A high-level economic delegation from the Kurdistan Region will arrive in Baghdad on Sunday to hold talks with federal authorities on resolving outstanding customs issues and implementing the ASYCUDA customs system.

The officials are expected to participate in the Iraqi Economic Council meeting on Monday.

The delegation is composed of representatives from the Ministries of Finance and Economy, Trade and Industry, Agriculture and Water Resources, and Interior, alongside the General Directorate of Customs, the Directorate of Commercial Audit, the Head of the KRG Representation in Baghdad, and several advisors.

Key Trade Friction Points and ASYCUDA Disagreements 

Nawzad Ghafoor, president of the Sulaymaniyah Chamber of Commerce and Industry, stated that the main topic of the visit was the implementation of the ASYCUDA system and the points on which both sides have differing opinions. 

The issues include customs duties, trademarks, the mechanism for customs exemptions, support for domestic products, and the alignment of the agricultural calendar.

According to Ghafoor, despite the submission of company files, Baghdad has not yet recognized the region's trademarks and wants taxes and duties to be collected in Baghdad.

Another key agenda item slated for discussion is the Iraqi federal government's new directive requiring companies in the Kurdistan Region to obtain federal approval for their final financial audit reports to clear foreign remittances and money transfers.

KRG Advisor Outlines Border and Crop Calendar Strategy 

Rizgar Hama Khidir, Advisor to the Kurdistan Regional Government (KRG) Ministry of Agriculture and Water Resources, indicated that the upcoming discussions will target the unification of border crossings and the synchronization of the agricultural calendar.

He stressed that the Kurdistan Region’s goal is to restrict foreign imports once local crops mature, while simultaneously ensuring the unrestricted shipment of the region's produce to Iraq's central and southern provinces.

Erbil Retains Customs Revenue Pending Final Baghdad Pact 

A member of the delegation stressed that the KRG does not agree to goods passing through Kurdistan Region border gates while the revenue goes entirely to Baghdad. 

Currently, since June 1, traders at the Ibrahim Khalil border crossing have been utilizing the ASYCUDA system to transport their goods to Iraqi cities without any issues; however, the KRG will continue to collect its own customs duties until a final agreement is reached on the details.

Dual Customs Tariffs for KRG and Federal Iraq Goods 

Nawzad Sheikh Kamil, Director General of Trade at the Ministry of Trade and Industry, explained that merchants transporting goods to central and southern Iraq utilize the ASYCUDA system, whereas those bringing goods solely into the Kurdistan Region are only charged a lower rate at the Ibrahim Khalil border crossing. 

Under the ASYCUDA system, the cost of goods and applicable duties are deducted directly from the trader's bank account, with their US dollars credited at the official Iraqi central bank rate of 1,320 dinars.