General Information

Country: Republic of Iraq
Funding Agency: Ministry of Finance
Implementing Agency: United Nations Conference on Trade and Development (UNCTAD)
Budget: USD 13,795,676 for all three phases
Implementation Duration: 84 months (7 years)
Start Date (Phase Two): June 25, 2024
Date of Fund Deposit: August 26, 2024
Agreement Signed on: May 27, 2021
Payments Made: USD 5,102,962 for Phase One, USD 4,070,825 for Phase Two

Description of Phase Two
Objective

Implement modern customs procedures and monitoring methods such as pre-arrival risk analysis, post-clearance audit, and introducing Authorized Economic Operators (customs brokers, importers, banks, etc.).
ASYCUDA will be linked with other selected government entities and automated customs systems in the region to establish automated monitoring methods.
All documents will be electronically available, enabling remote work through a fully paperless, integrated customs system.

Expected Outputs

1. Redesign and streamline control procedures to make them efficient and applicable to import/export operations in customs and other trade-related government entities.
2. Customs management will be able to provide and exchange electronic data and e-services with partner government agencies and customs administrations of other countries.
3. Advanced technical and procedural ASYCUDA training courses to enable the national project team to install, configure, and operate the computerized system.

Project Strategy
Phase Two activities were implemented in four (4) stages:
Stage One – Implementation of Modern Customs Control Methods
- Land transport clearance: Completed
- Valuation system: Implemented per Cabinet Resolution No. 270 (2025), effective June 1, 2025
- Smart selectivity: Pilot applied in three customs centers on November 1, 2025
- Exemptions system: Completed
- Licenses and certificates: Scheduled per project timeline
Stage Two – Linking ASYCUDA with Other Government Entities and Regional Customs Systems
- Electronic manifests: Linked with shipping agencies and airlines
- Weighbridge and scanner systems: Linked at Grand Welcome Yard and land centers
- Other government entities linked: Standardization, Traffic, Ur Platform, Radiation, Car Trading, Ports, Central Bank, and Maritime Transport
- Under study: Ministry of Trade, National Data Center, IATA, Regional systems
Stage Three – Use of Modern ICT in the General Commission of Customs
- Mobile interfaces and services: Programmed; pending data center setup
- Blockchain system: Programmed per project timeline
Stage Four – Advanced Training for Project Implementation Team
- Technical ASYCUDA Training 1: Completed
- Technical ASYCUDA Training 2: Scheduled for November 2025
- Procedural ASYCUDA Training 1: Completed
- Procedural ASYCUDA Training 2: Completed
Progress Ratios per Phase

Phase One (as of June 24, 2024): 93%
Phase Two (at report date): 51.11%

Automated Customs Centers
- Air Cargo Customs Center
- Mandali Customs Center
- Baghdad International Airport Hall
- Zurbatiya Customs Center
- Dry Port / Central Region Customs Directorate
- Al-Sheeb Customs Center
- Grand Welcome Yard
- Basra International Airport
- Najaf International Airport
- Kirkuk International Airport
- Safwan Customs Center
- Al-Qaim Customs Center
- Export Complex
- Trebil Customs Center
- Khor Al-Zubair Customs Center
- Shalamcheh Customs Center
- Abu Flous Customs Center
- Al-Mundhiriyah Customs Center
- Southern Um- Qasr Customs Center
- Central Um-Qasr Customs Center
- Arar Customs Center
Remaining Centers: Al-Shaljia Customs Office (scheduled), Free Zone Khor Al-Zubair (scheduled).

Electronic Services

- Automated clearance process activated (from manifest acceptance to electronic payment and release).
- Electronic payment via POS and other e-payment methods integrated with ASYCUDA.
- POS transactions synchronized with ASYCUDA.
- E-payment portal activated within Ur Platform.

Future Expansion Plan

Horizontal Expansion:
- ASYCUDA rollout to all customs centers based on revenue, geography, and infrastructure readiness.

Vertical Expansion:
- Implementation of value-added modules (valuation, exemptions, certificates, licenses) to enhance control and trade facilitation.

Network Expansion:
- Linking with government agencies (Central Bank, Ministries, Traffic, Border, Standardization, Transport, etc.)
- Linking with neighboring countries’ customs systems.

Progress:
- Over 60% of Phase Two completed by end of September 2025.
- Transition from paper to electronic declaration effective January 1, 2025.

Phase Two Applications

Smart selectivity: Pilot launched Nov 1, 2025
IATA integration: Nov 21, 2025
Blockchain: Development started Oct 2025
Valuation system: Activated per Cabinet Decision No. 270 (2025)
Mobile services: Programmed; to launch post–data center setup
Land transport clearance: Completed
Electronic data exchange: Completed with multiple agencies
Exemptions system: Implemented in all centers
Weighbridge/scanner link: Done
E-manifests: Implemented
Web payment: Adopted via ASYCUDA on Jan 1, 2025
Exports: Activated across all centers
Pre-arrival declaration: To begin Dec 1, 2025
Phase Two ends June 24, 2026.