Friday, November 30, 2018

Interview With an Afghan Entrepreneur "Rahiba Rahimi"



Starting and maintaining a business in Afghanistan is not that easy as it seems, it requires determination and hard work, just to have a real idea about running business in Afghanistan. I interviewed Rahiba Rahimi, Founder and President of Laman clothing brand. Hope this gives an overview of doing business in Afghanistan.  

Interviewee: Rahiba Rahimi, Founder and President, Laman,

Address; Old Taimani, behind Q Kabul,

 Email and Phone Number: rahiba.rah@gmail.com, +93 77 061 9941

Background:

Laman was founded in 2015. They are a design company that produces clothing for both men and women. They use a fusion of western designs and traditional Afghan elements and handcraft in their work. While promoting local arts, they are focusing to contribute and revive the cultural heritage of Afghanistan. Laman is opening a new avenue for Afghan fashion into the modern world.
Rahiba Rahimi, President of Laman, is currently a political science student at the American University of Afghanistan. When Laman was established, she was only 21. She is a quite young female entrepreneur in a male dominated society. She is also an advocate of women’s stand in afghan society. Most of her tailors are female. She also makes an effort to reach out to women who have great handcraft skills but cannot leave the house to work, so they work for Laman from their homes.

I learned about Laman through friends and have known Rahiba and her work at Laman ever since the establishment of Laman. Most companies open for profit and use the market’s demand to define themselves, however, Rahiba work with a vision and leads the market toward it.

Rahiba grew up watching the Afghan culture being cherished by her family in many ways especially through clothing. She envisions reviving and re-discovering what she calls the ‘almost forgotten’ ethnic traditional hand craft such as Afghan embroidery that is mainly produced by women who have inherited the skills over generations. She brings together the Afghan tailoring and embroidery with western designs, to revive Afghan fashion and introduce it not only on national but on international level.

What influenced her the most was the desire to see Afghan designs in new forms and produce fine pieces with International standards, thus not only revving Afghan fashion but also redefining it.
There’s a huge market for Afghan products, such as clothing with traditional Afghan elements. Rahiba and other Laman co-founders saw this as an excellent opportunity for continuously improving the quality of Afghan products and keep these high quality products in the local and global market of fashion. Most of the investors are leaving Afghanistan but they decided to invest. They are not only willing but proud to work for Afghanistan.
In 2015, Laman became the only private manufacturing company in Afghanistan to produce a line of clothing in modern form. They held themselves to the standards of International market. They hired professional workers all of whom work in different parts to keep Laman a success in the local and global market manufacturing company.  They sought advice from other entrepreneurs who had experience in the market. As part of representing Afghan fashion and clothing, they regularly participate in national and international exhibitions. They have participated in exhibitions in Dubai in 2015, in Nepal in 2018 and in India almost every year since 2015. They have held runway shows inside Kabul, at Laman house, U.S. embassy ad British consulate. 
More companies began opening, however, they have been able to stand out through their marketing and work quality. Due to the lack of availability of raw materials within Afghanistan, high salaries of professional workers, and having to hire trainers from abroad, their prices turned out to be higher than their competitors, which limited their coverage of different socioeconomic classes.
The major problem that they faced was security. They still face this problem and try to keep low profile. While they want to revolutionize Afghan fashion, they reorient their activities to be more cultural sensitive.
Rahiba’s advice to other entrepreneurs is that they go after something they believe in and love. Once they start, they should continually recreate themselves and evolve. This will keep them relevant to the market and keep them energized and motivated to do more and keep moving.

Export Information from Afghanistan

Afghanistan is an agricultural country, more than 80 percent of Afghan population relies on agriculture for their livelihoods and they are implementing old traditional farming methods with help of new technology, so the good news is all agricultural products in Afghanistan are organic, they grow without any chemical pesticides, therefore, they are very delicious and healthy, and it makes it very attractive for foreign markets, plus, the products are very fresh and the prices are very reasonable. I have gather information about top 12 Afghan export products and countries which ease to export to meantime.

Countries:
1.    United Arab Emirates
2.    Kazakhstan
3.    India
4.    Uzbekistan
5.    Pakistan 
6.    United Arab Emirates
7.    Kazakhstan
8.    India
9.    Uzbekistan
10.    Pakistan

Products:
1.    Grapes Fresh
2.    Apple Fresh
3.    Pomegranate
4.    Red Raisin
5.    Hard Almond
6.    Licorices root
7.    Marble
8.    Water Melon
9.    Precious Stones
10.    Cotton
11.    Carpet
12.    Saffron

Pakistan
To find out about Tariff Rate please click on the links

http://www.saarc-sec.org/areaofcooperation/detail.php?activity_id=35.

For other Taxes applied:

Required:
General Documents
1.    Export goods packing list in the company form which includes all details about the goods
2.    Business license For Domestic custom clearance
3.    Quality Certificate by ARFVEPA
4.    Phytosanitary Certificate by MAIL
5.    Certificate of Origin
6.      Invoice by ACCI
7. Airway Bill by Cargo Airline (If you are using Air Cargo)                                      
 8. Bill of lading by Freight forwarder

 The exportation of metallurgical products, refined stones and some other industries requires licensing from the ministry of Mines and the National Museum.

Foreign originated goods for which 35 % of processing has been completed in Afghanistan are subject are exported as Afghan goods. As such they can benefit from certificate of origin and form A as per the WTO rules provided that the exporter specifies the criteria.
Exporting re-exports without changes cannot benefit from certificate of origin and form A. these goods will only be provided with invoice including the name of the producing country in that invoice.
(Afghanistan Chamber of Commerce and Industries)

Uzbekistan
To find out about Tariff Rate please click on the links:

For other Taxes applied:

Required
General Documents

India
To find out about Tariff Rate please click on the links:

For other taxes applied:

Required:
General Documents
1.    Export goods packing list in the company form which includes all details about the goods
2.    Business license For Domestic custom clearance
3.    Quality Certificate by ARFVEPA
4.    Phytosanitary Certificate by MAIL
5.    1- Transit Certificate by MoCI
 Transit Form by Custom
6.    1- Certificate of Origin
        2- Invoice by ACCI
7.    1- Airway Bill  by Cargo Airline                                       
        2- Bill of lading by Freight forwarder
8.    Letter of Credit if needed
9.    In the Gemstone the IGI Certificate is required
The exportation of metallurgical products, refined stones and some other industries requires licensing  from the ministry of Mines and the National Museum.
Foreign originated goods for which 35 % of processing has been completed in Afghanistan are subject  are exported as Afghan goods. As such they can benefit from certificate of origin and form A as per the WTO rules provided that the exporter specifies the criteria.
Exporting re-exports without changes cannot benefit from certificate of origin and form A. these goods will only be provided with invoice including the name of the producing country in that invoice.
(Afghanistan Chamber of Commerce and Industries)

Kazakhstan
To find out about Tariff Rate please click on the links:
Kazakhstan recognizes Afghanistan as a least developed country and as such subjects it to 0% tariff rate.
For the more information on tariff rate:  http://web.ita.doc.gov/tacgi/overseasnew.nsf/alldata/Kazakhstan#Tariffs
For other taxes applied:
http://www.dutycalculator.com/hs-code-duty-rate-import-restrictions/711319/jewelry-with-precious-stones/7113.19.5085/7113.19.0000/2570/

Required:
General Documents:
1.    Export goods packing list in the company form which includes all details about the goods
2.    Invoice by ACCI
3.    Certificate of origin
4.    Phytosanitary Certificate by MAIL
5.    In the Gemstone the IGI Certificate is required
Links:  http://export.gov/logistics/eg_main_018121.asp
http://www.tsouz.ru/Pages/Default.aspx
http://www.tsouz.ru/db/ettr/Pages/NaimRazvStrani.aspx

United Arab Emirates
To find out about Tariff Rate please click on the links

Required:
General Document
1.    Delivery order
2.    Packing list
3.    Original invoice
4.    Attested original certificate of origin
5.    Bill of lading
6.    Receipt of duties or deposit settled
7.    Inspection report
8.    In the Gemstone the IGI Certificate is required

Transit Documents
1. Delivery order (from the shipping agent)
2. Invoice
3. Certificate of origin (for non GCC countries)
4. Packing list
5. Cash or Cheque deposit of 5%
6. Customs Exit/Entry Certificate

How to establish a company in Afghanistan.


Afghanistan is a challenging place to start a business in, but it will be fruitful and full of profit if you know the system. Afghanistan is a developing country with tons of opportunities that have not discovered yet. You as an entrepreneur or a business student can explore these hidden opportunities. First you need to have a legal identity for your firm. It means which type of company you are willing to create; sole proprietorship, partnership, or a cooperation.
Registration of a company in Afghanistan is very easy and does not requires lots of efforts, you need your Identity documents ( passport/ Tazkira) and your partner’s if it’s a partnership or a cooperation with two passport size photos each, contract of your office or if you are working from home and have no office, you need to provide the legal documents of the house that you use for your company work and you need provide legal documents of another person as contact person. After completing these documents, you are required to pay almost two dollars (100 afs) for the registration fees in the Afghan National United Bank. Then you can have your business license in 24 hours. This license enables you to do the business activity in geography of Afghanistan.