AFGHANISTAN TRADE AND REVENUE PROJECT€¦ · ACE Agricultural Credit Enhancement II project ......

AFGHANISTAN TRADE AND

REVENUE PROJECT FINAL REPORT

February 28, 2018

This publication was produced for review by the United States Agency for International

Development. It was prepared by Chemonics International Inc.

DISCLAIMER

The authors’ views expressed in this publication do not necessarily reflect the views of the United States

Agency for International Development or the United States government.

AFGHANISTAN TRADE AND

REVENUE PROJECT FINAL REPORT

Contract No. AID-OAA-I-12-00035, Task Order No. AID-306-TO-13-00009

Cover photo: Pictured left to right, Minister of Commerce and Industry of Indian Suresh

Prabhu, Chief Executive of Afghanistan H. E. Dr. Abdullah Abdullah, Special Chargé d’Affaires of

the U.S. Embassy in Kabul, Afghanistan H.E. Ambassador Hugo Llorens, and Chargé d’Affaires of

the U.S. Embassy in New Delhi, India MaryKay Carlson cut a ribbon to mark the opening of the

Passage to Prosperity: India-Afghanistan Trade and Investment Show in New Delhi, September

27- 30, 2017. (Credit: Ian Carver, ATAR)

AFGHANISTAN TRADE AND REVENUE PROJECT | i

CONTENTS

Acronyms ................................................................................................................ ii

Executive Summary ............................................................................................... 1

Key Highlights and Achievements by Component ........................................... 3

Component 1: Support Trade Policy Liberalization ............................................................... 3

Component 2: Facilitate Enhanced Access to Regional Markets......................................... 4

Component 3: Improved Customs Administration ................................................................ 5

COMPONENT 1: TRADE POLICY LIBERALIZATION ................................... 7

1. Afghanistan’s WTO Accession Process ................................................................................ 7

2. Supporting Legislative Reforms for accession ...................................................................11

3. Supporting Implementation of WTO Laws and Commitments ...................................14

3.3.A. The WTO Unit ...........................................................................................................20

COMPONENT 2: FACILITATE ENHANCED ACCESS TO REGIONAL

MARKETS ............................................................................................................. 27

1. Cross-cutting activities to enhance regional trade ...........................................................27

2. Country-Specific Initiatives to Enhance Regional Trade .................................................38

2.1 Afghanistan ........................................................................................................................38

2.2. Kyrgyz Republic ...............................................................................................................47

2.3. Tajikistan ...........................................................................................................................49

2.3.A. Customs Support ........................................................................................................49

2.4. Turkmenistan ...................................................................................................................51

2.5. Uzbekistan ........................................................................................................................53

COMPONENT 3: IMPROVED CUSTOMS ADMINISTRATION ................... 55

1. Afghan National Customs Academy ....................................................................................55

2. Modernization and Simplification of Procedures ..............................................................56

3. Modernization of Border Management AND SIMPLIFICATION of Customs

Procedures .....................................................................................................................................63

4. Improved Customs Administration .....................................................................................66

4.2 increasing ties to the wco through diagnostic assessments ...................................69

Collaboration ........................................................................................................ 73

ii AFGHANISTAN TRADE AND REVENUE PROJECT

Links with Relevant Afghan Government Ministries ............................................................73

Links with Other Donor Agencies ...........................................................................................73

Links with Other USAID Projects ............................................................................................74

Challenges and Lessons Learned ........................................................................ 76

Component 1: Support Trade Policy Liberalization .............................................................76

Component 2: Facilitate Enhanced Access to Regional Markets.......................................78

Component 3: IMPROVED CUSTOMS ADMINISTRATION ...........................................82

Annex A. Afghanistan Trade And Revenue Financial Report ......................... 85

Annex B. SUMMARY PERFORMANCE INDICATOR TRACKING TABLE . 87

Annex C. Snapshots ............................................................................................. 90

Afghan Carpets Reach Dubai By Air .................................................................. 91

Afghanistan Signs Arusha Declaration .............................................................. 92

Afghan Exports Reach Southeast Asia............................................................... 93

Businessman Finds Buyers in Dubai ................................................................... 94

Businesswoman Strikes Deals in Dubai ............................................................. 95

Merger Makes Doing Business Easier ................................................................ 96

Annex D. Press Releases ..................................................................................... 97

Annex E. Index of Key Afghanistan Trade and Revenue Project Reports ..... 96

AFGHANISTAN TRADE AND REVENUE PROJECT | ii

ACRONYMS

ABADE Assistance in Building Afghanistan by Developing Enterprises

ABBAT Association of International Transport Operators of Tajikistan

ABP Afghan Border Police

ACAA Afghanistan Civil Aviation Authority

ACBR-IP Afghanistan Central Business Registry-Intellectual Property

ACCI Afghanistan Chamber of Commerce and Industry

ACD Afghan Customs Department

ACE Agricultural Credit Enhancement II project

ADBL Association for Development of Business Logistics

AEC Afghanistan Exporters Club

AEO Authorized Economic Operator

AHD Animal Health Directorate

AISA Afghanistan Investment Support Agency

ANCA Afghanistan National Customs Academy

ANSA Afghanistan National Standards Authority

APTTA Afghanistan Pakistan Transit Trade Agreement

APTTCA Afghanistan-Pakistan-Tajikistan Transit Trade Coordination

Authority

ARD Afghanistan Revenue Department

ASYCUDA Automated System for Customs Data

ATAR Afghanistan Trade and Revenue Project

AWBF Afghanistan Women’s Business Federation

BCCI Balkh Chamber of Commerce and Industries

BCP border crossing point

BMM Border Management Model

BMTF Border Management Task Forces

CAREC Central Asia Regional Economic Cooperation program

CATF Central Asia Trade Forum

CBTA Cross-Border Transport Agreement

CCC Customs Consultative Council

AFGHANISTAN TRADE AND REVENUE PROJECT | iii

CCTF Committee for Trade Facilitation

CHAMP Commercial Horticulture and Agricultural Marketing Program

CITS Comprehensive Integrated Tariff System

CLDP Commercial Law Development Program

CSO Central Statistics Organization

CTA Customs and Tax Academy

CVA Customs Valuation Agreement

DAB Da Afghanistan Bank

EPAA Export Promotion Agency of Afghanistan

E-Pay electronic payment

EU-BOMNAF European Union EU Border Management Northern

Afghanistan

EPZ export processing zone

FAIDA Financial Access for Investing in the Development of

Afghanistan

FAO Food and Agriculture Organization

FICCI Federation of Indian Chamber of Commerce and Industries

FLO FICCI Ladies Organization

FTWZ Free Trade Warehousing Zone

GAIN Global Alliance for Improved Nutrition

GATT General Agreement on Tariffs and Trade

GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit

GPA Government Procurement Agreement

HACCP Hazard Analysis Critical Control Point

HKIA Hamid Karzai International Airport

ICD inland clearance depot

IPPC International Plant Protection Convention

IRU International Road Transport Union

ITA Information Technology Agreement

ITC International Trade Centre

MAA Mutual Assistance Agreement

MAIL Ministry of Agriculture, Irrigation, and Livestock

MEDT Ministry of Economic Development and Trade

AFGHANISTAN TRADE AND REVENUE PROJECT | iv

MOCI Ministry of Commerce and Industries

MOFA Ministry of Foreign Affairs

MOIC Ministry of Information and Culture

MOPH Ministry of Public Health

MOTCA Ministry of Transportation and Civil Aviation

NEAC National Education Agricultural College

NEPA National Environmental Protection Agency

NTFC National Trade Facilitation Committee

OIE World Organisation for Animal Health

OSS one-stop shop

PATTTA Pakistan-Afghanistan-Tajikistan Transit and Trade Agreement

PCA Post Clearance Audit

PCTD Prevention of Customs Transgression Department

PNC-ICC Pakistan National Committee of the International Chamber of

Commerce

PPQD Protection and Quarantine Department

PRA Pest Risk Assessment

RADP-N Regional Agricultural Development Program-North

RADP-S Regional Agricultural Development Program-South

RADP-W Regional Agricultural Development Program-West

REC Regional Economic Cooperation project

RKC Revised Kyoto Convention

SAFTA South Asian Free Trade Area

SAARC South Asian Association for Regional Cooperation

SEZ Special Economic Zone

SPS Sanitary Phytosanitary Measures

TAFA Trade Accession and Facilitation for Afghanistan

TAPI Turkmenistan-Afghanistan-Pakistan-India Pipeline

TBT Technical Barriers to Trade

TFA Trade Facilitation Agreement

TIFA Trade and Investment Framework Agreement

TIR Transports Internationaux Routiers

TPAU Trade Policy Analysis Unit

AFGHANISTAN TRADE AND REVENUE PROJECT | v

TRIPS Trade-Related Aspects of Intellectual Property Rights

UNCTAD United Nations Conference on Trade and Development

UNDP United National Development Program

USPTO United States Patent and Trademark Office

WCO World Customs Organization

WIPO World Intellectual Property Organization

WTO World Trade Organization

AFGHANISTAN TRADE AND REVENUE PROJECT | 1

EXECUTIVE SUMMARY

The Afghanistan Trade and Revenue (ATAR) project started implementation during the

so-called “Transformational Decade” in Afghanistan, when the international military

presence in the country that had been there since 2001 began to decrease substantially,

with a concomitant reduction in international aid. As a result, the Government of the

Islamic Republic of Afghanistan was challenged to spur economic growth, increase

revenues, and improve the quality of services it provides. To this end, from November

2013 to February 2018, ATAR worked to strengthen the business climate of Afghanistan

to enable private investment, enhanced trade, job creation, and fiscal sustainability.

With its partner Economic Integration Forum, Chemonics worked to support

Afghanistan’s continuing recovery from three decades of war and economic devastation

through three primary activities: improving the Afghan government’s capacity to

formulate and implement a liberal policy framework for trade and investment in

accordance with international standards; enhancing integration in the regional and world

economy through the promotion of trade and agreements, enhanced economic

corridors governance, and private-sector linkages throughout South and Central Asia;

and strengthening revenue generation for fiscal sustainability and trade facilitation

through reforms and anti-corruption measures in customs and taxation. In this way, the

ATAR project fostered Afghanistan’s economic growth and greater integration into the

regional and global community.

In the face of political challenges and volatile security, ATAR supported the Afghan

government and private sector to improve the country’s trade environment. Most

significantly, as a result of USAID support under ATAR and the previous Trade

Accession and Facilitation I and II projects, Afghanistan became the 164th member of the

World Trade Organization (WTO) on July 29, 2016. Through its accession to the

WTO, Afghanistan sent a strong signal to investors that it had established a stable,

predictable, and transparent environment with strong protection for investors’ rights,

including intellectual property rights. With ATAR’s support, Afghanistan also ratified the

WTO’s Trade Facilitation Agreement and passed 25 complex trade-related laws that

serve the foundation of any modern, vibrant trading regime.

To increase Afghanistan’s regional ties, ATAR maintained a presence in four Central

Asian countries, as shown in Exhibit 1. This in-country presence allowed ATAR to

promote Afghanistan’s interests in the region and to strengthen trade and transit

relationships with its South and Central Asian neighbors, thereby fostering regional

integration. In addition, by maintaining a regional presence, ATAR supported Central

Asian countries’ progress toward ratification or accession to international agreements,

such as the World Customs Organization (WCO) Revised Kyoto Convention (RKC) or the Transports Internationaux Routiers (TIR) Convention, as well as provide capacity

building support to customs administrations, the private sector, and civil society

organizations.


ATAR’s regional

approach also

allowed it to promote

trade and link

businesses

throughout Central

and South Asia.

Afghan traders

negotiated millions of

dollars in business

deals at 16

international trade

events with ATAR

support. The success

of these events culminated in

September 2017 with

the Passage to

Prosperity: India-Afghanistan Trade Show in New Delhi where Afghan and Indian buyers

struck more than $240 million in confirmed and potential deals in the India. As part of

its increased focus on facilitating exports, ATAR demonstrated the viability of air cargo,

supporting traders in exporting $2.7 million worth of goods by air and coordinating with

government and investors to upgrade Afghan airports air cargo capacity.

Finally, to speed the movement of goods across border, ATAR also supported the

Afghan government in implementing customs reforms and promote the principles of the

World Customs Organization Revised Kyoto Convention and Revised Arusha

Declaration. With ATAR’s training and policy support, the Afghanistan Customs

Department increased its ability to tackle corruption, generate customs revenue, and

facilitate trade at borders with Afghanistan’s neighbors and countries farther abroad.

EXHIBIT 1: ATAR’S REGIONAL PRESENCE


KEY HIGHLIGHTS

AND ACHIEVEMENTS

BY COMPONENT COMPONENT 1: SUPPORT TRADE POLICY LIBERALIZATION

Component 1 promoted liberalization of Afghanistan’s trade regime by supporting its

accession to the WTO. ATAR provided capacity building and technical assistance within

implementing institutions to conduct negotiations, to draft legislation required for

accession, and to institute required reforms following accession. In addition to

conforming to WTO requirements, these policies, laws, and regulations will attract

investment and enable the private sector to grow. ATAR’s achievements under

Component 1 include:

• After years of work in trade reforms and trade negotiations by the Afghan

government, and with the support of ATAR and TAFA I and II, Afghanistan officially

became the WTO’s 164th member on July 29, 2016. In the days leading to formal

membership, Afghanistan passed 25 of 26 WTO-related pieces of trade legislation.

Following accession, ATAR assisted the Ministry of Commerce and Industries

(MOCI) with developing a post-accession strategy to maximize the benefits of WTO

membership, educate ministries and state bodies on their WTO responsibilities, and

create a structure for a comprehensive WTO Department to handle post-accession

matters.

• On July 29, 2016, President Ashraf Ghani signed the WTO Trade Facilitation

Agreement (TFA), and Afghanistan became the 92nd WTO member to ratify and

notify the TFA (ahead of 72 other members). This contributed to the required

number of WTO member ratifications (108) needed for the TFA agreement to enter into force.

• ATAR assisted in the development of an automated registry for trademarks at

MOCI and an automated registry for border enforcement of intellectual property

rights at Afghanistan Customs Department. This will help to strengthen the

protection of intellectual property rights, a key component of WTO.

• In a major step toward attracting foreign investment, ATAR supported MOCI in

merging the licensing department of the Afghanistan Investment Support Agency into

MOCI’s Afghanistan Central Business Registry-Intellectual Property. As a result,

ACBR-IP issues a single business license instead of the multiple investment and trade

licenses that had been required of companies.


• ATAR assisted in preparing Afghanistan’s application for observer status in the

WTO Government Procurement Agreement, which will give Afghanistan, once it

becomes a full member, access to government procurement activities with an annual market of $17 trillion.

COMPONENT 2: FACILITATE ENHANCED ACCESS TO REGIONAL MARKETS

Under Component 2, ATAR facilitated the development and implementation of regional

trade agreements; assisted the government to support measures needed to implement

regional trade agreements; and supported the implementation of transport corridors

and trade facilitating measures by working with countries such as Uzbekistan, Tajikistan,

Kyrgyzstan, and Turkmenistan. ATAR’s achievements under Component 2 include:

• ATAR supported the participation of hundreds of Afghan traders in 16 high-level

international tradeshows where they signed agreements worth more than $60

million. These events included established, sector-specific shows such as Germany’s

carpet show DOMOTEX and Dubai’s food tradeshow Gulfood, as well as ATAR-

organized shows, such as Made in Afghanistan in July 2016 and Exhibition Afghanistan

in December 2016, for a range of products. Together with USAID Afghanistan and

USAID India, ATAR organized the Passage to Prosperity: India-Afghanistan Trade

and Investment Show from September 27-30 in New Delhi, India. More than 1,200

Indian businesses met with approximately 200 Afghan businesses from a variety of

sectors, including fresh fruits and spices, energy, and finance. The event generated

$240 million in reported agreements, including $27 million in signed contracts for

Afghan exports and Indian investments. The event helped to reinvigorate Indian-

Afghan relations and demonstrated Afghanistan’s trade potential to other countries

in the region and beyond.

• In January 2018, a one-stop shop (OSS) for customs clearance was inaugurated at

Hamid Karzai International Airport (HKIA) in Kabul. The OSS launch was the result

of nearly a year of work with multiple stakeholders in both the public and private

sector to facilitate exports by air. The establishment of the OSS is a major step

forward in boosting Afghanistan’s exports, and was complemented by the

establishment of a consolidation warehouse to store goods prior to clearance.

Thanks to the OSS, traders now can benefit from a simplified process for obtaining

approvals and permits from different ministries, agencies, and associations in one

centrally office, located within HKIA premises.

• In the Central Asian Republics, ATAR promoted Afghanistan’s economic interests

and greater regional integration and participation in international trade and transit agreements. With ATAR support, the Kyrgyz Republic ratified the WTO TFA, and

Tajikistan moved closer to ratification. Due in part to ATAR’s efforts, Pakistan and

India became contracting parties to the TIR Convention in 2016 and 2017,

respectively. All South and Central Asian countries are now contracting parties of

the TIR Convention, thanks in part to ATAR’s support. In principle, this will permit

more efficient movement of cargo by road.


• In a significant development in U.S.-Uzbek cooperation, ATAR provided the first

USAID-funded support to the Uzbekistan Customs Committee in more than a

decade, training 21 customs officers in May 2015. Additional training followed in 2016 and 2017.

• ATAR helped to reinvigorate the Kyrgyz Republic’s Customs Consultative Council,

which provides a forum for discussion between customs and the trading community

and customs brokers. As a result of ATAR’s efforts, Kyrgyz customs held the first

Customs Consultative Council in late 2014 and held additional meetings throughout

the last three years with ATAR support.

• In 2016, ATAR helped to establish the Afghanistan Exporters Club as part of an

effort to increase local capacity to organize Afghan traders’ participation in future

international tradeshows and to promote air-cargo and other export initiatives. To

date, AEC has recruited 35 members (three carpet businesses, three handicrafts

businesses, four marble and gemstone businesses, 24 dried fruit exporters, and one

organization).

• To facilitate exports by air, ATAR established a logistical system that includes a

consolidation warehouse in Kabul and provides local freight brokerage services and

a Free Trade Warehousing Zone in Dubai. In support of Afghanistan Civil Aviation

Authority (ACAA), ATAR developed plans to convert the current Haj Terminal at

HKIA to a modern air cargo terminal and to facilitate the establishment of export

processing zones (EPZs) in Kabul, Kandahar, Herat, and Mazar-e-Sharif. Since being

launched in early 2017, ATAR’s air cargo incentive program helped Afghan

exporters airlift about $2.7 million worth of goods to markets in North America,

Europe, and the Middle East.

• In mid-2017, ATAR began working with ACAA to develop air corridors between

Afghanistan and its strategic trade partners. As part of HKIA’s Air Cargo Zone,

ATAR developed plans to establish an EPZ, which will be a step towards the

development of a special economic zone (SEZ) in Afghanistan. The EPZ will be

expected to attract investors for sectors with high export potential, including gem

cutting and polishing facilities and carpet finishing facilities.

COMPONENT 3: IMPROVED CUSTOMS ADMINISTRATION

Component 3 was designed to enhance the Afghan government’s capacity, in particular

the Afghanistan Customs Department (ACD), to generate revenue by improving

customs procedures to increase transparency, efficiency, and uniformity in the collection

of revenue, performance of core functions, and facilitation of trade. ATAR’s

achievements under Component 3 include:

• On December 5, 2016, the minister of finance inaugurated the Customs and Tax

Academy (CTA), a modification of the former customs academy that incorporates

the Afghanistan Revenue Department (ARD) training unit. ATAR provided significant


assistance to the academy, including preparation of the academy library and a search

and examination bay for practical training. Following the launch, ATAR finalized the

new academy curriculum, covering basic, intermediate, and advanced training

courses.

• On July 16, 2017, Minister of Finance Eklil Hakimi signed a notification of intent to

adopt the WCO Revised Arusha Declaration, marking a commitment to combat

corruption in customs administration. This is the result of significant ATAR support

to anti-corruption efforts within ACD, including the development of an anti-

corruption strategy and code of conduct. With ATAR support, ACD also finalized

an Arusha Declaration implementation plan, which covers strategic and operational

objectives to be completed between 2017 and 2020.

• To modernize and improve how customs-related duties are collected and to bring

more efficiency and transparency in revenue collections made from customs duties,

ATAR continued the work started under the TAFA II project to introduce an e-

payment system for customs. In December 2015, ACD officially launched E-Pay in

Mazar-e-Sharif. With ATAR support, e-payment became operational across

Afghanistan by the end of 2016. This includes all of Afghanistan’s inland customs

depots and customs border crossing points except for customs sites in Khost and

Paktia (due to security concerns).

• In July 2017, ACD completed implementation of one of the WTO TFA

requirements: advance ruling function. ACD posted all advance ruling materials on

its website, together with application templates. By the end of July, ACD received

three applications asking for a binding decision on the tariff classification and

customs valuation. ATAR developed brochures on advance ruling that were used as

part of its traders awareness-raising activities.


COMPONENT 1: TRADE POLICY

LIBERALIZATION

On July 29, 2016, Afghanistan became the WTO’s 164th member, signaling to the world

that the country was transforming its trade environment to comply with the

international rules governing global commerce. This accomplishment was the result of

renewed commitment by President Ashraf Ghani’s government to foster Afghanistan’s

growth through integration into the global economy. It also was the result of years of

sustained USAID support to the Afghan government’s accession process through the

ATAR project and its two predecessor programs, the Trade Accession and Facilitation

for Afghanistan (TAFA) I and II projects. ATAR provided extensive support during the

pre-accession phase, helping to reignite the process following the transition to the

Ghani government, and in the post-accession phase to help Afghanistan fulfill its

commitments under the WTO. 1. AFGHANISTAN’S WTO ACCESSION PROCESS

Afghanistan’s WTO accession process started

in 2004, although it was largely dormant until 2009. From 2010 through mid-2014,

Afghanistan made remarkable progress

toward accession. The capacity of ministries

and private-sector actors was built to navigate

the complex process of becoming a WTO

member. Five successful WTO Working Party

meetings were held. The evolution of the

draft Working Party Report from Elements of

the Factual Summary last a little more than

one year; this process has taken four to five

years for other countries. Agricultural

plurilateral negotiations concluded in one

round versus four to five rounds on average.

See Exhibit 2 for the steps in the path to

WTO accession.

BI-LATERAL MARKET ACCESS

AGREEMENTS

The Government of the Islamic Republic of

Afghanistan signed bilateral agreements on

market access for goods and services with

nine WTO members:

1. United States, January 2014

2. Turkey, February 2014

3. Chinese Taipei, February 2014

4. Korea, February 2014

5. European Union, February 2014

6. Norway, December 2013

7. Thailand, December 2013

8. Canada, July 2013*

9. Japan, July 2013*

*Afghanistan signed these during the

TAFA project.


EXHIBIT 2. COMPLETING THE PATH TO WTO ACCESSION

During ATAR’s first year, Afghanistan took a major step toward WTO accession by

finalizing bilateral negotiations on market access for goods and services (see box on

previous page) in February 2014.1 Market access refers to the extent to which an

imported good or service can compete in Afghanistan with domestic goods or services.

Bilateral market access negotiations represent about 60 percent of the WTO accession

process and are the most challenging part of the process. Afghanistan launched its

bilateral market access negotiations on services in June 2012 with the support of TAFA

and completed them in January 2014 with the support of ATAR (about 18 months).

Bilateral market access negotiations on goods were launched with TAFA’s support in

December 2012 and concluded in February 2014 with ATAR’s support (slightly more

than one year). It is worth noting that other countries achieve these milestones in an

average of six years. The WTO and its Working Party Members hailed the record-

breaking progress.

Afghanistan was in the final stages of WTO accession at the end of 2014, when the

country’s government underwent a transition following the resolution to the disputed

and protracted presidential elections. With a change in the country’s decision-makers,

the Afghan government put the country’s WTO accession on hold, as President Ghani

directed his government to focus on security. By mid-2015, government officials began

to turn their attention back to accession, in part due to ATAR’s advocacy with

President Ghani, support to MOCI to promote the accession agenda, and awareness-

building activities targeting Afghan officials and the public.

1 A country acceding to the WTO enters into bilateral negotiations with individual WTO members. They

are bilateral because different countries have different trading interests. The negotiations cover tariffs,

specific market access commitments, and other policies in goods and services.


ATAR and MOCI met several times with

members of President Ghani’s economic

policy and strategy team. To prepare for

these meetings, ATAR assisted MOCI in

preparing and providing 15 awareness

papers, formal WTO documents, talking

points, and notes on WTO accession. In

early October 2015, MOCI and ATAR met

with President Ghani and his advisors to

discuss WTO commitments, benefits, and

challenges. In particular, the ATAR team

stressed the advantages to Afghanistan’s

accession to the WTO as well as the

mechanisms that would be open to Afghanistan as a WTO member to resolve

disputes, such as longstanding transit

challenges with Pakistan.

By October 2015, following intensive ATAR

and MOCI preparation and awareness

building, President Ghani expressed his

support and agreed to move forward with

concluding WTO accession negotiations.

ATAR then assisted MOCI and the WTO

Secretariat with finalizing Afghanistan’s draft

Working Party Report. The WTO

Secretariat disseminated the report to WTO

Working Party members in October 2015,

along with three other documents of the

accession package: the protocol of accession,

the schedule of concessions and

commitments on goods, and the schedule of

specific commitments on services.

With ATAR support, Afghanistan continued to achieve major WTO milestones

throughout late 2015 and early 2016. First, in November 2015, an Afghan delegation

attended the country’s fifth and final Working Party meeting at WTO headquarters in

Geneva, Switzerland. At this meeting, WTO Working Party members approved

Afghanistan’s accession package. Next, in December 2015, an Afghan delegation

attended the 10th WTO Ministerial Conference in Nairobi, Kenya. At the conference,

the WTO Ministerial Council formally adopted Afghanistan’s accession package. ATAR

further assisted the Afghanistan government with compiling lists of technical assistance

needs, which were circulated at a donors’ roundtable at the Nairobi conference.

AFGHANISTAN’S WTO

MILESTONES

Afghanistan reached major milestones

during the project’s third year, culminating

in the country’s WTO accession:

• On November 11, 2015, an Afghan

delegation attended the country’s fifth

and final Working Party meeting in

Geneva, Switzerland. WTO Working

Party members approved Afghanistan

accession package by consensus, ad

referendum.

• On December 17, 2015, an Afghan

delegation attended the WTO’s 10th

Ministerial Conference in Nairobi,

Kenya. The WTO Ministerial Council

formally adopted Afghanistan’s terms

of accession.

• In January 2016, MOCI submitted the

accession package to the Cabinet of

Ministers for approval.

• In February 2016, the cabinet

approved Afghanistan’s accession

package.

• On June 21, 2016, Afghanistan’s

Parliament ratified the WTO package.

• On June 22, 2016, President Ashraf

Ghani signed the instrument of

acceptance of Afghanistan’s protocol

of accession.

• On June 29, 2016, Afghanistan

formally submitted the instrument of

acceptance to the WTO.

• On July 29, 2016, Afghanistan became the WTO’s 164th member.

• On July 29, 2016, Afghanistan notified

the WTO of its ratification of the

WTO Trade Facilitation Agreement.


Following these meetings, ATAR supported MOCI in developing an action plan for

instructing each ministry and state body to undertake priority WTO reforms that

endorsed the plan and disseminated it to ministries. ATAR and MOCI followed up with

the ministries to promote the implementation of action items and provide technical

support.

In January 2016, MOCI submitted the package to the Cabinet of Ministers for approval.

MOCI also provided relevant ministries with a copy of the package for their review. The

accession package was approved in February 2016. In the following months, ATAR

arranged and participated in multiple roundtables with various ministries and

government entities to prioritize and further WTO-related legislative actions.

Finally, on July 29, 2016, Afghanistan became the WTO’s 164th member. On the same

day, in another significant step, the Afghan government ratified the WTO Trade

Facilitation Agreement (TFA) — which presents a framework for promoting regional

reforms to facilitate trade, reduce corruption, improve transparency and private-sector

participation, and strengthen transit rights — and submitted its instrument of

acceptance for the TFA to WTO.

BUILDING AWARENESS AND SUPPORT FOR ACCESSION

ATAR’s WTO awareness-building activities targeted both Afghan government officials — including President

Ghani, the Cabinet, and Parliament — and the general public. For example, to increase support for completing

Afghanistan’s WTO negotiations in the new Afghan administration, ATAR drafted a one-year WTO accession

campaign and public outreach program for MOCI. This included developing presentations on the impact of WTO

accession on Afghanistan and recent new members; the impacts of accession on regional trade and economic

relationships, including trade with Pakistan; and the responsibilities of individual ministries vis-à-vis WTO

commitments. Finally, ATAR supported a series of awareness seminars targeting the Ministry of Justice, MAIL,

MOPH, MOIC, MOF, the Ministry of Foreign Affairs, ACD, ANSA, the Export Promotion Agency of Afghanistan

(EPAA), and others to familiarize stakeholders with WTO agreements, principles, and rules. These seminars also

covered Afghanistan’s status of accession and commitments and the benefits and implications of WTO

membership for Afghanistan’s economic development and integration into the global trading system. Toward the

end of 2016, ATAR partnered with MOCI to broaden the audience of the awareness campaign. ATAR presented

WTO information to 50 students and professors from Kabul University; 15 officials from the media and MOCI,

ACD, and ANSA; and 10 representatives from the private sector. Finally, ATAR supported MOCI with preparing

awareness briefs about the benefits of WTO membership, WTO dispute settlement, and WTO rules and

commitments. This aspect of the project included supporting MOCI in developing comparative graphs that

demonstrated the impact of WTO membership on economic growth and trade, foreign investment, and exports

for 12 least developed countries that are WTO members.

To inform the general public of Afghanistan’s WTO accession, ATAR prepared a two-and-a-half minute video in

English, Dari, and Pashto that incorporated WTO footage taken during Afghanistan’s final Working Party meeting

in Geneva and the WTO’s 10th Ministerial Conference in Nairobi. ATAR also created a 30-second television spot

in Dari and Pashto that aired for several weeks on Tolo and Shamshad, two major Afghan television stations. In

addition, ATAR placed a billboard on WTO accession on the road to Parliament in Kabul.


2. SUPPORTING LEGISLATIVE REFORMS FOR ACCESSION

As part of the WTO accession process, the Afghan government was required to pass an

array of legislation to conform to WTO rules. ATAR provided support on the drafting

and passage of 26 key pieces of legislation, covering every aspect of a modern, vibrant

trading regime — including customs reform, trade facilitation, intellectual property

rights, food safety, veterinary (animal health), and standardization. This effort, led by

relevant ministries at each stage, entailed significant capacity building by ATAR through

on-the-job training, capacity building events, working group meetings, and roundtables

and seminars to review trade-related legislation and to educate the public and private

sectors. The lengthy, complex legislative process is presented in simplified form in

Exhibit 3.2 Throughout, ATAR worked with line ministries and the Ministry of Justice

(MOJ) to ensure officials’ thorough understanding of the laws and to incorporate

revisions that aligned with WTO terms. For those laws that reached the level of Council

2 This chart is a greatly simplified illustration of the intricate and lengthy process of drafting and passing a

law. At certain stages, relevant government bodies and private-sector representatives are invited multiple

times to offer input on the draft law, or the draft law is circulated to various committees or departments

within the sponsoring ministry or Ministry of Justice for review and changes.

Photo: USAID ATAR project

His Excellency Mohammad Khan, first deputy chief executive of the Government of the Islamic

Republic of Afghanistan, and WTO Director-General Roberto Azevêdo shake hands at the 10th

WTO Ministerial Conference in Nairobi, Kenya. At the conference, the WTO Ministerial Council

formally adopted Afghanistan’s accession package.


of Ministers, Cabinet, and Parliament, ATAR supported MOJ in providing explanations,

clarifications, and feedback.

Due in part to

ATAR’s efforts, WTO

trade-related

legislation advanced

rapidly ahead of

Afghanistan’s

accession in July 2016.

By the end of July

2016, Afghanistan had

passed 23 of the 26

pieces of legislation

supported by ATAR. Prior to accession,

three legislative items

remained pending: the

Procedure on

Customs Valuation,

the Law on Consumer

Protection, and the

Income Tax Law.

Post-accession, ATAR continued to promote the adoption of these three items. The

Law on Consumer Protection and the Law on Income Tax were adopted on December

28, 2016 and March 18, 2017, respectively. The Procedure on Customs Valuation awaits

the minister of finance’s signature. Exhibit 4 lists the reforms passed with ATAR’s

support.

EXHIBIT 4. STATUS OF AFGHANISTAN’S WTO LEGISLATIVE ACTION PLAN

ATAR-SUPPORTED LEGISLATION

No. Legislation Status

Customs Valuation Agreement - Rules of Origin

1 Amendments to the 2005 Customs Law On October 25, 2016, the law was published in the

official gazette.

2

Procedure on Customs Valuation (including

interpretative notes and software and interest

charge valuation)

The procedure is pending the signature of the

minister of finance.

3 Procedure on Advance Ruling on Binding Decisions

(covering advance origin rulings)

In July 2015, the Ministry of Finance approved the

procedure.

Technical Barriers to Trade

4 Law on Standards and Technical Regulations On September 20, 2016, the law was published in

the official gazette.

Sanitary and Phytosanitary Measures

5 Law on Plant Protection and Quarantine On January 21, 2017, the law was published in the

official gazette.

5. Presidential endorsement, or, upon president’s rejection,

passage by two-thirds approval of Lower House of Parliament

4. Review and approval by Lower and Upper House of Parliament

3. Review and approval by Council of Ministers and Cabinet

2. Review and approval by Ministry of Justice

1. Draft initiated and approved by sponsoring ministry or

government entity

EXHIBIT 3. AFGHANISTAN’S LEGISLATIVE PROCESS




6 Law on Animal Health On October 11, 2016, the law was published in the

official gazette.

7 Law on Food Safety On September 6, 2016, the law was published in the

official gazette.

Trade-Related Aspects of Intellectual Property Rights (TRIPS)

8

Procedure on Customs Control of Intellectual

Property Rights (Intellectual Property Border

Enforcement)

In April 2014, the minister of finance approved this

procedure.

9

Amendments to the Law on Supporting the Rights

of Inventors and Discoverers of 31 April 2009

(Patents Law)

On September 28, 2016, the law was published in


10 Amendments to the Law on Trademarks of

1 September 2009

On March 16, 2015, the law was published in the

official gazette.

11

Amendments to the Law on Supporting the Right of

Authors, Composers, Artists, and Researchers of

26 July 2008 (Copyrights Law)

On October 15, 2016, the law was published in the

official gazette.

12 Law on Geographical Indications On August 17, 2015, the law was published in the

official gazette.

13 Law on Industrial Designs On August 27, 2016, the law was published in the

official gazette.

14 Draft Amendments to the Commercial Procedure

Code

On September 6, 2016, the law was published in the

official gazette.

15 Law on Protection of Trade and Industry Secrets

(undisclosed information)

On October 22, 2016, the law was published in the

official gazette.

16 Law on Topography of Integrated Circuits On October 22, 2016, the law was published in the

official gazette.

17 Law on Consumer Protection (provisions on Unfair

Competition)

On December 28, 2016, the law was published in


18 Law on Plant Variety Protection On October 11, 2016, the law was published in the

official gazette.

Transparency

19 Amendments to the Law on Publication and

Enforcement of Legislation of 1998

On February 28, 2017, the law was published in the

official gazette.

20 Amendments to the Regulation on Drafting

Procedure and Processing of Legal Acts

In April 13, 2016, the regulation was published in


Quantitative Import Restrictions, including Prohibitions, Quotas and Licensing Systems

21 Law on Foreign Trade in Goods On October 22, 2016, the law was published in the

official gazette.

22 Procedure on Import and Export Licensing In July 2016, MOCI adopted the procedure.

23 Procedure on Customs Storage Fees In February 2016, Afghanistan Customs Department

(ACD) adopted the procedure.

24

Regulations of Production and Importation of

Medicines and Medical Equipment of 24 February

2007 (concerning fees)

On August 27, 2016, the regulations were published

in the official gazette.

25 Income Tax Law (concerning unequal treatment of

import tax)

On March 18, 2017, the law was published in the

official gazette.

Anti-Dumping, Countervailing Duties, and Safeguard Regimes

26 Law on Safeguards Measures for Domestic

Protection

On September 28, 2016, the law was published in


LEGISLATIVE ITEMS NOT PREPARED WITH ATAR'S SUPPORT




27 Value Added Tax (VAT) On April 13, 2016, the law was published in the

official gazette.

28 Law on Minerals On August 16, 2014, the law was published in the

official gazette.

3. SUPPORTING IMPLEMENTATION OF WTO LAWS AND COMMITMENTS

Following accession, ATAR prepared the Afghan government and the private sector for

implementation of the WTO laws, specifically in the areas of intellectual property,

sanitary and phytosanitary measures, customs, and safeguards. ATAR also guided

ministerial officials in developing procedures and regulations as well as preparing for

institutional reforms to implement WTO laws.

3.1 PROCEDURES AND REGULATIONS IN SUPPORT OF WTO LAWS

At the ministerial level, ATAR regularly trained and assisted stakeholders with

developing regulations and procedures to implement WTO-related trade laws. ATAR

drafted the model regulations and procedures and guided the ministerial working group

in reviewing and revising the legislative items to fit Afghanistan’s specific legal framework

and requirements.

Ministries are responsible for sponsoring and adopting procedures that do not proceed

through a further approval process. Regulations move from the sponsoring ministry to

the MOJ and then to the Council of Ministers for final approval. Exhibit 5 illustrates

ATAR’s work with the relevant ministries on regulations and procedures in support of

the WTO-related trade laws.

EXHIBIT 5. ATAR-SUPPORTED REGULATIONS AND PROCEDURES

ATAR-SUPPORTED REGULATIONS AND PROCEDURES

Legislative Item Ministerial Focal

Point Status

Law on Copyrights

• Regulation on the Copyright Board MOIC Approved by the Cabinet of

Ministers on August 24, 2017

Law on Protection of Trade and Industry Secrets

• Regulation on Trade and Industry Secrets MOI Draft finalized at MOCI and submitted to MOJ

Law on Geographical Indications

• Regulation on Geographical Indications MOCI Approved on May 5, 2017

• Procedure on Geographical Indications MOCI Approved on May 5, 2017

Law on Industrial Designs

• Two Procedures on Industrial Designs MOCI Approved May 20, 2017

Law on Food Safety

• Regulation on Control of Veterinary Drug

Residues

Ministry of Public

Health (MOPH)

Draft finalized; MOPH to send to

MOJ

• Procedure in Support of Regulation

on Control of Veterinary Drug Residues MOPH

Draft finalized; submitted for

approval of MOPH minister


ATAR-SUPPORTED REGULATIONS AND PROCEDURES

Legislative Item Ministerial Focal

Point Status

• Regulation on Labeling of Pre-Packaged Food MOPH Draft finalized; MOPH to send to

MOJ

• Regulation on Labeling of Food Additives

Offered for Sale MOPH


MOJ

• Regulation on Pesticide Maximum Residue

Limits MOPH


MOJ

• Procedure in Support of Regulation on

Pesticide Maximum Residue Limits MOPH


approval of MOJ

• Regulation on Labeling of Prepackaged Food MOPH Draft finalized; MOPH to send to

MOJ

• Regulation on Reconditioning of Food MOPH Draft finalized; MOPH to send to

MOJ

• Regulation on Composite Food Safety MOPH Draft finalized; MOPH to send to

MOJ

• 15 Procedures in Support of Composite Food

Safety Regulation MOPH


approval of MOPH minister

• Regulation on the Operation of a National

Food Safety Board MOPH


MOJ

Law on Plant Protection and Quarantine

• Regulation on Plant Protection and Quarantine

Ministry of

Agriculture,

Irrigation and

Livestock (MAIL)

Draft finalized by MOJ Executive

Committee and submitted to the

Council of Ministers for approval

• 20 Procedures in Support of Regulation on

Plant Protection and Quarantine MAIL

Draft finalized and pending MAIL

minister approval

Law on Animal Health

• Regulation on Administration and Organization

of Animal Health Authority MAIL

Draft finalized with Animal

Health Directorate

• Regulation on Animal Health (disease

surveillance, prevention, and control) MAIL

Draft chapter ready for review

by Animal Health Directorate

• Regulation on Import and Export of Animals,

Commodities and Controlled Articles MAIL

Draft finalized with Animal

Health Directorate

• 24 Procedures in Support of Regulation of

Import and Export of Animals, Commodities

and Controlled Articles

MAIL Draft finalized with Animal

Health Directorate

• Regulation on Veterinary Diagnostic

Laboratories and the Food Safety of Primary

Animal Products

MAIL Draft finalized with Animal

Health Directorate

• Regulation on Animal Welfare MAIL Draft chapter ready for review


• Regulation on the Practice of Veterinary

Medicine and Surgery MAIL

Draft chapter ready for review


• Miscellaneous final clauses MAIL Draft chapter ready for review


Law on Safeguards

• Regulation on Safeguards MOCI Draft being reviewed by MOCI

Legal Department

• Procedure in Support of Regulation on

Safeguards MOCI

Draft being reviewed by MOCI

Legal Department


3.2. IMPLEMENTATION OF KEY WTO-RELATED LAWS

In addition to assisting with the development of regulations and procedures to support

the gamut of laws adopted as part of the WTO accession process, ATAR provided

specific support to three areas: intellectual property rights, sanitary and phyto-sanitary

measures, and safeguards and countervailing duties. This included supporting

institutional reforms within the Afghan government and educating private-sector

stakeholders about their rights and responsibilities under the new laws. (Note that

customs-related support is described under Component 3.)

3.2.A. INTELLECTUAL PROPERTY RIGHTS

The WTO Trade-Related Intellectual Property Rights (TRIPS) Agreement requires that

WTO members protect intellectual property rights. By bringing laws on intellectual

property up to the standards embodied by the WTO and international agreements,

Afghanistan protects innovators in the country from infringements on trademarks,

patents, copyrights, and geographical indications.

Laws on Trademarks, Patents, Copyrights, and Geographic Indicators

ATAR promoted the process of trademark registration in Afghanistan, following WTO

considerations, intellectual property conventions, and international best practices. In

support of the implementation of the Law on Trademarks, ATAR provided on-the-job

training for MOCI’s Afghanistan Commercial Business Registry for Intellectual Property

(ACBR-IP) in performing trademark functions, including examination, classification, and

trademarks registration. ATAR delivered formal trademark training for ACBR-IP staff

and prepared a guiding document on the automated trademark registry, including the

structure and functions of the database and an operational manual, and assisted ACBR-

IP in developing awareness materials for trademark registration. There are now 18,000

registered trademarks in the MOCI database. In support of implementation of the Law

on Patents, ATAR trained ACBR-IP staff private-sector stakeholders on patents

examination, awareness, and registration. ATAR also provided ACBR-IP with a concept

note on electronic registration of patents and awareness materials on patents.

To foster awareness of the Law on Copyrights, ATAR assisted ACBR-IP with developing

informational materials, including pamphlets that explained copyrights. ATAR also

conducted copyright awareness training in partnership with the MOIC for publishers,

professors, academics, and other government officials. With ATAR’s support and

guidance, MOIC, the Afghanistan Customs Department (ACD), the Ministry of Interior,

and Attorney General’s Office agreed to improve coordination for more effective

enforcement of the Law on Copyrights. ATAR assisted MOIC with finalizing a draft

memorandum of understanding, outlining the duty of each relevant agency in enforcing

the copyright law, to be signed among these entities. ATAR also assisted MOIC’s

copyright office with preparing two forms for copyright registration — one for literary

and scientific works and the other for artistic works. MOIC approved both forms, and

MOIC is expected to start the optional registration of copyrighted works in 2018.

In support of the Law on Geographical Indications, ATAR trained ACBR-IP staff on geographical indications and registrar rules and provided private-sector members with


awareness training seminars on geographical indications. As with previous laws, ATAR

supported the development of awareness materials and assisted ACBR-IP with preparing

a document on the organization of the Registrar of Geographical Indications.

Intellectual Property Conventions

As part of WTO membership, Afghanistan is expected to be a party to intellectual

property conventions, including the Berne Convention for the Protection of Literary

and Artistic Works, the Paris Convention for the Protection of Industrial Property, the

Madrid Agreement Concerning the International Registration of Marks, and the

Singapore Treaty on the Law of Trademarks. The World Intellectual Property

Organization (WIPO) administers these conventions. By the end of the project,

Afghanistan had become a member of the Berne Convention, the Paris Convention, the

Madrid Agreement, and the Singapore Treaty. ATAR also began supporting MOIC to

accede to two intellectual property conventions: the WIPO Copyright Treaty and the

WIPO Performances and Phonograms Treaty. MOIC established a committee to review

the treaties. By the end of the project, the committee was working on a preliminary

review of the translations of the WIPO Performances and Phonograms Treaty.

Afghanistan Central Business Registry-Intellectual Property

In a major step toward facilitating business in Afghanistan, the licensing department of

Afghanistan Investment Support Agency (AISA) merged with MOCI’s ACBR-IP in

September 2016 thanks to ATAR support. ATAR worked with taxation authorities to

identify businesses that had not renewed their licenses in the last five years. The project

identified an estimated 95,000 businesses and flagged them in the ACBR-IP system.

ATAR also worked on a new web-based trademark registration system in accordance

with best practices and developed a web-based trademarks registration system for

ACBR-IP. ATAR assisted with developing procedures for trademark registration and

supported ACBR-IP and MOCI in assessing $2 million worth of hardware to be

purchased by World Bank for intellectual property and licensing services.

3.2.B. SANITARY AND PHYTOSANITARY (SPS) MEASURES

The WTO’s Sanitary and Phytosanitary Measures Agreement sets the basic rules for

food safety and animal and plant health regulations. ATAR worked with Afghan officials

to advance three key SPS laws: the Law on Food Safety, the Law on Animal Health and

Veterinary Public Health, and the Law on Plant Protection and Quarantine. ATAR

helped the Ministry of Public Health (MOPH) and the Ministry of Agriculture, Irrigation

and Livestock (MAIL) to establish working groups and build their capacity to advance

these legislative reforms and ensure that stakeholders’ understand the guidelines of the

WTO’s three sister sanitary and phytosanitary (SPS) organizations: the Codex

Alimentarius Commission, focused on food safety and quality; the World Organization

for Animal Health (OIE), focused on animal health; and the International Plant

Protection Convention (IPPC), focused on plant health. In addition, ATAR strengthened

the capacity of government laboratories with SPS-related mandates to prepare them for

international certification.


Law on Food Safety

To support implementation of the Law on Food Safety, ATAR performed a needs

assessment that described the necessary actions to establish a Food Safety Control

Authority in MOPH, the organizational structure of such an authority, its units, and their

functions. The assessment served as a general guide to MOPH as it began to create the

authority. ATAR further supported working groups on its establishment.

To supplement its efforts on the Law on Food Safety, ATAR trained MOPH staff on the

Hazard Analysis Critical Control Points (HACCP), a management system in which food

safety is addressed through the analysis and control of biological, chemical, and physical

hazards from raw material production to product consumption. ATAR also trained

MOPH staff on general principles of food hygiene as well as the development of

equivalence agreements regarding food imports and export inspection and certification

systems. Equivalence is an important WTO concept and is designed to simplify trade by

having WTO members accept, where feasible, the technical regulations and conformity

assessment procedures of other trading partners.

Law on Animal Health

ATAR supported MAIL’s Animal Health Directorate in conducting roundtables,

seminars, and training sessions to educate stakeholders on the Law on Animal Health

and Veterinary Public Health; risk analysis and sanitary measures for imported animals

and animal products; and administrative procedures for the veterinary authority, disease

surveillance, and disease prevention and control. ATAR also facilitated a three-day

training for 22 veterinary inspectors from Kabul and the provinces on the WTO’s

Sanitary and Phytosanitary Agreement, the Law on Animal Health, and procedures that

support the Regulation on Import and Export of Animals, Commodities, and Controlled

Articles. Finally, ATAR drafted and submitted to MAIL a 60-page set of guidelines for

establishing and operating small- and medium-scale poultry slaughter facilities.

Law on Plant Protection and Quarantine

ATAR conducted training for MAIL’s Plant Protection and Quarantine Department

(PPQD) on conducting pest risk assessments (PRAs) to support the implementation of

the Law on Plant Protection and Quarantine. PRAs help to identify risks in imported

commodities, thereby guarding against the accidental import of pests harmful to

Afghanistan's agriculture. With ATAR’s assistance, the PPQD developed a final list of

regulated pests during an on-the-job training session. ATAR also drafted an institutional

proposal accepted by the PPQD for establishing three PRA units that support the Law

on Plant Protection and Quarantine. In addition, ATAR worked with the PPQD to

revise standard operating procedures for Afghanistan’s quarantine system in accordance

with standards recommended by the IPPC.

Government Laboratories

ATAR worked with the MOPH Food Safety Laboratory and the MAIL Veterinary

Laboratory to prepare them for eventual International Organization for Standardization

(ISO) 17025 certification, which focuses on the certification of testing and calibration

laboratories. In support of this effort, ATAR prepared a 108-page audit questionnaire


for the ministries based on an ISO checklist and translated the document into Dari. The

audit, which is an ISO 17025 requirement, will guide the laboratories through a practice

audit that will help staff identify and resolve deficiencies. ATAR held workshops with lab

staff to demonstrate how to conduct an audit and properly record results. In addition,

ATAR assessed MAIL’s veterinary laboratories and MOPH’s food and pharmaceutical

testing laboratories to help prepare the labs for future accreditation with ISO. ATAR’s

assessment covered lab infrastructure, including working space, power, plumbing,

storage, ventilation, and safety; equipment, including available equipment and equipment

needs; standard operating procedures; and proposed organizational charts with current

and recommended personnel.

3.2.C. ANTI-DUMPING, COUNTERVAILING DUTIES, AND SAFEGUARD

REGIMES

While the WTO offers tremendous opportunities for market access, WTO rules still

allow countries to protect their market in exceptional cases. ATAR worked to build the

government of Afghanistan’s capacity to develop WTO-compliant legislation, including

supporting the establishment of a dedicated safeguards unit within MOCI.

Law on Safeguards

The safeguards law allows Afghanistan to impose temporary protection of its market if a

sudden surge of imports of a product causes serious injury (or an imminent threat of

such injury) to a domestic industry. The WTO requires that safeguards cases be

conducted in strict conformity with rules laid down in the WTO Safeguards Agreement.

Afghanistan has no experience in administering safeguards and no institutions in place to

conduct safeguards investigations or prepare and handle safeguards cases. ATAR trained

MOCI’s WTO Unit, ministerial representatives, and the private sector on how to use

safeguard measures to protect the domestic industry against international import

competition. ATAR assisted MOCI to create safeguard investigative procedures, model

forms, and templates for each stage of safeguards proceedings, such as a safeguards

complaint form, investigative questionnaires, disclosure forms, and non-confidential

summary templates.

To ensure long-term support to safeguards, ATAR also provided a strategy paper on the

establishment of a safeguards unit within MOCI to administer the safeguards law once

adopted. The unit will oversee applying the rights and limits of the WTO Safeguards

Agreement. The paper details administrative and office needs, structure, staff as well as

the job and qualification descriptions for each position. The Afghan Civil Service

approved the establishment of this unit, and MOCI is hiring staff.

Laws on Anti-Dumping and Countervailing Duties

In coordination with MOCI, ATAR drafted and translated a model anti-dumping law and

a countervailing law to facilitate Afghanistan’s drafting of national laws to protect its

industries against unfair international trade policies. ATAR assisted with forming and

guiding a legal drafting working group to write national legislation based on the model

laws and delivered relevant training. MOCI shared the drafts with President Ghani,

whose advisor introduced several amendments. ATAR reviewed the proposed


amendments and found that many were not compliant with the WTO and notified

MOCI of the inconsistencies by the end of the project.

3.3. BUILDING GOVERNMENT CAPACITY FOR WTO-RELATED FUNCTIONS

Post-accession is equally, if not more, challenging than accession. Throughout

implementation, ATAR worked with MOCI, its WTO Unit, and other relevant

ministries and agencies to build their capacity to not only accede to the WTO but also

to carry out their post-accession responsibilities.

3.3.A. THE WTO UNIT

The WTO Unit under MOCI monitors and advises the Afghanistan government on

implementing its WTO commitments, assisting with communications and notifications to

the WTO, monitoring compliance of other WTO members, and asserting Afghanistan’s

rights when needed. Throughout implementation, ATAR supported the WTO Unit to

fulfill its functions and to transition from accession preparation to managing its post-

accession functions.

WTO Notifications

The primary instrument for ensuring transparency in the multilateral trading system is

through the filing of notifications made by each WTO member and reviewed by the

relevant bodies of the WTO. WTO agreements require governments to notify other

members, through the WTO Secretariat, of changes in the member country’s foreign

trade regime and proposed measures that may have a significant effect on other

members’ trade and that are

not based on relevant

international standards.

MOCI submitted 12 of 13

notifications required as of the

accession date to the WTO

and two additional notifications

(see box). ATAR provided

guidance on compiling the

information, building on WTO

Secretariat guidelines and

analysis of notifications

prepared by other WTO

members. ATAR, in

partnership with MOCI,

organized training for public-

and private-sector members on

WTO notifications.

The remaining 13th notification

regards changes to duties, taxes, fees, and charges applied

ATAR-Supported WTO Notifications

With ATAR support, MOCI and other relevant ministries

prepared 13 notifications as requested in the WTO accession

package and due on the date of Afghanistan’s WTO accession.

ATAR also supported a 14th notification on agricultural subsidies

that was not required on the date of accession but that

Afghanistan submitted at an earlier-than-expected date.

These notifications included:

1) Notification of state trading enterprises

2) Notification on import licensing procedures

3) Notification on quantitative restriction 4) Notification on rules of origin of Afghanistan

5) Notification of Law on Safeguards

6) Any changes from November 2015 through May 2016 to

duties, taxes, fees, and charges applied to exports from what was

in Afghanistan’s Draft Working Party report

7) New industrial subsidies to be notified pursuant to Article 25

of the WTO Subsidies and Countervailing Measures (reported

before as having none)

8) Notification of existing technical regulations

9) General Agreements on Trade in Services enquiry point

10) Notification of work on standardization activities

11) Notification of existing sanitary and phytosanitary measures

12) Notification of any preferential trade agreements

13) Any updates to the Working Party section on privatization

14) Information to be provided on domestic support and export

subsidies


to exports from Afghanistan’s Draft Working Party report. Afghanistan will submit this

notification once it publishes a new schedule of duties in line with its WTO

commitment. To this end, ATAR prepared several scenarios for the Ministry of Finance

and ACD detailing the expected impact of WTO obligations to decrease tariff rates on

certain goods (657 tariff lines). ATAR also prepared scenarios detailing the impact of

potential increased tariff rates to compensate for revenue loss from lowered tariffs on

other goods. ATAR proposed about 1,700 tariff lines for increasing tariff rates. With

ATAR’s support, in October 2016, the Tariff Committee agreed on the new tariff

schedules for import and export duties. Upon the minister of finance’s approval, which

was still pending at the end of ATAR, Afghanistan will publish this new tariff schedule on

official websites and notify the WTO.

WTO Post-Accession Strategy

In September 2016, ATAR assisted with developing a draft post-accession strategy

framework for ministries to discuss and a needs assessment for establishing the Afghan

WTO Representative Office in Geneva. Additionally, ATAR assisted with preparing a

draft resolution for establishing an inter-ministerial trade facilitation commission to

implement the WTO TFA’s Article 3, which concerns a National Trade Facilitation

Committee (NTFC). ATAR also proposed a new structure and staffing for the WTO

Unit to handle post-accession matters, including notifications, market access, dispute

settlement, compliance, coordination, and public relations.

After President Ghani established the WTO Inter-Ministerial Committee in December

2016, it held its first meeting on January 3, 2017, which MOCI organized with support

from ATAR. Meeting attendees discussed fulfilling WTO commitments. After considering comments and recommendations from various ministries, Afghanistan

finalized its WTO post-accession strategy and the High Economic Council approved the

strategy in principle on February 12, 2017. Subsequently, MOCI prepared a consolidated

action plan outlining the ministries’ requirements to implement the strategy.

WTO Trade Facilitation Agreement

ATAR coordinated with the International Trade Centre (ITC) to update and finalize a

WTO TFA compliance assessment to use it as the basis for an action plan and

notifications to the WTO. As a signatory to the WTO TFA, Afghanistan is required to

notify the WTO on certain categories: Category A are TFA provisions with which Afghanistan is already compliant; Category B are TFA provisions with which Afghanistan

is not compliant but can implement on its own; and Category C are TFA provisions with

which Afghanistan is not compliant but requires technical assistance and financial

support from WTO members.

With ATAR support, the WTO Inter-Ministerial Technical Committee and the WTO

Inter-Ministerial Committee met in July 2017 to discuss the WTO TFA and to compile

the country’s notification of commitments under the agreement. More than 20

representatives from entities such as the MOCI, MOPH, ACD, Afghanistan National

Standards Authority (ANSA), and Afghanistan Chamber of Commerce and Industry

(ACCI) reviewed the TFA rules and discussed their implementation. Participants placed


21 rules in Category A, 21 in Category B, and 12 in Category C. The Afghan

government has additional time to implement Category B commitments and can request

support and capacity building for Category C commitments. The technical committee

presented the categorization to the WTO Inter-Ministerial Committee, which provided

its endorsement. MOCI will finalize the notification of the categories and send them to

the WTO Secretariat by February 2018.

Enquiry and Notification Points

As part of its accession to the WTO, Afghanistan was obliged to establish national

notification and enquiry points that will enable the country to notify WTO members of

changes in technical barriers to trade (TBT) and SPS measures and to respond to

requests for information on such measures. To support this effort, ATAR prepared and

shared with MOCI WTO-related institutional recommendations for establishing an

enquiry point on services. ATAR’s recommendations covered organizational structure,

staffing, functions, general procedures, and information technology needs for the enquiry

point. In 2014, ATAR supported ANSA in drafting a procedure for coordination and

cooperation between ANSA and other government entities to enable the country to

notify WTO members of changes in measures related to TBT and to respond to

questions from WTO members on Afghan standards, technical regulations, and

conformity assessment procedures. For SPS, ATAR assisted MAIL with designing the

organizational structure for a single SPS enquiry and notification point to inform WTO

members of changes in SPS measures and to respond to requests for information on

such measures. MAIL and MOPH will support the enquiry and notification of all SPS

measures. To support coordination, ATAR drafted a memorandum of understanding,

which MOCI and MOPH signed in October 2016 and MAIL signed in November 2016.

At the third WTO Inter-Ministerial Technical Committee at MOCI in April 2017, ATAR

prepared a concept note detailing the obligations of Afghanistan regarding enquiry points

in the four areas where WTO agreements require members to set up such entities (i.e.,

TBT, SPS, trade in services, and trade facilitation). This includes the interaction between

MOCI and the existing TBT and SPS enquiry points set up at ANSA and MAIL, and the

coordinating role of a national enquiry and notification point to streamline the

preparation and submission of WTO notifications. ATAR presented the WTO

Notifications Manual and explained how to prepare notifications with the use of relevant

formats. The presentations covered the following areas: quantitative restrictions, import

licensing procedures, state trading enterprises, rules of origin, regional trade

agreements, anti-dumping, safeguards, subsidies and countervailing measures, trade in

services, intellectual property, TBT, SPS measures, and privatization. ATAR also

presented a calendar listing the timeframe of Afghanistan’s notifications for the 2017 to

2020 period covering all regular notifications in the areas listed above, as well as the

actions that would trigger ad hoc notifications (e.g., the adoption of a new anti-dumping

law). In addition to explaining the content and formats of the different notifications, the

training highlighted the importance of coordination and cooperation among relevant

ministries and agencies under MOCI’s guidance for the collection of the necessary

information and preparation of the notifications.


3.3.B. AFGHAN NATIONAL STANDARDS AUTHORITY

A lack of technical capacity and laboratory facilities capable of testing and certifying

Afghan products in accordance with international standards prevents Afghanistan from

expanding into regional markets. Modernizing and building standards and certification

capacity is crucial for increasing export opportunities and for Afghanistan’s

development. In support of this effort, ATAR worked with ANSA, which is the key

player in developing and implementing standards, to ensure quality goods were

exported from and imported into Afghanistan.

ISO Membership

With the support of TAFA and subsequently ATAR, ANSA became a full-fledged

member of ISO in July 2014. As a new ISO member, Afghanistan gained access to

standards agreed upon by ISO member countries, which represent 90 percent of the

world’s gross national income. ISO standards are recognized worldwide and are so vital

to facilitating global trade that the WTO uses them to set rules among its members.

ATAR also assisted ANSA with establishing five ISO “mirror” committees that will

develop national sector-specific standards based on ISO principles. The mirror

committees were established in the following sectors: petroleum products and

lubricants; food products; textiles; gas cylinders; and concrete, reinforced concrete, and

pre-stressed concrete.

In October 2016, with ATAR support, ANSA submitted its notification of acceptance of

the “Code of Good Practice for the Preparation, Adoption and Application of

Standards” to the joint ISO/ International Electrotechnical Commission Information

Centre. The code is presented in Annex 3 of the WTO’s TBT Agreement and requires

all standardizing bodies that have accepted its terms to publish their work programs at

least once every six months. This code will bring more transparency to Afghan

standards.

Certification

ATAR assisted ANSA with developing a map for establishing a certification unit and with

forming procedures, standard guidelines, and certification schemes. ATAR also

supported ANSA in developing fee procedures and structures for the unit and in

creating a conformity assessment mark. Additionally, ATAR assisted ANSA with

translating relevant ISO manuals and guides for conformity assessment and with

developing conformity assessment documentation based on ISO guidelines. ATAR also

trained ANSA staff on conformity assessment and certification as well as provided

recommendations on training auditors and leading audits.

ATAR’s capacity building through training extended beyond ANSA, as the project held

training sessions for MAIL and MOPH staff on conducting internal audits, recognizing

operational gaps, and becoming acquainted with necessary standard operating

procedures and other essential ISO requirements. ATAR developed the standard

operating procedures along with all the necessary tools to collect data and help

laboratory staff identify challenges and implement solutions.


Training and Information Center

In 2014, ATAR supported ANSA to establish a standards training and information

center with the role of building the capacity and awareness of ministries, state bodies,

and the private sector about standardization and certification. ATAR assisted ANSA

with developing a syllabus and training materials and with revising existing training

material for the planned center. Topics included the code of good practice for

development, preparation, and adoption of standards; quality infrastructure for

standardization and conformity assessment; conformity assessment principles; product

certification; management system certification; food management system certification

and procedures; and requirements and procedures for testing laboratories. In addition,

ATAR delivered five seminars to build the capacity of potential trainers and facilitated

participation in a training program in India for two ANSA staff. ATAR also supported

ANSA in its acquisition of 31 international standards.

Laboratory Analysis

ATAR drafted a gap analysis for a food testing laboratory with ANSA. This comprised a

budget and a list of urgent laboratory needs, including the most necessary infrastructure

fixes, essential equipment and supplies, and staff training. ATAR also prepared a

comprehensive list of long-term infrastructure, equipment and supplies, and staff training

requirements.

ATAR also shared a work plan for the ANSA food testing facility that included major

milestones in the ISO accreditation process. The work plan provided organizational

charts for ANSA and the food laboratory, including job descriptions and requirements;

document control for writing and updating standard operating procedures; a description

of how lab work may be subcontracted to other laboratories within Afghanistan or

abroad; and plans for different types of training that may be provided by the food

laboratory. ATAR also drafted standard operating procedures based on international

standards for specific product tests as well as procedures for a quality manual in

accordance with ISO. This documentation is necessary for ISO accreditation of the

laboratory.

At the request of ANSA, ATAR completed a needs assessment for establishing a

National Metrology Institute in Afghanistan in 2015 and prepared a draft model law on

legal metrology that covered legal units of measurement. ATAR shared the package with ANSA for consideration and encouraged the formation of a working group to draft

Afghan legislation based on the model law.

3.3.C. TRADE POLICY ANALYSIS UNIT

MOCI’s Trade Policy Analysis Unit (TPAU) aims to support the deepening and

broadening of Afghanistan’s regional integration as well as the formulation of sound

trade policy through analysis of trade data, such as imports and exports. ATAR assisted

and guided TPAU to prepare an annual trade and tariff policy analysis for 2014 and 2015.

The analysis contained a description of the economic situation, trade with other

countries, and nearly 50 tables with information about imports, exports, and transit by


country and product. ATAR supported TPAU in updating MOCI’s database covering the

first half of 2016.

This on-the-job training was complemented by

practical exercises in developing economic

models, as well as 30 interactive lectures on

economic theory, application of trade-related

economic policies, and the impact of sound

policies on economic development. At the end of

each lecture, participants examined case studies

as a practical application of economic policy. To

build further capacity in policy analysis, ATAR

trained TPAU and other MOCI departments that

oversee bilateral and regional trade agreements

to analyze sensitive products and reduce the South Asian Free Trade Area (SAFTA) agreement

sensitive list. Sensitive lists are products of special

interest to SAFTA member countries and are

exempt from low SAFTA tariffs (see Component

2, for further information). ATAR assisted the

TPAU with involving students from Kabul

University, Kardan University, Bakhter University,

and Dunya University as well as the Regional

Strategic Study Center think tank in TPAU’s work. With TPAU, ATAR held 10 trade

policy analysis seminars targeting the four universities, including select professors and

students, and six trade policy review seminars for the Regional Strategic Study Center.

ATAR helped TPAU with designing a general equilibrium model based on an input and

output table for Afghanistan and combining three partial equilibrium models. ATAR

provided training and presentations for the government, students, and the private sector

to demonstrate how they can use economic models to estimate the impact of WTO

accession on Afghanistan’s economy. Other policy research and analysis were provided

by TPAU in support of the GIRoA efforts include analyzing agricultural and industrial

production for the purpose of tariff policy evaluation; analysis of tariff schedules and

tariff rates of neighboring countries; and analyzing the correlation between trade, tariff

and revenue collected by ACD with customs duties and other taxes.

3.3.D. CENTRAL STATISTICS ORGANIZATION

To provide Afghanistan with reliable trade-related data for policy formulation and the

private sector with reliable statistics for making sound business decisions, ATAR

supported ACD and the Central Statistics Organization (CSO) to harmonize trade-

related data between the two organizations. With guidance and support from ATAR,

ACD and CSO signed a memorandum of understanding in March 2014 to promote

cooperation in import and export statistics for Afghanistan. According to the

memorandum, CSO will receive information on import and export statistics from ACD

monthly (within two weeks after the end of each month) and will process this

SIMULATION RESULTS FROM

ATAR-SUPPORTED ECONOMIC

MODELS

Simulation results showed Afghanistan’s

overall economy should strengthen from

WTO accession. The estimated impact of

WTO accession is summarized below.

• Exports will increase by $65 million to

countries not belonging to the South

Asian Free Trade Area within the

next three to five years.

• WTO accession will lead to additional

growth of 1.5 percent in gross

domestic product within the next

three to five years.

• Fiscal revenue resulting from imports

will slightly decline, but introducing

new tariffs on some other goods will compensate for possible revenue loss.

• Employment in export industries is

expected to grow by 10 percent (not

including a multiplier effect) in the

next three to five years.


information in accordance with its reporting structure. ATAR provided two computers

and one scanner to CSO to handle ACD data and trained CSO staff on ACD’s data

structure.

This initiative was complemented by ATAR-sponsored roundtables to identify the

causes of data discrepancies and by training to reduce them. Discrepancies in trade

statistics during the project’s first year were reduced from roughly 30 percent to

roughly 15 percent. ATAR also provided ACD staff with on-the-job training in

identifying the top 200 revenue-generating products for inclusion in the customs

valuation database, including products with seasonal effects on revenue. Training

participants also studied revenue gaps for four products (sugar, cooking oil, apples, and

cement). In addition, ATAR, with the participation of a CSO representative, delivered

six seminars to the MAIL statistics team on the introduction of statistics methods.


COMPONENT 2: FACILITATE

ENHANCED ACCESS

TO REGIONAL MARKETS

By supporting Afghanistan’s accession to the WTO through Component 1, ATAR

sought to increase the country’s integration into the global economy. Under

Component 2, ATAR worked to increase regional integration through trade

agreements, enhanced economic corridors governance, reformed customs clearance

procedures, and strengthen private sector linkages throughout South and Central Asia.

To this end, the project worked both at the regional level and on country-specific initiatives to increase trade flows.

1. CROSS-CUTTING ACTIVITIES TO ENHANCE REGIONAL TRADE

The need for greater regional cooperation is critical for Afghanistan’s future. To achieve

this objective, ATAR implemented numerous pan-regional activities to strengthen trade

agreements, facilitate Afghan exports, and create linkages between businesses.

1.1. GLOBAL TRADE AND TRANSIT AGREEMENTS

To help create a stable and transparent trading environment, ATAR assisted Afghanistan

and other Central Asian governments to meet international standards in trade, customs,

and transit.

WTO Trade Facilitation Agreement

Afghanistan ratified the WTO TFA immediately upon acceding to the WTO in July 2016.

The TFA presents a framework for promoting regional reforms to facilitate trade,

reduce corruption, improve transparency and private-sector participation, and

strengthen transit rights. By cutting red tape and harmonizing processes and standards,

the TFA is expected to reduce the costs of trade by 14.3 percent on average, with less

developed countries expected to achieve even greater savings. For this reason, ATAR

worked with the two other WTO member states under purview — the Kyrgyz

Republic and Tajikistan — to promote the ratification of the TFA and their adoption of

its provisions. The TFA entered into force in February 2017, following ratification by

two-thirds of the WTO’s member states, including Afghanistan and the Kyrgyz Republic.

In the Kyrgyz Republic, ATAR worked along multiple fronts to promote the ratification

of the WTO TFA, and on December 6, 2016, Kyrgyz Republic’s ambassador to the

WTO submitted the country’s instrument of acceptance to the WTO’s director

general. To reach this milestone, the Kyrgyz Ministry of Economy established a Trade

Facilitation working group with ATAR support. The working group held its first WTO

TFA working group meeting in July 2015. To facilitate the ratification of the WTO TFA, ATAR assisted with translating the WTO TFA into Kyrgyz and Russian. The project sent


translations to the TFA working group and the Ministry of Economy, and the agreement

was placed on a Kyrgyz trade information website (http://www.trade.kg). In late 2015,

the TFA working group presented an action plan, prepared with ATAR’s support, to the

Ministry of Economy. The ministry presented the plan to Parliament and requested

ATAR’s assistance in conducting a regulatory reform impact analysis, necessary for

Kyrgyz Republic’s ratification of the TFA, which ATAR completed and translated into

Russian and Kyrgyz.

On November 22, 2016, the Kyrgyz president signed the ratification of the WTO TFA.

Following ratification, ATAR participated in the WTO TFA working group to draft the

WTO TFA Action Plan. ATAR included several points on creating an Authorized

Economic Operator (AEO) program, a key provision of the TFA, and helped to address

disagreements between state bodies and the private sector. After line ministries

approved the action plan, the working group sent the final version for governmental

approval. In addition, the working group completed drafting the Regulation on National Committee on Trade Facilitation (NCTF). Establishing an NCTF to facilitate domestic

coordination among agencies and to implement the TFA is a binding obligation under

the agreement.

In Tajikistan, ATAR worked with the Ministry of Economic Development and Trade

(MEDT) and donors on the draft terms of reference for the establishment of the

Coordinating Committee for Trade Facilitation (CCTF), which will perform the required

WTO TFA functions; a draft legal action plan for the WTO TFA; and a draft action plan

for Revised Kyoto Convention (RKC) compliance. In July 2016, ATAR held a workshop

with MEDT, Tajik customs, other government agencies, private-sector members, and

donors to discuss the objectives and structure for the CCTF, which must be established

to fulfill the WTO TFA.

ATAR held a follow-up workshop in August 2016 to draft rules to attract participation

of enterprises and organizations related to foreign trade and services in the work of

CCTF as well as to propose rotation to ensure representation of sectoral priorities. In

October 2016, ATAR partnered with the International Finance Corporation, Deutsche

Gesellschaft für Internationale Zusammenarbeit (GIZ), and the National Association of

Business Women of Tajikistan on a roundtable in Khujand. The meeting enabled

discussion of CCTF objectives and structure, participation of enterprises and

organizations in the work of CCTF, and the rules of rotation.

WCO Revised Kyoto Convention

The World Customs Organization (WCO) Council adopted the RKC as the blueprint

for modern and efficient customs procedures in the 21st century. The RKC entered

into force in February 2006, and, once implemented widely, it will provide international

commerce with the predictability and efficiency that modern trade requires. The RKC

elaborates several key principles, including transparency and predictability of customs

actions, standardization and simplification of the goods declaration and supporting

documents, simplified procedures for authorized persons, maximum use of information

technology, minimum necessary customs control to ensure compliance with regulations,


use of risk management and audit-based controls, and coordinated interventions with

other border agencies There are currently 111 contracting parties to the WCO RKC,

although none of the countries that ATAR worked in have ratified the convention.

Afghanistan hopes to ratify the RKC by June 2018, and ATAR has provided support in

multiple areas to help it reach that goal. The project developed a gap analysis and

strategic plan for accession that was presented to the minister of finance and President

Ghani in July 2017. At the advice of the project, ACD’s director general decided to

establish a formal RKC working group, which started the initial work on the RKC

accession preparation process. Because Afghanistan’s current customs legislation is not

fully compliant with the RKC, ATAR also supported drafting a new law on customs that

would be 100 percent compliant with the RKC and structured in accordance with

international best practices and provide clear guidance to traders and customs officials.

The draft of the new customs law was completed and given to the ACD in November

2017.

In the Kyrgyz Republic, ATAR supported an assessment of the country’s laws and

procedures against the WCO RKC. In 2016, ATAR translated the national Kyrgyz

Customs Code and related customs regulations into English and analyzed Kyrgyz

customs documents to determine if they aligned with the RKC. After the assessment

was completed and translated into Russian, ATAR submitted it to authorities and

promoted resolution of some of the key trade facilitation issues falling within ATAR’s

scope, such as those related to risk management and post-clearance audit. In April 2017,

ATAR participated in a RKC conference held by Asian Development Bank with the

participation of the Ministry of Economy and customs department. The participants

stressed the importance of the RKC for the Kyrgyz Republic and determined the

necessary steps to join the convention.

Tajikistan reconfirmed its commitment to ratify the WCO RKC in October 2015. To do

so would require Tajikistan to improve its customs procedures to achieve compliance.

ATAR conducted several activities with Tajik customs to achieve compliance in risk

management and post clearance audit (PCA) functions, development and awareness of

an AEO concept with customs and the private sector, and a review of the operations

support system model implemented at the border crossing posts. Further details on

ATAR’s work in these areas are provided in Section 2.3 below.

In Turkmenistan, ATAR analyzed the customs code of Turkmenistan for conformity

with WCO RKC and customs-relevant WTO agreements, including the General

Agreement on Tariffs and Trade 1994, customs valuation, and rules of origin in 2014.

Based on available information, ATAR also performed a preliminary conformity

assessment of Turkmenistan’s foreign trade regime with the WTO TFA.

ATAR translated the two assessments and shared the Russian versions with

USAID/Turkmenistan. With the support of ATAR, USAID submitted a cover letter

transmitting the analyses to the Ministry of Foreign Affairs of Turkmenistan with an offer


of further assistance to the State Turkmen Customs Service to help it align with the

RKC and WTO customs-related agreements.

Transports Internationaux Routiers Convention

The Convention on International Transport of Goods Under Cover of TIR Carnets (TIR

Convention Transport Internationaux Routiers) is a multilateral treaty designed to

simplify the movement of cargo across borders of member states. Afghanistan, the

Kyrgyz Republic, Tajikistan, and Turkmenistan are all contracting parties to the TIR

convention. Furthermore, ATAR promoted TIR in Pakistan and India and the two

countries became contracting parties to the TIR convention in 2016 and 2017,

respectively. Throughout implementation, ATAR worked to increase understanding and

use of the TIR system, including the TIR carnet, which is a transit document used to

prove the existence of the international guarantee for duties and taxes for goods

transported under the system.

Although Afghanistan became a TIR member in 1975, multiple regime changes and

decades of conflict have prevented its implementation. In September 2013, TIR was

reactivated in Afghanistan. To promote greater awareness of the TIR system in

Afghanistan, ATAR held a National TIR Seminar in 2014, multiple workshops throughout

2015 and 2016, and a National TIR Conference in 2017. These events were attended by

hundreds of participants, including representatives from Ministry of Transportation and

Civil Aviation (MOTCA), ACD, ACCI, the Ministry of Foreign Affairs (MOFA), the

Association of Afghanistan Freight Forwarders Companies, and Afghanistan’s traffic

police, border police, exporters, transport operators, and logistics representatives.

Topics included the TIR system, green lanes/express lanes for TIR operators, benefits to transport operators, and the TIR carnet application procedure, specifically how TIR can

simplify international shipments to Central Asia. ATAR distributed copies of the TIR

Handbook for Drivers, which the project developed and translated into Dari during

many of these events.

With the Afghan government, ATAR worked with the National TIR Technical

Committee to finalize a TIR regulation, which includes duties and responsibilities of each

TIR line organization, such as ACD, MOTCA, and border police, and the TIR National

and Technical Committees. The TIR regulation was approved in December 2016.

As customs plays an important role in verifying TIR documents, ATAR evaluated ACD’s

workflow and information systems to determine its integration and compliance with

TIR. In 2015, ACD finalized its TIR procedure with ATAR’s support. The procedure

included a TIR glossary and duties and responsibilities of departure, en route, and

destination customs houses. With the director of operations and ACD’s legal

department, ATAR revised TIR Customs Transit Procedure to align with the WTO TFA

and RKC. In January 2017, ATAR reviewed and finalized the TIR Procedure. In addition,

ATAR assisted the ACD with developing the Dari version of the TIR carnet guidelines,

which was finalized and sent to ACD’s director of operations.


To help facilitate trade between Afghanistan and South Asia, ATAR supported India and

Pakistan’s efforts to accede to the TIR Convention. In November 2014, ATAR

supported the International Road Transport Union (IRU) TIR National Workshops in

Karachi and Islamabad. ATAR sponsored ACD’s head of the Transit Department to

speak at the workshops. These workshops described the TIR reactivation in

Afghanistan, which served as a useful case study for Pakistan given the proximity and

cultural similarity between the two countries. ATAR identified key issues, obstacles, and

counter-measures, as well as offered recommendations on how to build capacity for

transport operators in the event of accession. Throughout 2015, ATAR advised the

Pakistan National Committee of the International Chamber of Commerce (PNC-ICC)

TIR Commission. Based on accession requirements and procedures as well as best

practices and experiences from other countries, ATAR developed an accession roadmap

for the TIR Commission. These efforts led to Pakistan’s formal application to the United

Nations to join the TIR Convention in July 2015. Pakistan became a contracting party to

TIR in January 2016.

In India, ATAR collaborated with IRU to support that country’s accession to TIR. In July

2015, ATAR conducted a fact-finding mission in India, completed an analysis, and sent

the report to IRU. India’s entry means all the countries in South and Central Asia are

now contracting parties of the TIR Convention, thanks in part to ATAR’s support. In

principle, this will permit more efficient movement of cargo by road. Afghanistan can

capitalize on this development and leverage India’s accession to gain more favorable

terms under APTTA. In March 2017, India’s Union Cabinet, chaired by the prime

minister, approved the country’s accession to the TIR Convention.

In Tajikistan, ATAR promoted proper implementation of the TIR Convention to

facilitate transit trade among countries in the region, particularly Afghanistan. ATAR

participated in a regional TIR seminar in May 2015 with representatives from customs

administrations of Azerbaijan, Turkey, and Tajikistan, as well as representatives of

ABBAT, the Tajik national transport association authorized to issue TIR carnets. The

objective of the seminar was to analyze the status of implementation of the TIR

Convention.

On June 28, 2017, ATAR, the International Finance Corporation, and the U.N.

Conference on Trade and Development facilitated a bilateral customs meeting between

the customs authorities of Tajikistan and Afghanistan at the Tajikistan Customs Service

in Dushanbe, Tajikistan. ATAR presented on the concept and implementation of TIR

green lanes, and participants discussed the TIR carnet, TIR green corridor, and bilateral

cooperation in the field of electronic data exchange between the customs authorities of

the two countries. Following the meeting, the Afghan delegation visited the Association

of International Road Carriers in the Republic of Tajikistan, where both parties

acknowledged that visa restriction is a barrier to greater adoption of TIR. The officials

agreed they should work toward a simplified mechanism for visa application and

issuance. ACD also noted that substantial progress in TIR implementation was achieved

after the official re-activation in September 2013. While there have been many inward transit shipments, the number of outward transit movements has been low due to the


small number of approved TIR carnet holders in Afghanistan. The creation of TIR green

lanes is expected to encourage more Afghan transport operators to apply for TIR

qualification.

1.2 REGIONAL TRADE AND TRANSIT AGREEMENTS

As a land-locked country, Afghanistan is heavily dependent on its neighbors for

international trade. However, overland transport through these countries is unreliable

and subject to unpredictable trade barriers, security issues, and political motives.

Building on the work of the TAFA project, ATAR sought to reduce trade barriers and

increase the predictability in the trade environment by supporting bilateral, trilateral,

and multilateral trade agreements in Central and South Asia.

Afghanistan Pakistan Transit Trade Agreement

Transit through Pakistan is

critical for Afghan traders

seeking to reach the large

Indian market. However,

Pakistan has closed its

border with Afghanistan

multiple times, sometimes

for more than a month. Even

in normal times, Afghan

companies face difficulties in

cross-border export via

Pakistan, encountering

multiple police checkpoints,

requests for unofficial fees,

and high rates of inspections

and examinations leading to

long dwell times and costly

demurrage charges. To help

address these challenges, the

Afghan and Pakistani

governments signed Afghanistan Pakistan Transit

Trade Agreement (APTTA)

on October 28, 2010, and

the Afghan government

ratified the agreement on

January 7, 2011. APTTA replaced an outdated 1965 transit agreement and updated and

improved the joint transit system to reflect current economic conditions, infrastructure,

technology, and transport practices. The Afghanistan Pakistan Transit Trade

Coordination Authority (APTTCA) was designed to allow the Pakistani and Afghan

governments to resolve issues on APTTA and oversee its implementation.

EXHIBIT 6. MAP OF APTTA ROUTES


ATAR supported the Afghan government in APTTA’s implementation, working with

Afghan officials to identify and resolve transit trade problems under the agreement. In

January 2015, ATAR supported the Afghan delegation in the fifth meeting of APTTCA in

Islamabad. Leading up to the meeting, ATAR and MOCI held a policy roundtable on

Afghanistan’s transit and trade issues with Pakistan. ATAR also queried Afghan traders

and business associations on their challenges transiting goods through Pakistan and

prepared briefing papers and talking points for the APTTCA meeting. One of the major

outcomes of the APTTCA meeting was an agreement that Afghan trucks with a letter of

guarantee could transit through Pakistan to Wagah, a border crossing point between

India and Pakistan, and to Pakistani seaports (see Exhibit 6 for map of APTTA routes).

The letter of guarantee, issued by Afghanistan’s MOTCA, would replace costly bank

guarantees required for trucks under APTTA.

ATAR followed up on the APTTCA meeting with MOCI’s director general of planning

and policy and MOTCA officials to discuss technical assistance to issue letters of guarantee. After receiving input from the officials, ATAR designed the letters of

guarantee, printed 200 letters for distribution by MOTCA, and provided training to

MOTCA staff on implementing the letters. Although the mechanism of a letter of

guarantee became operational and honored by Pakistan, most Afghan transport

companies did not find that delivering goods to Wagah profitable, as they could not

transport any Indian goods on the return trip.

The following year, ATAR provided similar support to the Afghan government’s

participation in the sixth APTTCA meeting held in February 2016. ATAR compiled

issues and updated action points and assisted MOCI with drafting a letter that

emphasized that Afghan transit cargo should get national treatment, as agreed in the

previous APTTCA meeting. ATAR also assisted MOCI with preparing draft amendments

to APTTA to consider WTO and the Transports Internationaux Routiers (TIR)

Convention, which entered into force in Pakistan in January 2016. During the meeting,

Pakistani and Afghan officials agreed, in accordance with APTTA’s Article 50, that the

agreement will be amended to facilitate transit trade. In addition, the Pakistani

delegation promised to provide Afghanistan access to Wagah. Pakistan, in turn, would

have access to Tajikistan through Afghanistan.

Despite the promise of these efforts, the complex political and economic relationship

between both countries continues to thwart substantial progress. Pakistan has not

implemented APTTA properly and has failed to deliver on critical measures that were

agreed to in the APTTCA meetings. Furthermore, Pakistan continues to implement

additional restrictive measures at their borders that delay clearance and transit of

Afghan goods. Accordingly, the majority of transit has been diverted via Iran.

Pakistan Afghanistan Tajikistan Transit Trade Agreement

At the request of MOCI, ATAT worked with the ministry to develop a proposal to

extend APTTA to Tajikistan, creating the Pakistan Afghanistan Tajikistan Transit Trade

Agreement (PATTTA). This would provide Pakistan and Afghanistan with access to

Central Asian countries and Tajikistan with access to Pakistan’s seaports by way of


Afghanistan. PATTTA also would improve APTTA by facilitating trade and reducing

costs.

In Tajikistan, ATAR worked with the Tajik MEDT both to prepare for PATTTA

negotiations and to build private sector awareness and support for PATTTA through

roundtables. The project translated the combined Afghan and Tajik counterproposal to

Pakistan’s proposed APTTA amendments and provided the document to MEDT in April

2014. In addition, ATAR provided guidance, technical support, and clarifications to

MEDT officials and the Tajikistan ambassador to Pakistan prior to bilateral informal

meetings on PATTTA with Afghanistan and Pakistan. Due to this effort, the spring 2014

bilateral negotiation coordination meetings were successful.

On March 9 and 10, 2015, Tajikistan and Afghanistan held bilateral discussions on

PATTTA in Dushanbe. ATAR participated in the meeting and provided guidance and

clarifications to both parties. Subsequently, ATAR assisted with further changes to the PATTTA counterproposal to support agreed-upon items and additional proposals.

Although the Tajik and the Afghan delegations shared commonality in their response to

the Pakistan proposal, they both submitted individual counterproposals.

With ATAR support, Afghanistan, Pakistan, and Tajikistan held two trilateral meetings,

and Afghanistan and Tajikistan held one bilateral meeting to progress the proposed

agreement. Following the fifth APTTCA meeting in January 2015, ATAR supported

Afghan, Tajik, and Pakistani representatives in Islamabad for their first trilateral meeting

regarding the proposed PATTTA. ATAR helped prepare the Afghan delegation to

advance negotiations and draft an agenda, talking points, and materials. ATAR also

supported bilateral negotiations between Afghanistan and Tajikistan in March 2015,

providing logistical and technical support to the Afghan delegation, and supported post-

meeting revisions to the PATTTA to reflect agreed-upon and new proposals. Finally,

ATAR prepared MOCI’s negotiating team in advance of a second trilateral meeting with

Pakistani and Tajik counterparts in April 2015.

Further discussions on PATTTA are anticipated to continue in 2018. The conclusion of

PATTTA is pending Pakistan’s decision to grant greater access to India for Afghanistan,

which will also benefit Tajikistan and its access to India.

Cross Border Transport Agreement

The Cross-Border Transport Agreement-Corridor 5 between Afghanistan, the Kyrgyz

Republic, and Tajikistan is designed to link East Asia with the Middle East and South Asia

through Corridor 5, which connects East Asia to the Arabian Sea through Central Asia.

The corridor is one of the six transport corridors that traverse the CAREC region, as

shown in Exhibit 7. The main objective of the Cross-Border Transport Agreement

(CBTA) is to ease the movement of people, goods, and vehicles across borders.

Vehicles and goods will be able to cross borders faster due to streamlined customs

inspections and reduced requirements to transfer shipments between vehicles.


EXHIBIT 7. MAP OF CAREC CBTA-5

Afghanistan signed the accession protocol to join the CBTA with Tajikistan and

Kyrgyzstan at the 10th Ministerial Conference of the Central Asia Regional Economic

Cooperation program (CAREC) held in Baku, Azerbaijan, in November 2011. However,

there were some discrepancies and grammatical issues in the signed English and Russian

versions of CBTA. The three countries agreed to fix the discrepancies and re-sign the

accession protocol with the previous dates. To this end, ATAR facilitated the approval

by the Afghan government, including the Ministry of Transportation and Civil Aviation

(MOTCA), MOFA, and the Council of Ministers, and the signing of Afghanistan’s

protocol of accession by President Karzai in April 2014. Kyrgyz ratification was to

follow, after which Tajikistan could ratify the agreement.

ATAR facilitated the reactivation of the CBTA ratification process in the Kyrgyz

Republic in 2015. ATAR met with the Kyrgyz government to outline the benefits of

ratifying the Afghanistan protocol, and the Ministry of Transport and Communications

launched the process of inter-ministerial approval (required before submission to the

Cabinet of Ministers for approval) by sending a list of endorsements to several ministries

for signature. Unfortunately, following substantial progress toward gaining Kyrgyz

approval on Afghanistan’s protocol in 2015, changes in the Kyrgyz government

hampered the process in 2016. Border disputes between the Kyrgyz Republic and

Tajikistan also contributed to the Kyrgyz Republic’s reluctance to move forward with

the CBTA. In August 2016, the Kyrgyz Ministry of Transport and Communication


informed ATAR that the Kyrgyz government stopped efforts to ratify the Afghan

protocol, stating that the government felt there was insufficient support from other

ministries and agencies in light the border dispute.

South Asian Free Trade Area Agreement

ATAR supported Afghanistan in implementing the South Asian Free Trade Area

(SAFTA) Agreement, a regional free trade agreement between Afghanistan, Bangladesh,

Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The South Asian nations are

among Afghanistan’s most critical trading partners; Pakistan and India alone account for

more than 50 percent of Afghanistan’s exports. The agreement provides Afghan

producers with greater and more consistent access to SAFTA markets and consumers

with greater access to affordable, imported products. Throughout implementation,

ATAR built the capacity of MOCI’s Trade Policy Analysis Unit in analyzing sensitive list

products of special interest to SAFTA member countries that are exempt from low

SAFTA tariffs. Through on-the-job training, ATAR helped MOCI staff to finalize a

revised sensitive list — reducing sensitive tariff lines from 962 to 844 — with the

concurrence of stakeholders, including MOCI, MAIL, the Export Promotion Agency of

Afghanistan (EPAA), ACD, ACCI, and the private sector. Reducing the number of items

on sensitive lists is a step toward greater trade liberalization.

1.3. TRADE PROMOTION

Afghan Commercial Attaché Activities

To promote trade and investment in Afghanistan from neighboring countries, ATAR

provided mentoring and capacity building to the commercial attaches in Afghanistan’s

embassies in the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan. In Bishkek,

ATAR held several sessions with the first secretary of the Afghan embassy, who is the

official in charge of commercial attaché activities. ATAR presented materials on the

trade potential of the Kyrgyz Republic and Afghanistan as well as materials on trade

promotion techniques. In Dushanbe, ATAR conducted a survey of Afghan entrepreneurs

to identify the challenges of operating in Tajikistan and presented the findings at a

roundtable at the Afghan embassy. In addition, ATAR assisted the Afghan commercial

attaché with two roundtables in August 2016 on trade and investment opportunities in

Afghanistan with the Tajik Chamber of Commerce and Industry and the American

Chamber of Commerce in Tajikistan. ATAR also supported the commercial attaché in

Dushanbe with one-on-one training sessions on trade promotion tools and techniques,

including market analysis and research, identification of trade opportunities, promotion

techniques, participation in trade fairs and exhibitions, promotion of public and private

sector linkages, and servicing Afghan business diaspora. In Tashkent, ATAR advised on

ways to cooperate with Afghan businesses and to identify problems facing traders and

possible solutions. ATAR also advised on trade opportunities between Uzbekistan and

Afghanistan and provided a list of goods and products that can be imported from each

country to the other. Finally, in Dushanbe, ATAR researched customs clearance

procedures for importing food products in 2016 at the attaché’s request, among other

activities.


Regional Trade Forums

Regional trade forums provide an opportunity for stakeholders from the public, private,

and civil society sectors to address obstacles to trade and potential solutions, to

advance cross-border trade initiatives, or to explore business ventures. Throughout

implementation, ATAR supported Afghan and regional stakeholders to participate in and

take maximum advantage of regional forums.

In 2014, ATAR participated in the U.S.-Central Asian Republics Trade and Investment

Framework Agreement (TIFA) customs working group meeting held in Bishkek with

customs officials from Afghanistan, Kazakhstan, the Kyrgyz Republic, and Tajikistan.

In June 2015, ATAR participated in the TIFA working group meetings organized by the

U.S. Department of Commerce’s Commercial Law Development Program (CLDP) in

Astana, Kazakhstan, on customs, SPS, and TBT. Participants included officials from

customs authorities, ministries, and standardization agencies from Afghanistan,

Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. ATAR delivered two

presentations and supported CLDP in facilitating working group meetings. ATAR held

many meetings with officials from all six countries and shared best practices and

clarifications on trade issues. In addition, ATAR contributed significantly to the trade

policy conference “Expanding Central and South Asia’s Regional Trade” in July 2014 in

Astana, Kazakhstan, organized by USAID’s Macroeconomic Project. In November 2015,

ATAR participated in the EU Border Management Northern Afghanistan (EU-BOMNAF)

Regional Trade and Cooperation Workshop in Dushanbe, Tajikistan, for Afghan and

Tajik government officials and donor representatives. ATAR delivered three

presentations and moderated workshops at the event. ATAR presentations included “Trade Facilitation: WTO and Regional Cooperation,” “Trade and Investment

Opportunities in Afghanistan,” and “Regional Cooperation with the Focus on Border

Management and Cooperation between Afghanistan and Tajikistan.” ATAR also

moderated two workshops on strengthening the relationship between border guards

and customs officials of Afghanistan and Tajikistan and between the countries’ border

agencies as well as measures to strengthen market access, investment, trade potential,

public-sector advocacy, and the logistics capacity of South and Central Asian countries.

From 2014 to 2016, ATAR facilitated the participation of public and private sector

representatives at the Central Asia Trade Forums (CATF), organized by USAID’s

Regional Economic Cooperation (REC) project in Almaty, Kazakhstan. The CATF is the

region’s largest annual gathering of exporters, government officials, small and medium-

sized enterprises (SMEs), business associations, international organizations, trade

promotion agencies, and industry experts from around the world and is designed to

provide an opportunity to analyze the rapidly changing trade environment in Central

Asia and conclude trade deals. In 2015, ATAR brought 24 Afghan businesses and an

Uzbek customs official to the event. ATAR also organized a study tour for six Afghan

participants to a flour mill and food processing facility and organized meetings between

Pakistani and Afghan businesses. Ahead of the 2016 CATF, ATAR organized a business-

to-business event involving 22 Afghan companies, 40 Kazakh companies, and nine Indian

companies. Afghan trader Mitra LTD signed a memorandum of understanding with


Kazakh wheat manufacturer Nur Kaz LTD to import $5 million of wheat from

Kazakhstan. An additional $500,000 in potential contracts for fresh fruit, dry fruit, and

saffron were negotiated. ATAR also coordinated with the Regional Economic

Cooperation (REC) project on the design for a Turkmenistan section in CATF. During

the event, ATAR conducted roundtables on opportunities for trade expansion in

Afghanistan and Pakistan and on transport and logistics development, ATAR also met

with Air Astana to explore the feasibility of exporting and importing products between

Kabul and Almaty and Astana by air and the possibility of Air Astana transporting Afghan

products via a third country such as the United Arab Emirates. Finally, ATAR supported

the participation of Afghan commercial attachés in the 2016 CATF, facilitating discussion

among all four commercial attachés and the first secretary of the Afghan Embassy in the

Kyrgyz Republic.

In all of its events, ATAR sought to include stakeholders from Afghanistan, Central Asia,

and South Asia whenever possible to enable them to build business relationships, explore trade opportunities, and build coalitions to address trade and transit problems.

2. COUNTRY-SPECIFIC INITIATIVES TO ENHANCE REGIONAL TRADE

In addition to its regional efforts to promote trade and integration, ATAR also worked

at the country level to promote Afghanistan’s economic interests, to implement trade-

facilitation measures, and to promote trade opportunities for Afghan and regional

businesses.

2.1 AFGHANISTAN

2.1.A. EXPORT AND TRADE PROMOTION

Support to the Export Promotion Agency of Afghanistan

To support the Afghan government in promoting exports, ATAR built the capacity of

the EPAA, the executive agency of MOCI that serves Afghan exporters and helps them

to expand their markets. Given the importance of export promotion, ATAR provided

assistance along multiple fronts during the project’s first two years. To build the EPAA’s

strategic planning capacity, ATAR assisted EPAA with developing an export promotion

plan for 2014, including actions targeting Central Asia, South Asia, the European Union,

and the United States; its 2015 action plan; and six sector-specific strategies targeting

Indian markets. Building on this work, ATAR facilitated the development of the

“National Export Strategy of Afghanistan,” a roadmap for increasing exports across a

10-year period, with MOCI and the EPAA. ATAR guided the writing process, including

gathering input from various ministries and private-sector associations and drafting the

strategy. The document includes 15 areas that range from removing administrative

barriers, infrastructure improvement priorities, export promotion, and women in trade.

To move from planning to action, ATAR worked with EPAA to organize seminars on

reaching new markets, the challenges and opportunities of promoting Afghan exports in

South Asian markets, and trade logistics, among other topics. In addition, to strengthen

traders’ access to finance, ATAR also facilitated a memorandum of understanding


between EPAA and the Afghan Rural Finance Company and the Afghanistan International

Bank in April 2015. Under this arrangement, EPAA recommends exporters to these

financial institutions for export credit on easier terms. Together with EPAA and the

USAID Financial Access for Investing in the Development of Afghanistan project, ATAR

organized roundtables in 2015 and 2016 with the private sector to promote available

trade finance products and services. As a result, businessmen and businesswomen began

working with the Financial Access for Investing in the Development of Afghanistan

(FAIDA) project to prepare loan applications that could help them strengthen their

businesses.

Finally, ATAR integrated EPAA into its trade-promotion efforts, including its

preparations for the Domotex, India Stone Mart, and Gulfood trade shows in 2015,

among others. ATAR assisted EPAA with organizing the Afghan pavilion at Expo Milano,

a six-month international exhibition in Milan, Italy, from May 1 to October 31, 2015, to

promote Afghan exports. ATAR supported EPAA’s planning efforts prior to the event and assisted with organizing and running the Afghan Pavilion at the beginning of the

exhibition. EPAA said the pavilion received an estimated 2,000 visitors each day. The

establishment of the Pavilion and its operations were covered by returns from the sale

of Afghan food at the Pavilion.

2.1.B. SUPPORT TO THE PRIVATE SECTOR IN TRADE

Afghan Exporters Club

To increase the private sector voice in trade policy and

to promote Afghan exporters’ interests abroad, in

September 2016, ATAR began to work with interested

Afghan business leaders to establish the Afghan

Exporters Club (AEC). Following meetings with

business leaders and USAID, ATAR supported the formalization of the association, and

the AEC was formally registered at the MOJ in November 2016.

Since AEC’s formal registration, ATAR has worked with the founding members and an

executive officer to develop guiding principles, an organizational structure, and club

bylaws. ATAR also guided the AEC on sustainability and action plans, attracting and

engaging new members, methods for promoting air cargo, and approaches to sharing responsibilities among board members. The club has also established its website

(www.aec.org.af); its Facebook page (www.facebook.com/Afghanistanexportersclub),

which has nearly 2,000 followers; and introductory leaflets explaining the goals and

objectives of the club. With ATAR support, AEC also organized membership outreach

workshops for the carpet and agricultural sectors, which attracted 33 and 86

participants, respectively, as well as for businesses outside Kabul. To date, AEC has

recruited 35 members (three carpet businesses, three handicrafts businesses, four

marble and gemstone businesses, 24 dried fruit exporters, and one organization).

ATAR also provided several trade-related training sessions to AEC members on topics

such as developing export strategies, planning and conducting business trips, creating


business partnerships, market research, networking, communication, bargaining, and

business ethics. AEC members also participated at export-related events in Dubai,

Germany, Malaysia, and India.

Women and Youth in Trade

Beginning in 2014, ATAR worked with MOCI and local nongovernmental organizations

Afghan Women’s Business Federation (AWBF) and Leading Entrepreneurs for

Afghanistan’s Development (LEAD) to introduce hundreds of businesswomen to new

markets and economic opportunities. ATAR-supported businesswomen reported an

estimated $15,633,000 in deals at 15 international tradeshows, such as Gulfood, India

Stone Mart, and Made in Afghanistan, and at sales events organized by ATAR in Kabul

ahead of major local and Western holidays.

Beginning in 2016, ATAR conducted four training sessions on business skills,

opportunities, and challenges to build the capacity of businesswomen to market their

products and develop their businesses. A total of 95 women and 15 men attended these

sessions. The training covered preparing for international trade events, accessing foreign

markets, conducting market research, navigating production and export challenges, and

understanding types of export businesses and international customer expectations.

Photo: USAID ATAR Project

Women workers weave handmade carpets at the Afghan Rug and Carpet Company in Kabul. The

company has created 4,500 jobs, primarily for women weavers, and hopes to employ up to 30,000

weavers by 2023. The company’s strategy for growth is based on exports, especially to the United

States. The company’s president, Sayed Abbas, is a founding member of the Afghan Exporters

Club. “The club is helping Afghan manufacturers to produce more, and more standardized,

products for export,” he said.


To increase future professionals’ knowledge of international trade and commerce,

ATAR organized six “Youth and Trade” training sessions for 314 university students,

including 98 women and 216 men, together with MOCI, EPAA, and FAIDA. As part of

these sessions, students learned about the benefits of Afghanistan’s WTO accession and

the country’s membership in SAFTA, the application of economic models, the

importance of products and services standardization, international commercial terms

used in commercial transactions, trade barriers and possible solutions, and marketing

methods and opportunities. ATAR also implemented two six-month internship

programs that aimed to provide youth, especially women, with the experience, skills,

and confidence to operate effectively in a professional work environment. Out of 99

interns hired by ATAR, 55 were women. The interns gained valuable professional

experience supporting economic, legal, and translation departments at MOCI, ACD, and

ATAR’s project office. The interns also attended many of the training workshops

offered to ATAR beneficiaries.

2.1.C. PROMOTING AFGHAN EXPORTS THROUGH TRADE EVENTS

ATAR worked with EPAA and Afghanistan’s private sector to support the participation

of hundreds of Afghan traders and exporters in trade events. The traders signed deals

worth $60,646,667at more than 15 high-level international tradeshows held in the UAE,

India, Italy, Germany, and Kazakhstan.

To boost exports and establish a unique Afghan brand, ATAR also organized its own

tradeshows to present a wide range of Afghan products. In 2016, ATAR organized the

“Made in Afghanistan” conference and exhibition in New Delhi, India, in partnership


Kanda Fruits, one of Afghanistan’s largest exporters of dried and fresh fruits, participates in the

“Made in Afghanistan” trade show in New Delhi, India, in 2016.


with Federation of Indian Chamber of Commerce and Industries, U.N. Women,

Commercial Horticulture and Agricultural Marketing Program (CHAMP), Regional

Agricultural Development Program-South (RADP-S), and FAIDA. A total of 40 Afghan

businessmen and businesswomen displayed fresh fruit, dried fruit, nuts, saffron, precious

stones, marble, carpets, and handicrafts. A total of 130 Indian companies participated in

the event to explore trade opportunities in Afghanistan. Nearly $6 million in business

resulted. Later that year, ATAR organized “Exhibition Afghanistan” in Dubai, where 70

Afghan traders in the carpet, gemstone, fresh fruit, dried fruit and nuts, spices, apparel,

marble, and handicraft sectors engaged with 90 international buyers. Building on this

experience, in September 2017, ATAR collaborated with CHAMP, RADP-S, and

USAID/India to organize the “Passage to Prosperity: India-Afghanistan Trade and

Investment Show,” a major trade event aimed at advancing regional integration by

strengthening economic ties between Afghanistan and India through partnerships. An

estimated 200 Afghan businesses met with more than 950 Indian businesses from 14

sectors and struck approximately $240 million in deals, including $27 million in confirmed contracts.

To prepare for these tradeshows, ATAR trained traders, prepared marketing and

promotional materials, assisted with exporting traders’ samples and goods, and

organized visas and flights. The events raised awareness of Afghanistan’s exports among

international buyers, built the marketing skills of traders, and led to long-term business

contacts for attendees.3 A complete list of these events is in Exhibit 8.

EXHIBIT 8. LIST OF TRADESHOWS ATTENDED BY ATAR-SUPPORTED TRADERS

EVENT PRODUCT TYPE LOCATION DATE SIGNED

DEALS

Gulfood Produce Dubai, United

Arab Emirates

February 23-

27, 2014 $8,000,000

La'Artiagiano Handicrafts Milan, Italy

November 29-

December 8,

2014

$365,000

DOMOTEX Carpets Hanover, Germany

January 17-20, 2015

India Stone Mart Stone and marble Jaipur, India

January 28-

February 1,

2015

Gulfood Produce Dubai, United

Arab Emirates

February 8-12,

2015 $2,300,000

Aahar Produce New Delhi, India March 10-14,

2015 $3,000,000

Expo Milano Spices Milan, Italy May 1-October

31, 2015

Gulfood Dry fruits, nuts, saffron Dubai, United

Arab Emirates

February 21-

25, 2016 $2,800,000

Made in Afghanistan All sectors New Delhi, India July 19-20,

2016 $5,950,000

Central Asia Trade

Forum

Almaty,

Kazakhstan

September 7-8,

2016

3 Figures are as reported by the Afghan traders attending the events.


EVENT PRODUCT TYPE LOCATION DATE SIGNED

DEALS

Jewelry and Gem Fair Jewelry New Delhi, India September 22-

28, 2016 $92,099

India International

Trade Fair

Carpets, Dry fruits, nuts,

fresh pomegranate, handicrafts, and jewelry

India October 14-28,

2016 $5,940,000

Exhibition Afghanistan All sectors Dubai, United

Arab Emirates

December 6-7,

2016

DOMOTEX Carpets Hannover,

Germany

January 14-17,

2017 $351,000

India Stone Mart Marble, stones Jaipur, India February 2-5,

2017

Gulfood Dry fruits, nuts, saffron Dubai, United

Arab Emirates

February 26 –

March 2, 2017 $4,519,160

Afghanistan Malaysia

Business Forum

Dried fruit and nuts,

carpets

Kuala Lumpur,

Malaysia

May 11 -

May12, 2017

Passage to Prosperity:

India Afghanistan Trade

and Investment Show

All sectors New Delhi, India September 27-

30, 2017 $27,168,908

India International

Trade Fair

Carpet, marble, and gem

and jewelry sectors New Delhi, India

November 14-

27, 2017 $160,500

DOMOTEX Hanover,

Germany

January 12-15,

2018

TOTAL $60,646,667

Over the course of five years, ATAR assisted 1,060 Afghan firms in building their

capacity to export, exceeding the LOP target of 850. This assistance included market

research, short-term technical assistance to government and/or private-sector

beneficiaries, study tours and international trade fairs/exhibitions, exporter training

sessions, networking and training supported by ATAR.

2.1.D. SUPPORTING AIR TRANSIT OF AFGHAN EXPORTS

Air Cargo Operations and the One-Stop Shop

Afghanistan’s ability to expand its market access is hampered by its landlocked location

and unstable relationship with Pakistan, through which exports travel to India. Traders

using land and sea transportation often encounter unpredictable trade barriers, poor

security, artificial restrictions, and costly transshipping delays. To overcome these

challenges, and in response to President Ghani’s declaration that improving export

performance at Hamid Karzai International Airport was a national priority, in late 2016,

ATAR began meeting with major airlines to explore opportunities for airlifting Afghan

exports. Simultaneously, ATAR began working with MOCI and the Ministry of Economy

to increase the export capacity Hamid Karzai International Airport (HKIA).

The culmination of ATAR’s efforts to facilitate trade through HKIA was the launch of a

one-stop shop (OSS) at the airport in January 2018. The OSS launch was the result of

nearly a year of work with multiple stakeholders in both the public and private sector.

Given the government’s priority on facilitating exports via HKIA, ATAR conducted an

analysis of the steps a trader had to undergo to export products, identifying 29 steps

requiring troublesome visits to different government agencies to obtain certificates and


approvals necessary to export the goods. To simplify this process, ATAR worked with

ACD and other stakeholders to develop a new export process map that reduced the

number of steps for exporting products by air from Afghanistan through HKIA from 29

to 10.

Throughout the spring and early summer of 2017, ATAR coordinated with the HKIA

director of customs and the deputy minister of the Afghanistan Civil Aviation Authority

(ACAA) regarding the establishment of a one-stop shop (OSS) at HKIA Customs Zone.

They proposed a consolidation warehouse to hold pre-customs declaration while

multiple checkpoints and unnecessary steps within the customs would be removed.

Additionally, pre-booking would provide customs and airlines with advance information,

reducing dependency between customs and ministry certification processes. Most

important, traders would be offered a simplified process for obtaining approvals and

permits from different ministries, agencies, and associations in one central office, located

within HKIA premises: the one-stop shop.

On June 5, 2017, ACD’s deputy director and HKIA’s director of customs approved the

flow chart developed by ATAR and the location of the proposed OSS. At ACD’s

request, ATAR developed a detailed action plan and timeline of the development and

implementation of the OSS, which was approved by ACD in July 2017.


ATAR met with Olive Group (the airport security provider) about a streamlined

security inspection of goods and with HKIA’s customs director to discuss the OSS

blueprint, which was approved by ACD. In coordination with ATAR, HKIA Customs

submitted a letter to the HKIA civil aviation director to assign engineers to clear the OSS area of underground lines and pipes. ATAR installed IT equipment together with

necessary software for storage of customs declarations and associated trade documents,

certificates, and approvals.

Throughout late 2017, ATAR completed the training needs analysis and followed up

with the development and delivery of a one-week training in January 2018 to the OSS

staff on the procedures, integrity, and storage of documents using library software.

Meanwhile, in the summer of 2017, ATAR visited Kandahar International Airport, Herat

International Airport, and Mazar-e-Sharif International Airport to gauge the possible

extension of the OSS concept to those sites to facilitate the export of Afghan products.

Minister of Agriculture, Irrigation, and Livestock Naseer Ahmad Durani; Minister of Commerce and

Industries Homayoun Rasaw; National Unity Government CEO Abdullah Abdullah; U.S. Ambassador to

Afghanistan John Bass; and USAID Assistant to the Administrator for the Office of Afghanistan and Pakistan

Affairs Gregory Huger cut the ribbon at the opening of the one-stop shop at HKIA on January 25, 2018. At

the event, Afghanistan CEO Abdullah Abdullah said, “The Office of the Chief Executive is pleased and proud

that you have taken initial steps – represented by the opening of this One-Stop Shop – to remove barriers to

trade and to make it easier for exporters to access foreign markets.” U.S. Ambassador John Bass noted that

“the US believes that the steps taken today—the creation of this One-Stop Center— will help not only

generate income and opportunities for Afghan businesses, and employment for Afghans, but it will give the

world a different vision of Afghanistan and its future.”


ATAR determined the sites had great potential and, if implemented properly, an OSS

would provide Afghanistan with easier and wider access to international markets.

Air Cargo Shipments

In addition to its efforts to improve air cargo processing at HKIA and other airports,

ATAR supported individual shipments throughout 2017. Altogether, ATAR facilitated

the shipment of $2.7 million of goods to Germany, Dubai, Qatar, Saudi Arabia, the

Netherlands, the United Kingdom, and Canada. Exported goods included carpets,

pomegranate juice, saffron, dried fruit, and nuts. See Exhibit 9 for the Air Cargo

Incentive Mechanism.

In July 2017, ATAR revised its air cargo strategy due to new, more stringent USAID vetting requirements, limited air cargo capacity on the market among airlines, and

challenges experienced by the Afghan government’s Afghanistan-India Air Corridor

initiative. Rather than relying on multiple separate contracts with traders for each

shipment, ATAR signed a contract with a freight forwarder under a blanket purchase

agreement for air freight rates to multiple destinations in the Middle East and Europe.

This was designed to help speed up the procurement process to facilitate air shipments

in a timely manner.

During this time, ATAR also supported the establishment of a consolidation warehouse

near HKIA, as part of the OSS process described above. The warehouse serves as a

central consolidation point where traders’ products are packed and undergo air cargo

pre-planning, (e.g., airway bill preparation and pre-customs declaration). The warehouse


Air cargo for export is loaded onto a plane at Hamid Karzai International Airport in Kabul.


can hold fresh products in a temperature-controlled environment, thereby reducing the

risk of product spoilage at the airport in the event of delayed or cancelled flights. By the

end of August, the warehouse had received 60 tons of carpets and 31 tons of dried

fruits.

EXHIBIT 9. AIR CARGO INCENTIVE MECHANISM

The value of goods exported through Kabul airport increased significantly over the life

of the project. On average, exports grew by 35 percent annually. During ATAR’s

implementation, the total value of goods cleared at HKIA exceeded 25.495 million Afn

(US$367 million ), or about 14 percent of all official Afghan exports, according to ACD

data. Howver, the quantity of exports through HKIA was marked by more sluggish

growth than the value of exports for most of ATAR’s lifecyle. During the project’s last

year, however, exports increased significantly, both in terms of value (+51 percent) and

quantity (+118 percent) in relation to year prior.

2.2. KYRGYZ REPUBLIC

ATAR supported the Kyrgyz Republic in ratifying the WTO TFA and to move toward

alignment with the WCO RKC. However, an ongoing dispute with Tajikistan over the

border prevented progress on the CBTA for Corridor 5. In addition to these regional

initiatives, ATAR worked to strengthen and modernize customs procedures as part of

its overall efforts to facilitate Afghan trade.

Customs Consultative Council


ATAR supported the Kyrgyz Republic’s State Customs Service to facilitate trade

between the country and others in its region, with a focus on Afghanistan. One of

ATAR’s most important successes in its work with the Kyrgyz Republic was the

reinvigoration of the Customs Consultative Council (CCC), which provides a forum for

customs officials, the trading community, and customs brokers. Prior to 2011, Kyrgyz

Republic Customs regularly met with importers, exporters, and brokers. The CCC

provided an opportunity for traders to voice their frustrations and for customs to

articulate regulations. Following meetings with ATAR, the Kyrgyz Ministry of Economy

held a roundtable in November 2014 with the private sector and government agencies

to establish public-private dialogue. At that event, Kyrgyz customs agreed to relaunch

the CCC, and the first of four CCC meetings held during the project tenure began in

December 2014.

Throughout the remainder of the project, ATAR supported CCC meetings by drafting

agendas, facilitating conversation, and following up with private-sector members on their issues. Topics included the methodology for calculating the amount of security for

customs payments; preparing a recommendation on including insurance as one of the

forms of security for customs payments; raising awareness of a new Kyrgyz resolution

on “Approving the Procedure on Advance Notification”; drafting amendments to the

customs code; preparing amendments to the Law on Joint Responsibility for Customs

Violation for Brokers and Owners of the Goods; discussion of veterinary issues after

Kyrgyz meat was prohibited from entering Kazakhstan; and updating participants on the

status of the TFA ratification.

Authorized Economic Operators

As a key WTO TFA provision involves the establishment of an AEO program that

recognizes traders, brokers, consolidators, transporters, and other actors in

international trade as complying with WCO or equivalent supply chain security

standards. ATAR worked with the CCC, the Kyrgyz business community, and Kyrgyz

customs to raise awareness of the concept of AEO and its importance to the modern

trading system. This included presenting the AEO concept to the Kyrgyz business

community, the consultative council, and customs managers. In the second half of 2016,

Kyrgyz customs implemented an AEO program. Following the launch of the AEO

program, ATAR facilitated a meeting with the Kyrgyz Republic’s sole AEO and several

businesses interested in gaining AEO status. During the meeting, ATAR delivered a

presentation on special simplified procedures stipulated by customs legislation and

conditions for being included in the AEO register. ATAR also prepared an analysis on

the application of simplified customs procedures for AEO and sent it to the WTO TFA

working group for inclusion in the WTO TFA Action Plan.

Other Customs support

To help the Kyrgyz Republic improve customs risk management techniques, ATAR

produced a report highlighting available sources of risk management information, the

process for gathering risk information, and recommendations to develop more relevant

risk profiles. ATAR also produced a paper on a methodology for ensuring regular

review and objective analysis of the risk profiles. Finally, ATAR assisted with the


development of the Comprehensive Integrated Tariff System (CITS), which would

ensure greater transparency and easy access to information regarding import and

export trade regulations in 2014. ATAR verified data in CITS with relevant Kyrgyz

agencies to ensure updated and comprehensive content.

2.3. TAJIKISTAN

ATAR also provided significant support to the Customs Service under the Government

of the Republic of Tajikistan as part of its efforts to facilitate trade from Afghanistan. The

project’s support encompassed a wide range of customs-related issues, and Tajik

private-sector businesses also were invited to participate in the project’s trade-

promotion activities.

2.3.A. CUSTOMS SUPPORT

Risk Management and Post-Clearance Audits

In 2015, to promote WCO RKC trade facilitation measures as well as the WTO TFA

and CBTA, ATAR developed and installed a risk information database at three customs

stations in Dushanbe: the airport freight office, the railway freight yard, and the

international post office. These stations were selected to receive the database, which

contains information relating to non-compliance and enables users to conduct effective

risk analyses, because they are critical for expanding the flow of information to the risk

management unit. In addition to installing the database, ATAR provided on-the-job

training for customs staff and delivered a paper on identification of information;

mechanisms for collection, analysis, and dissemination; and data collection principles.

ATAR also proposed a structure for centralized risk management, including the

introduction of a risk management committee, developed job descriptions for the risk

management unit, and prepared a proposed training plan for the risk analysts. The

proposals were translated and submitted to the Tajik State Customs Service.

ATAR worked to improve the capacity of Tajik customs to conduct PCAs, by

completing and translating a proposal for dialogue between Tajik customs and private-

sector representatives on the requirements to comply with an order for audit. PCAs

are used to verify the accuracy and authenticity of Customs declarations and facilitate

trade by reducing controls at the border. ATAR conducted a five-day training program

for 13 Tajikistan State Customs Service officers on PCA in September 2015 at the

Customs Institute for Professional Development in Tajikistan and held a roundtable

targeting customs brokers and transport and logistics companies to promote awareness

of how to prepare for and comply with a customs audit.

Advance Rulings

In early 2016, ATAR submitted recommendations to Tajik customs to facilitate the

process of instituting advance rulings, also known as binding decisions, on tariff

classification and/or assessment of origin accorded to particular goods. The

recommendations, which have yet to be adopted, included a draft regulation

complementing the draft standard operating procedures and the existing customs legal

provisions; draft fact sheets for private-sector awareness; and best practices regarding


binding decisions. ATAR also submitted the Russian and Tajik translations of templates

for requesting advance rulings regarding tariff classification or origin contained within

WCO guidelines. The translations supported ATAR recommendations to maximize

Tajikistan’s advance rulings facility, particularly in light of the imminent adoption of the

Tajikistan customs nomenclature, which is a list of classifications of commodities for

customs purposes.

Valuation

In November 2016, ATAR delivered a five-day training program for Tajik customs

trainers and practitioners on the principles and correct application of the WTO

Customs Valuation Agreement. The agreement provides an internationally agreed and

consistent method for valuing goods for the purposes of applying custom tariffs.

Participants included customs trainers, customs operational staff, university lecturers,

and customs brokers. This was the first occasion in which Tajik customs shared training

with its primary clients. Customs management decided to use the training materials in

December 2016 for regional customs staff and brokers, and ATAR assisted with the

transition of the materials to Tajik customs’ templates.

Joint Customs Controls

ATAR developed recommendations for establishing the legal basis and strategy for joint

Tajik-Afghan customs controls at the Shir Khan Bandar and Nijni Pyanj border crossing

points. ATAR’s recommendations were built on a feasibility study by USAID’s TAFA

project, considering the Memorandum of Mutual Understanding in Customs Matters

that Afghanistan and Tajikistan signed in March 2014 and the introduction of electronic

data exchange between the two customs administrations. In February 2016, ATAR

translated and submitted the recommendations, incorporating provisions for extra-

territoriality within the Tajik customs code, defining elements needed in a legal

framework for joint customs/border controls, listing major components to be included

in a plan for the establishment of a one-stop border post with Afghan counterparts, and

redrafting the memorandum of understanding for the introduction of such controls. All

these issues are relevant to the provisions of both the CBTA and the WTO TFA.

Authorized Economic Operators

To promote AEO in Tajikistan, in 2016, ATAR developed a model concept for the AEO

program for consideration by Tajikistan customs. The model includes criteria for

participation, benefits, operational aspects, proposed amendments to the customs code,

and a methodology for implementation. ATAR later supplemented the model concept

by providing additional examples of best practices used by other customs

administrations, including AEO programs that focus on export transactions and supply

chain security and examples of AEO programs that encompass certification across other

national regulatory agency programs. To promote awareness of AEO best practices,

criteria, and principles most suitable for adaptation in Tajikistan, ATAR also held two

roundtables for both public and private sector representatives in August 2015. Finally, in

July 2016, ATAR submitted an action plan for the development of an AEO program

specific to Tajikistan. The plan encompasses 18 steps, a list of activities and outputs, and continued testing and refinement of the concept and protocols.


Trade Documents/Procedures and Single Window

In 2014, ATAR prepared an analysis of the harmonization of the trade documents

required for border crossing. The study found the six trade documents were

harmonized in accordance with national legislation and international conventions, but a

problem existed in accessing these documents online. The introduction of the single

window system in 2015 solved this problem.

ATAR also supported the advancement of the single window effort, which was led by

the European Union and GIZ. In 2014, ATAR reviewed a test application of the single

window program and offered feedback on legal and procedural issues. Furthermore,

with GIZ, ATAR supported the one-stop concept for border crossing by proposing an

action plan for implementation. ATAR visited Tajikistan’s border crossing point with

Afghanistan at Nizhny Panj and evaluated the one-stop concept in practice. ATAR then

prepared an analysis of all agency border clearance procedures and discussed with the

Ministry of Economic Development and Trade the need for a national strategy, an action

plan, and an inter-agency working group to support coordinated border management.

Veterinary Service Support

To facilitate the introduction of sound veterinary risk analysis and cooperation between

the Afghan and Tajik veterinary services, in 2014 ATAR provided the Tajik State

Veterinary Inspection Service with three primary modes of support. First, ATAR

assisted with developing an “Agreement between the Government of the Republic of

Tajikistan and the Government of the Islamic Republic of Afghanistan on Cooperation

and Mutual Assistance in Veterinary Science Matters” in English, Tajik, and Dari. Second,

ATAR developed a “risk analysis framework” and a presentation for integrating risk

management principles. Finally, ATAR supported roundtables with GIZ on the

implementation of risk management principles and the sharing of risk data with other

border agencies.

2.3.B. TRADE PROMOTION

In July 2015, ATAR collaborated with the Sughd Regional Administration and other

donors on a regional trade fair called “Sughd-2015” in Khujand. The fair brought

together more than 100 exhibitors from Afghanistan, Belarus, Kazakhstan, the Kyrgyz

Republic, Latvia, Poland, Russia, and Turkey from sectors such as agriculture, the light

industry, food production, services, and construction materials. The fair was preceded

by a trade forum discussing ways to facilitate trade and exports of the Sughd region.

ATAR circulated the event invitation to Afghan producers, ACCI, and the Kabul

Chamber of Commerce and Industries and participated in both the forum and the fair,

identifying and meeting with Afghan participants.

2.4. TURKMENISTAN

During the implementation of the ATAR project, the Government of Turkmenistan was

open to only limited support from the project. As described under Section 1 above,

ATAR performed two assessments of Turkmenistan’s compliance and technical

assistance needs vis-à-vis the WTO TFA and WCO RKC. In addition, as part of its


support for improved customs facilitation between Afghanistan and Turkmenistan,

ATAR assisted with translating official customs documents for the announcement page

of the State Customs Service website (https://customs.gov.tm/en/announcements). The

documents translated by ATAR along with materials translated by USAID’s

Competitiveness, Trade and Jobs project were submitted to the State Customs Service

in 2017 and were designed to assist local and foreign traders with cross-border trade.

2.4.A. EXPORT PROMOTION

To promote trade between Afghanistan and Turkmenistan, ATAR identified trade

opportunities and facilitated linkages between Turkmen and Afghan businesses in several

sectors. In textiles, ATAR held two meetings with the head of the Department of

Foreign Economic Affairs of the Ministry of Textile Industry of Turkmenistan in 2016. In

the first meeting, ATAR sought to identify the production potential of Turkmen

factories to produce materials for Afghanistan. In the second meeting, the head of the

department provided fabric samples produced by Turkmen factories for Afghan

counterparts. ATAR gave samples of the fabrics produced by the Turkmen factories to

the chairman of Afghanistan’s Balkh Chamber of Commerce and Industry.

To identify the potential to export Afghan agricultural products to Turkmenistan, in

2015 ATAR provided USAID’s Regional Agricultural Development Program-West

(RADP-W) project in Afghanistan with market information on the Turkmen fruit and

vegetable sector. ATAR researched market demand for grapes, tomatoes, and

cucumbers. In addition, ATAR provided Berouge Paints Company in Afghanistan with

Turkmen market information to develop a strategy to enter the Turkmen market. In

both cases, ATAR also facilitated contact with the Turkmen Transportation and Logistics Company, which has trucks on both sides of the border and could support

transit of goods from Afghanistan to Turkmenistan. ATAR also discussed similar

logistical support with Muntaz Petroleum Company.

In the carpet sector, at the request of USAID/Turkmenistan and in response to

governmental interest, ATAR proposed to deliver export development training for

carpet industry representatives and proposed a seminar on export promotion strategies

for the Institute on Research of Commodity Circulation of Turkmenistan’s National

Goods, the Institute of Strategic Planning and Economic Development of Turkmenistan,

and the Chamber of Commerce and Industry of Turkmenistan. ATAR also prepared and

submitted a technical assistance proposal for the State Association Turkmenhaly. ATAR

submitted the proposal to USAID/Turkmenistan, which submitted it to the Ministry of

Foreign Affairs of Turkmenistan. ATAR’s proposed assistance included training for

carpet industry representatives, facilitation of business-to-business matchmaking events

for carpet industry officials to meet potential business partners, preparation of an

export promotion strategy for the Turkmen carpet industry, and facilitation of

Turkmenistan’s participation in the DOMOTEX carpet exhibition in Germany.

2.4.B. TRANSIT SUPPORT

To increase trade in the region, in 2017, ATAR met with representatives of

transportation and logistics companies in Ashgabat to assist with identifying Afghan


freight forwarders to transport cargo from Turkmenistan to Afghanistan and from

Turkmenistan to Tajikistan via Afghanistan. In March 2017, ATAR, together with

MOTCA and ACCI, organized a conference call between a Turkmen transportation and

logistics company and an Afghan transport operator to discuss transporting goods from

Turkmenistan’s Caspian Sea port Turkmenbashi to Dushanbe, Tajikistan, via Afghanistan.

In addition, at the request of the Balkh Chamber of Commerce and Industries (BCCI),

ATAR visited the State Production Association “Turkmen Cement” in 2017 to

determine the potential for Turkmen factories to export cement to Aqina, Afghanistan

by railroad. ATAR also met with an Afghan embassy officer in Ashgabat to present a

new government decree on fees for transport operators entering Turkmenistan.

2.5. UZBEKISTAN

In a significant development in U.S.-Uzbek cooperation, ATAR provided the first

USAID-funded support to the Uzbekistan Customs Committee in more than a decade,

training 21 customs officers in May 2015. The program aimed to familiarize Uzbek

customs with modern border management concepts, including risk management and

assessment, advance information, AEOs, supply chain security, information exchange

(customs-to-customs and customs-to-business), and compliance measurement. The

training participants represented a cross-section of customs disciplines, including

inspectors from land crossings and the airport, currency control, valuation, human

resources, the training academy, and the Office of Internal Security.

Additional training workshops followed. In July 2016, ATAR conducted a four-day

training on risk management and e-declarations for Uzbek customs officials. Participants

included 24 customs officers, with seven officers from the regions. In October 2016, ATAR trained 25 customs officers on border management, including about border

control, cargo concealment methods, analyzing cargo documents, cargo examination

techniques, behavioral analysis and observational techniques, equipment for border

control enforcement, non-intrusive inspection, and currency smuggling methods. In April

2017, ATAR delivered a training on customs enforcement of intellectual property rights

for 22 Uzbek customs officers in Tashkent. The training covered the global intellectual

property economy and the impact of counterfeit trade, intellectual property

enforcement standards, intellectual property provisions in the Uzbek customs code, the

role of customs in intellectual property rights enforcement, and other topics. To

complement the training, ATAR developed a guide, titled “Uzbekistan Customs

Intellectual Property Rights Enforcement Guidance for Practice and Implementation,” to

support implementation of intellectual property border provisions in the new customs

code. The guide was provided to Uzbekistan’s Customs Committee in July 2017.

In addition to its efforts to facilitate trade through its support to the Customs

Committee, ATAR worked to address transit challenges. In 2016, ATAR completed a

trade-route mapping study to identify optimal and feasible transport routes available for

Uzbekistan in reaching the Middle East, in particular Dubai and New Delhi. ATAR

collected data from transport operators, logistics and freight forwarding, business

associations, the Afghan and Indian embassies, the World Bank, and the Asian

Development Bank to determine constraints and legal and regulatory challenges along


nodes and stretches of selected routes. The Uzbek Chamber of Commerce and

Industries and Association for Development of Business Logistics assisted with data

collection. The study was designed to help support the promotion of a bilateral

agreement on transit and transport between Afghanistan and Uzbekistan and

identification of improvements on the Afghan routes.

To promote trade with Uzbekistan, ATAR supported a BCCI-led delegation of five

Afghan businessmen at the Horticulture Export Promotion and Competition

Development Business Forum and a horticulture exhibition in Samarkand in April 2017.

The event — which drew more than 200 traders and officials from Central Asia,

Europe, and the Middle East — was organized by USAID’s Competitiveness, Trade and

Jobs project and the State Committee of the Republic of Uzbekistan for Assistance to

Privatized Enterprises and Development of Competition. As a result of the business-to-

business meetings on the first day of the forum, the Afghan traders signed five letters of

intent valued at $1,830,000, primarily for Uzbek exports to Afghanistan. One letter of intent was signed with the Uzbek company Sebazor to purchase $30,000 worth of

Afghan saffron.


COMPONENT 3: IMPROVED

CUSTOMS ADMINISTRATION

Under its third component, ATAR supported customs reform to facilitate trade, help

Afghanistan fulfill its international commitments, and support the Afghan government’s

capacity to generate revenue through customs revenues mechanisms in a manner that

facilitates sustainable economic growth and trade. To meet this objective, ATAR

supported the ACD to improve monitoring and oversight, enhancing ACD’s ability to 1)

use and sustain modernized customs systems, 2) increase the efficiency and

transparency of customs procedures at border-crossing points and inland customs

depots, and 3) support sustainable capacity building mechanisms.

1. AFGHAN NATIONAL CUSTOMS ACADEMY

To develop capacity at the ACD, during the project’s first year, ATAR assessed training

needs and reviewed basic training materials for customs officers at the Afghan National

Customs Academy (ANCA), the ACD’s training center. ATAR assisted ANCA with

preparing new, improved training materials as part of an advanced customs training

package. This included modifications to the Border Management Task Force’s basic

training course, and the development of five enforcement-related training modules on

risk management, automated targeting, risk profiling, intelligence, and pocket notebook

usage. In addition, ATAR developed 12 training modules covering management, mobile

verification teams, airport training, examination and search techniques, train-the-trainers

techniques, and basic customs training. The modules included trainers’ notes, exercises

for giving and receiving feedback, and training evaluation forms. Furthermore, ATAR

delivered a policy and procedure manual that detailed the administration of the academy

and assisted ANCA with developing standard operating procedures in stock control,

audit of equipment, training plans, and specialist trainers.

New developments and stakeholder needs shifted ATAR’s focus for ANCA in late 2016.

In November ATAR assisted ACD and ANCA management in the preparation for the

formal re-opening of the Customs and Tax Academy (CTA), a modification of ANCA

that incorporated the Afghanistan Revenue Department (ARD) training unit. This

assistance included the preparation of the academy library, a search and examination bay

for practical training, and ensuring that all classrooms were set up and equipped.

On December 5, 2016, the minister of finance inaugurated the CTA. During the

opening, the director general of ACD expressed his appreciation to ATAR for its

assistance in preparing the facility and in organizing the inauguration. Invited guests

received a tour of CTA’s facilities along with a demonstration of cargo examination

using both intrusive and nonintrusive equipment.


Following the launch of the CTA, ATAR provided support and oversight in its training

programs. In January 2017 ATAR finalized the new academy curriculum, covering all

basic, intermediate, and advanced training courses, reviewed and systemized all training

materials to ensure training subjects were available in English and Dari. In total, ATAR

create 41 training modules for ANCA and the CTA. ATAR also monitored and

supervised the first and second rounds of ACD’s basic customs training to ensure

appropriate implementation of modules and assisted CTA in completing pre-course

preparation for the second round of basic customs training for 50 provincial and

headquarters employees. In addition, ATAR conducted an orientation session on the

international training facilitation process, the international training policy, and related

forms and formats for the CTA’s international training unit. As a result, in May 2017, the

academy started its first and second basic training course for 50 and 100 officers,

respectively. In the final few months of the project, the ACD approved CTA policies and

procedures developed with ATAR support, and the CTA has settled into a “business as

usual” mode.

2. MODERNIZATION AND SIMPLIFICATION OF PROCEDURES

2.1. CUSTOMS VALUATION

The Customs Valuation Agreement (CVA) is one of the WTO’s most complex agreements. The agreement provides an internationally agreed upon and consistent

method for valuing goods for the purposes of applying custom tariffs. Correct

application of these valuation methods is critical, as incorrect valuation of goods leads to

incorrect tariff fees being applied. Improper customs valuation methods in turn render

trading costs unpredictable and undermine the practical value of mutually negotiated

tariff rates.

Minister of Finance Ekil Hakimi (third from right) and other Afghan and U.S. officials cut the

ribbon at the opening of the Customs and Tax Academy in Kabul in December 2016. The academy

was launched with ATAR support.


To support Afghanistan’s efforts toward fulfilling the WTO CVA — as well as improve

the ACD’s valuation practices and procedures — ATAR assisted ACD with the

transition from an old valuation manual into one that was fully WTO compliant. In 2016,

ATAR assisted ACD with establishing a formal body for Customs Valuation Appeals to

ensure systematic analysis and regular communication with traders in case of complaints

related to the goods valuation applied by ACD officials. ATAR reviewed ACD’s

Valuation Department, including its legal framework and procedures, administrative

structure and operational linkages, corporate planning framework, public awareness and

outreach of training opportunities, customs clearance and systems-based control, and

revenue evasion response. In addition, ATAR distributed a training-needs questionnaire

at ACD and regional valuation units, with 31surveys returned for analysis. Based on the

results, ATAR began developing a practical and user-friendly valuation program. ATAR

also arranged for staff of ACD’s valuation department to access WCO e-learning

programming to build knowledge of customs issues.

Meanwhile, ACD implemented the valuation module into Automated System for

Customs Data (ASYCUDA) at major inland customs depots (ICDs) and border crossing

points (BCPs) to enforce usage of unified customs valuation criteria, stored in

ASYCUDA, in all Afghanistan. In late 2016, ATAR developed comprehensive training

materials on the goods valuation methods and together with CTA delivered basic and

advanced valuation training to the 12 customs officials working in the Valuation

Departments in headquarters and provinces. ATAR also developed a training-of-trainers

manual on customs valuation and delivered 22 sessions on customs valuation training to

eight ACD and ANCA officials who have the capacity to train others.

ATAR also assisted ACD with preparing the valuation procedure, which will have direct

impact on the ASYCUDA selectivity to the red, yellow, and green channel based on the

minimum, average, and high value of the declared goods. The final version of the

procedure was handed to ACD in June 2017. ATAR also developed informational

booklets on WTO valuation requirements that is used to raise awareness both at the

ACD and among the trade community. The booklets were provided to the ACD

Technical Directorate and to more than 100 members of the Afghanistan Chamber of

Commerce and Industry.

Finally, in 2017, ATAR supported ACD in organizing a team of officials from Post

Clearance Audit, Risk Management, and the Valuation Unit to collect data to update

ACD’s valuation database. As a pilot, ACD focused on valuation of mobile phones,

cigarettes, cement, and construction steel. With ATAR assistance, ACD updated the

valuation commodities of 140 brands of cigarettes in the database, consisting of 200

tariff specification codes, and cross-matched local market prices with those in the

database.

2.2. E-PAY

To modernize how customs-related duties are collected on behalf of the Ministry of

Finance and to bring more efficiency and transparency in revenue collections made from

customs duties, ATAR continued the work started under TAFA II to introduce an


electronic payment (E-Pay) system for

customs. ACD duties and taxes have

traditionally been paid in cash, with a

trader or customs broker making a

payment at the Da Afghanistan Bank

(DAB) branch located inside the customs

location processing the declaration.

DAB, which holds ACD’s customs

revenue account, would then make a

manual update to ACD’s ASYCUDA

system to notify customs agents at ICDs

and BCPs to release goods. To

streamline the process, ATAR worked

with DAB and ACD to develop an E-Pay

system of customs duties that would allow importers to pay customs duties at

any commercial bank in Afghanistan by

facilitating bank transfers to ACD’s

customs revenue account via DAB’s

clearance and settlement system. DAB

would then automatically notify ACD

through the ASYCUDA system to

release goods. The amount traders pay is

determined during the declaration

process after goods are registered in

ASYCUDA by the customs official.

While the e-payment option is designed

to reduce the administrative burden associated with payment of customs duties, as a

payment routing system, it cannot control how goods are valued by traders and

customs agents at the time the ASYCUDA entry is made and before duties are paid.

Customs officials determine the value, origin, Harmonized System code, quality, and

quantity of goods, which is entered into ASYCUDA to automatically calculate the

amount of customs duties owed. In other words, the e-payment system is not designed

to address corrupt practices at the customs clearance stage when the value of goods is

determined before being entered in ASYCUDA. When a figure for customs duties is

generated by ASYCUDA, the trader then brings the receipt to DAB or the commercial

banks for cash or e-payment.

ATAR worked with DAB and ACD to reach agreement on committing to electronic

payment; to determine systems integration needs between ACD, commercial banks, and

DAB; and to develop standard operating procedures for customs to be collected

through commercial banks. These processes were revised over time as ACD and DAB

upgraded systems. ATAR also conducted outreach using fliers, posters, and stand

banners to introduce and encourage the use of e-payment at customs locations. ATAR

supported ACD with the training of its ICD and BCP customs staff, as well as 55


The E-Pay system is promoted through posters and

banners at HKIA’s one-stop shop.


percent of brokers who manage the customs duty payment process on behalf of traders.

DAB managed the training of commercial banks.

With ATAR’s support, ACD and DAB launched an extended pilot phase of e-payment

of customs duties in May 2015 in HKIA and ICD. Major communication companies such

as Etisalat, Afghan Wireless Communication Company, MTN, and Roshan began using E-

Pay for their customs duties at HKIA. With their imports of expensive, high-tech

equipment and large boxes of pre-paid phone cards, Afghanistan’s five major

telecommunications companies account for half of all the customs duties collected at

HKIA in Kabul.

Following the pilot at HKIA, in December 2015, ACD officially launched E-Pay in Mazar-

e-Sharif. With ATAR support, E-Pay became operational across Afghanistan by the end

of 2016. This includes all of Afghanistan’s ICDs and customs BCPs except for customs

sites in Khost and Paktia, which were inaccessible due to security concerns. However, technical and connectivity preparation have been completed at these sites, and ACD is

prepared to deliver training to staff soon to enable the sites to go live. While the launch

of E-Pay represented a major milestone for the ACD, uptake was lower than anticipated

for several reasons. These included:

• Delays in rollout and implementation of e-payment due to prolonged periods spent

on stakeholder buy-in and readiness during times of leadership turnover, and

divergent priorities at ACD.

• Continued collection of cash payment of customs duties by Da Afghanistan Bank

(DAB, Afghanistan’s Central Bank) at customs sites, therefore maintaining the option

to pay in cash and avoid e-payment through commercial banks.

• Long processing times for e-payments due to commercial bank branches located

outside customs sites and additional manual steps, which incentivizes traders to

continue paying in cash via faster DAB payment process.

• Bank fees and requirements associated with strict anti-money laundering regulations

(absent in current DAB transactions) that deter traders from using commercial

banks and incentivize them to continue paying customs duties in cash directly

through DAB.

• Distrust and lack of familiarity of traders (or brokers) with commercial banks

To help mitigate these challenges, in January 2017, ATAR presented the New E-Payment

Strategy, based on the replacement of the DAB branches in customs with commercial

bank branches to offer traders the possibility of using modern cashless means of

payment. After several months of meetings with different stakeholders, ACD selected

Azizi Bank as a future partner for collecting customs revenue in ICDs. However, this

process suddenly stopped with the appointment of a new customs and revenue deputy

minister. In early 2018, as the project was closing, a new bank selection process was

launched, and three banks partially owned by the state — EmiliBANK, PashtunBank, and

New Kabul Bank — were selected, despite their smaller footprint than Azizi Bank.


Despite the challenges to implementation, the potential of the e-payment approach for

customs duty collection is highly promising. This is underscored by the number of

activities under way to resolve key challenges to increasing adoption of E-Pay, including

acceleration of processing times through implementation of a new clearance and

settlement system between commercial banks and DAB and the planned establishment

of commercial bank branches at ICDs and BCPs. According to the ACD, E-Pay

transactions were increasing between June and August 2017, as were customs revenue

compared to the same period in 2016. As of August 2017, more than 2,100 e-payment

transactions have been completed, with a value of more than $32.2 million in customs

duties. At HKIA, 18 percent of payments were made through e-payment from

November 2016 to June 2017. Other government agencies also have begun to express

interest in the system, illustrating the long-term potential for electronic payments.

2.3. IMPLEMENT RISK MANAGEMENT SYSTEMS

Over the past decade, Afghanistan has seen a rise in imports and exports. In the past,

ACD policy required that all imports and exports be subjected to a physical

examination; this caused delays in clearing goods and was an inefficient use of staff

resources. For this reason, ATAR worked throughout implementation to align

Afghanistan to international standards in risk management that would allow it to use

limited resources to identify consignments most likely to pose a risk. Such risks include

revenue loss through undervaluation, misclassification, or smuggling as well as

interdiction of prohibited goods such as narcotics or pre-cursor chemicals. On the

other hand, under risk management, traders and brokers with a documented history of

compliance with ACD’s laws and requirements face minimal to no intervention.

Prior to ATAR, ACD had implemented some risk management measures, beginning in

2012. To determine their effectiveness, ATAR monitored risk management at most

ICDs throughout 2014. While many of the basic principles were followed at a working

level, the project identified areas for further improvement, particularly the configuration

and use of ASYCUDA. ATAR’s discussions with ACD staff and visual inspections of the

system identified a failure to use certain important modules, including the ASYCUDA

Inspection Act, which is used for recording results of examinations; examiners notes,

used for advising an officer on why a consignment was flagged for inspection; and

random selectivity, used for identifying and selecting a random percentage of

consignments for inspection.

During its assessments, ATAR further determined that ACD used tariff code-specific

risk profiles. These profiles, which select consignments purely based on the type of

commodities, do not support trade facilitation. Though a useful and legitimate profiling

technique, when used in isolation this “catch-all” approach does not differentiate

between compliant and non-compliant importers. Therefore, beginning in 2014, ATAR

worked with ACD’s risk management unit to develop profiles that consider infraction

and historical data based on broker, importer, and origin.

With ATAR support, an ACD risk management working group met for the first time in

June 2015. Since then, the working group has met periodically and has agreed on


changes to risk management, most notably the reduction of intervention rates at the

Jalalabad ICD. The working group also took steps toward implementing random

selectivity through ASYCUDA. This would allow ACD to select a small percentage of

consignments for intervention that would otherwise not be selected to test the risk,

confirm the assessment of a consignment, or allow ACD to change risk profiles

accordingly.

To allow practitioners to extract appropriate data easily, ATAR developed 13 report

templates that were coded within ASYCUDA. The data was used to inform ATAR’s

assistance to ACD in risk management areas and included intervention percentages,

compliance assessments by location, use of random selectivity, and performance of

regional risk profiles (i.e., those that yield the greatest number of infractions).

To measure progress and inform future risk-management activities, in late 2016, ATAR

completed a gap analysis of the ACD Risk Management Unit and developed specific recommendations for improving risk management operations in ACD. This included a

new structure for the unit and detailed job descriptions for all positions within it.

Furthermore, ATAR supported ACD to develop a new risk management policy. This

policy was approved by the ADC director general in June 2017 and awaits approval

from the minister of finance.

Building on this policy, ATAR helped the ACD to create five multiple-criteria risk

profiles using WCO risk-profiling methodology. Two of the profiles target consignments

through HKIA, and three target consignments at Herat’s ICD. In early 2017, after three

months of implementation, ATAR found that the profiles were still negatively affected by

rules that divert commodities from green lanes to red lanes via a separate valuation risk

profile. As a result, ATAR organized a meeting with the valuation team to review these

rules and recommended that the valuation team be included in the Risk Management

Working Group to avoid parallel risk management efforts at ACD. ATAR also

recommended developing a new standard operating procedure for the creation of

valuation profiles and to include the valuation profile in any multi-criteria risk profiles

developed in the future. The standard operating procedure was finalized in August 2017

and awaits ACD approval.

Throughout the project, ATAR developed and delivered training to ACD staff, including

those at ICDs and BCPs. Subjects included basic and advance risk management as well as

data analysis for the creation of multi-criteria risk profiles.

2.4. ENHANCE THE DEVELOPMENT OF POST CLEARANCE AUDIT

Post clearance audit (PCA) or audit-based controls are defined by the RKC as measures

by which customs will satisfy itself as to the accuracy and authenticity of declarations

through the examination of the relevant books, records, business systems, and

commercial data held by persons concerned. Post-clearance audit is a critical control

methodology for customs and other border regulatory authorities as it enables them to

apply a multi-layered, risk-based control approach by moving from a strictly transaction-

based control environment to a stronger audit-based administration.


In 2016, ATAR began working with ACD’s director of operations and the PCA team

manager to prepare a gap analysis to determine the current status of Afghanistan’s PCA

practices and what was needed to comply with WCO and international standards. The

analysis found that about 60 ACD staff in the headquarters and provinces were

performing activities under the umbrella of PCA. However, these activities were more

related to transactional documents verification than to PCA; ACD staff were

undertaking these activities prior to the goods being released instead of doing them

after clearance, in importer premises. Moreover, PCA staff selected and inspected

declaration forms randomly, without any application of risk management principles. If

infractions were found, the inspecting officer wrote the infraction report on the back of

the paper declaration form and did not update ASYCUDA. This resulted in the loss of

information necessary for the future use of risk management tools. ATAR also

determined that customs legislation was insufficient to support a robust PCA approach

for several reasons. The PCA mandate was linked to frontier activities instead of a central compliance-based function. Existing documents were too focused on linking PCA

to high-risk transactions and enforcement-related activities. There were no formal PCA

guidelines and associated working documents or a well-documented, compliance-based

audit plan. Finally, PCA personnel were not trained in audit techniques and worked in

isolation from the risk management and intelligence units.

To address these gaps, ATAR submitted a PCA implementation plan to ACD, detailing

the strategic, operational, and legislative changes that need to be made to comply with

WCO and international standards. In addition, ATAR worked with the legal team to

draft a new PCA Procedure Manual within this new legal framework and ensure

alignment with WCO rules and regulations for PCA. This document was submitted for

ACD and the Ministry of Finance for approval, which was granted in December 2016.

Furthermore, in 2017, ATAR developed a new risk-based PCA structure, with detailed

job descriptions, and set up the provisions for establishing AEO and Traders

Compliance Criteria in compliance with WCO standards, considering the Afghanistan

reality and capacity of the customs service. ATAR also helped to establish a trilateral

committee composed of the PCA, intelligence, and risk management units to facilitate

stronger interdepartmental cooperation that was critical to allowing the PCA team to

identify the most suitable criteria to select companies for audit.

Finally, in 2017, ATAR also developed a compliance model and the PCA unit’s first

annual audit plan based on the 20/80 principle (i.e., 20 percent of traders are responsible

for 80 percent of revenue income). To this end, ACD referred 692 traders to the risk

management committee (comprising PCA, risk management, valuation, and tariff teams)

for application of risk management criteria and selection of the audit targets.

2.5. ADVANCE RULING

In July 2017, ACD completed implementation of one of the WTO TFA requirements:

advance ruling function, which allows compliant traders to request that ACD to issue a

binding decision on goods tariff classification, or their origin, or their customs value for

the future transactions, effective in all customs stations across Afghanistan for the


certain period of time. This followed the establishment of the Advance Rulings Unit with

ATAR support in March 2017.

Furthermore, ATAR completed a Manual on Administration of the Binding Decisions

Program with standard operating procedures for ACD’s use.4 The manual covers all

steps required to process an application for a binding decision (e.g., registering an

application, rejecting an application, assigning an application, requesting additional

information, withdrawing an application) as well as all processes required to manage

binding decisions once issued (e.g., extending the expiration date, revoking or annulling a

binding decision, preparing a decision for publication). The manual includes templates for

notifications and forms for these processes, as well as guidelines for protection of

confidential information.

To promote awareness of advance ruling, ATAR developed a brochure for traders in

English, Dari, and Pashto that ACD used for trader awareness sessions at the CTA. ACD also posted all advance ruling materials on the official ACD web page together

with application templates. By the end of July, ACD received three applications asking

for the binding decision on the tariff classification and customs valuation.

3. MODERNIZATION OF BORDER MANAGEMENT AND SIMPLIFICATION OF

CUSTOMS PROCEDURES

3.1. CUSTOMS CLEARANCE PROCESS MAP

At the request of the ACD’s director general, ATAR reviewed the ACD’s customs

“clearance blueprint,” the officially approved process map identifying all the steps during

the customs clearance, and to develop new proposals/processes for BCPs (transit) and

ICDs (goods clearance and release for free circulation). After analyzing the blueprint —

which contained eight and 14 steps for transit and clearance, respectively — ATAR

developed a new process map that streamlined procedures and limited customs

employees’ interactions with traders and brokers. Most importantly, the new blueprint

reflected only steps existing in ASYCUDA and eliminated duplication of manual registers

and unnecessary signatures. This would allow ACD to minimize clearance time and limit

opportunities for corruption.

ATAR decided to propose separate process flows for air and inland traffic to reflect the

differences in their operations. The process flows reflect WCO and EU best practices

and correspond to the ASYCUDA selectivity system. For all operations, ATAR

proposed a significant reduction in steps, as follows:

• For BCP transit, and reduction from eight steps to five.

• For air operations, a reduction from 14 steps for clearance of imported goods to

seven steps for the green channel, nine steps for the yellow channel, and 10 steps

for the red channel.

4 ATAR wrote the manual based on the binding decision program that is described in the draft

amendments to Afghanistan’s Customs Law and the Ministry of Finance’s Procedure on Advance Ruling on

Binding Decisions, which was approved.


• For inland operations, a reduction from 14 steps for clearance of imported goods to

six steps for the green channel, eight steps for the yellow channel, and nine steps for

the red channel.

The new blueprint was submitted to ACD for review in spring 2017 and was positively

received by the ACD. However, implementation was postponed until 2018 pending

procurement of required equipment, such as weight bridges, that will be supported by

multiple donors under the newly developed ACD Modernization Plan.

3.2. BORDER MANAGEMENT MODEL

Afghanistan faces the challenge of increasing trade with neighboring countries while

preventing illicit activities such as smuggling. Afghanistan’s Border Management Model

(BMM) establishes clear roles and responsibilities for ACD, which is responsible for

cross-border trade, and the Afghan Border Police (ABP), which is charged with

immigration and national security at the borders. The model encourages information

sharing between the two entities to curtail corruption, smuggling, and other illegal

activities. The aim of the model is also to reduce interaction with other agencies

operating at the border, thereby speeding trade across the border. To gauge the

effectiveness of the BMM, in Year 1, ATAR, ACD, and ABP assessed six sites to

measure their compliance with the BMM. ATAR had originally planned to assess eight

locations, but the project canceled trips to Zaranj and Spin Boldak due to security

concerns. See Exhibit 10 below for an overview of ACD activity locations.

To ensure a standardized approach to gauging compliance, ATAR developed a template

so that assessors identified all relevant aspects of BMM. Working with ACD and ABP,

ATAR traveled to each province and visited each BCP to inspect processes and speak

with key staff such as regional directors, BCP managers, and ABP commissars.

All locations inspected were fully compliant with the provisions of BMM. Furthermore,

ACD and ABP embraced BMM principles. Both parties said the implementation of BMM

standard operating procedures had resulted in a close working relationship. Although

there appeared to be no breaches of compliance with BMM, ATAR recommended that

ACD introduce a formal monitoring program. This compliance assessment, ideally

undertaken on a quarterly basis, would form part of ACD’s overall management checks

and ensure any future noncompliance is identified and reported to the headquarters.

Throughout the project’s second year, ATAR regional staff continued to monitor the

implementation of BMM through weekly reporting. These weekly reports highlighted

examples of best practices as well as any areas of concern that need to be raised with

ACD’s director general.

EXHIBIT 10. OVERVIEW OF ACD ACTIVITY LOCATIONS


3.3. CUSTOMS CODE AND CUSTOMS POLICIES

Throughout implementation, ATAR worked with the ACD, in particular its Legislation

Department, to review policies and ensure they complied with relevant laws and

international best practices. Where possible, ATAR streamlined the processes contained

within each policy to minimize barriers to legitimate trade. Activities are listed below.

• In 2015-2016, ATAR prepared an overview of ACD’s powers and responsibilities

regarding currency control and reviewed Afghanistan’s anti-money laundering

legislation and valuation procedures. In support of the overview, ATAR reviewed the

customs code and collected data on customs control over passengers’ baggage.

ATAR worked with ACD on a currency control policy and procedures at HKIA and

other border customs stations.

• In 2016, ATAR assisted ACD with reviewing tax and duties exemption agreements

and with developing a policy regarding the import of gold and jewelry to facilitate

customs clearance.

• In 2016, ATAR worked on the procedure for a customs equipment usage fee to

ensure compliance with the WTO TFA. Customs equipment usage fees cover the costs customs incurs in the procurement and maintenance of the equipment

required to scan, weigh, unload, and reload consignments.

• Also in 2016, ATAR also researched the legally required minimum information for

commercial invoices that traders are required to provide to customs. The research


found traders are not complying with the customs technical division. ATAR worked

with ACD to ensure traders are adequately informed of invoice requirements.

• To support compliance and enforcement of customs legislative documents, in 2016

ATAR prepared a handbook on customs administrative penalties. The handbook

provides simple explanations and guidelines for applying relevant penalties outlined

in the customs law.

• In late 2016, ATAR presented to ACD an overview of a multi-stage mechanism for

customs appeals within the WTO TFA, WCO RKC, and Afghanistan’s new customs

law. ACD decided to activate the appeals system.

• In 2017, ATAR reviewed ACD’s draft regulation of customs brokerage, as required

by the Afghan Customs Law. ATAR revised the format and content to ensure

alignment with international standards and national legal requirements and submitted

the brokers’ procedure to ACD for review.

4. IMPROVED CUSTOMS ADMINISTRATION

4.1. ANTI-CORRUPTION MEASURES AND THE ARUSHA DECLARATION

As a public body, the Customs Service must be transparent and trustworthy in its

actions. If citizens believe that they will receive objective and professional services, they

are more likely to obey laws and regulations. However, given low salaries and ample

opportunities for exercising discretion in making decisions that affect traders,

corruption is an issue for customs administrations around the world, including the ACD.

This can reduce much-needed public revenues, affect economic growth, and threaten

public health and safety.

Throughout 2014 and 2015, ATAR worked with the ACD director general to identify a

strategy for tackling internal compliance and staff misconduct. This included drafting

proposals for the development and implementation of two functions: a professional standards unit (PSU) and an internal compliance unit (ICU). Though based at

headquarters, these units would operate nationally and report directly to the ACD

director general. To complement these units, ATAR also proposed reforms to the

ACD’s post-clearance audit unit. Together, these actions formed the basis of a “three-

silo strategy” — based on the separation of functions of PCA, internal audit, and internal

investigations — to reduce corruption and increase compliance. In March 2015, the

ACD agreed with this strategy in principle and requested policy proposals to implement

it.

Internal Compliance and Investigations

Following a change in management in May 2016, the ACD determined to combine the

internal audit and internal investigation functions in one unit: the Prevention of Customs

Transgression Department (PCTD). ACD requested that ATAR develop a gap analysis

to map the current situation and describe the way forward. The analysis revealed

several operational and functional deficiencies in PCTD and reiterated the need for the

ACD to establish a centralized internal audit unit. ATAR also recommended developing


a long-term anticorruption strategy and an ACD Code of Conduct. ATAR also

recommended developing policies and procedures for the PCTD for conducting

planned, risk-based compliance inspections and for responding to allegations of

corruption or misconduct.

As a starting point, ATAR developed the Afghan Customs Department Internal

Compliance Unit Policy, which laid the foundation for the internal audit and professional

standards activities of the PCTD. This policy was approved by the ACD’s director

general in April 2017 and the customs and revenue deputy minister of finance in the May

2017. In the period between the development and the final approval of the policy, ATAR

assisted ACD with preparing two detailed procedures manuals to guide customs officers

in how to conduct, evaluate, record, and report internal compliance inspections and

investigations related to alleged misconduct, fraud, and corruption. ATAR also provided

a comprehensive two-week training program on internal audits and internal

investigations to all PCTD staff.

Between June 2017 and the end of the year, the PCTD completed 12 inspections in the

various customs entities. Of these, five were referred for prosecution to the Public

Attorney Office via the Internal Audit and Investigations Department of Ministry of

Finance. As a result, several dozen customs officers, including ICD managers, were

moved to different positions or removed from customs. As some of the cases involved

the evasion of duty payment, the ACD was able to recover at least part of the public

revenue that otherwise would have been lost.

Anti-Corruption Strategy and the Arusha Declaration

In late 2015, ATAR began to develop a long-term anti-corruption strategy for ACD at

the request of the Afghan Revenue Department’s Large Tax-Payer Office, which was

tasked with developing a strategy on behalf of both the ACD and the ARD. ATAR

drafted the ACD portion of the strategy and submitted it to the ARD. The following

year, the ACD’s director general requested that ATAR resume work on both the

strategy and a code of conduct.

ATAR recognized the opportunity to link ACD’s anti-corruption efforts to broader

international efforts to fight corruption in Customs administrations through the WCO

Revised Arusha Declaration. The Arusha Declaration seeks to enhance integrity and

prevent customs corruption through self-assessment, action planning, implementation,

and evaluation by using a series of WCO integrity tools that have been developed over

the course of a decade. To this end, ATAR developed a prepared comprehensive guide

on the Arusha Declaration and the obligations of the ACD following Afghanistan’s

signature of the declaration and presented it to the ACD’s director general.

ATAR submitted the draft anti-corruption strategy to the ACD in January 2017, and

efforts on the strategy continued throughout the first half of 2017. However, the

announcement of the first-ever visit of the WCO secretary general to Kabul sparked

new discussions on the possibility of Afghanistan signing a notification of intent to adopt

the Arusha Declaration to coincide with the secretary general’s visit. ATAR supported


the ACD director general to develop a paper and presentation on the Arusha

Declaration for the minister of finance and the president of Afghanistan. As a result,

President Ghani decided that Afghanistan would sign the notification of intent during the

visit.

On July 16, 2017, Minister of Finance Eklil Hakimi signed a notification of intent to adopt

the WCO Revised Arusha Declaration, marking a commitment to combat corruption in

customs administration. The signing took place at the Ministry of Finance and was

attended by WCO Secretary General Kunio Mikuriya and the director of the WCO’s

Regional Office for Capacity Building–Asia Pacific.

Following signing of the declaration ACD established a working group with ATAR

assistance. The working group included the ACD director general; the director of

operations; the technical director; the heads of human resources, legal, internal

compliance; and two ATAR members. Together, the working group developed a

detailed plan for the Arusha Declaration implementation that covers strategic and

operational objectives to be completed between 2017 and 2020 with the responsible

departments. By the decision of the ACD director general, this action plan became the

implementation path of the Anti-Corruption Strategy, which was revised based on the

inputs received from ACD senior management. The strategy now incorporates relevant

sections of the Islamic Republic of Afghanistan Strategy and Policy for Anti-Corruption and Administrative Reform and the Law on Overseeing the Implementation of the Anti-

Administrative Corruption Strategy and the Afghanistan Penal Code. It is also aligned to


WCO Secretary General Kunio Mikuriya, center, and Afghan and WCO officials attend the signing

of Afghanistan’s notification of intent to sign the WCO’s Revised Arusha Declaration at the

Ministry of Finance on July 16, 2017. The purpose of the Revised Arusha Declaration is to increase

integrity and reduce corruption in customs administrations worldwide.


the ACD Human Resource Reform Policy approved by the Council of Ministers. Both

the implementation plan and the anti-corruption strategy were officially approved, and

activities are ongoing.

Code of Conduct

In late 2016, ATAR began work on the ACD Code of Conduct with the ACD’s human

resources and legal departments. The code of conduct is a comprehensive document

that details the expectations of each customs employee, as well as intolerable behaviors

that will lead to disciplinary actions and possible termination of employment. The code

includes values that are held in high esteem in Afghanistan, such as honor and religion.

To complement the rollout of the code of conduct, ATAR also developed an Integrity

Training Module and trained CTA trainers on the delivery of the training.

The code was formally approved in late 2017. ACD plans to circulate hard copies of the

Code, deliver training, and request all ACD employees to sign acknowledgement form

to be stored in individual employees’ human resources files beginning in early 2018.

4.2 INCREASING TIES TO THE WCO THROUGH DIAGNOSTIC ASSESSMENTS

Afghanistan’s signature of the notification of intent to adopt the WCO Revised Arusha

Declaration is the result of the ACD’s closer working relationship with the WCO,

fostered in part by the ATAR project. This relationship was also strengthened through

the ACD’s participation in a WCO diagnostic assessment conducted in Baku,

Azerbaijan.

In January 2016, ATAR facilitated an ACD request to the WCO to carry out a full

diagnostic assessment of the administration to serve as a baseline for further

modernization, reform and alignment with WTO commitments, including the TFA. The

impetus for the diagnostic was further strengthened with the appointment of a new

Director General in May 2016, who viewed the diagnostic as a key tool in establishing a

forward plan for modernization and reform and in setting a measurable baseline upon

which the performance of future modernization and trade facilitation investments can be

measured. ATAR supported the WCO in coordinating the event, including nominating

participants, supporting travel arrangements, sourcing research documents required by

the WCO, and facilitating a pre-diagnostic analysis with the ACD directors. ATAR held

a workshop with the ACD’s senior management team during which ATAR shared the rationale of the mission and prepared the ACD team to effectively contribute to the

diagnostic assessment. The diagnostic was completed in September 2016, with anti-

corruption, leadership, revenue stability, professional development and organizational

structure emerging as the top issues.

This diagnostic mission represented the WCO’s first significant engagement in

Afghanistan since 2003 opened the door to new avenues of support, including greater

exposure to developing countries’ effective use of WCO instruments and tools and

opportunities for collaboration with key regional actors, such as India. As a follow-up,

ATAR supported a second diagnostic mission to Kampala, Uganda in December 2016

that was tailored to address the ACD’s specific needs. These included the importance of


long-term strategic management and visioning in driving customs modernization and

reform; the importance of combining political will, partnerships, people management,

and professional development in a customs reform and modernization plan; and realistic

developing country solutions in addressing specific issues of integrity, central

coordination, and informal stakeholder relationships.

4.3. ENHANCING ACD HUMAN RESOURCES DEPARTMENT

Human resources are critical to increasing the quality of ACD’s services. To improve

ACD human resources practices, ATAR reviewed ACD’s policy and procedure

document regarding recruitment and staff appraisals in late 2016. ATAR reviewed the

document with a working group and provided amendments, comments, and additions.

The policy document emphasized that staff would be hired and promoted by merit

rather than directly on the basis of recommendation. ATAR also assisted a working

group led by ACD’s director of support and development with developing two

procedures on recruitment and training.

In addition, ATAR reviewed ACD’s human resources policy and procedures and its

performance appraisal policy to identify areas for improvement. ATAR recommended

changes to the recruitment, remuneration, and rotation policies, which ACD’s director

general and the Ministry of Finance reviewed for final approval. During the review of the

performance appraisal system, ATAR identified the need for ACD to cascade plans to

each division. As a result, ATAR developed action plans that will assist ACD in

determining performance measure and targets.

In early 2017, ATAR finalized the human resources policies after incorporating input from the director general of customs, the director of operations support, and ACD’s

human resource manager to align with the Civil Service Law of Afghanistan. ACD’s

review committee approved the policies, and ATAR completed translation into Dari and

Pashto. After reviewing the policies, ACD’s director general sent the documents to the

minister of finance for approval, which is still pending.

4.4. INCREASE GENDER REPRESENTATION AT ACD

Women comprise roughly 4 percent of ACD staff. ATAR began recruiting for an

internship program in late 2014 to place young university graduates at ACD for six

months to prepare them for a possible career at ACD or to offer them the foundation for a job in the trade sector. While ATAR focused on recruiting mainly women for the

internship program, the vast majority of qualifying resumes were from men.

The internship program in December 2014, with two women and seven men. The

students worked in ACD’s tariff, exemption, PCA, valuation, tariff research and

statistics, and transit departments. ATAR supported the ACD internship program

through regular meetings and daily workplace support. The interns completed their six-

month internships in June 2015. ATAR’s second internship program at ACD began with

the recruitment of two female interns in September 2015 and seven men in October

2015 for the program. Due to the continued gender gap, ATAR delivered a gender

awareness train-the-trainers course in January 2015 to seven trainers from ANCA.


With ATAR support, the ANCA trainers then led gender awareness courses later in the

month, with 21 male and 24 female participants. For more on ATAR’s internship

program, see the Women in Trade section under Component 2.

4.5. ENHANCING THE CAPACITY OF ACD MANAGERS

In 2016, ATAR began capacity building sessions with ACD’s new director general, his

advisor, and selected directors. Topics included roles and responsibilities of customs

and an overview of the RKC; international trade terminology and documentation;

revenue evasion in the customs environment; compliance management framework;

tactical enforcement activities; risk management; intelligence; mobile verification teams;

and investigations.

ATAR regional staff also completed content for management standards and a template

for management and site risk profiles. This was part of ATAR’s initiative to support the

capacity of ACD managers through the implementation of management standards,

management profiles, and site profiles, which will allow managers to continually review

their current capabilities against the perceived risk to customs and know how to treat

those risks. ATAR transferred the profiles to ACD and regional customs offices.

In October 2016, to support the WCO agenda of increasing the capacity of customs

officers and managers, ATAR procured a WCO accredited customs development

program for ACD key officials through the Center for Customs and Excise Studies at

the Charles Sturt University (CSU) in Canberra, Australia. Eight ACD employees began

the certificate program in January 2017.

With ATAR support, ACD’s director general and the CTA director took part in a study

tour from January 9 to12, 2017, at CSU. The tour, organized by the Australian Border

Force College, introduced the Afghan officials to modern container examination

equipment and customs operations and offered new perspectives on training, risk

management, and customs administration. Following the tour, ACD and the Ministry of

Finance signed a memorandum of understanding on customs education and training with

the CSU Centre of Customs and Excise Studies. The agreement aimed to establish CTA

as a WCO-accredited regional training center. On April 25, the MOFA approved the

memorandum.



Afghanistan National Customs Academy Director Nematullah Noor, , second from left, and ACD

Director General Reshad Popal, third from left, participated in a study tour to Charles Sturt

University (CSU) in Canberra, Australia, in January 2017. The study tour was part of ATAR’s

efforts to build management capacity at ACD.


COLLABORATION

ATAR’s success depended on its close relationship with the Afghan government,

specifically MOCI, ACD, the Ministry of Justice, and other ministries and government

agencies relevant to Afghanistan’s WTO accession and trade environment.

LINKS WITH RELEVANT AFGHAN GOVERNMENT MINISTRIES

ATAR worked with ACD, MOCI, and other relevant ministries and related entities such

as MAIL, MOPH, and ANSA by conducting meetings, training sessions, and working

groups to ensure that government officials were part of the decision-making process

and had a thorough understanding of topics such as the WTO agriculture agreements,

SPS, and animal health.

ATAR had local staff embedded at ACD and MOCI to work with the entities regularly.

Until late 2016, ATAR’s expatriate staff were unable to embed at ACD due to security

restrictions. The expatriate staff conducted meetings and short visits as possible and

relied on local staff that remained embedded with intermittent restrictions. ATAR began

working with ACAA to coordinate efforts to upgrade HKIA’s air cargo capabilities.

Following the launch of the Afghanistan-India Air Corridor in the spring of 2017, ATAR

began connecting exporters with ACCI to take advantage of the initiative. Towards the

end of the project, ATAR embedded two expatriate staff at ACAA and developed a

close working relationship with ACAA Director.

In March 2015, ATAR worked with EPAA to promote the idea of an Afghan export fund

and presented the concept to Harakat, an Afghan non-profit organization, as well as the

IFC and the U.K.’s Department for International Development. With the exception of

the Passage to Prosperity: India Afghanistan Trade and Investment Show, ATAR worked

with MOCI and EPAA on all trade events to help build its capacity to support exporters.

LINKS WITH OTHER DONOR AGENCIES

In support of the project’s activities in Central Asia, ATAR worked with other donor

agencies such as EU’s Border Management Program in Central Asia, GIZ’s Regional

Trade Facilitation project, IFC, UNDP, United Nations Conference on Trade and Development (UNCTAD), the World Bank, and the Asian Development Bank. For

example, in Tajikistan, ATAR worked with GIZ and Tajik customs to prepare an action

plan for the development of outstanding customs regulations. Also in Tajikistan, ATAR

delivered three presentations and moderated workshops at a regional trade facilitation

conference organized by EU-BOMNAF for Afghan and Tajik government officials and

donor representatives. In 2015, ATAR led discussions during a GIZ-sponsored regional

workshop on the WTO TFA and worked with GIZ to hold a WTO TFA roundtable in

the Kyrgyz Republic. UNCTAD and the United Nations Economic Commission for

Europe also participated in the regional TFA workshop.

In Kabul, ATAR partnered with the Ministry of Women’s Affairs to organize a two-day


exhibition in June 2016 to help businesswomen increase sales and raise public awareness

of their contribution to the economy. ATAR worked with U.N. Women to support the

participation of Afghan businesswomen in the “Made in Afghanistan” event that took

place in India.

In March 2017, ATAR coordinated with the ITC in finalizing the WTO TFA compliance

assessment conducted by ATAR and as ITC began developing a national export strategy

for Afghanistan.

LINKS WITH OTHER USAID PROJECTS

In preparation for annual tradeshows such as Demote and Gulfood, ATAR worked with

CHAMP and RADP-S in event planning and implementation. ATAR coordinated with

USAID’s FAIDA and USAID’s Assistance in Building Afghanistan by Developing

Enterprises (ABADE) program in preparation for Exhibition Afghanistan in December

2016, with ATAR and FAIDA jointly implementing the business-to-business component

and ABADE managing the business-to-consumer segment of the tradeshow. ATAR also

coordinated with USAID’s Women in Leadership and Development program for the

Women’s Empowerment Fair held April 25 to 26, 2017 in Kabul.

For the Passage to Prosperity: India-Afghanistan Trade and Investment Show, ATAR

played a stronger organizational role in overall event management while coordinating

with CHAMP and RADP-S to identify Afghan agricultural traders able to deliver

significant export deals. For all events, ATAR led logistical matters for traders and

government representatives, identified buyers, and provided communications support

such business directories, website development, pavilion design, and media outreach.

Throughout the project, ATAR worked with other USAID projects to promote Afghan

exports and discuss areas of cooperation and avoid duplication of efforts wherever

possible. In early 2015, ATAR liaised with USAID’s CHAMP, ABADE, RADP-S, and

FAIDA on events and activities such as a Kabul seminar on promoting exports to South

Asia and an agreement between EPAA and two domestic banks on better credit terms

for exporters. ATAR also liaised with CHAMP in researching trade and transit issues

with Pakistan, and worked with FAIDA to hold a trade finance roundtable in 2015. On

March 18, 2017, ATAR and RADP-S met with the first secretary of the Embassy of

Kazakhstan to discuss promoting and increasing agricultural exports to Kazakhstan. In

addition to CHAMP and RADP-S, ATAR coordinated with RADP-N to identify

exporters and consolidate exports for ATAR’s air cargo incentive program throughout

2017. ATAR worked with CHAMP to identify air cargo capacity of Air India and Turkish

Airlines and discuss air freight prices.

At ATAR’s project office in Tashkent, Uzbekistan, ATAR was co-located with USAID’s

Regional Economic Integration Activity with which it coordinated on regional trade

activities, including helping the project identify participants for the annual CATF events.

ATAR provided support to USAID’s Macro Economic Project in organizing the Astana

Trade Policy Conference: Expanding Central and South Asia’s Regional Trade, July 1-2,

2014, where four speakers from ATAR participated. ATAR also coordinated activities


with USAID’s REFORMA project in Kyrgyzstan. In Turkmenistan, ATAR researched the

market for Afghan exporters working with USAID’s RADP-W in early 2016. ATAR also

supported the U.S. Department of CLDP in its TIFA working group meetings in 2015.

In 2015, ATAR also supported Afghanistan’s participation in Central Asia Business

Opportunities Conference, which was organized by USAID’s Pakistan Trade Project to

enable Central and South Asian businesses to exchange information, establish

relationships, and meet government officials.


CHALLENGES AND LESSONS

LEARNED

The operating environment for any project in Afghanistan presents many challenges due

to the security situation and relatively low levels of capacity in both the public and

private sectors. ATAR faced the added complexity of working in Central Asian

Republics with largely closed and state-led economies, especially Uzbekistan and

Turkmenistan. The decades-old conflict between Pakistan and India, as well as

Afghanistan’s tense relationship with Pakistan, slowed efforts to further regional trade

agreements such as APTTA. Significant security restrictions and the political instability

leading up to and following Afghanistan’s presidential election in April 2014 also impeded

some of ATAR’s efforts with government entities. However, the project found that the following tactics facilitated its work, despite the challenging operating environment:

• Quantifying costs/benefits. Throughout its lifetime, ATAR solidified a reputation for

quantifying the costs/benefits of restrictions to trade and movement and access.

Evidence-based analysis provides a strong foundation for advocacy. ATAR analysis

was used by USAID and the broader donor community to inform and advocate for

change on a wide range of trade and movement issues. This is particularly important

in an environment with many strong, vested interests and few trusted, non-politically

biased sources of information.

• Establishing a close collaborative relationship with USAID/Afghanistan. This relationship,

established from the project’s inception, allowed ATAR to stay abreast of the major

changes occurring within the USAID mission. Close collaboration between USAID

and the ATAR technical team allowed the project to respond efficiently and

effectively to changing conditions.

In addition to these general lessons learned, below ATAR provides an overview of

challenges and lessons learned for each component.

COMPONENT 1: SUPPORT TRADE POLICY LIBERALIZATION

Throughout the project, maintaining government engagement in activities was a consistent

challenge. Political will to enact necessary legislation for WTO accession ebbed and

flowed as senior ministers turned over and the National Unity Government established

itself. Ministers changed their priorities based on more immediate needs and sometimes

delayed implementation of reforms and legislation. This turnover and stop-and-go

approach resulted in delays in Afghanistan’s accession to the WTO and impeded

progress fulfilling post-accession commitments. For example, in 2016 the deputy

minister of commerce and industry was replaced, and MOCI’s director general of

international trade resigned and was not replaced for more than a year. Similarly,

MOCI’s deputy minister of commerce was appointed to the post of Afghanistan’s WTO

ambassador in Geneva and additional effort was required by ATAR to bring his


replacement up to speed on WTO post accession activities.

ATAR learned that top-to-bottom training and awareness building at all levels of

counterpart ministries is imperative for continuous project implementation. Capacity

building at the lower levels of government and awareness of the benefits of WTO would

have encouraged new ministers to embrace the process more quickly and helped to

ensure that long-serving ministers didn’t waiver in their support. In addition, ensuring

that all ministry workers are adequately trained and educated on the issues and

processes would facilitate continuous implementation even in times of transition.

Afghanistan needs continued support to meet its post-accession commitments. ATAR was

only able to address at a basic level the management of trade dispute cases, both in

terms of defense and initiation and the related application of remedies to ameliorate

alleged trade abuses. Afghanistan has had almost no experience with trade dispute

litigation, arbitration, and resolution, but it may soon be confronted with complaints and disputes from trading partner nations. These are complex and highly challenging areas of

international law and economics. The MOF, as well as MOCI, need deeper and more

extensive assistance in training staff and in educating policymakers in other line

ministries to support effective coordination of both trade policy actions and litigation

preparation. The efficacy of the WTO’s dispute settlement provisions fueled much of

the argument for Afghanistan’s WTO accession. That efficacy remains essential to

ministries’ abilities to ensure that citizens understand the benefits of trade liberalization

via the world’s multilateral trading system.

In addition to economic growth through trade liberalization, Afghanistan must resolve

the challenges impeding its fulfillment of its WTO post-accession commitments. Most of

these commitments involve politically difficult legislative reforms, and subsequent to

Afghanistan’s WTO accession in July 2016, ATAR assisted relevant government

ministries with preparing legislation and refining arguments in favor of reform. In 2017,

USAID underwent a “re-scoping” of ATAR and requested for the ATAR team to refrain

from further engagement with Afghanistan’s efforts to fulfill its WTO accession

commitments. Afghanistan has agreed to fulfill these commitments before the second

anniversary of its accession (i.e., July 16, 2018), but no other WTO or trade reform

donor interventions are presently active in Afghanistan to support MOF and MOCI if

they encounter challenges in the fragile political landscape surrounding these required

but sometimes divisive reforms. In turn, there is a great risk that the benefits of WTO

accession and the associated goodwill that MOF and MOCI have cultivated with the

parliament and the trading community may be lost.

Although the list of post-accession commitments is long, several salient items are

included in the WTO Trade Facilitation Agreement (TFA), which Afghanistan ratified

contemporaneously with its WTO accession. Generally, this set of commitments

involves provisions for expediting the movement, release, and clearance of goods,

including goods in transit. The TFA also sets measures for effective cooperation

between customs and other appropriate authorities on trade facilitation and customs compliance issues.


While ATAR’s work related to the One-Stop Shop, the Revised Kyoto Ascension Plan,

the Arusha Declaration Draft, and risk management all represent progress toward

fulfilling post-accession commitments, a lack of continuity in USAID’s provision of legal

and policy support will ensure that none of ATAR’s customs-related interventions will

have resulted in post-accession commitment legislation by July 2018. WTO member

states that do not honor accession commitments risk diminished benefits of WTO

membership, and repeated, long-term failures to fulfill those commitments can lead to

expulsion and other undesirable consequences for that country.

COMPONENT 2: FACILITATE ENHANCED ACCESS TO REGIONAL MARKETS

Flexibility and persistence is not just a broad goal. It is an essential element of a successful

approach to facilitating regional trade relationships. ATAR navigated constant changes in

Central Asian governments and associated formalities for reintroducing the project’s

activities. ATAR was not officially launched in Turkmenistan and Uzbekistan in Year 1

due to delays in government procedures in accepting ATAR assistance. The Turkmen

and Uzbek governments were open only to very limited activities with very lengthy

bureaucratic procedures. Despite these challenges, regional staff in those countries

continued to work with USAID missions to propose assistance in improving the

countries’ trade environment. In one significant example of a breakthrough, ATAR

delivered training to Uzbek Customs in 2015, the first USAID event of any kind held

directly with Uzbek customs in over a decade.

In 2014, the conflict between the Kyrgyz Republic and Tajikistan regarding the Karamyk

BCP impeded ATAR’s work on customs cooperation. Due to the tense situation at the

border, advancing any effort related to joint border cooperation or framework for

customs cooperation was futile. Therefore, the project worked directly with the

countries’ individual customs administrations to align their procedures with international

best practices. This dispute also prevented further progress on the CBTA between

Tajikistan, Kyrgyzstan, and Afghanistan.

Working in the Kyrgyz Republic became more problematic during the second half of

2015 as the result of its cancellation of the bilateral agreement with the United States.

During the last two years of the project, the Kyrgyz government’s focus on adherence

to the Eurasian Economic Union and continual changes in its government created

obstacles in advancing trade facilitation initiatives. Meanwhile, Turkmenistan’s new

import tariff duties and political uncertainty in Uzbekistan following the death of its long-

time President Islam Karimov in September 2016 posed challenges. In addition, many

key Central Asian officials had chronic, security-driven concerns about cooperation with

Afghanistan.

Air is the best way to ship time-sensitive cargo; many perishables; and high-value, low-volume

goods. Given the significant challenges to land-based transit of goods via Pakistan, air

shipments have grown into an increasingly important alternative means of moving

exports, as they overcome political (border) constraints and help build domestic cargo

capacity, which in turn facilitates further trade. Investors look for a well-established air-


cargo capability during their due diligence phase before committing to bringing many

modern industries to Afghanistan. Furthermore, developing air cargo capacity in a land-

locked country is an essential national utility, much like Airline Passenger Service, a

phone network, internet connectivity, electric grid or water supply. It connects Afghan

commerce with the rest of the world in ways that surface transport can only offer

regionally.

Air cargo permits the rapid transport of time-sensitive goods without regard to national

borders, checkpoints or security concerns. At this stage, what Afghanistan ships is not

nearly as important as how it ships (by air) because nothing builds air cargo capacity like

actually establishing air bridges to new markets and regional hubs that offer connectivity

to multi-modal transportation to the rest of the world. Similarly, the short-term

subsidies (investment) being used to facilitate this capacity building are less important

than the long-term strategic objective of building a well-established national airlift

capability (also useful during emergencies where timeliness is critical). Creating this capacity should stimulate production and export of high-value, low-density products that

are ideal for transport by air. This airlift capacity will then become self-sustaining and

subsidies will no longer be required.

To further build the export potential and air lift capacity of Afghanistan, understanding

and designing interventions to address following challenges is critical:

• Promoting Afghan exports is heavily reliant on the commitment of the individual exporters;

most of whom are unwilling or unable to commit to terms and conditions for trade with

buyers across the world. There is little consistency over supply, quality or quantity of

goods that Afghan exporters can guarantee because exporters are not the

producers of goods, and merely act as merchant exporters for 80 percent of the

export commodities coming from Afghanistan. There is no concept of stock and sell,

and accordingly everything is aggregated on a ‘spot basis’ — a very disorganized way

of trading. Since the exporters are merchant exporters and do not have regular

suppliers, the quality differs with every export supply. The consignees on the other

side are based in a very regulated and controlled market and cannot afford such a

disparity.

• Nascent Supply Chain Model. Due to the irregularity in supply and volumes, the

logistical requirements of any given shipment are always determined on an

individualized basis. There are no volume projections or advance planning available

to cater to the shipping solutions required in the region. Furthermore, most of the

global freight forwarders and airlines do not service Afghanistan, making the few

available airfreight services providers less cost competitive. Afghan exporters were

initially skeptical of ATAR’s air cargo incentive program for this reason, and

exporters of fresh and perishable goods were particularly reluctant to participate

because of the cumbersome process for arranging a shipment. ATAR quickly

adapted and revamped the program to one in which goods were shipped with

greater regularity to warehouses in Dubai where they had access to multi-modal

shipment methods. From Dubai, freight forwarders could then take the shipments


on to their final destinations via road, sea, or air based on demands from

international buyers.

• Lack of awareness on customs regulations, documentation. The exporters are not

competent in preparing flawless shipment documentation and are not aware of

customs regulations to execute the shipment origin formalities. In the absence of

correct documentation, the consignee on the other end faces significant issues with

customs to clear the shipment. The shipment incurs a lot of extra cost due to

inevitable penalties and customs levies which makes the trade inviable and

uncompetitive for both parties.

• Inadequate infrastructure. Kabul has lack of infrastructure to handle cargo. The Kabul

Airport customs operates in a very small zone with limited facilities or processes for

consolidation. All categories of goods, such as, chemicals, machinery, tobacco, spare

parts, military and safety equipment etc. are being handled from the same premise.

Whereas, most of Afghan export products are edibles (Dry Fruits & Nuts and fresh

fruits), most of these products fail laboratory testing at destination country for this

reason. The temperature-controlled environment is also non-complaint.

• USAID Vetting requirements. All beneficiaries and service providers must be vetted in

advance as per USAID vetting requirements; a process that takes several weeks on

average. Exporters and service providers are typically unable to convince buyers for

extended delivery dates as they await these approvals, which has resulted in a loss of

business to beneficiaries in some cases. ATAR attempted to pre-vet potential

beneficiaries of USAID export assistance when planned shipments were known in

advance. To the extent possible, future programs should strive for proactive

communication and collaboration with USAID’s vetting unit in this regard.

• Low Value commodities. In general, 95% of the Afghan export goods are low value products. Trading of these commodities via air mode of transport is not

commercially viable unless supported by subsidies. Accordingly, focusing on the

smaller portion of high-value goods for air transport is recommended so as not to

subsidize non-sustainable goods shipment models.

Future efforts to further incentivize air corridor development should also be mindful of

several risk factors for freight forwarding service providers.

• No cargo insurance. Beneficiaries (Exporters) do not buy cargo insurance for their

goods. Non-availability of insurance coverage is a potential threat to the service

provider, exporter and all involved parties.

• Security & safety compliance. The existing Airport customs and cargo terminal is not

an IATA approved facility. Most of the global carriers like Emirates do not accept

cargo on their aircraft due this reason.


• Screening & Scanning for explosives, drugs and contrabands. Available equipment for

screening & scanning for various trade threats is not in line with the globally

accepted processes. There have been instances of detection of such irregularities at destination countries in past. Therefore, most cargo agents and airlines do not

accept cargo from local exporters. The lack of confidence in exporters and handling

infrastructure is a major risk for service providers.

Diversify support to multiple private sector associations. To maximize impact with limited

resources and taking into consideration the ineligibility for USAID programs to work

directly with the Afghanistan Chamber of Commerce and Industry (ACCI) -- the most

representative organization for the private sector in Afghanistan -- ATAR selected the

Afghan Exporters Club as an entry point to support the private sector. While focusing

on one association did increase impact and effectiveness, the narrow scope may have

limited the ability of the project to have a voice within the wider industry and/or impact

with other players. While the need for focus was clear, and working with the entire

industry of exporters would not have been possible, reducing ATAR’s focus to

essentially one organization, no matter how representative of a given segment, is

constraining. This was not a major challenge but may have implications for future project

design. It is highly recommended that in the future, a solid assessment of the exporters

association’s key strengths and weaknesses, and a targeted intervention plan to address

those issues, should be developed at the beginning of a project, thus assuring the

longevity of chosen activities.

Be prepared for the unique challenges of working with associations. Many Afghan associations

are weak in terms of their institutional structure and their membership base. Many

associations are not able to offer sustainable member services. Project initiatives need

to be tailored to fit the reality of each association and an evaluation of the level of

capacity of each association should be carried out before beginning activities, even if the

associations have been included under previous projects. Early signs of divergent

interests within AEC’s executive leadership signal that representatives of certain sectors

may wish to splinter off from this larger group in the future. For example, a cohort of

agriculture and fruit exporters within the AEC membership have expressed interest in

forming their own association to better represent the needs of their constituents, distinct from those of carpet or jewelry exporters for example. One recommendation

for future projects would be to set up sub-steering committees to widen the reach of

the project as AEC’s membership grows. Including more association members in

meetings and involving them in planning activities at the sub-committee level would

encourage their sense of responsibility for the association’s future. In either case, it is

important to clearly outline project goals and expectations from the beginning, and to

check back throughout implementation to make sure there are no misunderstandings.

Formal agreements with partner organizations are critical and should be established as early as

possible in the project. ATAR avoided many potential difficulties with partners by clearly

defining the roles and responsibilities of each, particularly in the case of our work with

the AEC. Formal agreements, such as a Memorandum of Understanding, were used to


secure commitment of partnership as well as detail exactly what each party’s

responsibilities are, and what expectations are from both organizations.

Leveraging other USAID project resources and activities is crucial to project success. ATAR

made considerable impact through supporting Afghan exporters at international trade

events both by organizing multi-sector USAID-hosted tradeshows, and sponsoring

exporters to attend established regional trade events. The most effective way to

leverage scarce project resources and maximize individual project impact is to connect

to other projects, donors, and the private sector. By combining resources to achieve

greater results or through alternate cost sharing arrangements, everyone wins. To

prevent duplication of efforts when multiple projects contribute to hosting such events

in the future, there needs to be close coordination among programs. This should be

undertaken by senior project personnel from all relevant donor projects and should

result in a written agreement that clearly delineates areas of responsibility.

COMPONENT 3: IMPROVED CUSTOMS ADMINISTRATION

Embedding advisors in director’s offices amplifies results. Since the days of TAFA, ATAR has

been embedding its advisors in the offices of senior-level directors of the ACD.

Embedding advisors in this way resulted in day-to-day skills transfer and provided the

directors with an easily accessible technical expert to discuss any issues. Over time,

security concerns regarding ACD in particular prevented the project from embedding

expatriate staff at ACD. Instead, the staff conducted visits and meetings at ACD where

possible and relied as necessary on local ATAR staff who continued to work at ACD

with intermittent security restrictions. ATAR also invited ACD to its compound for

training sessions and meetings. In the future, security conditions permitting, this

approach should be re-instituted at the earliest stages of USAID projects.

Regular reporting and elevating key activities to the MOF is critical. Although ATAR kept

senior officials at the ACD regularly apprised of progress, some messages were not

being communicated to the MOF. As a result, the finance minister was not aware of

many key activities that ATAR was working on in partnership with the ACD. In the

future, USAID implementers working with ACD should confirm that the results of its

robust reporting mechanisms are routinely transmitted to key stakeholders so they

receive regular briefings on project progress. Furthermore, any unjustified delays

caused by government staff should be reported to the director general and MOF at an

early stage. This would ensure that all activities are pushed forward as quickly as

possible while minimizing opportunities for unnecessary delays caused by government

staff.

Information-sharing between ACD, and DAB, and commercial banks is essential to realizing

gains from E-pay. ACD’s reluctance to provide DAB with access to ASYCUDA delayed

the implementation of E-Pay in 2014 and similarly throughout 2016, technical and

communication issues between DAB and licensed commercial banks hampered E-Pay

implementation. ATAR facilitated meetings between ACD and DAB to identify the

challenges and required information technology equipment to improve the system.

Concurrently, ATAR began individual meetings with private banks to encourage E-Pay


use. In consultation with key partners, ATAR recommends the following activities

should USAID wish to allocate resources towards e-pay activities in the future:

• Consult with the private sector to identify appropriate incentives for traders to

adopt e-payment;

• Support the transition of commercial banks to DAB’s on-site facilities at customs

locations;

• Support the facilitation of additional commercial bank agreements, like the one made

with Azizi Bank, to provide additional electronic payment methods to attract

traders, including point-of-sale kiosks at customs sites, mobile and web-based payment applications, and pre-loaded customs cards;

• Support e-payment awareness outreach to traders through ACCI and other trade

groups to inform traders about the availability and benefits of e-payment, as well as

the anticipated improvements to commercial banking services, including future

availability of bank branches located inside customs sites;

• Support updated training to brokers on DAB’s latest system upgrade (ICSS), as well

as training for commercial bank branches that have not received orientation on e-payment from their Kabul headquarters;

• Support ACD in developing and prioritizing targeted interventions in the customs

clearance processes where most corruption occurs, before payment slips are

generated by ASYCUDA to initiate the payment process.

Continued needs for capacity building at the ACD. The most important implementation

challenge faced by both ATAR and the ACD was and remains a near-term personnel gap

in qualified mid-career employees. This challenge is made more acute by the fact that

numerous senior officials within the ACD and parliament engage in nepotistic hiring

practices that result in their relatives and friends filling positions in customs without

meeting the basic requirements. Consequently, staff members are being promoted into

senior positions without the usual “time-in-service” that provides needed job

experience and professional skills on the part of those so promoted.

Because trade-related matters are intensely policy-driven and trade regulation is heavily

grounded in international treaty obligations, this deficiency in on-the-job experience of

junior officers is the Ministry’s single most critical institutional challenge. This challenge,

as well as continuing staff development over time, must be addressed by the ACD

through improved internal capacity that has yet to be fully developed. ATAR and other assistance programs have been able to provide professional training at levels that have

created better-informed, more skilled staff across most of the ACD directorates general

and agencies. However, looking forward, this type of professional training must be

provided continually and consistently as new personnel are recruited and existing staff

are promoted.

The work at HKIA’s OSS is not done. As a result of technical assistance from ATAR in the

form of upgrading the HKIAs OSS facility and network, the ACD has a greatly improved

the process and flow of export documentation and increased their staff’s technical

capacity to provide streamlined services. However, this technical capacity needs to be


matched by additional and continuing training of the OSS staff members as well as more

extensive training of all ACD professional staff in the use of data/information for routine

work tasks. This need will be evermore critical as international and domestic trade, in all

aspects, continues to be driven by information services and systems.


ANNEX A. AFGHANISTAN TRADE AND REVENUE

FINANCIAL REPORT

PROJECT PERIOD OF

PERFORMANCE

CONTRACT

BUDGET

TOTAL INVOICED

THROUGH JAN. 2018

CONTRACT

FUNDS

REMAINING

% OF TOTAL

THROUGH JAN. 2018

INVOICE

Afghanistan Trade and Revenue

Project

November 7, 2013 to

February 28, 2018 $77,754,267 $75,853,097 $1,901,169 98%

ITEM

COMPONENT 1 (SUPPORT TRADE

POLICY

LIBERALIZATION)

COMPONENT 2 (FACILITATE ENHANCED

ACCESS TO REGIONAL

MARKETS)

COMPONENT 3 (IMPROVED CUSTOMS AND

TAX ADMINISTRATION)

COMPONENT 4 (VAT)

INVOICED

THROUGH JAN.

2018*

TIME

U.S. National

Long-Term Technical Experts $1,615,002 $1,709,631 $1,438,290 $0 $4,780,023

Short-Term Technical

Experts/Home Office $2,045,457 $2,398,378 $1,679,312 $0 $6,146,130

Locally Hired Personnel

Third Country Nationals/Long-

Term Technical Experts/Short-

Term Technical Experts

$5,334,570 $5,188,000 $4,623,113 $121,539 $15,267,221

Cooperating County Nationals $ 4,133,233 $4,032,724 $3,680,823 $0 $11,846,780

Subtotal, TIME $13,128,261 $13,328,734 $11,421,537 $121,539 $38,040,155

MATERIALS

Travel/Transport/Per Diem $323,140 $436,775 $291,160 $0 $1,054,630

Allowances $910,165 $1,037,128 $810,294 $0 $2,759,985


Security $3,663,267 $3,895,417 $3,241,862 $0 $10,808,468

Equipment/Supplies $109,761 $280,514 $105,523 $0 $495,798

Subcontractors/Consultants $1,421,422 $1,572,216 $1,192,756 $34,452 $4,220,846

Other Direct Costs $4,811,948 $5,154,329 $4,204,787 $0 $14,178,641

Grants Under Contract $0 $0 $0 $0 $0

Indirect Costs $1,459,921 $1,538,547 $1,293,310 $1,723 $4,294,574

Subtotal, MATERIALS $12,699,623 $13,914,927 $11,139,692 $36,175 $37,812,940

Total, Time and Materials

(Invoice through January

2018)

$25,827,885 $27,243,660 $22,561,229 $157,714 $75,853,097

*The ATAR financial report is based on the January 2018 invoice and the data will be updated with the final invoice in the final monthly financial report.


ANNEX B. SUMMARY PERFORMANCE INDICATOR

TRACKING TABLE

No. Key Performance Indicators Unit of measure

Source

Base

line

Results and Targets

Results Results in Relation to Targets and Baselines

Y1 Y2 Y3 Y4 Y5 LOP

TOTAL LOP

TARGET Target

achieved

Result in relation

to target

Change from

baseline

Activity Goal: Business climate strengthened to enable private investment, enhanced trade, job creation, and fiscal sustainability through the critical Transition Period and continuing into the Transformational Decade

1 Growth in trade volume (import and exports, excluding transit)

percent ACD 0% 3% -4% 11% 12% 4% 26% 12% Yes 14% 100%

2 Change in World Bank’s Doing Business ranking for trading across borders indicator

global country rank

World Bank 184 184 174 175 175 n/a 175 177 Yes 2 9

IR1: Capacity of Afghan government to formulate and implement liberal policy framework for trade and investment strengthened

Sub IR1.1: WTO accession process finalized

3

Number of instances in which GIRoA requests for trade policy research and analysis can be provided by Trade Policy Analysis Unit (TPAU)

number TPAU 0 n/a n/a 20 2 0 22 8 Yes 14 22

IR2: Regional and global integration enhanced

Sub IR2.1: Enabling environment for enhanced access to regional markets established

4

Number of interactions between businesses (and other relevant groups) with government entities in the region involving policy reform dialogues

number ATAR 0 6 13 9 5 0 33 30 Yes 3 33

5 Business climate indicator (trade)* index value

ACCI/GIZ 19 32 -25.17 -11.38 -1.3 n/a -1.3 35 No -36.3 -20.3

6 Number of proposals accepted to harmonize customs procedures or documents on transit corridors

number ATAR 0 0 12 2 1 0 15 20 No -5 15

Sub IR 2.2: Benefits from enhanced market access expanded

7 Number of firms receiving USG capacity building assistance to export

number ATAR 0 92 212 347 392 17 1,060 850 Yes 210 1,060

8 Estimated self-reported value of new deals by ATAR supported participants in trade events

currency (US$; million)

beneficiaries 0 8.37 5.30 14.78 4.87 0 33.32 25.00 Yes 8.32 33.32

9 Percent of exports increased through air transport

percent ACD 0% 0% 73% 4% 12% 51% 51% 24% Yes 27% 51%

IR3: Revenue generation for fiscal sustainability strengthened through reforms and anti- corruption measures in customs and taxation

10 Growth in customs revenue (overall and per border crossing)

percent ACD 0% 0% -9% 24% 18% 2% 35% 3% Yes 32% 35%

BC Herat percent ACD 0% 0% -15% 31% 16% 7% 39% n/a n/a n/a 39%


BC Ningarhar percent ACD 0% 0% 0% 16% 5% 2% 22% n/a n/a n/a 22%

BC Nimrooz percent ACD 0% 0% 22% 27% 25% -13% 60% n/a n/a n/a 60%

BC Balkh percent ACD 0% 0% -12% 12% 66% 5% 72% n/a n/a n/a 72%

BC Kandahar percent ACD 0% 0% 8% 85% 32% -5% 120% n/a n/a n/a 120%

BC Farah percent ACD 0% 0% -9% 68% 13% -5% 66% n/a n/a n/a 66%

BC Andkoi percent ACD 0% 0% -55% -44% -18% 125% 9% n/a n/a n/a 9%

BC Kabul Airport percent ACD 0% 0% -7% 26% 11% -9% 21% n/a n/a n/a 21%


Source

Base

line

Results and Targets


Y1 Y2 Y3 Y4 Y5 LOP

TOTAL LOP

TARGET Target

achieved

Result in relation

to target

Change from

baseline

IR3: Revenue generation for fiscal sustainability strengthened through reforms and anti- corruption measures in customs and taxation

BC Kabul percent ACD 0% 0% 45% -19% -22% 6% 11% n/a n/a n/a 11%

BC Kunduz percent ACD 0% 0% -27% -25% -11% 127% 63% n/a n/a n/a 63%

BC Paktiya percent ACD 0% 0% 62% 65% -28% -48% 50% n/a n/a n/a 50%

BC Khost percent ACD 0% 0% -42% 29% -56% -93% -163% n/a n/a n/a -163%

BC Paktika percent ACD 0% 0% 35% 112% -39% 33% 142% n/a n/a n/a 142%

BC Kunar percent ACD 0% 0% 60% 62% -71% -98% -47% n/a n/a n/a -47%

BC Takhar percent ACD 0% 0% 1% 61% -53% -24% -15% n/a n/a n/a -15%

BC Post Parcel percent ACD 0% 0% -37% 29% 37% 7% 36% n/a n/a n/a 36%

BC Badakhshan percent ACD 0% 0% 76% -28% 65% 66% 179% n/a n/a n/a 179%

11 Rollout of e-pay at all ICDs and BCPs (percent payments processed via e-pay)

percent ACD 0% n/a n/a n/a 18% n/a 18% 75% No -57% 18%

12 Ratio of customs revenue collected to GDP

percent ACD, the World Bank, IMF

2.5% 3.5% 3.2% 4.1% 4.8% 4.3% 4.3% 20% No -15.7% 1.8%

Sub IR 3.1: Customs procedures to increase transparency, efficiency, and uniformity in the collection of revenue, performance of core functions, and facilitation of trade improved

13 Increase in customs duties (absolute) Afn billion ACD 0.00 -2.46 1.94 0.84 2.41 2.41 2.41 2.00 Yes 0.41 2.41

14 Number of declaration forms processed in each ICD’s in Afghanistan

number (thousands)

ACD 379.0 379.0 318.0 359.0 374.0 381** 381.0 386.6 No -5.6 7.6

15 Number of steps reduced or streamlined at border

number ADC, ATAR 0 0 0 2 0 0 2 6 No -4 2

16 Number of customs systems in line with international best practices adopted

number ATAR records

0 3 4 7 5 0 19 15 Yes 4 19

17 Number of risk management procedures adopted at customs depots

number ACD, ATAR 0 0 1 2 7 2 12 10 Yes 2 12

18 Number of training modules developed by ATAR

number ATAR 0 0 18 14 9 5 46 45 Yes 1 46

19 Number of audit cases selected using risk-based criteria

number ATAR 0 0 0 4 1 0 5 9 No -4 5

Cross-cutting and Gender Indicators

20 Share of cases yielding additional assessment (revenue) to cases selected for audit

percent ACD 0% n/a n/a n/a n/a n/a n/a 30% No No No


21 Person-days of training of key personnel in trade and customs regulation

person-days

ATAR 0 262 737 436 1,345 7 2,787 213 Yes 2,574 2,787

sex Male person-days

ATAR 0 220 609 371 1,262 7 2,469 n/a n/a n/a n/a

sex Female person-days

ATAR 0 42 128 65 83 0 318 n/a n/a n/a n/a


Source

Base

line

Results and Targets


Y1 Y2 Y3 Y4 Y5 LOP

TOTAL LOP

TARGET Target

achieved

Result in relation

to target

Change from

baseline

Cross-cutting and Gender Indicators

22 Percentage of participants reporting increased knowledge and skills in trade, transit, or customs

percent ATAR 0% n/a n/a n/a n/a n/a n/a 95% No -95% n/a

23

Number of public events held to discuss trade and business policy matters with stakeholders, the public, and the private sector

number ATAR 0 54 103 56 44 2 259 280 No -21 259

24 Number of consultative processes with private sector as a result of U.S. government assistance

number ATAR 0 7 11 6 0 0 24 25 No -1 24

25

Number of permanent professional positions allocated for women within MOCI, ACD, ANSA, MAIL and MOPH

number MOCI, ACD, ANSA, MAIL and MOPH

173 174 175 177 n/a n/a 177 175 Yes 2 4

26 Number of interns completing a six-month internship at GIRoA

number ATAR 0 9 26 32 32 0 99 100 No -1 99

sex Male number ATAR 0 7 13 12 12 0 44 n/a n/a n/a n/a

sex Female number ATAR 0 2 13 20 20 0 55 n/a n/a n/a n/a

27 Percentage of Afghan long-term female staff employed on ATAR

percent ATAR 0% 3% 19% 13% 19% 0% 14% 20% No -6% 14%

28

Percentage of participants reporting increased agreement with the concept that males and females should have equal access to trade and customs [social, economic, and political] opportunities (GNDR 4 F-indicator)

percent ATAR n/a n/a n/a n/a n/a n/a n/a 65% No -100% n/a

29

Percentage of participants reporting increased understanding and knowledge of gender-related issues in trade

percent ATAR n/a n/a n/a n/a n/a n/a n/a 100% No -100% n/a

30

Number of outreach materials developed and disseminated on gender-related issues in trade, transit, or customs

number ATAR 0 1 0 7 0 0 8 6 Yes 2 8


ANNEX C. SNAPSHOTS


SNAPSHOT

AFGHAN CARPETS REACH

DUBAI BY AIR Afghanistan’s exports

set to rise as traders

see value in exporting

by air.

Afghan products have growing appeal in Europe, India, and the

Middle East. However, Afghanistan’s ability to expand its

market access is hampered by its landlocked location.

Exporters using land and sea transportation often encounter

unpredictable trade barriers, poor security, and costly delays.

In the early hours of September 18, 2017, an IL-76 cargo

plane loaded with 36 tons of carpets and kilims valued at

more than $700,000 departed Kabul for Dubai, United Arab

Emirates, marking the first in a series of large air shipments

aimed at assisting Afghan traders to overcome regional transit

challenges. From Dubai, the carpets will be transshipped to

consumer markets in Germany and Italy.

USAID’s ATAR project organized the shipment and is

providing incentives to Afghan traders with capacity to export

significant volumes of high-valued goods. One such trader is

Abdullah Raman Qul, president of Afghan Bazar Carpets

Manufacturing Company, based in Marzar-e-Sharif.

“We began working with ATAR in June to explore alternative

ways to get our carpets to our customers in a faster and

more secure manner,” said Abdullah Rahman Qul. “Exporting

by air provides a faster delivery time, which gives us an edge

with our customers in Europe. It also has lower insurance

costs and helps us avoid security challenges involved in

transporting goods by road through neighboring countries.”

In addition to incentives, ATAR has established a logistics

system to facilitate air cargo shipments. ATAR has set up a

consolidation warehouse near the Hamid Karzai International

Airport (HKIA) to address limited airline cargo capacity and

help traders avoid storage and security issues at HKIA in the

event flights are delayed or cancelled. “We began bringing our

carpets to the warehouse in mid-August where they were

kept in a secure environment and properly weighed and

labeled before delivery to the airport on September 17,” said

Rahman Qul. “We are planning to export another 40 tons

through this new system.”

ATAR is also working with the Afghan Customs Department

to reduce the number of customs clearance steps at airports.

Together with Afghanistan Civil Aviation Authority, ATAR

has planned to modernize HKIA’s air cargo terminal and

facilitate air corridors between Afghanistan and countries

with growing appetites for Afghan products.

Workers at HKIA’s customs

zones unload bales of carpets

exported by Afghan Bazar

Carpets Manufacturing Company

on September 17, 2017 PHOTO: Ian Carver, ATAR

“Exporting by air provides a faster

delivery time, which gives us an

edge with our customers in

Europe.”

— Abdullah Rahman Qul of

Afghan Bazar


SNAPSHOT

AFGHANISTAN SIGNS ARUSHA

DECLARATION

Afghanistan commits

to combatting

corruption by signing

World Customs

Organization Revised

Arusha Declaration.

Achieving good governance and combatting corruption are

important priorities of the Afghan government. This is

especially the case for the country’s customs administration

with its frontline officers operating on the borders of six

neighboring countries. To help improve the situation,

USAID’s ATAR Project has supported the Afghanistan

Customs Department (ACD) to develop a code of conduct,

anti-corruption strategy, and other related policies.

On July 16, Afghanistan took a significant step towards

increasing customs integrity by signing up to the WCO

Revised Arusha Declaration, a non-binding instrument that

provides basic principles to promote integrity and combat

corruption within customs administrations.

Minister of Finance Eklil Hakimi signed the notification of

intent, the official procedure for committing to the

declaration, in the presence of WCO Secretary General

Kunio Mikuriya and the Director of WCO-Regional Office for

Capacity Building–Asia Pacific Kazunari Igarashi, ACD

representatives, and other government officials.

“Accession of Afghanistan to the Arusha Convention will help

us strengthen infrastructure and human resources capacity in

the customs department to develop the economy and collect

nation-al revenue,” said Minister Hakimi. “This is a useful tool

that will promote economic development, employment, and

trade with regional countries.”

The Arusha Declaration was drafted in Arusha, Tanzania, in

1993 and revised in 2003. From then on, it was called the

Revised Arusha Declaration. It states that corruption is the

main obstacle for achieving national goals such as revenue

collection, trade facilitation, and national security. Signatories

commit to principles such as leadership, transparency,

modernization, auditing and investigations, code of conduct,

human resource management, organizational culture, and

private-sector relations.

“The WCO is a house of the world customs departments and

we are interested in sharing our experiences with Afghanistan

in modernizing customs in Afghanistan, capacity building, and

better management of customs,” said WCO Secretary

Mikuriya.

The WCO’s Regional Director for

Capacity Building, WCO

Secretary General, and

Afghanistan’s Director General of

Customs (left to right)

participate in a meeting ahead of

Afghanistan’s signature to

commit to the Revised Arusha

Declaration on July 16, 2017. PHOTO: Aman Sadat, ATAR

“Accession of Afghanistan to the

Arusha Convention will help us

strengthen infrastructure and

human resources capacity in the

customs department to develop

the economy and collect national

revenue.”

— Minister of Finance Eklil

Hakimi


SNAPSHOT

AFGHAN EXPORTS REACH

SOUTHEAST ASIA First ever

Afghanistan-

Malaysian business

forum helps Afghan

exporters access new

market.

Afghan exports are gaining a foothold in Southeast Asia after

Afghan businesses negotiated almost $330,000 in deals at the

first Afghanistan-Malaysian Business Forum. The event,

organized with the support of ATAR, was held May 11 and 12

2017 in Kuala Lumpur, Malaysia, to strengthen the trade

relationship between Afghanistan and Malaysia.

Seven members of the Afghanistan Exporters Club, a private-

sector association established in 2016 with ATAR support,

participated in the event. The members struck deals to

export Afghanistan’s dried fruit and nuts and almond oil to

Malaysia and are in the process of finalizing other agreements,

including a $160,000 deal to export carpets to Malaysia.

For AEC member ASHK, a dried fruit and nuts exporter

based in Kabul, the event provided an opportunity to export

and sell as well as to understand local expectations and

market demand for long-term business dealings.

“We made a deal to export a container load of raisins and

apricots that will be sent in early June,” said ASHK’s chief

executive Abdul Shukoor Kushkaky. “In addition to this deal,

the business forum was an excellent opportunity to learn how

to access and take advantage of the huge demand of the

Malaysian market and beyond. The country can serve as a

platform to make connections and market our product to

other countries in Southeast Asia as well.”

The event drew more than 250 participants comprising

business officials, representatives of business associations, and

high-level government officials, including ambassadors from

countries in Europe, the Middle East, and Central Asia.

“This was not just a one-off event; I will be going back to

Malaysia to meet with buyers and to expand on the business

deals and relationships that we made during the event,” said

Mr. Kushkaky.” Being a member of AEC has proved highly

useful, and now it’s time to consolidate our successes from

the event.”

Afghanistan’s Deputy Minister of

Commerce and Industries

Mohammad Qurban Haqjo (left)

and Malaysia’s Deputy Minister of

International Trade and Industry

Datuk Haji Ahmad Maslan (right)

reach for a sample of

Afghanistan’s dried fruit and nuts. PHOTO: Shoukat Khurram, ATAR

“The forum was an excellent

opportunity to learn how to access

and take advantage of the huge

demand of the Malaysian market

and beyond.”

— Chief Executive of ASHK

Abdul Shukoor Kushkaky


SNAPSHOT

BUSINESSMAN FINDS BUYERS IN

DUBAI Gulfood Tradeshow

in Dubai convinces

Afghan trader to set

up local office to

increase exports.

Afghanistan’s fresh and dried fruits are gaining popularity in

the region after decades of conflict degraded Afghan

producers’ capacity to compete in international markets.

Despite growing appetite for such goods in countries like

India and the United Arab Emirates, regular supply continues

to be a concern for many importers and retail chains.

To enhance the connection between Afghan traders and

international markets and fill the growing demand, ATAR

supported eight Afghan traders at Dubai’s Gulfood, the

world’s largest annual food and hospitality tradeshow from

February 26 to March 2, 2017. The traders negotiated

$4,519,160 million in deals and $4,386,659 in potential deals

for fresh and dried fruits, nuts, vegetables, saffron, and juice

with more than 40 international buyers from 12 countries.

Fresh and dried fruits trader Abdul Fatah participated in

Gulfood as an exhibitor. His company, Jamshid Ramin Trading,

is well established in northern Afghanistan and has built up

important relations with businesses in Uzbekistan and India.

Abdul understood that his participation at Gulfood would not

only allow him to generate sales, it would help him gain access

to the large Middle East market as well.

“We made over $1,691,000 in deals for apricots, raisins, figs,

licorice and sesame and watermelon seeds with regional

buyers,” said Abdul. “But aside from these sales, this year’s

Gulfood convinced us to set up an office in Dubai to get

closer to customers and buyers in this region. Dubai is a

world trade center and we have already started the

registration process to establish this office.”

As part of USAID’s goal to double Afghan exports by 2020,

the ATAR project is working to increase regional integration.

While much of the focus is on trade and transit agreements

with neighboring countries, the decisions of traders like Abdul

Fatah to expand operations into regional countries to

increase supply and sales gives Afghanistan a human face

abroad and positions the country as a sustainable and reliable

trade partner.

“We secured many deals with Arab and Iranian wholesalers

which will then ship our products to countries as far away as

Vietnam and Europe,” said Abdul. “A branch office will allow

us to have a permanent trade booth in Dubai, where we can

distribute samples, make deals on a regular basis, and easily

transfer money and business back to Afghanistan.”

Jamshid Ramin Trading shows

samples to international buyers

during Gulfood, held on Feb. 26 -

March 2, 2017 in Dubai, United

Arab Emirates. PHOTO: Aman Sadat, ATAR

“This year’s Gulfood convinced us

to set up an office in Dubai to get

closer to customers and buyers in

this region. Dubai is a world trade

center and we have already

started the registration process.”

— Abdul Fatah of Jamshid

Ramin Trading


SNAPSHOT

BUSINESSWOMAN STRIKES

DEALS IN DUBAI High profile

tradeshow in Dubai

helps facilitate

exports of top Afghan

products.

Afghanistan has some of the region’s best-quality fresh and

dried fruits, carpets, cashmere, carpets, marble, jewelry,

precious stones, and apparel. Despite the rising popularity of

these products, Afghan traders face significant challenges

competing in international markets.

In response, USAID organized Exhibition Afghanistan from

December 6 to 8, 2016 in Dubai, which is the first of a series

of tradeshows aimed at firmly establishing Afghan exporters’

presence in world markets. Sixty-six Afghan traders

participated in the two-day business-to-business event and

negotiated more than $40 million of potential deals.

Ms. Fouzia Hariri is one of nine women traders who took

part in the exhibition. Her business, Hasti Trading Company,

was set up in 2013 and processes and sells saffron and dried

fruit and nuts. Fouzia has participated in several international

trade events in recent years. She expected Exhibition

Afghanistan would be an opportunity to make immediate sales

as well as long-term business relationships.

“I took part in Exhibition Afghanistan with a view to gain

profit over the long-term by making linkages with UAE and

international buyers. I made deals with two Dubai-based

buyers for 20 kg of saffron and 100 tons of dried fruit, worth

a total of $1,089,300,” said Fouzia.

For Fouzia, the benefits of the exhibition went beyond these

lucrative deals. “I met a buyer who is interested in receiving

100 kg annually. He is willing to provide the investment to

produce and process the saffron if I can provide the land for

cultivation,” she said. “The exhibition opened up a lot of

opportunities and facilitated access to Dubai, which is an

important international market for Afghanistan.”

Prior to the event, USAID provided the exhibitors with

training to understand the requirements of doing business in

Dubai. “The marketing and negotiating skills on how to

present my products and myself at such events were

invaluable,” said Fouzia, adding that she is now focusing on

improving packaging and developing a website to reach

additional buyers.

As part of an effort to make Exhibition Afghanistan a

sustainable brand, in November 2016, USAID helped establish

the Afghanistan Exporters Club, an association of exporters

that is expected to take a lead role in organizing future

Exhibition Afghanistan events.

An international buyer inspects

saffron samples of Hasti Trading

Company during Exhibition

Afghanistan, December 6-8, 2017

in Dubai, United Arab Emirates. PHOTO: Ian Carver, ATAR

“The exhibition opened up a lot of

opportunities and facilitated

access to Dubai, which is an

important international market for

Afghanistan.”

— Ms. Fouzia Hariri, owner of

Hasti Trading Company in

Kabul


SNAPSHOT

MERGER MAKES DOING

BUSINESS EASIER Merger Makes Doing

Business Easier

Companies ranging from business startups to corporate

heavy-weights are driving economic growth and creating jobs

in Afghanistan, but obtaining a business license in the country

has been a lengthy and costly process frustrating even

determined investors.

In a major step toward overcoming these challenges, the

Afghan government merged two parallel administrative bodies

to streamline the process. The Ministry of Commerce and

Industries announced on Sept. 28 the business-licensing

department of the Afghanistan and Investment Support

Agency merged into the ministry’s Afghanistan Central

Business Registry-Intellectual Property (ACBR-IP).

ACBR-IP will issue a single business license in place of the

multiple investment and trade licenses previously required.

ACBR-IP will is-sue the license, which is valid for three years,

in Kabul and in 22 offices in the provinces at a cost of 30,000

Afghanis per license. Previously, companies had to renew

multiple licenses annually at a high cost.

“We are at a very crucial point, and we need to take steps to

improve our economy. Fortunately, the distance between the

private sector and the government has been eliminated.” said

Minister of Commerce and Industries Humayoon Rasaw.

“The government is continually trying to encourage

investment, and we are trying to change businesspeople into

investors. This is a good day for the private sec-tor.”

USAID’s Afghanistan Trade and Revenue (ATAR) Project

supported the merger by preparing the merger plan,

modifying software and hardware, and providing on-the-job

training. ACBR-IP will soon make application for licenses

available online as soon as hardware provided by the World

Bank and Hirakata, an Afghan non-profit organization.

“This is one of the most important steps for facilitating

business in Afghanistan,” said Deputy Minister of Commerce

and Industries Mohammad Qurban Haqjo. “We have made

the process simple and easy, and the Ministry of Commerce

and Industries is still trying to do more to facilitate business.”

USAID’s ATAR works with the government and private

sector to improve Afghanistan’s trade environment. With

ATAR support, Afghanistan acceded to the World Trade

Organization last July, solidifying its commitment to ease

trade and adhere to global rules of commerce.

Afghan businessmen and public

officials cut a ribbon on Sept. 28

in Kabul officially launching a

single entity for business

registration in Afghanistan. PHOTO: Ian Carver, ATAR

“This is one of the most important

steps for facilitating business in

Afghanistan.”

— Deputy Minister of

Commerce and Indus-tries

Mohammad Qurban Haqjo


ANNEX D. PRESS RELEASES


ANNEX E. INDEX OF KEY

AFGHANISTAN TRADE AND REVENUE

PROJECT REPORTS

Work Plans • ATAR Year 1: November 7, 2013-November 6, 2014

• ATAR Year 2: November 7, 2014-November 6, 2015



• ATAR Extension Period: November 7, 2016-February 28, 2017

M&E Plans

• ATAR Year 1: Submitted as annexes within Annual Work Plans.




Annual Reports

• 2014: ATAR Annual Report



Quarterly Reports

• 2013: (Q1 November-December 2013)

• 2014: (Q2 January- March, Q3 April-June, Q4 July-September)




Monthly Progress Reports

• 2013: November, December

• 2014: January, February, April, May, July, August, October, November



• 2017: January, February, April, May, July, August, October

Monthly Financial Reports

• 2013: November, December

• 2014: January, February, March, April, May, June, July, August, September, October,

November, December



November, December


November, December


November, December

Technical Reports

• WTO Post Accession Strategy for Afghanistan

• World Trade Organization (WTO Notifications Manual

• Prospects of Intra-regional and Inter-regional trade in Central and South Asia

• Benefits and Challenges of the Potential Afghanistan-Pakistan-Tajikistan-India Trade

and Transit Agreement (APTITTA)

• Trade Opportunities of Central and South Asia

• WTO Consistent Policy Alternatives to Stimulate Afghan Wheat Production and

Flour Milling

• Afghanistan Transport and Logistics Competitiveness Study

• Boosting the Competitiveness of Afghan Exports: Issues and Recommendations

• Comparing the Competitiveness and Efficiency of Road Transport Operators

between Afghanistan and the Kyrgyz Republic

• WTO Agreement on Trade Facilitation Tajikistan: Compliance Assessment Report

• WTO Agreement on Trade Facilitation Afghanistan: Compliance Assessment Report

• WTO Agreement on Trade Facilitation Kyrgyzstan Compliance Assessment Report

• Assessment of the Effects of Adopting a UPOV-Compatible Plant Variety Protection

System of Afghanistan

• Developing a Risk-based National Food Inspection Strategy

• Needs Assessment for the National Board on International Trade and Safeguard

Measures

• Needs Assessment for Establishing the Afghan Food Safety Control Authority

• Pest Risk Assessment Manual based on IPPC Guidelines: Reference Documents

Framework for Pest Risk Analysis (IPPC/ISPM 2)

• Recommendations for Establishing a Food Safety Information Center

• Comparative Advantage and Trade: Afghanistan, Central Asia, and South Asia


Washington, D.C. 20523

Tel.: (202) 712-0000

Fax: (202) 216-3524

www.usaid.gov

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