Legal Challenges of Insurance and Customs Tariffs in Land Transportation of Oil and Gas: A Study in the Context of Iran, Iraq, Afghanistan, and Pakistan

Abstract

The transportation of oil and gas by land across Iran, Iraq, Afghanistan, and Pakistan plays a pivotal role in regional energy security, yet it is confronted by complex legal challenges. This study examines the twin dimensions of insurance and customs tariffs, both of which directly determine the financial and operational feasibility of cross-border energy logistics. The findings reveal that insurance systems across the region suffer from underdevelopment, limited international participation, and persistent disputes over liability and claim settlement. In Iran, sanctions restrict access to global insurers and force reliance on domestic providers with limited capacity. Iraq struggles with post-conflict uncertainty, corruption, and inadequate enforcement mechanisms, while Afghanistan faces underdeveloped markets and dependence on foreign reinsurance. Pakistan, despite having a stronger insurance sector, is constrained by politicized regulations and limited harmonization with regional standards. Customs tariffs represent another layer of legal complexity. Iran’s exemptions favor state enterprises but create barriers for private actors. Iraq’s enforcement remains inconsistent due to corruption and weak border institutions. Afghanistan’s commitments under transit agreements are undermined by local tariff practices and its slow progress toward World Trade Organization standards. Pakistan’s tariff policies under the Afghan Transit Trade Agreement are marked by disputes and politicization, despite partial alignment with international trade rules. The comparative analysis demonstrates that while all four countries share weaknesses in harmonization, corruption, and instability, each faces distinct challenges. These legal shortcomings not only inflate costs and reduce predictability but also undermine regional cooperation and the development of energy corridors. The study concludes that legal reforms, harmonization of frameworks, and depoliticized administration are essential for achieving secure and efficient regional energy transportation.