A high-level delegation from the Iraqi federal government is expected to visit the Kurdistan Region in the coming days to finalize and sign an agreement to implement the ASYCUDA customs automation system, following progress in negotiations between Erbil and Baghdad on customs integration and trade procedures.

Federal Delegation Visit and Agreement Signing

Rebaz Hamlan, Assistant to the Prime Minister of the Kurdistan Region, stated to Channel8 that a federal government delegation from Baghdad will travel to the Kurdistan Region in the coming days. The visit aims to finalize procedures and officially sign an agreement for the implementation of the customs automation system.

Hamlan explained that this step comes after a series of intensive discussions between the Kurdistan Regional Government (KRG) and the Iraqi federal government on integrating customs operations at border crossings. During the visit, both sides are expected to sign the final agreement to implement the ASYCUDA system.

He added that, following the agreement on customs integration principles with Baghdad, the Kurdistan Region will establish a dedicated board to manage the ASYCUDA system, although differences remain regarding investment laws and border revenues.

Recognition of Certificates and System Coordination

According to Channel8 information, the KRG and the Iraqi federal government have already reached an agreement on key components of the ASYCUDA system.

One of the main provisions is the official recognition in Baghdad of company registration certificates issued in the Kurdistan Region. In addition, both sides agreed to mutually accept import certificates for goods, marking a significant step toward administrative and commercial coordination.

Establishing a Joint ASYCUDA Structure

As part of the agreement, the KRG will establish a specialized board responsible for managing the ASYCUDA system. This body will coordinate directly with Baghdad’s corresponding ASYCUDA board to oversee implementation and operations.

This development follows an Iraqi Cabinet decision issued last April requiring the Kurdistan Region to be integrated into the global customs system, a step the KRG has agreed to implement.

Outstanding Legal and Financial Issues

Despite these advances, several disputes remain unresolved between Erbil and Baghdad.

The Kurdistan Region’s Investment Law, which is closely linked to border crossings and customs procedures, differs significantly from federal investment legislation. Both sides have yet to establish a unified legal framework to reconcile these differences within the ASYCUDA system.

Another pending issue is the management and distribution of revenues collected from border crossings in the Kurdistan Region. Due to its complexity, this matter has been postponed to the upcoming Iraqi budget law discussions.

In addition, the unification of customs tariffs between Erbil and Baghdad, considered a key pillar of the agreement, has not yet been implemented. The KRG delegation is expected to prioritize this issue in the upcoming negotiations.

What is ASYCUDA?

ASYCUDA (Automated System for Customs Data) is a digital customs management system developed to streamline and modernize customs procedures by automating the processing of import and export data. It is designed to improve efficiency, reduce paperwork, enhance transparency, and facilitate trade by allowing customs authorities to manage declarations, tariffs, and border operations through an integrated electronic platform.