Import compliance is the systematic discharge of the legal obligations applicable to the importation of goods into Iraq. The framework is established principally by the Customs Law No. 23 of 1984 (as amended), the Tariff Law No. 22 of 2010, the Commercial Agency Law No. 79 of 2017, the Standards and Quality Control Law No. 54 of 1979, and sectoral instruments applicable to specific categories of goods. Compliance engages the obtaining of the requisite authorisations, the verification of the goods against applicable standards, the discharge of customs and tariff obligations, the observance of restrictions and prohibitions, and the maintenance of records sufficient to evidence compliance.
Capacity to Import
The capacity to import goods into Iraq is governed by the importer’s commercial registration under the Companies Law No. 21 of 1997 and, where the goods are imported for trading purposes, as per the Commercial Agency Law No. 79 of 2017. The law provides that goods imported for trading purposes shall be imported through a registered commercial agent. The registration of the commercial agent is conducted at the Ministry of Trade Commercial Agency Register on submission of the prescribed application supported by the underlying agency, distribution or franchise agreement. Within the Kurdistan Region of Iraq, where Law No. 79 of 2017 has not been ratified, the position is governed by the Old Commercial Agency Law No. 51 of 2000 together with the general provisions of the Iraqi Civil Code on agency.
Import Authorisations
Import authorisations engage the permissions required from competent Iraqi authorities for the importation of particular categories of goods. The principal authorisations include:
- General import licences issued by the Ministry of Trade in respect of categories subject to licensing
- Sectoral pre-approvals from the relevant ministry, including the Ministry of Health for pharmaceuticals and medical devices, the Ministry of Agriculture for agricultural inputs and animal products, and the Communications and Media Commission for telecommunications equipment
- Quality certifications, including the COSQC conformity certification under the Standards and Quality Control Law No. 54 of 1979
- Certificates of origin authenticated by the competent authorities in the country of export
- Phytosanitary and veterinary certificates for plant and animal products
The authorisations should be obtained in advance of the despatch of goods to avoid disruption at the point of importation.
COSQC Standards Compliance
Compliance with COSQC standards is a substantive precondition to the lawful importation of substantial categories of goods. The Standards and Quality Control Law No. 54 of 1979 establishes the framework for the development and enforcement of Iraqi standards, with COSQC functioning as the standards authority. Compliance is typically evidenced by:
- Conformity certificates issued by accredited certification bodies under arrangements recognised by COSQC
- Factory audit reports for manufacturers of regulated goods
- Sample testing reports from accredited laboratories
- Self-declarations by the manufacturer, where the regulatory framework permits
The evidence is presented at the point of importation and is reviewed by the customs authorities and, where applicable, by sectoral inspectors.
Restricted and Prohibited Goods
Restricted and prohibited goods are categories the importation of which is subject to special conditions or is entirely forbidden. The principal categories include:
- Goods prohibited on grounds of public order, public morality, or public health
- Goods subject to international sanctions implemented in Iraq through Council of Ministers instruments
- Dual-use goods and items of military or security sensitivity, subject to specific authorisation
- Controlled substances under the framework administered by the Ministry of Health
- Goods infringing intellectual property rights, the importation of which is subject to enforcement under the Trademark Law No. 21 of 1957 and the Copyright Law No. 3 of 1971 as amended
- Categories subject to anti-dumping or countervailing duties under bilateral or multilateral arrangements
Sanctions Compliance
Sanctions compliance engages the verification that the goods, the supplier, the country of origin, and the intended end-user are not subject to international sanctions binding on the importer. The applicable regimes typically include United Nations Security Council sanctions, United States Office of Foreign Assets Control sanctions, European Union sanctions, and United Kingdom sanctions. Sanctions screening should be conducted in advance of the order, refreshed at the despatch stage, and refreshed again at the customs clearance stage. The screening record should be retained as part of the compliance documentation.
Anti-Dumping and Trade Remedy Considerations
Anti-dumping, countervailing, and safeguard measures are trade remedies imposed where imports cause or threaten injury to domestic industry. Iraq’s framework for trade remedies continues to develop. Importers should monitor the position of categories particularly susceptible to trade remedy measures and, where measures are in place, structure their importation in compliance with the applicable conditions.
Documentation Requirements
The principal documentation requirements for imports into Iraq include the commercial invoice, the packing list, the bill of lading or airway bill, the certificate of origin, the conformity and quality certificates, the import authorisations and licences, the sanctions and trade compliance documentation, and the contract documentation supporting the importation. The documentation should be prepared with attention to consistency across the documents and with the actual goods, as discrepancies are a principal source of clearance delay and may be a basis for penalty under the Customs Law.
Records Retention
Customs Law No. 23 of 1984, the Commercial Code No. 30 of 1984, and the tax legislation prescribe periods during which records relating to importation are to be retained. The retention obligations engage both the documentary record and the electronic records supporting the documentation. The records should be retrievable in a form supporting their use in subsequent compliance reviews, audits, and disputes.
How We Can Help
Etihad Law Firm advises on import compliance in Iraq, including the structuring of importation arrangements under the Commercial Agency Law No. 79 of 2017, the obtaining of import authorisations and sectoral approvals, COSQC standards compliance, sanctions and trade compliance, response to customs inquiries and disputes, and the structuring of import documentation and records retention.