This Law aims at regulating activities of the Commercial Agency which an Agent exercises in Iraq in favor of a Natural or a Juristic Person from outside Iraq. And regulating dealing of the State Departments, and the Socialist, the Mixed and the Private Sector, and the Federations with the Arab and foreign Natural and Juristic Persons in a manner which achieves aims of the development and avoids the exploitation and ensures interest of the national economy.

Aims of this Law shall be achieved by the following means :-

1st : Obtaining a License for practicing activities of the Commercial Agency,

2nd: Registering the Commercial Agencies in a Special Register in compliance with provisions of this Law.

3rd: Supervision over activities of the Commercial Agents.

By the following expressions, it is intended the meanings

shown against them for the purpose of this Law :-

1st: The Commercial Agency : Any commercial activity undertaken in Iraq "by an individual in a capacity of Agent for a Natural or a Juristic Person from outside Iraq, whether it was a Commercial Agency, or Agency by Commission or

any other Commercial Agency prescribed in the specific Laws of Trading and Companies and Transportation.

2nd: the Commercial Agent : the Natural or the Juristic Person who undertakes any of the Commercial Agency activities prescribed under item (1st) of this Section.

3rd : The Registrar : Registrar of the Companies.

4th : The License : The Certificate issued by the Registrar

for the Commercial Agent.

1st : In granting the License to the Commercial Agent, it is a condition that he should be :-

a) An Iraqi and resident in Iraq.

b) Legally competent and has attained twenty five years of age.

c) Not sentenced under a derogatory crime.

d) Has a Commercial Office in Iraq to exercise his activity.

e) Subscribed to one of the Chambers of Commerce in Iraq and has a Commercial Name.

f) His loyalty to the homeland is indisputable.

g) Not an Official or a Civil Servant.

2nd : The Minister of Trade may exclude temporarily the applicant

to be granted the License from the conditions prescribed under both paras (d and e) of item (1st) of this Section, provided that these conditions shall be completed within a period to be specified by the Minister.

3rd : If the applicant to be granted the License is a Company, hence, it is a condition in this case, in addition to the conditions prescribed under both paras (d and e) of item(1st) of this Section, that it should be Iraqi and that all its capital should be owned by Iraqis.

4th : It is not permissible to register more than three Agencies for the Natural or the Juristic Person, and the Agencies registered which exceed the said number shall be crossed out according to option of the Commercial Agent concerned.

1st : The applicant to be granted the License should submit an application to the Registrar to obtain a License for exercising activities of the Commercial Agency, coupled with the documents which prove prevalence of the conditions prescribed under Section (4) of this Law.

2nd: The Registrar should consider the application within (30)thirty days from date of its submission, and in case it is rejected, the applicant may object at the Minister within(30) thirty days from the next day of date on which he has been notified about rejection of the application, and ruling of the Minister, in this respect, shall be final.

3rd : When the application is accepted, the Registrar should issue the License which must contain its serial number, and its date, and name of the Commercial Agent, his address or and photograph of the Managing Director in case it is a Company.

1st : The Commercial Agent should submit a request for renewing his License every two years within (60) sixty days from its expiry, whatever date of granting the License or its previous renewal may be.

2nd : If he does not submit the renewal request within the period prescribed under item (1st) of this Section, hence, the Registrar should impose a fine amounting (1000) one thousand Dinar for each day delay and for a period not exceeding(60)

sixty days.

3rd : If the Agent defaulted to renew the License beyond the period prescribed under item (2nd) of this Section, hence, the Registrar should cancel the License, and the Commercial Agent

may object at the Minister within (30) thirty days from the next day for date of being notified accordingly, and the ruling of the Minister, in this respect, shall be final.

4th: It is not permissible to grant a License to the Agent unless after payment of the duties and the fines imposed on him.

5th: Upon cancellation of the Agent's License, and his non obtainment of a new License within (180) one hundred and eighty days

from date of its cancellation, this shall entail, by force of the Law, cancellation of all his agencies registered according to provisions of this Law, without touching upon the obligations arising upon him before cancellation of the License.

1st: She Registrar should cancel License of the Agent in one of the following two instances:-

a) In case of losing any of the conditions prescribed under Section (4) of this Law.

b) Non submission of a legalized Commercial Agency according to the Law within (90) ninety days from his obtaining the License.

2nd : The Agent may object against decision of the Registrar at the Minister within (30) thirty days from date of being notified about cancellation of his License, and ruling of the Minister, in this respect, shall be final.

The Registrar may decide considering any commercial activity undertaken in Iraq by a Natural or a Juristic Person according to the legal evidences as a commercial agency subject to provisions of this Law, and those concerned may object at the Minister within (30) thirty days from date of being notified with decision of the Registrar, and ruling of the Minister, in this respect, shall be final.

The Agent should submit a request to the Registrar for registering all his Commercial Agencies in respect of the Natural Persons and the Companies, and the Arab and Foreign Parties, after completing their legalization according to the Law.

1st : The Agent should maintain a special journal (book) to be devoid from any crossing out or erasure or filling or blank not necessary by rules of Commercial Book-keening, provided it is presented to the Registrar, or whomever he authorizes, upon its opening in order to fix number of its pages, and to stamp each page thereof, at the end of each year, to endorse upon number of the pages being used before end of the year, and to earmark its closure at the last page thereof.

2nd : The Commercial Agent should write in the special journal amount of the commission realized therefor, showing amount being remitted to Iraq, through intervention of the licensed banks, and its percentage to amounts of the deals concluded, and the commercial dealings made for account of his Principal, together with mentioning names of all those concerned, with their full addresses.

3rd: The Commercial Agent should submit to the Registrar a statement in duplicate within (60)sixty days from starting of the year with commercial activities which he undertook during the previous year, provided that it should contain total amounts realised for him through exercising the Commercial Agency activities quite in detail, and the amount he received therefrom actually, together with stating the parties which remitted for him those amounts, and the supporting banking documents and certifications therefor. The Registrar may accept the statement after elapse of the said period within (90) ninety days from date of its expiry, if the delay was due to a legitimate excuse.

4th: The Agent may import the materials allowed to be imported with full amount of the commissions realized for him or with a portion thereof, and to bring back the remaining currencies into Iraq.

It is allowed for the Agent to deal in all kinds of commodities, without restriction of goods classification, according to the Instructions issued in this respect.

The Registrar has control and supervision authority over activities of the Agent, and he may send his representative to inspect his Office and to check his journals.

1st: The Arab and the Foreign Company wishing to select an Agent therefor in Iraq may submit a request to the Registrar for same.

2nd: The Registrar undertakes to provide the Arab and the Foreign Company with names of the licensed Commercial Agents to select a Commercial Agent to represent it in Iraq.

1st : Departments of the State and the Socialist Sector shall be prohibited from dealing with the Commercial Agents whatsoever nomenclatures they may assume, whether they were Natural or Juristic Persons, and their dealing shall be directly with the Arab and foreign Companies.

2nd: If it becomes impossible for Departments of the State and the Socialist Sector to deal directly with the Arab and the Foreign Companies, hence, they should submit a request to obtain approval of a central authority to make dealing through the licensed Commercial Agents.

Every one who undertakes a Commercial Agency activity before obtaining the License, or did not register all his agencies, or acted contrary to provisions of Section (14) of this Law shall be penalized with temporary imprisonment. If the violator was a Juristic Person, then whoever represents it legally shall be penalized with the same penalty, together with observation of provisions of Section (80) of the Penal Code No.(111) for the year 1969.

Every Civil Servant who undertakes intentionally to do Commercial Agency activities in order to conclude a contract

with Departments of the State and the Socialist Sector shall be penalized with life imprisonment.

Every Official in Departments of the State and the Socialist Sector who acts contrary to provisions of Section(14)of this Law shall be penalized with life or temporary imprisonment.

1st : There shall be penalized with a fine not less than (10 000) ten thousand Dinar and not exceeding over (100 000) one hundred thousand Dinar every Agent:-

a) who did not maintain a journal in which it is written amount of the commission realised according to provisions of it6m (2nd) of Section (10) of this Law.

b) who did not submit a statement within the time prescribed under item (3rd) of Section (10) of this Law.

c) who did not submit the data pertinent to his importers from amounts of the commissions realised for him, together with a statement of the commissions prescribed under item (3rd) of Section (10) of this Law.

2nd : the penalty shall be imprisonment in case of recurrence when committing any of the acts prescribed under item (1st) of this Section.

The Agent licensed before validity of this Law should qualify his status according to provisions of this Law within one year from date of its validity, otherwise his License shall be deemed cancelled.

The Minister of Trade may exclude any of the Departments of the State and the Socialist Sector, when dealing in the capacity of a Commercial Agent, from provisions of this Law by a statement to be published in the Bulletin of the Companies Registration Department.

1st: The following duties shall be levied from the Agent:-

A - (25 000) twenty five thousand Dinar for issuing the License.

B - (15 000) fifteen thousand Dinar for registering the Commercial Agency.

C - (10 000) ten thousand Dinar for renewing the License.

2nd : The Council of Ministers, or whomever it authorizes, may amend amount of the duties and the fines prescribed under this Law whenever the need necessitates.

1st: Law of Regulating the Commercial Agency No.(26) for the year 1994 shall be repealed.

2nd: The Scientific Bureau for Promotion of the Medicines, licensed in compliance with provisions of the REVOLUTIONARY COMMAND COUNCIL Resolution No.(60) for the year 1998 shall be excluded from provisions of this Law.

The Minister of Trade may issue instructions to facilitate implementation of provisions of this Law.

This Law shall be implemented from date of its publication in the Official Gazette.

SADDAM HUSSEIN

Chairman

REVOLUTIONARY COMMAND COUNCIL

For the purpose of regulating activities of the Commercial Agency in a way that achieves objectives of the development and curbs phenomena of the exploitations and prohibits the illegitimate intermediary, THIS LAW HAS BEEN PROMULGATED. This Law has been published in the Official Gazette issue No. 3846 dated 02.10.2000.