ERBIL, Kurdistan Region - A delegation from the Kurdistan Regional Government (KRG) will visit Baghdad next week to discuss the implementation of the Automated System for Customs Data (ASYCUDA), an electronic customs platform, as Erbil and the federal government move forward with plans to unify customs procedures across Iraq.
"Every designated ministry will have a representative present in the delegation," spokesperson for the investment board Bargasht Akrayi told Rudaw on Thursday. "The most important issue for the delegation will be the ASYCUDA system - how its procedures will be implemented - and the discussions will focus on this topic."
"We expect that staff training and practical procedures for the system will begin at the Kurdistan Region's border crossings in early August," said Samer Qasim, director general of Iraqi customs, to Rudaw on Saturday, calling it "a historic step" toward unifying customs affairs and "preventing violations."
The visit follows Wednesday's decision by the KRG Council of Ministers to endorse the minutes of a joint meeting between federal and Kurdistan customs authorities, signaling support for moving ahead with the nationwide customs modernization project.
ASYCUDA, an electronic customs platform developed by the United Nations Conference on Trade and Development (UNCTAD) in the early 1980s, digitizes and standardizes customs procedures. The system is currently used at all 22 federal border crossings in Iraq.
The application system for the Kurdistan Region’s crossings has raised concerns among regional authorities who fear that handing the reins of its commercial imports to Baghdad could undermine Erbil's control over its own border crossings.
Kurdish authorities have also previously said the newly introduced system restricts traders’ access to US dollars at the official rate unless federal taxes are paid in advance.
To facilitate its adoption in the Kurdistan Region, officials from the KRG and the Iraqi General Commission of Customs signed a 16-point Letter of Agreement in Baghdad last week, resolving months of outstanding issues related to the management of international trade through the Region’s border crossings.
Under the system, merchants will be required to obtain federal approval and pay customs duties before importing goods. They will also gain access to US dollars at the official exchange rate set by the Central Bank of Iraq, allowing them to purchase goods abroad at rates lower than those available on the market.
A source from the Kurdistan Region Customs told Rudaw that Kamal Raouf, director general of Kurdistan Region customs, will be among the delegation members as discussions continue on implementation methods for the system.
