VI. TRADE REGULATIONS AND STANDARDS TARIFFS AND IMPORT TAXES All goods imported into Syria are subject to customs duty and unified tax. Customs duty rates are progressive and range from 1 pecent to 200 pecent, depending on the government's view of the necessity of a product. Food and industrial raw materials carry relatively low rates, while luxury items such as automobiles have been assigned rates in the 150 - 200 percent range. The Unified Tax is surcharge on all imported goods which is allocated to the military, schools, and municipalities. Rates range from 6 percent - 35 percent and are collected by the Customs Department. Customs procedures are cumbersome, tedious, and time-consuming because of complex regulations. Custom duty percentage Unified tax percentage 1 6 2 11 3-6 12 7-11 13 12-18 14 19-23 15 24-28 16 29-30 17 31-36 18 37-40 19 41-45 20 46-50 21 51-55 22 56-59 23 60-64 24 65-69 25 70-74 26 75-78 27 79-83 28 84-88 29 89-93 30 94-98 31 99-100 32 OVER 100 35 a. Raw material inputs are taxed between 5-10 percent. b. Equipment for local factories are taxed between 10-20 percent. c. Food products are taxed 1-15 percent. d. Appliances are taxed between 30-60 percent. Passenger vehicles under 1000 kg in weight are taxed 150 percent, over 1000 kg vehicles are taxed 200 percent. CUSTOMS VALUATION Prior to December 1993, the Customs Service valued imported articles using the "official" rate of exchange, 11.2 SP/USD. However, in December 1993, the government ordered that all goods dutiable at 50 pecent and above would be valued at a new exchange rate of 23 SP/USD. On May 1, 1994, the government altered customs valuation further, ordering that goods dutiable between 30 pecent and 50 percent be valued at the new 23 SP/USD rate. Meanwhile, items which the government began allowing into the country last year, such as telephones, fax machines, and other previously banned consumer electronics goods, have been valued at the NCR, 42 SP/USD. IMPORT LICENSES Registered Syrian merchants and industrialists must obtain an import license, issued by the Ministry of Economy and Foreign Trade, for any product they wish to enter this country. In general, an importer may obtain a license to import any product contained in the Ministry of Economy and Foreign Trade's list of importable items. However, the Ministry has been known to deny applications for import licenses for listed products if the importation of that product is not considered expedient by Ministry officials. IMPORT/EXPORT DOCUMENTATION Shipping documents for goods exported to Syria must include: 1. Bill of lading. 2. Valid import license. 3. Commercial invoice in five copies describing the type of goods, price, basic specifications, and method of payment. This document should be certified by the chamber of commerce in the country of origin. 4. Packing list in five copies. 5. Certificate of origin in five copies certified by the Chamber of Commerce and Syrian Embassy in the country of origin. To export, a Syrian company must be registered with a Syrian Chamber of Commerce. Goods leaving the country must be accompanied by a commercial invoice, certified by the Chamber of Commerce, and a packing list. Except for fruits and vegetables exports, an exporter must also produce a bank guarantee that hard currency earnings will be returned to Syria within a limited period of time. TEMPORARY ENTRY The Syrian government grants temporary entry for the following reasons: Large Projects: A foreign company executing a project in Syria is entitled to temporarily import any equipment necessary to complete the project. When the work is completed, the company must re-export all equipment and vehicles temporarily imported. Several companies have experienced difficulties re-exporting equipment, especially computers and vehicles under these provisions. Typically, some unresolved disputes between the Syrian government and the contractor are the source of the difficulties. International Organizations: They are entitled to import vehicles, furniture, and equipment necessary. Tourists: Tourists are entitled to travel around the country in their personal vehicles. Trade Shows: Trade show participants may temporarily import goods for display, but must re-export them at the conclusion of the event. Occasionally, the Syrian authorities permit the permanent import of goods which are displayed in a trade show organized in Syria. LABELING, MARKING REQUIREMENTS: Food, dairy products, and medicines are supposed to be labeled. The labeling should include: name of producer/exporter, ingredients, date of manufacturing, date of expiry, and for medicines, a batch number is also required. PROHIBITED IMPORTS: Prohibited imports are narcotics, appliances, and all food and other products that compete with locally produced goods, cheese and fruits. STANDARDS (e.g. ISO 9000 usage): The Syrian Arab Committee for Standards abides by ISO standards and regulations. ISO 9000 is a set of instructions that corresponds to Syrian standard numbers: 1147, 1148, 1149, 1150, 1151 and is a set of instructions related to quality. FREE TRADE ZONES/WAREHOUSES: The General Organization of Free Zones (GOFZ) was established in 1972 to promote foreign investment in Syria and to exploit Syria's economic potential and historic trading role as a "bridge" between East and West. Two free trade zones are located in the ports of Latakia and Tartus. In addition, there is a free zone near the border town of Dar'a, a joint venture between Syria and Jordan, a free zone in Adra (north of Damascus), one at Damascus Airport, and one in Damascus. The government provides the following benefits to companies operating in the free zones: a. No import licensing of inputs and goods entering the zones is required. Importers need to present only a manifest as documentation and for inspection purposes. Only military and other prohibited items are excluded. b. No re-export regulations or restrictions are imposed, again except for military and internationally prohibited items. c. All goods entering and stored in the zones are exempt from local taxes and duties. d. All foreign exchange operations are free of applicable currency restrictions. e. Any commodity permitted to be imported into Syria can be imported from the free zone manufacturing facilities. MEMBERSHIP IN FREE TRADE ARRANGEMENTS: Except for few Arab countries like Egypt, Syria has no free trade arrangements with other countries. On the other hand, Syria has trade agreements with many Arab and other countries around the world. Special import provisions: Syria enforces the Arab Boycott of Israel. Goods of Israeli origin are prohibited for import into Syria. In addition, all imported goods must come directly from its country of origin.