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In a bold stride toward modernizing its trade and customs operations, Iraq is harnessing the power of artificial intelligence (AI) to streamline processes, enhance accuracy, and fortify its risk management systems. The Iraqi General Authority for Customs recently announced the automation of nine customs centers out of a targeted 21. Coupled with a significant training initiative for over 30% of its workforce, Iraq is on the path to revolutionizing its customs framework through AI integration.
AI-Driven Customs Automation and Enhanced Operations
The Iraqi General Authority for Customs has made substantial progress in automating its operations, implementing sophisticated AI technologies to modernize what was once a manual and paper-based system. The adoption of the ASYCUDAWorld system, a customs automation software supported by the United Nations Conference on Trade and Development (UNCTAD), has been a game-changer. ASYCUDAWorld digitizes customs clearance processes, significantly reducing human error and opportunities for corruption.
This shift has already borne fruit: between January and May 2024, Iraq saw a staggering 215% increase in customs revenue compared to the previous year. By automating nine customs centers so far, Iraq is speeding up the processing of goods, reducing wait times, and improving overall efficiency. The goal is to fully digitize all 21 customs centers by the end of 2025.
AI-Enhanced Risk Management Systems for Importation
One of the most groundbreaking aspects of Iraq’s customs modernization is the use of AI to bolster risk management in import processes. Machine learning algorithms analyze vast amounts of trade data to identify potential risks, such as smuggling or fraud, in real time. This allows customs officials to prioritize high-risk cargoes for inspection while expediting the clearance of low-risk consignments.
AI’s predictive analytics capabilities are also enabling customs authorities to allocate resources more efficiently. By automating the classification of goods and applying smarter risk assessments, Iraq is minimizing human intervention, reducing fraud, and ensuring compliance with international trade standards. This marks a critical step in Iraq’s efforts to enhance its global trade reputation.
Workforce Training and the Battle Against Corruption
The automation of customs processes isn’t solely reliant on technology; it also requires a workforce skilled in using these new systems. As of mid-2024, over 30% of Iraq’s customs employees had undergone specialized training, equipping them with the knowledge needed to operate the new AI-driven systems effectively. The Iraqi General Authority for Customs has already trained 748 employees out of a total workforce of 2,400.
The primary objective of this initiative is to reduce human error, mitigate the potential for corruption, and accelerate customs procedures. By limiting the discretionary power of individual employees and automating key decision-making processes, Iraq is addressing long-standing issues of graft and inefficiency within its customs framework.
Future Prospects: A Fully Automated Customs Network by 2025
Looking ahead, Iraq’s vision for a fully automated customs network is ambitious but attainable. The government aims to complete the automation of all customs centers by 2025, with plans to expand the ASYCUDAWorld system across the country. This would enable Iraq to create a comprehensive “single window” platform that integrates multiple government agencies involved in trade clearance, further streamlining procedures and reducing bureaucratic red tape.
The integration of AI will not only enhance transparency and accountability but also improve Iraq’s competitiveness in international trade, vital for the country’s economic recovery. This comprehensive overhaul of Iraq’s customs system sets a precedent for other countries looking to modernize their trade operations through AI innovation.
Iraq’s ambitious move to incorporate AI into its customs operations marks a pivotal moment in its digital transformation journey. By automating processes, enhancing risk management, and training its workforce, Iraq is fostering a more efficient, transparent, and secure customs environment. As the country continues to implement AI-driven solutions and expand its ASYCUDAWorld system, it positions itself as a forward-thinking player in the global trade arena.
This modernization not only promises economic benefits, such as increased revenue and reduced corruption, but it also aligns Iraq with international standards, facilitating smoother trade relations with global partners. With the full integration of AI and automation by 2025, Iraq is set to redefine its customs operations for decades to come.
Source: Iraqi News Agency
