Targeting the commercial market in Iraq
• The highest amount of exports is from Khosravi, Mehran, west of Tehran, Bashmaq, Kermanshah and Piranshahr customs.
• Basra in Iraq is the closest export market to Iran and its distance from Abadan is 20 km. The proximity of the Basra border to Iran facilitates exports to Iraq.
• This has given rise to the issue of food supply in the Iraqi market and is one of the important advantages of Iran’s exports to Iraq.
• One of the conditions for exporting goods to Iraq is to have Latin and Arabic labels on the goods.
• Given that the regulatory, disciplinary and judicial system in Iraq is weak, it is better to receive transactions funds either in cash or in the form of letters of credit.
• The most important system for communicating with Iraqi businessmen is through email, and all correspondence, brochures and catalogs must be in Arabic. Border terminals between Iran and Iraq include Shalamcheh, Mehran, Chazabeh and Khosravi.
The best goods for export to Iraq
Market research and selection of the appropriate market in Iraq
The main markets of Iraq are in the northern and southern parts of the country, where the traditional market is located in the southern part and the traditional market is less seen in the northern market. One of the biggest problems in Iraq’s commercial markets is the decentralization of its business community. Due to successive wars, the country is far from development and modern tools are less effective in these markets. To evaluate the Iraqi markets, you can get help from business advisors, active companies in the Iraqi market and the embassy.
Certificates and export tariffs to Iraq and customs duties
• Border markets and border customs are another problem for exports to Iraq. Because many of these borders are run by managers and urban mafia groups, and the openness and closure, as well as the timing of these borders, is unclear, which is a big problem for traders and businessmen.
Free Trade and Economic Zones of Iraq
• Iraq has four free trade zones in Basra, Ninawa, Anbar, and Sulaymaniyah. According to the law of the Free Zones Organization, the import of goods to these areas or the export of goods from those areas is exempt from paying any taxes, except for goods that enter the customs area.
• Also, the capital, profits and income from investing in projects in these areas are exempt from any taxes as long as these projects are stable.
• According to the law, industrial activities, whether production or consumption, assembly, packaging of export and re-export goods, banking and insurance activities, etc. are allowed in these areas.
The banking system in Iraq
In addition to the Central Bank of Iraq, there are 43 types of banks operating in Iraq, of which 7 are state-owned, 30 are national (including 7 Islamic banks) and 6 are foreign banks. Capital participation of some foreign banks (Bahrain, Kuwait, Jordan and Qatar) in Iraqi banks is between 49% to 75%.
• Some Iraqi banks
326 / 5000
o The Central Bank of Iraq
o Rasheed Bank
o Rafidain Bank
o Gulf Commercial Bank
o Basra International Bank for Investment
o Bank of Iraq
o Babylon Bank
o The Iraqi Real Estate Bank
o The Iraqi Agricultural Cooperative Bank
o Bank of Baghdad
o Dar Al Salam Investment Bank
o The Iraqi Trade Bank
o Warka Bank
o The Industrial Bank of Iraq
o The Iraqi Islamic Bank
• Law No. 77 of 1955 sets the customs tariff for goods imported into Iraq. The law has been suspended and is currently charged 5% of the value of goods imported into Iraq as reconstruction duties. Food, medicine, clothing, books and trade in transit goods are exempt from this law. Click below for information on Iraqi customs tariffs.
• In the Iraqi customs system, the Harmonized Coding System (HS) is applied.
Central Organization for Standardization and Quality Control and its responsibilities
The Central Organization for Standardization and Quality Control is an independent government body and a member of the International Organization for Standardization (ISO), which has the following responsibilities.
• Monitoring production standards in Iraq, monitoring and reviewing domestically produced goods in terms of health, safety and quality elements
• Providing technical assistance to patent offices and other matters related to intellectual property rights, issuing plant health certificates and agricultural products, issuing animal health certificates (for live animals) by the Ministry of Agriculture and issuing health certificates for industrial food products by the Ministry of Health.
Strategic projects special for the National Investment Organization
• The management of some projects, including strategic projects, is the responsibility of the National Investment Organization.
• Infrastructure projects with a capital of not less than US $ 50 million or equivalent in Iraqi dinars.
• Joint projects between a clime or a province that is not related to clime.
• Natural resource extraction projects
• Projects created as a result of the signing of an agreement, of which Iraq is a party.
• Projects of engineering, mining, petrochemical, industrial and pharmaceutical industries with a capital of not less than US $ 50 million or equivalent in Iraqi dinars.
• Archaeological and historical sites development projects.
• Transportation projects such as roads, ports, airports and railways with a capital of not less than US $ 30 million or equivalent in Iraqi dinars.
• Electricity projects with a production capacity of not less than 30 MW.
• Projects related to reservoirs, dams, and irrigation projects with an area of not less than 20,000 acres.
• Projects with a minimum required capital of not less than one billion US dollars or the equivalent in Iraqi dinars.
• Any other type of project approved by the board of government with a strategic and federal nature.
• Apart from the above, other projects are within the authority of the provincial investment organizations.