KRI trade chief: Baghdad customs dispute unresolved

Shafaq News- Erbil

Disputes over customs tariffs and Iraq’s digital customs system remain unresolved between Baghdad and the Kurdistan Region, a senior Kurdish trade official said on Monday, three weeks after the two sides reached an agreement that included an equal division of border revenues.

Gailan Haji Saeed, head of the Kurdistan Region’s Federation of Chambers of Commerce and president of the Erbil Chamber of Commerce, told Shafaq News that the federal government had implemented ASYCUDA and issued tariff decisions unilaterally, creating obstacles for traders across Iraq.

Border crossings in both federal Iraq and the Kurdistan Region serve nationwide trade, requiring a joint framework for tariffs and customs procedures, he added.

Talks between the Kurdistan Regional Government (KRG) and federal authorities are now continuing to “resolve the remaining differences.”

On August 11, Kurdistan Region Interior Minister Rebar Ahmed said Baghdad and Erbil had reached a final agreement on ASYCUDA implementation at the Region’s border crossings, with revenues to be divided equally and “no obstacles remaining.” Federal and Kurdish officials had agreed in April to advance a joint ASYCUDA plan, followed by a customs memorandum signed in Baghdad on June 18 to unify procedures between the two sides.

Developed by the United Nations Conference on Trade and Development, ASYCUDA automates customs declarations, payments, valuation, and monitoring. Iraq shifted from paper to electronic customs declarations on January 1, 2025, as Baghdad expanded the system across federal customs centers. A further customs measure will take effect on October 1, requiring importers to pay estimated customs duties and tax deposits through ASYCUDA before banks complete foreign transfers for imported goods.

Customs revenue is a major source of non-oil income for the KRG, which collected 9.55 trillion dinars ($7.29B) between 2019 and 2025, including 1.09 trillion dinars ($832M) last year.

Read more: Baghdad and Erbil standardize border procedures under ASYCUDA initiative