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PP RUEHWEB

DE RUEHBUL #2932/01 1791102
ZNR UUUUU ZZH
P 281102Z JUN 06
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 1091
INFO RUCNEXC/ECRBS COLLECTIVE
RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHZG/NATO EU COLLECTIVE
RUCNIRA/IRAN COLLECTIVE
RUEKJCS/JOINT STAFF WASHDC
RUCNDT/USMISSION USUN NEW YORK 2639
RUEHGV/USMISSION GENEVA 6090
RUEHUNV/USMISSION UNVIE VIENNA 1464
RUEATRS/DEPT OF TREASURY WASHDC
RHEHAAA/NSC WASHDC
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMFIUU/DEPT OF ENERGY WASHDC
RHFJUSC/US CUSTOMS SERVICE WASHDC
RUEKJCS/SECDEF WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS KABUL 002932 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR ISN/ECC PVANSON, ACHURCH, KCROUCH AND JLCOLLINS; 
CBP/INA FOR JKELLY; DOE/NNSA FOR RSTUBBLEFIELD; DOC FOR 
ELOCKWOOD-SHABAT; DOT FOR APARAMESWARAN; SECDEF FOR 
MHOFFMANN, FLIGHT, AND RVIERKANT 
 
E.O. 12958:  N/A 
TAGS: ETTC PARM PREL KSTC KNNP AF
 
SUBJECT: EXBS Afghanistan Advisor Monthly Reporting Cable - 
May 2006 
 
¶I.   SUMMARY 
 
¶1.   (U) The Border Management Initiative (BMI) has 
identified immediate needs at the Islam Qalah Border 
Crossing Point (BCP).  Working with Afghan ministries, CFC- 
A, CSTC-A, USAID/Bearing Point and international donors, BMI 
has identified areas of concern that are being addressed 
within the time and funding constraints for short term 
improvements, i.e. traffic flow and control; BCP and 
personnel security; resource management; cargo inspection 
and processing; and working conditions.  Some minor changes 
are already showing signs of increased revenue generation by 
the Afghanistan Customs Department (ACD). 
 
¶2.    (U) The Ministries of Finance (MoF) and Interior (MoI) 
have agreed to the terms of a Memorandum of Understanding 
(MoU) and have settled long-running disputes of their 
respective Areas of Responsibility (AoR).  Other disputes 
between the Ministries of Finance, Agriculture, and Commerce 
relating to BCP property ownership are being addressed in 
favor of moving forward with donor sponsored construction 
projects.  BMI is in the process of identifying the 
restrictions imposed by the Ministry of Foreign Affairs for 
new construction projects at the BCPs on the Iranian border 
based on Afghan and Iranian disputed lines of demarcation. 
 
¶3.    (U) BMI is addressing the lack of training for ACD 
personnel with ACD, World Bank/CURE, UNOPS, USAID/Bearing 
Point and DfID/ASI.  Efforts are underway to identify 
training sites; trainers; required curricula; training 
programs; and donor support.  The ACD is moving forward to 
substantially increase their workforce and professionalize 
their staff by ending a recruitment ban and initiating a 
selective recruiting program. 
 
¶4.    (U) BMI is moving forward with identifying gaps in the 
Afghan reform process through better donor coordination 
processes occurring within the BMI Sub-Working Groups (SWG) 
recently developed by BMI to address specific issues amongst 
the varied SWGs strategically staffed by subject-matter 
experts.  These SWGs identify and recruit additional donors 
as they are brought under the BMI umbrella to effectively 
and efficiently perform their tasks in coordination with 
donors whose projects harmonize with BMI objectives. 
 
END SUMMARY 
 
II. ITEMS OF BROAD INTEREST. 
 
¶5.   (U) The Afghanistan Reconstruction Group's (ARG), 
Border Management Initiative in conjunction with its 
partners, the MoF ACD, MoI Afghan Border Police (ABP), USAID 
contractor Bearing Point, CSTC-A Police Reform Directorate 
(PRD), and DynCorp mentors have begun to make BCP security 
enhancements that provide better control of human and 
vehicular traffic and prevent unauthorized personnel from 
entering Immigration and Customs processing areas.  Customs 
formalities were sometimes undertaken by individuals not 
authorized or licensed to do so. This resulted in crowds of 
unauthorized clients in the Customs Verification and 
Assessment (of goods) Section that interrupted 
administrative discipline and intimidated the Customs 
authorities.   These control measures have increased the 
efficiency and security of traffic moving through the new 
Customs processes by reducing unauthorized outside 
influences detrimental to the transparency, accuracy, and 
efficiency of those processes.  Additional work is being 
planned to increase security by U.S. engineers with the 
 
installation of additional barriers, fencing, and lighting 
of the Customs cargo processing areas.  Efforts are underway 
to repair road surfaces within the BCP facility to further 
facilitate the movement of commercial traffic.  These 
immediate needs are being addressed prior to the anticipated 
construction of a more permanent facility later this year. 
 
¶6.   (U) The ACD Herat Inland Container Depot has cooperated 
with the Customs Police Commander to secure the entire 
perimeter of the facility by installing security lighting on 
the boundary wall closely monitored by manned guard posts. 
The role of the Customs Police Officer has been defined in 
meetings between the Customs Authorities and the Customs 
Police and the importance of securing national benefits and 
public assets has been impressed on Afghan officials. 
Furthermore, all Customs personnel, clients, and day 
laborers are being searched by Customs Police before being 
allowed on the Customs premises.  Since that time, there 
have been no reports of theft or the tampering of goods 
within control of the Customs facility. 
 
¶7.   (SBU)  For continued economic development and increased 
capability, a Government of Afghanistan (GoA) National 
Strategy, supported by the International Community and a 
Border Management Task Force (BMTF) will bring the GoA into 
compliance within World Trade Organization standards.  BMI 
is working with the US Embassy to assist in the following 
actions: 
 
U.S. / International / Afghanistan: Formalize a National 
Border Strategy by encouraging President Karzai to appoint a 
"Lead Agent".  This may require further Ambassadorial level 
engagement to support the ARG and the MoF in proposing this 
course of action.  Appointment and empowerment of a single 
"Lead Agent" could facilitate implementation of a National 
Strategy encouraging international donors to make the best 
use of their often-limited contributions. 
 
BMI Donors Conference: This conference would bring together 
the GoA and international partners to better identify 
quantifiable and deliverable objectives on all 13 BCPs and 
coordinate future planning and funding of BCP reformation. 
 
Subject Matter Experts/Mentors: International "honest 
brokers" from the U.S. and international partners would be 
deployed at BCPs and contracted by the GoA.  The deployment 
of trusted MoF Management Intervention Teams would be 
continued, possibly in combination with foreign "honest 
brokers." 
 
U.S. Actions 
 
Support a future "Lead Agent" concept by helping to develop 
a National Strategy that addresses security, health, 
agriculture, immigration, anti-smuggling, and customs 
revenue.  Concurrently, BMI could assist the "Lead Agent" to 
implement this National Strategy by offering the assistance 
of BMTF subject matter experts. 
 
U.S. Army Corps of Engineers to deploy teams over next two 
and a half months to remaining 12 BCPs for infrastructure 
assessments. 
 
III. COMPLETED ACTIONS FOR THE REPORTING PERIOD 
 
¶8.     (SBU) On May 18, 2006 representatives from the Afghan 
Ministries of Interior and Finance traveled to the Islam 
Qalah BCP to discuss the MoU agreed to by both parties that 
 
delineates the Areas of Responsibility (AoR) of the ABP and 
Customs Police at the BCP.  Although the Customs Police and 
the ABP are part of the MoI, the Customs Police fall under 
the direction of the MoF while performing their duties 
within the Customs BCP facility.  The success of this 
meeting has resulted in the proposed return of the Customs 
Police to the Islam Qalah BCP after an absence of eight 
months.  The imminent return of the Customs Police will 
enable both Ministries to enhance security at the BCP by 
managing their human resources more efficiently and making 
better use of experienced Customs personnel. 
 
¶9. (U) In March 2006, the ACD's Management Intervention Team 
(MIT) initiative installed new managers at the Islam Qalah 
BCP and the Herat ICD displacing permanently assigned 
managers suspected of inadequate performance. The resulting 
progress in proper cargo processing procedures has been 
improved by ensuring that the original invoices, packing 
lists, and other Customs documents are submitted to the 
proper Customs officials.  These officials have improved 
their procedures for verifying details on shipping 
documents, confirming that conveyance cargo seals and goods 
are not broken or tampered with, and ensuring that all goods 
are unloaded and accounted for when transferred from one 
conveyance to another. There has been a serious lack of 
cargo inspections for several reasons, but the new managers 
have taken steps to rectify the situation in part by 
ensuring transit documents are registered with Customs and 
checked against the cargo seals.  These managers are 
instilling in the employees the need to target cargo 
suspected of being mislabeled or not manifested.  Recently, 
spare car parts were discovered concealed within scrap metal 
shipments that were previously overlooked, robbing the GoA 
of revenue due.  These practices, however small and simple, 
have contributed to better performance and greater revenue 
generation. 
 
¶10.  (U) Inadequate working conditions at the BCP are being 
addressed to increase work product by removing Customs 
authorities from cramped and dysfunctional offices. 
Improvements to the Customs document processing area last 
year lacked proper office equipment from which to conduct 
assigned tasks.  Lack of a HVAC system required for healthy 
and comfortable working conditions prevented the Customs 
staff from occupying the newly refurbished area.  These 
deficiencies are being rectified to promote a more effective 
and efficient work force.  Although a newly constructed BCP 
facility is being planned, the project is not expected to 
begin before the end of this year.  In the interim these 
immediate needs are being fulfilled to avoid interruption of 
Customs and Immigration processes in yet another attempt to 
increase Customs revenue. 
 
¶11.  (SBU) The Ministries of Finance, Commerce, and 
Agriculture have begun addressing disputed land ownership 
that has hampered the timely installation of badly needed 
infrastructure and stalled donor sponsored projects.  The 
Ministry of Agriculture has relinquished ownership of land 
at the Islam Qalah BCP but has refused thus far to turn over 
other parcels of land at other BCPs that are crucial to 
building properly functional Customs facilities.  The 
Ministry of Commerce has agreed to vacate a rail yard at the 
Towraghundi BCP allowing the construction of badly needed 
Customs facilities to proceed.  The Ministries of Commerce, 
Finance, and Interior have also resolved disputed land 
ownership and areas of operation at the Shir Khan Bandar 
BCP. 
 
 
¶12.  (SBU) The ARG/BMI Chief of Staff has established 
dialogue between the Ministries of Finance and Foreign 
Affairs to avert any delays in the planned construction of a 
new Islam Qalah BCP. The issue centers on Iranian and Afghan 
undefined lines of demarcation that have been in dispute. 
The Ministry of Foreign Affairs (MFA) has placed a 
moratorium on any new construction that would signal to the 
Iranians encroachment by the Afghans onto the disputed 
territory. The MFA has indicated that this dispute will not 
be resolved anytime in the near future and therefore 
requires that only the construction of temporary structures 
be allowed.  However, the Ministry of Finance is being 
encouraged to explore with the MFA alternative locations 
adjacent to disputed land areas where permanent facilities 
may be placed. 
 
¶13.  (SBU) On May 22, 2006 the EXBS Advisor met with UNOPS, 
GPPO, and the Italian DCM to discuss ACD's training strategy 
for Customs Police and authorities.  The Training 
Coordination Unit (TCU) made up of UNOPS, World Bank CURE, 
DfID/ASI, and ACD are in the process of developing a 
comprehensive training program and capacity development 
initiatives, which include the following: 
 
      Establishment of a training coordination team of ACD 
     Officers who would take on the task of organizing, 
     coordinating and managing training activities in the future. 
      Coordination and management of leadership training 
     through the Accelerated Development Project (six months of 
     Foreign Training for cadre officers). 
    Donor and Stakeholder coordination for implementation 
of the customs technical and competency development 
programs. Resource location and coordination for 
implementing the programs as planned by the ACD. 
      Organizational change and ownership would be 
     institutionalized. 
      Capacity building across all customs functional units 
     including;(a) Core customs, (b) Managerial/ Administrative 
     skills, (c) Equipment handling and management, and (d) 
     ASYCUDA/EUROTRACE, etc. would be coordinated for 
     implementation in all regional centers. 
      Coordination and organization of International Customs 
     (including liaison with the `International Customs' section) 
     and trade training programs for officers. Organize 
     WCO/WTO/ECO related training activities for the ACD. 
      Coordinate training programs for clients and 
     stakeholders (including brokers, traders, lawyers etc.). 
      Coordinate setting up, operation and functioning of a 
     well equipped `Customs Academy for Staff Training' (CAST). 
    Consolidation of all capacity development and training 
activities/materials at the ACD at the unit for future 
organizational needs. 
      Dissemination of training materials and publications to 
     the customs offices and all concerned. 
      Feedback systems would be in place for coordinating 
     with trainers/institutions to adapt courses 
     (National/International) in light of ACD needs. 
 
The TCU is in discussion with the Italian Embassy to field 
an Italian Customs Guardia di Finanza official in Kabul and 
four or five officials in Herat Province.  These Customs 
trainers are planning to interface with ACD as Customs 
trainers and adapt their courses of instruction to Afghan 
curricula. 
 
¶14.  (U) The ACD was operating under a recruitment ban 
imposed by the MoF until the Afghan Parliament completed the 
restructuring of Ministry officers.  Since the recent 
 
lifting of the ban, the ACD is moving forward by recruiting 
qualified managerial candidates.  As a result, the TCU has 
begun the Accelerated Development Project (six months of 
Foreign Training for cadre officers) and have contracted 
with Pakistan Custom Authorities to train 25 new recruits in 
Islamabad free of charge.  The ACD will be responsible for 
per diem and travel.  The six month course will include 
internationally recognized courses, English training, and On- 
the-Job-Training (OJT) on the Afghan/Pakistan border. 
After successful completion of this training the recruits 
will return to Kabul for two additional months of training 
on the Afghan Customs Code, laws and regulations.  The 
Afghanistan EXBS Advisor has consulted with the Tajikistan 
EXBS Advisor to explore a similar training program with the 
Tajikistan Customs Authorities.  The Tajikistan Advisor met 
with the Tajik Minister of State Revenues and Duties 
(Customs) who was very open to the idea and offered to 
include the Afghan officials in the curriculum development. 
The Minister is also very interested in conducting cross 
border cooperation which he characterized as "non- 
existent".  He feels close coordination and cooperation 
between all border countries will enhance trade and 
relations. The ACD is considering the offer. 
 
¶15.  (SBU)  Since the establishment by BMI of Sub-Working 
Groups (SWGs) that specifically target diverse issues of 
reform, much progress has been made in the coordination of 
the varied projects and procedures of the donor community. 
For example, the Infrastructure SWG has brought together 
subject-matter experts that have identified and culled their 
respective projects to efficiently and effectively 
administer their respective requirements thus avoiding 
duplication and filling any existing gaps.  Likewise, the 
Donor SWG has been instrumental in bringing the donor 
community together and identifying the gaps and overlaps of 
their missions.  This SWG is easily assessable to newcomers 
who want to integrate their programs with others.  For 
example, the Japanese have begun coordinating their efforts 
on DOHA-II projects with Border Management and Drug Action 
Programmes in Central Asia (BOMCA) and the European 
Commission on the Afghan border with Tajikistan.  Other SWGs 
concerned with budgets, metrics, and trade facilitation are 
also experiencing progress. 
 
¶16.  (U) TRAINING CONDUCTED DURING REPORTING PERIOD. 
 
Nothing to report. 
 
¶17. (U) EQUIPMENT DELIVERED DURING REPORTING PERIOD. 
 
Nothing to report. 
 
¶18. (U) IMMINENT TRAINING OR EQUIPMENT STATUS UPDATE. 
 
Nothing to report. 
 
¶19. (U) SIGNIFICANT DEVELOPMENTS IN EXPORT CONTROLS, 
NONPROLIFERATION, OR RELATED BORDER SECURITY. 
 
Nothing to report. 
 
¶20. (U) OTHER SIGNIFICANT ISSUES/EVENTS. 
 
¶1.   EXBS: The Afghanistan EXBS Advisor met with the 
Director of International Transit and Trade Facilitation and 
Senior Advisor to the Minister of Commerce after his return 
from the 8th Central Asia and Caucasus Regional Forum on 
Export Controls conference held in Tbilisi, Georgia on May 
 
 
16-18, 2006.  The Minister's Advisor was very complementary 
of the conference and has offered to assist in identifying 
the Afghan Ministries and the particular roles they will 
play in the establishment of an EXBS program in Afghanistan. 
The Advisor suggested that the EXBS Program be explained at 
a forum to GoA officials who would be responsible for the 
respective components of the Program.  This step in the 
process will be a prelude to identifying the appropriate 
order of program areas to be phased in congruent with 
existing and developing Afghan programs.  The EXBS Advisor 
has met with the World Bank CURE representative embedded 
with the Ministry of Finance who agreed with the Director 
General of ACD to include the EXBS Program in the Afghan 
Five Year Plan presently under revision. 
 
¶21. (U) RED FLAG U ISSUES. 
 None to report. 
 
¶22. (U) Please direct any questions or comments to Barry F. 
Lory, EXBS Advisor to Afghanistan; +93-070-073-652, 
extension 4836; lorybf@state.gov or to Jimmie L. Collins, 
South Asia Regional Program Manager, Office of Export 
Control Cooperation, 202-647-1778, collinsjl2@state.gov. 
 
NEUMANN