According to the Iraqi Council of Ministers' decision numbered 2017/393, customs duty rates, which previously varied between 0 and 100 percent, have been divided into four classes: 0.5 percent, 10 percent, 15 percent, and 30 percent, and only the chapter number was taken as a basis for determining tax rates, and the new tariff came into force as of 01/01/2018.
Upon examining the new tariff schedule, which also aims to facilitate tax accrual and collection; tax rates for goods previously exempt from tax or with a tax rate of 5 percent have been increased to 10 percent, while the tax for goods with a tax of 40 percent, 50 percent, or more has been reduced to 30 percent.
The comparison table regarding this matter is provided in the link.
Although there are reports of an agreement between the Iraqi Kurdistan Regional Government (KRG) and the Central Iraqi Government regarding the transfer of border crossings under KRG control to the central government, currently, at the Habur Border Gate, which is the only land border gate usable for our exports to Iraq, the KRG's tariff is applied, while at the Safra Inland Customs Control Point located north of Baghdad, the Central Iraqi tariff is applied, in other words, customs duties are applied twice to Turkish export products, and efforts are continuing by the Ministry of Economy to resolve the issue.
This content has been translated using artificial intelligence technology.
