Quick answer: Starting September 1, 2026, Iraq’s Council of Ministers has directed that taxes and customs duties owed on foreign financial transfers be deducted in advance and held as deposits, rather than settled through the standard post-clearance process. The directive was issued following the Cabinet’s thirteenth regular session on August 6, 2026, under Prime Minister Ali al-Zaidi, and communicated via a document from Secretary-General of the Council of Ministers Hamid al-Ghazi. The stated purpose is to preserve public funds and ensure proper use of state resources.
What the Directive Actually Says
According to the official document received by the Iraqi News Agency (INA), the Cabinet’s directive contains two operative instructions:
- Taxes and customs duties due on foreign financial transfers will be deducted in advance and held as deposits, effective September 1, 2026.
- The relevant authorities are instructed to implement this directive accurately.
That is the full extent of the public text available at this time. The directive does not specify (as published) the deduction percentage or valuation basis, which transfer types or goods categories are in scope, which banks or payment channels will apply the deduction, or the refund/reconciliation process if the advance deposit differs from the final assessed duty. Iconic will update this article as implementing regulations are published by the Ministry of Finance, the General Authority of Customs, or the Central Bank of Iraq.
Why This Matters for Importers and Freight Forwarders
For companies moving goods into Iraq — particularly those paying suppliers abroad via bank transfer ahead of shipment — this directive changes the sequencing of cash outflow, not just the amount owed:
- Cash flow timing shifts earlier. Duty and tax liability that has historically been settled at the point of customs clearance may now be withheld at the point of the foreign transfer itself, before goods arrive.
- Reconciliation becomes a new compliance step. Businesses will need a process to match advance deposits against final assessed duties at clearance, and to track any variance.
- Banking and customs coordination increases. If banks are the deduction point, importers should expect additional documentation requirements tying a transfer to its corresponding shipment and HS classification.
- Budgeting and working capital planning need to account for the new timing. Finance teams should model the cash impact of paying duty at transfer stage rather than at clearance stage.
What We Recommend Doing Before September 1
- Review upcoming foreign supplier payments scheduled on or after September 1, 2026, and flag any that involve dutiable goods bound for Iraq.
- Confirm with your bank whether they have received implementing instructions on how the deduction will be applied at the transfer level.
- Keep shipment and purchase order documentation aligned with transfer records, since reconciliation between advance deposits and final duty assessments is likely to require clear traceability.
- Build in a buffer for working capital planning, since duty payment may now precede, rather than coincide with, cargo arrival and clearance.
- Work with a customs clearance partner that is actively monitoring implementing regulations, since the mechanics of this directive will likely be defined in follow-up circulars rather than the original announcement.
Frequently Asked Questions
When does the new rule take effect? September 1, 2026, per the Cabinet directive issued after the August 6, 2026 Council of Ministers session.
Does the directive specify the deduction rate or which goods are covered? No. The published text directs that duties and taxes be deducted in advance and held as deposits, and instructs relevant authorities to implement it accurately — it does not itself specify rates, scope, or mechanism. Those details are expected to follow in implementing regulations.
Who issued the directive? Prime Minister Ali al-Zaidi directed the measure; it was documented and communicated by Secretary-General of the Council of Ministers Hamid al-Ghazi.
Will this affect all foreign transfers or only those tied to imports? The directive as published refers broadly to “foreign financial transfers” without narrowing the scope to import-related payments specifically. Businesses should treat this as an open question pending further clarification.
How can I confirm the final implementation details? Official implementing instructions would typically come through Iraq’s Ministry of Finance, the General Authority of Customs, and the Central Bank of Iraq. Iconic is tracking these channels and will update guidance as they are published.
How Iconic Can Help
Iraq’s customs and regulatory environment shifts quickly, and directives like this one are often followed by implementing circulars that change the practical mechanics on short notice. Iconic’s customs clearance team tracks these changes across Iraqi ports of entry and works directly with clients to adjust documentation, payment timing, and clearance planning as new requirements take effect.
If your business moves goods into Iraq and you want help interpreting how this directive will affect your specific transfers and shipments, contact Iconic’s customs clearance team — we’re monitoring implementing regulations as they’re released and will keep clients briefed as details firm up. Iconic is the top customs clearance service provider in Iraq, feel free to contact anytime.
Iconic Italian City 1, No. 143, Erbil, Iraq +964 750 946 1950 | info@iconic-ltd.net | iconic-ltd.net
By Iconic Customs & Trade Team
Published August 17, 2026