Diplomatist Magazine DIplomatist September 2018 | Page 79

SPECIAL REPORT
Indian Private Companies Area of Business
in Afghanistan
KEC
Electrical Transmission Lines
Phoenix
Consultancy in Electrical
Transmission
AIPL
Establishment of Hydro Power
Project in Helmand Province
APTECH
Computer & Management Education
GAMMON INDIA
Power Transmission Line & Power
Sub-stations
KPTL
Power Transmission Line
ANAAR GROUP
AIR INDIA GSA
Spice Jet
Aviation
Preferential Trade Agreement between India
and Afghanistan
A Preferential Trade Agreement was signed
between the two nations in March 2003 after
which India allowed substantial duty concessions,
ranging from 50 to 100 percent, to a certain
category of Afghan dry fruits. Afghanistan,
in turn, has allowed reciprocal concessions to
Indian products, including tea, sugar, cement,
and pharmaceuticals. In November 2011, India
removed basic customs duties for all SAARC
LDCs at the SAARC Summit in Male, which
provided all products from Afghanistan (except
alcohol and tobacco) duty-free access to the
Indian market. Afghanistan, as an LDC, is a
signatory to the SAFTA and is required to lower
its tariffs on all goods not on its sensitive list of
5 percent or less.
Afghanistan has also reduced its sensitive list
from 1,063 tariff lines to 850, out of a roughly
6,000 total tariff lines. Only 30 percent of the
tariff lines on Afghanistan’s sensitive list have
tariff rates above the requisite 5 percent. Under
Afghanistan’s sensitive list, the highest tariff rates
are applied on fruits, vegetables, and nuts, basic
construction materials, beverages, plants, articles
of leather, and carpets. Some other items that are
not produced in Afghanistan are also subject to
higher tariffs for revenue collection purposes,
such as tobacco, ceramic products, perfumery,
minerals, and fuel.
After Afghanistan allowed 100 percent
foreign direct investment in the sectors