Ali Zuweid's Political Programme · Proposed legislation · Economy, Finance, Investment and Employment
Customs, Trade and Facilitation of Border Procedures Bill
A federal bill replacing an outdated customs framework with a modern code that unifies policy and procedures, connects clearance to the national single window, shifts from widespread inspection to risk management and post-clearance audit, and guarantees rapid release, transparent valuation, advance rulings and traders' rights while protecting revenue and combating smuggling.
Executive Summary
Iraq needs to move its customs system from a law enacted in the nineteen-eighties and procedures built around paper documents and manual inspection to a modern code consistent with the transformation already under way in the General Commission of Customs. The Ministry of Finance has announced that ASYCUDA now covers electronic declarations, payments and manifests and connections with several government bodies, and that work has moved to tools including intelligent selectivity, valuation, post-clearance audit and authorised economic operators. The legal problem is no longer a lack of technology, but that the primary legislation was not designed for this environment.
The bill goes beyond digitising old procedures. It redesigns the customs process itself: pre-arrival processing; submitting data once; uniform rules at border crossings; risk management instead of inspecting everyone; release against security during financial disputes; post-clearance audit instead of holding goods; advance rulings on classification, origin and valuation; an authorised economic operator programme; a clear review and appeal pathway; and rules distinguishing good-faith error from fraudulent smuggling.
Constitutionally, the bill distinguishes fiscal and customs policy and sovereign foreign trade policy, which are exclusive federal powers, from customs administration, a shared power exercised in coordination with regions and governorates. It therefore establishes one national framework for tariffs, classification, origin, valuation and data, with a permanent mechanism for shared administration and interoperability.
The bill retains Customs Tariff Law No. (22) of 2010, as amended, because it determines duty rates and schedules, while replacing Customs Law No. (23) of 1984, as amended, with a modern procedural code. It does not remove powers from the Border Ports Commission or health, agricultural and security bodies; it requires coordination, joint inspection and the single window.
Iraq remains in the process of accession to the World Trade Organization and is not a full member as of this document's date. The draft therefore uses the Trade Facilitation Agreement, World Customs Organization standards and the Revised Kyoto Convention as modern legislative references, without presenting them as membership obligations already applicable to Iraq of their own force.
Constitutional and legal context
The Iraqi Constitution establishes a dual basis for customs. Article (110/Third) makes fiscal and customs policy and regulation of trade policy across regional and governorate boundaries exclusive federal powers. Article (114/First) makes customs administration a shared power exercised in coordination with regional governments and governorates not incorporated into a region, and regulated by law. Article (28) also establishes fiscal legality: taxes and fees may not be imposed, amended, collected or waived except by law.
As of 2026, customs work rests on Customs Law No. (23) of 1984, as amended, alongside Customs Tariff Law No. (22) of 2010, as amended, and legislation on trade regulation, product protection and sectoral restrictions. In January 2026, the Ministry of Finance confirmed continued reliance on Article (123) of the 1984 Law for re-export matters.
Institutional Position and Digital Transformation
The General Commission of Customs implements laws, decisions and instructions within its remit, studies customs legislation, combats smuggling and provides opinions on trade and transit agreements. In recent years, administration has begun moving into a digital environment through ASYCUDA, a joint project of the Ministry of Finance and the United Nations Conference on Trade and Development.
According to official Ministry of Finance information, Iraq moved to electronic declarations from the beginning of 2025. Electronic manifests, payments, exports through the system and connections to several bodies were activated; a valuation system was introduced and intelligent selectivity began on a pilot basis in 2025. The plan included pre-arrival risk analysis, post-clearance audit, authorised economic operators, and connections with government bodies and regional systems.
Legislative Gap
| Area | Problem | Remedy |
|---|---|---|
| Primary framework | A customs law whose structure dates to 1984. | Repeal and replacement with a modern code. |
| Federalism | Potential differences in application between border crossings. | A unified national framework and constitutional coordination mechanism. |
| Inspection | Widespread inspection increases time and cost. | Risk management and post-clearance audit. |
| Data | Repeated submission of documents. | A single window and one-time data submission. |
| Value | Risk of using reference values instead of valuation. | Transaction value, sequential methods and guaranteed review rights. |
| Appeal | A need for an independent, rapid pathway. | Administrative review, reasoned decisions and judicial appeal. |
Proposed legislative policy
The design treats modern customs as data-driven fiscal, trade and security border administration. Efficiency is measured not by the number of consignments opened, but by the state's ability to identify the right risks, collect the correct amounts, prevent prohibited goods and release legitimate trade with the least possible time and cost.
The bill retains the General Commission of Customs rather than creating a parallel institution. ASYCUDA, or any approved national system, becomes an adaptable implementation tool rather than a statutory name that locks in the future. The single window is also established by law so that inter-agency data sharing becomes an institutional duty.
Text of the bill
Chapter One — General Provisions
Article 1 — Title and scope
This Law shall be called the “Customs, Trade and Facilitation of Border Procedures Law”. It applies to all customs procedures concerning the entry, exit, transit, storage and movement of goods under customs control, and to trade-related border procedures performed by public bodies at land, sea and air ports and in areas and warehouses under customs control.
Article 2 — Objectives
This Law aims to harmonise customs policy and procedures throughout the Republic of Iraq; protect revenue, the economy and society; accelerate legitimate trade; reduce cost, time and paperwork; strengthen transparency and predictability; adopt risk management and post-clearance audit; create a legal environment for electronic clearance and the single window; combat smuggling, fraud and manipulation of value, origin and classification; and guarantee traders' rights to review, grievance procedures and appeal.
Article 3 — Definitions
For this Law: “Commission” means the General Commission of Customs; “customs authority” means the Commission, its formations and authorised staff; “single window” means the national platform through which import, export and transit data and documents are submitted once to the competent bodies; “customs declaration” means the electronic declaration, or exceptional paper declaration, identifying the goods and requested customs procedure; “release” means making goods available for disposal after requirements are fulfilled or secured; “authorised economic operator” means a person meeting compliance, security, record-keeping and solvency criteria; “post-clearance audit” means examining records, systems and transactions after release; “advance ruling” means a binding decision issued before importation on a specified matter; and “risk” means the likelihood of non-compliance and its consequences.
Article 4 — Principles of application
Implementing bodies shall observe legality, proportionality, non-discrimination, transparency, uniform treatment, minimum necessary intervention, electronic processing as the default, avoidance of requesting data held by another government body where automatic exchange is possible, and a clear review and appeal pathway.
Article 5 — Relationship with the Constitution and allocation of powers
Fiscal and customs policy and sovereign foreign trade policy shall be determined federally under the Constitution. Customs shall be administered through coordination between federal authorities, regional governments and governorates not incorporated into a region under Article (114/First). Tariffs and rules on classification, origin, valuation and core data shall apply uniformly throughout Iraq, with due regard to shared administration mechanisms established by law.
Chapter Two — Administration and Institutional Coordination
Article 6 — Powers of the General Commission of Customs
The Commission shall implement this Law, the Customs Tariff Law and related legislation; manage electronic clearance systems; verify classification, origin and value; collect amounts due; manage risks; conduct post-clearance audits; administer guarantees; combat customs violations; issue advance rulings; develop databases; publish non-confidential guidance and statistics; and cooperate internationally within the law.
Article 7 — Shared administration and coordination with regions and governorates
The Council of Ministers shall establish a permanent customs coordination mechanism comprising the Ministry of Finance, the Commission and competent regional and governorate bodies. It shall harmonise working procedures, data, tariffs, classification, origin and valuation and ensure electronic system interoperability. Local administrative arrangements may not create parallel tariffs or discriminatory treatment of goods following their lawful entry into Iraq's customs territory.
Article 8 — National Trade Facilitation Committee
The Council of Ministers shall form a National Trade Facilitation Committee comprising the relevant ministries and bodies, with private-sector advisory representation. It shall simplify requirements, measure release times, eliminate duplication, monitor the single window and align procedures with Iraq's international obligations and WTO accession process.
Article 9 — Role of the Border Ports Commission and regulatory bodies
Statutory powers of the Border Ports Commission and security, health, agricultural, environmental and technical bodies shall remain in place. These bodies shall act through unified coordination at the crossing and the single window, without repeating inspections or collecting data again except for a documented legal or technical reason.
Article 10 — Integrity and conflicts of interest
A customs officer or other official involved in clearance may have no direct or indirect interest in a transaction, customs brokerage, transport company, warehouse or intermediary within their work remit. The Commission shall establish job rotation, conflict-of-interest declarations, system access logs, regular auditing and protected reporting channels under applicable law.
Chapter Three — Publication, Transparency and Advance Rulings
Article 11 — Customs information portal
The Commission shall publish free, up-to-date laws, regulations and instructions; the tariff schedule in force; import, export and transit requirements; documents, fees and charges; procedures and working hours; appeal routes; application forms; and authorised economic operator requirements. An unpublished procedure may not be invoked against a trader where publication was required.
Article 12 — Consultation before substantial changes
Draft general procedural instructions substantially changing compliance costs, documentation or declaration systems shall be published, with reasonable time for comments unless necessity, security or protection of health requires otherwise.
Article 13 — Advance rulings
An importer, exporter or legal representative may request an advance ruling on customs classification, origin, valuation methodology or another matter specified by instructions. A reasoned ruling shall issue within ninety days of a complete application and bind the Commission in relation to the applicant for the stated period unless facts or law change or fraud is established. Administrative review and appeal shall be available.
Article 14 — Publication of practical principles
The Commission may publish anonymised summaries of advance rulings, review decisions and applied principles where useful for consistent practice, while protecting trade secrets and personal data.
Chapter Four — Electronic Clearance and the Single Window
Article 15 — Electronic processing as the default
Customs declarations, manifests, licences, certificates, notices, payments, guarantees, decisions and correspondence shall be electronic by default. Paper may be used only during outages, force majeure or for categories specified by instructions, and the transaction shall subsequently be entered into the electronic system.
Article 16 — Legal evidentiary status
Electronic records, documents, signatures, seals and messages meeting applicable legal requirements shall have the same evidentiary status as their paper equivalents. The system shall provide a chronological audit trail identifying who created, amended and approved each action.
Article 17 — National single window for trade
A national single window shall be established as the primary channel for submitting import, export and transit data and documents. Shared data shall be submitted once and distributed electronically to competent bodies. Once a requirement has been integrated, no body may create a parallel requirement outside the window except by law or for a published temporary technical reason.
Article 18 — Inter-agency data exchange
Public bodies shall enable electronic verification of permits, certificates, approvals, invoices, certificates of origin and logistics data within legal limits. Data exchange shall be purpose-specific, logged and proportionate to need, subject to confidentiality and data protection rules.
Article 19 — Business continuity and outages
The Commission shall maintain a business continuity and disaster recovery plan and alternative clearance pathway for system outages. A trader complying with the alternative procedure shall not bear a penalty arising solely from a documented government system failure.
Chapter Five — Registration, Representation and Customs Brokers
Article 20 — Customs registration
Every importer, exporter, carrier and customs broker shall have a unique identifier linked to relevant government identifiers. Registration shall be electronic. Documents already verified through a reliable government database shall not be requested again unless changed or further verification is justified.
Article 21 — Right to declare and be represented
The owner of goods or person entitled to dispose of them may lodge a declaration directly or through an authorised representative or customs broker. A trader legally and technically able to declare directly shall not be required to use a broker. The brokerage profession and its competence and liability requirements may be regulated.
Article 22 — Regulation of customs brokers
Customs broker licences shall be granted against objective criteria including competence, integrity and professional requirements. Instructions shall regulate training, examinations, professional insurance and disciplinary records. A licence may be suspended or withdrawn by a reasoned decision open to appeal.
Chapter Six — Pre-Arrival Data and Manifests
Article 23 — Advance declaration
Declarations and documents may be submitted before goods arrive, enabling the Commission to begin processing and risk analysis beforehand. The system shall permit amendment of preliminary data under clear rules before a defined legal point, without penalty where the amendment is in good faith and no enforcement or audit action has begun concerning it.
Article 24 — Electronic manifest
The carrier or agent shall submit an electronic manifest within the time limits and with the data prescribed by instructions for each transport mode. Required data shall be proportionate to risk and operational necessity and shall not unnecessarily duplicate data available from the same source.
Article 25 — Urgent and perishable goods
Priority shall be given to live animals, perishables, urgent medicines and medical supplies, humanitarian relief, and goods whose delay would cause serious harm, while retaining necessary controls and permitting samples or guarantees after release where the law allows.
Chapter Seven — Customs Classification, Origin and Valuation
Article 26 — Classification
Goods shall be classified under the Harmonized Commodity Description and Coding System and national schedules in force. The Commission shall issue procedural explanatory notes that neither amend tariffs nor create new duties, and shall observe updates that lawfully enter into force.
Article 27 — Origin
Preferential and non-preferential origin rules shall be determined under applicable laws and agreements and applied transparently and verifiably. An origin certificate may not be rejected for an immaterial formal error if origin can be verified otherwise, unless a treaty in force provides otherwise.
Article 28 — Transaction value principle
Where its conditions are met, customs value shall be the price actually paid or payable for goods sold for export to Iraq, after additions and exclusions specified by instructions. Assumed values or general minimum values shall not automatically replace examination of transaction value.
Article 29 — Alternative valuation methods
If transaction value cannot be accepted for legally justified reasons, the Commission shall proceed sequentially to the value of identical goods, similar goods, the deductive method, computed value and a flexible method based on the preceding principles. The importer shall be informed why the preceding method was rejected.
Article 30 — Doubts concerning value
Where reasonable doubt exists about the declared value, the Commission shall request specific clarification or additional evidence. If doubt persists, it shall issue a reasoned decision. A valuation dispute shall not prevent release where the trader provides sufficient security for the potential difference, unless independent lawful grounds for detention exist.
Article 31 — Price databases
Price databases and indicators may support risk analysis and verification, but shall not automatically replace lawful valuation methods. A reference price alone shall constitute neither conclusive evidence of a violation nor the sole basis for imposing a value.
Chapter Eight — Risk Management, Inspection and Post-Clearance Audit
Article 32 — Risk management
The Commission shall adopt a national risk management system directing inspections towards higher-risk consignments, persons and transactions and expediting low-risk movements. It shall use professional criteria including the goods' nature, classification, origin and value, transport route, compliance record and enforcement intelligence. Arbitrary discriminatory design is prohibited.
Article 33 — Selectivity
Release channels and inspection rates shall be risk-based, with limited random selection permitted to measure compliance. The Commission shall regularly review selectivity rules and restrict access to their detailed criteria to prevent circumvention.
Article 34 — Joint inspection
Where more than one body must inspect a consignment, inspections shall, as far as possible, be conducted jointly or sequentially at one place and time. Repeated opening of a container or sampling for the same purpose is prohibited without a documented reason.
Article 35 — Samples and laboratory results
Samples shall be taken under an electronic record specifying quantity, reason and chain of custody. The owner may request a counterpart sample where the material permits. Instructions shall establish how results may be challenged and a second examination requested from an accredited body.
Article 36 — Post-clearance audit
The Commission may audit records, contracts, invoices, systems and inventory after release within the applicable limitation period. Case selection shall be risk-based. Audit shall begin with notice specifying its scope, the liable person's rights and a reasonable period for providing data, unless precautionary necessity authorised by law requires otherwise.
Article 37 — Record retention
Persons subject to this Law shall retain transaction-supporting records for five years after release or any longer period required by special legislation. Electronic retention is permitted if data remain intact, retrievable and verifiable.
Chapter Nine — Release, Guarantees and Payments
Article 38 — Release without unnecessary delay
Goods shall be released immediately upon fulfilment of regulatory requirements or provision of acceptable security. They may not be detained merely over a disputed amount that can be secured, unless prohibited, restricted, required as evidence of a crime, or subject to a contrary judicial decision.
Article 39 — Release against security
Goods may be released against a bank, cash or electronic guarantee, a comprehensive guarantee, or another lawful instrument securing a debt or potential difference. Security shall not exceed the amount reasonably at risk and shall be refunded or discharged immediately when no longer required.
Article 40 — Electronic payment
Customs duties, taxes and charges shall be payable electronically through approved channels integrated with the clearance system. An electronic receipt shall issue immediately. Amounts may not be collected outside official systems, nor may services not prescribed by law be imposed.
Article 41 — Separation of release from final settlement
The Commission may use periodic accounts and comprehensive guarantees for regular traders, releasing goods on accepted declarations and conducting final settlement within a defined cycle, without prejudice to post-clearance audit and collection rights.
Chapter Ten — Authorised Economic Operators and Simplified Procedures
Article 42 — Authorised economic operator programme
The Commission shall establish an authorised economic operator programme based on compliance record, records management, financial solvency and supply-chain security appropriate to the activity. Admission criteria shall be public and objective; refusals shall give reasons and be open to appeal.
Article 43 — Programme benefits
Benefits, according to authorisation level, shall include reduced inspection, priority processing, release on minimum information followed by completion, clearance at the operator's premises or an authorised place, a comprehensive guarantee and a dedicated contact channel. No benefit shall waive a substantive legal requirement or prevent audit.
Article 44 — Mutual recognition
The federal government may conclude arrangements or agreements mutually recognising authorised economic operator programmes under its constitutional and legal powers, supporting secure supply chains.
Chapter Eleven — Special Customs Procedures
Article 45 — Transit
Transit procedures shall be simplified and data and guarantees limited to what protects revenue and security. No customs duty shall be charged on transit goods not entered for domestic consumption, although legally prescribed charges for actual services may be collected. Electronic seals, tracking and risk management may replace continuous escort where sufficient.
Article 46 — Temporary admission
Goods may be admitted temporarily with full or partial suspension of duties, subject to purpose, duration and security, including project equipment, exhibition and professional goods, containers and means of transport, provided they are re-exported or otherwise lawfully regularised.
Article 47 — Customs warehouses
Public and private warehouses under customs control may be licensed. Instructions shall specify security, record-keeping, guarantee and goods-disposal requirements. Supervision shall be based on systems, records and risk rather than continuous physical presence where electronic oversight suffices.
Article 48 — Free zones
Customs control shall apply to goods moving into and out of free zones to protect the Treasury and prevent unlawful diversion, without obstructing permitted re-export or manufacturing. Free-zone records shall be electronically integrated with the Commission.
Article 49 — Re-export and duty refunds
The Commission shall regulate re-export and refund or remission of duties in cases provided by law, simplifying procedures where goods can be matched electronically. Instructions shall set decision and refund deadlines and procedures for defective goods or goods sent in error.
Chapter Twelve — Trade, Restrictions and Border Licences
Article 50 — Legality of restrictions
Import or export of goods may not be prohibited, restricted or made subject to a licence or certificate except under a law, regulation or publicly announced decision within lawful powers. The issuing body shall specify the restriction's purpose, scope, duration, commodity codes and compliance requirements.
Article 51 — Integration of licences into the single window
Import and export licences and related certificates shall be administered electronically through the single window. Forms, documents, fees and processing periods shall be public. Refusals shall give reasons and be open to administrative review.
Article 52 — Health and technical measures
This Law shall not prejudice the powers of bodies responsible for health, plant health, specifications, standardisation, environment or security. Their border procedures shall nevertheless be coordinated, grounded in law and risk, and integrated into the single window as far as possible.
Article 53 — Trade remedies
Anti-dumping duties, countervailing measures and safeguards, where established under legislation in force and competent procedures, shall be implemented through the unified customs system. Customs authorities may not create such measures on their own initiative.
Chapter Thirteen — Traders' Rights, Review and Appeals
Article 54 — Traders' rights charter
Every trader is entitled to professional, non-discriminatory treatment; information; reasons for document or inspection requests; written, reasoned decisions affecting rights or property; representation; protection of information; return of guarantees or overpayments; administrative review; and appeal.
Article 55 — Voluntary correction
A trader may voluntarily correct an error or omission before official discovery. Correction shall require payment of differences and any statutory interest, with administrative penalties reduced or waived under rules considering good faith, the nature of the error and recurrence, unless the act is fraudulent or criminal.
Article 56 — Administrative review
Classification, origin, valuation, collection, penalty and administrative enforcement decisions may be challenged before a review unit whose members did not issue the contested decision. An objection shall be filed within thirty days of service and determined by a reasoned decision within sixty days of a complete file, unless specialist technical expertise is required.
Article 57 — Judicial appeal
The administrative review decision, or expiry of the decision period without a ruling, shall be appealable before the competent court under applicable rules. Payment or provision of security shall not extinguish the right to appeal or recover amounts found not to be due.
Article 58 — Refunds
Duties, taxes and charges collected unlawfully or in excess shall be refunded within thirty days after entitlement is established and data are complete. Set-off against a final debt due is permitted under the law.
Chapter Fourteen — Violations, Smuggling and Penalties
Article 59 — Proportionality and distinction between error and fraud
Customs liability shall be proportionate to the nature of the act, harm, intent and compliance record. Good-faith clerical or interpretive errors shall not be treated as smuggling, forgery or fraudulent concealment.
Article 60 — Administrative violations
Administrative violations falling short of crimes, including delays and non-fraudulent data deficiencies, shall be defined and subject to graduated fines with specified limits. Fines shall not serve as a means of confiscating legitimate goods or disproportionately disrupting activity.
Article 61 — Customs smuggling
Smuggling includes covert import or export or movement through unauthorised crossings; concealment of prohibited or dutiable goods with intent to evade controls; use of forged documents, seals or declarations to evade duties or restrictions; and any act expressly defined by law as smuggling where the required intent is present.
Article 62 — Aggravating circumstances
Penalties shall be increased where smuggling is committed by an organised group or a public official abusing office; concerns weapons, drugs or dangerous or prohibited materials; is repeated professionally; or involves organised use of forged systems or documents.
Article 63 — Confiscation
Property may be confiscated only under the law by a competent authority's decision, respecting bona fide third-party rights. Confiscation shall concern the goods involved in the offence or means deliberately used to commit it, within legal limits.
Article 64 — Settlement of minor violations
The Commission may administratively settle minor violations under published rules ensuring equal treatment and excluding serious crimes, corruption and organised forgery. Settlements shall be electronically recorded and audited.
Chapter Fifteen — Data, Confidentiality and Cooperation
Article 65 — Confidentiality of information
Unpublished commercial, tax and customs information obtained in implementing this Law shall be confidential. Disclosure is permitted only to its subject, with their consent, under law or judicial order, or for lawful exchange between competent bodies. Use for private gain or commercial competition is prohibited.
Article 66 — Analysis and use of data
Data may be used for risk management, statistical analysis, combating smuggling and evaluating performance and policy, under restricted and monitored access powers. Statistical data shall be published in aggregate form without revealing trade secrets.
Article 67 — International cooperation
Within agreements in force and lawful powers, the Commission may exchange information and administrative assistance with foreign customs administrations and international organisations, respecting confidentiality, reciprocity, national security and rights protection.
Chapter Sixteen — Performance Measurement and Accountability
Article 68 — Time release study
In cooperation with border bodies, the Commission shall periodically study release times at principal crossings and publish aggregate findings identifying delays and corrective measures, without revealing confidential security or commercial information.
Article 69 — Service indicators
The Commission shall publish periodic indicators covering average clearance time, the share of electronically processed declarations, risk-channel shares, guarantee and overpayment refund times, advance ruling numbers and review outcomes. Indicators shall measure improvement without becoming enforcement or fine quotas that encourage arbitrary conduct.
Article 70 — Complaints
The Commission shall provide an independent channel for complaints about delay, unofficial payment requests, ill-treatment or system outages, with tracking numbers and protection of reporters under the law. Complaints shall not replace statutory review or appeal procedures.
Chapter Seventeen — Transitional and Final Provisions
Article 71 — Continuation of tariffs and duties
Customs Tariff Law No. (22) of 2010, as amended, and schedules and decisions issued under it shall remain effective unless amended or repealed under the Constitution and law. This Law itself creates no new customs duty and changes no existing duty rate.
Article 72 — Repeal of the previous Customs Law
Customs Law No. (23) of 1984, as amended, shall be repealed when this Law enters into force. Its implementing regulations, instructions and decisions shall continue insofar as consistent with this Law for no more than eighteen months or until replaced, whichever is earlier.
Article 73 — Transition of transactions and cases
Transactions begun before entry into force shall continue under the procedural rules most suitable for their resolution, provided no acquired right or final legal position is impaired. Earlier crimes and violations shall remain subject, where applicable, to constitutional rules on the law more favourable to the accused.
Article 74 — Digital transition timetable
Within six months of entry into force, the government shall adopt a binding plan to complete the single window, licence and certificate exchange, electronic advance rulings, the authorised economic operator programme, post-clearance audit and guarantees system. Phased implementation may reflect crossing readiness but shall not produce multiple legal rules or tariffs.
Article 75 — Uniform national application
Within twelve months, the federal government, coordinating with regional governments and governorates not incorporated into a region, shall establish a unified implementation protocol covering tariffs, data, valuation, origin, classification, guarantees, electronic systems and reconciliation of differences, respecting exclusive customs-policy powers and shared customs-administration powers.
Article 76 — Regulations and instructions
The Council of Ministers shall issue implementing regulations. The Minister of Finance and competent bodies shall issue instructions within their respective powers. Regulations or instructions shall not create a duty, prohibition or substantive condition without a basis in law.
Article 77 — Entry into force
This Law shall enter into force ninety days after publication in the Official Gazette, except provisions for which this Law or the transitional regulations prescribe a later date.
Statement of reasons
This Law is enacted to modernise customs legislation consistently with Iraq's Constitution and the actual digital transformation of customs administration; unify national policy and procedures while regulating shared administration; facilitate legitimate trade and protect revenue and society; adopt electronic clearance, the single window, risk management, post-clearance audit, advance rulings and authorised economic operators; guarantee transparency and traders' review and appeal rights; and combat smuggling and fraud more effectively and proportionately.
Explanatory memorandum
Why replacement rather than partial amendment?
The required transformation is structural: advance data, electronic records, the single window, risk management, advance rulings, post-clearance audit, release guarantees and authorised operators function together. Amending an old law through dozens of provisions would leave an inconsistent structure, making repeal and replacement legislatively clearer.
Separating customs legislation from tariff legislation
Tariff Law No. (22) of 2010 and its schedules remain the reference for setting duties, while this bill governs declaration, valuation, collection, release, audit and review. This separation prevents the executive from creating new duties through procedural instructions.
Customs valuation
The draft begins with transaction value, followed by sequential methods where it cannot be accepted. Price databases assist risk management but should not become an automatic legal price overriding evidence and review.
Risk management and post-clearance audit
The greater the Commission's capacity to analyse data after release, the less need to delay consignments at the border. Post-clearance audit examines a full commercial cycle, records and contracts, offering greater depth than inspecting one container, but requires time limits and safeguards for the liable person.
Iraq and the World Trade Organization
As of the document's preparation date, Iraq is an observer government undergoing accession. Trade facilitation rules are therefore used as a modern legislative benchmark and preparation for accession, not as membership obligations already applicable of their own force.
Alignment with Existing Legislation
| Legislation | Proposed status |
|---|---|
| Customs Law No. (23) of 1984, as amended | Repeal and replacement. |
| Customs Tariff Law No. (22) of 2010, as amended | Remains in force. |
| Border Ports Commission Law | Alignment and coordination without removing powers. |
| Trade Regulation Law, as amended | Review licensing and restriction provisions and connect them to the single window. |
| Iraqi Products Protection Law | Remains in force; measures implemented through customs. |
Implementation requires a legislative schedule identifying references to Customs Law No. (23) of 1984 in laws in force and replacing them with new references without disrupting existing licences or exemptions.
Transitional Provisions and Implementation Requirements
| Period | Requirement |
|---|---|
| 0–3 months | Initial instructions, outage procedures, administrative review and advance ruling forms. |
| 0–6 months | Single-window plan, government data map, joint-inspection protocols and post-clearance audit programme. |
| 6–12 months | Authorised economic operators, comprehensive guarantees, digital advance rulings and release-time indicators. |
| Up to 12 months | National implementation and interoperability protocol with regions and governorates. |
| Up to 18 months | Replace old instructions and end routine paper procedures. |
Financial and Implementation Implications
The bill requires no new authority. The principal infrastructure already exists within the Ministry of Finance and General Commission of Customs, and ASYCUDA is already operational with published funding. Additional costs therefore centre on system integration, data centres and continuity, cybersecurity, training, process redesign, the single window, audit and review programmes.
No new total should be stated without a detailed cost study: substantial digital investment is already in place and funded, and a total could double-count the ongoing project. The Council of Ministers and Ministry of Finance must prepare a funding-gap statement distinguishing existing commitments from the Law's incremental costs.
International Standards and Comparison
The World Customs Organization's Revised Kyoto Convention emphasises transparency, harmonisation and simplification, maximum use of information technology, minimum necessary control, risk management, auditing, inter-agency coordination and partnership with trade. These principles inform the bill's chapters without copying Convention provisions.
The bill also draws on WTO Trade Facilitation Agreement subjects: publication, advance rulings, pre-arrival processing, electronic payment, separation of release from final duty determination, risk management, post-clearance audit, authorised operators, border cooperation and the single window.
Sources and references
- Constitution of the Republic of Iraq — Iraqi Council of RepresentativesArticles 28, 110 and 114 on fiscal legality, customs policy and shared administration.
- Customs Tariff Law No. (22) of 2010 — Iraqi GazetteThe law in force establishing tariff schedules and the duty-imposition mechanism.
- Ministry of Finance — Customs Automation and Modernisation Project / ASYCUDAOfficial source for electronic declarations, payments, manifests, intelligent selectivity and government connections.
- Ministry of Finance — General Commission of CustomsThe Commission's powers, legislative implementation, anti-smuggling work and engagement with trade agreements.
- Ministry of Finance — 18 January 2026A recent reference confirming continued reliance on Customs Law No. (23) of 1984, as amended.
- Ministry of Justice — Trade Regulation Law, as amended
- Ministry of Justice — Iraqi Products Protection Law, as amended
- World Trade Organization — Iraq's statusIraq is an observer government undergoing accession as of the document's date.
- World Customs Organization — Revised Kyoto ConventionStandards for transparency, simplification, technology, risk management and auditing.
- World Customs Organization — Release, clearance and risk management
- UNCTAD — Digital transformation of customs in Iraq
- UNCTAD — ASYCUDA Report 2025
Proposed legislation within Ali Zuweid's Political Programme · Prepared by Ali Zuweid