Regulatory Duty on Afghanistan-specific products may be removed

ISLAMABAD: An Inter-Ministerial meeting has asked traders to prepare a list for Afghanistan-specific products for consideration of removing Regulatory Duty (RD) on these items.

According to official minutes of an inter-ministerial meeting comprising of Ministry of Commerce, Ministry of Defence, Ministry of Interior, FBR, NLC and others to review implementation status on Afghanistan issues was held at the Ministry of Commerce. The purpose of the meeting was also to obtain recommendations to improve both bilateral and transit trade and ways & means to remove irritants pointed out by the participants.

In his opening remarks, Secretary Commerce Younus Dagha welcomed the participants and apprised them about follow up of various issues affecting Afghan transit trade through Pakistan.

The Joint Secretary (FT-II), Ministry of Commerce then presented updated status of implementation of the decisions taken in last two meetings, comparison of charges on transit cargo at Karachi with Iranian port of Bandar Abbas and charges being paid for transport of transit trade cargo from Karachi port to Chaman and Torkham.

The representative of NLC provided presentation on development activities being undertaken by their department to improve facilities for transit and bilateral trade via land routes.

Daroo Khan from PAJCCI requested for abolition of negative list of Afghanistan as it was agreed previously.

Jamal Uddin, President Chaman Chamber of Commerce and Industry requested for lifting of Regulatory Duties on import from Afghanistan as trade with Afghanistan is carried out in Pak rupees instead of US dollars.

He pointed that there are certain herbs and dry fruits which are imported from Afghanistan and exported to other countries to earn foreign exchange.

The Director General Transit Trade Karachi pointed out that as per figures available with them Afghan Transit Trade through Iran has decreased from 2011 to 2015 but increased in 2016-17, reaching the value of US $ 2.9 billion.

Ms. Faiza from PAJCCI pointed out that during the last financial year border has been closed eight times which has eroded confidence of businessmen on both sides and adversely effected transit as well as bilateral trade.

Director General Ports and Shipping informed that the Merchant Shipping Ordinance 2018 has been submitted for approval of the cabinet after which it will be presented in the Parliament. Shipping lines tried to fix shipping rates but they were not allowed. PAJCCI representative complained that there are numerous clearance agents and bonded carriers freight charges are very high, there are also pilferage issues and many registered transporters do not possess their own transport. As a result they arrange transport through brokers which further increases the cost of transit through Pakistan.

Director General Transit Trade informed that two tracker operators have been allowed to fix trackers on the bonded carriers and 34 operators have been given license. The Secretary Commerce directed the DG Transit Trade to reduce these costs and customs authorities should try to do away work with the brokers and bonded carriers and transshipment should be separated.

The representative of NLC informed that they have established a centrally controlled system and the issue of charges of Rs2500/- is being regularised.

The representative of National Highway Authority informed that the issue of charges of Rs1500/- has been resolved.

The President Chaman Chamber of Commerce complained that there are five security layers for Afghan Transit Cargo and random checking of containers sometime delays the whole consignment causing loss to the importers/traders.

It has been decided in the meeting that Director General Transit Trade was advised that bonded carrier service charges must be rationalized and notified; Clearance time limit must be fixed; Ministry of Maritime Affairs should work on bringing the shipping line security deposit for Karachi ports as par with ports of Bandar Abbas and Chabahar; Director General Transit Trade and Director General Ports and Shipping may arrange a meeting with SAPT, KIPT, KICT for discussing waiver of demurrage charges at Karachi as requested by PAJCCI; NTTFC and WTO Wing should expedite the work on pending TIR issues to operationalise it as TIR Rules have been notified by FBR already.

The Ministry of Maritime Affairs must expedite the pending legislative bills and NLC and DG Ports and Shipping may work together on Logistical Services Provider Bill as two separate bills will overlap and create confusion.