Pakistan, Afghanistan reach understanding on transit trade

[Lahore_Real_Estate]

ISLAMABAD, Jul 18 (APP): Pakistan and Afghanistan reached an understanding here on Sunday on all major issues relating to the Transit Trade. The broad based record note signed Sunday evening at the Prime Minister House in the presence of Prime Minister Syed Yusuf Raza Gilani and US Secretary of State Ms. Hillary Clinton states that “Pakistan and Afghanistan hope that resolution of all outstanding matters relating to the finalization of Afghan Pakistan Transit Trade Agreement would help in the early signing of the Agreement, after completion of legal processes from both sides.”

The two sides agreed that no Indian export to Afghanistan will be allowed through Wagah. However, Afghanistan would have the opportunity to export to India. Reciprocally, Pakistan would be able to export its goods to Central Asia through Afghanistan.
The Agreement thus signed would be an important milestone in the development of Pak-Afghan Trade and Economic relationship to the mutual benefit of both sides.
The broad based record note signed by Makhdoom Muhammad Amin Fahim, Minister for Commerce and Dr. Anwar-ul-Haq Ahady, Minister for Commerce and Industries of Afghanistan mentions that the Afghan trucks will be allowed to carry Afghan Transit Export Cargo on designated routes to Pakistani seaports and Wagah.
The Afghan transport units, on return, will be permitted to carry goods from Pakistan to Afghanistan under the same expeditious procedures and conditions as Pakistani transport units.
It was also decided that all Afghan transit goods will be exported in containers of international specifications. For a period of three years, the cargo will be allowed to be transported in internationally acceptable and verifiable standards of sealable trucks while the oversize and bulk cargo which is not imported in containers - shipload will be transported in open trucks or other transport units.
It was also agreed that export of perishable goods in transit will be transported in open trucks or other transport units.
According to the record note signed, the drivers and cleaners will be allowed to enter/exit the two countries on permits, identified by the biometric devices installed at the entry points.
It was also agreed that an Arbitrator Tribunal will be established bilaterally. In case of failure to agree on a common name of third Arbitrator, two names of non-nationals and non-residents will be proposed by each side and the third Arbitrator will be selected by drawing lots from the four proposed names.
To tackle the issue of unauthorized trade, it has been agreed that tracking devices on transport units will be installed and a mechanism for custom to custom information sharing (IT data and others) will be established.
In this context, it has also been agreed that financial guarantees equal to the amount of import levies of Pakistan have to be deposited by authorized brokers/custom clearing agents to check the un-authorized trade and these deposits will be released after the goods exit the country.
In case, the goods do not exit the country within specified time, the guarantees will be encashed by the custom authorities. Moreover, the agreement to be signed will be subject to any other measures to be taken by APTTA.