• Background:
• Exemptions:
• The goods exempted from the Reconstruction Levy include:
• The Reconstruction Levy shall not apply to the following persons or entities:
• Removal of Antiquities & Heritage Objects from Iraq
• 1. Class A Border Points:

Background:

On 7 June 03, the CPA declared: “International trade now can play a central role in Iraq’s economic recovery and its development of a free market economy. As a first step, CPA and the Ministry of Trade declare a suspension of tariffs and other trade restrictions in Iraq through the end of this year. During this time, the CPA will not collect any customs duties, import taxes, licensing fees or other surcharges for goods entering and leaving Iraqi ports of entry.”

The tax holiday comes to an end on the 31st of December 2003, and as from the 1st January 2004, a 5% Reconstruction Levy will be collected at all imports coming through all Class A1 Entry Points in Iraq (see below).

The charges will be collected by Customs staff at the borders, and deposited to the Ministry of Finance, to contribute in the reconstruction of Iraq.

The legal basis and details of the Reconstruction Levy are established by CPA Order 38, which can be found in full at the CPA website at the link:
 http://www.cpa-iraq.org/regulations/index.html#Orders

Exemptions:

The goods exempted from the Reconstruction Levy include:

a. Food.
b. Medicines and medical equipment.
c. Clothing.
d. Books.
e. Goods imported to be delivered as humanitarian assistance to the people of Iraq or in support of the reconstruction of Iraq.
f. Imports of the type exempted under the Vienna Conventions on Diplomatic Relations of 1961 and Consular Relations of 1963 and imports exempted under the Convention on the Privileges and Immunities of the United Nations.
g. Goods imported by the United Nations, other international organizations, not-for-profit organizations, or foreign governments to be used or distributed for the public benefit as defined in Administrative Instructions.

The Reconstruction Levy shall not apply to the following persons or entities:

a. Coalition Provisional Authority;
b. Coalition Forces;
c. Forces of countries, their contractors and sub-contractors, acting in co-ordination with the Coalition Forces;
d. Coalition contractors and sub-contractors, as defined in CPA Order Number 17, who supply goods directly to the Coalition Provisional Authority and Coalition Forces;
e. Departments and agencies of Coalition Forces’ governments, and their contractors and sub-contractors that are providing technical, material, financial and human resource assistance;
f. Members of the above categories to whom goods are consigned or by whom goods are imported for their personal use.

The Reconstruction Levy shall not apply to imports under the Oil for Food contracts.

Companies or organizations which fit into the specified criteria outlined above will need to be registered in advance to ensure that they are exempted from the Reconstruction Levy at the border. 

Applications for the registration should be sent to the Iraqi Ministry of Interior, Baghdad (who will pass on any correspondence to the Customs Commission, Baghdad), or a company representative should visit the Customs Commission in Central Baghdad.

Exempt organizations not registered in advnce must pay the charge at the border, and then apply for a refund once they have gained their registration certificate.

Due to the present communications constraints within Baghdad, there are limited means to apply for the registration, but CPA would urge organizations to visit or contact the Customs Commission as soon as possible, to avoid having to pay cash at the border, or risk your goods being refused entry. 

Removal of Antiquities & Heritage Objects from Iraq

After a number of suspicious incidents, the Customs Service in Iraq is now examining closely the smuggling (deliberate or accidental) of Antiquities and Heritage Objects.

It is considered an offence to export certain items. The CPA would therefore strongly recommend the following actions for personnel or organizations traveling in and out of Iraq:

• Do not attempt to acquire or purchase historical items in Iraq as they are part of Iraq’s history and should remain in Iraq.
• Obtain a valid receipt for ALL purchases.
• Take all steps possible to ensure that the purchased objects are legal for export. If you are at all unsure refrain from purchasing as it is likely to be detained by Customs on exit from Iraq.

Class A Border Points:

Saudi Arabia – Ar’ar
• Jordan – Trebil
• Syria – Al Waleed; Al Qa’im; Rabea’a
• Turkey – Ibrahim Khalil
• Iran – Haj Omeran; Golle; Bashmakh; Tawella; Badr Crossing; Muntheria; Zurbatia; Al-Shalamancha
• Kuwait – Safwan; Um Qasr (Land & Sea Ports)
• Baghdad; Basra and Mosul Airports