From Kapita Research. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.
Iraq’s 2026 Customs Reset
Iraq’s main ports have been partially paralyzed since the start of 2026. The cause is not a physical blockade but the activation of a new digital customs system (ASYCUDA) that replaced the old flat-fee import model with a percentage-based tariff.
Under the new framework, how a merchant is taxed depends on whether they pre-declared their imports through the banking system. Those who did are taxed according to the new tariff schedule based on their declared values. Those who did not, whether because they transferred funds outside the banking system, held credit abroad, or imported goods before the pre-declaration requirement took effect, have their shipment values estimated by ASYCUDA using historical customs data.
The problem: that historical database is filled with years of artificially inflated invoices, submitted by merchants between 2022 and 2025 to exploit a now-closed dollar arbitrage loophole. In many cases, the system’s estimates are dramatically higher than actual market values, though in some cases they may actually fall below real values.
This inconsistency has created a commercial stand-off. Thousands of containers sit uncollected at ports, demurrage fees are compounding, and supply chains across key sectors are under pressure.
This report explains how we got here, what it means for businesses today, and what to watch over the coming months.
