The import sector for medical and pharmaceutical products in Iraq is experiencing an ongoing debate regarding the mechanisms of commodity classification and the calculation of customs duties. In a move to standardize criteria, the General Commission of Customs has resolved the procedures related to distinguishing between medicines, vitamins, and dietary supplements, compelling importing companies to update their legal compliance mechanisms.
Separating Health Approvals from Customs Classification Current legislation and instructions confirm that classifying goods and determining Harmonized System (HS) codes falls within the exclusive jurisdiction of the General Commission of Customs. A health inspection or approval from the Ministry of Health does not automatically grant an imported material the status of a "medicinal substance" for customs clearance purposes. Duly classified medicines are subject to a reduced customs duty of 0.5%, whereas vitamins and dietary supplements are classified according to their composition and technical description, making them subject to duties ranging from 5% to 10%.
The Importance of Prior Auditing to Protect Investments Any error in determining the HS code may expose companies to heavy financial fines or place them under legal accountability on charges of tax evasion. Therefore, modern commercial operations require the assistance of legal and financial expertise to audit import documents. Aymen Mahdi Al-Jubouri & Partners for Legal and Financial Services provides advanced customs consultations to ensure the legal and technical compliance of goods before they reach the ports of entry. The firm also offers solid legal representation to defend companies' rights before the competent customs committees, ensuring business continuity and preventing financial waste.
