KARACHI, Jan 5: The imports under Afghan Transit Trade (ATT) have constantly been increasing for the last several years, while the country is witnessing equal decline in its imports of such goods, which are traditionally consumed and processed by the local trade and industry.

According to official figures there is robust growth in imports under the ATT of such goods which are traditionally and numerically are directly related to domestic market needs and appetite.

However, customs figures make startling disclosures wherein such goods which have no market demand of industrial raw materials and luxury goods in Afghanistan are being imported under the ATT in higher volumes.

But it is even more interesting to note that these goods are equally declining in quantity from the country’s imports which strongly indicates that the demand is being largely met through the ATT imports.

“It tantamounts to smuggling because all imports under the ATT are duty free and even their physical examination is not carried out,” observed a leading customs agent who requested not to be named.

Consequently, huge quantities of banned items and those with high customs duty are finding their way into domestic market through ATT thereby wrecking local industry, he further said.

Since no physical examination is carried out of imports under ATT it could be anybody’s guess what is loaded in containers which may even include arms and ammunition, chemicals for making heroin or other banned items, he maintained.

The customs and port records have already substantiated the fact that many containers loaded with imports under ATT cleared on particular date with same number re-entered into port area on the same day after travelling all the way up to Pak-Afghan border.

It is a clear indication that such containers never leave the city jurisdiction and the entire load find its way into domestic market. There are brokers in the local market who approach traders and industrialists assuring them of such deliveries at a half rate of the officially imported goods.

According to official figures imports under Afghan Transit Trade in 2005-06 stood at Rs37 billion and which rose to Rs43 billion in 2006-07 and in 2007-08 it jumped to Rs58 billion.

Many items are prone to smuggling, but tyres have always been favorite and according to customs figures in 2005-06 tyre imports under ATT stood at Rs111 million and in the following year it increased to Rs774 million or 592 per cent and in 2007-08 its import stood at Rs664 million. Against this during this period tyre imports by the local traders fell by 9 to 10 per cent.

The import of cosmetics under the ATT is another example which has been recording constant rise for the last several years. Afghanistan with a population of around 32 million imported cosmetics worth Rs117 million in 2005-06 in the following year it recorded an increase of 26 per cent to Rs147 million in 2006-07 and then jumped by 48 per cent to Rs218 million in 2007-08.

In Afghanistan, there is no textile industry but import of yarn and woven fabrics are gaining momentum. Official figures disclose that during 2005-06 import of yarn and fabric under ATT stood at Rs248 million and on the following year it rose to Rs551 million and during 2007-08 it soared to Rs1.854 billion.

Against this, import of yarn and fabrics by local traders during this period declined by 10 per cent.