Declaring NLC as key agency for transit cargo of coalition forces: FBR to give comments on PC's proposals

The Federal Board of Revenue (FBR) will give its comments on the recommendations of the Planning Commission to declare National Logistic Cell (NLC) as key agency to coordinate movement of all logistics related to transit cargo of US/Isaf/Nato forces operating in Afghanistan and implement an internal mechanism to address security concerns under Afghanistan Pakistan Transit Trade Agreement (APTTA).
Sources told Business Recorder here on Sunday that the FBR was finalising a detailed brief on the recommendations of the Planning Commission to the Economic Coordination Committee (ECC) of the Cabinet for regulating, monitoring and co-ordinating US/Nato/Isaf logistics to Afghanistan.
In view of prevailing security environment and geo-strategic changes in the region, it is very important that "security implications" be given top priority in controlling, regulating and monitoring transit cargo of US/Isaf/Nato forces operating in Afghanistan.
According to the recommendations of the Planning Commission prepared for consideration by ECC of the Cabinet, the NLC to coordinate movement of all logistics related to US/Isaf/Nato transiting through Pakistan both in/out bound being executive arm of National Logistic Board (NLB). It has been recommended that the government should nominate NLB, headed by Minister for Finance as "Focal Body" to monitor and regulate all logistics being transited, through Pakistan. Thirdly, Planning and Development Division may be nominated to act as a "Focal Ministry" for inter-ministerial coordination as well as for implementation of NLB decisions.
It has been further recommended that the "Non Commercial Cargo" may be categorised as one single entity. All non-commercial cargo shall be moved, regulated, coordinated and monitored by NLC with supporting mechanism. Moreover, the framework of Regulatory Transit Trade Authority and Internal Mechanism for addressing security concerns may also be implemented in APTTA 2010, sources said.
Details of the recommendations of the Planning Commission have revealed that the National Logistic Cell (NLC) has been co-ordinating the movement of logistic supplies to Coalition Support Forces stationed in Afghanistan since 2002. The task has been assigned to the NLC vide ECC decision dated March 28, 2002. In order to differentiate between the transiting cargo of US/Isaf/Nato and Afghan Transit Trade (ATT), nomenclature of "Commercial Cargo for ATT" and "Non Commercial Cargo for US/Isaf/Nato Cargo" is being used by the Ministry of Commerce and FBR.
Sources said that the non-commercial cargo i.e. logistic supplies to US/Isaf /Nato forces are further sub-divided in three broad categories as follows:
Firstly, 100 per cent US Cargo, whether military or non-military is moved as "diplomatic cargo" through private transporters contracted by US. The NLC only issues No Objection Certificate (NOC) whereas safety and security of cargo remains the responsibility of US Embassy and its contractors (Total volume of this cargo is approx 63%).
The second category is of Isaf/Nato Military cargo. The cargo is sponsored by the respective embassy/consulates and is moved by them through their own private transporters however remaining conditions are the same (Total volume of this cargo is 24%).
Third category is related to the Isaf/Nato non-military cargo. This category of cargo is transported through an Undertaking Certificate (UC) issued by NLC. The cargo is moved by contractors registered with NLC. The responsibility of safe transportation of this cargo rests with NLC (Total volume of this cargo is 13%).
The above categorisation of Cargo has been provided in the light of a past ECC decision. This anomaly has created serious security implications and is grossly misused by importers, clearing agents, transporters and local entrepreneurs to best of their advantage, due to following:
First, there is no check and balance on the system. The NLC absolves itself of all responsibility after issuing NOC to respective embassies/missions.
Secondly, there is no visibility of cargo en-route Pakistan. Thirdly, the safety and security of cargo rests with concerned embassies, which remain quiet on any incident, which is reported during transportation.
Fourthly, smuggling and disposal of containers inside Pakistan is frequent. Fifthly, No Cross Border Certification is available with co-ordinating agency.
Sixthly, movement of US/Isaf/Nato cargo under the garb of Afghan Transit Trade due to inclusion of non-commercial cargo in SRO 601(1)/2011.
=As per recommendations of the Planning Commission, the NLC realised these grey areas as early as in July 2010 and is in the process of implementing stringent and foolproof security measures. Moreover, these weaknesses were highlighted in Suo motu case of Supreme Court i.e. "Missing Containers Scam" and Federal Tax Ombudsman Report on the said subject. During the 49th NLB meeting held in the Finance Division under the chairmanship of Federal Minister for Finance, following measures to address the above issues also came under discussion:
One, role of monitoring, co-ordinating and regulating all Transit Trade in Pakistan may be assigned to NLB. Two, create a Regulatory Transit Trade Authority under NLB as "Focal Agency".
Three, implementation of foolproof "Internal Mechanism" to control and regulate movement of US / Isaf/Nato Cargo. Fourthly, handling "Non Commercial Cargo" is completely out of the ambit of Afghan Transit Trade.
Keeping in view the prevailing security environment and geo-strategic changes in the region, it is of paramount importance that "security implications" be given prime importance in controlling, regulating and monitoring the transit cargo. The NLC has the requisite facilities and wherewithal, which it can offer to any Ministry/ Agency to dovetail its infrastructure in overall security umbrella.
The facilities which are available with the organisation included scanning facilities for cargo at PQA, Jamrud, Lahore, Chaman (In process). The facility of Trans Freight Station is available after every 200 Km on N5 (main G.T. Road from Peshawar to Karachi), N55 (an alternate route to G.T. road known as Indus Highway traversing on right bank of Indus River from Peshawar via D.I. Khan, D.G. Khan, Shikarpur & Larkana to Karachi) and N40 (Quetta to Chaman). Sources said that for the Vehicle Tracking System installed on all NLC vehicles and Vehicle Tracking System on all leased vehicles utilised by NLC, there is regulatory manpower with requisite transport available at all locations.
The Planning Commission has proposed implementation of foolproof "Internal Mechanism" to control and regulate movement of US/Isaf/Nato Cargo. For this purpose, there is a need for Computerised Documentation. The complete record of all documents GD, BL, NOC/Undertaking is computerised along with Receipt on Delivery (ROD) and Cross Border Certificate (CBC). The NOC and Undertaking papers duly printed through Security Printing Press of Pakistan are being issued to avoid the chances of forged documentation. There is a need for link of departments/agencies with Customs Department for passing on information on real time basis.
Sources said that the specially printed NLC Transit Slip is being issued to all the cargo movement from Karachi to (Chaman & Torkham) and back. Transit slips are being stamped, signed and checked en-route check posts i.e. Kci Northern By-pass, Babar Loai, Baleli, Chaman, Khairabad, Kohat Tunnel and Torkham. In case of sealing of containers, all containers exiting from Kci ports are sealed with special imported NLC seal, duly manufactured for this purpose.
The seals are checked at every check point and de-sealed at Chaman and Torkham, by NLC representatives at the time of crossing of border points. The missing seals are immediately reported and necessary action is taken.
Sources said that the NLC Scanners at Port Qasim and Jamrud are scanning all containers at entry & exit points (less high cube containers). For containers at Karachi Port, arrangements are being made with PICT/KICT for scanning the cargo through their scanners at following rates: KICT (All containers) @ US $25; PICT (20' containers) @ US $ 30 and PICT (40' containers) @ US $40.
For the installation of Tracking Devices, all containers are installed with "tracking device" duly manufactured for this purpose. The contract has been finalised with the firm and procurement is in progress. This will ensure continuous visibility of cargo throughout its journey.
For the opening of the new Check Points, the posts are being established at Karachi, Babar Loai, Baleli, Khairabad, Chaman, Kohat Tunnel and Torkham, sources added.