PUBLIC PRIVATE DIALOGUE Report – Herat

 

Event Date October 9th , 2019
Event Venue International Commercial Hotel, Herat
Event Topic Protecting Domestic Industries Against Dumping
Supported By World Bank Group and ACCI
Number of Participants Invited 80
Number of Participants Attended 65

 

On October 9th, 2019, the Executive Committee on Private Sector Development (PriSEC) organized its 2nd round of Public Private Dialogue (PPD) events in Herat province on Protecting Domestic Industries Against Dumping. For better coordination, the Secretariat managed the event in collaboration with ACCI. Representatives from the government, private sector, and international partners were invited to attend.

 

Objectives:

  • Assessing and identifying the effect of dumping on Herat’s domestic industries
  • Raising awareness of dumping and its effects
  • Raising awareness of PriSEC and its achievements
  • Finding solutions to the challenges of dumping in Herat

 

Agenda for the Event:

  • Speeches by the participants
  • Presentation on PriSEC
  • Presentation on dumping in Herat
  • Panel discussion
  • Group work

 

Responsibility for event coordination and facilitation amongst the ACE and PriSEC team members was based on the relevancy of the topic to relevant PriSEC and ACE team members and PriSEC Working Groups. Accordingly, the following representatives attended the event from Kabul:

  • Fahima Zarbafiyan – Technical Advisor at PriSEC Secretariat
  • Lutforahman Naseer Rahyab– Technical Advisor at PriSEC Secretariat
  • Baraimal Jerian– Director of Trade Policy at the MoIC
  • Najma Qurbani– PriSEC Consultant at ACE
  • Akbar Danish – PriSEC Consultant at ACE

 

Event Management:

Facilitator: Ahmad Farid Farzam (Lecturer at Herat University)

Panelists:

  • Naheed Rahmati, Director, Herat Economy Directorate
  • Baraimal Jerian, Director, Trade Policy – MoIC
  • Hamed Shayan, Deputy Director of Herat Transport Directorate
  • Ghulam Nabi Rawan, Warehouse Officer, Herat Custom Office
  • Sayed Khalil Qatali, Deputy, Herat Mine and Industry Chamber
  • Ahmad Sayed Siddiqi, Deputy, Chamber of Commerce and Investment

 

Event Participants:

65 individuals participated in the event, including representatives from local industries, traders of private sector, the government, and civil society.

 

Participants Private Sector Civil Society
Deputy for the Governor Chambers of Commerce and Investment Civil Society Members
Representative from Ministry of Commerce and Industry Women’s Chambers of Commerce University Lecturers
Department of Economic International Chambers of Commerce Media Representatives
Provincial Finance Directorate(Mostofiat) Chambers of Mine and Industries
Department of Agriculture and Livestock Federation of Afghanistan Craftsmen and Traders
Department of Commerce and Industry Domestic industrialists
Custom Department Traders( Export and Import)
Department of Agriculture and Livestock Azizi Bank
Transport Department
PriSEC
18 40 7

 

Key issues and challenges addressed:

  • There are no regulation/law for taking anti-dumping measures
  • Administrative Corruption/Bureaucracy in particular at the Herat Customs offices for example:
    • Disappearance of lasing from the custom,
    • Usage of a single truck plate number for different trucks in order to import unregistered commodities,
    • Delayed document processing and prolonged bureaucracy for the purpose of bribery
    • Lack of institutional memory due to high turnover rate, which also results in lengthy administrative process
    • Herat custom is located close to the Iran border, and this has caused lower access and weak control for the traders of their goods
  • All industries are faced with dumping but medicine, beverages, washing and cleaning liquids, carpet industry and construction material industry have been particularly affected,
  • High tariffs and delay on import of raw material such as plastic glass in the Herat custom office lead to high cost of domestic production in the area, despite that the tariff rate has been reduced to 0.1% since 5 months ago. However, the 30% customs charge still apply.
  • Charging fees by illegal checkpoints in the intercity highways by both the government and insurgents groups
  • Poor government support to the private sector on awareness programs related to laws and regulations/procedures, complicated tax paying system, high corruption rates, poor rule of law, lack of protective measures against dumping and less support for the exporting causing private sector deviating from the formal economy
  • Importing of goods illegally due to corruption caused at custom and the border police, and existence of weak infrastructure
  • Declining of demand for domestic products due to lack of support by the BMOs and the government
  • High security threats for the business community such as kidnapping and robbery
  • Infrastructure challenges like lack of proper electricity, transportation facilities, and advanced machineries at the industrial park
  • Dysfunctionality of air cargo facilities for the exports from Herat

 

Key messages, outcomes, and recommendations:

  • Follow up by PriSEC on the finalization of the anti-dumping law approval and its endorsement by the Cabinet and Parliament
  • Establish the Trade Defense Office (TDO) at MoIC to carry out research and collect information on the impact of dumping on domestic industries
  • Increase custom tariffs on the imported Iranian products that are substitute to domestic goods/products in Herat
  • Expedite anti-corruption reforms and initiatives, especially at customs such as simplify declaration process, implement the approved regulations and procedures on reducing tariff rate that were approved by national tariff committee
  • Increase the quality of domestic products by establishing and providing existing laboratories with modern equipment to improve products’ quality
  • Raise awareness on the amendments to the laws, regulations, and procedures associated with the private sector by government, PriSEC and international partner
  • Conduct media awareness campaigns to promote consumption and use of domestic products within the country
  • Implement reforms and increase monitoring activities at customs and other relevant institutions like border police to prevent imports of illegally imported goods
  • The government and donor agencies to provide subsidies to local producers and traders
  • Decrease custom tariffs on the import of raw materials for the domestic industries
  • Lower electricity tariffs on the domestic industries
  • Establish the air corridor services in the Heart Airport

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