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440610V20sr0p01ain0report0 44061vol. 2 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Report No. 44061-SAS TRADE AND TRANSPORT FACILITATION IN SOUTH ASIA Systems in Transition Volume II: Annexes June 23, 2008 Sustainable Development Unit South Asia Region ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank JIS Just-in-schedule AITD Asian Institute for Transport JIT Just-in-time Development ASYCUDA Automated System for Customs Data JNPT Jawaharlal Nehru Port Trust ATTA Afghan Transit Trade Agreement KDLP Karachi Dock Labor Board BACS Bhutan Automated Customs System KICT Karachi International Container Terminal BR Bangladesh Railways LCL Less than container load BSC Bangladesh Shipping Corporation MFA Multi-Fibre Agreement CARE Customs Administrative Reform MFN Most Favored Nation CFS Container freight station MRP Maximum Retail Price CHA Customs House Agent NHAI National Highway Authority of India Concor Container Corporation of India NMT Non-motorized transport CVD Countervailing Duty NTCIP National Trade Corridor Improvement Program CWC Central Warehousing Corporation PaCCS Pakistan Customs Computerized System DEPB Duty Entitlement Pass Book PICT Pakistan International Container Terminal DES Duty Exemption Scheme PR Pakistan Railways DFRC Duty Free Replenishment Certificate PRAL Pakistan Revenue Automation Ltd DGFT Directorate General Foreign Trade QICT Qasim International Container Terminal DRB Duty Drawback QR Quantitative Restrictions DRP Duty Rebate Procedure RMS Risk management system DWT Deadweight tonnage SAD Special Additional Duty FEU Forty-foot-equivalent-unit SAFTA South Asia Free Trade Area FCL Full container load SAPTA South Asia Preferential Trade Area FNCCI Federation of Nepalese Chambers of SCI Shipping Corporation of India Commerce and Industry GD Goods Document SME Small and medium enterprises GDP Gross Domestic Product TEU Twenty-foot-equivalent unit GOA Government of Afghanistan TRQ Tariff rate quota GOB Government of Bangladesh UNCTAD United Nations Conference on Trade and Development GOI Government of India US United States of America GOP Government of Pakistan VDC Village Development Committee ICD Inland container depot WB World Bank ICP Integrated check posts WFP World Food Program INSA Indian National Ship-owners Association WTO World Trade Organization IR Indian Railways Vice President Praful Patel, SARVP Senior Manager, Regional program Sadiq Ahmed Sector Director Constance A. Bernard Acting Sector Manager G. George Tharakan, Task Manager Marianne Kilpatrick Table of Contents ANNEX 1. TRANSPORT SYSTEMS IN SOUTH ASIA ........................................................... - 1 - 1.1 Introduction ........................................................................................................................ - 1 - 1.2 Shipping Services ...............................................................................................................- 2 - 1.3 South Asia Port Sector........................................................................................................ - 9 - 1.4 Roads and Highways ........................................................................................................ - 17 - 1.5 The Trucking Industry In South Asia ............................................................................... - 23 - 1.6 Rail Transport................................................................................................................... - 29 - 1.7 Air Transport .................................................................................................................... - 40 - ANNEX 2. INTER-REGIONAL TRADE: THE CUSTOMS SECTOR.................................... - 47 - 2.1 The Macroeconomic Context ........................................................................................... - 47 - 2.2 Customs Reform In South Asia ........................................................................................ - 48 - 2.3 Bangladesh........................................................................................................................ - 50 - 2.4 India.................................................................................................................................. - 51 - 2.6 Afghanistan, Bhutan and Nepal........................................................................................ - 57 - 2.7 Customs Facilitators ......................................................................................................... - 60 - ANNEX 3. INTER-REGIONAL TRADE: SUPPLY CHAINS AND LOGISTICS.................. - 62 - 3.2 Garments and Textiles ...................................................................................................... - 62 - 3.3 Fruit and Vegetables......................................................................................................... - 67 - 3.4 The Automotive Sector..................................................................................................... - 71 - 3.5 The Structure of the Logistics Provider Sector................................................................. - 77 - 3.6 The role of the Logistics Providers................................................................................... - 80 - ANNEX 4. INTRA-REGIONAL TRADE ................................................................................. - 94 - 4.1 Formal and Informal Trade Flows.................................................................................... - 94 - 4.2 Key Issues In Intra-Regional Trade.................................................................................. - 94 - 4.3 Bangladesh and India........................................................................................................ - 96 - 4.4 India and Nepal............................................................................................................... - 102 - 4.5 India - Pakistan ............................................................................................................... - 108 - 4.6 Afghanistan - Pakistan.................................................................................................... - 114 - 4.7 Facilitating Intra-Regional Trade ................................................................................... - 117 - ANNEX 5. TRANSIT TRADE ................................................................................................ - 123 - 5.1 Introduction .................................................................................................................... - 123 - 5.2 Afghanistan..................................................................................................................... - 124 - 5.3 Nepal............................................................................................................................... - 127 - 5.4 From Landlocked to Landlinked .................................................................................... - 136 - Tables Table 1: South Asia Exports: Main Commodity Groups ....................................................................- 1 - Table 2: Container Flows: 2005..........................................................................................................- 2 - Table 3: UNCTAD: Liner Shipping Connectivity Index....................................................................- 3 - Table 4: Hub Ports for India ................................................................................................................- 4 - Table 5: South Asia: Export Container Freight Rates.........................................................................- 6 - Table 6: South Asia: Container Shipping Times.................................................................................- 7 - Table 7: World Sea Freight Rates: Dry Bulk Carriers ........................................................................- 7 - Table 8: South Asia: Main Container Handling Ports.........................................................................- 9 - Table 9: Indicative Container Port Handling Charges .......................................................................- 12 - Table 10: South Asia Ports: Non-Container Traffic ..........................................................................- 12 - Table 11: Port Qasim: Bulk Cargo Handling Rates..........................................................................- 13 - Table 12: India Main Ports: Cargo Handling Rates ...........................................................................- 14 - Table 13: Port Dues: 2,800/TEU Vessel...........................................................................................- 16 - Table 14: India: National Highway Development Plan ....................................................................- 19 - Table 15: India: Commercial Truck Fleet and Permits......................................................................- 23 - Table 16: India: Sales of Commercial Freight Vehicles ....................................................................- 23 - Table 17: Road Freight Rates: 2002..................................................................................................- 26 - Table 18: Pakistan: Container Road Freight Rates* ..........................................................................- 26 - Table 19: Railways in South Asia......................................................................................................- 29 - Table 20: Rail Passenger/Freight
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