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Export Procedures in Iraq

Export procedures in Iraq are the sequence of administrative and operational steps required for the lawful exportation of goods from Iraqi territory. The procedural framework is, in general, materially less onerous than the framework applicable to imports, reflecting the broader policy orientation toward the facilitation of Iraqi exports. The framework is established by the Customs Law No. 23 of 1984 (as amended), supplemented by sectoral instruments applicable to specific export categories, the Central Bank of Iraq framework governing export-related currency flows, and bilateral and multilateral trade arrangements to which Iraq is a party. The framework distinguishes between oil exports, which are subject to a substantive sectoral framework, and non-oil exports, which are subject to the general export framework.

Statutory Framework

The principal instruments governing the exportation of goods from Iraq are:

  • The Customs Law No. 23 of 1984, addressing both imports and exports and prescribing the customs procedures applicable to outbound goods
  • Sectoral instruments addressing the export of specific categories, including the framework for oil exports administered by the Ministry of Oil and the State Organisation for Marketing of Oil (SOMO)
  • The Antiquities and Heritage Law for the regulation of the export of antiquities and items of cultural significance
  • The Central Bank of Iraq framework for export-related currency flows and repatriation
  • Trade agreements engaging the Iraqi Government, including arrangements with the Gulf Cooperation Council member states and the Pan-Arab Free Trade Area

Non-Oil Export Procedures

Non-oil exports proceed through customs at the point of exit, following procedures that typically engage:

  • Preparation of the export declaration, identifying the exporter, the consignee, the goods, the quantity, the value, the destination, and the basis of valuation
  • Procurement of the certificate of origin, attesting to the Iraqi origin of the goods, which is conventionally issued by the Iraqi Federation of Chambers of Commerce or its constituent chambers
  • Sectoral certifications where applicable, including phytosanitary certificates for agricultural exports, veterinary certificates for animal products, and quality certifications for industrial products
  • Customs declaration and inspection at the point of exit
  • Loading and despatch under the contracted carriage arrangements
  • Settlement of payment with the foreign consignee in accordance with the contractual arrangements

Non-oil exports are generally not subject to export duties, although specific categories may engage export controls or sectoral charges.

Oil Export Framework

Crude oil exports from Iraq constitute the principal source of Iraqi state revenue and are subject to a substantive sectoral framework administered by the Ministry of Oil through the State Organisation for Marketing of Oil (SOMO). SOMO is the exclusive marketing entity for Iraqi crude oil, with sales conducted under term contracts with international buyers approved by SOMO. The framework engages substantial commercial, regulatory, and political considerations and is materially distinct from the framework applicable to general commercial exports. Within the Kurdistan Region of Iraq, oil exports have been the subject of substantial dispute between the Federal Iraqi Government and the Kurdistan Regional Government, with the framework evolving over time and engaging both regional and international dimensions.

Certificates of Origin

Certificates of origin are documents attesting to the Iraqi origin of exported goods. The principal categories engaged in Iraqi export practice are:

  • Standard certificates of origin issued by the Iraqi Federation of Chambers of Commerce or constituent chambers, certifying the Iraqi origin of the goods on the basis of the exporter’s declaration supported by manufacturing documentation
  • Certificates of origin under preferential trade arrangements, including arrangements under the Pan-Arab Free Trade Area, which engage specific rules of origin determining whether goods qualify for preferential tariff treatment in the destination market
  • Form-specific certificates required by destination markets, including the EUR.1 movement certificate where applicable to trade with European jurisdictions

The certificates support the destination market’s customs treatment of the goods and may engage substantial tariff implications. Inaccurate certificates expose the exporter to consequences both in the destination market and under Iraqi law.

Currency Repatriation

Export-related currency flows engage the Central Bank of Iraq framework governing foreign exchange transactions and the repatriation of export proceeds. Exporters are, in general, required to ensure that the foreign currency proceeds of their exports are channelled through the Iraqi banking system in accordance with the CBI framework. The framework supports the broader policy objective of maintaining the foreign currency position of the Iraqi banking system and providing the basis for the operation of the CBI dollar auction. The specific requirements vary over time and engage substantive considerations of compliance for exporters with substantial cross-border revenue flows.

Restricted Exports

Certain categories of goods are subject to restriction or prohibition on export from Iraq. The principal categories include:

  • Antiquities, archaeological items, and cultural property, the export of which is regulated under the Antiquities and Heritage Law and is, in general, prohibited save with the express authorisation of the competent authority
  • Strategic items including weapons and security-sensitive technologies
  • Endangered species and items of botanical or zoological sensitivity, subject to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) where applicable
  • Items subject to specific export controls under sectoral instruments
  • Items the export of which is restricted under international sanctions implemented in Iraq

Export of restricted items without the required authorisation engages penalty under the Customs Law and, in the case of antiquities and certain strategic items, criminal liability under the relevant sectoral instruments.

Free Zone Exports

Goods exported from Iraqi free zones operating under the Free Zones Law No. 3 of 1998 are subject to a substantively different framework from goods exported from the broader Iraqi customs territory. Free zone exports benefit from the suspension of customs duties and taxes applicable within the free zone, and the procedural framework engages the supervision of the General Commission for Free Zones rather than the general customs framework. The export of goods from a free zone to a destination outside Iraq engages the export procedures of the free zone; the export of goods from a free zone into the Iraqi customs territory engages the general import procedures applicable to importation into Iraq.

Documentation Retention

Documentation relating to exports should be retained in accordance with the periods prescribed by the Customs Law, the Commercial Code, and the tax legislation. The documentation supports compliance verification, response to post-export inquiries, customer documentation requirements in destination markets, and any subsequent claims or disputes. Substantial exporters should maintain structured documentation practices supporting both the operational discipline of the export operation and the broader compliance framework.

Export Promotion and Trade Agreements

The Iraqi framework includes instruments and arrangements for the promotion of Iraqi exports, including bilateral and multilateral trade arrangements engaging the Iraqi Government. The Pan-Arab Free Trade Area (Greater Arab Free Trade Area, GAFTA) supports preferential trade between Arab member states; bilateral arrangements with specific trading partners engage additional preferences. Iraq has, additionally, observed status with the World Trade Organization, with accession negotiations engaged at various points. The applicable framework should be considered in the structuring of export operations targeting specific destination markets.

How We Can Help

Etihad Law Firm advises on export procedures from Iraq, including the structuring of non-oil exports under the general customs framework, navigation of the oil export framework administered by SOMO, procurement of certificates of origin including preferential certificates under the Pan-Arab Free Trade Area, currency repatriation compliance under the CBI framework, restricted export compliance, free zone export structuring, and the conduct of disputes arising from export operations.