Syria, a country located at the crossroads of the Middle East, has a rich and complex history, with a strategically important geographical location that connects Europe, Asia, and Africa. While Syria’s economy was once diverse and relatively open to international trade, the ongoing conflict since 2011 has led to a significant shift in its economic landscape. The destruction of infrastructure, a reduction in industrial capacity, and the international sanctions imposed on the country have made Syria’s import system more complex, with a focus on sustaining essential imports, including food, medical supplies, machinery, and fuel.
Despite these challenges, Syria continues to maintain a formal import tariff system to regulate the flow of goods into the country. Tariff rates vary by product category, and the Syrian government imposes customs duties to protect local industries and generate revenue. Additionally, there are special tariffs and exemptions for specific goods, and certain countries may benefit from preferential trade agreements or reduced tariff rates.
Overview of Syria’s Import Tariff System
Syria’s tariff structure is governed by the Syrian Customs Department and follows a Harmonized System (HS) classification, which is used internationally to standardize the classification of traded products. The country also maintains a system of non-tariff barriers, such as quotas and licensing requirements, which can impact the import of certain goods. Additionally, Syria’s tariffs are shaped by the country’s international relationships, trade agreements, and political climate, especially considering the impact of sanctions imposed by the United Nations, the European Union, and other nations.
Key Aspects of Syria’s Tariff System:
- Customs Duty:
- Basic Customs Duty rates for imported goods range from 5% to 40% depending on the product category. Essential items such as food and medicine may be taxed at lower rates or exempt from duties.
- Value Added Tax (VAT):
- A 10% VAT is applied to most imported goods. Some essential goods (e.g., medicine, food staples) are VAT-exempt or taxed at a reduced rate to ensure that these products remain affordable for the population.
- Surtax:
- A surtax may be levied on luxury goods or items considered non-essential. The rate is typically 5% to 20%, depending on the product.
- Special Import Permits:
- Certain goods, such as pharmaceuticals, medical devices, and military-related items, require special import licenses. These licenses are issued by government authorities, and the process is often subject to additional scrutiny due to sanctions or security concerns.
- Customs Fees:
- In addition to the import duty, customs fees may apply depending on the value of goods, the type of product, and its intended use. Fees can range from a few dollars for lower-value imports to higher fees for more expensive items.
- Exemptions and Preferential Rates:
- Syria has agreements with certain countries, including Iran and Russia, which allow for preferential tariffs on specific goods under bilateral trade deals. These agreements are subject to change based on geopolitical conditions and diplomatic negotiations.
Import Tariff Rates by Product Category
1. Agricultural Products
Agriculture has historically been a vital sector of Syria’s economy, though the ongoing conflict has severely impacted domestic agricultural production. Consequently, Syria relies heavily on food imports to meet its population’s needs. The country’s tariff system for agricultural products is structured to promote local agriculture while ensuring access to essential food products.
Grains and Cereals (HS Code 10)
- Wheat: 5% duty
- Wheat is a staple food in Syria, and while local production is important, the country frequently imports wheat to meet demand. Wheat from certain countries, such as Russia or Ukraine, may benefit from preferential rates under bilateral agreements.
- Rice: 10% duty
- Rice is a key food item in Syria, and the country imports significant quantities, particularly from India and Pakistan. The tariff on rice is set at 10%, though special exemptions may apply for rice imports from certain countries.
- Maize (Corn): 10% duty
- Corn, used primarily in animal feed and food products, faces a 10% duty. Syria imports most of its corn from regional producers, including Turkey and Egypt.
Fruits and Vegetables (HS Codes 07, 08)
- Citrus Fruits: 15% duty
- Syria imports large quantities of citrus fruits, particularly oranges and lemons, from countries such as Egypt and Turkey. The tariff on citrus fruits is generally 15%.
- Tomatoes: 15% duty
- Fresh tomatoes, a key ingredient in Syrian cuisine, are imported at a 15% duty, though Syria also produces a significant amount locally.
- Bananas: 20% duty
- Bananas are not grown in Syria due to the climate, and the country imports them primarily from Egypt and Lebanon. The tariff on bananas is 20%.
Meat and Poultry (HS Code 02)
- Beef: 20% duty
- Syria imports beef from countries such as Brazil and Argentina. The 20% duty on beef reflects the government’s desire to protect local meat production, although local output is limited.
- Poultry: 10% duty
- The import of poultry, particularly chicken and turkey, is taxed at 10%, as these are staple proteins in the Syrian diet.
Dairy Products (HS Code 04)
- Milk Powder: 5% duty
- Milk powder is essential for households with young children, and it is imported at a relatively low 5% duty. The government makes efforts to ensure an adequate supply of this commodity.
- Cheese: 15% duty
- Cheese is an important part of Syrian cuisine, and the 15% tariff on cheese applies to imports from countries such as Lebanon, Turkey, and France.
- Butter: 10% duty
- Butter is also imported at a 10% duty, with special rates for specific products depending on origin and use.
2. Textiles and Apparel
Syria’s textile industry has been affected by the ongoing conflict, and the country imports a significant amount of finished garments and raw materials for local production. Tariffs on textiles are set to balance the need for affordable imports with support for domestic manufacturers.
Fabrics (HS Code 52, 54)
- Cotton Fabrics: 15% duty
- Cotton fabrics are taxed at 15%, and Syria imports large quantities from neighboring countries such as Turkey and Egypt.
- Synthetic Fabrics: 20% duty
- Synthetic fabrics, used in the production of a variety of goods, are subject to a 20% tariff, as the local textile industry relies heavily on these imports.
Finished Apparel (HS Codes 61, 62)
- T-Shirts and Shirts: 20% duty
- Ready-made garments such as t-shirts and shirts face a 20% tariff, which is a typical rate for clothing imported from outside the region.
- Jeans: 25% duty
- Imported jeans are subject to a 25% duty to protect local textile production.
Footwear (HS Code 64)
- Leather Boots: 30% duty
- Leather footwear, including boots, is subject to a 30% duty to shield local footwear manufacturers.
- Sports Shoes: 15% duty
- Sports footwear like sneakers faces a 15% duty, with some preferential rates for imports from Arab League countries.
3. Electronics and Electrical Equipment
Syria has seen a growing demand for consumer electronics and industrial electrical equipment, though the ongoing conflict and economic constraints have made access to high-tech goods more difficult. The tariff rates for electronics and electrical machinery are typically lower to foster access to essential technology.
Mobile Phones and Computers (HS Code 85)
- Mobile Phones: 0% duty
- Mobile phones, which are vital for communication in Syria, are exempt from import duties (0% tariff). This is a measure to ensure that people have access to affordable technology.
- Laptops and Computers: 0% duty
- Laptops and computers are also imported without duties in an effort to promote education and business activities, particularly in urban areas.
Home Appliances (HS Code 84)
- Refrigerators: 10% duty
- Refrigerators are an essential household appliance, and their importation is taxed at 10%.
- Air Conditioners: 15% duty
- Given Syria’s hot climate, air conditioners are taxed at a 15% duty to balance demand and protect local production, though local manufacturing capacity is limited.
Electrical Machinery (HS Code 85)
- Transformers: 15% duty
- Electrical transformers are taxed at 15% to support the local power infrastructure, which is crucial for industrial activities in the country.
4. Automobiles and Auto Parts
Syria’s automobile market is limited, with most vehicles being imported from countries such as China, Iran, and Russia. The government imposes tariffs on automobiles and parts to regulate the market and protect local industries.
Motor Vehicles (HS Code 87)
- Passenger Cars: 25% duty
- Imported passenger cars are taxed at 25%, reflecting the local government’s efforts to promote domestic production and control the flow of luxury goods.
- Trucks and Commercial Vehicles: 30% duty
- Commercial vehicles, including trucks and buses, face a 30% duty to protect the local transport industry.
Automotive Parts (HS Code 87)
- Engines and Spare Parts: 10% duty
- Automotive engines and spare parts are taxed at 10%, reflecting the importance of these goods for vehicle repair and maintenance.
Special Import Duties and Exemptions
Preferential Tariffs Under Trade Agreements
Syria has trade agreements with certain countries, including Iran and Russia, which allow for preferential treatment of certain goods. Under these agreements, the tariff rates on products such as oil, gas, wheat, and medicines may be reduced or exempt.
Impact of Sanctions
The Syrian government faces economic sanctions from various international bodies, including the European Union, the United States, and the United Nations. These sanctions have impacted Syria’s ability to import certain goods, particularly luxury items, military equipment, and certain high-tech products.
Country Facts: Syria
- Formal Name: Syrian Arab Republic
- Capital: Damascus
- Largest Cities:
- Damascus (Capital)
- Aleppo
- Homs
- Per Capita Income: Approx. $1,000 USD (2021 estimate)
- Population: Approx. 18 million
- Official Language: Arabic
- Currency: Syrian Pound (SYP)
- Location: Located in Western Asia, Syria is bordered by Turkey to the north, Iraq to the east, Jordan to the south, and Lebanon and the Mediterranean Sea to the west.
Geography
Syria has a diverse geography, with:
- Mountains: The Anti-Lebanon Mountains in the west and the Alawite Mountains are significant geographical features.
- Desert: The Syrian Desert occupies a large portion of the country’s eastern and southern regions.
- Rivers: Syria is home to several important rivers, including the Euphrates and Orontes rivers.
Economy and Major Industries
Syria’s economy has been severely affected by the ongoing conflict, but before the war, it was one of the more diversified economies in the region. Major industries include:
- Oil and Gas: Syria was a significant oil producer, though output has decreased due to the conflict.
- Agriculture: Syria produces wheat, barley, and cotton, though the sector has been affected by the conflict.
- Textiles and Manufacturing: The textile and light manufacturing industries are important for Syria’s economy, though production has declined in recent years.
