At a Glance

• ASYCUDA execution minutes are finalized and await Council of Ministers approval.
• A KRG customs official confirmed the protocol will be circulated post-approval.
• Customs officials state prices on daily necessities will actually decrease.
• Border income has dropped due to regional U.S.-Iran military tensions.

The implementation minutes for the ASYCUDA custom system are finalized and pending Council of Ministers approval, amid declining customs revenues and reduced trade at the Ibrahim Khalil border crossing.

---

Key Statement and Focus Area

• A KRG customs official told Channel8 that the ASYCUDA minutes will be officially circulated following approval by the government. 
• Customs officials point out that this system will not increase the price of all goods, and tariffs on certain daily necessities will actually decrease.

---

Customs revenues at Kurdistan Region border crossings have dropped due to regional military tensions and the conflict between the U.S. and Iran. 

This decline coincides with a Central Bank decision to deny official-rate dollars to Kurdistan traders, stalling trade at the Ibrahim Khalil border crossing. 

To counter the resulting deficit, customs officials revealed that a new revenue-sharing mechanism is being implemented with Baghdad.

Speaking to Channel8, an official at the Kurdistan Region Directorate General of Customs said that border revenues at the Iranian crossings have decreased due to wartime repercussions. 

The official confirmed that an agreement has been reached on a 50-50 customs revenue split between Baghdad and Erbil. To execute this, he added, separate bank accounts for federal and regional customs authorities will open. 

Regarding the implementation of the border tracking system, the official noted that the surge in collections stems directly from government anti-corruption campaigns and tax evasion crackdowns.

The source also stressed that the ASYCUDA system is a registration and organization database, not a magic wand.

FYI

Iraq began fully operating the ASYCUDA electronic system at its federal border crossings in January 2026, and the KRG is scheduled to join the process in September.

Erbil and Baghdad spent several months of intensive negotiations before achieving a draft breakthrough. 

The Kurdistan Region currently utilizes 14,000 customs tariff classifications, which will be restructured under the ASYCUDA system to align precisely with international standards.

Despite the agreement on the automated customs data, both governments are still negotiating final regulatory alignment regarding regional tax collection authority versus central treasury reallocation, alongside the legal recognition or closure of six unofficial border crossings operating within the Kurdistan Region.

Dive Deeper: Handpicked Stories for You

Follow Channel8 for continuous updates:

Erbil And Baghdad Reportedly Agree On Equal Customs Split

No Definitive Timeline for ASYCUDA Implementation in Kurdistan Region

KRG Links ASYCUDA Customs Deployment To Border Formalization