2023-12-03T08:34:35+00:00
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Director of Ports, Major General Omar Al-Waeli, said in a statement received by Agency, “Under the direct sponsorship of Prime Minister Muhammad Shiaa Al-Sudani, a decision was issued by the Council of Ministers No. 23672 of 2023 to support the commercial process in Iraq and regulate the import process, by imposing customs tariffs due to their importance in Providing financial revenues to the state treasury and in order to simplify procedures for importers through our federal ports.”
He added, “The decision included that the customs duty for a 20-foot container be two million dinars in lump sums, and 3 million dinars in lump sums for a 40-foot container, and the demarcation for divided goods without a container will be in accordance with the approved customs duty amounts.”
The decisions also included, “suspension of the import license and obligating the General Authority of Customs to accept the certificate of origin and invoice issued by the Chambers of Commerce by relying on the national project for the electronic issuance validity system (QR) to facilitate the procedures and ensure their validity.”
He pointed out that “the additional customs duty rate for tobacco and cigarettes has been amended to be (20%) while the customs tariff rate is (10%), with the General Authority of Customs obligated to match the coordinator code for the goods entering with the coordinator code on the SWIFT remittance on the platform for transfers at the Central Bank.” It applies initially to (phones, cigarettes, and cars).”
He pointed out that “Customs matches the coordinator’s code for the transfer issued by Iraq with the imported goods code for the three goods above and asks the importer to prove the legitimacy of the financing if it is from other sources outside Iraq.”
He continued, “The decision gave importers of goods (phones, cigarettes, and cars) a period of one month to correct the customs and legal status of their goods, after which joint committees would be formed from the relevant authorities to investigate and inspect warehouses, shops, and roads that contain infringing goods and deal with them in accordance with the Customs Law and the Anti-Money Laundering Law.”
He added, “With regard to imported gold, Cabinet Resolution No. (23671) of 2023 was issued as follows:
1. The gold importer must be a company officially registered in the Companies Registration Department and allowed to transfer abroad.
2. Allowing the import of gold exclusively through air ports, and it shall be registered by customs and inspected and labeled by the Federal Central Agency for Standardization and Quality Control.
3. The fees and charges for importing gold were determined as follows:
A- Raw gold and bullion. The inspection fee for quantities of imported gold is 50 thousand dinars for every one kilogram, and 100 thousand dinars customs duties are collected for every one kilogram.
B – Gold jewelry, an amount of 250 thousand dinars customs duties shall be collected for every one kilogram, and 50 thousand dinars inspection fees.
D- Gold imported or exported in violation of the aforementioned controls is considered to be in violation of the law and is dealt with in accordance with the amended Customs Law No. (23) of 2018 and the Anti-Money Laundering and Terrorist Financing Law No. 39 of 2015. Joint teams are formed from customs investigation officers, the National Security Service, and the Organized Crime Directorate to investigate. Inspection of imported or exported gold is outside the controls.”
He concluded by saying, “The Border Ports Authority, being the regulatory and supervisory authority over the work of the departments operating at the border crossings, is directly following up on the implementation to achieve the desired goals of the decision, and it is one of many steps taken by the government to tighten control over revenues and financial transfers.”
What are the potential economic impacts of Iraq’s new customs regulations on importers and exporters?
Interview between Time.news Editor and Customs Policy Expert
Interviewer (Time.news Editor): Good afternoon, and thank you for joining us today. We’re here to discuss some significant new customs regulations recently announced by the Iraqi government. To help us unpack this, we have with us Dr. Layla Hassan, an expert in customs policy and international trade. Welcome, Dr. Hassan!
Dr. Layla Hassan: Thank you for having me! It’s a pleasure to be here.
Interviewer: The announcement was made by Major General Omar Al-Waeli under the sponsorship of Prime Minister Muhammad Shiaa Al-Sudani. Could you give us some context on why these changes are being implemented now?
Dr. Hassan: Absolutely. The decision is part of a larger effort to regulate the commercial landscape in Iraq and streamline the import process. By imposing new customs tariffs, the government aims to enhance financial revenues for the state treasury, which is crucial for national economic stability, especially given the ongoing recovery from previous economic challenges.
Interviewer: It’s interesting that you mention financial stability. The new customs duties set specific fees for 20-foot and 40-foot containers. How do these rates compare to previous tariffs, and what impact do you think they’ll have on trade?
Dr. Hassan: The new rates—2 million dinars for a 20-foot container and 3 million for a 40-foot container—are designed to simplify the tariff structure and improve clarity for importers. If we look at the previous tariffs, they might have been more variable and perhaps less predictable. This change should theoretically reduce confusion and enforce compliance among importers, which in turn could increase governmental revenues and help stabilize the market.
Interviewer: The announcement also mentioned suspending import licenses and mandated that importers must use certificates from the Chambers of Commerce validated by a QR system. How does this shift affect the regulatory environment for businesses?
Dr. Hassan: By moving to an electronic validity system with QR codes, the government is modernizing its processes, which is a significant step forward. This digitization will likely enhance efficiency and transparency in customs procedures. However, it also places the onus on businesses to ensure their documentation is correct and up-to-date. This could be challenging for smaller importers who may not have the resources to navigate these changes as easily as larger companies.
Interviewer: Speaking of challenges, there’s a notable change to the customs duty on tobacco products, with an increase in the additional customs duty rate to 20%. What do you see as the motivations behind this specific adjustment?
Dr. Hassan: This increase likely serves a dual purpose: discouraging tobacco consumption for public health reasons, and generating revenues for the government at the same time. Tobacco products tend to carry higher social costs due to health concerns, so such increases can also reflect a commitment to public health policy. It’s a delicate balance, however, as it can also impact consumer prices.
Interviewer: The new regulations also stipulate that importers of specific goods—including phones, cigarettes, and cars—need to prove the legitimacy of their financing. What are the implications of this requirement for the import sector?
Dr. Hassan: This requirement is primarily aimed at combating money laundering and ensuring that finance for imports is legitimate and traceable. While this can enhance security in transactions, it may also complicate matters for importers who are engaging in perfectly legal trade practices. They will need to have all documentation in place and show that their funding is above board, which could slow down the import process if they aren’t prepared.
Interviewer: the cabinet resolution also mentions restrictions for gold imports. Can you shed some light on that?
Dr. Hassan: Certainly! By requiring that gold importers are officially registered companies, the government aims to create more accountability in what is often a high-value, high-risk area of trade. It reflects a broader trend toward regulating precious metal trade to prevent illegal activities such as smuggling and money laundering.
Interviewer: Dr. Hassan, thank you for providing such insightful analysis on these new regulations. It’s clear that while these changes present opportunities for increased revenue and improved compliance, they also bring about new challenges for the import business landscape in Iraq.
Dr. Hassan: Thank you for having me! It will be fascinating to see how these regulations unfold and their long-term impact on the economy.
Interviewer: Until next time, thank you for joining us at Time.news, where we keep you informed about the latest developments that matter.