November 19, 2020
Days before Prime Minister Imran Khan’s maiden visit to Kabul, Pakistani and Afghan officials held the promising 7th round of the Afghanistan Pakistan Transit Trade Coordination Authority (APTTCA) on November 17, 2020 in the Afghan capital. The meeting was jointly led by Mr. Razak Dawood, Advisor to the Prime Minister on Commerce, Islamic Republic of Pakistan, and Mr. Nisar Ahmed Faizi Ghoryani, Minister for Industry and Commerce of the Islamic Republic of Afghanistan. The previous meeting of APTTCA was held in Islamabad in 2016, which reviewed the implementation of the Afghanistan Pakistan Transit Trade Agreement (APTTA).
Both chairs of the APTCCA demonstrated the willingness of political leadership of both countries to work collectively in resolving challenges that are impeding the bilateral relations and to ensure smooth crossing of transit and trade cargo across borders.
The following major decisions were yielded from the meeting:
- Revision of APTTA was discussed in accordance with WTO principles.
- Both sides also suggested the establishment of Joint Technical Negotiation Committee for Preferential Trade Agreement (PTA)
- The Pakistan delegation informed their Afghan counterparts regarding the operationalization of the Ghulam Khan port. Both sides have agreed to work together to operationalize Ghulam Khan as transit crossing point
- Both sides agreed to implement trade related measures such as SPS and TBT requirements and certification for transit cargo as per international best practices.
- Pakistan has proposed the replacement of bank guarantee for the vehicles with insurance guarantee for six months to facilitate the transport sector.
- Afghanistan has proposed to eliminate the requirement of attaching tracking devices to the vehicle.
- Both countries agreed to form a sub committee for the APTTCA to monitor the implementation of the agreed issues.
- Afghanistan has suggested to remove the requirement of carrying Afghan transit cargo through bonded carriers and proposed to allow carriers from the open market to carry the Afghan transit cargo. Pakistan has noted the proposal and will respond back on this proposal soon.
- Pakistan has assured the Afghan side that all maritime ports and Wagah will be accessible to Afghan transit.
- Both sides have agreed to propose up to 10% scanning of transit cargo in ports of entry based on Risk Management System. Physical examination up to 5% can be carried out only if a potential issue is clearly detected during the scanning under the Risk Management System.
- Afghan side has proposed an amendment in the APTTA agreement regarding the cross stuffing of Afghan cargo at the ports of entry for reducing cost of transit.
- The Afghan delegation has requested to increase the demurrage free days from 5 to 14 as already provided in Port Qasim.
- Pakistan side has approved Afghanistan’s proposal of considering Afghan invoices as the only base for customs valuation.
- Afghan side has proposed to allow partial payment of Afghan transit cargo, and to reflect this in the amended APTTA text. Pakistan side has approved this proposal.
- Both sides have agreed to conclude a Railway protocol in the near future.
- The 8th meeting of the APTTCA will be held in Islamabad for which the Pakistan side will convey exact dates through diplomatic channels.
© Center for Research and Security Studies (CRSS) and Afghan Studies Center (ASC), Islamabad.
