Pakistan suggests curbs to end smuggling from Afghanistan

Pakistan has proposed a mechanism to Afghanistan to curb smuggling under the proposed Afghanistan-Pakistan Transit Trade Agreement by imposing quantitative restrictions on transit goods based on their consumption in the country.

Currently, several items are being exported to Afghanistan in quantities much higher than their consumption there, resulting in smuggling of goods to Pakistan.

Sources on Monday said a Pakistani delegation had submitted the proposal in meetings held in Kabul from November 21-22. Under the proposed trade arrangement, the Federal Board of Revenue would regularly compile a list of sensitive items and submit it to Afghan authorities to monitor their consumption in Afghanistan. A joint committee could be set up for determining the implementation of the proposal.

The FBR has proposed that the Afghan government should regularly provide the required consumption quantities of certain items being imported under the APTTA to Pakistan. Consequently, Pakistan would allow only those quantities for clearance to avoid smuggling. A quota system would then be introduced to allow the specific quantities based on their consumption in Afghanistan. The quota would be fixed on regular basis in consultation with the Afghan authorities.

The FBR further proposed that if Kabul would not specify consumption requirements, the board should be authorised to collect custom duty on behalf of the Afghan government. The duty would be regularly transferred to Afghan authorities, eliminating smuggling under transit trade. A representative of Afghan customs could also be deputed at Pakistani ports to monitor the duty collection, the FBR suggested.