The Iraqi parliamentary finance committee has announced that it added
amendments to the law regulating the levying of a customs tariff on
goods entering the country, enacted Feb. 2, 2010. The government had
then requested to postpone its implementation in order to avoid price
increases, provided that this law enters into force as of June 30,
2013.
The Iraqi government had requested that the implementation of this law,Bringing bestguidancesystem mainstream.
by virtue of which the customs fees on imported goods are collected in
accordance with the rates specified in the customs duty rate table and
crop calendar, be postponed for one year in order to preserve market
prices and protect consumers.
In an interview with Al-Monitor,
MP Amin Hadi, a member of the Iraqi parliamentary finance committee,
said, All members of the finance committee agreed to submit the customs
tariff law to vote, and there were no objections. Hadi continued, We
discussed the governments request to postpone the implementation of the
law for one year, and explained, The law will be gradually implemented
over a period of three years, once it is passed.
He explained,
Goods entering the country will be classified according to three
categories. During the first year, the law will be implemented on luxury
goods, in the second year the law will be applied to basic commodities
and in the third year the law will cover non-essential commodities.
He
added, This mechanism, which is extended over a period of three years,
gives the authorities concerned with developing the infrastructure to
implement the law the necessary opportunity to accomplish their tasks.
He explained, The application of the customs tariff law needs a large
computerized system and a high level of supervision.
Before
2003, Iraq imposed customs tariffs on goods in accordance with Law No.
77 of 1955. This was suspended after US forces entered Iraq, and former
administrator of the Coalition Provisional Authority in Iraq Paul Bremer
issued a decree imposing a 5% tax on all commodities entering the
country. This tax was known as the "Iraq Reconstruction Tax" back then.
Yet
the Iraqi parliamentary economy and investment committee believes that
the proposal to implement the customs tariff law according to a
three-year plan is not related to completing the infrastructure
necessary to apply the law, but rather to settling the conflict between
the central government and the semi-autonomous Kurdistan Region
regarding the management of border crossings.
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Since
the early 1990s, Baghdad has not controlled the Ibrahim Khalil crossing
with Turkey, Administration of the crossing was turned over to the
Kurdistan Regional authorities. Post-2003 up to today, the situation has
remained unchanged.
The Ibrahim Khalil crossing is located
approximately 70 kilometers northwest of the city of Dohuk, the capital
of Dohuk province. It is the primary crossing that connects the
Kurdistan Region with Turkey, and is the main commercial land gateway
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MP Amer Al-Fayez, a
member of the Iraqi parliamentary economy and investment committee,
said that the three-year time limit specified by the proposed
application of the customs tariff law came to resolve the problems
between Baghdad and Erbil over the border crossings in the Region, and
it has nothing to do with the idea of ??completing the infrastructure.
Speaking
to Al-Monitor, Fayez added that the proposed formula is not
satisfactory, but will probably give the central government the time
needed to settle the conflict with Erbil over the management of the
border crossings in the Kurdistan Region. He continued, Erbil believes
that managing the Kurdistan Regions border crossings falls within its
scope of competencies. Yet the Constitution stipulates that the
Kurdistan Region and the central government jointly manage these border
crossings.
He went on, "The government will work with the
Kurdistan Region to settle the disputes within the three-year time limit
specified in the law. He stressed that Settling the disputes and the
proper implementation of the law create significant gains for the Iraqi
economy, and protects the GDP and the consumer at the same time.
Fayez
called on the relevant parties the Central Organization for
Standardization and Quality Control in particular to benefit from this
time limit in order to create an integrated electronic system at the
border crossings, so that the law is properly implemented and Iraq
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