How to Import a Car to Iraq (2026)

Introduction

Importing a car to Iraq costs 18% of its CIF value at the border: a flat 15% customs duty plus a 3% tax deposit. The rate is the same for every car and pickup, whatever the engine, fuel or origin. The gates are strict: left-hand drive only, model year 2025 or newer, and no damaged vehicles.

Iraq has one of the simplest car-import tax structures in the Middle East. Since 1 January 2026 every federal customs centre applies the tariff adopted by Council of Ministers Decision No. 957 of 2025: one 15% customs duty on the whole of Chapter 87, and a 3% tax deposit on the value of the goods. There is no engine-size ladder, no luxury tax, no excise and no VAT.

What makes Iraq demanding is not the tax but the admissibility rules. A right-hand-drive car cannot be registered. From 2 November 2026 only model year 2025 or newer vehicles are admitted. Flood, fire and salvage vehicles are banned outright. Every model-year-2025-and-newer vehicle must also meet the Iraqi technical standard TR 167.

Quick Facts

Types of Cars That Can Be Imported

Steering: left-hand drive only

Iraq's Traffic Law lists "a steering wheel on the left side of the vehicle" as a condition for registration (Law No. 8 of 2019, article 14, First, b). A right-hand-drive car cannot be registered, and no federal rule accepts a right-to-left conversion as a cure. IPAS does not offer conversion for Iraq, so Japanese, British, Australian, Thai and Indian domestic-market units are not offered. Cars for Iraq are sourced in left-hand-drive markets such as the United States, Canada, Germany, Belgium, South Korea, China and the UAE.

Model year: 2025 or newer

Iraq controls the model year of imported vehicles under Council of Ministers Decision No. 215 of 2009. In 2026, Decision No. 468 of 2026 let model-year-2024 vehicles in until 1 November 2026 only. From 2 November 2026:

• Model year 2025, 2026 or 2027: admissible.
• Model year 2024 or older: not admissible, new or used, car or pickup.

The limit rolls forward with the calendar. IPAS reviews the 2027 rule before 1 January 2027 and quotes only vehicles that clear it.

Used vehicles

A used car is admissible if it meets the same tests: model year 2025 or newer, left-hand drive, undamaged and conforming to TR 167. In practice that means nearly-new vehicles. The duty is the same 18% as for a new car.

Damaged vehicles: banned

From 1 January 2026 Iraq refuses vehicles that have suffered a serious accident, flood or submersion, fire or other severe damage, and any vehicle with a salvage or junk title. The ban was announced by the Ministry of Trade, the Ministry of Interior and COSQC together. IPAS only supplies undamaged vehicles.

The Iraqi standard: TR 167

COSQC Technical Requirement No. 167 is mandatory from 1 January 2026 for every imported vehicle of model year 2025 or newer, whether petrol, diesel, hybrid or electric. It covers safety (including airbags), energy efficiency and environmental protection. The vehicle needs an Iraqi conformity endorsement registered on the COSQC platform, and it is inspected at the factory or at the border. A car that fails is refused entry, so conformity should be confirmed before purchase.

Origin

No IPAS origin country is banned, and diesel cars are allowed.

Cars You Can Import to Iraq

Ports Supporting Vehicle Import

Umm Qasr, in Basra Governorate, is Iraq's main container and vehicle port, and it is where IPAS ships every Iraqi order. Khor Al-Zubair is an industrial and bulk port, and the Grand Faw port is still under development; neither is used for IPAS quotes.

The port does not change the tax: the 15% duty and 3% deposit apply at every federal customs centre. Port, terminal, clearing-agent and registration charges are separate from the import taxes.

Kurdistan Region. The Kurdistan Region of Iraq runs its own customs at its own land crossings and, in 2026, had not adopted the federal tariff on the same terms. IPAS quotes the federal regime at Umm Qasr only.

Duty Structure Overview

Federal Iraq charges two amounts at the border:

1. Customs duty: 15% of the customs value (Council of Ministers Decision No. 957 of 2025, Annex 1, Chapter 87, applied from 1 January 2026 under the Customs Tariff Law No. 22 of 2010).
2. Tax deposit: 3% of the value of the goods (Decision No. 957 of 2025, Annex 2, item 3).

The customs value is the CIF value at Umm Qasr: the purchase price plus insurance and freight, converted to dinars at the official rate on the day the declaration is registered.

The tax deposit is charged on the customs value alone, not on the value plus duty. It is an advance against Iraqi income tax. A business with an Iraqi tax file can settle it against its income tax; a private buyer generally cannot recover it, so IPAS counts it as a cost at clearance.

Total at the border = 15% + 3% = 18.00% of CIF, for every admissible car and pickup.

The rate grid

Engine size, fuel and drivetrain only choose the 8-digit tariff line printed on the declaration. They never change the money.

Worked example 1: Toyota Yaris 1.5 petrol, CIF US$18,000 (IQD 27,000,000)

Worked example 2: Toyota Land Cruiser 300 3.5 V6 petrol, CIF US$95,000 (IQD 142,500,000)

There is no large-engine surcharge: the V6 Land Cruiser pays the same rate as the Yaris.

Worked example 3: BYD Seal, battery-electric, CIF US$32,000 (IQD 48,000,000)

Worked example 4: Toyota Hilux 2.8 diesel double cab, CIF US$30,000 (IQD 45,000,000)

All four results match IPAS's live customs calculation for Iraq. Because both charges are percentages, the 18% does not depend on the exchange rate.

These examples show the structure. Get the exact figure for your vehicle using CarImport.AI.

Worked Example: Importing a 2026 Cadillac Escalade to Iraq

Electric and Hybrid Vehicles: No Exemption in 2026

Iraq exempted electric and hybrid cars from customs duty under a 2022 Council of Ministers decision. That exemption has ended. The General Commission of Customs stated on 30 December 2025 that hybrid and electric cars pay the 15% duty from 1 January 2026. On 24 October 2026 it added that the exemption tables still circulating refer to an earlier decision that was cancelled.

So a battery-electric, hybrid or plug-in hybrid car pays exactly what a petrol car pays: 15% duty plus the 3% tax deposit, 18% of CIF. Exemptions reported for the Kurdistan Region do not apply to imports through Umm Qasr.

Trade Agreements: No Lower Rate for IPAS Origins

A car built in Japan, Korea or the United States and shipped from Jebel Ali is not UAE-origin. In practice origin never changes the Iraqi figure: every IPAS origin pays 15% duty and the 3% deposit.

Pickups: Goods Vehicles, Same Tax

Iraq's tariff has dedicated pickup lines: 8704.21.40 for diesel and 8704.31.50 for petrol pickups up to 5 tonnes gross weight. A pickup with an open cargo bed, including a double cab (Toyota Hilux, Ford Ranger, Ford F-150, RAM 1500, Nissan Navara, Isuzu D-Max), goes on these lines.

The classification changes the line on the declaration, not the bill. A pickup pays the same 15% duty and 3% deposit as a passenger car, so a full-size US pickup lands at 18% of CIF, the same as a city car.

Charges That Do Not Apply

• The 5% reconstruction levy: abolished. The Customs Tariff Law No. 22 of 2010 (article 9) repealed the 2003 Coalition Provisional Authority order that created it.
• Import sales tax on cars: not applied in 2026. A 15% sales tax on imported cars was imposed for 2015 by Ministry of Finance Instructions No. 5 of 2015 under that year's budget law. Later budget laws list the sales taxes that continue and leave cars out, and Decision No. 957 of 2025 contains no car sales tax. IPAS is confirming this with the authorities and quotes 18% meanwhile.
• No excise, VAT or luxury tax. Iraq levies none of these on imported vehicles.

If an Iraqi estimate shows a reconstruction levy, an engine-size duty ladder or an EV exemption, it is using retired rules.

Documents Required for Import

• Commercial invoice showing the purchase price
• Bill of Lading (original or telex release)
• Certificate of origin
• Packing list with make, model, model year, VIN, engine and drivetrain
• Proof of TR 167 conformity: the Iraqi conformity endorsement on the COSQC platform
• Import declaration lodged in ASYCUDA by a licensed Iraqi customs broker

Customs Clearance Process

Customs may assess a vehicle on Iraq's official vehicle value list (Council of Ministers Decision No. 270 of 2025) where the declared value is lower, so a realistic invoice avoids delays.

Recent Regulatory Changes (2025–2026)

• 1 June 2025: official vehicle value lists take effect (Council of Ministers Decision No. 270 of 2025).
• 28 October 2025: new national tariff adopted (Council of Ministers Decision No. 957 of 2025): 15% on Chapter 87 and a 3% tax deposit.
• 1 January 2026: the new tariff applies at all federal customs centres; the electric and hybrid exemption ends; TR 167 conformity becomes mandatory; damaged vehicles are banned.
• 2026: model-year-2024 extension granted until 1 November 2026 (Council of Ministers Decision No. 468 of 2026).
• 6 October 2026: official exchange rate moved to IQD 1,500 per US dollar (Council of Ministers Decision No. 544 of 2026), up from IQD 1,300.
• 2 November 2026: model year 2025 or newer only.

Under review. IPAS's customs research reviews these Iraqi points from December 2026: whether any car sales tax is collected at federal crossings, the model years admitted in 2027, and the TR 167 conformity routes. Until then IPAS quotes the defaults described above.

Frequently Asked Questions

How much does it cost to import a car to Iraq?

The border taxes are 18% of the CIF value: a 15% customs duty and a 3% tax deposit, both on the customs value. The rate is the same for every car and pickup. Port, clearing, inspection and registration costs are extra.

Is customs duty in Iraq based on engine size?

No. Since 1 January 2026 every car and pickup pays 15% duty, from a 1.0-litre hatchback to a V8 SUV. Engine size only selects the tariff line on the declaration.

Are electric cars exempt from customs duty in Iraq?

Not any more. The 2022 exemption for electric and hybrid cars was cancelled, and from 1 January 2026 they pay the same 15% duty and 3% tax deposit as petrol cars.

What model year can I import to Iraq?

From 2 November 2026, model year 2025 or newer. The extension that allowed model-year-2024 cars ended on 1 November 2026. The rule applies to new and used vehicles.

Can I import a used car to Iraq?

Yes, if it is model year 2025 or newer, left-hand drive, undamaged and conforms to the Iraqi standard TR 167. Flood, fire and salvage cars are banned.

Can I import a right-hand-drive car to Iraq?

No. Iraqi traffic law requires the steering wheel on the left for registration, and IPAS does not offer conversion for Iraq.

Do UAE or US cars get a lower duty in Iraq?

No. Iraq has no trade agreement with the United States, and IPAS has found no Iraqi instrument giving UAE-built cars a lower rate. Every origin pays 15% duty plus the 3% deposit.

What is the 3% tax deposit?

An advance against Iraqi income tax, collected at customs on the value of the goods. A company with an Iraqi tax file can settle it against its income tax; for a private buyer it is effectively a cost.

Ready to Import?

Iraq's tax bill is easy to predict: 15% duty and a 3% tax deposit, 18% of CIF for every admissible vehicle. What needs planning is admissibility: left-hand drive, model year 2025 or newer, undamaged and TR 167-compliant.

IPAS provides two tools to plan and execute your import:

CarImport.AI: Source a vehicle through IPAS and calculate the full landed cost to Iraq, including the customs duty and tax deposit. Get an exact figure for your specific vehicle.

Calculate Import Duties to Iraq

IPAS EXPRESS: Already have a vehicle? Get instant shipping quotes to Umm Qasr, with transparent, itemised pricing and a stage-by-stage timeline.

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