Kabul blamed for derailing APTTA

Pakistan on Tuesday pointed finger towards Kabul for derailing the Afghanistan Pakistan Transit Trade Agreement (APTTA), which was signed after years of deliberations, on issues like interpretation of bank guarantees for goods to be transported to Afghanistan.
Washington is the key guarantor of the new agreement between Pakistan and Afghanistan. The US embassy in Pakistan constantly monitored the progress on the implementation status of the pact. Secretary Commerce Zafar Mahmood and Member Customs, FBR, Syed Mumtaz Haider Rizvi briefed media about the events, which according to them, led to the postponement of implementation of APTTA for four months.
The Afghanistan Pakistan Transit Trade Co-ordination Authority (APTTCA) met on February 12 in Islamabad, but failed to agree on operationalising the agreement after the Afghan delegation refused to accept the condition of "international banks' guarantee" and levy imposed by the Sindh government. The Secretary Commerce acknowledged that banks' guarantee and tax slapped by Sindh government on Afghan goods were the main issues of concerns for Afghanistan.
According to the signed minutes of the unsuccessful APTTCA meeting, the next round of talks will be held within six weeks to resolve the outstanding issues. However, both sides agreed to extend the period to four months. The Secretary Commerce briefed the journalists that after the exchange of instruments, both countries were to start implementation of the APTTA after 30 days.
Afghanistan imports 34 percent goods of its requirements through Pakistan whereas its imports from Iran are 32 percent of its requirements. According to him, Pakistan had concerns over the fluent smuggling of imported goods to Pakistan and stringent measures were taken to curb smuggling of goods.
Both countries agreed that importers have to deposit a guarantee in an international bank which will be released or en-cashed after the satisfaction of Pakistani government but when the implementation phase came, Kabul made hue and cry over it and stated that the Pakistani interpretation is unilateral. It insisted that guarantee will only be extended by the Afghan banks and not the international bank.
According to the agreement, in case of Afghanistan international transit made through sea port, the importer or his authorised clearing agent shall submit the duplicate copy of the Goods Declaration (GD) in original along with the GD, in original filed with the Afghan Customs Department (ACD), which indicates payment of duties or exemption in the Afghanistan with stamps, names, designation and signatures of the ACD staff. "Afghanistan has to submit guarantee of those international banks which Pakistan will choice," he reaffirmed Pakistan's position.
Commerce Secretary was of the view that criticism on the APTTA was based on insufficient information as the agreement is beneficial for Pakistan. "We want the agreement to be operational as early as possible," said Zafar Mahmood. He said that a reasonable time is required to implement biometric system and tracking which is responsibility of the Ministry of Interior.
There is an impression that since Pakistan did not give a side letter to Afghanistan for India as per the agreement, Kabul decided to mix up the issue with bank guarantee. However, the Commerce Secretary clarified that neither Afghanistan has pressed this issue nor Pakistan gave any letter. "We had promised to give a side letter to Afghanistan for facilitation of Indian goods' export to Afghanistan when Pakistan resolves its outstanding issues with India," he said.
To a question, he said that Commerce Ministry will raise the issue of 'duty' imposed by the Sindh government so that it may be resolved before the next meeting. Mumtaz Haider Rizvi, Member Customs also faced a number of harsh questions with regard to involvement of customs officials in smuggling of goods being imported under the transit trade agreement.
Secretary Commerce apprised the media that tariff rationalisation for the smuggled goods is on the cards which will be announced in the next budget. He, however, did not give any specific details. A committee headed by Deputy Chairman Planning Commission, Dr Nadeem-ul-Haq has prepared a report on it which is being reviewed, he maintained. To another question, the Secretary Commerce said that until APTTA is not implemented, the existing transit trade agreement will remain intact.