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Exemptions from the Reconstruction Levy
1.1 The following goods shall be exempt from the Reconstruction Levy:
- Food.
- Medicines and medical equipment.
- Clothing.
- Books.
- Goods imported to be delivered as humanitarian assistance to the people
of Iraq or in support of the reconstruction of Iraq.
- Imports of the type exempted under the Vienna Conventions on Diplomatic
Relations of 1961 and Consular Relations of 1963 and imports exempted under
the
Convention on the Privileges and Immunities of the United Nations.
- Goods imported by the United Nations, other international organizations,
not-for profit organizations, or foreign governments to be used or
distributed for the
public benefit as defined in Administrative Instructions.
2.1 The Reconstruction Levy shall not apply to the following persons or
entities:
- Coalition Provisional Authority;
- Coalition Forces;
- Forces of countries, their contractors and sub-contractors, acting in
coordination
with Coalition Forces;
- Coalition contractors and sub-contractors, as defined in CPA Order Number
17,
who supply goods directly to the Coalition Provisional Authority and
Coalition
Forces;
- Departments and agencies of Coalition Forces’ governments, and their
contractors and sub-contractors that are providing technical, material,
financial, human resource assistance to Iraq;
- Governments, international organizations and not-for-profit organizations
providing technical, material, financial and human resource assistance;
- Members of the above categories to whom goods are consigned or by whom
goods are imported for their personal use.
3.1 The Reconstruction Levy shall not apply to imports under the Oil for
Food contracts.
4.1 Definitions of Exempt Organizations
A “not-for-profit organization” is an organization that is not
organized for commercial purposes and no part of the income or surplus of
which is at
any time payable to, or otherwise available for the personal benefit of, any
proprietor, member, shareholder, or any individual who is a spouse, child,
grandchild, parent, grandparent, or sibling of any of the aforesaid, or
majority owner of an entity that is a member or shareholder of the
organization. The organization may provide such a proprietor, member,
shareholder or any individual who is a spouse, child, grandchild, parent,
grandparent, or sibling of any of the aforesaid, or majority owner of an
entity that is a member or shareholder of the organization with benefits
that are generally
available to the general public.
The term “public benefit” means activities aimed at achieving a
universal or common good for the general public through the advancement,
protection, maintenance, support, improvement or enhancement of:
- Health, which includes without limitation, the prevention and relief of
sickness, disease or of human suffering;
- Education;
- Social and community welfare, which without limitation includes:
- The prevention and relief of poverty;
- he care, support and protection of the aged, minors, vulnerable persons and populations, and people with a disability;
- The care and support of members or former members of the armed services;
- Religion;
- Culture;
- The natural environment; and
- Other purposes beneficial to Iraq.
An “international organization” is an organization with an
international legal personality and an independent decision-making organ
that is established under international law by an international agreement or
other formal constitutive document, and performs functions of a genuinely
international character. Such term includes, but is not limited to, the
United Nations (including its agencies), the Arab League, the International
Monetary Fund, the World Bank, the Organization for the Prohibition of
Chemical Weapons, the International Atomic Energy Agency, and the World
Trade Organization.
Organizations that meet the definitions of not-for-profit organizations and
international organizations will be considered a not-for-profit organization
or international organization for purposes of this regulation only after the
organization has registered with the Customs Department, including, where
applicable, registration as a non-governmental organization pursuant to CPA
Order Number 45. An organization that has not registered with the Customs
Department prior to importation of goods will be required to pay the
reconstruction levy at the time of importation. The levy will be refunded if
the organization meets the applicable definition and registers with the
Customs Department within 60 days of the date of importation.
The reconstruction levy exemption for the persons and entities listed at
Section 2(2) of CPA Order Number 38 shall apply as follows:
- Section 2(2)(c) of CPA Order Number 38 covers forces of countries and
their
contractors and sub-contractors acting in coordination with Coalition Forces
only
to the extent of activities that are in coordination with Coalition Forces
and with
respect to goods imported for such activities;
- Section 2(2)(d) of CPA Order Number 38 covers Coalition contractors and
subcontractors only with respect to imported goods supplied to the Coalition
Provisional Authority and Coalition Forces; and
- Sections 2(2)(e) and 2(2)(f) of CPA Order Number 38 cover contractors and
sub-contractors of Coalition Forces’ departments and agencies, governments,
international organizations, and not-for-profit organizations, only with
respect to
goods that those persons or entities import for the provision of technical,
material,
financial and human resource assistance.
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