Iraq cancels internal tariffs

The new Erbil Arab

20 November 2016

Iraqi federal government and the powers of the Kurdistan region agreed to eliminate customs points between the region and the center and south of the country, and to stop charging for transporting goods to markets in various parts of Iraq.

The head of the Chamber of Commerce Dohuk governorate, Ayad Hussein, said that the instructions issued by the Council of Ministers of the Kurdistan region has been circulated to all the competent authorities, including chambers of commerce in the region, requires imposing new duties on imports of goods up to 25% of the item's value, in line with the fees Iraqi imposed by the federal government on the imports of goods declined for the region implemented earlier.

Hussein added, in a press statement, that the new measures would apply to 222 items in the first phase before you include other goods, in response to the request of the Iraqi federal government unify customs duties on imports of goods fees.

The Iraqi government has raised duties on imported goods to 25% of the value of the item, but the KRG authorities have refused to impose an increase on fees and kept them at a level of 5%, which prompted the federal government to develop a point to meet the new tariffs in areas that separates the provinces of Region Kurdistan and the central and southern Iraq, which has led to increased prices of goods in the region compared to the rest of Iraq.

Chairman of the Chamber of Commerce Dohuk and explained that the application fee increases would lead to the abolition of customs points of the Iraqi government, which will raise prices in the Kurdistan region, and expected increase in the movement of goods from Alaqilm to various parts of Iraq, especially coming from Turkey goods.
It is expected that the new increases are applied as of the month of November current.

It was the Iraqi traders who import goods from Turkey to pay two types of tariffs for the delivery of their goods to the center and south of the country. First paying fees at border ports and value of 5% of the Kurdistan Regional Government, and the second (25%) Vtsdd When removed from Iraqi Kurdistan to the rest of the country.

Source