Syrian Law Journal

Legal Briefing – July to August 2016

by · 30/08/2016

Government

  • President Bashar Al-Assad issued Decree 203/2016 forming the new Syrian government headed by Prime Minister Imad Khamis. Adib Mayaleh was transferred from his post as Central Bank Governor to replace Humam Al-Jazairi as Minister of Economy and Foreign Trade. Maamoun Hamdan leaves his post as the Director-General of the Damascus Securities Exchange to replace Ismail Ismail as Minister of Finance. New ministers were also appointed to head up the Ministries of Internal Trade and Consumer Protection, Local Administration, Petroleum and Mineral Resources, Electricity, Industry, Water Resources, Communications and Technology, Information, and Culture. The rest of the ministries remained under the same ministers who served in Wael Halqi’s government.
  • President Bashar Al-Assad appointed Muhammad Amouri as the new Secretary-General of the Council of Ministers in place of Taysir Zoubi. Amouri previously headed up the Central Financial Supervisory Agency.
  • President Bashar Al-Assad issued Decree 204/2016 appointing Imad Sabouni as the new chief of the State Planning Commission.
  • MPs from the European Parliament visited Syria in early July and met with President Bashar Al-Assad to discuss the situation in the country.

Parliament

  • Syrian expatriates are seeking representation in the People’s Assembly through the formation of a committee where they can play a role in reconciliations, dialogue, offering their expertise, investing in reconstruction and so forth.

Finance

  • The new Minister of Finance is seeking to spearhead tax reform through new legislation to replace the complex web of laws currently in place. According to the Minister, there will be no new taxes for the time being.
  • In accordance with the Monetary Law 23/2002, President Bashar Al-Assad issued Decree 205/2016 appointing Doureid Dergham as the new Governor of the Central Bank in place of Adib Mayaleh who became Minister of Economy and Trade. Dergham previously headed up the state-owned Commercial Bank.
  • The Central Bank has ordered foreign exchange companies to sell foreign currencies to customers for non-commercial purposes while importers and traders must purchase their shares from licensed banks. The Central Bank is compelling banks to sell foreign exchange to importers.

Insurance

  • The newly-appointed Syrian Insurance Supervisory Commission is seeking to hold to account certain insurance companies that violate the law.

Companies

  • Shareholders of Bank Audi Syria held an extraordinary general assembly meeting to amend its trade name in accordance with its articles of association. Bank Audi Syria sought to secure all the necessary legal approvals before moving forward with the change of its trade name.
  • More companies could be listed on the Damascus Securities Exchange, including SyriaTel, MTN Syria, telecommunications companies, private universities and so forth.
  • New plans to encourage family businesses to go public on the Damascus Securities Exchange are back in the headlines as a 2007 law that aimed to do just that could be revitalized.
  • The Syrian Commission on Financial Markets and Securities is seeking to revise corporate governance structures in companies in order to enhance disclosure and transparency levels.
  • 676 companies were incorporated in Syria in the first six months of this year.

Commerce

  • The Council of Ministers has approved new procedures for granting import licenses with an emphasis on essential products, and the needs of the agricultural and industrial sectors. The criteria set by the government for imports now include basic goods and food, agricultural and industrial imports, and no more luxury items. The new trade policy comes as the Import Deposit Rules for ‘Category B’ imports, which were set at 25%, were revoked.
  • The Council of Ministers has granted the General Foreign Trade Organization wider jurisdiction and authorities to import goods into Syria.
  • Merchants were having reservations about the Import Guidelines issued by the Ministry of Economy and Foreign Trade back in June and their potential link to smuggling, inflation and favoritism.
  • The Syrian Exporters Union has confirmed that Syrian goods are being imported into Iran subject to the four percent custom duty stipulated for in the Syrian-Iranian Free Trade Agreement.
  • The Competition Protection and Anti-Monopoly Commission (CPAMC) is sending out its inspectors to monitor abuses in the markets to ensure merchants are complying with the Competition Law.
  • Legislative Decree 19/2016 provides for the CPAMC to be affiliated to the Ministry of Internal Trade and Consumer Protection.

Investment

  • The Damascus Chamber of Commerce calls for amendments to the Investment Law to make it fit for purpose under the current circumstances just as the latest draft of the Investment Bill enters its final stage of scrutiny.
  • According to the Minister of Public Works, the funds of Syrians whether based inside or outside of Syria shall have the priority of investment during the reconstruction phase.

Public Procurement

  • According to an economics professor, the Public-Private Partnership (PPP) Law does not provide clear grounds to ensure effective governmental oversight over the PPP process in Syria.
  • The government has amended a circular dating back to 2014 that relates to the execution of priority projects in Syria under the current circumstances.

Transport

  • The Civil Aviation Authority has denied that any new law has been passed with regards to the liberalization of the air transport sector in Syria.
  • The Council of Ministers is reviewing a plan by the Ministry of Transport to restructure the air transport sector and also to give the national carrier Syrian Arab Airlines more authority.

Telecommunications

  • Law 20/2016 exempts owners of illegally-imported cellular phones from fines and legal liability if they declare them to the Customs Directorate and pay the required fees.

Employment

  • Employers are seeking reform of the Employment Law to address the legal difficulties they face when their employees are forced to resign for war-related purposes.
  • Law 14/2016 revokes the decision that terminates the employment of public sector employees if they enlist for mandatory military service.

Judiciary

  • Law 15/2016 extends the provisions of Legislative Decree 28/2013 for a fourth year upon the expiration of the recent extension provided for in Legislative Decree 24/2015. Legislative Decree 28/2013 permits the Supreme Judicial Council to transfer lawsuit proceedings from one court to another in exceptional circumstances after a formal request has been made by the Minister of Justice. The Law was originally passed to ease the transfer of cases from conflict to safe areas and to extend the time period for processing claims that were lost, burnt or destroyed during the war.
  • MPs in the People’s Assembly have been asking the Minister of Justice about the fate of the latest Judiciary Bill after so long.
  • According to the Minister of Justice, the coming months will witness the activation of the program to automate the judicial and administrative work throughout the Syrian provinces.

Miscellaneous

  • Legislative Decree 15/2016 grants an amnesty to those persons who turn themselves in and lay down their weapons, and also to kidnappers who set their hostages free.
  • An economics researcher has found that laws governing the industrial sector in Syria are in need of reform since they encourage corruption.
  • The Ministry of Justice has released a draft law on the management of orphanages in Syria for review.