Kurdistan Regional Government Trade Challenges
The Iraqi government has enacted a regulation requiring Kurdistan Regional Government (KRG) businessmen to complete imports within a strict 72-hour timeframe, according to Mustafa Sheikh Abdulrahman, president of the Kurdistan Union of Importers and Exporters.
“Since October, any trader in the Kurdistan Region who imports goods and intends to transport them to other Iraqi provinces must ensure delivery within 72 hours,” Abdulrahman stated.
This new directive has adversely affected KRG businesses, as noted by Abdulrahman. He elaborated, “Traders must now undergo barcode scanning at border checkpoints, where the barcode date cannot expire. This situation restricts our traders’ ability to distribute their products to areas like Kirkuk, Mosul, and beyond.”
The predominant flow of imported goods originates from Turkey and Iran, with various products entering central and southern Iraq via these routes.
Abdulrahman indicated that the customs duty remains applicable for the 72-hour window, applicable at both the Ibrahim Khalil and Iranian border crossings.
He further emphasized the implications of the Iraqi government’s decision, stating a noticeable decline in trade activities, as some goods are bypassing KRG entirely, traveling directly from Basra to central and southern regions of Iraq. “While we can comply with the 72-hour requirement, there are logistical challenges; for example, we dispatched loads to the Mosul dam on Saturday night, but they weren’t allowed to pass until 8 PM on Sunday. These issues seem to stem more from political than legal barriers,” he noted.
Abdulrahman has engaged with officials at the Mosul Dam gate, who confirmed their intent to adhere to the Iraqi Council of Ministers’ directives. “The rationale behind this seems focused on exerting control over imports along borders federally overseen by the Iraqi government, especially amid ongoing discussions regarding the opening of more routes into Iraq,” he added.
