WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/ACC/SPEC/AFG/3 
9 November 2012 
 (12-6171) 
Working Party on the Accession of 
the Islamic Republic of Afghanistan  
 
 
 
  
ACCESSION OF AFGHANISTAN 
 
Elements of a Draft Working Party Report 
 
  
_______________  WT/ACC/SPEC/AFG/3 
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  TABLE OF CONTENTS 
I.  INTRODUCTION .................................................................................................................. .. 1 
DOCUMENTATION PROVIDED ...................................................................................................... 1  
INTRODUCTORY STATEMENTS .................................................................................................... 1  
II.  ECONOMIC POLICIES .......................................................................................................... 2  
-  Monetary and Fiscal Policy .................................................................................................... .. 2 
-  Foreign Exchange and Payments ............................................................................................ 6  
-  Investment Regime.............................................................................................................. ...... 6 
-  State Ownership and Privatization, State-trading Entities ................................................. 11  
-  Pricing Policies .............................................................................................................. .......... 12 
-  Competitio n Policy ............................................................................................................ ...... 13 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES .................................... 13  
-  Powers of Executive, Legislative and Judicial Branches of Government .......................... 13  
IV.  POLICIES AFFECTING TRADE IN GOODS ................................................................... 16  
-  Trading Rights ................................................................................................................ ........ 16 
A.  IMPORT REGULATIONS .................................................................................................... 19  
-  Ordinary customs duties ....................................................................................................... . 19 
-  Other duties and charges ...................................................................................................... .. 20 
-  Tariff rate quotas, tariff exemptions ..................................................................................... 20  
-  Fees and charges for services rendered ................................................................................. 21  
-  Application of internal  taxes to imports ............................................................................... 22  
-  Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ....................................................................................................................... .............. 23  
-  Customs valuation ............................................................................................................. ...... 26 
-  Rules of origin ............................................................................................................... .......... 29 
-  Other customs formalities ..................................................................................................... . 31 
-  Pre-shipment inspection ....................................................................................................... .. 31 
-  Anti-dumping, countervailing duties, safeguard regimes ................................................... 32  
B.  EXPORT REGULATIONS ................................................................................................... 33  
-  Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports .............................................................................................................. .......... 33 
-  Export restri ctions ........................................................................................................... ....... 35 
-  Export subsidies .............................................................................................................. ........ 35 
C.  INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS ......................... 35  
-  Industrial policy, including subsidies .................................................................................... 35  
-  Technical barriers to trade, standards and certification ..................................................... 37  
-  Sanitary and phytosanitary measures ................................................................................... 40  
-  Trade-related investment measures ...................................................................................... 44  
-  Free zones, special economic areas ........................................................................................ 45  
-  Government procurement ...................................................................................................... 4 5 
-  Transit ....................................................................................................................... ............... 46  
-  Agricultural policies.......................................................................................................... ...... 48 WT/ACC/SPEC/AFG/3 
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  V.  TRADE-RELATED INTELLECTUAL  PROPERTY REGIME ....................................... 49  
-  GENERAL ....................................................................................................................... ........ 49 
-  Industrial property protection ............................................................................................... 49 
-  Responsible agencies for policy formulation and implementation ..................................... 49  
-  Participation in international intellectual property agreements ........................................ 49  
-  Application of national and MFN treatment to foreign nationals ...................................... 50  
-  Fees and taxes ................................................................................................................ .......... 50 
-  SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS ........................................................................... 50  
-  Copyright and related rights ..................................................................................................  50 
-  Trademarks, including service marks ................................................................................... 52  
-  Geographical indications, including appellations of origin ................................................. 53  
-  Industrial designs ............................................................................................................ ........ 53 
-  Patents ....................................................................................................................... ............... 53  
-  Plant variety protection ...................................................................................................... .... 54 
-  Layout designs of integrated circuits .................................................................................... 54  
-  Requirements on undisclosed information, in cluding trade secrets and test data ............ 54  
-  ENFORCEMENT ...................................................................................................................  54 
-  Civil judicial procedures and remedies ................................................................................. 54  
-  Provisional measures .......................................................................................................... .... 55 
-  Administrative procedures and remedies ............................................................................. 55  
-  Special border measures ....................................................................................................... .. 55 
-  Criminal procedures ........................................................................................................... .... 55 
VI.  POLICIES AFFECTING TRADE IN SERVICES .............................................................. 56  
VII. TRANSPARENCY ................................................................................................................. 62 
-  Publication of information on trade ...................................................................................... 62  
-  Notifications ................................................................................................................. ............ 64  
VIII. TRADE AGREEMENTS ....................................................................................................... 64  
CONCLUSIONS ................................................................................................................... ............... 66  
ANNEX 1 ....................................................................................................................... ....................... 67  
ANNEX 2 ....................................................................................................................... ....................... 68   WT/ACC/SPEC/AFG/3 
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  I. INTRODUCTION 
1. The Government of the Islamic Republic of Afghanistan applied for accession to the 
World Trade Organization (WTO) in November 2004 (document WT/ACC/AFG/2), following the 
initial application for accession to the WTO which had been made by the Government of the 
Transitional Islamic State of Afghanistan in Apr il 2003 (document WT/ACC/AFG/1).  At its meeting 
on 13 December 2004, the General Council established a Working Party to examine the application of 
the Government of the Islamic Republic of Afghani stan to accede to the WT O, under Article XII of 
the Marrakesh Agreement Establishing the WTO.  Th e terms of reference and the membership of the 
Working Party are reproduced in doc ument WT/ACC/AFG/3/[Rev.6].   
2. The Working Party met on 31 January 2011 under the Chairmanship of H.E. Mr. Boudewijn 
J. van Eenennaam (Netherla nds), and on 18 June 2012 and [… ] under the Chairmanship of 
H.E. Mr. Roderick van Schreven (Netherlands). 
DOCUMENTATION PROVIDED 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Afghanistan (docum ent WT/ACC/AFG/4), the questions submitted by 
Members on the foreign trade regime of Afghanist an together with replies thereto, and other 
information provided by the authorities of Afghanistan (documents WT/ACC/AFG/5, WT/ACC/AFG/6 and WT/ACC/AFG/6/Rev.1, WT/ACC/AFG/7, WT/ACC/AFG/8, WT/ACC/AFG/10, WT/ACC/AFG/11, WT/ACC/AFG/13, WT/ACC/AFG/15, WT/ACC/AFG/17 and 
WT/ACC/AFG/18) including the legislative text s and other documentati on listed in Annex 1.  
INTRODUCTORY STATEMENTS 
4. The representative of Afghanistan said that th e country had emerged after three decades of 
conflict and had endured extensive damage to its physical, institutional, human and social 
infrastructure.  He noted that security was improvi ng throughout the country a nd that participation in 
the international trading system would lead to more trade, investment, technology transfer, 
employment and income growth throughout the econom y.  He stated that a core element of his 
Government's strategy for econom ic growth and development had been to sustain an open economy 
based on liberal trade principles, disciplined  fiscal and monetary policies and sound 
non-discriminatory investment environment.  Afgha nistan viewed WTO membership as an essential 
element of the effort to strengthen its trade and investment framework and establish the environment 
for greater economic opportunities that would alleviat e poverty in the country.  He stated that his WT/ACC/SPEC/AFG/3 
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  Government was committed to turn Afghanistan's ha ndicap of being a landlocked county into an asset 
by becoming an efficient transit location between Central Asia, South Asia, and the Indian Ocean.  
The representative of Afghanistan emphasised th e high priority that was placed on regional 
integration and trade facilitation, including in itiatives aimed at further developing regional 
transportation and transit infrastructure.  He noted  that Afghanistan had adopted a significant number 
of trade and investment related commercial laws an d regulations which were developed on the basis 
of international best practices and recommendations of international organiza tions.  The Government 
was also fully committed, with the support of its development partners, to investing in physical 
infrastructure and human capital.  He noted that Af ghanistan was in need of trade-related technical 
assistance and was seeking accession to th e WTO as a least-developed country. 
5. Members welcomed Afghanistan's application to accede to the WTO and pledged to work 
closely and constructively with Afghanistan toward s this goal.  Members underscored the need for 
making it possible for Afghanistan to join the Organi zation quickly, so as to be able to benefit as soon 
as possible from the standards that had been devel oped in the WTO, including those that would be put 
in place within the framework of trade facilitation. 
6. The Working Party reviewed the economic policie s and foreign trade regime of Afghanistan 
and the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by 
Members of the Working Party on the various aspects  of Afghanistan's foreign trade regime and on 
the terms and conditions of Afghanistan's accession to the WTO are summarized below in 
paragraphs 7 to [...].   
II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy 
7. The representative of Afghanistan said that im portant initiatives had been implemented in 
areas of fiscal policy and management, includin g the centralization of revenue collection and 
management; customs clearance automation; the intr oduction of an income tax; and the reform of 
customs laws.  The Government's strategy to fo ster private sector-led economic development and 
increase domestic and foreign invest ment consisted of efforts to:  (i) build a strong and stable enabling 
environment that would encourage a competitive pr ivate sector; (ii) expand the scope for private 
investment in developing natural resources and in frastructure; and (iii) promote investment from 
domestic sources, the Afghan diaspora and foreign investors.  WT/ACC/SPEC/AFG/3 
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  8. The representative of Afghanistan stated that Afghanistan's GDP rose from US$4.4 billion in 
2002/03 to US$17.4 billion in 2011/12.  Similarly, revenue as percentage of GDP increased from 
3.2 per cent to approximately 11 per ce nt totalling US$1.7 billion in 2010/11.  He noted that the 
increase in domestic revenues since 2002/03 could be attributed mainly to increases in revenues from 
customs duties and domestic taxes as customs duties comprised 39.2 per cent of the total revenue in 2007/08.  Revenue increased by 26.6 per cen t and 25 per cent in 2010 and 2011, respectively.   
9. The representative of Afghanistan stated that th e Government had elaborated the Afghanistan 
National Development Strategy (ANDS), whose obj ective was the creation of sound foundation for 
sustainable economic growth, achievement of th e Millennium Development Goals by 2020 and the 
development of a number of comprehensive sector st rategies.  He said that among the key areas that 
would contribute to increased international trad e were strategies aimed at improving regional 
economic cooperation; private sector development; agriculture and rural development; banking and 
financial sector development: telecomm unication; and transportation.   
10. The representative of Afghanistan said that the principal mission of the Da Afghanistan 
Bank (DAB), the Central Bank of Afghanistan, was to  determine and direct monetary policy aimed at 
maintaining price stability to facilitate economic  development within the framework of the 
Government's economic policies.  The representative of  Afghanistan stated that the activities of banks 
and the banking system were governed by the Law on  Central Bank of Afghanistan of 2003, and the 
Banking Law of Afghanistan of 2004.  The role of the Da Afghanistan Bank included issuing licenses 
for other banks, legal entities, and individuals to perform banking services such as maintenance of 
accounts for clients, banks, and non- bank financial institutions.  The representative of Afghanistan 
acknowledged that asset management (including pens ion funds, portfolio investment, and trust 
services) was not yet developed in Afghanistan due to the lack of a developed corporate market, 
technical capacity and organizational structures.  Th ere was, however, a regulatory structure to check 
investment fund and deposit activity.  He noted th at the following three laws related to financial 
leasing were adopted:  the Law on Mortgage of Im movable Property of 27 July 2009; the Law on 
Mortgage of Movable Property of 27 July 2009; and the Law on Transaction Documents (Negotiable Instruments) of 24 January 2009.  
11. The representative of Afghanistan stated that the Central Bank which was previously heavily 
involved in commercial banking activities had been restructured; many unnecessary departments were 
eliminated and a number of essential departments,  such as Bank Supervision, Monetary Policy, 
Market Operation, Information Technology, Fi nancial Intelligence Unit, and Risk Management WT/ACC/SPEC/AFG/3 
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  were created.  Under the new arrangements, the Ce ntral Bank focused on its core functions: monetary 
policy, bank supervision, inter-bank clearance and settlement and financial market stability. 
12. He stated that in accordance with the Government's policy on price stabilization, the new 
currency of Afghanistan was introduced in October 2002.  The average exchange rate in 2011 was 
about AF 47.8/US$1.  The restrained monetary pol icy together with othe r exogenous factors had 
brought the rate of inflation down from an  annual average of 150 per cent in 1999-2001 to 
4.8 per cent in 2006/07.  The inflation rate however fluctuated during the last three years as follows:  
3.2 per cent in 2008/09; 7.7 per cent in 2009/10;  and 11.8 per cent in 2010/11.  The increase in 
inflation was the result of widening in trade defic it and prices of fuels and food products and imported 
inflation. 
13. The representative of Afghanistan said that the national budget was intended to be the main 
policy tool to achieve development objectives consiste nt with the National Priority Programs of the 
Afghanistan National Development Strategy.  Sin ce 2004, reporting of Afghani stan's National Budget 
included a Core Budget which was under the direct  control of the Afghan Government and the 
External Budget, which was funded directly by international donors.  He said that the envisaged 
increase of donor assistance directly through the Core  Budget would require implementation of major 
reforms in public finance management such as pr ocurement planning, monitoring approach, capacity 
building programme and the revision of allotment procedures.  He noted that fiscal discipline and 
prudent expenditure management were the anch ors of an enabling business environment and 
macroeconomic stability.  Both were prerequisites for the private sector to flourish.  He added that in 
tandem with the public financial management refo rms, the Government was also taking steps to 
ensure that the private sector reforms advance a nd keep pace with the gain s in the public sector 
reform.  The private sector would not only be the dr iver of growth, jobs an d revenues but would also 
create delivery mechanisms for goods and services in  both economic and social sectors, productively 
utilize available human and natural resources, and help  to integrate Afghanistan with the region and 
the world. 
14. In reply to a specific question, the representativ e of Afghanistan said that the proposal for a 
separate budget for the Afghan Customs Department  (ACD) and autonomy in terms of budget and 
administration was discussed with donors and favourably reviewed by the Ministry of 
Finance (MOF).  The proposal had been submitted to the Afghanistan Civil Service Commission for final approval.   
15. The representative of Afghanistan stated that a 20 per cent flat income tax was levied on  
legal persons and other taxes we re applied on goods, legal and na tural persons, land, and economic  WT/ACC/SPEC/AFG/3 
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  activities.  Afghanistan maintained a non-discrim inatory tax policy for both domestic and foreign 
investors.  Major tax reform was introduced in 2007 which sought to comprehensively overhaul the 
tax system, bring it into compliance with internatio nal best practices, reduce tax-related investment 
barriers and simplify tax structures and procedures.  The representative of Afghanistan noted that Afghanistan's tax system was currently governed by  the Income Tax Law of 2009.  He confirmed that 
the current tax system was undergoing reform a nd a new draft Law on Valu e-Added-Tax had been 
prepared by the Ministry of Finance and submitted to th e Ministry of Justice.  It was expected that the 
VAT would be introduced in the next three to five years.  A new draft Law on Tax Administration was being prepared at the Ministry of Finance.  Draft Amendments to the Business Receipts Tax 
(BRT) provisions of the Law on Income Tax of 2009 had already been prepared and would be enacted 
at the same time as the VAT Law.   
16. The representative of Afghanistan stated that th e Government's objective was to reduce to the 
extent possible the current cost of doing business.  In this c ontext, specific measures had been 
undertaken such as the Automated System of ASYCUDA, provision of cargo handling equipment, infrastructure development and implementation of si mplified procedures, introduction of new modern 
institutions and liberal business laws; importation of electricity; construction of hydro power stations; 
development of road and rail infrastructure; fiscal  sustainability improvements; and establishment of 
one-stop-shop for business registration at the Minist ry of Commerce and Industries.  Other measures 
included the introduction of uniform and stable currency, imposing prudential regulation, and 
enacting effective monetary policy by the Central Bank which led to comparatively stable exchange 
rate and normalization of inflation; enacting a nd implementing a number of commercial laws and 
regulations which helped increase financial intermediation and stim ulate economic growth. 
17. The representative of Afghanistan stated  that the Afghanistan Central Business 
Registry (ACBR) established at the Ministry of Co mmerce and Industry (MoC I) in 2008 was intended 
as a single window to register all types of businesse s.  He further added that all Afghan businesses 
were required by law to be registered with the ACBR.  The role of the ACBR was to streamline and 
consolidate the myriad processes associated with registering a business in Afghanistan, whether done 
by business persons, their agents, or the Afghanist an Investment Support Agency (AISA).  The ACBR 
also assessed opportunities to support publicity wi th the Afghanistan Chamber of Commerce and 
Industry (ACCI) and to reach the bulk of the Afghan businesses through the ACCI channels.  
18. In response to a specific query, the representativ e of Afghanistan confirmed that the ACCI did 
not have any direct or indirect regulatory ro le related to the registration of businesses.   WT/ACC/SPEC/AFG/3 
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  - Foreign Exchange and Payments 
19. The representative of Afghanistan stated that as  part of the transition from a centrally planned 
to a market economy, the foreign exchange regime  had been extensively reformed.  In his view, 
Afghanistan established and maintained a liberal exch ange regime and a highly stable exchange rate, 
establishing conditions necessary for accepting obligati ons under Article VII of the IMF Articles of 
Agreement.  Through the Da Afghanistan Bank ba nking licence, all licenced banks, including foreign 
banks, had an automatic right to exchange curre ncies.  He said that currently there were 
17 licenced banks.  The representative of Afghanistan al so stated that there were no restrictions or 
requirements on the retention of foreign exchange or on payments for imports and repatriation of 
profits.  
20. The Regulation of Foreign Exchange Dealers of 7 March 2007 stipulated requirements for 
entities to be licenced to buy and sell foreign exch ange in Afghanistan.  Licenced foreign exchange 
dealers were also eligible to participate in DAB 's foreign exchange auction.  However, foreign 
exchange dealers' activities were also subject to prudential supervision by the Central Bank. 
21. Other regulations governing foreign exchange  and payments included the Money Service 
Providers Regulation of 2006, which stipulated re quirements for entities to be licenced as money 
service providers in Afghanistan, the Reserve Requi rement for Monetary Purposes Regulation of 2006 
which provided for reserve requirements to be he ld by the Central Bank for both prudential and 
monetary policy purposes and the Protection of the Payment System Regulation which recognized 
that the Central Bank of Afghanistan was responsib le for providing an efficient payment system.  
The latter regulation recognized the Afghanistan  Clearing and Settlement System (ACSS) as a 
payment system for the purpose of the protection of finality under Article 77 of the Banking Law of 
Afghanistan and identified the Registry of Ca pital Notes as a security settlement system.  
- Investment Regime 
22. The representative of Afghanistan stated that the Private Investment Law of 2005 was the 
legal basis for Afghanistan's investment regime.  He  said that Article 16 of the Law provided national 
treatment to foreign investors except in specific sect ors as indicated below.  The Law also stipulated 
the terms and conditions for investment applications .  Approval could be denied to foreign investors 
if:  (i) the application for an investment licence was incomplete and the information was inaccurate; 
(ii) the investment was not made through a registered enterprise in Afghanistan; and 
(iii) the investment was intended to be in proh ibited sectors such as development of nuclear power; 
establishment of casinos, gambling and similar establi shments; production of narcotics and any other  WT/ACC/SPEC/AFG/3 
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  intoxicants.  The Law on Private Investment provided incentives to foreign investors (Article 18) in 
terms of exemptions from export duties and export taxes.  The representative of Afghanistan noted, 
however, that these exemptions were no longer rele vant given that Afghanistan no longer applied 
export duties and export taxes except on a few products  (see Section on Customs tariffs, fees and 
charges for services rendered, applicati on of internal taxes to exports).  
23. The representative of Afghanistan stated th at the High Commission on Investment was the 
Government's focal point and highest authority for policy-making on investment and was the highest 
administrative authority with respect to the implem entation of the Private Investment Law of 2005.  
It was chaired by the Minister of Commerce and Industries and its membership included, inter alia , 
Ministers of the relevant ministries and the Gove rnor of the Central Bank.  Its functions included 
(i) development of regulations for approval by the Cabinet of Ministers, (ii) approval of rules and 
procedures for implementation of the Private Investment Law, (iii) establishment of the initial 
threshold for investment capital, (iv) monitoring of  foreign and direct investment in Afghanistan, and 
(v) proposing changes to inv estment policy, as necessary.   It had the right to amend the list of areas 
where investments would be prohibited, restricted or  subject to special terms.  This right had been 
used once to eliminate restrictions on non-bank financ ial services.  Under the Private Investment Law, 
the High Commission on Investment was authorised, with the agreement of relevant Ministries to 
provide incentives (for example, with the approval of the Ministry of Finance to provide tax incentives), on a case by case basis, in certain sector s and for certain types of investment, although 
such authority had never been exercised.  It w as also authorised to lim it the share of foreign 
investment in some industries, specific ec onomic sections and business companies.  
24.  To assist in carrying out its duties, the Commission established the Afghanistan Investment 
Support Agency (AISA) and was responsible for its operations. AISA was resp onsible for issuance of 
investment licenses (i.e., deciding which investment  enterprises were, or were not "approved") and 
investor registration relating to domestic and foreign investment and covering all sectors.  
While technically under the Ministry of Commerce a nd Industries, AISA's head was a chief executive 
officer.  It facilitated obtaining required licenses for investors from other relevant Afghan government 
agencies and acted as a one stop shop for investme nt licensing which helped to reduce the time 
needed to obtain a licence from months to one working day in the case of small and medium size 
investment.  For investment exceeding US$3 million, the High Commission on Investment would need to approve the investment a pplication.  The High Commission on Investment met once a month 
and considered applications submitte d during the prior month.  AISA was also responsible for keeping 
required reports from enterprises approved for invest ment and acted as an investment enquiry point 
for information on the Private Investment Law.  It continued its efforts to improve its licensing WT/ACC/SPEC/AFG/3 
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  procedures and facilities.  In addition to administering the High Commission's policies, AISA 
promoted investment and attracted investor s to Afghanistan through launching wide and 
comprehensive campaigns and by setting up AISA's regional offices at provinces to assist investors in 
doing business. 
25. To invest in Afghanistan, there was a need to  obtain a corporate registration and the AISA 
licence.  The representative of Afghanistan underlined  that the process of obtaining the AISA licence 
had been streamlined with a view to attracting i nvestments.  The one-stop- shop at AISA now included 
a representative from the Afghan Central Busin ess Registry (ACBR) and a representative from the 
Tax Revenue Department, Ministry of Finance.  In the case of small- and medium-size investment, it took one day to obtain the AISA licence, corporat e registration, and the Tax Identification (TIN) 
number.  The required documents to be submitted by the applicant were as follows:  (i) application 
form for the AISA licence; (ii) documents necessary to complete corporate registration: application 
for corporate registration, Articles of Associati on, and Shareholders' Agreement; and, (iii) five 
passport size photos.  Afghan citizens were require d to provide their national identity card while 
foreign citizens (as individual investors or represen tatives of foreign company) had to provide a copy 
of passport.  For foreign legal entities, a copy of cer tificate of registration of the legal entity attested 
by Ministry of Foreign Affairs and the Afghan Embassy in the home country of the foreign legal entity were required.  He noted that the fees for obt aining the AISA licence have been cut by half for 
small- and medium-size businesses.  The fee schedule was provided in Table 1 of Annex 2. 
26. The above-mentioned fee schedule applied for a ll sectors except construction, logistics, and 
security where the fee was US$700, regardless of the amount of initial capital.  The fee for corporate 
registration was US$20 instead of a previous ad valorem  fee of 1 per cent of initial registered capital, 
and an additional amount of AF 3 per character was charged to publish information regarding the 
newly registered company in the Official Gazette .  The total publication fee usually ranged from 
US$10 to US$20.  There was no fee for obtaining the TIN. 
27. The representative of Afghanistan said that hi s Government had focused on the development 
and implementation of the Afghanistan National Devel opment Strategy (ANDS).  In this context, the 
following sectors had been identified as priorities:  Security; Agriculture and Rural Development; 
Infrastructure and Natural Resources; Education; Health and Nutrition; Good Governance, Rule of 
Law and Human Rights; Economic Governance a nd Private Sector Development; and Social 
Protection.  To advance the implementation of the ANDS, the Government of Afghanistan would focus on three main cluster areas:  (1) Agricultu re and Rural Rehabilitation; (2) Human Capacity 
Development; and (3) Economic Development and Infrastructure, and implement high priority  WT/ACC/SPEC/AFG/3 
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  programmes aimed to (i) contribute significantly to the creation of large numbers of new jobs; (ii) 
have broad geographic impacts; and (iii) attract additional investment.   A copy of the ANDS was 
provided for the Working Party's review (see document WT/ACC/AFG/18 ). 
28. The representative of Afghanistan stated that the ANDS Private Sector Development Strategy 
required the Government to significantly promote private investment from both domestic and foreign 
sources, especially in areas of infrastructure, pow er generation, water supply and irrigation.  
The Government was seeking medium and large scale investors in commercial agriculture-related 
businesses, including producers and processors, in  order to increase employment and market 
opportunities in rural areas and to develo p export markets for Afghan products.  
29. Asked whether the ANDS provided for specific investment promotion measures (incentives, 
preferences or other benefits) or for trade-related investment measures, the representative of 
Afghanistan said that the ANDS was not a legal document but a broad-based strategy to, inter alia , 
encourage investment and private sector devel opment in Afghanistan and modernize the legal 
framework with the aim of increasing employment and GDP growth.  The ANDS did not provide for any investment incentives, including tax exemptions, except that the Ministry of Finance would create 
by mid-2008 the necessary legal and fiscal incentives that actively encourage individual and corporate 
support for social and economic development.  
30. In response to a specific question as to how Afghanistan was helping producers to produce 
goods which were environmentally and socially sust ainable, the representa tive of Afghanistan said 
that the Ministry of Commerce and Industries (MoC I) was finalizing an Industrial Policy setting out 
Sector Action Plans (SAP ).  The sectoral plans related to cashmere and agri-business had been 
approved by the Council of Ministers.  These plan s underlined the need to encourage experienced 
investors - foreign and national - who would prov ide best practices in producing goods which were 
environmentally and socially sustainable.  The representative of Afghanistan stated that the 
Directorate of Environment Inspection under the National Environmental Protection Agency (NEPA) 
was responsible for ensuring compliance with th e National Environment Protection Law No. 912 of 
25 January 2011.  He added that the Environmen t Protection Regulation No. 939 of 10 March 2008 
provided for specific criminal charges, which ra nged from US$8 to US$4,000 and imprisonment of 
three to six months for violators. 
31. The representative of Afghanistan added that  his Government was helping producers to 
access niche markets overseas, including through adherence to voluntary standards.  He stated that the 
Sector Action Plans identified niche markets such as Fair Trade as an important area for Afghanistan.  
In addition, the World Bank's New Market Devel opment project provided a grant facility to support WT/ACC/SPEC/AFG/3 
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  the expansion of 750 Afghan businesses.  The Minist ry of Agriculture, Irrigation, and Livestock 
(MAIL) had been working toward establishing a framework for building capacity of farmers.  
The MAIL would be expanding this effort during th e next three to five years with the aim of 
achieving adherence to Global GAP for key Afghan exports and instituting appropriate certification 
mechanisms.  The focus in applying GAP standa rds would be on main agricultural products of 
Afghanistan, particularly fresh fruits and vegetables.   
32. In reply to a question as to whether the Hi gh Commission on Investment was authorised to 
make amendments to the Private Investment Law,  the representative of Afghanistan stated that 
proposals to amend this law coul d only be made by the High Commission on Investment which would 
be forwarded to the Ministry of Justice for furt her consideration and submission to the Council of 
Ministers.  The latter would then submit draf t amendments to Parliament for adoption. 
33. In response to a specific question regarding th e compensation for expropriated investments of 
foreign investors, the representative of Afghanistan said that Article 27 of the Law on Private Investment provided that the State was authorised  to expropriate an investment or assets of a 
registered enterprise for an overriding public purpose.   The decision to expropriate would be made on 
a non-discriminatory basis.  He added that according to Article 28 of the same Law, the State would 
provide prompt, adequate and eff ective compensation in conformity with principles of international 
law, equivalent to the fair market value of the expropriated investment or assets immediately before 
the expropriation action was taken.  Such compensat ion would include interest at the one-year LIBOR 
rate for the period between the date of the expropria tion or nationalization and the date of complete 
payment of the compensation.  In the case of an  investment made in a foreign currency, the 
compensation would be made in the currency in whic h the investment was made at the prevailing rate 
of exchange.  Article 29 also cove red matters related to the transfer  of capital and dispute resolution.  
34. The representative of Afghanistan stated that Af ghanistan did not belong to any labour market 
integration agreements.  There were currently no free zones or free economic zones in Afghanistan 
and no legal framework governing the activities of su ch zones.  The national laws of Afghanistan 
applied on the whole territory of Afghanistan.  The Labour Law of Afghanistan applied equally on all 
producers regardless of whether or not they were involved in exporting.  The Labour Law of 2007 
reflected most provisions of the eight core ILO Conventions and the ILO's 2008 Declaration on Social 
Justice for a Fair Globalisation.  Afghanistan in tended to amend its 2007 Labour Law to fully reflect 
all key provisions of all ILO Conventions which had been ratified by Afghanistan as well as the 
ILO 2008 Declaration on Social Justice for a Fair Globalisation.  Specifically, Afghanistan intended 
to ratify ILO Conventions:  No. 29 "On For ced Labour"; No. 81 "On Labour Law"; No. 87  WT/ACC/SPEC/AFG/3 
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  "On Freedom of Association"; and No. 129 "On Lab our Inspection (Agriculture)" and was evaluating 
the need to ratify the two other Conventions:  No. 98 "On Collective Bargaining"; and No. 122 
"On Employment Policy".  Afghanistan had also est ablished a Labour Inspection Directorate at the 
Ministry of Labour to ensure adherence to the La bour Law of 2007, including that violators could be 
prosecuted.  
- State Ownership and Privatization, State-trading Entities 
35. The representative of Afghanistan stated that the Government began the Privatization and 
Economic Restructuring Program of State-owned en terprises (SOEs) in 2004.  The total number of 
SOEs in 2008 in Afghanistan was 64 and, in 2011, a new SOE - the Afghan Public Protection Force - 
was established, bring the total to 65 SOEs .  Additionally, there were 23 State-owned 
corporations (SOCs), where the Government shared ownership with the private sector or had been the 
sole owner operating under corporate law and governan ce procedures.  Eleven of those 23 SOCs were 
not operating.  As a result of privatization, corpor atization and liquidation in recent years, there were 
currently 39 SOEs (of which six had been leased to  the private sector and six were not subject to 
privatization) and 23 SOCs.   The representative of Afghanistan noted that his Government was 
seeking to promote the private sector as the engine of economic growth and the key to Afghanistan's 
long term development and poverty reduction.  Fu rthermore, the Government was committed to 
expanding the private sector through the efficient and rapid transfer of state-owned assets into private ownership.  Such transfers would take place in an open, fair, and transparent manner with the 
objectives of maximizing sales revenues, employment generation, increased investments and 
technological development. 
36. The representative of Afghanistan said that th e Government would continue the programme 
of privatization and corporatization of State-owned enterprises.  In accordance  with the privatization 
policy, enterprises were classified into the followi ng two categories:  (i) enterprises recommended to 
remain in state ownership and (ii) enterprises r ecommended for divestiture.  There were originally 
eight SOEs under the first category.  This was re duced to five as a result of the conversion of the 
Water Supply and Canalization Enterprise and the En ergy Enterprise Da Afghanistan Brishna Sherkat 
(DBS) to State-owned corporations and the liqui dation of the Engineering Research Enterprise.  
The five remaining SOEs in the first categor y were:  Millie Bus Enterprise; Improved Seed 
Enterprise; Prison Enterprise; Securities Prin ting Enterprise; and Micrurayan Maintenance 
(residential apartments).  The number of SOEs not subject to privatization was increased to six in 2011 as a result of a formation of the Afghan Public Protection Force.  There were 59 SOEs in the second category, and they would be transferred to the private sector based on different methods; such WT/ACC/SPEC/AFG/3 
Page 12  
 
  as privatization, corporatization, liquidation, sale of  assets, sale of shares and others.  In response to a 
question regarding the privatization project of 59 St ate-owned enterprises subject to privatization, the 
representative of Afghanistan said that five of them had been sold to the private sector; another six 
had been leased long-term to fore ign and domestic investors; and 19 were liquidated.  The lists of 
SOEs and SOCs are provided in Tables 2(a) and 2(b), respectively.  
37. In response to a specific question regarding State-owned enterprises, the representative of 
Afghanistan said that not all State-owned enterp rises were engaged in import/export operations, and 
even if they were, it did not necessarily mean that  they had exclusive rights or privileges in trade 
operations.  He further noted that all SOEs impor ted goods for their own operations and not for 
commercial sale except for the Fuel and Liquid Gas Enterprise and Da Afghanistan Brishna Sherkat (DBS).  Only the DBS had de facto  monopoly in the import of electric power.  
The representative of Afghanistan noted that th e Fuel and Liquid Gas Enterprise was under the 
corporatization process.  The assets of the Agricultu re Development Bank had been transferred to the 
Ministry of Finance.  All the assets of the Mortgage and Construc tion Bank and Industrial 
Development Bank had been sold.   
38. Asked to describe the restructuring and corpora tization of the Fuel and Liquid Gas Enterprise 
(FLGE), the representative of Afghanistan said that  the FLGE was operating within the framework of 
the Ministry of Commerce and Industries (MoCI).  Th e MoCI had developed a plan to corporatize the 
FLGE according to which the FLGE would be given ne w legal status to operate as a corporation.  
He added that the FLGE no longer enjoyed monopoly power in the import of petroleum and liquid gas 
as the private sector was importing the majority of such products. 
- Pricing Policies 
39. The representative of Afghanistan stated that, currently, the following goods were subject to 
price control:  electricity, water, pharmaceuticals, and medical equipment (see details in Table 3).  
He added that  Da Afghanistan Brishana Sherkat (a Government-owned entity) set the price for 
electricity subject to the approval by the following f our ministers:  Minister of Finance, Minister of 
Economy, Minister of Rural Development, and Minister of Energy and Water.  Electricity prices varied from one region to another.   The prices were established taking into account the cost of 
generation and/or import and distribution co sts and adding a mark-up of 15 per cent. 
40. Upon a proposal by the Ministry of Urban De velopment, the prices for water were approved 
by the Economic Committee under the Council of Mini sters.  The tariff levels for water were 
established based on cost of production and distribution.  WT/ACC/SPEC/AFG/3 
 Page 13 
 
 
  41. Based on the Law on Medicine of 17 January  2007 and the Regulation on Production and 
Import of Medicines and Medical Equipment, dated February 2007, the Ministry of Public Health 
(MoPH) set the price for pharmaceuticals and medi cal equipment.  The methodology for price setting 
was to permit reasonable profit and allow recovery of the operational costs of companies.  The only 
commercial services subject to price regulation were certain medical services, as per details provided in Table 3.  There was no specific methodology fo r establishing the rates for medical services other 
than ensuring that charges were reasona ble and affordable to the population.  
42. The representative of Afghanistan stated that  from time to time and for the purpose of 
consumer protection, MOCI would implement pric e control on gasoline, fuel, diesel, and liquefied 
gas.  A Decision by the Minister of Commerce a nd Industries would be issued in this regard. 
43. In response to a specific question, the represen tative of Afghanistan stated that there were 
currently no mechanisms to appeal price regulation.   
- Competition Policy 
44. The representative of Afghanistan said that competition policy was regulated by the Law on 
Protection of Competition of 30 June  2010.  This Law balanced Afghanistan's need for foreign direct 
investment and the need to ensure fair and eff ective competition consistent with modern competition 
policy.  He said that the Law phased in competition rules in a three-step a pproach to implementation 
that would entail an initial phase to encourage investment; a second phase to introduce competitive 
principles; and a third phase that would establish international best practices.  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
- Powers of Executive, Legislative and Judicial Branches of Government 
45. The representative of Afghanistan said that on 3 January 2004, the new Constitution of 
Afghanistan was approved.  According to Article  5 of the Constitution, the National Assembly, 
elected once every five years, consisted of two houses:  (i) the Wolesi Jirga (House of the People); 
and (ii) the Meshrano Jirga (House of the Elders).  The National Assembly had the power to make 
decisions on issues fundamental to the country an d to supervise and oversee the activities of the 
executive and judicial branches.  The powers of th e National Assembly included:  (i) the enactment, 
amendment, ratification and modification of laws and/ or legislative decrees; (ii) the approval of plans 
for economic, social, cultural and technological de velopment; and (iii) estab lishment and abolishment 
of taxes, approval of the Government's budget, granting permission for loans and ratification or 
abrogation of international treaties and agreements.  The National Asse mbly also had the authority to WT/ACC/SPEC/AFG/3 
Page 14  
 
  set up commissions and/or special commissions to ex amine issues and to inquire about Government 
actions. 
46. The Executive branch consisted of the President , Ministers and Governors of the provinces.  
The President, who was both the Head of State and the Head of Government, exercised his authority 
with respect to all branches of the Government in accordance with the provisions of the Constitution.  
The powers of the President included issuing d ecrees and promulgating laws and supervising the 
implementation of the provisions of the Constitution.   Ministers were appointed by the President and 
confirmed by the Lower House of the National Asse mbly.  Governors of the Provinces were proposed 
by the Independent Directorate of Local Governance and approved by the President. 
47. In response to a question to explain the status  of Presidential Decrees and Legislative Decrees 
vis-à-vis  a law, the representative of Afghanistan stated  that Presidential Decrees laid down a decision 
by the President (e.g. on administrative matters, appoi ntment, instructions to customs regarding tariff 
and non-tariff measures, establishment of a new in stitution).  He said that Legislative Decrees were 
issued during recess of the National Assembly, after approval by the Council of Ministers.  After endorsement by the President, the Legislative Decree acquired the force of law.  A Legislative 
Decree was a temporary law and such Decrees had to be presented to the National Assembly within 
30 days of convening its first session.   If rejected  by the National Assembly, the Legislative Decree 
would become invalid.  
48. According to the Constitution, the judicial branch was an independent branch of the 
Government.  The judicial branch consisted of the Supreme Court, Appeal Courts (Provincial Courts), 
and Primary Courts (District Courts).  The Supreme Court was the highest judicial organ.  In response 
to a specific question as to how administrative decisions in matters covered by the WTO Agreement 
could be appealed administratively in the first in stance, the representative of Afghanistan said that, 
with respect to Customs matters, draft amendments  to the Customs Law provided persons who had 
received a decision concerning a particular customs tr ansaction with the right to appeal to the General 
Directorate of Customs.  Such appeals needed to be made within ten days of notification of the 
decision.  Any duties assessed were required to be pa id and would be held in trust pending final 
decision on the appeal.  In the event that the Gene ral Director of Customs did not issue a decision 
within this time period, the request would be pr esumed to have been decided in favour of the 
appellant.  If the decision of the General Directorate was not satisfactory to the appellant, the appellant had the right to appeal to the Custom s Arbitration Administration or directly to the 
commercial court.  Decisions by the Customs Arbi tration Administration could be appealed to the 
relevant commercial court by the appellant, if the amount at issue was AF 50,000 or less, or by either  WT/ACC/SPEC/AFG/3 
 Page 15 
 
 
  party, if the amount at issue exceeded AF 50,000.  The draft amendments would require the General 
Directorate and the Customs Arbitration Administration to issue decisions on appeal in writing, 
provide reasons, and inform the appellant of his furt her rights of appeal.  He noted that the Regulation 
on Customs Arbitration of 20 March 2006 established the Customs Arbitration Administration as an impartial body set up within the framework of th e Ministry of Finance, to which the General 
Directorate of Customs was subordinate.  He noted  that the Customs Arbitration Administration was 
not yet functional.   
49. The representative of Afghanistan stated that there were no administrative tribunals in 
Afghanistan, other than the Customs Arbitration Administration.  A certain number of cases concerning the civil responsibility of the State were d ealt with by the courts.  He said that Afghanistan 
was including provisions in the draft WTO relate d laws to allow access to administrative appeal 
related to WTO matters and wher e relevant, to commercial arbitration.  Draft provisions for 
administrative appeal processes could be found in th e following legislation:  (i) the Customs Law of 
2005 and its draft amendments, and the Regulation on Customs Arbitration of 20 March 2006; (ii) the 
Draft Law on Foreign Trade in Goods (which provide d for administrative appeal for all procedures 
related to trade in goods in this law, including import licensing procedures); (iii) the Draft Law on 
Food, the Draft Law on Plant Protection and Quaran tine, and the Draft Law on Animal Health and 
Veterinary Public Health; and (iv) the Draft La w on Standards and Technical Regulations (which 
provided for the right to administrative appeal  concerning results of conformity assessment 
procedures).   
50. With regard to how administrative decisions  in matters covered by the WTO Agreement 
could be appealed to the courts after administrativ e options had been exhausted, the representative of 
Afghanistan said that the case would be first s ubmitted to the Primary Commercial Court in the 
respective district and a panel of three judges would be assigned to each case.  After standard 
documentation, presentation of arguments, witnesses, and the review of evidence, the judges would 
deliberate and announce their decision.  If either of th e parties was not satisfied with the decision, they 
could appeal to the Appeals Court.  A similar pr ocess would be undertaken and a decision would be 
announced.  Either party could appeal the decision to  the Commercial Tribunal of the Supreme Court.  
This court with three judges would only review the case to ensure that the rule of law was applied.  
They would receive witnesses or review evidence.  The decision of the Commercial Tribunal of the 
Supreme Court would be final.  Asked about the stat us and the role of the Commercial Courts in the 
Afghan judicial system, the representative of Afghanistan said that they were the Primary Courts, located at the District level.  Appeals to the d ecision of Commercial Courts would be made to the 
Provincial Courts, and further app eals would be made to the Supr eme Court.  Commercial Courts WT/ACC/SPEC/AFG/3 
Page 16  
 
  handled all disputes arising from commercial trans actions, which included customs matters and trade 
policy issues. 
51. The Constitution of Afghanistan provided for the National Assembly to ratify international 
treaties and agreements.  International treaties that necessitate the amendment of domestic laws or the 
enactment of new domestic laws required ratificat ion.  In the case of the Marrakesh Agreement 
Establishing the WTO and the Protocol of Accessi on to the WTO, it would be necessary to submit 
any Agreement to the National Assembly for ratifica tion.  After ratification, the National Assembly 
would submit it to the President's office through th e Ministry of Parliamentary Affairs.  If no veto, 
the President would issue a decree bringing the agreem ent into force.  The Ministry of Justice would 
notify the line ministries and publish the ratificati on in the Official Gazette.  The representative of 
Afghanistan said that no WTO provisions would be  enforceable without conforming legislation. 
National laws reflecting WTO provisions would come  into force once adopted and signed by the 
President (i.e. they did not have to wait for coming into force until the WTO Accession Package is 
ratified).  As regards the ratification of the WTO Accession Package, the terms of the accession would come into force once the Accession Packag e is ratified by the National Assembly. 
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights 
52. The representative of Afghanistan said that in order to engage in any business activity, 
including trading in Afghanistan, th ere was a need to register as a legal person or a sole proprietor.  
Also, in order to engage in trade for commercia l activities (i.e. importing for distribution and retail 
sale as opposed to importing for own use by the impor ter), the legal person and sole proprietor needed 
to have a business licence.  He further explained th at corporate registration, which entailed a creation 
of a legal entity to operate a business in Afghani stan, was not the same as obtaining a business 
licence, which granted the right to a natural pers on or a legal entity to engage in trade activities 
(covering import and/or expor t but not domestic distribution).  Cor porate registration as a legal person 
or sole proprietor was conducted in accordance with the Corporations and Limited Liability 
Companies Law of 30 January 2007.  The representati ve of Afghanistan stated that the requirements 
for registration were streamlined in 2012.  It now took less than one day and in order to register, the 
applicant needed to apply at th e Business Licensing Department (BLD ) at the Ministry of Commerce 
and Industries (MoCI) by filling in the required forms and submitting:  (i)  application for corporate 
registration; (ii) Articles of Association, and Shareholders' Agreement; and (iii) two passport size 
photos.  Afghan citizens were required to provid e their national identity card.  Foreign citizens 
(as individual investors or representatives of foreign company) had to provide a copy of passport.   WT/ACC/SPEC/AFG/3 
 Page 17 
 
 
  For foreign legal entities, a copy of certificate of registration of the legal entity attested by the 
Ministry of Foreign Affairs and the Afghan Embassy in the home country of the foreign legal entity 
were also required.  The representative of Afghani stan said that the following requirements would be 
eliminated by the end of 2012:  (i) a letter from the Afghan Ministry of Foreign Affairs that the applicant had no criminal record; and (ii) a letter attested by Ministry of Foreign Affairs and the 
Afghan Embassy in the home country of the invest or indicating that the foreign citizen had no 
criminal record. 
53. The forms were then passed by the BLD to the Afghanistan Central Business Registry 
(ACBR) for registration.  Once registration was co mpleted, the ACBR referred back to the BLD and 
the business licence was issued.  Bu sinesses intending to engage in foreign trade activities had to 
register at the ACBR.  Information on business li censing procedures for export and import operations 
was provided in Annex 3 of document WT/ACC/AFG/ 4.  He further noted that Afghanistan was 
reforming the current system to separate comme rcial registration from business licensing, and to 
restructure the business licence.  
54. The representative of Afghanistan said that the fee for registering as a legal entity was 
one per cent of capital.  Most applicants regist ered on the basis of minimum required capital of 
approximately US$1,000, i.e. the fee was approximate ly US$10.  The percentage fee was eliminated 
in 2012 and replaced with a fee of US$20, wh ich was below the cost of services rendered.  
Adjustment would be made to reflect the approxima te cost of services rendered.  The fee was the 
same for domestic and foreign a pplicants and was paid only once during the time of registration.  
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 trad ers.  The reason for lower minimum capital 
requirement for domestic traders was to develop Afghan private sector (particularly small- and 
medium-size business) and entrepreneurship though encouraging the involvement of Afghan nationals 
in international trade.  
55. The representative of Afghanistan stated that information regarding new registered legal 
persons (e.g. name of business, general informat ion, initial capital, contact) would need to be 
published in the Official Gazette.  The fee was approximately AF 3 per character.  Re-registration of 
any changes would need to be again published in the Official Gazette.   
56. As regards business licensing, the representative of Afghanistan said that the schedule of fees 
for obtaining a business licence was the following:  (i) for Afghan legal persons approx. US$57; 
(ii) for sole proprietor  approx. US$34; (iii) for foreign natu ral and legal persons approx. US$1,400 
plus approx. US$29; and (iv) for agency (repr esentative office) US$1,900 plus approx. US$19.  WT/ACC/SPEC/AFG/3 
Page 18  
 
  The fee schedule for the annual renewal of the business licence was the following:  (i) for Afghan 
legal persons approx. US$ 43; (ii) for sole proprietor approx. US$33; (iii) for foreign natural and legal 
persons US$400 plus approx. US$29; and (iv) for agency (representative office) US$900 plus approx. 
US$19.  He further stated that business licensing was regulated by the Ministry of Commerce and 
Industries Instruction on Business Licensing of 10 April 2004.  
57. All applicants for a business licence had to co mplete the application form provided by the 
Directorate of Business Licensing of the Ministry  of Commerce and Industries.  The documentation 
required to apply for a licence was as follows:  (i) an  application letter from the investor; (ii) National 
ID card of the investor; (iii) fee calculation fo rm (forma e sanjesh) from the Business Licensing 
Directorate; (iv) Corporate Status (Articles of  Association); (v) Corporate Identity form; and 
(vi) Letter to the Afghanistan Central Busi ness Registry (ACBR) from the Business Licensing 
Directorate of the Ministry of Commerce and Industr ies to proceed with the registration.  The same 
process was followed by domestic and foreign investor s.  It took around two days to obtain a business 
licence.  Five signatures were required, the final signa ture being that of the Director of the Business 
Licensing Directorate.  The business licence would have to be renewed each year.  The renewal 
process was similar to the initial process of obtaining the licence.  For the renewal, a conformation 
from Mostufiat Departments that the company had pa id its taxes was necessary.  The renewal would 
take one to two days to complete.  
58. The representative of Afghanistan stated that  all foreign applicants for a business licence 
would have to provide the following additional info rmation:  (i) passport and a valid business visa; 
and (ii) notarized and/or certified financial st atement by the business applicant's bank and/or 
accredited account.  
59. The representative of Afghanistan confirmed th at all persons including legal and natural 
(domestic/foreign) persons could import without a business licence.  However, those who did not 
have a business licence were charged 3 per cent fixe d tax (charged on customs duty and the value of 
imported goods) on imported goods instead of 2 pe r cent fixed tax for those who had a business 
licence.  The fixed tax collected could be used ag ainst the tax liability of a trader, i.e. fixed tax 
payments on imports could be claimed as credit in the calculation of a trader's annual income tax 
assessment.  He noted that this was a minor ad ministrative process, and he did not view the 
application of fixed tax on imports  as violating Article III of the GATT 1994.  He also noted that 
currently, there were no limitations established with respect to forms of commercial presence in Afghanistan either generally or for specific business.   WT/ACC/SPEC/AFG/3 
 Page 19 
 
 
  60. The representative of Afghanistan confirmed that  any domestic or foreign firm or individual 
could obtain business licenses for importation or expor tation without the requirement of investment.  
In response to a specific question,  the representative of Afghanistan said that there was no need for 
firms to join the Afghan Chamber of Commerce and Industry (ACCI) in order to trade in Afghanistan 
but all export invoices had to be certified by ACCI which charged 0.1 per cent of the value of exported goods.  
61. Some Members raised concerns regarding the higher business licence fees for foreign 
applicants which, in their view, constituted a fo rm of business taxation and was inconsistent with 
WTO obligations in Articles II, III, VIII and XI of the GATT 1994.  The representative of Afghanistan replied that Afghanistan would reform th e current fee structure to ensure conformity with 
WTO rules to reflect the approximate cost of services rendered. 
62. Members raised concerns that the fees for an activity licence to import medicines and medical 
equipment cost Afghan nationals US$800 while fo reigners were charged US$5,000, and urged 
Afghanistan to reform its fee structure.  The representative of Afghanistan described the specific 
licence requirements and fees by stating that medicines (including raw materials for producing 
medicines) could only be imported by companies that had at least one pharmacist on their staff.  
A person wishing to import medicines and medica l equipment needed to request a licence for 
engaging in such activities.  This licence was valid  for one year and cost approximately US$800.  
He further added that foreign companies wishi ng to engage in importing medicines and medical 
equipment were required to partner with a local Afghan registered activity licence holder company. 
The licence cost was the same in th is case.  The licence could be rene wed annually at no cost.  If the 
licence was not utilised during the year, the app licant needed to re-apply for a new licence.  
In addition to this activity licence, the importer w ould need to have a permit from the Ministry of 
Public Health (MPH) to import medicines and medical  equipment.  He further said that the reason for 
a different licence fee was to encourage more Afghan nationals to be engaged in international trade 
activities, especially in the trade of medicines and medical equipment.  He added that Afghanistan 
would revise the fees structure to bring it into  compliance with Article VIII of the GATT 1994.  
A. IMPORT REGULATIONS - Ordinary customs duties 
63. The representative of Afghanistan said that the Customs Law of 2005 was currently in force. 
He noted that various amendments would be made  to ensure consistency with the WTO rules.  WT/ACC/SPEC/AFG/3 
Page 20  
 
  He further stated that Afghanistan had prepared dr aft amendments in 2010, which had been submitted 
to the Ministry of Justice.  
64. The Afghanistan National Tariff Schedule (ANTS) was based on the Harmonized Commodity 
Description and Coding System (HS 2012) and tariffs were applied at the eight digit.  The tariff 
structure maintained 14 tariff rates:  0, 1, 2.5, 3.5, 5, 8, 10, 12, 16, 20, 25, 35, 40 and 50 per cent.  The tariff structure allowed for the use of ad valorem  tariffs, specific duties and combination of 
ad valorem  and specific tariff rates.  The representative of  Afghanistan stated that at present only 
ad valorem  tariff rates were applied.  In reply to a specific question, he said that the HS2012 tariff 
nomenclature was not adopted through amending the Customs Law but by revising and adopting Afghanistan's Tariff Schedule, which was a separate document from the Customs Law. 
65. The representative of Afghanistan said that the cu rrently applied tariff rate structure was made 
up of relatively low tariff rates and reflected Afghanistan's intention to establish an open, 
market-based economy (see details for 2011 in Tabl es 4(a) and 4(b)).  As the process of economic 
development following decades of conflict and economic isolation was still in early stages, 
Afghanistan could require undertaking some tariff ad justment.  In such cases, the Government would 
take into consideration the economy-wide impacts, in cluding in particular the impact on consumers.  
These factors would be reflected in Afghanist an's specific market access commitments. 
- Other duties and charges 
66. The representative of Afghanistan said that Afghanistan charged a Tax Benefiting the Afghan 
Red Crescent Agency of 2 per cent of the value of customs duties on all imported commercial goods.  
He noted that this tax would be classified as "Other Duties and Charges" (ODC) and bound in 
Afghanistan's Schedule of Concessions and Commitments on Goods.  
- Tariff rate quotas, tariff exemptions 
67. The representative of Afghanistan said that Afgha nistan did not apply tariff quotas.  Imported 
goods could be exempted from customs duty by a legal act by the Afghan Government, 
i.e., Presidential Decree, laws a nd regulations, and Government agre ements; and ratified international 
agreements or conventions.  In accordance with Ar ticle 27(2) of the Customs Law, the following 
imported goods could be exempted from paying custom s duty:  (i) Goods imported by Officials of the 
State during official travels; (ii) office mate rials and equipment of political representatives and 
international agencies, intended to be used in residences and offices of representatives of foreign 
countries in Afghanistan, after confirmation of permission to do so by competent authorities;  WT/ACC/SPEC/AFG/3 
 Page 21 
 
 
  (iii) items intended for personal use by foreigners working in Afghanistan according to the terms and 
conditions of their contract; (i v) permitted books, gazettes, mag azines and newspapers; (v) goods 
provided for Government projects funded by loans or  imported into the country by or for public and 
private foreign and international relief and de velopment agencies approved by the Government; 
(vi) personal effects used by Afghan delegations or Afghan international workers and their family 
members while abroad; (vii) travellers' persona l goods in accordance with the customs tariff; 
(viii) commercial samples and advertising gifts; (i x) post parcels valued at less than AF 5,000; 
(x) honorary decorations or awards; (xi) sample s sent to organizations protecting copyrights or 
industrial or commercial patent rights; (xii) u sed movable property belo nging to natural persons, 
who transfer their normal place of residence from another country to Afghanistan, as provided in the customs tariff; (xiii)pure-bred breeding animals and in sects and laboratory animals; (xiv) biological or 
chemical substances needed for scientific researches; (xv) therapeutic substances of human origin and 
blood grouping and tissue typing reagents; (xvi) s ubstances for the quality control of medicinal 
products; (xvii) fuels, lubricants and equipment ca rried with and necessary for the normal functioning 
of transport vehicles in accordance with the releva nt procedure; and (xviii)  other goods could be 
included as exempted goods upon recommendation of th e Minister of Finance and approval by the 
Council of Ministers.  An approved application fo rm would need to be presented to the Customs 
Office when claiming an exemption. 
68. In response to a specific question, the represen tative of Afghanistan stated that imports of 
printed books; brochures, leaflets, and other pr inted matter were exempted from paying customs 
duties in accordance with Article 27 of the Customs Law of 2007.  He said that Afghanistan's tariff 
schedule did not show these goods as being duty-free because in practice the exemption was only applied on books and materials imported for academic purposes. 
- Fees and charges for services rendered 
69. The representative of Afghanistan stated that  Afghanistan did not currently charge any 
customs processing fee.  He noted that the Afghan Customs Department charged for costs of various 
customs forms including approx. US$20 for a T-1 Form and approx. US$1 for an Afghan Customs 
Clearance Document (ACCD) Form (see Table 5(a)).   He further noted that the fee schedule for 
international transit through Afghanistan was as fo llows:  (i) US$100 for total weight equal or below 
25 tonnes; and (ii) another US$100 for weight exceeding 25 tonnes.  In reply to a question concerning 
this fee schedule, he said that the fees were charged for granting the right to transit and were meant to 
cover the related administrative cost of the Tran sit Department at the Ministry of Commerce and 
Industries. WT/ACC/SPEC/AFG/3 
Page 22  
 
  70. Asked about other fees, the representative of Af ghanistan stated that there were fees for 
customs storage (see Table 5(b)).  For goods which were imported duty free, the rate before 
exemption or the previously applied rate of duty was used for the purpose of computing the storage 
fees.  The representative of Afghanistan acknowledged  that the current fee structure for storage was 
WTO-inconsistent.  He said that Afghanistan was working on establishing a new WTO-consistent 
structure for storage fees based on fixed fee per cubic meter to bring it into conformity with 
Article VIII of the GATT 1994.  In 2013, an appropria te legislative act would be adopted to bring the 
new fee structure into force in 2014.  
- Application of internal taxes to imports 
71. As regards taxes applied to imports, the representa tive of Afghanistan stated that there were: 
(i) tax benefiting the Afghan Red Crescent Agency; (i i) fixed tax; and (iii) the Business Receipts Tax 
(see Table 6).  There was no value-added ta x or excise duty applicable in Afghanistan . 
72. The 2 per cent tax benefiting the Afghan Red Crescent Agency was applied on all imports 
except food items (see Section on Other Duties and Charges). 
73. As regards the application of the fixed tax, the representative of Afghanistan said that a tax of 
2 per cent was charged on imports (customs duty plus customs value).  In response to a specific query 
regarding this tax, the representative of Afghanistan  said that:  (i) persons  who imported goods with a 
business licence were charged 2 per cent tax; (ii)  persons who imported goo ds without a business 
licence were charged 3 per cent tax; (iii) persons with investment licence (only) from AISA were 
charged 2 per cent tax when importing for own use /operations and 3 per cent tax when importing for 
commercial purpose; (iv) persons with investme nt licence from AISA and a business licence from 
BLD were charged 2 per cent tax when importing goods for own use/operations or commercial 
purpose; and (v) natural persons importing goods fo r their own consumption without any licence were 
charged 3 per cent tax.  
74. The representative of Afghanistan stated that in  accordance with Article 70 of the Income Tax 
Law of 2009, administered by the Ministry of Finance, the fixed tax, in addition to import duties, was applied on imports and was not levied on like loca lly produced goods.  The fixed tax collected could 
be used against the tax liability of a trader, i.e. fixed tax payments on imports could be claimed as 
credit in the calculation of a trader's annual income  tax assessment.  He noted that this was a minor 
administrative process. As such, Afghanistan did not view the application of fixed tax on imports as 
violating Article III of the GATT 1994.   WT/ACC/SPEC/AFG/3 
 Page 23 
 
 
  75. The representative of Afghanistan noted also  that a Business Receipts Tax (BRT) of 
2 per cent was charged on imports (customs duty plus customs value).  The representative of 
Afghanistan said that in the cont ext of on-going tax reforms, Afghani stan would ensure compliance of 
its tax policy with Article III of the GATT 1994.  He said that the BRT would be replaced by value 
added tax which would apply equally to domest ic and imported goods.  The VAT system was 
expected to be introduced in the next three to five years.   
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
76. The representative of Afghanistan said that licenses, permits or approvals were required for 
the importation of pharmaceuticals, medical equipmen t, cosmetics and pharmac y tools; medicine and 
medical equipment; veterinary medical instruments a nd veterinary drugs and biological materials;  
printed books, brochures, leaflets, and other printe d matters; films; teleco mmunications equipment; 
armoured vehicles, arms, ammunitions, military equipment; precursors and narcotic chemicals; 
endangered species and ozone-depleting substances.  Licenses were valid for one year, except for 
precursors and narcotic chemicals (six months) and endangered species (six months with extension for 
one year).  Permits were granted for a single import transaction except for veterinary medical 
instruments and veterinary drugs and biological materials where multiple import transactions were 
authorised (see Table 7(a)).  In many cases, impor ters had the option to a pply for permits, licenses, 
and approvals after the arrival of goods at entry points into the territory of Afghanistan.  He noted that 
in most cases the period of validity and terms of  licenses and permits were not established by law and 
that a law on foreign trade in goods would be adop ted which would formally set the validity period to 
be one year.  Information on import licensing pro cedures was provided by Afghanistan in document 
WT/ACC/AFG/10.  Ozone-depleting substances requi ring import permits from the NEPA, as per the 
Law on Environment of 25 January 2 007, were listed in Table 7(b).  
77. The representative of Afghanistan said that the import of medicines (pharmaceuticals) and 
medical equipment was subject to permits of the Mini stry of Public Health (MPH).  To apply for a 
permit, the applicant was required to hold an activ ity licence for engaging in the trading of medicines 
and medical equipment from MPH and a business licence from MoCI.  Companies engaged in importation of medicine and other medical equipmen t could not operate without a pharmacist, i.e. 
only companies that had at least one pharmacist on  their staff could apply for the right to import 
medicines (pharmaceuticals) and medical equipmen t.  Natural persons ( doctors and pharmacists) 
could not import medicines or medical equipment.  In addition, medicines and medical equipment to be imported needed to be registered in the Lega l Medicines List.  Import of medicines and medical 
equipment, which were not in the Legal Medicines List, could be allowed in special cases, on the WT/ACC/SPEC/AFG/3 
Page 24  
 
  basis of a proposal of the Pharmacy Affairs Depa rtment and approval of the National Medicine and 
Food Board.  He added that the permit system fo r medicines and medical equipment was maintained 
based on the Law on Medicine of 14 November 2008, the Law on Public Health of 24 February 2007, 
and the Council of Ministers Regulation on Productio n and Import of Medicines and Pharmaceuticals 
of 19 February 2007.  The appli cation for import permits could be submitted at any time before the 
importation, including upon arrival of goods at th e port of entry.  Processing time was less than 
three days, provided that all required documents were  submitted.  Upon obtaining a permit for import, 
a fee of 0.075 per cent of the total cost of im ported medicines was charged.  In response to a 
Member's concern that a licensing fee for importatio n could not be based on the value of imports, the 
representative of Afghanistan stated that Afghanistan  would adjust this fee prior to its WTO accession 
to reflect the cost of services rendered.  
78. The representative of Afghanistan said that based on Article 20 of the Regulation on Export 
and Import of Medicines and Tools of February 2007,  a sample ought to be taken from every Batch or 
Lot number of medicines and medical devices.  Sampling was performed by a professional representative of the General Department of Pharmacy Affairs (GDPA).  The duration of the test was 
different and depended on the type , compositions and dosage form of medicines.  It normally took 
5-10 days.  The representative stated that this process did not hinder trade and was in line with 
international best practices.  None theless, he added that moderniza tion of laboratories could help in 
reducing testing time and Afghanistan would appreciate any assistance from WTO Members in this 
respect. 
79. As regards importation of pesticides, he said that an import permit was not required but an 
agreement had to be signed between the Department  of Plant Protection and Quarantine and importers 
of agricultural pesticides of various types.  The agreement laid out the obligations of both parties 
which included requiring importers to provide saf ety and quality certificate of pesticides from the 
country of origin, conditions for storage, transport, use etc. for the pesticides.  Samples were taken at 
the border for testing of pesticides prior to clearan ce.  If the goods were in accordance with the WHO 
and FAO prescribed lists, generally, in a time peri od of one day, the Plant Protection and Quarantine 
service would certify the Agreement of Conditions.   No fee was charged for the Agreement. 
The Agreement of Conditions had to be obtained prior to finalization of the Customs clearance 
procedures and removal of the goods from Custom s control Asked about any restrictions for 
dangerous pesticides, the representative of Afghani stan provided a list of banned and restricted 
pesticides (see Table 8).  As re gards importation of agrochemical s, the importer had to provide 
information about the importing entity to MAIL an d a quality certificate issued in the country of 
origin was required.  WT/ACC/SPEC/AFG/3 
 Page 25 
 
 
  80. In reply to a question concerning a discriminat ory licensing fee for importation of films listed 
in Table 7(a), the representative of Afghanistan stat ed that Afghanistan would revise the fee structure 
to ensure consistency with Article I of GATT 1994.   As regards the additional fee of US$10 for a 
"board review", he said this fee was for scree ning of films for the purpose of censoring and the 
amount reflected the cost of services rendered.   
81. As regards the fees for import permit and import licence for telecommunications equipment 
listed in Table 7(a), he said that Afghanistan would assess these fees to ensure they reflected the cost 
of services rendered in line with Article VIII of th e GATT 1994.  He also noted that the fee for import 
licence was designed to recover administrative cost s incurred by the Afghanistan Telecommunications 
Regulatory Authority and that the fee was recen tly reduced from US$2,200 to US$1,000.    
82. The representative of Afghanistan said that Article 53 of the Customs Law of 2005 authorised 
the Afghan Customs Department (ACD) to adopt prohi bitions or restrictions for reasons of:  public 
morality, public security, protection of environment, health and life of humans, animals or plants, the 
protection of national treasures possessing artistic, historic or archaeological value or the protection of industrial and commercial property and other state po licies.  He stated that the Tariff Schedule of 
Afghanistan prohibited the imports of:  (i) alcoholic dr inks; (ii) live pork; (iii) meat and edible offal of 
pork; (iv) pork fat; (v) cotton seeds; and (vi) narc otics and illegal drugs.  He said that the import of 
liquorice, carpets, rugs of wool or fine animal ha ir, marble and travertine, table salt, powdered salt, 
gypsum, anhydride and plasters was no longer prohibite d.  In reply to a specific question, he added 
that import prohibitions on table salt, powdered salt, gypsum, anhydr ide and plasters were eliminated 
in August 2011 by removing the reference to prohibite d goods marked as "P" in Afghanistan's Tariff 
Schedule.  The representative of Afghanistan confirmed that the import of ammonium nitrate was not allowed because of security reasons as it could be  used in making bombs and Improvised Explosive 
Devices (IEDs).  He also stated that the import of almonds and walnuts was no longer prohibited but 
the re-exportation of such items was banned.   
83. In response to a concern that there was no justification for the import prohibition of cotton 
seeds, the representative of Afghanistan said that this  measure had been in place for many years due 
to historic evidence of disease in cotton seeds imported from Central Asian countries.  He stated that a 
new draft Law on Protection and Quarantine was bei ng finalized which would be in accordance with 
the principles of the WTO SPS Agreement.  After fu rther scientific research to determine if the 
disease still existed, decision would be taken in line with the WTO SPS Agreement.  He further stated 
that the import ban on cotton seed was eliminated.  WT/ACC/SPEC/AFG/3 
Page 26  
 
  84. Asked to explain if Afghanistan intended to establish a WTO-consistent licensing system, the 
representative of Afghanistan stated that a law on foreign trade in goods would be adopted which 
would reflect the provisions of the WTO Agreement on Import Licensing Procedures.  He stated that 
the current situation reflected Afghanistan's li mited control over and re gulation of imports.  
Each ministry and state body listed in Table 7(a) currently maintained its own import licensing regime.  Afghanistan's import regime, including its import licensing regime, w as expected to evolve 
in the future, keeping in line with internationa l obligations.  The representative of Afghanistan 
undertook to submit a revised document WT/ACC/AFG /10, which would contain also information 
concerning permits and approvals necessary to im port medicines and medical equipment; arms, 
ammunitions and military equipment; and printed books, brochures, leafle ts and other printed matters. 
He also said that the draft Law on Foreign Trad e in Goods would be provided to Working Party 
Members for review by the end of 2012.   
- Customs valuation  
85. The representative of Afghanistan stated that the rules on customs valuation were stipulated in 
the Customs Law of 2005 and the Council of Minist ers Regulation No. 38 on Determining the Price 
of Goods in Customs, in which valuation methods were defined.  He added that his Government 
recognized that changes to the Customs Law a nd a new Regulation No. 38 would be required for 
purposes of closer conformity with the valua tion methods and other obligations of the WTO 
Agreement on Customs Valuation (CVA). 
86. Based on the provisions of Regulation No. 38, system of customs valuation in Afghanistan for 
both imports and exports was based on the principl es set out in the Agreement on Implementation of 
Article VII of the GATT 1994.  Valuation was based on the transaction value of the goods subject to 
adjustments due to the inclusion of cost insura nce and freight charges.  In case of dispute over 
accuracy of the transactions value, one or more of the alternative methods provided for in the 
Agreement.  To the extent that the Customs Law and Regulation No. 38 lack specific provisions 
related to the valuation methods specified in the Agreement, proposed amendments to the Customs 
Law would incorporate them in full in the law.   Concerning Article 7 of the Agreement, Article 8 of 
Regulation No. 38 set out a "fall-back" method of  valuation where the customs value would be 
determined on the basis of one of the methods the other methods, but ignoring some of the details of 
the characteristics of the goods, such as colour, quantity, period, etc. 
87. Members stated that they had reviewed Afghanistan's legislation pertaining to the 
implementation of the CVA, including Regulation No . 38 and the draft amendments to Customs Law 
and found not to be in full conformity with its pr ovisions.  In particular, the provisions of Articles 24  WT/ACC/SPEC/AFG/3 
 Page 27 
 
 
  and 26 of the draft Customs Law amendments a nd Article 11 of Regulation No. 38 appeared to 
provide for the valuation of goods on bases prohib ited by the CVA.  Members noted that the CVA 
provided a fair, uniform, and neutral system for the valuation of all goods for customs purposes and 
precluded the use of arbitrary or fictitious custom s values.  They expressed extreme concern with 
these provisions and asked the representative of Afghanistan to explain how they could be administered in conformity with the Customs Valua tion Agreement, in particular with the absolute 
prohibition in Article 7.2(f) of that Agreemen t of valuation based on minimum values.   
88. In reply, the representative of Afghanistan stat ed that further amendments would be proposed 
to the Customs Law and that Regulation No. 38 would be replaced by a new Regulation to fully 
incorporate the prohibitions stipulated in Article  7.2 and other provisions of Article 7 of the 
WTO Agreement on Customs Valuation.  In particular , it would be made clear in the legislation that 
under no circumstances would minimum values be  applied for the determination of customs 
valuation.  In addition, as provided for in Artic le 11 of the WTO Agreement on Customs Valuation 
amendments were  proposed to Article 18 and Artic le 20 of the Customs Law which would require the 
General Directorate of Customs or the Customs Arb itration Administration, when an adverse decision 
was made on appeal, to notify the applicant in writi ng, give reasons for the decision, and advise the 
applicant of his rights of further review; provide the applicant with the option to appeal a decision by the General Directorate of Customs to either the Customs Arbitration Administration or a court of 
competent jurisdiction, and explicitly provide that ther e would be no penalty or threat of penalty made 
against a person by reason of the fact that an appeal had been made. 
89. The representative of Afghanistan continued that Article 9 of the WTO Agreement on 
Customs Valuation was implemented pursuant to Article 25 of the Customs Law, which stated that a customs value had to be computed in Afghan currenc y at a rate of exchange that was established by 
the Da Afghanistan Bank and published at http:// www.centralbank.gov.af.  He also noted that 
Article 10 of the WTO Agreement on Customs Valu ation was implemented through Article 13 of the 
Customs Law, which expressly prohibited the Customs Authority from disclosing information about the valuation of specific good, the names, addresses or  other details about suppliers of goods, testing 
results, or information that was provided to the Cust oms Authority on a confidential basis, without the 
express permission of the person who provided the inform ation and without legal authority to do so.   
90. Responding to several questions, the representative of Afghanistan pointed out that, as 
required by Article 12 of the WTO Agreement on Cust oms Valuation, the Government of Afghanistan 
published its laws and regulations on customs valuation in the Official Gazette of the Ministry of 
Justice at www.moj.gov.af, and also in the hard co py version of the Official Gazette.  Concerning WT/ACC/SPEC/AFG/3 
Page 28  
 
  judicial decisions, these were published on the website of the Supreme Court of Afghanistan as well 
as in Mezan Gazette and Qaza Magazine.  As for administrative rulings, he acknowledged that these 
were not currently published.  However, he c ontinued, under a proposed amendment to the Customs 
Law, the Customs Authority would be required to promptly make publically available administrative decisions or rulings of general application by such means as would enable traders and other interested 
persons to become acquainted with them.  He concluded that it was anticipated that such rulings and 
decisions would be published on the website of the Mini stry of Finance.  He also noted that Article 16 
of the WTO Agreement on Customs Valuation, requiring written response to enquiries on how 
valuation was determined, was im plemented through Article 12 of the Customs Law, which stated 
that the Customs Authority was aut horised to provide information free of charge to a requesting party 
concerning the application of the customs legisl ation, unless such request conflicted with the 
confidentiality provisions of Ar ticle 13 of the same Law.   
91. He also acknowledged that Article 13 of the WTO Agreement on Customs Valuation was not 
yet incorporated in Afghanistan's national legislati on.  He pointed out that an amendment had been 
proposed to the Customs Law that would allow an importer to obtain release of goods on the basis of 
a declaration containing incomplete or provisional in formation, such as information related to customs 
value.  Under this proposed amendment, th e acceptance by the Customs Authority of such a 
declaration could be subject to provision of a gua rantee, and would require the declarant to provide 
any missing information within a period specified  by the Customs Authority.  The proposed 
amendment required the Customs Authority to ad opt by regulation the measures necessary to 
implement this procedure.    
92. The Customs Arbitration Administration and its  members were independent of the Customs 
Authority, whose decisions it reviewed, which in  view of the representative of Afghanistan was 
consistent with Article 11 of the WTO Agreement on Customs Valuation. 
93. Article 18 of the draft amendments to the Cu stoms Law provided for a right to appeal 
Customs determinations of customs value, without pe nalty.  This Article required an initial appeal to 
be made to the General Directorate of Customs; pr ovided for a right of further appeal to the Customs 
Arbitration Administration or to the Commercial Cour t; and stated that no person would be subject to 
fine or penalty by reason of exercising these rights of appeal.  Article 18 required the General 
Directorate to issue the decision on appeal in writing,  provide reasons, and info rm the appellant of his 
further rights of appeal.  The same obligation a pplied to the Customs Arbitration Administration 
pursuant to Articles 17 and 20(3) of the draft ame ndments.  The representative of Afghanistan said 
that Commercial Courts provided, in writing, its judicial decision to the appellant, including the  WT/ACC/SPEC/AFG/3 
 Page 29 
 
 
  reasons for its decision.  The Commercial Court did not formally inform the appellant about its rights 
of further appeal.  However, the plaintiff and defendant were cognizant of their rights for further 
appeal at the provincial level courts.   The represen tative of Afghanistan continued that in line with 
Article 11 of the CVA, an initial right of appeal  was made to "an authority within the customs 
administration," namely, the General Directorate.  Thereafter, the appellant had a choice to appeal 
directly to a court of competent jurisdiction – a "judicial authority" - or to the Customs Arbitration 
Administration established in the Ministry of Fina nce, to which the Afghan Customs Department was 
subordinate.  Moreover, decisions by the Customs Arb itration Administration could be appealed to the 
relevant Commercial Court by the appellant, if the amount at issue was AF 50,000 or less, or by the Government or the appellant, if the amount at issue exceeded AF 50,000.   
94. In reply to a specific question, the representativ e of Afghanistan reiterated that a new Article 
12A would be included in the Customs Law which would require the Customs Authority to make 
available administrative decisions or rulings of gene ral application promptly by such means so as to 
enable traders and other interested persons to b ecome acquainted with them.  Such decisions and 
rulings would be published on the website of the Mi nistry of Finance and/or the Afghanistan Customs 
Department and could also  be published in print. 
95. In reply to comments that Articles 2.1(b), 2.2, 2.3, 3.1(b), 3.2, 3.3, 15.2 and 15.3 of the CVA 
were currently not incorporated in  Afghanistan's legislation, he stated that these provisions were 
included in the draft Regulation on Customs Valua tion which would replace the Council of Ministers 
Regulation No. 38 of 23 January 2006.  He a dded that the Interpretative Notes of the WTO 
Agreement on Customs Valuation, the Decision on Software Valuation, and the Decision on 
Treatment of Interest Charges were also incor porated in the above-mentioned draft Regulation and 
would be submitted for review by the Working Party in November 2012.   
- Rules of origin 
96. The representative of Afghanistan stated th at Chapter 6 of the Customs Law of 2005 
addressed the rules of origin.  Currently, Afghanistan  did not have specific acts on rules of origin.  
He confirmed that there were no laws or regulations that would deny access based on country of origin.  The representative of Afghanistan indicated  that several amendments were being prepared 
concerning origin rulings prior to importation.  In response to a specific query regarding advance 
ruling on origin, the representative of Afghanistan st ated that the draft amendments to the Customs 
Law of 2005 had been prepared to reflect Arti cle 3(f) and Annex 2, paragraph 3(d) of the 
WTO Agreement on Rules of Origin.  WT/ACC/SPEC/AFG/3 
Page 30  
 
  97. He further noted that Article 17B (Binding Decisions) of the draft amendments to the 
Customs Law authorised rulings on origin of prosp ective imports.  This Article provided that Customs 
would issue binding decisions and that such decisions on origin would remain valid for three years 
from issuance.  Article 17 also required Customs to issue the decision within 30 days; to provide reasons for its decision; and define the conditi ons under which a decision could be revoked or 
annulled, and the procedures that apply in such cases.   He stated that his Government had prepared a 
draft Order on Advance Ruling on Binding Decisions  to implement these Articles of the Customs 
Law.  This draft Order set out rules for appli cation, processing and administration of rulings.  
It provided for rulings on country of origin of goods, for both preferential and non-preferential 
purposes, and on questions of tariff classification of  goods (i.e. Article 17B(1) required Customs to 
issue rulings on origin and allowed Customs to i ssue rulings on other matters).  The draft Order 
assigned responsibility for administration of the rulings programme to the Technical Director of 
Customs within the General Directorate of Customs.  
98. Certificates of origin were required for all shipments including import and export.  
There were no criteria or requirements that had to  be met by foreign bodies who issue certificates of 
origin.  Currently, the Afghan Customs Departme nt recognized Chambers of Commerce as competent 
authorities in the exporting country to provide certif icates of origin.  There was no formal process for 
checking the authenticity of the certificate of origin.  In case of doubt, the Afghan Customs 
Department would contact, via electronic means, th e competent authority (Chamber of Commerce) in 
the relevant country to verify the authenticity of the certificate.  
99. A Member considered that the requirement of a certificate of origin, issued by Chambers of 
Commerce, for each importation imposed an unn ecessary burden on exporters.  In response, the 
representative of Afghanistan stated that his G overnment had under consid eration a revision of 
Article 31 of the draft amendments to the Customs Law in order to clarify the type of documentary 
proof of origin (e.g., declaration of origin by expor ter or other competent person; certificate of origin; 
certified declaration of origin) and the conditions u nder which proof of origin could be required.  
Where a certificate of origin or certified declaration of origin was required, separate procedures would indicate the competent certifying authority or body.  This authority would permit the Afghan Customs 
Department to limit the cases under which documentary proof of origin could be required and to rely 
on the origin declared in the goods declaration.  The proposed revision to Article 31 which was under 
consideration would conform with  the terminology of the relevant WCO Revised Kyoto Convention.  
100. Asked to explain a procedure when a shipment lacked a certificate of origin at the time of 
importation, he said that Article 56A (Incomple te and Provisional Declarations) of the draft  WT/ACC/SPEC/AFG/3 
 Page 31 
 
 
  amendments to the Customs Law provided that Customs would release imported goods despite a 
missing required document, provided that the declaran t furnished a security to ensure collection of 
any applicable duties and taxes and undertook to provide the missing document within a period 
specified by Customs. 
101. As for exports, certificates of origin were ma ndatory for all exports, including to countries 
and for products that did not require such certifi cates to be accepted as imports in the country of 
importation.  This policy was in place to ensure that  exporters did not face any issues in the countries 
of importation in case a certificate was requested by relevant authorities.  The certificates of origin 
issued by the Afghanistan Chamber of Commerce and Industry (ACCI) for exports were the only ones 
recognized by Afghanistan's Customs Authority.  ACCI was the only Chamber in Afghanistan that had the system/process and resources to issue such ce rtificates and that had branches in the 23 regions 
of Afghanistan.  ACCI fees for issuing the export certificate of origin were AF 50 (around US$1) for 
India and AF 300 (around US$6) for other countries.  These fees were below the cost of services rendered and were esta blished by the High Council for Chamber Issues which included ACCI 
representatives, traders, Minister of Commerce and the Deputy Minister of Finance.  
102. He further noted that certificates of origin to exporters who were only exporting to countries 
which provided preferences to Afghan exports were now issued by the ACCI instead of the Export 
Promotion Agency of Afghanistan (EPAA).  
- Other customs formalities 
103. The representative of Afghanistan said that impor ters had to submit a customs declaration for 
imports accompanied by an invoice or other proof of the price actually paid, certificate of origin, and 
shipment documentation.  
104. The representative of Afghanistan said that a Memorandum of Understanding between the 
Minister of Finance responsible for customs ad ministration and the Minister of Commerce and 
Industries responsible for dry ports was to be si gned in the near future  to increase coordination 
between the two existing authorities for border measures.   
- Pre-shipment inspection 
105. The representative of Afghanistan stated that Afghanistan did not intend to implement a 
preshipment inspection programme.  WT/ACC/SPEC/AFG/3 
Page 32  
 
  106. The representative of Afghanistan confirmed that , from the date of accession, if a preshipment 
inspection scheme were to be intro duced in the future, its operation would be in conformity with the 
relevant provisions of the WTO Agreement, incl uding the Agreement on Preshipment Inspection, and 
the Agreement on Implementation of Article VII of the GATT 1994, inter alia , in respect of the due 
process and transparency requirements of the WTO Agreement, in particular Article X of the 
GATT 1994 and the Agreement on Implementation of Article VII of the GATT.  In addition, 
Afghanistan would ensure that charges and fees for preshipment inspection would comply with 
Article VIII of the GATT 1994, that preshipment  entities would establish and maintain appeals 
procedures as foreseen by Article 2.21 of the WT O Agreement on Preshipment Inspection, and that 
that scheme would not constitute an undue and additional burden on e xporters to or importers of 
goods into Afghanistan.  The Working Party took note of these commitments. 
- Anti-dumping, countervailing duties, safeguard regimes 
107. In reply to a question if any legal authority to restrain imports for balance of payments, 
commercial or competitive reasons existed in Afgh anistan, the representative of Afghanistan said 
Article 3(46) of the Draft Amendments to the Customs Law of 2005 provided a definition of 
"commercial policy measures" which meant the im position of quotas, ceilings, countervailing duties 
on subsidized foreign goods, anti-dumping duties, or similar provisions for advancing national 
(keshwar) commercial interests.  Th e responsibility for implementation of such measures rested with 
the Customs Authority.  Article 65 of the Draf t Amendments to the Cu stoms Law of 2005 required 
that release for free circulation would be subject  to application of commercial policy measures, 
completion of all requirements for importation of goods, and the collection of the customs debt.  
The representative of Afghanistan stated that no entity had been designated to implement this 
provision.  
108. The representative of Afghanistan stated that at present Afghanistan did not have 
anti-dumping, countervailing duty and safeguard la ws.  He added that Afghanistan intended to 
develop WTO-consistent legisl ation on anti-dumping, countervailing duty and safeguard measures 
and that measures would be applied and notified in accordance with respec tive WTO Agreements and 
that any existing or future authority to restrain im ports would be used in a WTO-compatible manner.  
He further noted that a draft Law on Safeguards wa s being developed and woul d be shared with the 
Working Party in the first quarter of 2013.  A final decision regarding the adop tion of laws related to 
anti-dumping and countervailing measures prior to WTO accession had not yet been made.  WT/ACC/SPEC/AFG/3 
 Page 33 
 
 
  B. EXPORT REGULATIONS  
- Customs tariffs, fees and charges for 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 th e 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 expor t authorization at MoCI was a formality and it had 
been eliminated. 
111. The representative of Afghanistan stated that export authorizations or approvals by other 
bodies were still required for all minerals; handicrafts (to check if antique); scrap metals; used glass, 
plastics and coal; printed books; broc hures; leaflets and other printed matters (Law on Media of 6 July 
2005); and films.  Currently, there was only an expo rt approval measure to de termine if handicrafts 
were antique.  If they were not, an export certificate was granted and a fee of 5 per cent of the value of 
the invoice was charged.  Details of current e xport 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 authorizatio n from Karakul Institute; (ii) handicrafts - export 
authorization from Handicraft Promotion Center; (iii)  carpets, rugs and felts - export authorization 
from the Carpet Exporter and Producers Guild;  and (iv) fresh fruits, dried fruits and vegetables - 
quality certificate issued by the Afghan Raisin, Fru its and Vegetables Promotion Association.  In 
reply to a specific question, he said that authori zations granted for export of scrap metals were 
automatic. 
112. With regard to export authorization for animal  products (skins, wools, and intestines), the 
representative of Afghanistan said that the Industr ial Commercial Services Association for Animal 
and Plant Products conducted visual inspection of e xported goods to ensure that they were in good 
condition/quality and were well packaged.  The objectiv e was to collect export statistics and to ensure 
that Afghan exports were of high quality in or der to maintain reputation for Afghan exports.  
Certain animal and plant products 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 requireme nts.  The representative of Afghanistan confirmed 
that the same criteria and objectives applied for sec uring export authorization for carpets and rugs WT/ACC/SPEC/AFG/3 
Page 34  
 
  from the Carpet Exporter and Producers Guild a nd 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 certified all 
export invoices and charged 0.1 per cent of the value of exported goods.  In reply to a specific 
question, the representative of Afghanistan 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 rendered no 
later than upon accession to the WTO.   
114. In addition, the ACCI issued certificates of or igin (COO) for exports, at a fee of AF 50 
(around US$1) for India and AF 300 (around US$6) for other countries.  The representative of Afghanistan stated the COO fees were be low the cost of services rendered.    
115. In 2011, the One-Stop-Shop (OSS) for export w as 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 si gned among relevant ministries, state bodies, and associations.  
The representative of Afghanistan provided a list of mandatory documents for exportation (see 
Table 10) and said that exporters had the option of obtaining these documents at the OSS (for ministries which had a representa tive at the OSS) or from the rele vant ministry.  In addition, he 
noted that the following documents were required to  clear Customs for export: customs declaration, 
packing list and bill of lading. 
116. The representative of Afghanistan stated that Afghanistan did not have any 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 
prepare to negotiate binding levels for its export duties.  The export taxes applied on those products 
were:  (i) fixed tax of 2 per cent when exporting wi th a business licence; (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 liabilit y of the trader and could be claimed as credit in 
the calculation of the trader's annual income tax a ssessment.  The representative of Afghanistan also 
said that there was a fixed tax of 2 per cent on all re-exports.   WT/ACC/SPEC/AFG/3 
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  - Export restrictions  
117. The representative of Afghanistan said that export of goods was currently subject to the 
procedures stipulated in the Business Licence Regula tion of 2004.  The representative of Afghanistan 
said that according to Article 53 of the Customs Law, the Head of Customs Department had the authority to adopt prohibitions or restrictions for reasons of:  public morality; public security; 
protection of the environment; protection of the he alth and life of humans, animals or plants; the 
protection of national treasures possessing artistic, histor ic or archaeological value; or the protection 
of industrial and commercial property and other st ate policies.  He noted that antiquities were 
currently prohibited from export in accordance with the Law on Preservation of Historic and Cultural 
Heritage of Afghanistan of 2004. 
118. The representative of Afghanistan stated that th e export of narcotics and illegal drugs and the 
export of timber were prohibited.  Details of export prohibited species of animals, plants and insects 
were provided in Table 12.  
- Export subsidies  
119. The representative of Afghanistan confirmed that  Afghanistan did not offer any reductions in 
direct or indirect taxation based on export perfo rmance.  There were also no government-sponsored 
schemes to promote exports through the use of subsidies.  
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 120. The representative of Afghanistan said that Afghanistan did not anticipate adopting any 
subsidies contingent upon export pe rformance or import substitution in the future.  It could, however, 
adopt industrial subsidies which were permitte d under the WTO Agreement on Subsidies and 
Countervailing Measures. 
121. Currently, the following two laws provided aut hority for granting subsidies in the minerals 
and hydrocarbon sectors: (i) Income Tax Law of  2009 - For a person holding a mining licence or 
mining authorization or who was a party to a hydrocarbons contract, a special tax regime was 
provided including accelerated depreciation and ex emption from the BRT; and (ii) the Law on 
Minerals of 2005 - It provided the Ministry of Finance with the authority to adopt measures for tax 
and customs duties applicable to holders of minera l rights and mineral activities.  These could include 
deferral of tax payments, accelerated depreciation,  exemptions from the BRT, and reduction of WT/ACC/SPEC/AFG/3 
Page 36  
 
  customs charges on machinery, equipment and ot her goods used in mineral exploration and 
exploitation.  Prior to accession, Afghanistan undert ook to submit draft notifi cation of any subsidy 
pursuant to Article 25 of the Agreement on Subsidies and Countervailing Measures. 
122. The establishment of industrial parks was an im portant factor in attracting investment to 
Afghanistan.  The Ministry of Commerce and Industr ies evaluated applicatio ns for establishment in 
the old parks and the Afghanistan Investment Suppor t Agency (AISA) evaluated those established in 
new parks.  The draft criteria for allotment in indu strial parks were being revised.  Once finalized, 
they would be presented to the High Co mmission on Investment for approval. 
123. In response to a question regarding the industria l parks, the representative of Afghanistan said 
that there were around 400 companies in the old indu strial parks in Kandahar, Pul-e-Charki, Herat and 
Mazar-e-Sharif.  He also added that new industria l parks have been constr ucted in Bagrami, Mazar 
and Kandahar and parks were under construction in Helmand and Hasar shahi.  In all new industrial 
parks, the Government as developer of the park was providing the basic infrastructure facilities such 
as roads, water, electricity, sewage facilitie s and waste water treatment facilities.  
No tax/duty exemptions or other subsidies were pr ovided for locating in the industrial parks or for 
goods produced in the parks.  Asked about preference s available to enterprises in the industrial parks, 
he said that such enterprises were not eligible for an y customs tariff, tax or other preferences but they 
had access to land at lower cost and adequate infrast ructure.  All Afghanistan laws including the new 
Labour Code equally applie d on all persons established in the industrial parks. 
124. The representative of Afghanistan noted that income from export of goods and services was 
not exempt from corporate income tax.  Export recei pts were exempt from the Business Receipts Tax.  
A Member raised concerns that this exemption appeared inconsistent with the requirements of 
Article 3.1(a) of the WTO Agreement on Subs idies and Countervailing Measures prohibiting 
subsidies contingent upon export performance.  In th e view of the representative of Afghanistan, these 
measures were in line with common international practice where, for example, export receipts were 
VAT-exempt or zero-rated. 
125. The representative of Afghanistan stated that although the Customs Law of 2005 contained 
duty drawback provisions, there was no duty dr awback mechanism in place or implementing 
regulations and thus the provision was currently not operational.  He said that if Afghanistan decided 
to operationalize duty drawback provisions, implemen ting regulations would be  consistent with the 
Law, e.g. there would be no duty drawback in excess of duties actually paid.  He noted that 
Afghanistan currently maintained records of duties paid at the time of importation.   WT/ACC/SPEC/AFG/3 
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  126. Afghanistan was prepared to make a commi tment not to introduce export performance or 
local content requirements prohibited under Article 3 of the Agreement on Subsidies and 
Countervailing Measures. 
- Technical barriers to trade, standards and certification  
127. The representative of Afghanistan said that th e Afghan National Standardization Authority 
(ANSA), the regulating body, was developing tec hnical regulations and st andards on construction 
materials, petroleum and gas, medicines and metrolog y with the intention of avoiding the creation of 
unnecessary barriers to trade.  ANSA was reporting only  to the Supreme Council of Standards, which 
was the highest decision-making authority on standardization.  Article 25 of the Draft Law on Standards and Technical Regulations stipulated th e composition of the Supreme Council of Standards 
while Article 26 laid out its duties and authorities. 
128. According to Article 27 of the Draft Law on Standards and Technical Regulations, ANSA 
was responsible for implementation of a unified po licy in the field of standardization, technical 
regulations, metrology and conformity assessment, en suring transparency and consistency of actions 
of standardization works.  ANSA was not presently involved in setting any food safety standards as 
they were set out by the Ministry of Agricultu re, Irrigation, and Livestock (MAIL), the General 
Directorate of Animal Health and the Directorate for Plant Quarantine, and the Ministry of Public 
Health (processed food and medicine).  The MAIL and the MPH were however members of the technical committee established by the ANSA for de veloping quality standards for food, cosmetics, 
medicines, and medical equipment.  The General Directorate of Food Security and Quality Control 
under the MAIL was committed to the food quality standards set by the ANSA.   
129. The representative of Afghanistan stated that Af ghanistan relied on international standards for 
its technical requirements.  The ANSA was currently  a Correspondent Member of the International 
Standards Organization (ISO) and an Affiliate Member of the International Electrotechnical 
Commission (IEC).  The representative of Afghanistan  said that initially, Afghanistan had adopted 
three national standards dealing with gasoline, di esel, and kerosene that were based on the American 
Society for Testing and Materials (ASTM) standards.  In early 2011, the Supreme Council of Standards was established on the basis of  the Afghan National Standards Law dated 
19 September 2010.  Since then, 51 national standards, developed by  nine Technical Committees were 
adopted.  No technical regulations had been develo ped or adopted under this Law.  He further noted 
that Afghanistan had developed a draft Law on St andards and Technical Re gulations which covered 
more extensively technical regulations in accord ance with the WTO Agreement on Technical Barriers 
to Trade.  Once adopted, this Law would repl ace the Afghan National Standards Law of 2010.  WT/ACC/SPEC/AFG/3 
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  130. For the import of petroleum products a nd iron/steel products, the ANSA carried out 
laboratory analysis at the entry point and provide d quality certificates based on the American Society 
for Testing and Materials (ASTM) standards.  The ANSA conducted laboratory testing of petroleum 
products at the border to check conformity with  quality standards and stamp import documents.  
As for iron/steel products, samples were sent for testi ng at the laboratories of the Ministry of Public 
Works or the Engineering Faculty at Kabul University. 
131. Asked to identify the relevant publications fo r proposed standards and technical regulations, 
the representative of Afghanistan replied that the ANSA would be issuing a new magazine and would be establishing a website.  He noted that ANSA w ould only publish draft national standards which 
deviated from international standards, for comment s prior to their finalization.  ANSA's Technical 
Committees had thus far been focusing on adopting international standards in their entirety.  
The ANSA was currently issuing a quarterly mag azine (National Standard Magazine) where ANSA 
published a catalogue of recently-approved standards.   The ANSA intended to expand this magazine 
to cover planned and draft nationa l standards in the future.  He further noted that draft national 
standards would also be published for comments on the recently-established website 
(www.ansa.gov.af).  
132. In reply to a question concerning technical regulations, the representative of Afghanistan 
stated that Afghanistan intended to issue its ow n TRs which could be based, when appropriate, on 
TRs of other countries in case international standards did not exist or were deemed inappropriate or 
ineffective.  In addition, Afghanistan could also adopt TRs of other countries as equivalent to national 
technical regulations.  Asked as to how conformity  assessments would be carried out, he said that 
Afghanistan was in the process of establishing a co nformity assessment system whereby Afghanistan 
would recognize certificates issued by conformity assessment bodies, which could be Afghan or foreign entities, accredited by internationa l or recognized regional accreditation bodies. 
133. Afghanistan would develop criteria for meeti ng equivalency requirements at a later stage 
through implementing regulations.  Supplier's (man ufacturer's) declaration would be accepted as 
provided in Article 18(1) of the Draft Law on St andards and Technical Regulations.  Conformity 
assessment results of internationally rec ognized conformity assessment bodies (including 
Underwriters Laboratories) would be accepted as long as these conformity assessment bodies were 
accredited by bodies recognized in Afghanistan.  Once approved, Afghanistan would publish the list 
of recognized accreditation bodies in Afghanistan.  This would certainly include ILAC affiliated 
bodies.  The representative of Afghanistan said that Afghanistan would be seeking to include in the 
Draft Report of the Working Party on the Accession of Afghanistan transition for the implementation  WT/ACC/SPEC/AFG/3 
 Page 39 
 
 
  of certain provisions (such as e quivalence and supplier’s declaration) of the Draft Law on Standards 
and Technical Regulations.  These transitions, once agreed upon, with Working Party Members, will 
be included in a transitional article in the Draft Law. 
134. In response to a Member's question, the re presentative of Afghanistan noted that ANSA 
would use the WTO TBT Code of Good Practice in the development of its national standards.  
He said that ANSA was the only body in Afghanis tan, i.e. there were no local and regional 
government and non-government bodies which adopted standards.  Asked about adopting 
international and regional standards, he noted that  ANSA was focusing on the adoption of ISO, IEC, 
and ASTM, and Codex Alimentarius  standards.  In the future, ANSA could consider regional 
standards developed by the South Asian Regi onal Standards Organization (SARSO) and other 
regional standardization bodies in which it was a member or seeking membership.  ANSA was a 
member of Regional Institute for Standards, C onformity Assessment, Accreditation and Metrology 
(RISCAM) which operated under Ec onomic Cooperation Organization (E CO). ANSA also applied for 
membership in Standard and Metrology Institute  of Islamic Countries (SMIIC) which operated under 
Organization of Islamic Countries (OIC).  
135. He also confirmed that any standards, t echnical regulations, or conformity assessment 
procedures would be applied on a non- discriminatory basis on imported goods. 
136. In response to a Member's question, the re presentative of Afghanistan stated that a 
TBT Enquiry Point, as provided for in Articles 10.1 and 10.3 of the WTO TBT Agreement, was not 
yet operational.  He confirmed that Afghanistan  planned to establish a TBT Enquiry Point.  
He pointed out that Article 37 of the draft Law on Standards and Technical Regulations called for the 
establishment of the Information Center under th e Afghan National Standards Authority (ANSA) 
which would serve as the Enquiry Point and it would be formally established once the legal 
framework is adopted.  The Draft Law on Standards and Technical Regulations was expected to be 
adopted during second half of 2013/first half of 2014.   Afghanistan was also considering to adopt a 
temporary legal measure at the Ministerial level to  formally establish the TBT Enquiry Point prior to 
the adoption of the Draft Law on Standards and Tec hnical Regulations and as early as January 2013.  
He noted that the ANSA had established a website ( www.ansa.gov.af). Materials for the website were 
being finalized and would be uploaded in the near  future.  In the meantime, enquiries regarding 
Afghanistan's standards could be addressed to the ANSA at: WT/ACC/SPEC/AFG/3 
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   Afghan National Standardization Authority 
 Standard Information Centre  Industrial Parks Area  Kabul-Jalalabad Road  Kabul, Afghanistan 
 Tel. No.: +93752093127 
 Fax No.: +93752045158  Email: ansa.ceo@gmail.com and admin.ansa@gmail.com 
- Sanitary and phytosanitary measures 
137. The representative of Afghanistan stated that the Afghan National Sta ndardization Authority 
(ANSA) did not have any role in the area of san itary and phytosanitary measures.  The Ministry for 
Agriculture, Irrigation and Livestock (MAIL) was responsible for veterinary/animal health and 
phytosanitary/plant health measures and the fo llowing legislation was in place:  the Law on 
Veterinary Services of 2000; the Law on Plant Quar antine of 3 October 1996; and the Regulations on 
the Quarantine of Plants of 23 October 1996.  The Mini stry of Public Health was also responsible for 
sanitary measures.  He noted that Afghanistan  however did not have a law on food safety.  
The representative of Afghanistan stated that drafti ng of additional legislation to establish framework 
laws in line with the WTO SPS Agreement, i.e. the Law on Food Safety, the Law on Plant Protection and Quarantine and the Law on Animal Health and Ve terinary Services, had been completed at the 
ministerial level.  Once adopted, these new laws  would replace the existing laws on veterinary 
services and plant quarantine. 
138. The representative of Afghanistan stated that  SPS measures were implemented and enforced 
throughout the country.  The Directorate for Plant Qu arantine had nine official quarantine stations in 
Afghanistan servicing all regions of the country.  The actions of quarantine inspectors were based on 
quarantine legislation (the Law on Plant Quaran tine of 3 October 1996 and the Regulations on the 
Quarantine of Plants of 23 October 1996) in force at  the national level which provided that all plant 
products which were exported or imported need ed to be free of plant pest and disease.  Similarly, the 
General Directorate of Animal Health had nine  regional stations whic h implemented national 
legislation to prevent animal disease.  The representa tive of Afghanistan noted that border control for 
the movement of animals to and from Pakistan and th e import of products of animal origin was almost 
impossible to enforce due to poor security situation in  many border areas.  Informal trade in live sheep 
was also taking place in the northwest and southwest of the country.  
139. He noted that Afghanistan had been a member of Codex Alimentarius since September 2005.  
It had been a member of the World Organization for Animal Health (OIE) since 1988.  As regards  WT/ACC/SPEC/AFG/3 
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  Afghanistan's membership in the International Pl ant Protection Convention (IPPC), its application 
was submitted to the FAO by the Minist ry of Foreign Affairs in May 2012. 
140. He said that Afghanistan would use, as the basis for its SPS regulations, the standards, 
recommendations, and guidelines of Codex, OIE, an d the IPPC.  The representative of Afghanistan 
stated that in cases where Afghanistan needed highe r protection of human, animal or plant health and 
life, a science-based risk assessment would be cond ucted in accordance with the principles of the 
WTO SPS Agreement and guidelines of Codex, OIE and the IPPC. 
141. The representative of Afghanistan further not ed that many of Afghanistan's recent 
SPS measures were based on interna tional standards, guidelines, and recommendations from the OIE 
and the IPPC.  Few measures were base d on Codex Alimentarius.  The representative of Afghanistan 
stated that Afghanistan would conduct an assessment to identify those measures that were not in line 
with the standards, guidelines, and recommendations  of the IPPC, Codex Alimentarius, the OIE and 
develop action plans for harmonization.  He further noted that Afghanistan did not currently have in 
place procedures, technical capacity or equipment to carry out science-based risk assessment in 
accordance with the WTO SPS Agreem ent and guidelines of Codex, OIE and the IPPC.  Afghanistan 
was planning to harmonize, during the next four y ears, with a number of international standards, 
guidelines and recommendations from the OIE and the IPPC.  However, significant capacity building 
and technical assistance were required to carry out this  work.  In the area of plant health, there was a 
need to renovate and modernize a ll facilities (including laboratories)  and properly equip them and to 
develop sound testing methodologies.  As regards animal health, the priority areas included disease 
notification (including lis ting of diseases) and reporting, animal he alth surveillance, the regulation of 
import and export of live animals and products of animal origin, veterina ry diagnostic laboratory 
services, and food safety.  The main challenge for Af ghanistan to fully comply with OIE requirements 
was rebuilding veterinary capacity after decades of conflict, especially in the areas of disease 
surveillance and laboratory diagnostic capacity. 
142. In response to questions from Members, the re presentative of Afghanistan confirmed that the 
Ministry for Agriculture, Irrigation and Livestock (M AIL) was in charge of developing, implementing 
and enforcing veterinary and phytosanitary measur es.  It was responsible for (i) ensuring that 
veterinary and phytosanitary measures were ba sed on a science-based risk assessment; and 
(ii) conducting inspection and testi ng related to veterinary and ph ytosanitary measures.  For the 
import of non-processed agricultural products (except live animals and live plants), agrochemicals and 
chemical fertilizers, the General Directorate of Fo od Security and Quality Control under the MAIL 
carried out quality examination (mostly physical in spection) at the border and examined the quality WT/ACC/SPEC/AFG/3 
Page 42  
 
  certificate issued by the exporting country (man datory requirement to import) and provided a 
certificate to release the goods.  
143. The representative confirmed that the MAIL was responsible for issuing the following 
certificates which were mandatory for export of resp ective products:  (i) phytosanitary certificate for 
export of plants and plant products.  This was issued by the Direct orate for Plant Quarantine under the 
MAIL; and (ii) quality permit for e xport of all non-processed agricultural food products (except live 
animals and live plants).  This was issued by th e General Directorate of Food Security and Quality 
Control under the MAIL.  He noted that a quality certificate for export of fresh fruits, dried fruits, and vegetables, issued by the Afghan Raisin, Fruits a nd Vegetables Promotion A ssociation, was no longer 
mandatory.  In reply to a specific question, he said that the same requirements for veterinary and 
phytosanitary measures applied for internal market  and for the products intended to be exported.  
The phytosanitary and veterinary certificates were  not however issued for domestic market although 
both domestic and exported goods were subject to the same requirements. 
144. The Ministry of Public Health was in charge  of developing, implementing, and enforcing 
sanitary measures.  It was responsible for (i) ensuring that sanitary measures were based on a 
science-based risk assessment; and (ii) conducting insp ection and testing related to sanitary measures.  
For the import of processed food products and drugs , the Ministry of Public Health carried out a 
quality examination at the clearance point.  The repr esentative of Afghanistan explained that samples 
would be taken for laboratory testing and qua lity (safety) certificate would be issued.  
For pharmaceuticals, Codex Alimenta rius would be used as the basis as well as British Pharmacopia, 
US Pharmacopia and European Pharmacopia.   
145. Before importing animal and animal products, im porters were required to obtain a Conditions 
Statement signed by the General Directorate of An imal Health under the MAIL.  For clearance at 
entry points, the importer had to show the Conditions Statement and provide the certificate of origin.  
For all animal products, samples we re taken and sent for testing at  laboratories.  After laboratory 
results were received (one to two days), permission would be provided by the General Directorate of 
Animal Health to allow circulation of animal products.  For live animals and animal products, the 
importer was required to provide veterinary certificat e issued by the country of exportation.  The OIE 
standards were used as a basis.  
146. For importing plant and plant products, the certific ate of origin was required but there was no 
need for a Conditions Statement.  The importe r was required to provide only the phytosanitary 
certificate issued by the country of exportation.  Fo r all plants and plant products, samples were taken 
for testing by the Directorate for Pl ant Quarantine.  Test results were usually provided in one to two  WT/ACC/SPEC/AFG/3 
 Page 43 
 
 
  days and permission was provided for circulation of  goods.  As regards importation of seeds, a Seeds 
Import Certificate, issued by the Seeds Directorate at MAIL, was required. 
147. Certificates of quality issued by other countries were recognized by the General Directorate of 
Food Security and Quality Control under the MAIL. Afghanistan required that certificates had to be 
issued and signed by the official competent authorit y of the country of origin.  Afghanistan does not 
have the capacity, the resources, or procedures to determine whether or not veterinary certificates 
issued by another country were not fake but inte nded to develop appropria te procedure related to 
veterinary certificate in line with the OIE.  Th e Afghan National Standardization Authority and the 
Ministry of Public Health did not currently recognize quality certificates issued by other countries.  
148. For the import of processed food products, inte rnational sanitary certificate was required.  
Testing was required before clearance of goods and,  as a result, the quality (safety) certificate was 
issued.  Afghanistan followed the limits recommend ed by Codex Alimentarius and the International 
Commission on Microbiological Specifications for Foods ( ICMSF).   The Ministry of Public Health 
conducted microbiological/bacteriological testing only fo r imports of bottled water.   Such testing was 
not conducted on processed food products due to lack  of technical capacity, resources, and necessary 
laboratory equipment.  
149. The representative of Afghanistan confirmed th at currently, there was no website providing 
information regarding Afghanistan's health, plant h ealth, sanitary and food safety measures.  He said 
that Afghanistan had not formally established its SP S Enquiry Point (ENP).  He said that the three 
draft SPS laws (the Draft Law on Plant Protection and Quarantine, the Draft Law on Food, and the 
Draft Law on Animal Health and Public Health ) called for the establishment of the SPS ENP.  
These drafts followed closely the provisions of th e WTO SPS Agreement.  It was envisioned that a 
single National SPS ENP would be established for ha ndling enquiry and notifications.  The SPS ENP 
would be established at the Ministry of Agricultu re, Irrigation, and Livestock (MAIL) and would be 
staffed by two part-time MAIL employees who woul d handle both enquiries and notifications and 
assume other responsibilities within MAIL.  Three c ontact points would be designated to regularly 
interact with the staff of the SPS ENP and provide,  when needed, required information for notification 
and replies to enquiries:  (i) Contact Point at th e General Directorate for Animal Health at MAIL, 
responsible for veterinary measures; (ii) Contact Point at the Directorate for Plant Quarantine at 
MAIL, responsible for phytosanitary measures; and (iii) Contact Point at the Ministry of Health, 
responsible for food safety measures.  These Contact Points would submit draft measures at early stage (once initial draft is elaborated) to the SPS ENP through a web portal wh ich would be developed 
for this purpose.  A notice of the availability of the proposed SPS measure would then be published on WT/ACC/SPEC/AFG/3 
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  the National SPS ENP website and the measure woul d be notified to the WTO through the SPS ENP 
no less than 60 days before finalizing the draft SPS measure.  He said that the SPS ENP would be 
formally established once the legal framework is  adopted.  The three draft SPS laws, mentioned 
above, were expected to be adopted during second half of 2013/first half of 2014.  Given the need for 
developing implementation mechanisms and build re lated capacity, these laws would come into force 
one year after adoption.  Afghanistan was consid ering to adopt a temporary legal measure at the 
Ministerial level to formally establish the Nationa l SPS ENP prior to the adoption of three draft SPS 
laws and as early as January 2013.  In the m eantime, all enquiries regarding SPS measures (animal 
health and plant health) could be addressed to the following:  
 Ministry of Agriculture, Irrigation and Livestock 
 General Directorate on Animal Health  Kabul, Afghanistan   Tel. No.: +93(0) 700 277 980 or +93(0) 774 501 361 
 Fax No.: N/A 
 Email:  noor_ariaie2006@yahoo.com 
150. As for sanitary measures, enquiries could be addressed to the following: 
 Ministry of Public Health 
 Lab Directorate of Food and Drug Quality Control  Shah-I – Dushamshera Ave  Kabul, Afghanistan 
 
 Tel. No.: +93(0) 799 33 11 51  Fax No.: N/A  Email:  ksultani@gmail.com 
151. The representative of Afghanistan confirmed th at Afghanistan did not have any laws or 
regulations regarding goods produced with biotechnology.  The importation and domestic 
manufacture of goods using biotechnology was not currently regulated in Afghanistan. 
- Trade-related investment measures 
152. The representative of Afghanistan stated that Afghanistan provided concessions to foreign 
investors in accordance wi th Article 18 of the Private Investme nt Law, enacted in December 2005, as 
well as in accordance with the In come Tax Law of 2009 and the Customs Law of 2005.  Under the 
Mineral Law of 2005 holders of mineral rights we re free to import goods and services necessary for 
their mineral activities, provided that Afghan persons were given priority for any contract to procure 
such goods and services, under conditions which were e quivalent in terms of quantity, quality, price 
and delivery dates.  The Hydrocarbons Law of 2009  provided that if Afghan goods and services were  WT/ACC/SPEC/AFG/3 
 Page 45 
 
 
  similar and equivalent in quality,  quantity, and price to importe d foreign goods and services, the 
contractor would be obliged to purchase and proc ure Afghan goods and services.  Under the current 
rules, trade performance was not set as a condition for investment. 
- Free zones, special economic areas 
153. The representative of Afghanistan stated that there were currently no free economic zones in 
Afghanistan.  In addition, there were currently no duty free zones, free warehouses, or free shops in 
Afghanistan where goods were processed.  Howeve r, the Reconstruction Opportunity Zones (ROZ) 
programme, an initiative of the Governments of Af ghanistan, Pakistan and the United States, was 
currently under consideration.  This programme  would provide duty free access to final products 
processed in specified economic zones in designated areas of both Afghanistan and Pakistan.   
- Government procurement 
154. The representative of Afghanistan said that government procurement policy and practices 
were administered nationally by the Procurement M onitoring Office, Department of Fiscal Policy of 
the Ministry of Finance.  Government procurem ent was governed by the Public Procurement Law 
(PPL) enacted in October 2005. According to the PPL, the Procurement Policy Unit (PPU) was 
established in the Ministry of Finance in August 20 06.  The PPU issued Rules of Procedures in 2007 
including standard bidding documents for goods and standard request for quotations for goods 
and works.  Since 2005, the PPL was amended twice through President Decree No. 59 of 21 July 2008 
and President Decree No. 147 of 18 January 2009. 
155. In response to a specific questi on, the representative of Afghanistan said that Article 7 of the 
PPL stipulated that procuring entities were obliged to procure goods, works or services 
produced/furnished domestically in accordance with th e bidding documents, provided that the price of 
the domestic procurement was not higher than the im ported procurement by a percentage set in the 
procedures (Article 7(1)).  In comparing the bids of bidders who did not have a resident representative 
in Afghanistan, or who were not subject to Afghani stan taxes, with the bids of those that had a 
resident representative or were subject to Afghanist an taxes, the bid prices of the first category would 
be increased by the percentage set in the procedure (Article 7(2)).  The representative of Afghanistan 
stated that the PPL did not refer to a distinc tion between procurement of goods for government 
consumption and purchases for state needs that c ould ultimately compete in the private market. 
156. All types of public procurement, i.e. procur ement of goods, works and services were covered 
by the PPL (including procurement of infrastruct ure and award of concessions) and there were WT/ACC/SPEC/AFG/3 
Page 46  
 
  thresholds prescribed for the Award Authority.  De tails of the Award Authority in approving contracts 
were provided in Table 13.  The Award Authority c ould partially or in full delegate the powers to 
secondary units, Deputy Ministers and Directors of th e relevant departments.  Where the monetary 
value of supply and procurement of goods, works and services exceeded the thresholds limits as 
provided in Table 13, the contracts were approve d by the Special Procurement Commission consisting 
of the Minister of Finance as Chairman of the Commission and the Minister of Justice and the 
Minister of Economy as members. 
157. In response to a query regarding specific provisions on review bodies and remedies, the 
representative of Afghanistan noted that as per Arti cle 71 of the Public Procurement Law of 2008, a 
bidder that had suffered damage due to the viola tion of the law was entitled to seek review by 
submitting a written application for review identifyi ng the specific decision, act, or failure to act 
alleged to violate the procurement legislation.  As  per Article 72, the Proc urement Policy Unit (PPU) 
would establish an administrative review committee composed of experts for the purposes of conducting administrative review of applications and related appeals and the detailed appeal and 
review procedures would be as prescribed by th e PPU.  The Appeal and Review manual had been 
issued officially and the Appeal and Review Committee was operational. 
158. The PPL contained the following provisions wher e favourable treatment could be provided:  
(i) Article 7 provided margin of price preference  in favour of domestic sources; (ii) Article 8 
encouraged policies and practices aimed at fosteri ng participation of small domestic enterprises and 
individuals in procurement; (iii) Article 9 aimed at  promoting protection of environment in public 
procurement; and (iv) Article 25 provided the condi tions under which international tendering could 
be held.  The representative of Afghanistan said that  all tenders were open fo r all eligible bidders, 
both foreign and domestic.  Under Article 25 of the PPL,  an international tendering would be held in 
the following conditions:  (i) the goods, works or  services were not available on competitive price 
terms from at least three bidders in Afghanistan; or (ii) a national tenderi ng proceeding had failed to 
identify an acceptable bidder. 
- Transit  
159. The representative of Afghanistan said that the transit of goods could be realized by any 
public route and was covered by re lated provisions of:  (i) the Customs Law; (ii) international and 
domestic transit procedures based on the AS YCUDA++ System; and (iii) the Law on Road 
Transportation and the Freight Forwarding Regulation.   WT/ACC/SPEC/AFG/3 
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  160. Afghanistan prohibited trade in transit for prohi bited goods (e.g. pork, alcohol).  Afghanistan 
did not restrict trade in transit for any country.  Generally, no escort was required except in special 
cases (e.g. goods with high import duty in Afghanistan and transported in open cargo) and there was 
no escort fee.  Record keeping was being c onducted through the ASYCUDA system which was 
intended to cover all entry/exit points in Afghanistan. 
161. The representative of Afghanistan stated that Afghanistan was a signatory to the Economic 
Cooperation Organization (ECO) Transit Trans port Framework Agreement (TTFA) which was 
ratified by Afghanistan in 2003.  All ECO members,  except Uzbekistan were signatories of the TTFA.  
The objectives of the TTFA were:  (i) facilitation of movement of goods and passengers to ensure the 
safety of goods and passengers and to avoid unnecessary delays during the transit traffic; 
(ii) cooperation and coordination of the efforts to  avoid the incidence of customs fraud and tax 
evasion; and (iii) harmonization of necessary administ rative affairs dealing with transit traffic.  
The Contracting Parties, which were also parti es to the Customs Convention on the International 
Transportation of Goods under the TIR Conventi on 1975, would apply the provisions of that 
Convention amongst themselves.   
162. The representative of Afghanistan stated that Af ghanistan had also signed transit agreements 
with Iran, Pakistan, Uzbekistan, Tajikistan, Tu rkey, and Turkmenistan.  A new Transit Trade 
Agreement was signed in 2010 with Pakistan whic h replaced the 1965 Agreement.  Afghanistan had 
also signed an agreement with Turkey on intern ational road transport which contained transit 
provisions.  These agreements would grant all goods of the contracting parties the right of freedom of 
transit within territory of the countries with no restrictions. 
163. The Afghanistan Pakistan Transit Trade Agreement (APTTA) came into force on 
12 June 2011.  The purpose of the APTTA was to  facilitate the movement of goods between and 
through their respective territories and to provide all possible facilities to transit traffic in accordance 
with the Agreement.  The main provisions of the Agreement included freedom of transit through the 
territory of each contracting party, via the pre-se ttled routes most convenient for international transit, 
for traffic in transit to or from the territory of other contracting party; facilitation of clearance procedures with a view to ensuring the clearance of  transit traffic without delay; establishment of 
technical requirements for admittance of road vehicles and professional competence for transport 
operators to be eligible for transit operations  as well as corresponding certification, licensing 
requirements and mutual recognition obligations; na tional treatment for transport operators with 
respect to rules and procedures affecting transit traffic and any charges, expenses, or financial 
obligations incurred with regard to the means of transport and labour used for transit operation.  WT/ACC/SPEC/AFG/3 
Page 48  
 
  No customs duties and taxes would be levied on goods in transit and means of transit transport 
regardless of their destination and purpose.  Such tr ansit would need to be covered by:  (i) securities 
guaranteeing payment of import duties and import ta xes for goods, if the goods did not cross the 
territory of the host country; and, (ii) through a bank guarantee (or revolving bank guarantee, insurance bond or Carnet-de-Passage when operational) for transport vehicles, if the vehicle covered 
by temporary admission papers wa s not re-exported within the prescribed time limits.  The APPTA 
also envisaged installation of vehicle tracking sy stems in both countries for purposes of monitoring 
transit traffic and could set up a quota system when issuing transit permits with respect to ensuring a 
fair share of traffic.   
164. The representative of Afghanistan said that Af ghanistan was prepared to provide transit 
conditions as established under Article V of the GA TT 1994 to WTO Members on an MFN basis.   
- Agricultural policies 
165.  The representative of Afghanistan stated that all import procedures desc ribed in Section on 
Policies Affecting Trade in Goods applied equally to  agricultural imports.  No other border measures 
were applied to agricultural goods other th an sanitary and phytosanitary measures.  
166. At present, there was no special export regime applicable to agricultural goods and no export 
subsidy measures were currently in place.  The representative of Afghanistan confirmed that there 
were no export prohibitions or restrictions for agri culture products and no ex port credits other than 
those available from commercial banks.  There was also no system of export credit guarantees or 
relevant insurance programmes for agricultural goods.  
167. Asked as to whether Afghanistan would co mmit not to use export subsidies, the 
representative of Afghanistan stated that his G overnment would make a decision on such critical 
commitment at a later stage in the accession process. 
168. The representative of Afghanistan noted that the Ministry of Energy and Power supplied 
water for agricultural purposes free of charge.  
169. The representative of Afghanistan stated that due to the central role of agriculture in 
determining national welfare, the Afghan Governme nt pursued a strategy designed to increase food 
production and enhance food security.  This st rategy included the following domestic support 
measures:  (i) provision of infrastructure services including electricity, roads and water reticulation 
and management; (ii) provision of extension servi ces; (iii) research; and (iv) local level programmes 
aimed at increasing food production, the stabilizati on of shifting cultivation (slash and burn), and  WT/ACC/SPEC/AFG/3 
 Page 49 
 
 
  sustainable community based resource management a nd diversification of farm ing systems.  Many of 
these services were under the responsibility of the Mi nistry of Agriculture, Irrigation and Livestock 
and the Ministry of Rehabilitation and Rural Devel opment.  These programmes were often carried out 
in conjunction with foreign aid and other donor projects.  The representative of Afghanistan added 
that most of these programmes were of the typ es classified as Green Box domestic support under the 
WTO Agreement on Agriculture.  
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- GENERAL - Industrial property protection 
170. The representative of Afghanistan noted that the Government was firmly committed to 
finalizing an intellectual property protection regi me which was compliant with the WTO Agreement 
on Trade-Related Aspects of Intellectual Propert y Rights (WTO TRIPS Agreement) as soon as 
possible.  The copyright and related rights regime  of Afghanistan was currently governed by the Law 
on Supporting the Rights of Authors, Composers, Ar tists and Researchers (Copyright Law) which was 
enforced from 21 July 2008.  The patent regime was governed by the Law on Supporting the Rights of 
Inventors and Discoverers of 31 April 2009 (Patents Law).  The basis for the trademarks regime was 
the Law on Trade Marks Registration of 1 September 2009.  
171. Afghanistan was in the process of drafting add itional legislation on Geographical Indications, 
on Industrial Designs, on Trade Secrets, on Topogr aphy of Integrated Circuits, on Unfair 
Competition, on Optical Disks, on Plant Variety Protection, , and draft Order on Intellectual Property 
Border Enforcement which would be  completed by the end of 2012. 
 
- Responsible agencies for policy formulation and implementation 
172. In March 2010, an Intellectual Property Office (IPO) was established at the Ministry of 
Commerce and Industries (MoCI), with responsibiliti es for patents, trademarks, industrial designs, 
geographical indications, and genetic resources.  Also , a Copyright Directorate dealing with copyright 
and related rights was established at the Ministry of Information and Culture.  
- Participation in international intellectual property agreements 
173. The representative of Afghanistan stated that Afghanistan became a Member of the World 
Intellectual Property Organization (WIPO) in September 2005.  WT/ACC/SPEC/AFG/3 
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  - Application of national and MF N treatment to foreign nationals 
174. The representative of Afghanistan stated that  the Copyright Law currently observed MFN 
principles, and that the pending amendments to Ar ticle 47 of that Law would define applicability in 
accord with the Berne Convention, providing protection on a national treatment basis.  He added that the Patents Law made no distinction among foreign patent applicants or right holders based on 
nationality, but Article 31(1) of that Law was unde r examination to ensure that it complied with 
national treatment principles.  Article 5 of the Law on Trade Marks Registration covered aspects of 
intellectual property rights in Afghanistan whic h entitled foreign nationals  engaged in lawful 
production, commercial and service activities to regi ster a trademark on the same basis as Afghan 
nationals.  Further, pending draft laws on geographical indications, integrated circuits, undisclosed 
information, and industrial designs would observe national and MFN treatment principles.  He also 
said that Afghanistan was aware of the importanc e of granting national and most favoured nation 
treatment to foreign nationals and those princi ples would be honoured once Afghanistan became 
bound by the WTO TRIPS Agreement. 
- Fees and taxes  
175. The representative of Afghanistan said that th e fees to be charged for the protection of 
intellectual property rights by the new Intellectual Prop erty Office had not yet been set.  He noted that 
once established, the fees would not discriminate between foreign and national persons.  He undertook to provide the Working Party with the relevant fee schedule when available.  
176. In response to a specific question from a Memb er that trademark applicants from foreign 
companies were charged different and possibly high er fees, the representative of Afghanistan stated 
that, pursuant to the Law on Trade Marks Registration of 1 September 2009, a new non-discriminatory fee structure was being elaborated  for trademark applicants.  Once established, 
equal and non-discriminatory fees would apply to foreign a nd national persons.  
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS 
- Copyright and related rights 177. The representative of Afghanistan noted that in light of several suggestions by Members, draft 
amendments to the Copyright Law had been prepared to ensure compliance with the 
WTO TRIPS Agreement, including applicable pr ovisions of the Berne and Rome Conventions.   WT/ACC/SPEC/AFG/3 
 Page 51 
 
 
  He confirmed that Article 1 of the Copyright La w would be amended to include broadcasters and 
related rights.  
178. The representative of Afghanistan said the above-mentioned Law would also include 
Members' comments regarding definitions of:  Work ; Audiovisual work; Collective work; Joint work; 
Excerption (Derivative) work; Publication; Broa dcasting; Reprint of work (Reproduction); Fixed 
work (Fixation); Anonymous work; Classic work (C ompilation); Architectural work; Literary work; 
Photography, painting and statutory works; Owner ; Exhibition of work; Public performances; 
Performer of the work; Motion pictures; Broadcas ting organizations; Dissemination of the work 
(Distribution); and Transfer of copyright ownership. 
179. Asked about Cession or Transfer of Rights (Article 12), the representative of Afghanistan 
confirmed that it meant that once an author tran sferred or surrendered his/her economic right(s) to 
another person, he/she coul d not stop the transferee from using the transferred rights.  However, as the 
author, he/she could withdraw pub lication and/or broadcasting of the work, and could also make 
changes to the work.  Withdrawing and/or making ch anges to the work could cause some losses to the 
transferee; accordingly, after any changes or wit hdrawal, the author was obliged to appropriately 
compensate the transferee. 
180. In reply to a specific question, the representative of Afghanistan stated that Article 16 of the 
Copyright Law stipulated copyright protection te rms, and was undergoing amendment to refine 
compliance with the Berne Convention and the WTO TRIPS Agreement.  He confirmed that 
Article 12(5) did not curtail, extend, or in an y way affect those copyright terms and it merely 
governed the ownership of economic rights under the described set of circumstances, during the period between the death of an author and the norma l expiration of economic rights.  According to the 
draft amendments to Article 16, the first date of lawful publication would be the date for the 
protection timeline unless the author, when reproduc ing the work, made fundamental changes in the 
work in way that resulted into a new work.  If the work consisted of several components or was 
published in different phases, the timeline for th e protection would be accounted for each component 
as a separate work.  Where the term of protection under Article 16 of the Law was calculated on a basis other than the life of a natural person, the protection term would be calculated from the end of 
the calendar year of authorised publication, or, if  there was no authorised publication within 50 years 
from the making of the work, from the end of th e calendar year of the creation of the work. 
181. The representative of Afghanistan said that am endments were being developed that would 
provide for the right of reproduction for literary and ar tistic works in line with Article 9(1) and (3) of 
the Berne Convention.  He also stated that the dr aft amendments to Article 9 of the Copyright Law  WT/ACC/SPEC/AFG/3 
Page 52  
 
  would provide for complete economic rights to th e extent required under Articles 2, 8, 9, 11, 11 bis, 
11ter, 12, and 14 of the Berne Convention, and Artic le 11 of the WTO TRIPS Agreement, including 
commercial rental rights in protected motion pictures and computer programs.  The representative of 
Afghanistan said that the amended Article 10 of th e Copyright Law regarding status of enjoying 
economical rights would incorporate requirements of Articles 3 and 4 of the Berne Convention, Article 1(3) of the WTO TRIPS Agreement and Articles 4, 5 and 6 of the Rome Convention. 
182. Regarding Article 14 of the Copyright Law c oncerning the publication of the work after 
death, the representative of Afghanistan said that th is provision fell within the three step test of 
Article 13 the WTO TRIPS Agreement.  He stated that the provision applied to works not published 
by the inheritors or successors of an author.  It  was confined to certain special cases, namely, cases 
where inheritors or successors did not publish a wo rk which the Ministry of Information and Culture 
specifically deemed in the interest of the public .  The representative of Afghanistan said that the 
provision did not conflict with a normal exploitati on of the work, in that it only operated when the 
beneficiaries declined to publish the work both befo re and for a year following the notification by the 
Ministry.  In other words, the Ministry's publi cation would not displace demand for copies published 
by the beneficiaries.  He also stated that the provision did not unreasonably prejudice the legitimate 
interests of the right holder(s) in that the pr ovision required both proper notice and reasonable 
compensation for the beneficiaries. 
- Trademarks, including service marks 
183. A Member noted that under Article 3(1) of the Law on Trade Marks Registration, the 
definition of a trademark provided that it was a mark/sign or mixture of marks which could 
distinguish goods and services from other goods and services.  In response, the representative of 
Afghanistan stated that under pending amendments to Article 3 of the Law on Trade Marks Registration, trademarks would be defined in  close alignment with Article 15(1) of the 
WTO TRIPS Agreement.  
184. In reply to a question concerning well-known mark s, the representative of Afghanistan stated 
that under pending amendments to Article 8, mark s determined to be well-known in Afghanistan for 
identical or similar goods would not be used or regi stered as trademarks, and further, that protection 
for such marks in line with Article 6 bis of the Paris Convention and Article 16 of the 
WTO TRIPS Agreement would also be incorporated.  He further added that am endments to Article 9 
of the trademark law would closely track the langua ge in Article 16(3) of the TRIPS Agreement.   WT/ACC/SPEC/AFG/3 
 Page 53 
 
 
  185. With regard to priority and exclusivity in the relationship between trademarks and 
geographical indications, the representative of Afghanistan stated that Article 24 of the draft Law on 
Geographical Indications would provide that nothing  would prejudice rights in trademarks that have 
been applied for or registered in good faith, or acquired through use in good faith, under the Law 
on Trade Marks Registration.  Further, Article 8(8) of the Law on Trade Marks Registration prohibited use or registration as trademarks of geogr aphical names, where the use thereof could cause 
confusion as to the origin or source of the goods, products or services. 
- Geographical indications, including appellations of origin 
186. The representative of Afghanistan said that currently Afghanistan had no law on geographical 
indications, but had prepared a complete draft la w in this area which would be submitted to the 
Ministry of Justice in 2012 for further submission to the National Assembly.   The law would cover 
all areas required under the WTO TRIPS Agreemen t, as well as registration requirements and 
procedures, priority, opposition, exclusive rights, term s of protection, termination, and the relationship 
with trademarks.  
- Industrial designs 
187. The representative of Afghanistan stated that Afghanistan did not, at present, provide 
protection for industrial designs.  A new law on i ndustrial designs had been  drafted and would be 
submitted to the Ministry of Justice in 2012 fo r further submission to the National Assembly.  
- Patents 
188. The representative of Afghanistan stated that  draft amendments to the Patents Law in 
accordance with the WTO TRIPS Agre ement, to cover such issues as patentability, exclusive rights, 
compulsory licensing, and cancellation, had been developed.  They would be submitted to the 
Ministry of Justice in 2012 for further submission to the National Assembly.   Chapter 2 of the draft 
amendments to the Patents law would provide protecti on so that :  (i) any invention patented would be 
new, involve an inventive step and would be industr ially applicable; and (ii) any product for use in 
any of the methods required to achieve novelty, i nventive step and industrial applicability could be 
considered as a patentable invention.   He added that a current exclusion for drug formulae under 
Article 7 of the Law would be de leted under pending amendments.  Pa tentability exceptions for public 
order, morality, danger to life, health, or the e nvironment were also bei ng amended for compliance 
with Article 27(2) of the WTO TRIPS Agreement. WT/ACC/SPEC/AFG/3 
Page 54  
 
  189. Asked for examples of discoveries that could be patented, the representative of Afghanistan 
stated that amended Article 6(3) limited patent protection to inventions or discoveries, whether 
products or processes, in all fields of technology, wh ich were new, involve an inventive step and were 
capable of industrial application.  Thus, only di scoveries which met the criteria of patentability in 
Article 27 of the TRIPS Agreement could be the s ubject matter of a patent.  A mere observation or 
identification of a fact or phenomenon which did not meet those criteria could not be patentable in 
Afghanistan.  
- Plant variety protection 
190. The representative of Afghanistan stated that no protection was currently provided and that 
legislation on plant variety protection was expected to be drafted in 2012. 
- Layout designs of integrated circuits  
191. The representative of Afghanistan said that at present, there was no legal protection for the 
layout designs of integrated circuits.  He noted that drafting of the Law on Topography of Integrated 
Circuits would be completed in 2012.    
- Requirements on undisclosed information,  including trade secrets and test data 
192. The representative of Afghanistan stated that  currently no protection was provided but 
anticipated that the draft Law on Trade Secrets, which was currently being prepared, would be 
adopted in 2014. 
- ENFORCEMENT 
- Civil judicial procedures and remedies 
193. The representative of Afghanistan said that genera l civil procedures in line with Articles 42, 
43 and 46 of the WTO TRIPS Agreement were set out  in the Civil Procedure Code, including draft 
amendments.  Specific procedures with regard to copyright and trademark enforcement, such as 
injunctions, damages, and other remedies, were c ontained in the Copyright Law and the Law on Trade 
Marks Registration, respectively, as supplemented by pending new amendments.  He said that the 
Patent Law contained no enforcement section, but pending amendments set a foundation for the 
adoption of appropriate enforcement measures related to  patents.  He added that draft legislation in 
other areas of intellectual property protection c ontained specific civil judicial procedures and 
remedies where appropriate, and worked with more  generally-applicable enforcement procedures in 
the Civil Procedure Code as needed.  WT/ACC/SPEC/AFG/3 
 Page 55 
 
 
  194. Asked about the inclusion in the draft amendments to the Customs Law of provisions in 
Articles 51 to 60 of the TRIPS Agreement, he said that a Draft Order on Intellectual Property Border 
Enforcement, based on Articles 51-60 of the TRIPS Agreement requirements and the World Customs 
Organization model legislation, had been developed.  It had been ta ilored to the existing Customs Law 
provisions on border enforcement and to the ex isting capabilities of the local Customs service and 
judiciary.  He undertook to provide a copy of the Draft Order for review by the Working Party. 
- Provisional measures 
195. The representative of Afghanistan said that pr ovisional measures were currently not applied 
but that detailed provisions governing the application of provisional measures for all areas of intellectual property rights had been developed fo r incorporation in the Civil Procedure Code.  
He explained that substantive intellectual property laws were being amended to include proper links 
to these provisions, as applicable. 
- Administrative procedures and remedies 
196. The representative of Afghanistan stated th at administrative procedures referenced in 
Article 49 of the WTO TRIPS Agreement were no t applicable to enforcement procedures under 
existing or draft intellectual property laws.  
- Special border measures 
197. The representative of Afghanistan said that at present, no special border measures existed. 
However, he stated that draft legislation on bord er enforcement of intellectual property rights was 
being developed based on Afgha nistan's existing Customs Law provisions, WTO TRIPS Agreement 
requirements, World Customs Organization mode ls, and best practices noted in comparable 
jurisdictions. 
- Criminal procedures 
198. The representative of Afghanistan said that to prevent and address violations in accordance 
with Article 61 of the WTO TRIPS Agreement, draf t amendments to Article 31 of the Copyright Law 
had been prepared.  The new provision would stipul ate that persons found guilty of wilful copyright 
piracy on a commercial scale in Afghanistan would be sentenced to at least one but no more than 
three years' imprisonment, and would be fined an amount of at least AF 50,000 but not more than 
AF 100,000.  In both cases, the adjudication court c ould order seizure, forfeiture and destruction of 
infringing goods, and of any materials or im plements used to commit the violation.  WT/ACC/SPEC/AFG/3 
Page 56  
 
  Sanctions imposed would have to be sufficient unde r the circumstances to provide a deterrent to 
future violations. 
199. Asked to explain "any other punishments" re ferred to in the copyright and trademark 
legislation, he said that neither the amended Co pyright Law nor the Trademark Law made such a 
reference although Article 33 of the Trademark La w provided for confiscation, disgorgement of 
profits, and closure of facilities used to commit viola tions.  He noted that these remedies were specific 
rather than open-ended. 
200. In reply to a Member's comment that civil procedures and remedies for patent infringements 
were insufficient, the representative of Afghanist an said that unlike the Copyright and Trademark 
Laws, the existing Patent Law contained no enforcem ent section.  Civil procedures and remedies in 
the WTO TRIPS Agreement had been included in the ex isting legislative structure, in order to respect 
the system which was familiar to the legal professiona ls, and to the respective implementation bodies.  
In the case of the Patent Law, amended language  in Article 49 accounted for the adoption of 
coordinated procedures, enforcem ent measures and remedies for implementation of the Law.  
Responding to a concern that there were too many differences in enforcement provisions between the 
IP laws, he stated that the individual IP laws a nd the Civil Procedure Code, taken together, provided 
for the totality of procedures and remedies required under the WTO TRIPS Agreement.  He noted that 
appropriate measures had been developed for inclus ion in the Civil Procedure Code and would be 
adopted during second half of 2013/first half of 2014.  
VI. POLICIES AFFECTING TRADE IN SERVICES 
201. The representative of Afghanistan said that until relatively recently, the public sector was the 
primary supplier of services in Afghanistan, with the role of the private sector highly limited.  
With the Government's commitment to a strategy of economic growth and development based on an 
open, private sector-led market economy, there had b een a substantial increase in trade in services in a 
number of areas.  The aim of the Government's po licy was to efficiently meet consumer needs by 
ensuring effective competition among service providers subject to the regulation of services sectors via licensing.  The representative of Afghanistan ad ded that regulations related to the provision of 
services were equally applicable to both dom estic and foreign providers of services. 
202. The representative of Afghanistan said that economic development in the country was 
hampered by the poor state of infrastructure which li mited all types of activities, including services.  
He said that the growth and de velopment of the services sector was viewed as a priority.  
Foreign investment in services and foreign comp anies in general were currently leading the  WT/ACC/SPEC/AFG/3 
 Page 57 
 
 
  development of the service sector, especially in  the telecommunication, hotel industry, banking, 
construction, media, courier and postal,  environmental services and education.  
203. The representative of Afghanistan provided in formation based on the Services Sectoral 
Classification list in Annex 7 of document WT/ACC/AFG/4.  The representative of Afghanistan confirmed that Afghanistan would conduct in-depth examination of its services-related legislation to 
prepare and share with Members of the Working Pa rty the information on policy measures affecting 
trade in services, detailing all current measures related to market access, national treatment, and 
most-favoured nation treatment. 
204. The representative of Afghanistan stated that foreign commercial presence was regulated by 
the Private Investment Law and the prevailing co mmercial laws.  These laws required all foreign 
investors to obtain investment licenses from th e Afghanistan Investment Support Agency and 
business licenses from the Business Licensing Dir ectorate of the Ministry of Commerce and 
Industries.  He said that both licenses were obligat ory for investors (domestic and foreign) if they 
engage in investment as well as in business.  According to the existing commercial laws of 
Afghanistan, licenses were required for the conduct  of all business activities, including services.  
The following ministries and agencies were res ponsible for issuing licenses within their area of 
responsibility and supervising activities:  Commerce and Industries; Finance; Justice; Transport; 
Culture, Information and Youth; Telecommunicati on and Information Technology; Education; Higher 
Education; Mines; Urban Development; Agriculture, Irrigation and Livestock; Public Health; Public 
Works; the National Environmental Protection Agency; and the Da Afghanistan Bank. 
205. The representative of Afghanistan said that  the general policy was to promote open 
competition in all sectors, including for services.  The Afghan Government did not grant any entity ownership of, or exclusive or monopolistic right s to provide services except drinking water and 
electricity distribution.  There were also no limits on the number of service providers, with the 
exception of water supply.  He said that Afghanistan  did not have any safeguard measures relating to 
trade in services.  He added that there were no provisions concerning any form of aid, grant, domestic subsidy, and tax incentive or promotion scheme affecting trade in services.   
206. The representative of Afghanistan said that ther e were no limitations on the participation of 
foreign capital.  Land ownership was limited to the citizens of Afghanistan as established under the 
Constitution.  Foreign persons conducting legal activities in Afghanistan could lease land from the 
State for up to 90 years (which could be extended).  WT/ACC/SPEC/AFG/3 
Page 58  
 
  207. The representative of Afghanistan said that there we re limitations of the total value of service 
transactions or assets with respect to motion pictur es, road transport (passenger and freight) and on 
the total number of natural persons th at could be employed in security companies.  He said that it was 
expected that priority would be given to Afghan na tionals if equally qualified, as stipulated in the 
regulation of employment of foreign citizens in Af ghan organizations.  Under the Law on Foreigners 
Employment in Afghanistan of 6 July 2005, foreigne rs could be employed in Afghanistan on the basis 
of a work permit issued by the Ministry of Labour and Social Affairs (MoLSA).  Work permits were 
issued for one year and were renewable.  To qua lify for a work permit, foreign citizens had to:  
(i) be at least 18 years old; (ii) have not comp leted retirement age provided in the Labour Law, and 
(iii) have a health certificate from their country of citizenship and from the related entities of the 
Ministry of Public Health of Afghanistan.  The re presentative of Afghanistan stated that requests for 
employment that fell under agreements betwee n the Afghan government agencies and foreign 
countries would be processed in the Ministry of Foreign Affairs (MFA) and the MoLSA, later renamed as the Ministry of Labour, Social Affairs,  Martyrs, and Disabled (MoLSAMD).  The special 
recruitment procedures for foreign employees had been developed by the MoLSAMD and submitted 
to the Ministry of Justice. A ccording to the Law on Foreigners Employment in Afghanistan of 
6 July 2005, foreign citizens travelling to Afgha nistan for employment purposes were required to 
obtain a residence visa and a business visa.  
208. In response to a request for details concer ning the retirement age, the representative of 
Afghanistan stated that according to the Afghan La bour Law, the retirement age of sixty-five was 
compulsory.  With the consent of the employer, employees could prolong employment for up to 5 years (on annual basis) after retirement provided they had not exceeded a total of 40 years of employment.  The extended period carried the sa me rights and responsibilities of the employee.  
It applied to all industries and service providers, ex cept scientists working at government institution, 
research and higher education in stitutions and religious bodies,  which were regulated by 
other legislation.   He said that there were no restrictions in the Afghan Labour Law that prevented 
retirees from working at any age after retirement on a contract basis with Afghan companies.  In the case of foreigners, the employer would still have to apply for work permit. 
209. Asked about the reason as to why foreign c itizens were required to have two health 
certificates, from their country of citizenship and from the Ministry of Public Health of Afghanistan, 
the representative of Afghanistan said this was be cause foreign medical institutions were generally 
more developed.  In addition, a medical certificat e upon arrival to Afghanistan was required to review 
the latest health status and to check for certain diseases in case tests for such diseases not covered in 
medical examination of the country of citizenship.   WT/ACC/SPEC/AFG/3 
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  210. In response to a specific question concerning the Decree Amending Certain Articles and Parts 
of the Regulation on the Import and Exhibition of Mo tion Pictures and the Monitoring of Cinemas of 
5 March 2005, the representative of Afghanistan stated  that cinema activities were subject to licensing 
by the Afghan Film Directorate (AFD) under the Ministry of Information and Culture.  The AFD could also censor cinema movies and videos and the Ministry of Information and Culture was 
responsible for issuing import permits.  The Minist ry of Finance established ticket prices for state 
cinema theatres upon approval from the Minister's C ouncil.  He said that the construction of new 
cinema theatres could be implemented after its design was approved by AFD.  There was an obligation of cinema administrations to show docum entary and informative films before display of 
feature films.  The representative of Afghanistan stat ed that Afghan citizens were given priority in 
import procurements of films by the AFD. 
211. In order to import a feature film or a programme, the following fees applied:  (i) for Pakistani 
films:  approx. US$5,000; (ii) for Indian films: approx. US$4,000; (iii) for Iranian films:  approx. US$3,000; (iv) for Turkish, Arabic, Wester n in their original language:  approx. US$1,500; 
(v) for Turkish, Arabic, Western dubbed Farsi la nguage:  approx. US$1,000; and (vi) films of 
Socialist countries:  approx. US$200.  Films impor ted temporarily based on agreement with the AFD 
to pay certain percentage of profit we re exempted from above-mentioned fees.  
212. In response to a specific question regardi ng the provision of domestic postal services, 
the representative of Afghanistan said that the Af ghan Post provided ma ndatory delivery for the 
following postal items:  (i) letters up to 2 kg;  (ii) postcards; (iii) small packets (2 kg); 
(iv) printed paper (7 kg); and (v) parcels (20 kg).  Other services provided by the Afghan Post included express mail, registered mail, and courier services (EMS), private P.O. Boxes, selling stamps 
and money transferring services.  Article 37 of the Constitution of Afghanistan stipulated the 
provision of communications services (telecom and postal services) to all users/customers in the 
country.  
213. With respect to courier services, the representativ e of Afghanistan said that the draft Postal 
Law, which had been drafted and submitted to the Mi nistry of Justice, set the terms and conditions of 
entering in the postal market.  Applying the licence regime for providing a level playing field for all 
service providers had been stipulated in the draft Law.  In his view, it was possible for all service 
providers of express companies/international couriers  to freely carry out domestic and international 
express, logistics and mail services.   
214. The representative of Afghanistan stated th at the Telecommunication Services Regulation 
Law of 23 January 2006 was enacted and cove red amongst other things the following:  WT/ACC/SPEC/AFG/3 
Page 60  
 
  licence issuance, modification, suspension and revo cation; licence grant conditions and terms and 
conditions of the licence contents; universal access;  interconnection issues; tariffs and their approval 
process; rights of way; numbering plan; maintenanc e of the historic heritages and establishment of 
telecom networks; telecom traffic regulation; frequencies issue and frequency licenses issuance for use of frequency assignments; fine s and penalties; competitive processes; significant or dominant 
power in the market and abuse of the significant power. 
215. The representative of Afghanistan said that al l the Telecom and Internet service provider 
companies used the satellite services for their nati onal and international communications.  The licence 
issuing body for satellite services was the Afghanistan Telecommunications Regulatory Authority (ATRA) of the Ministry of Communications and Information Technology (MCIT).  A company seeking to operate in the satellite market of Afghani stan as service provider was required to obtain a 
licence from the ATRA.  To obtain a licence, the app licant needed to submit a business plan to MCIT 
(addressed to the Minister).  The business plan w ould be evaluated by the ATRA.  Among the factors 
examined before issuing the licence were past e xperience, financial standing, proposed technology, 
and operational plan.  Only one licence had been issued as of date. 
216. The representative of Afghanistan said that so  far there was no specific category for the 
issuance of satellite licence.  Afghanistan had recen tly issued one licence for satellite phone services.  
Licensees had been also given the right of tel ecom and internet services provision at the local, 
national and international level, using satellite and wireless switch stations based on licenses which 
had been granted for provision of  mobile and internet services. 
217. The duties and authorities of the Afghanistan Telecommunications Regulatory Authority 
included among others:  regula ting and supervising the activities of operators (telecom service 
providers); supervising complianc e by operators with international treaties entered into by 
Afghanistan in the telecommunications sector; providing advice to Ministry of Communications in 
development of policies; monitoring and contro lling compliance with the conditions included in 
licenses and the provisions of the law; assigning ra dio frequencies and grantin g permits to licensees; 
issuing, modifying, renewing, suspending or re voking licenses and permits; responding to complaints 
of users and settling the disputes between op erators, users and other persons, including 
interconnection, access to and quality of service, numbering, privacy, unacceptable interference and 
quality of the networks or services of grantees a nd other services; specifyi ng and approving technical 
standards for telecommunication equipment and devices; preventing operators having significant 
market power from abusing such power; prom oting sustainable competition among operators; 
determining and identifying whet her any person has significant market power; prescribing fees  WT/ACC/SPEC/AFG/3 
 Page 61 
 
 
  payable in connection with the application, issuance,  modification, renewal and transfer of any licence 
issued, for the on-going right to hold a licence; prescribing fees payable in connection with the 
importation or use of specific types of telecommunication equipment in Afghanistan; prescribing fees, 
payable in connection with the assignment and us e of numbers; establishing and maintain any 
registries of operators (telecom service providers) th at may be required; appraising and investigating 
any matters necessary to determine violations of the provisions of the law; assigning and prescribing 
fines and receiving from violators for breach of an y condition of licence or permit, or any person for 
committing an offence under the law; and obliging li censees or holders of permits to compensate 
damages as a result of a breach of a condition of licence or permit. 
218. The ATRA, consisting of five persons who we re appointed upon the proposal by the Minister 
of Communications and Information Technology and approved by the President of Afghanistan, was 
established to regulate and supervise mobile companies' activities.  
219. In response to specific questions regardi ng financial services, the representative of 
Afghanistan said that following the enactment of  the Law on Central Bank and the Law on Banking, 
17 banks had been licenced.  He said that the aim of  the on-going work in the financial services sector 
was to ensure that the prudential regulatory frame work maintained the safety and soundness of the 
financial system in Afghanistan.  In this regard , the Central Bank of Afghanistan had increased its 
on-site bank examinations to twice a year and had in troduced targeted examinations of IT systems.  
The Central Bank of Afghanistan was also worki ng to introduce measures to broaden and deepen 
access to finance for the poor such as mobile banking, Islamic banking and a stock exchange market.  
The representative of Afghanistan said that the World Bank funded "Financial Sector Strengthening Project of Afghanistan" was also enhancing the fi nancial system, by establishing collateral registry, 
credit information bureau and the Afghan Institute of Banking and Finance. 
220. The representative of Afghanistan noted that two new laws, namely the Law on Anti-Money 
Laundering and Proceeds of Crime and the Law on Co mbating Financing of Terrorism were adopted 
in 2004 to clean up the financial system from the mena ce of terrorism and crime.  More recently, three 
more laws had been adopted:  the Law on Mortgage  of Immovable Property of 27 July 2009; the Law 
on Mortgage of Movable Property of 27 July 2009; and the Law on Transaction Documents 
(Negotiable Instruments) of 24 January 2009.  Pu rsuant to these laws, regulations and numerous 
internal policies had been enacted by the Supreme Council of the Da Afghanistan Bank to facilitate 
the implementation of these Laws. 
221. Asked to explain as to whether under Article 5. 4 of the Private Investment Law, non-banking 
finance activities and insurance activities were restri cted sectors, the representative of Afghanistan WT/ACC/SPEC/AFG/3 
Page 62  
 
  said that the High Commission on Investment had re moved restrictions on the former and that the 
Law on Insurance of 2008 had governed the insuran ce sector.  He stated that when the Private 
Investment Law would be amended in the future , insurance and non-banking finance activities would 
be deleted from the law. 
222. In response to a specific question from a Member, the representative of Afghanistan 
confirmed that licenses for real estate services rela ted to private or leased property were reserved 
exclusively for Afghans. 
VII. TRANSPARENCY  
- Publication of information on trade 
223. The representative of Afghanistan said that there was no legal requirement or practice for 
publication and comment for domestic laws, regulati ons, and other measures of  general application 
that become legally enforceable.  He further added that common practice had been that draft 
legislation was directly shared with interested par ties for comments.  Interested parties could also be 
invited to participate in legal drafting working groups  or in public fora (e.g. conference/seminars) to 
discuss draft legislation.  Some ministries publishe d draft legislation in national newspapers for 
comment by the general public.  
224. Some Members stated that lack of legal requirements or practice for publication and comment 
for domestic laws, regulations, and other measures of  general application caused concern and needed 
to be addressed by Afghanistan.  Article X of  the GATT 1994 required the prompt publication of 
laws, regulations, judicial decisions and administ rative rulings of genera l application covering, inter 
alia, classification or the valuation of products for customs purposes; rates of duty, taxes or other 
charges; requirements, restrictions or prohibitio ns on imports or exports; or affecting the sale, 
distribution, transportation, insurance, warehousi ng inspection, exhibition, processing, or mixing of 
imported or exported goods.  The publication of these legal acts had to be in such a manner as to 
enable governments and traders to become acquainte d with them.  This also included agreements 
affecting international trade policy which were in  force between the government or a governmental 
agency of any other WTO Member.   
225. Members also noted that some WTO Agreements had additional transparency requirements, 
e.g., for Import Licensing, Customs Valuation, TB T, SPS, and that good regulatory practice required 
publication for review and comment and a method of taking the comments into consideration in  WT/ACC/SPEC/AFG/3 
 Page 63 
 
 
  finalizing the published laws, regul ations and other normative acts.  They asked what steps had 
Afghanistan taken to implement these obligations.  
226. The representative of Afghanistan noted that in  preparing new legislation consistent with 
WTO Agreements (e.g. TBT, SPS, and Customs Va luation), Afghanistan would be taking into 
account specific transparency requirements stipulated  in these Agreements.  He said that Afghanistan 
would amend Article 20 of the Regulation on Draf ting Procedure and Processing of Legal Acts to  
require that:  (i) draft legislation concerning fo reign trade be published for consultation and public 
comments prior to finalization; (ii) publication of drafts would include a reasonable period for comments (not less than 30 days) and indicate the means through which comments could be submitted to the relevant ministry or State agency; and ( iii) ministries and State agencies convene a working 
group to discuss received comments, including re presentatives of stakeholders who submitted the 
comments. 
227. He further stated that Article 5 of Afghanistan's Law on Publication and Enforcement of 
Legislation required publication in the Official Gazette  of the following:  (i) official declarations of 
Afghanistan which were intended for the public, laws , resolutions and other parliamentary legislative 
documents, (ii) decrees and other legislative documents  of legal nature; (iii) regulations, charters and 
resolutions of Council of Ministers which had legal nature; (iv) contracts, agreements, international 
protocols which were signed by Afghanistan and d ecrees relating to ratification of these treaties; 
(v) legislative documents approved by the Supr eme Court ; and (vi) other legislative acts, 
dissemination of which was required by law, as well as publication of trademarks and related 
documentation.  He noted that Article 5 covered all types of laws and legal acts including those 
related to customs, foreign trade, sanitary and phy tosanitary measures, and other WTO Agreements.  
He added that the Law on Publication and Enfo rcement of Legislation would be amended to 
(i) require publication of ministerial level decisions  and mandatory orders in the Official Gazette; 
(ii) require that no legal acts would come into for ce earlier than 30 days after official publication in 
the Official Gazette or a longer period, if specifi ed in the law or required under an international 
agreement to which Afghanistan was a signatory.  An exception from this provision were emergency 
measures where a legal act related to foreign trade co uld come into force upon official application but 
needed to be notified immediately to relevant inte rnational organizations in which Afghanistan was a 
member. 
228. He added that it was a common practice in Afghanistan that ministries and state bodies 
published, on their websites, respective laws and implementing regulations.  Court decisions WT/ACC/SPEC/AFG/3 
Page 64  
 
  (including Commercial Court decisions) were publ ished on the website of the Supreme Court of 
Afghanistan as well as in Mezan Gazette and Qaza Magazine.     
- Notifications 
[TO BE COMPLETED] 
VIII. TRADE AGREEMENTS  
229. The representative of Afghanistan said that his Government had signed 31 Bilateral Trade and 
Investment Agreements and Memoranda of Unde rstanding.  Afghanistan had signed ten other 
Bilateral Economic Agreements a nd Memoranda of Understanding.  It  had also signed five tripartite 
agreements. Afghanistan was a member of the Economic Cooperation Organization (ECO), 
South Asian Association for Re gional Cooperation (SAARC) and Ce ntral Asia Regional Economic 
Cooperation (CAREC) Program.  The EU, the US, I ndia, Canada and Japan granted preferential 
treatment for Afghanistan's exports, under the GSP scheme. 
230. The representative of Afghanistan said that  a Preferential Trade Agreement between 
Afghanistan and India had been effective from May 2 003.  This however had been superseded by the 
South Asian Free Trade Area (SAFTA) were India had provided duty free access for all Afghan 
exports except alcohol and tobacco products.  
231.  The representative of Afghanistan stated th at Afghanistan had preferential access to the 
European Union (EU) through the Everything Bu t Arms (EBA) initiative which granted duty and 
quota free access for all goods (with the excepti on of arms) originating from Afghanistan.  
The United States GSP Program provided duty free treatment for 5,000 products from Afghanistan.  
A 35 per cent value addition was required.  Afghanist an also qualified for additional products such as 
milk, yogurt, and food preparations with flour, candy  (candied nuts, sugar candy, and chocolate) and 
so did many Afghan handicrafts if certified by the Government.  The representative of Afghanistan 
added that Afghan products enjo yed duty and quota free market access under a LDC market access 
initiative with Canada and GSP with Japan.   
232. Afghanistan joined the Economic Cooperation Or ganization (ECO) in 1992.  One of the main 
objectives of the ECO was the "progressive removal of  trade barriers" with the aim of eventually 
establishing a free trade area among the ten member  States.  The ECO Trade Agreement (ECOTA) 
was signed in 2003 by the five members of the EC O:  Afghanistan, Iran, Pakistan, Tajikistan and 
Turkey. Preferences under the ECOTA had not yet come into effect.  The representative of 
Afghanistan said that under the ECOTA tariff reduc tions were expected to cover all goods traded  WT/ACC/SPEC/AFG/3 
 Page 65 
 
 
  among the members, except for goods notified by each  member under a negative list.  The positive list 
of goods would be expanded gradually on a proporti onate basis in eight equal annual stages so as to 
cover at least 80 per cent of the goods.  Afghanist an was provided an extended term of 15 years for 
implementation of tariff reductions.  Within this time-frame, tariffs would be reduced to a maximum 
of 15 per cent as the highest tariff.  Each member  of the ECOTA was obliged, keeping in view the 
extent of tariff reduction required, to notify a sch edule of concessions for gradual and progressive 
reduction of applied tariffs to bring the highest tari ff to a maximum of 15 per cent at the end of eight 
years (15 years for Afghanistan), while reduction would not be less than 10 per cent of the existing tariff per annum.  The provisions applied to a ll goods, except sensitive goods which would not exceed 
one per cent of the 6-digit tariff lines.  Lists of sensitive goods would be annexed to the Agreement.  
Afghanistan had developed and submitted to the EC O Secretariat its sensitive list, positive list, and 
negative list.  
233. The representative of Afghanistan said that no pr ohibitions or restrictions other than tariffs 
would  be applied on imports from ECOTA Members w ithin two years of the entry into force of the 
Agreement and all quantitative restrictions and me asures having equivalent effect on exports as well 
as and export duties/charges would also be abolished.   The ECOTA also included provisions on state 
aid, intellectual property (substantive standards on the WTO TRIPS Agreement, Paris Convention, 
Rome Convention, Madrid Convention and Berne C onvention would be achieved within eight years 
after the entry into force of the Agreement)  and state monopolies (required to operate on a 
non-discriminatory basis) but did not cover trade in services procurement. 
234. The representative of Afghanistan noted that in  April 2007, Afghanistan became a member of 
the South Asian Association for Regional Coopera tion (SAARC) which included Bangladesh, Bhutan, 
India, the Maldives, Nepal, Pakistan and Sri Lanka .  Afghanistan also joined the South Asian Free 
Trade Area (SAFTA) Agreement in August 2008.   The SAFTA was ratified by Afghanistan on 
6 April 2010 and had come into effect on 7 A ugust 2011.  The SAFTA was expected to provide 
preferential market access for Afghan products in  member countries through reduced import duties.  
The SAFTA was implemented in January 2006 with a goal to reduce tariff and non-tariff barriers over 
the following ten years.  Afghanistan devel oped and, on 7 August 2011, notified the SAARC 
Secretariat its schedule of tariff reductions unde r the SAFTA.  It called for reduction of customs 
duties for non- sensitive goods from current rates to 5 per cent in equal instalments over a period of 
ten years (7 August 2011 to 6 August 2021). 
235. Afghanistan was a member of the Central Asia Regional Economi c Cooperation (CAREC) 
Program which was initiated in 1997, focusing on transport, energy, trade facilitation and trade policy.  WT/ACC/SPEC/AFG/3 
Page 66  
 
  There were no plans for providing tariff preferences among CAREC member countries and 
Afghanistan's import trade was not subject to  preferential tariff rates under the CAREC. 
CONCLUSIONS 
[TO BE COMPLETED]  WT/ACC/SPEC/AFG/3 
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  ANNEX 1 
Laws, Regulations and Other Information Provi ded to the Working Party by Afghanistan 
- Draft amendments to the Civil Procedure Code (Chapter Three) of 22 August 1990; 
- Law "On Income Tax" of 2009; 
- Law "On Private Investment" of 21 December 2005; 
- Afghanistan National Development Strategy, 2008-2013; 
- Law "On Competition Protection and Monop oly Prevention" of 30 January 2010; 
- Draft amendments to the Customs Law of the Islamic Republic of Afghanistan; 
- Law "On Customs", 2004; 
- Law "On Procurement", 2008 (amendments ma de in January 2009 incorporated); 
- Regulation "On Business Licence", 2004; 
- Regulation "On Determining the Price of G oods in Customs" of 23 January 2006; 
- Regulation "On Customs Arbitration" of 20 March 2006; 
- Law "On Seeds Cultivation" of 16 December 2009; 
- Law "On Minerals", 2005; 
- Law "On Medicine" of 18 November 2008; 
- Law "On Public Health" of 8 January 2007; 
- Regulation "On Pharmacies" of 8 January 2007; 
- Regulation "On the Enforcement of the Manufact ure and Import of the Medicine and Medical 
Appliances" of 19 February 2007; 
- Regulation "On Import, Distribution and Use of Pesticides" of 3 October 1996; 
- Draft Law of the Islamic Republic of Afghani stan on Standards and Technical Regulations; 
- Draft Plant Protection and Quarantine Law; 
- Regulation "On Plant Quarantine Services", 2000; 
- Draft Food Law;  
- Draft amendments to the Law "On Supporting the Rights of Inventors and Discoverers" 
(Patents Law); 
- Law "On Supporting the Rights of Inventor s and Discoverers" of 31 July 2008; 
- Draft amendments to the Law "On Trade Marks Registration"; 
- Law "On Trade Marks Registration" of 1 September 2009; 
- Draft amendments to the Law "On Supporting the Rights of Authors, Composers, Artists and 
Researchers" (Copyrights Law); 
- Law "On Supporting the Right of Authors, Composers, Artists and Researchers (Copyright 
Law)" of 21 July 2008; 
- Draft Law "On Geographical Indications"; 
- Draft Law "On Industrial Designs"; 
- Law "On Secured Transaction on Movable Property in Banking Transactions", 2008; 
- Regulation "On Culture, Artistic, Remuneration Of  Mass Media Services, Artistic Activities, 
Remuneration Of Scientific Researching a nd Publication Activities in the Scientific 
Researching Institutions" of 23 December 2003; 
- Regulation "On Import and Show of Films and Monitoring Cinema (with amendments 
through Presidential Decree)" of 8 November 1988; and 
- Decree "On the Amendments in Some Articles and Sub-Articles of the Regulation on Import 
and Show of Films and Monitoring Cinema" of 8 November 2004. WT/ACC/SPEC/AFG/3 
Page 68  
 
  ANNEX 2 
Table 1:  Fees to obtain a licence from the Afghanistan Investment Support Agency (AISA) 
Amount of Initial Capital Classification Licensing Fee 
US$5,000  to US$10,000 Small size business US$50 
US$10,001 to US$1,000,000 Medium size business  US$350 
US$1,000,001 or more  Large size business  US$1,000 
 
 
Table 2(a):  List of State-owned enterprises (SOEs) 
 Name of Enterprise Liquidated Corporatized Privatized Leased Pending Excluded 
from 
privatization 
1 Millie Bus           1 
2 Engineering 
Research 1         
  
3 Securities (Soukook) 
Printing           
1 
4 Prison Industry         1   
5 Improved Seed           1 
6 Micrurayan 
Maintenance   
        
1 
7 Afghan Water 
Supply and 
Sewerage   
1       
  
8 Da Afghanistan 
Brishna Sherkat   
1       
  
9 Cooperative and 
Commercial   
  1     
  
10 Foodstuff         1   
11 Fuel and Liquid Gas         1   
12 Medical Plant Export 1           
13 Samoon Dried Fruit     1       
14 Shir Khan Bander 1           
15 Wool Weaving 1           
16 Afghan Carpentry 1           
17 Afghan Industry 1           
18 Kandahar Wool 
Weaving   
      1 
  
19 Helmand Bust         1   
20 Kunduz Spinzar       1     
21 Bagrami Textile         1   
22 Balkh Gin and Press       1     
23 Balkh Textile         1   
24 Kandahar  Textile          1   
25 Medical Supply and 
Technical   
  1     
  
26 Jabal Seraj Cement         1    WT/ACC/SPEC/AFG/3 
 Page 69 
 
 
   Name of Enterprise Liquidated Corporatized Privatized Leased Pending Excluded 
from 
privatization 
27 North Coal       1     
28 North Power and 
Fertilizer         1 
  
29 Ghuri Cement       1     
30 Afghan Gas         1   
31 Mines Extraction 1           
32 Jangalak 1           
33 Rokham Marble 1           
34 Central 
Transportation         1 
  
35 Kamaz 5     1       
36 Kamaz 6 1           
37 Kamaz 7 1           
38 Kamaz 8 1           
39 Kamaz 9 1           
40 Heyratan Technical 
Services     1     
  
41 Hotel enterprise           1 
42 Afghan Advertising 1           
43 Azadi Printing         1   
44 Ariana Printing       1     
45 Afghan Tour         1   
46 Construction 
Material Production         1 
  
47 Kabul 
Slaughterhouse         1 
  
48 Pharmacy 
Department         1 
  
49 Education Printing         1   
50 Afghani 
Construction         1 
  
51 Banaye Construction         1   
52 Housing 
Construction         1 
  
53 Metal Component 
Production         1 
  
54 Jadid Energy 1           
55 Power Construction 1           
56 Helmand 
Construction         1 
  
57 Spin Ghar 
Construction 1         
  
58 Fertilizer and Agro 
Services 1         
  
59 Kabul Silo         1   
60 Pul-i-Khumri Silo         1   
61 Balkh Silo         1   
62 Kandahar Fruit         1   WT/ACC/SPEC/AFG/3 
Page 70  
 
   Name of Enterprise Liquidated Corporatized Privatized Leased Pending Excluded 
from 
privatization 
63 Baghlan Sugar 
(coporaized and 
leassed)   1   1   
  
64 Slaughterhouse and 
Livestock 1         
  
65 Afghan Public 
Protection Force           1 
  19 3 5 6 27 6 
 
 
Table 2(b):  List of corporations in which the State has shares (SOCs) 
Corporations with State Ow nership State Share Status 
1 Ariana Airline Corporation  100% Functional  
2 Intercontinental Hotel 100% Functional  
3 ANIC 100% Functional  
4 Afsotar 51% Functional  
5 Esteras 51% Partially Functional  
6 Afghan Telecom 100% Functional  
7 Afghan Card 92% Functional  
8 Afghan Nechi 51% Inactive 
9 Afghan Turk 51% Inactive 
10 Aftanto NA Inactive 
11 Handicraft Industry  40% Inactive 
12 NAPCOD 42% Functional  
13 Afghan Water Supply and Sewerage Company 20% Functional  
14 Afghan Textile  90% Partially Functional  
15 Hochest Company  51% Inactive 
16 Import & Export Company  NA  Inactive 
17 Oil & Soup Production Company  NA Inactive 
18 Mushtaq Bakery Corporation  NA Inactive 
19 Zamir Bakery Corporation  NA Inactive 
20 Vehicle Oil Company  NA Inactive 
21 New Baghlan Sugar  66% Partially Functional  
22 Afghan Teuur  NA Inactive 
23 Da Afghanistan Brishna Sherkat 100% Functional  
  WT/ACC/SPEC/AFG/3 
 Page 71 
 
 
  Table 3:  Goods and services subject to price control 
Goods Rates Responsible Authority Legal Basis 
Electricity Unit: AF per kwt 
 Residential depending on 
utilization: 6-10  
 Government entities: 14 
 Non-Government Entities: 13 
 Production facilities registered 
at MOCI or licensed by AISA: 
9  
 Factories (unregistered and not 
licensed by AISA): 11  
 Other commercial entities (not 
engaged in production): 14 
 These rates vary from one region 
in Afghanistan to another. There 
are 76 regions. The above rates are averages. Da Afghanistan Brishana 
Sherkat (a corporation with 100% Government 
share) proposes the price 
for electricity subject to approval by the following 
four ministers: Minister 
of Finance, Minister of Economy, Minister of 
Rural Development, and 
Minister of Energy and Water.   Board of Directors 
Decision (which comprises all four 
Ministers) 
Water Unit: AF per cubic meter 
 Residential 
- Constructed with 
permit: 25 
- Constructed without 
permit: 12 
 Commercial: 35 The Ministry of Urban 
Development proposes 
the prices for water which are then approved by 
Economic Committee 
under the Council of 
Ministers Council of Ministers 
Decision 
Pharmaceuticals 
and medical equipment   10% markup on imports and 
5% markup on wholesale based on the Regulation 
 15% markup for retailers 
based on Law 
12% markup for producers ( de 
facto ) Ministry of Public Health Law on Medicine of 
17 January 2007  
Regulation on 
Production and Import of Medicines and 
Medical Equipment 
dated February 2007 
Services Rates Responsible Authority Legal Basis 
Physicians Unit: AF per checkup 
 High Profile Doctors 
(Professor): 120 
 Specialized Doctor: 100 
 Doctor: 80 Ministry of Public Health Minister of Public 
Health Order 
Laboratory and other medical services Unit: AF per test 
 Ultrasound: 100 
 Physiotherapy: 100 
 Computed Tomography Brain 
Scan: 1,200 
 Computed Tomography 
Abdominal Scan: 2,000 
 Lithotripsy: 300, 350, and 450 
 Electrocardiogram: 80 
 Electroencephalogram: 800 
 Echo Cardiography: 800 
 Hemodialysis: 2,000  
 Electrocardiography Test: 500 
 Endoscopy: 500  Ministry of Public Health Minister of Public 
Health Order 
 WT/ACC/SPEC/AFG/3 
Page 72  
 
  Table 4(a):  Afghanistan's applied tariff rates in 2011  
Tariff rates Number of 
tariff lines Share of lines Import value 
(in US$ million) Share of trade 
Zero 27 0.5% 2.6 0.0% 
From 0 to 5% 3,625 71.6% 4,796.5 62.9% 
More than 5% to 10% 1,235 24.4% 1,347.8 17.7% 
More than 10% to 20% 113 2.2% 1,141.0 15.0% 
More than 20% to 35% 52 1.0% 269.2 3.5% 
More than 35% to 50% 9 0.2% 65.2 0.9% 
More than 50% 0 0% 0.0 0.0% 
Total 5,061 100.0% 7,622.3 100.0% 
 
Table 4(b):  Products subject to tariffs rat es of 20, 25, 35, 40, and 50 per cent in 2011   
Tariff rates Product description 
20% Juices, beverages 
25% Fruits and nuts, processed marble, salt, plaster, gypsum, lime, furniture, carpets 
35%-50% Vehicles and salt 
  WT/ACC/SPEC/AFG/3 
 Page 73 
 
 
  Table 5(a):  Fees for Customs Forms 
Type of Form Cost 
T-1 Form/Elm-e-Khabar approximately US$20 
Afghan Customs Clearance Docume nt form approximately US$1 
Exemption form approximately US$10 
Duty paid goods form 
(planned for internal transit of goods) approximately US$2 
International Transit Form US$100 
US$200 (for weight exceeding 25 tons) 
 
Table 5(b):  Fees for Customs Storage 
Period Fee 
First 30 days Free  
First 6 months (after 30 days) 0.25% of customs duty 
Second 6 months 0.5% of customs duty 
Third 6 months 1.5% of customs duty 
Fourth 6 months 2.0% of customs duty 
Beyond the end of fourth 6 months 5.0% of customs duty 
 
Table 6:  Taxes on Imports 
Type Rate Note 
Tax benefiting 
Afghan Red Crescent Agency 2% of the value of customs duty  Applied on all imports. 
Fixed Tax 2% of (customs duty + customs 
value) or  
3% of (customs duty + customs 
value) if no business licence Applied on all imports.  The 2% can be claimed as 
credit in the calculation of the person's annual 
income tax assessment. 
Business Receipts Tax (BRT) 2% of (customs duty + customs 
value)  Cannot be claimed as credit. 
 WT/ACC/SPEC/AFG/3 
Page 74  
 
   Table 7(a):  Import Licensing Measures and Related Fees 
Product Import Measure Fee in US$ Validity 
Pharmaceuticals, medical 
equipment and cosmetics, and pharmacy tools Permit from the Ministry of 
Public Health 0.075% of total cost of 
medicine.  It is the same for both domestic and foreign persons One year; multiple 
import transactions for a specific quantity of goods 
Veterinary medical instruments and 
veterinary drugs and 
biological materials  Permit from the General 
Directorate of Animal 
Health under MAIL  No fee  One year; multiple 
import transactions 
Printed books, brochures, leaflets, and other printed matters  Import approval from the 
Ministry of Information and Culture  No fee  Single import 
transaction 
Films  Import approval from MoIC Importation of Pakistani, Indian 
and USA movies (around US$50); other countries (around US$30) Additional US$10 for board review One year; single 
import transaction 
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$1,000 annually  One year; permit is for 
single import transaction; licence for 
multiple import 
transactions 
Armoured vehicles Import Permit from the 
Ministry of Interior  No fee  One year; single 
import transaction 
Arms, ammunitions, military equipment Import Permit from the 
Ministry of Interior and the Ministry of Defence No fee  One year; single 
import transaction 
Precursors and narcotic chemicals Import Licence from the 
Ministry of Counter-Narcotics No fee  Six months; multiple 
import transactions for specific quantity 
Endangered species   Import permit from the 
National Environmental Protection Agency of Afghanistan  
Currently, the export and 
import is prohibited No fee Six months with 
extension for one year, single import transaction 
Ozone Protection  (see Table 7(b) below) Import permit from the 
National Environmental Protection Agency of Afghanistan No fee One year; single 
import transaction 
  WT/ACC/SPEC/AFG/3 
 Page 75 
 
 
  Table 7(b):  Goods Requiring Import Permit from the National Environmental Protection 
Agency of Afghanistan (NEPA) 
No. HS Code Chemical Name F ormula  Trade Name 
1. 2903.4100 Trichlorofluormethane CCL3F R-11 
2. 2903.4200 Dichlorodifluoromethane CC12F2 R-12 
3. 2903.4300 Trichlorotrifluoroethane C2Cl3F3 R-113 
4. 2903.4400 Dichlorotetrafluoroethane C2Cl2F4 R-114 
5. 2903.4400 Chloropentafluorethane C2ClF5 R-115 
6. 2903.4600 Bromochlorodifluoromethane  CBRClF2 - 
7. 2903.4600 Bromotrifluoromethane CBRF3 - 
8. 2903.4600 Dibromotetrafluoroethane  C2BR2F4 - 
9. 2903.4510 Chlorotrifluoreomethane  CClF3 R-13 
10. 2903.4520 Pentachlorofluorethane C2Cl5F R-111 
11. 2903.4520 Tetrachlorodifluoroethane  C2Cl4F2 R112 
12. 2903.4530 Heptachlorofluoropropane  C3Cl7F R-211 
13. 2903.4540 Hexachlorodifluoropropane  C3Cl6F2 R-212 
14. 2903.4540 Pentachlorotrifluoropropane C3Cl5F3 R-213 
15. 2903.4550 Tetrlchlorotetrafluoropropene  C3Cl4F4 R-214 
16. 2903.4550 Trichloropentafluoropropane C3Cl3F5 R-215 
17. 2903.4560 Dichlorohexafluoropropane  C3Cl2F6 R-216 
18. 2903.4560 Chlorohptafluoropropane C3ClF7 R-217 
 WT/ACC/SPEC/AFG/3 
Page 76  
 
  Table 8:  Banned and Restricted Pesticides 
 
Abbreviations: 
 PIC : As per Prior Informed Consent Pr ocedure List (Rotterdam Convention) 
 S          : As per Stockholm Convention List 
 M       : As per Montreal Protocol 
 I         : As per Indian Decision 
 B : Banned 
 RU : Restricted for Use 
 RR : Registration Refused 
 W : Withdrawn 
 
The list covers 82 items with some fa lling under more than one category: 
 Banned by a Party of Rotterdam and thus on PIC Procedure List: 29  
 Banned as per Stockholm Convention List: 9  
 Indian Decision (B/RU/RR/W): 69  
 
SI # Formulation Status Authority 
1 2,4, 5-T B, RR B (PIC), RR (I) 
2 Aldicarb B I 
3 Aldrin B S, PIC, I 
4 Aluminium Phosphide RU I 
5 Ammonium Sulphamate RR I 
6 Azinphos Ethyl RR I 
7 Azinohos Methyl RR I 
8 Formulation B PIC 
9 Benzene Hexachloride B S, PIC, I 
10 Binapacryl B, RR B (PIC), RR (I) 
11 Calcium Arsenate RR I 
12 Calcium Cyanide B I 
13 Captafol 80%Powder B, BU B (BPIC), BU(I) 
14 Carbofuron 50%SP BIMU I 
15 Carbophenothion RR I 
16 Chinomethionate(Morestan) RR I 
17 Chlordane B S, PIC, I 
18 Chlordimeform B PIC 
19 Chlorobenzilate B PIC, I 
20 Clbromochloropropane B I 
21 Copper Acetoarsenite B I 
22 Dalapon W I 
23 DDT B, RU B (S, PIC), RU 
24 Dialdrin B S, PIC, I 
25 Diazinon RU I (Agric) 
26 Dicrotophos RR I 
27 Dinoseb B PIC 
28 DNOC and its salts B PIC 
29 Endosulfan RU I 
30 Endrin B S, I 
31 EPM RR I 
32 Ethyl Mercury Chloride B I 
33 Ethyl Parathion B I 
34 Ethylene Dibromide (EDB) B PIC, I 
35 Ethylene Dichloride B PIC  WT/ACC/SPEC/AFG/3 
 Page 77 
 
 
  SI # Formulation Status Authority 
36 Ethylene Oxide B PIC 
37 Fenitrothion RU I 
38 Fenthion RU I (Agric) 
39 Fentin Acetate RR I 
40 Fentin Hydroxide RR I 
41 Ferbam W I 
42 Fluoroacetamide B PIC 
43 Formothion W I 
44 Formulation of Parathion B PIC 
45 HCH B PIC 
46 Heptachlor B S, PIC, I 
47 Lead Arsenate RR I 
48 Leptophos (Phosvel) RR I 
49 Lindane B, RU B (S, PIC), RU 
50 Maleic Hydrazide B I 
51 Menazone B I 
52 Mephosfolan RR I 
53 Mercury Compounds B PIC 
54 Methamidophos form B PIC 
55 Methomyl 12.5% L B I 
56 Methomyl 24% L B I 
57 Chloride (MEMC) RU I 
58 Methyl Bromide B, RU B (M), RU (I) 
59 Methyl Parathion B, RU B (PIC), RU (I) 
60 Metoxuron W I 
61 Mevinphos (Phosdrin) RR I 
62 Formulation B, RU B (PIC), RU (I) 
63 Nickel Chloride W I 
64 Nicotin Sulfate BU I 
65 Nitrofen B I 
66 Paradichlorobenzene (PDCB) W I 
67 Paraquat Dinethyl Sulphate B I 
68 Parathion B PIC 
69 Pentachloro Nitrobenzene B I 
70 Pentachlorophenol B PIC, I 
71 Phenyl Mercury Acetate B I 
72 Phosphamidon 85% SL B PIC, I 
73 Simazine W I 
74 Sodium Cyanide RU I 
75 Sodium Cyanide RU I 
76 Sodium Methane Arsenate B I 
77 TCA (Trichloro acetic acid) B I 
78 Tetradifon B I 
79 Thiodemeton / Disulfoton RR I 
80 Toxaphene B S, PIC, I 
81 Vamidothion RR I 
82 Warfarin W I 
 WT/ACC/SPEC/AFG/3 
Page 78  
 
   
Table 9:  Export Measures and Related Fees  
Product Export Measure Fee 
All minerals Export authorization from the Ministry of 
Mines No fee 
Handicrafts (that may be 
construed to be antique) Export approval from the Ministry of 
Information and Culture The measure is to determine if 
handicrafts are antique.  If they are not, export approval is granted and a fee of 5% of the value of the invoice is charged. 
Scrap metals Export authorization from the Export 
Promotion Agency of Afghanistan Export authorization from the Ministry of Mines No fee by either body 
Used glass, plastics and coal Export authorization from the Export 
Promotion Agency of Afghanistan No fee 
Printed books, brochures, 
leaflets, and other printed matters Export approval from the Ministry of 
Information and Culture No fee 
Films  Export approval from the Ministry of 
Information and Culture No fee  
 
Table 10:  List of Mandatory Documents for Exportation 
Measure Issuing Ministry/Agency/Associations 
Business Licence Ministry of Commerce and Industries (MOCI) (not under OSS) 
Commercial Invoice Attested by representative of Afghanistan Chamber of Commerce and 
Industry (ACCI) at the OSS 
Certificate of Origin Issued by representative of ACCI at the OSS 
Phytosanitary Certificate (for plant 
and plant products only) Issued by the representative of the Quarantine Department of the 
Ministry of Agriculture, Irrigation, and Livestock (MAIL) at the OSS 
Veterinary Certificate (for animal and animal products only) Issued by the representative of th e Animal Health Department of 
MAIL (not at OSS)  
Export Seeds Certificate (for seeds) Issued by the Seeds Directorate under MAIL at OSS 
Export authorization for all minerals Issued by the Ministry of Mines (not under OSS) 
Export authorization for scrap 
metals Issued by the representative of the Export Promotion Agency of 
Afghanistan at the OSS 
Issued by the Ministry of Mines (not under OSS) 
Export authorization for used glass, plastics and coal Issued by the representative of the Export Promotion Agency of 
Afghanistan at the OSS 
Export approval for printed books, 
brochures, leaflets, and other printed 
matters Issued by the Ministry of Information and Culture (not under OSS) 
Export approval for films Issued by the Ministry of Information and Culture (not under OSS) 
Export approval for handicrafts (to 
check if they are antique) Issued by the representative of the Ministry of Information and 
Culture at the OSS 
  WT/ACC/SPEC/AFG/3 
 Page 79 
 
 
  Table 11:  Goods Subject to Export Duties 
 
HS Description Export 
Duties 
25.01 Salt (including table salt and denatured salt) and pure sodium chloride, whether or 
not in aqueous solution or containing added anti-caking or free-flowing agents; sea water.  
2501.0010 -Table salt and denatured salt 40% 
2501.0090 -Other 5% 
2502.0000 Unroasted iron pyrites. 5% 
2503.0000 Sulphur of all kinds, other than sublimed sulphur, precipitated sulphur and 
colloidal sulphur. 5% 
25.04 Natural graphite.  
2504.1000 -In powder or in flakes 5% 
2504.9000 -Other 5% 
25.05 Natural sands of all kinds, whether or not coloured, other than metal bearing sands 
of Chapter 26.  
2505.1000 -Silica sands and quartz sands  5% 
2505.9000 -Other 5% 
25.06 Quartz (other than natural sands); qu artzite, whether or not roughly trimmed or 
merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including 
square) shape.  
2506.1000 -Quartz 5% 
2506.2000 -Quartzite 5% 
2507.0000 Kaolin and other kaolinic clays, whether or not calcined. 5% 
25.08 Other clays (not including expanded clays of heading 68.06), andalusite, kyanite 
and sillimanite, whether or not calcined; mullite; chamotte or dinas earths.  
2508.1000 -Bentonite 2.5% 
2508.3000 -Fire-clay 2.5% 
2508.4000 -Other clays 2.5% 
2508.5000 -Andalusite, kyanite and sillimanite 2.5% 
2508.6000 -Mullite 2.5% 
2508.7000 -Chamotte or dinas earths 2.5% 
2509.0000 Chalk. 5% 
25.10 Natural calcium phosphates, natural aluminium calcium phosphates and 
phosphatic chalk.  
2510.1000 -Unground 5% 
2510.2000 -Ground 5% 
25.11 Natural barium sulphate (barytes); natural barium carbonate (witherite), whether 
or not calcined, other than barium oxide of heading 28.16.  
2511.1000 -Natural barium sulphate (barytes) 5% 
2511.2000 -Natural barium  carbonate (witherite) 5% 
2512.0000 Siliceous fossil meals (for example, kieselguhr, tripo lite and diatomite) and similar 
siliceous earths, whether or not calcined, of an apparent specific gravity of 1 or 
less. 5% 
25.13 Pumice stone; emery; natural corundum, natural garnet and other natural 
abrasives, whether or not heat-treated.  
2513.1000 -Pumice stone 5% WT/ACC/SPEC/AFG/3 
Page 80  
 
  HS Description Export 
Duties 
2513.2000 -Emery, natural corundum, natural garnet and other natural abrasives 5% 
2514.0000 Slate, whether or not roughly trimmed or merely cut, by sawing or otherwise, into 
blocks or slabs of a rectangular (including square) shape. 5% 
25.15 Marble, travertine, ecaussine and othe r calcareous monumental or building stone 
of an apparent specific gravity of 2.5 or more, and alabaster, whether or not 
roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape.  
  -Marble and travertine:  
2515.1100 --Crude or roughly trimmed 20% 
2515.1200 --Merely cut, by sawing or otherwise, into blocks or slabs of a rectangular 
(including square) shape 20% 
2515.2000 -Ecaussine and other calcareous monumental or building stone; alabaster 20% 
25.16 Granite, porphyry, basalt, sandstone and other monumental or building stone, 
whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape.  
  -Granite :  
2516.1100 --Crude or roughly trimmed 5% 
2516.1200 --Merely cut, by sawing or otherwise, into blocks or slabs of a rectangular 
(including square) shape 5% 
2516.2000 -Sandstone 5% 
2516.9000 -Other monumental or building stone 5% 
25.17 Pebbles, gravel, broken or crushed st one, of a kind commonly used for concrete 
aggregates, for road metalling or for railway or other ballast, shingle and flint, 
whether or not heat-treated; macadam of slag, dross or similar industrial waste, 
whether or not incorporating the materials cited in the first part of the heading; 
tarred macadam; granules, chippings and po wder, of stones of heading 25.15 or 
25.16, whether or not heat-treated.  
2517.1000 -Pebbles, gravel, broken or crushed stone, of a kind commonly used for concrete 
aggregates, for road metalling or for railway or other ballast, shingle and flint, 
whether or not heat-treated 5% 
2517.2000  Macadam of sl ag, dross or similar industrial wast e, whether or no t incorporating 
the materials cited in subheading 2517.10 5% 
2517.3000 -Tarred macadam 5% 
  -Granules, chippings and powder, of stones of heading 25.15 or 25.16, whether or 
not heat-treated:  
2517.4100 --Of marble 5% 
2517.4900 --Other 5% 
25.18 Dolomite, whether or not calcined or sintered, including dolomite roughly 
trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a 
rectangular (including square) shape; dolomite ramming mix.  
2518.1000 -Dolomite, not calcined or sintered 10% 
2518.2000 -Calcined or sintered dolomite 10% 
2518.3000 -Dolomite ramming mix 10% 
25.19 Natural magnesium carbonate (magnesite); fused magnesia; dead-burned 
(sintered) magnesia, whether or not containing small quantities of other oxides 
added before sintering; other magnesium oxide, whether or not pure.  
2519.1000 -Natural magnesium carbonate (magnesite) 1% 
2519.9000 -Other 5%  WT/ACC/SPEC/AFG/3 
 Page 81 
 
 
  HS Description Export 
Duties 
25.20 Gypsum; anhydrite; plasters (consisting of calcined gypsum or calcium sulphate) 
whether or not coloured, with or w ithout small quantities of accelerators or 
retarders.  
2520.1000 -Gypsum; anhydrite 25% 
2520.2000 -Plasters 25% 
2521.0000 Limestone flux; limestone and other calcareous stone, of a kind used for the 
manufacture of lime or cement. 5% 
25.22 Quicklime, slaked lime and hydraulic lime, other than calcium oxide and 
hydroxide of heading 28.25.  
2522.1000 -Quicklime 25% 
2522.2000 -Slaked lime 25% 
2522.3000 -Hydraulic lime 25% 
25.23 Portland cement, aluminous cement, sl ag cement, super sulphate cement and 
similar hydraulic cements, whether or not coloured or in the form of clinkers.  
2523.1000 -Cement clinkers 5% 
  -Portland cement :  
2523.2100 --White cement, whether or not artificially coloured 5% 
2523.2900 --Other 5% 
2523.3000 -Aluminous cement 5% 
2523.9000 -Other hydraulic cements 5% 
25.24 Asbestos.  
2524.1000 -Crocidolite 5% 
2524.9000 -Other 5% 
25.25 Mica, including splitting; mica waste.  
2525.1000 -Crude mica and mica rifted into sheets or splittings 10% 
2525.2000 -Mica powder 10% 
2525.3000 -Mica waste 10% 
25.26 Natural steatite, whether or not roughly trimmed or merely cut, by sawing or 
otherwise, into blocks or slabs of a rectangular (including square) shape; talc.  
2526.1000 -Not crushed, not powdered 5% 
2526.2000 -Crushed or powdered 5% 
[25.27] (to be assigned)  
2528.0000 Natural borates and concentrates thereof (whether or not calcined), but not 
including borates separated from natural brine; natural boric acid containing not 
more than 85 % of H3BO3 ca lculated on the dry weight. 2.5% 
25.29 Feldspar; leucite, nepheline and nepheline syenite; fluorspar.  
2529.1000 -Feldspar 5% 
  -Fluorspar:  
2529.2100 --Containing by weight 97 % or less of calcium fluoride 5% 
2529.2200 --Containing by weight more than 97 % of calcium fluoride 5% 
2529.3000 -Leucite; nepheline and nepheline syenite 5% 
25.30 Mineral substances not else where specified or included.  
2530.1000 -Vermiculite, perlite and chlorites, unexpanded 5% 
2530.2000 -Kieserite, epsomite (natural magnesium sulphates) 5% 
2530.9000 -Other 5% WT/ACC/SPEC/AFG/3 
Page 82  
 
  HS Description Export 
Duties 
26.01 Iron ores and concentrates, including roasted iron pyrites.  
  -Iron ores and concentrates, other than roasted iron pyrites:   
2601.1100 --Non-agglomerated 2.5% 
2601.1200 --Agglomerated 2.5% 
2601.2000 -Roasted iron pyrites 2.5% 
2602.0000 Manganese ores and concentrates, including ferruginous manganese ores and 
concentrates with a manganese content of 20 % or more, calculated on the dry 
weight. 2.5% 
2603.0000 Copper ores and concentrates. 2.5% 
2604.0000 Nickel ores and concentrates. 2.5% 
2605.0000 Cobalt ores and concentrates. 2.5% 
2606.0000 Aluminium ores and concentrates. 2.5% 
2607.0000 Lead ores and concentrates. 2.5% 
2608.0000 Zinc ores and concentrates. 2.5% 
2609.0000 Tin ores and concentrates. 2.5% 
2610.0000 Chromium ores and concentrates. 2.5% 
2611.0000 Tungsten ores and concentrates. 2.5% 
26.12 Uranium or thorium ores and concentrates.  
2612.1000 -Uranium ores and concentrates 2.5% 
2612.2000 -Thorium ores and concentrates 2.5% 
26.13 Molybdenum ores and concentrates.  
2613.1000 -Roasted 2.5% 
2613.9000 -Other 2.5% 
2614.0000 Titanium ores and concentrates. 2.5% 
26.15 Niobium, tantalum, vanadium or zirconium ores and concentrates.  
2615.1000 -Zirconium ores and concentrates 2.5% 
2615.9000 -Other 2.5% 
26.16 Precious metal ores and concentrates.  
2616.1000 -Silver ores and concentrates 2.5% 
2616.9000 -Other 2.5% 
26.17 Other ores and concentrates.  
2617.1000 -Antimony ores and concentrates 2.5% 
2617.9000 -Other 2.5% 
2618.0000 Granulated slag (slag sand) from the manufacture of iron or steel. 2.5% 
2619.0000 Slag, dross (other than granulated slag), scalings and other waste from the 
manufacture of iron or steel. 2.5% 
26.20 Slag, ash and residues (other than  from the manufacture of iron or steel), 
containing arsenic, metals or their compounds.  
  -Containing mainly zinc:  
2620.1100 --Hard zinc spelter 2.5% 
2620.1900 --Other 2.5% 
  -Containing mainly lead:  
2620.2100 --Leaded gasoline sludges and leaded anti-knock compound sludges 2.5% 
2620.2900 --Other 2.5%  WT/ACC/SPEC/AFG/3 
 Page 83 
 
 
  HS Description Export 
Duties 
2620.3000 -Containing mainly copper 2.5% 
2620.4000 -Containing mainly aluminium 2.5% 
2620.6000 -Containing arsenic, mercury, thallium or their mixtures, of a kind used for the 
extraction of arsenic or those metals or  for the manufacture of their chemical 
compounds 2.5% 
  -Other :  
2620.9100 --Containing antimony, beryllium, cadmium, chromium or their mixtures 2.5% 
2620.9900 --Other 2.5% 
26.21 Other slag and ash, including seaweed ash (kelp); ash and residues from the 
incineration of municipal waste.  
2621.1000 -Ash and residues from the incineration of municipal waste 2.5% 
2621.9000 -Other 2.5% 
27.01 Coal; briquettes, ovoids and similar solid fuels manufactured from coal.  
   Coal, whether or not pulverised, but not agglomerated:  
2701.1100 --Anthracite 2.5% 
2701.1200 --Bituminous coal 2.5% 
2701.1900 --Other coal 2.5% 
2701.2000 -Briquettes, ovoids and similar solid fuels manufactured from coal 5% 
27.02 Lignite, whether or not ag glomerated, excluding jet.  
2702.1000 -Lignite, whether or not pulverised, but not agglomerated 2.5% 
2702.2000 -Agglomerated lignite 5% 
2703.0000 Peat (including peat litter), whether or not agglomerated. 5% 
2704.0000 Coke and semi coke of coal, of lignite or of peat, whether or not agglomerated; 
retort carbon. 5% 
2705.0000 Coal gas, water gas, producer gas and similar gases, other than petroleum gases 
and other gaseous hydrocarbons. 5% 
2706.0000 Tar distilled from coal, from lignite or from peat, and other mineral tars, whether 
or not dehydrated or partially distilled, including reconstituted tars. 5% 
27.07 Oils and other products of the distilla tion of high temperature coal tar; similar 
products in which the weight of the arom atic constituents exceeds that of the non-
aromatic constituents.  
2707.1000 -Benzol (benzene) 5% 
2707.2000 -Toluol (toluene) 5% 
2707.3000 -Xylol (xylenes) 5% 
2707.4000 -Naphthalene 5% 
2707.5000 -Other aromatic hydrocarbon mixtures of which 65 % or more by volume 
(including losses) distils at 25 0 °C by the ASTM D 86 method 5% 
  -Other :  
2707.9100 --Creosote oils 5% 
2707.9900 --Other 5% 
27.08 Pitch and pitch coke, obtained from coal tar or from other mineral tars.  
2708.1000 -Pitch 5% 
2708.2000 -Pitch coke 5% 
2709.0000 Petroleum oils and oils obtained from bituminous minerals, crude. 2.5% 
27.10 Petroleum oils and oils obtained from bituminous minerals, other than crude;  WT/ACC/SPEC/AFG/3 
Page 84  
 
  HS Description Export 
Duties 
preparations not elsewhere specified or included, containing by weight 70% or 
more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils. 
  - Petroleum oils and oils obtained from bituminous minerals (other than crude) 
and preparations not elsewhere specified   or included, containing by weight 70% 
or more of petroleum oils or of oils obtained from bituminous minerals, these oils 
being the basic constituents of the preparations, other than those containing 
biodiesel and other than waste oils:  
  --Light oils and preparations  
2710.1210  ---- Gasoline for Aviation 12% 
2710.1220 ---- Gasoline for Vehicule 12% 
2710.1290 ---- Other 12% 
  -- Other  
2710.1910 ---- Gasoil (Diesel) 12% 
2710.1920 ---- Jet fuel (aviation Jet oil) 12% 
2710.1930 ---- Kerosene 8% 
2710.1940 ---- Lubricants oil  8% 
2710.1950 ---- Grease  8% 
2710.1990 ---- Other 8% 
2710.2000 - Petroleum oils and oils obtained from bituminous minerals (other than crude) 
and preparations not elsewhere specified or included, containing by weight 70 % 
or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, containing biodiesel, other than 
waste oils 12% 
  -Waste oils:  
2710.9100 --Containing polychlorinated biphenyls (PCBs), polychlorinated terphenyls 
(PCTs) or polybrominated biphenyls (PBBs) 8% 
2710.9900 --Other 8% 
27.11 Petroleum gases and other gaseous hydrocarbons.  
  -Liquefied :  
2711.1100 --Natural gas 2.5% 
2711.1200 --Propane 2.5% 
2711.1300 --Butanes 2.5% 
2711.1400 --Ethylene, propylene, butylene et butadiene 2.5% 
2711.1900 --Other 2.5% 
  -In gaseous state :  
2711.2100 --Natural gas 2.5% 
2711.2900 --Other 2.5% 
27.12 Petroleum jelly; paraffin wax, mi cro-crystalline petroleum wax, slack wax, 
ozokerite, lignite wax, peat wax, othe r mineral waxes, and similar products 
obtained by synthesis or by other processes, whether or not coloured.  
2712.1000 -Petroleum jelly 1% 
2712.2000 -Paraffin wax containing by weight less than 0.75 % of oil 5% 
2712.9000 -Other 5% 
27.13 Petroleum coke, petroleum bitumen and othe r residues of petroleum oils or of oils 
obtained from bituminous minerals.   WT/ACC/SPEC/AFG/3 
 Page 85 
 
 
  HS Description Export 
Duties 
  -Petroleum coke:  
2713.1100 --Not calcined 5% 
2713.1200 --Calcined 5% 
2713.2000 -Petroleum bitumen 5% 
2713.9000 -Other residues of petroleum oils or of oils obtained from bituminous minerals 5% 
27.14 Bitumen and asphalt, natural; bituminous  or oil shale and tar sands; asphaltites and 
asphaltic rocks.  
2714.1000 -Bituminous or oil shale and tar sands 2.5% 
2714.9000 -Other 2.5% 
2715.0000 Bituminous mixtures based on natura l asphalt, on natural bitumen, on petroleum 
bitumen, on mineral tar or on mineral tar pitch (for example, bituminous mastics, 
cut-backs). 2.5% 
2716.0000 Electrical energy. (optional heading) 2.5% 
68.02 Worked monumental or building stone (e xcept slate) and articles thereof, other 
than goods of heading 68.01; mosaic cubes and the like, of natural stone 
(including slate), whether or not on a backing; artificially coloured granules, chippings and powder, of natural stone (including slate).  
6802.1000 -Tiles, cubes and similar articles, whether or not rectangular (including square), 
the largest surface area of which is capable of being enclosed in a square the side 
of which is less than 7 cm; artificially coloured granules, ch ippings and powder 16% 
  -Other monumental or building stone and articles thereof, simply cut or sawn, with 
a flat or even surface:  
6802.2100 -- Marble, travertine and alabaster 20% 
6802.2300 -- Granite 16% 
6802.2900 -- Other stone 16% 
  -Other:  
6802.9100 -- Marble, travertine and alabaster 20% 
6802.9200 -- Other calcareous stone 16% 
6802.9300 -- Granite 16% 
6802.9900 -- Other stone 16% 
6803.0000 Worked slate and articles of slate or of agglomerated slate. 16% 
71.01 Pearls, natural or cultured, whether or not worked or graded but not strung, 
mounted or set; pearls, natural or cultured, temporarily strung for convenience of 
transport.  
7101.1000 -Natural pearls 10% 
  -Cultured pearls:  
7101.2100 --Unworked 10% 
7101.2200 --Worked 10% 
71.02 Diamonds, whether or not worked, but not mounted or set.  
7102.1000 -Unsorted 5% 
  -Industrial:  
7102.2100 --Unworked or simply sawn, cleaved or bruted 5% 
7102.2900 --Other 5% 
  -Non-industrial:  
7102.3100 --Unworked or simply sawn, cleaved or bruted 5% 
7102.3900 --Other 5% WT/ACC/SPEC/AFG/3 
Page 86  
 
  HS Description Export 
Duties 
71.03 Precious stones (other than diamonds) and semi-precious stones, whether or not 
worked or graded but not strung, mounted or set; ungraded precious stones (other than diamonds) and semi-precious stones, temporarily strung for convenience of 
transport.  
7103.1000 -Unworked or simply sawn or roughly shaped 5% 
  -Otherwise worked:  
7103.9100 --Rubies, sapphires and emeralds 5% 
7103.9900 --Other 5% 
71.04 Synthetic or reconstructed precious or semi-precious stones, whether or not 
worked or graded but not strung, mounted or set; ungraded synthetic or 
reconstructed precious or semi-precious stones, temporarily strung for convenience of transport.  
7104.1000 -Piezo-electric quartz 5% 
7104.2000 -Other, unworked or simply sawn or roughly shaped 5% 
7104.9000 -Other 5% 
71.05 Dust and powder of natural or synthetic precious or semi-precious stones.  
7105.1000 -Of diamonds 2.5% 
7105.9000 -Other 2.5% 
  II.- PRECIOUS METALS AND META LS CLAD WITH PRECIOUS METAL  
71.06 Silver (including silver plated with gold or platinum), unwrought or in semi-
manufactured forms, or in powder form.  
7106.1000 -Powder 2.5% 
  -Other :  
7106.9100 --Unwrought 2.5% 
7106.9200 --Semi-manufactured 2.5% 
7107.0000 Base metals clad with silver, not further worked than semi-manufactured. 2.5% 
71.08 Gold (including gold plated with platinum) unwrought or in semi-manufactured 
forms, or in powder form.  
  -Non-monetary:  
7108.1100 --Powder 1% 
7108.1200 --Other unwrought forms 1% 
7108.1300 --Other semi-manufactured forms 2.5% 
7108.2000 -Monetary 5% 
7109.0000 Base metals or silver, clad with gold, not further worked than semi-manufactured. 5% 
71.10 Platinum, unwrought or in semi-manufactured forms, or in powder form.  
  -Platinum :  
7110.1100 --Unwrought or in powder form 5% 
7110.1900 --Other 5% 
  -Palladium:  
7110.2100 --Unwrought or in powder form 5% 
7110.2900 --Other 5% 
  -Rhodium :  
7110.3100 --Unwrought or in powder form 5% 
7110.3900 --Other 5% 
  -Iridium, osmium and ruthenium:   WT/ACC/SPEC/AFG/3 
 Page 87 
 
 
  HS Description Export 
Duties 
7110.4100 --Unwrought or in powder form 5% 
7110.4900 --Other 5% 
7111.0000 Base metals, silver or gold, clad with platinum, not further worked than semi-
manufactured. 5% 
71.12 Waste and scrap of precious metal or of metal clad with precious metal; other 
waste and scrap containing precious metal or precious metal compounds, of a kind 
used principally for the recovery of precious metal.  
7112.3000 -Ash containing precious metal or precious metal compounds 5% 
  -Other:  
7112.9100 --Of gold, including metal clad with gold but excluding sweepings containing 
other precious metals 5% 
7112.9200 --Of platinum, including metal clad with platinum but excluding sweepings 
containing other precious metals 5% 
7112.9900 --Other 5% 
  III.- JEWELLERY, GOLDSMITHS' AND SILVERSMITHS' WARES AND 
OTHER ARTICLES  
71.13 Articles of jewellery and parts thereof,  of precious metal or of metal clad with 
precious metal.  
  -Of precious metal whether or not pl ated or clad with precious metal:  
7113.1100 --Of silver, whether or not plated or clad with other precious metal 10% 
7113.1900 --Of other precious metal, whether or not plated or clad with precious metal 1% 
7113.2000 -Of base metal clad with precious metal 10% 
71.14 Articles of goldsmiths' or silversmiths'  wares and parts thereof, of precious metal 
or of metal clad with precious metal.  
  -Of precious metal whether or not pl ated or clad with precious metal:  
7114.1100 --Of silver, whether or not plated or clad with other precious metal 10% 
7114.1900 --Of other precious metal, whether or not plated or clad with precious metal 1% 
7114.2000 -Of base metal clad with precious metal 10% 
71.15 Other articles of precious metal or of metal clad with precious metal.  
7115.1000 -Catalysts in the form of wire cloth or grill, of platinum 2.5% 
7115.9000 -Other 2.5% 
71.16 Articles of natural or cultured pearls, precious or semi-precious stones (natural, 
synthetic or reconstructed).  
7116.1000 -Of natural or cultured pearls 10% 
7116.2000 -Of precious or semi-precious stones (natural, synthetic or reconstructed) 10% 
71.17 Imitation jewellery.  
  -Of base metal, whether or not plated with precious metal:  
7117.1100 --Cuff-links and studs 10% 
7117.1900 --Other 10% 
7117.9000 -Other 10% 
71.18 Coin.  
7118.1000 -Coin (other than gold coin), not being legal tender 5% 
7118.9000 -Other 5% 
72.04 Ferrous waste and scrap; remelting scrap ingots of iron or steel.  
7204.1000 -Waste and scrap of cast iron 5% WT/ACC/SPEC/AFG/3 
Page 88  
 
  HS Description Export 
Duties 
  -Waste and scrap of alloy steel:  
7204.2100 --Of stainless steel 5% 
7204.2900 --Other 5% 
7204.3000 -Waste and scrap of tinned iron or steel 5% 
  -Other waste and scrap:  
7204.4100 --Turnings, shavings, chips, milling waste, sawdust, filings, trimmings and 
stampings, whether or not in bundles 5% 
7204.4900 --Other 5% 
7204.5000 -Remelting scrap ingots 5% 
7404.0000 Copper waste and scrap. 5% 
7503.0000 Nickel waste and scrap. 5% 
7602.0000 Aluminium waste and scrap. 5% 
7802.0000 Lead waste and scrap. 5% 
7902.0000 Zinc waste and scrap. 5% 
8002.0000 Tin waste and scrap. 5% 
81.01 Tungsten (wolfram) and articles thereof, including waste and scrap.  
8101.9700 --Waste and scrap 5% 
81.02 Molybdenum and articles thereof, including waste and scrap.  
8102.9700 --Waste and scrap 5% 
81.03 Tantalum and articles thereo f, including waste and scrap.  
8103.3000 -Waste and scrap 5% 
81.04 Magnesium and articles thereof, including waste and scrap.  
8104.2000 -Waste and scrap 5% 
81.05 Cobalt mattes and other intermediate products of cobalt metallurgy; cobalt and 
articles thereof, including waste and scrap.  
8105.3000 -Waste and scrap 5% 
81.07 Cadmium and articles thereof, including waste and scrap.  
8107.3000 -Waste and scrap 5% 
81.08 Titanium and articles thereof, including waste and scrap.  
8108.3000  -Waste and scrap 5% 
81.09 Zirconium and articles thereo f, including waste and scrap.  
8109.3000 -Waste and scrap 5% 
81.10 Antimony and articles thereof, including waste and scrap.  
8110.2000 -Waste and scrap 5% 
81.12 Beryllium, chromium, germanium, vanadium, gallium, hafnium, indium, niobium 
(columbium), rhenium and thallium, and articles of these metals, including waste 
and scrap.  
 -Beryllium  
8112.1300 --Waste and scrap 5% 
 -Chromium  
8112.2200 --Waste and scrap 5% 
 -Thallium  
8112.5200 --Waste and scrap 5% 
  WT/ACC/SPEC/AFG/3 
 Page 89 
 
 
   
Table 12:  Prohibited Exports of Endangered Species 
No. Evaluation Year Scientific Name Classification (IUCN) 
Mammals 
1. 2008 Acinonyx jubatus Critical Risk(CR) 
2. 2009 Barbastella leucomelas Vulnerable(VU) 
3. 2008 Canis lupus Vulnerable (VU) 
4. 2008 Capra falconeri Endangered(EN) 
5. 2008 Capra sibirica Critical Risk(CR) 
6. 2008 Caracal caracal Vulnerable(VU) 
7. 2009 Cervus elaphus bactrianus Endangered(EN) 
8. 2008 Felis chaus Deficiency Data(DD) 
9. 2008 Felis silvestris Deficiency Date(DD) 
10. 2009 Gazella bennettii Critical risk (CR) 
11. 2009 Gazella subgutt Urosa Endangered(EN) 
12. 2009 Hyaena hyaena Deficiency Data(DD) 
13. 2008 Lepus capensis Deficiency Data(DD) 
14. 2008 Lynx lynx Vulnerable(VU) 
15. 2009 Martes foina Deficiency Data(DD) 
16. 2008 Moschus cupreus Critical Risk(EN) 
17. 2008 Otocolobus manul Deficiency Data(DD) 
18. 2008 Ovis orientalis Deficiency Data(DD) 
19. 2008 Panthera pardus Endangered(EN) 
20. 2008 Prionailurus bengalensis Deficiency Data(DD) 
21. 2008 Ovis ammon polii Vulnerable(VU) 
22 . 2009 Rhinolophus mehelyi Deficiency Data(DD) 
23. 2008 Uncia uncial Endangered(EN) 
24. 2008 Ursus arctos Defficeincy Data(DD) 
25. 2008 Ursus thibetanus Endangered(EN) 
26. 2009 Vulpes cana Deficiency Data(DD) 
27. 2008 Vulpes corsac Deficiency Data(DD) 
Amphibia 
28. 2008 Batrachuperus must ersi Critical Risk(CR) 
Birds 
29. 2009 Aquila heliacal Endangered(EN) 
30. 2008 Chlamydotis macqueenii Vulnerable(VU) 
31. 2008 Falco cherrug Vulnerable(VU) 
32. 2009 Falco naumanni Vulnerable(VU) 
33. 2008 Grus leucogeranus Critical Risk(CR) 
34. 2009 Gyps bengalensis Critical Risk(CR) 
35. 2009 Haliaeetus leucoryphus Vulnerable(VU) 
36. 2009 Marmaronetta angustirostris Endangered 
37. 2009 Neophron percnopterus Endangered(EN) 
38. 2009 Oxyura leucocephala Critical Risk(CR) 
39. 2009 Pelecanus crispus Vulnerable(VU) 
40. 2008 Phoenicopterus roseus Vulnerable(VU) 
41. 2009 Vanellus gregarious Critical risk(CR) 
Insects 
1. 2008 Parnassius autocrator Endangered 
Plants 
1. 2009 Abies spectabilis Vulnerable(VU) 
2. 2008 Corydalis adiantifolia Deficiency Data(DD) 
3. 2008 Corydalis hindukushensis Deficiency Data(DD) 
4. 2009 Taxus wallichiana Endangered(EN) 
5. 2009 Ulmus wallichiana Endangered(EN) WT/ACC/SPEC/AFG/3 
Page 90  
 
  Table 13:  Procurement Methods Threshold Limits 
Procurement Method Approval Authority of Minister 
Goods Works Services 
National Open Tendering Approximately 
US$400,000 Approximately 
US$2,000,000 Approximately 
US$400,000 
International Open Tendering Approximately 
US$800,000 Approximately 
US$4,000,000 Approximately 
US$800,000 
National Restricted Tendering Approximately 
US$160,000 Approximately 
US$320,000 Approximately 
US$160,000 
International Restricted Tendering Approximately 
US$320,000 Approximately 
US$640,000 Approximately 
US$320,000 
National Single Source Procurement Approximately 
US$100,000 Approximately 
US$500,000 Approximately 
US$100,000 
International Single Source Procurement Approximately 
US$200,000 Approximately 
US$1,000,000 Approximately 
US$200,000 
Request for Proposals for Consultancy 
Services National and International  Approximately 
US$800,000 
Request for Quotation Approximately 
US$10,000 Approximately 
US$10,000 Approximately 
US$10,000 
 
 
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