China-Afghanistan transit trade begins via Khunjerab Pass

Business

Move comes under Transports Internationaux Routiers Convention

29 August,2023 09:53 am

GILGIT (Web Desk) – As China pressing ahead with the plans to enhance its clout at global level amid geopolitical rivalry with the United States, it started trade with the landlocked Afghanistan via Pakistan.

In this connection, the first shipment of goods dispatched from Kashghar in eastern China entered Pakistan via Khunjerab Pass on Monday and would ultimately reach Kabul under the Transports Internationaux Routiers (TIR) Convention.

According to estimates, the transit route would reduce travel time by around 70 per cent and logistics costs by 30pc.

Moreover, Pakistan can be a major transit trade hub not only due to TIR but also Quadrilateral Traffic in Transit Agreement between China, Pakistan, Kyrgyzstan and Kazakhstan as well as other arrangements including Belt and Road Initiative.

Earlier in June, a cargo of goods was dispatched from Sost Dry Port to Kazakhstan through the Khunjerab Pass as part of transit trade.

The TIR system is the international customs transit system with over 66 countries using the procedure. It enables goods to move under customs control across international borders without the payment of the duties and taxes that would normally be due at importation (or exportation). A condition of the TIR procedure is that the movement of the goods must include transport by road.

Under this system, Goods move from a customs office of departure in one country to a customs office of destination in another country under cover of an internationally accepted customs transit document, the TIR carnet, which also provides a financial guarantee for the payment of the suspended duties and taxes. The guarantee system is managed by an international organisation, which is currently the International Road Transport Union (IRU).

It is works on the basis of following five main principles: