RESTRICTED  
  
WT/ACC/AFG/27  
 
7 June 2013  
(13-2985)  Page: 1/47  
Working Party on the Accession of 
the Islamic Republic of Afghanistan  Original: English  
  
  ACCESSION OF AFGHANISTAN 
ADDITIONAL QUESTIONS AND REPLIES 
 The following submission, dated 6 June 2013, is being circulated at the request of the 
Delegation of the Islamic Republic of Afghanistan. 
 
_______________ WT/ACC/AFG/27 
 
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  TABLE OF CONTENTS 
II. ECONOMIC POLICIES .............................................................................................. 3  
-  Monetary and Fi scal Policy ...................................................................................... 3  
-  Investment Regime ................................................................................................. 5  
-  State Ownership and Privatizatio n, State-trading Entities ...................................... 8  
-  Pricing Poli cies ...................................................................................................... 10  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AN D TRADE IN SE RVICES .......................................... 10  
IV. POLICIES AFFECTING TRADE IN GOODS ............................................................... 13  
-  Trading Rights and Registration Requ irements for Engaging in Importing ............ 13  
A. IMPORT REGU LATIONS ......................................................................................... 21  
-  Ordinary Customs Duties ....................................................................................... 21  
-  Other Duties and Ch arges (ODC s) ......................................................................... 22  
-  Tariff Exemptions, Tari ff Rate Quotas.................................................................... 23  
-  Fees and Charges for Services Rendered ............................................................... 24  
-  Application of Internal Taxes to Imports ............................................................... 27  
-  Quantitative Import Restrictions, including Prohibitions, Quotas and 
Licensing Sy stems ................................................................................................. 29  
-  Customs Valu ation ................................................................................................ 32  
-  Rules of Or igin ...................................................................................................... 32  
-  Anti-dumping, Countervailing Duty  and Safeguar d Regimes ................................. 33  
B. EXPORT REGU LATIONS ......................................................................................... 34  
-  CUSTOMS Tariffs, Fees and Charges for Services Rendered, Application of 
Internal Taxes to Exports ...................................................................................... 34  
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS ............................... 40  
-  Industrial Policy, including Subsidies .................................................................... 40  
-  Technical Regulation s and Stan dards .................................................................... 42  
-  Sanitary and Phytosani tary Meas ures ................................................................... 44  
-  Trade-related Investment Measures (TRIMs) ........................................................ 45  
-  Government Pr ocurement ..................................................................................... 46  
-  Transit ................................................................................................................... 46  
 WT/ACC/AFG/27 
 
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  II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy Question 1 Paragraph 15 of the Elements of a Draft Working Party Report (WT/ACC/SPEC/AFG/3 
and Corr.1) states that draft amendments to Afghanistan's tax administration and 
income tax laws, as well as a new Law on Bu siness Receipt Tax (BRT), are expected to 
go through the legislative process in 2012.  In addition, it states that other taxes are 
currently applied on goods, legal and natura l persons, land, and economic activities. 
- In the Working Party Report text, we n eed an explicit description of (a) the 
current taxes applied on goods, legal an d natural persons, land, and economic 
activities; and (b) how and when the draft amendments to Afghanistan's tax 
administration and income tax laws, an d the new Law on Business Receipt Tax 
(BRT) will be implemented.  
- Afghanistan should provide copies of these draft amendments and the new draft 
BRT Law for review by the Working Party before the next Working Party Meeting. 
Answer: 
Afghanistan will share a copy of the draft Law on VAT with the Working Party in July 2013. 
The Draft has been adopted by the Council of Mi nisters and is expected to be sent to the 
Parliament by the end of July 2013. The draft VAT Law contains provisions that would bring automatic amendments to the Income Tax Law once the VAT Law comes into force. 
There will not be a new Law on Business Receipt Tax. Such reference may be taken out from 
document WT/ACC/SPEC/AFG/3. 
Work toward preparing the Draft Amendments to the Tax Administration Law is at final stages.  
Once finalized, the Draft will be shared with Wo rking Party Members. We expect this in July 2013. 
The current taxes applied on goods have been reflected in Table 6 of document 
WT/ACC/SPEC/AFG/3.   Note that the fixed tax applied on imports is a prepayment of importer's tax liability. Note further that a BRT of 2% is also applied on the total gross income (sales) of 
domestic legal persons. As such, a 2% BRT is indirectly applied on domestic goods. 
The current taxes applied legal and natural persons, land, and economic activities were provided in 
document WT/ACC/AFG/5 of 26 July 2010.  These are reproduced below with some changes.  Afghanistan agrees to have such information reflected in the Draft Working Party Report. 
1. Persons: 
(a) Legal persons:  - Income tax based on fixed norms:  20%; 
 - Business Receipts Tax:  2% for most businesses; 
 - Business Receipts Tax:  5% for restaurants, hotels, and wedding halls which has 
quarterly revenue of approximately US$15,000.00 or more; and 
 - Business Receipts Tax:  10% for airlines telecommunications and, restaurants, and 
hotels providing superior services. 
The income for legal persons includes: 
- All receipts derived from business/industry/construction/other economic activity; 
- Interest/dividends/rents/royalties; and 
- Any other income from labour, capital or economic activity. WT/ACC/AFG/27 
 
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  (b) Natural persons:  
Based on monthly income:  - 0%:  for income 0 – US$100; 
 - 2%:  for income from US$101 to US$250; 
 - US$3 fixed amount plus 10%:  for income from US$251 to US$2,000; and 
 - US$178 fixed amount plus 20%:  for income above US$2,000. 
The income for natural persons includes: 
- Salaries/wages/fees/commissions; 
- All receipts derived from business/industry/construction/other economic activity; - Interest/dividends/rents/royalties/rewards/prizes/bonus payments; 
- Distributive shares of partnership income; and 
- Any other income from labour, capital or economic activity. 
In addition, natural persons are subject to BRT at the same rate as legal persons if the quarterly 
gross revenue of natural persons is approximately US$15,000 or higher. 
2. Land: 
There is no land tax in Afghanistan. 3. Sale or Transfer of Movable and Immovable Property: 
One per cent of the price receivable on sale or transfer of moveable or immovable property is 
payable by natural as well as legal persons.  This tax is in lieu of income tax in the case of a natural person and will be allowed as credit against tax payable in the case of a legal person when the tax return is filed. 
4. Transport: 
Persons who carry on a business of transport of g oods or passengers are liable to a tax based on 
the load or passenger carrying capacity of the vehicle.  The income tax law provides a schedule to 
determine the amount of tax payable.  The tax is a final tax so income derived from business 
taxed on this basis will not be subject to annual income tax assessment. 
5. Rent Withholding Tax: 
All tenants (lessees) of property used for business purposes (including accommodation of 
employees) are required to withhold tax at the rate  of 10% from payment of rent to the landlord 
(lessor) where the rent is approximately US$200 or more per month.  Where the payment of rent is approximately US$2,000 or more per month, the rate is 15%.  The tax withheld is treated as a 
credit towards the landlord's (lessor's) annual income tax assessment. 
6. Contractor Withholding Tax: All contractors, no matter whether they are foreign or national persons, who make payments 
under a contract, are required to withhold tax from those payments.  If the payee has a business 
licence, then tax is to be withheld at the rate  of 2% of the amount of the payment.  The tax 
withheld will be allowed as a credit against the payee's annual income tax assessment.  If the 
payee does not have a business licence, then tax is to be withheld at the rate of 7% of the amount 
of the payment.  In this case, the tax withheld will be treated as a "final" tax and there is no requirement for the payee to declare this income in their annual income form. 
7. Economic activities:  
The incomes from all persons (see 2 above) are subject to tax unless exempted by law. WT/ACC/AFG/27 
 
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  Question 2 
Paragraph 15 of document WT/ACC/SPEC/AFG/3:  Please incorporate the reply to 
Question 8 of document WT/ACC/AFG/17 in  the text, i.e., that, "Tax concessions 
provided to certain investors during the period 2002-2005 under the Law on Domestic 
and Foreign Private Investment  in Afghanistan of 2002 (previous Law on Investment) 
are no longer in effect.  The periods, for wh ich these tax concessions were granted, have 
expired". 
Answer: 
Afghanistan agrees to the incorporation of the reply to Question 8 of document WT/ACC/AFG/17 in 
paragraph 15 of document WT/ACC/SPEC/AFG/3.  We will work with the WTO Secretariat Accessions Division to update docume nt WT/ACC/SPEC/AFG/3 accordingly. 
Question 3 
Paragraphs 16-18 of document WT/ACC/SPEC/AFG /3 do not appear to deal with fiscal 
and monetary policy.  Perhaps they should be moved to sections of the draft Working 
Party Report more appropriate to their themes. 
Answer: 
Afghanistan agrees to this suggestion.  The Investment Regime section may be the most 
appropriate. We wi ll work with the WTO Secretariat Accessions Division to update document 
WT/ACC/SPEC/AFG/3 accordingly. 
- Investment Regime Question 4 
Paragraph 23 of document WT/ACC/SPEC/AFG/3:  Please incorporate the reply to 
Question 10 of document WT/ACC/AFG/17 in the text, i.e., that: 
- Article 5.3 authorises the High Commission  on Investment with the agreement of 
relevant Ministries to provide 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 investments; 
- That this authority had never been exercised; 
- Articles 5.1 and 5.5 authorise the High Commission on Investment to, from time 
to time, respectively change the list of  sectors in which investments could be 
restricted and amend the list of prohibited sectors; and 
- Article 5.2 authorises the High Commission  on Investment to limit, from time to 
time, the share of foreign investment in  some industries, specific economic 
sections and business companies. 
Answer: 
Afghanistan agrees to the incorporation of the reply to Question 10 of document WT/ACC/AFG/17 
i n  p a r a g r a p h  2 3  o f  d o c u m e n t  W T / A C C / S P E C / A F G / 3 .   W e  w i l l  w o r k  w i t h  t h e  W T O  S e c r e t a r i a t  
Accessions Division to update docume nt WT/ACC/SPEC/AFG/3 accordingly. 
Question 5 Paragraph 23 of document WT/ACC/SPEC/AFG/3:  Please incorporate the information in 
the reply to Question 6 of document WT/A CC/AFG/17 in this paragraph, i.e., that:  
(i) The High Commission on Investments meets once per month and considers 
submitted application during prior month.  The required documents that must be 
submitted by the applicant are the following:  WT/ACC/AFG/27 
 
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  - Application form for the AISA Licence; 
- Documents necessary to complete co rporate registration: application for 
corporate registration, Articles of  Association, and Shareholders' 
Agreement; and, 
- Five passport size photos. 
- Afghan citizens must provide their nati onal identity card.  Foreign citizens 
(as individual investors or represen tatives 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 Fore ign Affairs and the Afghan Embassy in 
the home country of the foreign legal entity.   
(ii) Afghanistan considers these requirements to be consistent with best 
international practices. 
Answer: 
Afghanistan agrees to the incorporation of the information in the reply to Question 6 of document 
WT/ACC/AFG/17 in paragraph 23 of document WT /ACC/SPEC/AFG/3.  We will work with the 
WTO Secretariat Accessions Division to update WT/ACC/SPEC/AFG/3 accordingly. 
Question 6 
Please scrub this section of the draft Work ing Party Report to ensure that the new 
information regarding AISA licence and corporate registration supersedes any information provided previously, e.g., in do cument WT/ACC/AFG/4; in the replies to the 
questions in document WT/ACC/AFG/7; and, an y other information provided before this 
communication regarding these matters. 
Answer: 
Paragraph 25 of document WT/ACC/SPEC/AFG/3 contains the most up to date information 
regarding the AISA licence and corporate registra tion as it relates to the AISA licence.  
Some updates to this and other paragraphs related to investment regime will be provided as per 
replies to additional questions below. 
Question 7 Reply to Question 10 of document WT/ACC/AFG/17:  Please define more precisely what 
"from time to time" means. 
Answer: 
"from time to time" is interpreted to mean "as needed".  
Question 8 
Paragraph 23 of document WT/ACC/SPEC/AFG/3:  Please clarify in this paragraph the 
High Commission's authority to "restr ict" investments in the following. 
- Please include in this paragraph the information in the reply to Question 11 of 
document WT/ACC/AFG/17 that, in pr actice, proposed investments in 
"restricted" sectors could be subject to ce rtain conditions to be approved by the 
High Commission on Investments.   
- Please include in this paragraph the info rmation that such conditions/restrictions 
would apply equally on both do mestic and foreign investors. WT/ACC/AFG/27 
 
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  Answer: 
Afghanistan agrees to the inclusion in paragraph 23 of document WT/ACC/SPEC/AFG/3 the 
suggested materials above.  We will work with the WTO Secretariat Accession Division to update 
WT/ACC/SPEC/AFG/3 accordingly. 
Question 9 
Paragraph 24 of document WT/ACC/SPEC/AFG/3.  Afghanistan states, that applications 
for direct investments exceed ing US$3 million require approv al by the High Commission 
on Investment.  Can you please provide info rmation on investments to date (e.g., over 
the last 10 years) over US$3 million in value that have been vetted with the 
High Commission and their disposition?  We request this information for both domestic and foreign investments.   
Answer: 
Since 2003, the number of investments which exceeded US$3 million were as follows: 
- Domestic:  89 
- Foreign:  39 
The total number of investments exceeding US$3 million was 128 during the last 10 years. Question 10 
Paragraph 24 of document WT/ACC/SPEC/AFG/3:  Is it necessary for share purchases 
(i.e., not direct investments) of US$3 million or greater to be approved by the High 
Commission? 
Answer: 
Is it not necessary for share purchases (i.e., not direct investments) of US$3 million or greater to 
be approved by the High Commission on Investments. 
Question 11 
Paragraph 26 of document WT/ACC/SPEC/AFG/3:  As per the reply to Question 12 of 
document WT/ACC/AFG/17, please make it explicit in this paragraph, that fees for most 
investments seeking the AISA licence varied from US$50 to US$1,000 based on the 
amount of the initial capital. 
Answer: 
Afghanistan agrees that paragraph 26 of document WT/ACC/SPEC/AFG/3 be amended to reflect 
aforementioned suggestion. 
Question 12 
The reply to Question 13 of document WT/ACC/ AFG/17 is incomplete.  Article 10 of the 
Private Investment Law of 2005 states that an "approved enterprise" for the purposes 
of permitted investment in Afghanistan may be "Business entities organized under the 
laws of another nation, but registered and a pproved to do business in Afghanistan in 
accordance with the laws of Afghanistan".   
- What does an enterprise must specific ally do to be considered "approved" for 
investment, i.e., what does "registe red and approved to do business in 
Afghanistan in accordance with the laws  of Afghanistan" mean in practical 
terms? Does it mean securing a corporat e registration, an AISA licence, and/or a WT/ACC/AFG/27 
 
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  business licence, or are there additional criteria to meet to be considered 
"approved"?  For example, a TIN? 
- Please incorporate this information in paragraph 24 of document 
WT/ACC/SPEC/AFG/3. 
Answer: 
An enterprise engaged in investment is considered registered and approved to do business in 
Afghanistan in accordance with th e laws of Afghanistan once it secures corporate registration, an 
AISA licence, and TIN. 
Afghanistan agrees to include this information in paragraph 24 of document WT/ACC/SPEC/AFG/3. Question 13 In reply to Question 14 of document WT /ACC/AFG/17:  Afghanistan states that 
"A company with an AISA licence does not need to obtain a business licence unless its 
main activity is international trade".   
- How is it determined that a company's "main activity" is international trade?  
Who makes this determination for the purp oses of paying the 2% fixed tax on 
duty paid import value? 
Answer: 
It is the company that determines whether or not its main activity is international trade. And for 
such purpose, it seeks to obtain business licence from MOCI.  The business licence is provided to customs authority and a 2% fixed tax (applied on customs duty and on customs value of imported 
goods) is collected at the time of clearance of goods.  If the importer did not have a business 
licence, customs will collect 3% fixed tax and clear the goods. 
Question 14 In reply to Question 14 of document WT/A CC/AFG/17:  For firms that do not have a 
business licence, e.g., companies for which inte rnational trade is not the main activity 
and they are using an AISA licence, the reply st ates that a 3% fixed tax is applied on the 
duty-paid value of the imported goods.  Please  ensure that this information is included 
in paragraph 25 of document WT/ACC/SPEC/AFG/3. 
Answer: 
For companies not engaged in trade as main activity, these obtain AISA licence.  The AISA licence 
is provided to customs authority and a 2% fixe d tax (applied on customs duty and on value of 
imported goods) is collected at the time of clea rance of goods.  If the company did not have an 
AISA licence, customs will collect 3% fixed tax an d clear the goods. Companies with AISA licence 
import for their own use and operations (equipment, input) and not for reselling. 
Afghanistan agrees to include this information in paragraph 25 of document WT/ACC/SPEC/AFG/3. 
- State Ownership and Privatizat ion, State-trading Entities 
Question 15 
Paragraph 35 of document WT/ACC/SPEC/AFG/3:  Please include in the text the fact 
that all SOEs are 100% state-owned. 
Answer: 
Afghanistan agrees to this inclusion. WT/ACC/AFG/27 
 
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  Question 16 
Paragraph 36  of document WT/ACC/SPEC/AFG/3:  Please add the following draft 
commitment text after the paragraph: 
36bis. The representative of Afghanistan confirmed that his Government would 
ensure the transparency of its ongoing privatization programme.  He stated that 
his Government would provide reports to  WTO Members on developments in its 
privatisation programme, periodically and upon request, as long as the 
programme would be in existence, and along the lines of the information already 
provided to the Working Party during th e accession process.  The Working Party 
took note of this commitment  
Answer: 
Afghanistan accepts this commitment. Question 17 Paragraphs 37-38 of document WT/ACC/SPEC/AFG/3:  It is not clear from the 
description in this section which SOEs and SOCs still operate as monopolies.  
Corporatization or leasing weakens the state owned/controlled aspect of these 
enterprises but does not mean that the ente rprise loses its status as a state trading 
enterprise.  
-  P l e a s e  i d e n t i f y  S O E s  a n d  S O C s  t h a t  meet the definition of state trading 
enterprises in the Understanding on the Interpretation of Article XVII of the 
General Agreement on Tariffs and Trade 199 4 for the purposes of notification.   
Answer: 
Da Afghanistan Brishna Sherkat (DABS), SOC is the only entity that meet the definition of state 
trading enterprises in the Understanding on the Interpretation of Article XVII of the General 
Agreement on Tariffs and Trade 1994 for the purposes of notification.  
Question 18 Paragraph 38 of document WT/ACC/SPEC/AFG/3 :  Please add this draft commitment at 
the end of the section: 
38bis.  The representative of Afghanista n confirmed that from the date of 
accession, State-trading enterprises (inc luding State-owned and State-controlled 
enterprises, enterprises with special or exclusive privileges, and unitary 
enterprises) in Afghanistan would make any purchases or sales, which were not 
for the Government's own use or consumption, solely in accordance with commercial considerations, including price,  quality, availability, marketability, 
transportation and other conditions of pu rchase or sale.  He further confirmed 
that these State trading enterprises would afford the enterprises of other Members adequate opportunity, in accord ance with customary business practice, 
to compete for participation in purchase s from or sales to Afghanistan's State 
enterprises.  The Working Party took note of these commitments. 
Answer: 
Afghanistan accepts this commitment. WT/ACC/AFG/27 
 
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  - Pricing Policies 
Question 19 Paragraph 43 of document WT/ACC/SPEC/AFG/3 :  Please add this draft commitment at 
the end of the section: 
43bis.  The representative of Afghanista n confirmed that from the date of 
accession pricing policy in Afghanistan would be applied in compliance with the provisions of Article III:4 and XI:1 of the GATT 1994 and Article 4 of 
the Agreement on Agriculture.  He further stated that in the application of price 
controls now or in the future, Afghanistan would apply such measures in a WTO-consistent fashion, and take a ccount of the interests of exporting 
WTO Members, as provided for in Articl e III:9 of the GATT 1994.  Upon accession, 
Afghanistan would publish the list of good s and services subject to State price 
control and any changes to this list in its Official Gazette and would continue to do so after accession when the list or the prices controlled changed.  
The Working Party took note of these commitments.  
Answer: 
Afghanistan accepts this commitment. 
III. FRAMEWORK FOR MAKING AND ENFO RCING POLICIES AFFECTING FOREIGN 
TRADE IN GOODS AND TRADE IN SERVICES 
Question 20 Paragraph 47 of document WT/ACC/SPEC/AFG/3:  Please clarify in the text of this 
paragraph the purpose of Presidential Decrees.  For example, are they intended to 
implement laws enacted by the Parliament?  Ca n they contradict laws already enacted?   
Answer: 
"Presidential Decrees" should read "Presidential Orders". Presidential Orders are not intended to implement laws enacted by the Parliament and cannot 
contradict laws already enacted.  Presidential Orders, however, can be used to instruct institutions 
to implement existing laws. 
Question 21 Paragraph 48 of document WT/ACC/SPEC/AFG/3 :  Could Afghanistan please elaborate 
on the availability of administrative a ppeal in Afghanistan in WTO matters not 
considered "customs" issues, e.g., subsidies and countervailing measures, IPR 
protection, and trade in services issues per Ar ticle VI of the GATS?  Please put the reply 
in the text of the draft Working Party Report . 
Answer: 
Afghanistan does not currently have laws on subsidies and countervailing measures. 
As for IPR Protection: 
- Appeals in the context of TRIPS Section 4 (Special Requirements related to Border 
Measures) are handled through the customs administrative appeal process already described in detail in document WT/ACC/SPEC/AFG/3.   
- The Ministry of Information and Culture is in the process of establishing a Copyright Board 
which will handle administrative appeals related to copyrights. WT/ACC/AFG/27 
 
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  - All laws, including pending amendments, comply with the TRIPS Article 49 requirement to 
the extent that any civil remedy can be ordered as a result of administrative procedures on 
the merits of a case, such procedures shall conform to principles equivalent to those required under TRIPS enforcement requirements.  Also, all laws including pending 
amendments provide, to the extent required u n d e r  T R I P S ,  f o r  j u d i c i a l  r e v i e w  o f  f i n a l  
administrative decisions. 
Service providers have the right to appeal to courts which satisfies the requirements under 
Article VI of GATS (Article VI 2(a): each Member shall maintain or institute as soon as practicable 
judicial, arbitral or administrative tribunals or procedures).  In addition, key service line ministries have in place administrative appeal procedures related to services within their competencies that businesses, if they wish, may seek prior to court.  These include the Ministry of Communications 
and Information Technology, the Ministry of Transp ort, Da Afghanistan Bank, and the Ministry of 
Finance. 
Question 22 
Paragraphs 48-49 of document WT/ACC/SPEC /AFG/3:  If "the Customs Arbitration 
Administration was not yet functional", and "t here were no administrative tribunals in 
Afghanistan, other than the Customs Arbitr ation Administration", please clarify the 
current and prospective role of arbitration in Afghanistan's right of appeal.  Please place 
this clarification in the text. 
Answer: 
As described in paragraph 48 of document WT/ACC/SPEC/AFG/3, persons, who had received a 
decision concerning a particular customs transaction, have the right to appeal administratively to 
the General Directorate of Customs. 
If the decision of the General Directorate was not satisfactory to the appellant, the appellant has 
the right to appeal to the Customs Arbitration Administration or directly to the commercial court.   
Afghanistan intends to operationalize the Custom s Arbitration Committee during the first half of 
2014.  
Question 23 
Paragraph 49 of document WT/ACC/SPEC/AFG/3 :  Please indicate when Afghanistan's 
draft legislation on the right of administrati ve appeal will be functional.  We suggest 
that Afghanistan establishes the right of appe al prior to completion of its WTO accession 
negotiations. 
Answer: 
The administrative appeal to the General Directorate of Customs has been functional for over 
five years. 
Afghanistan intends to operationalize the Custom s Arbitration Committee during the first half of 
2014.  
Question 24 
Paragraph 50 of document WT/ACC/SPEC/AFG/3 :  Please add this draft commitment at 
the end of the section: 
50bis. The representative of Afghanistan co nfirmed that its laws and regulations 
provided the necessary institutional ba se for the prompt administrative and 
judicial review of the Government's acti ons.  He further confirmed that from the 
date of accession Afghanistan's laws would provide for the right to appeal 
administrative rulings on matters subject to WTO provisions to the courts or 
other independent tribunal in conformity with WTO obligations, including those WT/ACC/AFG/27 
 
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  set out in Article X of the GATT 1994, Article 23 of the Agreement on Subsidies 
and Countervailing Measures, Article 11 of the Agreement on Implementation of 
Article VII of the GATT 1994, Article 62 of the Agreement on Trade-Related Aspects of Intellectual Property Rights an d Article VI of GATS.  The tribunals or 
procedures responsible for such reviews would be impartial and independent of 
the agency entrusted with administrati ve enforcement and shall not have any 
substantial interest in the outcome of the matter.  The review procedure would 
include the opportunity for appeal, without penalty, by individuals or enterprises 
affected by any administrative action subjec t to review.  Notice of the decision on 
appeal would be given to the appellant an d the reasons for such a decision would 
be provided in writing.  The Working Party took note of these commitments. 
Answer: 
Afghanistan accepts this commitment. 
Question 25 
Paragraph 51 of document WT/ACC/SPEC/AFG/3:  There is a serious inconsistency in 
this paragraph.  It states that, "no WT O provisions would be enforceable without 
conforming legislation", but then states th at, "the terms of the accession would come 
into force once the Accession Package is  ratified by the National Assembly". 
- Does ratification of the accession pack age establish enforceable legal obligations 
without specific conforming legislation, or not?  If not, then what is ratification of such obligations for, i.e. its legal significance?  Will ratification of the 
WTO package create a Treaty obligation fo r Afghanistan?  Do Treaty obligations 
supersede domestic law? 
- Please include this information in the text of the draft Working Party Report. 
Answer: 
Ratification of the accession package establishe s enforceable legal obligations without specific 
conforming legislation. 
The ratification of the WTO package will create a Treaty obligation for Afghanistan.   
Treaty obligations supersede domestic law. The following sentence should be deleted from  paragraph 51 of docume nt WT/ACC/SPEC/AFG/3: 
"The representative of Afghanistan said that no WTO provisions would be enforceable 
without conforming legislation." 
Question 26 Paragraph 51 of document WT/ACC/SPEC/AFG/3 :  Please add this draft commitment at 
the end of the section: 
51bis. The representative of Afghanistan confirmed that sub-central entities had 
no autonomous authority over issues of subsidies, taxation, trade policy or any 
other measures covered by WTO provisions .  He confirmed that the provisions of 
the WTO Agreement, including Afghanista n's Protocol of Accession, would be 
applied uniformly throughout its customs territory and other territories under its control, including in regions engaging in border trade or frontier traffic, special 
economic zones, and other areas where special regimes for tariffs, taxes and 
regulations are established.  He added th at when apprised of a situation where 
WTO provisions were not being applied or  were applied in a non-uniform manner, 
central authorities would act to enfo rce WTO provisions without requiring 
affected parties to petition through the courts.  The Working Party took note of these commitments. WT/ACC/AFG/27 
 
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  Answer: 
Afghanistan accepts this commitment. 
IV. POLICIES AFFECTING TRADE IN GOODS - Trading Rights and Registration Requ irements for Engaging in Importing 
This section of the draft Working Party Re port (WT/ACC/SPEC/AFG/3 and Corr.1) still 
needs further work. 
Question 27 
We urge Afghanistan and the Secretariat to re work this section to make it clearer and 
for Afghanistan to review its corporate regi stration and business licensing requirements 
with a view to sorting out the issues of re gistration, business licence, and other activity 
licensing and registration. 
- Currently, these are comingled and need to be individually identified and their 
descriptions separated from each other.   
- Please reorganize and clarify sections in  the chapter describing (a) registration 
to conduct business, its purpose and acquisition procedures; (b) a business 
licence, its purposes and acquisition pr ocedures; and (c) other licensing or 
registration to conduct business (e.g., in cluding but not limited to medicines), 
their purposes and acquisition procedures. 
- For the purposes of corporate regi stration:  draw a more specific 
distinction of the difference between th e act of importation and the act of 
domestic distribution. 
- For all entrepreneurs:  draw a more specific distinction between the act of 
registration and the licensing that may be necessary for certain activities. 
- For all entrepreneurs:  eliminate elem ents of, or at least streamlining, the 
extended list of requirements for co rporate registration and for business 
licensing. 
- Eliminate nationality di scrimination in all requirements for acquiring 
registration and licenses. 
Answer: 
Afghanistan will work with the WTO Secretariat Accession Division to rework this section in 
document WT/ACC/SPEC/AFG/3 in accordance wi th suggestions above and to reflect the new 
system for corporate registration and licensing at the Ministry of Commerce and Industries. 
The new system being established is described below: - Corporate registration will be delinked from business licensing. 
- The Business licence will be renamed to Trade Licence. 
- Trade Licence will not be a pre-requisite for corporate registration. - Trade licence can be obtained after corporate registration is completed. 
- Only companies interested in engaging in trade activities (import and export) will need to 
have trade licence. 
- Trade licence will be issued on an automatic basis by the Ministry of Commerce and 
Industries and will not require any pre-approval of other ministries. 
- The period for obtaining the trade licence will be maximum one day. 
- A single fixed fee will be charged for issuing/renewing trade licence. - No minimum capital or investment will be required to issue trade licence. 
- The trade licence is renewed automatically and annually. 
- The trade licence can be used by companies fo r importing goods to be commercially traded 
or for business own-use (e.g. equipment, raw materials, components). 
- Trade licence must be presented to customs in order to clear goods. 
- Trade licence will be delinked from  payment of any taxes on imports. WT/ACC/AFG/27 
 
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  Like the business licence, the trade licence will only be needed for import/export and not for 
domestic distribution.  In other words, the tr ade licenses will not be needed for domestic 
distribution. 
Legislation is being prepared to reflect the new system above.  It will be shared with Working 
Party Members once finalized. 
Question 28 In the reply to Question 35 of document WT/ACC/AFG/17, Afghanistan states that it "is 
currently reforming the current system to se parate registration from business licensing 
and restructure the business licence".  Please describe these reforms in the text of the 
Working Party Report. 
Answer: 
Please see the reply to the previous question.  We will work with the WTO Secretariat Accessions 
Division to reflect these re forms in WT/ACC/SPEC/AFG/3. 
Question 29 
We request that Afghanistan provides an ac t i o n  p l a n  f o r  r e v i e w  a t  t h e  n e x t  W o r k i n g  
Party Meeting that clarifies definitively Af ghanistan's requirements for importation (as 
distinct from domestic distribution) and on how it will accomplish these foregoing 
objectives. 
Answer: 
Please see the reply to Question 27 above. Question 30 
The replies to Question 30 of document WT/A CC/AFG/17 are internally inconsistent and 
do not correspond to the information given in the Elements of a Draft Working Party Report.  In paragraph 52 of document WT /ACC/SPEC/AFG/3, Afghanistan has stated 
that a business licence is necessary to import  for distribution or retailing and the reply 
to Question 30 of document WT/ACC/AFG/ 17 states that, "Trade for commercial 
activities means importing products for selling in the market as distinct from own use by 
the importer".   
- Clearly, a business licence is necessary  for importing, unless "for own use".  
Could Afghanistan give clarification on wh at "own use" might be?  Furniture for 
the home?  Imported inputs for manufactu ring?  Construction materials for the 
home or factory?   
Answer: 
"Own use" in the case of business does not mean home use. 
"Own use" in the case business means equipment, input, raw materials not to be resold in the 
market but to be used for the purpose of production and operations of business. 
Importing for own-use at home does not require a business licence (or trade licence in the future). 
Question 31 
The reply to Question 34 of document WT/ACC/AFG/17 indicates that there is total 
confusion on the nature and application of the 2% and 3% taxes.  That must be clarified 
and regularized prior to completion of Afghan istan's accession.  The taxes are applied to 
imports, and therefore must be considered as  non-tariff charges on imported goods.  WT/ACC/AFG/27 
 
- 15 - 
 
  The amount varies if (a) the importation is for "own use" without a business licence 
(i.e., 2%), or (b) for distribution if the impo rter has a business licence (i.e., 3%).  If the 
importer has income and pays income tax,  these charges may be deducted from the 
amount due. 
- These charges must be incorporated into  the customs tariff as a general charge.  
The current method is non-transparent and denies WTO Members the right to 
negotiate. 
- The right to deduct the charges from in come tax does not change these issues.  
If Afghanistan wants to allow importers to deduct their tariff payments from 
imported goods, that should be done sepa rately from the char ge itself, as a tax 
issue. 
Answer: 
Importers for "own business use" and importers for commercial trade are all tax payers.  
The current system is designed to allow the government to collect advance taxes at the time of 
importation.  Amount charged for fixed tax can be claimed against income tax liability of the trader 
at the end of the tax period.  This is a minor administrative process for advance tax collection.  This is needed given that tax administration and collection mechanisms in Afghanistan are not yet 
well developed. 
Question 32 Paragraph 52 of document WT/ACC/SPEC/AFG/3 states that:  "in order to engage in 
trade for commercial activities (i.e. importing for distribution and retail sale as opposed 
to importing for own use by the importer), the legal person and sole proprietor needed 
to have a business licence".  This is directly contradicted by the reply to Question 36 of document WT/ACC/AFG/17 which states that:  "The act of importation and act of 
distribution are two distinct acts in Afghanis tan".  The reply to Question 38 of document 
WT/ACC/AFG/17 also states that: "it is the deci sion of the importer whether to import 
with or without business licence". These two replies are clearly not true when imports 
are destined for distribution, i.e., the two acts are unified in the need for a business 
licence. 
- Please clarify this when revising the section. Answer: 
Please see the reply to Question 27 above which lays out the new system to be in place soon.   Below is provided to clarify points regarding the current system which will be replaced by the new 
system. 
The business licence from MOCI was optional: 
- Importers with the purpose of selling goods in the market can import without business 
licence by paying at the time of clearance of goods 3% fixed tax on the total of customs 
duty and value of imported good; and 
- Importers with the purpose of selling goods in the market can import with business licence 
by paying at the time of clearance of goods 2% fixed tax on the total of customs duty and 
value of imported good; 
Fixed tax payments made at the time of clearanc e of goods are considered advance tax payments 
toward importer's income tax liability and are claimed at the time of tax filing. 
The act of distribution takes place after the ac t of importation is completed (goods cleared by 
Customs).  There is no need for a business licence from MOCI to distribute or sell goods. WT/ACC/AFG/27 
 
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  An importer may be also a distributor or retailer.  Distributors or retailers do not necessarily have 
to be importers.  In all cases, the distributor and retailer do not need a business licence from MOCI. 
Afghanistan reconfirms that the act of importation and the act of distribution are distinct in the 
context of the business licence. 
Question 33 Paragraph 52 of document WT/ACC/SPEC/AFG/3:  Could Afghanistan please clarify why, 
in order "to register as a legal person or sole proprietor" an applicant has to approach 
the Business Licensing Department (B LD) of the Ministry of Commerce? 
Answer: 
This will no longer be the case under the new system.  Please see the reply to Question 27 above. 
Question 34 
Paragraph 52 of document WT/ACC/SPEC/AFG/3:  Please clarify through amendment of 
the text of this paragraph that registration "as a legal person or a sole proprietor" is the 
same thing as "corporate registration."  If they are not the same, please distinguish in 
the text. 
Answer: 
Registration "as a legal person or a sole proprietor" is the same thing as "corporate registration".  
Paragraph 52 of WT/ACC/SPEC/AFG/3 will be amended accordingly. 
Question 35 Paragraph 52 of document WT/ACC/SPEC/AFG/3 :  This paragraph appears to assert 
that "trade for commercial purposes" is equated exclusively with importation and 
exportation for distribution or retail sale.  Please confirm whether or not this is so. 
- Is the term "trade" exclusively used for import/export? 
- Please confirm that what Afghanistan ca lls a "business licence" is actually an 
activity licence for the right to import or  export for distribution or retail sale? 
Answer: 
Please see the reply to Question 27 above which lays out the new system to be in place soon.   Below is provided to clarify points regarding the current system which will be replaced soon by the 
new system. 
The references for "trade for commercial purposes" or "resale" in previous replies to questions 
were made to distinguish between AISA Licence which can only be used by businesses to import 
for their own use (e.g. raw materials, equipment,  and components used in production) and the 
MOCI Business Licence which can be used to import goods for resale in the market.  Trade 
exclusively means import/export. 
The business licence is not an activity licence. The business licence grants the right to import or export.   
Retailers and distributors do not need business licence. WT/ACC/AFG/27 
 
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  Question 36 
Paragraph 52 of document WT/ACC/SPEC/AFG/3:   - At the December 2012 Working Party Meeting, the representative of Afghanistan 
stated that "there are other areas of acti vity that the business licence covers".  
What other commercial activiti es require a business licence? 
- What sort of licence, if any, does a manuf acturing facility need to import raw and 
semi-manufactured goods for further inco rporation in its manufactured output? 
Answer: 
The business licence grants the right to import or export.   It is not an activity licence. 
There are no other commercial activities covered by the business licence. If the manufacturing facility needs to import raw and semi-manufactured goods for further 
incorporation in its manufactured output, then it will need an AISA Licence.  And if the same 
manufacturing facility wants to import goods for reselling in the market, it will need a Business Licence.  In either case, if the manufacturing facility is willing to pay 3% fixed tax instead of 2% 
fixed tax then it will not need to have a business licence or ASIA licence to import for either 
own-use or reselling in the market.   
Question 37 
Paragraph 52 of document WT/ACC/SPEC/AFG/3:  The text of this paragraph and 
statements by the Afghan representative at  the December 2012 meeting indicated that 
the requirement for foreign legal entities seeking a business licence to provide (1) a 
copy of certificate of re gistration of the legal entity attest ed to by the Ministry of Foreign 
Affairs and the Afghan Embassy in the home country of the foreign legal entity; (2) a 
letter from the Afghan Ministry of Foreign Affairs that the applicant had no criminal 
record; and (3) a letter attested by Ministry of Foreign Affairs and the Afghan Embassy 
in the home country of the investor indicati ng that the foreign citizen had no criminal 
record would all be eliminated at the end of 2012. 
- Could Afghanistan please confirm that th ese requirements have been eliminated 
and reformulate the text to make this clear? 
Answer: 
Given concerns related to security and prevention of terrorist acts, criminal records of individuals 
who will be doing business in Afghanistan remain to be critical.  Attestation is important to ensure 
that fake certificates are not provided.  As such, these requirements were not eliminated as 
originally planned.   
Question 38 
Paragraph 54 of document WT/ACC/SPEC/AFG /3 states that:  "In 2011, a minimum 
capital became required for obtaining business licenses which was US$1,000 for domestic traders and US$10,000 for foreign traders.  The reason for lower minimum 
capital requirement for domestic traders was to develop Afghan private sector 
(particularly small- and medium-size bu siness) and entrepreneurship though 
encouraging the involvement of Afghan  nationals in international trade". 
- Such discrimination in securing the right to trade is not consistent with either 
Article III or Article XI of the GATT 1994 (t he higher fees affect the ability to 
import, and therefore discrimi nate and are a barrier against imports).  It also is 
an unnecessary barrier to the right to trade, and, as a fee associated with 
importation and exportation, it is not rela ted to the cost of services rendered, and 
therefore conflicts with Articl e XIII of the GATT 1994 as well. WT/ACC/AFG/27 
 
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  - Afghanistan must establish non-discriminatory rules for the right to trade.  
We seek this change prior to the comple tion of Afghanistan's WTO negotiations. 
Answer: 
The new system will not require minimum capital to obtain trade licence. 
Question 39 
Paragraph 56 of document WT/ACC/SPEC/AFG/3:  The schedule of fees for securing a 
business licence varies widely depending on th e national origin of the applicant.  As a 
business licence is necessary to import, this variation makes it clear that the fees are 
not related to the cost of services, but rather a tax on traders, and therefore a tax on trade. 
- These fees should be immediately regula rized to eliminate discrimination and to 
approximate the cost of service in issuing them. 
- In addition, could Afghanistan please cl arify that a business licence is granted 
automatically to all applicants?  If not, explain why not? 
- Please provide a copy of the Instruction on Business Licensing of 10 April 2004 of 
the Ministry of Commerce and Industries. 
Answer: 
Under the new system, there will be one fixed fee for all applicants. Under the previous system, the licence was granted automatically.  It will also be granted 
automatically under the new system. 
We are currently preparing draft legislation for the new system and we will share as soon as 
finalized. 
Question 40 Paragraph 57 of document WT/ACC/SPEC/AFG/3 states that:  "It took around two days 
to obtain a business licence.  Five signatur es were required, the final signature being 
that of the Director of the Business Licensing Directorate". 
- Please confirm that it takes two days to get five different signatures on the 
application.  That does not sound realisti c.  List, in series, every step necessary, 
every office/agency, and every offici al whose signature is required.   
- Demonstrate that these requirements can be met in two days, or recalculate how 
long it actually takes to acquire a bu siness licence from first application. 
Answer: 
Under the new system described in the reply to Question 27, it will take maximum one day to 
obtain the trade licence. 
We confirm that the period was two days for executing the steps within the Ministry of Commerce 
and Industries (MOCI).  The five steps were all implemented in the same building: submission and 
review of application, payment slip, payment at bank branch located at MOCI, name registration, 
and issuance of licence.  We will provide the new steps once the new system is established. 
Question 41 Paragraph 57 of document WT/ACC/SPEC/AFG/3  states that:  The "renewal process 
was similar to the initial process of ob taining the licence.  For the renewal, a 
conformation [ sic] from Mostufiat Departments that the company had paid its taxes was 
necessary.  The renewal would take one to two days to complete". WT/ACC/AFG/27 
 
- 19 - 
 
  - The annual renewal process is "similar" to  the original to get the business licence 
(which takes two days) and an additional  step of getting confirmation from 
Mostufiat Departments [plural] is required .  How does this take less time than 
the original? 
- Demonstrate that these requirements can be met in "1-2 days", or recalculate 
how long it actually takes to renew a business licence annually. 
Answer: 
Getting confirmation from Mostufiat Department takes less than one day.  Renewal at MOCI is less 
than one day given that it is a renewal and there is no need to review the application in details. 
Question 42 Paragraph 58 of document WT/ACC/SPEC/AFG/3 states that:  "All foreign applicants for 
a business licence would have to provide the following additional information:  
(i) passport and a valid business visa; and ( ii) notarized and/or certified financial 
statement by the business applicant's bank and/or accredited account". 
- Please indicate, in the text, what simila r requirements are demanded of national 
applicants for a business licence?  If there are no similar requirements, please explain why not. 
Answer: 
Foreign natural persons will need to provide passport and a valid business visa whereas Afghan 
natural persons will need to provide ID card (Tazkera).  Afghan applicants also need to provide financial statement by the business applicant's bank .  The notarization is needed for statements 
from foreign banks which is a normal international practice to attest truthfulness.   
Question 43 Paragraph 59 of document WT/ACC/SPEC/AFG/3  states that:  "All persons including 
legal and natural (domestic/foreign) person s could import without a business licence". 
- Please clarify they can "import with out a business licence", provided that 
importation is only for own use. 
- If "own use" includes importation fo r further incorporation in manufacturing, 
please add that to the qualification. 
Answer: 
All persons including legal and natural (domestic/foreign) persons could import without a business 
licence and without any AISA licence for own-use and reselling in the domestic market.  This is 
provided they pay 3% fixed tax at the time of importation on the total of customs duty and value of imported good instead of 2% with business licence (when importing for reselling) or with AISA 
licence (when importing for own-use – not for reselling). 
Own-Use includes importation for further incorporation in manufacturing.  This qualification may 
be added in paragraph 59 of WT/ACC/SPEC/AFG/3. 
Question 44 
Paragraph 60 of document WT/ACC/SPEC/AFG/3:  Please move the last sentence of this 
paragraph to the section on "Other customs formalities." 
Answer: 
Afghanistan agrees to move the last sentence of paragraph 60 of document WT/ACC/SPEC/AFG/3 
to the section on "Other customs formalities".   WT/ACC/AFG/27 
 
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  Question 45 
Paragraph 61 of document WT/ACC/SPEC/AFG /3 states that:  "Afghanistan would 
reform the current fee structure [for busi ness licensing] to ensure conformity with 
WTO rules to reflect the approximate cost of services rendered".   
- Could Afghanistan please provide a plan fo r that in the text of the report, and a 
time line for its implementation? 
- In addition, administratively, it does no t appear that registration and securing a 
business licence are separate acts, sinc e no registration is possible until the 
Business Licensing Department refers the application for registration to the Afghan Central Business Registry.  Please  explain why registra tion is dependent 
upon getting a business licence. 
Answer: 
Please see the reply to Question 27 above. 
Question 46 
Paragraph 62 of document WT/ACC/SPEC/AFG/3 and the reply to Question 39 of 
document WT/ACC/AFG/17 states  that Afghanistan "will revise current fees for import 
licenses 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".   
- Could Afghanistan please provide copies of the draft legislation to the Working 
Party for review and add this citation to the Legislative Action Plan? 
Answer: 
The Ministry of Public Health will revise the curre nt fees for import licenses related to medicines 
and medical equipment to ensure conformi ty with Article VIII of the GATT 1994.  
Draft amendments to the Regulation on Producti on and Import of Medicines of 19 February 2007 
will be provided once revised fee is determined.  We will include this Regulation in the revised legislative action plan. 
Question 47 
The reply to Question 52 of document WT/ACC/AFG/17 discusses the annual fee of 
US$2,220 for the issuance of the Import an d Re-Sell Licence for telecommunications 
equipment.  It states that the "policy ra tionale for this fee" is to cover Afghan 
Telecommunications Regulatory Agency (ATR A) administrative and operation costs. 
- It appears that this licence is required to import and distribute 
telecommunications equipment, and that it  is not a permit for the entry into 
Afghanistan of specific goods.  It ther efore should be considered an activity 
licence, not an import licence. 
- Please move all discussion of this activity licence to the section of the 
Working Party Report on Trading Rights. 
- Could Afghanistan please explain, ex plicitly, how the administration and 
operation costs of the ATRA are related to the fee for a licence necessary to 
import and distribute telecommunications equipment?  
Answer: 
The Import (and Re-sell) Licence for Telecommunications is an import licence and not an activity 
licence.  The term "Re-Sell" was added to emph asize that those engaged in telecommunications 
activities in Afghanistan do not need to obtain import licence for telecommunications equipment.  
On the other hand, those who are in the business of simply importing telecommunications equipment to be sold in the market need to obtain the import licence.  Those selling these WT/ACC/AFG/27 
 
- 21 - 
 
  telecommunications equipment in the market do not have to be necessarily the importers of such 
equipment. 
Again, we confirm that the import licence for telecommunications equipment is not an activity 
licenses and there is no need to move to the section on Trading Rights.  
The Import and Re-Sell Licence fee for telecommunications equipment is US$2,000.  ATRA issues 
this licence.  The fee is meant to reflect the costs of services rendered by ATRA related to this licence which include the cost associated with issuance of the licence and confirmation of 
equipment, when requested by customs, at the ti me of importation to ensure that they are in 
accordance with the licence. 
Question 48 Paragraph 62 of document WT/ACC/SPEC/AFG/3 :  Please add this draft commitment 
text at the end of the section: 
62bis.  The representative of Afghanista n confirmed that from the date of 
accession, Afghanistan would grant any na tural or legal person, regardless of 
physical presence or investment in Afghan istan, the right to be the importer of 
record of any product allowed to be impo rted into Afghanistan, at any level of 
distribution, and that its laws and regulations relating to the right to import or 
export goods and all fees, charges or taxe s levied on such rights would conform 
fully with its WTO obligations, including Articles VIII:1(a), XI:1, and III:2 and 4 
of the GATT 1994, Article III of the Genera l Agreement on Trade in Services, and 
Article 63 of the Agreement on Trade-Re lated Aspects of Intellectual Property 
Rights.  He also confirmed that the right to import and to export would be 
granted in a non-discriminatory and non- discretionary manner from the date of 
accession, and requirements for commerc ial registration or application for 
activity licenses or other tr ading rights for importation and exportation would be 
for customs and fiscal purposes only , would not require investment in 
Afghanistan nor confer the right to distri bute there, and would not constitute a 
barrier to trade.  The Working Party took note of these commitments. 
Answer: 
Afghanistan accepts this commitment. A. IMPORT REGULATIONS 
- Ordinary Customs Duties 
Question 49 Paragraph 64 of document WT/ACC/SPEC/AFG/3:  Please describe how Afghanistan's 
Tariff Schedule is revised and the revisions adopted. 
Answer: 
Afghanistan ensures that its tariff nomenclature is consistent with the World Customs Organization 
Harmonized System.  As such, Afghanistan revi ses its tariff nomenclature every time a new 
HS version is produced by the World Customs Organization. 
There are no legal requirements to change tariff rates periodically.  Based on proposals by the private sector or relevant ministries, the Director General of Customs 
makes recommendations to the Minister of Finance to revise tariff rates in the Tariff schedule.  
Recommendations for changes in tariff rates are then approved by the Minister of Finance.  Subsequently the revised Tariff Schedule with new rates is published. WT/ACC/AFG/27 
 
- 22 - 
 
  Question 50 
The reply to Question 43 of document WT/ACC/AFG/17 states that:  "(... where 
imported goods are placed in a zone/warehouse/free shop, undergo processing, including mixture with Afghan materials, an d 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 
instructions to implement these provis ions have not yet been developed". 
- Please outline the "relevant procedures" of Article 127(5). 
- Please confirm that Afghanistan intend s that imported components mixed with 
Afghan materials should be subject to tari ffs and taxes when sold into the rest of 
Afghanistan from the zone/warehouse/free shop. 
Answer: 
Currently there are no duty free zones, free warehouses, or free shops in Afghanistan where goods 
are processed.  As such no procedures have been developed to implement Article 127(5).   
Afghanistan confirms that goods produced in fr ee zones, free warehouses, or free shops made of 
imported components mixed with Afghan materials will be subject to tariffs and taxes when sold 
into the rest of Afghanistan. 
- Other Duties and Charges (ODCs) Question 51 Paragraph 66 of document WT/ACC/SPEC/AFG/3:  The Understanding on the 
Interpretation of Article II(1):b of the GATT 1994 states that, "the nature and level of 
any "other duties or charges" levied on bound tariff items, as referred to in that provision, shall be recorded in the Schedules of concessions annexed to the GATT 1994 
against the tariff item to which they apply". 
- We seek a clear description in the Working Party Report of the other duties and 
charges that Afghanistan wishes to record in its WTO schedule and a clear 
statement that these are the only such du ties and charges that will be included. 
Answer: 
The other duties and charges that Afghanistan wishes to record in its WTO schedule are related 
only to red crescent tax.  These are the only such  duties and charges that will be included in the 
Schedule of Concessions and Commitments on Goods. 
Question 52 The reply to Question 44 of document WT/ACC/ AFG/17 states that:  "Afghanistan will 
table the Tax Benefiting the Afghan Red Cres cent Agency as ODC in its Schedule of 
Concessions and Commitments on Goods."  Ho wever, at the December Working Party, 
Afghanistan stated that its localities le vied additional charges on imports as 
"municipality fees". 
- Please confirm in paragraph 66 if the Red Crescent tax of 2% of the customs duty 
will be the only ODC that Afghanistan intend s to establish in its GATT Schedule or 
if there will be others.   
- Please specifically confirm the scope and nature of any such duties and charges, 
and that from the date of accession they will only be levied by customs officials 
as ODCs at the time of importation. 
- Please include a specific percentage of the ad valorem  value of the import 
covered by the tariff line or as a specific duty (per unit of the import covered by 
the tariff line) as an ODC in Afghan istan's Schedule of Concessions. WT/ACC/AFG/27 
 
- 23 - 
 
  Answer: 
Afghanistan confirms that the Tax Benefiting the Afghan Red Crescent Agency will be the only item 
tabled as ODC in Afghanistan's Schedule of Concessions and Commitments on Goods.  This will be bound in Schedule at the maximum corresponding customs value for respectively agricultural and 
non-agricultural goods.  This ODC will be levied by Customs officials at the time of importation. 
Question 53 Paragraph 66 of document WT/ACC/SPEC/AFG/3 :  Please add this draft commitment 
text at the end of the section: 
66bis. The representative of Afghanistan confirmed that his Government would 
not list duties and charges in its Schedu le of Concessions and Commitments on 
Goods under Article II:1(b) of the GATT 1994 except for the Red Crescent tax, 
charges commensurate with the Municipalities Tax, and XXXX, thereby binding 
such charges at a rate incorporating th ese charges as a single ODC.  He also 
confirmed that any other measures app lied to imported goods of the kind 
described in paragraph 66 would be elim inated no later than the date of 
Afghanistan's accession and that after accession measures of this kind would not be reapplied or introduced as separa te charges on imports or exports.  
The Working Party took note of these commitments.   
Answer: 
Afghanistan accepts this commitment with the suggested change below: 
66bis. The representative of Afghanistan confirmed that his Government would not list 
duties and charges in its Schedule of Concessions and Commitments on Goods under 
Article II:1(b) of the GATT 1994 except for the Red Crescent tax, charges commensurate 
with the Municipalities Ta x, and XXXX, thereby binding such charges at a rate 
incorporating these charges as a single ODC.  He also confirmed that any other measures 
applied to imported goods of the kind described in paragraph 66 would be eliminated no 
later than the date of Afghanistan's accession  and that after accession measures of this 
kind would not be reapplied or introduced as separate charges on imports or exports.  
The Working Party took note of these commitments.  
- Tariff Exemptions, Tariff Rate Quotas Question 54 
Paragraph 67 of document WT/ACC/SPEC/AFG/3:  The reply to Question 45 of 
document WT/ACC/AFG/17 indicates that that the exemption from tariffs on fuels, lubricants and equipment carried with and necessary for the normal functioning of 
transport vehicles applies only  to fuels, lubricants and equipment of transport vehicles 
bringing goods into Afghanistan from ab road, and not such goods imported for 
commercial sale. 
- Please confirm this in the text of the paragraph. 
Answer: 
Afghanistan confirms this and agrees to include such info at the end of paragraph 67 of document 
WT/ACC/SPEC/AFG/3. 
Question 55 
Paragraph 68 of document WT/ACC/SPEC/AFG/3 :  Please add this draft commitment 
text at the end of the section: WT/ACC/AFG/27 
 
- 24 - 
 
  68bis. The representative of Afghanistan stated that upon accession to the WTO, 
any tariff exemptions would only be implem ented in conformity with the relevant 
WTO provisions including Article I of the GATT 1994 and the TRIMs Agreement.  He further confirmed that any tariff rate qu otas, if introduced in the future, would 
be applied and administered in confor mity with WTO rules and regulations, 
including Article I and the Agreement on Import Licensing Procedures.  The Working Party took note of this commitment. 
Answer: 
Afghanistan accepts this commitment. 
- Fees and Charges for Services Rendered Question 56 
Paragraph 70 of document WT/ACC/SPEC/AFG/3 and the reply to Question 46 of 
document WT/ACC/AFG/17 state that Afghanistan would revise its fees for customs 
storage, and that in 2013, legislation woul d be adopted to bring the new fee structure 
into force in 2014.  
- Please provide the draft legislative inst rument to the Working Party for review 
and add its citation to the Legislative Action Plan. 
- Please provide an action plan on th e implementation of this commitment. 
- Since implementation is foreseen in 2014, we request that the commitment on 
this point included in the text of Workin g Party Report will be from the date of 
accession. 
Answer: 
The Afghan Customs Department is finalizing the revised fee structure and is committed to have a 
new fee structure that is WTO compliant.  This is expected to be completed soon.  We will update 
you during the next working party meeting in July 2013.  Draft legislation will be prepared to 
reflect changes to the fee structure.  We will include in the legislative action and provide for your review.  The changes will come into force with the new fiscal year in 2014.   
Afghanistan accepts commitment in the Working Party report that the new fee structure for 
customs storage will be consistent with WTO and will  come into force from the date of accession.   
Question 57 The replies to Questions 59 and 60 of  document WT/ACC/AFG/17 describe 
discrimination and the use of ad valorem  fees in the application of fees for licenses for 
the importation of medicines and medical equipm ent.  This violates Articles III, VIII and 
XI (in addition to a fee not commensurat e with the cost of services rendered, 
discrimination against imports by non-Afghan companies).   
- Afghanistan needs to revise its fees fo r import permits for medicines and medical 
equipment prior to accession to bring them  into conformity with WTO provisions. 
Answer: 
The fee for an import permit from the Ministry of Public Health to import pharmaceuticals and 
medical equipment, cosmetics, and pharmacy tools is 0.075% of value of import consignment.  
Afghanistan recognizes that this fee is inconsis tent with WTO GATT Agreement and will adjust prior 
to WTO accession to reflect the actual cost of services rendered for issuing this import permit.  
A fixed fee will be set.  WT/ACC/AFG/27 
 
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  Question 58 
The reply to Question 62 of document WT /ACC/AFG/17 confirms that the fee for an 
import licence for telecommunications equipment is based on a sliding ad valorem  scale 
with a maximum of US$500. 
- Please indicate specifically how a fee calibrated to the cost of the imported good 
can be commensurate with the cost of the service of providing import licenses for 
imported telecommunications equipment. 
- Please revise the fee to cover only th e precise cost of issuing the licence, as 
Article VIII of the GATT 1994 would require. 
Answer: 
The calibrated fee structure (with floor and ceiling) for the import permit for telecommunications 
equipment is no longer applicable.  Afghanistan no longer issues permits for telecommunications 
equipment imported without a licence. 
Question 59 
Table 7(a) of WT/ACC/SPEC/AFG/3 indicates that Afghanistan requires import licenses 
for the following goods:  pharmaceutical s, medical equipment and cosmetics, and 
pharmacy tools; veterinary medical instru ments, veterinary drugs and biological 
materials; printed books, brochures, le aflets, and other printed matters; films; 
telecommunications equipment; armoured ve hicles; arms, ammunitions, and military 
equipment; precursors and narcotic chem icals; endangered species; and ozone 
protection.  Fees are charged, however, on ly for licenses for pharmaceuticals, medical 
equipment and cosmetics, and pharmacy tools; films; and telecommunications 
equipment.   
- This implies that the fees charged are no t actually related to the cost of issuing 
the licence, since no fee is required for most licensed products. 
- Please review the fee structure for impo rt permitting and describe how the fees 
are consistent with the cost of issuing them. 
Answer: 
The licensing/permit/approval requirements listed in Table 7(a) of WT/ACC/SPEC/AFG/3 are not all 
issued by the same ministry.  They are issued by different ministries.  The fact that some 
ministries have opted not to charge any fees does not imply that the fees charged by other 
ministries are not related to the cost of issuing the licence or there are no services rendered. 
As for those ministries which are charging fees:  1. Ministry of Public Health: fee for import permit for Pharmaceuticals, medical equipment 
and cosmetics, and pharmacy tools.  We have  recognized that the 0.075% is inconsistent 
with the WTO requirements.  This will be replaced by the date of accession with a fixed fee reflective of the cost of services rendered. 
2. Ministry of Information and Culture: fee for import approval of films.  This fee has been 
changed to be in line with the WTO requirements.  There is currently one fixed fee of US$60 applicable to all countries.  Additional US$10 for board review is also charged. 
3. The Ministry of Communications and Informat ion Technology:  the fee for import licence 
and (resell) for telecommunications equipmen t is US$2,000 annually.  ATRA issues this 
licence.  The fee is meant to reflect the cost s of services rendered by ATRA/Ministry of 
Communications and Information Technology (MCIT) related to this licence which include 
the cost associated with issuance of the lic ence and confirmation of equipment, when 
requested by customs, at the time of importation to ensure that they are in accordance with the licence. WT/ACC/AFG/27 
 
- 26 - 
 
  Fees related to obtaining a one-time permit for telecommunications equipment imported without 
an import licence are no longer valid. 
Such permit for telecommunications is no longer provided.  Importers of telecommunications 
equipment for reselling in domestic market must obtain an import licence. 
Please change the following entry in Table 7 (a) of WT/ACC/SPEC/AFG/3: 
Telecommunications 
equipment Import permit or import 
licence from the Ministry of 
Communications and Information Technology  For import permit with no 
import licence: 
- 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. 
For import licence:  US$2,000 
annually  One year; permit is 
for single import 
transaction; licence 
for multiple import 
transactions 
Question 60 
Article 11 of the draft Law on Foreign Trade in  Goods deals with the application of fees 
to imported goods.  It states: 
Article 11 - Trade-Related Fees 11.1 No fees (other than duties and ta xes) may be imposed on foreign trade 
activities except for services rendered.  In such cases, fees shall reflect the 
approximate cost of services rendered and shall not be ad valorem. 
11.2 Fees imposed for services rendered shall not be collected for the purpose 
of fiscal revenue but rather to cover op erational and modernization costs of the 
state body rendering the service. 
11.3 All fees related to trade shall be approved in advance by the Council of 
Ministers. 
We do not believe that this part of the draf t law is consistent with WTO provisions, and 
in particular the provisions of Article V III of the GATT 1994 in the following ways:  
Article VIII:1(a) requires that fees be lim ited "to the approximate cost of services 
rendered".  This means the cost of the cust oms operations for the individual entry in 
question, not general costs (i.e., "operational  and modernization costs") associated with 
maintaining the customs service. 
We suggest amendments to the draft law as follows: 
- Article 11:1 should make clear that  the "approximate cost of services 
rendered" is in connection with th e import or export of a good. 
- Article 11:2 should be amended to in dicate that the purposes of the fees, 
consistent with Article VIII of the GATT 1994, is not to cover the 
operational and modernization costs of the state body rendering the 
service, but rather "to cover operat ional and modernization the costs of WT/ACC/AFG/27 
 
- 27 - 
 
  the state body of rendering the servic e in connection with the import or 
export of a good". 
Answer: 
The proposed changes have been accepted and in corporated into the Draft Law on Foreign Trade 
in Goods. 
Question 61 Paragraph 70 of document WT/ACC/SPEC/AFG/3 :  Please add this draft commitment 
text at the end of the section as a plac eholder until we can determine how many of 
Afghanistan's fees need amendment to be WTO consistent: 
Paragraph 70 bis.  The representative of Afghanistan confirmed that his 
Government would revise its legislation on  its fees for customs storage to ensure 
that by 1 July 2014 the application of these fees was in accordance with 
Article VIII of the GATT 1994.  He further confirmed that the fees for licenses to 
import medicines and medical equipm ent and telecommunications equipment 
would be revised to conform to WTO pr ovisions, and that from the date of 
accession any fees or charges imposed on  or in connection with importation and 
exportation, would be applied in acco rdance with the provisions of the 
WTO Agreement, including Articles I and VIII of the GATT 1994.  The Working 
Party took note of this commitment. 
Answer: 
Afghanistan accepts this commitment. 
- Application of Internal Taxes to Imports 
Question 62 Article II of the GATT 1994 states that impo rts from WTO Members shall be exempt from 
"ordinary customs duties in excess of those set forth and provided" for in the Schedule 
attached to the protocol of WTO Members.  Fo r acceding countries, that is their Protocol 
of Accession and the negotiated tariff bindings  entered in the attached Goods Schedule.  
That means that all/all charges on imports that are not tariffs listed in the schedule 
must be either (a) domestic taxes; (b) AD/CVD or Safeguard charges; (c) fees for services rendered; or (d) ODCs. 
Afghanistan maintains charges on imports that it  has styled as "taxes."  These include:  
- The "fixed tax" of 2% and 3% of the customs duty and customs value of 
imported goods on imports; and the Business Receipt Tax (BRT) of 2% of the customs duty and customs value of imported goods.  
- These charges clearly are customs duti es as defined by the GATT and WTO and 
therefore must be eliminated, converted to internal taxes equally applied to 
domestic goods, or incorporated into Afgh anistan's tariff schedule at the time of 
accession. 
- This must be legally accomplished prior to finalization of Afghanistan's accession 
package.  
Answer: 
A BRT of 2% is applied on imports.  A BRT of 2% is also applied on the total gross income (sales) 
of domestic legal persons.  As such, a 2% BRT is indirectly applied on domestic goods.  Afghanistan does not view BRT to be in violation of GATT Article III.   
The "fixed tax" of 2% and 3% of the customs duty and customs value of imported goods on 
imports is simply a prepayment of importers' tax liability.   WT/ACC/AFG/27 
 
- 28 - 
 
  That said, we will further look into the fixed tax matter in the coming weeks and report any 
decisions in this regard during the next working party meeting.   
Question 63 Paragraph 74 of document WT/ACC/SPEC/AFG/3 :  We cannot agree to treat the "fixed 
tax" as an advance payment against income tax liability of the trader.  First, if the trader 
has no such liability, he cannot take the credit .  Second, such charges on imports, even if 
eligible for credit or rebate, are, at first instance, customs duties that must be included 
in the Schedule as bound duties. 
- Afghanistan needs to revise its plan on bringing these charges into line with WTO 
provisions.   
- Please provide an explicit action plan/t ime line, backed up by draft legislation 
that has been submitted for parliamentary action prior to completion of the 
accession negotiations, that lays out Af ghanistan's plan for (a) eliminating the 
fixed tax and (b) either incorporating it in the customs tariff or substituting an 
equally applied domestic tax on goods. 
Answer: 
Afghanistan's tax collection system is still weak and not effective and needs further development.  
Advance payment of taxes at the time of importation has been the mechanism to ensure collection 
of income tax liability of traders.   
Question 64 Paragraph 75 of document WT/ACC/SPEC/AFG/3:  Afghanistan has stated that "the BRT 
would be replaced by value added tax wh ich would apply equally to domestic and 
imported goods". 
- Please provide an explicit action plan/t ime line, backed up by draft legislation 
that has been submitted for parliamentary action prior to completion of the 
accession negotiations, that lays out Af ghanistan's plan for (a) eliminating the 
BRT; and (b) establishing a VAT, indicating the date of its implementation, its 
level, and its scope of application. 
Answer: 
The VAT Law was approved by the Council of Ministers in May 2013.  It will be submitted to the 
parliament in July 2013. It is expected to be adopted and to come into force before the end of 
2013.  The level of VAT will be 10% and will apply equally on taxable goods, services, and imports.  
A copy of the Draft VAT Law will be submitted to Working Party Members.   
A BRT of 2% is applied on imports.  A BRT of 2% is also applied on the total gross income (sales) 
of domestic legal persons.  As such, a 2% BRT is indirectly applied on domestic goods.  
Afghanistan does not view BRT to be in violation of GATT Article III. 
Question 65 
Paragraph 75 of document WT/ACC/SPEC/AFG/3 :  Please add this draft commitment 
text at the end of the section: 
75bis. The representative of Afghanistan confirmed that from the date of 
accession Afghanistan's laws, regulations an d other measures relating to internal 
taxes and charges levied on imports wo uld be in full conformity with its 
WTO obligations, including Article III of the GATT 1994, and that it would implement such laws, regulations and ot her measures in full conformity with 
those obligations.  The Working Party took note of these commitments. WT/ACC/AFG/27 
 
- 29 - 
 
  Answer: 
Afghanistan accepts this commitment. 
- Quantitative Import Restrictions, incl uding Prohibitions, Quotas and Licensing 
Systems 
Question 66 
Paragraph 76 of document WT/ACC/SPEC/AFG/3:  Please clarify the difference, legally, 
in Afghanistan, between "medicines" and "pharmaceuticals". 
Answer: 
The Law on Medicine dated 18 November 2008 defines medicines as follows: 
A chemical and physiological substance which is used for diagnosing and treatment of 
human and animal diseases and protection against them. 
There is no legally defined term in Afghan legislation for pharmaceuticals.  Medicines and 
pharmaceuticals have been used interchangeably in previous WTO communications (in questions and replies).  Please replace "pharmaceuticals" wi th "medicines" throughout WT/ACC/SPEC/AFG/3.    
In paragraph 77, the legal citation should read "C ouncil of Ministers Regulation on Production and 
Import of Medicines and Medical Equipment of 19 February 2007".  
Question 67 
The reply to Question 54 of document WT/ACC/ AFG/17 states that:  "Afghanistan will 
update Import Licensing Question naire and expand WT/ACC/AFG/10". 
- As of this writing, no such update a ppears to exist.  When can we expect it? 
- Please include information as promised in the reply to Question 54 and on 
revised legislation (e.g., the Draft Law on Foreign Trade in Goods) in the replies 
to the import licensing procedures questionnaire, when it is revised and circulated. 
Answer: 
WT/ACC/AFG/10 is being further revised to cover Ac tivity licence to import medicines and medical 
equipment and import approval for printed books,  brochures, leaflets, and other printed matters.  
It will be sent to the WTO Secretariat in June 2013.  The Draft Law on Foreign Trade in Goods has 
been submitted to the WTO for review. 
Question 68 The reply to Question 57 of document WT/ACC/AFG/17 states that:  "Companies 
engaged in importation of medicine an d other medical equipment cannot operate 
without pharmacist."   
- Is it required that the pharmacist be from Afghanistan?  What are the 
requirements for the pharmacist, e.g., ca n he be a foreign certified pharmacist? 
Answer: 
It is not required that the pharmacist be from Afghanistan.  
A foreign certified pharmacist may practice in Afghanistan without any special requirements by the 
Ministry of Public Health. WT/ACC/AFG/27 
 
- 30 - 
 
  Question 69 
Table 7(a) and 7(b) and WT /ACC/AFG/10 list goods subj ect to import permits or 
l i c e n s e s .   P a r a g r a p h  7 6  o f  d o c u m e n t  W T / A C C / S P E C / A F G / 3 ,  h o w e v e r ,  l i s t s  a d d i t i o n a l  goods, indicating that these tables are no t comprehensive:  licenses also are necessary 
to import arms, ammunitions, military eq uipment; medicine an d medical equipment 
(separate from the requirements for pharma ceuticals, medical equipment, cosmetics 
and pharmacy tools); pesticides and agro chemicals; seeds; and printed books, 
brochures, leaflets, and other printed matters. 
- Who issues these permits or licenses?  Are there activity licenses necessary in 
addition to import permits or licenses?   
- Please describe how licensing is operated for these goods. 
- Are there fees associated with the issuance  of these permits and licenses?  If so, 
provide information on them. 
- Please expand Table 7(a) as necessary  to cover all goods for which import 
permits or licenses are necessary. 
- Please update WT/ACC/AFG/10 to include reference to the goods listed in 
paragraph 76  of document WT/ACC/SPEC/AFG/3. 
- Please confirm that no other goods than  those listed in Table 7(a) and 7(b) and 
in paragraph 76 require a licence for cust oms clearance in the normal course of 
trade.  
Answer: 
All goods subject to licensing and permits in paragraph 76 of document WT/ACC/SPEC/AFG/3 are 
listed in Table 7(a).  Table 7 (a) is complete. Afghanistan confirms that no other goods than those listed in Table 7(a) and 7(b) and in paragraph 76 require a licence for customs clearance in the 
n o r m a l  c o u r s e  o f  t r a d e .   A s  i n d i c a t e d  i n  p r e v ious communications, agrochemicals, seeds, and 
pesticides are not subject to licenses or permits. This is discussed in paragraph 76 of WT/ACC/SPEC/AFG/3. 
The entities in charge of issuing licenses and pe rmits for importer are listed in Table 7(a).  There 
are no activity licences in addition to import permits or licenses except for the import of medicines as described in paragraph 62 of  WT/ACC/SPEC/AFG/3.  Licenses/permits are received prior to 
importation from respective entities and must be provided to customs authorities at the time of 
importation. 
Not all entities require fees for issuance of lice nses/permits.  The applicable fees are listed in 
Table 7(a). 
WT/ACC/AFG/10 is being updated to include information regarding licence for importing medicine 
and medical equipment and import approval for printed books, brochures, leaflets, and other 
printed matters.  Revised WT/ACC/AFG/10 will be shared with Working Party Members in 
June 2013. 
Question 70 Paragraph 84 of document WT/ACC/SPEC/AFG/3:  Article 10 of the draft foreign trade 
laws states that:  "The Competent Author ity shall develop rules and procedures on 
automatic and non-automatic licensing with respect to imports or exports.  Such rules 
and procedures shall be in accordance with  Afghanistan's international agreements and 
with the governing principles established in this Law".  Article 9 indicates that all 
licensing is applied in accordance with Article 10. 
- Article 10 operationalizes this law.  When  will the rules and procedures referred 
to be available for Working Party review? 
- Please provide a status report on the draft Law on Foreign Trade and when its 
provisions will be implemented.   WT/ACC/AFG/27 
 
- 31 - 
 
  We look forward to reviewing the revised WT/ACC/AFG/10 and to reviewing the 
legislation that establishes WTO-consistent  procedures for the application of these 
requirements. 
Answer: 
Rules and procedures on automatic and non-automatic licensing with respect to imports or exports 
are currently being drafted and will be shared with Working Party Members in June 2013. 
The draft Law on Foreign Trade will be submitted to MOJ in June 2013. 
Question 71 
Paragraph 84 of document WT/ACC/SPEC/AFG/3 :  Please add this draft commitment 
text at the end of the section: 
84bis.  The representative of Afghanista n confirmed that from the date of 
accession  Afghanistan would eliminate and would not introduce, re-introduce or 
apply quantitative restrictions or other non-tariff measures on imports, such as 
licensing, quotas, bans, permits, prior authorization requirements, licensing 
requirements, and other restrictions havi ng equivalent effect, that cannot be 
justified under the provisions of the WTO Agreement.  In this regard, Afghanistan 
eliminated its import prohibition on cotton seed, table salt, powdered salt, 
gypsum, anhydride, and plasters prio r to accession to the WTO.  If 
balance-of-payments measures were nece ssary, Afghanistan would impose them 
in a manner consistent with the relevant  WTO provisions, including Article XII 
and Article XVIII of the GATT 1994 and the Understanding on 
Balance-of-Payments Provisions of the GATT 1994.  He further confirmed that the 
legal authority of the Government of Af ghanistan to ban, prohibit, or suspend 
imports and exports or to apply licensing re quirements that could be used to ban, 
prohibit, suspend or otherwise restrict the quantity of trade would be applied 
from the date of accession in conformity with the requirements of the WTO.  
The Working Party took note of these commitments.  The Working Party took 
note of these commitments. 
Answer: 
Afghanistan accepts this commitment with the proposed change in brackets. 
84bis.  The representative of Afghanistan confirmed that from the date of accession 
Afghanistan would eliminate and would not introduce, re-introduce or apply quantitative 
restrictions or other non-tariff measures on imports, such as licensing, quotas, bans, permits, prior authorization requirements, licensing requirements, and other restrictions 
having equivalent effect, that cannot be justified under the provisions of the 
WTO Agreement.  In this regard, Afghanistan eliminated its import prohibition on cotton seed, table salt, powdered salt, gypsum, anhydr ide, and plasters prior to accession to the 
WTO.  If balance-of-payments measures were  necessary, Afghanistan would impose them 
in a manner consistent with the relevant WTO provisions, including Article XII and Article XVIII of the GATT 1994 and the Understa nding on Balance-of-Payments Provisions 
of the GATT 1994.  He further confirmed that the legal authority of the Government of 
Afghanistan to ban, prohibit, or suspend imports and exports or to apply licensing 
requirements that could be used to ban, prohibit, suspend or otherwise restrict the quantity of trade would be applied from the date of accession in conformity with the 
requirements of the WTO [and Afghanistan's te rms of accession].  The Working Party took 
note of these commitments.  The Working Party took note of these commitments. WT/ACC/AFG/27 
 
- 32 - 
 
  - Customs Valuation 
Question 72 We thank Afghanistan for its replies to our questions in WT/ACC/AFG/6/Rev.2 and 
WT/ACC/AFG/17, and the additional edits in WT/ACC/SPEC/AFG/3/Corr.1.   
We suggest the inclusion of the following draft commitment text at the end of this 
section: 
xx. The representative of Afghanistan confirmed that, as from the date of 
accession, Afghanistan would apply the WTO provisions concerning customs 
valuation, including the Agreement on th e Implementation of Article VII of the 
GATT 1994 and Annex I (Interpretative Note) and paragraph 2 of the Decision on Valuation of Carrier Media Bearing Soft ware for Data Processing Equipment 
(Decision No. 4.1), providing that valuat ion of software was based on the value 
of the media.  He stated that Afghanistan would not use any form of reference or 
minimum prices or fixed valuation schedule s for the valuation of imports and that 
all methods of valuation used were in co nformity with those provided for in the 
WTO Agreement on the Implementation of Article VII of the GATT 1994.  The Working Party took note of these commitments. 
Answer: 
Afghanistan accepts this commitment with the proposed changes in brackets: 
xx. The representative of Afghanistan confirmed that, as from the date of accession, 
Afghanistan would apply the WTO provisions concerning customs valuation, including 
the Agreement on the Implementation of Article VII of the GATT 1994 and Annex I 
(Interpretative Note) and paragraph 2 of the Decision on Valuation of Carrier Media Bearing Software for Data Processing Equipment (Decision No. 4.1), providing that 
valuation of software was based on the value of the media.  He stated that [all methods of 
valuation used were in conformity with those provided in the WTO Agreement on the 
Implementation of Article VII of the GATT 19 94; that] provided Afghanistan would not use 
any form of reference or minimum prices or fixed valuation schedules for the valuation of 
imports [; and that any valuation database established by Customs would be used only as 
a risk assessment tool or for other purposes consistent with the WTO Agreement and the 
World Customs Organization guidelines regard ing the same.] [all methods of valuation 
used were in conformity with those pr ovided for in the WTO Agreement on the 
Implementation of Article VII of the GATT 199 4.]  The Working Party took note of these 
commitments. 
- Rules of Origin 
Question 73 We suggest the inclusion of the following draft commitment text at the end of this 
section: 
xx.  The representative of Afghanistan st ated that, from the date of accession, 
Afghanistan's laws and regulations for pref erential and non-preferential rules of 
origin would comply fully with the WTO Ag reement on Rules of Origin.  He further 
confirmed that Afghanistan's rules of origin would be notified to the 
WTO Secretariat and the Committee on Rules of Origin by that time.  The requirements of Article 2(h) and Annex II, paragraph 3(d) of the Agreement 
would be fully implemented from the date of accession and Afghanistan's 
Customs Authorities would provide for an assessment of the origin of the import 
upon the request of an exporter, importer or any person with a justifiable cause.  
Any request for such an assessment would be accepted even before trade in the 
goods concerned began.  Any such assessm ent would be binding for three years.  
The Working Party took note of these commitments. WT/ACC/AFG/27 
 
- 33 - 
 
  Answer: 
Afghanistan accepts this commitment. 
Question 74 Paragraphs 101 and 102 of document WT/ACC/SPEC/AFG/3:   
- What sort of services might the ACCI provide for importers,  and what charges 
might there be for these services? 
- What, if any, mandatory services mu st importers procure from the ACCI? 
Answer: 
ACCI does no charge any fees with respect to imports. 
ACCI does not provide any services which are mandatory for importers. - Anti-dumping, Countervailing Duty and Safeguard Regimes 
Question 75 
Afghanistan has stated that it does not curre ntly have explicit legal authority to apply 
trade remedy measures for anti-dumping, co untervailing duty cases, or safeguards, but 
that such legislation is under preparation or consideration. 
We suggest editing the current text better de scribe the current situation and to state 
clearly what currently is available for Afghanistan. 
107. The representative of Afghanistan stated that at present Afghanistan 
currently did not have anti-dumping, co untervailing duty and safeguard laws.  He 
added that Afghanistan intended to de velop WTO-consistent legislation on 
anti-dumping, countervailing duty and sa feguard measures and that measures 
would be applied and notified in accord ance with respective WTO Agreements 
and that any existing or future authority to restrain imports would be used in a 
WTO-compatible manner.  In reply to a ques tion if any legal authority to restrain 
imports for balance of payments, commerc ial or competitive reasons existed in 
Afghanistan, the representative of Afghan istan explained that said Article 3(46) 
of the Draft Amendments to the Customs Law of 2005 provided a defined ition of 
and authorized the application of "co mmercial policy measures" including which 
meant the imposition of quotas, ceilings , countervailing duties on subsidized 
foreign goods, anti-dumping duties, or si milar provisions for advancing national 
(keshwar) commercial interests.  The resp onsibility for implementation of such 
measures rested with the Customs Authority.  Article 65 of the Draft 
Amendments to the Customs Law of 2005 required that any release of goods for 
free circulation would be subject to verifi cation of whether or not application of 
commercial policy measures had been applied, completion of all other 
requirements for importation of goods, and the collection of the customs debt.  
The Customs Authority would be responsible for the application 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 and no other entity had 
been designated to implement this authority to apply "commercial policy 
measures provision".  The representative of Afghanistan stated that Afghanistan 
would administer and apply commercial policy measures in conformity with 
respective WTO agreements.  
108. The representative of Afghanistan st ated that at present Afghanistan did 
not have anti-dumping, countervailing duty  and safeguard laws.  He added that 
Afghanistan intended to develop WTO-co nsistent legislation on anti-dumping, 
countervailing duty and safe guard measures and that measures would be applied WT/ACC/AFG/27 
 
- 34 - 
 
  and notified in accordance with resp ective WTO Agreements and that any 
existing or future authority to rest rain imports would be used in a WTO-
compatible manner.  Afghanistan was still considering whether or not to 
establish specific laws on anti-dumping  or countervailing duties and He further 
noted that a draft Law on Safeguards wa s being developed and would be shared 
with the Working Party in the first quarte r of 2013.Aa final decision regarding the 
adoption of laws related to anti-dumpi ng and countervailing measures prior to 
WTO accession had not yet been made.  He further noted that a draft Law on 
Safeguards was being developed and had b een shared with the Working Party.  
Once enacted, Afghanistan's laws rela ted to safeguards, anti-dumping, and 
countervailing duties will be administer ed by the Ministry of Commerce and 
Industries. 
108bis.  The representative of Afghanistan confirmed that Afghanistan would not 
apply any anti-dumping, countervailing or safeguard measures until it had 
implemented and notified appropriate laws in conformity with the provisions of 
the WTO Agreements on these matters.  Afghanistan would ensure the full 
conformity of any such legislation with  the relevant WTO provisions, including 
Article VI and XIX of the GATT 1994 and the Agreement on the Implementation 
of Article VI, the Agreement on Subs idies and Countervailing Measures and 
the Agreement on Safeguards.  After such legislation was implemented and 
notified, Afghanistan would only apply any anti-dumping duties, countervailing 
duties and safeguard measures in full conformity with the relevant 
WTO provisions.  The Working Party took note of these commitments.  
Answer: 
Afghanistan accepts all suggested changes in paragraphs 107 and 108 and accepts the proposed 
commitment paragraph. 
B. EXPORT REGULATIONS 
- Customs Tariffs, Fees and Charges for Services Rendered, Application of Internal 
Taxes to Exports 
Question 76 Paragraph 109 of document WT/ACC/SPEC/AFG/3  states that "a business licence issued 
by the Ministry of Commerce and Industries was required and granted the right to 
export. The same procedures and requirem ents for obtaining a business licence for 
import applied for export". 
- Please clarify in the "Customs tariffs, f ees, etc." subsection of the Working Party 
report text on Export Regulations whether exports are subject to the "fixed tax" of 2% and 3% of the duty-paid customs value. 
Answer: 
Only exports which are subject to export duties ar e subject to the fixed tax of 2% and 3% of the 
duty-paid customs value. 
Question 77 
Paragraph 116 of document WT/ACC/SPEC/AFG/3:  We note that this paragraph 
confirms that the Business Receipts Tax (BRT) at 2% of the value of the exported good 
is also applied. 
If so, and for the same reasons articulated in the our comments on the chapter on 
Import Regulation, these charges clearly are customs duties as defined by the 
GATT 1994 and WTO and therefore either must (a) be incorporated into Afghanistan's WT/ACC/AFG/27 
 
- 35 - 
 
  export tariff schedule, (b) conv erted to internal taxes equally applied to domestic goods, 
or (c) eliminated.   
- Please ensure that this has been lega lly accomplished prior to finalization of 
Afghanistan's accession package.  
- Please provide an explicit action plan/t ime line, backed up by draft legislation 
that has been submitted for parliamentary action prior to completion of the accession negotiations, that lays out Af ghanistan's plan for (a) eliminating the 
fixed tax and (b) either incorporating it in the customs tariff (in this case, for 
exports) or substituting an equally applied domestic tax on goods. 
In this regard, please clarify in the text  whether Afghanistan rebates domestic taxes 
applied directly to goods (e.g., excise ta xes) upon export, and whether VAT revenues 
would also be rebated upon export of domest ic goods, after the VAT is established. 
Answer: 
There are no excise taxes on exports. 
The VAT law envisions rebating VAT upon export of domestic goods. 
Paragraph 116 needs to be amended to eliminate that BRT is applied on exports. The "fixed tax" of 2% and 3% of the customs duty and customs value of exported goods (only 
those subject to export duties) on exports is si mply a prepayment of exporters' tax liability. 
That said, we will further look into the fixed tax matter in the coming weeks and report any 
decisions in this regard during the next Working Party Meeting. 
Question 78 
Paragraph 113 of document WT/ACC/SPEC/AFG /3:  This paragraph and the reply to 
Question 88 of document WT/ACC/AFG/17 ma ke it clear that the requirement for 
certification of export documents is a ma ndated expenditure for exporters for the 
purpose of supporting the ACCI.  It is irre levant that the fee for this "service" is 
ad valorem .  Changing it to a fixed fee will not/not improve its consistency with the 
provisions of Article VIII of the GATT 1994. 
- Please confirm that Afghanistan will e liminate any mandatory certification of 
export invoices by the ACCI and ensure that any export fees either charged or mandated by the Government of Afghanista n are related to the cost of an actual 
service, no later than upon accession to the WTO. 
Answer: 
Mandatory certification of export invoices by the ACCI has been eliminated.  
Question 79 
Paragraph 114 of document WT/ACC/SPEC/AFG /3:  This paragraph and the reply to 
Question 87 of document WT/ACC/AFG/17 ma ke it clear that the requirement for a 
certificate of origin for exports, whether or not necessary for importation by the 
receiving country, and the fees charged, ar e not a "service" but rather a mandated 
expenditure for exporters for the pu rpose of supporting the ACCI.   
- Notwithstanding that the fee is not ad valorem , such a mandatory charge for a 
document, if not required for trade, is no t consistent with Articles VIII or XI, and 
should be revised to make the "service" optional to the exporter, not mandatory, 
prior to accession. WT/ACC/AFG/27 
 
- 36 - 
 
  Answer: 
The certificate of origin for export is no longer mandatory.  
Question 80 Paragraph 116 of document WT/ACC/SPEC/AFG/3 states that:  "The representative of 
Afghanistan also said that there was a fixed tax of 2% on all re-exports". 
- Please explain how "re-exportation" work s and why there is a charge of 2% on 
these goods. 
Answer: 
Re-exporting means exporting foreign goods which were imported to Afghanistan and have paid all 
import duties and taxes.  The process of re-exporti ng is the same as exporting.  The 2% fixed is 
for revenue purpose. 
Question 81 
The information provided in this section is not arranged consistently with the 
subheadings.  We provide a suggested re-arr angement of the text.  Whether or not our 
re-arrangement of the text accepted, we request that Afghanistan ensures that the 
information is correctly sorted among the headings. 
B. EXPORT REGULATIONS 
109. The representative of Afghanistan said that a business licence issued by 
the Ministry of Commerce and Industries was required and granted the right to 
export.  The same procedures and requirements for obtaining a business licence for import applied for export.  
110. He noted that a legal person or sole proprietor could apply for a business 
licence for export which was granted in  all cases.  He said that export 
authorization at MoCI was a formality and it had been eliminated.  
111.  (Originally paragraph 115 in DWPR) In 2011, the One-Stop-Shop (OSS) 
for export was established which centralized  the location for issuing most of the 
required export documents.  It was lo cated at the Customs Internal Customs 
Depot (Customs House) in Kabul.  There is no legal document establishing the 
export OSS but a Memorandum of Unde rstanding was signed among relevant 
ministries, state bodies, and associations .  The representative of Afghanistan 
provided a list of mandatory documents fo r exportation.  In addition to the 
exporters Business Licence, these included :  a certificate of origin; a commercial 
invoice; certification if exporting plants, plant products, animals, animal 
products, or seeds; and authorization from  the appropriate Mini stry if exporting 
scrap metals or minerals (see Table 10).  He also and said that exporters had the 
option of obtaining these documents at  the OSS (for ministries which had a 
representative at the OSS) or from the relevant ministry.  In addition, in order, 
he noted that the following documents were required to clear Customs for 
export: , a customs declaration, packing lis t and bill of lading would be required. 
- Customs Tariffs, Fees and Charges fo r Services Rendered, Application of 
Internal Taxes to Exports 
109. The representative of Afghanistan said that a business licence issued by 
the Ministry of Commerce and Industries was required and granted the right to 
export.  The same procedures and requirements for obtaining a business licence 
for import applied for export.  WT/ACC/AFG/27 
 
- 37 - 
 
  110. He noted that a legal person or sole proprietor could apply for a business 
licence for export which was granted in  all cases.  He said that export 
authorization at MoCI was a formality and it had been eliminated. 
111.  The representative of Afghanistan stat ed that approvals by other bodies 
were still required for all minerals; ha ndicrafts (to check if antique); scrap 
metals; used glass, plastics and coal; pr inted books; brochures ; leaflets and other 
printed matters (Law on Media of 6 July  2005); and films.  Currently, there was 
only an export approval measure to dete rmine if handicrafts were antique.  If 
they were not, an export certificate wa s granted and a fee of 5 per cent of the 
value of the invoice was charged.  Deta ils of current export measures and the 
related fees, ministries and agencies involv ed were provided in Table 9.  He noted 
that the following export measures were  no longer mandatory:  (i) Karakul - 
export authorization from Karakul In stitute; (ii) handicrafts - export 
authorization from Handicraft Promotion Center; (iii) carpets, rugs and felts - 
export authorization from the Carpet Ex porter and Producers Guild;  and (iv) 
fresh fruits, dried fruits and vegetables - quality certificate issued by the Afghan 
Raisin, Fruits and Vegetables Promotion Association.  In reply to a specific 
question, he said that authorizations gr anted for export of scrap metals were 
automatic. 
112.  With regard to export authorization for animal products (skins, wools, and 
intestines), the representative of Afghanis tan said that the Industrial Commercial 
Services Association for Animal and Plant Products conducted visual inspection of 
exported goods to ensure that they were  in good condition/quality and were well 
packaged.  The objective was to collect export statistics and to ensure that 
Afghan exports were of high quality in order to maintain reputation for Afghan 
exports.  Certain animal and plant produc ts were registered at the Industrial 
Commercial Services Association.  Such  registration for Member of the 
Association as well as the visual inspection were voluntary and not related to 
sanitary or phytosanitary requirements .  The representative of Afghanistan 
confirmed that the same criteria and ob jectives applied for securing export 
authorization for carpets and rugs from the Carpet Exporter and Producers Guild 
and export authorization for handicrafts from the Handicraft Promotion Centre. 
113.  The purpose of export authorization from the Ministry of Mines for all 
minerals (Mineral Law of 11 August 2005)  was to ensure that producers paid 
royalty to the treasury.  The ACCI cert ified all export invoices and charged 
0.1 per cent of the value of exported good s.  In reply to a specific question, the 
representative of Afghanistan confirmed that a certification of invoice by the 
ACCI was mandatory.  He said that Afghan istan would adjust this fee to reflect 
the cost of services rendered no late r than upon accession to the WTO.   
114.  In addition, the ACCI issued certificat es of origin (COO) for exports, at a 
fee of AF 50 (around US$1) for Indi a and AF 300 (around US$6) for other 
countries.  The representative of Afghanis tan stated the COO fees were below the 
cost of services rendered.    
115.  In 2011, the One-Stop-Shop (OSS) for export was established which 
centralized the location for issuing most of the required export documents.  It 
was located at the Customs Internal Customs Depot (Customs House) in Kabul.  
There is no legal document establishing  the export OSS but a Memorandum of 
Understanding was signed among rele vant ministries, state bodies, and 
associations.  The representative of Af ghanistan provided a list of mandatory 
documents for exportation (see Table 10) an d said that exporters had the option 
of obtaining these documents at th e OSS (for minist ries which had a 
representative at the OSS) or from the re levant ministry.  In addition, he noted 
that the following documents were requir ed to clear Customs for export: customs 
declaration, packing list and bill of lading. 
112.  (Paragraph 116 in DWPR) The representa tive of Afghanistan stated that 
Afghanistan did not have many export duties  or export taxes except for:  (i) iron WT/ACC/AFG/27 
 
- 38 - 
 
  ores and concentrates including roaste d iron pyrites; (ii) unprocessed and 
processed marble; (iii) minera ls; (iv) natural or cultured pearls and precious or 
semi-precious stones; and (v) waste or scra p metal (see details of export duties 
in Table 11).  Afghanistan was prepared to  negotiate binding levels for its export 
duties.  Other The export taxes applied on  those products were:  (i) fixed tax of 
2 per cent when exporting with a busine ss licence; (ii) fixed tax of 3 per cent 
when exporting without a business licen ce; and (iii) the Bu siness Receipts Tax 
(BRT) at 2 per cent.  Collected fixed taxes applied against the tax liability of the 
trader and could be claimed as credit in  the calculation of the trader's annual 
income tax assessment.  The representati ve of Afghanistan also said that there 
was a fixed tax of 2 per ce nt on all re-exports.  
113.  (Paragraph 114 in DWPR ) The ACCI certified all export invoices and 
charged 0.1 per cent of the value of expo rted goods.  In reply to a specific 
question, the representative of Afghanis tan confirmed that a certification of 
invoice by the ACCI was mandatory.  He said that Afghanistan would adjust this 
fee to reflect the cost of services render ed no later than upon accession to the 
WTO.  In addition, the ACCI issued certif icates of origin (COO ) for exports, at a 
fee of AF 50 (around US$1) for Indi a and AF 300 (around US$6) for other 
countries.  The representative of Afghanis tan stated the COO fees were below the 
cost of services rendered.    
- Export restrictions 
114.  (Paragraph 111 in DWPR) The representa tive of Afghanistan stated that 
export authorization at MoCI was a form ality, and this requirement had been 
eliminated.s or a  Approvals by other bo dies were still required for all minerals; 
handicrafts (to check if antique); scrap metals; used glass, plastics and coal; 
printed books; brochures; leaflets and ot her printed matters (Law on Media of 6 
July 2005); and films.  The purpose of ex port authorization from the Ministry of 
Mines for all minerals (Mineral Law of  11 August 2005) was to ensure that 
producers paid royalty to the treasury.  Cu rrently, for handicrafts, there was only 
an export approval measure to determine i f  h a n d i c r a f t s  w e r e  a n t i q u e .   I f  t h e y  
were not, an export certificate was grante d and a fee of 5 per cent of the value of 
the invoice was charged.  Details of cu rrent export measures and the related 
fees, ministries and agencies involved were provided in Table 9.  He noted that 
the following export measures were no lo nger mandatory:  (i) Karakul - export 
authorization from Karakul Institute; (ii)  handicrafts - export authorization from 
Handicraft Promotion Center; (iii) carpets,  rugs and felts - export authorization 
from the Carpet Exporter and Producers Gu ild;  and (iv) fresh fruits, dried fruits 
and vegetables - quality certificate issued by the Afghan Raisin, Fruits and 
Vegetables Promotion Association.  In repl y to a specific question, he said that 
authorizations granted for export of scrap metals were automatic. 
115.  (Paragraph 112 in DWPR) With regard to export authorization for animal 
products (skins, wools, and intestines), the representative of Afghanistan said 
that the Industrial Commercial Servic es Association for Animal and Plant 
Products conducted visual inspection of ex ported goods to ensure that they were 
in good condition/quality and were well packaged.  The objective was to collect 
export statistics and to ensure that Afgh an exports were of high quality in order 
to maintain reputation for Afghan export s.  Certain animal and plant products 
were registered at the Industrial Co mmercial Services Association.  Such 
registration for Member of the Associatio n as well as the visual inspection were 
voluntary and not related to sanitary  or phytosanitary requirements.  
The representative of Afghanistan confirmed that the same criteria and 
objectives applied for securing export authorization for carpets and rugs from the 
Carpet Exporter and Producers Guild and export authorization for handicrafts 
from the Handicraft Promotion Centre. 
116.  (Paragraph 117 in DWPR) The represen tative of Afghanistan said that 
export of goods was currently subject to the procedures stipulated in the 
Business Licence Regulation of 2004.  The re presentative of Afghanistan said that WT/ACC/AFG/27 
 
- 39 - 
 
  according to Article 53 of the Customs La w, the Head of Cust oms Department had 
the authority to adopt prohibitions or rest rictions for reasons of:  public morality; 
public security; protection of the environm ent; protection of the health and life of 
humans, animals or plants; the protecti on of national treasures possessing 
artistic, historic or archaeological valu e; or the protection of industrial and 
commercial property and other state polic ies.  He noted that antiquities were 
currently prohibited from export in accordance with the Law on Preservation of 
Historic and Cultural Herit age of Afghanistan of 2004. 
117.  (Paragraph 118 in DWPR) The representa tive of Afghanistan stated that 
the export of narcotics and illegal dr ugs and the export of timber were 
prohibited.  Details of export prohibited  species of animals, plants and insects 
were provided in Table 12.  
- Export subsidies 118.  (Paragraph 119 in DWPR) The representative of Afghanistan confirmed 
that Afghanistan did not offer any reductions  in direct or indirect taxation based 
on export performance.  There were al so no government-sponsored schemes to 
promote exports through the use of subsidies. 
Answer: 
Afghanistan agrees with the proposed re-arrangement above and suggests two changes in 
paragraphs 112 and 114. 
 112. (Paragraph 116 in DWPR) The representative of Afghanistan stated that 
Afghanistan did not have many export duties or export taxes except for:  (i) iron ores and 
concentrates including roasted iron pyrites; (ii) unprocessed and processed marble; 
(iii) minerals; (iv) natural or cultured pearls and precious or semi-precious stones; and (v) 
waste or scrap metal (see details of export duties in Table 11).  Afghanistan was prepared 
to negotiate binding levels for its export duties.  Other The export taxes applied on those 
products were:  (i) fixed tax of 2 per cent when exporting with a business licence; and (ii) 
fixed tax of 3 per cent when exporting without a business licence; and (iii) the Business 
Receipts Tax (BRT) at 2 per cent.  Collected fixed taxes applied against the tax liability of 
the trader and could be claimed as credit in the calculation of the trader's annual income 
tax assessment.  The representative of Afghanistan also said that there was a fixed tax of 
2 per cent on all re-exports.  
114. (Paragraph 111 in DWPR) The representa tive of Afghanistan stated that export 
authorization at MoCI was a formality, and this requirement had been eliminated.s or a  
Approvals by other bodies were still required for all minerals; handicrafts (to check if 
antique); scrap metals; used glass, plastics an d coal; printed books; brochures; leaflets 
and other printed matters (Law on Media of 6 July 2005); and films.  The purpose of 
export authorization from the Ministry of Mines for all minerals (Mineral Law of 11 August 
2005) was to ensure that producers paid royalty to the treasury.  Currently, for 
handicrafts, there was only an export approval measure to determine if handicrafts were 
antique.  If they were not, an export certif icate was granted and a fee of 5 per cent of the 
value of the invoice was charged.  Details of current export measures and the related fees, 
ministries and agencies involved were provided in Table 9.  He noted that the following 
export measures were no longer mandatory:  (i) Karakul - export authorization from 
Karakul Institute; (ii) handicrafts - export authorization from Handicraft Promotion Center; 
(iii) carpets, rugs and felts - export authoriz ation from the Carpet Exporter and Producers 
Guild;  and (iv) fresh fruits, dried fruits and vegetables - quality certificate issued by the 
Afghan Raisin, Fruits and Vegetables Promot ion Association.  In reply to a specific 
question, he said that authorizations granted for export of scrap metals were automatic. WT/ACC/AFG/27 
 
- 40 - 
 
  C. INTERNAL POLICIES AFFECT ING FOREIGN TRADE IN GOODS 
- Industrial Policy, including Subsidies Question 82 Paragraph 121 of document WT/ACC/SPEC/AFG /3:  We understand that the Law on 
Minerals of 2005 requires the hiring of local employees.   
- Please outline these requirements. 
- Please discuss any such requirem ents for the use of local goods. 
Answer: 
The Law on Minerals of 2005 is no longer in effect. 
Question 83 Paragraphs 122-123 of document WT/ACC/SPEC /AFG/3:  We need more information on 
the Industrial Parks.   
- What law(s) authorize their establishmen t?  Have they been provided to the 
Working Party? 
- Is government-provided basic infrastruc ture the only benefit that accrues to 
firms that locate in these Industrial Parks? 
- What is the difference in criteria for es tablishment in the ol d parks from the new 
parks? 
- What does "The draft criteria for a llotment in industrial parks were being 
revised" mean?  Is allotment another word for "establishment"? 
- Are there any requirements for local hiri ng or local content in the production 
process of the firms locating  in the Industrial Parks? 
Answer: 
Afghanistan does not have a law that regulates industrial parks.  In practice, the process of 
establishing industrial is as follows: 
- AISA identifies location and land boundaries for establishing an industrial parks. 
- AISA requests the Ministry of Agriculture, Irrigation, and Livestock to allocate this piece of 
land for establishing the industrial park (letter not exceeding one page). 
- MAIL prepares a draft proposal (one page) for transferring land to AISA. - The proposal is approved by the President of Afghanistan.  As a result the land is 
transferred to AISA.  Then AISA can start the development of the industrial park. 
Government-provided basic infrastructure is the only benefit that accrues to firms that locate in 
these Industrial Parks. 
There is no difference in the criteria for establishm ent of old vs. new parks.  The reference to "old 
parks" means those which were established and administered by the Ministry of Commerce and 
Industries and the new parks are those developed and administered by AISA.  Since January 2013, all parks have become under the administration of AISA.  
Allotment is not another word for establishment.   
After the industrial park is established and infrastructure is developed, the lots within the industrial 
park are allotted to investors who submit application for establishing within the premises of the industrial park.  The criteria for allotment in industrial park were recently revised.  The criteria are 
used to evaluate application submitted by investors for allotment of lots.  The criteria are the 
following in the order of importance: WT/ACC/AFG/27 
 
- 41 - 
 
  - Job creation 
- Amount of investment - Business plan - Experience of investor in the specific field 
- Type of production 
There are no requirements for local hiring or local content in the production process of the firms 
locating in the Industrial Parks. 
Question 84 
Paragraph 124 of document WT/ACC/SPEC/AFG/3  states that:  "Export receipts were 
exempt from the Business Receipts Tax. "  However, paragraph 116 of document 
WT/ACC/SPEC/AFG/3 states that, "the Busine ss Receipts Tax (BRT) at 2%" was applied 
to exports to which export duties were applied. 
- Please clarify this point. Answer: 
The following text in paragraph 124 of document WT/ACC/SPEC/AFG/3 is correct:  "Export receipts 
were exempt from the Business Receipts Tax" is correct.  The following reference in paragraph 116 of document WT/ACC/SPEC/AFG/3 should be delete d:  "and (iii) the Business Receipts Tax (BRT) 
at 2%". 
Question 85 Paragraph 125 of document WT/ACC/SPEC/AFG /3 states that Afghanistan has legal 
authority to operate a duty-drawback system, but has not yet operationalized it.   
- We seek a commitment fr om Afghanistan that should it operate its duty 
drawback system in the future, from th e date of accession Afghanistan would 
apply its import duty exemptions and draw back practices in full conformity with 
the Agreement on Subsidies and Count ervailing Measures, in particular, 
Annexes I and II thereto. 
- This commitment should be in addition to the general commitment on prohibited 
export subsidies. 
Answer: 
Afghanistan accepts this proposed commitment. Question 86 
Paragraph 126 of document WT/ACC/SPEC/AFG /3:  We suggest the inclusion of the 
following draft commitment text at the end of this section: 
126bis. The representative of Afghanistan confirmed that from the date of 
accession his Government would not mainta in subsidies which met the definition 
of a prohibited subsidy, within the me aning of Article 3 of the Agreement on 
Subsidies and Countervailing Measures, and did not seek transitions to provide 
for the elimination of all such measures .  He further stated that Afghanistan 
would not introduce such prohibited subsidies in the future, and would apply export promotion measures in conf ormity with WTO requirements.  
The representative of Afghanistan furthe r confirmed that as from the date of 
accession Afghanistan's laws would admi nister any subsidy programs provided 
by his Government in conformity wi th the Agreement on Subsidies and 
Countervailing Measures and that all ne cessary information on notifiable 
programs would be notified to the Committee on Subsidies and Countervailing 
Measures according to Article 25 of the Agreement upon entry into force of WT/ACC/AFG/27 
 
- 42 - 
 
  Afghanistan's Protocol of Accession.  The Working Party took note of these 
commitments. 
Answer: 
Afghanistan accepts this commitment. 
- Technical Regulations and Standards 
Question 87 The reply to Question 106 of document WT/A CC/AFG/17 refers to a revised draft Law on 
Standards and Technical Regulations. 
- Please provide a copy for Working Party review, with any changes from the 
original draft Law we reviewed note d in highlight or some other method. 
Answer: 
The revised Law from the original draft was submitted to the WTO Secretariat on 
14 November 2012 (WT/ACC/AFG/19). 
Question 88 
Paragraph 134 of document WT/ACC/SPEC/AFG/3  states that "the representative of 
Afghanistan noted that ANSA would use the WTO TBT Code of Good Practice in the development of its national standards".  The Code of Good Practice requires publication 
of a work programme of all standards und er development every six months; public 
notice of draft standards prior to finaliz ation with a 60 day comment period for all 
interested persons from WTO Members; an d making copies of the draft standard 
available upon request at a non-discriminatory fee.  
- Please clarify that Afghanistan will pub lish a notice for all draft standards for 
comment prior to their finalization and make them available to interested 
persons upon request, as required  by the Code of Good Practice. 
Answer: 
Afghanistan confirms that it will publish a notice for all draft standards for comment prior to their 
finalization and make them available to interested  persons upon request, as required by the Code 
of Good Practice. 
Question 89 The reply to Question 108 of document WT/A CC/AFG/17 states that:  "Afghanistan will 
be seeking 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 tr ansitions, once agreed upon, with Working 
Party Members, will be included in a tr ansitional article in the Draft Law". 
- As we have stated in the Working Party, we need an action plan from Afghanistan 
detailing those aspects of the Agreement on TBT that it wishes to implement 
during a transition period, indicating sp ecifically when implementation will take 
place. 
- Without this action plan, we cannot consider requests for transitions, even if we 
are prepared to agree. 
- Please provide the action plan. WT/ACC/AFG/27 
 
- 43 - 
 
  Answer: 
The following aspects of the TBT agreement are challenging for Afghanistan: 
- Equivalency of foreign technical regulations 
- Equivalency of Results of conformity assessment procedures 
Action Plan for Areas under the Agreement on Tec hnical Barriers to Trade to be implemented after 
WTO Accession  
(Full implementation of the TBT Agreement by end of 2015) 
Action  Implementation Date  
Equivalency of foreign technical regulations and Results of conformity 
assessment procedures:   
- Study the experience of other coun tries in this regard through study 
tour and review of existing operational and successful systems  Prior to mid-2014  
- Develop appropriate equivalence mechanism in line with the WTO 
TBT and based on best international practices Prior to end of 2014  
- Establish mechanism and Unit and recruit appropriate resources Prior to mid-2015  
- Provide training to staff on equivalence Prior to end of 2015  
This transitional arrangement should have no negative impact on trade since Afghanistan does not 
currently have any technical regulations at this point.  
However, the implementation of this system requires adequate technical and financial resources to be available for ANSA in order to meet the proposed schedule.  
 
Question 90 
Paragraph 136 of document WT/ACC/SPEC/AFG/3  states that Afghanistan has not yet 
established an enquiry point for TBT issues. 
- We value the transparency provisions of  the TBT Agreement.  We request that a 
formal enquiry point be established prio r to the conclusion of Afghanistan's 
WTO accession negotiations, even if othe r aspects of the Agreement may not be 
able to be implemented prior to accession. 
Answer: 
A pilot TBT Enquiry Point has been established at ANSA.  Enquiries can be addressed to the 
following: 
Contact Name:  Shahperay Nasseri 
Name of Institution: Afghan National Standards Authority (ANSA) 
Physical Address: Industrial Park Area, Kabul-Jalalabad Road, Kabul, Afghanistan  
P.O. Box No:  51 72 
Telephone:  +93 (0) 773139810 
E-Mail:   shahperayn@yahoo.com WT/ACC/AFG/27 
 
- 44 - 
 
  - Sanitary and Phytosanitary Measures 
Question 91 Paragraph 141 of document WT/ACC/SPEC/AFG /3 states that: Afghanistan "did not 
currently have in place procedures, techni cal capacity or equipment to carry out 
science-based risk assessment in accord ance with the WTO SPS Agreement and 
guidelines of Codex, OIE and the IPPC.  Afgh anistan was planning to harmonize, during 
the next four years". 
- Does Afghanistan intend to requ est a transition period for this? 
Answer: 
Afghanistan intends to request a transition period  for carrying out science-based risk assessment. 
Question 92 
During the December 2012 Working Party Meetin g, Afghanistan stated that its Action 
Plan for full implementation of the WTO Agreement on SPS was "in development".   
- We request that Afghanistan provides it s action plan, detailing those aspects of 
the Agreement on SPS that it does not be lieve it will be able to implement prior 
to accession and indicating specifically when implementation will take place. 
Answer: 
As a Landlocked LDC, Afghanistan will need unt il the end of 2017 to implement all commitments 
under the WTO SPS Agreement.  Significant capaci ty building and technical assistance will be 
required from WTO Members to carry out this wo rk.  In addition, Afghanistan seeks support of 
WTO Members in upgrading laboratories and establishing quarantine posts.  Afghanistan is 
preparing the list of such needs and will make available to Working Party Members. 
Action Plan for Areas under the Agreement on Sanitary & Phytosanitary Measures Trade to be 
implemented after WTO Accession  
(full implementation of the SPS Agreement by end of 2017) 
Action Implementation Date 
Analysis of existing regulations and procedures and adoption of 
amendments or new regulations in line with new SPS laws: 
- Law on Plant Protection and Quarantine  
- Law on Animal Health and Veterinary 
- Law on Food Safety Prior to end of 2014 
Training of relevant officials on new regulations and procedures Prior to end of 2014 
Development of procedures for science-based risk assessment 
 Capacity building related to sc ience-based risk assessment Prior to end of 2015 
Upgrading and strengthening of qualit y control, laboratories, quarantine 
system, and disease and animal Heal th surveillance, monitoring and 
inspection Prior to end of 2015 
Capacity building of staff of MAIL on  quarantine management, inspection, 
veterinary surveillance and animal disease risk analysis. Prior to end of 2015 
Declaration of pest or disease-free ar eas and areas of low pest or disease 
prevalence Prior to end of 2015 
Capacity and new testin g methods for drug resi dues, toxicological, 
microbiological, and bacteriological tests Prior to end of 2016 
Opening new quarantine check post and development of pre and post 
quarantine facilities Prior to end of 2016 
Harmonization with international standards, guidelines, and 
recommendations  (Codex A limentarius, OIE, and IPPC) Prior to end of 2017 
Control, inspection and approval procedures for all SPS measures Prior to end of 2017 WT/ACC/AFG/27 
 
- 45 - 
 
  Question 93 
Paragraph 149 of document WT/ACC/SPEC/AFG/3  states that Afghanistan has not yet 
established an enquiry point for SPS issues. 
- We value the transparency provisions of  the SPS Agreement.  We request that a 
formal enquiry point be established prior to the conclusion of Afghanistan's WTO 
accession negotiations, even if other as pects of the Agreement may not be able 
to be implemented prior to accession. 
Answer: 
A pilot SPS Enquiry and Notification Point (ENP) has been established under the MAIL General 
Directorate of Policy and Planning.  Two persons have been designated to handle enquiries and notifications.  Two computers and a printer as well as internet access have been made available 
for the ENP.  Enquiries can be addressed to the following: 
Mr. Abdul Munir 
Ministry of Agriculture, Irrigation, and Livestocks (MAIL) 
Planning and Policy Department Building 
Kabul, Afghanistan Phone: +93 777 999 950 
Email:  Abdul.munir@MAIL.gov.af 
The pilot ENP will be formally established once the draft SPS laws are adopted.   - Trade-related Investment Measures (TRIMs) Question 94 
Paragraph 152 of document WT/ACC/SPEC/AFG/3  states that the Mineral Law of 2005 
provides that holders of mineral extraction rights are free to import goods and services 
necessary for their mineral activities, provided  that Afghan Persons are given priority for 
any contract to procure such goods and serv ices, under conditions which are equivalent 
in terms of quantity, quality, price and deliv ery dates, and that the Hydrocarbons Law of 
2009 provides that if Afghan goods and services are similar and equivalent in quality, 
quantity, and price to imported foreign g oods and services, the contractor shall be 
obliged to purchase and procur e Afghan goods and services. 
- These appear to be prohibited measur es under the WTO Agreement on TRIMs. 
- Please discuss, in the draft report, ho w Afghanistan intends to eliminate these 
practices.  
Answer: 
The Mineral Law of 2005 is no longer valid. 
As for the provisions in the hydrocarbons law related to preferences to local goods and services, 
discussions regarding this matter are being held among relevant ministries and government agencies.  We will update you duri ng the next working party meeting. WT/ACC/AFG/27 
 
- 46 - 
 
  - Government Procurement 
Question 95 Would Afghanistan consider negotiating a ccession to the Agreement on Government 
Procurement? 
Answer: 
Afghanistan may consider negotiating accession to the Agreement on Government Procurement 
after accession to the WTO. 
- Transit 
Question 96 The reply to Question 118 of document WT/ACC/ AFG/17 states that:  "The transit fees 
are charged for granting the right to transit".  However, it also states that the fees are 
"charged to cover the related administrative cost of the Transit Department at the 
Ministry of Commerc e and Industries". 
- Article V of the GATT 1994 states that "tra ffic in transit through its territory ... 
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 transportation or those commensurate 
with administrative expenses entailed by transit or with the cost of services 
rendered". 
- Thus, after accession, Afghanistan should  not charge WTO Members for the right 
to transit its territory. In addition, an y charges applied should either be for 
transportation or commensurate with ad ministrative expenses entailed, i.e., 
caused by the specific transit episode, not the expenses of the entire Transit 
Department of the MoCI.   
- What plans does Afghanistan have to amend its transit fees to meet these 
requirements? 
Answer: 
The Transit Form primarily serves as the declaration for international transit and as a transit 
permit.  The Transit Form is provided by the Tr ansit Department at the Ministry of Commerce and 
Industries.  It is filled by the representative of the transiting entity at then reviewed and stamped 
by the Transit Department at the Ministry of Commerce and Industries to permit transit.  
The Transit Form is then presented to customs officers for clearing transit at the point of entry and 
exit.  No other declaration for transit needs to be filled at entry or exit points.  
In issuing, reviewing and stamping the transit fo rm, the Transit Department at the Ministry of 
Commerce and Industries incur administrative costs for providing such services.  The fee is 
intended to recover these related administrative co sts to the issuance of transit form and not the 
overall operations of the Transit Department. 
Once ASYCUDA T2 Transit form is implemented at al l entry points in Afghanistan, the role of the 
Ministry of Commerce and Industries Transit Department in issuing the Transit Form will be reconsidered. 
Question 97 
Paragraphs 161-163 of document WT/ACC/ SPEC/AFG/3 describe Afghanistan's 
international agreements on transit.  Arti cle V:5 of the GATT 1994 states that:  "With 
respect to all charges, regulations and form alities in connection with transit, each 
contracting party shall accord to traffic in tr ansit to or from the territory of any other 
contracting party treatment no less favourable  than the treatment accorded to traffic in 
transit to or from any third country". WT/ACC/AFG/27 
 
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  - Please indicate how Afghanistan intends to fulfil this obligation. 
Answer: 
Notwithstanding current agreements on tran sit between Afghanistan and other countries, 
Afghanistan will provide MFN treatment to traffic in transit of WTO Members and will abide by the 
requirements under Article V of the GATT 1994.   
 
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