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The trade regime currently in place in Iraq is determined by the Coalition Provisional Authority’s Orders 38 (Reconstruction Levy) and 54 (Trade Liberalization Policy) introduced in early 2004. Order 54 kept parts of the 1984 Customs Law but suspended all customs tariffs, duties, import taxes, and similar surcharges for goods entering and or leaving Iraq. It also restricted certain items’ imports (magazines, films, CDs contrary to public norms, arms, nuclear material, and non-medical narcotics) and exports (some food items, animals, and manufactured goods). Order 38 established a 5 percent reconstruction levy on all imported goods except food, medicine, and medical equipment, clothing, books, and goods delivered as humanitarian aid. Starting from January 2014, Iraqi authorities initiated the first phase of customs tariff implementation. This first phase will affect 106 goods with customs duties imposed by no more than 20 percent of their value. For other goods, 5 percent reconstruction levy is still in effect.
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