Official documents exclusively made available to Business Recorder reveal that various stakeholders including representatives from Ministries of Foreign Affairs, Interior, Port and Shipping besides Joint Staff Headquarters (JSHQ), General Headquarters (GHQ), Federal Board of Revenue (FBR), National Highways Authority (NHA) and National Logistic Cell (NLC) were involved in deliberations and during the finalisation process.
The MoU was signed on July 31, 2012 by the Charge' d Affairs at the US embassy in Islamabad, Richard Hoagland and Additional Secretary Ministry of Defence, Rear Admiral, Farrokh Ahmad. US commercial carriers are to pay fees: (a) generally applicable on US cargo transiting Pakistan in accordance with Pakistani laws, rules, regulations and orders, as notified and published; and (b) for additional services, if mutually agreed as described in the MoU. The MoU signed between Pakistan and the US is as follows:
Section 2 - PURPOSE AND SCOPE: This MOU establishes the principles and procedures for the quick and efficient transit of the US cargo to and from Afghanistan through the territory of Pakistan for the purpose of supporting international efforts for ensuring the security, stabilization, and reconstruction of Afghanistan.
Section 3 - DESIGNATED COMPETENT AUTHORITIES: Pakistan intends for its Ministry of Defence to be the Central Co-ordinating Authority responsible for the co-ordination, day-to-day operations, and implementation of this MOU.
The United States intends for the office of the Defence representative - Pakistan (ODRP) of the US Department of Defence to be its Central Co-ordinating Authority responsible for the co-ordination, day-to-day operations, and implementation of this MOU.
Section 4- TRANSIT ROUTES AND STAGING AREAS: Transit of US cargo under this MOU is expected to use the following routes: (a) Southern route (from Karachi Port/ Port Qasim to Chaman and the reverse); and Northern Route (from Karachi Port/ Port Qasim to Torkham and the reverse);(b) Pakistan is to prescribe and inform the United States of specific route details, as necessary, consistent with the objective of ensuring quick and efficient transit of US cargo; and (c) the participants acknowledge that no warehousing or storage of US cargo en route would be allowed in the territory of Pakistan.
Section 5- TRANSIT AUTHORIZATION: Transit of US cargo under this MOU is to be based on an authorisation for transit issued by the Ministry of Defence and in accordance with applicable Pakistani laws, rules, regulations, orders, including Customs General Order 10 of 2012, customs procedures, and applicable published fees. Upon the issuance of this authorization for transit, any further No Objection Certificate (NOC) would not be required. 'Pakistan may refuse to issue an authorization for transit under this MoU, or may cancel or suspend an authorization for transit under this MOU, if Pakistan has determined that the transit of US cargo is not consistent with this MoU. The Ministry of Defence is to inform ODRP immediately of any decision to refuse to issue an authorization for transit under this MOU, or of the cancellation or suspension of authorization for transit under this MoU.
Section 6- RE-EXPORT OF US CARGO: US cargo for which an authorization for transit has been refused or US cargo for which authorization for transit has been cancelled or suspended, may be re-exported. ODRP or commercial carriers are to be facilitated access to US cargo whenever requested.
Section 7- VOLUMES AND HANDLING PRIORITY: In view of Pakistan's capacity and availability of resources, and the Participants' national requirements at any point in time, priority of handling of US cargo and the volume permitted to and from Afghanistan are to be jointly established and co-ordinated with the appropriate lead time, by the Ministry of Defence and the ODRP. Pakistan retains the right to decide volumes and accord priority per its national needs and requirements when so warranted.
Section - 8 STREAMLINING AND EXPEDITING TRANSIT OF US CARGO: Pakistan is expected to take the following measures to streamline the transit of US cargo under this MoU, at no additional cost to the United States: (a) Establish a dedicated office for priority processing of US cargo at transit points; (b) provision of information to the United States of road conditions for continuity of transit whenever necessary; (c) provision of monitoring measures through the prescribed transit routes; and (d) facilitation of availability of sufficient space within the Karachi Port/ Port Qasim for US cargo awaiting onward transit, subject to the provisions of section 10, herein.
The documents further disclose that Pakistan has offered to provide additional services to expedite the transit of US cargo, at fees to be mutually determined in follow-on terms of reference, using the consultative procedures in section 12. Such additional services could include facilitation of the transit of US cargo through the processing of documentation for customs clearance prior to arrival at Karachi Port/ Port Qasim (for US cargo transiting to Afghanistan) or prior to the arrival at border crossing points (for US cargo transiting from Afghanistan) and expediting, as practicable, other required transit documentation. Automation of uniform customs clearance processes at transit points within Pakistan and automating, as practicable, other transit documentation processes.
Section 9. TRANSIT OF US CARGO OUT OF AFGHANISTAN: The participants intend that US cargo, including empty containers, that was transported to Afghanistan through Pakistan or the territory of a country other than Pakistan may transit from Afghanistan through the territory of Pakistan.
Section 11- SECURITY: The authorities concerned in Pakistan are to take the necessary measures to possibly maintain the general security environment through their jurisdictions in accordance with applicable Pakistani law.
Section 12- MUTUAL CONSULTATIONS: In Annex B to this MoU, the Participants are to provide contact information for their respective representatives who are to be made available for consultations on the implementation of this MOU and the development of corresponding terms of reference as may be necessary.
The participants' respective representatives are expected to meet on a mutually convenient date at least once every two months to evaluate cooperation under this MoU and address mutual or respective areas of concerns regarding cooperation under this MoU.
Section 13 - EXTENSION TO NATO-LED ISAF: The participants intend that this MOU may form the basis of a wider arrangement covering member nations of the Nato-led ISAF through an exchange of letters, as may be mutually determined between Pakistan and, on behalf of ISAF nations, Nato.
Section 14- DISPUTE RESOLUTION: The participants intend that issues arising from commercial carrier's transit of US cargo under this MoU are to be regulated consistent with the applicable laws, rules, and regulations of Pakistan.
The participants intend that disputes that may arise as a result of the application or interpretation of this MoU, and that may not be resolved through the consultative processes established in section 12, are to be resolved through consultations and negotiations at higher levels between the Participants and would not be referred to any third entity for settlement.
Section 15 - CLAIMS AND LIABILITIES: The United States acknowledges that commercial carriers are responsible to the United States for possible damage to or loss of US cargo and that in the event of damage to or loss of US cargo transiting Pakistan under this MoU, the United States intends to submit the relevant claim to the commercial carrier.
Section 16- FINAL PROVISIONS: COMMENCEMENT, DURATION, MODIFICATION, AND ENDING COOPERATION: Cooperation under this MoU is intended to commence after the date of signature below, and after the Participants have completed any domestic processes required by their internal government procedures and have so notified the other participant in writing.
Cooperation under this MoU is intended to last until December 31, 2015 and that cooperation may continue thereafter if mutually, desired by the Participants for subsequent periods of one year. The Participants intend to inform one another in writing if a decision has been taken not to continue cooperation under this MOU.
The participants intend that either participant may end cooperation under this MoU at any time after notifying the other Participant to that effect. Under normal circumstances, the participants intend that cooperation under this MoU would end 45 days from receipt of the relevant notification. The participants intend that this MOU may be modified by written mutual understanding of the Participants by an exchange of letters, and numbered consecutively and annexed to the MoU.
Cooperation under this MoU is to be subject to each participant's respective laws, rules and regulations. Federal Cabinet has also approved letter of exchange - Nato led ISAF, in its meeting on November 28, 2012 presided over by the Prime Minister, Raja Pervez Ashraf. North Atlantic Treaty Organisation (Nato) has agreed to sign the proposed letters of exchange on behalf of all member nations of International Security Assistance Force (ISAF), Law and Justice Division has vetted the draft letter of exchange -Nato led ISAF.