RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/AFG/5 
26 July 2010 
 (10-3989) 
Working Party on the 
Accession of Afghanistan Original:   English 
 
 
 
ACCESSION OF AFGHANISTAN 
 
Questions and Replies  
 
 
 In a communication circulated in document WT/ACC/AFG/1 on 10 April 2003, the Government of the Islamic Republic of Afghanist an applied for accession under Article XII of the 
Agreement Establishing the World Trade Organization (WTO).  
 The General Council established a Working Party (WT/ACC/AFG/3) on 13 December 2004 
with the following terms of reference:  "To examine the application of the Government of the Islamic 
Republic of Afghanistan to accede to the World Trad e Organization under Article XII and to submit 
to the General Council recommendations which may include a draft Protocol of Accession".  The 
membership is open to all WTO Members indicati ng their wish to serve on the Working Party.  
 
 In document WT/ACC/AFG/4, Members were invited to submit questions in writing 
concerning the foreign trade regime of Afghanistan .  The initial questions submitted by Members and 
the replies thereto, provided by the authorities of Afghanistan, are reproduced hereunder.   
_______________ 
  WT/ACC/AFG/5 
 Page i 
 
 
TABLE OF CONTENTS 
 
I. INTRODUCTION ................................................................................................................... .1 
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE ......................................3  
1. Economy ........................................................................................................................ ............3  
(a) General description............................................................................................................ .......3  
(b) Current economic situation..................................................................................................... .3 
2. Economic Policies.............................................................................................................. ........7  
(a) Main directions of the on going economic policies..................................................................7  
(b) Monetary and Fiscal Policies ................................................................................................... 9 
(c) Foreign exchange and payments system ...............................................................................13  
(d) Foreign and domestic investment policies ............................................................................14  
(f) Privatization policies......................................................................................................... ......16  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES .........................................18  
1. Powers of executive, legislative and judicial branches of government...............................18  
2. Government entities responsible for maki ng and implementing policies affecting 
foreign trade .................................................................................................................. ..........19  
4. Legislative programmes or plans to change the regulatory regime ...................................20  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................22  
1. Import Regulations ............................................................................................................. ....23  
(a) Registration requirements for engaging in importing.........................................................23  
(b) Characteristics of the National Tariff ...................................................................................29  
(c) Tariff Quotas, Tariff exemptions...........................................................................................31  
(d) Other duties and charges, and fees and charges for services rendered .............................31  
(e) Quantitative import restrictions, in cluding prohibitions and quotas ................................33  
(d) Import Licensing procedures.................................................................................................36  
(g) Other Border Measures.......................................................................................................... 38 
(h) Customs Valuation.............................................................................................................. ....38  
(i) Other customs formalities ...................................................................................................... 40 
(j) Pre-shipment inspection ........................................................................................................ .40 
(k) Application of internal taxes on imports...............................................................................41  
(l) Rules of Origin ................................................................................................................ ........43  
(m,n,o)  Anti-dumping, countervailing duty and safeguard regimes ...............................................43  
2. Export Regulation.............................................................................................................. .....44  
(a) Registration requirements for engaging in importing.........................................................44  
(b) Customs tariff nomenclature, types of dut ies, duty rates, weighted average of 
rates.......................................................................................................................... ................44  WT/ACC/AFG/5 
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(c)
 Quantitative export restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............45  
(d) Export licensing procedures...................................................................................................4 5 
(f) Export financing, subsidy and promotion policies...............................................................47  
(g) Export performan ce requirements........................................................................................48  
3. Internal policies affecting foreign trade in goods.................................................................48  
(a) Industrial Policy, including export subsidies........................................................................48  
(b) Technical regulations and standards ....................................................................................48  
(c) Sanitary and phytosanitary measures...................................................................................50  
(f) Free zones/special economic zones ........................................................................................56  
(g) Free economic zones ............................................................................................................ ...56 
(l) Government Procur ement Practices .....................................................................................56  
(m) Trade in Transit ............................................................................................................... .......60  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................64  
1. General........................................................................................................................ .............64  
(e) Fees and Taxes ................................................................................................................. .......66  
2. Substantive standards of protection, including procedures for the acquisition 
and maintenance of intellectual property rights ..................................................................66  
(b) Trademarks, including  service marks...................................................................................66  
(f)  Plant variety protection....................................................................................................... ...66 
(i) Any other categories of intellectual property .......................................................................66  
VI. TRADE-RELATED SE RVICES REGIME .........................................................................67  
VII.  TRANSPARENCY .................................................................................................................75  
VIII.  TRADE AGREEMENTS .......................................................................................................75  
ANNEX 1 ........................................................................................................................ ......................79  
ANNEX 2 ........................................................................................................................ ......................85   WT/ACC/AFG/5 
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  I. INTRODUCTION 
Question 1 The Memorandum states that Afghanistan "will establish a Presidential Commission on WTO 
Accession in the Office of the President" to, inter alia , "serve as the principal point of contact 
between the WTO and the Afghan Government."   
Has the Commission been set up yet?  What is its composition?  Answer:
 
Afghanistan is currently working out the institu tional arrangements for establishing an high level 
Inter-Ministerial WTO Commission under the Presid ent which will be led by the Ministry of 
Commerce and Industry and include the Ministry of  Foreign Affairs, the Ministry of Finance 
(including representative from Afghanistan Customs Department), the Ministry of Agriculture, the 
Central Bank of Afghanistan (DAB), Afghanistan National Standardization Authority (ANSA), the 
Ministry of Justice, the Ministry of Public Hea lth, the Ministry of Labour and Social Affairs, the 
Ministry of Telecommunications and Information Technology, the Ministry of Information and 
Culture, the Ministry of Energy and Water, the Ministry of Mines, the National Environmental 
Protection Agency, and representatives from the private sector and other stakeholders.  Afghanistan 
will report on further developments in this re gard during the first Working Party meeting. 
The Ministry of Commerce and Industry (MoCI) has hi red additional staff to the WTO Unit to act as 
Secretariat for the Commission.  Focal points have b een appointed at other ministries to liaise with the 
WTO Unit. 
A Chief Negotiator has been designated and a negotia tion team has been identified. Several high level 
meetings have been conducted with the Presi dent regarding the WTO accession process as well as 
numerous Cabinet level discussions.  The Ministry of  Foreign Affairs has hired additional resources to 
deal with WTO matters. 
Question 2 
Could Afghanistan update us on the state of play and its further intentions to strengthen the 
Central Statistical Office (CSO)?  
Answer:  
The Central Statistical Organization (not "Office" ) of Afghanistan (CSO) will remain the main 
provider of primary and secondary information in re lation to national statistics.  The Ministry of 
Finance and Central Bank of Afghanistan also ha ve key data generating r esponsibilities. Many line 
ministries engage in gathering, largely based on administrative reporting but a few also conduct 
special surveys. These together constitute the overall statistical system of Afghanistan.  
The CSO is currently compiling statistics on national accounts, prices, external trade, population, 
demographics, industrial and agricultural pro duction, livestock, and services for monitoring 
economic, agriculture, industrial, mining, energy, tr ansportation, communications, investment, trade, 
financial, and structural policies.  The capacity of  the CSO will be strengthened so that a meaningful 
system can be put in place to provide useful da ta on various macro-economic processes and important 
sectors.  To this end, Afghanistan intends to stre ngthen the collection of oper ational data in various 
sectors through respective agencies.  The CSO will c oordinate data collection systems in various 
ministries and organizations. WT/ACC/AFG/5 
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  Following the ANDS, a component strategy for five years has been developed to restructure and 
reform the statistics system in Afghanistan  which purses the following goals and results: 
Goals: 
The Government and its development partners are in  need of reliable, comprehensive and timely data 
for planning and monitoring economic and social progress of the nation.  The CSO is the primary agency responsible for the provision of this data.   
The CSO management has defined its goals as follows: 
"The goal of the Central Statistical Office is to collect process and disseminate timely, coherent and 
trustworthy statistical data concerning the economy and social conditions in Afghanistan, required by 
the government, business and society in ge neral to make informed decisions." 
There are five interrelated strategies to meet this goal: 
− Satisfy user demands; 
− Introduce sample surveys and extens ive use of administrative data; 
− Coordinate and improve the Statistical System; 
− Enact a new Statistics Law in accordance with UN Fundamental Principles of Statistics; and 
− Establish a modern and professional statistical infrastructure to under pin data collection, 
processing and dissemination. 
Expected outcome: 
The expected outcome over the next five years should be viewed in terms of two broad areas: 
− Institutional strengthening and professional development; and 
− Statistical program/activities improvement and expansion. 
In terms of the institutional strengthening, it is expected that the following will be achieved: 
− CSO will be reorganized and staffed at all leve ls by qualified individuals.  CSO will be given 
Priority Restructuring Reform (PRR) status for the whole organization; 
− All levels of the organization, especially at th e provincial levels, will be  strengthened in terms 
of staff numbers and quality.  Training will be  provided.  Refurbishing of the offices and 
where necessary reconstruction of the offices under taken; 
− Detailed job descriptions for all staff at all levels , and training to ensure that everyone is fully 
aware of and is able to carry out their job responsibilities efficiently; 
− Review and improve the processes followed for Annual Staff Performance evaluation and on 
that basis provide on the job in-house training; 
− Annual training to improve the calibre of staff at the various statistical units in all Ministries 
and Departments; and 
− Study tours for key senior staff to other well r un Statistics offices, in neighbouring countries, 
to learn by seeing and discussions.  
In terms of statistical program/activities improvement  and expansion, it is expected that the following 
will be achieved: 
− Statistical infrastructures developed including  adoption of international standardization/ 
customization of concepts and classifications;   WT/ACC/AFG/5 
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  − Information communication technologies and physical infrastructures developed, including 
website development, installation of internet  facilities in cities and setting up information 
centre; and 
− Conducting a number of key surveys and census.  
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE 
1. Economy 
(a) General description 
Question 3 The long awaited census foreseen in 2008 was postponed due to a funding gap, lack of 
capabilities and the overlap with  the voter registration process. 
Could Afghanistan clarify its intentions to conduct a population census in the future?  
Answer:
 
The last population census was conducted in Afghan istan in 1979.  However, due to conflict that 
broke during that year, it was not completed.  Only 67 per cent of the total areas of the country were covered.  Thus, there is a need to conduct a comp lete population and housing census in 2011.  It was 
initially scheduled in 2008 but due to security an d financial issues it was then rescheduled.  The 
current schedule is as follows: 
− Household listing will be carried out this year;  
− Pilot census will be held in 2010; and  
− The actual census enumerati on will be held in 2011. 
(b) Current economic situation 
Question 4 Economic Reforms:  Could Afghanistan provi de more detailed information on the recently 
adopted or envisaged legislation in the econo mic area, including the Income Tax Law and 
Investment Law?  
Answer:
 
The 2005 Income Tax Law was replaced by the Inco me Tax Law of March 2009.  The text of the 
2009 Law is being provided to the WTO Secretariat for making available to Working Party Members  
(see document WT/ACC/AFG/5/Add.1).  The Ministry  of Finance intends to further reform tax 
legislation by replacing the current income tax law with the following four new laws: 
− Law on Tax Administration; 
− Law on Value-Added-Tax; 
− Law on Income Tax; and 
− Law on Business Receipt Tax. 
The drafting of these laws has not yet begun. WT/ACC/AFG/5 
Page 4  
 
  The Private Investment Law of 21 December 2005 has not  been amended since 2005.  The text of this 
law is being submitted to the WTO Secretar iat (see document WT/ACC/AFG/5/Add.1).   
In addition, Afghanistan adopted in the recent y ears three intellectual property laws.  The English 
texts of these three laws are being provided to the WTO Secretariat: 
− Law "On Supporting the Rights of Inventor s and Discoverers" of 31 April 2009; 
− Law "On Supporting the Right of Authors, Composers, Artists, and Researchers" of 
26 July 2008; and 
− Law "On Trade Marks Registration" of 1 September 2009. 
The Law on Support the Rights of Inventors and Disc overers sets out regist ration requirements and 
procedures, including filing, priority, appeals, publi cation, cancellation, and transfer requirements.  
Exclusive rights and protection periods, as well as exceptions such as co mpulsory licensing, are 
detailed.  The Law includes some enforcemen t measures, among them, preliminary measures. 
The Law on the Support of the Rights of Authors,  Composers, Artists and Researchers (Copyright 
Law) includes an extensive definition section, follo wed by detailed provisions on protectable works. 
Both economic and moral rights are set out, as well as limitations and exceptions to those rights.  
The Law defines terms of protection and exclusive ri ghts for the various works governed by the Law.  
Numerous enforcement measures are included.  The Law's points of attachment are clearly defined. 
The Law on Trademarks Registration of Septem ber 2009 contains necessary elements such as 
definitions of basic terminology, registration a nd opposition procedures, provi sions on termination of 
protection, and some infringement and enforcement provisions.  Initial protection terms comply with 
TRIPS standards.  It properly disallows use of partic ular terms as trademarks, in accord with the Paris 
Convention. 
There are currently a number of legal reform initia tives aimed at bringing the foreign trade regime 
into greater conformity with the WTO Agreements: 
− A draft Standard Law is presently at the Council of Ministers.  The English text will be 
provided to the WTO Secretariat; 
− A draft Law on Plant Protection and Quarantine has been prepared by the Ministry of 
Agriculture.  It is currently undergoing internal review within the Ministry; 
− A Draft law on Animal Health and Veterinary Se rvices is being prepared by the Ministry of 
Agriculture; 
− Draft Amendments to the 2005 Customs Law have been prepared and are presently at the 
Ministry of Justice.  Additional amendments to the current Draft will be introduced; and 
− Draft of the Law on Control of Trade in Stra tegic Goods and Services being developed by 
MoCI. Draft Law on Metrology being developed by ANSA. 
Once all aforementioned drafts are finalized, Afgha nistan intends to share with Working Party 
members. 
Last, Afghanistan is currently conducting a systematic  analysis of existing laws to identify gaps and 
deficiencies with respect to WTO conformity.  A specific legislative action plan will be developed setting agenda and priorities for WT O related legal reform.  This w ill include additional intellectual 
property reform initiatives as well as drafting a new law on food safety.  WT/ACC/AFG/5 
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  Question 5 
Reforms of Business Procedures and Administra tive Barriers to Trade:  Could Afghanistan 
provide more information regarding the relation ship between the Afghanistan Central Business 
Registry (ACBR) established within the MoCI in 2008 and the newly restructured Afghan Chamber of Commerce and Industries (ACCI), in cluding at the regional level (between the 
regional antennas of ACCI and the regional bus iness licensing directorates of MoCI)?  
Answer:
 
The Afghanistan Central Business Registry is inte nded as a "one-stop shop" to register all businesses 
in Afghanistan.  All Afghan businesses are required by law to be registered with the Afghanistan Central Business Registry.  The ACBR streamlines and consolidates the myriad processes associated 
with registering a business in Afghanistan- whethe r done by business persons, their agents, or the 
Afghanistan Investment Support Agency (AISA).  In the capacity of a strong and united business 
membership organization representing the entire private sector of Afghanistan, the Afghanistan Chamber of Commerce and Industries (ACCI) stands both as a forum and means for communicating ACBR- related news and information.  The A CBR assesses opportunities to cross fertilize publicity 
with the ACCI and to reach the bulk of the Afghan businesses through the ACCI channels. 
Question 6 
Establishment and Expansion of Industrial Parks:   With regard to Afghanistan's existing and 
planned industrial parks, please provide additional information as follows: 
− The number of companies operating in new and existing parks; 
− The types of government support being provided to companies that locate in those areas, 
including duty and/or tax incentives, and cite  the applicable laws or regulations; and  
− The implementation and enforcement of Afgh anistan's new labour code in the parks, 
with particular emphasis on respect of freedom  of association and collective bargaining 
rights where there is only one legally regis tered "Central Council National Union (of) 
Afghanistan Employees."  
Answer:
 
There are around 400 operational units in the old indu strial parks at Kandahar, Pul-e-Charkhi, Herat 
and Mazar-e-Sharif.  
As for new parks, Afghanistan is pleased to sh are with Working Party Members the following: 
− Bagrami Industrial Park: it has 34 plots which are allocated to comp anies.  Currently, 32 
companies are fully operational and the rema ining companies are currently constructing 
required premises; 
− Mazar Industrial Park: the total land is 15 hect ares, it has 46 plots of which 25 have been 
allocated to 19 companies.  Five companies have started construction; and 
− Kandahar Industrial Park:  Constr uction is completed except for power plant. It has 48 plots 
Around 100 applications have been received.  
The following parks are under construction: 
− Helmand Industrial Park - specific for food industr ies.  Infrastructure is being developed.  The 
number of plots is still unknown given that park  development is still at initial stage; and 
− Hasarshahi Industrial Park is  being constructed on 206 hectares land. It has 295 plots. WT/ACC/AFG/5 
Page 6  
 
  Feasibility studies are being conducted to establis h industrial parks in Qunduz and Khost.  
In all new industrial parks, the government as developer of the park, is providing the basic 
infrastructure facilities like roads, water, electri city, sewage facilities and waste water treatment 
facilities.  No tax/duty exemptions or other subsid ies are provided for establishing in industrial parks 
or for goods produced in the parks. 
All Afghanistan laws equally apply on all persons est ablished in the industrial parks including the new 
labour code. 
Question 7 
International Aid for Trade:  While the impl ementation of the ASYCUDA System has made 
significant progress in the last two years the custom facilities in Sher-Khan Bandar and the 
Weesh Chaman border crossing are not yet cov ered.  What are the plans to ensure ASYCUDA 
coverage in these two important strategic border ports?  
Answer:
 
In Sherkhan Bandar, the Customs facility has been established and ASYCUDA was implemented 
there by the end of 2009.  The feasibility study fo r Weesh Custom's Station has been completed and 
construction work will soon be started.  As s oon as the construction work is completed, the 
ASYCUDA System will be implemented.  
Question 8 
The Development and Implementation of the ANDS: As indicated in the Report, with the 
Afghan government's approval of the ANDS (Afghanistan National Development Strategy) in April 2008, and the endorsement of the ANDS by  the World Bank and the IMF in June 2008, 
the Afghan government has shifted its focus towa rds the implementation of the policy reforms, 
projects and programmes proposed in the Strategy.  
Could Afghanistan please indicate what are its strategic priorities in implementing the ANDS?  
Answer:
 
As per ANDS documents, the following sectors have priorities by numeric order: 
1. Security; 
2. Agriculture and Rural Development; 
3. Infrastructure and Natural Resources; 
4. Education; 
5. Health and Nutrition; 
6. Good Governance, Rule of Law and Human Rights; 
7. Economic and social development; and 
8. Social Protection. 
ANDS sector strategies were costed and pr esented at Paris Conference. The entire ANDS 
implementation is estimated at US$50 Billion over five years of which US$45 Billion pledged by the 
international community.  The Afghanistan Govern ment is coordinating th e implementation of the 
ANDS with the international community through the JCMB (Joint Coordination and Monitoring 
Board).    WT/ACC/AFG/5 
 Page 7 
 
 
  Note that WTO accession is a key element in the ANDS.  Further, the World Bank and the IMF 
approved ANDS as the Poverty Reduction Strategy Paper for Afghanistan. 
To advance the implementation of the ANDS, the G overnment of Afghanistan has designed a Cluster 
process with the aim of focusing on three main Clus ter areas (1) Agriculture and Rural Rehabilitation; 
(2) Human Capacity Development; and (3) Econom ic Development and Infrastructure.  Through 
Cluster mechanism, 12-15 high priority nati onal bankable programs will be developed by 
mid-May 2010, recognizing synergies between diffe rent sectors. Bankable programs should meet the 
following criteria:  (i) contribute significantly to the creation of large numbers of new jobs; (ii) have 
broad geographic impacts; and (iii) If successful , they will attract additional investment.  
2. Economic Policies 
(a) Main directions of the ongoing economic policies 
Question 9 We appreciate the information about the Cu stoms Reforms that the Government of 
Afghanistan is undertaking.  We know that Af ghanistan has taken advantage of the needs 
assessment process available as part of the Trad e Facilitation negotiations and hope that the 
information from that needs a ssessment will continue to info rm the customs reform process. 
Could Afghanistan indicate how it is using that  information to comply with WTO provisions?  
Answer:
 
Afghanistan is currently conducting a systematic an alysis of existing laws to identify gaps and 
deficiencies with respect to WTO conformity.  A specific legislative action plan will be developed by July 2010 setting agenda and priorities for WTO rela ted legal reform.  This will include additional 
intellectual property reform initiatives as well as drafting a new law on food safety. 
In addition to the adoption of three IP pillar la ws in 2008/2009, the following WTO related reform 
initiatives are underway: 
− A draft Standard Law is presently at the Council of Ministers.  The English text will be 
provided to the WTO Secretariat. 
− A draft Law on Plant Protection and Quarantine has been prepared by the Ministry of 
Agriculture, Irrigation and Livestock.  It is cu rrently undergoing internal review within the 
Ministry. 
− A Draft law on Animal Health and Veterinary Se rvices is being prepared by the Ministry of 
Agriculture, Irrigation and Livestock. 
− Draft Amendments to the 2005 Customs Law have been prepared and are presently at the 
Ministry of Justice.  Additional amendments  to the current Draft will be introduced. 
In addition, Afghanistan is furt her improving its customs appeal process and post-clearance customs 
audit. 
Question 10  Strengthening the Enabling Environment:  As indicated in the Report, the objective of a 
supportive enabling environment is to reduce to th e extent possible costs of doing business.   WT/ACC/AFG/5 
Page 8  
 
  Could Afghanistan please indicate what speci fic measures had Afghanistan undertaken to 
reduce the cost of doing business and to improve the business environment?  
Answer:
 
To reduce the cost of doing business and to impr ove the environment; Afghanistan has taken the 
following main steps: 
− The Automated System of ASYCUDA, provision of cargo handling equipment, infrastructure 
development and implementation of simplified procedures has reduced the clearance time by 
a considerable amount.  The above measures also  help to reduce the corruption and help to 
reduce costs and facilitate trade; 
− Afghanistan Investment Support Agency (AISA)  has been established as a one stop shop for 
investment licensing. ANSA has helped in re ducing number of days from months to about 
three days.  More than 48 signature decrease d to four-five signatures.  AISA issues 
investment licenses and facilitates obtaining required licenses for investors from other 
relevant Afghan government agencies. It c ontinues its efforts to improve its licensing 
procedures and facilities and set up AISA's regional offices at provinces to assist the investors in doing business.  For more informati on please visit this website www.aisa.org.af; 
− Introduction of uniform and stable currency, imposing prudential regulation, and enacting 
effective monetary policy by the Central Bank a ll led to comparatively stable exchange rate 
and normalization of inflation; 
− Enacting and implementing a number of commerc ial laws and regulations which helped 
increase financial intermediation and stimulate economic growth. Establishment of about 17 
commercial banks and introduction of Automatic Transfer of money within and outside the 
country is another achievement that decrea ses costs of doing business, prevents risk and 
ensures efficiency in the business service provision; 
− Introduction of new modern institu tions and liberal business laws; 
− Electricity has been imported; and construc tion of hydro power stations is underway; 
− Development of road infrastructure; 
− Construction of railway (Hairatan-Mazar-e-Sha rif, Herat-Islam Qalat, Torkham-Sherkham 
Bandar); 
− Fiscal sustainability has been improved in comparison to before; and 
− Establishment of one-stop-shop for business registration at MoCI. 
A number of challenges remain including fightin g corruption, improving security, and providing 
access to land. Effort is underway to decrease the severity of each of the existing problems. For 
example, the Ministry of Agriculture, Irrigation a nd Livestock (MAIL) is currently working on one-
stop-shop for land leasing and transfer. An Anti-co rruption administration has been established. 
- Pricing Policies
 
Question 11 Does Afghanistan have any price controls?  Plea se describe them and the legal basis for their 
application.  
Answer:
 
Currently, the following goods are subject to pri ce control: electricity, water, pharmaceuticals, 
medical equipment, and cosmetics.  WT/ACC/AFG/5 
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  Electricity:  Da Afghanistan Brishana Sherkat – DBS (a government-owned entity) sets the price for 
electricity subject to the approval of Council of Ministers through Presidential decree.  Prices vary from one region to another, depending on import prices and sources.  As an example, the following is 
the current schedule of electricity prices for Kabul City: 
Table – Electricity Prices for Kabul city
 
Consumers Volume Price/kwt 
0-300 kwt Approx. US$0.03  
301-700 kwt Approx. US$0.08  Residential 
700 and above  Approx. US$0.12 
Commercial Entities Flat rate for any volume Approx. US$0.2 
 
The rates for residential consumers are subsidised. 
Water: the Ministry of Urban Development sets th e price for water and canalization, the cost is 
approx.  US$0.5 per cubic meter for the Afghan Gove rnment.  It is however distributed as follows: 
− For commercial companies, the amount is approximately US$0.4/cubic meter; 
− For planned houses, the amount is appr oximately US$0.12/cubic meter; and 
− For illegal houses, the amount is approximately US$0.08/cubic meter. 
These rates are proposed by the Ministry of Urban Development and approved by Council of 
Ministers through Presidential Decree. 
The Ministry of Energy and Power supplies wa ter for agricultural purposes free of charge. 
Pharmaceuticals: The General Directorate of Pharm acy Affairs of the Ministry of Public Health 
(MoPH) sets the price for pharmaceuticals, medical equipment, cosmetics.  The price fixing mechanism is through controlling administrative co st (4 per cent of value of goods) and profit 
(10 per cent of value of goods).  The same app lies for domestic and imported pharmaceuticals.  The 
legal basis is the Regulation on Export and Import of Medicines and Tools dated February 2007.  
(b) Monetary and Fiscal Policies 
Question 12 Government Budgetary Process:  A lack of capability at the Ministry of Finance and relevant 
line ministers in charge of spending from the Exte rnal Budget has meant that only about half of 
this budget has actually been spent. 
Could Afghanistan elaborate on how it intends to address this problem? 
As regards the envisaged increase of donor assi stance directly through the Core Budget, this 
will require beforehand the implementation of ma jor reforms in public finance management.  
Answer:
 
In Afghanistan, the national budget is intended to be the main policy tool to achieve development 
objectives.  Since 2004, reporting of Afghanistan's National Budget includes a Core Budget and 
External Budget. WT/ACC/AFG/5 
Page 10  
 
  (i) Core Budget:  Includes all funds flowing through the treasury system of government, and 
included in the budget appropriation approved by the Parliament.  
Core budget expenditures are financed by the gove rnment domestic revenues and external assistance 
(mostly grants such as Afghanistan Reconstr uction Trust Fund (ARTF) and highly concessional 
loans).  When there is gap between domestic revenues and core budget expenditures, concessional 
loans as well as drawdown of cash reserves are used for financing.  
(ii) External Budget:  Includes all external assistance funds not flowing through the treasury 
system, i.e. external assistance directly di sbursed to implementing agencies (NGOs and 
private firms).  The external budge t is entirely financed by donors. 
With regard to the envisaged in crease of donor assistance directly through the core budget, this will 
require beforehand the implementation of ma jor reforms in public finance management 
The main issues and steps to address them in this area are: 
− Unpredictability and untimely release of donor fu nds – not much Ministry of Finance (MoF) 
can do about, but one thing that will be done is revision of criteria for MoU assessment and approval that would bring more scrutiny to the process; 
− Insufficient quality of projects – MoF will require  all projects above certain threshold to have 
detailed project documents developed (feasibility  studies, project appraisals, procurement 
plans) as a prerequisite for budget approval; 
− Procurement planning and monitoring – MoF is working on procurement planning and 
monitoring approach and capacity building prog ramme has already been developed to be 
delivered to line ministries throughout 2010; 
− MoF has introduced financial planning requirements for line ministries that would allow it to 
monitor expenditures vs. plan on monthly basis and react early in the year in a case of low execution; and 
− Allotment procedures are to be revised in 2011. 
Question 13 
It would seem to us that one important challenge in customs reform is the fact that the Afghan 
Customs Department (ACD) does not possess it s own operational budget, but is completely 
dependent on the Ministry of Finance (MOF) fo r all budgetary requests.  ACD also has only 
very limited autonomy in terms of human reso urce management, including staffing plans and 
the nomination of leading officials.  A separat e budget for the ACD would be needed to provide 
it with autonomy in this regard. Such budget  for the ACD would be recommended to entail - 
besides the expenses for staff - specific bud get lines for the construction, equipment, 
maintenance and running costs of all custom facilities be it on the border or at the 
provincial/central level.    
Does Afghanistan have any plans to separate the budget and increase autonomy of the ACD?  
Answer:
 
The issue of separate budget for the ACD is under discussion with donors. At the moment the ACD 
has no administrative and budgetary control.  The proposal for the administration and human resource control has been developed by the ACD and sent  to the Minister Office and Donors for their 
considerations.  The IMF and Afghanistan Recons truction Trust Fund (ARTF) donors are viewing to 
support the Customs and also the Reve nue Department in this initiative.   The proposal is under review 
by MoF.   WT/ACC/AFG/5 
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  Question 14 
Tax Policy and Administration Reform:  There is no usable information on Afghanistan's tax 
system in this section of the MFTR. 
Please describe "the recent amendments to the Income Tax Law of 1965" that "incorporated a 
number of new tax policies including the introducti on of a 20 per cent tax rate for all parties 
deemed to be legal residents of Afghanistan."  We assume this is the Income Tax Law of 
26 November 2005.  
Answer:  
The Income Tax law of 1965 and the Income tax Law on 2005 are no longer in effect.  A summary of 
the 2009 Income Tax Law is provided (see document WT/ACC/AFG/5/Add.1). 
Question 15 Is the 20 per cent flat income tax mentioned the only tax levied by the government on domestic 
economic activity?  What other "domestic taxe s" are applied to goods, persons, land, or 
economic activity?  
Answer:
 
The 20 per cent flat income tax is not the only tax levied by the government on domestic economic 
activity. The following lists all other taxes applie d on goods, persons, land, and economic activities: 
1. Goods: The following taxes apply on imported goods: 
Table – Taxes on Imports
 
Type Rate Note 
Tax benefiting 
Afghan Red 
Crescent Agency 2% of customs duty Applied on all imports except food items. 
Fixed Tax 2% of (customs duty + customs 
value) or  
3% of (customs duty + customs value) if no business licence Applied on all imports.  The 2% can be claimed 
as credit in the calculation of the person's annual 
income tax assessment. 
Business Receipt 
Tax (BRT) 2% of (customs duty + customs 
value)  Cannot be claimed as credit. 
 
2. Persons: 
(a) Legal persons: 
− Income tax based on fixed norms:  20 per cent; 
− Business Receipts Tax:  2 per cent for most businesses; 
− Business Receipts Tax:  5 per cent for rest aurants, hotels, and wedding halls which 
has quarterly revenue of appr ox. US$15,000.00 or more; and 
− Business Receipts Tax:  10 per cent for airlines telecommunications and, restaurants, 
and hotels providing superior services. WT/ACC/AFG/5 
Page 12  
 
  The income for legal persons includes: 
− All receipts derived from business/industry/construction/other economic activity; 
− Interest/dividends/rents/royalties; and 
− Any other income from labour, capital or economic activity. 
(b) Natural persons:  
− 0 per cent:  for income 0 – approximately US$1,200; 
− 2 per cent:  for income of approximately US$1,200 – 3,000; 
− 10 per cent:  for income of approximately US$3,001 – 24,000; and 
− 20 per cent:  for income above approximately US$24,000. 
The income for natural persons includes: 
− Salaries/wages/fees/commissions; 
− All receipts derived from business/industry/construction/other economic activity; 
− Interest/dividends/rents/royalti es/rewards/prizes/bonus payments; 
− Distributive shares of partnership income; and 
− Any other income from labour, capital or economic activity. 
In addition, natural persons are subject to BRT at th e same rate as legal persons if the quarterly gross 
revenue of natural persons is a pproximately US$15,000 or higher. 
3. Land: There is no land tax in Afghanistan. 4. Sale or Transfer of Movable and Immovable Property: 
One per cent of the price receivable on sale or transf er of moveable or immovable property is payable 
by natural as well as legal persons.  This tax is in lieu of income tax in the case of a natural person and 
will be allowed as credit against tax payable in the case of a legal person when the tax return is filed. 
5. Transport: Persons who carry on a business of transport of good s or passengers are liable to a tax based on the 
load or passenger carrying capacity of the vehicl e.  The income tax law provides a schedule to 
determine the amount of tax payable.  The tax is a final tax so income derived from business taxed on 
this basis will not be subject to annual income tax assessment. 
6. Rent Withholding Tax: All tenants (lessees) of property used for business purposes (including accommodation of employees) 
are required to withhold tax at the rate of 10 per cent from payment of rent to the landlord (lessor) 
where the rent is approximately US$200 or more per month.  Where the payment of rent is 
approximately US$2,000 or more per month, the rate is 15 per cent.  The tax withheld is treated as a 
credit towards the landlord's (lessor' s) annual income tax assessment. 
7. Contractor Withholding Tax: All contractors, no matter whether they are forei gn or national persons, w ho make payments under a 
contract, are required to withhold tax from those pa yments.  If the payee has a business licence, then  WT/ACC/AFG/5 
 Page 13 
 
 
  tax is to be withheld at the rate of 2 per cent of the amount of the payment.  The tax withheld will be 
allowed as a credit against the payee's annual inco me tax assessment.  If the payee does not have a 
business licence, then tax is to be withheld at the rate of 7 per cent of the amount of the payment.  
In this case, the tax withheld will be treated as a "f inal" tax and there is no requirement for the payee 
to declare this income in their annual income form. 
8. Economic activities:  
The incomes from all persons (see 2 above) are subject to tax unless exempted by law. 
(c) Foreign exchange and payments system 
Question 16 We note that foreign exchange is available from "authorized banks."  
− May foreign owned banks be designated "authorized" by the Afghan Government to 
handle currency conversion? 
− How many banks are so authorized at the present time? 
− Does Afghanistan have a plan or process in pl ace to authorize more banks in the future? 
If so, can Afghanistan explain this plan/process, and the timing?  
Answer:
 
Through the DAB banking licence (general licence), banks (including foreign banks) are authorized to 
"buy and sell for its own account or for clients... foreign currencies" "Law on Banking, Article 33.3".  
Banks have an automatic right to exchange currencies.  There is no need for any special authorization.  
At the present time, there are 17 licensed banks.  Any new banks licensed by DAB will have this 
right. 
Question 17 
Please describe any restrictions or requirements th at exist on the retention of foreign exchange 
or on payments for imports and repatriation of profits.  
Answer:  
There are no restrictions or requirements that exist on the retention of foreign exchange or on 
payments for imports and repatriation of profits. 
Question 18 
Please describe the provisions of the following Regulations: 
− Foreign Exchange Dealers of 7 March 2007; 
− Money Service Providers 2006; 
− Reserve Requirement for Mo netary Purposes 2006; and 
− Protection of the Payment System 2006.  
Answer:  
The following is a description of these regulations.  Afghanistan is prepared to provide additional 
information if needed. WT/ACC/AFG/5 
Page 14  
 
  - Foreign Exchange Dealers of 7 March 2007
 
This regulation stipulates requirements for entities to be licensed to buy and sell foreign exchange in 
Afghanistan.  Licensed foreign exchan ge dealers are eligible to partic ipate in DAB's foreign exchange 
auction.  The foreign exchange dealers activities ar e subject to prudential supervision by the Central 
Bank of Afghanistan. 
- Money Service Providers 2006  
This regulation stipulates requirements for entities to be licensed as money service providers in 
Afghanistan. Money service providers (MSP's) provi de domestic and interna tional money transfer 
services.  The business activities of licensed MSP's are subject to supervision by the Central Bank of 
Afghanistan and the Financial Transactions and Reporting Analysis Centre of Afghanistan for 
compliance with AML/CFT regulations.  
- Reserve Requirement for Monetary Purposes 2006  
This regulation provides for reserve requirements to  be held by the Central Bank for both prudential 
and monetary policy purposes. The re gulation stipulates which assets are eligible as reserve assets, the 
amount of interest that the central bank will re munerate for required reserves, the penalties for non-
compliance and the reserve period.  The existi ng requirement is 8 per cent of base deposits. 
- Protection of the Payment System 2006  
The Central Bank of Afghanistan is responsible fo r providing an efficient payment system.  This 
directive "recognizes the Afghanistan Clearing and Settlement System (ACSS) as a payment system for purpose of the protection of finality under Article  77 of the Law of Banking of Afghanistan".  
It also identifies the Registry of Capita l Notes as a security settlement system.  
(d) Foreign and domestic investment policies Question 19 There is no mention in this section that Afghan istan has incorporated its efforts to attract 
investment (e.g., one-stop-shop, incentives, etc.) into an Investment Law.  We understand, based 
on references elsewhere in the MFTR, that there is an Investment Law, enacted in 
December 2005.  Afghanistan should describe its in vestment policies as enacted in this law. 
− Please confirm that the 2005 Investment La w is the legal basis for Afghanistan's 
investment regime.  If this is not so, please list the appropriate legal citations. 
− Please list its provisions as they relate to foreign investment. 
− Please provide a copy of the 2005 Investment Law to the Working Party for review.  
Answer:
 
Afghanistan confirms that the 2005 Private Invest ment Law is the legal basis for Afghanistan's 
investment regime.  A copy of this law is be ing provided to the WTO Secretariat (see document 
WT/ACC/AFG/5/Add.1).  
The Private Investment law provides national treatme nt to foreign investors and incentives to foreign 
investors (Article 18) in terms of exemptions from export duties and export taxes.  Note however that 
these exemptions are no longer relevant given that  Afghanistan no longer applies export duties and 
export taxes except for iron ores and concentrat es, including roasted iron pyrites (HS 26.01).   WT/ACC/AFG/5 
 Page 15 
 
 
  The provisions related to foreign investment are the following:  
− Article 2 – Purpose of Legislation; 
− Article 3 – Definitions; 
− Article 4 – Investment Generally Permitted; 
− Article 5 - Areas Where Investment May Be Pr ohibited, Restricted or Subject to Special 
Term; 
− Article 9 – Responsibilities of the Office; 
− Article 15 – Application of Afghan Law; 
− Article 16 - Right to be free from discriminatory governmental auctions; 
− Article 17 - Tax concessions for registered enterprises; 
− Article 18 - Import-export duty and tax c oncessions for registered enterprises; 
− Article 19 - Access to banking; 
− Article 20 - Labour and employment; 
− Article 21 – Land use by registered enterprises; 
− Article 22 - Transfer of foreign investment capital; 
− Article 23 - Transfer of profit associated with foreign investment; 
− Article 24 - Transfer of principle and proceeds on foreign loans; 
− Article 25 – Sale of Approved entities; 
− Article 26 – Transfer of proceeds from the Sale of Approved entities; 
− Article 27 – Expropriation; 
− Article 28 – Compensation of Loss; 
− Article 29 - Transfer of Capital, Co mpensation and Right to Dispute; and 
− Article 30 – Dispute Resolution. 
Question 20 
In the section of the MFTR on TRIMs, Afghanistan reports that a Registered Enterprise shall 
be exempt from export duties and export taxes on  products that it manuf actures or assembles in 
Afghanistan to the extent permitted under the Cust oms Law, and that an export licence shall be 
required for such exports, but such licence sha ll be granted automatically upon submission of 
such documentation as is required by law.  
Please discuss this and other provisions of th e Investment Law, the Customs Law and the 
Customs Tariff Law in the context of Afghanistan's Investment regime.  
Answer:  
The Private Investment law provides national treatme nt to foreign investors and incentives to foreign 
investors (Article 18) in terms of exemptions from export duties and export taxes.  Note however that 
these exemptions are no longer relevant given that  Afghanistan no longer applies export duties and 
export taxes.   
There are no TRIMs provided in the Investment Law and the Customs Law. Note that Afghanistan does not have a Customs Tariff Law. 
Question 21 
It is noted that while land ownership is reserved for Afghan citizens, the legal basis for the long 
term leasing of land for commercial activities is be ing implemented.  On the assumption that the WT/ACC/AFG/5 
Page 16  
 
  above will enable foreign investors to lease la nd for business purposes, if their investments are 
to be expropriated, how can they be su re they will receive fair compensation?  
Answer:
 
Article 27 of the Investment Law provides that the Stat e is authorized to expropriate an investment or 
assets of a Registered Enterprise for an overriding p ublic purpose.  The decisi on to expropriate shall 
be based on a law permitting such expropriation and sh all be made on a non-discriminatory basis.  
According to Article 28 of the same Law, The St ate shall provide prompt, adequate and effective 
compensation in conformity with principles of interna tional law, equivalent to the fair market value of 
the expropriated investment or assets immediately be fore the expropriation action was taken.  Such 
compensation shall include interest at the one-year LIBOR rate for the period between the date of the 
expropriation or nationalization and th e date of complete payment of the compensation.  In the case of 
an investment made in a foreign currency, the co mpensation shall be made in the currency in which 
the investment was made at the prevailing rate of exchange.  Article 29 also discusses the transfer of 
capital and dispute resolution in any way that the foreign investor likes. 
(f) Privatization policies Question 22 We appreciate Afghanistan's statement that it currently has "no governmental or non-
governmental enterprises, including marketing b oards, with exclusive rights or privileges in 
export or import operations."  However, in the introduction to the MFTR, it is stated that 
"State-owned enterprises are being privatized, corporatized or liquidated."  We seek more 
specific information on this program.  Co uld Afghanistan please explain how these two 
statements can be reconciled?  
Answer:
 
Not all State-owned enterprises are engaged in import/e xport operations.  Even if a State enterprise is 
engaged in import/export ope rations, it does not necessarily mean that it has exclusive rights or 
privileges in export or import operations.  Further,  all SOEs which import goods do so for their own 
operations and not for commercial sale except for: 
Fuel and Liquid Gas Enterprise which imports fuel and gas for commercial purpose and Da 
Afghanistan Brishna Sherkat (DBS) which im ports electricity for commercial purpose. 
Only DBS has de facto  monopoly in the import of electric power. 
Information regarding the privatization program  and its status is provided in Annex 1. 
Question 23 
Can Afghanistan provide a translated copy of the report of the privatization project to the Joint 
Coordination and Monitoring Board (JCMB), 14 July 2007?  Have there been subsequent 
reports that can be provided?  
Answer:  
The most recent report dates to 2009.  It is provided in Annex 2 below.   WT/ACC/AFG/5 
 Page 17 
 
 
  Question 24 
Could Afghanistan provide (1) the list of government services and (as appropriate) other 
enterprises that are not considered appropriat e for privatization; and (2) the list of other 
State-owned Enterprises (SOEs) where divestit ure from government ownership (i.e., either 
some form of privatization or liquidation) has been planned or accomplished since 2004?  
Are plans to complete the process prior to March 2010 being realized on schedule?  Answer:
 
Information regarding the privatization program is provided in Annex 1 including the list of 
enterprises to remain in State ownership and th e list of State enterprises to be privatized. 
The economic restructuring and privatization program  will take longer than originally projected and 
therefore will not be completed before March 2010. 
Question 25 
Could Afghanistan outline its intentions regarding  the restructuring and corporatization of the 
Fuel and Liquid Gas Enterprise (FLGE)?  
Answer:  
Currently the FLGE is operating within the frame work of Ministry of Commerce and Industry 
(MoCI).  A plan has been developed by MoCI to co rporatize the FLGE.  According to the new Plan of 
the MoCI, a statute has been already prepared and reviewed and submitted to the competent 
authorities for approval.  Once the statute gets appr oved, the FLGE will be given new legal status and 
will operate as a corporation. 
The Government of Afghanistan has already unde rtaken structural measures in this regard.  
The FLGE no longer enjoys monopoly power in the import of petroleum and liquid gas since the 
private sector currently imports the majority of such products. 
Question 26 
Could Afghanistan provide more details re garding the "Enterprises recommended for 
divestiture" mentioned in point (ii)?  
Answer:  
Please see the list of 56 enterprises recommended for divestiture in Annex 1, Attachment 2. 
Question 27 
Could Afghanistan give a more detailed update on the privatization project of the 65 SOEs?  
Answer:  
Out of the 56 enterprises recommended for divestiture: 
− Five SOEs have been completely sold to the private sector; and 
− Five SOEs have been leased long-term to foreign and domestic investors. WT/ACC/AFG/5 
Page 18  
 
  III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES  
1. Powers of executive, legislative and judicial branches of government Question 28 The MFTR states that the "judicial branch consists of the Supreme Court, Appeal Courts 
(Provincial Courts), and Primary Courts (Distr ict Courts).  The Supreme Court is the highest 
judicial organ."   
Please explain how administrative decisions in matters covered by WTO Agreements by 
government representatives can be appealed admini stratively in the first instance (e.g., within 
the responsible Ministry or to an administrative tribunal), that is, without having to go to the 
courts?  
Answer:
 
As Afghanistan is elaborating its WTO systemic la ws, provisions will be introduced in specific laws 
to allow, in addition to access to th e judiciary, access to administrativ e appeal and where relevant to 
commercial arbitration.  This will be the case fo r all SPS, TBT, IP, licensing, and customs related 
legislation.  
In fact, the Afghan Customs Department (ACD) has established an administrative appeal process that 
is currently being further enhanced.  In addition,  a Regulation Customs Administrative Arbitration has 
also been adopted.  It provides another option for traders after administrative appeal and prior to 
seeking court proceedings.  The Customs Arbitration Administration has not been established yet.  It 
is anticipated to be an independent/impartial body est ablished within the framework of the Ministry of 
Finance.   
Question 29 
Please explain how administrative decisions in matters covered by WTO Agreements by 
government representatives can be appealed to th e courts after administrative options have 
been exhausted?  
Answer:  
The case is first submitted to the Primary Commercial  Court in the respective district.  A panel of 
three judges is assigned to each case.  After st andard documentation, presentation of arguments, 
witnesses, and the review of evidence, the judges deli berate and announce their decision.  If either of 
the parties is not satisfied with the decision, they may appeal to the Appeals Court.  A similar process 
is undertaken and a decision is announced.  Either party may wish to appeal the decision to the 
Commercial Tribunal of the Supreme Court.  This court with three judges only reviews the case to 
make sure that the rule of law was applied.  Th ey do not receive witnesses or review evidence.  
The decision of the Commercial Tribunal of the Supreme Court is final.  
Question 30 
Are appeals and challenges concerning the a pplication of measures covered by WTO 
Agreements heard in the Commercial Courts?  A re they subject to appeal to the Commercial 
Tribunal of the Supreme Court?  Are they  subject to commercial arbitration?   WT/ACC/AFG/5 
 Page 19 
 
 
  Answer:  
Please see the reply to the two previous questions. 
Question 31 
What is meant by the statement, "A certain num ber of cases concerning the civil responsibility 
of the State are dealt with by the courts."   Why only "a certain number"?  How are the 
numbers of such cases limited?  
Answer:  
This statement was intended to indicate the current s ituation at that time with respect to a number of 
court cases initiated.  There are no limitations to th e number of cases that can be initiated.  Under 
Article 9 of the Civil Procedure Code, there are no differences in cases with or without participation 
of the State as a party to a case. 
Question 32 
Relation with WTO Agreements - After ratifica tion of the WTO accession package by the 
National Assembly: 
− Will the provisions of WTO be enforceable in  Afghanistan directly if no conforming 
legislation has yet been passed?  
− Will the courts enforce WTO provisions even if  no conforming legislation has yet been 
passed?  
Answer:  
WTO provisions will not be enforceable in Afghanistan  directly if no conforming legislation has been 
passed.  In addition, the courts will not enfor ce WTO provisions until co nforming legislation is 
enacted. 
Afghanistan is currently conducting a systematic an alysis of existing laws to identify gaps and 
deficiencies with respect to WTO conformity.  A specific legislative action plan will be developed by 
July 2010 setting agenda and priorities for WTO related legal reform.  
2. Government entities responsible for making and implementing policies affecting foreign 
trade 
Question 33 
Trade is affected by the parallel existence of bo rder ports authorities by the Minister of Finance 
(customs administration) and the Minist er of Commerce and Industry (for relevant 
import/export licenses etc).  Lack of coordinati on may result in excessive administrative charges 
being imposed.  While ad hoc arrangements fo r cooperation have been found for some border 
ports, a general agreement that would define more clearly, inter alia , respective functions, 
modalities of cooperation and use of common facili ties, and would apply to all border ports, is 
still outstanding.  Furthermore, trade would be fa cilitated by the establishment of single entry 
points.   
Could Afghanistan outline any plans for such a Memorandum of Understanding between MoF 
and MoCI, as also recommended by the IMF and the World Bank?  WT/ACC/AFG/5 
Page 20  
 
  Answer:
 
The Memorandum of Understanding between MoF and Mo CI is currently being drafted to be signed 
in the near future. 
Question 34 
Could Afghanistan confirm that the Ministry fo r Agriculture, Irrigation and Livestock (MAIL) 
is also responsible for trade in products of anim al origin, including the issuing of import/export 
certificates for such products? 
Answer:  
Afghanistan confirms that the Ministry for Agriculture, Irrigation and Livestock (MAIL) is 
responsible for regulating trade in products of anim al origin, including the issuance of the veterinary 
certificate on the basis of conditions statement for export of animal and animal products.  This is 
issued by the General Directorate on Animal Health under MAIL. 
In addition, MAIL is responsible for issuing the following other certificates: 
− Phytosanitary certificate for export of plants and plant products.  This is issued by the 
Directorate for Plant Quarantine under MAIL; 
− Quality Permit for import of non-processed agri cultural products (except live animals and live 
plants), agrochemicals, and chemical fertilizers.  This is issued by the General Directorate of 
Food Security and Quality Control under MAIL; 
− Quality Permit for export of all non-processed agricultural food products (except live animals 
and live plants).  This is issued by the General Directorate of Food Security and Quality Control under MAIL; and 
− A quality certificate for export of fresh fruits, dr ied fruits, and vegetables is also required.  
This is issued by the Afghan Raisin, Frui ts and Vegetables Promotion Association. 
All aforementioned certificates are mandatory for trade in respective products as indicated above 
4. Legislative programmes or plans to change the regulatory regime Question 35 With regard to Afghanistan's trade and invest ment-related commercial laws and regulations, 
could Afghanistan circulate a legislative plan th at identifies any current or planned revisions to 
the list of laws and legal acts at Anne x 2, and the progress of those revisions?  
Answer:
 
Afghanistan's trade and investment-related commercia l laws and regulations listed in Annex 2 were 
all adopted during the last seven years (most of them during the last four years).  These were developed on the basis of best international practices and recommendations of international 
organizations. 
Afghanistan is currently conducting a systematic an alysis of existing laws to identify gaps and 
deficiencies with respect to WTO conformity.  A specific legislative action plan will be developed by 
July 2010 setting agenda and priorities for WTO related legal reform.  WT/ACC/AFG/5 
 Page 21 
 
 
  Question 36 
Please provide copies of the following legislation for Working Party review: 
− Customs Law, 4 April 2005; 
− Medicine Law, 24 February 2007; 
− Minerals Law of Afghanistan, 11 August 2005; 
− Private Investment Law, 21 December 2005; 
− Procurement Law, 25 October 2005; 
− Public Health Law, 24 February 2007; 
− Secured transaction Law, 2008; 
− Trade Marks Law, 1960; 
− Decree on standards and metrology, 6 May 2004; 
− Decree Amending Article 31 of the Purchasing Regulation, 18 November 2002; 
− Decree Amending Certain Articles and Part s of the Regulation on the Import and 
Exhibition of Motion Pictures and the Monitoring of Cinemas, 5 March 2005; 
− Regulations on the authorization for import/export operation, 2004; 
− Prohibited Goods for Import (Customs Tariff), 2005; 
− Regulations on the control and use of Plant Pesticides in Afghanistan; 
− Regulations on the Quarantine of plants in Afghanistan; 
− Regulation on livestock Management in the Islamic Republic of Afghanistan;  
− Prohibited and Authorised Activities, 7 March 2006; 
− Regulation on Pharmacies, 24 February 2007; 
− Regulation on manufacturing and importin g and medical appliances, 24 February 2007; 
− Regulation on Determination of Customs Value, 20 March 2006; 
− Regulation for the Customs Arbitration, 20 March 2006; and 
− Regulation on Culture, Artistic, Remuneration of Mass Media Services, Artistic 
Activities, Remuneration of Scientific Researching and Publication Activities in the Scientific Researching Institutions in Afghanistan, 23 December 2003.  
Answer:
 
The English texts of the following legislation are being provided to the Working Party (see document 
WT/ACC/AFG/5/Add.1): 
− Customs Law, 4 April 2005; 
− Medicine Law, 24 February 2007; 
− Minerals Law of Afghanistan, 11 August 2005; 
− Private Investment Law, 21 December 2005; 
− Public Health Law, 24 February 2007; 
− Secured Transaction Law, 2008; 
− Regulation on Pharmacies, 24 February 2007; 
− Regulation on manufacturing and importing a nd medical appliances, 24 February 2007; 
− Regulation on Determination of  Customs Value, 20 March 2006; 
− Regulation for the Customs Arbitration, 20 March 2006;  
− Regulation on the Import and Show of Motion Pictures and the Monitoring of Cinemas of 
1998 with amendments introduced by Decree Am ending Certain Articles and Parts of the 
Regulation on the Import and Exhibition of Moti on Pictures and the Monitoring of Cinemas, 
25 January 2005; and WT/ACC/AFG/5 
Page 22  
 
  − Regulation on Culture, Artistic, Remuneration of  Mass Media Services, Artistic Activities, 
Remuneration of Scientific Researching an d Publication Activities in the Scientific 
Researching Institutions in Afghanistan, 23 December 2003. 
The English texts for the legislation below will not be provided to the WTO Secretariat for the 
following reasons: 
− Procurement Law, 25 October 2005 is no long er valid.  A new Law on Procurement was 
adopted in 29 July 2008 and amended in 2009.  Th e text of the 2008 law is being provided to 
the WTO Secretariat (see document WT/ACC/AFG/5/Add.1); 
− Decree on standards and metrology, 6 May 200 4 will be invalid once the Draft Law on 
Standards gets adopted.  As such the Draft w ill be provided to the WTO Secretariat in order 
not to confuse the old regime with the new one; 
− The Trade Marks Law of 1960 is no longer valid.  Instead the recent Law on Trademarks 
Registration adopted on 1 September 2009 is being provided (see document 
WT/ACC/AFG/5/Add.1); 
− Once the Draft Law on Plant Protection and Qu arantine gets adopted, the following will be 
invalid: the Regulations on Pesticides in Afgha nistan of 3 October 1996; the Regulations on 
the Quarantine of Plants of 23 October 1996; and the Law on Plant Quarantine of 
3 October 1996 will be invalid.  As such, when finalized at the minist erial level, the Draft 
Law on Plant Protection and Quarantine will be pr ovided to the WTO Secretariat instead in 
order to avoid confusion and unnecessary questi ons regarding a regime that will be invalid; 
− Afghanistan has Law on Veterinary Service of 3 February 2000 whic h will be invalid once 
the new Draft law on Animal Health and Veteri nary Services gets adopted.  As such, when 
finalized at the ministerial level, the Draf t Law on Law on Animal Health and Veterinary 
Services will be provided instead in order to avoid confusion and unnecessary questions 
regarding a regime that will be invalid; and 
− Prohibited Goods for Import (Customs Tariff), 2005 is no longer valid.  Afghanistan does not 
have a Customs Tariffs Law.  The Tariff Schedul e is published. The list of prohibited goods is 
found in the most recent Tariff Schedule published in 2007.  The 2007 Tariff Schedule is 
being provided to the WTO Secretariat. 
The following are no longer in effect: 
− Decree Amending Article 31 of the Purchasing Regulation, 18 November 2002; 
− Prohibited and Authorised Activities, 7 March 2006; 
− Regulations on the authorization fo r import/export operation, 2004; and 
− Regulation on livestock Management in the Islamic Republic of Afghanistan. 
IV. POLICIES AFFECTING TRADE IN GOODS 
Question 37 
Has the Customs Law been evaluated for consistency with the WTO?  
Answer:
 
The 2005 Customs Law was evaluated in February  2009 for consistency with the relevant 
WTO Agreements including CVA and ROO.  An nex 4 of document WT/ACC/1 (check-list under 
G/VAL/W/1) has been revised and submitted to WT O Secretariat (see document WT/ACC/AFG/6).  
Afghanistan intends to prepare in 2010 fu rther amendments to the Customs Law to:  WT/ACC/AFG/5 
 Page 23 
 
 
  − Reflect the general principles of technical customs valuation rules; 
− Provide for a right to withdraw goods pending final valuation; 
− Remove limitations for rights of judicial appeal based on amount in dispute; 
− Broaden the definition of confidential information; and 
− Provide for origin binding rulings. 
1. Import Regulations 
(a) Registration requirements for engaging in importing Question 38 Must a firm join the CCI (Chambers of Commerc e and Industry) or ANCCI (Afghan National 
Chamber of Commerce and Industry) in order to trade in Afghanistan?  
Answer:
 
Please note  that CCI (Chambers of Commerce and Industry) and ANCCI (Afghan National Chamber 
of Commerce and Industry) have merged to form  Afghanistan Chamber of Commerce and Industry 
(ACCI) 
There is no need to join the ACCI in order to trade in Afghanistan.  However, firms engaged in import 
and export must register at the ACCI.  Registra tion is automatic and costs approximately US$3. 
Question 39 
What are the legal forms for business registration in Afghanistan, e.g., sole proprietor, branch, 
partnership, corporation, joint-venture, etc.?  
Answer:  
Legal forms for business registration in Afghanistan are the following: 
− Corporations; 
− Limited liability companies; 
− Partnership; and 
− Agent (representative office). 
To register as a legal entity, the applicant first approaches the Business Licensing Department (BLD) 
at Ministry of Commerce and Industries (MoCI) and fill in the various forms listed in items 3 and 5 in 
Annex 3 of WT/ACC/AFG/4 including the Corporate Statutes (Articles of Association) form.  The forms are then passed by th e BLD to the Afghanistan Central Business Registry (ACBR) for 
registration.  Once registration is completed, the ACBR refers back to the BLD and then the Business 
Licence gets issued. 
Applications can be submitted to the BLD at the Mi nistry of Commerce and Industry or at any of 16 
offices in the provinces.  The ACBR however h as offices in 4 provinces:  Jalalabad, Kandahar, 
Mazar-e-Sharif, and Herat.  
Sole proprietor engaged in foreign trade activities mu st register at the ACBR.  For non-foreign trade 
activities, sole proprietor must register at the muni cipality where activities are conducted.  There is no 
need for sole proprietor to apply at the BLD at MOCI. WT/ACC/AFG/5 
Page 24  
 
  Question 40 
Are there any forms of commercial presence forbidde n in Afghanistan, either generally or for 
specific businesses?  
Answer:
 
Currently, there are no limitations established with  respect to forms of commercial presence in 
Afghanistan either generally nor for specific business. 
Question 41 
Annex 3 – Information on Business Licensing Procedures for Export and Import Operations 
A. Domestic Corporation Licence for Traders:  
Please describe in more detail the registration requirements for individuals and businesses to 
engage import and export activities. 
− Is registration, as required by the Commercial Code of Afghanistan (1955), the same 
thing as obtaining a business licence? 
− Please provide a copy of the Ministerial Decree noted in Annex 3 and the Business 
Licensing Regulation. 
− What are the "criteria" for receiving a busin ess licence referenced in Annex 3, Section 
A.2?  
Answer:  
Registration as a legal person or sole proprietor is currently conduced in accordance with the 
Corporations and Limited Liability Companies Law of 30 January 2007. 
Registration is not the same thing as obtaining a business licence. In order to engage in any business activity (includi ng trading activities) in Afghanistan, there is need 
to register as a legal person or a sole proprietor.  To engage in trade for commercial activities, the 
legal person and sole proprietor needs to have a business licence.  
Foreign legal persons must register domestically in  order to obtain a business licence.  This does not 
require investment and they may establish as an agen t (representative office).  Foreign natural persons 
need to register as a sole proprietor and obtain a business licence in order to be able to trade. 
Legal persons and sole proprietor (for trade purpose) are registered at the ACBR located at the MoCI 
or its regional offices located in several provin ces including Jalalabad, Mazar-e-Sharif, and Herat. 
Sole proprietor can register at municipalities for non-trade purpose. 
The Business Licence is obtained  from the BLD at MoCI.  The requirements for obtaining a business 
licence are listed under points 3-5 of Annex 3 of  document WT/ACC/AFG/4.  The criteria for 
obtaining business licence are meeting the require ments outlined in points 3-5 under Annex 3 of 
document WT/ACC/1.  The Business Licence must be renewed annually.  The renewal is automatic. 
The applicant first approaches the BLD at MoCI and f ills in the various forms listed in items 3 and 5 
in Annex 3 of document WT/ACC/AFG/4 including the Corporate Statutes (Articles of Association) 
form.  The forms are then passed by the BLD to the ACBR for registration.  Once registration is 
completed, the ACBR refers back to the BL D and then the Business Licence gets issued.  WT/ACC/AFG/5 
 Page 25 
 
 
  The English text of the Ministerial Rule issued by the MoCI in 2004 and the English text of the 
Business Licensing Rule of 2004 are being s ubmitted to the WTO Secretariat (see document 
WT/ACC/AFG/5/Add.1). 
Question 42 
The description of required documentation for a business licence in Annex 3, Section A.5, is 
unclear. 
Is the "application letter from the investor" the application for a business licence by the 
individual or firm seeking one?  
Answer:  
To obtain a business licence, the applicant must submit an application form.  Application letter (cover 
letter) is no longer required. 
Question 43 
What is a "national ID card" with respect to a firm seeking a business licence?  
Answer:  
The national ID card is Tazkira (identity card) for Afghan citizens or passport for foreigners who are 
applying to obtain the business licence as sole proprietor of on behalf of the legal person. 
Question 44 
What is a "measurement form (forma e sanjesh)?"  
Answer:  
Please note that this form is called "fee calculation form" and not "measurement form."  There was a 
translation error in document WT/ACC/AFG/4. 
The fee calculation form (forma e sanjesh) is fille d by the BLD at MOCI.  It provides a breakdown of 
fees (e.g. stamps, photocopying, costs of forms) charge d to the applicant.  Note that the fees reported 
under Question 49 below are total fees. 
Question 45 
Are "corporate statutes (Articles of Association)" simply a citation of the legal documents or is 
a copy of the applicant's incorporation documents required?  
Answer:  
The applicant fills the Corporate Statutes (Articl es of Association) form provided by the BLD at 
MOCI.  This form is filled before the lega l person or sole proprietor is registered.  
Question 46 
What is a "Corporate Identity form?"  WT/ACC/AFG/5 
Page 26  
 
  Answer:
 
This form is filled by the applicant to provide information regarding biog raphy of the applicant 
including criminal record.  This form is submitted by the BLD at MOCI to the Ministry of Interior to 
receive background check on the applicant. 
Question 47 
Is the "Letter to the Afghanistan Central Bu siness Registry (ACBR) from the Business 
Licensing Directorate of the MoCI" the formal notification that the applicant now has a 
business licence and is registered?  
Answer:  
The purpose of referral letter to the Afghanistan Central Business Registry (ACBR) from the BLD at 
MOCI is to indicate that the applicant has been registered as a legal person or sole proprietor. 
Question 48 
Are there any other formalities that an individual or  firm must perform to be able to import or 
export?  
Answer:  
There are no other formalities for imports or exports.  
Question 49 
Section A.7 states that "In accordance to the Measurement Form, a fee determined by the 
Revenue and Collecting Office of the MoCI is paid at Branch No. 12 of the Da Afghanistan Bank within the MoCI: 
− It appears from the note at the end of this  section that the form lists a number of fees 
and taxes payable for the licence and registrat ion.  Is that correct?  Are there any other 
fees or taxes associated with this process? 
− Are any of these fees based on anything other than the cost of providing the business 
licence and registration?  
Answer:
 
The fee for registering as a legal person is 1 per cent of capital.  Almost all applicants register on the 
basis of minimum required capital of approx. US$1, 000.  In such case, the registration fee is 
approximately US$10.  The registration fee is only paid once at the time of registration. 
Information regarding new registered legal persons (e.g. name of business, general information, initial 
capital, contact) must be published in the official gazette.  The fee is: 
− Approximately US$0.06 cent per letter for those registered in Kabul; 
− Fixed fee of approximately US$20 for those registered in Jalalabad and Mazar-e-Sharif; and 
− Fixed fee greater than approximately US$20 fo r those registered in Heart and Kandahar. 
Re-registration of any changes must be ag ain published in the official gazette.  WT/ACC/AFG/5 
 Page 27 
 
 
  The schedule of fees for obtaining a business licence is the following: 
− For Afghan legal persons, the fee is approximately US$57; 
− For sole proprietor, the fee is approximately US$34; 
− For foreign natural and legal persons, the fee is US$ 1,400 plus approximately US$29; and 
− For agency (representative office), the fee is  US$ 1,900 plus a pproximately US$19. 
The fee schedule for the annual renewal of the Business Licence is the following:   
− For Afghan legal persons, the fee is approximately US$43; 
− For sole proprietor, the fee is Af 1,650 approximately US$33; 
− For foreign natural and legal persons, the f ee is US$ 400 plus approximately US$29; and 
− For agency (representative office), the fee is US$ 900 plus approximately US$19. 
Question 50 
Section A.7 states that "The company Identity Form (which contains the identity of the owner) 
must be signed by the Criminal Offices of Mini stry of Interior Affairs as well (after a criminal 
background check it is signed and stamped and is  returned back)."  How is this part of the 
process applied to foreign firms?  
Answer:  
For foreign firms and foreigners, this form is also  filled and submitted to the BLD at MOCI.  It is 
automatically approved at the BLD and then sent to th e ACBR.  It does not get sent to the Ministry of 
Interior Affairs. 
Question 51 
Section A.7 states that "The ACBR keeps the orig inal copy of the Articles of Association and 
registers the company."  How is this part of th e process applied to firms incorporated abroad?  
Answer:  
The original copies of the following forms are kept at the Business Licensing Directorate of the MoCI 
(not ACBR): 
− Calculation form (forma e sanjesh); 
− Corporate Statutes (Articles of Association); and 
− Corporate Identity. 
Foreign firms must register in Afghanistan and obt ain a business licence in order to engage in any 
trade activities. 
Question 52 We seek to establish that any domestic or  foreign firm or individual may acquire the 
appropriate licence for importation or exportatio n without the requirement of investment.  We 
would appreciate it if Afghanistan could prov ide any other information relevant to that 
objective.  WT/ACC/AFG/5 
Page 28  
 
  Answer:
 
Afghanistan confirms that any domestic or foreign firm or individual may acquire business licence for 
importation or exportation without th e requirement of investment.  
Question 53 
Annex 3, Sections B and C discuss the requiremen ts for a licence to import medicines and 
animal medicines.  Are there any other areas of importation or exportation that require special 
authorizations, i.e., in addition to the business licence described in Section A?  
Answer:  
The following require special authori zations in addition to business licence: 
− Import permit from the Ministry of Public H ealth is required to import pharmaceuticals and 
medical equipment, cosmetics, and pharmacy to ols.  The legal basis is the Regulation on 
Export and Import of Medicines and Tools dated February 2007; 
− Permit from the General Directorate of Animal  Health under MAIL to import veterinary 
medical instruments and veterinary drugs and biological materials.  The legal basis is the Law on Veterinary Services of 3 February 2000; 
− Permit from the General Directorate of Anim al Health under MAIL to export animal 
products.  The legal basis is the Law on Ve terinary Services of 3 February 2000; 
− Permit from the Directorate for Plant Quar antine under MAIL to import pesticides and 
agrochemicals. The legal basis is the Re gulations on Pesticides in Afghanistan of 
3 October 1996; 
− Import/Export Permit from the Seeds Agency unde r MAIL to import/export seeds.  The legal 
basis is Law on Seeds of 6 December 2009; 
− Import permit from the National Environmental Pr otection Agency of Afghanistan for the list 
provided in the reply to Question 99 below.  The legal basis is the Law on Environment of 25 January 2007; 
− Import/Export approval from the Ministry of In formation and Culture for films, printed 
books, brochures, leaflets, and ot her printed matter.  The legal basis is the Law on Media of 
6 July 2005; 
− Export approval from the Ministry of Information and Culture for antiquities; 
− Import permit (for one importation) or impor t licence (for multiple importations) from the 
Ministry of Communications and Informati on Technology required for telecommunication 
equipment.  The legal basis is the Telecommunications Services Regulation law of 23 January 2006; 
− Import Permit from the Ministry of Interior to import armoured vehicles; 
− Import Permit from the Ministry of Interior and the Ministry of Defence to import arms, 
ammunitions, military equipment; 
− Import Licence from the Ministry of Counter-Narcotics for precursors and Chemicals.  
The legal basis is the Law on Counter-Narcotics; 
− Export Authorization from the Vegetable a nd Animal Products Industrial Commercial 
Services Association for skins, intestines, and wools.  The legal basis is by-laws of the 
Association; 
− Export Authorization from the Carpet Exporter and Producers Guild for carpets, rugs, and 
felts.  The legal basis is by-laws of the Guild; 
− Export Authorization from the Handicraft Promo tion Centre for all handicrafts items.  
The legal basis is its By-Laws;  WT/ACC/AFG/5 
 Page 29 
 
 
  − Export Authorization from the Karakul Institute fo r kinds of Karakul.  The legal basis is its 
by-Laws; 
− Export Authorization from the Ministry of Min es for all minerals.  The legal basis is the 
Mineral Law of 11 August 2005; and 
− Export Authorization from the International Trade Directorate of MoCI for all exports.  
The legal basis is its By-Laws. 
Importers must notify all permits, licenses, a nd approvals obtained from the aforementioned 
ministries to the BLD at MoCI.   
In many cases, importers are allowed to only apply for permits, licenses, and approvals after the entry 
of goods into the territory of Afghanistan. 
(b) Characteristics of the National Tariff 
Question 54 Afghanistan notes that the Afghanistan National Tariff Schedule is based on the HS 2007 
system.  At what level in the tariff schedule does  Afghanistan apply tariffs (e.g., at the four-digit 
level, six-digit level, or some other level)?  
Answer:
 
Tariffs are applied at the eight-digit. 
Question 55 
What products are covered under the preferenti al trade agreement between Afghanistan and 
India?  What are the preferential tariff rates applied to certain imports covered under this 
agreement?  
Answer:  
Please see Tables below for respectively items where preferential tariff rates are granted by the 
Government of Afghanistan and by the Government of India.   
Table – Preferential Tariff Rates Granted by Afghanistan for India  
No. HS Code Product Description MFN Duty % 
(in 2003) Margin of 
Preference Rate of duties in 
2009 
1 90230 Black Tea (fermented) Temporary 
Exempted 100% 5% 
2 90240 Other Black Tea Temporary 
Exempted 100% 2.5% 
3 300210 Antisera and blood 
fractions and modified 
immunological products  7 100% 2.5% 
4 300390 Other Ayurvedic, 
Homeopathic Medicine 7 100% 2.5% 
5 300490 Other Medicine for retail 
sale 7 100% 2.5% WT/ACC/AFG/5 
Page 30  
 
  No. HS Code Product Description MFN Duty % 
(in 2003) Margin of 
Preference Rate of duties in 
2009 
6 170199 Sugar refined Temporary 
Exempted 100% 5% 
7 252310 Cement Clinkers 25 100% 2.5% 
8 252321 White Cement 25 100% 2.5% 
 
Table – Preferential Tariff Rates Granted by India for Afghanistan  
No. HS Code Product Description MFN Duty % Margin of 
Preference Rate of duties in 
2009 
1 80620 Green Raisins 105 50% 100 
2 80620 Green Large 105 50% 100 
3 80620 Black Raisins 105 50% 100 
4 80620 Red Raisins 105 50% 100 
5 81310 Dried Apricots Nuts 30 50% 30 
6 81310 Dried Apricots 30 50% 30 
7 80420 Fig Dried 30 100% 30 
8 80250 Pistachios closed Shell 30 100% 30 
9 80250 Pistachios Open Shell 30 100% 30 
10 80250 Pistachios Shelled (Kernall) 30 100% 30 
11 80231 Walnuts Unshelled 30 50% 30 
12 80232 Walnuts shelled 30 50% 30 
13 81340 Plums Dried 30 50% 30 
14 80212 Almond Thin Shelled Rs. 65/Kg. 50% Rs. 35/Kg. 
15 80212 Almond Hard Shelled Rs. 65/Kg. 50% Rs. 35/Kg. 
16 80212 Almond Shelled Rs. 65/Kg. 50% Rs. 35/Kg. 
17 81340 Mulberries Dried 30 100% 30 
18 81340 Pine Nuts Toasted 30 100% 30 
19 80620 Raisins Golden 105 50% 100 
20 81310 Apricots Nuts, Bitter 
Unshelled 30 50% 30 
21 81310 Apricots Nuts, Bitter Shelled 30 50% 30 
22 80620 Green Raisins except Large 105 50% 100 
23 81340 Cherries Sour Dried 30 50% 30 
24 80610 Grapes fresh, All types 40 50% 30 
25 80719 Melon fresh 30 100% 30 
26 80810 Apples fresh 50 50% 50 
27 80910 Apricots fresh 30 50% 30 
28 81090 Pomegranates 30 50% 15 
29 90910 Anise Seeds 30 50% 30 
30 90940 Caraway Seeds, White, 
Black Kajak 30 50% 30 
31 120400 Linseeds 30 50% 30 
32 120740 Sesame Seeds etc. 30 50% 30 
33 121110 Liquorice Roots plants for 
Pharmacy etc. 30 50% 30 
34 121410 Alfalfa Seeds 30 50% 30 
35 130190 Asafeotida 30 100% 29.6 
36 710310 Lapis Lazuli, Ruby, Emerald 
etc.(Unworked) 30 100% 10 
37 710391 Emeralds (Otherwise 
worked) 30 100% 5 
38 710399 Lapis Lazuli, Ruby 
(Otherwise worked) 30 100% 10 
  WT/ACC/AFG/5 
 Page 31 
 
 
  Question 56 
Afghanistan increased in late 2007 its customs duti es for soft drinks and water to protect better 
its own nascent industry in this sector,  and at th e same time applied reduced customs duties for 
several raw materials that are usually import ed for Afghan industrial production.   
Could Afghanistan elaborate on its experience with these measures, notably the impact on 
trade/industrial production so far?  
Answer:  
The Government of Afghanistan has imposed a rela tively higher tariff temporarily on beverages and 
mineral water in order to support/protect its domestic  infant industry in this sector as well as help 
producers in these sectors to have greater contri bution to employment and gain competitiveness. 
There is no formal assessment of the impact of these measures on trade/industrial production in these 
sectors.  Below however are trends in producti on and import of such products.  No export was 
recorded during this period. 
Table – Import/Production Trend in Thousand US$  
(Mineral Water and non- alcoholic drinks) 
 2004 2005 2006 2007 2008 2009 
Import 12,115 24,176 28,900  19,502 18,137 11,235 
Production   9,120 12,760 13,344 15,964 
 
(c) Tariff Quotas, Tariff exemptions 
Question 57 
Annex 9 notes that imports of printed books,  brochures, leaflets, and other printed matter 
require approval from the Ministry of Information and Culture.   
− Once these materials are approved by the Minist ry of Information and Culture, are they 
all exempted from paying customs duty?; and 
− If so, does Afghanistan's tariff schedule show these goods as being duty-free?  
Answer:  
These materials are exempted from paying customs duties in accordance with Article 27 of the 2005 
Customs Law.  Note however that the proposed amendments to the 2005 Customs Law limit this 
exemption for books used for academic purpose and academic institutions. 
Afghanistan's tariff schedule does not show th ese goods as being duty-free because in practice the 
exemption was only applied on books and ma terials imported for academic purpose. 
(d) Other duties and charges, and fees and charges for services rendered 
Question 58 
Could Afghanistan provide further information on  the import levy used to support the Afghan 
Red Crescent Agency, including the amounts involved?  WT/ACC/AFG/5 
Page 32  
 
  Answer:
 
Afghanistan charges only 2 per cent (applied on  customs duty) on imported commercial goods to 
support the Afghan Red Crescent Agency.  There are no any other charges and levies on imported commercial goods to support the Afghan Red Crescent Society.   
Question 59 
The MFTR states that a "levy is imposed on all imports except food items, calculated as 
2 per cent of the CIF (Cost Insurance and Freight) value" for the benefit of the Afghan Red Crescent Agency.  Does Afghanistan apply any ot her taxes or levies on imports that are not 
applied to domestic output?  
Answer:
 
See table in the reply to Question 15 above whic h summarizes all taxes charged on imports.  These 
are not charged on domestic goods. 
Question 60 
Does Afghanistan apply any customs processing , warehousing, transit, or other fees in 
connection with importation and exportation?  
Answer:  
The ACD charges for costs of the following customs forms: 
Table – Fees for Customs Forms  
Type of Form Cost 
T-1 Form/Elm-e-Khabar Approximately US$20.00 
ACCD form Approximately US$1.00 
Exemption form approximately US$10.0 
Duty paid goods transferring form (planned) approximately US$2.00 
International Transit Form1 US$100.00 
 
Afghanistan does not currently ch arge any customs processing fee. 
The fee schedule for international transit through Afghanistan is the following:  
− US$100 for total weight equal or below 35 tons; and 
− Another US$100 for weight exceeding 35 tons. 
                                                      
1 Will be replaced by Form T-2.  The cost will be the same.  WT/ACC/AFG/5 
 Page 33 
 
 
  The fee schedule for customs storage is the following: 
Table – 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 
 
Question 61 
Please describe the role of the Chambers of Co mmerce and Industry, and the Afghan National 
Chamber of Commerce and Industry in activiti es necessary or mandato ry for the conduct of 
importation and exportation and that require fees.  For example, for the authority given to the 
Chambers in importation and exportation a nd services provided, what fees are charged?  
Answer:  
Traders must register (not join) after obtaining the Business Licence at the Afghanistan Chamber of 
Commerce and Industry (ACCI).  Registration fee is approximately US$3.  There is no other 
mandatory role for ACCI. 
(e) Quantitative import restrictions, including prohibitions and quotas 
Question 62 Please explain the "quality inspection" that is req uired for many agricultural products.  Is this 
a technical regulation?  Is it based on international standards?  May manufacturers' declarations or certificates of conformity be subs tituted for the inspection?  To what extent are 
such inspections a unified part of Afghanistan's SPS regime?  
Answer:
 
The concept of quality is not currently well define d in Afghanistan's legal framework and is often 
confused with safety and protection of health.  Th e term "quality" is often misused.  The current SPS 
and TBT legal framework is at its initial stages of development in Afghanistan.  The new SPS and 
TBT laws will draw clear distinction between these concepts. 
The following information supersedes all info rmation provided in Annex 9 of document 
WT/ACC/AFG/4 in connection with quality inspection and certification: 
Veterinary certificate for export of all animal and animal products.  This is issued by the General 
Directorate on Animal Health under MAIL.  To a la rge extent, OIE standards are used as the basis. 
Phytosanitary certificate for export of all plants and pl ant products.  This is issued by the Directorate 
for Plant Quarantine under MAIL.  To a large ex tent, IPPC standards are used as the basis. 
Quality Permit for import of non-processed agricultura l products (except live animals and live plants), 
agrochemicals, and chemical fertilizers.  This is is sued by the General Directorate of Food Security 
and Quality Control under MAIL carries out quality ex amination (mostly physical inspection) at the 
border and examines the quality certificate issued by the exporting country (mandatory requirement to WT/ACC/AFG/5 
Page 34  
 
  import) and provides quality permit.  Quality Perm it for export of all non-processed agricultural food 
products (except live animals and live plants).  Th is is issued by the General Directorate of Food 
Security and Quality Control under MAIL. To a larg e extent, Codex and ISO standards are used as the 
basis. 
Quality certificate for export of fresh fruits, dried fruits, and vegetables.  This is issued the Afghan 
Raisin, Fruits and Vegetables Promotion Association. 
All aforementioned certificates are mandatory for trade in respective products.  Although, 
international standards and guidelines of OIE, IPPC , Codex Alimentarius, and ISO are used as basis, 
their observance is done on a voluntary basis by the MAIL as the standards, guidelines, and recommendations of these organizations have not yet been formally adopted by Afghanistan.  
Afghanistan intends to intensify effort in the co ming years to achieve greater harmonization with the 
standards, guidelines, and recommendations of these international organizations.  
Afghanistan intends to start drafting a law on food safety in 2010.  Producer declarations/certificates 
will be considered for low-risk food products. 
Inspection of agricultural products is an in tegral part of Afghanistan's SPS regime 
(veterinary/phytosanitary aspects) falli ng under the jurisdiction of MAIL. 
Question 63 
Please describe the provisions of the Regulation  on Prohibited Goods for Import (Customs 
Tariff) of 2005.  
Answer:
 
The Regulation on Prohibited Goods for Import (C ustoms Tariff) of 2005 is no longer valid.  
Article 53 of the 2005 Customs law authorizes th e ACD 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 arch aeological value or the protection of industrial 
and commercial property and other state policies, to  adopt prohibitions or restrictions.  The Tariff 
Schedule of Afghanistan currently prohibits the imports of: 
− Alcoholic drinks; 
− Live pork; 
− Meat and edible offal of pork; 
− Pork fat; 
− Cotton seeds; and 
− Narcotics and illegal drugs. 
In addition, the following items are also prohibited: 
− Gypsum; anhydride and plaster;  
− Table salt and powder salt; and 
− Ammonium nitrate. 
Question 64 
Why is the importation of cottonseeds prohibited?   WT/ACC/AFG/5 
 Page 35 
 
 
  Answer:  
This measure has been in place for many years due  to historic evidence of disease in cotton seeds 
imported from Central Asian countries. 
Question 65 
Annex 9, Table 1 Database of Non-Tariff Meas ures of Islamic Republic of Afghanistan. 
Item 18 (almonds and walnuts):  Please explain why these products are prohibited.  What other 
"quantity control measures" are in place?  
Answer:  
The preferential tariff provided by India to Afgha nistan gives privileges to Afghani almonds and 
walnuts with reduced duty rates according to qual ity of goods.  Mixing Afghan dry fruits with 
imported ones restricts access to India. 
This measure has been eliminated.  The import of  almonds and walnuts is no longer prohibited.  
The re-exportation of such items  however is now prohibited. 
Question 66 
Item 19:  Please explain why liquorice root is prohibited.  
Answer:  
The same reason as above with respect to trade with India. Note that the import of liquorice is no longer prohibited. 
Question 67 
Items 26 (table salt), 27 (marble and travertine) , and 28 (gypsum; anhydride and plasters):  
What is Afghanistan's justification for prohibiting imports of these products?  
Answer:
 
These measures are designed to support local producers.  The import of marble and travertine is no longer prohibited.  The import of table salt, powder salt, gypsum, anhy dride and plasters continues to be prohibited. 
Question 68 
Item 41 (carpets and rugs of wool or fine animal  hair):  What is Afghanistan's justification for 
prohibiting imports of these products?  
Answer:
 
This prohibition is no longer in effect. WT/ACC/AFG/5 
Page 36  
 
  This measure is designed to support local producer s. Although a Letter was issued the Ministry of 
Mines, these prohibitions are not reflected in the Tariff Schedule and are not in effect. 
Question 69 
Annex 9, Table 1: The old abbreviation MAAH is  still used. It should be replaced by MAIL.  
Answer:
 
The old abbreviation MAAH is replaced by Ministry of Agriculture, Irrigation and Livestock (MAIL). 
(d) Import Licensing procedures 
Question 70 While Afghanistan reports that it has the author ity to apply import licensing requirements on 
goods, and has done so, there is no usable inform ation on Afghanistan's import licensing regime 
in this section of the MFTR. 
Could Afghanistan please provide detailed informat ion regarding the entire scope of its import 
licensing regime? How are "discr etionary import licenses, import  licensing, automatic import 
licensing, non-automatic licensing prior to authorization" applied?  
Answer:
 
As described in the reply to Question 53 above, Afghanistan applies import permits and licenses for 
special goods.  Annex 3 of document WT/ACC/1 w ill be updated to reflect the entire scope of 
Afghanistan's import licensing regime as described in the reply to Question 53 above.  It will be 
submitted in 2010. 
Question 71 
Annex 9 indicates that works of art, collecto rs' pieces and antiques (HS 97.05 and 97.06) are 
subject to import licence requirements.  What other products require an import licence?  
Answer:  
Please see the reply to Question 53 above. 
Question 72 
We request that Afghanistan respond to the Import Licensing Questionnaire with specific 
reference to the "discretionary import licenses, import licensing, automatic import licensing, 
non-automatic licensing prior to auth orization" measures it applies.  
Answer:  
As indicated above, Annex 3 of document WT/ACC/1 will be updated to reflect the entire scope of 
Afghanistan's licensing regime.  
Question 73 
Does Afghanistan intend to establish a WTO-cons istent licensing system incorporating the 
provisions of the WTO Agreement on Import Licensing Procedures?   WT/ACC/AFG/5 
 Page 37 
 
 
  Answer:  
Afghanistan intends to adopt a law on foreign tr ade policy which will reflect the provisions of the 
WTO Agreement on Import Licensing Procedures. 
Question 74 
Annex 3:  Concerning the documentation required for a Medicine Imports Licence, the 
Memorandum indicates that the process of ob taining it "differs for Afghans and for 
foreigners."   
− Could Afghanistan please elaborate on what is meant by this?  Can Afghanistan please 
explain why the process differs for Afghan s and foreigners?  Are the procedures 
explained in this document applicable to Afghans or foreigners? 
− What is the reason behind the lengthy processi ng time (2-5 months) for import licenses 
for medicine?  
Answer:  
To import pharmaceuticals, a foreigner must have business licence from the BLD at the MoCI in 
order to apply for permit from the Ministry of Public Health. 
The process/procedure at the MPH is the same for Afghans and foreigners except for permit royalty 
where Afghans must pay approximately US$800 and foreigners US$5,000. 
It takes around 20 days to obtain permit.  
Before importing a specific medicine, both the medici ne and the manufacturer of the medicine must 
register at the MPH.  This registration generally  takes 2-5 months depending on the completeness of 
submitted documents. 
Question 75 
Concerning other activities under licence: 
− Please describe the provisions of the Regulation on Prohibited and Authorised Activities 
of 7 March 2006; and 
− Do any of the prohibited activities have to do with importation or exportation of goods 
and services?  
Answer:  
The Regulation on Prohibited and Authorised Activ ities of 7 March 2006 is no longer in effect. 
Question 76 
Annex 3, B.3:  The Report indicates that when the imported medicines reach the Customs 
House in Afghanistan, an expert panel or pr ofessional representative of the Pharmacy Affairs 
Directorate takes samples of the medicines for testing.   
Could Afghanistan please provide details of the relevant regulations and standards applied to 
the sampling and testing of imported medicines,  including the sampling percentage, the items to 
be tested and the duration of the test?   WT/ACC/AFG/5 
Page 38  
 
  Could you please also describe how the procedure ensures the facilitation of medicine imports?  
Answer:
 
Based on Article 20 of the Regulation on Export  and Import of Medicines and Tools dated 
February 2007, taking of sample from every Batch or Lot number of medicines and medical devices is 
compulsory for testing. Sampling is done by a pr ofessional representative of the General Department 
of Pharmacy Affairs (GDPA).  There are different methods for sampling.  But the most used one is 
the (X) method.  For example, the professional representative of GDPA takes sample from four sides plus center of goods (X), then he/s he mixes all taken samp les and send for analysis .  The percentage is 
very low.  For example 35, 10ml (Vials) or five bottle 100ml syrup or suspension, and 
80 capsules/tablets from each batch/lot number are suffici ent.  The duration of the test is different. It 
is related to the type, compositions and dosage fo rm of medicines.  It normally takes 5-10 days. 
The aforementioned process does not hinder trade and is  in line with international best practices.  
Nonetheless, modernization of laboratories can help in reducing testing time.  Afghanistan appreciates 
any assistance from WTO members in this respect. 
(g) Other Border Measures 
Question 77 
Please provide the Working Party with a copy of  the Customs Tariff Law, with particularly 
reference to the parts concerning fees and charg es, tariffs, valuation of imports and exports, 
rules of origin, and right of appeal of government decisions.  
Answer:
 
Afghanistan does not have a Customs Tariff Law.  Such was erroneously referenced in document 
WT/ACC/AFG/4.  Afghanistan simply publishes its tariff schedule. 
The Customs Law of 4 April 2005 provides provisions on: 
− Fee and charges (Article 12).  Actual fees are published. 
− Right of appeals or taking decision of appeal (Articles 17 and 18); 
− Tariffs (Article 23); 
− Valuation of imports (Article 24) and the Re gulation on Determination of Customs Value of 
20 March 2006.  No valuation of exports is  provided for in Afghan legislation; and 
− Rules of origin (Chapter 6 - Articles 29-33). 
The English texts of the 2005 Customs Law and the 2006 Regulation on Determination of Customs 
Value are being provided to the WTO Secr etariat (see document WT/ACC/AFG/5/Add.1). 
(h) Customs Valuation 
Question 78 We note from section III of this report that there is a Regulation on the Determination of 
Customs Value of 20 March 2006.  Please provide a copy for Working Party review.   WT/ACC/AFG/5 
 Page 39 
 
 
  Answer:  
The English text of the Regulation on the Determin ation of Customs Value of 20 March 2006 is being 
provided to the WTO Secretariat to make availa ble for review by Working Party members (see 
document WT/ACC/AFG/5/Add.1). 
Question 79 
Afghanistan states that "Annex 4 provides a de tailed description of appropriate order of 
determination of customs value (customs valuation)."  This is not responsive to the request for information outlined in document WT/ACC/1. 
We request that Afghanistan respond to the Customs Valuation Check-list (G/VAL/W/1) with 
specific reference to how Afghanistan implements WTO provisions with regard to 
transparency, data confidentiality, right of appeal without penalty, establishment of a surety 
bond, enactment of the Interpretative Notes, defini tions of key words, and the right to a written 
explanation of valuation decisions.  
Answer:
 
A revised Annex 4 of document WT/ACC/1 c overing the Customs Valuation Check-list 
(G/VAL/W/1) has been submitted to the WTO Secretariat (see document WT/ACC/AFG/6). 
Question 80 
We understand that Afghanistan has received ex tensive technical assi stance on WTO matters 
from a number of sources since its applicatio n for accession was accepted by the General 
Council in 2004. 
− What if any of this technical assistance has been devoted to customs valuation issues? 
− Is Afghanistan currently drafting legislation to implement the provisions of the Customs 
Valuation Agreement, including the Interpretat ive Notes?  Please identify the proposed 
legislation and indicate Afghanistan's timeline for its implementation.  
− We would appreciate additional information from Afghanistan regarding what specific 
areas of the Agreement it needs assistance in  implementing and approximately how long 
Afghanistan thinks it will take to accomplish.  
Answer:  
The 2005 Customs Law was evaluated in February  2009 for consistency with the relevant 
WTO Agreements including CVA and ROO.  Pl ease see document WT/ACC/AFG/6 (Annex 4 of 
document WT/ACC/1 (checklist under G/VAL/W/1)).  Af ghanistan intends to prepare in 2010 further 
amendments to the Customs Law to: 
− Include the general principles of technical customs valuation rules; 
− Provide for a right to withdraw goods pending final valuation; 
− Remove limitations for rights of judicial appeal based on amount in dispute; 
− Broaden the definition of confidential information; and 
− Provide for origin binding rulings. 
The Regulation on the Determination of Cust oms Value of 20 March 2006 was also assessed in 
February 2009 for conformity with the WTO CVA Ag reement.  The Regulati ons will be amended to: WT/ACC/AFG/5 
Page 40  
 
  − Include the WTO rules for evaluating related-party transactions; 
− Specify the WTO conditions when the transaction value method cannot be used; 
− Include all of the additional cost elements th at are added to price to determine a transaction 
value (i.e., no mention of treatment royalties a nd licence fees, proceeds of subsequent sale, 
manufacturing assists); 
− Contain the WTO list of prohibited valuation methods; 
− Bring the deductive value method in line with the WTO CVA; and 
− Define "related parties" in  accordance with the WTO CVA. 
Afghanistan further intends to draft the following regulations: 
− On implementing the Interpretative Notes of the CVA; 
− On implementing the WTO Decision on the valuation of software; and 
− On implementing the WTO Decision on the treatment of interest charges. 
Afghanistan intends to immediately start this re form and in 2010.  Drafts will be prepared by 
September 2010 and will then be put through the legi slative process.  It is then expected to take 
around one year for the Draft Amendments to the 2005 Customs Law to be adopted. 
(i) Other customs formalities 
Question 81 Please clarify whether certificates of or igin are required for all shipments.  
Answer:
 
Certificates of origin are required for all shipments including import and export.  
Question 82 
Are there any criteria or requirements that must be met by those who issues the certificate of 
origin?  
Answer:  
There are no criteria or requirements that must be met by foreign bodies who issue certificate of 
origin.  Currently, Afghanistan recognizes certificates  issued by any foreign Chamber of Commerce.  
As for exports, ACD recognizes certificates of orig in issued by the Afghanistan Chamber of 
Commerce and Industry (ACCI) and those issued by  the Export Promotion Agency of Afghanistan 
(EPAA).  EPPA provides certificates of origin to e xporters who are only exporting to countries which 
provide preferences to Afghan exports. 
(j) Pre-shipment inspection 
Question 83 Does Afghanistan have any intention of implementing a pre-shipment inspection program?  
Answer:
 
Afghanistan does not have any intention to implement a pre-shipment inspection program.  WT/ACC/AFG/5 
 Page 41 
 
 
  (k) Application of internal taxes on imports 
Question 84 This section states that a "2 per cent fixed tax on the total cost (including custom duties) of the 
goods imported" is levied on the importer. 
− Is this tax also applied on domestic output?  If not, it is not an "internal tax on imports."  
− Is this tax the same as the levy of 2 per cent imposed on all imports except food items, on 
the CIF value of imports for the benefit of the Afghan Red Crescent Agency?  
Answer:
 
The 2 per cent fixed tax is app lied on (customs duty + customs valu e).  It does not apply on domestic 
output.  Note however that the 2 per cent fixed ta x can be claimed as credit in the calculation of the 
person's annual income tax assessment.  Thus, the 2 per cent fixed tax on imports does not constitute a 
violation of GATT Article III. 
This tax is not the same as the Red Crescent levy of two per cent (on customs duty) imposed on all 
imports except food items. 
Question 85 
The text states that tax paid will be allowed as a credit in the calculation of the person's annual 
income tax assessment. 
− What relevance does this have for foreign firms that have a licence to import but have 
not invested in Afghanistan? 
− Is there another way for foreign firms to recoup some of this cost?  
Answer:  
In order for foreign firms to import, they must regi ster in Afghanistan (no need to commit investment) 
and obtain a business licence.  As such, the resident entity can recoup the 2 per cent. 
Question 86 
The text goes on to state that "persons who import goods without having a business licence are 
subject to 3 per cent fixed tax on the total cost  (including customs duties) of the goods imported 
in lieu of income tax on such activities." 
Please explain how persons can import without a business licence, as outlined in the section of 
the MFTR on Registration for Import and Export.  
Answer:  
Persons who hold business licence are charged 2 per cent tax. 
Persons who import goods without busin ess licence are charged 3 per cent tax. 
Persons with investment licence (only) from AISA  are charged 2 per cent tax when importing for own 
use and operations and 3 per cent tax wh en importing for commercial purpose.   WT/ACC/AFG/5 
Page 42  
 
  Persons with investment licence from AISA and a business licence from BLD are charged 2 per cent 
tax when importing goods for own u se/operations or commercial purpose. 
Natural persons importing goods for their own consumption without any licence are charged 
3 per cent tax. 
Question 87 
These taxes on imported goods (of 2 or 3 per cent  of the import value) do not appear to be 
customs duties, other duties or charges, internal taxes applied to imports, or fees for services 
rendered.  As such, they appear to be discrimina tory and must either be eliminated or amended 
to meeting WTO provisions. 
Does Afghanistan have a plan to address these charges?  
Answer:
 
In light of the planned tax reforms, including th e introduction of VAT, Afghanistan will address these 
current charges and will ensure compliance of  tax policy with Article III of the GATT. 
Question 88 
Could Afghanistan explain how the percentage of fixed tax on imports is defined, and what the 
reasons are for the discrimination between impo rters who have a business licence and those who 
do not?  
Answer:  
Please see the reply to Question 86 above. The tax rate of 2 per cent applies if the importer is  licensed and 3 per cent applies if the importer is 
not licensed by BLD.  If the importer is licensed th en the tax paid will be allowed as a credit when 
calculating the importer's annual income tax.  It is an  advanced income tax for licensed tax payers.  If 
the importer is not licensed then they are unlikely to pay annual income tax.  In that case, the 
3 per cent tax imposed on the total cost at time of import will be a final tax.  The reason for the higher rate of tax for unlicensed importers is to encour age importers to be licensed and pay annual income 
tax.  
Question 89 Could Afghanistan provide further details on th e relation between the fixed tax and the income 
tax reduction as well as the overall aim of the measure?  
Answer:
 
Please see reply to Question 88 above. 
Question 90 
Could Afghanistan explain if such fixed taxes are levied also on like locally produced goods 
within the meaning of Article III of GATT?   WT/ACC/AFG/5 
 Page 43 
 
 
  Answer:  
The 2 per cent and 3 per cent fixed taxes applied on imports are not levied also on like locally 
produced goods within the meaning of Article III of GATT. 
(l) Rules of Origin 
Question 91 
We appreciate the information provided on rules of origin.  We look forward to reviewing the 
Law on Customs Tariffs and other relevant sub-legislation on rules of origin.  
Answer:  
Chapter 6 of the Customs Law of 4 April 2005 ad dresses rules of origin.  There are currently no 
sub-legal acts on rules of origin.  
Note that Afghanistan does not have a Law on Customs Tariffs.   
Question 92 
We would also appreciate Afghanistan's confirma tion that importers, exporters, and others 
with a justifiable cause may apply to the government for a ruling on origin of a good before trade in that good begins and that such assess ments shall remain valid for three years provided 
that the facts and conditions, including the rul es of origin, under which they have been made 
remain comparable.  These provisions are co ntained in Article 3(f) and in Annex 2, 
paragraph 3(d) of the WTO Agreement on Rules of Origin.  
Answer:
 
Advance ruling on origin does not currently in Afghanistan's legal framework.  The 2005 Customs 
Law will be amended to reflect Article 3(f) and Annex 2-paragraph 3(d) of the WTO Agreement on 
Rules of Origin. 
(m,n,o) Anti-dumping, countervai ling duty and safeguard regimes 
Question 93 The Memorandum states that Afghanistan curre ntly has no anti-dumping, countervailing duty 
and safeguard provisions.  
Does Afghanistan have any other legal authority to restrain imports for balance of payments, 
commercial, or competitive reasons, i.e., protectio n from financial imbalance, unfair trade, or 
excessive imports? 
If so, please provide the legal citation and describe the authority.  
Answer:
 
The Customs Law of 4 April 2005 provides the following definition: 
"Commercial policy measures" means the impos ition of quotas, ceilings, countervailing duties 
on subsidized foreign goods, anti-dumping duti es, or similar provisions for advancing WT/ACC/AFG/5 
Page 44  
 
  national (keshwar) commercial interests, the responsibility for implementation of which 
principally rests with the Customs. 
Article 65 of the Customs Law requires that release fo r free circulation shall be subject to application 
of commercial policy measures, completion of a ll requirements for importation of goods, and the 
collection of the customs debt. 
No entity has been designated to implement this provision. 
Question 94 
We seek a commitment that Afghanistan will no t apply anti-dumping, countervailing duty and 
safeguard measures without first notifying to th e WTO all legislation covering such measures, 
consistent with the WTO Agreements.  
Answer:
 
Afghanistan intends to develop WTO-consistent le gislation on anti-dumping, countervailing duty and 
safeguard measures and notify to the WTO.  These  measures will be applied in accordance with the 
respective WTO Agreements. 
Question 95 
We seek an additional commitment that any existi ng or future authority to restrain imports will 
be used in a WTO-compatible manner.  
Answer:  
Afghanistan commits that any existing or future au thority to restrain imports will be used in a 
WTO-compatible manner. 
2. Export Regulation 
(a) Registration requirements for engaging in importing 
Question 96 Are the procedures for obtaining a business licence to export the same as those for a licence to 
import?  
Answer:
 
The procedures are the same for obtaining a business licence to export or import.  
(b) Customs tariff nomenclature, types of duti es, duty rates, weighted average of rates 
Question 97 Afghanistan stated in this section that customs duties are not imposed on exported goods 
regardless of their type.  But in the TRIMs section of the MFTR, it states that "a Registered Enterprise shall be exempt from export duti es and export taxes on products that it 
manufactures or assembles in Afghanistan to the extent permitted under the Customs Law.  WT/ACC/AFG/5 
 Page 45 
 
 
  − Please clarify if Afghanistan has export duties or taxes. 
− If so, could Afghanistan please explain what types of export duties or taxes it has.  
Answer:  
Afghanistan has export duties and export taxes on iron ores and concentrates, including roasted iron 
pyrites (HS 26.01).   
The Export taxes on 26.01 are equal to 2 per cent of value of goods. 
There are export duties on unprocessed marble. 
The export duties are the same rates as import duties for 26.01.  Please see table below: 
Table – Current Export Duties  
Heading HS Code Description Rate 
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% 
 
There is re-export tax of 2 per cent. 
(c) Quantitative export restrictions, including  prohibitions, quotas and licensing systems 
Question 98 
In the section on Import Regulation, Afghanista n states that it prohibits the importation of 
narcotics and illegal drugs.  Please confirm that si milar export restrictions are also applied.  
Answer:  
Afghanistan confirms that the export of narcotics and illegal drugs is prohibited. 
(d) Export licensing procedures 
Question 99 
Afghanistan states that Article 54 of its Environment Law provides for restrictions on "trade in 
specimens of species listed in the appendices I, II and III of the Convention on International 
Trade in Endangered Species of Wild Fauna and Flora (CITES)" and that the "State shall 
confiscate any specimens, containers, equipments or vehicles involved in international trade of 
species listed in appendix CITES." 
− It is likely that these provisions will re quire licensing for enforcement.  Does 
Afghanistan have licensing requirement for such exports, e.g., endangered species?  
− For other such sensitive goods, e.g. armaments, etc.?  If so, what products are affected?  WT/ACC/AFG/5 
Page 46  
 
  Answer:
 
The table below list goods that require import pe rmit from the National Environmental Protection 
Agency (NEPA) of Afghanistan: 
Table – Goods Requiring Import Permit from NEPA  
No. HS Code Chemical Name Formula 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 
 
Please see in addition the reply to Question 53 above. 
Items in the table below are prohibited from being exported from Afghanistan. 
Table – Prohibited Exports  
No Evaluation Year Scientific Name Classification (IUCN) 
Mammals 
1 2008 Acinonyx jubatus 1 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)  WT/ACC/AFG/5 
 Page 47 
 
 
  No Evaluation Year Scientific Name Classification (IUCN) 
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 cris pus 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) 
 
Question 100 
In the section of the MFTR on TRIMs, Afghanistan reports that a Registered Enterprise needs 
an export licence for exports exempted from ex port duties and export taxes, but such licence 
shall be granted automatically upon submission of  such documentation as is required by law.  
Are there other export licensing requirements?  
Answer:  
This export licence has never been applied. Afghanistan does not have any export duties or export taxes except (i) for taxes iron ores and 
concentrates, including roasted iron pyrites (HS 26. 01) and (ii) export duties on unprocessed marble. 
(f) Export financing, subsidy and promotion policies 
Question 101 Does Afghanistan provide any export credit, financ ing or insurance, or any export credits?  WT/ACC/AFG/5 
Page 48  
 
  Answer:
 
Presently, there are no government sponsored schem es that promote expor ts through the use of 
subsidies.  
(g) Export performance requirements 
Question 102 
Does Afghanistan offer any reduction in direct or indirect taxation based on export 
performance?  
Answer:  
Afghanistan does not offer any reduction in direct or indirect taxation based on export performance. 
3. Internal policies affecting foreign trade in goods 
(a) Industrial Policy, including export subsidies 
Question 103 Afghanistan has indicated that the establishment of Industrial Parks is an important factor in 
attracting investment to Afghanistan.  Long-term  objectives are to provide investors with land, 
energy, water and road access in a timely and transparent manner by cr eating industrial parks 
throughout the country.   
Please indicate the criteria that must be met to establish in the Industrial Parks.  What Ministry 
is responsible for evaluating applicatio ns for establishment in the Parks?   
Answer:
 
Currently, MoCI evaluates applications for establishmen t in the old parks and AISA in the new parks.  
The draft criteria for allotment in industrial pa rks has been prepared and presented to the High 
Commission on Investment.  The Draft is expected to  be approved soon.  The draft criteria include the 
following: 
− The company should have all necessary documents including licence from AISA; 
− Previous experience in the relevant industry; 
− Previous experience in business; 
− Provision of business plan of the company; and 
− Amount of investment. 
(b) Technical regulations and standards 
Question 104 Does Afghanistan rely on internationa l standards for its TBT requirements?   WT/ACC/AFG/5 
 Page 49 
 
 
  Answer:  
Afghanistan relies on international standards for its  TBT requirements.  Afghanistan is currently a 
Correspondent Member of ISO and an Affiliate Member of IEC.  
As of date, Afghanistan has adopted three nationa l standards dealing resp ectively with gasoline, 
diesel, and kerosene.  These are based on Americ an Society for Testing and Materials (ASTM) 
standards.   
Question 105 
Does ANSA work with the Ministry of Agriculture on developing food safety standards?  Is the 
Ministry of Agriculture committed  to the standard setting by ANSA?  How will the two agencies 
work together to reach its goals?  
Answer:  
ANSA is not presently involved in setting any food safety standards.  These are set by the Ministry of 
Agriculture (General Directorate of Animal Hea lth and Directorate for Plant Quarantine) and the 
Ministry of Public Health (processed food and medicine)  
MAIL is however a member of the technical committee established by ANSA for developing food 
quality standards, cosmetics, medicines, and medi cal equipment.  The General Directorate of Food 
Security and Quality Control under MAIL is comm itted to the food quality standards set by ANSA.   
Question 106 
Would the Ministry of Agriculture also atte nd these international organization meetings?  
Answer:  
The MAIL does not attend the ISO meetings with  ANSA.  MAIL however participates in some 
meetings of OIE as a Member and, as observer, in some IPPC meetings. 
Question 107 
The MFTR states that "A draft law of Standard s Law is being prepared to be submitted for 
approval by the Parliament and promulgated by the President in the coming year." 
Please provide information on the status of development of that law and any others addressing 
standards, technical regulations, and conformity assessment procedures.  
Answer:  
The Draft Law on Standards has been prepared and is currently at the Council of Ministers.  There are 
no other draft legislation at this stage related to  standards, technical re gulations, and conformity 
assessment procedures.   
Question 108 
Please identify the relevant publications for info rmation on proposed standards and technical 
regulations.  WT/ACC/AFG/5 
Page 50  
 
  Answer:
 
In the past, drafts were directly distributed to re levant parties for commenting.  ANSA will be issuing 
a new magazine (National Standards Magazine) a nd establishing a website.  In the future, draft 
standards will be published in the new magazine  and uploaded to ANSA website for commenting by 
interested parties. 
Question 109 Has Afghanistan established its enquiry point?  If  so, please identify its location and other 
standard contact information.  
Answer:
 
A TBT Enquiry Point has not been formally established. However, enquiries regarding Afghanistan 
standards can be addressed to ANSA at the following: 
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 No website has been est ablished yet at ANSA. 
Question 110 
Please confirm that any application of standa rds, technical regulations, or conformity 
assessment procedures will be on a non-discri minatory basis on imported goods and that 
Afghanistan is prepared to establish its TBT e nquiry point prior to accession to the WTO.  
Answer:
 
Afghanistan confirms that any application of st andards, technical regulations, or conformity 
assessment procedures will be on a non-discrimin atory basis on imported goods.  Afghanistan is 
prepared to formally establish its TBT enquiry point prior to accession to the WTO. 
(c) Sanitary and phytosanitary measures 
Question 111 We appreciate the efforts that Afghanistan is taking to update and modernize its SPS regime.  
We look forward to being able to review the dr aft legislation and SPS measures that Ministry of 
Agriculture, Irrigation and Livestock, the Minist ry of Public Health and ANSA are developing. 
Afghanistan states that it intends to join  Codex Alimentarius (CODEX) and the IPPC. 
We understand that Afghanistan joined Codex in 2005, and is already a member of the OIE, 
even though these events are not described.  Is  this the case?  Please confirm the dates of 
membership.  Please describe the status of plans vis-à-vis  the IPPC.   WT/ACC/AFG/5 
 Page 51 
 
 
  Answer:  
Afghanistan has been a member of Codex Alimentarius since September 2005. Afghanistan has been a member of OIE since 1988. Afghanistan intends to seek membership in IPPC in 2010. 
Question 112 
Are Afghanistan's SPS measures based on in ternational standards, guidelines, and 
recommendations (OIE, CODEX, IPPC)?  If not, could Afghanistan please identify which SPS measures are not based on international st andards, guidelines, and recommendations?  
Answer:
 
Many of Afghanistan's recent SPS measures are based  on international standards, guidelines, and 
recommendations (OIE and IPPC).  Limite d ones are based on Codex Alimentarius. 
Afghanistan will be conducting an assessment to iden tify those measures that are not in line with the 
standards, guidelines, and recommendations and develop an action plan for harmonization. 
Question 113 
Are these measures implemented and enforced throughout the country?  
Answer:  
SPS measures are implemented and enforced throughout  the country.  For example, the Directorate 
for Plant Quarantine has nine offici al quarantine stations in Afghanistan servicing all regions of the 
country.  The actions of quarantine inspectors are based on quarantine legislation in force at the 
national level which provides that all plant products  which are exported or imported must be free of 
plant pest and disease.  Similarly, the General Direct orate of Animal health has nine regional stations 
which observe national legislation to prevent animal disease. 
However, border control for the movement of an imals to and from Pakistan and the import of 
products of animal origin is almost impossible to  enforce due to poor security situation in many 
border areas.  Informal trade in live sheep is al so taking place in the northwest and southwest. 
Question 114 
This section states that the Ministry of Agricult ure, Irrigation and Livestock; the Ministry of 
Public Health, and ANSA work together to develop new SPS measures. 
− Please outline the roles and operations of each of the Ministries involved in the 
development, implementation, and enfo rcement of veterinary, sanitary, and 
phytosanitary measures. 
− Are the Ministry of Agriculture (or the Mini stry of Health) committed to the standard 
setting by ANSA?  How do these agencies work with ANSA to reach their goals? 
− Which ministry is responsible for ensuring that SPS measures are based on a science-
based risk assessment? 
− Which ministry is responsible for inspection and testing in the area of SPS measures?  WT/ACC/AFG/5 
Page 52  
 
  Answer:
 
MAIL is in charge of developing, implementing and enforcing veterinary and phytosanitary measures. 
It is responsible for (i) ensuring that veterinary  and phytosanitary measures are based on a science-
based risk assessment and (ii) conducting insp ection and testing relate d to veterinary and 
phytosanitary measures. 
The Ministry of Public Health is in charge of  developing, implementing, and enforcing sanitary 
measures.  It is responsible for (i) ensuring that  sanitary measures are based  on a science-based risk 
assessment and (ii) conducting inspection a nd testing related to sanitary measures. 
ANSA is responsible for setting food quality standards.   The Ministry of Agriculture and the Ministry 
of Public Health participates in the technical committees established by ANSA for developing food 
quality standards. 
Question 115 
We appreciate that Afghanistan is in the pr ocess of updating its SPS regime, beginning with 
modernizing the SPS regulations.   
What is Afghanistan's time line to update and modernize its SPS regulations?  
Answer:  
The objective in 2010 is to complete drafting of the three SPS framework laws covering respectively, 
food safety, animal health, and plant health: 
− A draft Law on Plant Protection and Quarantine has been prepared by the Ministry of 
Agriculture. It is currently undergoing internal review within the Ministry; 
− A Draft law on Animal Health and Veterinary Se rvices is being prepared by the Ministry of 
Agriculture; and 
− Drafting of a law on food safety will be initiated during the second quarter of 2010. 
In addition, Afghanistan intends to  develop in 2010 a prioritized plan for harmonization with priority 
standards, guidelines, and recommendations of Code x Alimentarius and based on direction of OIE, 
and IPPC. 
Question 116 
Could Afghanistan explain what its transpar ency requirements are in place e.g., does 
Afghanistan publish draft regulations, solicit comm ents from interested parties, and take those 
comments into account?  
Answer:  
Afghanistan does not currently publish draft legislati on for commenting.  Draft legislation is however 
made available directly to interested parties who are also invited to participate in legal working 
groups.  
Question 117 Will Afghanistan look to the standards of Codex, OIE, and IPPC as it develops its 
SPS regulations?   WT/ACC/AFG/5 
 Page 53 
 
 
  Answer:  
Afghanistan will use as the basis for its SPS re gulations the standards, recommendations, and 
guidelines of Codex, OIE, and IPPC.  In cases wh ere Afghanistan needs higher protection of human, 
animal or plant health and life, risk assessment  based on science will be conducted in accordance with 
the principles of the SPS Agreement and guidelines of the Codex, OIE and IPPC. 
Question 118 Afghan Customs requires certificates confirming the quality and origin of imports.  What 
standards are used to determine quality?  Are the certificates required separate from the licence to import?  What is the process for obtaining the certificates?  
Answer:
 
The certificate of origin is required for all imports.  Afghanistan recognizes certificates of origin 
issued by any foreign Chamber of Commerce. 
For the import of non-processed agricultural pr oducts (except live animals and live plants), 
agrochemicals, and chemical fertili zers, the General Directorate of Food Security and Quality Control 
under MAIL carries out quality examination (mostly ph ysical inspection) at the border and examines 
the quality certificate issued by the exporting coun try (mandatory requirement to import) and provides 
quality permit. 
For the import processed food products and drugs, th e Ministry of Public Health carries out the 
quality examination at the clearance point.  Sample s are taken for laboratory testing and then quality 
(safety) certificate is issued.  For pharmaceuticals,  the following standards are used as basis:  British 
Pharmacopia, US Pharmacopia, European Pharmacopi a.  Codex Alimentarius is used as the basis.  
For the import of petroleum product and iron/steel products, ANSA carries out laboratory analysis at 
the entry point and provides quality certificate.   ASTM standards are used as the basis. 
These certificates are required separately from the licence/permit to import (see reply to Question 53 
above). 
In addition, the following certificates are required for import: 
Before importing animal and animal products, impor ters are required to obt ain Conditions Statement 
signed by the General Directorate of Animal Health  under MAIL.  For clearance at entry points, the 
importer must show the Conditions Statement and provi de the certificate of origin.  For all animal 
products, samples are taken and sent for testing at laboratories.  After laboratory results are received (1-2 days), a permission is provided by the General Directorate of Animal Health to allow circulation 
of animal products.  For live animals, importer mu st provide veterinary certificate issued at the 
country of exportation. OIE standards are used as basis.  
For importing plant and plant products, there is no  need for Conditions Statement of certificate of 
origin.  The importer must simply provide phytosanitary certificate issued at the country of exportation.  For all plant and plant products, sample s are taken for testing by the Directorate for Plant 
Quarantine.  Test results are usually provided in 1- 2 days.  Then permission is provided for circulation 
of goods. 
For the import of processed food products, interna tional sanitary certificate is required.  Testing is 
required before clearance of goods and, as a resu lt, the quality (safety) certificate is issued. WT/ACC/AFG/5 
Page 54  
 
  Finally, the Ministry of Public Health conducts microbiological/bacter iological testing for imported of 
bottled water. 
Question 119 
Table 4, Annex 2:  There are no laws on food sa fety or on animal and plant health listed.   
Please identify the laws upon which Afghanis tan's SPS regime is based currently and provide 
copies of these laws and other relev ant regulations and decisions. 
We would welcome the opportunity to review dr aft legislation as it becomes available.  
Answer:
 
There is currently no law on food safety.  Afghanist an intends to start preparing in 2010 a Draft Law 
on Food Safety.  
Plant health is currently regulated under: 
− Law on Plant Quarantine as of 3 October 1996; and 
− Regulations on Pesticides in Afghanistan of 3 October 1996.  
These will be invalid once the Draft Law on Pl ant Protection and Quarantine gets adopted. 
Animal health is currently regulated by the Law on Veterinary Services of 3 October 2000.  This will 
become invalid once the Draft Law on Animal He alth and Veterinary Services gets adopted. 
Afghanistan intends to provide, once finalized , draft SPS laws to Working Party members. 
Question 120 Has Afghanistan established its enquiry point?  If  so, please identify its location and other 
standard contact information.  
Answer:
 
Afghanistan has not formally established its SPS Enquiry Point.  In the meantime, all enquiries regarding SPS meas ures (animal health and plant health) can 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 
Currently, there is no website providing information regarding Afghanistan's health and plant health 
measures.   WT/ACC/AFG/5 
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  As for sanitary measures, enquiries in the mean time can 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 
Currently, there is no website providing informati on regarding Afghanistan's sanitary and food safety 
measures. 
Question 121 Please confirm that any application of veterina ry, sanitary, or phytosa nitary requirements to 
imports will be on a nondiscriminatory basis and that Afghanistan is prepared to establish its 
SPS enquiry point prior to accession to the WTO.  
Answer:
 
Afghanistan confirms that any application of vete rinary, sanitary, or phytosanitary requirements to 
imports will be in line with the WTO SPS Agreement and that Afghanistan is prepared to establish a 
single SPS enquiry point prior to accession to the WTO. 
Question 122 
Does Afghan customs recognize competent auth orities in the exporting Member to provide 
certificates confirming the quality and origin of imported goods before clearing?  
Answer:  
The Customs recognizes Chambers of Commerce as co mpetent authorities in the exporting country to 
provide certificates of origin. 
Certificates of quality issued by other countries are recognized the General Directorate of Food 
Security and Quality Control under MAIL 
ANSA does not currently recognize quality certificates issued by other countries. 
The Ministry of Health does not currently recognize quality certificates issued by other countries. 
Question 123 
By what date does Afghanistan expect to have updated its SPS regulations?  WT/ACC/AFG/5 
Page 56  
 
  Answer:
 
The objective in 2010 is to complete drafting of the three SPS framework laws covering respectively, 
food safety, animal health, and plant health: 
− A draft Law on Plant Protection and Quarantine has been prepared by the Ministry of 
Agriculture.  It is currently undergoing internal review within the Ministry. 
− A Draft law on Animal Health and Veterinary Se rvices is being prepared by the Ministry of 
Agriculture. 
− Drafting of a law on food safety will be initiated during the second quarter of 2010. 
Question 124 
Could Afghanistan clarify the respective roles of  MAIL and ANSA in the area of sanitary and 
phytosanitary measures?  
Answer:  
ANSA does not have any role in the area of sanitary and phytosanitary measures.  
MAIL is responsible for veterinary/animal hea lth and phytosanitary/plant health measures. 
The Ministry of Public Health is responsible for sanitary measures. 
(f) Free zones/special economic zones 
(g) Free economic zones Question 125 
With regard to the Reconstruction Opportuni ty Zones program, could Afghanistan provide 
additional information as to what laws or re gulations will govern any government support that 
might be provided to companies that locate in those zones?  
Answer:
 
Afghanistan will adopt special legislation in case any government support will be provided for 
companies that locate in the R econstruction Opportunity Zones. 
(l) Government Procurement Practices 
Question 126 Please provide information on Afghanistan's procurement regime as laid out in the 
October 2005 Procurement Law.  In doing so, please cover the following questions: 
− May Afghan government offices and agencies pr ocure directly from foreign exporters of 
goods and services? 
− Are there any restrictions or "buy Afghan" requirements, e.g., price preferences, 
quotas, or bans? 
− Does Afghanistan distinguish between procurement of goods for government 
consumption and purchases for state needs that  may ultimately compete in the private  WT/ACC/AFG/5 
 Page 57 
 
 
  market?  Are purchases and sales of state-owned enterprises considered government 
procurement, e.g., covered by this law?  
Answer:  
The Public Procurement Law of 2005 (PPL) does not  prevent Afgan government offices and agencies 
procuring from foreign exporters of  goods and services, as far as th e provisions of PPL is followed in 
such Procurement.  
Article 7 of PPL provides that procuring entities ar e obliged to procure goods, works or services 
produced [furnished] domestically in accordance with  the bidding documents, provided that the price 
of the domestic procurement is not higher than th e imported procurement by a percentage set in the 
procedures (Article 7(1)).  In comparing the bids of bidders who do not have a resident representative 
in Afghanistan, or who are otherwise not subject state Afghanistan taxes, with the bids of bidders that 
do have a resident representative or are otherwise subject to Afghanistan taxes, the bid prices of the first category shall be increased by the percentage set in the procedure for the purpose of evaluation 
(Article 7(2)). 
The Procurement law does not refer to a distinctio n between procurement of goods for government 
consumption and purchases for state needs that ma y ultimately compete in the private market.  
State-owned enterprises, and mixed companies in  which the share of State ownership exceeds 
25 per cent.   
Question 127 
It is stated that government procurement is  governed by the Procurement Law enacted in 
October 2005.  What is the status of this legisl ation?  Have any accompanying regulations been 
issued since 2005?  If yes, on what matters?  
Answer:
 
According to the PPL of 2005, the PPU was establishe d in the Ministry of Finance in August 2006.  
The PPU issued Rules of Procedures in 2007 an d based on the same, issued standard bidding 
documents for goods, 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 dated 18 January 2009. 
To align with these amendments, the PPU: 1. Revised and reissued: 
− the Rules of Procedures for Public Procurement; 
− Standard Bidding Documents for Goods; and 
− Standard Request for Quotations for goods and works. 
2. Prepared and issued the following: 
− Standard Bidding Documents for sma ll works with all 12 standard forms 
− Standard Request for Proposals with all its standard forms; WT/ACC/AFG/5 
Page 58  
 
  − Manual of Procedures for Appeal and Review; and 
− Thirty guidance circulars to line ministries. 
All the above mentioned documents are ava ilable and downloadable on PPU website at: 
www.ppu.gov.af. 
Question 128 
Are there any administrative levels below the Provinces that are also bound to adhere to the 
Procurement Law?  
Answer:
 
All Government entities, including administrative le vels below the provinces, are required to procure 
goods, work and services in accordance with the procur ement law and its relevant regulations.    
Question 129 
What types of procurement are covered by th e Procurement Law and what are the applied 
thresholds?  
Answer:  
All types of public procurement i.e. procurement of goods, works and services are covered by the 
procurement law (including procurement of infrast ructure and award of concessions) and there are 
thresholds prescribed for the Award Authority u nder procurement law.  The Award Authority in 
approving contracts has the following author ity according to Article 91 for the Law:  
Table - Procurement Methods Threshold Limits  
Approval Authority of Minister 
Goods Works Services Procurement Method 
Af 
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  Approximatey 
US$800,000 
Request for Quotation Approximately 
US$10,000 Approximately 
US$10,000 Approximately 
US$10,000 
 
The Award Authority may partially or in full de legates the powers set up above to secondary units, 
Deputy Ministers and Directors of the relevant depa rtments.  Where the monetary value of supply and 
procurement of Goods, Works and Services exc eeds the thresholds limits as given above, the  WT/ACC/AFG/5 
 Page 59 
 
 
  contracts are approved by the Special Procurement Commission consisting of Minister of Finance as 
Chairman of the Commission and Minister of Justice and Minister of Economy as members. 
Question 130 
Are there any specific provisions as regards review body and remedies?  
Answer:  
Yes.  There are specific provisions under Artic le 71 and 72 of the Procurement Law, 2008 (as 
amended in January 2009) regard ing review body and remedies.  
As per Article 71, a bidder that has suffered damage  due to the violation of the law is entitled to seek 
review by submitting a written application for review identifying the specific decision, act, or failure 
to act alleged to violate the procurement legislation. 
As per Article 72, the PPU (Procurement Policy Unit) shall establish an administrative review 
committee composed of experts for the purposes of conducting administrative review of applications 
and related appeals and the detaile d appeal and review procedures shall be as prescribed by the PPU.  
The Appeal and Review manual has been issued officially and Appeal and Review Committee is 
active and in place. 
Question 131 Are there any specific provisions as regards the treatment of foreign contractors?  
Answer:
 
All tenders are open for all eligible bidders, both foreign and domestic.  Under Article 25 of Public 
Procurement Law an international tendering sh all be held in the following conditions: 
(1) the goods, works or services are not available on competitive price terms from at least three 
bidders in Afghanistan; or 
(2) a national tendering proceeding has fa iled to identify an acceptable bidder. 
International tendering shall also be held as per threshold set in Article 91 (please see reply to 
Question 129 above). 
In these cases, the international tendering shall be p ublished in English langua ge in media for wider 
international circulation. 
Question 132 
Are there any specific provisions as regards particular procurement provisions in favour of 
certain types of contracts, sectors etc.?  
Answer:  
The PPL contains the following provisions wher e favourable treatment may be provided: 
− Article 7 provides margin of price preference in favour of domestic sources; 
− Article 8 encourages policies and practices aimed at  fostering participation of small domestic 
enterprises and individuals in procurement; WT/ACC/AFG/5 
Page 60  
 
  − Article 9 is aimed at promoting protection of environment in public procurement; and 
− Article 25 provides the conditions under whic h international tendering may be held. 
(m) Trade in Transit 
Question 133 Does Afghanistan restrict trade in transit for any co untry or type of good, e.g., pork or alcohol?  
Are there escort fees?  What sort of record keeping is applied?  
Answer:
 
Afghanistan prohibits trade in transit fo r prohibited goods (e.g. pork, alcohol). 
Afghanistan does not restrict trade in transit for any country. Generally, no escort is required.  In 
special cases (e.g. goods with high import duty in Af ghanistan and transported in open cargo).  There 
are no escort fees. 
Record keeping is now being conducted through th e ASYCUDA system which is intended to cover all 
entry/exit points in Afghanistan. 
Question 134 
Please outline the provisions of the ECO Transit Transport Framework Agreement (TTFA) of 
May 1998.  It was signed in Almaty.  Is Kazakhstan a member?  
Answer:  
Although Afghanistan is a signatory to ECO Trans it Transport Framework Agreement (TTFA), it is 
pending ratification by Afghan Parliament.  All EC O members, except Uzbekistan are signatories of 
TTFA.      
The objectives of TTFA are (i) facilitation of movement  of goods and passengers to ensure the safety 
of goods and passengers and to avoid unnecessary dela ys during the transit traffic; (ii) cooperation 
and coordination of the efforts to avoid the in cidence of customs frauds and tax evasion; and 
(iii) harmonization of necessary administrative affairs dealing with transit traffic.   
With respect to customs issues, TTFA provides for ex emption of traffic in transit by motor vehicles 
from customs duties, taxes and other charges.  Cont racting parties shall establish a Customs Transit 
System for the cargo and means of transport in acc ordance with the relevant International Customs 
Conventions.  The Contracting Parties, which ar e also parties to the Customs Convention on the 
International Transportation of Go ods under cover of TIR Conventi on 1975 will apply the provisions 
of that Convention amongst themselves.  The Contr acting Parties which are not yet parties to that 
Convention will consider the possibility of accedi ng to this Convention.  Annex VII contains 
measures to simplify the Customs control means of transport, goods, luggage and passengers passing 
through their territories. 
Road related provisions of TTFA provide for: 
− Exemption of motor vehicles from customs duties, taxes and other charges; 
− Designation and Technical Characteristics of Roads; 
− Adequate Frontier Facilities: (terminals, ware housing facilities, interchange stations, ports, 
coordinated working hours at frontier posts, etc.);  WT/ACC/AFG/5 
 Page 61 
 
 
  − Safety of Transit Traffic; 
− Granting permission to transport companies to establish offices; 
− Multiple Entry and Transit Visa for one year with a right of staying for 15 days; 
− Enforcing international road traffic regulations;  
− Removal of limitations and quota in i ssuance of road transport permits; 
− Allowing transport means of other Contracting Party to remain and provide transit services on 
its territory, excluding transport services in internal transport; 
− Application of the Technical Requirements of Vehicles, such as maximum axle loads  and 
dimensions; 
− Mutual Recognition of Driving Licenses and Certificates of Road Worthiness which 
correspond to the Convention on Road Traffic, 1968; 
− Insurance of motor vehicles to cover third part y liability incurred in the course of the transit 
traffic; and 
− Application of rules of carriage of goods, passengers and luggage by road. 
TTFA railway transport related provisions include:  
− Adoption of prescribed railway transit routes; 
− Minimum characteristics of prescribed railway transit routes; 
− Safe and expeditious clearance of Transit Traffic and establishment of Offices; 
− Quality of transit services on railway lines at interchange stations designated by Agreement; 
− Designation of border stations; 
− Formulation of Rules of Use of Wagons keeping in view the framework of the Organization 
for cooperation between Railways, OSJD, RIV, RIC and PPW; and 
− Formulation of rules and procedures for inte rnational rail passenger and freight traffic 
keeping in view the provisions of the Ag reement on International Carriage of Passenger 
(SMPO) as well as the Agreement on Internati onal Carriage of Goods (SMGS), COTIF/CIM, 
CIV and within the framework of OSJD and UIC. 
TTFA maritime transportation provisions relate to:   
− Free and open transit traffic for vessels and crew in inland waterway; 
− Prescription of inland water transit routes on Caspian Sea and on Rivers and Canals; 
− Provision of adequate and non-discriminatory navigation aids and necessary port facilities; 
and 
− Clearance of Ship papers a nd providing the document of the vessels based on the Facilitative 
Convention on International Maritime Traffic. 
TTFA contains eight annexes described below: 
− Annex I - Maps and Prescribed Road, Railway  and Inland Waterway Transit Routes Across 
Territories of the Contracting Parties; 
− Annex II - Minimum technical characteristics of  roads to be used by transit traffic; 
− Annex III - Minimum technical characteristics of  railway transport to be used by transit 
traffic; 
− Annex IV - Technical requirements of road vehicles; 
− Annex V - Motor vehicle third party insurance; 
− Annex VI - Rules of carriage by road transport; 
− Annex VII - Customs Control; and 
− Annex VIII - Terms of reference of the Tr ansit Transport Coordination Council.   WT/ACC/AFG/5 
Page 62  
 
  Question 135 
Afghanistan states that it has signed transit ag reements with several regional trading partners, 
including Pakistan, Iran, Uzbekistan, and Tajikistan and that negotiations to update the one with Pakistan are currently underway.  
− Please outline the provisions of such agreements. 
− If no such agreement exits, how is transit of trade to and from a country handled?   
Answer:
 
Afghanistan has signed transit agreements with Ir an, Pakistan, Uzbekistan, Tajikistan, Turkey, and 
Turkmenistan.  A new transit trade agreement is being negotiated with Pakistan to replace the 1965 
agreement. 
− Agreement on International Road Transporta tion of Goods and Pas sengers Between the 
Transitional Government of Islamic Republic of  Afghanistan and the Government of Islamic 
Republic of Iran 5 January 2003. 
All goods of the contracting parties shall enjoy the right  of freedom of transit within territory of both 
countries with no restrictions.  The temporary entrance of vehicles to the territory of another contracting party shall be exempt from entry tax es and duties and in accordance with national laws 
and regulations of relate d contracting party and no import prohib ition and restrictions shall also be 
applied. National treatment is granted with respect to fees and charges for usage of bridges, tunnels, 
ports, and roads.  Each contracting party is co mmitted not to limit the conditions of weight and 
dimensions of registered vehicles in the territory of  other contracting party in comparison to vehicles 
registered in its own territory.  Each contracting party may issue a special licence for vehicles that due to weight, dimensions or load are not allowed to travel on roads 
− Agreement Between the Government of the Ki ngdom of Afghanistan and the Government of 
the Islamic Republic of Pakistan for Regulation of Traffic Transit of 1965 (ATTA) 
Parties granted to each other the freedom of transi t to and from their territo ries. No discrimination 
shall be made based on the flag of vessels, the place of  origin, departure in entry exit or destination or 
any other circumstances relating to the above, ownership of goods, vessels or other means of 
transport.  Peshawar – Turkham and Ghaman – Spin  Boldak and vice versa were identified as transit 
routes. Other routes maybe agreed between the parti es.  No customs duties, taxes or charges of any 
kind whether national, provincial or  municipal regardless of their names and purposes, shall be levied 
on traffic in transit, except charges for transporta tion or those commensurate with the administrative 
expenses entailed by traffic in transit or with the cost o rendered.  Under ATTA, Pakistan provides for 
Afghan transit area in Karachi port where goods for tr ansit to and from Afghanistan can be stored. 
− Agreement on cooperation in the field of tran sit and transport between Uzbekistan and 
Afghanistan signed 29 August 2004. 
Parties grant carriers free transit treatment for land and air transport communications in accordance 
with their national legislation.  Goods in trans it shall be exempted from customs duties and other 
charges.  Parties also agreed to take measures to ensure the security of passengers, crew, maintenance 
personnel and vehicles, goods, contai ners, aircraft.  Transit of goods and vehicles through border 
customs shall be carried out without customs insp ection, except for cases wh en there are sufficient 
basis to suspect, that the objects are forbidden.  Parties shall present to each other the list of the 
commodities, which according to domestic laws and regulations, are banne d from being imported, 
exported and transited through the territories of their respective states.   WT/ACC/AFG/5 
 Page 63 
 
 
  − Agreement between Government of Islamic Re public of Afghanistan and Government of 
Republic of Tajikistan on Transportation,  Transit, load and passengers 2005  
Compliance with international transportation conventi ons and treaties of the international transit of 
goods (cargo) and vehicles from Contracting par ties' territory is accepted as complying with 
conditions of this agreement.  To implement the Agreement, parties designated the Ministry of 
Transportation of Tajikistan and Ministry of Comme rce of Afghanistan.  Parties are to hold their 
annual meeting in Kabul and Dush anbe on an alternate basis.  Parties also committed to take 
necessary measures for improvement of roads and highways for transportation and transit of goods 
and passengers from each other's territory and to maintain services and security centres for 
transportation and transit of goods and passengers. 
− International Road Transport Agreement Between  the Government of the Islamic Republic of 
Afghanistan and the Government of the Repub lic of Turkey.  Signed 27 April 2005 Ankara. 
Either Contracting Party shall not levy any import or export taxes or charges (such as customs duties) 
on vehicles of the other Contracting Party, which are in transit in its territory other than: 
(a) The charges for using road network infrastructure (road and bridge tolls); 
(b) The charges to meet the expenses relating to  the maintenance, protection and administration 
of roads and transport; and 
(c) Charges, if weight, dimensions or load of  the vehicle exceed the prescribed limits in the 
national legislation of the Contracting Party. 
The authorized carriage in transit through the terr itories of the Contracting Parties may be exempted 
on a reciprocal basis from the charges stipulated in paragraph (b) above.  Goods Transport between 
and transit through the Contracting Parties will not requi re permit.  Fuel in the standard fuel tanks of 
vehicles shall be exempt from customs duties and all other taxes and duties. 
− Transit and Transport Agreement Between the Government of Islamic Republic of 
Afghanistan and the Government of Turkmenistan signed 5 July 2007. 
The Agreement applies to transit of goods and passenge rs by rail and road vehicles.  Parties will apply 
fees, charges and taxes on transit goods according to their domestic le gislation.  It was agreed that 
Parties will work through joint Afghan-Turkmen Co mmission to implement the Agreement.  Parties 
will recognize international driving licenses issued by  either party.  Parties grant permission for 
vehicles registered in both countries to transport goods and passengers between the countries, as well 
as for opening offices and transportation agencies and companies according to their domestic legislation.  
Question 136 
Could Afghanistan provide more information about obligations relevant to trade in transit that 
arise from its membership in SAARC/SAFTA and CAREC?  
Answer:
 
Signatories of the SAFTA Agreement are comm itted under Article 8 of the Agreement to: 
− Simplify and harmonize customs clearance procedure; 
− Harmonize national customs classification based on HS coding system; 
− Improve Customs cooperation to resolve dispute at customs entry points; 
− Simplify and harmonize import licensi ng and registration procedures; WT/ACC/AFG/5 
Page 64  
 
  − Provide transit facilities for efficient intra- SAARC trade, especially for the land-locked 
Contracting States;" and 
− Furthermore, as per the action plan of the CA REC Transport and Trade Facilitation Strategy 
(TTFS), Afghanistan is planning to establis h a National Transit and Trade Facilitation 
Committee to promote transit and transport deve lopment and integrated trade facilitation at 
the national level through impr oved interagency collaboration and enhanced partnerships 
between the public and private sectors.  CAREC serves as a regional forum to address issues 
of regional transit development such as signi ng and implementation of bilateral/trilateral 
transit agreements. 
Question 137 
How do these various regimes – Economic Coop eration Organization (ECO), South Asian 
Association for Regional Cooperation (SAARC), Central Asia Regional Economic Cooperation 
(CAREC) Program – articulate with each other?  
Answer:
 
There are no transit arrangements under CAREC or SAARC. Under ECO, the ECO TIFA Transit Transport Fram ework Agreement (TTFA) has been signed but not 
ratified by all signatories.   
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 1. General Question 138 In addressing these questions, and the similar ones  that Afghanistan is likely to get from other 
delegations, please consider that the objective of our questions is to elicit responses that describe 
the identified deficiencies with Afghanista n's current system; how and when Afghanistan 
intends to implement WTO requirements in this area; and when the Working Party can get 
copies of the draft legislation for review.  Ho wever, Afghanistan approaches answering these 
requests for information, these core questions need response.  
The Memorandum states that "new laws consis tent with minimum standards of intellectual 
property protection, as set out in the Trade-Related Aspects of Intellectual Property Rights 
(TRIPS) Agreement, are currently being drafted"  under the guidance of the National Board on 
Protecting Intellectual Property Rights. 
− Please give us an update on the status of work to finalize and approve the Draft 
Intellectual Property Laws. 
− What is the timeline for their enactment? 
− We urge that these drafts be provided for Wo rking Party review as soon as possible.  
Answer:
 
Individual laws on Patents and Copyrights were ad opted and signed by the President in 2008.  A Law 
on Trademarks came into effect in 2009.  Each of  these laws is currently undergoing review for 
TRIPS compliance, and it is expected that appropria te amendments for all three will be developed in 
2010.  No other intellectual property laws or draft laws currently exist, but  laws relating to other 
substantive areas covered under the TRIPS Agreemen t, as well as administration and enforcement  WT/ACC/AFG/5 
 Page 65 
 
 
  measures, are slated for drafting in 2010.  The Government is firmly committed to finalizing a 
TRIPS-compliant intellectual property prot ection regime as soon as possible.   
The English text of the following three laws is being provided to the WTO Secretariat (see document 
WT/ACC/AFG/5/Add.1): 
− Law "On Supporting the Rights of Inventor s and Discoverers" of 31 April 2009; 
− Law "On Supporting the Right of Authors, Composers, Artists, and Researchers" of 
26 July 2008; and 
− Law "On Trade Marks Registration" of 1 September 2009. 
The Law on Support the Rights of Inventors and Disc overers sets out regist ration requirements and 
procedures, including filing, priority, appeals, publi cation, cancellation, and transfer requirements.  
Exclusive rights and protection periods, as well as exceptions such as co mpulsory licensing, are 
detailed.  The Law includes some enforcemen t measures, among them, preliminary measures. 
The Law on the Support of the Rights of Authors,  Composers, Artists and Researchers (Copyright 
Law) includes an extensive definition section, follo wed by detailed provisions on protectable works. 
Both economic and moral rights are set out, as well as limitations and exceptions to those rights.  
The Law defines terms of protection and exclusive ri ghts for the various works governed by the Law.  
Numerous enforcement measures are included.  The Law's points of attachment are clearly defined. 
The Law on Trademarks Registration of Septem ber 2009 contains necessary elements such as 
definitions of basic terminology, registration a nd opposition procedures, provi sions on termination of 
protection, and some infringement and enforcement provisions.  Initial protection terms comply with 
TRIPS standards.  It properly disallows use of partic ular terms as trademarks, in accord with the Paris 
Convention. 
Question 139 
The Government of Afghanistan has recently a nnounced the establishment of an Intellectual 
Property Office.  What is the timeline for the establishment of this Office?  
Answer:  
In March 2010, an Intellectual Property Office was esta blished at MoCI to be responsible for patents, 
trademarks, industrial designs, geographical indicati ons, and genetic resources.  Also, a Copyright 
Directorate dealing with copyrights and related rights was also established at the Ministry of 
Information and Culture. 
Question 140 
Would this Office be part of the MoCI or an independent body?  
Answer:  
These offices are not independent.  Please see the reply to the previous question. WT/ACC/AFG/5 
Page 66  
 
  (e) Fees and Taxes 
Question 141 The chart in this section appears to indicate th at trademark applicants from foreign companies 
are charged different and possibly higher fees. 
− Is this correct?  Are trademark fees for national and foreign filers different? 
− Please address comprehensively Afghanis tan's plans for implementing non-
discriminatory fees for applicants fo r intellectual property protection.  
Answer:
 
The fees in Table 12 of document WT/ACC/AFG/4 ar e those being currently charged by the Supreme 
Court in accordance with the 1960 law.  The new La w on Trademarks, once it comes into effect, will 
be administered by the IPO at MoCI.  A new non- discriminatory fee structure will be elaborated. 
2. Substantive standards of protection, incl uding procedures for the acquisition and 
maintenance of intellectual property rights 
(b) Trademarks, including service marks Question 142 The Memorandum states: "While the existing trad emark laws and regulations are still in effect, 
a new law [is] being prepared by the Ministry  of Commerce and Industry."  Could Afghanistan 
elaborate on whether the new law will continue  the registration system from the 1960 law?  
Answer:
 
The new law will not continue the registration system from the 1960 law. Please see the reply to the 
previous question. 
(f)  Plant variety protection 
Question 143 
What content and timeline are considered for the planned legislation on plant variety 
protection?  
Answer:  
The Government plans to initiate drafting a law on plant variety protection in 2011. 
(i) Any other categories of intellectual property 
Question 144 
The Memorandum states: "However, progress is being made through the preparation of 
relevant legislation to enable Afghanistan to  meet all its obligations under the relevant 
conventions and under the TRIPS Agreement…"  WT/ACC/AFG/5 
 Page 67 
 
 
  Could Afghanistan elaborate on whether they en visage a new law on geographical indications, 
and do they have any information on what that law may entail?  
Answer:  
Currently Afghanistan has no law on geographical indications, but plans in 2010 to start preparing a 
draft law in this area.  The Law will cover all ar eas required under TRIPS, as well as registration 
requirements and procedures, priority, opposition, excl usive rights, terms of protection, termination, 
and relationship with trademarks. 
Question 145 
Could Afghanistan please provide information on its efforts to develop its domestic intellectual 
property legislation in areas such as copyright and patents?  
Answer:  
New copyright law and patents law are enacted an d enforced in 2008.  A new trademarks law has 
been adopted by the Parliament in 2009 and signed by the President in 2010.  Afghanistan intends to 
start drafting a law on geographical i ndications and a law on industrial d esigns in 2010.  In addition, it 
is planned to start drafting a law on plant variety protection in 2011. 
VI. TRADE-RELATED SERVICES REGIME Question 146 We take note of the open trade regime in this  sector described in the Memorandum.  We hope 
that this can be reflected in Afghanistan's commitments for market access in its Schedule.  
Answer:
 
Afghanistan intends to start preparing its initia l market access offer on services toward the end of 
2010. 
Question 147 
Please describe the provisions of the Regulation  on Foreigners Employment in Afghanistan of 
6 July 2005, in particular, Issue No. 858.  
Answer:  
Under the Regulation on Foreigners Employment in Afghanistan of 6 July 2005 foreigners can be 
employed in Afghanistan on the basis of licence issued by the Ministry of Labour and Social Affairs.  
Licenses are issued for one year and are renewable.   
To qualify for employment licence, foreign citizens mu st be at least 18 years old, have not completed 
retirement age provided in the Labour Law, and have health certificate from their country of 
citizenship and from the related entities of the Mini stry of Public Health of Afghanistan.  The 
following conditions apply:  
− Individual request shall be made by foreign c itizens who have obtained the right to stay in 
Afghanistan and the justification shall be provi ded of the need for employing organization. WT/ACC/AFG/5 
Page 68  
 
  − Recruitment of the foreign citizens in specialized fields is not allowed if they don't have 
expertise and education in that specific field. 
− The recruiting organization is required to mon itor the performance of the recruited foreign 
individuals.  
− Requests for employment that fall under agreements between the Afghan government 
agencies and foreign countries shall be processed in the Ministry of Foreign Affairs (MFA) 
and Ministry of Labour and Social Affairs (MoLSA). 
− Priority shall be given to the recruitment of national Labour if both national and foreign 
labors are available.  
− Foreign citizens, who travel to Afghanistan fo r employment purposes, are required to obtain 
paid residence visa and paid work visa.   
The Regulations calls for (i) development by MoLSA of sample of contracts of foreign employees and 
(ii) development and approval by MoLSA and MoFA of recruitment procedures for foreign 
employees. 
Question 148 Please describe the provision of the Decree dated 5 March 2005?  "Amending Certain Articles 
and Parts of the Regulation on the Import and Exhibition of Motion Pictures and the Monitoring of Cinemas", as well as the provisions of the Regulation itself.  
Answer:
 
Regulation on the Import and Exhibition of Motion Pictures and the Monitoring of Cinemas of 1998 
provides for: 
− Cinema activities are subject to  licensing by Afghan Film Directorate under the Ministry of 
Information and Culture (AFD); 
− AFD to censor cinema movies and videos and the Ministry of Information and Culture issues 
import permits;  
− AFD jointly with Ministry of Education to identify films that are not for persons under 18 
years old; 
− Ministry of Finance establishes tickets prices  for state cinema theatres upon approval from 
Minister's Council;  
− Construction of new cinema theatres can be im plemented after its design approved by AFD; 
− Obligations of cinema administrations to:  s how documentary and informative films before 
display of feature films; maintain order and cl eanness; control of 18 year age limit for ranked 
movies; ensure that school students do not attend movies during school hours and etc; 
− Afghan citizens are given priority on import procurements of films by AFD; 
− Import permit is to be issued by AFD indicati ng quantity of films based  on applicant's request 
and quality check; and 
− Number of staff of private cinemas shall be proportionate to cinema size according to the 
standard norm for state cinemas. 
Importer of feature film or program shall pay for each film or program following fees: 
− For Pakistani films:  Approximately US$5,000.00 
− For Indian films:  Approximately US$4,000.00 
− For Iranian films:  Approximately US$3,000.00 
− For Turkish, Arabic, Western in their or iginal language:  Approximately US$1,500.00 
− For Turkish, Arabic, Western dubbed Fars i language:  Approximately US$1,000.00  WT/ACC/AFG/5 
 Page 69 
 
 
  − Film of Socialist countries:  Approximately US$200.00 
Films imported temporarily based on agreement with AFD to pay certain percentage of profit are 
exempted from above fees.  
Decree dated 5 March 2005 "Amending Certain Ar ticles and Parts of the Regulation Import and 
Exhibition of Motion Pictures and the Monitoring of Cinemas" introduced the following changes: 
− Rights of Directorate of the Afghan Film of the Ministry of Information and Culture as an 
authorized body in the countr y to secure relations between individuals and firms working in 
the area of cinema and video film production and distribution  and their release is extended to 
VHS, VCD, DVD; 
− Right of AFD to supervise "video saloons" is replaced to "small scale cinemas"; and 
− Import, control of compliance and distribution of the VHS, VCD and DVD films are 
sanctioned to go public by a stamp of the AFD.  Fees for public release in cinemas of such 
films will be half cost of those mentioned in the fee schedule above.  For sale of video 
cassettes fee of US$0.1 is paid to AFD for each cassette.  For sale of DVD and VCD a fees of 
Approximately US$0.04 is paid for each disk. 
Small cinemas are defined to be those having between 50 and 100 seats. 
Question 149 
We note with interest that foreign investment in services and foreign companies in general are 
currently leading the development of certain s ervice sectors including postal and courier 
services sectors.  
Could Afghanistan please provide some more in formation on the provision of its domestic 
postal services?  
In particular are there any regulations or requirements that postal services be provided 
universally throughout the country and, if so, how is this accomplished and to what standards?  
Answer:  
The range of domestic postal service s consists of the following:  
Mandatory services:  Afghanistan post is required to ac cept, convey and deliver throughout  the country the following postal 
item:  
− Letter up to 2 Kg; 
− Postcard; 
− Small packet 2 Kg; 
− Printed paper 7 Kg; and 
− Parcel 20 Kg. 
Other services: The other services provided by Afghanistan Post include express mail, registered mail, courier 
services (EMS), private P.O. Boxes, selling stamps and money transferring services. WT/ACC/AFG/5 
Page 70  
 
  Article 37 of the Constitution of Afghanistan s tipulates the provision of communications services 
(Telecom and Postal services) to all users/customers in the country.   
Question 150 
Annex 7, (1) Business Services; (1.1) Professional Services:  In Annex 7, it appears that approval 
from the relevant government agencies is required in a large number of areas (including 
architectural services, engineering services, a nd urban planning).  Do approval procedures 
differ for nationals and foreign service providers?  If so, in what way are they different?  
Answer:
 
Afghanistan intends to conduct in-depth examinati on of its service-related legislation to prepare and 
share in 2010 with working party Members WT/ACC/5 (Information on Policy Measures Affecting 
Trade in Services) detailing all current measures related to market access, national treatment, and 
most-favoured nation treatment. 
Question 151 
Annex 7, (1) Business Services; Table 4 – Real Esta te Services:  From the Report it appears that 
both Afghans and foreigners are eligible to a pply for licenses for most professional services 
under the category of accounting and auditing services (page 79, paragraph 1.1.2).  However, 
the licenses for real estate services related to privat e or leased property (type "a" in Table 4) are 
reserved exclusively for Afghans.   
Please confirm whether or not our underst anding as described above is correct?  
Could Afghanistan please also clarify whether, in  the case where "real estate appraisal services" 
fall under "type" a "real estate services", it woul d consider liberalizing its market access with 
reciprocal terms, or whether it would impose qualification restrictions on the professional capacity of foreign real estate service providers?   
Answer:
 
Yes.  This is correct understanding regarding the above paragraph.  
The second question will be addressed in the contex t of market access negotiations on services.  
Question 152 
Annex 7, Table 1 - Professional Services:  Coul d Afghanistan confirm that the licence issuing 
body for veterinary services is indeed AISA?  If so, what are the details of the relation between 
AISA and MAIL and its role in this regard?  
Answer:  
The licence issuing body for veterinary services is MAIL.  AISA has no role in issuing veterinary 
services.  WT/ACC/AFG/5 
 Page 71 
 
 
  Question 153 
Annex 7, 2. Communication Services, 2.1 Couri er services: Could Afghanistan confirm that the 
express companies quoted under 2.1 can freely carry  out domestic and international express 
delivery services?  Is the courier market  open for foreign service providers?  
Answer:  
The draft postal law which is the legislative process has set the terms and conditions of entering in the 
postal market.  Applying the licence regime for prov iding level playing field for all service providers 
has been stipulated in the draft law.  Hence, th e door is opened for all ser vice providers of express 
companies/international curriers to freely carry out domestic and international express, logistics and 
mail services.   
Question 154 Annex 7, 2. Communication Services, 2.3 Te lecommunication services:  Could Afghanistan 
provide a brief description of the satellite mark et and procedures (licence issuing bodies and 
requirements) to provide satellite services in the country?  
Answer:
 
The licence issuing body for satellite  services is the Afghanistan Tel ecom Regulatory Authority of the 
Ministry of Communications and Information Tec hnology (MCIT).  A company seeking to operate in 
the satellite market of Afghanistan as service provi der must obtain a licence from ATRA.  No licence 
has been issued as of date. 
All of the Telecom and Internet Service Provide r Companies use the satellite services for their 
national and international communications.  To obtain a licence, the applicant should submit a 
business plan to MCIT (addressed to the Minister).  The business plan is evaluated by ATRA.  A 
number of factors are examined before issuing the licence including past experience, financial 
standing, proposed technology, and operational plan.  
Question 155 
Annex 7, (2) Communication Services:  (2.3) Telecommunication Services: Could Afghanistan 
please provide further details on the mandate of the Telecommunications Regulatory Board 
(TRB) and the relationship of the Board to Th e Ministry of Communication and Information 
Technology?  
Answer:  
The Afghanistan Telecom Regulatory Authority of Afghanistan acts and operates within its legal 
authorization provided in the Telecommunications Services Regulation law which provides ATRA the 
following duties and authorities:  
− Regulate and supervise the activities of Operat ors (telecom service providers), in accordance 
with the provisions of this law; 
− Supervise compliance by Operators with interna tional treaties entered into by Afghanistan in 
the telecommunications sector; 
− Provide advice to Ministry of Communications in development of policies, when needed; 
− Issue licenses in accordance with th e provisions of this law;  WT/ACC/AFG/5 
Page 72  
 
  − Prepare and publish forms relating to issuance of licenses in accordance with the provisions 
of this Law;  
− Monitor and control compliance with the conditio ns included in licenses and the provisions of 
this law, and make such decisions as are necessary in the context; 
− Assign radio frequencies and grant permits to  licensees, in accordance with the national 
frequency allocation table through the Spectrum Management Office; 
− Issue, modify, renew, suspend or revoke licenses  and permits, in accordance with this law and 
other enforced laws; 
− Respond to complaints of users and settle the disputes between Operators, users and other 
persons, including interconnection, access to and quality of service, numbering, privacy, 
unacceptable interference and quality of the ne tworks or services of grantees and other 
services; 
− Specify and approve technical standards fo r telecommunication equipments and devices; 
− Establish and maintain the numbering pl an and assign numbers to applicants; 
− Establish plan for regulating affairs related to  expenditure of contributions of the Telecom 
Development Fund and supervise the manne r for spending the mentioned budget in 
consultation with MCIT; 
− Develop a plan for regulating the affairs relate d to expenditures of the Telecom Development 
Fund and the manner for using such funds, in consultation with the Ministry of 
Communications; 
− Maintain registries of licenses, interconnecti on agreements, the ATRA notices and decisions 
concerning the claims of confidentiality or pe rmissible disclosures, and publish them on the 
relevant website for public notice;  
− Take necessary actions on acceleration of  installation and development of 
telecommunications networks and services thr oughout Afghanistan, at reasonable prices; 
− Support the interests of users of telecommunications services; 
− Prevent Operators having Significant Market Power from abusing such power; 
− Promote sustainable competition among Operators; 
− Determine and identify whether any pe rson has Significant Market Power; 
− Require a person having Significant Market Po wer to sell/offer telecommunications services 
on a non-discriminatory basis to other licensed Service Providers; 
− Establish technical, economic or other cons ultative committees, as deemed necessary; 
− Prescribe fees payable in connection with the ap plication, issuance, modification, renewal and 
transfer of any licence issued, for the ongoing right to hold a licence; 
− Prescribe fees payable in connection with the importation or use of specific types of 
telecommunication equipment in Afghanistan; 
− 
Prescribe fees, payable in connection with the assignment and use of numbers; 
− Establish and maintain any registries of Op erators(telecom service providers) that may 
required; 
− Appraise and investigate any matters necessary to determine violations from the provisions of 
this law;  
− Appoint inspectors to verify the compliance with any decision of the ATRA or with any 
conditions imposed in the licence or permit;  
− Determine whether any person has breached any condition of a licence or permit; 
− Issue interim or final orders to prevent the occurrence or continuation of a breach of any 
condition of a licence or of a permit; 
− Assign and prescribe fines and receive from violators for breach of any condition of licence or 
permit, or any person for committi ng an offence under this Law; 
− Oblige licensees or holders of permits to compensate damages as a result of a breach of a 
condition of licence or permit;  
− Order the payment for costs of dispute resoluti on, public opinion gather ing and consultations;  WT/ACC/AFG/5 
 Page 73 
 
 
  − Appoint inspectors to verify the execution of licence and permit terms and conditions, use of 
spectrum resources, construction of network infr astructure; towers, conduits, inside wiring, 
and so forth; 
− Prepare, organize and issue official identification cards to inspectors; 
− Instruct the Operators for submitting documen ts, plans and access to relevant facilities, 
stations and networks to the inspectors; 
− Collect continually the annual expenses of the authority from Operators through regulatory 
fees in a transparent, simple and non-discriminatory manner; 
− Submit reports to the relevant authorities;  
− Carry out other duties as provided for in this law. 
The Board for Regulation of Telecommunications Services, consisting of five persons who are 
appointed upon the proposal made by the Minister  Communications and Info rmation Technology and 
approved by the President of Islamic Republic of Afghanistan. 
Question 156 
Annex 7, (2) Communication Services: (2.3) Te lecommunication Services: Could Afghanistan 
please provide further information on the co ntents of the Telecommunications Law?  
Answer:  
The Telecommunications Services Regul ation law covers the following: 
− Licence issuance, modification, suspension and revocation; 
− Licence grant conditions and terms and conditions of the licence contents; 
− Universal Access; 
− Interconnection issues; 
− RIO; 
− Tariffs and their approval process; 
− Rights of way; 
− Numbering plan; 
− Maintenance of the historic heritages and establishment of telecom networks; 
− Telecom traffic regulation; 
− Maintenance of data and cust omers' calls confidentiality; 
− Establishment of administration and its decisions making; 
− Frequencies issue and frequency licenses issuance for use of frequency assignments; 
− Fines and Penalties; 
− Competitive processes; 
− Miscellaneous decrees or provisions; and 
− Significant or dominant power in market and abuse of the significant power. 
There is still no specific category for the issuance of satellite licence, and it is intended to issue 
satellite licence for provision of satellite services in  the upcoming future.  Work is in process on 
relevant policy. 
Licensees have been given the right of telecom a nd internet services provision at the local, national 
and international level, using satellite and wireless switch stati ons based on licenses which have been 
granted for provision of mobile and internet services so far. WT/ACC/AFG/5 
Page 74  
 
  Question 157 
Annex 7, 7. Financial Services: Could Afghan istan elaborate on how the financial system 
implemented the various functions enumerated?  
Answer:
 
Since 2002, the regulator of the financial system (Da Afghanistan Bank) has achieved many 
milestones in its drive to maintain price stab ility, promote financial sector growth, and foster 
economic development in the country.  In Septem ber 2003, the Law on central bank and the Law on 
Banking were adopted.  Following the enactment of the two laws, 17 banks have been licensed as of 
date, more than 400 million private sector investments have been attracted to Afghanistan and enormous wealth has been created in the banking sector.   
As of March 2010, the total deposits of the ba nking sector exceeded US$3. 19 billion (compared to 
US$2.8 Billion in May 2009) and commercial banks ' total lending to more than 79,000 businesses and 
SMEs reached US$1.0 billion creating thousands of  new jobs in the economy.  These banks are now 
active in more than 30 out of 34 provinces of Afgha nistan with a branch network of more than 244 
full service and limited service branches providing fi nancial intermediation and facilitating payment 
system in the country.  
Currently, salaries of tens of thousands of t eachers, Afghan National Army and Afghan National 
Police officers, NGOs and other government and n on-government entities are paid (in most cases) 
electronically through the banking sector. 
The Central Bank which was heavily involved in co mmercial banking activities has been restructured; 
many unnecessary departments were eliminated fr om its organizational structure and a number of 
essential departments, such as Bank Supervision, M onetary Policy, Market Operation, Information 
Technology, Financial Intelligence Unit, and Risk  Management were cr eated from scratch.   
Two new laws, namely the law on Anti-Money La undering and proceeds of crime and the Law on 
Combating Financing of Terrorism  were subsequently adopted in  2004 to clean up the financial 
system from the menace of terrorists and organized criminal gangsters.   
More recently, two more laws, namely the Law on Mortgage and the Law on Negotiable instruments 
were passed by Parliament and the cabinet respectiv ely and were signed into law by the President of 
the Islamic Republic of Afghanistan.  Pursuant to these laws, more than 21 regulations and numerous 
internal policies have been enacted by the Supreme Council of the DAB to facilitate the 
implementation of these laws.   
Under the new arrangements, the Central Bank has fo cused on its core functions:  monetary policy, 
bank supervision, inter-bank clearance and se ttlement and financial market stability. 
The achievements of the Central Bank in the last 12 months have been quite remarkable.  During this 
period, the DAB has established a Risk Manage ment Department and the Financial Dispute 
Resolution Commission.  Furthermore, DAB has also made significant progress towards establishing a fully functioning Credit Information Bureau , Collateral Registry, Afghan Deposit Insurance 
Corporation (ADIC) and the Afghanistan Institute of Banking and Finance (AIBF).  In addition, the 
accounting system of the bank has been fully auto mated and Core Banking Solution (CBS) has been 
installed in the central bank headquarters a nd 20 branches of DAB nationwide.  All these 
accomplishments will catalyze the development of financial services in Afghanistan.   WT/ACC/AFG/5 
 Page 75 
 
 
  Question 158 
Annex 7, 7. Financial Services:  Could Afghanis tan elaborate on the ongoing work and its aims 
in the field of development of financial serv ices mentioned in the last bullet point?  
Answer:  
The aim of the ongoing work in the financial services sector is to ensure that the prudential regulatory 
framework maintains the safety and soundness of the fi nancial system in Afghanistan.  In this regard, 
the central bank of Afghanistan has increased its on- site bank examinations to twice a year and has 
introduced targeted examinations of IT systems.  Th e central bank of Afghanistan is also working to 
introduce measures to broaden and deepen access to  finance for the poor such as mobile banking, 
Islamic banking and a stock exchange market.  Fu rthermore, the World Bank funded "Financial 
Sector Strengthening Project of Afghanistan" is also enhancing financial system, mainly, by 
establishing collateral registry, credit information bureau  and Afghan institute of banking and finance.  
VII.  TRANSPARENCY 
Question 159 Please describe Afghanistan's general provisi ons for publication and comment for domestic 
laws, regulations, and other measures of general application that become legally enforceable.  
Answer:
 
There are no legal requirements or practice for publication and comment for domestic laws, 
regulations, and other measures of  general application that become legally enforceable.    
Draft legislation are normally directly shared with  interested parties for commenting.  Interested 
parties may also be invited to participate in le gal drafting working groups or in public fora 
(e.g. conference/seminar to discuss draft legislation).  Some ministries publish draft legislation in 
national newspapers for comme nting by the general public. 
VIII. TRADE AGREEMENTS 
Question 160 Approximately what portion of Afghanistan's import  trade is subject to preferential tariff rates 
for from (1) ECOTA; (2) SAFTA; (3) CAREC; and (4) all programs?  
Answer:
 
As of date, Afghanistan has not provided any preferences under ECOTA or other programs.  
Afghanistan's import trade is not subject to preferential tariff rates under CAREC. 
SAFTA was recently ratified on 6 April 2010 by Afghanistan and will come into effect once 
published in the official gazette.  
Question 161 Which ECO participants are members of ECOTA?  WT/ACC/AFG/5 
Page 76  
 
  Answer:
 
The following five participants of ECO are signa tories of ECOTA:  Afghanistan, Iran, Pakistan, 
Tajikistan and Turkey. 
Question 162 
Please describe the provisions of ECOTA, e.g., tariff, non-tariff, services, and procurement?  
Answer:  
According to the provisions of the ECOTA, members shall ensure that provide the applied tariff rates 
on imports shall not be changed to affect an in crease without approval of the Cooperation Council.  
ECOTA envisages tariff reductions to cover all goods  actually traded among the members, except for 
goods notified by each member under a negative list.  The positive list of goods shall be expanded 
gradually on proportionate basis in ei ght equal annual stages so as to cover at least 80 per cent of the 
goods on tariff lines.  Afghanistan is provided extended  term of 15 years for implementation of tariff 
reductions.   
According to Article 6 of ECOTA, no prohibitions or r estrictions other than tariffs shall be applied by 
any Contracting Party by means of quotas, other qu antitative restrictions, import licensing or other 
restrictive measures on imports from other Contracting Parties, except those explicitly set forth in the 
Agreement, within two years of the entry into force of the Agreement.  All para tariff charges having 
effect equivalent to customs duties on imports shall be abolished within two years of the entry into 
force of the Agreement.  All quantitative restricti ons and measures having equi valent effect on export 
of products originating in the Contracting Pa rties as well as any customs duties on exports and 
charges having equivalent effect among them shall be  abolished within two years from the entry into 
force of the Agreement.   
State aid, which distorts or threatens to distort co mpetition by favouring certain goods shall, in so far 
as it may affect trade between that Contracting Party and other Contracting Parties to the Agreement, be deemed incompatible with the proper functioning of the Agreement.  Contracting party facing such 
a practice may take measures under the procedures laid  down in the Agreement.  Criteria for assessing 
such practices shall be based on dom estic laws and/or rules and procedures.  Parties also have the 
right to apply domestic laws and/or rules and pro cedures in order to counteract or prevent dumping. 
If any product, which is subject to concession with respect to a preference under ECOTA, is imported 
into the territory of a Contracting Party in such a manner or in such quantiti es as to cause or threaten 
to cause serious injury in the importing Contracting Party, the importing Contracting Party concerned may, with prior consultations, except in critic al situations, suspend provisionally without 
discrimination, the concession accorded under the Ag reement.  Notification and prior consultations 
with the concerned parties and informing the ECO Secretariat is required.   
Parties committed to grant protection of copyright , comprising computer programs and databases, and 
neighbouring rights, archaeological heritage, tradem arks, geographical indications, industrial designs, 
patents, plant varieties as well as traditiona l knowledge, undisclosed information and know-how.  
Protection shall be gradually improved so that before  the end of eight year period after the entry into 
force of the Agreement substantiv e standards of TRIPS, Paris Convention, Rome Convention, Madrid 
Convention, and Bern Convention are achieved. 
The Agreement also requires state monopolies to operate on a non-discriminatory basis.   ECOTA does not cover trade in services nor contain provisions regarding procurements.  WT/ACC/AFG/5 
 Page 77 
 
 
  Question 163 
Please outline the ECOTA plan for achieving a full FTA (e.g., as defined by Article XXIV of the 
GATT), and by what date?  
Answer:  
There are no current plans for achieving full FTA. Question 164 ECOTA:  How are tariff preferences negotiated?  Calculated?  
Answer:
 
ECOTA envisages tariff reductions to cover all goods  actually traded among the members, except for 
goods notified by each member under a negative list.  The positive list of goods shall be expanded 
gradually on proportionate basis in ei ght equal annual stages so as to cover at least 80 per cent of the 
goods on tariff lines.  Afghanistan is provided extended  term of 15 years for implementation of tariff 
reductions.   
Within these time frames, tariffs shall be reduced to  a maximum of 15 per cent as the highest tariff.  
Each Contracting Party shall, keeping in view the extent of tariff reduction required, notify a schedule 
of concessions to all member states for gradual a nd progressive reduction of a pplied tariffs to bring 
the highest tariff of each item to a maximum of 15 per cent at the end of eight years (15 years for 
Afghanistan), but reduction shall not be less than 10 per cent per annum of the existing tariff.  Above 
provisions apply to goods, originating in the terr itories of the members, and commercial contracts 
concluded between natural and juri dical persons of the Contracting Parties with regard to these goods, 
except sensitive goods which shall not exceed 1 per cent of the six digit tariff lines.  Lists of sensitive 
goods conveyed by the Contracting Parties shall be annexed to the Agreement. However, these lists 
have not been developed yet.    
Question 165 
Please describe the status of SAFTA tariff reduc tions as of 2009.  Approximately how far has 
tariff and non tariff elimination progressed?  
Answer:  
Afghanistan's Parliament ratified SAFTA in April 2010.  As such, no tariff reductions have taken 
place as of date. 
Question 166 
Please give an example of the operation in practice of tariff reductions that Afghanistan is 
making under SAFTA?  
Answer:  
Please see reply to Question 165 above.  WT/ACC/AFG/5 
Page 78  
 
  Question 167 
SAFTA: What are the Revenue Compensation provisions?  
Answer:
 
Annex III of SAFTA describes mechanism of compen sation of revenue loss for LDC member states.  
Sharing of revenue compensation to any LDC Contracting State by the Non-LDC Contracting States 
shall be on the basis of quantified loss of cust oms revenue, if any, on bilateral basis.  The 
compensation equal to the extent of revenue loss qua ntified under a formula for quantification of loss 
subject to the ceiling prescribed below shall be paid in cash in US dollars.  The extent of 
compensation for each of the LDC Contracting State shall not exceed the following percentage of the 
basic customs duty collected on imports of non-sen sitive items from concerned Non-LDC Contracting 
States in the base year:  
− First year – 1 per cent; 
− Second year – 1 per cent; 
− Third year – 5 per cent; and 
− Fourth year – 3 per cent. 
Question 168 
Does Afghanistan grant or receive any tariff preferences under CAREC?  If not, are any 
planned in the near term?  
Answer:  
Afghanistan does not grant any tariff preferences under CAREC.  There are no plans for providing 
tariff preferences among CAREC member countries.   WT/ACC/AFG/5 
 Page 79 
 
 
  ANNEX 1 
State-Owned Enterprises and Privatization Program  
Background  
The Government of Afghanistan began the Priva tization and Economic Restructuring Program of 
State Owned Enterprises "SOEs" in 2004. The to tal number of SOEs in Afghanistan is 64 and 
additionally there are 14 State Owned Corporati on "SOCs", where government may share ownership 
with the private sector or be the sole owner ope rating under corporate law and governance procedures. 
Objective  
The Government of Afghanistan seeks to promote th e private sector as the engine of economic growth 
and the key to Afghanistan's long ‐term development and poverty reduction.  Furthermore the 
Government is committed to  expanding the private sect or through the efficient and rapid transfer of 
state‐owned assets into private ownership. Such tran sfers shall take place in an open, fair, and 
transparent manner with the objectives of maxi mizing sales revenues, employment generation, 
increased investments and technological development. 
Program Progress  
In late 2004, the Ministry of Finance, on behalf  of the Government of Afghanistan commenced a 
detailed economic and commercial assessment of st ate owned enterprises in Afghanistan with the 
intention to determine whether th ese entities are viable from an economic  perspective.  Based on the 
assessment the Government decided to categorize all SOEs (64) within the following two groups, a 
classification which was approved by the Cabinet of Ministers of the Islamic Republic of Afghanistan 
in November 2005: 
1. Enterprises to remain in State ownership for the time being:  There are eight SOEs in this 
group which provide important services including public  transportation, water distribution, electricity 
production and distribution, incarceration services, residential services, or enterprises that must remain in government ownership by law, but ar e engaged in extensive restructuring programs to 
enhance the quality and quantity of the products or services ("Attachment 1").  
2. Enterprises to be divested:  There are 56 SOEs in this group, and they will be transferred to 
the private sector based on different methods; privatiz ation, corporatization, liquidation, sale of assets, 
sale of shares and others ("Attachment 2"). 
The Government of Afghanistan, with the Ministry Finance as the responsible body within the State 
to manage and implement the program, commenced im plementation of the prog ram with the technical 
assistance of the US government. 
Achievements of the Program 
The Cabinet of Ministers of the Islamic Republic of Afghanistan has made the following decisions 
about the first group, enterprises to remain  in state ownership for the time being: 
1. No SOEs should have monopolistic  rights, privileges or activities; 
2. Two SOEs were approved to be  commercialized and corporatized: 
 2.1  Water Supply and Canalization has been  corporatized with better, efficient and 
qualified management and will follow corporate governance guidelines; WT/ACC/AFG/5 
Page 80  
 
   2.2  Da Afghanistan Breshna Mussessa "DABM" was corporatized as State Owned 
Company to operate under commercial and corporate governance procedures. 
The Cabinet of Ministers of the Islamic Republic of Afghanistan has made the following decisions 
about the second group, enterprises to be divested: 
1. No SOEs should have monopolistic  rights, privileges or activities; 
2. Twenty SOEs were approved to be liquidated and their assets should be sold to the private 
sector, of which five SOEs have been completely sold to the private sector and others are in process of being sold off; 
3. One SOE, Power Construction Enterprise was approved to be restructured and merged with 
another public utility and it has been completed; and 
4. Five SOEs were long term leased to fo reign and domestic interested investors. 
Currently private sector firms are running these enterprises. 
The economic restructuring and privatization progra m will take longer than the projected time and 
will therefore not be finished prior to March 2010. 
In addition to SOEs, Afghanistan has 14 State Ow ned Corporations and several other small entities 
which are engaged in commercial activities. 
  
   WT/ACC/AFG/5
 Page 81Attachment 1:  Enterprises to remain in State-ownership for the time being  
Line Ministry Name of Enterprise Location Remarks 
Transportation Millie Bus Kabul The enterprise provides  important public transportation services in Kabul 
And other major provincial cities.  The enterprise will be extensively restructured. 
Mines Engineering Research Kabul The enterprise's core activity – hydrological land surveying – to remain with 
Ministry of Mines, but well drilling will be actively divested. 
Finance Security Printing Kabul The enterprise prints various forms (confidential and valuable documents) for government instit utions. 
It will be restructured. 
Justice Prison Industry Kabul The enterprise will be restructured and management will be improved. 
Agriculture, 
Irrigation and 
Livestock Improved Seed Kabul The enterprise will be extensively restructured. 
Kabul Municipality Micrurayan Maintenance Kabul The enterprise prov ides social services to residential apartment dwellers and i t will be restructured. 
Urban Development Water Supply and 
Canalization Kabul The corporatization process of the enterprise is  being conducted and it almost completed. Meanwhile, 
unnecessary assets will be sold. 
Energy and Water Birshna Organization Kabul The corporatization an d commercialization process is completed, but substantial imp rovements will 
be brought in the management and investment in the infrastructure. 
 
Attachment 2:  Enterprises to be divested  
Line Ministry Enterprise Location Remarks 
Commerce and 
Industry Cooperative and 
Commercial Kabul The enterprise is under the liquidation process and its assets will be sold to the private sector. 
Commerce and 
Industry Foodstuff Kabul The enterprise has no operation.  The enterp rise owns more than 160 properties (Lands/Buildings) in 
the capital Kabul and in the provinces, it will be liquidated. 
Commerce and 
Industry Fuel and Liquid Gas Kabul The enterprise had monopoly on importation and distribution of petroleum products in 1970s and 80s, 
but now the Government has stopped the enterprise on monopoly.  Currently, the majority petroleum products are being imported by private companies.  This enterprise will be corporatized and then 
might be privatized. 
Commerce and 
Industry Medical Plant Export Kabul The enterprise has been liquidated. 
Commerce and 
Industry Samoon Dried Fruit Kabul The enterprise is under the liquidation process, and the core part of operation is privatized the 
remaining part will be sold to the private sector. 
Commerce and 
Industry Shir Khan Bander Kunduz The enterprise is under the liquidation process. 
Commerce and 
Industry Wool Weaving Kabul The enterprise is under the liquidation process.  
  WT/ACC/AFG/5 
Page 82 Line Ministry Enterprise Location Remarks 
Commerce and 
Industry Afghan Carpentry Kabul The enterprise is under the liquidation process. 
Commerce and 
Industry Afghan Industry Kabul The enterprise is under the liquidation process. 
Commerce and 
Industry Kandahar Wool Weaving Kandahar The enterprise does not ha ve any operation; it will be privatized or liquidated. 
Commerce and 
Industry Helmand Bust Helmand The enterprise is a cotton ginning facility producing cotton in bail as an intermediary product for other 
textile producers, cotton seed oil, soap, and cotto n cake for animal feed.  The enterprise will be 
privatized. 
Commerce and Industry Kunduz Spinzar Kunduz The enterprise has signed a long ‐term lease to a new company, NAPCOD, with the French Group 
Dagris having a 60% ownership and the Ministry of Commerce and Industry 40%.  The deal was 
closed in December 2004. 
Commerce and 
Industry Bagrami Textile Kabul The enterprise was completely looted and destroyed during the civil war and nothing remains except 
for valuable land. It will be us ed for Bagrami Industrial Park. 
Commerce and 
Industry Balkh Gin and Press Mazar-e-Sharif The enterprise has signed a long ‐term lease to a new company, NAPCOD, with the French Group 
Dagris having a 60% ownership and the Ministry of Commerce and Industry 40%.  The deal was 
closed in December 2004. 
Commerce and 
Industry Balkh Textile Mazar-e-Sharif The enterpri se will be privatized or liquidated. 
Commerce and 
Industry Kandahar  Textile and 
Cotton Yarn Kandahar The enterprise does not have any operation and it will be privatized. 
Commerce and 
Industry Medical Supply and 
Technical Kabul The enterprise is sold to the privat e sector under the privatization program. 
Mines Jabal Seraj Cement Parwan The enterprise has almost no operations, it will be privatized or long term leased. 
Mines North Coal Baghlan The enterprise is operating with low capacity and parts of its mines have been leased to Afghan 
Investment Company, but the remaining will be leased as well. 
Mines North Power and 
Fertilizer Mazar-e-Sharif The enterprise is the sole producer of fertilizers in Afghanistan.  Plant and equipment are well 
maintained. At first, it will be restructured and then privatized. 
Mines Ghuri Cement Baghlan The enterprise has been leased to Afghan Investment Company for 49 years. 
Mines Afghan Gas Shibar ghan The enterprise is extracting State owned reserves of gas. It should be restructured and then priva tized. 
Mines Mines Extraction Kabul The enterprise should be extensively restructured and will have medium and long term lease contrac ts 
of mines reserves. 
Mines Jangalak Kabul The enterprise is under the liquidation process. 
Mines Rokham Marble Kabul The enterprise is under the liquidation process. 
Transportation Central Transportation Kabul The enterprise is pa rtially operational, but it should be liquidated and all assets  should be sold to 
private sector for better use. 
Transportation Kamaz 5 Baghlan The enterp rise is sold to the private sector.  
   WT/ACC/AFG/5
 Page 83Line Ministry Enterprise Location Remarks 
Transportation Kamaz 6 Kandahar The enterprise is under the liquidation process. 
Transportation Kamaz 7 Herat The enterprise is under the liquidation process. 
Transportation Kamaz 8 Mazar-e-Sharif The enterprise is under the liquidation process. 
Transportation Kamaz 9 Helmand The enterprise is under the liquidation process. 
Transportation Heyratan Technical 
Services Heyratan The enterprise is sold to the private sector. 
Information and 
Culture Hotel enterprise Kabul The enterprise is pa rtially operational.  It will be priva tized and liquidated because it has 22 functio nal 
and non functional hotels. 
Information and Culture Afghan Advertising Kabul The enterprise is liquidated. 
Information and 
Culture Azadi Printing Kabul The enterprise is operating at low cap acity and mostly printing government papers.  It will be 
restructured and then privatized. 
Information and 
Culture Ariana Printing Kabul The enterprise's assets have been leased in 2002 for 20 years by the Ministry of Culture and Youth to 
Nebraska State University. 
Information and Culture Afghan Tour Kabul The enterprise's operations are limite d.  The enterprise will be restructured and privatized. 
Defense Construction Material 
Production Kabul The enterprise is operating on low level, it will be privatized. 
Defense Kabul Slaughterhouse Kabul The enterprise is operating out of centrally located facilities in Kabul and will be diveste d and 
relocated to new facilities to release real estate values. 
Public Health Pharmacy Department Kabul The enterprise w ill be restructured/corporatized and then possibly privatized. 
Education Education Printing Kabul The enterprise should be merged  with Azadi Printing enterprise and then should be restructur ed. 
Urban Development Afghani Construction Kabul The enterprise has lim ited operations and will be restructured, and ultimately pri vatized. 
Urban Development Banaye Construction Kabul The enterprise has limited operations and will be restructured, and ultimately priv atized. 
Urban Development Housing Construction Kabul The enterprise has limited operations and will be restructured, and ultimately pri vatized. 
Energy and Water Metal Component 
Production Kabul The enterprise will be privatized. 
Energy and Water Jadid Energy Kabul The enterprise is liquidated. 
Energy and Water Power Construction Kabul The enterprise has been merged with DABM/S. 
Energy and Water Helmand Construction Kabul The enterprise  does not have any operations so it will be liquidated. 
Energy and Water Spin Ghar Construction Kabul The enterprise is under the liquidation process. 
Agriculture, Irrigation 
andvestock Fertilizer and Agro 
Services Kabul The enterprise is under the liquidation process. 
Agriculture, Irrigation 
and Livestock Kabul Silo Kabul The enterprise will be restructured prior to privatization. 
Agriculture, Irrigation 
and Livestock Pul-i-Khumri Silo Baghlan The enterprise will be restructured prior to privatization.  
  WT/ACC/AFG/5 
Page 84 Line Ministry Enterprise Location Remarks 
Agriculture, Irrigation 
and Livestock Balkh Silo Mazar-e-Sharif The enterprise will be restructured prior to privatization. 
Agriculture, Irrigation 
and Livestock Kandahar Fruit Kandahar The enterprise does not  have any operations and will be liquidated. 
Agriculture, Irrigation 
and Livestock Baghlan Sugar Baghlan The enterprise is corporatized and majo rity owned by the private sect or, but still there are properties 
of the enterprise to be sold. 
Agriculture, Irrigation 
and Livestock Slaughterhouse and 
Livestock Herat The enterprise is under the liquidation process.  WT/ACC/AFG/5 
 Page 85 
 
 
  ANNEX 2 
Joint Coordination and Monitoring Board (JCMB) Report on Privatization  
Summary:  
Since the inception of the privatization program in  Afghanistan, liquidation of 21 SOEs is on-going 
and all assets of Mortgage and Construction Ba nk with 100 per cent progress and Industrial 
Development Bank with 99 per cent have been so ld.  The assets of Agriculture Development Bank 
have been transferred to Ministry of Finance. 
Privatization of SOEs A. Results 
Outcome 
Indicators Baseline 2008 Benchmark 
2009 Progress % of 
Progress 
Amount of 
revenues generated in Af 
million as a result 
of divestment of 
SOEs Equivalent to US$8,943,208 
assets were transferred to private sector and 
equivalent of US$6,620,000 
assets transferred to public 
sector  Since the beginning of 
2009, four successful auctions of movable assets 
worth of US$421,890 of 
Kamaz 9, Kamaz 6 and 
Afghan Carpentry in Kabul 
have been held.  
 
3.5.1:  Financial Management Re porting, Monitoring and Evaluation  
(Financial Controller activities and oversight, computerization)  
Output Indicators Baseline 2008 Benchmark 
2009 Progress % of 
Progress 
Implementation 
of a new 
computerized 
reporting system computer module available  Fully 
implement 
the 
computerized 
system The SOE Department 
launched a 15 day training 
program in new reporting 
system of State Owned 
Enterprises in the Ministry of Finance.   
 
3.5.2:  Privatization and Divestment  
(Restructuring, Privatization and Divestment, Social Safety Net)  
Output Indicators Baseline 2008 Benchmark 
2009 Progress % of 
Progress 
Number of SOEs 
divested  21 SOEs with 50% progress 31 SOEs For the time being we have 
not started any new SOE 
for privatization or 
liquidation. Still liquidation process of 21 SOEs is 
under way and two public 
utilities (water and power) are under corporatization 
process. Kabul Department 
of Water Company and six provincial units were 
transferred to AUWSSC.   WT/ACC/AFG/5 
Page 86  
 
  Output Indicators Baseline 2008 Benchmark 
2009 Progress % of 
Progress 
Number of redundant 
employees paid 
severance 
payment 1,371 1,200 more No employees have been 
laid off.   
Number of 
redundant employees trained 210  N/A No employees have been 
sent for training.   
 
3.5.3:  Administration  
Output Indicators Baseline 2008 Benchmark 
2009 Progress % of 
Progress 
Number of SOE 
staff trained  30 25  80 
 
B.  Detail of the Main Achievements and Activities of the Sub-Program 
− Holding four successful auctions for Kamaz 6 in Herat and Kandahar and Kamaz 9 in 
Helmand and Herat and Afghan Carpentr y in Kabul to the private sector; 
− Significant progress in the liquidation process of approved SOEs for restructuring and 
liquidation;  
− Approval of the Pule Charkhi Wool Weaving,  Spin Ghar Construction, Rokham Marble, 
Afghan Fertilizer and Cooperative and Commerc ial Liquidation Plans by the Cabinet of 
Ministers and they are ready to be announced for auction;  
− Transfer of DABM to DABS and signing MoU between MEW, MoF and DABS; 
− Completion the transfer plan for Kabul Department of CAWSS to AUWSSC;  
− Completion the transfer plan of six provincial units from CAWSS to AUWSSC;  
− SOE Department has confirmed transfer of Af  1,302,250,588 (approximately US$26,045,012) 
revenues to State Account from 1 per cent, 2 pe r cent and 5 per cent taxes and funds on 2008; 
− SOE Department has confirmed transfer of Af 857,525,429 (approximately US$17,150,508) 
revenues to State Account from 1 per cent, 2 per cent and 5 per cent taxes and funds of first, 
second and third quarters of 2009; and 
− ADB recruited four consultants to work on th e development of business plans for Ariana and 
DABS, which is a requirement of the IMF benchmark.  
C.  Problems 
− Still we have not held any auction of immovable assets due to the decision of the Parliament; 
− Land ownership is still a huge tim e consuming process in SOEs; 
− SOE Dept will have problem with DABS in th e development of the business plan because 
required data is not existed a nd it will take time to collect all needed information; and 
− USAID/LTERA project is finished and now th is department does not have any technical 
support for the continuation of the privatization program.   WT/ACC/AFG/5 
 Page 87 
 
 
  D.  Recommendations 
− SOE Dept needs very strong support of all relevant state agencies in order to finish the 
liquidation process of all 21 SO Es for liquidation and two for corporatization; and 
− SOE Dept needs technical assistance to draft proper procedures for the financial and business 
supervision of State Owned Corporations.  
 
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