WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/ACC/AFG/17 
31 October 2012 
 (12-5931) 
Working Party on the Accession of  
the Islamic Republic of Afghanistan Original:   English 
 
 
 
ACCESSION OF AFGHANISTAN 
 
Additional Questions and Replies 
  
 The following submission, dated 22 October 2012, is being circulated at the request of the 
Delegation of the Islamic Republic of Afghanistan.  
_______________ 
  WT/ACC/AFG/17 
 Page i 
 
 
  TABLE OF CONTENTS 
 
I.  INTRODUCTION .................................................................................................................. .. 1 
INTRODUCTORY STATEMENTS .................................................................................................... 1  
II.  ECONOMIC POLICIES .......................................................................................................... 1  
-  Monetary and Fiscal Policy .................................................................................................... .. 1 
-  Investment Regime.............................................................................................................. ...... 3 
-  State Ownership and Privatization, State-trading Entities ................................................. 11  
-  Pricing Policies .............................................................................................................. .......... 14 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES .................................... 16  
IV.  POLICIES AFFECTING TRADE IN GOODS ................................................................... 21  
-  Trading Rights ................................................................................................................ ........ 21 
A.  IMPORT REGULATIONS .................................................................................................... 28  
-  Ordinary customs duties ....................................................................................................... . 28 
-  Other duties and charges ...................................................................................................... .. 29 
-  Tariff rate quotas, tariff exemptions ..................................................................................... 30  
-  Fees and charges for services rendered ................................................................................. 30  
-  Application of internal  taxes to imports ............................................................................... 31  
-  Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ....................................................................................................................... .............. 32  
-  Customs valuation ............................................................................................................. ...... 38 
-  Pre-shipment inspection ....................................................................................................... .. 53 
-  Anti-dumping, countervailing duty and safeguard regimes ............................................... 53  
B.  EXPORT REGULATIONS ................................................................................................... 55  
-  Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports .............................................................................................................. .......... 55 
-  Export restri ctions ........................................................................................................... ....... 58 
C.  INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS ......................... 60  
-  Industrial policy, including subsidies .................................................................................... 60  
-  Technical barriers to trade, standards and certification ..................................................... 61  
-  Sanitary and phytosanitary measures ................................................................................... 67  
-  Transit ....................................................................................................................... ............... 72  
-  Agricultural policies.......................................................................................................... ...... 73 
V.  TRADE-RELATED INTELLECTUAL  PROPERTY REGIME ....................................... 73  
-  SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS ........................................................................... 73  
-  ENFORCEMENT ...................................................................................................................  74 
VI.  POLICIES AFFECTING TRADE IN SERVICES .............................................................. 79  
VII.  TRANSPARENCY ................................................................................................................. 79 
VIII. TRADE AGREEMENTS ....................................................................................................... 82   WT/ACC/AFG/17 
 Page 1 
 
 
  I. INTRODUCTION 
INTRODUCTORY STATEMENTS 
Question 1 
Paragraph 4 of document JOB/ACC/28 states that th e representative of Afghanistan stated that 
there is a "need for positive efforts to ensure that  Afghanistan's share of growth in international 
trade reflected the needs of its economic development". 
It is not clear what the speaker is tryi ng to say.  Could this be clarified? 
Answer: 
We are unable to locate such statement in any of the documents submitted by Afghanistan.  As such, 
we suggest the deletion of such statement from the Factual Summary. 
II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy 
Question 2 
Paragraph 13 of document JOB/ACC/28:  The fi rst sentence of paragraph 13 states that "The 
representative of Afghanistan said that a main policy tool used to achieve the Government's 
development objectives was management of the na tional budget".  This does not really seem to 
be synchronous with the statement in paragra ph 7 that "The Government's strategy to foster 
private sector-led economic development and increase domestic and foreign investment 
consisted of efforts to:  (i) build a strong and stable enabling environment that would encourage 
a competitive private sector; (ii) expand the scope for private investment in developing national 
resources and infrastructure; and (iii) promote in vestment from domestic sources, the Afghan 
diaspora and foreign investors". 
Please consider clarifying these statements.  
Answer: 
Afghanistan's reconstruction has made considerable progress during the last decade.  Led by the 
Government with international s upport but relying mostly on the energy and initiative of the Afghan 
people, reconstruction has resulted in solid achie vements including rapid economic growth albeit 
fuelled by external assistance, unprecedented prim ary school enrolments including for girls, huge 
gains on the health sectors, rehabilitation of major highways, and a stable currency.  The budget has 
been instrumental in articulating the priorities and turning the development objectives and national 
priorities into reality.  
The budget remains one of the key policy instrument s of the Government to promote development 
objectives consistent with the National Priority Pr ograms of the Afghanistan National Development 
Strategy.  This is not unique to Afghanistan.  Worldwide, the budget underscores the importance of public finances of a nation and provides the necessary framework to usher investor confidence.  Fiscal 
discipline and prudent expenditure management ar e the anchors of an enabling business environment 
and macroeconomic stability.  Both are prerequi sites for the private sector to flourish.  WT/ACC/AFG/17 
Page 2  
 
  For this reason, the Government of Afghanistan has been reforming the budget process to introduce 
international best practice.  As regards public  finances, international institutions note that 
Afghanistan's ratings are better than the average for other low-income developing countries and in 
some areas better than the averag e for middle-income countries. 
In tandem with the public financial management re forms, the Government is also taking steps to 
ensure that the private sector reforms advance a nd keep pace with the gain s in the public sector 
reform.  The private sector will not only be the driver  of growth, jobs and revenues but will also create 
delivery mechanisms for goods and services in both ec onomic and social sectors, productively utilize 
available human and natural resour ces, and help to integrate Afghanistan with the region and the 
world, and above all generate hope .  Its role, reach and impact will be cutting across all sectors.  
The Government has facilitated growth of the priv ate sector by: establishing the rule of law and 
governance structures; enacting commercial laws  and putting in place regulatory frameworks; 
promoting growth-oriented sector focused policies; providing stable financial and fiscal structures; 
creating basic infrastructure for mobility, energy , and telecommunications; developing industrial 
infrastructure through industrial parks; stream lining processes and procedures for doing business; 
promoting trade through bilateral and multilateral ag reements; supporting the de velopment of factors 
of production such as credit, investments, a nd entrepreneurship; supporting human resources 
development; and improving access to land. 
Question 3 
Paragraph 15:  The Factual Summary states th at draft amendments to Afghanistan's tax 
administration and income tax laws, as well as a new Law on Business Receipt Tax (BRT), are expected to go through the legislative process in 2012.  
Could Afghanistan provide copies of these amen dments and the new BRT Law for review by 
the Working Party? 
Answer: 
A copy of the Draft Law on Tax Administration a nd a copy of the Draft Law on VAT Law will be 
provided to the Working Party for review. 
Paragraph 15 should read as follows: 15. The representative of Afghanistan said that major tax reform was introduced in 2007 which 
sought to comprehensively overhaul the tax system, bring it into compliance with 
international best practices, reduce tax-related investment barriers and simplify tax structures 
and procedures.  He noted that Afghanistan's  tax system was currently governed by the 
Income Tax Law of 2009. and the Tax Ad ministration Law of 26 August 2005.  The 
representative of Afghanistan confirmed that a new draft Law on Value-Added-Tax had been 
prepared by the Ministry of Finance and submitted to the Ministry of Justice. A new draft 
Law on Tax Administration is being prepared at the Ministry of Finance. Draft Amendments 
to the Law on Tax Administration of 2005 had been prepared and were presently being 
reviewed by the Parliament.  Draft Amendments  to the BRT provisions of the Law on Income 
Tax of 2009 have already been prepared and will be enacted at the same time as the VAT 
Law.and a new Law on Business Receipt Tax were being prepared by the Ministry of Finance 
and were expected to be put thro ugh the legislative process in 2012.  WT/ACC/AFG/17 
 Page 3 
 
 
  - Investment Regime 
Question 4 Paragraphs 23, 24 and 31 of document JOB/ACC/28:  The representative of Afghanistan stated 
that the Private Investment Law of 2005 was th e legal basis for Afghanistan's investment 
regime, the High Commission on Investment had the right to amend the list of areas where 
investments would be prohibited, restricted or subject to special terms, and the Afghanistan 
Investment Support Agency (AISA) had been est ablished as a one stop shop for investment 
licensing, which helped to reduce the time needed to obtain a licence.  
- Has the Private Investment Law of 2005 ever been modified? If so, what changes have 
there been to this law? 
- Under what regulations is the High Commi ssion on Investment authorized to make 
amendments?  Do any standards exist that this Commission has to follow? 
- In addition to investment licensing, do es the scope of assistance provided by the 
Investment Support Agency extend to business licensing and other commercial affairs? 
Answer: 
The Law on Private Investment in Afghanistan has never been amended since 2005. 
Proposals to amend the law can only be made by the High Commission on Investment and then 
forwarded to the Ministry of Justice for furthe r consideration and submission to the Council of 
Ministers.  The Council of Ministers then submits, after consideration, the Draft Amendments to the 
Parliament for adoption.  There are no special re gulations for the High Commission on Investment to 
amend the Private Investment Law. 
Afghanistan Investment Support Agency (AISA) is not involved in business licensing (licence needed 
for import/export) or international trade regulations .  Persons with investment licence from AISA get 
charged 2 per cent fixed tax when importing for ow n use /operations and 3 per cent fixed tax when 
importing for commercial purpose.  Such persons can use the AISA licence to import and do not need 
to obtain a business licence.  However, if an AI SA licence holder opts to obtain a business licence, 
s/he may use the business licence for importing for co mmercial purpose.  In this case, such person 
will be charged 2 per cent fixed tax of th e value of imported goods and customs duty. 
Question 5 
The Investment section of the Factual Summary needs reorganization and elaboration, in 
particular to include information on the High  Commission for Investment and its role in 
regulating investment in Afghanistan and AISA, using information from Articles 8 and 9 of the 
Private Investment Law and WT/ACC/AFG/4 along the following lines: 
Please amend paragraphs 24 and 31, and move paragraph 31 up to follow paragraph 24 as 
follows: 
24.  The representative of Afghanistan stated  that the High Commission on Investment 
was the government's focal point and highest authority for policy-making on investment 
and is the highest administrative authority with respect to the implementation of the 
2005 Private Investment Law.  It was ch aired by the Minister of Commerce and 
Industries and its membership included, inter alia, Ministers of the relevant ministries 
and the Governor of the Central Bank.  Its functions included development of 
regulations for approval by the Cabinet of Ministers, and approval of rules and WT/ACC/AFG/17 
Page 4  
 
  procedures for implementation of the Private Investment Law, establishment of the 
initial threshold for investment capital, and to monitor foreign and direct investment in 
Afghanistan and to propose changes to invest ment policy, as necessary.  It had the right 
to amend the list of areas where investments would be prohibited, restricted or subject 
to special terms.  This right had been used  once to eliminate restrictions on non-bank 
financial services.  
31.  To assist in carrying out its duties, the Commission established tThe Afghanistan 
Investment Support Agency (AISA) and was responsible for its operationshad been 
established as a one stop shop for investment licensing which helped to reduce the time 
needed to obtain a licence from months to  about three days.  The AISA was responsible 
for issuanced of investment licenses (i.e., d eciding which investment enterprises were, or 
were not "approved") and investor registrat ion relating to domestic and foreign 
investment and covering all sectors.  While  technically under the Ministry of Commerce 
and Industries, AISA's head was a chief ex ecutive officer.  It facilitated obtaining 
required licenses for investors from other relevant Afghan government agencies and 
acted as a one stop shop for investment licen sing which helped to reduce the time needed 
to obtain a licence from months to about three days.  AISA was also responsible for 
keeping required reports from enterprises approved for investment and acted as an 
investment enquiry point for information on the Private Investment Law.  It continued 
its efforts to improve its licensing procedures and facilities.  In addition to administering 
the High Commission's policies, AISA and promoted investment and attracted investors 
to Afghanistan through launching wide and comprehensive campaigns and by setting up 
AISA's regional offices at provinces to assi st investors in doing business.     
Answer: 
Afghanistan agrees with the proposed amendments above to paragraphs 24 and 31 of the Factual 
Summary with the following change: 
 Replace in paragraph 31: "about three days" with "to one working day in the case of small and 
medium size investment.  For investment exceeding US$3 million, the High Commission on Investments would need to approve the inv estment application.  The High Commission on 
Investments meets once per month and consider s submitted application during prior month". 
Afghanistan also agrees to move paragraph 31 up  to follow paragraph 24 of the Factual Summary. 
Question 6 
In new paragraphs following paragraph 31:  Please incorporate the information provided in 
WT/ACC/AFG/4 and in the responses to the Qu estions in WT/ACC/AFG/7, on how domestic 
and foreign companies can invest in Afghanista n and what specific steps are being taken to 
simplify and streamline the process to encourage such investment. 
The assertions in paragraph 31 on investment pr omotion seem at odds with the extensive list of 
requirements in the response to Question 9 in WT/ACC/AFG/7.  Please clarify. 
Answer: 
The process of obtaining the AISA licence has been streamlined and the one-stop-shop at AISA now 
includes a representative from the Afghan Centra l Business Registry (ACBR) and a representative 
from the Tax Revenue Department, Ministry of Fi nance.  In the case of small and medium size 
investment, it now takes one day to obtain the AI SA Licence, corporate registration, and the Tax  WT/ACC/AFG/17 
 Page 5 
 
 
  Identification (TIN) number.  For investment exceeding US$3 million, the High Commission on 
Investments would need to approve the investment application.  The High Commission on Investments meets once per month and consider s submitted application during prior month.  
The Required documents that must be submitted by the applicant are the following:  
- Application form for the AISA Licence; 
- Documents necessary to complete corporate registration: application for corporate 
registration, Articles of Association,  and Shareholders' Agreement; and, 
- Five passport size photos. 
Afghan citizens must provide their national identity car d.  Foreign citizens (as individual investors or 
representatives of foreign company) must provide a copy of passport.  For foreign legal entities, a 
copy of certificate of registration of the legal entity  attested by Ministry of Foreign Affairs and the 
Afghan Embassy in the home country of the foreig n legal entity.  These requirements are consistent 
with best international practices. 
The fees for obtaining the AISA licence have been cu t by half for small and medium size businesses.  
The new fee schedule is provided below: 
Amount of Initial Capital Classification Licensing Fee 
US$5,000  to US$10,000 Small size business US$50 (old fee was US$100) 
US$10,001 to US$1,000,000 Medium size business  US$350 (old fee was US$700) 
US$1,000,001 or more  Large size business  US$1,000 
The fees above apply for all sectors except construction, logistics, and security where the fee is 
US$700 regardless of the amount of initial capital. 
The fee for corporate registration is now US$20 instead of previous ad valorem  fee of 1 per cent of 
initial registered capital.  In addition, an additional amount of AF 3 per character is charged to publish 
information regarding the newly registered company in the official gazette. The total publication fee 
usually ranges from US$10 to US$20. 
There is no fee for obtaining the TIN. The information provided in this reply regarding AISA licence and corporate registration should 
supersede the information provided in WT/ACC/ AFG/4, in the responses to the questions in 
WT/ACC/AFG/7, and any other information provi ded before this communication regarding these 
matters. 
Question 7 In addition, paragraph 29 and 30 should be m oved up to follow the new paragraphs following 
paragraphs 24 and 31 and elaborated to explain in more specific terms the Afghan National 
Development Strategy (ANDS) and its relatio nship to investment policy, e.g.:  
- Concerning the ANDS referenced in paragraph 29, please provide a copy of ANDS for 
the Working Party's review. 
- What are the relevant provisions of ANDS with respect to investment promotion and 
incentives?  Does the ANDS, the 2005 Private Investment Law, or any other legal 
instrument of Afghanistan provide for specific investment promotion measures currently operating, e.g., for incentives, p references or other benefits, or for trade 
related investment measures?  If so, please list and describe. WT/ACC/AFG/17 
Page 6  
 
  Answer: 
Afghanistan agrees to move paragraph 29 and 30 up to follow the new paragraphs following 
paragraphs 24 and 31. 
A copy of the Afghanistan National Developmen t Strategy (ANDS) for the period 2008-2013 is 
provided for WP review.  Note that the ANDS is not a legal document.  It is a broad-based strategy to, 
inter alia , encourage investment and private sector deve lopment in Afghanistan and modernize legal 
framework with the aim of increasing employment and GDP growth.  The ANDS does not call for any investment incentives including ta x exemptions except the following: 
Ministry of Finance to create by mid-2008 the necessary legal and fiscal incentives that 
actively encourage individual and corporate s upport for social and economic development.   
There is currently no legislation which provides for fiscal incentives, preferences, or other benefits 
except the following two laws: 
 Income Tax Law of 2009:  For person holding a mining licence or mining authorization or is 
party to a hydrocarbons contract, a special tax regime is provided including accelerated depreciation and exemption from BRT. 
 The Law on Minerals of 2005:  it provides the Ministry of Finance the authority to adopt 
measures for tax and customs duties applicable  to holders of mineral rights and mineral 
activities.  These may include deferral of tax payments, accelerated depreciation, exemptions 
from BRT, and reduction of customs charges on machinery, equipment and other goods used in mineral exploration and exploitation.  
Afghanistan does not currently have any legislation related trade-related investment measures except 
as provided in the mining and hydrocarbon sectors: 
 Mineral Law of 2005: Holders of mineral rights are free to import goods and services 
necessary for their mineral activities, provided th at Afghan Persons are given priority for any 
contract to procure such goods and services, unde r conditions which are e quivalent in  terms 
of quantity, quality, price and delivery dates; 
 Hydrocarbons Law of 2009:  If Afghan goods an d services are similar and equivalent in 
quality, quantity, and price to imported foreign goods and services, the contractor shall be 
obliged to purchase and procure Afghan goods and services. 
Question 8 
Article 32 of the 2005 Private Investment Law states that "tax concessions provided in the Law 
on Domestic and Foreign Private Investment in Afghanistan (Official Gazette number (803), 
dated 1381, in accordance with Article 115 of Th e Income Tax Law" are available to entities 
approved prior to the implementation of the 2005 law. 
- What is the scope and nature of these tax con cessions?  How long will  they last for the 
"grandfathered" entities? 
- Please briefly outline information on this in the Factual Summary in the Investment 
section, e.g., after paragraph 30.  WT/ACC/AFG/17 
 Page 7 
 
 
  Answer: 
Tax concessions provided to certain investors during the period 2002-2005 under the Law on 
Domestic and Foreign Private Investment in Afgha nistan of 2002 (previous law on investment) are no 
longer in effect.  The periods, for which these tax concessions were granted, have expired. 
Question 9 
Concerning Industrial Parks:  Document WT /ACC/AFG/4 (Memorandum on Foreign Trade 
Regime (the MFTR)) states that there is a "maj or program to rehabilitate existing industrial 
parks and to invest in the establishment of a number of new facilities," and that industrial parks are "a means to provide increased acce ss to commercial land allows developers to 
efficiently provide utilities and services  to a large number of businesses." 
Are enterprises established in industrial parks e ligible for any customs tariff, tax, or other 
preferences? 
Answer: 
Enterprises operating within the territory of Afghanist an and inside industrial parks are treated equally 
and are subject to the same laws and regulations and policies of Afghanistan. 
Enterprises established in industrial parks are not eligible for any customs tariff, tax, or other 
preferences that tantamount to subsidies.  Enterpri ses within industrial parks however have access to 
land at lower cost and adequate infrastructure. 
Question 10 
Concerning provisions of the Private Investment Law of 2005:   - Please confirm that the provisions of Arti cle 5.3 authorize the High Commission on 
Investment with the agreement of relevant Mini stries either (a) to restrict investment or 
(b) to provide incentives for it (with Minist ry of Finance approval in the case of tax 
incentives) on a case by case basis to enterprises and industries.   
- If so, please indicate any other conditions that can be imposed on Investment by the 
High Commission in this regard. 
Answer: 
Afghanistan confirms that the provisions of Article 5.3 authorize the High Commission on Investment 
with the agreement of relevant Ministries to pr ovide different terms from generally applied to 
investments (with Ministry of Finance approval in  the case of tax incentives) on a case by case basis 
in certain sectors and for certain types of invest ments.  Such authority has however never been 
exercised. 
Articles 5.1 and 5.5 authorize the High Commission on Investment to, from time to time, respectively 
change the list of sectors in which investments coul d be restricted and amend the list of prohibited 
sectors. 
In accordance with Article 5.2, the High Commissi on on Investment has the authority from time to 
time to limit the share of foreign investment in  some industries, specific economic sections and 
business companies. WT/ACC/AFG/17 
Page 8  
 
  Question 11 
Article 5.4 of the Private Investment Law of 2005 states that non-banking finance activities and 
insurance activities are restricted sectors. 
- Does that mean that investments in any financial service activity other than banking is 
"restricted" vis-à-vis both domestic and foreign investment? 
- What does "restricted" mean in practice for domestic and/or foreign investors in these 
sectors?   
Answer: 
When the Private Investment Law of 2005 was adopted, there was no adequate policy and legal 
framework governing the insurance sector.  The insu rance sector is currently governed by the Law on 
Insurance of 2008.  The insurance is no longer regulated under the Private Law on Investment 
although the reference continues to be in this law. 
As for non-bank finance activities, the High Commissi on on Investment has removed restrictions on 
non-bank finance activities and allowed co mpanies in this sector to establish. 
When the Private investment Law will be amended in the future, these two items (insurance and non-
bank finance activities) will be deleted from the law. 
"Restrict" in practice means that investment could be  subject to certain conditions to be approved by 
the High Commission on Investments.  Such cond itions would apply equally on both domestic and 
foreign investors. 
Question 12 
How long, typically, does it ta ke for the High Commission and/or AISA to approve an 
application for investment, i.e., to "approve " an enterprise?  What fees are involved? 
Answer: 
For investments below US$3 million, AISA issues in one day the AISA licence. 
For investment exceeding US$3 million, the High Commission on Investments would need to approve 
the investment application.  The High Commi ssion on Investments meets once per month and 
considers submitted applica tion during prior month. 
The current fee schedule is provided below: 
Amount of Initial Capital Classification Licensing Fee 
US$5,000  to US$10,000 Small size business US$50  
US$10,001 to US$1,000,000 Medium size business  US$350  
US$1,000,001 or more  Large size business  US$1,000  
The fees above apply to all sectors except construction, logistics, and security where the fee is 
US$700 regardless of the amount of initial capital.  WT/ACC/AFG/17 
 Page 9 
 
 
  Question 13 
Article 10 of the Private Investment Law of 2005 states that an "approved enterprise" for the 
purposes of permitted investment in Afghanista n may be "Business entities organized under the 
laws of another nation, but registered and approved to do business in Afghanistan in 
accordance with the laws of Afghanistan." 
- Specifically and operationally, what does th at mean, e.g., corporate registration and a 
business licence? 
Answer: 
Corporate registration means the act of the State recognizing an association as a legal entity separate 
from the persons who own it.  In other words, it is  the creation of legal entity.  To operate a business 
in Afghanistan, corporate registration is required ( like anywhere else).  This is the case for entities 
which are wholly Afghan-owned, partially Af ghan-owned, and wholly foreign-owned.  
Business licence issued by the Ministry of Commerce and Industries is granting the right to a natural 
person or a legal entity to engage in trade activities (import and/or export). 
Question 14 
- If so, when in the process of getting approval for a foreign investment in Afghanistan 
must a business entity organized under the laws of another nation secure these requirements?  For example, an investment that will build a manufacturing facility from 
the ground up - when in the sequence of even ts must the foreign business entity get the 
corporate registration in Afghanistan, a business licence, and registration as an 
approved enterprise?  How long would all of this take? 
- How is this process different for (a) an Afgh an business entity or entities; and (b) a joint 
venture between private investors and the Af ghan Government?  How long would all of 
this take for an investment that will build  a manufacturing facility from the ground up 
for these investors? 
Answer: 
To invest, there is a need to obtain corporate registration and AISA licence.   
A company with AISA licence can trade for its own operations (in this case a 2 per cent fixed tax is 
applied on customs duty and on value of imported goods) and for commercial purpose (in this case a 
3 per cent fixed tax is applied on customs duty and on value of imported goods).   
A company with an AISA licence do es not need to obtain a business licence unless its main activity is 
international trade.  That said, the company may also  opt not to obtain the Business Licence.  In case 
of business licence, a 2 per cent fixed tax is applie d on customs duty and on value of imported goods 
by this company.  In the case of no business licence, a 3 per cent fixed tax is applied in this case on 
customs duty and on value of imported goods.   
Note that the fixed tax charged on imports is c onsidered an advance payment toward income tax 
liability of the company.  These fixed tax payments on imports can be claimed as credit in the 
calculation of the company's annual income tax assessment. 
The following are the regulatory steps to build a manufacturing facility in Afghanistan from the 
ground up: WT/ACC/AFG/17 
Page 10  
 
   AISA licence, corporate registration and TIN must be obtained first.  This takes one day for 
small and medium size investments.  For investment exceeding US$3 million, the High Commission on Investments would need to appr ove the investment application. The High 
Commission on Investments meets once per m onth and considers submitted application 
during prior month. 
 Then if the activity to be performed by the inv estor requires an activity licence or permit, the 
investor will need to apply for such licence at the relevant ministry.  The process could take 
from three days to one month depending on the activity to be performed. 
These requirements are the sa me for entities which are: 
 wholly Afghan-owned;  
 partially Afghan-owned;  
 wholly foreign-owned; and, 
 Joint venture between Afghan Government a nd private investors (regardless whether local, 
foreign, or mixed). 
Question 15 
Paragraph 28 of document JOB/ACC/28:  We take  note of the ambitious objective of achieving 
full adherence to GAP standards in three to five years.  How does Afghanistan intend to reach 
this objective across the board, bearing in mind that not all agribusiness have the same capacity 
levels to attain those standards? 
Answer: 
Afghanistan recognizes that this is an ambitious aim.   However, there are currently several technical 
assistance projects underway funded by various donor s to build capacity of local service delivery 
suppliers to provide consultancy to agricultural pr oducers on fee basis.  In cooperation with donor 
funded projects, MAIL is building the capacity of extension services field officers to guide 
agricultural producers on goods agricultural practices .  The focus in applying GAP standards will be 
nonetheless on main agricultural products of Afghani stan, particularly fresh fruits and vegetables. 
Question 16 Paragraph 30 of document JOB/ACC/28:  We we lcome the initiatives undertaken to promote 
private investment.  Could Afghanistan please indi cate if a more encouraging tax policy towards 
foreign companies is part of those initiatives? 
Answer: 
The current tax system is undergoing reforms.  VAT will be introduced during the next 3-5 years.  
Please see reply to Question 3 above. 
Afghanistan, in addition, maintains a non-discrim inatory tax policy for both domestic and foreign 
investors.  
Moreover, the current tax rates are relatively low and competitive for attracting investors.  
Afghanistan currently has a 20 per cent flat income tax. 
Afghanistan does not believe that providing tax incentives is an effective policy for attracting 
investors.  WT/ACC/AFG/17 
 Page 11 
 
 
  Question 17  
Paragraph 31 of document JOB/ACC/28:  As obtaining and renewing a licence is still a 
cumbersome and lengthy process, we welcome any positive developments being made as regards 
investment licensing.  Could Afghanistan please u pdate the Working Party on further steps that 
are being taken to improve licensi ng procedures and facilities? 
Answer: 
The process for obtaining AISA licence has been streamlined.  Please see the reply to Question 6 
above. 
- State Ownership and Privatization, State-trading Entities 
Question 18 Please provide a comprehensive list of Afghanistan's State-owned enterprises (SOEs) and 
State-owned corporations (SOCs), i.e., those wi th 100 per cent state owne rship and those with 
partial state ownership that allows the State to participate in their management from 2008 
onward, indicating which ones have been fully privatized and/or opened to partial private ownership, as well as those that have been liquidated. 
Answer: 
In 2008, there were 64 State-owned Enterprises (SOE ).  A new SOE (Afghan Public Protection Force) 
was created in 2011.  Thus, the total is 65.   The following summarizes the status of privatization: 
 
Status SOE 
Privatized 5 
Leased 6 
Corporatized 3 
Liquidated 19 
Pending 27 
Excluded from Privatization 6 
 
Note that one SOE was leased and also corporatized. 
There are 23 corporations in which the state has shares.  These include: 
 Six which are fully owned by the State 
 Eight where the state has majority share 
Note that 11 of these 23 corporations are not operating. We suggest the following changes to paragraph 33 of the Factual Summary: 
33. The representative of Afghanistan said that th e Government would continue the programme 
of privatization and corporatization of Stat e-owned enterprises.  In accordance with the 
privatization policy, enterprises were classified  into the following two categories:  (i) 
enterprises recommended to remain in state ownership and (ii) enterprises recommended for divestiture.  There were originally eight SOEs under the first category.  This was reduced to 
five as a result of the conversion of the Wa ter Supply and Canalization Enterprise and the 
Energy Enterprise Da Afghanistan Brishna Sher kat (DBS) to State-Owned Corporations and WT/ACC/AFG/17 
Page 12  
 
  the liquidation of the Engineering Research Enterp rise.  The five remaining SOEs in the first 
category were:  Millie Bus Enterprise; Impr oved Seed Enterprise; Prison Enterprise; 
Securities Printing Enterprise; and Micrurayan Maintenance (residential apartments).  The 
number of SOEs not subject to privatizati on was increased to six in 2011 as result of 
formation of the Afghan Public Protection Force. There were 5659 SOEs in the second 
category, and they would be transferred to th e private sector based on different methods; such 
as privatization, corporatization, liquidation, sale of assets, sale of shares and others.  In response to a question regarding the privatisa tion project of 5659 State-owned enterprises, the 
representative of Afghanistan said that five of  them had been sold to the private sector; 
another fivesix had been leased long-term to foreign and domestic investors; and 1819 were 
liquidated.  
The full lists of SOEs and Corporations in which the State has share are provided in the two tables 
below. 
 Name of Enterprise Liquidated Corporatized Privatized Leased Pending Excluded 
1 Millie Bus           1 
2 Engineering 
Research 1         
  
3 Securities (Soukook) 
Printing           
1 
4 Prison Industry         1   
5 Improved Seed           1 
6 Micrurayan 
Maintenance   
        
1 
7 Afghan Water 
Supply and 
Sewerage   
1       
  
8 Da Afghanistan 
Brishna Sherkat   
1       
  
9 Cooperative and 
Commercial   
  1     
  
10 Foodstuff         1   
11 Fuel and Liquid Gas         1   
12 Medical Plant Export 1           
13 Samoon Dried Fruit     1       
14 Shir Khan Bander 1           
15 Wool Weaving 1           
16 Afghan Carpentry 1           
17 Afghan Industry 1           
18 Kandahar Wool 
Weaving   
      1 
  
19 Helmand Bust         1   
20 Kunduz Spinzar       1     
21 Bagrami Textile         1   
22 Balkh Gin and Press       1     
23 Balkh Textile         1   
24 Kandahar  Textile          1   
25 Medical Supply and 
Technical   
  1     
  
26 Jabal Seraj Cement         1    WT/ACC/AFG/17 
 Page 13 
 
 
   Name of Enterprise Liquidated Corporatized Privatized Leased Pending Excluded 
27 North Coal       1     
28 North Power and 
Fertilizer         1 
  
29 Ghuri Cement       1     
30 Afghan Gas         1   
31 Mines Extraction 1           
32 Jangalak 1           
33 Rokham Marble 1           
34 Central 
Transportation         1 
  
35 Kamaz 5     1       
36 Kamaz 6 1           
37 Kamaz 7 1           
38 Kamaz 8 1           
39 Kamaz 9 1           
40 Heyratan Technical 
Services     1     
  
41 Hotel enterprise           1 
42 Afghan Advertising 1           
43 Azadi Printing         1   
44 Ariana Printing       1     
45 Afghan Tour         1   
46 Construction 
Material Production         1 
  
47 Kabul 
Slaughterhouse         1 
  
48 Pharmacy 
Department         1 
  
49 Education Printing         1   
50 Afghani 
Construction         1 
  
51 Banaye Construction         1   
52 Housing 
Construction         1 
  
53 Metal Component 
Production         1 
  
54 Jadid Energy 1           
55 Power Construction 1           
56 Helmand 
Construction         1 
  
57 Spin Ghar 
Construction 1         
  
58 Fertilizer and Agro 
Services 1         
  
59 Kabul Silo         1   
60 Pul-i-Khumri Silo         1   
61 Balkh Silo         1   
62 Kandahar Fruit         1   WT/ACC/AFG/17 
Page 14  
 
   Name of Enterprise Liquidated Corporatized Privatized Leased Pending Excluded 
63 Baghlan Sugar 
(coporaized and leassed)   1   1   
  
64 Slaughterhouse and 
Livestock 1         
  
65 Afghan Public 
Protection Force           1 
  19 3 5 6 27 6 
 
The list of corporations in which the State has shares is provided below: 
Corporations with State Ow nership State Share Status 
1 Ariana Airline Corporation  100% Functional  
2 Intercontinental Hotel 100% Functional  
3 ANIC 100% Functional  
4 Afsotar 51% Functional  
5 Esteras 51% Partially Functional  
6 Afghan Telecom 100% Functional  
7 Afghan Card 92% Functional  
8 Afghan Nechi 51% Inactive 
9 Afghan Turk 51% Inactive 
10 Aftanto NA Inactive 
11 Handicraft Industry  40% Inactive 
12 NAPCOD 42% Functional  
13 Afghan Water Supply and Sewerage Company 20% Functional  
14 Afghan Textile  90% Partially Functional  
15 Hochest Company  51% Inactive 
16 Import & Export Company  NA  Inactive 
17 Oil & Soup Production Company  NA Inactive 
18 Mushtaq Bakery Corporation  NA Inactive 
19 Zamir Bakery Corporation  NA Inactive 
20 Vehicle Oil Company  NA Inactive 
21 New Baghlan Sugar  66% Partially Functional  
22 Afghan Teuur  NA Inactive 
23 Da Afghanistan Brishna Sherkat 100% Functional  
 
- Pricing Policies 
Question 19 Please provide a comprehensive chart listing th e goods and services where prices are regulated, 
the legal authority for the regulation and the agency that administers/enforces these price 
controls. 
- Is there any way to appeal price regulation? 
- How are changes in the price cont rols considered and established?   WT/ACC/AFG/17 
 Page 15 
 
 
  Answer: 
The following are the only goods currently subject to price control in Afghanistan:  electricity, water, 
pharmaceuticals, and medical equipment.  The ra tes have been changed as indicated below.  
The reply to this question should supersede all information provided in paragraphs 36-38 of the 
Factual Summary.  Note that cosmetics are not subject to price control. 
The only commercial services subject to price regulation are certain medical services as provided in 
Table below. 
Goods Rates Responsible Authority Legal Basis 
Electricity Unit: AF per kwt 
 Residential depending on 
utilization: 6-10  
 Government entities: 14 
 Non-Government 
Entities: 13 
 Production facilities 
registered at MOCI or licensed by AISA: 9  
 Factories (unregistered and 
not licensed by AISA): 11  
 Other commercial entities 
(not engaged in production): 14 
 These rates vary from one 
region in Afghanistan to 
another. There are 76 regions. The above rates are averages. Da Afghanistan Brishana 
Sherkat (a corporation with 100% Government share) proposes the price for electricity subject to approval by the following 
four ministers: Minister of 
Finance, Minister of Economy, Minister of Rural Development, and Minister of Energy and 
Water.   Board of 
Directors Decision (which comprises all four Ministers) 
Water Unit: AF per cubic meter 
 Residential 
- Constructed with 
permit: 25 
- Constructed without 
permit: 12 
 Commercial: 35 The Ministry of Urban 
Development proposes the prices for water which are then approved by 
Economic Committee 
under the Council of Ministers Council of 
Ministers Decision 
Pharmaceuticals 
and medical 
equipment   10% markup on imports 
and 5% markup on 
wholesale based on the 
Regulation 
 15% markup for retailers 
based on Law 
12% markup for producers ( de 
facto ) Ministry of Public Health Law on Medicine 
of 17 January 
2007  Regulation on Production and 
Import of 
Medicines and Medical Equipment dated February 2007 WT/ACC/AFG/17 
Page 16  
 
  Services Rates Responsible  Authority Legal Basis 
Physicians Unit: AF per checkup 
 High Profile Doctors 
(Professor): 120 
 Specialized Doctor: 100 
 Doctor: 80 Ministry of Public Health Minister of 
Public Health 
Order 
Laboratory and other medical 
services Unit: AF per test 
 Ultrasound: 100 
 Physiotherapy: 100 
 Computed Tomography 
Brain Scan: 1,200 
 Computed Tomography 
Abdominal Scan: 2,000 
 Lithotripsy: 300, 350, and 
450 
 Electrocardiogram: 80 
 Electroencephalogram: 800 
 Echo Cardiography: 800 
 Hemodialysis: 2,000  
 Electrocardiography Test: 
500 
 Endoscopy: 500  Ministry of Public Health Minister of 
Public Health 
Order 
 There are no current mechanisms for appealing price regulation.   
Prices are established as follows: 
 The tariff levels for electricity are established ta king into the cost of generation and/or import 
as well as distribution costs. In addition, a markup of 15% is applied. 
 The tariff levels for water are established b ased on cost of production and distribution. 
 The methodology for price setting mechanism fo r pharmaceuticals and medical equipment is 
to permit reasonable profit and allow recovery  of the operational cost of companies. 
 There is no specific methodology for establishing the rates for medical services other than 
ensuring that charges are reasonabl e and affordable by population. 
From time to time and for the purpose of consum er protection, MOCI imposes price control on 
gasoline, fuel, diesel, and liquefied gas.  The Mini ster of Commerce and Industry issues a Decision in 
this regard. 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
Question 20 Document WT/ACC/AFG/15 (Note on Legislation on  Transparency) states that legislation is in 
preparation to provide access through "official publication" to draft legislation and enacted 
legislation as provided for in Article X of the GATT 1994, the WTO Customs Valuation Agreement, and other WTO Agreements. 
Please indicate in a written response to this commen t, and describe in the appropriate section of 
the Factual Summary (e.g., Framework, Transp arency, or other), specifically, the relevant 
organ of "official publication" for normative legal  acts, including for laws; Presidential decrees 
and orders;  decisions, resolutions, and orders of the Cabinet of Ministers and any Ministerial  WT/ACC/AFG/17 
 Page 17 
 
 
  decrees or orders that are normative or have a ma ndatory character (e.g., websites, periodicals, 
official journals, etc.). 
Answer: 
Article 5 of Afghanistan's Law on Publication and Enforcement of Legislation requires publication of 
the following in the official gazette: 
 Official declarations of the Islamic Republic of Afghanistan which is intended for the public, 
laws, resolutions and other par liamentary legislative documents. 
 Decrees and other legislative documents of th e Islamic Republic of Afghanistan of legal 
nature. 
 Regulations, charters and resolutions of c ouncil of ministers which have legal nature. 
 Contracts, agreements, international protocol s which are signed by the Islamic Republic of 
Afghanistan and decrees relating ratification of these treaties. 
 Legislative documents which the Supreme Cour t based on the law are authorized to ratify 
them. 
 Other legislative acts, dissemination of whic h is required as per the law as well as 
advertisement of trademarks  and related documentation. 
This covers all types of laws and legal acts including those related customs, foreign trade, sanitary and 
phytosanitary measures, and other WTO agreements.  
The Law on Publication and Enforcement of Legislati on will be amended to requi re the publication in 
the official gazette of ministerial level decisi ons and orders which ha ve mandatory character. 
A copy of this law and proposed amendments will be provided to the WTO Secretariat in 
October 2012. 
It is also a common practice in Afghanistan that  ministries and state bodies publish on their websites 
respective laws and sublegal acts. 
As for the publication of draft legislation, Ar ticle 20 of Regulation on Drafting Procedure and 
Processing of Legal Acts will be am ended to include the following: 
 
For matters concerning foreign trade: 
 Except in emergency cases, all in itial draft Laws, regulations a nd other legislative documents 
of the Islamic Republic of Afghanistan shall be  published by ministries and state agencies for 
consultation and public comments prior to finalization. 
 The publication of drafts may be posted thr ough the ministry or state agency website or 
journal and/or national publication (nationwide newspaper) and shall include a reasonable period for commenting (not less than 30 days).  It shall indicate the means through which comments may be submitted to the relevant ministry or state agency. 
 
Ministries and state agencies shall convene working group to discuss received comments including representatives of stakeholders who submitted comments. 
 
Court decisions (including commercial court decisi ons) are published on the website of the Supreme 
Court of Afghanistan as well as in Mezan Gazette and Qaza Magazine. WT/ACC/AFG/17 
Page 18  
 
  Question 21 
The response to Question 5 of document WT/ACC/AFG/7 stated that Afghanistan intends 
"to establish institutions to comply with various WTO Agreements including SPS and TBT 
enquiry and notification points as well as ad ministrative appeal processes as stipulated in 
WTO Agreements". 
- Please indicate when Afghanistan's SPS and TBT enquiry points will be established and 
where. 
- Please identify the draft or enacted legislation or regulation that authorizes their 
establishment. 
- Please identify specifically the legislation in  which Afghanistan intends to establish the 
"administrative appeal processes as stipulated in WTO Agreements". 
Answer: 
The TBT Enquiry Point will be established at ANS A.  The Draft Law on Standards and Technical 
Regulations, once adopted, will authorize its estab lishment.  In accordance with the Legislative 
Action Plan (WT/ACC/AFG/9/Rev.1), this draft la w is anticipated to be adopted during the second 
half of 2013/first half of 2014. 
 The SPS Enquiry Point will be part of the Nationa l SPS Enquiry and Notification Point which will be 
established at MAIL. For more details, please see belo w the reply to Question 109.   The three draft 
SPS laws (the Draft Law on Plant Protection and Qu arantine, the Draft Law on Food, and the Draft 
Law on Animal Health and Public Health) author ize the establishment of the SPS Enquiry Point.  
In accordance with the Legislative Action Plan (WT/ACC/AFG/9/Rev.1), these three draft laws are 
anticipated to be adopted during the second half of 2013/first half of 2014.  Draft provisions for administrative appeal processes  can be found in the following legislation for 
respective issues: 
 
 The Customs Law of 2005 and its draft amen dments as well as Regulation on Customs 
Arbitration of 20 March 2006. 
 Although the SPS Agreement does not require ad ministrative appeal, the Draft Law on Food, 
the Draft Law on Plant Protection and Quarantin e, and the Draft Law on Animal Health and 
Veterinary all provide the right for administrative appeal. 
 The Draft Law on Foreign Trade in Goods pr ovides for administrative appeal for all 
procedures related to trade in goods in this law including import licensing procedures. 
Although the TBT Agreement does not require admini strative appeal, the Draft Law on Standards and 
Technical Regulations provides for right to admini strative appeal concerning results of conformity 
assessment procedures. 
Question 22 
Paragraph 40 of document JOB/ACC/28:  Please indicate in the text of the Factual Summary 
how often the National Assembly is elected and for how long?    WT/ACC/AFG/17 
 Page 19 
 
 
  Answer: 
The National Assembly is elected once every five years. 
Question 23 
Paragraph 41 of document JOB/ACC/28:  The text states that the "powers of the President 
included issuing decrees and promulgating laws and supervising the implementation of the 
provisions of the Constitution.   
- What is the status of Presidential decrees vis-à-vis  laws? 
- What is a "legislative decree" and what is its relationship to a law? 
Answer: 
Presidential Decrees lay down a decision by the President (e.g. on administrative matters, 
appointment). 
Legislative Decrees are issued during recess of th e National Assembly after approval by the Council 
of Ministers.  After endorsement by the President , the Legislative Decree ac quires the force of law. 
A Legislative Decree is essentially a temporary Law.   Legislative Decrees shall be presented to the 
National Assembly within thirty days of convening its first session.   If rejected by the National 
Assembly, the Legislative Decree becomes invalid. 
Question 24 
Paragraph 41 of document JOB/ACC/28:  Are the "Ministers and Governors of the provinces" 
elected or appointed?  If appointed, by wh om and is there legislative confirmation of 
appointees?  Is there a Prime Minister?  If so, what is his role?  
Answer: 
Ministers are appointed by the President and confirmed by the Lower House of the National 
Assembly. 
Governors are proposed by the Independent Direct orate of Local Governance and approved by the 
President. 
The President is the Head of State and the H ead of Government. There is no Prime Minister. 
Question 25 Paragraphs 42 to 43 of document JOB/ACC/28:  The treatment of administrative appeal in 
these paragraphs is confusing.  Please provide a better description of how domestic and foreign 
persons can currently appeal administrative decision s.  To the extent that currently there is no 
such path for appeal, please provide in respon se to this comment an Action Plan for the 
establishment or elaboration prior to Afghanista n's accession to the WTO of mechanisms for 
administrative appeal for WTO-related co mplaints that can meet WTO obligations. 
Answer: 
Please see the following suggested revision: 
 WT/ACC/AFG/17 
Page 20  
 
  42. According to the Constitution, the judicial  branch was an independent branch of the 
Government.  The judicial branch consisted of the Supreme Court, Appeal Courts (Provincial 
Courts), and Primary Courts (District Courts).   The Supreme Court was the highest judicial 
organ.  In response to a specific question as to how administrative decisions in matters 
covered by the WTO Agreement could be appealed  administratively in the first instance, the 
representative of Afghanistan said that, with respect to Customs matters, draft amendments to 
the Customs Law provide persons who receive a decision concerning a particular customs 
transaction with the right to appeal to the Genera l Directorate of Customs.  Such appeals must 
be made within 10 days of notification of the decision.  Any duties assessed will be required 
to be paid and shall be held in trust pending final decision on the appeal.  In the event the 
General Director of Customs does not issue a d ecision within this time period, the request 
shall be presumed to have been decided in favour  of the person making it.  If the appellant is 
not satisfied with the decision of the General Directorate, the appellant shall have the right to 
appeal to the Customs Arbitration Administration or directly to the commercial court, at the 
option of the appellant.  Decisions by the Customs Arbitration Administration may be 
appealed to the relevant commercial court by the appellant, if the amount at issue is 50,000 
Afghani or less, or by either party if the am ount at issue exceeds 50,000 Afghani.  The draft 
amendments will require the General Directorat e and the Customs Arbitration Administration 
to issue decisions on appeal in writing, provi de reasons, and inform the appellant of his 
further rights of appeal.  Afghanistan would need to elaborate provisions to allow access to  
administrative appeal and where relevant, to commercial arbitration.  He noted that the 
Regulation on Customs Arbitration of 20 Ma rch 2006 established the Customs Arbitration 
Administration as an independent/impartial bod y established within the framework of the 
Ministry of Finance, to which the General Dir ectorate of Customs is subordinate.  He noted 
that the Customs Arbitration Administration was not yet functional.  He further said that the 
Afghan Customs Department had established an administrative appeal process based on 
Article 18 of the Customs Law of 4 April 2005.   The Regulation on Customs Arbitration of 
20 March 2006 had been adopted to provide a nother option for traders after administrative 
appeal and prior to seeking court proceedings., 
43. The representative of Afghanistan stated th at there were no administrative tribunals in 
Afghanistan, other than the Customs Arbitration Administration.  A certain number of cases 
concerning the civil responsibility of the State were  dealt with by the courts.  Afghanistan is 
including provisions in the draft WTO related laws to allow access to administrative appeal 
related to WTO matters and where re levant, to commercial arbitration. 
Question 26 
Paragraph 44 of document JOB/ACC/28 discusses th e right of appeal to Afghanistan's court 
system.  Document WT/ACC/AFG/4 (the MFTR), however, states that "The Afghan 
government gives a high priority to the stren gthening of the institutions, including the 
establishment of effective commercial courts, re sponsible for the implementation of commercial 
laws."   
- Please clarify the status and role of commer cial courts in the Afghan judicial system, 
with emphasis on their place in the right of appeal on customs and other trade policy issues.   WT/ACC/AFG/17 
 Page 21 
 
 
  Answer: 
The commercial courts are located at the District level and are the primary courts.  Appeals to the 
decisions of commercial courts are made to the provi ncial level courts.  Further appeals can be made 
to the Supreme Courts.  Commercial Courts handl e all disputes arising from commercial transactions, 
which include customs matters and trade policy issues. 
Question 27 Paragraph 45 of document JOB/ACC/28 states that, "no WTO provisions would be enforceable 
without conforming legislation."  Please elaborate in this paragraph on the relationship of the new implementing legislation to legislative ratification of the WTO accession package by Afghanistan's Parliament, and how the act of ra tification will give the WTO legal effect in 
Afghanistan. 
Answer: 
National laws reflecting WTO provisions will come  into force once adopted and signed by the 
President.  These do not have to wait for comi ng into force until the WTO accession package is 
ratified. 
The WTO ratification relates to the WTO accession package.  The terms of  the accession will come 
into force once the accession package is ratified by parliament.  
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights Question 28 
In response to Questions 20 and 22 of document WT/ACC/AFG/7, Afghanistan notes that it 
would reform its current fee structure to ensure conformity with the GATT 1994.  
We appreciate Afghanistan's commitment to make its fees reflective of the approximate cost of 
services rendered.  Afghanistan also notes that , in 2011, minimum capital for obtaining a 
business licence is higher for foreign traders (U S$10,000) than it is for domestic traders 
(US$1,000) and that the fee for registering a legal entity is one per cent of capital (paragraph 47 
of JOB/ACC/28). 
- Could Afghanistan please explain the policy rationale behind this system? 
- Does Afghanistan intend to change this mi nimum capital and percentage fee system as 
well as its business licensing fee structure? 
Answer: 
The 1 per cent fee for registration of legal entity has been eliminated.  The current fee is US$20 and is 
below the cost of services rendered. 
The reason for lower minimum capital requirements fo r domestic traders is to develop Afghan private 
sector (particularly small and medium size busine ss) and entrepreneurship through encouraging the 
involvement of Afghan nationals in inte rnational trade activities and create jobs. WT/ACC/AFG/17 
Page 22  
 
  The minimum capital requirements for obtaining bus iness licence, which is higher for foreign traders 
than domestic ones, do not constitute a violation of Article III of the GATT 1994 since these apply on 
persons engaged in trade rather than goods. 
Afghanistan acknowledges however that the business licence fee structure is inconsistent with 
Article VIII of the GATT 1994 and will consider am ending it to bring in compliance with the said 
Article upon accession to the WTO. 
Question 29 
The responses to Questions 21 and 30 in document  WT/ACC/AFG/7 indicate that import licence 
fees for medicine and medical equipment are US$800 and US$5,000 for Afghan nationals and foreigners respectively. 
- What is the reason for different licence fees between Afghan nationals and foreigners? 
- Would Afghanistan please explain how such different fee structure would be consistent 
with the National Treatment principle and other provisions of the WTO covered 
agreements (including but not limited  to Article VIII of the GATT 1994)? 
- Would Afghanistan please consider charging both nationals and foreigners the same fee 
in a WTO-consistent manner? 
Answer: 
The reason for different licence fee is to encour age more Afghan nationals to be engaged in 
international trade activities especially in the trade of medicines and medical equipment. 
This different fee structure for obtaining import licence for medicine and medical equipment does not 
constitute a violation of Article III of the GATT 1994 since it applies on persons rather than products. 
Afghanistan acknowledges however that this fee struct ure is inconsistent with Article VIII of the 
GATT 1994 and will consider amending it to bri ng in compliance with the said Article upon 
accession to the WTO. 
Question 30 
Paragraph 46 of document JOB/ACC/28 states that , in order to engage in any business activity 
in Afghanistan including to trade, there is a need to register as a legal person or a sole 
proprietor and to secure a business licence. 
- Please clarify whether the term "trade" c overs both importation/exportation and the 
right to distribute goods domestically (trade). 
- Reference is made to "trade for commerci al activities" requiring a business licence.  
Please clarify as to whether "trade for co mmercial activities" includes importation 
without the right to distribute domestically. 
Answer: 
Trade in this context means importation/exportation only.  It does not cover domestic distribution of 
goods. 
Trade for commercial activities means importing produc ts for selling in the market as distinct from 
own use by the importer.  WT/ACC/AFG/17 
 Page 23 
 
 
  The business licence is optional to have for importing or exporting.  Any person can import or export 
without the business licence. The di fference is that importing with business licence, a 2 per cent fixed 
tax is charged on customs duty and on value of im ported goods.  Without business licence, the fixed 
tax rate is 3 per cent. 
The fixed tax collected upon importation applies against the tax liability of the trader.  These fixed tax 
payments on imports can be claimed as credit in th e calculation of the trader's annual income tax 
assessment. 
The business licence does not govern domestic distribution. The act of importation and the act of domestic distribution are separate in Afghanistan. 
Question 31 
Priority issues:  Because the right to import is  conditioned on having corporate registration and 
a business licence, how long this takes, wheth er imported goods receive national treatment in 
the process, and how much it costs, are relevan t to whether the process is consistent with 
WTO requirements concerning Ar ticles II, III, VIII and XI of the GATT of 1994.   
- In general, how long does corporate registration take?   
- How long does it take to get a business licence? 
 
Answer: 
It takes less than one day to complete corporate registration. 
It takes around two days to get a business licence. 
Question 32 
- Does any person, natural or legal, foreign or Afghan, need (a) to be invested; 
(b) corporate registration or (c) a business licence to import (not to distribute domestically) goods? 
Answer: 
 
To become a legal person, corporate registration is needed. 
Any person, natural or legal, fo reign or Afghan does not need to invest in order to import.  
Any person can import without need for a business licence. 
Any person, natural or legal, fo reign or Afghan does not need a business licence in order to import 
goods or distribute domestically.  The difference is that importing with business licence, a 2 per cent fixed tax is charged on customs duty and on valu e of imported goods.  Without business licence, the 
fixed tax rate is 3 per cent. 
Question 33 
- Why is the minimum capital necessary fo r obtaining business licenses US$1,000 for 
domestic traders and US$10,000 for forei gn traders (response to Question 20 of 
document WT/ACC/AFG/7). WT/ACC/AFG/17 
Page 24  
 
  Answer: 
The reason for lower minimum capital requirements fo r domestic traders is to develop Afghan private 
sector (particularly small and medium size busine ss) and entrepreneurship through encouraging the 
involvement of Afghan nationals in inte rnational trade activities and create jobs. 
Question 34 
- Please clarify whether the fixed taxes of 2 per cent and 3 per cent applied are considered 
fees or taxes, and why they are applied on  licenses necessary for the right to import 
goods, in contravention of Articles VIII and XI. 
Answer: 
The fixed taxes of 2 per cent and 3 per cent are ta xes applying on imported goods.   They are not 
charges to obtain the business licence.  If a pers on has a business licence, the fixed tax on imports 
would be 2 per cent.  Without business licence, the fixe d tax rate is 3 per cent.  The fixed tax collected 
upon importation applies against the tax liability of the trader.  These fixed tax payments on imports 
can be claimed as credit in the calculation of the trader's annual income tax assessment. 
Question 35 
Concerning Licensing and Registration:  Paragraph 46 of document JOB/ACC/28 describes the 
process of registering for commercial activity a nd securing a business licence.  This description, 
however, is deceptively condensed as compared  to the information provided in Annex 3 of 
document WT/ACC/AFG/4, which describes (in more than 4 pages) 18 separate steps with at least 12 separate offices simply to register and s ecure a separate licence to import and to export.  
In addition, each step requires fees. 
For example:  In document WT/ACC/AFG/4, the list of steps is two pages long and involves 
multiple visits to multiple offices of the Mini stry of Commerce and Industry (including Business 
Licensing Directorate, General Department of Corporations, Revenue and Collecting Office, and the Afghanistan Central Business Registry,) Central Bank, Ministry of Finance (Control 
and Collection Department and the Tax Identifica tion Number Office), Ministry of Interior 
Affairs (Criminal Affairs), and Ministry of Justice.   
- Please elaborate on the extensive requiremen ts in the text of the Factual Summary. 
- In addition, administratively, it does no t appear that registration and securing a 
business licence are separate acts, since no registration is possible until the Business 
Licensing Department refers the applicatio n for registration to the Afghan Central 
Business Registry.  Please explain why regis tration is dependent upon getting a business 
licence? 
Answer: 
There is no rationale for this inter-dependency.  Af ghanistan is currently reforming the current system 
to separate registration from business licensing and restructure the business licence.  A progress report 
will be provided during the ne xt Working Party meeting. 
Afghanistan has no objection to elaborate the ex isting requirements for business licensing in the 
Factual Summary as described in Annex 3 of WT/ACC/AFG/4.  It is however important to note that the fees which were provided in Annex 3 of WT/A CC/AFG/4 are no longer valid.  The current fees 
are provided in the reply to Question 37 below.  WT/ACC/AFG/17 
 Page 25 
 
 
  Question 36 
We strongly suggest that Afghanistan review it s corporate registration and business licensing 
requirements with a view to sorting out the following issues: 
- For the purposes of corporate registration:  drawing a more specific distinction of the 
difference between the act of importation and the act of domestic distribution. 
- For all entrepreneurs:  drawing a more specific distinction between the act of 
registration and the licensing that may be necessary for certain activities. 
- For all entrepreneurs:  eliminating elements of, or at least streamlining, the extended list 
of requirements for corporate regis tration and for business licensing. 
We request that Afghanistan provide an Action  Plan for review at the next Working Party 
meeting that clarifies definitively Afghanistan' s requirements for importation (as distinct from 
domestic distribution) and on how it w ill accomplish these foregoing objectives. 
Answer: 
The act of importation and act of distribution are two distinct acts in Afghanistan. 
Corporate registration is totally a separate act fro m the act of licensing that may be necessary for 
performing certain activities. 
The requirements of corporate registration have b een streamlined.  Registration can be accomplished 
in less than one day and the cost is US$20. The following are required: application for corporate 
registration, Articles of Association, and Share holders' Agreement, two passport size photos.  
Afghan citizens must provide their national identity ca rd.  Foreign citizens (as individual investors or 
representatives of foreign company) must provide a copy of passport.  For foreign legal entities, a 
copy of certificate of registration of the legal entity  attested by Ministry of Foreign Affairs and the 
Afghan Embassy in the home country of the foreign legal entity. 
The following requirements w ill be eliminated in 2012: 
 Letter from the Afghan Ministry of Foreign Affair s that the applicant has no criminal record. 
 Letter attested by Ministry of Foreign Affairs and the Afghan Embassy in the home country 
of the investor indicating that the fo reign citizen has no criminal record. 
Afghanistan is currently working on restructuring the business licence.  A progress report will be 
provided during the next Working Party meeting. 
Question 37 
Concerning Fees for Licensing and Registrati on:  Paragraph 54 makes it clear that 
Afghanistan's fees for registration and business licenses are in no way administrative, but, as a percentage of the value of the firms applying for these necessary tools of trade, i.e., a form of 
business taxation, and purposefully discriminato ry against foreign applicants.  These fees 
constitute taxation of the act of importation th at is neither a tariff, nor an equally applied 
domestic tax, nor a fee for services rendered, and is thus inconsistent with WTO obligations contained in Articles II, III, VIII and XI.  Th e activity fee for a licence necessary for  
importation obviously is ad valorem , i.e., not based on the cost of any service rendered in 
providing the licence (Article VIII); clearly acting as a non-tariff tax on importation of these 
goods (Articles II and XI); and discriminating  against goods imported by foreigners 
(Article III). WT/ACC/AFG/17 
Page 26  
 
  - This issue was raised at the last meeting.   The representative of Afghanistan replied that 
Afghanistan would reform the current fee structure to ensure conformity with 
WTO rules to reflect the approximate cost of services rendered. 
- We would like to see an Action Plan for th ese changes and including specific reference to 
every fee required for every step in  the process laid out in Annex 3. 
Answer: 
The 1 per cent fee for registration of legal entity has been eliminated. The current fee is US$20 and, it 
is below the cost of services rendered.  Adjustme nts will be made based on sound cost principles.  
The fee however will remain fixed (not ad valorem ) and reflect the approximate cost of services 
rendered. 
There is no ad valorem  fee associated with the business licence.  The schedule of fees for obtaining the 
business licence is the following: 
(i) for Afghan legal persons approx. US$57;  
(ii) for sole proprietor approx. US$34;  
(iii) for foreign natural and legal persons ap prox. US$1,400 plus approx. US$29; and  
(iv) for agency (representative office) US$1,900 plus approx. US$19.   
 
The fee schedule for the annual renewal of  the business licence is the following:  
(i) for Afghan legal persons approx. US$43;  
(ii) for sole proprietor approx. US$33;  
(iii) for foreign natural and legal persons  US$400 plus approx. US$29; and  
(iv) for agency (representative office) US$900 plus approx. US$19.   
 The business license fees do no violate Article III of the GATT 1994 since these apply on traders 
rather than goods.  
Afghanistan however recognizes that the business lic ence fees violate Article VIII of the GATT 1994.  
Afghanistan will revise these fees prior to accession to reflect the approximate cost of services 
rendered. 
Note that the fee structure for obtaining busin ess licence outlined in Annex 3 of WT/ACC/AFG/4 is 
no longer valid.  The curre nt fees are provided above. 
Question 38 
The fee structure differs for traders with or with out corporate and/or investment registration 
and business licenses, which implies that there exis ts a class of importers that do not require a 
business licence.   
- Please clarify whether there is a class of importers that do not require a business licence. 
- Please confirm whether all persons of either Af ghan or foreign nationality, that either 
have or have not invested in Afghanistan: 
 (a) are required to obtain a business licence in order to import; and 
 (b) whether persons of Afghan or foreign nationality obtain that licence at the same 
or different cost.  WT/ACC/AFG/17 
 Page 27 
 
 
  Answer: 
There is no specific class or category of importers who are treated differently with respect to business 
licence.  It is the decision of the importer wh ether to import with or without business licence. 
Any person can import with or without a business licence. Importing with a business licence, a 2 per 
cent fixed tax is applied as tax on imports.  Impor ting without a business licence, a 3 per cent tax is 
applied on imports.  In both cases, these payments apply against the trader's tax liability.   
These payments can be claimed as credit in the calculation of the trader's annual income tax 
assessment. 
As such, traders have the option to obtain or not to  obtain the business licence.  Without obtaining the 
licence, traders are making 1 per cent (3 per cent instead of 2 per cent) extra advance payments 
toward their tax liabilities. 
Obtaining the business licence does not require inv estments in Afghanistan since one can import 
without the business licence.  The cost of obtaini ng the business licence is different for Afghans from 
foreign nationalities.  Please see reply to previous question. 
Question 39 
Concerning the response to Question 21 in document WT/ACC/ AFG/7:  If Afghanistan wishes 
to discriminate in the terms for wholesale and re tail domestic distribution of medicines, medical 
equipment, and pharmaceuticals between Afghan na tionals and foreigners, this is a matter to be 
addressed in Services negotiations.   However, the right to import these goods cannot be taxed 
except through taxes, tariffs, and fees applied to good s, as laid out in Articles II, III, VIII and XI 
of the GATT 1994. 
Afghanistan should make appropriate adjustments in its legislation to make those distinctions. Answer: 
Afghanistan will revise current fees for import licens es related to medicines and medical equipment to 
ensure conformity with Article VIII of the GATT 1994.   Amendments to relevant legislation will be 
made by the date of accession to the WTO. 
Question 40 The response to Question 22 in document WT/ACC/ AFG/7 is internally inconsistent, stating 
that "There is no class of importers that do not require a business licence," and that "Any importer (domestic or foreign) can opt to obta in or not obtain a business licence."  Is this 
practice the same for other import activity licenses? 
Answer: 
There is no specific class or category of importers who are treated differently with respect to business 
licence.  Any person can import with or without a business licence. Importing with a business licence, 
a 2 per cent fixed tax is applied as tax on imports .  Importing without a business licence, a 3 per cent 
tax is applied on imports.  In both cases, these paym ents apply against the trader's tax liability.  
These payments can be claimed as credit in the calculation of the trader's annual income tax 
assessment. 
The licenses or similar measures (permits, approv als, and authorizations) required for importing 
specific products are mandatory.  Affected produc ts cannot be imported without relevant licenses, WT/ACC/AFG/17 
Page 28  
 
  permits, approvals, and authorizations.  (Reference for these products is Table 4(a) in the Factual 
Summary). 
A. IMPORT REGULATIONS 
- Ordinary customs duties Question 41 
Paragraphs 56 to 58 of docume nt JOB/ACC/28:  The Factual Summary states that the Customs 
Law of 2005, apparently not amended since 2010, implements HS2012 tariff schedule.  How is that possible legally?   
Answer: 
The Customs Law has not been amended since its adoption in 2005. The Customs Law was not amended in 2010.  Paragr aph 56 in the Factual Summary indicates that 
draft amendments were prepared in 2010.  These have not been yet adopted. 
The tariff nomenclature is not adopted or change d through amending the Customs Law.  HS 2012 was 
adopted by revising and adopting Afghanistan's tariff schedule, a separate document from the 
Customs Law. 
Question 42 - Please provide a chart indicating the number of tariff lines and approximate quantity of 
trade in a recent representative year is cov ered by the current applied tariff rates, e.g., 
how many lines at zero, more than zero to fi ve, more than five to ten, more than ten 
to 20, more than 20 to 35, and more than 35 to 50? 
- Please indicate what sort of products are subj ect to tariffs at rates of 20, 25, 35, 40, and 
50 per cent?  
Answer: 
Afghanistan's current applied tariff rates are as follows: 
Tariff Rates Number of 
Tariff lines Share of 
Lines Import Value 
(in US$ million) Share of Trade 
Zero 27 0.5% 2.6 0.0%
From 0 to 5% 3625 71.6% 4,796.5 62.9%
More than 5% to 10% 1235 24.4% 1,347.8 17.7%
More than 10% to 20% 113 2.2% 1,141.0 15.0%
More than 20% to 35% 52 1.0% 269.2 3.5%
More than 35% to 50% 9 0.2% 65.2 0.9%
More than 50% 0 0% 0.0 0.0%
Total 5,061 100.0% 7,622.3 100.0% WT/ACC/AFG/17 
 Page 29 
 
 
   
As indicated above, most imported goods falls  within 0-10 per cent duty range for 2011. 
Products subject to tariffs rates 20, 25, 35, 40, and 50 per cent are the following: 
Tariff rates Product description 
20% Juices, Beverages 
25% Fruits and nuts, processed marble, salt,  plaster, gypsum, lime, furniture, carpets 
35%-50% Vehicles and salt 
 
Question 43 Article 119 and 127 of the draft Customs Law amendments establish the tariff debt applied to 
goods processed in a duty free zone, free warehouse,  or free shop and sold into the customs 
territory of Afghanistan.   
Please indicate how the tariff debt for these goods would be calculated for a final product with 
the following characteristics: 
- Composed of imported physical inputs; 
- Composed of a mixture of imported  and domestic physical inputs; and 
- Composed only of domestic physical inputs but with value added from the 
manufacturing process. 
Answer: 
Under Article 127(4), where Afghan goods are placed in a zone/warehouse/duty-free shop, processed, 
and then removed, the customs debt  shall be determined in accordance with Article 119; that is, as if 
the goods were temporarily exported and returned after processing.  Article 119 provides that import 
duty shall be imposed on the value added to th e goods, calculated in accordance with Article 24 
(the usual customs valuation rules), but if the added value is less than 5 per cent, no duty is charged.  
The tariff rate is that rate that would be app licable to goods identical to the removed product 
(the "compensating products").   
In other cases (that is, where imported goods ar e placed in a zone/warehouse/free shop, undergo 
processing, including mixture with Afghan materials,  and exited), Article 127(5) provides that the 
goods may be exited in accordance with the relevant procedures ( i.e., declared for free circulation or 
other procedure).  Article 127(2) provides that the value shall be calculated in accordance with Article 
24 (the customs valuation rules).  Rules and instru ctions to implement these provisions have not yet 
been developed. 
Note that currently there are no duty free zones, free warehouses, or free shops in Afghanistan where 
goods are processed. 
- Other duties and charges Question 44 Paragraph 59 of document JOB/ACC/28:  We are willing to consider favourably Afghanistan's 
request to schedule the Tax Benefiting the Afghan Red Crescent Agency of 2 per cent of the value of the customs duty as an other duties and charges (ODC) (bound at that level) in the WT/ACC/AFG/17 
Page 30  
 
  context of normalizing Afghanistan's other fees and taxes on imports in line with WTO 
requirements.   
Answer: 
Afghanistan will table the Tax Benefiting the Afgha n Red Crescent Agency as ODC in its Schedule of 
Concessions and Commitments on Goods. 
- Tariff rate quotas, tariff exemptions Question 45 Paragraph 60:  Please clarify that the "fuels , lubricants and equipment carried with and 
necessary for the normal functioning of transp ort vehicles in accordance with the relevant 
procedure" applies only to fuels, lubricants a nd equipment of transport vehicles bringing goods 
into Afghanistan from abroad, and not such goods imported for commercial sale.  
Answer: 
Afghanistan confirms that exemption applies only to  fuels, lubricants and equipment of transport 
vehicles bringing goods into Afghanistan from abro ad, and not such goods imported for commercial 
sale. 
- Fees and charges for services rendered Question 46 In the response to Question 26 of document WT/ACC/AFG/7, Afghanistan recognizes that the 
current fee structure for customs storage is WTO inconsistent and states that a new structure will be in place prior to WTO accession which w ill be based on fixed fee per cubic meter.   
- Please indicate what legislative or other steps Afghanistan has taken to make this 
happen?  Is this legislation referenced in the Legislative Action Plan? 
- Please provide an Action Plan on the implementation of this commitment. 
Answer: 
2012: Afghanistan is working on establishing a new WT O-consistent fee structure for storage fees 
which is based on storage space. 
2013: Appropriate legislative act will be adopted to  bring the new fee structure into force in 2014.  WT/ACC/AFG/17 
 Page 31 
 
 
  - Application of internal taxes to imports 
Question 47 Paragraph 64 of document JOB/ACC/28:  All info rmation on the "20 per cent flat income tax" 
levied on legal persons, as well as any informatio n about "other taxes. . . applied on . . . legal 
and natural persons, [and ] land" should be moved to the section on Monetary and Fiscal 
Policies.  Information about taxes or fees on " economic activities" dealing with importation or 
exportation (like activity licensing fees) should be covered in the "Trading Rights" section.   
This section should be reserved solely for the "application of internal taxes to imports," 
i.e., imported goods, so the first sentence of the paragraph can be eliminated and that information described in other sections. 
Answer: 
Afghanistan has no objection to such restructuring and looks forward to review such text when 
completed by the WTO Secretariat. 
Question 48 
Paragraphs 66 to 68 indicate that there are a numb er of taxes on imports that are neither tariffs 
nor ODCs.  The reference to exemption of expo rts from the BRT in paragraph 97 and in the 
response to Question 45 confirms that this is actua lly a tax on imports.  It does not appear that 
any of the taxes described as currently applied are WTO-consistent.  These non-tariff charges include:   
(a) The fixed taxes of 2 per cent or 3 per cent of the customs duty and customs value of 
imported goods; and 
(b) The Business Receipt Tax (BRT) of 2 per cent of the customs duty and customs value of 
imported goods. 
- Please indicate, explicitly, how Afghanistan in tends to ensure that its taxes on imports 
not applied on like domestic products will be  eliminated and/or replaced with taxes or 
tariffs applied in conformity with Articles II and III of the GATT 1994. 
Answer: 
The BRT will be replaced by VAT which will a pply equally on domestic and imported goods.  
The VAT system is expected to be operational in 2014-2015. 
The fixed taxes of 2 per cent and 3 per cent of th e customs duty and customs value of imported goods 
are considered an advance payment toward inco me tax liability of the trader.  These fixed tax 
payments on imports can be claimed as credit in th e calculation of the trader's annual income tax 
assessment.  This is a minor administrative process.  As such, Afghanistan does not view the 
application of fixed tax on imports as  violating Article III of the GATT 1994.  
Question 49 
There is not enough information in these paragr aphs on the taxes currently applied or the 
proposed changes in this tax regime described br iefly in paragraph 15 of the Factual Summary.  
Could Afghanistan provide additional explanation with regard to: WT/ACC/AFG/17 
Page 32  
 
  - the current taxes applied to imported goods or to the act of importation;  
- the changes proposed, i.e., how will the revi sed fixed taxes and BRT function, and what 
changes will occur with respect to a Valu e Added Tax (VAT) and Income Tax; and  
- a precise timeline of the introduction of the new system, i.e., how these taxes will be 
brought into line with WTO requirements? 
Answer: 
The current taxes applied on imports are provided in  Table 2 of the Factual Summary and reproduced 
below. 
Table 2:  Taxes on Imports 
Type Rate Note 
Tax benefiting 
Afghan Red Crescent Agency 2% of the value of customs 
duty  Applied on all imports except food items. 
Fixed Tax 2% of (customs duty + 
customs value) or  
3% of (customs duty + 
customs value) if no business licence Applied on all imports.  The 2% can be 
claimed as credit in the calculation of the 
person's annual income tax assessment. 
Business Receipts 
Tax (BRT) 2% of (customs duty + 
customs value)  Cannot be claimed as credit. 
 
The BRT will be replaced by VAT which will a pply equally on domestic and imported goods.  
The VAT system is expected to be operational in 2014-2015. 
The fixed taxes of 2 per cent and 3 per cent of th e customs duty and customs value of imported goods 
are considered an advance payment toward inco me tax liability of the trader.  These fixed tax 
payments on imports can be claimed as credit in th e calculation of the trader's annual income tax 
assessment.  This is a minor administrative process.  As such, Afghanistan does not view the application of fixed tax on impor ts as violating Article III of the GATT 1994.  Afghanistan does not 
intend to change the fixed tax system at this stage. 
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
Question 50 
The response to Question 28  of document WT /ACC/AFG/7 indicates that Afghanistan is not 
prepared to immediately rescind its overall ban on  imported cotton seed based on historic, i.e., 
not current, evidence of disease in a few countries.   
Afghanistan cannot maintain such WTO inconsis tent import bans after accession without 
scientific justification.  Please indicate specifica lly what will be done to regularize this measure 
in line with international norms prio r to Afghanistan's WTO accession.  
Answer: 
Afghanistan has eliminated the import ban on cotton seed.  WT/ACC/AFG/17 
 Page 33 
 
 
  Question 51 
Concerning the response to Question 29 of docu ment JOB/ACC/28, Afghanistan notes that it 
eliminated import prohibitions applied to protect  local production of table salt, powdered salt, 
gypsum, anhydride, and plasters in August 2011.  Please provide a copy of the legislative instrument used to do this. 
Answer: 
The changes were made to the tariff schedule whic h references prohibited goods as "P".   The tariff 
schedule can be accessed http://customs.mof.gov.af/en . 
Question 52 
In response to Question 30 of document WT/ACC/AFG/ 7, Afghanistan notes that it applies 
import licensing measures to a range of import s, including an annual import licence fee of 
US$2,220 for telecommunications equipment.  In document WT/ACC/AFG/10 (page 46) Afghanistan notes that an importer and selle r licence issuance fee is US$11,110 at first 
application while an additional administration fee is US$11,110.  The administrative fee is charged for renewal, which is required each year. 
- Could Afghanistan please explain the difference between the fees for 
telecommunications imports reported in documents WT/ACC/AFG/7 and 
WT/ACC/AFG/10?  
- Could Afghanistan please explain the policy ra tionale for such a high administrative fee 
in the case of telecommunications imports? 
Answer: 
The fee of US$11,100 for the issuance of the Impor t and Re-Sell Licence of telecommunications 
equipment indicated in WT/ACC/AFG/10 is incorrect.  It should have been US$2,220 as stated in WT/ACC/AFG/7. 
Note however that recently the Afghan Telecommuni cations Regulatory Agency (ATRA) reduced the 
fee for the Import and Re-Sell Licence for te lecommunications equipment from US$2,220 to 
US$1,000.  
The policy rationale for this fee is to cover ATRA administrative/operation costs. 
Question 53 
Paragraph 69 of the Factual Summary states that in order to import certain animal and plant 
products, these goods had to be registered at the Industrial Commercial Se rvices Association for 
Animal and Plant Product. 
- Why is registration of these products n ecessary?  Is it related to sanitary or 
phytosanitary requirements?  If so, wh at role does registration play in this? 
- Please explain why the fees listed in Tables 3(a) and 3(b) are assessed?   - Are these products also produced in Afghanis tan?  If so, must the domestic output also 
be registered?  If not, why not? 
- What Ministry collects these fees and wh at services are provided which justify their 
assessment? WT/ACC/AFG/17 
Page 34  
 
  - Why is this reported in the section on quantitative restrictions and licensing 
procedures? 
Answer: 
Note that this registration is not mandatory.  It is not related to sanitary or phytosanitary requirements.  
The fees are assessed for collecti ng funds for this Association from its members.  Fees are not 
collected by or for any government entity or for budg et.  Export registration is for products produced 
in Afghanistan.   Since this a purely voluntary regist ration for the Members of this Association, texts 
(and related Tables 6(a) and 6(b)) re lated to this registration may be totally deleted from the Factual 
Summary. 
Question 54 
Paragraph 70 and document WT/ACC/AFG/10:  We  thank Afghanistan for the information on 
its import licensing requirements and the provisi on of document WT/ACC/AFG/10.  However, 
the Factual Summary lists imported goods fo r which licenses, permits or approvals are 
necessary.  A number of goods are referen ced that are not covered in document 
WT/ACC/AFG/10, Afghanistan's responses to the questionnaire on Import Licensing 
Procedures.   
Specifically, there is no description in docu ment WT/ACC/AFG/10 concerning permits and 
approvals necessary for the importation of arms , ammunitions, military equipment; medicine 
and medical equipment (separate from the requirements for pharmaceuticals, medical 
equipment, cosmetics and pharmacy tools); pest icides and agrochemicals; seeds; and printed 
books, brochures, leaflets, and other printed matters. 
- Please provide a revised response to the Impo rt Licensing Questionnaire and cover these 
requirements, which clearly meet the definition of import licensing contained in Article 1 of the WTO Agreement on Import Licensing Procedures.   
- We seek confirmation that no other impo rts in the normal course of trade require a 
licence for customs clearance.  
Answer: 
Afghanistan will update Import Licensing Questi onnaire and expand WT/ACC/AFG/10 to cover: 
 Activity licence to import medicines and medical equipment; 
 Import permit for arms, ammunitions, military equipment; and 
 Import approval for printed books, brochures,  leaflets, and other printed matters.  
A revised WT/ACC/AFG/10 will be provided by the end of 2012. There is no import permit for seeds but rather Seeds Import Certificate issued by the Seeds 
Directorate at MAIL.  We suggest moving this from Table 4(a) and the import licensing section to 
SPS Section. 
As for the import of pesticides, an import permit is not required.  Rather, an agreement must be signed 
between the Department of Plant Protection and Quar antine and importers of agricultural pesticides of 
various types.  The agreement lays out the ob ligations of both parties which include requiring 
importers to provide safety and quality certificate of pesticides from the country of origin.  Also, samples are taken at the border for testing of pesticides prior to clearance.  WT/ACC/AFG/17 
 Page 35 
 
 
  As for the import of agrochemicals, the importer must provide information about the importing entity 
to MAIL.  A quality certificate issued in the c ountry of origin is required for the import of 
agrochemicals. 
Question 55 
Paragraph 73 of document JOB/ACC/28:  Are there any restrictions for dangerous pesticides 
already banned in the WTO Member countries? 
Answer: 
The list of dangerous pesticides is provided in A ttachment 1 and covers 82 items with some falling 
under more than one category: 
 Banned by a Party of Rotterdam and thus on Prio r Informed Consent (PIC) Procedure List: 29  
 Banned as per Stockholm Convention List: 9  
 Indian Decision (B/RU/RR/W): 69 
Question 56 
Paragraph 75 of document JOB/ACC/28:  We look  forward to reviewing the revised (expanded) 
document WT/ACC/AFG/10 and to reviewing the legislation that establishes WTO-consistent 
procedures for the application of these requirements. 
Answer: 
Please see the reply to question 54 above. 
 
The Draft Law on Foreign Trade in Goods will be pr ovided to Working Party Members for review by 
the end of 2012. 
Question 57 
Concerning the response to Question 21 of docume nt WT/ACC/AFG/7 on import licensing and 
permits required by the Ministry of Public Heal th for the importation of medicines, medical 
equipment, and pharmaceuticals: 
- Please clarify/confirm that both an import li cence and an import permit are necessary to 
import medicines, medical equipment, and pharmaceuticals. 
- Please clarify/confirm that only pharmacists,  doctors, and companies that have at least 
one pharmacist or doctor on their staff m ay apply for the right to import these goods. 
- Please explain the operational differences betw een the import licence issued for a year 
and renewable at no cost and the import permit issued for a specific quantity of imports over a period of a year. Why are both necessary?   
- Why is the import licence fee higher for forei gn importers than for Afghan nationals?  
Are foreign-owned firms registered in Afgh anistan considered "Afghan" or "foreign" 
for the purpose of this fee? 
- Is the import licence an activity licence authorizing importation of medicines and 
medical equipment. WT/ACC/AFG/17 
Page 36  
 
  Answer: 
Afghanistan confirms that an import permit is necessary to import medicines (pharmaceuticals) and 
medical equipment. 
To obtain the import permit, a natural or legal pe rson must first have an activity licence to import 
medicines (pharmaceuticals) and medical equipment. 
Companies engaged in importation of medicine a nd other medical equipment cannot operate without 
pharmacist.  Afghanistan confirms that only companies that have at least one pharmacist on their staff may apply for the right to import medicines (pharmaceuticals) and medical equipment.  
Natural persons (Doctors and pharm acists) cannot import medicines or medical equipment.  These can 
only be imported by companies as indicated above. 
The first sentence of paragraph 55 should read as follows: 
55. A Member raised a concern that the fees  for an activity licence to import medicines 
medical substances and medical equipm ent cost Afghan nationals US$800 while 
foreigners were charged US$5,000, and urged Afghanistan to reform its fee structure.   
The activity licence is needed to ensure that the importer had the necessary qualifications for handling 
such sensitive products like medicines (pharmaceutical s) and medical equipment.  The activity licence 
can be viewed as the right to import medicines (pharmaceuticals) and medical equipment. 
On the other hand, the import permit is need ed for each import consignment of medicines 
(pharmaceuticals) and/or medical equipment. 
Question 58 
- Why is the import licence fee higher for forei gn importers than for Afghan nationals?  
Are foreign-owned firms registered in Afgh anistan considered "Afghan" or "foreign" 
for the purpose of this fee? 
Answer: 
Foreign-owned firms registered in Afghanistan are considered "Afghan" for the purpose of this fee. 
The reason for different licence fee is to encourage Afghan firms to be engage d in international trade 
activities especially in the trade of medicines and medical equipment. 
Question 59 
- Is the import licence an activity licence authorizing importation of medicines and 
medical equipment. 
Answer: 
The import licence of medicines and medical equi pment is an activity licence given that only 
companies having at least one pharmacist on their staff may apply for the right to import medicines 
and medical equipment.  WT/ACC/AFG/17 
 Page 37 
 
 
  Question 60 
The response to Question 22 of document WT/ACC/AFG/7 and Table 4(a) of document 
JOB/ACC/28 state that the fee for an import permit from the Ministry of Public Health to import pharmaceuticals and medical equipmen t, cosmetics, and pharmacy tools is 0.075 
per cent of value of import consignment.  The im port permit is issued for a specific quantity of 
goods to be imported under one or multiple shipments over a period of one year. 
Licensing fees for importation cannot be based on  the value of the imports and be considered 
consistent with Article VIII of the GATT 1994. 
Answer: 
Afghanistan recognizes that this fee is not reflective of costs of services rendered and will adjust prior 
to WTO accession to reflect the actual cost of services rendered. 
Question 61 
Table 4(a) indicates that the importation of Pakistani, Indian and USA films require a 
"licensing fee" of about US$50 while the fee for films from other countries is only about US$30. 
- Please clarify why the fee is assessed on a discriminatory basis?   Please describe why 
there is an additional "licensing fee" of US$10 for a "board review". 
- We expect that all fees applied in co nnection with importation and exportation 
(as opposed to tariffs on imported goods) will be applied only for specific services and on 
a completely non-discriminatory basis. 
- Please indicate how and when the current system will be revised to meet those 
objectives. 
Answer: 
Afghanistan will revise its licence fees for the import of films to ensure consistency with Article I of 
the GATT 1994. 
The additional fee of US$10 for board review is for screening films for the purpose of censoring.  
The amount is reflective of the cost of services rendered. 
Question 62 Table 4(a) indicates that "licensing fees" for a permit to import telecommunications equipment 
are applied based on the value of the shipme nt and not for services rendered as required by 
Article VIII of the GATT 1994. 
- Why are the fees for a permit to import diff erent from the fee for an import licence?   
- How is the licensing fee of US$2,200 related to the cost of services rendered? 
- Please explain how these fees will be revis ed to come into conformity with 
WTO provisions. 
Answer: 
The fee structure for import permit for telecommunications equipment is consistent with Article VIII of 
the GATT 1994 since a ceiling of US$500 is established. WT/ACC/AFG/17 
Page 38  
 
  - Under US$10,000, the fee is US$40;  
- From US$ 10,001 to $100,000, the fee is US$100;  
- From US$100,001 to US$1,000,000, the fee is  US$300; and  
- Above US$1,000,000, the fee is US$500. 
 
The fee of US$2,200 for import licence was recently reduced to US$1,000.  It is designed to recover 
administrative costs incurred by Afghanistan Telecommunications Regulatory Authority.  Afghanistan will assess the fee structure for import permit and import licence for telecommunications to ensure it is reflective of cost of services re ndered in line with Article VIII of the GATT 1994. 
Question 63 Additional "fixed taxes" of 2 per cent and 3 per cent  of the total value of imports are also noted.  
More information is needed about how these tax es and fees relate to each other and precisely 
who is, and who is not, required to have a busin ess licence to import and to export.  The overall 
fee structure remains discriminatory. 
We urge Afghanistan to work with interested delegations to clarify these issues, in order to 
encourage broad reform of the current licensing system and fee structure to bring it into conformity with WTO provisions. 
Answer: 
The business licence is optional to import and export .  If an entity decides not to have a business 
licence, then it will be charged 3 per cent fixe d tax on customs duty and value of imported goods 
whereas with a business licence a fixed tax of 2 per cent is charged on customs duty and value of 
imported goods. 
If an entity imports for own use, a fixed tax of 3 per cent is charged unless the entity has an AISA 
licence.  In such case, a fixed tax of 2 per cent is charged. 
The fixed tax is an advance payment against tax liability of the trader.  These payments can be 
claimed as credit in the calculation of the trader's annual income tax assessment. 
- Customs valuation 
Question 64 We thank Afghanistan for its responses to our questions in documents WT/ACC/AFG/6/Rev.1 
and WT/ACC/AFG/7.  We will provide detailed questions and comments on the relevant legislation circulated in documents WT/ACC/A FG/5/Add.1 and WT/ACC/AFG/14, bilaterally 
in writing.  However, the information from the following questions should be incorporated into 
the text of the Factual Summary: 
Articles 2.1(b), 2.2, and 2.3 of the WTO Agreem ent on Customs Valuation (CVA) do not appear 
to be incorporated in Afghanistan's legislation.   What steps is Afghanistan taking to reflect 
these Articles in its legislation?  WT/ACC/AFG/17 
 Page 39 
 
 
  Answer: 
These provisions of the CVA are incorporated in the draft Regulation on Customs Valuation which 
will replace the Council of Ministers Regulation No. 38 of 23 January 2006.  A copy of this draft 
regulation will be submitted in November  2012 for review by the Working Party. 
Question 65 
Articles 3.1(b), 3.2, and 3.3 of the CVA do not appear to be incorporated in Afghanistan's 
legislation.  What steps is Afghanistan taking to reflect these Articles in its legislation? 
Answer: 
These provisions of the CVA are incorporated in the draft Regulation on Customs Valuation which 
will replace the Council of Ministers Regulation No. 38 of 23 January 2006.  A copy of this draft 
regulation will be submitted in November  2012 for review by the Working Party. 
Question 66 
Article 12 of the WTO CVA pertains to the country of importation's publication of laws, 
regulations, judicial decisions and administrative rulings of general application.  Article 12A of 
the draft Customs Law Amendments refers to th e publication of administrative decisions or 
rulings.   
- Please clarify whether Article 12A provides for the publication of judicial decisions, as 
required by Article 12 of the CVA.  It is not clear from the text provided what Afghanistan is proposing to publish.   
Answer: 
Afghanistan confirms that proposed Article 12A in the Draft Amendments to the Customs Law 
requires the publication of administrative decisions of general application.  Th e Article is as follows: 
Article 12A Publication of Decisions 
(1) Customs shall promptly make publicly avail able adminstrative decisions or rulings of 
general application by such means as shall enable traders and other interested persons to 
become acquainted with them. 
(2) Any administrative decision or ruling of gen eral application that will result in the imposition 
of a higher rate of duty or other charge than the Minister of Finance shall find to have been applicable to imported goods under an established and uniform  practice shall not be enforced 
before such decision or ruling has been publis hed in the manner prescribed by the preceding 
paragraph. 
Laws and regulations (including those related to customs and foreign trade) are published in the 
Official Gazette as provided in Article 5 in the La w on Publication and Enforcement of Legislation of 
1998.  See the reply to Question 20 above. 
Court decisions (including commercial court decisi ons) are published on the website of the Supreme 
Court of Afghanistan as well as in Mezan Gazette and Qaza Magazine. WT/ACC/AFG/17 
Page 40  
 
  Question 67 
In its response to Question 10 of document WT/ACC/AFG/6/Rev.1, Afghanistan states that laws 
and regulations are published in the Official Gazette of the Ministry of Justice.  Please identify a 
provision in Afghanistan's Customs laws which provides for the publication of laws and regulations. 
Answer: 
Laws and regulations (including those related to customs and foreign trade) are published in the 
Official Gazette as provided in Article 5 in the La w on Publication and Enforcement of Legislation of 
1998.  See the reply to Question 20 above. 
Question 68 
Articles 15.1(b) and (c), 15.2 and 15.3 of the CVA do not appear to be incorporated in 
Afghanistan's legislation.  What steps is Afgh anistan taking to reflect these Articles in its 
legislation? 
Answer: 
The Article 15.2 and 15.3 definitions of the CVA are incorporated in the draft Regulation on Customs 
Valuation which will replace the Council of Minister s Regulation No. 38 of 23 January 2006.  A copy 
of this draft regulation will be submitted in N ovember 2012 for review by the Working Party. 
 With respect to Article 15.1(b), the customs valu ation provisions of the draft amendments to the 
Customs Law of the Islamic Republic of Afghanistan use the phrase "customs territory of Afghanistan" (a phrase that is defined in the law) in place of the CVA "country of importation".  
As the Article 15.1(c) definition ("produced" in cludes grown, manufactured, and mined) is the 
common meaning, a special legal definition was not considered necessary. 
Question 69 
Concerning the draft Customs Law Amendments: Article 24(2) and 24(3) state:  
 "(2) In order to combat false valuation of certain goods with suspicious values, 
General Directorate of Customs may, s ubject to Afghanistan's obligations under 
the international agreements referenced in paragraph 3 of Article 23B, determine their minimum value in accordance with the relevant procedures. 
  (3) A list of the goods mentioned in par agraph 2 above and specific values assigned 
to them shall be published."  
Additionally, Article 26 of the draft Customs Law Amendments states that the customs value 
for perishable goods shall be determined withou t applying the valuation criteria established for 
other goods.  This provision is further supported by Article 11 of Regulation No. 38.   
Articles 24(2) and 26 of the draft Customs Law Amendments, and Article 11 of Regulation 
No. 38 do not appear to be consistent with Articl e 7 of the CVA, which specifically prohibits the 
use of the minimum values (and there are no oth er international agreements that would allow 
the use of minimum values or that would permit  the appraisement of the imported merchandise 
under some other methodologies, disregarding the valuation methods in the CVA).   WT/ACC/AFG/17 
 Page 41 
 
 
  We are very concerned about these provisions a nd ask the representative of Afghanistan to 
explain how they could be administered in conf ormity with the Customs Valuation Agreement, 
in particular with the absolute prohibition in Ar ticle 7.2(f) of that Agreement of valuation based 
on minimum values.  The CVA provides a fair, uniform, and neutral system for the valuation of all goods for customs purposes and precludes the u se of arbitrary or fictitious customs values. 
(Note:  is Afghanistan applying specific duties on perishable products?  If so, the customs value 
is still determined in accordance with the a ppraisement methods in the CVA, and there are no 
carve outs under the CVA for specific types of products.) 
- What factors would lead to a determination of "suspicious values"?  
- Please explain in what instances Customs would determine a "minimum value".  
What are the relevant procedures?   
- Of what use is the reference to the "intern ational agreements referenced in paragraph 3 
of Article 23B" if that section also references "this Chapter" as a basis for establishing minimum values? 
- What steps will Afghanistan take to remedy this  inconsistency in its draft legislation?   
Answer: 
Article 24(2) and (3) will be deleted from the draf t amendments to the Customs Law of the Islamic 
Republic of Afghanistan.   
Use of minimum prices as a method of valuation is prohi bited by Article 23B(4), which restates in full 
the obligation of the CVA.  That Article is as follows:  
Article 23B (Secondary Methods of Customs Valuation) 
 
1. Where the customs value of goods cannot be determined under Article 23A, it shall be 
determined by proceeding sequentially from point  (a) to paragraph 2(d) of this Article, until 
the first point under which the customs value of goods can be determined. 
The order of application of points (c) and (d) s hall be reversed if the declarant so requests. 
2. The customs value, pursuant to paragraph 1, shall be: 
(a) the transaction value of identical goods sold  for export to the customs territory of the 
Afghanistan and exported at or about the same time as the goods being valued; 
(b) the transaction value of similar goods sold for export to the customs territory of the 
Afghanistan and exported at or about the same time as the goods being valued; 
(c) the value based on the unit price at which the imported goods, or identic al or similar imported 
goods, are sold within the customs territory of  the Afghanistan in the greatest aggregate 
quantity to persons not related to the sellers; 
(d) the computed value.   3. Where the customs value cannot be  determined under paragraph 1, it shall be determined, on 
the basis of data available in the customs territory on the Afghanistan, using reasonable 
means consistent with the principles an d general provisions of the following: 
(a) the agreement on implementation of Article  VII of the General Agreement on Tariffs and 
Trade; 
(b) Article VII of General Agreement on Tariffs and Trade;  (c) this chapter. WT/ACC/AFG/17 
Page 42  
 
  4. No customs value shall be determined under the pr ovisions of paragraph (3 ) of this Article on 
the basis of:  
(a) the selling price in Afghanistan of goods produced in Afghtanistan;  
(b) a system which provides for the acceptan ce for customs purposes of the higher of two 
alternative values;  
(c) the price of goods on the domestic market of the country of exportation;  
(d) the cost of production other than computed va lues which have been de termined for identical 
or similar goods in accordance with the provisions of paragraph (2)(d);  
(e) the price of the goods for export to a country other than the country of importation;  (f) minimum customs values;  or  
(g) arbitrary or fictitious values.  
5. If the importer so requests, the importer shall be informed in writing of the customs value 
determined under the provisions of paragraph 3 and the method used to determine such 
value.
 
Question 70 
Based on information provided to date in documents WT/ACC/AFG/4, WT/ACC/AFG/6/Rev.1, 
and WT/ACC/AFG/7 and supporting legislation, we suggest preliminary additions to the text of 
document JOB/ACC/28 along the following lines:   
 76. The representative of Afghanistan stat ed that the rules on customs valuation 
were stipulated in the Customs Law of 2005 and the Council of Ministers Regulation No. 
38 on Determining the Price of Goods in Customs, in which valuation methods were 
defined.  He added that his government recognized that changes to the Customs Law 
and/or Regulation No. 38 would be required for purposes of closer conformity with the 
valuation methods and other obligations of the WTO Agreement on Customs Valuation. 
76bis. Based on the provisions of Regulation 38, system of customs valuation in 
Afghanistan for both imports and exports is  based on the principles set out in the 
Agreement on Implementation of Article V II of GATT 1994.  Valuation is based on the 
transaction value of the goods subject to ad justments due to the inclusion of cost 
insurance and freight charges.  In case of dispute over accuracy of the transactions 
value, one or more of the alternative methods provided for in the Agreement.  To the 
extent that the Customs Law and Regulation No. 38 lack specific provisions related to 
the valuation methods specified in the Ag reement, proposed amendments to the 
Customs Law will incorporate them in full in the law.   Concerning Article 7 of the 
Agreement, Article 8 of Regulation No. 38 sets out a "fall-back" method of valuation 
where the customs value will be determined on the basis of one of the methods the other 
methods, but ignoring some of the details of  the characteristics of the goods, such as 
color, quantity, period, etc.   
76ter.  Members stated that they had reviewed Afghanistan's legislation pertaining to 
the implementation of the CVA, including Regulation No. 38 and the draft amendments 
to Customs Law and found not to be in full conformity with its provisions.  In 
particular, the provisions of Articles 24 and 26 of the draft Customs Law amendments 
and Article 11 of Regulation No. 38 appeared to provide for the valuation of goods on 
bases prohibited by the CVA.  Members note d that the CVA provides a fair, uniform, 
and neutral system for the valuation of a ll goods for customs purposes and precludes the  WT/ACC/AFG/17 
 Page 43 
 
 
  use of arbitrary or fictitious customs values.  They expressed extreme concern with these 
provisions and asked the representative of Afghanistan explain how they could be 
administered in conformity with the Custom s Valuation Agreement, in particular with 
the absolute prohibition in Article 7.2(f) of that agreement of valuation based on 
minimum values.   
77.  In reply to a Member's question, the representative of Afghanistan stated that 
further an  amendments was would be proposed to the Customs Law and to Regulation 
No. 38 to fully incorporate the prohibitions stipulated in Article 7.2 and other provisions 
of Article 7 of the WTO Agreement on Customs Valuation.  In particular, it would be 
made clear in the legislation that under no circumstances would minimum values be 
applied for the determination of customs valuation.  In addition, as provided for in 
Article 11 of the WTO Agreement on Customs Valuation, amendments were  proposed 
to Article 18 and Article 20 of the Customs Law which would require the General 
Directorate of Customs or the Customs Arbitration Administration, when an adverse decision was made on appeal, to notify the applicant in writing, give reasons for the 
decision, and advise the applicant of his rights of further review; provide the applicant 
with the option to appeal a decision by th e General Directorate of Customs to either the 
Customs Arbitration Administration or a cour t of competent jurisdiction, and explicitly 
provide that there would be no penalty or threat of penalty made against a person by 
reason of the fact that an appeal had been made. 
77bis.  The representative of Afghanistan continued that Article 9 of the WTO 
Agreement on Customs Valuation is implemented pursuant to Article 25 of the Customs 
Law, which states that a customs value must be computed in Afghan currency at a rate 
of exchange that is established by the Da Afghanistan Bank and published at 
http://www.centralbank.gov.af.  He also noted that Article 10 of the WTO Agreement on 
Customs Valuation is implemented through Article 13 of the Customs Law, which 
expressly prohibits the Customs Authority from disclosing information about the 
valuation of specific good, the names, addresses or other details about suppliers of 
goods, testing results, or information that is provided to the Customs Authority on a 
confidential basis, without the express permission of the person who provided the 
information and without legal authority to do so.   
77ter.   Responding to various questions, the representative of Afghanistan pointed out 
that, as required by Article 12 of the WTO Agreement on Customs Valuation, the 
government of Afghanistan publishes its laws and regulations on customs valuation in 
the official gazette of the Ministry of Justice at www.moj.gov.af, and also in the hard 
copy version of the official gazette.  As for judicial decisions and administrative rulings, 
he acknowledged that these are not currently published.  However, he continued, under 
a proposed amendment to the Customs Law, the Customs Authority shall be required to 
promptly make publically available administrative decisions or rulings of general 
application by such means as shall enable  traders and other interested persons to 
become acquainted with them.  He concluded that it is anticipated that such rulings and 
decisions will be published on the website of the Ministry of Finance.  He also noted that 
Article 16 of the WTO Agreement on Customs Valuation, requiring written response to 
enqueries on how valuation was determined, was implemented through Article 12 of the 
Customs Law, which states that the Customs Authority were authorized to provide 
information free of charge to a requesting party concerning the application of the 
customs legislation, unless such request conflicted with the confidentiality provisions of 
Article 13 of the same Law.   WT/ACC/AFG/17 
Page 44  
 
  77quater .  He also acknowledged that that  Article 13 of the WTO Agreement on 
Customs Valuation was not yet incorporated in  Afghanistan's national legislation.  He 
pointed out that an amendment has been prop osed to the Customs Law that would allow 
an importer to obtain release of goods on the basis of a declaration containing 
incomplete or provisional information, such as information related to customs value.  
Under this proposed amendment, the accepta nce by the Customs Authority of such a 
declaration may be subject to provision of a guarantee, and shall require the declarant 
to provide any missing information within a p eriod specified by the Customs Authority.  
The proposed amendment requires the Customs Authority to adopt by regulation the 
measures necessary to implement this procedure.    
78. The Customs Arbitration Administration and its members were independent of 
the Ccustoms Aauthority, whose decisions it reviewed, which in view of the 
representative of Afghanistan was consistent with Article 11 of the WTO Agreement on Customs Valuation. 
79. In reply to a specific question, the representative of Afghanistan stated that an 
amendment was proposed to the current Cust oms Law to add a new Article 12A which 
would require the Ccustoms Aauthority to make promptly available administrative 
decisions or rulings of general application by  such means so as to enable traders and 
other interested persons to become acquainted with them.  
80. The representative of Afghanistan noted that changes to the Customs Law 
and/or Regulation No. 38 would be required for purposes of closer conformity with the 
valuation methods and other obligations of the WTO Agreement.  He said that 
Afghanistan needed to develop rules to impl ement the Interpretative Notes of the WTO 
Agreement on Customs Valuation, the Decision  on Software Valuation, and the Decision 
on Treatment of Interest Charges.  These  would be developed and adopted after the 
enactment of the draft amendments to the Customs Law of 2005 and provided to the 
Working Party for review prior to conclu sion of the accession negotiations. 
Answer: 
We agree with the proposed edits to the Factual Summary with the following: 
 1. Paragraph 77: please amend the first sentence to read as follows: 
 
In reply to a Member's question, the representa tive of Afghanistan stated that further an  
amendments was would be proposed to the Cu stoms Law and to Regulation No. 38 would be 
replaced by a new Regulation to fully incorporate the prohibitions stipulated in Article 7.2 
and other provisions of Article 7 of the WTO Agreement on Customs Valuation 
 
2. Paragraph 77ter: please add the following as the second sentence: 
 Concerning judicial decisions, these are published on the website of the Supreme Court of 
Afghanistan as well as in Mezan Gazette and Qaza Magazine.  WT/ACC/AFG/17 
 Page 45 
 
 
  Question 71 
In addition, appropriate edits should be made to the Factual Summary text, as necessary, to 
reflect the responses to the follo wing questions and concerns. 
Concerning the right of appeal and the text of paragraph 78: Article 11 of the WTO Agreement on Customs Valuation states that the legislation of each 
WTO Member shall provide for: 
- the right of appeal by the importer or other liable persons, without penalty, of 
determinations of customs value,  
- both to an authority within the customs administration and to a judicial authority; and  - that decisions on appeal shall be provided to the appellant in writing with the reasons 
for the decision.  
Please describe in the Factual Summary, precisely, where the right of appeal, without penalty is 
provided for in current legislation or regulatio n or will be implemented in amended or new 
legislation (a) to an authority within the Customs Administration; (b) to the Customs 
Arbitration Administration within the Mini stry of Finance; and (c) to the courts. 
Answer: 
Article 18 of the draft amendments to the Customs Law of the Islamic Republic of Afghanistan 
provides for a right to appeal Customs determinations  of customs value, without penalty.  This Article 
requires an initial appeal to be made to the Genera l Directorate of Customs; provides for a right of 
further appeal to the Customs Arbitration Administ ration or to the commercial court; and states that 
no person shall be subject to fine or penalty by reason of exercising these rights of appeal.   
Article 18 requires the General Directorate to issue the decision on appeal in writing, provide reasons, 
and inform the appellant of his further rights of a ppeal.  The same obligation applies to the Customs 
Arbitration Administration pursuant to Articles 17 and 20(3) of the draft amendments.   
Commercial courts provide in writing its judicial d ecision to the appellant, including the reasons for 
its decision.  The commercial court does not formally  inform the appellant about its rights of further 
appeal.  However, the plaintiff and defendant are cognizant of their rights for further appeal at the 
provincial level courts. 
Question 72 
Paragraph 43 of the Factual Summary states that  "There are no administrative tribunals".  
And the Regulation on Customs Arbitration states that the Customs Arbitration Administration operates within the Ministry of Finance, as does the Customs Authority itself.  Under these 
circumstances, how can Customs Arbitration Ad ministration be considered an "independent 
tribunal" within the meaning of Article 11 of the WTO Agreement on Customs Valuation?  Is it not therefore an internal administrative body fo r the Executive specializing in Customs issues? 
- Please describe in detail all the steps that  importers and other persons liable could or 
would take to appeal customs decisions with which they disagree, both administratively 
and judicially. 
- Please note explicitly where it is required in Afghanistan's laws that decisions on appeal 
are provided to the appellant in writing with the reasons for the decision included. WT/ACC/AFG/17 
Page 46  
 
  Answer: 
Please see response to the previous question. 
With regard to appeals to the Customs Arbitra tion Administration, we understand Article 11 of the 
WTO Customs Valuation Agreement to require that  
An initial right of appeal without penalty may be to an authority within the customs 
administration or to an independent body, but the legislation of each Member shall provide 
for a right of appeal without penalty to a judicial authority.  
As described in the previous response, the initial righ t of appeal is made to "an authority within the 
customs administration," namely, the General Director ate.  Thereafter, the appellant has the choice to 
appeal directly to a court of competent jurisdiction – that is, a "judicial authority" - or to the Customs 
Arbitration Administration established in the Ministry of Finance, to which the Afghan Customs 
Department is subordinate.  More over, decisions by the Customs Arbitration Administration may be 
appealed to the relevant commercial court by the ap pellant, if the amount at issue is 50,000 Afghani or 
less, or by the government or the appellant if the amount at issue exceeds 50,000 Afghani.   
Given that the appellant has the option to appeal di rectly to the court following decision on appeal to 
the General Directorate, as well as the right to appeal decisions of decisions of the Customs 
Arbitration Administration to the court, we believe th is administrative appeal procedure is consistent 
with terms of Article 11 of the Agreement. 
Question 73 
Concerning the publication of laws, regulations, etc. and the text of paragraph 79: Article 12 of the WTO Agreement on Customs Valuation requires that laws, regulations, 
judicial decisions and administrative rulings of general application giving effect to the 
WTO Agreement on Customs Valuation shall be published in conformity with Article X of the GATT 1994 by the country of importation.   
- Please outline in the text of the Factual Summary how the provisions of Article X of 
the GATT of 1994 are implemented with respect to laws, regulations, and judicial 
decisions "giving effect" to the WTO Agreeme nt on Customs Valuation, as required by 
Article 12 of that Agreement. 
- Please include in this response reference to (a) the proposed amendments to the Customs 
Law, (b) the new "regulations" including the Interpretative Notes, (c) the decisions of 
the Customs Arbitration Administration, and (d) the new provisions relating to administrative rulings. 
Answer: 
Article 5 of Afghanistan's Law on Publication and Enforcement of Legislation requires publication of 
the following in the official gazette: 
 Official declarations of the Islamic Republic of Afghanistan which is intended for the public, 
laws, resolutions and other par liamentary legislative documents. 
 Decrees and other legislative documents of th e Islamic Republic of Afghanistan of legal 
nature. 
 Regulations, charters and resolutions of c ouncil of ministers which have legal nature.  WT/ACC/AFG/17 
 Page 47 
 
 
   Contracts, agreements, international protocol s which are signed by the Islamic Republic of 
Afghanistan and decrees relating ratification of these treaties. 
 Legislative documents which the Supreme Cour t based on the law are authorized to ratify 
them. 
 Other legislative acts, dissemination of whic h is required as per the law as well as 
advertisement of trademarks  and related documentation. 
This covers all types of laws and legal acts including those related customs, foreign trade, sanitary and 
phytosanitary measures, and other WTO agreements.  
The Law on Publication and Enforcement of Legislati on will be amended to requi re publication in the 
official gazette of ministerial level decisions  and orders which have  mandatory character. 
A copy of this law and proposed amendments will be provided to the WTO Secretariat in 
October 2012. 
It is also a common practice in Afghanistan that  ministries and state bodies publish on their websites 
respective laws and sublegal acts. 
The obligation to publish customs administrative d ecisions and rulings of general application is 
included in Article 12A of the draft amendments to the Customs Law of the Islamic Republic of 
Afghanistan, which provides as follows: 
Article 12A [Publication of Decisions] 
 
(1) Customs shall promptly make publicly available adminstrative decisions or rulings of general 
application by such means as shall enable tr aders and other interested persons to become 
acquainted with them. 
(2) Any administrative decision or ruling of gen eral application that will result in the imposition 
of a higher rate of duty or other charge than the Minister of Finance shall find to have been 
applicable to imported goods under an established and uniform  practice shall not be enforced 
before such decision or ruling has been publis hed in the manner prescribed by the preceding 
paragraph. 
 
Question 74 
Paragraph 79 of the Factual Summary states th at an amendment has been "proposed" to the 
current Customs Law requiring the Customs Authority to "make promptly available" administrative decisions or rulings of general a pplication, as provided for in Article 12 of the 
WTO Agreement on Customs Valuation. 
- Please clarify in the Factual Summary that the Customs Law will be amended to ensure 
that administrative decisions on Customs Valuation, in addition to laws, regulations, 
and judicial rulings, will be published, and indicate specifically the name and type of publication (website, official journal, or  periodical) where these laws, regulations, 
rulings and decisions will be found. 
Answer: 
A new Article 12A will be included in the Customs Law of the Islamic Republic of Afghanistan to 
specifically require Customs to promptly make public ly available administrative decisions or rulings 
of general application (see response to previous question).  Such decisions and rulings will be WT/ACC/AFG/17 
Page 48  
 
  published on the website of the Ministry of Finan ce and/or the Afghanistan Customs Department and 
may also be published in print. 
Article 5 of Afghanistan's Law on Publication and Enforcement of Legislation requires publication of 
the following in the official gazette: 
 Official declarations of the Islamic Republic of Afghanistan which is intended for the public, 
laws, resolutions and other par liamentary legislative documents. 
 Decrees and other legislative documents of th e Islamic Republic of Afghanistan of legal 
nature. 
 Regulations, charters and resolutions of c ouncil of ministers which have legal nature. 
 Contracts, agreements, international protocol s which are signed by the Islamic Republic of 
Afghanistan and decrees relating ratification of these treaties. 
 Legislative documents which the Supreme Cour t based on the law are authorized to ratify 
them. 
 Other legislative acts, dissemination of whic h is required as per the law as well as 
advertisement of trademarks  and related documentation. 
This covers all types of laws and legal acts including those related customs, foreign trade, sanitary and 
phytosanitary measures, and other WTO agreements. 
The Law on Publication and Enforcement of Legislati on will be amended to requi re publication in the 
official gazette of ministerial level decisions  and orders which have  mandatory character. 
A copy of this law will be provided to the WTO Secretariat in October 2012. 
It is also a common practice in Afghanistan that  ministries and state bodies publish on their websites 
respective laws and sublegal acts. 
Question 75 
Please confirm that the draft Regulations on the Interpretative Notes (Article 14 of the 
WTO Agreement on Customs Valuation) will be  available for review by  the Working Party, 
even if only in draft, prior to the next Working Party meeting. 
Answer: 
The CVA Interpretative Notes are incorporated in  the draft Regulation on Customs Valuation which 
will replace Regulation No. 38 of 2006.  A copy of this draft regulation will be submitted for review 
by Working Party in November 2012. 
Question 76 
Paragraph 80 of document JOB/ACC/28 states that "the Decision on Software Valuation, and 
the Decision on Treatment of Interest Charg es"…"would be developed and adopted after the 
enactment of the draft amendments to the Customs Law of 2005". 
- Please indicate how these will be incorporated  into Afghanistan's legal framework, i.e., 
what legal instrument will contain them?  
- Will a draft of this implementing measure also be available for Working Party review 
prior to the next Working Party meeting?  WT/ACC/AFG/17 
 Page 49 
 
 
  Answer: 
The Decision on Software Valuation and Decision on Treatment of Interest Charges have been 
incorporated in the draft Regulation on Customs Valuation which will replace the Regulation No. 38 
of 2006.  A copy of this draft regulation will be submitted for review by the Working Party in 
November 2012. 
The relevant provisions of the draft regulation are as follows: 
 
Valuation of carrier media bearing software  
Article 49 1. Notwithstanding Article 20 of this regulation, in determining the customs value of imported 
carrier media bearing data or instructions for use in data processing equipment, only the cost 
or value of the carrier medium itself shall be taken into account.  The customs value shall not, therefore, include the cost or value of the data or instructions, provided that this is distinguished from the cost or the value of the carrier medium. 
2. For the purpose of this Article, the expression "carrier medium" shall not be taken to include 
integrated circuits, semiconductors and similar devi ces or articles incorporating such circuits 
or devices; the expression "data or instructions" shall not be taken to include sound, cinematic 
or video recordings. 
3. To claim this special customs valuation t reatment the declarant s hall provide information 
in a form sufficient to allow Customs to differen tiate the cost or value of the imported carrier 
media from the cost or value of the data and instructions it contains. 
4. Notwithstanding provisions of paragraph 3 of th is Article, where actual costs or values are 
not available, Customs officials may accept a reasonable estimate of the cost or value of an 
imported carrier medium or of the cost or valu e of the data or instructions contained on the 
data or medium. 
Treatment of Interest Charges 
Article 50 
1. Charges for interest under a financing arrange ment entered into by the buyer and relating to 
the purchase of imported goods shall not be rega rded as part of the customs value provided 
that: 
 (1) the charges are distinguished from the price actually paid or payable for the goods; 
 (2) the financing arrangement was made in writing; 
 (3) where required, the buyer can demonstrate that 
- such goods are actually sold at the price declared as the price actually 
paid or payable, and 
- the claimed rate of interest does not exceed the level for such 
transactions prevailing in the country  where, and at the time when the 
finance was provided. 
2. These rules shall apply regardless of whether th e finance is provided by the seller, a bank or 
another natural or legal person.  It shall al so apply, if appropriate, where goods are valued 
under a method other than the transaction value. WT/ACC/AFG/17 
Page 50  
 
  3. For purposes of this Regulation, the term 'interest' encompasses only those payments that 
are carried on the importer's books as interest  expenses in conformance with generally 
accepted accounting principles . 
- Rules of Origin Question 77 
Paragraph 82 of the Factual Summary states that  certificates of origin were required for all 
imports.  Since the importer mu st declare the origin of the goods upon importation and produce 
shipment documentation, why is further certification necessary? 
Answer: 
The Government has under consideration further revi sions to Article 31 of the draft amendments to 
the Customs Law of the Islamic Republic of Afghanistan which would clarify that the type of 
documentary proof of origin ( e.g., declaration of origin by exporter or other competent person; 
certificate of origin; certified declaration of origin ) and the conditions under which proof of origin 
may be required shall be defined in separate pro cedures.  This authority will permit Afghan Customs 
to limit the cases under which documentary proof of or igin may be required, allowing Customs to rely 
on the origin declared in the goods declaration.  The proposed revision to Article 31 under 
consideration is to conform with the terminology of the relevant WCO Revised Kyoto Convention as 
follows:  
Article 31(Certificate of Origin) 
 
(1) The manner of Certification of a document proving the origin of goods type of 
documentary proof of origin and the conditions  under which it may be required shall be 
arranged in accordance with separate procedures.   
(2) Certification of documents proving the origin of goods may be issued by the responsible 
authorities for the region country in which the goods were produced.   
(3) In case the custom authorities have doubt with  regard to submitted evidence a certificate 
of origin, such authorities may require additional proofs ensuring that the documents of 
origin comply with customs legislation.  
(4) The procedure referred to in paragraph (1) of  this article shall provide the conditions 
under which a country is considered as the orig in of goods which shall be applied in the 
following cases:   
i. to implement the Customs Tariff, excludi ng the measures referred to in Article 
23(2) 32 of this law; and 
ii. To implement State measures restri cting trade in particular goods.  
 
Question 78 
Paragraph 82 of document JOB/ACC/28 also states that "There were no criteria or 
requirements that had to be met by foreign bodi es who issue certificates of origin.  Currently, 
the Afghan Customs Department recognised Ch ambers of Commerce as competent authorities 
in the exporting country to provide certificates of origin." 
- Does this mean that "certificates of origin" issued by entities other than Chambers of 
Commerce can be accepted for import s?  Can the exporter self-certify? 
- If a shipment lacks a certificate of origin at the time of importation, what happens?  WT/ACC/AFG/17 
 Page 51 
 
 
  Answer: 
As noted, the Government has under consideration a revision of Article 31 of the draft amendments to 
the Customs Law of the Islamic Republic of Afghani stan in order to clarify that the type of 
documentary proof of origin (e.g., declaration of  origin by exporter or other competent person; 
certificate of origin; certified declaration of origin) shall be prescribed by separate procedures.  Where 
a certificate of origin or certified declaration of origin is required, these procedures would indicate the 
competent certifying authority or body.  Article 56A (Incomplete and Provisional Declaratio ns) of the draft amendments to the Customs Law 
provides that Customs shall release imported go ods despite a missing required document, provided 
the declarant furnishes a security to ensure collection of any applicable duties and taxes that may be 
due and undertakes to provide the missing docum ent within a period specified by Customs. 
Question 79 
Article 30 of the draft amendments to the Cust oms Law concerning rules of origin states that, 
"Goods whose production involves more than one co untry shall be deemed to originate from the 
country where they underwent their last substantial processing [transformation]". 
Please indicate where the details on how such "s ubstantial processing [transformation]" will be 
determined can be found in law or regulation. 
Answer: 
Regulations have not yet been developed for the im plementation of this new provision of the draft 
amendments to the Customs Law. 
Question 80 Articles 31(1) and 31(4) of the draft amendments to the Customs Law state that, "The manner 
of Certification of a document proving the origin  of goods shall be arranged in accordance with 
separate procedures," . . . "To implement State measures restricting trade in particular goods". 
Please indicate what circumstances are contemplat ed for "restricting trade in particular goods" 
based on the country of origin of the goods?  Specifically, are there any laws or regulations in 
Afghanistan that deny access based on country of  origin.  If so, please describe the situation, 
give the legal citation, and provide copies of the laws. 
Answer: 
These were intended to refer to Customs administ ration of commercial policy measures described in 
Article 3 of the draft amendments to the Custom s Law as ("quotas, ceilings, countervailing duties on 
subsidized foreign goods, anti-dumping duties, or similar provisions for advancing national (keshwar) 
commercial interests") or measures adopted for reasons  of health or public order.  There are no laws 
or regulations in Afghanistan that deny access based on country of origin. 
Question 81 
Question 41 in document WT/ACC/AFG/7 states that draft legislation will authorize rulings on 
the origin of prospective imports. WT/ACC/AFG/17 
Page 52  
 
  - Is this Article 17B of the draft Customs Law amendments?  If not, please provide the 
subject legislation, as stated in the response to Question 41. 
- If so, please note that while the text of this provision provided in the draft Customs Law 
amendments circulated in document WT /ACC/AFG/12 would provide for a binding 
decision on the country of origin of impo rts, it does not address all aspects of the 
requirements of Article 2(h) and of Annex II,  paragraph 3(d) of the WTO Agreement on 
Rules of Origin.  These provisions establish, for non-preferential and for preferential rules of origin, respectively, an assessment of the origin of goods subject to import upon 
the request no later than 150 days after a request provided that all necessary elements 
had been submitted and that any request for such an assessment would be accepted 
before trade in the goods concerned had begun. 
- What is the timeframe for issuance of binding decisions by customs?  Is it the same 
30 days referenced in Article 17(2)? 
- We ask Afghanistan to provide for th e full range of commitments covered by 
Article 2(h) and of Annex II, paragraph 3(d) of the WTO Agreement on Rules of Origin 
in its legislation on issuing decisions on rules of origin. 
Answer: 
 
Yes, Article 17B (Binding Decisions) of the draft amendments to the Customs Law authorizes rulings 
on origin of prospective imports.  
Please note that paragraph 3 of Article 17B (Bi nding Decisions) states that the provisions of 
Article 17 shall apply mutatis mutandis  to binding decisions. 
Article 3 of the draft amendments to the Cust oms Law defines a binding decision as a "written 
decision issued at the request of an exporter, im porter or any other person with justifiable cause, 
which sets out the treatment that Customs shall provide to a prospective import, export or other customs transaction". 
Article 17B of the draft amendments to the Cust oms Law provides that Customs shall issue such 
binding decisions on questions of country of or igin of imported goods.  Further, Article 17B it 
provides that such decisions on origin shall remain  valid for three years from issuance.  Finally, the 
Article provides that the provisions of Articles 17 and 17A apply mutatis mutandis  to binding 
decisions.  These Articles obligate the person re questing the decision to provide complete 
information; obligate Customs to issue the decision within 30 days; require Customs to provide 
reasons for its decision; and defi ne the conditions under which a d ecision may be revoked or annulled, 
and the procedures that apply in such cases.  
Provisions on appeal against Customs decisions are set out in Article 18 of the draft amendments to 
the Customs Law.  Provisions on publication of decisions are covered under Article 12A. 
The Government has prepared a draft Order on Advance Ruling on Binding Decisions to implement 
these articles of the Customs Law.  This draft re gulation sets out rules for application, processing and 
administration of rulings.  It provides for rulings on country of origin of goods, for both preferential 
and non-preferential purposes, and on questions of ta riff classification of goods (note that Article 
17B(1) requires Customs to issue rulings on origin  and permits Customs to issue rulings on other 
matters).  It defines the required form and content of  the application for a ruling; the time periods for 
Customs review and issuance of a decision (generally, 30 days); the form of the decision; and rights 
and obligations where Customs refuses to issue a ru ling, or annuls or revokes a previously-issued 
ruling.  The draft regulation assigns responsibility fo r administration of the rulings program to the 
Technical Director of Customs within the General Dir ectorate of Customs.  A copy of this draft Order 
will be submitted in November 2012 fo r review by the Working Party.  WT/ACC/AFG/17 
 Page 53 
 
 
  Question 82  
Paragraph 82 of document JOB/ACC/28:  It appears that the Afghan authorities require a 
certificate of origin to be presented for all im ports into their country. Chambers of Commerce 
are mentioned as "competent authorities".  It is to be noted that our Chambers of Commerce are not considered to be government authorities, but are (semi-) private organisations, who have 
as their main task defending the interests of  their member companies, in exchange for a 
membership fee. In general, certificates i ssued by these bodies cannot be considered as 
absolutely reliable.  The requirement of a certific ate of origin for each importation has to be 
considered under these circumstances as impo sing an unnecessary burden on our exporters. 
Answer: 
Regarding the requirement of the certificate of origin for import, please see reply to Question 77 
above. 
As for the role of Chambers of Commerce in issu ing certificate of origin, Afghanistan is following 
best and common international practices in this  respect.  We welcome suggestions for other 
alternatives. 
- Pre-shipment inspection Question 83[US] We thank Afghanistan for its statement that it  does not intend to implement a pre-shipment 
inspection scheme.  We seek Afghanistan' s acceptance of the fo llowing commitment: 
85bis.  The representative of Afghanistan confirmed that, from the date of accession, if a 
preshipment inspection scheme were to be introduced in the future its operation would 
be in conformity with the relevant provi sions of the WTO Agreement, including the 
Agreement on Preshipment Inspection, and th e Agreement on Implementation of Article 
VII of the GATT 1994, inter alia , in respect of the due process and transparency 
requirements of the WTO Agreement, in particular Article X of the GATT 1994 and the 
Agreement on Implementation of Article V II of the GATT.  In addition, Afghanistan 
would ensure that charges and fees for pr eshipment inspection would comply with 
Article VIII of the GATT 1994, that preshipment entities would establish and maintain 
appeals procedures as foreseen by Article 2.21 of the WTO Agreement on Preshipment 
Inspection, and that that scheme would not constitute an undue and additional burden 
on exporters to or importers of goods into Afgh anistan.  The Working Party took note of 
these commitments . 
Answer: 
Afghanistan accepts this commitment. 
- Anti-dumping, countervailing duty and safeguard regimes 
Question 84 Paragraph 86 of document JOB/ACC/28 states that authority for implementing the 
"commercial policy measures" defined by the Cu stoms Law of 2005, such as for countervailing 
duties and anti-dumping duties, rests with the Customs Authority.  Which law or article provides this authority? WT/ACC/AFG/17 
Page 54  
 
  Paragraph 86 also states that there is no enti ty designated to implement Article 65, which 
provides for collection of customs debt.  Please cl arify this statement in light of the Customs 
Authority's authority to implement commercial policy measures. 
Answer: 
Specific laws on trade remedies will be devel oped by Afghanistan.  Currently, a draft law on 
safeguards is being prepared and will be shared  with the WTO Working Party Members during the 
first quarter of 2013.  Afghanistan has not made a fi nal decision regarding the adoption of laws related 
to anti-dumping and countervailing measures prior to WTO accession. 
Laws related to safeguards, an ti-dumping, and countervailing duties will be administered by the 
Ministry of Commerce and Industries.   
Customs will be responsible for the applicati on of commercial policy measures established by 
Ministry of Commerce and Industries to goods presented for import or export, as well as ensuring completion of the relevant customs formalities and collection of the customs debt.   
Note: Afghanistan will administer and apply co mmercial policy measures in conformity with 
respective WTO agreements. 
Article 3 (46) and Article 65 in the Draft Amendm ents to the Customs Law of 2005 will read as 
follows: 
 Article 3 
(46)-"Commercial policy measures" means the imposition application of quotas, ceilings, 
countervailing duties on subsidized foreign goods, anti-dumping duties, or  similar provisions 
for advancing national (keshwar) commercial in terests, the responsibility for implementation 
of which principally rests with the Customs. 
Article 65 (Release of Goods for Free Circulation) 
(1) Non-Afghan goods shall be deemed Afghan goo ds after release for free circulation. 
Release for free circulation shall be subject to appl ication of commercial policy measures (when in 
effect), completion of all requirements for importatio n of goods, and the collection of the customs debt 
incurred on the imported goods.  
Question 85 
Paragraph 87 states that Afghanistan intends to  develop anti-dumping, countervailing duty, and 
safeguard measures, but the table of current legislative proposals does not contain any related legislation.  What are Afghanistan's current pl ans/ timeframe for concerning the development 
of AD/CVD measures? 
Answer: 
Afghanistan has initiated the development of Draf t Law on Safeguards in conformity with the WTO 
Agreement on Safeguards.  A copy of this Draft will be shared with the WTO Working Party for 
review during the first quarter of 2013. 
Afghanistan has not made a final decision regardi ng the adoption of laws re lated to anti-dumping and 
countervailing measures prior to WTO accession.  WT/ACC/AFG/17 
 Page 55 
 
 
  B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
Question 86 
Paragraph 88 of the Factual Summary states that, "The representative of Afghanistan said that 
a business licence issued by the Ministry of Commerce and Industries granted the right to 
export.  The procedures were the same for obtain ing a business licence to export or to import."  
- Please apply the same questions and comment s on the "Trading Rights" section of the 
Factual Summary concerning the right of impo rtation to clarifying in this section how 
natural and legal persons may acquire the right to export. 
Answer: 
The same procedures and requirements for obtai ning business licence for import apply for export. 
Question 87 
Paragraph 82 of the Factual Summary and the response to Question 44 of document 
WT/ACC/AFG/7 state that certificates of origin were required for all imports and exports, and 
that the Afghan Customs Department recognizes cert ificates of origin for exports issued by the 
Afghanistan Chamber of Commerce and Industry (ACCI).   
- Why are export certificates of origin manda tory?  Are export certificates of origin 
mandatory even for exports to  countries and for products  that do not require such 
certificates to be accepted as imports? 
- Are the "certificates of origin" issued by th e ACCI for exports the only ones recognized 
by Afghanistan's Customs Authority?  Why?   
- Does the ACCI charge for granting these certificates, and if so, what is the fee structure?  
Are these mandatory fees fo r services rendered for exports regulated by the 
Government of Afghanistan? 
Answer: 
Certificates of origin are mandatory for all exports  including to countries and for products that do not 
require such certificates to be accepted as imports in  the country of importation.  This policy is in 
place to ensure that exporters do not face any issues in the countries of importation in case certificate is requested by authorities there. 
The certificates of origin issued by the ACCI  for exports are the only ones recognized by 
Afghanistan's Customs Authority.  ACCI is the only Chamber in Afghanistan that has the 
system/process and resources to issue such certificates and it is only the Chamber that has branches in 
the regions of Afghanistan (23 regions). 
ACCI charges for issuing the export certificate of  origin.  The charges are AF 50 (around US$1) for 
India and AF 300 (around US$6) for other countries.   These fees are below services rendered. ACCI 
fees are established by the High Council for Chambe r Issues which comprises ACCI representatives, 
traders, Minister of Commerce and the Deputy Minister of Finance. WT/ACC/AFG/17 
Page 56  
 
  Question 88 
The response to Question 44 states that ACCI certifies all export invoices and charges 
0.1 per cent of value of exported goods.   
- Are such certification and Certificates of origin mandatory in trade?   
- If so, the fee is not related to the cost of the service rendered and must be changed to 
comply with the provisions of Article VIII of the GATT 1994. 
- Please confirm that Afghanistan will elimin ate this tax on exports and any mandatory 
certification of export invoices by the ACCI no later than upon accession to the WTO. 
Answer: 
Certification of invoice and certificate of origin for exporting are mandatory. Afghanistan confirms that it will adjust the fee fo r the certification of export invoice by ACCI to 
reflect the actual cost of services rendered no later than upon accession to the WTO. 
The fee for certificate of origin for export reflects the actual cost of services rendered. 
Question 89 
Paragraph 23 of document JOB/ACC/28 states that  export duties were applied to iron ores and 
concentrates including roasted iron pyrites (HS 26.01), unprocessed and processed marble 
(HS 2515.1100, 2515.1200, 2515.2000 and 6802.9100) and minera ls (HS Chapters 25, 26 and 27). 
- Please move this information to this sect ion (Export duties) of the Factual Summary, 
unify it with the information provided in Ta ble 7, as appropriate, and list all export 
duties by tariff line and the amount collected.  
- Please explain Afghanistan's policies concern ing export duties and its intentions on 
application of such measures after accession. 
Answer: 
Afghanistan agrees to move this information to the section on Export duties of the Factual Summary. 
 
Export Duties and Taxes 
 
Products Export Duties Export Taxes 
roasted iron pyrites (HS 26.01) 2.5% Fixed tax of 2%  with 
business licence 
 Fixed tax of 3% without 
business licence 
 
Business Receipt Tax (BRT) 
of 2%  WT/ACC/AFG/17 
 Page 57 
 
 
  Products Export Duties Export Taxes 
unprocessed and processed 
marble (HS 2515.1100, 
2515.1200, 2515.2000 and 6802.9100)  
  20% Fixed tax of 2%  with 
business licence  
 Fixed tax of 3% without 
business licence 
 
BRT of 2% 
Minerals (HS Chapters 25, 26 
and 27).  1%: 2 items (magnesite, petroleum 
jelly) 
 2.5%: 60 items (ores, concentrate) 
 5%: 66 items (cement, granite, 
phosphates, sands, ores, etc) 
 8%: 6 items (kerosene, oil) 
 10%: 6 items (dolomite, mica) 
 12%: 6 items (fuel) 
 20%: 3 items (marble) 
 25%: 5 items (gypsum, lime) 
 40%: 1 item (table salt and denatured 
salt) 
 5%: 1 item (other salt) 
 
Please see Attachment 2 with specific 
tariff lines. Fixed tax of 2%  with 
business licence   
Fixed tax of 3% without 
business licence  
BRT of 2% 
HS Chapter 71 natural or cultured Pearls and precious or 
semi-precious stones  1%: 4 items (Gold) 
 2.5%: 9 items (Silver) 
 5%: 28 items (Platinum, rhodium, 
palladium, coins, precious stones). 
 10%: 10 items (pearls, articles of 
base metal with precious metal) 
 
Please see Attachment 2 with specific 
tariff lines. Fixed tax of 2%  with 
business licence 
  Fixed tax of 3% without 
business licence 
 BRT of 2% 
Items from Chapters 72, 74, 75, 76, 78, 79, 80, 81 that are 
referred as waste or scrap metal  5%: 26 items (waste and scrap of 
iron, copper, lead, nickel zinc,..) 
 
Please see Attachment 2 with specific 
tariff lines. Fixed tax of 2%  with 
business licence 
 
Fixed tax of 3% without 
business licence 
 BRT of 2% 
 
Note further that a fixed tax of 2 per cent applies on all re-exports. 
Note that the collected fixed tax applies against the tax liability of the trader.  These fixed tax 
payments on exports can be claimed as credit in the calculation of the trader's annual income tax 
assessment. 
Afghanistan is prepared to negotiate binding levels for its export duties. WT/ACC/AFG/17 
Page 58  
 
  Question 90 
Concerning Afghanistan's charges of 5 per cent ex port duties on iron and steel waste and scrap: 
- In the course of these negotiations, we exp ect Afghanistan to take a commitment not to 
raise this tariff on exported ferrous waste and scrap (HS 7204) as part of its terms of 
accession at the current applied rate of 5 per cent.  
Answer: 
Afghanistan is prepared to discuss this commitment. 
Question 91 
Paragraph 91 of document JOB/ACC/28:  How does Afghanistan ensure high quality of 
exported animal and plant products only through visual inspections?  
Answer: 
Export registration by the Industrial Commercial Se rvices Association for Animal and Plant Products 
is voluntary, and not related to sanitary or phyt osanitary requirements.  Since this is a purely 
voluntary registration for the Members of this Associ ation, information in paragraph 91 of the Factual 
Summary may be totally deleted. 
- Export restrictions Question 92 The response to Question 44 of document WT/ACC/AFG/7 states that export authorization by 
the MoCI was a formality and had been eliminated recently.   
- Please confirm that neither export permit, au thorization, nor licence is necessary for the 
export of most goods from Afghanistan.   
Answer: 
Afghanistan confirms that export author ization by MOCI has been eliminated. 
Exporters are required to obtain the business licence  from MOIC in order to engage in exporting. 
The following other export measures (similar to an e xport licence) are required (please see Table 5 in 
the Factual Summary) 
Product Export Measure 
All minerals Export authorization from the Ministry of Mines 
Antiquities Export approval from the Mi nistry of Information and Culture 
Scrap metals Export authorization from the Export Promotion Agency of 
Afghanistan 
Export authorization from the Ministry of Mines 
Used glass, plastics and coal Export author ization from the Export Promotion Agency of 
Afghanistan 
Printed books, brochures, leaflets, and 
other printed matters Export approval from the Ministry of Information and Culture 
Films  Export approval from the Ministry of Information and Culture  WT/ACC/AFG/17 
 Page 59 
 
 
   
The following export measures are no longer mandatory:  
Product Export Measure 
Karakul Export authorization from Karakul Institute 
Handicrafts Export authorization from Handicraft Promotion Center 
Carpets, rugs, and felts Export authorizati on from Carpet Exporter and Producers Guild 
Fresh fruits, dried fruits, and vegetables.   Quality  certificate issued by the Afghan Raisin, Fruits and 
Vegetables Promotion Association 
There is no export permit for medicines (pharm aceuticals), medical equipment, cosmetics, and 
pharmacy tools.  Please delete from Table 5 in the Factual Summary. 
Note that the "Export Permit of Seeds" is actually an "Export Seed Certificate' issued by the Seeds 
Directorate under MAIL. The measure related to S eeds should be deleted fro m Table 5 and moved to 
SPS section. 
The export authorization for skins, wools, and intestines from the Industrial Commercial Services 
Association for Animal and Plant Products is volunta ry for the members of this Association. This 
measure should be deleted from Ta ble 5 in the Factual Summary. 
Question 93 
Concerning exports of scrap metal, paragraph 90  of the Factual Summary:  Please indicate if 
the licence necessary for this export is automa tic, i.e., granted in all cases to applicants. 
Answer: 
The licence granted for the export of scrap metals is automatic. 
Question 94 
As regards the response to Question 44 of docume nt JOB/ACC/28, please indicate the location 
of the "one-stop-shop" for export "where many of these [export] documents are currently being 
issued," list the documents necessa ry for exportation, and give the legal citation of the law or 
regulation establishing the one-stop-shop. 
Answer: 
The One Stop Shop (OSS) is locat ed at the Customs Internal Cust oms Depot (Customs House) in 
Kabul.  There is no legal document establishing th e export OSS.  A Memo randum of Understanding 
for establishing the OSS was signed among relevant ministries, state bodies, and associations. 
Below is the list of mandatory documents for exportation:  
Measure Issuing Ministry/Agency/Associations 
Business Licence Ministry of Commerce and Industries (MOCI) (not under OSS) 
Commercial Invoice Attested by representative of Afghanistan Chamber of Commerce and 
Industry (ACCI) at the OSS 
Certificate of Origin Issued by representative of ACCI at the OSS 
Phytosanitary Certificate (for plant 
and plant products only) Issued by the representative of the Quarantine Department of the 
Ministry of Agriculture, Irrigation, and Livestock (MAIL) at the OSS 
Veterinary Certificate (for animal and animal products only) Issued by the representative of th e Animal Health Department of 
MAIL (not at OSS)  WT/ACC/AFG/17 
Page 60  
 
  Measure Issuing Ministry/Agency/Associations 
Export Seeds Certificate (for seeds) Issued by the Seeds Directorate under MAIL at OSS 
Export authorization for all minerals Issued by the Ministry of Mines (not under OSS) 
Export authorization for scrap 
metals Issued by the representative of the Export Promotion Agency of 
Afghanistan at the OSS 
Issued by the Ministry of Mines (not under OSS) 
Export authorization for used glass, 
plastics and coal Issued by the representative of the Export Promotion Agency of 
Afghanistan at the OSS 
Export approval for printed books, 
brochures, leaflets, and other printed matters Issued by the Ministry of Information and Culture (not under OSS) 
Export approval for films Issued by the Ministry of Information and Culture (not under OSS) 
Export approval for Antiquities Issued by the representative of the Ministry of Information and 
Culture at the OSS 
Note further that exporters have the option of obtaining these documents at the OSS (for ministries 
which have a representative there) or from the relevant ministry. 
In addition to the above, the follo wing are required to clear customs for export: customs declaration, 
packing list and bill of lading. 
The following documents are no longer mandatory for exportation: 
Measure Issuing Ministry/Agency/Associations 
Export authorization for karakul Issued by the Karakul Institute 
Export authorization for handicrafts Issued by the Handicraft Promotion Center 
Export authorization for Carpets, 
rugs, and felts Issued by the Carpet Exporter and Producers Guild 
Quality certificate for fresh fruits, 
dried fruits, and vegetables.   Issued by the Afghan Raisin, Fruits and Vegetables Promotion 
Association 
 
- Export subsidies 
Question 95 
We suggest that this section be unified with the section of the Factual Summary on Industrial 
Policy, including export subsidies, and be ren amed "Industrial policies, including subsidies." 
Answer: 
Afghanistan agrees to this suggestion. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 
Question 96 
The Factual Summary indicates that Afghanista n does not currently have subsidy programmes 
to support particular sectors or any export subsidies. 
- Does Afghanistan anticipate adopting any industrial subsidy or export programmes in 
the future? 
- If so, will Afghanistan make a commitment no t to introduce export performance or local 
content requirements prohibited under Article 3 of the Subsidies Agreement?  WT/ACC/AFG/17 
 Page 61 
 
 
  - Will Afghanistan be submitting, prior to acce ssion, a draft notification of any subsidy 
programmes currently in place pursuant to Article 25 of the Subsidies Agreement? 
Answer: 
Afghanistan does not anticipate adopting any subsid ies contingent upon export performance or import 
substitution in the future.  Afghanistan, however, may adopt industrial subsidies which are permitted 
under the WTO Agreement on Subsidies and Countervailing Measures. 
Afghanistan is prepared to make a commitment not  to introduce export performance or local content 
requirements prohibited under Article 3 of the Ag reement on Subsidies and Countervailing Measures. 
Currently, the following two laws provide authorit y for granting subsidies in the minerals and 
hydrocarbon sector:  
 Income Tax Law of 2009:  For persons holding a mining Licence or mining Authorization or 
is party to a hydrocarbons Contract, a special tax regime is provided including accelerated depreciation and exemption from BRT. 
 The Law on Minerals of 2005:  It provides the Ministry of Finance the authority to adopt 
measures for tax and customs duties applicable  to holders of mineral rights and mineral 
activities. These may include deferral of tax payments, accelerated depreciation, exemptions from BRT, and reduction of customs charges on machinery, equipment and other goods used 
in mineral exploration and exploitation.  
Prior to accession, Afghanistan will submit draft notifi cation of any subsidy pursuant to Article 25 of 
the Agreement on Subsidies and Countervailing Measures. 
- Technical barriers to trade,  standards and certification 
Question 97 Does the Afghan Government also plan to create  a Technical Barriers to Trade (TBT) Enquiry 
Point?   
- If yes, what is the timeline to establish the enquiry point?  
- In which ministry and department will the TBT Enquiry Point be housed?  
- Is the "information center" referred to in Article 37 of the draft Law on Standards and 
Technical Regulations the WTO enquiry point for TBT? 
Answer: 
The Afghan Government plans to create a TBT Enquiry Point. 
Article 37 of the draft Law on Standards and Techni cal Regulations calls for the establishment of the 
Information Center under the Afghan National Sta ndards Authority (ANSA) which will serve as the 
Enquiry Point. 
Technically, the TBT Enquiry Point will be form ally established once the legal framework for 
establishing it is adopted.  The Draft Law on Standard s and Technical Regulations is expected to be 
adopted during second half of 2013/first half of 2014 as indicated in the Legislative Action Plan 
(WT/ACC/AFG/9/Rev.1).   In the meantime, e nquiries are handled through the offices and contact 
points notified in paragraph 107 of the Factual Summary. WT/ACC/AFG/17 
Page 62  
 
  Nonetheless, Afghanistan is considering to adopt a te mporary legal measure at the ministerial level to 
formally establish the TBT Enquiry Point prior to  the adoption of the Draft Law on Standards and 
Technical Regulations and as early as January 2013. 
Question 98 
Paragraphs 102 to 105 of document JOB/ACC/ 28 describe the Afghan National Standards 
Agency (ANSA).  The draft Law on Standards and Technical Regulation establishes a Supreme 
Council of Standard, described as the "highest decision making authority related to standardization," chaired by the head of the Economic Committee of the Council of Ministers, 
and responsible for, inter alia, "policies a nd strategies of the ANSA and monitoring of 
application of these policies and strategies," the approval of national standards, and technical 
regulations. 
- Please clarify the role of the Supreme Council of Standard vis-à-vis  ANSA and include 
this information in the Factual Summary .  Does ANSA report to the Minister of 
Commerce and Industry, to the Supreme Council of Standard, or to both? 
Answer: 
Please see below information to be considered  for inclusion in the Factual Summary. 
Note that Afghan National Standardization Author ity (ANSA) reports only to the Supreme Council of 
Standards. 
The Supreme Council of Standard 
According to Article 25 of the Draft Law on St andards and Technical Regulations, the Supreme 
Council of Standards is as the highest decision ma king authority related to standardization is 
established with the following composition:   
1. Head of Economic Committee of Minister's Council - as Chairman 
2. Minister of Commerce and Industry - as Deputy Chairman 
3. Director General of Science Academy - as member 
4. Head of National Drug Board of Ministry of Public Health - as member 
5. Director General of ANSA - as member  
6. Director General of National Environmental Protection Authority - as member 
7. Deputy Minister of Economy - as member  
8. Deputy Minister of Finance (Revenue and Customs Affairs) - as member  
9. Deputy Minister of Higher Education - as member  
10. CEO of Afghanistan Chamber of Commerce and Industries - as member  
11. Deputy Minister of Agriculture, Irrigation and Livestock - as member  
12. Technical Deputy Minister of the Ministry of Urban Development - as member 
13. Technical Deputy Director General of ANSA - as secretary 
Article 26 of the Draft Law on Standards and Techni cal Regulations lays out the following duties and 
authorities of the Supreme Council of Standard: 
1. Approval of the general policies and strategies of  the ANSA and monitoring of application of 
these policies and strategies; 
2. Approval, amendment, suspension, exclusi on and alternation de veloping, revising, 
suspension, withdrawal and replacement of th e national standards based on the provisions of 
this law;  
3. Approval of proposed technical regulations;   WT/ACC/AFG/17 
 Page 63 
 
 
  4. Approval of the Work Plan of the ANSA; 
5. Approval of standards costs, all sellable pub lications and services provided by the ANSA; 
6. Approval of agreements, Memorandum of U nderstandings, conventions; accession of ANSA 
with the International a nd Regional Organizations; 
7. Approval of the proposal for the ame ndment, or addition to this law. 
8. Approval of rules and related procedures in the area of technical regulations, standards and 
conformity assessment procedures; 
9. Assuring of implementation of technical re gulation and publication of their results. 
10. Attracting support from the donor and supporter communities.  
Afghan National Standardization Authority (ANSA) 
Generally speaking, ANSA is responsible for the im plementation of a unified policy in the field of 
standardization, technical regulations, metrology and conformity assessment, ensuring transparency 
and consistency of actions of standardization works according to the requirements of the Law on 
Standards and Technical Regulations.  In accordan ce with Article 27 of the Draft Law on Standards 
and Technical Regulations, ANSA has the following duties and authorities:  
1. Preparation, adoption and publication of the Na tional Standards and Technical regulations as 
well as oversight of their application inside the country.  
2. Providing technical advice and guidance to the private and government entities that are 
willing to formulate standards. 
3. Setting criteria and procedures for formulating and application of standards, technical 
regulations and conformity assessment. 
4. Adoption and adaptation of standards, techni cal regulations, guidelines and recommendations 
from the international, regional or a pa rticular country's standard bodies. 
5. Establishment of National Metrology System w ith all the services included in the area of 
measurement and calibration.  
6. Issuing conformity quality certificate for products and services. 
7. Establishing standard mark a nd monitoring its application. 
8. Testing and application of the samples of produc ts with standards, and specifications as well 
as making comments on results of comparison and issuance of related certificate.  
9. Setting consumption, waste and dissipate norms with the help of scientific research and 
project designing organizations. 
10. Determination of consumption norms to utili ze financial and economical resources of the 
government effectively. 
11. Establishing of Information Center for st andards, technical regulations, conformity 
assessment procedures and other related documents  according to Article 37 of this Law.   
12. Establishing periodic publication and maintain ing official web-site where notices on new 
technical regulations, standards and conform ity assessment procedures being developed and 
work programs are published at an early stage as  to enable interested parties to become 
acquainted with it and to provide comments. 
13. Representing the government in the international,  regional and national organizations, in the 
areas related to standards and metrology. 
14. Conducting and supporting studies and research in the fields related to standard, metrology, 
conformity assessment and other related issues. 
15. Providing opportunity for privates sector to invest and operate and providing services 
expertise and advise in field of prepar ation and implementation of standards. 
16. Presenting proposals to the Supreme Council of Standard. 
17. Getting specialized and professional advises from governmental and nong overnmental related 
entities. 
18. Imposing and receiving cash penalty and implem enting the provisions of this law.  WT/ACC/AFG/17 
Page 64  
 
  19. Suspending or revocation of certificate conformity, right to use from standard mark, and other 
privileges in accordance to this law.  
20. Introducing the offender of this law to  the legal and judicial institutions. 
21. Regulating affairs related to right to use sta ndard mark through adopting of procedures and 
rules.  
22. Adoption of other related rules and procedures fo r implementation of provisions of this law. 
Question 99 
Paragraph 105 of JOB/ACC/28 states that "Asked to identify the relevant publications for 
proposed standards and technical regulations, th e representative of Afghanistan replied that the 
ANSA would be issuing a new magazine and would be establishing a website.  He noted that 
ANSA would only publish draft national sta ndards which deviated from international 
standards. 
- Please clarify that Afghanistan will publish all draft standards for comment prior to 
their finalization, as required by the WTO Agreement on Technical Barriers to Trade. 
Answer: 
The WTO TBT Agreement does not require the publication of draft standards.  Afghanistan 
nonetheless will publish draft standards which deviat e from international standards for commenting 
prior to their finalization. 
In the case of technical regulations and conformity assessment procedures, the WTO Agreement 
states that provision for comments is only necessar y when the proposed regulation or procedures 
differ from relevant international st andards and there may be a significant effect on trade of a Member 
(Articles 2.9 and 5.6).  The application of standard s is voluntary and there can be no effect on trade. 
Question 100 
Concerning the response to Question 48 of document WT/ACC/AFG/7: - Are producers and importers considered for participation in the Technical Committees 
listed in the response? 
- Who establishes and selects the committees and their members?   
- Are terms of membership fixed by law or reg ulation, or at the pleasure of the selecting 
authority? 
Answer: 
Yes, producers and importers are considered fo r participation in the Technical Committees. 
A Technical Committee can be established based on the request for standards in the specific sector or 
as prioritized by ANSA.  The request for estab lishment of a Technical Committee and potential 
members is submitted to the ANSA Director Gene ral (DG) by Standardization Directorate. 
ANSA DG establishes and selects the committees and their members in accord ance with Technical 
Committee operational manual.    However, the committee itself can decide on inviting new members 
or restructuring the committee subject to the final approval by ANSA DG.  WT/ACC/AFG/17 
 Page 65 
 
 
  Question 101 
Does Afghanistan intend to issue its own technica l regulations (TRs) or to adopt TRs already 
established by others? 
Answer: 
Afghanistan mainly intends to issue its own t echnical regulations which may be based, when 
appropriate, on TRs of other countries in case intern ational standards do not exist or are deemed 
inappropriate or ineffective.  In addition, Afgha nistan may also adopt TRs of other countries as 
equivalent to national technical regulations. 
Question 102 
How does Afghanistan intend to assess conformity of imported goods to the TRs it adopts or 
accepts from other sources? 
Answer: 
Afghanistan is in the process of establishing a c onformity assessment system whereby Afghanistan 
will recognize conformity certificat es issued by conformity asse ssment bodies which are accredited 
by international or recognized regional accredita tion bodies in compliance to the categorization of 
import items that will be based on their sensitivit y and risk analyses.  These conformity assessment 
bodies can be Afghan or foreign entities. 
Question 103 
Article 7 of the draft Law on Standards and Tec hnical Regulations states that the "Preparation, 
adoption and application of Standards shall be  carried out according to the internationally 
accepted guides and codes of best practices".  As  part of the WTO TBT Agreement, Article 4, 
Afghanistan will need to undertake a specific commitment that its central government 
standardizing bodies will use the WTO TBT Code of Good Practice in the development of its 
national standards.  It will also need to commit to take reasonable measures to ensure that local 
and regional government and non-government bodies accept and comply with the Code of Good 
Practice. 
Answer: 
Afghanistan commits that its central governme nt standardizing bodies (ANSA) will use the 
WTO TBT Code of Good Practice in the developmen t of its national standards.  ANSA is the only 
body in Afghanistan which adopts standards.  There are no local and regional government and 
non-government bodies which adopt standards. 
Question 104 
As regards Article 8 of the draft Law:  What international and regional standards Afghanistan 
will adopt?  Will these regulations from other regions and other countries be incorporated into Afghanistan's regulation? WT/ACC/AFG/17 
Page 66  
 
  Answer: 
ANSA is currently focusing on the adoption of ISO, IEC, and ASTM, and Codex Alimentarius 
standards.  In the future, ANSA may consider regional standards developed by the South Asian 
Regional Standards Organization (SARSO). 
If no international standards are available or existing standards are deemed ineffective or 
inappropriate, Afghanistan may prepare its techni cal regulations based on standards and technical 
regulations of regional standardization bodies. 
Question 105 
Could we have further clarification on Article 9, paragraph 5 of the draft Law regarding which 
regional standardization bodies the sta ndards used for TRs will be based on? 
Answer: 
Afghanistan will consider standards developed by  SARSO which operates within the framework of 
the South Asian Association for Regional Coopera tion (SAARC).  Afghanistan is a Member of 
SAARC which includes Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. 
In addition, ANSA is a member of Regional Ins titute for Standards, Conformity Assessment, 
Accreditation and Metrology (RISCAM) which operates under Economic C ooperation Organization 
(ECO), which is an intergovernmental organizati on involving seven Asian and three Eurasian nations, 
part of the South-central Asian Union. The memb ers are Afghanistan, Azerbaijan, Iran, Kazakhstan, 
Kyrgyz Republic, Pakistan, Tajikistan, Turkey, Turkmenistan, and Uzbekistan. In the meantime 
ANSA has applied for membership in Standard and Metrology Institute of Islamic Countries (SMIIC) 
which operates under Organization of Islamic Countries (OIC). 
Question 106 Article 10, paragraph 2 of the draft Law states that there will be a fee to receive a copy of the 
draft regulation.  Please consider that this re quirement be deleted.   The electronic version 
should be freely available for all interested parties.   
Answer: 
Article 10.2 in the revised draft law has been amended to eliminate this fee. 
Question 107 
Concerning Article 11, paragraph 1 of the draft Law, how will the Afghan Government 
determine that foreign countries' technical regulations are consistent with Afghan laws?   
Answer: 
If foreign technical regulations do not violate a ny provisions of Afghan laws then they can be 
considered consistent with Afghan laws.  This will be done through conduc ting legal assessment of 
foreign countries' technical regulations to determin e if it conflicts with natio nal legislation and if it 
meets the objectives laid out in Article 9.1 of the Draft Law.  WT/ACC/AFG/17 
 Page 67 
 
 
  Question 108 
Concerning Article 18 to 20, will the Afghan Government provide criteria for meeting its 
equivalency requirements?  Will Afghanis tan accept a Manufacturer's Certificate of 
Conformity with recognized international standards as the basis of equivalency?  Will the conformity assessment results of internationall y recognized conformity assessment bodies, e.g., 
Underwriters Laboratories, be accepted? 
Answer: 
Afghanistan will develop criteria for meeting equi valency requirements at  a later stage through 
implementing regulations.  Afghanistan will be seeki ng to include in the Draft Report of the Working 
Party on the Accession of Afghanistan transition for the implementation of certain provisions of the 
Draft Law on standards and technical regulations.  These transitions, once agreed upon, with Working 
Party Members, will be included in a tr ansitional article in the Draft Law. 
Supplier's (manufacturer's) declaration will be accepte d as provided in Article 18(1) of the Draft Law 
on Standards and Technical Regulations .  Appropriate regulations will be developed.  Again, this is an 
area where Afghanistan may seek a shorter trans ition to put appropriate mechanism in place. 
Conformity assessment results of internationally recognized confor mity assessment bodies (including 
Underwriters Laboratories) will be accepte d as long as these conformity assessment bodies are 
accredited by bodies recognized in Afghanistan.  Af ghanistan will publish once approved the list of 
recognized accreditation bodies in Afghanistan.  Th is will certainly include ILAC affiliated bodies. 
- Sanitary and phytosanitary measures  
Question 109 
The response to Question 53 of document WT/A CC/AFG/7 states that Afghanistan intends to 
establish a Sanitary and Phytosanitary (SPS) E nquiry Point (EP) and National Notification 
Authority (NNA), and that it would conduct a n eeds assessment, including staffing, equipment 
and IT needs, for establishing these bodies in Fall 2011.   
- If Afghanistan has conducted this assessment, what were the results?   
- Can Afghanistan please provide the timeframe for which it expects a SPS EP and NNA 
to be established?   
- Can Afghanistan please provide details on th e proposed staffing of the SPS EP and NNA 
office(s) and whether these employees would h ave other responsibilities?  We encourage 
Afghanistan to utilize its SPS EP employees fo r National Notification work and vice 
versa.   
- What procedures will be put in place to ensure that draft SPS measures will be 
published in the Official Gazette and notifi ed to the WTO in their early stages in a 
manner that allows for the WTO reco mmended 60-day comment period?   
- What does Afghanistan consider "early stage" in this regard:  What procedures will be 
put into place to ensure that relevant reg ulatory/food safety agencies are in close 
communication with the SPS NNA to ensure the ti mely dissemination of notifications to 
the WTO? WT/ACC/AFG/17 
Page 68  
 
  Answer: 
Afghanistan did not indicate in the reply to Question 53 that a formal National SPS Enquiry and 
Notification Point (SPS-ENP) will be established in  Fall 2011.  Rather, a needs assessment was to be 
conducted in Fall 2011 to determine staffing needs, equipment, and IT needs for establishing the SPS 
ENP in the future.   
The three draft SPS laws (the Draft Law on Plant Protection and Quarantine, the Draft Law on Food, 
and the Draft Law on Animal Health and Public H ealth) call for the establishment of the SPS ENP.  
These drafts follow closely the provisions of the WT O SPS Agreement.  It is envisioned that a single 
National SPS ENP will be established for handling e nquiry and notifications.  The SPS ENP will be 
established at the Ministry of Agriculture, Irrigati on, and Livestock (MAIL) and will be staffed by 
two part-time MAIL employees who will handle bot h enquiries and notifications and assume other 
responsibilities within MAIL.  Three contact points w ill be designated to regularly interact with the 
staff of the SPS ENP and provide, when needed, re quired information for notification and replies to 
enquiries: 
 Contact Point at the General Directorate for An imal Health at MAIL who will be responsible 
for veterinary measures 
 Contact Point at the Directorate for Plant Qu arantine at MAIL who will be responsible for 
phytosanitary measures 
 Contact Point at the Ministry of Health w ho will be responsible for food safety measures. 
Contact points at aforementioned entities will submit dr aft measures at early stage (once initial draft is 
elaborated) to the SPS ENP through a web porta l which will be developed for this purpose. 
A notice of the availability of the proposed SPS measure will then be published on the National SPS 
ENP website and the measure will be notified to the WTO through the SPS ENP no less than 60 days 
before finalizing the draft SPS measure. 
In addition to dedicated office space, th e SPS ENP will need to be equipped with: 
 Dedicated office space 
 Two desk top computers with large storage capacity 
 External hard drive to back up electronic files 
 Reliable internet access 
 MS Office Software Package 
 Copier/Scanner 
 Laser Printer 
 Phone and Fax capabilities with international access 
 Two desks and two chairs 
 Two File Cabinets 
 Website/Portal 
Technically, the SPS ENP will be formally establishe d once the legal framework  for establishing it is 
adopted.  The three draft SPS laws, mentioned above,  are expected to be adopted during second half 
of 2013/first half of 2014 as indicated in the Legi slative Action Plan (WT/ACC/AFG/9/Rev.1).   
In the meantime, enquiries are handled through the offices and contact points notified in paragraphs 
119 and 120 of the Factual Summary. 
Nonetheless, Afghanistan is considering to adopt a te mporary legal measure at the ministerial level to 
formally establish the National SPS ENP prior to the adoption of three draft SPS laws and as early as 
January 2013.  WT/ACC/AFG/17 
 Page 69 
 
 
  Question 110 
Paragraph 108 of document JOB/ACC/28:  What is  the timeframe for adoption of the new laws 
mentioned in this paragraph?  When are these laws expected to enter into force? 
Answer: 
The timeframe for adoption of the three new SPS rela ted laws is provided in the Legislative Action 
Plan (WT/ACC/AFG/9/Rev.1).  The anticipated adoptio n date is Second half of 2013/First quarter of 
2014 for the following draft laws: 
 Draft Law on Plant Protection and Quarantine  
 Draft Law on Animal Health and Veterinary Public Health 
 Draft Law on Food Safety 
Given the need for developing implementation mechan isms and build related capacity, these laws will 
come into force one year after adoption. 
Question 111 
Paragraph 110:  Could you please update the Working Party on the state of play of 
Afghanistan's membership in the IPPC?  In addition, could you please provide concrete examples of science-based risk assessment havi ng been conducted in accordance with the 
WTO SPS Agreement and guidelines of Codex, OIE and the IPPC?   
Answer: 
Afghanistan's application for membership in the IPPC has been approved by the Minister of 
Agriculture, Irrigation, and Livestock and submitted to  the Ministry of Foreign Affairs for further 
submission to FAO.  Afghanistan Ministry of Fore ign Affairs submitted the I PPC application to FAO 
in May 2012. 
Afghanistan does not currently have in place procedur es, technical capacity or equipment to carry out 
science-based risk assessment in accordance with the WTO SPS Agreem ent and guidelines of Codex, 
OIE and the IPPC. 
Question 112 
Paragraph 111:  What are the timeframes for iden tification of measures not in line with the 
international standards, guidelines and recomme ndations from the OIE and the IPPC?  What 
are the timeframes to develop Action Plans in view of harmonization? As regards the Action 
Plan, we note that, once developed, it should be shared with other WTO Members. 
Answer: 
Afghanistan plans to harmonize during the next four years with the following priority international 
standards, guidelines and recommendations from the OIE and the IPPC as follows: 
IPPC: 
1. ISPM No. 1 (2010) Phytosanitary principles for the protection of plants and the 
application of phytosanitary measures in international trade 
2. ISPM No. 7 (2011)  Phytosanitary  certification system WT/ACC/AFG/17 
Page 70  
 
  3. ISPM No. 12 (2011) Phytosanitary certificates 
4. ISPM No. 19 (2003) Guidelines on lists of regulated pests 
5. ISPM No. 20 (2004) Guidelines for a phytosanitary import regulatory system 
6. ISPM No. 23 (2005) Guidelines for inspection 
7. ISPM No. 24 (2005) Guidelines for the determ ination and recognition of equivalence of 
phytosanitary measures 
8. ISPM No. 31 (2008) Methodologies for sampling consignments 
9. ISPM No. 32 (2009) Categorization of commodities according to their pest risk 
10. ISPM No. 34 (2010) Design and operation of po st-entry quarantine stations for plants 
Significant capacity building and technical assistan ce will be required to carry out this work. 
In addition, there is need to renovate and moderni ze all facilities (including laboratories) and properly 
equip them and to develop sound testing methodologies.  Additiona l information will be provided 
before the Working Party meeting re garding specific institutional needs. 
OIE: 
The areas of intervention which have been prior itized are mostly concerned with disease notification 
(including listing of diseases) and reporting, animal health surveillance, the regulation of import and 
export of live animals and products of animal orig in, veterinary diagnostic laboratory services, and 
food safety.  These will include the following chapters of the OIE Terrestrial Code: 
 Disease and Animal Health Surveillance, Monitori ng and Inspection – Chapters 1.1, 1.2, 1.3, 
1.4 and 4.1 
 Border Inspection and Certification – Chapters 5.1, 5.2, 5.3  and 5.6 
 Food Safety – Chapters 6.1, 6.2,  and 6.9 
One of the main challenges for Afghanistan to fu lly comply with OIE requirements is rebuilding 
veterinary capacity after decades of conflict.  Main challenges relate to the areas of disease 
surveillance capacity and laboratory diagnostic capacity. 
During the coming four years, the Directorate of Animal Health needs the establishment of 
infrastructures which are equipped and staffed w ith appropriately trained and qualified staff to 
perform the following core functions: 
 Disease surveillance, reporting, coordination of prevention and control activities with private 
sector service providers 
 Animal Health service monitoring and inspection 
 Animal medicines / vaccines Input supply regulation and inspection 
 Border inspection for live animals and pr oducts of animal origin (Quarantine and 
disinfection/disposal facilities) 
 Certification facilities (including laboratory services for Export of animals and products of 
animal origin 
 Food safety, meat inspection, Import and expor t inspection and certification of animals and 
products of animal origin 
Additional information will be provided before the Working Party meeting regarding specific 
institutional needs.  WT/ACC/AFG/17 
 Page 71 
 
 
  Question 113 
Paragraph 112:  Are the veterinary and phytosa nitary measures applied equally for internal 
market and for the products intended to be exported? 
Answer: 
The same requirements for veterinary and phytosan itary measures apply for internal market and for 
the products intended to be exported.  The phyto sanitary and veterinary certificates are not however 
issued for domestic market although both domestic  and exported goods are subject to the same 
requirements. 
Question 114 
Paragraph 114:  What kind of physical tests are performed at laboratory level (microbiological, 
heavy metals, drug residues…)? What are the limit s followed or in place at national level? 
Answer: 
Tests are conducted on samples. 
Ministry of Agriculture, Irrigation, and Liv estock/Veterinary Public Health Laboratory: 
 Physical tests include organoleptic examination,  appearance, scent, texture, taste and sound. 
 Microbiological: presence or absence of main pathogens or their toxins (e.g. Salmonella, 
Staph aureus, B. cereus Listeria monocytogenes etc) 
 Bacteriological: anti-bacterial tests 
 Drug residues: capacity exists only for antib iotics (pharmacological active substance) 
Afghanistan follows the limits recomm ended by Codex Alimentarius and t he International 
Commission on Microbiological Specifications for Foods ( ICMSF).  
Ministry of Health/Food and Drug Quality Control Laboratory: 
 Physical test on label of materials (visual ex amination): name of product, ingredients and 
amounts, manufactured date, expiry date 
 Physical test of materials inside the container: appearance, color, scent, and taste of materials. 
Detection of any foreign physical objects such as bone, metal, wood, glass, etc. 
 Heavy metals: tests to determine level against limits recommended by international standards 
(e.g. Codex Alimentarius) 
 Toxicological: no resources or capacity to test for such 
 Microbiological: only bottled water; no resources or  capacity to test for other processed food 
products 
 Bacteriological: only bottled water; no resources or capacity to test for other processed food 
products 
Question 115 
Paragraph 115:  Does Afghanistan require that the certificate be sign ed by the official 
competent authority of the country of origin ?  How does Afghanistan ensure that certificates 
are not fake?  Are OIE standards always the rule or are there some exceptions?  If yes, could 
Afghanistan please provide some examples? WT/ACC/AFG/17 
Page 72  
 
  Answer: 
Afghanistan requires that certificates must be issued  and signed by the official competent authority of 
the country of origin.   
Afghanistan does not have the capacity, the resources, or procedures to determine whether or not 
veterinary certificates issued by another country are not fake.  Afghanistan intends to develop 
appropriate procedure related to veterinary certificate in line with OIE. 
Question 116 
Paragraph 118:  Is microbiological/ testing by th e Ministry of Public Health limited to bottled 
waters?  Or does it apply to other processed food products imported?  Could Afghanistan 
please specify? 
Answer: 
Currently, the microbiological/bacteriological testing by  the Ministry of Public Health is limited to 
bottled waters.  It is not conducted to processed food products due to lack of technical capacity, 
resources, and necessary laboratory equipment.  
Question 117 
Paragraph 119 :  What are the timefr ames for setting up an Enquiry Point? 
Answer: 
Technically, the SPS ENP Enquiry and Notification Point (SPS ENP) will be formally established 
once the legal framework for establishing it is adopt ed.  The three draft SPS laws, mentioned above, 
are expected to be adopted during second half of 201 3/first half of 2014 as indicated in the Legislative 
Action Plan (WT/ACC/AFG/9/Rev.1).  In the m eantime, enquiries are handl ed through the offices 
and contact points notified in paragra phs 119 and 120 of the Factual Summary. 
Nonetheless, Afghanistan is considering to adopt a te mporary legal measure at the ministerial level to 
formally establish the National SPS ENP prior to the adoption of three draft SPS laws and as early as 
January 2013. 
- Transit  
Question 118 
Paragraph 62 of the Factual Summary states that  "the fee schedule for international transit 
through Afghanistan was as follows:  (i) US$100 for total weight equal or below 25 tons; and 
(ii) another US$100 for weight exceeding 25 tons."  Article V of the GATT 1994 requires that "such traffic [in transit] coming from or going to the territory of other contracting parties . . .  
shall be exempt from customs duties and from all transit duties or other charges imposed in 
respect of transit, except charges for transportati on or those commensurate with administrative 
expenses entailed by transit or with the cost of services rendered." 
- Please indicate the purposes for which Afghan istan's fees for transit are applied, e.g., 
what do they cover and are they commensura te with the cost of the services rendered?  WT/ACC/AFG/17 
 Page 73 
 
 
  Answer: 
The transit fees are charged for granting the right to tr ansit.  This fee is charged to cover the related 
administrative cost of the Transit Department at the Ministry of Commerce and Industries. 
- Agricultural policies 
Question 119 
In response to Question 66 of document WT/ACC /AFG/7, Afghanistan notes that it does not 
currently implement any government sponsored schem es to subsidise agricultural exports.  We 
support this position.  Afghanistan also notes it  will decide later in the accession process on 
whether to commit to binding export subsidies at zero. 
- If Afghanistan does not operate any export  subsidies, could it please explain the 
rationale for not yet making this commitment? 
Answer: 
Afganistan is not yet prepared at this stage of its accession to make a decision regarding such critical 
commitment.  Afghanistan is looking forward to discuss this matter in the context of plurilateral 
negotiations on agricultural support. 
Question 120 Since Afghanistan currently does not provide expo rt subsidies for agricultural goods, we expect 
that Afghanistan will commit not to utilize such subsidies to promote agr icultural exports after 
accession to the WTO. 
Answer: 
Afganistan is not yet prepared at this stage of its accession to make a decision regarding such critical 
commitment.  Afghanistan is looking forward to discuss this matter in the context of plurilateral 
negotiations on agricultural support. 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS 
- Trademarks, including service marks Question 121 Paragraph 153 of document WT/ACC/JOB/28 and Question 145 of WT/ACC/AFG/7:  Taking 
into account that the principle of specialization does not apply to well-known trademarks, the wording "pending amendments to Article 8, mark s determined to be well-known in Afghanistan 
for identical or similar goods" seems to go against Article 16(3) of the WTO TRIPS Agreement.  
Could Afghanistan please clarify? WT/ACC/AFG/17 
Page 74  
 
  Answer: 
Article 9(2) has been revised to closely track the language of the TRIPS Agreement Article 16(3): 
Protection of registered well-known marks shall extend to goods or services which 
are not similar to those in respect of wh ich the mark has been registered, provided 
that use of that mark in relation to those goods or services would indicate a 
connection between those goods or services and the owner of the registered mark, 
and provided that the interests of the own er of the registered mark are likely to be 
damaged by such use. 
- Patents Question 122 
Law "On Supporting the Rights of Inventors a nd Discoverers" of 31 July 2008 referred to in 
WT/ACC/AFG/5/Add.1:  Contrary to the practi ce of most jurisdictions, including ours, 
according to Article 4 of the Law "discoveries" (besides inventions) can be the subject-matter of 
patents in Afghanistan.  Is it possible to obtain  a clarification or examples of discoveries that 
could be patented in Afghanistan? 
Answer: 
Amended Article 6(3) limits  patent protection to "inventions or discoveries, whether products or 
processes, in all fields of technology, which are ne w, involve an inventive step and are capable of 
industrial application".  Thus, only discoveries wh ich meet the TRIPS Agreement Article 27 criteria 
of patentability may be the subject matter of a patent.  A mere observation or identification of a fact or 
phenomenon which does not meet those criteria could not be patentable in Afghanistan. 
- ENFORCEMENT Question 123 Paragraphs 161 to 165 of document JOB/ACC/28:   - What provisions exist under the law for the protection of undisclosed information 
pursuant to Article 39 of the WTO TRIPS Agreement? 
Answer: 
Afghanistan does not have a law on protection of undiscl osed information.  A draft is currently being 
prepared.  Key provisions of the Draft Law, cove ring protection of undisclosed information pursuant 
to Article 39, provide as follows: 
Article 3.  Undisclosed Information  
1. For purposes of this Law, any information s hall be considered undisclosed information if: 
1)  It is secret in the sense that it is not, as a body or in the precise configuration and 
assembly of its components, generally known am ong, or readily accessible to, persons within 
the circles that normally deal with the kind of information in question;   2)  It has commercial value because it is a secret; and 3)  It has been subject to reasonable steps und er the circumstances, by the person lawfully in 
control of the information, to keep it secret.  
  WT/ACC/AFG/17 
 Page 75 
 
 
  2.  The existence of undisclosed information is  not negated merely because an employee or 
other person has acquired the undisclosed inform ation without express or specific notice that 
it is undisclosed information if, under all the circumstances, the employee or other person 
knows or has reason to know that the owner of  the information intends or expects the secrecy 
of the type of information comprising the undisclosed information to be maintained.  
 
Article 4.  Misappropriation  1.  The owner of undisclosed information, or  other natural or legal persons having such 
information lawfully within their control, shall have the right to prevent any person from 
misappropriating that information.  
2.  The acquisition, use, or disclosure of undi sclosed information by any person in a manner 
contrary to honest commercial practices and/or  without the owner's consent shall be 
considered to constitute misappropriati on of undisclosed information.  
3.  For purposes of this Article, the follo wing shall be considered contrary to honest 
commercial practices:  
1)  breach of contract;  2)  breach of confiden ce or inducement thereof;  
3)  theft;  4)  bribery;  5)  misrepresentation;  
6)  espionage through electronic or other means; and  
7)  any acquisition of undisclosed informati on by third parties who knew, or were grossly 
negligent in failing to know, that dishonest  commercial practices were involved in the 
acquisition. 
4.  The discovery of undisclosed information by  independent invention or reverse engineering 
shall not be considered contrary to honest commercial practices. 
The Draft Law further includes provisions on injunc tive and compensatory remedies, confidentiality, 
and non-discrimination. 
The Draft will be shared with WTO Working Party Members before the end of 2012. 
Question 124 
In what manner will the law of Afghanistan comp ly with Article 43(1) of the TRIPS Agreement 
requiring that judicial authorities shall ha ve the authority, where a party has presented 
reasonably available evidence sufficient to suppo rt its claim and has specified evidence relevant 
to substantiation of its claims which lies in the co ntrol of the opposing party, to order that this 
evidence be produced by the opposing party, s ubject in appropriate cases to conditions which 
ensure the protection of confidential information? 
Answer: 
A provision based on Article 43(1) of the TRIPS Ag reement has been developed for inclusion at 
Article 224 of the Civil Procedure Code of 1990. Draft Amendments to the Civil Procedure Code 
were shared with Working Party for review one year ago (September 2011). 
Question 125 
Article 43(2) of the TRIPS Agreement provides th at a Member may accord judicial authorities 
the authority to make preliminary and final determinations, affirmative or negative on the basis WT/ACC/AFG/17 
Page 76  
 
  of the information presented, where a part y to a proceeding voluntarily and without good 
reason refuses access to or does not provide in formation within a reasonable period.   
- Is this provided for in the law of Afghanistan? 
Answer: 
Afghanistan law does not provide for the author ity permitted under Article 43(2) of the TRIPS 
Agreement which is optional under the TRIPS (TRI PS does not require Members to establish this 
authority). 
Question 126 
With regard to the draft amendments to the Customs Law, could updates be provided on the 
status of including the TRIPS Agreement provisions contained in Articles 51 to 60?   
Answer: 
A Draft Order on Intellectual Property Border Enforcement, drawing on Articles 51-60 of the TRIPS 
Agreement requirements and World Customs Organi zation model legislation, and tailored to the 
existing Customs Code provisions on border enfo rcement as well as the existing capabilities of the 
local customs service and judiciary, has been developed. 
A copy of the initial draft text of this Order will be submitted in November 2012 to the WTO for 
Working Party review. 
Question 127 
Please indicate how the law of Afghanistan provides judicial authorities with the authority to 
order goods found to be infringing and material s and implements - the predominant use of 
which has been in the creation of the infringing goods - to be disposed of outside the channels of 
commerce in a manner to avoid harm to th e right holder under Article 46 of the 
TRIPS Agreement.   
Answer: 
A provision based on Article 46 of the TRIPS Agreem ent has been developed for inclusion at Article 
265 of the Civil Procedure Code of 1990.   Draf t Amendments to the Civil Procedure Code were 
shared with Working Party for review one year ago (September 2011). 
Question 128 
In what manner does the law of Afghanistan co mply with Article 48 of the TRIPS Agreement 
requiring that judicial authorities shall have the authority to order a party at whose request 
measures were taken and who has abused enfo rcement procedures to provide to a party 
wrongfully enjoined or restrained adequate co mpensation for the injury suffered because of 
such abuse?  WT/ACC/AFG/17 
 Page 77 
 
 
  Answer: 
With regard to copyright cases, amended Artic le 32 of the Copyright Law provides as follows: 
The court may order a claimant who ha s abused enforcement procedures and caused 
corrective provisions to be taken to prov ide to a party wrongfully enjoined or 
restrained adequate compensation for the resu lting injury. The court may also order 
the claimant to pay the defendant expenses, which may include appropriate attorney's 
fees. 
Question 129 
Paragraphs 161 to 165 (and WT/ACC/AFG/8 and IP legislation referred to in 
WT/ACC/AFG/5/Add.1):   
- Were the amendments contained in the IP laws voted already? If not, when are they 
going to be adopted? 
Answer: 
Amendments to the current IP laws  are anticipated to be adopted in  accordance with the Legislative 
Action Plan (WT/ACC/AFG/9/Rev.1), sec ond half of 2013/first half of 2014. 
Question 130 The criminal provisions contained in the Copyri ght law and the Trademark law mention fines 
and imprisonment but read also "either punish ments" or "any other punishments".  Taking 
into account that the WTO TRIPS Agreement on ly requires fines and imprisonment, what are 
the other punishments referred to? Any other sancti on should be explicitly mentioned in order 
to avoid any excessively broad interpretation. 
Answer: 
The reference, at Articles 31 and 34 of the amende d Copyright Law, to "either punishment" signifies 
that the preceding sanctions may be imposed either in tandem or as alternatives.  The amended Copyright Law does not reference "any other punishments." 
 
The criminal provisions of the Trademark Law, including draft amendments, provides in full: 
Persons found guilty of willful counterfeiting trademark and violation on a commercial scale 
in Afghanistan as provided for in paragraph 1 of th is article shall be sentenced to at least one 
but no more than three years' imprisonment, and sh all be fined an amount of at least 50,000 
but not more than 100,000 Afghanis. In both ca ses, the adjudicating court may order seizure, 
forfeiture and destruction of infringing goods, and of any materials or implements used to 
commit the violation. Sanctions imposed under this paragraph must be sufficient under the 
circumstances to provide a deterrent to future violations. 
There is no reference to other punishments, althou gh Article 33, which may apply to criminal cases, 
provides for confiscation, disgorgement of profits, an d closure of facilities used to commit violations.  
These remedies are specific rather than open-ended. WT/ACC/AFG/17 
Page 78  
 
  Question 131 
There are no provisions on fair and equitable procedures.  When does Afghanistan intend to 
include such indispensable safeguards in each of the laws?  
Answer: 
Rather than asserting that procedures for enforcemen t of intellectual property rights will be fair and 
equitable, the Civil Procedure Code of 1990 and th e subject-specific intellectual property laws follow 
this directive and set out detailed procedures that are,  in substance and practice, fair and equitable.  
In other words, the enforcement procedures implemen t Article 41(2) of the TRIPS Agreement, rather 
than simply restating its content. 
Question 132 
The provisions on civil procedures and remedies for patent infringements are insufficient.  Does 
Afghanistan foresee to insert similar provisions on enforcement as those contained in its Copyright and Trademark laws?  If so, when would Afghanistan adopt them? 
Answer: 
Unlike the Copyright and Trademark Laws, the existi ng Patent Law contains no enforcement section.  
TRIPS civil procedures and remedies have been grafted into the existing legislative structure, in order 
to respect the system which is familiar to th e local bench and bar, and to the respective 
implementation bodies.  In the case of the Patent  Law, amended language at Article 49 accounts for 
the adoption of coordinated procedures, enforcem ent measures and remedies for implementation of 
the Law.  Appropriate measures have been develope d for inclusion in the Civil Procedure Code of 
1990, and will be adopted during second half of 2013/first half of 2014. 
Question 133 Generally speaking, some provisions contained in the WTO TRIPS Agreement are not foreseen 
in the laws (for example: the right of informat ion, the security or equivalent assurance and the 
above-mentioned safeguards).  Other provisions such as the indemnification of the defendants 
are contained in some laws only (Copyright an d Trademark do not have such provisions).  
Therefore, there are too many differences be tween the IP laws.  Apart from criminal 
enforcement, the TRIPS Agreement enforcement provi sions apply equally to all the rights.  
However, the provisions contained in the Afghani IP  laws should be harmonised so there are no 
disparities between right holders.  It is to be  noted that the provisions used in the GIs and 
Industrial Designs laws are sim ilar to those in the WTO TRIPS Agreement.  It would be 
preferable that all the laws use this wordin g in order to reach a better approximation. 
Answer: 
The individual intellectual property laws and the Ci vil Procedure Code, taken together, do provide for 
the totality of procedures and remedi es required under the TRIPS Agreem ent.  As noted in response to 
the previous question, the variations in how these requirements are codified in individual laws are a 
function of differences in the structures of the or iginal laws.  The amended laws balance respect for 
existing organization of the laws with the need to incorporate TRIPS requirements.  WT/ACC/AFG/17 
 Page 79 
 
 
  VI. POLICIES AFFECTING TRADE IN SERVICES 
Question 134 Paragraph 172 of document JOB/ACC/28:  For fo reign citizens to qualify for a work permit, 
one of the conditions is that they have not completed retirement age provided in the Labour Law. 
- What are the compulsory and the voluntary ages of retirement stipulated in the Afghan 
Labour Law, and does the law apply to  all industries and services sectors? 
- Since it is common in most countries for many service professionals such as lawyers, 
architects, accountants and others, not to be  subject to stipulated ages of retirement, 
could Afghanistan consider for foreign citizens  applying for work permits replacing its 
domestic Labour Law restrictions with co nclusion-of-service or employment contracts 
signed direct with Afghan companies? 
Answer: 
According to the Afghan Labour Law, the retirement age of sixty-five is compulsory.  With the 
consent of the employer, employees can prolong employment for up to 5 years (on annual basis) after 
retirement provided they have not exceeded a total of 40 years of employment.  The extended period 
bears the same rights and responsibilities of the employ ee.  This applies to all industries and service 
providers, except scientists working at governme nt institution, research and higher education 
institutions and religious bodies, which ar e regulated by other legislation.   
There are no restrictions in the Afghan Labour Law that prevent retired people from working at any 
age after retirement on a contract basis with Afghan companies.  In the case of foreigners, the 
employer will still have to apply for work permit. 
Question 135 
The response to Question 152 of document WT/ACC/AFG/7 states that Afghanistan will 
provide to the Working Party information in th e format of document WT/ACC/5 "Information 
on Policy Measures Affecting Trade in Servic es" detailing all current measures related to 
market access, national treatment, and mo st-favoured nation treatment early 2012.  
Does Afghanistan still intend to provide this information? 
We thank Afghanistan for circulating document  WT/ACC/SPEC/AFG/1, the Initial Offer on 
Specific Commitments in Services. 
Answer: 
Since Afghanistan already provided its initial o ffer on services, there is no plan to prepare 
WT/ACC/5.   A copy of revised improved offer on services will be provided by early 
November 2012. 
VII.  TRANSPARENCY 
Question 136 We note the coverage of the issue of tran sparency in the Factual Summary (document 
JOB/ACC/28) and the response to Question 153 in document WT/ACC/AFG/7.  We seek 
addition of the following Members'  language to the Factual Summary: WT/ACC/AFG/17 
Page 80  
 
   186 bis.  Some Members stated that lack of legal requirements or practice for publication 
and comment for domestic laws, regulations,  and other measures of general application 
causes concern and should be addressed by Afghanistan.  Article X of the GATT 1994 
requires the prompt publication of laws, regulations, judicial decisions and 
administrative rulings of general application covering, inter alia, classification or the 
valuation of products for customs purposes; rates of duty, taxes or other charges; 
requirements, restrictions or prohibitions on imports or exports; or affecting the sale, 
distribution, transportation, insurance, wa rehousing inspection, exhibition, processing, 
or mixing of imported or exported goods.  The publication of these legal acts must be in 
such a manner as to enable governments a nd traders to become acquainted with them. 
This also includes agreements affecting int ernational trade policy which are in force 
between the government or a governmental agency of any other WTO Member.   
- 186 ter.  Members also noted that some WTO Agreements have additional transparency 
requirements, e.g., for Import Licensing, Cu stoms Valuation, TBT, SPS, and that good 
regulatory practice requires publication for review and comment and a method of 
taking the comments into consideration in finalizing the published laws, regulations and 
other normative acts.  They asked what st eps has Afghanistan had taken to implement 
these obligations?" 
Answer: 
Article 5 of Afghanistan's Law on Publication and Enforcement of Legislation requires publication of 
the following in the official gazette: 
 Official declarations of the Islamic Republic of Afghanistan which is intended for the public, 
laws, resolutions and other par liamentary legislative documents. 
 Decrees and other legislative documents of th e Islamic Republic of Afghanistan of legal 
nature. 
 Regulations, charters and resolutions of c ouncil of ministers which have legal nature. 
 Contracts, agreements, international protocol s which are signed by the Islamic Republic of 
Afghanistan and decrees relating ratification of these treaties. 
 Legislative documents which the Supreme Cour t based on the law are authorized to ratify 
them. 
 Other legislative acts, dissemination of whic h is required as per the law as well as 
advertisement of trademarks  and related documentation. 
This covers all types of laws and legal acts including those related customs, foreign trade, sanitary and 
phytosanitary measures, and other WTO agreements.  
The Law on Publication and Enforcement of Legislati on will be amended to requi re publication in the 
official gazette of ministerial level decisions  and orders which have  mandatory character. 
A copy of this law and draft amendments will be pr ovided to the WTO Secretariat in October 2012. 
It is also a common practice in Afghanistan that  ministries and state bodies publish on their websites 
respective laws and sublegal acts. 
Question 137 
Concerning the draft Amendments to the Law on  Publication and Enforcement of Legislation of 
1998 and the Regulation on Legislative Drafting Procedure of 1998:    WT/ACC/AFG/17 
 Page 81 
 
 
  Document WT/ACC/AFG/15 states that the ame ndments will provide that no normative legal 
act will come into force earlier than 30 days after official publication. 
- Please indicate in the Factual Summary where o fficial publication will take place, e.g., in 
the Official Gazette or other official publications or website of the Government? 
Answer: 
The official publication will take place in the official gazette. 
It is also a common practice for Afghan ministries and state bodies to publish on their websites related 
laws which are currently in force. 
Question 138 
Document WT/ACC/AFG/15 also states that Af ghanistan will publish draft laws, regulations 
and other legislative documents for consultation  and public comments prior to their adoption 
and ultimate official publication.  Please indi cate where these laws, regulations, and other 
legislative documents will be made available for re view and comment prior to finalization.  Will 
it be:  
- in the official publications or websites of the relevant ministries,  
- in a publication or website of the national parliament, or 
- in a new national publication and/or we bsite specially created for this purpose? 
Please describe how the Government will collect  these comments on the published drafts and 
take them into consideration in finalizing the laws or other legal instruments. 
Answer: 
Article 20 of Regulation on Drafting Procedure a nd Processing of Legal Acts will be amended to 
include the following: 
Except in emergency cases, all in itial draft Laws, regulations a nd other legislative documents 
of the Islamic Republic of Afghanistan shall be  published by ministries and state agencies for 
consultation and public comments prior to finalization. 
The publication of drafts may be posted thr ough the ministry or state agency website or 
journal and/or national publication (nationwide newspaper) and shall include a reasonable 
period for commenting (not less than 30 days).  It shall indicate the means through which comments may be submitted to the relevant ministry or state agency. 
Ministries and state agencies shall convene working group to discuss received comments 
including representatives of stakeholders who submitted comments.  WT/ACC/AFG/17 
Page 82  
 
  VIII. TRADE AGREEMENTS  
Question 139 Paragraphs 195 to 196 of the Factual Summary should be moved to the "Transit" section.  
Answer: 
Afghanistan agrees to this suggestion.  
_______________ 
 
  WT/ACC/AFG/17 
 Page 83 
 
 
   
Attachment 1 – Banned and Restricted Pesticides 
 
Abbreviations: 
 PIC : As per Prior Informed Consent Pr ocedure List (Rotterdam Convention) 
 S          : As per Stockholm Convention List 
 M       : As per Montreal Protocol 
 I         : As per Indian decision 
 B : Banned 
 RU : Restricted for Use 
 RR : Registration Refused 
 W : Withdrawn 
 
The list covers 82 items with some fa lling under more than one category: 
 Banned by a Party of Rotterdam and thus on PIC Procedure List: 29  
 Banned as per Stockholm Convention List: 9  
 Indian Decision (B/RU/RR/W): 69  
 
SI # Formulation Status Authority 
1 2,4, 5-T B, RR B (PIC), RR (I) 
2 Aldicarb B I 
3 Aldrin B S, PIC, I 
4 Aluminium Phosphide RU I 
5 Ammonium Sulphamate RR I 
6 Azinphos Ethyl RR I 
7 Azinohos Methyl RR I 
8 Formulation B PIC 
9 Benzene Hexachloride B S, PIC, I 
10 Binapacryl B, RR B (PIC), RR (I) 
11 Calcium Arsenate RR I 
12 Calcium Cyanide B I 
13 Captafol 80%Powder B, BU B (BPIC), BU(I) 
14 Carbofuron 50%SP BIMU I 
15 Carbophenothion RR I 
16 Chinomethionate(Morestan) RR I 
17 Chlordane B S, PIC, I 
18 Chlordimeform B PIC 
19 Chlorobenzilate B PIC, I 
20 Clbromochloropropane B I 
21 Copper Acetoarsenite B I 
22 Dalapon W I 
23 DDT B, RU B (S, PIC), RU 
24 Dialdrin B S, PIC, I 
25 Diazinon RU I (Agric) 
26 Dicrotophos RR I 
27 Dinoseb B PIC 
28 DNOC and its salts B PIC 
29 Endosulfan RU I 
30 Endrin B S, I 
31 EPM RR I 
32 Ethyl Mercury Chloride B I 
33 Ethyl Parathion B I 
34 Ethylene Dibromide (EDB) B PIC, I 
35 Ethylene Dichloride B PIC WT/ACC/AFG/17 
Page 84  
 
  SI # Formulation Status Authority 
36 Ethylene Oxide B PIC 
37 Fenitrothion RU I 
38 Fenthion RU I (Agric) 
39 Fentin Acetate RR I 
40 Fentin Hydroxide RR I 
41 Ferbam W I 
42 Fluoroacetamide B PIC 
43 Formothion W I 
44 Formulation of Parathion B PIC 
45 HCH B PIC 
46 Heptachlor B S, PIC, I 
47 Lead Arsenate RR I 
48 Leptophos (Phosvel) RR I 
49 Lindane B, RU B (S, PIC), RU 
50 Maleic Hydrazide B I 
51 Menazone B I 
52 Mephosfolan RR I 
53 Mercury Compounds B PIC 
54 Methamidophos form B PIC 
55 Methomyl 12.5% L B I 
56 Methomyl 24% L B I 
57 Chloride (MEMC) RU I 
58 Methyl Bromide B, RU B (M), RU (I) 
59 Methyl Parathion B, RU B (PIC), RU (I) 
60 Metoxuron W I 
61 Mevinphos (Phosdrin) RR I 
62 Formulation B, RU B (PIC), RU (I) 
63 Nickel Chloride W I 
64 Nicotin Sulfate BU I 
65 Nitrofen B I 
66 Paradichlorobenzene (PDCB) W I 
67 Paraquat Dinethyl Sulphate B I 
68 Parathion B PIC 
69 Pentachloro Nitrobenzene B I 
70 Pentachlorophenol B PIC, I 
71 Phenyl Mercury Acetate B I 
72 Phosphamidon 85% SL B PIC, I 
73 Simazine W I 
74 Sodium Cyanide RU I 
75 Sodium Cyanide RU I 
76 Sodium Methane Arsenate B I 
77 TCA (Trichloro acetic acid) B I 
78 Tetradifon B I 
79 Thiodemeton / Disulfoton RR I 
80 Toxaphene B S, PIC, I 
81 Vamidothion RR I 
82 Warfarin W I 
  WT/ACC/AFG/17 
 Page 85 
 
 
   
Attachment 2 – Goods Subject to Export Duties 
 
HS Description Export 
Duties 
25.01 Salt (including table salt and denatured salt) and pure sodium chloride, whether or 
not in aqueous solution or containing added anti-caking or free-flowing agents; sea 
water.  
2501.0010 -Table salt and denatured salt 40% 
2501.0090 -Other 5% 
2502.0000 Unroasted iron pyrites. 5% 
2503.0000 Sulphur of all kinds, other than sublimed sulphur, precipitated sulphur and 
colloidal sulphur. 5% 
25.04 Natural graphite.  
2504.1000 -In powder or in flakes 5% 
2504.9000 -Other 5% 
25.05 Natural sands of all kinds, whether or not coloured, other than metalbearing sands 
of Chapter 26.  
2505.1000 -Silica sands and quartz sands  5% 
2505.9000 -Other 5% 
25.06 Quartz (other than natural sands); qu artzite, whether or not roughly trimmed or 
merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape.  
2506.1000 -Quartz 5% 
2506.2000 -Quartzite 5% 
2507.0000 Kaolin and other kaolinic clays, whether or not calcined. 5% 
25.08 Other clays (not including expanded clays of heading 68.06), andalusite, kyanite 
and sillimanite, whether or not calcined; mullite; chamotte or dinas earths.  
2508.1000 -Bentonite 2.5% 
2508.3000 -Fire-clay 2.5% 
2508.4000 -Other clays 2.5% 
2508.5000 -Andalusite, kyanite and sillimanite 2.5% 
2508.6000 -Mullite 2.5% 
2508.7000 -Chamotte or dinas earths 2.5% 
2509.0000 Chalk. 5% 
25.10 Natural calcium phosphates, natural aluminium calcium phosphates and 
phosphatic chalk.  
2510.1000 -Unground 5% 
2510.2000 -Ground 5% 
25.11 Natural barium sulphate (barytes); natural barium carbonate (witherite), whether 
or not calcined, other than barium oxide of heading 28.16.  
2511.1000 -Natural barium sulphate (barytes) 5% 
2511.2000 -Natural barium  carbonate (witherite) 5% 
2512.0000 Siliceous fossil meals (for example, kieselguhr, tripo lite and diatomite) and similar 
siliceous earths, whether or not calcined, of an apparent specific gravity of 1 or 
less. 5% 
25.13 Pumice stone; emery; natural corundum, natural garnet and other natural 
abrasives, whether or not heat-treated.  
2513.1000 -Pumice stone 5% 
2513.2000 -Emery, natural corundum, natural garnet and other natural abrasives 5% WT/ACC/AFG/17 
Page 86  
 
  HS Description Export 
Duties 
2514.0000 Slate, whether or not roughly trimmed or merely cut, by sawing or otherwise, into 
blocks or slabs of a rectangular (including square) shape. 5% 
25.15 Marble, travertine, ecaussine and othe r calcareous monumental or building stone 
of an apparent specific gravity of 2.5 or more, and alabaster,  
  -Marble and travertine :  
2515.1100 --Crude or roughly trimmed 20% 
2515.1200 --Merely cut, by sawing or otherwise, into blocks or slabs of a rectangular 
(including square) shape 20% 
2515.2000 -Ecaussine and other calcareous monumental or building stone; alabaster 20% 
25.16 Granite, porphyry, basalt, sandstone and other monumental or building stone, 
whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks 
or slabs of a rectangular (including square) shape.  
  -Granite :  
2516.1100 --Crude or roughly trimmed 5% 
2516.1200 --Merely cut, by sawing or otherwise, into blocks or slabs of a rectangular 
(including square) shape 5% 
2516.2000 -Sandstone 5% 
2516.9000 -Other monumental or building stone 5% 
25.17 Pebbles, gravel, broken or crushed st one, of a kind commonly used for concrete 
aggregates, for road metalling or for railway or other ballast,   
2517.1000 -Pebbles, gravel, broken or crushed stone, of a kind commonly used for concrete 
aggregates, for road metalling or for railway or other ballast, shingle and flint, whether or not heat-treated 5% 
2517.2000  Macadam of sl ag, dross or similar industrial wast e, whether or no t incorporating 
the materials cited in subheading 2517.10 5% 
2517.3000 -Tarred macadam 5% 
  -Granules, chippings and powder, of stones of heading 25.15 or 25.16, whether or 
not heat-treated :  
2517.4100 --Of marble 5% 
2517.4900 --Other 5% 
25.18 Dolomite, whether or not calcined or sintered, including dolomite roughly 
trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a 
rectangular (including square) shape; dolomite ramming mix.  
2518.1000 -Dolomite, not calcined or sintered 10% 
2518.2000 -Calcined or sintered dolomite 10% 
2518.3000 -Dolomite ramming mix 10% 
25.19 Natural magnesium carbonate (magnesite); fused magnesia; dead-burned 
(sintered) magnesia, whether or not containing small quantities of other oxides 
added before sintering; other magnesium oxide, whether or not pure.  
2519.1000 -Natural magnesium carbonate (magnesite) 1% 
2519.9000 -Other 5% 
25.20 Gypsum; anhydrite; plasters (consisting of calcined gypsum or calcium sulphate) 
whether or not coloured, with or w ithout small quantities of accelerators or 
retarders.  
2520.1000 -Gypsum; anhydrite 25% 
2520.2000 -Plasters 25%  WT/ACC/AFG/17 
 Page 87 
 
 
  HS Description Export 
Duties 
2521.0000 Limestone flux; limestone and other calcareous stone, of a kind used for the 
manufacture of lime or cement. 5% 
25.22 Quicklime, slaked lime and hydraulic lime, other than calcium oxide and 
hydroxide of heading 28.25.  
2522.1000 -Quicklime 25% 
2522.2000 -Slaked lime 25% 
2522.3000 -Hydraulic lime 25% 
25.23 Portland cement, aluminous cement, sl ag cement, super sulphate cement and 
similar hydraulic cements, whether or not coloured or in the form of clinkers.  
2523.1000 -Cement clinkers 5% 
  -Portland cement :  
2523.2100 --White cement, whether or not artificially coloured 5% 
2523.2900 --Other 5% 
2523.3000 -Aluminous cement 5% 
2523.9000 -Other hydraulic cements 5% 
25.24 Asbestos.  
2524.1000 -Crocidolite 5% 
2524.9000 -Other 5% 
25.25 Mica, including splitting; mica waste.  
2525.1000 -Crude mica and mica rifted into sheets or splittings 10% 
2525.2000 -Mica powder 10% 
2525.3000 -Mica waste 10% 
25.26 Natural steatite, whether or not roughly trimmed or merely cut, by sawing or 
otherwise, into blocks or slabs of a rectangular (including square) shape; talc.  
2526.1000 -Not crushed, not powdered 5% 
2526.2000 -Crushed or powdered 5% 
[25.27] (to be assigned)  
2528.0000 Natural borates and concentrates thereof (whether or not calcined), but not 
including borates separated from natural brine; natural boric acid containing not 
more than 85 % of H3BO3 ca lculated on the dry weight. 2.5% 
25.29 Feldspar; leucite, nepheline and nepheline syenite; fluorspar.  
2529.1000 -Feldspar 5% 
  -Fluorspar :  
2529.2100 --Containing by weight 97 % or less of calcium fluoride 5% 
2529.2200 --Containing by weight more than 97 % of calcium fluoride 5% 
2529.3000 -Leucite; nepheline and nepheline syenite 5% 
25.30 Mineral substances not else where specified or included.  
2530.1000 -Vermiculite, perlite and chlorites, unexpanded 5% 
2530.2000 -Kieserite, epsomite (natural magnesium sulphates) 5% 
2530.9000 -Other 5% 
26.01 Iron ores and concentrates, including roasted iron pyrites.  
  -Iron ores and concentrates, other than roasted iron pyrites:   
2601.1100 --Non-agglomerated 2.5% 
2601.1200 --Agglomerated 2.5% 
2601.2000 -Roasted iron pyrites 2.5% WT/ACC/AFG/17 
Page 88  
 
  HS Description Export 
Duties 
2602.0000 Manganese ores and concentrates, including ferruginous manganese ores and 
concentrates with a manganese content of 20 % or more, calculated on the dry weight. 2.5% 
2603.0000 Copper ores and concentrates. 2.5% 
2604.0000 Nickel ores and concentrates. 2.5% 
2605.0000 Cobalt ores and concentrates. 2.5% 
2606.0000 Aluminium ores and concentrates. 2.5% 
2607.0000 Lead ores and concentrates. 2.5% 
2608.0000 Zinc ores and concentrates. 2.5% 
2609.0000 Tin ores and concentrates. 2.5% 
2610.0000 Chromium ores and concentrates. 2.5% 
2611.0000 Tungsten ores and concentrates. 2.5% 
26.12 Uranium or thorium ores and concentrates.  
2612.1000 -Uranium ores and concentrates 2.5% 
2612.2000 -Thorium ores and concentrates 2.5% 
26.13 Molybdenum ores and concentrates.  
2613.1000 -Roasted 2.5% 
2613.9000 -Other 2.5% 
2614.0000 Titanium ores and concentrates. 2.5% 
26.15 Niobium, tantalum, vanadium or zirconium ores and concentrates.  
2615.1000 -Zirconium ores and concentrates 2.5% 
2615.9000 -Other 2.5% 
26.16 Precious metal ores and concentrates.  
2616.1000 -Silver ores and concentrates 2.5% 
2616.9000 -Other 2.5% 
26.17 Other ores and concentrates.  
2617.1000 -Antimony ores and concentrates 2.5% 
2617.9000 -Other 2.5% 
2618.0000 Granulated slag (slag sand) from the manufacture of iron or steel. 2.5% 
2619.0000 Slag, dross (other than granulated slag), scalings and other waste from the 
manufacture of iron or steel. 2.5% 
26.20 Slag, ash and residues (other than  from the manufacture of iron or steel), 
containing arsenic, metals or their compounds.  
  -Containing mainly zinc :  
2620.1100 --Hard zinc spelter 2.5% 
2620.1900 --Other 2.5% 
  -Containing mainly lead :  
2620.2100 --Leaded gasoline sludges and leaded anti-knock compound sludges 2.5% 
2620.2900 --Other 2.5% 
2620.3000 -Containing mainly copper 2.5% 
2620.4000 -Containing mainly aluminium 2.5% 
2620.6000 -Containing arsenic, mercury, thallium or their mixtures, of a kind used for the 
extraction of arsenic or those metals or  for the manufacture of their chemical 
compounds 2.5% 
  -Other :   WT/ACC/AFG/17 
 Page 89 
 
 
  HS Description Export 
Duties 
2620.9100 --Containing antimony, beryllium, cadmium, chromium or their mixtures 2.5% 
2620.9900 --Other 2.5% 
26.21 Other slag and ash, including seaweed ash (kelp); ash and residues from the 
incineration of municipal waste.  
2621.1000 -Ash and residues from the incineration of municipal waste 2.5% 
2621.9000 -Other 2.5% 
27.01 Coal; briquettes, ovoids and similar solid fuels manufactured from coal.  
   Coal, whether or not pulverised, but not agglomerated :  
2701.1100 --Anthracite 2.5% 
2701.1200 --Bituminous coal 2.5% 
2701.1900 --Other coal 2.5% 
2701.2000 -Briquettes, ovoids and similar solid fuels manufactured from coal 5% 
27.02 Lignite, whether or not ag glomerated, excluding jet.  
2702.1000 -Lignite, whether or not pulverised, but not agglomerated 2.5% 
2702.2000 -Agglomerated lignite 5% 
2703.0000 Peat (including peat litter), whether or not agglomerated. 5% 
2704.0000 Coke and semi coke of coal, of lignite or of peat, whether or not agglomerated; 
retort carbon. 5% 
2705.0000 Coal gas, water gas, producer gas and similar gases, other than petroleum gases 
and other gaseous hydrocarbons. 5% 
2706.0000 Tar distilled from coal, from lignite or from peat, and other mineral tars, whether 
or not dehydrated or partially distilled, including reconstituted tars. 5% 
27.07 Oils and other products of the distilla tion of high temperature coal tar; similar 
products in which the weight of the arom atic constituents exceeds that of the non-
aromatic constituents.  
2707.1000 -Benzol (benzene) 5% 
2707.2000 -Toluol (toluene) 5% 
2707.3000 -Xylol (xylenes) 5% 
2707.4000 -Naphthalene 5% 
2707.5000 -Other aromatic hydrocarbon mixtures of which 65 % or more by volume 
(including losses) distils at 25 0 °C by the ASTM D 86 method 5% 
  -Other :  
2707.9100 --Creosote oils 5% 
2707.9900 --Other 5% 
27.08 Pitch and pitch coke, obtained from coal tar or from other mineral tars.  
2708.1000 -Pitch 5% 
2708.2000 -Pitch coke 5% 
2709.0000 Petroleum oils and oils obtained from bituminous minerals, crude. 2.5% 
27.10 Petroleum oils and oils obtained from bituminous minerals, other than crude; 
preparations not elsewhere specified or included, containing by weight 70% or 
more of petroleum oils or of oils obtained from bituminous minerals, these oils 
being the basic constituents of the preparations; waste oils.  
  - Petroleum oils and oils obtained from bituminous minerals (other than crude) 
and preparations not elsewhere specified   or included, containing by weight 70% 
or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than those containing  WT/ACC/AFG/17 
Page 90  
 
  HS Description Export 
Duties 
biodisel and other than  waste oils : 
  --Light oils and preparations  
2710.1210  ---- Gasoline for Aviation 12% 
2710.1220 ---- Gasoline for Vehicule 12% 
2710.1290 ---- Other 12% 
  -- Other  
2710.1910 ---- Gasoil (Diesel) 12% 
2710.1920 ---- Jet fuel (aviation Jet oil) 12% 
2710.1930 ---- Kerosene 8% 
2710.1940 ---- Lubricants oil  8% 
2710.1950 ---- Grease  8% 
2710.1990 ---- Other 8% 
2710.2000 - Petroleum oils and oils obtained from bituminous minerals (other than crude) 
and preparations not elsewhere specified   or included, containing by weight 70 % or  12% 
  -Waste oils :  
2710.9100 --Containing polychlorinated biphenyls (PCBs), polychlorinated terphenyls 
(PCTs) or polybrominated biphenyls (PBBs) 8% 
2710.9900 --Other 8% 
27.11 Petroleum gases and other gaseous hydrocarbons.  
  -Liquefied :  
2711.1100 --Natural gas 2.5% 
2711.1200 --Propane 2.5% 
2711.1300 --Butanes 2.5% 
2711.1400 --Ethylene, propylene, butylene et butadiene 2.5% 
2711.1900 --Other 2.5% 
  -In gaseous state :  
2711.2100 --Natural gas 2.5% 
2711.2900 --Other 2.5% 
27.12 Petroleum jelly; paraffin wax, mi cro-crystalline petroleum wax, slack wax, 
ozokerite, lignite wax, peat wax, othe r mineral waxes, and similar products 
obtained by synthesis or by other processes, whether or not coloured.  
2712.1000 -Petroleum jelly 1% 
2712.2000 -Paraffin wax containing by weight less than 0.75 % of oil 5% 
2712.9000 -Other 5% 
27.13 Petroleum coke, petroleum bitumen and othe r residues of petroleum oils or of oils 
obtained from bituminous minerals.  
  -Petroleum coke :  
2713.1100 --Not calcined 5% 
2713.1200 --Calcined 5% 
2713.2000 -Petroleum bitumen 5% 
2713.9000 -Other residues of petroleum oils or of oils obtained from bituminous minerals 5% 
27.14 Bitumen and asphalt, natural; bituminous  or oil shale and tar sands; asphaltites and 
asphaltic rocks.  
2714.1000 -Bituminous or oil shale and tar sands 2.5%  WT/ACC/AFG/17 
 Page 91 
 
 
  HS Description Export 
Duties 
2714.9000 -Other 2.5% 
2715.0000 Bituminous mixtures based on natura l asphalt, on natural bitumen, on petroleum 
bitumen, on mineral tar or on mineral tar pitch (for example, bituminous mastics, 
cut-backs). 2.5% 
2716.0000 Electrical energy. (optional heading) 2.5% 
68.02 Worked monumental or building stone (e xcept slate) and articles thereof, other 
than goods of heading 68.01; mosaic cubes and the like, of natural stone 
(including slate), whether or not on a backing; artificially coloured granules, 
chippings and powder, of natural stone (including slate).  
6802.1000 -Tiles, cubes and similar articles, whether or not rectangular (including square), 
the largest surface area of which is capable of being enclosed in a square the side 
of which is less than 7 cm; artificially coloured granules, ch ippings and powder 16% 
  -Other monumental or building stone and articles thereof, simply cut or sawn, with 
a flat or even surface :  
6802.2100 -- Marble, travertine and alabaster 20% 
6802.2300 -- Granite 16% 
6802.2900 -- Other stone 16% 
  -Other :  
6802.9100 -- Marble, travertine and alabaster 20% 
6802.9200 -- Other calcareous stone 16% 
6802.9300 -- Granite 16% 
6802.9900 -- Other stone 16% 
6803.0000 Worked slate and articles of slate or of agglomerated slate. 16% 
71.01 Pearls, natural or cultured, whether or not worked or graded but not strung, 
mounted or set; pearls, natural or cultured, temporarily strung for convenience of transport.  
7101.1000 -Natural pearls 10% 
  -Cultured pearls :  
7101.2100 --Unworked 10% 
7101.2200 --Worked 10% 
71.02 Diamonds, whether or not worked, but not mounted or set.  
7102.1000 -Unsorted 5% 
  -Industrial :  
7102.2100 --Unworked or simply sawn, cleaved or bruted 5% 
7102.2900 --Other 5% 
  -Non-industrial :  
7102.3100 --Unworked or simply sawn, cleaved or bruted 5% 
7102.3900 --Other 5% 
71.03 Precious stones (other than diamonds) and semi-precious stones, whether or not 
worked or graded but not strung, mounted or set; ungraded precious stones (other 
than diamonds) and semi-precious stones, temporarily strung for convenience of 
transport.  
7103.1000 -Unworked or simply sawn or roughly shaped 5% 
  -Otherwise worked :  
7103.9100 --Rubies, sapphires and emeralds 5% 
7103.9900 --Other 5% WT/ACC/AFG/17 
Page 92  
 
  HS Description Export 
Duties 
71.04 Synthetic or reconstructed precious or semi-precious stones, whether or not 
worked or graded but not strung, mounted or set; ungraded synthetic or reconstructed precious or semi-precious stones, temporarily strung for 
convenience of transport.  
7104.1000 -Piezo-electric quartz 5% 
7104.2000 -Other, unworked or simply sawn or roughly shaped 5% 
7104.9000 -Other 5% 
71.05 Dust and powder of natural or synthetic precious or semi-precious stones.  
7105.1000 -Of diamonds 2.5% 
7105.9000 -Other 2.5% 
  II.- PRECIOUS METALS AND META LS CLAD WITH PRECIOUS METAL  
71.06 Silver (including silver plated with gold or platinum), unwrought or in semi-
manufactured forms, or in powder form.  
7106.1000 -Powder 2.5% 
  -Other :  
7106.9100 --Unwrought 2.5% 
7106.9200 --Semi-manufactured 2.5% 
7107.0000 Base metals clad with silver, not further worked than semi-manufactured. 2.5% 
71.08 Gold (including gold plated with platinum) unwrought or in semi-manufactured 
forms, or in powder form.  
  -Non-monetary :  
7108.1100 --Powder 1% 
7108.1200 --Other unwrought forms 1% 
7108.1300 --Other semi-manufactured forms 2.5% 
7108.2000 -Monetary 5% 
7109.0000 Base metals or silver, clad with gold, not further worked than semi-manufactured. 5% 
71.10 Platinum, unwrought or in semi-manufactured forms, or in powder form.  
  -Platinum :  
7110.1100 --Unwrought or in powder form 5% 
7110.1900 --Other 5% 
  -Palladium :  
7110.2100 --Unwrought or in powder form 5% 
7110.2900 --Other 5% 
  -Rhodium :  
7110.3100 --Unwrought or in powder form 5% 
7110.3900 --Other 5% 
  -Iridium, osmium and ruthenium :  
7110.4100 --Unwrought or in powder form 5% 
7110.4900 --Other 5% 
7111.0000 Base metals, silver or gold, clad with platinum, not further worked than semi-
manufactured. 5% 
71.12 Waste and scrap of precious metal or of metal clad with precious metal; other 
waste and scrap containing precious metal or precious metal compounds, of a kind 
used principally for the recovery of precious metal.  
7112.3000 -Ash containing precious metal or precious metal compounds 5%  WT/ACC/AFG/17 
 Page 93 
 
 
  HS Description Export 
Duties 
  -Other :  
7112.9100 --Of gold, including metal clad with gold but excluding sweepings containing 
other precious metals 5% 
7112.9200 --Of platinum, including metal clad with platinum but excluding sweepings 
containing other precious metals 5% 
7112.9900 --Other 5% 
  III.- JEWELLERY, GOLDSMITHS' AND SILVERSMITHS' WARES AND 
OTHER ARTICLES  
71.13 Articles of jewellery and parts thereof,  of precious metal or of metal clad with 
precious metal.  
  -Of precious metal whether or not pl ated or clad with precious metal :  
7113.1100 --Of silver, whether or not plated or clad with other precious metal 10% 
7113.1900 --Of other precious metal, whether or not plated or clad with precious metal 1% 
7113.2000 -Of base metal clad with precious metal 10% 
71.14 Articles of goldsmiths' or silversmiths'  wares and parts thereof, of precious metal 
or of metal clad with precious  metal.  
  -Of precious metal whether or not pl ated or clad with precious metal :  
7114.1100 --Of silver, whether or not plated or clad with other precious metal 10% 
7114.1900 --Of other precious metal, whether or not plated or clad with precious metal 1% 
7114.2000 -Of base metal clad with precious metal 10% 
71.15 Other articles of precious metal or of metal clad with precious metal.  
7115.1000 -Catalysts in the form of wire cloth or grill, of platinum 2.5% 
7115.9000 -Other 2.5% 
71.16 Articles of natural or cultured pearls, precious or semi-precious stones (natural, 
synthetic or reconstructed).  
7116.1000 -Of natural or cultured pearls 10% 
7116.2000 -Of precious or semi-precious stones (natural, synthetic or reconstructed) 10% 
71.17 Imitation jewellery.  
  -Of base metal, whether or not plated with precious metal :  
7117.1100 --Cuff-links and studs 10% 
7117.1900 --Other 10% 
7117.9000 -Other 10% 
71.18 Coin.  
7118.1000 -Coin (other than gold coin), not being legal tender 5% 
7118.9000 -Other 5% 
72.04 Ferrous waste and scrap; remelting scrap ingots of iron or steel.  
7204.1000 -Waste and scrap of cast iron 5% 
  -Waste and scrap of alloy steel :  
7204.2100 --Of stainless steel 5% 
7204.2900 --Other 5% 
7204.3000 -Waste and scrap of tinned iron or steel 5% 
  -Other waste and scrap :  
7204.4100 --Turnings, shavings, chips, milling waste, sawdust, filings, trimmings and 
stampings, whether or not in bundles 5% 
7204.4900 --Other 5% WT/ACC/AFG/17 
Page 94  
 
  HS Description Export 
Duties 
7204.5000 -Remelting scrap ingots 5% 
7404.0000 Copper waste and scrap. 5% 
7503.0000 Nickel waste and scrap. 5% 
7602.0000 Aluminium waste and scrap. 5% 
7802.0000 Lead waste and scrap. 5% 
7902.0000 Zinc waste and scrap. 5% 
8002.0000 Tin waste and scrap. 5% 
81.01 Tungsten (wolfram) and articles thereof, including waste and scrap.  
8101.9700 --Waste and scrap 5% 
81.02 Molybdenum and articles thereof, including waste and scrap.  
8102.9700 --Waste and scrap 5% 
81.03 Tantalum and articles thereo f, including waste and scrap.  
8103.3000 -Waste and scrap 5% 
81.04 Magnesium and articles thereof, including waste and scrap.  
8104.2000 -Waste and scrap 5% 
81.05 Cobalt mattes and other intermediate products of cobalt metallurgy; cobalt and 
articles thereof, including waste and scrap.  
8105.3000 -Waste and scrap 5% 
81.07 Cadmium and articles thereof, including waste and scrap.  
8107.3000 -Waste and scrap 5% 
81.08 Titanium and articles thereof, including waste and scrap.  
8108.3000  -Waste and scrap 5% 
81.09 Zirconium and articles thereo f, including waste and scrap.  
8109.3000 -Waste and scrap 5% 
81.10 Antimony and articles thereof, including waste and scrap.  
8110.2000 -Waste and scrap 5% 
81.12 Beryllium, chromium, germanium, vanadium, gallium, hafnium, indium, niobium 
(columbium), rhenium and thallium, and articles of these metals, including waste 
and scrap.  
 -Beryllium  
8112.1300 --Waste and scrap 5% 
 -Chromium  
8112.2200 --Waste and scrap 5% 
 -Thallium  
8112.5200 --Waste and scrap 5% 
 
  
__________