G/STR/N/16/AFG  
 
9 August  2016 
(16-4253) Page: 1/4 
Working Party on State Trading Enterprises  Original: English  
 
STATE TRADING  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVII:4(A) OF T HE 
GATT 1994 AND PARAGR APH 1 OF THE UNDERST ANDING ON  
THE INTERPRETATION O F ARTICLE XVII  
AFGHANISTAN  
The f ollowing communication, dated 29  July 2016, is being circulated at the reques t of the 
Delegation of Afghanistan . 
 
_______________  
 
 
I.  ENUMERAT ION OF STATE TRADING  ENTERPRISES  
A.  IDENTIFICATION OF STATE TRADING ENTERPRISES  
 
Da Afghanistan Brishna Shirkat (DABS) has monopoly rights for operating all public electricity 
transmission  and distribution lines. DABS is a government owned corporation dealing with 
electricity generation, imports, transmission and distribution in Afghanistan.  
 
B.  DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) ENCOMPASSED 
IN PRODUCT DESCRI PTION)  
 
Product affected: Electricity (HS 2716.00)  
 
II.  REASON AND PURPOSE  
A.  REASON OR PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE  
 
DABS is maintained in order to provide stable and secure supply of electricity and is a natural 
monopoly operating power transmission and distribution lines.  
 
B.  SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL RIGHTS 
OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF STATUTORY OR 
CONSTITUTIONAL POWERS  
 
The Afghanistan Ele ctricity Company Charter (published in the O fficial Gazette No 945 of 
4 May 2008) is the main document regulating DABS activities.  
 
III.  DESCRIPTION OF THE F UNCTIONING OF THE ST ATE TRADING ENTERPRI SE 
DABS is involved in imports of electricity. No exports have been conducted so far, due to 
insufficient power generation in country.  
 
There is no formal prohibition for imports and exports by private traders. Afghanistan 's long -term 
power sector strategy envisages private sector involvement in this sector. No p rocedures and 
mechanism are developed for private participation in the energy imports.  G/STR/N/16/AFG  
 
- 2 - 
 
   
DABS conducts annual needs forecasts for imports of electricity based on expected increased 
consumption, technical distribution capacities and breaks  them down by mont hly needs. Based on 
these forecasts power purchase agreements are negotiated with potential suppliers of electricity.  
 
DABS sets the tariffs for electricity subject to approval by the following four ministers: Minister of 
Finance, Minister of Economy, Mini ster of Rural Development, and Minister of Energy and Water. 
The tariff levels are established taking into account the cost of generation and/or import as well as 
transmission and distribution costs.  
 
Depending on the costs of generation and transmission, differe nt rates are applied for diesel -
generated, hydro -power–generated , and imported electricity.  Rates also vary depend ing on the 
types of consumers. Due to social security considerations, cheaper rates are applied for residential 
consumers. Higher rates  are applied for commercial consumers. In order to stimulate energy 
saving behaviour, step -based rates apply for residential users where rates escalate with the 
increase of consumption. The tariff rates vary also from one region to another. There are 
76 regions in Afghanistan.  
 
Power purchase agreements for imports are negotiated by a team formed by the Afghan 
Government and include representatives of Ministry of Finance, Ministry of Energy and Water, 
Ministr y of Foreign Affairs and DABS. Power purchase ag reements are negotiated on annual basis 
or multi -year basis.  
 
DABS has conducted 100 % of all imports of electricity into Afghanistan. Data on production and 
imports of electricity for the last three years is provided in the table below.  
 
 
 
IV.  STATISTICAL INFORMAT ION  
See Annex  (Table I  "Imports"  and Table  III "Domestic Activities" ) 
 
V.  REASON WHY NO  FOREIGN TRADE HAS TA KEN PLACE  
No exports were conducted due to insufficient generation capacity in Afghanistan to supply 
domestic market demand.  
 
VI.  ADDITIONAL INFORMATI ON 
According to the National Energy S ector Strategy, the reform agenda includes proposals for the 
unbundling of electricity generation, transmission and distribution. Longer -term proposals include 
creating conditions for a competitive environment in the electricity sector.  
 
 Electricity  2013  2014  2015  
Total imports in kWh  3,436,438,172  3,796,767,995  3,787,206,224  
Share of imports by 
DABS  100%  100%  100%  
Domestic production in 
kWh 1,113,921,890  1,077,725,563  1,041,146,019   
  G/STR/N/16/AFG  
 
- 3 - ANNEX  
TABLE I  
STATE TRADING: DA AFGH ANISTAN BRISHNA SHER KAT (DABS)  
STATISTICAL INFORMATION, IMPORTS (Years 2013 -2015)  
Description of 
product(s)  
(including HS 
number(s))  Total quantity 
imported1 (kWh)  Quantity imported 
by state trading 
enterprise1 (kWh)  Average import pric e 
(Afs/kWh)  Average 
representative 
domestic sales price  
(Afs/kWh)  Mark -up2 National production  
(kWh)  
1 2 3 4 5 6 7 
Electricity HS 2716.00        
2015 3,787,206,224  3,787,206,224  2.81 3.19  1,041,146,019  
2014 3,796,767,995  3,796,767,995  2.62 3.10  1,077 ,725,563  
2013 3,436,438,172  3,436,438,172  2.06 2.82  1,113,921,890  
 
 
 
 
                                                
1 In cases where no imports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire . 
2 Members may report either  under columns 4 and 5 or under column 6.   
  G/STR/N/16/AFG  
 
- 4 -  
TABLE III  
STATE TRADING: DA AF GHANISTAN BRISHNA SH ERKAT (DABS)  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES (Years 2013 -2015)  
Description of product(s)  
(including HS number(s))  Dome stic purchases by state 
trading enterprise  (kWh)  National production  
(kWh)  Domestic sales by state 
trading enterprise  (kWh)  National consumption  
(kWh)  
1 2 3 4 5 
Electricity HS 2716.00      
2015 0 1,041,146,019  4,828,352,243  4,828,352,243  
2014 0 1,077,72 5,563  4,874,493,558  4,874,493,558  
2013 0 1,113,921,890  4,550,360,062  4,550,360,062  
 
 
 
 
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