EXBS Afghanistan Advisor Monthly Reporting Cable -

UNCLAS KABUL 002932

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 -
May 2006


I. SUMMARY


1. (U) The Border Management Initiative (BMI) has
identified immediate needs at the Islam Qalah Border
Crossing Point (BCP). Working with Afghan ministries, CFC-
A, CSTC-A, USAID/Bearing Point and international donors, BMI
has identified areas of concern that are being addressed
within the time and funding constraints for short term
improvements, i.e. traffic flow and control; BCP and
personnel security; resource management; cargo inspection
and processing; and working conditions. Some minor changes
are already showing signs of increased revenue generation by
the Afghanistan Customs Department (ACD).


2. (U) The Ministries of Finance (MoF) and Interior (MoI)
have agreed to the terms of a Memorandum of Understanding
(MoU) and have settled long-running disputes of their
respective Areas of Responsibility (AoR). Other disputes
between the Ministries of Finance, Agriculture, and Commerce
relating to BCP property ownership are being addressed in
favor of moving forward with donor sponsored construction
projects. BMI is in the process of identifying the
restrictions imposed by the Ministry of Foreign Affairs for
new construction projects at the BCPs on the Iranian border
based on Afghan and Iranian disputed lines of demarcation.


3. (U) BMI is addressing the lack of training for ACD
personnel with ACD, World Bank/CURE, UNOPS, USAID/Bearing
Point and DfID/ASI. Efforts are underway to identify
training sites; trainers; required curricula; training
programs; and donor support. The ACD is moving forward to
substantially increase their workforce and professionalize
their staff by ending a recruitment ban and initiating a
selective recruiting program.


4. (U) BMI is moving forward with identifying gaps in the
Afghan reform process through better donor coordination
processes occurring within the BMI Sub-Working Groups (SWG)
recently developed by BMI to address specific issues amongst
the varied SWGs strategically staffed by subject-matter
experts. These SWGs identify and recruit additional donors
as they are brought under the BMI umbrella to effectively
and efficiently perform their tasks in coordination with
donors whose projects harmonize with BMI objectives.

END SUMMARY

II. ITEMS OF BROAD INTEREST.


5. (U) The Afghanistan Reconstruction Group's (ARG),
Border Management Initiative in conjunction with its
partners, the MoF ACD, MoI Afghan Border Police (ABP),USAID
contractor Bearing Point, CSTC-A Police Reform Directorate
(PRD),and DynCorp mentors have begun to make BCP security
enhancements that provide better control of human and
vehicular traffic and prevent unauthorized personnel from
entering Immigration and Customs processing areas. Customs
formalities were sometimes undertaken by individuals not
authorized or licensed to do so. This resulted in crowds of
unauthorized clients in the Customs Verification and
Assessment (of goods) Section that interrupted
administrative discipline and intimidated the Customs
authorities. These control measures have increased the
efficiency and security of traffic moving through the new
Customs processes by reducing unauthorized outside
influences detrimental to the transparency, accuracy, and
efficiency of those processes. Additional work is being
planned to increase security by U.S. engineers with the

installation of additional barriers, fencing, and lighting
of the Customs cargo processing areas. Efforts are underway
to repair road surfaces within the BCP facility to further
facilitate the movement of commercial traffic. These
immediate needs are being addressed prior to the anticipated
construction of a more permanent facility later this year.


6. (U) The ACD Herat Inland Container Depot has cooperated
with the Customs Police Commander to secure the entire
perimeter of the facility by installing security lighting on
the boundary wall closely monitored by manned guard posts.
The role of the Customs Police Officer has been defined in
meetings between the Customs Authorities and the Customs
Police and the importance of securing national benefits and
public assets has been impressed on Afghan officials.
Furthermore, all Customs personnel, clients, and day
laborers are being searched by Customs Police before being
allowed on the Customs premises. Since that time, there
have been no reports of theft or the tampering of goods
within control of the Customs facility.


7. (SBU) For continued economic development and increased
capability, a Government of Afghanistan (GoA) National
Strategy, supported by the International Community and a
Border Management Task Force (BMTF) will bring the GoA into
compliance within World Trade Organization standards. BMI
is working with the US Embassy to assist in the following
actions:

U.S. / International / Afghanistan: Formalize a National
Border Strategy by encouraging President Karzai to appoint a
"Lead Agent". This may require further Ambassadorial level
engagement to support the ARG and the MoF in proposing this
course of action. Appointment and empowerment of a single
"Lead Agent" could facilitate implementation of a National
Strategy encouraging international donors to make the best
use of their often-limited contributions.

BMI Donors Conference: This conference would bring together
the GoA and international partners to better identify
quantifiable and deliverable objectives on all 13 BCPs and
coordinate future planning and funding of BCP reformation.

Subject Matter Experts/Mentors: International "honest
brokers" from the U.S. and international partners would be
deployed at BCPs and contracted by the GoA. The deployment
of trusted MoF Management Intervention Teams would be
continued, possibly in combination with foreign "honest
brokers."

U.S. Actions

Support a future "Lead Agent" concept by helping to develop
a National Strategy that addresses security, health,
agriculture, immigration, anti-smuggling, and customs
revenue. Concurrently, BMI could assist the "Lead Agent" to
implement this National Strategy by offering the assistance
of BMTF subject matter experts.

U.S. Army Corps of Engineers to deploy teams over next two
and a half months to remaining 12 BCPs for infrastructure
assessments.

III. COMPLETED ACTIONS FOR THE REPORTING PERIOD


8. (SBU) On May 18, 2006 representatives from the Afghan
Ministries of Interior and Finance traveled to the Islam
Qalah BCP to discuss the MoU agreed to by both parties that

delineates the Areas of Responsibility (AoR) of the ABP and
Customs Police at the BCP. Although the Customs Police and
the ABP are part of the MoI, the Customs Police fall under
the direction of the MoF while performing their duties
within the Customs BCP facility. The success of this
meeting has resulted in the proposed return of the Customs
Police to the Islam Qalah BCP after an absence of eight
months. The imminent return of the Customs Police will
enable both Ministries to enhance security at the BCP by
managing their human resources more efficiently and making
better use of experienced Customs personnel.


9. (U) In March 2006, the ACD's Management Intervention Team
(MIT) initiative installed new managers at the Islam Qalah
BCP and the Herat ICD displacing permanently assigned
managers suspected of inadequate performance. The resulting
progress in proper cargo processing procedures has been
improved by ensuring that the original invoices, packing
lists, and other Customs documents are submitted to the
proper Customs officials. These officials have improved
their procedures for verifying details on shipping
documents, confirming that conveyance cargo seals and goods
are not broken or tampered with, and ensuring that all goods
are unloaded and accounted for when transferred from one
conveyance to another. There has been a serious lack of
cargo inspections for several reasons, but the new managers
have taken steps to rectify the situation in part by
ensuring transit documents are registered with Customs and
checked against the cargo seals. These managers are
instilling in the employees the need to target cargo
suspected of being mislabeled or not manifested. Recently,
spare car parts were discovered concealed within scrap metal
shipments that were previously overlooked, robbing the GoA
of revenue due. These practices, however small and simple,
have contributed to better performance and greater revenue
generation.


10. (U) Inadequate working conditions at the BCP are being
addressed to increase work product by removing Customs
authorities from cramped and dysfunctional offices.
Improvements to the Customs document processing area last
year lacked proper office equipment from which to conduct
assigned tasks. Lack of a HVAC system required for healthy
and comfortable working conditions prevented the Customs
staff from occupying the newly refurbished area. These
deficiencies are being rectified to promote a more effective
and efficient work force. Although a newly constructed BCP
facility is being planned, the project is not expected to
begin before the end of this year. In the interim these
immediate needs are being fulfilled to avoid interruption of
Customs and Immigration processes in yet another attempt to
increase Customs revenue.


11. (SBU) The Ministries of Finance, Commerce, and
Agriculture have begun addressing disputed land ownership
that has hampered the timely installation of badly needed
infrastructure and stalled donor sponsored projects. The
Ministry of Agriculture has relinquished ownership of land
at the Islam Qalah BCP but has refused thus far to turn over
other parcels of land at other BCPs that are crucial to
building properly functional Customs facilities. The
Ministry of Commerce has agreed to vacate a rail yard at the
Towraghundi BCP allowing the construction of badly needed
Customs facilities to proceed. The Ministries of Commerce,
Finance, and Interior have also resolved disputed land
ownership and areas of operation at the Shir Khan Bandar
BCP.



12. (SBU) The ARG/BMI Chief of Staff has established
dialogue between the Ministries of Finance and Foreign
Affairs to avert any delays in the planned construction of a
new Islam Qalah BCP. The issue centers on Iranian and Afghan
undefined lines of demarcation that have been in dispute.
The Ministry of Foreign Affairs (MFA) has placed a
moratorium on any new construction that would signal to the
Iranians encroachment by the Afghans onto the disputed
territory. The MFA has indicated that this dispute will not
be resolved anytime in the near future and therefore
requires that only the construction of temporary structures
be allowed. However, the Ministry of Finance is being
encouraged to explore with the MFA alternative locations
adjacent to disputed land areas where permanent facilities
may be placed.


13. (SBU) On May 22, 2006 the EXBS Advisor met with UNOPS,
GPPO, and the Italian DCM to discuss ACD's training strategy
for Customs Police and authorities. The Training
Coordination Unit (TCU) made up of UNOPS, World Bank CURE,
DfID/ASI, and ACD are in the process of developing a
comprehensive training program and capacity development
initiatives, which include the following:

Establishment of a training coordination team of ACD
Officers who would take on the task of organizing,
coordinating and managing training activities in the future.
Coordination and management of leadership training
through the Accelerated Development Project (six months of
Foreign Training for cadre officers).
Donor and Stakeholder coordination for implementation
of the customs technical and competency development
programs. Resource location and coordination for
implementing the programs as planned by the ACD.
Organizational change and ownership would be
institutionalized.
Capacity building across all customs functional units
including;(a) Core customs, (b) Managerial/ Administrative
skills, (c) Equipment handling and management, and (d)
ASYCUDA/EUROTRACE, etc. would be coordinated for
implementation in all regional centers.
Coordination and organization of International Customs
(including liaison with the `International Customs' section)
and trade training programs for officers. Organize
WCO/WTO/ECO related training activities for the ACD.
Coordinate training programs for clients and
stakeholders (including brokers, traders, lawyers etc.).
Coordinate setting up, operation and functioning of a
well equipped `Customs Academy for Staff Training' (CAST).
Consolidation of all capacity development and training
activities/materials at the ACD at the unit for future
organizational needs.
Dissemination of training materials and publications to
the customs offices and all concerned.
Feedback systems would be in place for coordinating
with trainers/institutions to adapt courses
(National/International) in light of ACD needs.

The TCU is in discussion with the Italian Embassy to field
an Italian Customs Guardia di Finanza official in Kabul and
four or five officials in Herat Province. These Customs
trainers are planning to interface with ACD as Customs
trainers and adapt their courses of instruction to Afghan
curricula.


14. (U) The ACD was operating under a recruitment ban
imposed by the MoF until the Afghan Parliament completed the
restructuring of Ministry officers. Since the recent

lifting of the ban, the ACD is moving forward by recruiting
qualified managerial candidates. As a result, the TCU has
begun the Accelerated Development Project (six months of
Foreign Training for cadre officers) and have contracted
with Pakistan Custom Authorities to train 25 new recruits in
Islamabad free of charge. The ACD will be responsible for
per diem and travel. The six month course will include
internationally recognized courses, English training, and On-
the-Job-Training (OJT) on the Afghan/Pakistan border.
After successful completion of this training the recruits
will return to Kabul for two additional months of training
on the Afghan Customs Code, laws and regulations. The
Afghanistan EXBS Advisor has consulted with the Tajikistan
EXBS Advisor to explore a similar training program with the
Tajikistan Customs Authorities. The Tajikistan Advisor met
with the Tajik Minister of State Revenues and Duties
(Customs) who was very open to the idea and offered to
include the Afghan officials in the curriculum development.
The Minister is also very interested in conducting cross
border cooperation which he characterized as "non-
existent". He feels close coordination and cooperation
between all border countries will enhance trade and
relations. The ACD is considering the offer.


15. (SBU) Since the establishment by BMI of Sub-Working
Groups (SWGs) that specifically target diverse issues of
reform, much progress has been made in the coordination of
the varied projects and procedures of the donor community.
For example, the Infrastructure SWG has brought together
subject-matter experts that have identified and culled their
respective projects to efficiently and effectively
administer their respective requirements thus avoiding
duplication and filling any existing gaps. Likewise, the
Donor SWG has been instrumental in bringing the donor
community together and identifying the gaps and overlaps of
their missions. This SWG is easily assessable to newcomers
who want to integrate their programs with others. For
example, the Japanese have begun coordinating their efforts
on DOHA-II projects with Border Management and Drug Action
Programmes in Central Asia (BOMCA) and the European
Commission on the Afghan border with Tajikistan. Other SWGs
concerned with budgets, metrics, and trade facilitation are
also experiencing progress.


16. (U) TRAINING CONDUCTED DURING REPORTING PERIOD.

Nothing to report.


17. (U) EQUIPMENT DELIVERED DURING REPORTING PERIOD.

Nothing to report.


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

Nothing to report.


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

Nothing to report.


20. (U) OTHER SIGNIFICANT ISSUES/EVENTS.


1. EXBS: The Afghanistan EXBS Advisor met with the
Director of International Transit and Trade Facilitation and
Senior Advisor to the Minister of Commerce after his return
from the 8th Central Asia and Caucasus Regional Forum on
Export Controls conference held in Tbilisi, Georgia on May


16-18, 2006. The Minister's Advisor was very complementary
of the conference and has offered to assist in identifying
the Afghan Ministries and the particular roles they will
play in the establishment of an EXBS program in Afghanistan.
The Advisor suggested that the EXBS Program be explained at
a forum to GoA officials who would be responsible for the
respective components of the Program. This step in the
process will be a prelude to identifying the appropriate
order of program areas to be phased in congruent with
existing and developing Afghan programs. The EXBS Advisor
has met with the World Bank CURE representative embedded
with the Ministry of Finance who agreed with the Director
General of ACD to include the EXBS Program in the Afghan
Five Year Plan presently under revision.


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


22. (U) Please direct any questions or comments to Barry F.
Lory, EXBS Advisor to Afghanistan; +93-070-073-652,
extension 4836; 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