New draft of APTTA: Next round of Pak-Afghan talks by month-end or early Feb

ISLAMABAD: Pakistan and Afghanistan are to hold the next round of parleys on new draft of Afghanistan Pakistan Transit Trade Agreement (APTTA) at the end of the current month or early next month as the term of pact will expire on February 11, 2021.

This was revealed by Special Secretary Commerce Dr Sohail Rajput at a meeting of National Assembly Standing Committee on Commerce, held Wednesday under the chairmanship of Syed Naveed Qamar.

The committee was informed that two rounds have been held on the new draft of APTTA so far. First round was held in Kabul in November 2020 whereas the second round was hosted by Pakistan in Islamabad on December 28-30, 2020.

“Both sides identified confronting issues and in talks sufficient progress was made in both rounds. In the last round, both sides reviewed the agreement clause by clause and shared amended proposals. The amended drafts of APTTA are with both sides,” said the Special Secretary.

The next round is expected to be held in a fortnight with an agreed venue, date and time. “Afghan Commerce Minister has written a letter to Commerce Advisor, Abdul Razak Dawood who is responding to the letter and suggesting next round in the last week of current month or first week of next month,” he continued.

Chairman Standing Committee expressed his surprise that the agreement is expiring on February 11, 2021 but consensus had not yet evolved.

In reply to a question, Commerce Ministry officials stated that on the one hand there is no deadlock between the parties and on the other differences are not ‘too much.’

Informed sources, however, revealed that differences exist between the two sides particularly on three to four issues, due to which the minutes of the second round were not signed.

The Special Secretary was about to disclose differences between the two countries, but another question raised by Chairman Standing Committee, gave him the opportunity to sidetrack the real unsettled issues.

The Special Secretary said that most of the issues were related to operational side, which were resolved prior to start of talks on the APTTA.

To open a new chapter of transit trade and to facilitate transit trade between Afghanistan and Pakistan, both sides agreed on urgent solution of the remaining operational issues as soon as possible. The following operational issues were discussed:

Custom valuations issue on bilateral trade - The Afghan side pointed out that Pakistan has raised the customs valuation on Afghan exports to Pakistan especially on fresh fruits and dry fruits since last three years. Pakistan side stated that Afghanistan has also raised customs valuation on Pakistan kinnow, mango and vegetables exports. Both sides agreed to review and agree to a mechanism beneficial for exporters on both sides within one month.

Empty Containers- Pakistan side pointed out issue of slow return of empty containers. Afghan side agreed to look into the matter. Both sides agreed to provide further facilities to enhance the flow of traffic at Torkham.

Pakistan Exports to CARs - Pakistan side raised issue of 110% security deposit and $ 1000 charges imposed by Afghanistan on Pakistan exports to CARs and restriction on crossing of transit cargo within 5-7 days. Afghan side assured that no requirement exists on charging $ 1000 transit fee and 110% security deposit. The relevant notification will be shared by the Afghan side.

Sharing of Rules on APTTA Transport & Custom Protocol - Pakistan side requested the Afghans to provide rules governing APTTA Transport & Custom Protocol through diplomatic channel and Afghan side agreed to provide rules.

Scanning of Afghan Transit Cargo - The Afghan side expressed concerns about excessive scanning at the port of entry/en-route. The Afghan side requested information on criteria for scanning under risk management system and further proposed sharing/notifying the PAJCCI and Afghan customs percentage of scanning for verification. Pakistan side agreed with request. Pakistan side clarified that scanning at Chaman & Torkham is being done on Risk Management System and it is up to 10% of total Afghan transit cargo, whereas, scanning at port of entry is 20% and the notification will be shared with Afghan side.

Tracking Devices Issue - Afghan side requested that the monopoly of TPL tracker may be finished and more companies be shortlisted by Pakistan Customs to avoid shortage of trackers faced during Covid-19 pandemic or as requested during 7th APTTCA meeting. Pakistan side may agree to Afghan proposal, to eliminate the requirement of attaching tracking devices to the vehicles.

FBR noted that tracking device requirement cannot be eliminated; however more companies will be licensed within 2-3 months, for installation of trackers on transit cargo. The forum was also informed that shortage of trackers occurred due to pandemic related issues.

Bonded Carriers Issue- Afghan side pointed out that the bonded carriers also increase the cost of transit. The FBR stated that the regime is being eased and transporters owning even one vehicle will be registered too as bonded carriers, to reduce cost and encourage competition.

Shipping line charges- Afghan side suggested that the Shipping lines may be requested to replace security deposit for containers with Insurance Guarantee. Pakistan side noted the request and pledged to revert back on the matter.

Demurrages and Detention Charges- Afghan side requested refund of approximately Rs. 7 billion detention charges and Rs. 500 million demurrage charges incurred due to Covid-19 pandemic blockades. Pakistan side clarified that the case was taken at the appropriate forum twice, but as charges are private party transaction between private port terminal operators, shipping lines and Afghan importers and terminal operators the waiver of these charges was not agreed to.

Operationalisation of Ghulam Khan for Transit Trade - FBR clarified that Rules have been notified to make it operational for transit trade and WeBOC has been installed and additional customs staff is posted.

Both sides agreed to share notifications of operationalisation of Ghulam Khan for transit trade. Pakistan has shared the notification that the transit point is now fully operational.

Committee Member Sajida Begum raised the issue of logic issues of APTTA, saying that Pakistan is facing financial loss due to international logistic companies. She further argued that shipping expenditure has increased due to international shipping companies. The committee also recommended providing Rs 513 million for Expo Centre, Peshawar in the PSDP.

Copyright Business Recorder, 2021