UK ⇆ Afghanistan Shipping Rates 2019

UK ⇆ Afghanistan
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Air Freight

London Heathrow Airport to Kabul Airport:
50 kg   ￫ £229.50
200 kg ￫ £598.00
500 kg ￫ £1365.00

London Heathrow Airport to Kandahar Airport:
50 kg   ￫ 229.50
200 kg ￫ £648.00
500 kg ￫ £1490.00

* Documentation surcharge applies to any shipping to Afghanistan.
* To obtain an accurate quote, please use our online quotation form provided.

For project cargo shipping & heavy transport please contact us

Afghanistan Cargo Service

DFS Worldwide provides cargo services to all areas of Afghanistan.
Our track record of success in shipping to Afghanistan is assured by quality logistics
operators on the ground, communications within a network of highly specialized
individuals, and a high level of expertise in air freight.

We are dedicated to providing time critical logistics solutions to Afghanistan with
optimal security and effectiveness in the face of often difficult circumstances.

Our shipping services to Afghanistan

• Door to door shipping to Afghanistan
• Air freight charters
• Documentation
• Intl Communications
• Afghanistan freight Insurance
• Secure warehousing
• Inland handling & transport
• Express vehicle shipping

Afghanistan trade and export guide

1. Afghanistan export overview

Early indications are that support for the economy and increasing trade and investment will be priorities for Afghanistan’s new government of national unity.

The UK is a leading contributor to funding and support for Afghanistan with development assistance of £178 million per year until at least 2017.

Afghanistan is a new market for many international companies and offers opportunities for distribution of products or services that match the needs of low income, developing countries.

About 40 UK businesses operate from Afghanistan, including security companies and larger firms such as GSK, and Unilever.

Benefits for UK businesses exporting to Afghanistan:

• low levels of competition which create opportunities to bring in new products with potentially good profit margins
• United Arab Emirates (UAE) or Pakistan based companies with access to Afghan market offer low risk option for market entry
• young and growing population with 70% below 25 years of age
• new government committed to tackling corruption

Strengths of the Afghanistan market include:

• local, highly capable companies, which are adaptable, entrepreneurial and have survived in hard times
• a growing middle class
• significant potential for exploration in minerals, and in oil and gas

2. Challenges doing business in Afghanistan

There are some unique challenges when doing business in Afghanistan. These include:

• terrorism and kidnapping threats
• Afghanistan is ranked very low in the World Bank’s Ease of Doing Business index
• bureaucracy
• weak infrastructure
• legal system isn’t experienced in dealing with complex commercial issues
• lack of experience in project development/management and in dealing with Western companies
• corruption is a major problem with Afghanistan ranking very low on Transparency International’s Corruption Perceptions Index

3. Growth potential

3.1 Economic growth

The Afghan economy remains heavily dependent on foreign aid. The aim is that it should become self-sufficient and private sector led over the next decade.

The economy grew at about 9% per annum from 2001 to 2013.

The economy suffered in 2014 due to uncertainty over security and the outcome of the Presidential elections. As a result investors postponed projects. The election of the new president has reduced uncertainty. The new government is focussing on developing a new strategic partnership with the private sector to generate jobs and economic growth.

The World Bank currently forecasts Gross Domestic Product (GDP) growth of 2.5% in Afghanistan for 2015. Growth could reach 5% in the medium term, but that is dependent on improved stability and delivery of important reforms.

4. UK and Afghanistan trade

The UK exported goods worth USD 48.8 million in 2014.

The UK exported services worth £600 million to Afghanistan in 2013.

Top UK goods exports included:

• power generation machinery
• electrical and electronic equipment
• vehicles
• meat, cereals, fish
• opto photo, technical, medical etc apparatus
• pharmaceutical and medical products

5. Opportunities for UK businesses in Afghanistan

5.1 Aid funded projects

Aid funded business projects will continue in Afghanistan for the foreseeable future. These will create opportunities for UK consultants with experience in working in conflict zones and expertise in:

• education
• healthcare
• supporting infrastructure development
• governmental capacity development

5.2 Mining

Afghanistan’s mining sector is worth up to USD 1 trillion. There are more than 1,000 potential mineral sites in Afghanistan with iron ore, copper, gold, lithium, gemstones and other minerals present. However, very little commercial exploration has been done and supporting infrastructure for some of the projects is not in place.

The Afghan government has put out to tender some major contracts following international standard tender processes. Some projects may receive final approval soon. Over the next 5 years the focus will be to explore and develop the potential through exploration.

Opportunities for UK companies include:

• early stage exploration support services
• consultancy
• equipment

5.3 Oil and gas

Oil production work has started recently in northern Afghanistan. Further exploration work is due to start over the next few months and an additional major tender may be awarded soon.

There will be significant opportunities for UK companies to export mining, and oil and gas services and equipment to Afghanistan.

5.4 Security

The security sector continues to have high demand for products and services. There are many opportunities for UK companies in the sector.

5.5 Construction

As they seek to diversify, Afghan businesses are likely to begin investing in some new projects, such as property or retail or city development.

There will be opportunities to supply price competitive construction equipment, products and services. The development of the retail sector is at an early stage, but there will be opportunities in retail franchising.

6. Start-up considerations

You can enter the market by:

• exporting directly from the UK, or via Dubai or Pakistan
• setting up an agency
• appointing a distributor
• franchising
• forming a joint venture or manufacture under license agreement with an Afghan company

You should take care when choosing a local Afghan partner and undertake due diligence.

If you’re looking to set up a company, normally a local subsidiary in Afghanistan, you should use a:

• consultant or accountant (UK companies operate in this field in Afghanistan)
• local or international lawyers operating in country

There are many family companies in Afghanistan so developing personal relationships is very important. This requires an investment of time. Product training for an agent’s workforce is essential.

Business meetings with Afghan companies are sometimes held in Dubai, where some Afghan companies have offices.

7. Legal considerations

You should seek legal and taxation advice before entering into a joint venture or similar type of partnership with a local company in Afghanistan.

7.1 Standards and technical regulations

Afghanistan currently has no laws or regulations governing labelling and marketing requirements for products.

7.2 Intellectual Property (IP)

Intellectual property protection is a very new area for the courts in Afghanistan. Afghanistan is a member of the World Intellectual Property Organization (WIPO) and has some intellectual property laws. Local companies have used these laws, but there are few cases yet showing use by foreign companies.

8. Tax and customs considerations

8.1 Corporate taxation

The corporate tax rate in Afghanistan is 20%.

8.2 Customs duties

Afghanistan’s tariff is based on the Harmonised tariff System.

Afghanistan maintains the lowest import tariffs in the region. Tariff duties range from 2.5% to 16%. The Afghanistan Customs website provides more information on tariffs and procedures.

9. Business behaviour

English is understood by many, but not all Afghan business people.

Afghanistan is an Islamic State. You should therefore respect Muslim customs. Women are expected to dress conservatively and have a scarf draped on the shoulders when attending meetings. Western attire is acceptable.

Pork is banned in the country. Alcohol is officially banned for Afghans, but overseas visitors can buy alcohol at some leading hotels. This can only be consumed on the premises.

Muslims observe the month of Ramadan. You should not plan a business trip during this month.