ERBIL, Kurdistan Region of Iraq – A Kurdistan Regional Government (KRG) delegation is set to travel to Baghdad and sign an agreement with federal authorities on Thursday regarding the implementation of the ASYCUDA customs system at the Region’s border crossings, an informed source said Wednesday.

The delegation, consisting of representatives from the customs, trade, agriculture, industry, and quality control departments, is set to head to Baghdad at 7:00 pm on Wednesday. The visit aims to finalize the remaining details for implementing the ASYCUDA system at the Kurdistan Region's border crossings.

A member of the KRG delegation told The New Region that meetings with their Iraqi counterparts will begin on Thursday, aiming to reach a “final understanding and sign the memorandum of understanding (MoU) that was prepared during previous meetings.”

Erbil and Baghdad have been at odds over implementing the ASYCUDA customs system. While Baghdad has already adopted it and is pressuring the KRG to follow suit, Kurdish authorities have requested more time. The dispute has also been accompanied by restricting the access of the Region’s businessmen to dollars at the official exchange rate since the start of the year.

After both sides sign the MoU, the document will be referred to the federal ministerial council for economic affairs for final approval, the source added.

The New Region understands that despite the progress, several points of contention remain that the delegation has not been able to resolve and has been left to the council.

The most notable outstanding issue is Baghdad’s demand that 100 percent of customs and border revenues go to Baghdad’s treasury, after which 50 percent would be sent back to Erbil as the Region’s share. However, the Kurdistan Region has not agreed to this request so far.