Afghan transit trade
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This Presentation is based on ATT(afghan Transit Trade), Must go through it and if found any mistake do let me know. I made on my expertise and my own information collected by my fellow group members and me.
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Afghan transit trade
- 1. Afghan Transit TradePrepared by:- Hassan Dharsi Researched by :- Ijaz Ali Assested by :- Humda Sana Rizwan Sameer Mukaram
- 2. Border And Cultural Relation History TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 1• Durand Line Agreement , 1893 b/w Amir Abdur Rehman & Durand of British Colonial • Single Page Agreement Contain 7 short Articles • Pakistan and Afghanistan Sharing cultural values and civilization Capital Kabul Population 31,822,848 .00 Official Language Pashto, Darri,Uzbik, Turkem GDP USD 36.838 Bln Religion Islam Per Capita USD 1,177.00
- 3. Trade Relations • Pakistan and Afghanistan have a long history of being trade partners. • Pakistan represents Afghanistan’s main access to a seaports for its foreign trade, and is a direct connection to Central Asia. • Transit to Afghanistan through Pakistan is governed by the Afghanistan-Pakistan Transit trade Agreement (APTTA) which specifies the port, route, transport modes, and customs transit procedures. • With Development in Afghanistan, it has been a good market of Pakistan products • The mutual trade has demonstrated an encouraging and rising trend recent lets have a look . TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 2
- 4. Geography TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 3
- 5. Bilateral trade & Major Commodities(import/ export) TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 4 Year Export Import Total Balance 2000-01 140 29.5 169.5 110.5 2001-02 169.2 22.9 192.1 146.3 2002-03 315.7 34.8 350.5 280.9 2003-04 492.9 47.4 540.3 445.5 2004-05 747.722 38.9 786.622 708.822 2005-06 1063.4 47.5 1110.9 1015.9 2006-07 753.9 76.2 830.1 677.7 2007-08 1143.6 91.3 1234.9 1052.3 2008-09 1398 93 1491 1305 2009-10 1572 139 1711 1433 2010-11 2336.7 172 2508.7 2164.7 Total 10133.12 792.5 10925.62 9340.622
- 6. Bilateral trade & Major Commodities(import/ export) the major export of Pakistan to Afghanistan have been: 1. Rice (All Varieties) 2. Petroleum Products 3. Cement 4. Pharmaceuticals 5. Vegetables 6. Fruits 7. Plastic Articles 8. Chemical Products 9. Electrical and Other Machinery 10. House hold equipment 11. Juices of fruit and vegetables 12. Transport Equipment 13. Foodstuff for animals 14. Electric Fans 15. Rubber manufactured products 16. Tents and canvas goods 17. Footwear 18. Leather products 19. Wheat 20. Paper and paper board 21. Textile made-ups 22. Fish and fish preparations 23. Oil seeds 24. Yarn and many other products TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 4
- 7. Bilateral trade & Major Commodities(import/ export) • the major export of Afghanistan to Pakistan have been: • Dried Fruit • Fresh Fruit • Carpets • Natural Gas • Wool and Cotton • Stones TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 4
- 8. Afghanistan-Pakistan Transit Trade Agreement (APTTA) • The 1965 agreement was renegotiated to provide the containerized cargo • In early 2006, Pakistan started the process of negotiation for signing the ATTA afresh. • signed a (MOU) on May 06, 2009 and resolved that they will conclude the new version of ATTA by the end, i.e., December 31. 2009. • The major issues involved in transit trade discussed by the JWG and the ministerial meetings included the following: 1. Delay in Clearance 2. Exchange of Date 3. Transportation 4. Transit Trade Policy Security 5. Visa Facility 6. Pending Cargo 7. Illegal Trade 8. Banned Chemicals: 9. Indian Export:. 10. Afghan Exports: 11. Smuggling: 12. Air Transit: 13. Pakistan Railways: Use of Containers: 14. Financial Guarantee: 15. Tribunal for arbitration: TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 5
- 9. Afghanistan-Pakistan Transit Trade Agreement (APTTA) TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 5 TABLE OF CONTENTS • PREAMBLE • Section 1 General Provisions • Section 2 Right of Transit • Section 3 Transit Transport Corridors • Section 4 Facilitation of Transit Trade • Section 5 General Condition of Transport in Transit • Section 6 Requirements for the Admittance of Road Vehicles • Section 7 Customs Control and Other Controls • Section 8 Documentation and Procedure • Section 9 Duties, Taxes, Charges and Payment Arrangements • Section 10 Afghanistan – Pakistan Transit Trade Coordination Authority. • Section 11 Dispute settlement mechanism • Section 12 Final Clauses • Section 13 Entry into Force
- 10. Afghanistan-Pakistan Transit Trade Agreement (APTTA) TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 5 ANNEXES • Annex 1 - International Transit Transport Corridors and Ports of Entry/Exit • Annex 2 – List of Protocols attached to the Agreement • Protocol 1 International Carriage by Road of Goods and Baggage in Transit • Protocol 2 Temporary Admission of Vehicles for Commercial Use • Protocol 3 Customs Control and Transit Regime • Protocol 4 Control of Precursors and chemical substances used in the illicit Manufacture of Narcotics Drugs or Psychotropic Substances.
- 11. Afghanistan-Pakistan Transit Trade Agreement (APTTA) TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 5 In September 2011, afghan Minister for Commerce visited Pakistan and held discussions • Reducing the amount of bank guarantees to provide facility to small importers and exporters from Afghanistan. Insurance premium considered as an alternate. • Trans loading of pending afghan cargo with Pakistan railways. • No financial guarantees/securities for afghan exports to India through Pakistan. • No financial guarantees/securities for Pakistan exports to Central Asia through Afghanistan.
- 12. Parties Involved In Transit Trade • Afghan importer (Consignee) • Exporter (anywhere in the world) (Shipper) • Shipping Line (Carrier) • Freight Forwarder • Customs Clearing Agent • Bonded Carrier • Transporter/Broker • Insurance Company • Tracker Company • Border Clearing Agent • Commission Kar ( Customs Clearing agent in Afghanistan) TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 6
- 13. Karachi Port – Hyderabad – Moro – Noshera Feroz – Ranipure – Kherpur – Karamabad – Sukkur By-Pass – Ghotki – Goth Machi – Sadiqabad – R.Y Khan by pass – Zahir Peer – Ali Pur – Head Panjna – Sardar Garh – Muzafar Garh – Sarwar Shaheed Chowk – Chowk Azam – Fateh Pur – Shahra-e-Muhajir – Dulle Wala – Mianwali – Sadaqat Abad – Musa Khel– Talagung – Bal Qasr – Peshawar – Khyber Tribal Area – Jamrud Fort – Ali Masjid – Gurgura – Sultan Khel – Landi Kotal – Khyber Pass– Torkham Pak-Afghan Border – Gumrock – Jallalabad – Kabul. Karachi to Kabul = Total Distance = 1,843 Km (Approximately). LAND ROUTES FOR TRANSIT TO AFGHANISTAN – KANDHAR VIA KARACHI Karachi Port – Hub Choki - Gadani – Vinder – Uthal – Bela – Wadh – Khuzdar – Sohrab - Kallat – Mustang – Quetta – Kuchluck Town – Yaro Town – Qila Abdullah Town – Shalabagh Mountain Area – Chaman City – Chaman Pak- Afghan Border – Waish – Spin Buldak Town – Mall Bridge– Argasan Bridge– Kandhar Airport – Kandhar City. Total Distance = 913 Km (Approximately) Land Routes For Transit TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 7
- 14. Land Routes For Transit TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 7
- 15. Distances Between Cities • KARACHI TO KABUL 1843 KM apx • KARACHI TO JALLALABAD 1640 KM apx • KARACHI TO MAZARE-SHAREEF 2500 KM apx • KARACHI TO KANDHAR 913 KM apx TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 8
- 16. Transit Time Between Cities • KARACHI TO KABUL 08 – 10 DAYS apx • KARACHI TO JALLALABAD 07 – 08 DAYS apx • KARACHI TO MAZAR-E-SHAREEF 16 – 18 DAYS apx • KARACHI TO HERAT 10 – 12 DAYS apx TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 9
- 17. Advantage & Disadvantage ADVANTAGES OF AFGHAN TRANSIT TRADE • Access to the market of Central Asian republics to promote Pakistan Exports. • Strategic relations with Central Asian Republic. • Awareness of Transit Trade concepts in professionals • Increase in employment opportunities. • Growth in businesses of freight forwarders, Shipping Line, Transporters, Customs clearing agents and other concerned industries. • Contribution in growth of GDP and economy. • Growing statistics to attract international markets • Foreign and local investments in Ports, shipping and logistics industry. • Increase in foreign exchange. TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 10
- 18. Advantage & Disadvantage DISADVANTAGES OF AFGHAN TRANSIT TRADE • Illegal/contraband Goods Transactions. • Smuggling. • National Security Issues due to misuse of the trade • Expenses on borders for extra vigilance • Pakistani traders suffer huge losses, • adverse effect in investment process in Pakistan by not competing low price structure of smuggled products, • adverse effect on legal imports of Pakistan, • Substantial loss in term of the corporate taxes and duties. • Corruptions in Pakistan • Misuse of border • Human trafficking TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 10
- 19. Procedure Mainly we can divide the transit route in two parts: • Commercial Shipments • Non-Commercial Shipments TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 11
- 20. For Commercial Shipments The Procedure Is: • Documents Required: • Bill of Lading Original (3/3) or Copy with surrender message. • Commercial Invoice Original (1set) • Packing List Original (1set) • Jawaz Nama/Trade License Original for commercial shipment • Authorization letter Original • WEBOC ID • All commercial shipments are moving very smoothly if documents are in order & correct manifested, step by step procedure details are as under :- • First of all after authorize on WEBOC system from importer, clearing agent file GD in Pakistan customs with mentioning route point, border agent & bonded carrier. • Collection of Delivery and gate pass order from shipping line after paying D/o Charges and Container Security Deposit. • Request for shifting the container for scanning TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 11
- 21. For Commercial Shipments The Procedure Is: • After Scanning, report to be submitted with customs • Seal verification with documents • After assessment of cargo, submission of Insurance guarantee in customs • After completion of custom process, request to be sent to transporter to arrange vehicle • Tracker arrangement from Tracker Company. • After payment of port charges – Delivery of container from Karachi • All original documents forward to Pakistan border agent in order to clear shipment at border • After border crossing – vehicle will reach designated Gumrak/Customs in Afghanistan • After completion of custom process- cargo delivery at warehouse of consignee. • Empty Container return back to Karachi TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 11
- 22. For Non-commercial Shipments The Procedure Is • Documents Required: 1. Bill of Lading Original 2. Original Exemption certificate 3. Invoice Orignal (1set) 4. Packing List Original (1set) 5. Original letter from consignee for Authorization, Addressing to custom & terminal for shipment handling. • Step by Step Procedure is: • GD filing in Pakistan customs mentioning Border agent & bonded carrier. • All original documents submitted with custom for verification • Custom will verify all documents from issuing authority • Collection of Delivery and gate pass order from shipping line after paying D/o Charges and Container Security Deposit • Request for shifting the cntr for scanning • After Scanning, report submitted with custom • Seal verification with documents • After assessment of cargo, submit with custom through Exemption. • After completion of custom process, request to be sent to transporter to arrange vehicle • Tracker arrangement from Tracker Company. • After payment of port charges – Delivery of container from Karachi • All original documents forward to Pakistan border agent in order to clear shipment at border • After border crossing – vehicle will reach designated Gumrak/Customs in Afghanistan • After completion of custom process- cargo delivery at warehouse of consignee. • Empty Container return back to Karachi TRADE RELATIONS GEOGRAPHY BILATERAL TRADE TRANSIT TIME HISTORY ADVANTAGES & DISADVANTAGES APTTA PARTIES INVOLVED LAND ROUTES DISTANCE B/W CITIES PROCEDURE 11