A technical delegation from the Kurdistan Regional Government (KRG) will visit Baghdad to advance the final framework for implementing the ASYCUDA customs system, as negotiations with federal authorities continue over customs integration, tariff unification, and the disputed mechanism for border revenue distribution.

KRG Technical Delegation in Baghdad

Today, June 17, a technical delegation from the Kurdistan Region departed for Baghdad to hold a series of meetings to prepare the final draft agreement for the ASYCUDA system.

The delegation is scheduled to meet officials from the Iraqi Border Crossings Authority and other relevant departments to complete the technical framework, which will later be submitted for approval by a high-level delegation.

According to information obtained by Channel8, these discussions are intended to finalize the agreement so that a senior delegation from the Kurdistan Region can later meet the Federal Ministerial Committee for Economy to officially sign the protocol for integrating the Kurdistan Region into the ASYCUDA system.

ASYCUDA Implementation and Customs Integration

The ASYCUDA (Automated System for Customs Data) system is already operational at federal border crossings with neighboring countries, and the current effort aims to extend its implementation to the Kurdistan Region.

Once finalized, companies operating in the Kurdistan Region are expected to be integrated into the system and benefit from its services under the same conditions as companies across Iraq.

Alongside the ASYCUDA discussions, both sides are also addressing the unification of customs tariffs, which would require all border crossings across Iraq and the Kurdistan Region to operate under a single customs framework.

Revenue Dispute and Legal Differences

Despite technical progress, the implementation of ASYCUDA remains affected by unresolved disputes between Erbil and Baghdad, particularly regarding border revenues.

The main point of contention lies in the mechanism for collecting and distributing border crossing revenues. The federal government delegation has proposed that 100% of revenues be transferred to Baghdad, with 50% later returned to the Kurdistan Region, a proposal rejected by the KRG.

In response, the Kurdistan Regional Government has expressed readiness to allow joint federal and regional teams to supervise border crossings, aiming to ensure transparency while keeping revenues within the Region rather than transferring them fully to Baghdad.

According to Alauddin al-Qaisi, spokesperson for the Iraqi Border Crossings Authority, significant progress has been made on ASYCUDA implementation, including agreement on procedures, customs tariff unification, and the formation of a joint working group, with revenue distribution remaining the only unresolved issue.

Ongoing Points of Contention

Key remaining disagreements between Erbil and Baghdad include:

• The proposed transfer of 100% of border revenues to Baghdad and the return of 50% to the Kurdistan Region
• The mechanism for distributing revenues between the two governments
• Differences between federal and Kurdistan Region laws governing border crossings
• The structure of joint supervision teams at customs points

Despite these challenges, both sides continue negotiations aimed at reaching a comprehensive agreement on customs modernization and revenue management.