ERBIL, Kurdistan Region - The Iraqi government has approved a new measure allowing all goods to be imported through the Kurdistan Region’s Ibrahim Khalil border crossing with Turkey using the Automatic System for Customs Data (ASYCUDA) starting June 1, provided that merchants complete preliminary customs procedures.
According to a document obtained by Rudaw, which was issued May 14 by Ali Razzouqi al-Lami, director of the Iraqi Prime Minister’s Office, and addressed to the federal finance ministry, approval has been granted to expand the system beyond its previous limits.
Previously, only food and medicine were allowed to be imported through the Kurdistan Region's strategic crossing under the ASYCUDA system.
The ASYCUDA electronic automation system was developed by the United Nations Conference on Trade and Development (UNCTAD) in the early 1980s. It is now used at all 22 of Iraq’s federal border crossings - excluding those of the Kurdistan Region - and is designed to standardize and modernize customs procedures through digital integration.
Under the system, merchants are required to secure federal government approval and pay customs duties in advance before importing goods. They are also granted access to US dollars at the official Central Bank exchange rate to facilitate purchases from abroad, which is cheaper than black market rates
The application of the system at the Kurdistan Region’s crossings has raised concerns among local authorities, who fear it could undermine the Region’s control over its border crossings.
In April, delegations from Iraq’s federal government and the Kurdistan Region met in Erbil to finalize an agreement on the digitalization of customs procedures and the implementation of the ASYCUDA.
The agreement followed months of disputes between Baghdad and Erbil over control of the Region’s crossings.
Hami Herki, Director of Ark Star International Transport Company, told Rudaw on Monday that because Baghdad and Erbil have not yet reached a final agreement on unifying customs, "goods imported through Ibrahim Khalil are taxed according to the Kurdistan Region’s customs tariffs, separately from the fees collected by the federal government."