Iraq has introduced a major change in its customs policy. The General Customs Directorate under the Ministry of Finance announced a 25% reduction in the customs tax for imported goods under the ASYCUDA system. This Iraq customs tax reduction aims to simplify procedures and balance government revenue.
Therefore, the General Customs Directorate said, “This tax reduction eases challenges traders faced with ASYCUDA. Our goal is to make import processes smoother while maintaining revenue.” The system previously caused delays and extra costs for importers.
Implementing this Iraq customs tax reduction involves several authorities. The KRG representation office at the Council of Ministers, customs offices in Kurdistan, central, southern, and western Iraq, and airport customs administrations must all adjust their procedures. They will apply the 25% reduction on imported goods under ASYCUDA.
For example, an imported product worth 100 million dinars will now only incur 75% of the customs tax. The 25 million dinars in taxes will be waived. Importers will pay 75 million dinars, saving costs and reducing border delays.
Furthermore, this Iraq customs tax reduction comes amid talks between the federal government and the Kurdistan Regional Government (KRG). The federal government insists on nationwide ASYCUDA use. Meanwhile, the KRG requests its own customs system remain active and linked with ASYCUDA.
ASYCUDA has affected imports across Iraq. Traders had to buy U.S. dollars above the central bank rate, raising import prices and the dollar-to-dinar exchange rate. By reducing customs taxes, Iraq eases some of this financial pressure.
Additionally, ASYCUDA is a global system used in 120 countries. It tracks the type, quantity, and origin of imports. It calculates customs duties and records fees automatically. Iraq adopted ASYCUDA a year ago, forcing KRG companies to register. The 25% reduction now provides relief for businesses struggling with the system.
Therefore, the Iraq customs tax reduction promises smoother procedures, lower import costs, and better alignment between federal and KRG systems. Traders across Iraq can now benefit from faster, more affordable imports.
