AfghanistanPakistan Transit Trade Agreement (APTTA)

APTTA DRIVES TRADE

APTTA replaces the 1965 agreement ATTA Afghanistan Transit Trade Agreement
APTTA strengthens economic ties between Pakistan and Afghanistan by ensuring freedom of transit across both countries

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

APTTA DRIVES TRADE

Afghanistan gains access to Indian and Chinese markets via access to sea ports and land crossing points
Sost to China - 1.2 billion Chinese.
Wagah In India - 1.1 billion Indians Seaports at Karachi, Port Qasim and Gawadar

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

APTTA DRIVES TRADE

Why is APTTA Important for Afghanistan?

Afghanistan is a landlocked country; access to sea and to global markets Increase exports; speed up imports Reduce delays at border Modernize business practices and harmonizes standards Promote foreign investment and economic growth

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

APTTA DRIVES TRADE

Why is APTTA Important for Pakistan?

Access to the markets of Central Asia and Iran Stimulate employment and business inside Pakistan as service and logistical businesses support increased traffic Lower transit costs

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

APTTA DRIVES TRADE

Why is APTTA Important for the Region?

Improved regional stability Stronger commercial relationships across borders

Makes the South Asian Free Trade Agreement SAFTA easier and cheaper to implementlower tariffs for Afghan goods across region
Successful implementation builds confidence trust and hope across region
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE APTTA Objectives:

Ensure effective administration of transit transport and avoid unnecessary delays
Simplify, harmonize and increase transparency in transit documentation and procedures Promote freight transport Minimize customs fraud and avoidance

Monitor the trade of chemicals to prevent their diversion for illicit purposes
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE Freedom of Transit Includes:

NO CUSTOMS DUTIES
No discrimination Pre-settled routes along approved corridors

Free choice of type of vehicle: must stay on the specified routes and exit within the specified time
No preferential treatment for national vehicles

Rates for ports and rail the same as those applicable to nationals
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE Freedom of Transit Includes:

COMMERCIAL PRESENCE Freight forwarders and transport operators can establish offices in country of transit to support trade and transit activities Mutual recognition of driving licenses & vehicle docs Mutual recognition of inspection certificates Enquiry points
Transit Requirements Unforeseen Circumstances Oversight of Agreement

What is APTTA

Customs

APTTA DRIVES TRADE Freedom of Transit Prohibits:

An Afghan truck transiting through Pakistan cannot deliver its goods in Pakistan and visa versa

Goods from a third country cannot be delivered in the country of transit. e.g. Chinese goods cannot be delivered in Pakistan by transiting Afghan trucks No Indian goods on return trip
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

Technical requirements Technical Requirements

What is APTTA What is APTTA

Transit Transit Requirements Requirements

Customs Customs

Unforeseen Unforeseen Circumstances Circumstances

Oversight of Oversight of Agreement Agreement

APTTA DRIVES TRADE Four Protocols

1. International Carriage by Road of Goods and Baggage in Transit 2. Temporary Admission of Vehicles for Commercial Use 3. Customs Control and Transit Regime 4. Control of Precursors and Chemical Substances used in the Illicit Manufacture of Narcotic Drugs or Psychotropic Substances
Transit Requirements Unforeseen Circumstances Oversight of Agreement

What is APTTA

Customs

APTTA DRIVES TRADE

Requirements for Transport Operators

Reliability License Proof of competency Financially solid Nationally owned Third party insurance Temporary Admission Document (TAD)
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE Temporary Admission Document TAD

Free Provides evidence of temporary admission to host country Vehicles allowed to carry return cargo from the territory of the other country: duty must be paid

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

APTTA DRIVES TRADE

Temporary Admission Documents (TAD)
Issued at point of entry - for a single carrier (not transferable)

Two types sea 15 days, land 30 days*

*Valid for 30 days recommended for adoption by APTTCA

An exit stamp within the time period discharges the TAD and ensures the return of the bank guarantee
Includes details of bank guarantee

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

APTTA DRIVES TRADE

Bank Guarantee for Vehicle

Transporter must provide a bank guarantee to get a TAD Bank guarantee must last at least 6 months from date of issue The bank is jointly liable with the vehicle operator for all import duties, taxes and interest on the vehicle if there is an irregularity or lack of timely discharge of TAD
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE

Bank Guarantees: Updates Two governments reduced guarantee to 25% and then 10% of duties and taxes on vehicle Banks are insisting on 100% of duties and taxes of vehicle Possibility of government guarantee scheme or bilateral carnets de passage
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE Bank Guarantee

If the bank fails to pay
Failure to pay import duties by guaranteeing bank allows the Host Country to suspend the temporary admission regime to all vehicles whose bank guarantee is issued by the defaulting bank

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

APTTA DRIVES TRADE Requirements for Vehicles

Certificate of Conformity Identification Marks Certificate of Registration Registration Plate Distinguishing Nationality Sign Maximum Weight and Dimension

Maximum Axle Load

Tracking Device Containerization
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE Containerization

All transit goods to travel in containers of international specifications
Three year grace period to convert to containersuntil that time the cargo is allowed in internationally verifiable standard of sealable trucks Oversize and bulk cargo (not imported in containers) transported in open trucks

Perishable goods in transit (like fruits and vegetables) shall be transported in open trucks
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

APTTA DRIVES TRADE

Requirements for Drivers

Multiple entry transit permit - drivers will be issued multiple entry permits valid for 6 months, each stay not exceeding 15 days.

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

Customs

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

APTTA DRIVES TRADE Simplification of Customs Processes

Harmonize codes and descriptions of goods
Consolidate procedures to prevent redundancies Risk management approach to reduce delays - up to 5% of the containers at the port of entry will be examined unless irregularity is suspected Share Information related to goods declaration, authenticity of documents and seals etc

Regular communication
Joint customs control at entry and exit points
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE

Levies and Charges

No duty or taxes on goods in transit Allowable charges include: fees for weighing, scanning, sealing tolls for bridges, roads, tunnels and parking. All charges must be reasonable and nondiscriminatory

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

APTTA DRIVES TRADE

Risk Management
Customs wont conduct routine physical inspections of vehicle or cargo en route unless they suspect an irregularity

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

APTTA DRIVES TRADE

Customs Security on goods

Necessary for goods in transit People who regularly transit customs shall be entitled to lodge a revolving guarantee, valid for at least one year Guaranteeing organization is jointly liable with the person who owes the money for duties and taxes
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE

Customs Security: Updates Not necessary for Afghan or Pakistani exports Third country goods:
Insurance or cash at Customs acceptable Insurance not more that 1% for sensitive and 0.8% on non-sensitive 10% of total value of goods in collateral Insurance companies not accepting this and insist on higher rates Possibility that both countries may agree on limiting security to sensitive goods

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

APTTA DRIVES TRADE

Customs Seals
Vehicles cargo compartment shall be sealed by customs office of departure
Host country may place seals if desirable

If customs breaks seals to perform a physical inspection, they shall place a new seal and record this action in customs documents
Oversized goods are allowed in non-sealed vehicles as long as goods are easily identified by description to prevent substitution or removal
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE Discharge of Transit and Inland Customs Clearance Documents
Documents discharged after: Exit stamp placed on clearance document after transit goods re-exported from country, or Goods are placed under another Customs regime, or Goods cleared for domestic use via payment of duties and taxes

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

Unforeseen Circumstances

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

APTTA DRIVES TRADE Accidents or Unforeseen Circumstances

Accidents need to be reported to nearest Customs office or other authority Where goods are stopped in transit by an unforeseeable major incident carrier must take precautions to prevent the goods from entering into circulation

Change of Itinerary
Must be due to circumstances beyond control Inform host country customs who will designate an alternative route
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE

Loss or Destruction of Vehicle en route
No need to return vehicle if:
all duties paid vehicle abandoned and accepted by Host Country or; vehicle destroyed under Host Country supervision and salvaged parts re-exported or duty paid

Loss, Destruction or Shortage of Cargo en Route

Payment of duties and taxes waived if customs believes that goods destroyed or lost en route or are short because of the type of product they are
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

Oversight of Agreement

What is APTTA

Transit Requirements

Customs

Unforeseen Circumstances

Oversight of Agreement

APTTA DRIVES TRADE Afghanistan Pakistan Transit Trade Coordination Authority (APTTCA)
Oversees the agreement Includes members of Government and private sector from both countries

APPTCA:
Meets once every six months alternating Decisions by consensus Interpretation and implementation through cooperation
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE Resolving Disputes:

Dispute settlement panels
Arbitration Tribunals include representatives from both countries and an agreed neutral third country

Implementation
Arbitration Tribunal reviews the dispute Decisions are final

Decisions within 30 days from date of referral to Tribunal

What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE

General Exclusions
No measure taken under the Agreement could risk harming or destroying:
- Public morals

- Human, animal and plant life - National treasures - Security of territory - Mutually agreed interests
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE Ratification of the Agreement

APTTA enters into force 31 days after ratification It lasts for five years and is renewed for another five years automatically

Suspension of the Agreement

Each country can temporarily suspend in case of emergencies affecting public health, public order and national security

Countries must inform other before such suspension and suspension will end as soon as situation returns to normal
What is APTTA Transit Requirements Customs Unforeseen Circumstances Oversight of Agreement

APTTA DRIVES TRADE