Zero Duty Is Not Zero Paperwork: Iraq’s Solar Import Customs Decision

Zero Duty Is Not Zero Paperwork: Iraq’s Solar Import Customs Decision

Iraq’s Cabinet has approved removing customs duties on imported solar energy systems, according to Iraq Business News on 22 October 2026. The stated aims are to encourage renewable energy adoption and lower equipment costs. The decision followed a proposal from the Ministry of Electricity, sent to the Prime Minister on 23 September 2026.

What is known, and what is not

The published reporting is thin. It does not state the Cabinet session date, the tariff codes or components covered, any eligibility conditions, the effective date, or a decision number. Earlier in 2026, customs duty on solar supplies was reported reduced to 5%, so the change is a move from a reduced rate to removal, but the precise legal text has not been seen by us.

Separately, the Ministry of Electricity has drafted 40 articles on connecting solar systems to the national grid and on electricity exchange between citizens and the network. That draft has been sent to the State Council for legal review and must then go to the Cabinet. It is a draft, not law.

Why it matters for importers and contractors

A Cabinet approval is not the same as a customs rule that clearance officers apply at the border. Before relying on a zero rate, importers, EPC contractors and equipment suppliers should consider the following:

  • Obtain the decision text or the Customs Authority implementing notice and confirm which tariff codes and components are covered.
  • Confirm the effective date and how it applies to goods already shipped or contracted.
  • Align contract pricing, Incoterms and change-in-law clauses so that duty risk is allocated deliberately.
  • Check whether other charges, inspection requirements or licences still apply.

Iraq Gate Legal Consulting advises foreign companies on customs and tax, energy-sector contracts, regulatory compliance and market entry in Iraq. To discuss a solar or energy import project, contact us.

Sources: Iraq Business News, “Zero Tariffs on Imported Solar Systems in Iraq” (22 October 2026); pv magazine, “Iraq slashes solar import tariffs to 5%” (4 March 2026).

Disclaimer: This article is for general information only. It is not legal advice, does not create an attorney-client relationship, and does not guarantee any outcome. Laws and regulations change; seek advice on your specific situation.

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