The Iraqi Border Port Authority recently announced, in accordance with Cabinet Resolution 23672 of 2023, that tariffs will be imposed on imported goods, including gold, as of December 1, 2023, to support business development and regulate import processes.

According to the resolution, the fixed tariff for 20-foot containers is set at 2 million Iraqi dinars (approximately RMB 1,095,320), while the fixed tariff for 40-foot containers is 3 million Iraqi dinars (approximately RMB 1,642,980).

For mobile phone, cigarette and car importers, the Iraqi government has provided a one-month transition period. During this period, the General Administration of Customs will compare the HS codes of these commodities with the HS codes of the Iraqi central bank’s money transfer platform. At the same time, for market regulation, the authorities will set up a joint committee to inspect the warehouses and handle prohibited goods under customs and anti-money laundering laws.

In accordance with Cabinet Resolution 23671 of 2023, gold importers must be a company officially registered in the Ministry of Commerce’s company register and be allowed to transfer to the outside through the banking system. Imported gold can only be entered by air and subject to sampling by the General Administration of Customs, the Central Bureau of Standardization and Quality Control.

The specific costs of importing gold include: 50,000 Iraqi dinars and 100,000 Iraqi dinars for test fees per kilogram; 250,000 Iraqi dinars for gold jewelry per kilogram and 50,000 Iraqi dinars for test fees. At the same time, the regulations for re-processing and re-exporting Iraqi gold abroad have been adjusted. Exported and imported gold that violates the regulations will be handled in accordance with the provisions of the 2018 revised Customs Act 23 and the 2015 Anti-Money Laundering and Anti-Terror Financing Act 39.

In addition, China, as Iraqs largest trading partner, will be affected by the tariff changes in exports to the country. According to customs data, Chinas bilateral trade amounted to 3,166,6 billion yuan in 1-11 2023, of which Chinas exports to Iraq amounted to 906,6 billion yuan, up 13% compared to the same period.

The Iraqi economy has shown signs of significant improvement, driven by rising global oil prices, and its public debt cuts and central bank foreign exchange reserves have recovered significantly, reaching record highs. However, given oil’s dominance in government revenue and exports and limited adjustment capabilities, Iraq still faces risks of oil price volatility and carbon transition.