The Iranian Border, Islam Qala and the

UNCLAS SECTION 01 OF 02 KABUL 002410

SIPDIS

DEPARTMENT FOR SCA/A, EB/TRA
NSC FOR AHARRIMAN, AMEND
CJTF-76 FOR POLAD, CENTCOM FOR CG CFC-A
TREASURY FOR PARAMESWARAN
TRANSPORTATION FOR MODESITT

SENSITIVE
SIPDIS

E.O.12958: N/A
TAGS: ECON EAID EFIN ELTN AF
SUBJECT: The Iranian Border, Islam Qala and the
Informal Border Crossings

Summary
--------------


1. (SBU) Commercial traffic at Islam Qala, the major
border crossing between Iran and Afghanistan, has
declined significantly in the last few months,
particularly as transshipped goods destined for
Pakistan are diverted to other ports of entry. Yet,
truck traffic at the "informal" border crossings in
the desert has remained fairly stable and perhaps even
ticked slightly upwards. The theft of imported fuel
from Islam Qala storage tanks under the eyes of police
and recent attacks on border officials and police
mentors illustrate the complexity of fixing the
border. Current Border Management Initiative plans
call for a holistic approach which will significantly
reduce or eliminate the tariff "leakage" being
experienced. End Summary.

Decline in Truck Traffic at Islam Qala
--------------


2. (SBU) According to the 6th Brigade Commander,
Afghan Border Police (ABP),Colonel Ayub, since March
there has been a marked decrease of about 25% in truck
traffic entering Afghanistan at Islam Qala (IQ). The
reduced vehicle flow results principally from a
decline in transshipment business as merchants who
normally transship goods to Pakistan have changed
their routes. Revenue reported at Islam Qala over a
thirty day period covering parts of April and May
demonstrate a significantly higher "per truck"
collection and a higher total revenue collection.


3. (SBU) Ayub gave three reasons for the sudden shift
away from Islam Qala as the preferred port of entry of
goods destined for Pakistan. First, Taliban/AQ
threats that they would burn vehicles that utilize IQ
are being taken seriously. For goods having an Afghan
destination, the pressure from these anti-government
elements on truckers is to use border entry points in
Kandahar and Helmand Provinces. Second, freight
forwarders and shippers fear that U.S.-Iranian
tensions will lead to severe sanctions that would
affect the border crossings from Iran. This is more
sensitive for truckers carrying goods destined for
Pakistan than for trucks with Afghan destinations.
Third, Pakistan has reportedly lowered its tariffs
just as Afghanistan, under the Border Management
Initiative (BMI),is attempting to enforce its own
tariff rates and procedures. For example, two weeks
ago, Afghan customs began collection of a "user fee"
at IQ - a fee that had always been on the books.

The "Informal" Border Crossings
--------------


4. (SBU) Truck traffic at the "informal" border
crossings between Iran and Afghanistan (Qalatinazzar,
Checkpoint 73, etc.) remains unaffected by the
downturn at IQ. This is understandable, Ayub
believed, since almost all goods coming through at
these crossings are Iranian for the Afghan market.
Moreover, only about half of the "appropriate" customs
tariffs - compared to IQ and Herat -- is being charged
at these crossings in the belief, Ayub explained, that
collecting half of the customs tariffs is better than
nothing. Otherwise, truckers will utilize the Zaranj
border crossing in Nimroz where almost no revenue is
being collected for the GOA.

KABUL 00002410 002 OF 002




5. (SBU) Colonel Ayub has long advocated that closing
most, if not all of the crossing points - perhaps
leaving one open in Farah Province - is in the best
interest of Afghanistan by channeling commercial
traffic to the more effective official border crossing
operations. The Herat representative of the Ministry
of Foreign Affairs agrees with Ayub. Limiting the
number of border crossing sites is a component of the
Border Management Initiative. As the GOA applies more
assertive tariff collection practices at one border
post, significant truck traffic, like flowing water,
will follow the path of least resistance and divert
elsewhere.

Security
--------------


6. (SBU) In recent weeks, personal security has
become a more serious issue for those working on the
border. On May 18 a Taliban suicide bomber attacked a
convoy of U.S. civilian Border Police mentors, killing
one. Four nights later, attackers, probably tied to
smuggling, ambushed and killed the ABP chief for
Qalatinazzar in the desert on the Herat-Farah border.
According to Ayub, the young officer had no known ties
to drug lords or other dangerous factions.

Fuel Diversion
--------------


7. (SBU) In addition, there is significant "leakage"
of imported fuel from the Islam Qala fuel storage
facility. About half of the fuel offloaded at IQ from
Iranian tanker trucks destined for the Ministry of
Commerce is failing to make its way into the official
(and taxed) fuel distribution system, perhaps as much
as 10,000 lt/day. Efforts to date to halt the theft of
fuel from the IQ storage tanks have not been
successful. The Border Management Initiative is in the
process of procuring and installing secure Hesco-
concertina barriers to help improve traffic control
and eliminate theft from the fuel storage site.
Meanwhile, on May 24, an ABP policeman was killed
during a fight between two local tribes over "access"
to fuel at the storage site. Reportedly, the tribes
were claiming the remaining fuel after the Governor
(or another provincial authority) allegedly had taken
his share.


8. (SBU) Comment: Until the Border Management
Initiative fully kicks in, there will continue to be
serious deficiencies at Islam Qala within both the
Afghan Border Police and Afghan Customs. However,
this is not an Islam Qala border crossing issue alone.
Fix the customs and border security problems only at
IQ and Herat city, and "leakages" and other problems
will surface elsewhere. The BMI team has already
initiated contact with the GoA regarding steps to
close the informal border crossings.

NEUMANN