ASYCUDA System and Its Impact on Customs Tariffs and Tax Guarantees in Iraq
Customs administration reforms are considered vital steps to strengthen the economy and protect the state’s financial sovereignty. In this context, the implementation of the ASYCUDA system (Automated System for Customs Data) in Iraq came as part of a comprehensive program to modernize customs and improve their efficiency.
ASYCUDA is an abbreviation for Automated System for Customs Data, meaning an automated system for processing customs data. It was developed by the United Nations Conference on Trade and Development (UNCTAD) since the 1980s.
It is considered an integrated electronic platform for managing customs operations, starting from:
- Registering the customs declaration and cargo loads
- Up to calculating duties and fees
- And issuing foreign trade statistics
ASYCUDA relies on unified international standards, such as:
- Harmonized System (HS) codes from the World Customs Organization (WCO)
- And ISO standards
This ensures that procedures are consistent with global practices.
Its use has spread to more than one hundred countries worldwide, making it UNCTAD’s largest technical cooperation initiatives in the field of customs.
In Iraq, the ASYCUDA implementation project has gained particular legal and economic importance in recent years
In Iraq, the ASYCUDA implementation project has acquired particular legal and economic significance in recent years. This step has been associated with government efforts to reform customs policy and develop non-oil revenues.
A number of regulatory decisions and instructions have been issued to support the implementation of the system and to adapt it to the national customs and tax legislation.
In this academic legal study, we will present the details of implementing the ASYCUDA system in Iraq, focusing on:
- Its impact on the customs tariff (customs duties) on the one hand; and
- Its impact on tax guarantees (advance tax amounts paid upon importation) on the other hand,
drawing on our practical experience as one of the largest law firms in Iraq in the field of corporate advisory services and regulatory compliance.
We will also address:
- The legal framework governing these changes
- The results of implementation in terms of increased revenues and transparency
- The most prominent legal and practical challenges the project has faced
Concept of the ASYCUDA System
The ASYCUDA system is an automated customs management system that covers most foreign trade procedures, including the processing of customs declaration data (customs statements) and cargo data, as well as transit procedures, warehouses, and other related operations.
It is distinguished by its ability to adapt to the national systems and laws of each country, as it can be configured to reflect the structure of the national customs tariff and the relevant local legislation.
ASYCUDA also enables electronic connectivity between authorities and companies through Electronic Data Interchange (EDI), allowing traders and customs clearance offices to submit their data remotely using unified standards such as the UN/EDIFACT standard.
This platform aims to:
- Accelerate the customs clearance process
- Simplify procedures
- Reduce cost and time for both the administration and importers
It also helps increase the accuracy of calculating duties and taxes due on imported goods and prevents any manipulation or evasion by ensuring the correct declaration of all goods and the automatic application of exemptions or reductions in accordance with the law.
In addition, the system provides a central database for trade and financial statistics in an immediate and reliable manner, to support economic planning and policymaking.
On the global level, ASYCUDA has achieved wide adoption. It has been adopted by more than 102 countries, 90% of which are operating the latest version known as ASYCUDA World or are in the process of transitioning to it.
These countries vary between developing and developed states, which reflects the system’s flexibility and effectiveness in different environments.
Today, the ASYCUDA programme is considered UNCTAD’s largest technical cooperation initiative, as its implementation in different countries is accompanied by:
- Training and knowledge transfer to ensure sustainability
- Strategies that focus on building local capacities
- Reducing reliance on external expertise in the long term
The Legal Framework for Implementing ASYCUDA in Iraq
Efforts to implement the ASYCUDA system in Iraq have effectively begun in recent years, within a government plan to automate customs operations and achieve fiscal reform. Although the core legislation regulating customs work already exists—such as the in-force Customs Law No. 23 of 1984 and the Customs Tariff Law No. 22 of 2010—activating these laws in a way that achieves their intended objectives has required upgrading the administrative and technical infrastructure.
Accordingly, the need emerged for a system like ASYCUDA to connect all border crossings and customs centers to a unified system that ensures the law is applied in a consistent and transparent manner.
From a legal perspective, implementation of ASYCUDA has relied on a package of governmental decisions intended to facilitate and secure its rollout. Among the most prominent and most recent decisions—which also sparked controversy—is Council of Ministers Decision No. (957) of 2025, issued in late 2025. This decision represented a turning point in the method of collecting duties and taxes through border outlets, as it set out several fundamental provisions.
For tailored legal guidance on ASYCUDA, customs tariffs, and tax deposits, contact Osama Tuma for Legal Services and Advisory, a trusted law firm in Iraq, to support compliance and reduce risk.
