Order 38: Reconstruction Levy
COALITION PROVISIONAL AUTHORITY ORDER NUMBER 38
Pursuant to my authority as Administrator of the Coalition Provisional Authority (CPA),
and under the laws and usages of war, and consistent with relevant U.N. Security Council
resolutions, including Resolution 1483 (2003),
Determined to improve the standard of living for the Iraqi people,
Recognizing that the effective administration of Iraq requires funding for improvements
to its infrastructure and capital public investment,
Recognizing the role of international trade in the development of a free market economy
Noting that tariffs and trade restrictions were suspended under CPA Order Number 12,
I hereby promulgate the following:
Imposition of Reconstruction Levy
1) Notwithstanding CPA Order Number 12 or any other CPA Order suspending a tax,
levy, duty, charge, withholding, fee or tariff, there shall be created a levy known as
the Reconstruction Levy.
2) For the purpose of calculating the Reconstruction Levy, the taxable value of goods
shall consist of their total customs value assessed in accordance with international
3) The Reconstruction Levy shall be imposed at a rate of 5% of the taxable value of
goods. The revenues from the Reconstruction Levy shall be used only to assist the
Iraqi people and support the reconstruction of Iraq. It shall expire two years from the
date that this Order enters into force.
4) Unless exempted under this Order, the Reconstruction Levy shall be imposed on all
goods imported into Iraq from all countries beginning 1 January 2004.
CPA/ORD/9 September 2003/38
1) The following goods shall be exempt from the Reconstruction Levy:
b. Medicines and medical equipment.
Goods imported to be delivered as humanitarian assistance to the people of Iraq or
in support of 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.
g. Goods imported by the United Nations, other international organizations, not-forprofit
organizations, or foreign governments to be used or distributed for the
public benefit as defined in Administrative Instructions.
2) The Reconstruction Levy shall not apply to the following persons or entities:
a) Coalition Provisional Authority;
b) Coalition Forces;
c) Forces of countries, their contractors and sub-contractors, acting in coordination
with Coalition Forces;
d) Coalition contractors and sub-contractors, as defined in CPA Order Number 17,
who supply goods directly to the Coalition Provisional Authority and Coalition
e) Departments and agencies of Coalition Forces’ governments, and their contractors
and sub-contractors that are providing technical, material, financial, human
resource assistance to Iraq;
f) Governments, international organizations and not-for-profit organizations
providing technical, material, financial and human resource assistance;
g) Members of the above categories to whom goods are consigned or by whom goods
are imported for their personal use.
3) The Reconstruction Levy shall not apply to imports under the Oil for Food contracts.
4) Administrative Instructions may be issued under this Order further defining exempt
goods in this Section and exempting defined persons and entities from payment of the
CPA/ORD/19 September 2003/38