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SIGAR urges tighter VIP control to stop cash smuggling through airport

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Despite efforts by the Afghan government to reduce the flow of cash out of the country’s busiest international airport, significant control weaknesses continue to exist at Hamid Karzai International Airport in Kabul, the Special Inspector General for Afghanistan Reconstruction (SIGAR) reported Thursday.

Cash counting machines, which were funded by the US government, are not being used for the purposes intended and the only cash counting machine confirmed to be working is in the arrival entrance, instead of the departure area where strict cash controls are most needed to help prevent cash smuggling, SIGAR reported.

In addition, the machines lack connectivity to the Internet, which in turn prevents Afghan investigative authorities from tracking currency suspected of being laundered.

“The absence of fully functional and strategically positioned cash counting machines, and declaration forms in the VIP section along with the limited screening of VIP passengers – who are most likely to have large amounts of cash – severely limits the Afghan government’s ability to fully implement its anti-money laundering laws at the airport,” John F. Sopko, Special Inspector General for Afghanistan Reconstruction stated in the report.

To improve screening procedures at Hamid Karzai International Airport, SIGAR suggested the Afghan government take the following two actions:

1. Fully integrate cash counting machines with functioning Internet capability into the normal customs process both at the non-VIP and VIP terminals to better ensure that all declared and detected currency is counted, and serial numbers captured, for use by FinTRACA and its international partners.
2. Strengthen controls at the VIP terminal by requiring all VIP and VVIP passengers to fill out customs declaration forms, and have airport staff count any cash declared and send serial numbers to FinTRACA.

Sopko stated: “We provided a draft copy of this report to the [US] Department of Homeland Security (DHS) and Department of State (DOS) for comments on December 21, 2020, and the Afghan government for comments on December 22, 2020.

“DHS provided technical comments for incorporation in the report on January 8, 2021, which we
incorporated as appropriate. The Department of State informed SIGAR on January 8, 2021 that it does not have any technical comments.

“As of the publication of this report, the Afghan government did not provide any comment on the report nor on the matters for its consideration,” Sopko stated.

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Afghanistan raises import tariffs on several goods to support domestic industry

Under the new rates, the customs tariff on bottles has increased from 12% to 16%, while the tariff on construction paint has risen from 16% to 30%.

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Afghanistan’s Ministry of Finance says it has increased customs tariffs on several imported goods as part of measures aimed at supporting domestic production and industrial growth.

The ministry said the Tariff Committee approved the changes during its third meeting of the 1405 solar year.

Under the new rates, the customs tariff on bottles has increased from 12% to 16%, while the tariff on construction paint has risen from 16% to 30%.

Tariffs on leather footwear and plaster have each increased from 50% to 80%, while the rate on sanitary diapers has risen from 20% to 25%.

At the same time, the tariff on heart springs has been reduced from 8% to 3.5%.

The Ministry of Finance said customs tariffs on cement, iron pipes, refrigerators and raw materials used in carpet production are also under review.

According to the ministry, the tariff adjustments are intended to protect domestic industries, strengthen local production and create conditions for further growth in trade.

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Afghanistan-Kazakhstan trade reaches $581 million in six months

The latest discussions come as Kabul and Astana work on a bilateral economic cooperation roadmap, with the two countries aiming to increase annual trade to $3 billion.

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Trade between Afghanistan and Kazakhstan reached $581 million in the past six months, officials in Afghanistan’s western Herat province said.

The figure was discussed during a meeting between Herat Governor Noor Ahmad Islam Jar and a Kazakh delegation led by Yerkin Tukumov, Kazakhstan’s special representative for Afghanistan.

Tukumov stressed the need to expand transit capacity and remove customs barriers to facilitate increased trade between the two countries. He also invited Afghan officials to attend a joint economic meeting scheduled to take place in Kazakhstan.

Islam Jar highlighted Herat’s strategic location and security, describing the province as having significant potential to serve as a hub for investment and regional trade.

Afghanistan and Kazakhstan have previously discussed expanding trade in agricultural products, including Afghan agricultural exports in exchange for flour imports from Kazakhstan.

The two sides have also reached understandings on cooperation over the Torghundi-Herat railway project, which is intended to strengthen transport and trade links.

The latest discussions come as Kabul and Astana work on a bilateral economic cooperation roadmap, with the two countries aiming to increase annual trade to $3 billion.

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Ariana Afghan Airlines increases Kabul-Delhi cargo flights

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Ariana Afghan Airlines has increased cargo flights between Kabul and Delhi to facilitate the transportation of commercial goods and support Afghan traders.

In a statement issued Saturday, the airline said it will now operate two scheduled cargo flights daily on the Kabul-Delhi route, up from one flight per day previously.

The airline said Afghan traders and commercial companies can use the daily cargo services to transport their goods quickly, safely and reliably between Afghanistan and India.

Ariana Afghan Airlines said it is working to further expand and improve its air cargo services to support trade, meet the needs of Afghan traders and facilitate Afghanistan’s exports and imports.

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