Temporary importation is the customs regime under which goods are admitted into Iraqi territory with suspension of customs duties and taxes, subject to the condition that the goods be re-exported within a prescribed period without having undergone alteration save for ordinary depreciation in use. The regime is established under the Customs Law No. 23 of 1984 and is administered by the General Authority of Customs in accordance with the procedural framework prescribed by the Authority. The regime supports a defined range of commercial, professional, and operational uses that engage the temporary presence of goods in Iraq without the commercial substance of permanent importation.
Statutory Framework
The statutory framework for temporary importation engages:
- The Customs Law No. 23 of 1984, which establishes the temporary admission regime alongside other suspensive customs regimes
- The implementing regulations and circulars of the General Authority of Customs prescribing the operational application of the regime
- Council of Ministers instruments addressing the categories of goods eligible for temporary admission and the conditions applicable
- International conventions affecting temporary admission, with Iraq’s accession to specific conventions including the Istanbul Convention on Temporary Admission of 1990 to be verified by reference to the current treaty record
The framework engages substantive procedural discipline reflecting the customs authority’s need to balance the facilitation of legitimate temporary uses against the prevention of revenue loss through the misuse of the regime.
Eligible Categories
The categories of goods eligible for temporary admission under the Iraqi framework include:
- Goods for exhibition or display at fairs, trade shows, and similar events, including exhibition stands, demonstration items, and promotional materials
- Professional equipment imported by visiting professionals for use in their professional activities in Iraq, including testing equipment, broadcasting equipment, and specialist tools
- Goods imported for testing, demonstration, or qualification, including products presented for tender, items for technical evaluation, and equipment for pilot operations
- Scientific and educational materials imported for use in research and educational activities
- Items imported for repair or processing, with subsequent re-exportation in the repaired or processed condition (this overlapping with inward processing)
- Containers, pallets, and packing materials engaged in international trade
- Means of transport temporarily imported in international transport operations
- Other categories identified by Council of Ministers instruments or by the General Authority of Customs
The eligibility of specific goods should be confirmed by reference to the current Iraqi framework, as the categories evolve with policy developments.
Substantive Conditions
The application of the temporary admission regime is subject to substantive conditions including:
- The goods must be identifiable, allowing the customs authority to verify on re-exportation that the goods exported are the same as those temporarily admitted
- The goods are intended for re-exportation within the prescribed period, without permanent retention in Iraq
- The goods are not to undergo manufacturing, processing, or alteration during their presence in Iraq, save for ordinary use and depreciation
- The goods are not consumed during their presence in Iraq
- The applicant is suitably qualified to engage with the regime, including by reference to commercial standing and customs compliance record
The conditions are applied substantively, with the customs authority assessing the application against the conditions on a case-by-case basis.
Procedural Requirements
The procedure for temporary admission engages:
- Submission of an application to the General Authority of Customs identifying the goods, the proposed use, the estimated period of presence in Iraq, and the supporting documentation
- Provision of security in the amount of the customs duties, taxes, and fees that would be payable on permanent importation
- Detailed inventory of the goods at the point of admission, including descriptions, marks and numbers, serial numbers where applicable, and quantities
- Issuance of the temporary admission authorisation by the customs authority
- Periodic reporting where required, particularly for substantial or long-term temporary admissions
- Compliance with any specific conditions attached to the authorisation
- Re-exportation within the prescribed period, with verification by the customs authority of the identity of the re-exported goods
- Release of the security on satisfactory completion of the re-exportation
Security Requirements
The security required for temporary admission is conventionally calculated as the customs duties, the reconstruction fee, and other applicable charges that would be payable on permanent importation of the goods. The security is provided in the form of:
- Bank guarantees issued by Iraqi banks under Central Bank of Iraq supervision
- Cash deposits with the customs authority
- Carnet-based security under international conventions, where applicable
The security is released on the satisfactory completion of the re-exportation. Where the goods are not re-exported within the prescribed period, the security is called upon for the payment of the suspended duties, with any shortfall recovered from the applicant.
Time Limits
The prescribed period for re-exportation varies by reference to the category of goods and the nature of the temporary use. The principal categories typically engage:
- Short periods for exhibition goods, calibrated to the duration of the exhibition with appropriate buffers
- Operational periods for professional equipment, calibrated to the duration of the professional engagement
- Extended periods for project-specific items, calibrated to the duration of the project
- Periods adjustable on application, with the customs authority empowered to extend the period in defined circumstances
Extensions should be sought before the expiry of the original period; extensions sought after expiry engage substantive procedural and substantive difficulty. Operators contemplating temporary admission of items with uncertain operational duration should seek clarity on the prospect of extension at the application stage.
ATA Carnet Considerations
The ATA Carnet (from the French ‘Admission Temporaire / Temporary Admission’) is an international customs document supporting temporary admission across participating countries through a single document and a single security arrangement. The ATA system operates under the Convention on the ATA Carnet for the Temporary Admission of Goods of 1961 and the Istanbul Convention on Temporary Admission of 1990. Iraq’s participation in the ATA system should be verified by reference to the current treaty record and the practice of the General Authority of Customs. Where the ATA system is engaged, operators benefit from substantially simplified procedures across the participating countries; where it is not engaged, separate temporary admission procedures apply for each country traversed.
Consequences of Non-Re-Exportation
The failure to re-export goods admitted under the temporary admission regime within the prescribed period engages consequences including:
- The obligation to pay the full customs duties, reconstruction fee, and other charges that would have been payable on permanent importation
- Calling upon the security provided
- Administrative penalties under the Customs Law, calibrated to the materiality of the breach
- Adverse consequences for the operator’s compliance record
- In cases of intentional misuse of the regime, potential criminal liability
Where the operator subsequently determines that the goods will not be re-exported and should remain in Iraq, the regime may, in some circumstances, be converted to permanent importation through application to the customs authority and payment of the duties and taxes.
Strategic Considerations
Strategic considerations for operators contemplating temporary importation include the early identification of the regime as the appropriate framework, the structuring of the operation to satisfy the substantive conditions, the planning of security arrangements supporting the application, the management of identification and inventory of the goods throughout the period of presence, the timely planning of re-exportation arrangements, and the contingency planning for any prospect of extended retention. Effective management of the regime supports both the operational uses and the customs compliance position.
How We Can Help
Etihad Law Firm advises on temporary importation in Iraq, including the structuring of temporary admission applications, the calculation and provision of security, the identification and inventory of goods, time limit management and extension applications, ATA Carnet arrangements where applicable, response to non-compliance issues, conversion of temporary admission to permanent importation, and the conduct of disputes engaging temporary admission matters.