Exemption Procedures

A procedure setting out the steps and requirements for a licensed project to obtain customs and tax exemption for the materials, equipment, and machinery required for its establishment, in addition to tax exemption on the project's profits. Exemption applications are reviewed by the Technical Section / Exemptions Division, and exemption letters are issued addressed to the competent financial and customs authorities.

Target audience: Owners of licensed investment projects

• The project must hold a valid investment license

• The materials must be necessary for establishing or operating the licensed project

• The assets must be brought into Iraq within (3) years

• An official letter from the company requesting customs and tax exemption

• A copy of the investment license (in the case of an expansion, accompanied by the administrative expansion order)

• A written undertaking from the authorized manager not to use the materials outside the scope of the project, and to notify the Commission upon their arrival at the project site

• A letter of authorization to deal with the General Customs Authority and complete the import procedures

• A list of the materials to be exempted (name, details, quantity in figures and words, HS code, port of entry) in four copies and in both Arabic and English

• Engineering drawings showing the locations and areas of the materials, equipment, and machinery to be exempted

• An approved calculation method for the requested quantities, issued by an accredited consultancy office

• Where generators or electrical transformers are requested: the load calculation method and the electrical drawing, and a letter of approval from the Ministry of Electricity

• A letter certifying the actual need for the materials, and a letter certifying the project's completion percentage from an accredited consultancy office