Fee slapped on Afghan transit trade

In a significant move to curb the illegal entry of goods into the country, the government announced on Tuesday a 10 per cent processing fee on items imported under the Afghan transit trade agreement. The decision — which aims to deter smuggling and ensure pro­per taxation — comes at a time when the government has ordered all illegal immigrants, including 1.73 million Afghan nationals, to leave the country or face expulsion. According to the Customs Department notification (SRO1381 of 2023), the fee, calculated as 10pc ad valorem based on the original value of goods, must be paid in advance during the declaration process for Afghan transit commercial goods entering Afghanistan via Pakistan. The items affected include confectioneries, chocolates, footwear, various machinery, blankets, home textiles, and garments. However, the notification stipulates that goods declarations filed before Oct 3 will not be subject to these new provisions. Customs officials suspect that certain goods, though destined for Afghanistan, are clandestinely rerouted back into Pakistan, prompting this latest measure. An official noted that cargo volume has surged recently. “Despite Afghanistan’s transit trade demand being $1bn to $2bn per year, we have observed a significant rise. This fee is expected to deter those involved in illicit trading,” the official said.