UNNExT Workshops on Trade Facilitation UNNExT Workshop on Trade - - PowerPoint PPT Presentation

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UNNExT Workshops on Trade Facilitation

Almaty, Kazakhstan 4-6 May 2015

UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products

Status of Trade Facilitation Measures

Habibullah Asad Trade Expert May, 2015 Almaty , Kazakhstan

Contents

1. Introduction 2. Foreign Trade trends 3. Economic Development so far 4. Trade Facilitation compliance 5. Conclusion

Heavy Reliance on International Trade

• Afghanistan has pursued a liberal trade policy and reformed its trade

policy regime in line with the WTO requirements with low tariff (Average 7%) and non-tariff barriers.

• Afghanistan’s exports lack diversity, with carpets and dry fruits

accounting for close to three-fourths of total exports. Other exports include fresh fruits and cotton and highly dependent on imports.

• In fact, the Afghanistan trade balance is generally in deficit and relying
• n foreign aid heavily.
• The pattern of the Afghanistan trade is often called ‘processing trade’,

because it produces goods by processing imported raw materials. Therefore, the government put a great emphasis on expansion of exports by supporting local producers and infant industries for import substitution and export promotion.

Source: Afghanistan Statistical Yearbook

48% 30% 22%

GDP breakdown by economic sectors

Services Agriculutre Industry

Source: Afghanistan Statistical Yearbook

27% 18% 16% 7% 7% 3% 2% 20%

Shares of main export commodities

Dry fruits Carpets Medical herbs Fresh fruits Oil seeds Wool Karkul skins Other

Source: Afghanistan Statistical Yearbook

24% 21% 9% 5% 2% 2% 1% 1% 1% 1% 1% 1% 31%

Shares of main import commodities

Vehicles and spare parts Petroleum and lubricants Metals Wheat and wheat flour Vegetable oil Fabric Sugar Cigarattes Tyres and tubes Tea Cloths Soaps Other

Selected features of economic development so far

• Afghanistan has come a long way to achieve remarkable

progress in its business enabling environment. This progress is clearly manifested in our ranking improvement from 170 to 164 (out of 185 economies) in the WB Ease of Doing Business.

• FDI inflows are projected to reach USD 76 million in 2012

where total FDI stocks were USD 1.625 billion, representing 9.4% of GDP.

• Services have contributed about half of GDP in 2012, mostly

sourced from Information & Communication Technology, Finance & Insurance, Transport, and Construction.

• The Afghan economy is dominated by

agriculture with significant opportunities in agri-business and agriculture distribution and infrastructure.

• The mining sector is slowly emerging as a

source

• f

growth. Need for further investment to finance further mineral exploration - more than 1400 mineral deposits have been identified so far (some are strategically important).

Provision of the Agreement Current Status of conformity Fully, Substantially, Partial, No, not applicable ARTICLE 1 PUBLICATION AND AVAILABILITY OF INFORMATION

• 1. Publication

Partially

• 2. Information available through internet Partially
• 3. Enquiry Points

No

• 4. Notification

Not being a member of the WTO, Afghanistan has no notification

• bligations

to the WTO. Note however that Afghanistan has provided textual description of its trade policy regime and legal framework to members

• f

the Working party on accession

• The legal framework for Enquiry Points for SPS

measures and TBT regulations is currently drafted.

• In practice, MAIL dispatches notes on disease

information, namely those receive from Codex Alimentarius, OIE (World Organisation for Animal Health) and IPPC (International Plant Protection Convention)to Customs as circular letter to other agencies, including ACD, and informs traders thereof.

• All perishable goods require clearance by MAIL

inspectors at the entry points.

In Practice Trade Facilitation Measures

• ACBR streamlined business procedures to 8

steps

• ACD improve processes & streamlined its

clearance processes

• ACD introduced Risk Management in cargo

selectivity

• ACD implemented SAD nation-wide
• At several border crossings, facilities have

been upgraded

ASYCUDA

is operational in the Afghan Customs Department (ACD) nationwide as below: ASYCUDA++ Transit System is operational on 7 (seven) main transit corridors:

• Torkham (border with Pakistan) - Jalalabad - Kabul
• Weesh/Spin Boldak (border with Pakistan) - Kandahar
• Islam Qala (border with Iran) - Herat - Kabul
• Hairatan (border with Uzbekistan) - Mazar e Sharif - Kabul
• Towroghondi (border with Turkmenistan) - Herat - Kabul
• Andkhoy

(border with Turkmenistan)

• Kabul
• Sher Khan Bandar (border with Tajikistan) - Kunduz - Kabul

ASYCUDAWorld (AW) International Transit

is fully operational on the transit corridors:

• Torkham (Pakistan) – Hairatan (Uzbekistan)
• Torkham (Pakistan) – Sher Khan Bandar

(Tajikistan)

ASYCUDA++ DPS (Declaration Processing System)

is operational in 9 (nine) Customs Houses/Offices: Jalalabad, Herat, Kunduz, Mazar e Sharif, Zaranj/Nimroz, Kandahar, Andkhoy, Torkham and Islam Qala.

ASYCUDA World (AW) DPS

is operational in 2 (two) main Customs Houses: Kabul, Kabul International Airport. In all computerised Customs sites:

• 100% of the declarations are processed through the ACD

ASYCUDA, thus replacing the 5 (five) copies of the ACCD form (Afghan Customs Clearance Declaration) and other extra Customs forms previously used;

• A new declaration processing-flow was implemented:

reducing the previous Customs processing path from 14 (fourteen) steps and signatures to

• nly

3 (three);

• The entire Customs clearance process is fully automated and

electronically available both for Customs officers and for Customs brokers/traders (100% DTI, Data Trader Input);

EDI

• MoU signed with Pakistan, Tajikistan and

Uzbekistan;

• Implemented EDI pilot project in Torkham,

Wesh and Shirkhan bandar

• Exchanging electronic information with Iran
• ACB planning to introduce EPAY electronic

payment system for speed up import/export declarations.

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Afghanistan’s Control, Inspection and Approval Procedures will Ensure

• No undue delays
• Information requirements: limited to

what is necessary

• No less favourable treatment for

imports: –Fees – no discrimination, only to cover costs

• Procedure to review complaints

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Transparency

Afghanistan will

establish an Enquiry Point AND designate a Notification Authority notify other Members of new or changed SPS regulations when no international standard exists

OR

the new regulation is different than the international standard regulation may have significant effect on trade

AND

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WTO SPS Comm Interested Parties Sanitary Service Plant Quarantine Service Veterinary Service Ministry of Agriculture, Irrigation and Livestock Ministry of Public Health SPS-ENP

SPS Counter- part SPS Counter- part SPS Counter- part

Incoming Notifications Enquiries & Responses Comments & Outgoing Notifications

Information Flows Related to SPS Enquiries and Notifications

TBT Enquiry Point & Notification Authority

• Afghanistan joining WTO
• Requires complying with TBT Agreement
• TBT Article 2: Requires notification
• TBT Article 10: Requires establishing Notification

Authority

• WTO Members expect Afghanistan to have these to

be operational.

WTO TBT Comm Interested Parties Sanitary Service Plant Quarantine Service Veterinary Service MoCI Ministry of Agriculture, Irrigation and Livestock Ministry of Public Health TBT-ENP

TBT Counter- part TBT Counter- part TBT Counter- part TBT Counter- part

Incoming Notifications Enquiries & Responses Comments & Outgoing Notifications

Information Flows Related to TBT Enquiries and Notifications National Environmental Protection Agency

TBT Counter- part

TBT Counter- part

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Regionalization

• Afghanistan shall adapt SPS measures to characteristics of an

area (all or part of a country, all or parts of several countries) taking into account

• prevalence of diseases or pests
• existence of eradication or control programmes
• criteria/guidelines developed by OIE, IPPC
• Afghanistan shall recognize concept of pest- or disease-free

areas

Conclusion

• Afghanistan has pursued a liberal trade policy and intends

to reform its trade regime in line with the global trading rules as it becomes a WTO member.

• In the context of regional integration and implementation
• f bilateral and transit agreements, Afghanistan will

promote harmonization with international conventions, agreements and standards.

• To improve business environment with a view to remove

the constraints holding back the growth of a private sector. The major focus is on improving the existing regulations (as required) to comply with internationally acceptable business standards and to develop new ones.

Thank you