Baghdad to unify digital customs system across Iraq including Kurdistan
Baghdad (IraqiNews.com) – Iraqi Finance Minister Falih Al-Sari has called for expediting customs automation and extending the ASYCUDA system to border crossings in the Kurdistan Region, as Baghdad strives to unify customs operations and boost non-oil income.
During a meeting on customs modernization, al-Sari authorized authorities to start advance payment of customs taxes on October 1, while continuing to develop the Automated System for Customs Data, or ASYCUDA.
The Finance Minister also emphasized the necessity to implement the system at border crossings in the Kurdistan Region, which would integrate federal and regional customs operations under a more unified digital framework.
The move is part of a larger government initiative to replace paper-based customs processes with computerized systems that may increase supervision, speed up clearance, and give authorities with more accurate import and revenue data.
Expanding ASYCUDA throughout Iraq might also help resolve long-standing disagreements between Baghdad and Erbil over customs processes and border income.
A unified system would provide both sides with a standard method for documenting transactions and determining tariffs at border crossings.
The government has increasingly resorted to customs and other non-oil sources to diversify state income and lessen Iraq’s reliance on petroleum exports.
Digital customs systems are also seen as a key instrument for limiting potential for fraud and revenue leakage at border crossings by keeping electronic records of goods, payments, and customs declarations.
Al-Sari’s initiative comes as the Finance Ministry collaborates with other state agencies to electronically connect customs operations to Iraq’s banking and payment infrastructure, enabling fees to be collected and recorded via legitimate financial channels.
The anticipated October 1 implementation of advance customs payments would be another step in that transformation, forcing tariffs to be cleared earlier in the import process rather than depending on customary processes at individual crossings.
Implementing the same system in the Kurdistan Region would be especially important, bringing Iraq closer to a unified national customs framework and perhaps allowing Baghdad and Erbil more control over income produced at the country’s borders.