EXBS Afghanistan Advisor Monthly Reporting Cable ?

UNCLAS SECTION 01 OF 06 KABUL 002234

SIPDIS

SIPDIS

DEPT FOR ISN/ECC PVANSON, ACHURCH, KCROUCH AND JLCOLLINS;
CBP/INA FOR JKELLY; DOE/NNSA FOR RSTUBBLEFIELD; DOC FOR
ELOCKWOOD-SHABAT; DOT FOR APARAMESWARAN; SECDEF FOR
MHOFFMANN, FLIGHT, AND RVIERKANT

E.O. 12958: N/A
TAGS: ETTC PARM PREL KSTC KNNP AF

SUBJECT: EXBS Afghanistan Advisor Monthly Reporting Cable ?
April 2006

KABUL 00002234 001.3 OF 006


I.QSUMMARY

1.Q(U) The Border Management Initiative (BMI),spear-
headed by the Afghan Reconstruction Group (ARG),Embassy
Kabul, has an overarching objective to increase border
security and customs revenues through interagency, inter-
ministerial, and international coordination and
synchronization of reform efforts at key Border Crossing
Points (BCPs). To meet these twin objectives, Embassy
Kabul is recommending development of a transitional force
to develop and manage implementation of the BMI initiative.

2.Q (U) During this reporting period, the EXBS Advisor
for Afghanistan met with the BMI Working Group which
consists of senior level administrators from the above
mentioned organizations and the Islam Qalah Sub-Working
Group consisting of senior level administrators, planners
and advisors from the various organizations to prepare for
the deployment of the International Border Management Team
(IBMAT) to the Herat Province on the Iranian border.

3.Q (SBU) On April 11 ? 16, 2006, the IBMAT, accompanied
by officials from ARG, USAID-funded Bearing Point and the
Ministries of Interior, Finance, and Commerce, conducted a
detailed border security and customs operations assessment
in the Afghan province of Heart.

END SUMMARY

II. ITEMS OF BROAD INTEREST.


4. (SBU) The Afghan Ministries of Interior and Finance are
in the process of reviewing a Memorandum of Understanding
(MoU) dated and signed September 4, 2005 that delineates
the Areas of Responsibility (AoR) of the Afghanistan Border
Police (ABP) and Customs Police at the Customs Border
Crossing Points (BCPs). Although the Customs Police and
the ABP are part of the Ministry of Interior (MoI),the
Customs Police fall under the direction of the Ministry of
Finance (MoF) while performing their duties within the
Customs BCP facility. This crossover responsibility of the
Customs Police has created a ?turf battle? between the ABP
and the Customs Police. A recent copy of the MoU has been
translated into Dari that has been provided to the two
agencies to use as a guide. Furthermore, as a result of an
assessment for the Islam Qalah BCP project, officials from
MoI and MoF have teamed up together at the Islam Qalah BCP
to lay out their respective AoRs in an attempt to end their
disputes. MoI and MoF have agreed to promote this practice
and adhere to the MoU nation-wide.


5. (SBU) The Ministries of Commerce and Finance have
reached agreement pertaining to the ownership of BCP
property in several of the major BCPs including Islam Qalah
and Towraghundi. The land owned by the Ministry of Commerce
(MoC) is being turned over to the MoF at these locations,
affording MoF the opportunity to improve their
infrastructure at the customs facility and thereby
providing greater control and a more effective and
efficient facility to conduct customs operations. It is
hoped that these agreements will pave the way for future
cooperation between the MoC and MoF in reform efforts at
other BCPs.

III. COMPLETED ACTIONS FOR THE REPORTING PERIOD.


6. (SBU) On April 3, 2006, a meeting was held with the
Islam Qalah Sub-Working Group (IQSWG) in preparation of an

KABUL 00002234 002.3 OF 006


assessment of the Islam Qalah BCP customs operations and
border security. The IQSWG consists of representatives
from the ARG/BMI; international donors; Combined Forces
Command of Afghanistan (CFC-A); Combined Security
Transition Command of Afghanistan (CSTC-A) (formerly Office
of Security Cooperation of Afghanistan (OSC-A)); and the
Ministries of Finance, Interior, and Commerce. Items
discussed were the itinerary of the IBMAT, logistical
support, team members, GoA dignitaries attending the
assessment, and targeted assessment items of interest. The
items of interest included the examination of customs
processes and procedures, inspection and valuation of
cargo, infrastructure, personnel salaries, personnel
literacy, training, managerial capacity, immigration,
security procedures, corruption, and issues in dispute
between the Ministries of Finance, Interior, and Commerce.
Letters of authorization from the relevant ministries were
received authorizing the IBMAT access to their respective
properties and facilities.


7. (SBU) On April 10, 2006, a meeting was held with the
IQSWG to introduce group members to the USG IBMAT from
Washington, DC and familiarize the USG IBMAT with their
international partners who would be joining them during the
assessment. The members of the IBMAT included subject-
matter experts from the Department of Homeland Security
Office of Customs and Border Protection (DHS/CBP) headed by
the South Asia program manager from the Bureau of
International Security and Non-Proliferation Office of
Export Control and Cooperation (ISN/ECC),Washington, DC;
the Export Control and Related Border Security Advisor for
Afghanistan; German Police and Project Office (GPPO); and
CSTC-A Police Reform Directorate (PRD). Officials from the
Italian Guardia di Finanza and USAID Bearing Point joined
the USG IBMAT for portions of the assessment. An advisor
to the Ministry of Finance explained the status of the
Management Intervention Teams (MITs) that were installed at
the Islam Qalah BCP and the Herat Inland Container Depot
(ICD) one month prior to the assessment. The MITs were
deployed to replace managers suspected of weak performance
and possible corruption. It was intended that these MITs
prepare the two customs facilities for a cooperative and
transparent environment during the IBMAT assessment. The
IBMAT was briefed on the items discussed at the April 3,
2006 meeting and given the opportunity to have a Q&A
session prior to beginning their assessment.

IBMAT VISITS HERAT PROVINCE


8. (SBU) On April 11 ? 16, 2006, the IBMAT team, led by Ms.
Jimmie Collins, South Asia Program Manager (ISN/ECC),
traveled to Herat Province where, during their stay, they
met with DynCorp police training instructors and mentors,
Afghanistan Customs Authorities, Customs Police and the ABP
6th Brigade Commander and his staff.


9. (SBU) The IBMAT team assessed the Herat ICD; Regional
Training Center (RTC); ABP 6th Brigade HQ; Islam Qalah,
Towraghundi, and Kalatanizar BCPs. (NOTE: the Kalatanizar
crossing point is considered an ?unofficial? BCP and is not
part of the thirteen GoI priority BCPs. END NOTE). The
assessment concentrated on the detailed evaluation of human
capital, infrastructure and traffic flow, equipment and
supplies, policies and procedures, and resourcing as they
relate to Afghan border security and customs operations.
Preliminary assessment findings, in general, mirrored
findings of previous USG and international donor
assessments and studies. The findings also highlighted

KABUL 00002234 003.3 OF 006


additional issues not previously identified and that were
contributing to the lack of proper operational performance.


10. (SBU) The IBMAT assessment found deficiencies in BCP
security; proper payment of salaries; training for Customs
officials and advanced training for ABP; organizational
structure; roles & responsibilities; employee oversight;
immigration and customs procedures; resource management;
risk management; cargo processing; and revenue collection.
The IBMAT team will provide a formal report of its findings
and recommendations to interagency partners in Washington,
DC, as well as to the IQSWG.


11. (SBU) During the assessment, officials and advisors
from the Ministries of Finance, Interior, and Commerce
reached tentative agreements on disputed topics as they
toured the assessment sites.

IBMAT OUT-BRIEF AT U.S. EMBASSY


12. (SBU) On April 16, 2006, the IBMAT team provided an
out-brief to the Kabul Embassy Acting DCM, Alonzo Fulgham.
Members of the IQSWG, and representatives from USAID, Kabul
Embassy?s Economic Section, CFC-A, and CSTC-A were also
present. The team reviewed their preliminary findings,
including findings related to GoA and USG/international
donor border security and customs reform efforts. The
IBMAT team lead also provided recommendations related to
IBMAT findings with respect to ARG/BMI staffing to manage
the BMI.

IBMAT OUT-BRIEF WITH COMMANDING GENERAL


13. (SBU) On April 17, 2006, the IBMAT team out-briefed
Lieutenant General Eikenberry, Commanding General, CFC-A,
reiterating findings and recommendations as presented to
the Kabul Embassy Acting DCM. General Eikenberry commented
that the use of the reach back concept was less effective
in managing programs than having the appropriate personnel
in country. General Eikenberry and Ms. Collins
discussed in detail the potential options for in country
staffing of BMI implementation, including the methods of
integrating the on-going efforts of USG, international and
GoA reforms. General Eikenberry offered CFC-A assistance
in support of the BMI implementation team including
possibly housing the team at the CFC-A compound in Kabul.

IBMAT REPORT REQUIREMENTS


14. (SBU) On April 18, 2006, the IBMAT team compiled
assessment reports from all IBMAT members and provided a
draft report of findings and recommendations to Edward
Smith, Chief of Staff for the Afghan Reconstruction Group
and Border Management Initiative.


15. (SBU) The IBMAT team is currently in the process of
preparing a final report of its findings and
recommendations. This report will be forwarded to the
ARG/BMI Chief of Staff for submission to the IQSWG for
review and discussion on the recommended reforms to be
implemented.

IBMAT ASSESSMENT FOLLOW-UP MEETINGS


16. (SBU) On April 24, 2006, the IQSWG reviewed the draft
IBMAT findings and discussed potential implementation of
IBMAT recommendations prior to receipt of the final report.
Additional items discussed included the April 22, 2006

KABUL 00002234 004.3 OF 006


deployment to Herat of CFC-A Engineers. These engineers
were tasked with assessing the Islam Qalah and Towraghundi
BCP properties for the purpose of planning future police
and border security projects directed by CSTC-A. CSTC-A
has announced it would construct 450 border security posts
throughout Afghanistan. MoC requested better coordination
by MoF regarding tariff policies set by MoC and implemented
by MoF. (NOTE: MoC alleged that MoF has been independently
making tariff policy without consulting with MoC, which in
turn has been receiving a large number of complaints from
traders. END NOTE.)


17. (SBU) On April 25, 2006, the BMI Working Group
circulated the draft findings of the IBMAT team to its
members. Additionally, the Working Group further refined
their Sub-Working Group structure as follows:

a. IQSWG ? Combined with the Ministries of Interior and
Finance MoU SWG during the trial project period (NOTE: the
trial project is focused on the 6th ABP Brigade AoR. END
NOTE.)

b. Donor Coordination SWG ? No changes. It is focused on
collection of donor contributions and program/project
coordination amongst donors.

c. Trade Facilitation SWG ? No changes. It is intended to
coordinate efforts between the Ministries of Commerce,
Interior, Finance, and Transportation. A draft MoU between
Commerce and Finance will be prepared to address mutual
issues and interests at the BCPs to avoid overlapping and
de-confliction of AoRs.

d. Infrastructure SWG ? No change. The objective of this
SWG is to collect the functional requirements of a BCP from
the Ministries of Interior, Finance, Commerce, Agriculture,
and Transportation and the Da Afghanistan Bank (Central
Bank) to develop a site adaptable design of a model BCP.

e. Budget SWG ? This SWG is to be combined with the Metrics
SWG to identify sources and application of funds to
discover any gaps that need to be addressed.


18. (SBU) The BMI Working Group discussed the following
items of interest:

a. Strongly encourage the Ministry of Interior to
participate fully at BMI meetings and be fully engaged in
decision-making processes with other Ministries engaged
within the BMI.

b. Ministry of Finance to contact the Spanish Ambassador
regarding the consignment of Spanish subject-matter experts
to assist Customs at the Islam Qalah BCP and Herat ICD.

c. UNOPS and World Bank Customs Reform Unit (CURE) embedded
in the MoF is to prepare a short briefing for the IBMAT
team on Afghanistan Customs Department?s fast track finance
institute; bonded carrier system; bonded warehouse system;
rewards system; and other programs of interest to inform
them of activities currently underway or completed.

d. Italian Embassy to provide defined specifications of the
Guardia di Finanza technical assistance.

e. World Bank CURE acquisition of special stamp and inks to
prevent forgery of customs documents, e.g. Afghanistan
Customs Clearance Document (ACCD).

KABUL 00002234 005.3 OF 006



f. USAID Bearing Point exploring the authority of the
Deputy Minister of Finance in an effort to empower the
Deputy to fire Customs Officials.

g. U.S. Army Corp of Engineers (ACE) to deploy teams in
mid-June 2006 to conduct a reconnaissance/assessment during
seven trips to the twelve remaining major BCPs to be
completed within two and a half months.

h. Ministries agree with and will take steps to have all
cargo cleared at the BCPs and not the ICDs.

i. BMI Ministries seeking Cabinet approval to appoint the
MoF as the ?lead? Ministry having managerial oversight at
the BCPs.

j. MoC drafting the port handling/transshipment act that
will include the issuance of private licensing for
privatized port handling.

k. MoC and MoF to continue constructive dialogue on the
appropriate use of BCP land and facilities to prevent donor
funded approved projects from expiring during the current
fiscal year.

l. Ministries agreed that the collection of revenue at the
BCPs must be deposited into the GoA general treasury fund
and are seeking a Presidential decree to establish these
procedures and the establishment of an MoI and MoF budget
for the Border Police and Customs.

m. The Ministries of Commerce, Finance, and Interior are
working out agreements to resolve outstanding issues
relating to the BCP under construction at Shir Khan Bandar
on the Afghanistan and Tajikistan border.

n. BMI is establishing a timeline for MoC approval of a BCP
site-adaptable design.

o. Immediate steps to be taken include the implementation
of the border management MoU between the MoI and MoF;
development of SOPs in accordance with the MoU; training of
MoI and MoF Officers on the SOPs; and quality assurance
measures.


19. (U) TRAINING CONDUCTED DURING REPORTING PERIOD.

Nothing to report.


20. (U) EQUIPMENT DELIVERED DURING REPORTING PERIOD.

Nothing to report.


21. (U) IMMINENT TRAINING OR EQUIPMENT STATUS UPDATE.

Nothing to report.


22. (U) SIGNIFICANT DEVELOPMENTS IN EXPORT CONTROLS,
NONPROLIFERATION, OR RELATED BORDER SECURITY.

Nothing to report.


23. (U) OTHER SIGNIFICANT ISSUES/EVENTS.


1. EXBS: The Afghanistan EXBS Advisor issued invitations
to the Senior Advisor to the Minister of Commerce and to
the Director of International Transit and Trade

KABUL 00002234 006.3 OF 006


Facilitation to participate as observers at the 8th Central
Asia and Caucasus Regional Forum on Export Controls. This
conference is being held in Tbilisi, Georgia on May 16-18,

2006. Ministry representatives agreed to discuss the
inclusion of EXBS Program assistance into their five-year
plan and begin to identify the offices and ministries
within the GoA that would participate in such a program
after their return from the conference. Both delegates
agreed that they would explore the possibility of beginning
the process by instituting laws and regulations as a basis
for such a program in the immediate future.


2. In subsequent meetings with USAID and ARG, held May 8-
10, the new Director General of Customs reiterated his
preference to streamline donor assistance to customs reform
through USG support. He informed USAID and ARG officials
that the World Bank CURE project would end and support from
DfID would end in September 2006. USAID representative
informed the Director General that resources to expand
technical assistance through Bearing Point are unavailable.



20. (U) RED FLAG U ISSUES. None to report.


21. (U) Please direct any questions or comments to Barry f.
Lory, EXBS Advisor to Afghanistan; +93-070-234-236,
extension 4735; lorybf@state.gov or to Jimmie L. Collins,
South Asia Regional Program Manager, Office of Export
Control Cooperation, 202-647-1778, collinsjl2@state.gov.

NEUMANN