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12/02/2010 - Issue 46
SBC: New import standards should not apply to sanctioned products
by Syrian Business Council (SBC)
Importers, who have been able to avoid sanctions using intermediary countries, fear they may be exposed to US sanctions on lead technology products with the implementation of new customs and quality assurance regulations.
Aiming to address the lack of coordinated inspection and enforcement procedures of goods coming in to the country, Syrian Business Council (SBC) in cooperation with SGS - one of two companies contracted to carry out inspections - invited stakeholders to a seminar last month to take recommendations on improving the implantation of the “Imports Verification Program” which, until now, has been a source of disagreement and discontent amongst stakeholders.
The SBC says the program should act as “de facto legislation” conditional on the best interpretation of the current customs laws. If implemented, the new program would clarify grey areas surrounding current legislation and require certain imports to attain inspection certification for compliance with quality standards, origin and invoicing.
The seminar resulted in important agreements on ideas to reassure importers and consumers alike and set the ball rolling for the best scenarios to implement the program.
Amongst a set of 14 recommendations, the council agreed on several measures to prepare the Syrian economy and businesses for anticipated tariff structure amendments and new World Trade Organization-compliant import regulations.
Currently many importers resort to under-invoicing to avoid high custom tariffs. In light of the anticipated introduction of value-added taxes pending the application for reduced customs tariffs, the council recommended that inspection of price invoicing of goods should be deferred.
Following the Ministry of Economy and Trade’s decree that importers include import data with products, the SBC acknowledged that currently ministries set their own import regulations and recommended one comprehensive set of import regulations be adopted under the jurisdiction of one ministry.
“One comprehensive set of rules should be agreed by all government entities, be well discussed with stakeholders and be introduced in accordance with a clear and conducive timeframe,” said SBC managing director Thaer Laham.
As it stands, the program has given rise to an increase in smuggling activity. As such, the council said collaborative efforts are essential to monitor market activity and Syria’s borders.
Importantly, the council acknowledged that inspection could pose obstacles to acquiring goods currently embargoed under renewed US sanctions against Syria in the realm of lead technology.
To get around the embargo, importers have had to be particularly resourceful in acquiring such products through intermediary countries. Subjecting these imports to the inspection program will inevitably expose this practice and deprive the local market of access to such products.
As such, the SBC conceded that all commodities subject to the embargo should enjoy special consideration from the new program or be allowed to continue imports unimpeded by the new inspection measures.
Since procedures are still being formulated, and since the list of relevant commodities is periodically modified, the SBC also recommended that the new Syrian standards, commodity lists under the program and enforcement procedures be published online, in English, so foreign exporters can adhere to the model. Semi-finished products and raw materials should also be monitored but for standards compliance only.
Conformity certificates should nullify the need for authentication of shipping documents and consular charges for commodities subject to the program.
But, wary that international exporters may be reluctant to comply with quality assurance procedures that can affect their reputation and credibility, the SBC advocates the adoption of a continuously updated list of international companies that should enjoy the privilege of special consideration. Adoption of their special test reports, for instance, would eliminate the need to verify each individual shipment.
As it stands, implementation of the program has seen a fall in imports in Syria, as evidenced by a fall in import activity in traffic through customs on Syrian borders. The SBC said dialogue and raising awareness of the program’s benefits to consumers and businesses was crucial in its effective implantation.
