No new food tariff increases applied, Iraq’s Trade Ministry says

BAGHDAD — Iraq’s Ministry of Trade said Thursday that inspection teams are continuing to pursue price manipulation in food markets, while denying any increase in customs tariffs on food items.

Ministry spokesman Mohammed Hanoun told the Iraqi News Agency that “the relevant government bodies are continuously monitoring market activity, and inspection teams have begun intensive field tours to detect any cases of manipulation or unjustified price increases, especially after the spread of rumors related to customs tariffs.”

Hanoun said “the government has not approved any amendment to the customs tariff on basic needs, particularly food items,” adding that “the increase seen in some prices is not based on official decisions, but is due in part to speculative practices and the exploitation by some traders of the state of confusion in the market.”

He said legal measures are being taken “against violators, in coordination with the security services and relevant authorities to regulate markets,” while noting “the enhancement of supplies of basic food items through ministry-supervised sales outlets to ensure price stability and protect citizens’ purchasing power.”

The clarification follows public confusion over the rollout of the ASYCUDA electronic customs system, which began taking effect at federal border crossings this year.

General Authority of Customs Director General Thamer Qassim said on Jan. 8 that “there are no new taxes imposed on imported goods,” explaining that ASYCUDA applies existing tariffs under the Customs Tariff Law No. 22 of 2010, rather than introducing new duties.

Qassim said ASYCUDA automatically calculates customs duties and tax deposits based on the type of goods, tariff codes and country of origin, replacing manual procedures that previously allowed inconsistencies.

He said implementation of the system has reached 75% at federal border crossings, while it has not yet been formally linked to Kurdistan Region crossings, which he said contributed to rumors that tariffs had increased.

Qassim rejected claims of arbitrary tariff hikes, saying, “We are implementing the Customs Tariff Law No. 22 of 2010 approved by parliament.”