1-SHIPMENTS ENTERING THE KRG REGION AND DESTINED TO CENTRAL AND SOUTHERN IRAQ

As per beginning of May 2016, all trucks carrying shipments coming through the KRG Region with final destinations Central or/and Southern Iraq are obliged to stop at Abu Ghuraib Customs in Baghdad to be controlled and checked before they reach their final destinations for offloading.

Reason is that as from the 1^st of January 2016, the import customs duties have changed from a flat rate of 5% to various applicable rates based on the commodity of the goods imported.

Iraqi Central Customs, more strictly, started enforcing the new tariff and obliging the importers to pay the difference between the duties paid in the KRG Region and the new tariff.

Today October 2016, this procedure is fully applied. All shipments are stopped, checked, controlled at the Customs checkpoint Al-Safra zone/Al-Uthaim in Diyala Province. Afterwards trucks are escorted by customs convoys to Abu Ghuraib Customs facilities where final customs duties are finalized, fixed and eventual extra customs duties are fully settled before trucks are released to their final destinations.

2-New procedures to State/Government plants

Deliveries to oil fields, construction state plants have to be escorted by in advance valid security permissions before they reach the final destined plants.

These procedures are causing delays and waiting time.

Delays vary between 3 to 5 days causing extra fees and demurrages.