No Definitive Timeline for ASYCUDA Implementation in Kurdistan Region
At a Glance
- No definitive timeline established for ASYCUDA customs rollout.
- Revenue control disputes block system implementation.
- Six unofficial border crossings remain unresolved issue.
- Framework awaits final signature.
Despite optimistic statements from Baghdad, a definitive timeline for implementing the ASYCUDA customs system across the Kurdistan Region has not been established, a customs official told Channel8.
Key Statements and Focus Area
- Baghdad has not yet responded to the Kurdistan Region's proposals to implement the system.
- Although Kurdish MPs in Baghdad say the system is scheduled for implementation in the coming days, KRG officials emphasize that no official steps will be taken until technical and political issues are resolved.
The Kurdistan Regional Government (KRG) and the Iraqi federal government previously reached an agreement to implement the digitized ASYCUDA system.
However, the main obstacles remain conflicts over the control of customs revenue and the fate of border crossings that have not yet been officially recognized by Baghdad.
The KRG wants to collect the tax itself and send half to Baghdad. In contrast, the federal government wants the revenue to go to the central treasury first before returning the Region's share.
Interior Minister Rebar Ahmed announced today that both government had resolved the final operational roadblock by locking in a 50-50 split of all border customs revenues.
Speaking to Channel8 earlier, a senior KRG official proposed an immediate, on-site division of border revenues to streamline financial administration. "It was also proposed to create two bank accounts—one under the Kurdistan Region Customs and the other under the Iraqi Border Ports Authority—to split the revenue 50/50 directly at the border crossings," the official added.
Erbil is also requesting the official recognition of six unofficial border crossings. However, joint committees have not yet taken any practical steps to inspect them or make a decision.
During a press conference on July 27, KRG Prime Minister Masrour Barzani stated that determining the exact volume of domestic revenues to be transferred to Baghdad requires bilateral cooperation.
He stressed that the KRG is making “serious efforts” alongside the Iraqi government regarding trade regulations and ASYCUDA implementation, expressing hope for a swift and final resolution.
FYI
The Iraqi federal government officially launched and implemented the first phase of the ASYCUDA digital customs system in Baghdad on January 1.
The system aims to digitalize all customs procedures and connect them to the Central Bank.
Following the latest breakthrough in talks between Erbil and Baghdad, the approved framework will be forwarded to the broader Iraqi Council of Ministers for final signature and endorsement by Prime Minister Ali al-Zaidi.
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