The Ibrahim Khalil customs border crossing is scheduled to begin operating using the ASYCUDA system early this month, linking it directly to Iraq’s central border ports authorities in Baghdad.

ASYCUDA system to become operational at the crossing next month

According to information obtained by Channel8 from an official within the Kurdistan Region’s General Directorate of Customs under the Ministry of Finance and Economy, the Ibrahim Khalil border crossing will be integrated into the ASYCUDA system at the beginning of June.

Prime Minister’s official letter directed to the Ministry of Finance

According to a document obtained by Channel8, the Prime Minister’s office issued letter number 3005 dated May 14, 2026, to the Ministry of Finance. The letter states that the Prime Minister’s approval has been secured to allow the entry of all types of goods through the Ibrahim Khalil border crossing, on the condition that it is linked to a pre-declaration system, meaning integration into the ASYCUDA system, which will come into effect on June 1, 2026.

Crossing to operate under ASYCUDA regulations from June 1

This means the approval of the Iraqi Prime Minister has been secured, making the Ibrahim Khalil border crossing ready for importing any commodity starting June 1, 2026, provided that its operations follow ASYCUDA regulations and that all data is registered within the system.

Customs duties and taxation under ASYCUDA

According to Channel8’s information, Baghdad has taken this decision on its side, stating that any merchant wishing to import goods through the Ibrahim Khalil crossing and send them to the central and southern provinces of Iraq must pay customs duties in accordance with the ASYCUDA system.

Tax collection mechanism

The mechanism works as follows: the merchant submits information about their goods, after which taxes, fees, and commodity costs are deducted from their bank account. When the money is exchanged into dollars for the merchant, it will be calculated based on the official rate of 1,320 dinars per dollar.

No final agreement yet on system implementation

According to information obtained by Channel8, a final agreement on the system has not yet been reached. However, the Prime Minister has agreed to link the Ibrahim Khalil border crossing to the ASYCUDA system, and discussions on the matter are ongoing.

This is due to the Kurdistan Regional Government not agreeing to goods passing from a region crossing into Iraqi cities, while revenue is returned to Baghdad.

Ongoing dispute between the Kurdistan Region and Baghdad

Another point of contention between Erbil and Baghdad is that Iraq has not yet agreed to provide dollars at the official rate to merchants, whereas those who pay customs duties through ASYCUDA are provided dollars at the official rate by the Central Bank of Iraq.