The Kurdistan Regional Government (KRG) has firmly rejected reports claiming it agreed to hand over its border crossings to Baghdad. Recently, tensions over customs and revenue management have increased significantly.
Meanwhile, Iraq’s federal government announced plans to implement a new customs system at the Ibrahim Khalil Border Crossing. Dr. Samer Qasim Dawood, Director General of Iraq’s General Customs Authority, said that the system will start this month. It is designed to allow Baghdad to directly manage customs revenues.
Under the proposed system, traders importing goods into the Kurdistan Region must submit detailed applications to Iraq’s central bank and federal authorities. They will pay in Iraqi dinars, which authorities will then convert to U.S. dollars before sending abroad. Consequently, the KRG would lose direct control of customs revenue, and funds would flow under Baghdad’s management.
However, KRG officials quickly denied the claims. Nawzad Sheikh Kamil, Director General of Trade in the Kurdistan Region, described the reports as “unfounded.” He emphasized that the KRG has not received any official notification about implementing Baghdad’s system.
Additionally, a senior KRG official overseeing economic affairs confirmed that the region will continue using its own digital customs platform, ASYCUDA. This system allows the KRG to retain full control of all administrative and financial processes. Officials expect the project to take about nine months to complete.
Furthermore, the KRG stressed that Iraqi law grants the region the right to manage its border crossings. Therefore, any attempt to enforce Baghdad’s system or restrict access to U.S. dollars will not weaken the region’s constitutional powers. Officials warned that such efforts aim to undermine Kurdistan’s autonomy. Consequently, the KRG will maintain full control over trade, customs revenue, and border administration.
Observers say this dispute highlights the ongoing tension between Erbil and Baghdad. It also underscores the importance of regional authority in managing local resources and maintaining economic independence.
