The implementation of the Automated System for Customs Data (ASYCUDA) between the Kurdistan Region and Iraq’s federal government has reached its final stage.
The system now awaits approval from Iraq’s Council of Ministers before implementation can begin, according to Sami Jalal, a legal adviser at the Kurdistan Region’s Ministry of Interior.
Jalal mentioned that Erbil and Baghdad had completed most technical and legal steps. He said the remaining step involves placing the issue on the Council of Ministers’ agenda.
Once ministers approve the plan, authorities can begin implementing ASYCUDA between the Kurdistan Region and federal customs points.
The system could help Erbil and Baghdad organize border procedures under one electronic framework. It could also help reduce economic disputes between the two sides.
ASYCUDA automates customs procedures and allows officials to process trade documents electronically. It also creates digital records for goods entering and leaving the country.
Iraq has expanded ASYCUDA as part of its efforts to modernize customs administration. Officials say the system can improve transparency and reduce manipulation.
It can also make it harder to alter invoices or hide the movement of goods across borders. Moreover, electronic links can improve coordination between customs facilities.
Iraq has already recorded a sharp rise in customs revenues after expanding electronic procedures.
Customs revenues exceeded 2.5 trillion Iraqi dinars during the first seven months of 2026. Samer Qasim al-Taie, director general of the General Customs Authority, said the figure matched Iraq’s total customs revenue in 2023.
July revenue reached 500.6 billion dinars. That figure marked a 150 percent increase from July 2025. Al-Taie expects customs revenues to exceed 3.5 trillion dinars by the end of 2026. If achieved, the figure would set a new national record.
The increase could support Iraq’s efforts to strengthen non-oil revenues. Iraq still relies heavily on crude exports to finance government spending.
For Erbil and Baghdad, ASYCUDA also represents a step toward closer economic coordination. The system could unify customs procedures and improve border management.
Jalal said the implementation process had reached an advanced stage. He added that only the Council of Ministers’ final approval remains.
Once approved, ASYCUDA could become an important part of Iraq’s broader customs reform. It could also help Erbil and Baghdad resolve long-running economic and border-related disagreements.
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