Re-export procedures govern the exportation from Iraqi territory of goods that have previously been admitted into Iraqi territory, whether for use within Iraq or under a suspensive customs regime. The procedures support a range of commercial configurations, including the conclusion of temporary admission, the despatch of goods from free zones to third markets, the despatch of goods from bonded warehouses to third markets, and the recovery of duties paid on goods that are subsequently exported. The framework is established by the Customs Law No. 23 of 1984, supplemented by the implementing regulations of the General Authority of Customs and by sectoral instruments affecting specific categories of goods.
Categories of Re-Export
The re-export procedures engage several distinct configurations:
- Re-export of goods admitted under temporary admission, concluding the temporary admission regime by the export of the goods within the prescribed period
- Re-export of goods held in a free zone, supporting the free zone’s function as a hub for transhipment and processing for export
- Re-export of goods held in a customs warehouse, supporting the suspensive function of the warehousing regime
- Re-export of goods admitted for inward processing, after the processing operations have been completed
- Re-export of goods on which duty has been paid, supporting recovery of duty through the drawback mechanism
- Re-export of returned goods, including goods originally exported from Iraq that are returned and subsequently re-exported
Each configuration engages specific procedural arrangements within the general framework.
Re-Export from Temporary Admission
Re-export concluding the temporary admission regime engages:
- Presentation of the goods at the customs authority within the prescribed period for temporary admission
- Verification by the customs authority that the goods presented are the same goods admitted under the temporary admission authorisation
- Documentation of the re-export by reference to the original temporary admission documentation
- Release of the security provided for the temporary admission
- Departure of the goods from Iraqi territory through the prescribed exit point
The identification of the goods is critical to the conclusion of the temporary admission. Where the goods have been altered, processed, or transformed during their presence in Iraq, the original temporary admission may not apply to the re-export, and alternative procedures may be required.
Re-Export from Free Zones
Re-export from Iraqi free zones engages:
- Despatch of the goods from the free zone to a destination outside Iraq
- Documentation of the re-export under the free zone’s operational framework and the customs supervisory framework
- Cooperation with the General Commission for Free Zones and the customs authority in the verification of the re-export
- Updating of the operator’s records to reflect the despatch
Re-export from a free zone is a core function of the free zone framework and engages substantially simplified procedures compared to re-export from the broader Iraqi customs territory. The substantial volume of free zone operations engaging the re-export of goods received in the zone supports the broader trading function of the zones.
Re-Export from Customs Warehouses
Re-export from customs warehouses (bonded warehouses operating under customs supervision) engages:
- Authorisation of the despatch by the customs authority supervising the warehouse
- Documentation of the despatch by reference to the warehousing documentation
- Closure of the warehousing entry for the despatched goods
- Customs supervision of the despatch from the warehouse to the point of exit from Iraq
- Exit verification at the point of exit
The re-export from a customs warehouse concludes the warehousing regime in respect of the despatched goods, without engagement of the customs duties that would have applied on importation for use within Iraq.
Drawback
Drawback is the mechanism through which customs duties paid on imported goods are refunded where the goods (or, in some configurations, products manufactured from them) are subsequently exported. The drawback mechanism supports the broader policy of not burdening Iraqi exports with customs duties on imported inputs. The principal categories of drawback engage:
- Refund of duties paid on goods that are exported in the same state as imported, including goods that have proved unsuitable, surplus to requirements, or otherwise to be re-exported
- Refund of duties paid on inputs used in the manufacture of products that are subsequently exported, supporting Iraqi manufacturing for export
The drawback procedure engages substantial documentation requirements, including the demonstration of the identity of the exported goods with the originally imported goods (or, in manufacturing drawback, the use of the imported inputs in the exported products), the time relationship between import and export, and the satisfaction of any other conditions prescribed by the framework. Operators contemplating substantial drawback claims should structure their operational documentation to support the claim from the import stage.
Inward Processing Re-Export
Re-export of products manufactured under inward processing engages:
- Documentation of the processing operations conducted under the inward processing authorisation
- Demonstration of the yield from the imported inputs to the exported products
- Re-export of the products within the prescribed period
- Release of the security provided for the inward processing
- Customs verification of the re-export
Inward processing engages substantial documentation discipline to support the verification by the customs authority that the products exported are derived from the inputs imported under the regime.
Returned Goods
Returned goods are goods that were originally exported from Iraq and that are subsequently returned to Iraq, often for repair, modification, or as a consequence of rejection by the original consignee. The returned goods may, in defined circumstances, be re-exported following the resolution of the matter that gave rise to the return, with specific procedures applicable to the re-export. The framework engages considerations of the original export documentation, the demonstration of the identity of the returned goods with the originally exported goods, the duties applicable to the return and re-export, and the documentation supporting the operations.
Documentation Requirements
Re-export procedures engage specific documentation, including:
- The re-export declaration in the form prescribed by the customs authority
- Documentation evidencing the original importation or the suspensive regime under which the goods are held
- Commercial documentation supporting the re-export, including the export commercial invoice and the export contract
- Transport documentation for the re-export consignment
- Certificates of origin for the re-export, where required by the destination market
- Documentation supporting any drawback claim, where applicable
- Documentation supporting the release of security under the original suspensive regime
Verification at Re-Export
The customs authority verifies the re-export through procedures including:
- Examination of the documentation against the underlying records
- Physical examination of the goods to confirm their identity
- Verification of marks, serial numbers, and other identifying features
- Examination of the means of transport and the loading arrangements
- Application of customs seals where the goods continue under supervision to the point of exit
The verification supports both the substantive correctness of the re-export and the customs authority’s broader supervisory function.
Strategic Considerations
Strategic considerations for re-export operations include the early identification of the appropriate re-export framework by reference to the status of the goods, the structuring of operational documentation to support subsequent re-export, the planning of drawback claims where applicable to support the recovery of duties paid, the integration of re-export operations with broader supply chain arrangements, and the management of timing considerations including the time limits applicable to suspensive regimes and the operational requirements of destination markets.
How We Can Help
Etihad Law Firm advises on re-export procedures in Iraq, including the structuring of re-export operations under the appropriate framework, drawback applications for the recovery of duties on re-exported goods, conclusion of temporary admission through re-export, re-export from free zones and customs warehouses, inward processing re-export, returned goods management, and the conduct of disputes engaging re-export matters.