ASYCUDA Implementation Nears Final Stage, KRG Rejects Salary Link

ERBIL (Kurdistan24) - The Kurdistan Regional Government (KRG) has sought to dispel growing public speculation over the implementation of the ASYCUDA customs management system, stressing that ongoing discussions with Baghdad on customs modernization are entirely separate from the issue of public-sector salary payments.

Speaking to Kurdistan24 on Saturday, Sami Jalal, advisor to the KRG Ministry of Interior, said there is no connection between the planned rollout of the internationally recognized customs platform and the disbursement of salaries for government employees in the Kurdistan Region.

He emphasized that the two files are being handled independently and should not be viewed as part of the same negotiations.

The clarification comes as Erbil and Baghdad move closer to completing an agreement that would standardize customs procedures, a step officials say is intended to improve administrative efficiency rather than address payroll or broader financial disputes.

By drawing a clear distinction between the two issues, the KRG is seeking to reinforce public confidence in the negotiation process and ensure that administrative reforms are understood on their own merits.

Officials have consistently maintained that customs modernization follows a separate institutional track, even as other financial discussions continue between the federal government and the Kurdistan Region.

Jalal said both governments have already reached broad agreement on the principal elements required to implement the ASYCUDA system.

According to him, the agreed framework has been forwarded to the Iraqi Council of Ministers, with the remaining procedural step being formal approval after Iraqi Prime Minister Ali al-Zaidi returns from his official visit abroad.

He noted that the project is approaching completion, with approximately 97 percent of the preparatory work already finalized.

The outstanding requirement is endorsement by the Iraqi Ministerial Council for Economy and the federal government before implementation can proceed.

The ASYCUDA initiative represents a broader effort to harmonize customs administration between the Kurdistan Region and the federal government.

Beyond customs procedures, the agreement extends across several key economic sectors, including investment, agriculture, industry, company registration, and quality control, reflecting a wider agenda to strengthen coordination in economic governance.

Developed by the United Nations Conference on Trade and Development (UNCTAD), ASYCUDA is an electronic customs management system used by governments around the world to modernize border administration.

The platform is designed to streamline customs procedures, improve transparency, reduce bureaucratic delays, strengthen regulatory oversight, and support more efficient revenue collection through standardized digital processes.

For policymakers, the project is viewed as an institutional modernization initiative aimed at creating more consistent customs practices across jurisdictions while reducing administrative inefficiencies.

Officials also see it as a mechanism for improving coordination between Erbil and Baghdad on trade administration without altering the separate framework governing public-sector payroll.

As discussions enter their final procedural phase, KRG officials continue to emphasize that the success of the customs reform initiative should be assessed independently of salary-related matters, underscoring that the two issues remain distinct despite public speculation.