Temporary importation allows equipment to enter Iraq for a defined period and purpose without payment of full customs duty, supported by a guarantee securing the eventual re-export. The framework supports project work, exhibitions, professional equipment use, and other temporary engagements where the equipment is not intended to remain in Iraq. Operators using temporary importation should understand both the duty deferral benefit and the procedural discipline required to maintain it.
Legal Framework
The Iraqi customs framework provides for temporary importation under defined conditions, with the customs authority authorising entry of equipment for specified purposes and periods. The framework engages documentation establishing the temporary purpose, a guarantee securing the deferred duty, defined time limits with extension procedures, and re-export documentation completing the cycle. International frameworks including the ATA Carnet are recognised for certain categories of equipment.
Eligible Equipment
Temporary importation typically supports the following categories:
- Professional equipment for use in Iraq
- Project equipment for construction or industrial work
- Exhibition and trade show items
- Broadcasting and event equipment
- Sample goods for commercial activities
- Specialised equipment for specific time-limited purposes
The equipment must be identifiable at the time of re-export, which favours equipment with distinguishing features such as serial numbers over fungible consumables.
Application and Documentation
Application for temporary importation engages documentation including identification of the equipment with serial numbers and detailed descriptions, the intended use and time period, the importer’s identity and standing, the guarantee arrangement covering deferred duty, and any sectoral approvals required for the equipment. Documentation accuracy at entry is essential because re-export reconciliation matches against the original entry record.
Guarantee Requirements
The deferred duty is typically secured through a customs bond, bank guarantee, cash deposit, or ATA Carnet where applicable. The guarantee amount reflects the duty that would be payable on permanent importation. Choice of guarantee form affects both the cost of carrying the temporary importation and the operational flexibility around extensions or modifications. Substantial importers using temporary importation regularly often maintain standing customs bond arrangements rather than arranging fresh security for each entry.
Time Limits and Extensions
Temporary importation operates under defined time limits, typically aligned with the intended purpose. Extensions can be available where the underlying purpose extends, but should be requested before the original period expires rather than after. Goods remaining in Iraq beyond the authorised period without extension can trigger duty assessment alongside potential penalties, even if the goods are subsequently re-exported.
Re-Export and Closing
Re-export closes the temporary importation cycle, with the customs authority verifying that the re-exported goods match the originally entered equipment. The guarantee is released after re-export verification. Operators should maintain documentation discipline throughout the cycle, since gaps between entry and re-export records can complicate closure and tie up the guarantee for extended periods after the equipment has physically left Iraq.
Conversion to Permanent Import
Where the temporary purpose evolves into permanent retention, conversion to permanent import is possible through specific procedures. Conversion engages payment of the previously deferred duty, completion of any sectoral compliance requirements that apply to permanent imports, and updating of the customs records. Conversion should be procedurally formal rather than informal abandonment of the re-export obligation.
How We Can Help
Etihad Law Firm advises on Iraqi temporary importation, including framework analysis for specific projects, application and documentation support, guarantee arrangement, extension and conversion advice, and dispute response where temporary importation engagements encounter difficulties.