Transit cargo under ATTA: National Assembly body questions preferential treatment extended to US

National Assembly Standing Committee on Commerce was shocked to know that the United States Forces operating in Afghanistan are not filing basic import document ie Goods Declaration (GD) with the Pakistani customs authorities during customs clearance of their transit consignments under the Afghan Transit Trade Agreement.
The team of FBR Members headed by Acting Chairman FBR and senior Member Mahmmod Alam informed the committee on Thursday that Pakistan was giving preferential treatment to the transit trade consignments imported by US Forces in Afghanistan. The US Forces are not required to file the GDs during clearance of their consignments for transit through the Pakistan-Afghanistan land route.
Along with FBR Member Customs Mumtaz Haider Rizvi and FBR Member Taxpayer's Audit Hafiz Anis, the tax authorities informed the committee that the number of US containers coming through Pakistan was more as compared to Nato containers destined for Afghanistan. During the period of investigation into the ISAF containers scam, it has been observed that the US forces were not required to submit GDs. However, the US Forces have to submit the Bill of Lading on the import of their consignments.
In case of US, Pakistani customs authorities have given them 'User ID' to clear their consignments through a fully automated system of Pakistan Automated Customs Clearance System (PaCCS). "We have given them a User ID, which they use for clearance of their consignments under the PaCCS system," the committee was told. Through this US ID, the US forces have been connected to PaCCS for clearance of their consignments. At the border Customs Collectorate, the US Forces have to again use the User ID for clearance of consignments, Mahmood Alam explained.
He stated that the ISAF/Nato forces are filing the GDs of their consignments and following the transit trade rules as applicable for normal transit trade under the Afghan Transit Trade Agreement. "Under the customs clearance process for the ISAF/Nato containers, they have to file Import General Manifest (IGM) and shipping lines give us information about the Bill of Lading pertaining to the concerned consignment," he said.
The 'Afghan Transit Trade Invoice' is also filed by the importer of transit consignment for Afghanistan. The 'Afghan Transit Trade Invoice' containing details of the consignment is verified by the Afghan customs after crossing the border. The National Logistic Cell or its authorised carriers cross the border under customs custody as the customs department verifies the crossing of the border of the Afghan transit trade containers.
Chairman of the committee Engineer Khurram Dastigir Khan directed the FBR to specify the exact government order or policy under which Pakistan is giving preferential treatment to the US forces during clearance of their consignments for Afghanistan. "We want to know that why different treatment is being given to US transit cargo as compared to Nato consignments," he added.
The committee chaired by Engineer Dastgir Khan, expressed displeasure that on one side Pakistan is providing special treatment to US containers using Pakistani port and soil while on the other hand the US government is threatening Pakistan for not taking action against some militant groups.
The country is confronting severe challenges due to US threats and the government has called the All Parties Conference (APC) to make collective decision over these challenges, they observed. The committee members were surprised that importers of Afghan transit consignments have to follow certain rules and regulations under the old agreement including submission of 'Afghan Transit Trade Invoice' and GDs. While on the other hand, US forces have no compulsion to submit the GDs, reflecting preferential treatment to the US.
MNA Kashmala Tariq observed that Pakistan provides incentives to US containers without any proper checking while on the other side the US dictates us. She suggested that the committee should be empowered to decide to withdraw or continue such special facility for US containers passing through Pakistan.
Responding to the queries, FBR Acting Chairman informed the committee that the clearance of imported consignments through the PaCCS is not limited to US Forces. The consignments of ISAF/Nato Forces, diplomats and even Pakistani importers are eligible to clearance of their 'full container load (FCL)' under the PaCCS. The FBR Member Taxpayers Audit further clarified that since 2002 preferential treatment has been granted to the transit cargo of US. The decision was taken during the last government's tenure, but the exact date and order of the decision has to be seen.
Mumtaz Haider Rizvi recalled that a memorandum of understanding (MoU) was signed between the government of Pakistan and Nato/ISAF on clearance of Afghan transit trade consignments. FBR Member Customs also referred to different Customs Rules and Customs General Orders dealing with the transit consignments of US, ISAF and Nato forces operating in Afghanistan.
The Member Customs said that government has provided special treatment to US containers under Rule 35 as compared to containers supplied to Nato/ISAF and diplomats. The committee directed the FBR to provide details in writing about the competent authority providing more incentives to US containers.
FBR officials informed the committee that there are four types of non-commercial consignments going to Afghanistan through Pakistan under Afghan Transit Trade Facility including ISAF/Nato, US and Diplomats. Among these four types of containers, they said the US containers have special preferential treatment and just an ID was given to US forces, who just confirmed it through reaching these containers to Afghanistan. During the last four years, the officials informed that about more than 150,000 containers of US forces while more than 52,000 containers of Nato/ISAF passed through Pakistan to reach Afghanistan.