Iraq's Ministry of Finance has proposed forming a joint committee with the Kurdistan Regional Government (KRG) to oversee the implementation of the ASYCUDA customs system, assess official and unofficial border crossings, and determine a new mechanism for distributing customs revenues between Baghdad and Erbil.

Finance Ministry Submits ASYCUDA Recommendation

According to information obtained by Channel8, Federal Finance Minister Faleh al-Sari sent a recommendation to the Secretariat of the Iraqi Council of Ministers on the 5th of this month concerning the implementation of the ASYCUDA system, the recognition of official border crossings in the Kurdistan Region, and the distribution of customs revenues between Baghdad and Erbil.

Joint Committee Proposed to Assess Border Crossings

The recommendation's first proposal calls for the formation of a joint committee headed by the Border Crossings Authority and comprising representatives from the relevant institutions of the Kurdistan Regional Government.

The committee would conduct a comprehensive survey of the Kurdistan Region's border line, including visits to unofficial border crossings and border points.

Its task would be to submit a detailed report identifying which crossings meet the operational requirements to remain open and which do not, recommending the closure of unsuitable crossings by the Border Guards Command.

According to information obtained by Channel8, the committee would be required to submit its report to the Ministerial Council for Economy within 30 days for a final decision.

Joint Framework for Customs Exemptions

The second proposal calls for the two finance ministries to prepare joint minutes of the meeting to determine customs exemptions and permits.

Once approved by the Iraqi Council of Ministers, the agreed procedures would be implemented at all border crossings.

Two Proposals for Customs Revenue Distribution

Channel8 has also obtained details of the Finance Ministry's proposals for managing customs revenues collected at the Kurdistan Region's border crossings.

Under the first proposal, all customs revenues would be transferred to the Federal Ministry of Finance. In return, the ministry would commit to transferring 50% of the total monthly revenues back to the Kurdistan Region as part of its financing.

The second proposal calls for opening two separate bank accounts, with customs revenues deposited directly into them on a 50-50 basis. One account would belong to the federal government, while the other would be designated for the Kurdistan Regional Government.