseases are available at www.dhpa.gov.lk under “Act s and Regulations of the Animal Diseases Act”. 
 
Q2: 
 
Reference:  Secretariat Report – Page 12 – para 33 
 
Page 12, paragraph 33: Please explain Sri Lanka's ban on imports of living modified organisms in 
light of Sri Lanka's WTO obligations. 
 
Answer: 
There is no ban on such organisms but restricted through regulations for environmental and health 
reasons and also obligations to provide the information to the consumers.  
Q3: 
 
Reference:  Secretariat Report – Page 42, para 41  III. TRADE POLICIES AND PRACTICES BY MEASURE (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(iii) Tariffs 
(b) Bound tariff 
 
Page 42, paragraph 41: The Secretariat Report stat es –"At the current applied levels, 103 HS tariff 
lines exceed their bound rates (Table AIII.2).  The products affected are mostly tobacco products, 
textiles, carpets, ploughs, and switches." When will Sri Lanka lower its applied import tariffs to meet 
its WTO bound tariffs commitment? When will Sri Lanka lower its applied import tariffs on certain 
textile products, including all carpets and rugs in HS chapter 57, to meet its WTO bound tariffs 
commitment? WT/TPR/M/237/Add.1 
Page 32  
 
   
Answer:  
The issue of bound rates will be addressed at the national budget . Due to urgent need of revenue 
during the conflict, certain effective rates were increased.  Sri Lanka will keep the WTO informed 
with regard to this area.   Q4:  Reference:  Secretariat Report – Page 53, para 75 
 
(v) Import restrictions, and licensing 
(b) Import licensing 
Page 53, paragraph 75:  The report states:  "Pro ducts subject to non-automatic licences cover an 
array of goods including grains, chemicals, petroleu m, and motor vehicles.  In March 2010, 512 items 
at the eight-digit level were subject to import licen sing, compared with 474 reported in the last 
Review."  Page x, paragraph 18 of the report also st ates that “Sri Lanka's use of non-tariff barriers is 
relatively limited, with the exception of non au tomatic import licensing requirements, which are 
applied on some 500 tariff lines, covering goods including grains, chemicals, some textiles, petroleum, and motor vehicles.  Please provide a current list of all specific products subject to 
non-automatic licensing. 
 
Answer:  
Most items under license are at 8 digit level. These  items are published in the government gazette and 
the list is  attached.  
Q5: 
 
Reference:  Secretariat Report – Page 57, para 99   
 
(viii) Sanitary and phy tosanitary measures 
 
Page 57, paragraph 99:  The Secretariat Report states that Sri Lanka's food imports are regulated by 
the Food Control Act No. 2 of 1950 and the Food Ac t No. 26 of 1980, and their amendments….  Other 
legislation covering SPS issues include Plant Prot ection… 1999 and Animal Diseases Act… 1992."   
 
Q:  Can Sri Lanka please explain how it harmoni zes its existing and future SPS legislation and 
corresponding implementing regulations with principles of the WTO SPS Agreement and 
international standards such as those of Codex, the OIE and the IPPC? 
 Answer:  
All food and agricultural products imported for hum an consumption are regulated under the Food Act 
and its regulations. The meat and the poultry products  are jointly inspected and certified by the Health 
Ministry and the Department of Animal Production and Health to prevent transmission of Zoonotic 
diseases.  
 Regulations under the Food Act are formulated taking into account Codex guidelines and the WTO 
principles of the SPS Agreement.    WT/TPR/M/237/Add.1 
 Page 33 
 
 
  Q6: 
 Reference:  Secretariat Report – Page 85, para 228 
 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(vi) Intellectual property rights 
 
Page 85, paragraph 228 indicates that "plants, animals, and other micro-organisms other than transgenic ones" are not patentable.  If th is means that microorganisms or transgenic 
microorganisms are not patentable, please explain the rationale behind this exclusion.  
 
Answer: 
Only the transgenic microorganisms are patentable . Microorganisms are life forms naturally occurring 
therefore do not constitute patentable inventions.  Q7:  Reference:  Secretariat Report – Page 88, para 238 
 
Page 88, paragraph 238: Do the exclusive rights in  a design extend to artic les bearing or embodying 
a design which is substantially a copy of the pr otected design?  Does Sri Lanka consider the system 
for cancellation of the registration of a license by  NIPO to implement its obligations under TRIPs 
Art. 26(2)?  Please explain. 
 
Answer:  
Yes.  
The registration of a licence agreement is not ma ndatory. The cancellation can occur only where the 
licence contract adversely affects the economic development of Sri Lanka.     
Q8: 
 
Reference:  Secretariat Report – Pages 89-90, para 247-249  
Pages 89-90, paragraphs 247-249: Can Sri Lanka describe its system for protecting undisclosed 
marketing approval data for pharmaceutical and agricultural chemical products from unfair 
commercial use? 
 
Answer:  
The government agencies who receive such informati on are bound to protect the confidentiality of 
such information. WT/TPR/M/237/Add.1 
Page 34  
 
   
H.S. 
Hdg. 
(1) H.S. 
Code 
(2) Description 
(3) 
  0102.10 Pure-bred breeding animals 
  0102.90 Other  
  0103.10 Pure-bred breeding animals 
  0103.91 Weighing less than 50 kg 
  0103.92 Weighing 50 kg or more 
  0104.10.10 Pure-bred breeding animals 
  0104.10.90 Other 
  0104.20.10 Pure-bred breeding animals 
  0104.20.90 Other 
  0106.11 Primates 
  0106.12 Whales, dolphins and porpoises (mammals of  the order Cetacea); manatees and dugongs (mammals 
of the order Sirenia) 
  0106.19.90 Other 
  0106.20.10 Of a kind used for human food 
  0106.31.10 Of a kind used for human food 
  0106.32.10 Of a kind used for human food 
  0106.39.10 Of a kind used for human food 
  0106.90.10 Of a kind used for human food 
  0201.10 Carcasses and half-carcasses 
  0201.20 Other cuts with bone in 
  0201.30 Boneless 
  0202.10 Carcasses and half-carcasses 
  0202.20 Other cuts with bone in 
  0202.30 Boneless 
  0204.10 Carcasses and half-car casses of lamb, fresh or chilled 
  0204.21 Carcasses and half-carcasses 
  0204.22 Other cuts with bone in 
  0204.23 Boneless 
  0204.30 Carcasses and half-carcasses of lamb, frozen 
  0204.41 Carcasses and half-carcasses 
  0204.42 Other cuts with bone in 
  0204.43 Boneless 
  0204.50 Meat of goats 
  0206.10 Of bovine animals, fresh or chilled 
  0206.21 Tongues 
  0206.22 Livers 
  0206.29 Other 
  0206.30 Of swine, fresh or chilled 
  0206.41 Livers 
  0206.49 Other 
  0206.80 Other, fresh or chilled 
  0206.90 Other, frozen 
  0208.30 Of primates 
  0208.40 Of whales, dolphins and porpoises (mammals of the order Cetacea ); of manatees and dugongs 
(mammals of the order Sirenia ) 
  0208.50 Of reptiles (including snakes and turtles) 
  0208.90.90 Other 
  0210.20 Meat of bovine animals 
  0210.91 Of primates 
  0210.92 Of whales, dolphins and porpoises (mammals  of the order Cetacea); of manatees and dugongs 
(mammals of the order Sirenia) 
  0210.93 Of reptiles (including snakes and turtles) 
  0210.99 Other  WT/TPR/M/237/Add.1 
 Page 35 
 
 
  H.S. 
Hdg. 
(1) H.S. 
Code 
(2) Description 
(3) 
05.04 0504.00 Guts, bladders and stomachs of animals (other than fish), whole and pieces thereof, fresh, 
chilled, frozen, salted, in brine, dried or smoked. 
  0506.10.10 Waste 
  0506.10.90 Other 
  0506.90.10 Waste 
  0506.90.90 Other 
  0510.00.10 Ambergirs 
  0510.00.90 Other 
  0511.10 Bovine semen 
  0511.99.10 Fellmongery waste 
  0511.99.20  Swine semen 
  0511.99.30  Goat semen 
  0511.99.40 Embryos 
  0511.99.90 Other 
  0801.31.10 Fresh 
  0801.31.90 Other 
  1005.10 Seed 
  1006.10 Rice in the husk (paddy or rough) 
  1502.00.10 Tallow  
  1502.00.90 Other 
15.03 1503.00 Lard stearin, lard oil, oleostea rin, oleo-oil and tallow oil, not emulsified or mixed or otherwise 
prepared. 
16.01 1601.00 Sausages and similar products, of meat, meat offa l or blood; food preparations based on these 
products. 
  1602.10 Homogenised preparations 
  1602.20 Of liver of any animal 
  1602.39 Other  
  1602.49 Other, including mixtures 
  1602.50 Of bovine animals 
  1602.90 Other, including preparations of blood of any animal 
16.03 1603.00 Extracts and juices of meat, fish or crustacea ns, molluscs or other aquatic invertebrates. 
  1703.10 Cane molasses 
  1703.90 Other 
  2104.10 Soups and broths and preparations therefor 
  2104.20 Homogenised composite food preparations 
  2207.10 Undenatured ethyl alcohol of an alcoho lic strength by volume of 80% vol or higher 
  2207.20.10 Spirits denatured in accordance with re gulations framed under the Excise Ordinance 
  2207.20.20 Spirits citronella im ported for testing citronella oil; industria l spirits imported for de-icing aircraft 
  2207.20.90 Other 
  2301.10 Flours, meals and pellets, of meat or meat offal; greaves 
  2309.10 Dog or cat food, put up for retail sale 
  2309.90.30 Poultry feed 
  2309.90.90 Other  
  2524.10 Crocidolite 
  2530.90.10 Natural arsenic sulphides 
  2612.10 Uranium ores and concentrates 
  2612.20 Thorium ores and concentrates 
  2710.11.10 Aviation spirit 
  2710.11.20 Petrol 
  2710.11.30 Motor spirit other than petrol 
  2710.11.40 Spirit type jet fuel 
  2710.11.90 Other 
  2710.19.10 Kerosene other than  kerosene type jet fuel 
  2710.19.20 Kerosene type jet fuel 
  2710.19.30 Other medium oils and preparations 
  2710.19.40 Gas oil / Diesel WT/TPR/M/237/Add.1 
Page 36  
 
  H.S. 
Hdg. 
(1) H.S. 
Code 
(2) Description 
(3) 
  2710.19.60 Fuel oil 
  2710.19.70 Lubricating oils (Base-oils) for the preparation of lubricants 
  2710.19.80 Lubricants  
  2710.19.90 Other 
  2710.91 Containing polychlorinated biphenyls (PCBs), pol ychlorinated terphenyls (PCTs) or polybrominated 
biphenyls (PBBs) 
  2710.99 Other 
  2711.11 Natural gas 
  2711.12 Propane 
  2711.13 Butanes 
  2711.14 Ethylene, propylene , butylene and butadiene 
  2711.19.10 Liquefied Petroleum Gas 
  2711.19.90 Other  
  2711.21 Natural gas 
  2711.29 Other 
  2713.20 Petroleum bitumen 
  2804.70 Phosphorus 
  2804.80 Arsenic 
  2825.10 Hydrazine and hydroxylamine and their inorganic salts 
  2829.11 Of sodium 
  2829.19 Other 
  2829.90 Other 
  2834.10 Nitrites 
  2834.21 Of potassium 
  2834.29.90 Other  
   2842.90.30 Fulminates, cyanates and thiocyanates 
  2843.30 Gold compounds 
  2844.10 Natural uranium and its compounds; alloys, disp ersions (including cermets), ceramic products and 
mixtures containing natural uranium or natural uranium compounds 
  2844.20 Uranium enriched in U 235 and its compounds; plutonium and its compounds; alloys, dispersions 
(including cermets), ceramic products and mixt ures containing uranium enriched in U 235, 
plutonium or compounds of these products 
  2844.30 Uranium depleted in U 235 and its compounds; thorium and its compounds; alloys, dispersions 
(including cermets), ceramic products and mixtures  containing uranium depleted in U 235, thorium 
or compounds of these products 
  2844.40 Radioactive elements and isotopes and compounds  other than those of subheading 2844.10, 2844.20 
or 2844.30; alloys, dispersions (including cermets),  ceramic products and mixtures containing these 
elements, isotopes or compounds; radioactive residues 
  2844.50 Spent (irradiated) fuel elements  (cartridges) of nuclear reactors 
  2845.10 Heavy water (deuterium oxide) 
  2845.90 Other 
28.50 2850.00 Hydrides, nitrides, azides, silicides and borides, whether or not chemically defined, other than 
compounds which are also carbides of heading 28.49. 
28.52 2852.00 Compounds, inorganic or organic, of mercury, excluding amalgams . 
  2903.14 Carbon tetrachloride 
  2903.19.10 1,1,1-Trichloroethane (methyl chloroform) 
  2903.39.10 Bromomethane (methyl bromide) 
  2903.41 Trichlorofluoromethane 
  2903.42 Dichlorodifluoromethane 
  2903.43 Trichlorotrifluoroethanes 
  2903.44 Dichlorotetrafluoroethanes and chloropentafluoroethane 
  2903.45.10 Chlorotrifluoromethane 
  2903.45.21 Pentachlorofluoroethane 
  2903.45.22 Tetrachlorodifluoroethanes 
  2903.45.31 Heptachlorofluoropropanes 
  2903.45.32 Hexachlorodifluoropropanes 
  2903.45.33 Pentachlorotrifluoropropanes  WT/TPR/M/237/Add.1 
 Page 37 
 
 
  H.S. 
Hdg. 
(1) H.S. 
Code 
(2) Description 
(3) 
  2903.45.34 Tetrachlorotetrafluoropropanes 
  2903.45.35 Trichloropentafluoropropanes 
  2903.45.36 Dichlorohexafluoropropanes 
  2903.45.37 Chloroheptafluoropropanes 
  2903.45.90 Other 
  2903.46 Bromochorodifluoromethane, bromotrifluor omethane and dibromotetrafluoroethanes 
  2903.47 Other perhalogenated derivatives 
  2903.49.10 Chlorodifluoromethane 
  2903.49.20 Dichlorotrifluoroethanes 
  2903.49.30 Chlorotetafluoroethanes 
  2903.49.40 Dichlorofluoroethanes 
  2903.49.50 Chlorodifluoroethanes 
  2903.49.60 Dichloropentafluoropropanes 
  2903.49.70 Other derivatives of methane, ethane or propane halogenated only w ith fluorine and chlorine 
  2903.49.80 Derivatives of methane, ethane or prop ane halogenated only with fluorine and bromine  
  2903.49.91 Dibromochloropropane (DBCP) 
  2903.49.99 Other 
  2904.20.10 Nitrated derivatives of aromatic hydrocarbon 
  2905.11 Methanol (methyl alcohol) 
  2905.51 Ethchlorvynol (INN) 
  2905.59 Other 
  2908.91 Dinoseb (ISO) and its salts 
  2908.99.10 Nitrated derivatives 
  2909.19.10 Nitrated derivatives 
  2909.20.10 Nitrated derivatives 
  2909.30.10 Nitrated derivatives 
  2909.41.10 Nitrated derivatives 
  2909.43.10 Nitrated derivatives 
  2909.44.10 Nitrated derivatives 
  2909.49.10 Nitrated derivatives 
  2909.50.10 Nitrated derivatives 
  2909.60.10 Nitrated derivatives 
  2912.11 Methanal (formaldehyde) 
  2920.11  Parathion (ISO) and parathion-methyl (ISO) (methyl-parathion) 
  2920.19.10 Fenithrothian and other nitrated derivatives 
  2921.41 Aniline and its salts 
  2921.42 Aniline derivatives and their salts 
  2921.43 Toluidines and their derivatives; salts thereof 
  2921.44 Diphenylamine and its derivatives; salts thereof 
  2921.45 1-Naphthylamine (alpha-na phthylamine), 2-naphthylamine (beta-naphthylamine) and their 
derivatives; salts thereof 
  2921.46 Amfetamine (INN), benzfetamine (INN) , dexamfetamine (INN), etilamfetamine (INN), 
fencamfamin (INN), lefetamine (INN), levamf etamine (INN), mefenorex (INN) and phenetermine 
(INN); salts thereof 
  2921.49 Other 
  2924.11 Meprobamate (INN) 
  2924.12 Fluoroacetamide (ISO), monocro tophos (ISO) and phosphamidon (ISO) 
  2924.19 Other 
  2924.21 Ureines and their derivatives; salts thereof 
  2924.23.20 Salts of 2-A cetamidobenzoic acid (N-acetylanthranilic acid) 
  2924.24 Ethinamate (INN) 
  2924.29.10 Metalaxyl 
  2924.29.20 Fenobucarb (2-sec-butylphenyl methylcarbamate) 
  2924.29.30 Propanyl 
  2924.29.40 Propoxur 
  2924.29.90 Other WT/TPR/M/237/Add.1 
Page 38  
 
  H.S. 
Hdg. 
(1) H.S. 
Code 
(2) Description 
(3) 
  2925.21 Chlordimeform (ISO)  
  2925.29 Other 
  2929.10 Isocyanates 
  2929.90 Other 
  2930.90.10 Malathion 
  2933.21 Hydantoin and its derivatives 
  2933.52 Malonylurea (barbituric acid) and its salts 
  2933.53 Allobarbital (INN), amobarbital (INN), barbita l (INN), butalbital (INN), butobarbital cyclobarbital 
(INN), methylphenobarbital (INN), pentobarbital (IN N), phenobarbital (INN), secbutabarbital (INN), 
secobarbital (INN), and vinylb ital (INN); salts thereof 
  2933.54 Other derivatives of malonylurea (barbituric acid); salts thereof 
  2933.69 Other 
  3001.20 Extracts of glands or other organs or of their secretions 
  3001.90 Other 
  3002.10 Antisera and other blood fracti ons and modified immunological pr oducts, whether or not obtained by 
means of biotechnological processes 
  3002.20 Vaccines for human medicine 
  3002.30 Vaccines for veterinary medicine 
  3002.90.10 Saxitoxin ([(4R)-10,10-dihydroxy-2,6-diimi nooctahydro-1H,8H-pyrrolo[1,2-c]purin-4-yl]methyl 
carbamate) 
  3002.90.90 Other 
  3003.10 Containing penicillins or derivativ es thereof, with a penicillanic aci d structure, or streptomycins or 
their derivatives 
  3003.20 Containing other antibiotics 
  3003.31 Containing insulin 
  3003.39 Other 
  3003.40 Containing alkaloids or derivatives thereof but not containing hormones or other products of heading 
29.37 or antibiotics 
  3003.90.11 Schedule 01 preparations certif ied by the Commissioner of Ayurveda 
  3003.90.12 Schedule 02 preparations certif ied by the Commissioner of Ayurveda 
  3003.90.13 Schedule 03 preparations certif ied by the Commissioner of Ayurveda 
  3003.90.14 Schedule 04 preparations certif ied by the Commissioner of Ayurveda 
  3003.90.15 Schedule 05 preparations certif ied by the Commissioner of Ayurveda 
  3003.90.19 Other 
  3003.90.90 Other 
  3004.10 Containing penicillins or derivativ es thereof, with a penicillanic aci d structure, or streptomycins or 
their derivatives 
  3004.20 Containing other antibiotics 
  3004.31 Containing insulin 
  3004.32 Containing adrenal corticosteroid hormone s, their derivatives or structural analogues 
  3004.39 Other 
  3004.40 Containing alkaloids or derivatives thereof but  not containing hormones, other products of heading 
29.37 or antibiotics 
  3004.50 Other medicaments containing vitami ns or other products of heading 29.36 
  3004.90.11 Schedule 01 preparations certif ied by the Commissioner of Ayurveda 
  3004.90.12 Schedule 02 preparations certif ied by the Commissioner of Ayurveda 
  3004.90.13 Schedule 03 preparations certif ied by the Commissioner of Ayurveda 
  3004.90.14 Schedule 04 preparations certif ied by the Commissioner of Ayurveda 
  3004.90.15 Schedule 05 preparations certif ied by the Commissioner of Ayurveda 
  3004.90.19 Other 
  3004.90.20 Antineoplastics and immunosuppressives 
  3004.90.90 Other 
  3006.10 Sterile surgical catgut,similar sterile suture mate rials (including sterile absorbable surgical or dental 
yarns) and sterile tissue adhesives for surgical w ound closure; sterile laminaria and sterile laminaria 
tents; sterile absorbable surgical or dental haemosta tics; sterile  surgical or  dental adhesion barriers, 
whether or not absorbable 
  3006.20 Blood-grouping reagents  WT/TPR/M/237/Add.1 
 Page 39 
 
 
  H.S. 
Hdg. 
(1) H.S. 
Code 
(2) Description 
(3) 
  3006.30 Opacifying preparations for X-ray examinations; di agnostic reagents designed to be administered to 
the patient 
  3006.92 Waste pharmaceuticals 
31.01 3101.00 Animal or vegetable fertilizers, whether or not mi xed together or chemica lly treated; fertilisers 
produced by the mixing or chemical trea tment of animal or vegetable products. 
35.03 3503.00 Gelatin (including gelatin in rectangular (inc luding square) sheets, whether or not surface-
worked or coloured) and gelatin derivatives; isin glass; other glues of animal origin, excluding 
casein glues of heading 35.01. 
36.01 3601.00 Propellent powders. 
36.02 3602.00 Prepared explosives, other than propellent Powders. 
36.03 3603.00 Safety fuses; detonating fuses; percussion or detonating caps; igniters; electric detonators. 
  3604.10 Fireworks 
  3604.90 Other 
  3808.50.10 Mosquito coils 
  3808.50.20 Other insecticides 
  3808.50.90 Other 
  3808.91.10 Mosquito coils 
  3808.91.20 Other containing brom omethane (methyl bromide)  or bromochloromethane 
  3808.91.90 Other 
  3808.92.10 Containing bromomethane (methy l bromide) or bromochloromethane 
  3808.92.90 Other 
  3808.93.10 Containing bromomethane (methy l bromide) or bromochloromethane 
  3808.93.90 Other 
  3808.94.10 Containing bromomethane (methy l bromide) or bromochloromethane 
  3808.94.90 Other 
  3808.99.10 Containing bromomethane (methy l bromide) or bromochloromethane 
  3808.99.90 Other 
  3824.71 Containing chlorofluorocarbons (CFCs), whethe r or not  containing hydrochlorofluorocarbons 
(HCFCs), perflurocarbons (PFCs) or hydroflurocarbons (HFCs)   
  3824.72 Containing bromochlorodifluor omethane, bromotrifluoromethane or dibromotetrafluoroethanes 
  3824.73 Containing hydrobromofluorocarbons (HBFCs)  
  3824.74 Containing hydrochlorofluorocarbons (HCFCs), whether or not  containing perflurocarbons (PFCs) 
or hydroflurocarbons (HFCs), but not containing chlorofluorocarbons (CFCs) 
  3824.77 Containing bromomethane (methy l bromide) or bromochloromethane 
  3824.79 Other 
  4012.11 Of a kind used on motor cars (i ncluding station wagons and racing cars) 
  4012.12 Of a kind used on buses or lorries 
  4012.13 Of a kind used on aircraft 
  4012.19 Other 
  4012.20 Used pneumatic tyres 
  4813.10 In the form of booklets or tubes 
  4813.20 In rolls of a width not exceeding 5 cm 
  4813.90 Other 
  6810.11.10 Concrete cement blocks encasing industrial waste sludge 
  6810.99.10 Concrete cement blocks encasing industrial waste sludge 
  7108.20 Monetary 
  7112.30.90 Other 
  7112.92 Of platinum, including metal clad with platin um but excluding sweepings containing other precious 
metals 
  7112.99 Other 
  7118.10 Coin (other than gold coin), not being legal tender 
  7118.90.90 Other 
  8401.10 Nuclear reactors 
  8401.40 Parts of nuclear reactors 
  8407.31.10 More than ten years old 
  8407.32.10 More than ten years old 
  8407.33.10 More than ten years old WT/TPR/M/237/Add.1 
Page 40  
 
  H.S. 
Hdg. 
(1) H.S. 
Code 
(2) Description 
(3) 
  8407.34.10 More than ten years old 
  8407.90.10 More than ten years old 
  8408.20.20 Diesel engines of four cylinders and over of a cylinder capacity of 3250 cc and over exceeding ten 
years of age imported for the local assembly  of vehicles of heading 87.02 or 87.04 
  8408.20.40 Other diesel engines of f our cylinders and over of a cylinder capacity of 3250 cc and over exceeding 
ten years of age 
  8408.20.60 Diesel engines of a cylinder capacity not exceed ing 750 cc exceeding three years of age imported for 
industrial or agricultural purposes 
  8408.20.92 Exceeding five years of age 
  8408.90.10 More than ten years old 
  8415.10.10 Used / reconditioned 
  8415.20.10 Used / reconditioned 
  8415.81.10 Used / reconditioned 
  8415.82.10 Used / reconditioned 
  8415.83.10 Used / reconditioned 
  8418.10.10 Used / reconditioned 
  8418.21.10 Used / reconditioned 
  8418.29.10 Used / reconditioned absorption-type, electrical 
  8418.29.30 Other used / reconditioned 
  8418.30.10 Not exceeding 566 1 used / reconditioned 
  8418.30.30 Other, us ed / reconditioned 
  8418.40.10 Not exceeding 566 1 used / reconditioned 
  8418.40.30 Other, us ed / reconditioned 
  8418.50.10 Used / reconditioned 
  8418.61.10 Cabinet and chest type  refrigerators exceeding 566 1 an d below 850 1 used/ reconditioned 
  8418.61.30 Blast-freezers fo r preserving poultry meat used/ reconditioned 
  8418.61.50 Milk chilling ta nks used/ reconditioned 
  8418.61.70 Other, us ed / reconditioned 
  8418.69.10 Cabinet and chest type  refrigerators exceeding 566 1 an d below 850 1 used/ reconditioned 
  8418.69.30 Blast-freezers fo r preserving poultry meat used/ reconditioned 
  8418.69.50 Milk chilling ta nks used/ reconditioned 
  8418.69.70 Other, us ed / reconditioned 
  8428.10.20 More than seven years old 
  8428.20.20 More than seven years old 
  8428.31.20 More than seven years old 
  8428.32.20 More than seven years old 
  8428.33.20 More than seven years old 
  8428.39.20 More than seven years old 
  8428.40.20 More than seven years old 
  8428.60.20 More than seven years old 
  8428.90.20 Stressing jacks, more than 07 years old 
  8428.90.40 Other more than 07 years old 
  8433.11.20 Other, more than ten years old 
  8433.19.20 Other, more than ten years old 
  8433.20.20 Other, more than ten years old 
  8433.30.20 Other, more than ten years old 
  8433.40.20 Other, more than ten years old 
  8433.51.20 Other, more than ten years old 
  8433.52.20 Other, more than ten years old 
  8433.53.20 Other, more than ten years old 
  8433.59.20 Other, more than ten years old 
  8433.60.20 Other, more than ten years old 
  8433.90.20 More than ten years old, for subheadings 8433.11 & 8433.19 
  8433.90.50 Other, more than ten years old 
  8443.31.10 Combined with multi- colour copying machines 
  8443.32.10 Multi-colour copying machines  WT/TPR/M/237/Add.1 
 Page 41 
 
 
  H.S. 
Hdg. 
(1) H.S. 
Code 
(2) Description 
(3) 
  8443.39.10 Multi-colour copying machines, whether or not combined with prin ters and / or facsimile machines 
  8517.12.10 Used / reconditione d cellular mobile telephones 
  8517.12.20 Other, cellular mobile telephones 
  8517.12.90 Other 
  8517.61.10 Transmission apparatus in corporating reception apparatus 
  8517.61.20 Transmission apparatus 
  8517.62.10 Transmission apparatus in corporating reception apparatus 
  8517.62.20 Transmission apparatus 
  8525.50 Transmission apparatus 
  8525.60 Transmission apparatus in corporating reception apparatus 
  8701.10.10 More than ten years old 
  8701.20.20 More than five years old 
  8701.30.20 More than five years old 
  8701.90.20 Agricultural tractors, more than ten years old 
  8701.90.40 Other, more than ten years old 
  8702.10.20 Motor vehicles for the transport of less than 13 persons (adults) including the driver, more than three 
and half years old 
  8702.10.40 Motor vehicles for the transport of 13 or mo re persons (adults) but less than 17 persons (adults) 
including the driver, more than five years old 
  8702.10.60 Other, more than five years old 
  8702.90.20 Motor vehicles for the transport of less than 13 persons (adults) including the driver, more than three 
and half years old 
  8702.90.40 Motor vehicles for the transport of 13 or mo re persons (adults) but less than 17 persons (adults) 
including the driver, more than five years old 
  8702.90.60 Other, more than five years old 
  8703.10.20 More than three and half years old 
  8703.21.20 Ambulances and prison vans more than three and half years old  
  8703.21.40 Hearses more than three and half years old  
  8703.21.52 Driven by liquefied petroleum (LP) gas more than three and half years old 
  8703.21.54 Other more than three and half years old 
  8703.21.70 Motor cars including station wagons and raci ng cars, more than three and half years old 
  8703.21.92 More than three and half years old 
  8703.22.20 Ambulances and prison vans more than three and half years old  
  8703.22.40 Hearses more than three and half years old  
  8703.22.60 Motor cars including station wagons and raci ng cars, more than three and half years old 
  8703.22.80 Other, more than three and half years old 
  8703.23.20 Ambulances and prison vans more than three and half years old  
  8703.23.40 Hearses more than three and half years old  
  8703.23.60 Motor cars including sta tion wagons and racing cars of a cyli nder capacity not exceeding 2,000 cc, 
more than three and half years old 
  8703.23.80 Motor cars including station wagons and racing cars of a cylinde r capacity exceeding 2,000 cc, more 
than three and half years old 
  8703.23.92 Of a cylinder capacity not exceeding 2, 000 cc, more than three and half years old 
  8703.23.94 Of a cylinder capacity exceeding 2,000 cc, more than three and half years old 
  8703.24.20 Ambulances and prison vans more than three and half years old  
  8703.24.40 Hearses more than three and half years old  
  8703.24.60 Motor cars including station wagons and raci ng cars, more than three and half years old 
  8703.24.80 Other, more than three and half years old 
  8703.31.20 Ambulances and prison vans more than three and half years old  
  8703.31.40 Hearses more than three and half years old  
  8703.31.60 Auto-trishaws more than three and half years old 
  8703.31.80 Motor cars including station wagons and raci ng cars, more than three and half years old 
  8703.31.92 More than three and half years old 
  8703.32.20 Ambulances and prison vans more than three and half years old  
  8703.32.40 Hearses more than three and half years old  
  8703.32.60 Motor cars including station wagons and racing cars of a cylinde r capacity not exceeding 2,000 cc, 
more than three and half years old WT/TPR/M/237/Add.1 
Page 42  
 
  H.S. 
Hdg. 
(1) H.S. 
Code 
(2) Description 
(3) 
  8703.32.80 Motor cars including station wagons and racing cars of a cylinde r capacity exceeding 2,000 cc, more 
than three and half years old 
  8703.32.92 Of a cylinder capacity not exceeding 2, 000 cc, more than three and half years old 
  8703.32.94 Of a cylinder capacity exceeding 2,000 cc, more than three and half years old 
  8703.33.20 Ambulances and prison vans more than three and half years old  
  8703.33.40 Hearses more than three and half years old  
  8703.33.60 Motor cars including station wagons and r acing cars, more than three and half years old 
  8703.33.80 Other, more than three and half years old 
  8703.90.20 Electric auto-trishaws more than three and half years old 
  8703.90.40 Other electric, more than three and half years old 
  8703.90.60 Other, more than three and half years old 
  8704.21.12 More than five years old 
  8704.21.30 Chassis fitted with engines and cabs for vehicles of nationa l subdivision 8704.21.52, more than five 
years old 
  8704.21.42 More than five years old 
  8704.21.52 More than five years old 
  8704.21.62 More than five years old 
  8704.21.72 More than five years old 
  8704.21.82 More than five years old 
  8704.21.92 More than five years old 
  8704.22.20 More than five years old 
  8704.23.20 Tankers and bowsers with st ainless steel tanks for transport of milk, refrigerated trucks, lorries and 
other trucks more than five years old 
  8704.23.40 Other, more than five years old 
  8704.31.12 More than five years old 
  8704.31.30 Chassis fitted with engi nes and cabs for vehicles of nationa l subdivision 8704.31.42, more than 
five years old 
  8704.31.42 More than five years old 
  8704.31.52 More than five years old 
  8704.31.62 More than five years old 
  8704.31.72 More than five years old 
  8704.31.92 More than five years old 
  8704.32.20 Tankers and bowsers with stainless steel ta nks for transport of milk, more than five years old 
  8704.32.40 Other, more than five years old 
  8704.90.20 Electric auto-trishaws more than five years old 
  8704.90.40 Other electric, more than five years old 
  8704.90.60 Other, more than five years old 
  8705.20.20 More than seven years old 
  8705.30.20 More than seven years old 
  8705.90.20 Mobile workshops, more than seven years old 
  8705.90.40 Other, more than seven years old 
  8706.00.50 Used chassis fitted with engines  
  8707.10 For the vehicles of heading 87.03 
  8707.90.10 Bodies and cabs incorporating attachments left over in the process of separating same from the main 
vehicle by cutting, but not meriti ng classification elsewhere by virtue  of those left over attachments 
  8707.90.90 Other 
  8708.29.10 "Cut-portions" of bodies and cabs 
  8708.70.10 Rims fitted with tyre s, showing signs of wear 
  8708.99.30 Other used chassis not fitted with  engines, but with or without fittings 
  8708.99.40 "Cut-portions" of motor vehicles  
  8711.10.20 More than three years old 
  8711.20.20 Exceeding 50 cc but not exceeding 2 00 cc,  more than three years old 
  8711.20.40 Other, more than three years old 
  8711.30.90 Other   
  8711.40 With reciprocating internal combustion pi ston engine of a cylinder capacity  exceeding 500 cc but 
not exceeding 800 cc  
  8711.50 With reciprocating internal combustion piston engine of a cylinder capacity exceeding 800 cc   WT/TPR/M/237/Add.1 
 Page 43 
 
 
  H.S. 
Hdg. 
(1) H.S. 
Code 
(2) Description 
(3) 
  8716.10.20 More than five years old 
  8716.20.20 More than five years old 
  8716.31.20 More than five years old 
  8716.39.20 More than five years old 
  8716.40.20 More than five years old 
  8716.80.30 Other more than five years old 
88.01 8801.00 Balloons and dirigibles; gliders, hang gliders and other non-powered aircraft. 
  8802.11 Of an unladen weight not exceeding 2,000 kg 
  8802.12 Of an unladen weight exceeding 2,000 kg 
  8802.20 Aeroplanes and other aircraft, of an unladen weight not exceeding 2,000 kg 
  8802.30 Aeroplanes and other aircraft, of an unlad en weight exceeding 2,000 kg but not exceeding 15,000 kg 
  8802.40 Aeroplanes and other aircraft, of an unladen weight exceeding 15,000 kg 
  8802.60 Spacecraft (including satellites) and s uborbital and spacecraft launch vehicles 
  8803.10 Propellers and rotors and parts thereof 
  8803.20 Under-carriages and parts thereof 
  8803.30 Other parts of aeroplanes or helicopters 
  8803.90 Other  
88.04 8804.00 Parachutes (including dirigible parachutes a nd paragliders) and rotoc hutes; parts thereof and 
accessories thereto. 
  8805.10 Aircraft launching gear and parts thereof; deck-arrestor or similar gear and parts thereof 
  8805.21 Air combat simulators and parts thereof 
  8805.29 Other 
  9301.11 Self-propelled 
  9301.19 Other 
  9301.20 Rocket launchers; flame-throwers; grenade launchers; torpedo tubes and similar projectors 
  9301.90 Other 
93.02 9302.00 Revolvers and pistols, other than  those of heading 93.03 or 93.04. 
  9303.10 Muzzle-loading firearms 
  9303.20 Other sporting, hunting or target-shooting shotguns, including combination shotgun-rifles 
  9303.30 Other sporting, hunting or target-shooting rifles 
  9303.90 Other 
93.04 9304.00 Other arms (for example, spring , air or gas guns and pistols, truncheons), excluding those of 
heading 93.07. 
  9305.10 Of revolvers or pistols 
  9305.21 Shotgun barrels 
  9305.29 Other 
  9305.91 Of military weapons of heading 93.01 
  9305.99 Other 
  9306.21 Cartridges 
  9306.29 Other 
  9306.30 Other cartridges and parts thereof 
  9306.90 Other 
93.07 9307.00 Swords, cutlasses, bayonets, lances and sim ilar arms and parts th ereof and scabbards and 
sheaths therefor. 
  9401.10.10 Used 
  9401.20.10 Used 
  9401.30.10 Used 
  9401.40.10 Used 
  9401.51.10 Used 
  9401.59.10 Used 
  9401.61.10 Used 
  9401.69.10 Used 
  9401.71.10 Used 
  9401.79.10 Used 
  9401.80.10 Used 
  9401.90.10 Used WT/TPR/M/237/Add.1 
Page 44  
 
  H.S. 
Hdg. 
(1) H.S. 
Code 
(2) Description 
(3) 
  9403.10.10 Used 
  9403.20.10 Used 
  9403.30.10 Used 
  9403.40.10 Used 
  9403.50.10 Used 
  9403.60.10 Used 
  9403.70.10 Used 
  9403.81.10 Used 
  9403.89.10 Used 
  9403.90.10 Used 
  9404.10.10 Used 
  9404.21.10 Used 
  9404.29.30 Used 
  9404.30.10 Used 
  9404.90.10 Used 
  9503.00.20 Dolls, remote controlled  
  9503.00.40 Remote controlled stuffed toys re presenting animals or non-human creatures 
  9503.00.60 Remote controlled electric trains, including tr acks, signals and other accessories therefor; reduced-
size ("scale") model assembly kits, whether or  not working models; construction sets and 
constructional toys; toy musical instruments and appa ratus; puzzles; toys, put up in sets or outfits; 
toys and models, incorporating a motor 
  9503.00.80 Other, remote controlled 
  9504.30.10 Used / reconditioned 
  9504.30.90 Other 
  9504.90 Other 
  WT/TPR/M/237/Add.1 
 Page 45 
 
 
  ADDITIONAL REPLIES PROVIDED BY SRI LANKA 
 
ARGENTINA  
 
B. WT/TPR/S/237,  REPORT BY THE WTO  SECRETARIAT  
(viii) Sanitary and phy tosanitary measures 
 
According to paragraph 103, the "National Plant Qu arantine Service in the Department of Agriculture 
is the body in charge of plant h ealth issues [...].  Plant imports must be accompanied by a permit, 
granted by the Deputy-Director of Plant Quarantine or the Director of Seed Certification and Plant 
Protection.  Permits are issued immediately for vege table seeds that are included in an approved list, 
which is published in ne wspapers periodically". 
 Question 1  Would Sri Lanka please provide the list of authorized vegetable seeds and the phytosanitary 
requirements for each of the species involved? 
 
Answer:  
The imports of vegetable seeds were liberalized in 1996.  Sanitary and phytosanitary measures related 
to seed imports are govern mainly by the regulati ons imposed on Plant Protection Act No 35 of 1999 
and Seed Act 2003.  The authorized plants and conditions on importation ot her plants and general 
phytosanitary requirements are given in the regulatio ns of Plant Protection Act which is posted on the 
Department of Agriculture website http://www.agridept.gov.lk. 
 To promote agricultural development in the country , most vegetable seeds are allowed into Sri Lanka 
with minimal restriction. If the consignments of  vegetable seeds are brought with phytosanitary 
certificates obtained from the National Plant Protection Organization (NPPO), seed certificate 
obtained from the governmental or an accredited seed testing agency, and certificate of origin from 
the Chamber of Commerce, such consignments will be released subject to inspection at the port of 
entry. Table 1 gives what is expect ed from each of these certifications.  
 
Table 1: Certifications required as stipulated in Plant Import Permits during seed import 
Certificate Authority responsible for issuance Required declarations 
Certificate of origin Chamber of Commerce Country of origin 
Phytosanitary certificate National Plant Protection Organization Botanical name 
Place of origin 
Details on any seed treatment General statement on freedom from regulated pests 
Seed Certificate Seed Certification Service Lot number 
Details on genetic and physical purity 
Contaminants Moisture level 
 
Plant quarantine service at the port of entry check s both phytosanitary certificate and seed testing 
certificate for indications on any weed contaminati ons.  In most cases, only the seed testing certificate 
indicates the weeds found in the consignment.   
During inspection of the consignment, if the plan t quarantine officers find weeds, samples will be 
submitted for further analysis. Attempts are made to  identify the contaminant and then a decision is 
taken on the enterability of the seed lot. Author ities consider the possible risk and the potential 
invasiveness of the weed for taking the appropriate decision.  WT/TPR/M/237/Add.1 
Page 46  
 
  Except bean seeds, there is no restriction imposed  on the quantity of vegetable seeds imported. 
However, seeds of any new variety of a crop hitherto not tested in the country will be allowed, in the 
first instance, only in smaller quantities for expe rimental evaluation of their advantages over the 
existing varieties. After evaluation of the perform ance of the particular new variety under local 
conditions, if the officers of the Department of Agri culture approve the variety as suitable, thereafter, 
the variety will be permitted for importation wit hout restriction on the quantity. However, during 
importation, any Phytosanitary safeguards imposed should be adhered to.  After considering the pest risk, the plant quaran tine service in Sri Lanka has stipulated additional 
phytosanitary requirements during the import of seed s of certain plants. For some pests, the seeds 
must be produced in pest free areas or pest free pl ace of production (Table 2). The detection of these 
pests by inspecting the consignment at the port of entry is somewhat difficult and also, the risk is 
considered very high. Certification after an o fficial survey on area freedom from the relevant 
quarantine pest (QP) is usually required for import of  such seeds into Sri Lank a. Mother plants should 
be examined regularly during active growth to ascertain  the freedom from particular pests of concern. 
 
Table 2: Requirement of pest free areas or pest free place of production 
Plant Pest 
Cowpea (Vigna unguiculata) Curtobacteriu m flaccumfaciens pv. Flacumfaciens 
Lettuce (Lactuca sativa) Lettuce mosaic virus 
Maize (Zea mays) Pantoea stewartii 
Pea (Pisum sativum) Pseudomonas syringae pv. pisi 
Sorghum (Sorghum bicolor) Prostephanus truncatus 
Soybean (Glycine max) Prostephanus truncatus 
Tobacco (Nicotiana tabacum) Per onospora hyoscyami f.sp. tabacina 
Tomato (Lycopersicon esculentum) Clavibact er michiganensis ssp . michiganensis,  
Potato Spindle Tuber Viroid 
 
For import of certain seeds, Sri Lanka has imposed requirements such as inspection, taking samples, 
and testing for specific pests to ensure pest free stat us of consignments (Table 3).  If such regulated 
pests are not yet reported to occur in the area of pr oduction, endorsement to that  effect could be given 
in the phytosanitary certificate.  With reference to certain pests such as viruses and bacteria, the 
sample size and the testing method should be mentione d in the phytosanitary certificate. After testing, 
if the regulated pest is found in the consignment, the NPPO of the exporting country is expected to 
refuse the issue of the phytosanitary certificate thereb y preventing the export of the particular seed lot.  
 
Table 3: Requirement of pest free status in the seed consignment  
Plant Pests 
Asparagus (Asparagus officinalis) Asparagus latent virus 
Cercospora asparagi 
Ditylenchus dipsaci 
Erwinia caratovora Helicotylenchus nanius 
Puccinia asparagi 
Tobacco streak virus  Trichodorus  christiei 
Maize (Zea mays) Cephalosporium acremonium 
Clavibacter michiganensis subsp. Nebraskensis 
Claviceps giagntea 
Corn stunt virus Maize streak virus Peronosclerospora  philippinesis 
Table 3 (cont'd)  WT/TPR/M/237/Add.1 
 Page 47 
 
 
  Plant Pests 
Onion (Allium spp.) Aceria tulipae  
Ditylenchus destructor 
Ditylenchus dipsaci 
Mycosphaerella schoenprasi Onion yellow dwarf virus 
Peronospora  destructor 
Puccinia  allii Verticillium albo-atrum  
Sorghum (Sorghum bicolor) Aphelenchoides arachidis 
Blissus leucopterus 
Eurygaster integriceps 
Liposcelis botrychophila 
Liposcelis entomophila Liposcelis paeta  
Platynota sultana 
Plodia interpunctella 
Soybean (Glycine max) Anomala cupripes  
Anomala pallida  
Cryptophlebia leucotreta  
Fundella pellucans  Orgyia turbata  
Prostephanus truncates 
Sunflower (Helianthus annuus) Plasmopara halstedii 
Puccinia helianthi 
Prostephanus truncates 
Opogona sacchari 
Winged bean (Psophocarpus tetragonolobus) Synchytrium psophocarpi 
 
In certain instances, seed treatment is accepted as a Phytosanitary safeguard. In general, it would be 
better if the seeds imported for planting were treated  with a broad spectrum pesticide. Thus, most of 
the pests found attached to the seed surface coul d be eliminated. If a mixture of fungicides and 
insecticides is used, compatibility of the two p esticides should be taken into account. Specific 
treatments are recommended during import of some seeds (Table 4).  
Table 4: Seed treatment recomme nded as a phytosanitary safeguard 
Commodity Treatment required 
Tomato (Lycopersicon esculentum) One of the following treatment: 
i. Hot water treatment at 550 C for 25 minutes followed by soaking in 10% trisodium 
phosphate solution for 60 minutes and drying 
ii. Immersion in 0.6% HCI for 25 hours followed by air drying and dressing with 0.3 % 
Benomyl  or  Thiophenate Methyl + Thiram 
iii. Soak in 0.6% HCl (pH of 0.8± 0.2) fo r 20 minutes stirring continuously, rinse and 
immerse in 10% Trisodium phosphate solution for one and half hours, rinse and place 
in 0.96% Calcium hypochlorite solution (5000-7000 ppm, pH 8.0-9.0) for 15 minutes. Rinse extensively and dry fo llowed by applying Thiram/ApronXL 
(Metalaxyl-M)/Maxim 4FS (Fludioxonil)/Captan 
Seeds of plants belonging to family Cucurbitaceae One of the following treatments: 
i. Hot water treatment at 55
0 C for 25 minutes followed by soaking in 10% trisodium 
phosphate solution for 60 minutes and drying 
ii. Immersion in 0.6% HCI for 25 hours followed by air drying and dressing with 0.3 % 
benomyl or Thiophenate Methyl + Thiram. 
Soybean (Glycine max) soaking for 1-5 minutes in a so lution of sodium hypochlorite (with 1-2% of available 
chlorine) and dried followed by treatment  with any recommended insecticide and 
fungicide seed dressing 
Tobacco (Nicotiana tabacu m) One of the following: 
i. Immerse in 0.1 M. Silver nitrate solution for 15 minutes then wash and dry  ii. Hot water treatment at 50oC for 30 mi nutes, dry and  dust with 4% Captan 
Oil palm (Elaeis guineensis) Dipping the depulped seeds in  0.1% Oxamyl and 0.2% Thiram plus 1% detergent 
(teepol) for 02 minutes 
 WT/TPR/M/237/Add.1 
Page 48  
 
  Paragraph 103 also specifies that "[i]mporters of  fresh fruits and vegetables for human consumption 
must produce a certificate from the plant protection authority of the country of origin stating that the fruit has been in cold storage fo r more than two weeks;  no certi ficates are accepted from countries 
where there are fruit flies". 
 
Question 2  
Since consignments from countries where there a re fruit flies are not accepted, would Sri Lanka 
please provide details regarding the authorized gen era, treatments, and alternative options for entry 
(pest-free zone, RMS)? 
 
Answer:  
Please see the answer given above.  Details  of these regulations are available at 
http://www.agridept.gov.lk  
Importation of Fresh Fruit is Permited Only at The Port of Colombo 
 Special conditions:  1. This licence is applicable only to fruits grow n in and directly consigned to Sri Lanka from the 
state or country mentioned in the application form.  
 
2. The fruits shall be accompanied by a phytosanitary  certificate issued by an authorized officer 
of the Plant Quarantine Service of the country of origin.  3. The phytosanitary certificate shall have declaration 
 i. On the country/locality (district) of origin the fruits and  
 ii. To the effect that the fruits have been  produced in an area free from fruit flies of 
genera Anastrepha, Bactrocera neohumer alis, Bactrocera papayae, Bactrocera 
philippiensis and Bactrocera tryoni as verified  by an official survey, and transferred 
to the ship in a manner to preclude infestation en route. ,   
 
4. If the country/locality of origin of the fruits is infested by fruit flies mentioned in 3.ii above 
except Bactrocera musae, Bactrocera papayae, and Bactrocera philippiensis,every consignment of 
fruits shall be accompanied by a pre-cooling certificat e issued by the plant quarantine authority of the 
country of origin to the effect that the fruits have  been pre-cooled at one of the temperatures given 
below for the respective duration and thereafter transf erred to the ship in a manner to preclude fruit fly 
infestation en routei 
or cooled at one of the following temperatures and resp ective periods at the port of entry and certified by 
Sri Lanka Ports Authority to that effect before bei ng allowed to be taken out of the ports premises.  
 a. Below 0.0 C (32 F) for 14 consecutive days or,    b. 0.55C (33 F) for 18 consecutive days or,   
 c. 1.1C (34 F) for 20 consecutive days or,  
 d. 2.2 C (36 F) for 22 consecutive days;    5. The consignments of fruits shall only be re leased subject to fulfilling the conditions and 
inspection by an authorized officer.  
 
6. i. The fruits should be securely pack aged in cardboard on plastic boxes.   
 ii. The consignment shall not contain plant debris as packing material.   iii. Every consignment of fruit shall be trans ported to Sri Lanka by sea freight under cold 
Storage at a temperature of 0.0 C - 2.2C (32-36 F).   WT/TPR/M/237/Add.1 
 Page 49 
 
 
   
Question 3  Has Sri Lanka considered measures other than cold storage treatment, such as quarantine treatment 
or pest-free areas? 
 
Answer:  
Yes, Please see the answer to question 2 and the website http://www.agridept.gov.lk  for details on 
regulations.    Question 4  
According to paragraph 104, [i]mports of any pl ant, plant material, plant product or seed from 
"Tropical America" are prohibited to prevent the introduction of the "South American Leaf blight 
pathogen of rubber".  Imports of soil, living modi fied organisms and live fish are also banned. 
 Question 4(a)   (a) Would Sri Lanka please provide the list of prohibited plants?  Answer: 
Prohibited plants: Please see regulations on Plant Protection Act for details 
http://www.agridept.gov.lk.  
Question 4(b)  
 
(b) Could Sri Lanka please give further details regarding its regulatory framework for LMOs? 
 
Answer: 
The Plant Protection Act of Sri Lanka defines Li ving Modified Organisms (LMO) as an organism 
derived or produced by altering or modifying the ge netic material of an organism through the use of 
biological techniques such as recombinant DNA technol ogy, molecular biology, cell or tissue culture, 
cell fusion, artificial mutagenesis, or through the use of a vector system such as virus, phage, plasmid 
but not through ways that occur naturally by mating mutation or recombination processes.  Details of regulatory procedures are available in Plant Protection Act and regulations available at 
http://www.agridept.gov.lk. 
 
II. TRADE POLICIES BY SECTOR 
(4) M
ANUFACTURING  
(ii) Policy instruments 
 
According to paragraph 64, "[i] n addition to assisting SMEs, in recent years the Government has 
focused its efforts on strengthening regional indu strialization.  Besides the tax concessions and 
financial assistance mentioned a bove, steps have been taken to upgrade infrastructure facilities, 
establish new industrial estates and revi ve defunct factories, particularly in the Northern and Eastern 
provinces".  
"Special programmes, such as the Nipayum Sri- Lanka - 300 Enterprises Programme, which focuses 
on regionalizing the industrial base, ha ve been put in place to that end." 
 WT/TPR/M/237/Add.1 
Page 50  
 
  Question 5 
 Would Sri Lanka please specify the duration of th is programme and what type of enterprises have 
benefited under the programme?  
Answer: By end 2009, 319 projects were  approved under Nipayum Sri La nka – 300 Enterprises Programme, 
administered by the BOI, many of which are alr eady in operation.  Enterprises which benefited from 
this programme range from the processing of bana na fibre into value added products to the 
manufacture of stainless steel sinks.  It also facilitates relocation of factories to the periphery, thus 
helping generate employment opportunities in those areas.  For example, the Nipayum Sri Lanka 
programme helped the Ceylon Glass Company to relo cate their factory from Ratmalaa to Horana.   
 
B. S
PECIFIC TRADE CONCERNS  
 
Question 6 
 Would Sri Lanka please advise whether 2010 has seen the adoption of new requirements for the 
import of and/or trade in biotech products and, if so , provide a copy of the new legislation in force? 
 
Answer: 
Sri Lanka has developed a bio safety framework to deal with imports of biotech products.  The 
framework is based on following policies; Recogni zing the importance of protecting its people, 
environment and biodiversity while promoting a sustainable social and economic development 
through adopting biosafety measures,  Recognizing the human and environmental health risks that 
may be incurred by careless or unscrupulous developm ent of modern biotechnology and the use of its 
products for agriculture, health, waste management  and other purposes,  Realizing the need for 
developing our own capabilities in biosafety thro ugh research & development, and training and 
Reaffirming the commitment to the obligations of the Convention of Biodiversity and Cartagena 
Protocol.  Details of the framework are available at http:/www.biosafety.lk. 
 
 
FOLLOW-UP QUESTIONS FROM CANADA
 
 
Report by the Secretariat (WT/TPR/S/237) 
 
Part III. Trade Policies by Measures: (4) Measures Affecting Production and Trade: ( v) 
Government Procurement: paragrap h 202, page 91 (French Version): 
 
The Secretariat report notes that 'Sri Lanka acco rde des préférences en faveur des marchandises 
d'origine nationale, qui sont déterm inées par le Trésor et incluses dans les lignes directrices pour la 
passation des marchés'. 
 
Follow Up – Question to Answer 1  
Could Sri Lanka please describe the process in wh ich domestic products are provided preferential 
treatment? 
 
Answer: 
Domestic Preference is allowed when local bidders compete with international bidders who will fulfill 
certain requirements stipulated in the Government Procurement Guidelines.  The percentage of the 
domestic preference will be added to the bid price of  lowest foreign bidder based on his bid price and 
select the lowest afterwards.  WT/TPR/M/237/Add.1 
 Page 51 
 
 
   
Part III. Trade Policies by Measures: (4) Measures Affecting Production and Trade: ( v) 
Government Procurement: paragrap h 216, page 96 (French Version): 
 
The Secretariat report states 'L'étude considérait que, puisque les Lignes directrices intégraient une 
certaine flexibilité et des dispos itions en matière de pouvoir discré tionnaire qui pouvaient donner lieu 
à des abus, l'adoption d'une Loi sur les marchés pub lics et son règlement d'application pour régir les 
marchés publics améliorerait considérablement la transparence, réduirait les abus et irrégularités 
éventuels et renforcerait la confia nce du public envers le système'. 
 
Follow Up Questions to Answer 2 
 Paragraph 216 states that a 'Procurement Ac t and Rules to govern public procurement would 
substantially improve transparency, reduce po ssible abuses and malpractices and enhance public 
confidence in the system', which infers that there have been abuses and irregularities of the 
procurement rules in the past. Could Sri Lanka please define these abuses and irregularities in detail 
and provide examples? 
 
Answer: 
No.  We have referred only the possibility. 
 
If any Non-compliance to procurement rules & re gulations, fraud & corruption, quality and quantity 
issues in procurement are the general abuses, whic h will be, examined by the Auditor General and 
report to the Parliamentary Select Committees for sc rutiny and directions.  Moreover, citizens are free 
to report on any abuse directly to the Commissi on on Bribery and Corruption which will examine, and 
take actions according to the law of the land.  In  addition, internal auditing is also functioning 
covering all government institutions to identify any de ficiency or error which will lead to fraud and 
corruption and report to the Chief Accounting Offi cers whom are the secretaries to respective line 
ministries to take prompt actions.  
Could Sri Lanka please present a timeline on the in stitutional arrangements that have been/are being 
taken to rectify 'abuses'? 
 
Answer: 
Explained in 2 above. 
  ADDITIONAL QUESTIONS FROM CHINA
 
 
Secretariat Report 
 II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(4) F
OREIGN INVESTMENT REGIME  
 
Para. 42 
According to the Report, "For some sectors , investors must meet mini mum investment and export 
requirements  to qualify for BOI incentives." 
 
Para. 50 
According to the Report, "some of the benef its provided by the BOI incentives schemes are 
contingent upon export performance requirements ." 
 Can Sri Lanka please specify the sectors referred to in the Report? WT/TPR/M/237/Add.1 
Page 52  
 
   
Are the requirements referred to in the two paragraphs above different? If so, how? 
 
Para. 45 
According to the Report, "Under Section 17 of the Act, the BOI may undertake agreements to grant 
concessions to companies satisfying certain eligibility criteria
 on minimum investment, exports or 
employment (the BOI companies).  These companies obtain an exemption from specific laws, or a modification of the application of such laws…. In certain sectors,
 FDI requires approval from other 
government agencies.  In some ca ses, proposals must be evaluated by several ministries/agencies, 
which grant a "special approval" ;  the percentage of equity participation is decided on a case-by-case 
basis .  In other sectors, the BOI may approve FDI up to a certain limit;  above that limit, approval is 
granted on a case-by-case basis  in consultation with the relevant ministry. 
 
Para. 48 
Foreign investment in these areas is approved au tomatically where the investment represents a 
maximum of 40% of total investment.  Foreign ow nership in excess of 40% is approved by the BOI 
on a case-by-case basis . 
 
Can Sri Lanka please indicate the basis for est ablishing such "eligibility criteria" and "special 
approval"?  
Can Sri Lanka please also specify the sectors referred to in the Report? 
 China would appreciate it if Sri Lanka could provid e detailed information on some of these cases 
referred to in the Report.  
 
Answer:  
Prior to the last budget (22 November 2010) these sectors included manufacturing of non-traditional 
goods including deemed exports. However, new changes are to take place along with Budget 
Proposals - 2011.   Case-by-case approvals was based on Excha nge Control Regulation No. 1232/14 – FRIDAY, 
APRIL 19, 2002 (Attached herewith). 
   WT/TPR/M/237/Add.1 
 Page 53 
 
 
  The Gazette of the Democratic Socialist Republic of Sri Lanka 
EXTRAORDINARY 
No. 1232/14 – FRIDAY, APRIL 19, 2002 
(Published by Authority) 
PART I : SECTION (I) – GENERAL 
Government Notifications 
NOTICE UNDER THE EXCHANGE CONTRO L ACT, (CHAPTER 423 OF THE CLE) 
Permission in terms of Sections 7, 10, 11, 15 and 30(5) of the Exchange Control Act, (Chapter 
423 of the CLE)  
 
1. PER MISSION is hereby granted for the purposes of Section 10, 11, 15 and sub-section 5 of Section 30 as applicable of the Exchange Control Act (Chapter 423 of the CLE), for the issue and 
transfer of shares in a company upto 100% of the i ssued capital of such company, to approved country 
funds, approved regional funds, corporate bodies in corporated outside Sri Lanka and individuals 
resident outside Sri Lanka (inclusive of Sri La nkans resident outside Sri Lanka) subject to the 
exclusions, limitations and c onditions hereinafter set out. 
 
2. Exclusions :- The permission hereby granted shall not apply in respect of shares of a company 
proposing to carry on or carrying on any of the following businesses:  (i) Money lending, 
 (ii)  Pawn broking, 
 (iii) Retail trade with a capital of less than One Million US Dollars,  (iv) Providing personal services other than for the export or tourism sectors,  (v) Coastal fishing.  
3. Limitations :- 
(a) The permission hereby granted shall apply in respect of shares in a company carrying on or 
proposing to carry on any of the following businesses only upto 40% of the issued capital of such 
company, or if approval has been granted by th e Board of Investment of Sri Lanka for a higher 
percentage of foreign investment in any company, only upto such higher percentage. 
 (i) Production of goods where Sri Lanka's exports are subject to internationally 
determined quota restrictions; 
 (ii) Growing and primary processing of tea,  rubber, coconut, cocoa, rice, sugar and 
spices; 
 (iii) Mining and primary processing of non renewable national resources;  (iv) Timber based industries using local timber; 
 (v) Fishing (deep sea fishing); 
 (vi) Mass communications;  (vii) Education;  (viii) Freight forwarding:  (ix) Travel agencies;  (x) Shipping agencies.  
(b) The permission hereby granted shall apply in resp ect of the shares of a company carrying on or 
proposing to carry on any of the businesses set out below only upto the percentage of the issued 
capital of the company for which percentage either general or special approval has been granted by 
the Government of Sri Lanka or any legal or ad ministrative authority set up for the approval of 
foreign investment in such businesses. 63 
 (i) Air transportation;  (ii) Coastal shipping;  (iii) Industrial undertaking in the Second Schedule of the Industrial Promotion Act, 
No. 46 of 1990, namely – any industry manufacturing arms, ammunitions, explosives, WT/TPR/M/237/Add.1 
Page 54  
 
  military vehicles and equipment aircraft and other military ha rdware; any industry 
manufacturing poisons, narcotics, alcohols, dangerous drugs and toxic, hazardous or 
carcinogenic materials; any industry producing currency, coins or security documents; 
 (iv) Large scale mechanized mining of gems; 
 (v) Lotteries. 
 4. Conditions:- 
(a) A person resident outside Sri La nka who is a party to a transac tion permitted hereunder shall make 
a declaration to the effect that such person is resi dent outside Sri Lanka on the share transfer form or 
share application form as applicable. 
 (b) The payment for shares in any issue or transaction permitted here under shall be made only out of 
or into a Share Investment External Rupee Acc ount opened in a commercial bank of Sri Lanka in 
accordance with directions given by the Controller of  Exchange in that behalf to commercial banks. 
 
(c) A commercial bank, a licensed share broker or an y other person entrusted with the payment of 
capital monies such as sale proceeds of shares, dividends and commissions in respect of any 
transaction permitted hereunder shall make such paym ent only into or out of a Share Investment 
External Rupee Account referred to in sub-paragraph (b) above. 
 
(d) The Secretary/Registrar to a company in which the i ssue or transfer of shares to persons resident 
outside Sri Lanka are limited under paragraph 3 shall not register the name of any person resident 
outside Sri Lanka or a citizen of a foreign State or  their nominee as a share holder in such company if 
by such registration the limits specified  in paragraph 3 shall be exceeded. 
 
5. Permission is also hereby granted – 
(a) under Section 11 of the Exchange Control Ac t for the transfer by approved country funds, 
approved regional funds, corporate bodies incorporated  outside Sri Lanka and individuals resident 
outside Sri Lanka (inclusive of Sri Lankans resident  outside Sri Lanka) of sh ares acquired in terms of 
paragraph 1 subject to the conditio ns stipulated in paragraphs 4 (a), 4(b) and 4 (c); 
 
(b) under Section 7 of the Exchange Control Act fo r making any payment to or for the credit of a 
person resident outside Sri Lanka in respect of a transaction permitted hereunder in accordance with 
the provisions of paragraph 4 (c). 
 6. General – Nothing contained in this Order shall be construed as affecting or having a bearing on – 
(a) enterprises as defined in the Board of Investme nt of Sri Lanka Law, No. 4 of 1978 in respect of 
which exemptions have been granted from the Ex change Control Act, to the extent of such 
exemption;  (b) the provisions of any other written law.  
7. Interpretation – For purposes of this Order – 
 (i) "issued capital" shall have the same meaning as in the Companies Act, No. 17 of 
1982; 
 (ii) "persons resident outside Sri Lanka " shall have the same meaning as in Order 
published under the Exchange Control Act in Gazette No. 15007 dated 21.04.1972. 
 
8. The notices published in Gazette Extraordinary No. 721/4 of 29.06.1992 and Gazette No. 1122/12 
of 07.03.2000 granting permission for purposes of Sections 7, 10, 11, 15 and sub-section 5 of 
Section 30 of the Exchange Cont rol Act are hereby rescinded. 
  WT/TPR/M/237/Add.1 
 Page 55 
 
 
  H A G Hettiarachchi 
Controller of Exchange 
Colombo, 19th April, 2002  
 
The Gazette of the Democratic Socialist Republic of Sri Lanka 
EXTRAORDINARY 
No. 1248/19 – THURSDAY, AUGUST 08, 2002 
(Published by Authority) 
PART I : SECTION (I) – GENERAL 
Government Notifications  
NOTICE UNDER THE EXCHANGE CONTRO L ACT, (CHAPTER 423 OF THE CLE) 
Permission in terms of Sections 7, 10, 11,  15 and 30(5) of the Exchange Control Act 
 THE notice under the Exchange Control Act published in the Government Gazette (Extraordinary ) 
No. 1232/14 of 19th April, 2002, is hereby ame nded in paragraph 2 as follows: 
 (a) by the repeal of item (iv) i.e. Providing personal services other than for the export or tourism sectors; 
 
(b) by renumbering item (v) i.e. Coastal fishing as item (iv) thereof. 
 
H.A.G. Hettiarachchi 
Controller of Exchange Colombo 
08th August 2002   WT/TPR/M/237/Add.1 
Page 56  
 
  ADDITIONAL QUESTIONS FROM CHINESE TAIPEI
 
 
A. WTO Secretariat Re port (WT/TPR/S/237) 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(viii) Sanitary and phy tosanitary measures 
 
(Page 57, Paragraph 97)  
As indicated in the Report, the importation of meat  and meat products from other country to Sri Lanka 
needs to provide the permits issu ed by DAPH and certificates issued by competent authority of the 
exporting country, and the products were derived from animals which must be slaughtered and 
processed in establishments register ed with the veterinary authority in the country of origin.   
 
Question 1:  
Please verify the necessa ry procedures of applying for importation of fresh and processed meat 
products to Sri Lanka, including the docum ents requested and approval procedures.   
 
Answer:  Importers intend importing fresh and processed meat  products should obtain prior approval from the 
Director General/ Department of Animal Production and Health and also should fulfil stipulated 
health requirements. 
 
Please find annexed the application form and health requirements. 
 
Question 2:  
What kind of Animal diseases free status is necessary  to be indicated on the certificate. Please provide 
the list of animal diseases in concern.   
 
Answer:  
As listed in the OIE list- Refer to OIE Web site www.oie.int  
 Question 3:  Does Sri Lanka recognize a country (or zone) as free from animal diseases following the OIE recommendations or have any procedure for recogniti on of country (or zone) as free from animal 
diseases?   
Answer: 
Sri Lanka takes the OIE recommendations as guidelines. 
 
Question 4:   
Does Sri Lanka accept the meat from a disease-f ree zone and (or) compartment for international 
trade purpose? The aforementioned diseases are no tifiable avian influenza, foot and mouth disease 
and classical swine fever. 
 
Answer:  
In respect of foot and mouth disease and classical swine fever, to accept respective meats free zone 
and  compartment could be accepted. However, in  regard to Avian influenza (HPAI) to accept poultry 
meat the country should be free from Avian influenza (HPAI).  Note HPAI is never reported in Sri Lanka.    
  WT/TPR/M/237/Add.1 
 Page 57 
 
 
  Form III 
Department of Animal Production and Health P.O. Box 13, Peradeniya, Sri Lanka 
(Please type or write clearly in BLOCK letters) 
 
Importer / Consignee 
 
 
Name and Address of Importer/Consignee : 
  
 
  
Telephone & Fax Nos.: 
  Application for Approval to Import  
Meat, Meat Products & Edible Offal 
 
     Animal Disease Act. No.59  of 1992 
    
       Office use only  : 
 
       Reference No. :  ……………………….        Date                 :  ………………………. 
 
Exporter/Consignor Origin of the Product 
 
Name & Address of Exporter/Consignor:   
  
 
  Telephone & Fax Nos.  : Country  :  
 
 Name, Address and Registration Number of the 
Export Processing/Cutti ng-up Establishment. 
 
Product Details 
 
Type of  Meat            Type of Product                  No. and nature of packages                       Quantity  
                                                                                                                                                  (MT/Kg) 
  
Transport and Destination 
 Expected Month / Date of Export :                                        Air lines/Ship :              
 Place of embarkation :                                                          Transhipment via * 
                                                                                                       (* State name of the cou ntry) 
Expected Month/ Date of Arrival :                                        Detail route to Sri Lanka :  
 
place of disembarkation :  
PTO 
  
 WT/TPR/M/237/Add.1 
Page 58  
 
  Agreement: 
 
 
Director General, 
Department of Animal Production & Health, 
Peradeniya. 
  I hereby agree :  
 
To adhere to conditions stipulated by the Depa rtment of Animal Producti on & Health (DAPH) in 
respect to importation of meat a nd meat products into Sri Lanka; 
 To follow  any other terms and conditions as may be stipulated by the DAPH from time to time. 
 
  
DECLARATION 
 
 
I declare that to the best of my knowledge and be lief all the above information is true and correct 
    
……………………………………………………… 
(Signature and Name of Applicant)    Date :  …………………………. 
 
    
 
     
 
  WT/TPR/M/237/Add.1 
 Page 59 
 
 
  IMPORT OF MEAT ITEMS INTO SRI LANKA.  
 
1. Request should be made (application form III) in order to get the approval to import meat 
items (beef, mutton, lamb) and their meat products from the Director General, Animal Production & Health, Peradeniya. Request shoul d accompany a copy of the Pro forma Invoice 
issued by the exporter and specimen Internati onal Veterinary Certificate from  Exporting 
country.  
 2. International Veterinary Certificate from Expor ting country (country of origin) stating that: 
 2.1 The entire consignment of  meat comes from animals which:  
2.1.1 Are born and bred in the country of origin. 
 2.1.2 have never been fed with meat and bone meal  and greaves derived from Bovine Spongiform 
Encephalopathy (BSE ) infected countries. 
 2.1.3 have been subjected to ante- mortem a nd post-mortem inspections by the Government 
Veterinary Authority of the exporting country, and  were found to be healthy  and free from 
any infectious and contagious diseases. 
 
2.1.4 have been slaughtered in an approved slaughter house , which is officially designated for 
export and not situated in any disease infected zone .  The abattoir has been registered with the 
Government  Veterinary Authority of the exporting country.  
 
2.2 The meat and meat products: 
 
2.2.1 have been processed in a designated establishm ent, approved for export , in a sanitary manner 
under the supervision of a Government veteri nary surgeon of the exporting country. Every 
precaution should be taken to prevent any contamination during the manufacturing, 
packaging, storage and until the time of export. 
 
2.2.2 Should be safe and fit for human consumption. 
 2.2.3 have been recognised as being free from bovine cysticercosis   2.2.4 If the meat consignment comes through another country, transhipment certificate should be 
produced. 
 2.2.5 Should not  contain preservatives, additives or any substances posing harmful risk to human 
health 
 2.2.6 Should be stored by frozen for not more than 2 (two) months prior to export.  Cold chain 
should be maintained  through out the period from the time of processing up to the end  point 
at the port of entry into Sri Lanka. 
 2.2.7 Should bear a health mark or meat inspection legend in any form of label, seal or stamp for 
recognition that the meat / meat products them selves have been produced in accordance with 
international standards. 
 
 Health marking shall consist of the following : 
  - the country of origin of the product   - the approved number of slaughter house WT/TPR/M/237/Add.1 
Page 60  
 
    - type of meat, type of product  and date of manufacture   
  - Batch number ( canned meat )    (all labels should be in English)  3. The Consignment has to be  inspected  by  the Animal Quarantine Officers and all the 
originals of the International Veterinary  Cer tificate, the country of origin certificate, and 
Invoice should be produced  to  the Animal Quarantine Officer  at the  time of importation. 
   
 
Yours faithfully    
 
Dr. A.D.N. Chandrasiri. Act.Director General    WT/TPR/M/237/Add.1 
 Page 61 
 
 
  EU FOLLOW-UP QUESTIONS  
 
1) Follow-up to Question 1  
 In its reply, Sri Lanka refers to the annual repor t and statement of account of the Bribery and 
Corruption Commission. Are the latter report and statem ent of account public documents? And also, 
could Sri Lanka report on progress and results among th e activities implemented by the Commission?  
 
Answer:  
Annual report and statement of accounts of the Bribery and Corruption Commission are public 
documents.   
 Main functions of the Commission to Investigate Allegations of Bribery and Corruption are to 
conduct investigations and prosecutions. In addition, awareness programmes on conducting  
investigations and prevention of bribery and corrup tion are organized for the State sector employees 
and the general public.    
 The website http://www.ciaboc.gov.lk contains details  of detection, raids a nd convictions, and other 
activities carried out by the Commission.   
2) Follow-up to Question 2  
 
Sri Lanka states in its reply that there have been  anti-corruption activities in the past by special 
interest groups from outside as well as within the state sector. Could Sri Lanka mention some of such 
activities? And by which groups they were carried out?  
Answer:  It was corrected prior to the 2
nd day of the TPR meeting that the wording "special interest groups" 
should be noted as "public interest groups".  Fr om the state sector, in addition to the Bribery 
Commission, Sri Lanka Police and the Department of the Attorney General are also involved in 
carrying out anti-corruption activities.  In a ddition, voluntary associations and professional 
organizations such as "Clean Hands, a movement of public and staff grade officials against corruption 
and the "Organization of Professional Associations  of Sri Lanka" (OPA) ha ve conducted relevant 
activities in this regard, during the past period.    
3) Follow-up to Question 5 
 
The European Union welcomes the measures, whic h are being taken by Sri Lanka to simplify and 
streamline tariffs and other levies on most of the goods through the national budget. Sri Lanka 
explains in its reply that most of the import l evies as described in the Secretariat's report are 
non-discriminatory. However, we see that many of these levies as CESS, PAL, NBT etc are directed 
only to imports.   
The European Union would therefore once again like to emphasise the importance of bringing these 
measures in compliance with WTO rules requiring non-discrimination.   Could Sri Lanka inform when it intends to fully phase out the discriminatory levies and duties?   
Answer: Among the stated levies, NBT is applicable on bot h imports and domestic goods  and therefore can 
not be considered as a levy directed only to imports. Sri Lanka has imposed  most of the other  border 
levies as a measure to enhance  revenue and fo r specific purposes during the period in which 
Sri Lanka was experiencing difficult times due to 30 year old civil conflict which ended in 2009. WT/TPR/M/237/Add.1 
Page 62  
 
  However, as stated, measures are being taken to phase out such levies  over a period of time.  In this 
direction, action has been already taken in the Budget 2011, to reduce the applicable rates on CESS, 
PAL and NBT and also to reduce the number of pr oducts subject to such levies. Further Social 
Responsibility Levy (SRL) which was applicable fo r imports only has been fully removed through the 
Budget 2011. More importantly, in line with WT O commitments, Sri Lanka ensures that cumulative 
effect of all border levies do not exceed the bound levels. 
 
4) Follow-up to Question 7  
 
The European Union would like to thank Sri Lanka in presenting a list of all the duties, taxes, levies it 
applied to imported spirits and locally produced sp irits. Based on these tables, there appears to be 
discrimination between imported and domestic goods due to the several taxes levied only on imports. 
 
Could Sri Lanka explain whether domestic goods a re also subject to VAT? VAT does not appear in 
the table for domestic goods.  
 
Answer:  
VAT is applicable in respect of both imported and domestic goods on non discriminatory manner. 
 
Could Sri Lanka explain whether imported products a re also subject to excise tax, as excise tax does 
not appear in the table for imported goods?  
 
Answer:  
In Sri Lanka, excise duty is levied under two statutes, namely Excise Special Provisions Act and 
Excise Ordinance.  Excise duty which is levied unde r Excise Special Provisions Act are applicable on  
both imported and domestic goods (e xcept alcoholic and tobacco products) on a non discriminatory 
manner. However, Excise Duty which is applicab le on  alcoholic and tobacco products are levied 
under the Excise Ordinance at the places of manufacture of such products and therefore applied only on domestic products. Accordingly, excise duty whic h is  levied under the Excise Ordinance is not 
applicable for imported spirits. However, in orde r to neutralize the difference in excise duty  on 
imported spirits against domestically produced spir its, in determining the import duty on imported 
spirits, an amount proportionate  to excise duty has been incorporated into the import duty. 
 
Could Sri Lanka state the duties levied on domes tic products in comparis on on imported products?  
 
Answer:  
Value Added Tax (VAT), Nation Building Levy (N BT), and Excise Duty are levied on domestic 
products. Revised duties/taxes (w.e.f. 22
nd November 2010) on spirits appear in Annex 1. 
 
Annex 1.  
Revised Duties/taxes applicable on import of Sprits (w.e.f. 22. 11. 2010)  
22.07 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher: 
ethyl alcohol and other spirits, denatured, of any strength  
HS Code CID (%) VAT (%) PAL (%) NBT (%) Cess (%) 
2207.10 Rs. 125/l 12.0 5.0 2.0 30.0 
2207.20.10 Rs. 125/l 12.0 5.0 2.0 30.0 
2207.20.10 15.0 12.0 5.0 2.0 0.0 
2207.20.90 Rs. 125/l 12.0 5.0 2.0 30.0 
   WT/TPR/M/237/Add.1 
 Page 63 
 
 
  22.08 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol; 
sprits, liqueurs and other spirituous beverages  
 
HS Code CID (%) VAT (%) PAL (%) NBT (%) Cess (%) 
2208.20 Rs. 1,000/l 12.0 5.0 2.0 30.0 
2208.30. Rs. 1,000/l 12.0 5.0 2.0 30.0 
2208.40.10 Rs. 1,000/l (G) & 
Rs. 975/l (GT) 12.0 5.0 2.0 30.0 
2208.40.90 Rs. 1,000/l 12.0 5.0 2.0 30.0 
2208.50 Rs. 1,000/l 12.0 5.0 2.0 30.0 
2208.60 Rs. 1,000/l 12.0 5.0 2.0 30.0 
2208.70 Rs. 1,000/l 12.0 5.0 2.0 30.0 
2208.90.10 Rs. 1,000/l 12.0 5.0 2.0 30.0 
2208.90.90 Rs. 1,000/l 12.0 5.0 2.0 30.0 
 
Duties/taxes applicable on locally pro duced spirits ( w.e.f.  22. 11. 2010)) 
 
Category Excise Duty (Rs./Litre)  
(with effect from 
24.06.2010) VAT(%) NBT 
Arrack 660.00 12.0 2.0 
Liquor  ( other than arrack) 790.00 12.0 2.0 
Beer (Alcohol % less than 5%) 58.00 12.0 2.0 
Beer (Alcohol % 5% and more) 74.00 12.0 2.0 
Wine 515.00 12.0 2.0 
 
5) Follow-up to Question 11   Sri Lanka mentions in its reply that the two bills containing relevant provisions on safeguard 
measures were fully compatible with the WTO rule s in this area. Could Sri Lanka please elaborate on 
this further?  
 
Answer: 
The two bills were drafted in close consultation an d  with technical assistance from the WTO. Hence 
the bills were drafted to be fully compatible w ith the WTO in this area.  However, the bill may 
undergo modifications during legislation process and it is difficult to comment on the final law which 
will be adopted at this stage.  
 
 
__________