Deir Ezzor – Obadah al-Sheikh
Car traders and owners in the eastern countryside of Deir Ezzor, controlled by the Autonomous Administration of North and East Syria (AANES), complained about the decline in the sale of European cars from models before 2016 during the past two months of June and July.
The reasons for the market stagnation are due to the stoppage of the Transport Directorate from registering vehicles, focusing instead on collecting customs duties for vehicles registered through illegal means at amounts lower than the official price by AANES employees.
AANES penalized the owners of these vehicles with a fine equal to 150% of the vehicle’s customs duty value (which varies according to the model and type of car) under the name “settlement,” causing harm to car owners and office operators.
Noticeable decline
Jassem al-Omar, owner of a car trading office in the town of Gharanij in eastern Deir Ezzor, described the car market in the eastern countryside of Deir Ezzor as “deteriorating,” stating that sales had dropped by up to 85%.
He told Enab Baladi that traders are sometimes forced to sell cars at low prices, incurring financial losses to dispose of their available stock, due to the low demand and increased supply of cars that have not yet been “customs cleared” (registered).
The merchant added that the settlement decision, which imposes on vehicle owners who paid customs duties for their cars illegally, would require an additional half the amount as a fine, leading to a change in market demand patterns.
The decision aims to organize the customs clearing and re-registration process for vehicles legally, according to the AANES, prompting many car owners to comply with the new conditions to avoid penalties and legal complications.
Meanwhile, Mahmoud Masoud, who owns a car sales office in the town of Hajin in eastern Deir Ezzor, told Enab Baladi that his sales had fallen by more than half over the past two months, noting that all car traders are calling on the customs administration to open customs clearance for cars from the year 2000 and later.
He considered that this measure could help improve the economic situation of the local market and assist in clearing the accumulated stock held by traders and store owners.
Procedures encourage acquiring used cars
Some traders believe that facilitating customs procedures encourages more citizens to acquire used cars, which might revive the stagnant market.
Car office owner Masoud mentioned that vehicle prices had dropped by more than 30%. For example, a 2010 model Veracruz car, previously sold for $8,000, is now sold for $6,000 due to the low demand.
Similarly, the prices of 2012 Mohave cars fell from around $12,000 three months ago to $8,000 currently, while the prices of 2015 H-100 cars declined from approximately $14,000 to about $10,000 today.
What is customs settlement?
At the end of last year, the Transport Directorate in Deir Ezzor announced the settlement of the status of 500 vehicles whose owners were “deceived” by former employees, leading to the closure of the directorate for more than six months before reopening in February.
Several of those vehicle owners began registering their cars despite the directorate imposing a fine. The fine equaled 150% of the vehicle’s customs value as a penalty for registering their cars illegally.
A responsible source at the Deir Ezzor Transport Directorate, who preferred not to be named because they were not authorized to speak to the media, told Enab Baladi that the settlement period was supposed to end on July 30, but it might be extended to complete the registration of vehicles that have not been registered yet.
The source added that there is no intention to open customs clearance for pre-2016 models at present, and the Autonomous Administration will only work on importing and clearing modern vehicles to develop the fleets in areas under its control.
The Autonomous Administration issued a notice from the General Administration for Vehicle Registration on May 8, urging residents in controlled areas not to purchase non-customs cleared vehicles. It clarified that no final customs clearance would be opened for vehicles manufactured before 2016.
The Autonomous Administration stated that uncustomed vehicles would be directly confiscated, and those who smuggle them into northeastern Syria would be legally pursued.