ISLAMABAD: Addressing concerns of Afghan importers to reduce the cost and time of goods movement, Pakistan has offered huge incentives in transit trade agreement.

Scanning requirement of Afghan transit cargo would be reduced to 20 from 100 per cent, subject to risk-profiling and introduction of a risk management system that will be established within next three months, according to decisions taken at a recent meeting of both countries top officials.

While trackers would be installed on containers, cost of trackers on prime-movers will not be charged from Afghan importers, but would be borne by bonded carrier companies. Importers will be required to pay a single revolving guarantee.

Number of bonded carriers to handle Afghan Transit cargo will be increased to provide competition and thereby reducing cost; and condition for one consignment, one carrier will be relaxed. One consignment on two carriers or two consignments on one carrier will be allowed.

Pakistan also offered Afghanistan the facility to use land route to export anything to India. Currently, only export of fruits and vegetables is allowed.

The Pakistani side agreed that on their way back, Afghan trucks can pick up export cargo from Pakistan to Afghanistan.

On a request from the Afghan side, Pakistan agreed that necessary changes in WeBOC system would be incorporated by February to allow system based partial shipments for all transit goods, instead of case to case manual arrangement in place now.

On the issue of discriminatory charges at ports, Pakistan clarified that charges are more favourable for Afghan Transit cargo.

On Afghanistan’s request, Pakistan agreed that issue of demurrage by shipping lines will be discussed with the Ministry of Ports and Shipping.

Particularly, on the issue of time for free of demurrage charges, Pakistan agreed that the Karachi International Container Terminal (KITC) will be requested to provide same time as provided by the Pakistan International Container Terminal (PICT) and Qasim International Container Terminal (QICT) ie 14 days free of demurrage charges to Afghan Transit Cargo.

Pakistan informed that Chaman and Torkham Customs are already working on Saturdays for Afghan Transit cargo. It is agreed that Karachi Customs will also entertain Afghan Transit Cargo on Saturdays.

On Pakistani concern regarding $100 charges and 110pc financial guarantees on export to Central Asian republics through Afghanistan, Kabul agreed to do away with the levy.

Afghan side raised the issue of de-stuffing/cross-stuffing of Afghan transit goods from the containers of shipping lines to the containers of local shipping service provider before filing goods decelerations at Karachi Ports.

The Afghan side raised the issue of black-listed items. However, the Customs authorities declined to allow import of certain products, such as old or new auto-parts, tobacco and automotive batteries.

The Afghan side proposed that levying insurance guarantee requirement shall only be imposed on those items which are sensitive. The Afghan side insisted to eliminate insurance guarantee requirements for basic items in transit trade.

Pakistan agreed to further look at the proposal and discusses it with all stakeholders.

Published in Dawn January 28th, 2015

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