The impact of unified customs tariffs in Syria
A decision was issued by the General Authority for Land and Maritime Crossings, affiliated with the Damascus caretaker government, to unify customs tariffs at all crossings in Syria, raising questions about the impact of this decision on the Syrian economy and the living conditions of Syrians.
The decision, issued on January 11, comes amidst difficult living conditions that Syrians have been suffering from for years, despite a noticeable decline in the prices of some goods, especially vegetables, with the exception of bread and some fuels.
Differences based on controlling party
Before the fall of the Syrian regime, Syrian crossings were divided based on their location on the map of control. The regime controlled most of the crossings in Syria, specifically those connecting it to Jordan and Lebanon, along with the al-Bukamal crossing with Iraq, where traders in those areas suffered from high customs tariffs, prompting them to resort to smuggling operations.
In the north, the opposition controlled the crossings with Turkey, most notably Bab al-Hawa, which was under the management of crossings affiliated with the Syrian Salvation Government (SSG), the precursor to the caretaker government of Damascus headed by Mohammed al-Bashir.
The management of the Bab al-Hawa crossing (before the unification of crossing management in Syria) imposed lower customs tariffs on imports compared to those imposed by the previous regime at the crossings it controlled.
At the end of 2024, the Damascus caretaker government announced the establishment of a General Authority for Land and Maritime Crossings, integrating customs, border points, and the Free Zones Authority into it.
Unification of customs tariffs
On January 11, the Relations Officer at the General Authority for Land and Maritime Crossings, Mazen Alloush, stated that a unified customs tariff schedule has been adopted, applicable to all customs offices at land and maritime ports and airports.
Alloush noted that the unified customs tariffs took into account the protection of local products by encouraging industry through reduced tariffs on raw materials and implementing the agricultural calendar to protect farmers and support the agricultural sector.
The decision included most imported materials at varying rates and values, which are 50 to 60% lower than those previously imposed by the regime, while increases exceeded 300% for customs tariffs previously applied by the crossings administration in northern Syria.
What is the impact of the decision?
Economist Dr. Firas Shaabo believes that the impact of the decision has been exaggerated in media and popular circles, as it pertains to unifying customs tariffs across all crossings, not increasing them.
The researcher clarified in an interview with Enab Baladi that the crossings outside the authority of the Assad regime in northern Syria did not charge customs tariffs but rather minimal service fees.
According to the economic researcher, the controversy arose from objections by some traders and customs brokers working in Idlib city, northwestern Syria, who found discrepancies in the tariffs.
The new tariffs should not be measured by percentages, according to Shaabo, who gave the example of flour, where the Salvation Government imposed a fee of about two dollars per ton, which increased to about twenty dollars.
Shaabo doesn’t see this increase as significant, even though the percentage has risen sharply, as it amounts to only a few cents per kilogram, which does not impact living conditions noticeably.
Regarding prices, Shaabo stated that they are expected to rise, which is inevitable, noting that this applies to the northern region specifically, unlike other regions where prices may decline compared to previous levels.
According to what was reported by Enab Baladi, some traders in northern Syria protested the implementation of the decision on the day it was announced, as it affects contracts made between them and wholesalers, which were fixed based on the previous customs tariff.
Shaabo believes that the recent increase in tariffs previously applied at the Bab al-Hawa crossing will not lead to trader losses but will reduce profit margins, as the imposition of 40 dollars per ton of sugar, for example, is not considered a significant increase.
On the other hand, Shaabo views the timing of the implementation as “inappropriate,” occurring during a “sensitive” period, calling for a reconsideration of tariffs on certain materials, particularly fuels and essential commodities for citizens.
“Empty treasury”
Dr. and economic researcher Firas Shaabo stated to Enab Baladi that the current government inherited a treasury emptied of resources, necessitating the introduction of means to fund the budget.
He added that customs revenues are the fastest way to finance the Syrian state budget and support other sectors such as water and electricity.
The Prime Minister of the Damascus caretaker government, Mohammed al-Bashir, stated at the beginning of his administration after the regime’s fall, about a month ago, that he inherited a Syrian treasury empty of foreign currency and that only the Syrian pound was left, which according to him, “is worth nothing.”
On December 18, 2024, the customs authority of the previous regime was dissolved, while the land and maritime crossings previously under the regime’s control continued to allow many types of goods to enter without customs tariffs, which economic researchers viewed as a “threat to the state’s treasury.”
Political economy researcher Ayman Dasuki said to Enab Baladi earlier that it is understandable that the elimination of many tariffs encourages import activity to meet local market needs for goods, but this, in the long run, contributes to the state budget losing resources on one hand and inhibits the growth of local production, especially for domestically produced goods.
According to Shaabo, the law unifying customs tariffs was enacted under pressure from industrialists within Syria, as the removal of tariffs is viewed as a “threat to local products,” leading to a reliance on imported goods over domestic industries.
The unified tariffs in the latest decision aim, according to Alloush, to support the industrial sector and encourage investment attraction by providing exemptions to investors and factory owners who had to remove their equipment or facilities due to the consequences of war and wish to return them to Syria or those looking to bring in new complete factories.
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