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Implementation Status & Results The World Bank Report No: ISR2394 Implementation Status & Results Afghanistan Emergency Customs Modernization and Trade Facilitation Project (P083906) Operation Name: Emergency Customs Modernization and Trade Facilitation Project Stage: Implementation Seq.No: 14 Status: ARCHIVED Last Modified Date: 03-Dec-2010 Project (P083906) Public Disclosure Authorized Country: Afghanistan Approval FY: 2004 Product Line:IBRD/IDA Region: SOUTH ASIA Lending Instrument: Emergency Recovery Loan Implementing Agency(ies): Department of Customs, Ministry of Finance Key Dates Public Disclosure Copy Board Approval Date 23-Dec-2003 Original Closing Date 31-Dec-2007 Planned Mid Term Review Date Last Archived ISR Date 28-May-2010 Effectiveness Date 22-Mar-2004 Revised Closing Date 31-Dec-2010 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to: provide Islamic Republic of Afghanistan (IRA) emergency assistance to start establishing a more efficient customs and transit regime. The project will achieve this through financing improvements in (a) key customs and related transit infrastructure and communications; and (b) the capacity for customs and transit administration. This will lay the basis for a functioning customs service and facilitation of Afghanistan's international trade. The project will also finance some key emergency assistance for implementing the accompanying overall tax administration business plan. Public Disclosure Authorized Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost A TIME-SLICE OF THE AFGHANISTAN CUSTOMS DEPARTMENT'S FIVE YEAR PLAN 31.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Public Disclosure Authorized Overall Risk Rating Implementation Status Overview The developmental outcomes continue to be satisfactory. This evaluation is based on site visits and data analysis carried out by the team and the ACD to assess the status of the PDO indicators. Public Disclosure Copy Revenue soared to 766 million USD in 1388 (a 48 percent growth over 1387) of which direct Customs Duties alone were 428 million USD; when imports only increased by 23 percent. The effective collection rate is now 13 percent compared to 9 percent in the previous year. According to the Logistics Performance Index (LPI) methodology of the World Bank, in 1388, Afghanistan scores 2.24 and is ranked 143; which is seven places above last year ranking. More specifically on Customs, Afghanistan now ranks 104 before many European Page 1 of 7 Public Disclosure Authorized The World Bank Report No: ISR2394 and Asian countries (Uzbekistan, Montenegro, Turkmenistan, Moldova, Albania, Pakistan, Tajikistan and Mongolia). Not all, but a great deal of the improvement in these PDO indicators is attributable to the project investments, especially the on-going automation of Customs (through ASYCUDA). This is all the more remarkable considering that earlier achievement in terms of inter agency coordination (destined to reduce interference from Border Police into Customs matters, an MOU was signed between Finance and Interior, 2009) has proved to be fragile and which the Border Police did not abide by. Results Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Measuring ACD's Performance at the National Level. (i) Customs (i) (50-60 US$mil); (ii) (91); (iii) (i) 766 US$mil; (ii) 87.82; (iii) USD (i) (280 US$mil); (ii) (200); (iii) Public Disclosure Copy revenue (ii) Decleration per staff. (iii) Revenue/Declaration. (iv) (USD 500-600); (iv) (nil) 2,205; (iv) 302,878 T1 forms (USD 700); (iv) (50% covered) ASYCUDA Implementation Date issued & 79,065 electronic Date declarations filed through Type Unit of Measure 30-Sep-2003 ASYCUDA 31-Mar-2008 Custom Indicator Text Comment Date Comment 20-Mar-2010 Comment These numbers assume that the number of declarations has stayed the same as 1387; as well as the number of staff (this information is not available for 1388 as yet) Public Disclosure Copy Page 2 of 7 The World Bank Report No: ISR2394 Indicator Baseline Current End Target Indicator Name Value Value Value Measuring trade and transit regime. (i) Trade volume (ii) Truck release (i) 2 US$bil; (ii) Kabul ICD: 1080 (i) 6.25 US$bil; (ii) Kabul ICD (i) (5 US$bil); (ii) [Kabul ICD times (iii) Logistics Perception Index min, overall; 428 min, customs, Customs time down to less than (customs=90min) (iii) ranking Kabul airport: na; 106 min; 100 min; Towrkham: 91 percent of improvedto 130 Torkham: 39 min, Hairatan: 26 min trucks cleared in fewer than 90 Date Type Unit of Measure (iii) na mins (including customs time (iii) 31-Mar-2008 Custom Indicator Text Date ranking 143. Comment 30-Sep-2003 Date Comment 20-Mar-2010 Public Disclosure Copy Comment The release times are from last year as no new measurements were made due to insecurity. This is the LPI released this CY (2010). Afghanistan has improved by 7 points overall and as far as just Customs LPI is concerned Afghanistan is ranked at 104 which is a substantial improvement over 2007. Intermediate Results Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Customs and related transit infrastructure (i) number of facilities (i) Nil (i) 62 facilities (i) 62 facilities repaired/constructed and functionally improved Date Date Date 30-Sep-2003 20-May-2010 31-Mar-2008 Type Unit of Measure Comment Comment Comment Custom Indicator Text Targets Achieved. Public Disclosure Copy Page 3 of 7 The World Bank Report No: ISR2394 Indicator Baseline Current End Target Indicator Name Value Value Value Improved/reliable telecommunications network established to support (i) (Nil); (ii) (Nil) (i) VSAT VPN in 11 locations (i) 14; (ii) 14 modernization and reform of ACD and trade facilitation. Number of Date (Kabul HQ, Kabul ICD, Kabul Date facilities connected through (i) VSAT/VPN (ii) HF/VHF Airport, Jalalabad ICD, Torkhum, 30-Sep-2003 Herat, Islamqala, Sher Khan 31-Mar-2008 Type Unit of Measure Comment Bandar, Hairatan & Mazar-e- Comment Custom Indicator Text Sharif, Torghundi); (ii) VHF and HF radios installed 20 at sites Target Achieved Date Public Disclosure Copy 20-May-2010 Comment Targets surpassed overall. Fewer VSAT/VPN as MOF facility is no longer required. Indicator Baseline Current End Target Indicator Name Value Value Value ASYCUDA is functional and fully used by customs staff (i) Level of (i) Nil (ii) Nil (iii) Nil Transit (T1) functional on 4 major ASYCUDA covers two main trade ASYCUDA develop & implementation (ii) # of customs officials trained transit axis, 70% traffic covered: axis. to use AYSCUDA (iii) # of brokers/traders trained to use ASYCUDA Date DPS functional at 5 major locations Date 30-Sep-2003 (Kabul ICD & Airport, Herat, Type Unit of Measure Comment Kunduz/Sher Khan Bandar & 31-Mar-2008 Custom Indicator Text Jalalabad ICDs) 55% trade Comment covered by value (ii) 1000 (iii) 1200 Date 20-May-2010 Comment Targets Surpassed. Public Disclosure Copy Page 4 of 7 The World Bank Report No: ISR2394 Indicator Baseline Current End Target Indicator Name Value Value Value An effective mechanism for Standards, Metrology, and Quality Control (i) Fuels at Border (ii) ANSA (i) ANSA carrying out regular (i)Inspection mechanism in place is established (i) Quality & safety of traded/imported/exported goods (ii) established testing of POL products. More than (ii) ANSA supported by Afghan establishment of ANSA Date 400 tests performed till date (ii) Standards and Metrology Law ANSA receiving core admn & Date Type Unit of Measure 30-Sep-2003 recurrent budgetfrom MoF, most of 31-Mar-2008 Custom Indicator Text Comment the staff recruited through PRR Date Comment 20-May-2010 Public Disclosure Copy Comment Targets Achieved Indicator Baseline Current End Target Indicator Name Value Value Value Trade Facilitation initiative launched to promote & facilitate trade (i) (i) (Nil); (ii) (Nil); (iii) (Nil); (iv) (Nil) (i) same as last update (ii) APTA (i)AFPRO functional (ii)Pak-Afghan Estab. of AFPRO;(ii) # of intl. trade/transit treaties negotiated(iii)TIR Date negotiations now on second last Transit Trade Agreement (iii) Membership;(iv) trade/transit docs as per UNLK round; soft signing predicted for Membership with TIR re-activated 30-Sep-2003 Dec 2009 or Jan 2010. Uzbek- Date Type Unit of Measure Comment Afghan Rail agreement & Afghan- 31-Mar-2008 Custom Indicator Text China-Kazakhtransit agreements under process (iii) & (iv) no change Comment Date 30-Sep-2009 Comment Targets Achieved Indicator Baseline Current End Target Indicator Name Value Value Value Assistance towards accession to WTO Nil Feedback received from WTO on The Afghanistan WTO Date MFTR and action plan for WTO Memorandum of Foreign Trade accession sent to Cabinet for Regime prepared and agreed by 30-Sep-2003 approval Cabinet Type Unit of Measure Comment Date Date Custom Indicator Text 30-Sep-2009 31-Mar-2008 Comment Comment Targets Achieved Public Disclosure Copy Page 5 of 7 The World Bank Report No: ISR2394 Indicator Baseline Current End Target Indicator Name Value Value Value Reform and modernization of trucking and freight forwarding industries: Nil No change from previous update Afghan companies issuing Setting up of Trade Association for Afghan freight forwarders (AFFCO) Date Date
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