The government has decided to establish an independent customs office, with a Director General as its head, to deal with operations of Afghanistan-Pakistan Transit Trade Agreement (APTTA), sources told Business Recorder. This proposal on APTTA had come under discussion in GHQ last year when different issues pertaining to the agreement were raised.
"Steps are being taken to establish the DG office, a proposal from GHQ, to ensure dedicated and full-time handling of transit operation under the APTTA, particularly from security point of view," sources said. Afghanistan, they said, had also approached the highest Pakistani level for release of 700 containers, without following procedure.
The visiting Afghan Finance Minister Dr Hazart Omar Zakhilwal also met Commerce Minister Amin Fahim on Tuesday and discussed at length the existing hurdles and irritants in bilateral trade between the two countries. Several issues like mistaken stoppage of containers containing goods, specifically for the Afghan people, as distinct from Nato, were discussed in detail.
Amin assured the delegation that Pakistan is fully committed to addressing all Afghanistan's concerns that would be resolved on priority basis. He informed the delegation that other stakeholders like Defence Division, Finance Division and Foreign Affairs Division of government of Pakistan are also involved in this matter.
"We will invite the Foreign, Defence and Finance Ministers of Pakistan in the next meeting and we all will sit together to find some viable solution for the concerns", the Commerce Minister added. Regarding development of tracker system, sources said that 16 companies, short-listed by the technical committee of FBR, were issued Request for Proposal (RFP) for submission and financial proposals before June 14, 2011.
Twelve firms submitted their proposals within the due date. Evaluation of technical proposals done by the technical committee of FBR led to qualification of five firms for the project. Final steps are being taken for selection of suitable firms for the project.
According to sources, at present the Ministry of Foreign Affairs has been requested to communicate to FBR the focal point from Afghanistan side for co-ordination regarding initiating, developing and implementing the electronic linkage between the two countries. For this purpose, FBR has nominated the Chief (International Customs) FBR and Director Automation-Customs, PRAL as focal point for FBR side.
Sources further stated that response is awaited from the Ministry of Foreign Affairs. Besides, this issue was also taken up in a meeting held in Islamabad on April 9-10, 2011. A joint technical working group was set up under that process for establishing EDI facility at Torkham, meetings of which are taking place and organised by the Canadian High Commission.
Answering another question the sources said that the issue of scanners is under deliberation with the US Aid Pak Trade Project and UNODC. "In case the deliberations of these two organisations do not materialise, the FBR will request GoP to provide necessary funds for installation of scanners at all sea ports and border customs stations including Torkham and Chaman (eight different places)," sources added.
Pakistan also plans to install weighbridges at Chaman and Torkham border points to check misuse of Afghan transit trade cargo facility. In the first phase, two weighbridges, donated by US Aid Pak Trade Project, are in the process of being installed at Chaman and, in second phase, two weighbridges will be installed at Torkham.
During implementation phase, differences emerged between two sides regarding interpretation of customs security and the mechanism for submission of guarantees by the transporters. The FBR took the stand at the Afghanistan Pakistan Transit Trade Co-ordination Authority (APTTCA) meeting in Kabul that customs security must be a bank guarantee encashable in Pakistan; but on the persistent demand of the Afghan side Pakistan agreed in the APTTCA meeting held in Kabul on May 7, 2011 that customs security will mean 'insurance guarantee for the amount for import levies on transit goods issued by any reputable insurance company submitted to the customs authority by the importers or their authorised customs agents, brokers or transport operators'.
Similarly, on the request of the Afghan side made in APTTCA meeting held in Kabul, the facility of encashable revolving bank guarantee equivalent to 25 percent of the leviable duty/taxes of the host country to be provided either by transport operators on his behalf by cleaning agent, the chamber of commerce or the concerned government department for those transport operators bringing in more than four trucks, has been incorporated in the APTTA rules issued by FBR.
However, for less than four vehicles, bank guarantee covering all import levies is to be provided to customs authorities on each vehicle. The percentage of leviable duty/taxes for revolving bank guarantee has been agreed to be reduced from 25 percent 10 percent (in case of four or more vehicles).