The double taxation agreement signed between Sri Lanka and other countries provides for a reduction in tax rates on dividends and royalties. Increased trade is creating more Australian jobs and providing more opportunities for Australian businesses. Learn how to take advantage of free trade agreements. Read more… This was the first bilateral discussion that took place after the signing of TIFA on November 2, 2017 in Colombo, during the visit of Australian Prime Minister Malcolm Turnbull. Discussions on economic reforms and cooperation, free trade and regional trade agreements, market access and investment facilitation, and sectoral investment opportunities in both countries included agendas. Australia is an important trading partner for Sri Lanka, both as an important export market and as a market for the supply of raw materials and intermediate goods. Overall trade between the two countries has increased significantly in recent years, while the trade balance continues to apply to Australia. These discussions should pave the way for a regular review of bilateral trade and investment issues and further discussions between stakeholders in both countries. The TCS aims to help the industry become more competitive on the international stage.
The system reduces costs to the community by allowing duty-free access to certain products in which there is no local industry producing these goods. Certain product categories, including food, clothing and passenger cars, are not eligible (“excluded goods”). India and Sri Lanka recently signed a customs agreement under which Sri Lanka will have duty-free access to 1,000 items within three years and India will be able to export 800 items to Sri Lanka within eight years. In 2007, a two-way trade agreement was concluded between Australia and Sri Lanka worth $232 million per year. The trade agreement covers Australia`s exports, such as vegetables and dairy products. Tea and other food, textiles, clothing, rubber, iron and steel, which are the main imports from Sri Lanka. Australia`s preferential customs regimes can be divided according to the size of trade flows: preferences for developing countries, special tariffs for certain countries, preferences for the Island Country Forum (FIC) and preferences that apply mainly to least developed countries. Among Australia`s preferential measures, the tariff for developing countries is the greatest preference for the number of eligible economies. Sri Lanka is eligible for tariff preferences for certain exports of products to Australia as part of tariff preferences for developing countries.
Austrade strongly recommends confirming them before the sale in Sri Lanka. Upon importation into Australia, certain products are subject to Commonwealth tariffs and taxes, with the duty determined by the distribution of goods. The imposition of tariffs on certain imported products is intended to influence trade flows by regulating their value in order to protect Australia`s local economy and industry. However, there are a number of ways in which importers can obtain duty-free imports of goods imported into Australia, including through access to free trade agreements and the application of tariff concession systems such as the customs concession system (TCS).