NADER FROM MID EAST CC HIGHLIGHTS NOTES
Summary
In a recent announcement, Iraqi Minister for Financial Affairs Mzar Mohammad Sali underscored the significance of adopting the ASYCUDA (Automated SYstem for CUstoms DAta) system within the Iraqi Customs Administration.
This system, developed by the United Nations Conference on Trade and Development since the 1980s, utilizes modern digital technologies to streamline and expedite customs processes.
Sali highlighted that Iraq is now implementing the second generation of this system, leveraging cloud technology for comprehensive automation of customs operations, including data recording, fee assessment, customs clearance, and records management.
The initiative aligns with the Iraqi government’s objective to enhance non-oil revenues to account for 20% of total public revenues. In collaboration with the United Nations, the aim is to improve customs control and collection systems while optimizing import and export operations based on best digital practices. The minister noted that the General Authority of Customs and the Board Reports Authority successfully implemented the ASYCUDA system in the past year, establishing a high-quality digital infrastructure set to further develop customs operations by 2025.
Sali emphasized that the ASYCUDA system is instrumental in mitigating corruption by minimizing human interactions and transitioning to full automation, which enhances transparency and supports operational efficiency. Moreover, the system is poised to boost international trade by accelerating the customs clearance process and decreasing administrative hurdles. The creation of a comprehensive database will further assist in economic and trade policymaking. The ASYCUDA system also improves border security by enabling more accurate tracking and inspection of shipments, thus combating smuggling and other illegal activities. Sali concluded by noting that Iraq is joining a group of Arab nations, including Jordan, the United Arab Emirates, Saudi Arabia, and Egypt, that are implementing the ASYCUDA system in their customs processes.
Highlights
- π Accelerated Customs Operations: The ASYCUDA system significantly speeds up the customs clearance process, facilitating international trade.
- π Cloud Technology Adoption: Iraq’s implementation of the second generation of ASYCUDA relies on cloud technology for comprehensive automation.
- π Boosting Non-Oil Revenues: The government aims for non-oil revenues to constitute 20% of total public revenues, aligning with the ASYCUDA initiative.
- π Enhanced Border Security: The system improves tracking and inspection capabilities, aiding in the fight against smuggling and illegal activities.
- π Comprehensive Data Management: ASYCUDA creates a robust database that supports informed economic and trade policymaking.
- π‘ Corruption Reduction: Full automation minimizes human interaction, increasing transparency and operational efficiency within customs.
- π€ Regional Collaboration: Iraq joins other Arab nations in adopting ASYCUDA, fostering a regional approach to modernized customs processes.
Key Insights
π Reduction in Delays: The ASYCUDA system is set to drastically reduce delays at border crossings, which has been a significant bottleneck for trade in Iraq. By automating customs operations, the system allows for faster processing of shipments, which can lead to increased trade volume and improved economic activity. This efficiency can position Iraq as a more attractive destination for international business and investment.
π Improved Customs Control: The collaboration with the United Nations aims not only to enhance revenue collection but also to improve the overall control of customs operations. This aligns with global best practices, ensuring that Iraq’s customs administration meets international standards. This improvement in governance can potentially restore confidence among international traders and investors.
π International Trade Facilitation: By streamlining customs processes and reducing administrative hurdles, ASYCUDA plays a pivotal role in facilitating international trade. The ability to clear goods more quickly can enhance Iraq’s competitiveness in the global market, enabling local businesses to reach international customers more effectively and at a reduced cost.
π Future-Proofing Customs Operations: The commitment to developing a high-quality digital infrastructure by 2025 indicates a forward-thinking approach. This infrastructure will not only support current customs operations but also allow for future enhancements and scalability as trade volumes grow and technology evolves.
π Combating Corruption: The reduction of human interaction through automation is a critical component in the fight against corruption within customs processes. By decreasing opportunities for corrupt practices, the ASYCUDA system promotes a more transparent and fair trade environment. This can lead to increased trust from both citizens and businesses in the integrity of the customs administration.
π Economic and Trade Policymaking: The comprehensive database generated by ASYCUDA provides valuable insights that can inform economic and trade policies. Policymakers can leverage this data to make evidence-based decisions, enhancing the effectiveness of trade regulations and economic strategies.
π Regional Integration: Iraq’s adoption of ASYCUDA places it within a framework of regional cooperation among Arab countries. This integration can lead to more synchronized customs operations across borders, improving trade relations and reducing complications for businesses that operate in multiple countries.
In summary, the adoption of the ASYCUDA system in Iraqi customs represents a significant step forward in modernizing trade processes, enhancing revenue collection, and fostering a more secure and efficient trading environment. The government’s commitment to integrating advanced technology into customs operations aligns with broader goals of economic development and regional collaboration, ultimately benefiting both the Iraqi economy and its international trade relationships.
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