Transit is the customs regime under which goods enter Iraqi territory at one point of entry, traverse Iraqi territory under customs supervision, and exit Iraqi territory at another point, without engagement of the standard customs duties applicable to importation for use within Iraq. The regime supports the role of Iraqi territory as a corridor for trade between origin and destination markets engaged through Iraq, including trade between neighbouring jurisdictions transiting through Iraq. 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 international conventions affecting transit, the application of which in Iraq engages Iraq’s participation in the relevant conventions.
Statutory Framework
The statutory framework for transit engages:
- The Customs Law No. 23 of 1984, establishing the transit regime alongside other suspensive customs regimes
- The implementing regulations of the General Authority of Customs prescribing the operational application of the regime
- Bilateral arrangements with neighbouring jurisdictions on the conduct of transit operations and the coordination of customs supervision
- International conventions affecting transit, including the Convention on International Transport of Goods under cover of TIR Carnets (the TIR Convention) and other relevant instruments, with Iraq’s accession status to specific conventions to be verified by reference to the current treaty record
- Sectoral and policy instruments affecting specific categories of goods in transit
The framework operates in the broader context of the substantial cross-border trade flows engaging Iraqi territory with neighbouring jurisdictions, with the framework supporting both legitimate transit operations and the prevention of revenue loss through the misuse of the regime.
Categories of Transit
The transit regime engages several distinct configurations:
- National transit, in which goods enter Iraq at one customs point, traverse Iraqi territory, and exit at another Iraqi customs point, with both the entry and exit points within Iraq
- International transit, in which goods originate outside Iraq, transit through Iraq, and have a destination outside Iraq
- Inward transit to internal customs points, in which goods enter Iraq at a border customs point and proceed under transit to an inland customs point for the customs clearance procedures
- Outward transit from internal customs points, in which goods despatched from an inland point proceed under transit to a border customs point for exit
Each configuration engages specific procedural arrangements within the general framework.
Authorised Routes
Transit through Iraqi territory is conducted along routes authorised by the customs authority, with the goods proceeding from the point of entry to the point of exit along the authorised route. The authorised routes are determined by reference to:
- The road network connecting the principal points of entry
- Security considerations affecting the conduct of transit operations
- Infrastructure capacity along potential routes
- Customs supervision capacity at the relevant points
- Bilateral arrangements with neighbouring jurisdictions on cross-border coordination
The transit operator is, in general, required to proceed along the authorised route and to present the goods at the prescribed customs points en route where the supervisory framework so requires. Deviation from the authorised route engages substantive consequences and may constitute a basis for the conclusion that the goods have been diverted into the Iraqi customs territory.
Customs Supervision
Goods in transit are subject to customs supervision throughout their presence in Iraqi territory. The supervisory framework engages:
- Customs sealing of the goods or the means of transport at the point of entry, with the seals to remain unbroken throughout transit
- Documentation of the transit operation in the prescribed transit documents
- Verification at intermediate customs points where applicable
- Verification of the integrity of seals and documentation at the point of exit
- Customs convoys in defined circumstances, particularly for goods of sensitive character
The supervisory framework reflects the customs authority’s need to maintain control over the suspended duties and to ensure that the transit regime is not used to evade customs obligations on goods ultimately destined for the Iraqi market.
TIR System
The TIR system, established under the Convention on International Transport of Goods under cover of TIR Carnets, provides an internationally coordinated framework for the transit of goods across multiple participating countries under a single document and a single international security arrangement. Iraq’s participation in the TIR system has continued to evolve over time and should be verified by reference to the current treaty record and to the operational practice of the General Authority of Customs. Where the TIR system is engaged for the relevant route, operators benefit from substantially simplified procedures and unified security across the participating countries; where it is not engaged, separate transit procedures apply in each country.
Security Requirements
Transit operations engage the provision of security in the amount of the customs duties, taxes, and fees that would be payable if the goods were imported for use within Iraq. The security is provided in:
- Bank guarantees issued by Iraqi banks
- Cash deposits with the customs authority
- International security arrangements under the TIR system, where applicable
- Bilateral security arrangements with neighbouring jurisdictions, where in place
The security is released on the satisfactory completion of the transit, evidenced by the customs authority’s verification of the exit of the goods. Where the transit is not satisfactorily completed, the security is called upon for the payment of the suspended duties.
Time Limits
Transit operations are subject to time limits within which the transit must be completed. The prescribed periods are calibrated to the distance to be traversed, the route, and the means of transport. Where the transit is not completed within the prescribed period, the operator engages the prospect that the goods are deemed to have entered the Iraqi customs territory, with corresponding consequences for duty exposure. Extensions of the period may be sought in defined circumstances, including operational delays, customs-related delays, and force majeure events.
Documentation Requirements
Transit operations require specific documentation, including:
- The transit declaration in the form prescribed by the customs authority
- The commercial documentation supporting the transit, including the commercial invoice, the packing list, and the transport documentation
- Security documentation
- TIR Carnet, where the operation is conducted under the TIR system
- Documentation of the route to be traversed
- Documentation of the consignee at the destination outside Iraq
The documentation should be prepared with attention to the requirements of both the Iraqi customs authority and the customs authorities of the countries of origin and destination.
Restricted and Prohibited Goods in Transit
Categories of goods subject to restriction or prohibition for importation into Iraq may, in some circumstances, be permitted in transit through Iraq, with the substantive position depending on the nature of the restriction and the specific framework applicable. Operators contemplating transit of sensitive goods should verify the position at the planning stage and should engage with the customs authority on the procedural arrangements supporting the transit. Sanctions considerations may engage transit operations engaging sanctioned origins, destinations, or counterparties, with substantive considerations alongside the Iraqi customs framework.
Conclusion of Transit
The conclusion of the transit operation engages the presentation of the goods and the documentation at the point of exit, the verification by the customs authority of the integrity of seals and documentation, the recording of the exit, and the release of the security provided for the transit. Where the verification identifies discrepancies, including missing or damaged seals, missing goods, or documentation inconsistencies, the customs authority engages the procedures for the investigation and resolution of the discrepancies, with potential consequences including the engagement of duty exposure on the missing or unverified goods.
How We Can Help
Etihad Law Firm advises on transit operations through Iraqi territory, including the structuring of transit applications, the calculation and provision of security, route planning and authorisation, TIR system arrangements where applicable, response to transit discrepancies, restricted goods in transit, sanctions considerations in transit operations, and the conduct of disputes engaging transit matters.