Kurdistan Region to Implement ASYCUDA System with 15% Vehicle Customs Duty

Daban Mohammed 09/04/2026
An electric car plugged into a charger. Photo: AFP
An electric car plugged into a charger. Photo: AFP

A senior customs official in the Kurdistan Region announced that the administrative procedures for the implementation of the ASYCUDA system are scheduled to commence early next week. Under the new system, the customs duty on vehicles will be set at 15%.

After a period of disaccord between the Kurdistan Regional Government (KRG) and the federal government regarding the ASYCUDA, both sides agreed to implement the system and unify customs procedures at all Kurdistan Region border crossings.

The customs official noted that after the completion of the procedures, customs duties will be collected at all border crossings according to this new system.

Customs Regulations and Unified Vehicle Taxation

Based on an agreement between Erbil and Baghdad, customs duties in Kurdistan will align with other Iraqi provinces, with unified border customs identification and consistent tax collection across Iraq.

Thus, the Kurdistan Region will soon implement a vehicle taxation system aligned with that of Iraq for all vehicle types.

The previous exemption for electric vehicles in the Kurdistan Region will be eliminated, and following the implementation of ASYCUDA, all vehicle types will be taxed in accordance with Iraqi regulations.

The implementation of this system will facilitate traders because they can benefit from buying dollars at the official price. 

The customs officials also mentioned that after the implementation of the system, they will ask Baghdad to recognize the border crossings that are still unofficial.

Unified ASYCUDA Team to Standardize Customs Procedures

The Iraqi Ministerial Council for the Economy held a meeting chaired by Finance Minister Taif Sami with Kuriahr Region authorities and 

Erbil and Baghdad agreed to form a national ASYCUDA team, including the Kurdistan Region, to unify customs procedures, and both governments agreed to form a national ASYCUDA team to unify customs procedures, focusing on meeting system requirements and clearly defining roles to ensure smooth operation.

Nawzad Ghafoor, president of the Sulaymaniyah Chamber of Commerce and Industry, told Channel8 that once the Kurdistan Region adapts to the system, it will be rolled out within a designated timeframe.

Daban Mohammed

09/04/2026