Iraq Logistics Compliance & Regulatory Consulting Services

Why Iraq Logistics Compliance Consulting Is Critical for Success

Iraq Logistics Compliance Consulting is essential for navigating the country's complex regulatory landscape. Iraq's logistics compliance framework combines multiple regulatory layers: federal Iraqi Customs Law 2025, Kurdistan Regional Government frameworks, U.S. OFAC sanctions requirements for Iran-Iraq trade, and IATA Dangerous Goods Regulations for air freight. Each framework has distinct documentation requirements, approval processes, and penalty structures for non-compliance. For more information on Iraqi trade regulations, visit the Iraqi Ministry of Trade and the World Trade Organization's Iraq page.

Direct Drive Logistic's compliance consulting services are built on 15+ years of regulatory expertise in Iraq's logistics sector. Our certified consultants have successfully guided over 500 companies through customs audits, sanctions compliance reviews, temporary import licensing, and IATA dangerous goods certifications. Whether you're shipping oil field equipment to Basra, medical supplies to Erbil, or construction materials across KRG borders, we ensure every shipment meets Iraqi and international regulatory standards.

Our compliance track record includes zero customs seizures for clients in 2024, 100% success rate on temporary import license applications, and recognition from the Iraqi Ministry of Trade as a certified compliance training provider. Our systematic compliance approach creates competitive advantages through faster customs clearance, reduced inspection rates, and stronger relationships with Iraqi regulatory authorities.

2025 Iraqi Customs Law: Critical Updates for Compliance

The updated Customs Law 23 of 2025 introduced significant changes for logistics operators across Iraq. Understanding these requirements prevents costly delays and ensures compliance:

Umm Qasr Port Compliance Requirements

Iraq's primary seaport in Basra province requires specific documentation and procedures:

• Port Entry Documentation: Advanced cargo manifest must be filed 24 hours before vessel arrival through the Iraqi Port Authority system. Manifest must include complete HS codes, shipper details, consignee National Tax Number (NTN), and cargo insurance certificates.
• Bonded Warehouse Options: Umm Qasr Logistics Centre (UQLC) offers 750,000 sq m of bonded storage with on-site Iraqi Customs clearance. Free storage period is 3 days, followed by demurrage charges of $25 per TEU per day.
• Inspection Protocols: High-value shipments ($100K+) and regulated commodities (pharmaceuticals, food products, chemicals) face mandatory physical inspection. Scanner pre-clearance available for frequent importers through the Fast-Track Commercial Lane program.
• Rail Transport to Baghdad: Containers can be transported via bonded rail service to Baghdad Central Rail Terminal for approximately 50% less cost than truck transport. Rail service operates twice weekly with 18-24 hour transit time.

Comprehensive Iraq Logistics Compliance Consulting Services

1. Customs Compliance Services

Iraq's customs framework requires accurate documentation, proper commodity classification, and thorough understanding of valuation procedures. Our customs compliance services ensure your operations meet General Commission for Customs standards while minimizing clearance times.

Our customs compliance services include:

• Tariff Classification & HS Code Verification: Accurate classification using Iraq's implementation of the Harmonized System (HS 2022 version) to avoid incorrect duty assessments. We maintain updated databases of Iraq-specific HS code interpretations and recent customs rulings.
• Customs Valuation Compliance: Proper invoice valuation following WTO Valuation Agreement standards, currency conversions at Central Bank of Iraq exchange rates, and related-party transaction documentation to meet Iraqi General Commission for Taxes (GCT) requirements.
• Documentation Audit & Preparation: Complete review of commercial invoices (must include Iraqi consignee NTN number), packing lists, certificates of origin, and customs declarations before submission to prevent rejections.
• Bonded Warehouse Compliance: Setup and management of bonded storage facilities in Baghdad Commercial District, Basra Free Zone, and Erbil Industrial Zone for duty deferral strategies. Includes Iraqi Customs bond registration and quarterly reconciliation reporting.
• Customs Broker Coordination: Direct liaison with Iraqi licensed customs brokers (registered with General Commission for Customs) to ensure accurate ASYCUDA filing and representation during inspections.
• Post-Clearance Audit Defense: Representation during Iraqi Customs retroactive audits (typically covering 3-year lookback period), with documentation support and dispute resolution through the Customs Appeals Committee.

2. IATA Dangerous Goods Regulations Compliance

Air freight of hazardous materials to Iraq requires strict adherence to International Air Transport Association (IATA) Dangerous Goods Regulations (DGR) 65th Edition (2024). Baghdad International Airport, Erbil International Airport, and Basra International Airport all enforce IATA DGR requirements with additional Iraqi Civil Aviation Authority restrictions.

IATA DGR services include:

• Dangerous Goods Classification: Proper UN number assignment (UN1203 for gasoline, UN3480 for lithium batteries, UN1789 for hydrochloric acid), hazard class determination (Classes 1-9), and packing group identification for chemicals, batteries, medical samples, and industrial materials.
• Packaging & Labeling Compliance: Specification of UN-certified packaging (Performance-oriented Packaging Standards), hazard labels, handling marks ("Cargo Aircraft Only" when required), and shipper's declarations compliant with IATA formatting requirements.
• Air Waybill & Documentation: Completion of IATA Shipper's Declaration for Dangerous Goods (multi-copy sets), Emergency Response Information (24-hour emergency contact), and carrier-specific notifications for airlines operating Iraq routes (Turkish Airlines, Qatar Airways, Emirates, FlyBaghdad).
• Staff Training & Certification: IATA-accredited training courses for shippers, freight forwarders, and ground handling staff. Initial training (valid 24 months) and Recurrent training (every 24 months) delivered by our three Certified Dangerous Goods Trainers. Certificates recognized by Iraqi Civil Aviation Authority.
• Emergency Response Planning: 24/7 emergency contact protocols, spill response procedures, and incident reporting systems compliant with Iraqi Ministry of Environment requirements.
• Carrier Acceptance Coordination: Pre-clearance with airlines to ensure DG acceptance and proper routing. Some carriers restrict specific UN numbers or limit quantities per flight.

Direct Drive Logistic holds IATA Dangerous Goods training accreditation and employs three full-time Certified Dangerous Goods Trainers. We've successfully facilitated over 2,000 compliant hazmat shipments to Iraq since 2020, including lithium batteries for telecommunications projects, medical isotopes for healthcare facilities, drilling chemicals for oil field operations, and industrial solvents—with zero safety incidents or regulatory violations.

3. Sanctions Compliance Navigation

Iraq's geopolitical position creates sanctions compliance challenges, particularly regarding Iran-Iraq trade, U.S. Office of Foreign Assets Control (OFAC) restrictions, EU sanctions frameworks, and export controls on dual-use goods. Understanding these requirements protects your organization from legal exposure while maximizing legitimate trade opportunities.

Sanctions compliance services:

• OFAC Screening & SDN List Checks: Automated screening of suppliers, customers, and transshipment parties against U.S. Treasury Specially Designated Nationals (SDN) list, Sectoral Sanctions Identifications (SSI) list, and Foreign Sanctions Evaders (FSE) list. Screening performed at transaction initiation and updated when lists change (typically weekly).
• Iran-Iraq Trade Compliance: Navigation of U.S. sanctions exemptions for humanitarian goods, agricultural products, and energy sector transactions under Iraqi waiver programs. Current 120-day waiver for Iraqi energy payments to Iran (renewed quarterly since 2018) requires specific documentation and payment structure through approved mechanisms.
• Dual-Use Goods Licensing: Identification of export-controlled items under U.S. Commerce Control List (CCL), EU dual-use regulations (Regulation 2021/821), and Iraqi import restrictions. Items classified under ECCN categories 3-9 typically require export licenses.
• End-Use Certifications: Preparation of end-user statements, destination control statements, and anti-diversion declarations for sensitive goods. Iraqi Ministry of Trade requires end-use certificates for machinery, electronics, and chemical products in certain HS code categories.
• Trade Route Compliance: Verification that transshipment routes through Turkey, Jordan, or UAE don't create secondary sanctions liability or violate origin restrictions.
• Internal Compliance Programs: Development of sanctions screening policies, employee training modules, audit trails for compliance documentation, and voluntary self-disclosure protocols when potential violations are discovered.

4. Import/Export Licensing Services

Iraq's import/export licensing regime requires permits from multiple government ministries depending on commodity type. Direct Drive Logistic manages the entire licensing process, from initial applications to Ministry approvals and renewal tracking.

Licensing services include:

• Temporary Import Licenses (TIL): Applications for duty-free temporary imports of equipment, machinery, and project materials with re-export obligations. Common for oil field equipment (drilling tools, wellhead equipment), construction machinery (cranes, excavators), and event materials (exhibition equipment). TIL applications submitted to Ministry of Trade require equipment technical specifications, Iraqi project documentation, re-export timeline (typically 6-24 months), and customs bond arrangements.
• Ministry of Trade Import Licenses: Standard import permits for regulated goods including food products (require Iraqi Health Certificate), pharmaceuticals (require Ministry of Health pre-approval), agricultural inputs (require Agriculture Ministry permits), and consumer electronics (require technical standards certification).
• Export Licenses for Controlled Goods: Applications for exports of archaeological artifacts (Ministry of Culture approval), cultural property, petroleum products (Iraqi Oil Ministry allocation certificate required), and dual-use items requiring Iraqi government approval before export.
• Industry-Specific Permits: Coordination with specialized ministries: Ministry of Health for medical devices and pharmaceuticals, Ministry of Agriculture for seeds/fertilizers/livestock, Ministry of Environment for chemical imports, Ministry of Oil for petroleum-related equipment.
• License Renewal & Compliance Monitoring: Tracking of license expiration dates (most licenses valid 6-12 months), automatic renewal application initiation 30 days before expiry, and ongoing reporting requirements to maintain active license status.
• Expedited Processing Services: Direct liaison with ministry officials for urgent licensing needs. Premium service available for time-sensitive projects requiring 5-7 day approvals vs standard 4-6 weeks.

Need fast-track temporary import license approval for your project equipment? Discuss your TIL requirements with our licensing team →

5. Kurdistan Regional Government (KRG) Regulations

The Kurdistan Region of Iraq operates under a semi-autonomous regulatory framework established by the Kurdistan Regional Government in Erbil. KRG regulations differ from federal Iraqi regulations in customs duties, import restrictions, documentation requirements, and administrative procedures.

KRG compliance services:

• KRG vs. Federal Regulation Mapping: Detailed analysis of regulatory differences between KRG territories (Erbil, Duhok, Sulaymaniyah governorates) and federal Iraq (Baghdad, Basra, Najaf, Karbala, etc.). Key differences include customs duty rates for 23 HS code categories (now harmonized as of 2025), import license requirements, and business registration procedures.
• Internal Border Crossing Compliance: Management of checkpoints between KRG and federal Iraq including Maktab Khalid checkpoint (Erbil-Kirkuk route), Dibis checkpoint (Kirkuk-Erbil route), and Khanaqin checkpoint (Diyala-Sulaymaniyah route). Required documentation includes Iraqi Federal Customs clearance, KRG entry permits for certain commodity categories, and security clearances from local authorities.
• KRG Ministry Liaison: Direct coordination with KRG Ministry of Trade & Industry (for import licenses), KRG Ministry of Transportation (for vehicle permits and logistics operations), and local Asayish security authorities (for security clearances required for certain cargo types and routes).
• Local Business Permits: Applications for KRG business licenses, operational permits for warehouse facilities, and local partner/agent requirements for foreign companies operating in Kurdistan Region.
• KRG Customs Procedures: Specific customs filing requirements at KRG-controlled border crossings: Ibrahim Khalil border with Turkey (primary gateway for Turkish imports), Haji Omaran border with Iran (secondary Iran-KRG route), and Bashmakh border with Iran (primary Iran-KRG commercial route handling 60% of Iran-Kurdistan trade).
• Regional Tax Compliance: KRG tax registration with Department of Income Tax in Erbil, VAT filings (15% standard rate, same as federal Iraq), and withholding tax procedures for logistics operations conducted within Kurdistan Region.

Direct Drive Logistic maintains offices in both Erbil (primary Kurdistan operations hub) and Baghdad (federal Iraq operations hub) with dedicated compliance staff in each location. Our dual presence enables us to navigate both regulatory frameworks seamlessly and provide clients with unified compliance solutions for all-Iraq operations, including shipments that cross internal KRG-federal boundaries.

6. Compliance Audit & Consulting Services

Our comprehensive compliance audit service identifies regulatory risks, closes compliance gaps, and builds sustainable compliance systems for long-term protection.

Compliance audit deliverables:

• Regulatory Risk Assessment: Analysis of your supply chain, commodity types, origins/destinations, and operational practices against Iraqi Customs Law 2025, IATA DGR, OFAC sanctions, and relevant international regulations. Risk scoring (critical/high/medium/low) for each shipment category.
• Gap Analysis Report: Detailed documentation of compliance deficiencies, prioritized by risk level with potential penalty exposure calculations. Report includes specific regulation citations, example scenarios where violations could occur, and estimated financial impact.
• Compliance Roadmap: Step-by-step remediation plan with timelines (30/60/90-day milestones), responsible parties within your organization, implementation costs (licensing, software, training), and expected risk reduction outcomes.
• Policy & Procedure Development: Creation of written compliance manuals, standard operating procedures (SOPs) for import/export operations, employee guidelines, and escalation procedures for compliance questions.
• Staff Training Programs: Customized training for logistics coordinators, procurement teams, warehouse managers, and executive leadership on relevant regulations and internal compliance procedures. Training includes role-specific modules and practical exercises using your actual shipment scenarios.
• Ongoing Monitoring & Updates: Quarterly compliance reviews (scheduled every 90 days), regulatory change alerts delivered within 24 hours of publication, policy update assistance, and continuous improvement recommendations.

Our Compliance Consulting Workflow

Direct Drive Logistic follows a proven five-step process to deliver comprehensive compliance solutions tailored to your Iraq logistics operations.

Ready to build a bulletproof compliance system for your Iraq operations? Schedule your complimentary 30-minute consultation now →

Iraq Logistics Compliance Resources

Direct Drive Logistic provides valuable compliance resources to help logistics professionals stay informed about Iraqi regulatory requirements. Access our expert-developed guides, checklists, and training materials below.