The Kurdistan Regional Government has called on Iraq’s federal authorities in Baghdad to move forward with a delayed agreement aimed at unifying customs procedures across the country, according to officials in Erbil.
The request focuses on the implementation of the UN-backed Automated System for Customs Data (ASYCUDA), a digital platform designed to modernise and standardise border operations. The system is already in use at federal border crossings and is intended to streamline trade processes between Iraq’s regions.
Officials say an understanding reached earlier in April between Erbil and Baghdad has yet to receive final approval from Iraq’s Ministerial Council for the Economy, leaving key provisions on hold.
A senior commerce official in Erbil said the Kurdistan Regional Government had formally asked for an urgent meeting to resolve outstanding issues and finalise the framework without further delay.
The proposal includes several demands from the Kurdistan Region, among them bilingual customs documentation in Kurdish and Arabic, improved access for traders to US dollars at official exchange rates, and the formation of joint committees to inspect and integrate unregulated border crossings.
It also calls for mutual recognition of trade documents and tax clearance certificates issued by both regional and federal authorities, a move aimed at reducing administrative friction for businesses operating across Iraq.
The KRG has also sought clarity on revenue-sharing mechanisms and the federal treasury’s share of customs income as part of broader efforts to increase non-oil revenues.
Talks between joint technical committees from both sides are ongoing, but officials say delays in political approval have slowed implementation.
The issue reflects continuing efforts to balance economic integration with administrative autonomy between Erbil and Baghdad, a long-standing challenge in Iraq’s federal system. The outcome of the customs unification agreement could have wider implications for trade efficiency and cross-border commerce in the region.
