Channel8 has learned that deep disagreements persist over approximately 20 points in the draft agreement regarding the ASYCUDA customs system implementation between the Kurdistan Regional Government (KRG) and the federal government, and it is highly unlikely the system will be signed and implemented in the Kurdistan Region within the timeframe designated by Baghdad.

The KRG and federal authorities met on June 18, where both sides signed a joint Memorandum of Understanding on the system. 

The Kurdistan Region's Council of Ministers reaffirmed its support for the joint minutes last week and instructed relevant ministries and institutions to coordinate with their federal counterparts in preparation for the final approval of the agreement by the Ministerial Council for Economy.

Channel8 has revealed the contents of the draft agreement at the time, which mandates the application of federal customs laws at all Kurdistan Region border crossings and requires the deployment of an ASYCUDA technical team to ensure compliance with federal procedures. 

Although Erbil and Baghdad have publicly cited progress in negotiations regarding the ASYCUDA system, severe disputes remain between the two sides.

KRG Delegation to Meet Sunday Over Disputes

According to information obtained by Channel8, the government negotiating delegation for the ASYCUDA system is scheduled to meet this coming Sunday with the KRG Minister of Finance and Economy. 

The delegation and the Finance Minister will discuss the outstanding points of contention with Baghdad, aiming to reduce the gaps on issues where an agreement with Iraq has not yet been reached.

Border Crossings and Taxes Anchor ASYCUDA Disputes 

Per the draft agreement prepared between Erbil and Baghdad, the ongoing disputes regarding the ASYCUDA customs system center around approximately 20 specific points. 

The disagreements primarily focus on official border crossings, tax identification numbers, double taxation, tax exemptions, and the import of electronic goods—where Baghdad demands prior approval. Additionally, recognition of free trade zones, temporary transit regulations, and several other matters remain key points of contention.

Baghdad’s August ASYCUDA Deadline Improbable 

Channel8 understands that a date for the KRG delegation's visit to Baghdad has not yet been finalized. 

A decision on whether the delegation will travel to Baghdad will be determined during Sunday's meeting, depending on whether progress is made.

Regarding the federal government's final timeline, Channel8 has obtained information revealing that the Iraqi government has set August as the deadline to implement the ASYCUDA system in the Kurdistan Region. 

However, given the volume of unresolved disputes, implementation within this timeframe appears highly improbable.