The Kurdistan Regional Government (KRG) and Baghdad are close to a major agreement on customs reform. They have completed about 97% of the work needed to launch the ASYCUDA digital system at Kurdistan’s border crossings.
Dr. Sami Jalal, Advisor to the KRG Ministry of Interior, said the deal now waits for approval from Iraq’s Ministerial Council for Economy. He said the agreement could become one of the biggest economic coordination steps since 2005.
ASYCUDA is a digital customs platform developed by the United Nations Conference on Trade and Development. It records and processes customs data electronically. It also improves transparency and speeds up border procedures.
Officials say both governments want to reduce corruption and improve efficiency. The system will unify tariffs and create one shared database for customs data.
Dr. Jalal said recent talks between Erbil and Baghdad helped speed up progress. He linked the breakthrough to a recent meeting between KRG Prime Minister Masrour Barzani and federal officials in Baghdad.
Both sides agreed to connect Kurdistan to the national ASYCUDA network. At the same time, they agreed to protect the region’s constitutional and economic rights.
The plan covers several sectors. These include customs, trade, investment, agriculture, industry, and company registration. It also introduces joint management of border points.
Under the agreement, Erbil and Baghdad will share non-oil customs revenue equally. Each side will receive 50% of the income. Both governments will also access the same real-time data.
Officials say this will reduce disputes over revenue collection. It will also improve trust between the two sides. The system will make trade easier for businesses. Traders will register shipments faster. They will also face fewer delays at border crossings.
Authorities plan to remove four temporary checkpoints after the system goes live. They will also close unofficial crossing points across the region. Experts say the digital system will help fight smuggling and money laundering. It will also improve coordination with banking authorities.
Officials expect the system to start within four months. Analysts say the deal could mark a major step toward stronger economic integration between Baghdad and Erbil.
