Local officials say some 60 Taliban insurgents launched their attack on 15 February using automatic assault rifles and rockets.
Provincial Governor Ghulam Datagir Azad said it appeared that Taliban forces also suffered casualties in the clash.
Taliban spokesman Qari Yousef Ahmadi claimed responsibility for the attack, but said no Taliban fighters were harmed in the raid.
The Taliban has been waging an insurgency against Afghan and U.S.-led coalition forces since they were ousted from power in late 2001.
U.S. and Afghan defense officials say the Taliban are receiving help from foreign fighters.
Helmand Province Governor Comments
U.S. Marines operating in Helmand Province in 2002 (epa)
RULING A RESTIVE LAND: On February 12, RFE/RL Radio Free Afghanistan correspondent Jawaid Wafa spoke briefly with Helmand Province Governor MOHAMMAD DAOUD about the ongoing violence in his restive region on the border with Pakistan.
RFE/RL: Recently, there have been many clashes and attacks by insurgents in Helmand Province. What in your view facilitates these attacks, especially in Helmand?
Mohammad Daoud: This province has a 160-kilometer border with Pakistan's Baluchistan Province. In reality, armed people, armed terrorists, from the other side of the border cross the border into Helmand. They carry out attacks and return back. It is a serious problem in Helmand that within our borders there is neither tribal good will, nor are there are special military or security measures to prevent enemies from crossing back and forth.
RFE/RL: The attacks and clashes have not only been between government forces and insurgents. There have been various clashes in different parts of Helmand between police and purported drug smugglers. How do you explain this?
Daoud: Drug smugglers also use the border for their own purposes. They have opened markets on the border and process opium there. This is a serious problem along our border. We are in touch with our authorities on this problem.
RFE/RL: There are government border police patrol your border. What is their role in preventing illegal crossings?
Daoud: Along this 160-kilometer border, there are car routes, walking routes. We have border police, but unfortunately, either because of their own problems or because of weak administration, they have not been able to stop the crossing.