AFGHAN OFFICIAL REPORTS PAKISTAN SEEKS TO LIMIT GOODS

UNCLAS KABUL 000648 SENSITIVE SIPDIS DEPT FOR S/SRAP, SCA/FO, SCA/RA, AND SCA/A E.O. 12958: N/A TAGS: ETRD PREL AF PK SUBJECT: AFGHAN OFFICIAL REPORTS PAKISTAN SEEKS TO LIMIT GOODS DESTINED FOR AFGHANISTAN ¶1. (SBU) Afghan Ministry of Commerce and Industry (MOCI) Director of International Trade told us February 20 that the Government of Pakistan's Revenue Division has invoked a clause of its 1969 Customs Act which allows it to restrict the transit of 22 categories of goods destined to Afghanistan through Pakistan (see para 3 for list). Our MOCI contact said the wide-ranging restrictions will take effect on February 26 (fifteen days after the date of the Pakistani letter),adding that Finance Minister Omar Zakhilwal is preparing a sternly worded response to his Pakistani counterpart, Minister of Finance Tareen. Embassy Kabul will forward Zakhilwal's letter to the Department and Embassy Islamabad upon receipt. ¶2. (SBU) Comment: It is unclear what precipitated the Pakistani letter. The majority of the goods mentioned on the list are those Islamabad reportedly believes are exported to Afghanistan and smuggled back into Pakistan. Afghan traders are very concerned that the restrictions will affect their business. Business sector representatives to the Afghanistan-Pakistan Transit Trade Agreement (APTTA) who met earlier this month in Karachi told us they received no indication from their Pakistani counterparts that such restrictions were under consideration. If Islamabad indeed implements this step on February 26, it will send a major negative signal regarding the APTTA talks, not to mention adding a barrier to trade when we have been urging more liberalization. End Comment. ¶3. (U) Text of Pakistani letter follows: GOVERNMENT OF PAKISTAN REVENUE DIVISION FEDERAL BOARD OF REVENUE Islamabad, the 11th February, 2010 NOTIFICATION (CUSTOMS) S.R.O. (I)/2010.-In exercise of the powers conferred by sub-clause (ii) of clause(s) of section 2 and sub-section (2) of section 156 of the Customs Act, 1969 (IV of 1969),the Federal Government is pleased to direct that the following further amendment shall be made in its Notification No. S.R.O.566(I)/2005, dated the 6th of June, 2005, namely:- In the aforesaid Notification, after S.No.32 and the entry relating thereto, the following new serial numbers and the entries relating thereto shall be added, namely:- "33. Dyes and chemicals. ¶34. PVC and PMC materials. ¶35. Black tea (except Op-Pekoe). ¶36. Refrigerators. ¶37. Air Conditioners. ¶38. Television. ¶39. Soaps and shampoos. ¶40. Polyester metalized films. ¶41. Ball bearing. ¶42. Natural silk, natural silk yarn and natural silk fabrics. ¶43. Vegetable ghee and cooking oil ¶44. Telephone sets. ¶45. DVD and VCD players. ¶46. Microwave ovens. ¶47. Bicycles. ¶48. Hot rolled plates of high hardness ballistic protection. ¶49. Safety glass. ¶50. Wireless equipment of any kind. ¶51. BOP films. ¶52. Raw material for cigarette manufacturing industry (Filter Road, Tipping Paper, Cigarette Paper and Acetate Tow). ¶53. Stainless steel sheets, circles and coils. ¶54. Tin plates and sheets." /s/ (Munir Qureshi) Additional Secretary END QUOTE EIKENBERRY