Syrian Law Journal

Legal Briefing – November 2017

by · 05/01/2018

Reconstruction

  • Syrian Prime Minister Imad Khamis welcomed Omani investors to Damascus and praised their planned participation in the oil, mineral resources and tourism sectors. The Omani side was briefed on new legislation passed in Syria to support foreign investment in the reconstruction phase. Oman has already agreed to help train Syrians as part of the economic cooperation between the two countries. Both countries are moving forward with the Syrian-Omani company that will operate in the oil and gas sector. The Omani Products Exhibition (OPEX) 2018 will be held in Syria. It is important not to underestimate the role that Oman will play in the reconstruction of Syria as Syria has maintained good relations with Oman throughout the conflict.
  • Belarus affirmed its support for Syria during the reconstruction phase. The list of countries doing the same include Russia, China, Iran, India, Lebanon, Iraq, Oman, Brazil, Armenia and others. Investors from all these countries and more are looking at Syria with increased interest.
  • As the conflict in Syria starts to wane, a delegation of European businessmen visited Damascus to assess the possibilities for the reconstruction phase.
  • The Jordanian Minister of Industry, Trade and Supply reportedly signed an agreement with a leading American company and a number of international firms to build an airport and a major logistics centre to facilitate the reconstruction programs for both Syria and Iraq.

Property

  • The Property Destruction Law 39/2017 exempts owners of real estate properties damaged by terrorist attacks during the current conflict from the need to pay building permit fees to carry out the required renovation works. Owners must apply to their local authority to obtain this exemption and begin renovating within the year.

Finance

  • The national budget for 2018 was approved by the People’s Assembly after it was submitted to it by the Council of Ministers. It was subsequently ratified by President Bashar Al-Assad. While it was still in draft form, the budget was referred to the Budget and Accounts Committee in the People’s Assembly for review and deliberation on each item.
  • On November 19th, the Central Bank issued Resolution 2426/2017 to regulate the declaration of foreign currencies and Syrian Pounds entering and exiting Syria. Travelers entering and exiting Syria are not required to declare certain monetary amounts to the relevant authorities. With respect to travelers carrying foreign currencies and departing Syria from the land border crossings to Lebanon, Jordan or Iraq, they do not have to declare any amount equivalent to less than $1,000 (US). With respect to travelers carrying foreign currencies and departing Syria to any other country, they do not have to declare any amount equivalent to less than $3,000. With respect to Syrians and residents of Syria carrying Syrian Pounds and departing Syria from the land border crossings to Lebanon, Jordan or Iraq, they do not have to declare any amount less than SYP 10,000. Syrians and residents of Syria carrying Syrian Pounds and departing Syria to any other country do not have to declare any amount less than SYP 10,000. As for travelers carrying foreign currencies and entering Syria from the land border crossings from Lebanon, Jordan or Iraq, they do not have to declare any amount equivalent to less than $5,000. With respect to travelers carrying foreign currencies and entering Syria from any other country, they do not have to declare any amount equivalent to less than $5,000. With respect to Syrians and residents of Syria carrying Syrian Pounds and entering Syria from the land border crossings from Lebanon, Jordan or Iraq, they do not have to declare any amount less than SYP 500,000. As for Syrians and residents of Syria carrying Syrian Pounds and entering Syria from any other country, they do not have to declare any amount less than SYP 500,000.
  • As the value of the Syrian Pound appreciated significantly against the US Dollar, the Council of Ministers affirmed that the Central Bank will be focusing on the issuance of certificates of deposit, encouraging interest rates and supporting exports. Support for exporters comes in light of a decline in the US Dollar exchange rate in relation to the Syrian Pound, which makes exports more expensive for overseas buyers. Certificates of deposits are to be denominated in Syrian Pounds and will offer favourable interest rates. The reasons behind the appreciation of the Syrian Pound include military advances by the Syrian Arab Army and the reclaiming of oil and gas fields, remittances from Syrians living abroad to their families in Syria, the flow of assets by investors who returned to Syria, an increase in exports and so forth.
  • Plans are underway to include provisions for micro-insurance products such as insurance for mobile telephone devices in the new Insurance Bill. The monthly premiums could be as low as SYP 500.

Taxation

  • Damascus MP Khalil Tohmeh called on the Ministry of Finance to collect revenues from war profiteers to plug a budget deficit instead of imposing new taxes.
  • Nabil Saleh MP criticized a proposal by the Ministry of Finance to double the reconstruction tax from five percent to 10 percent and labeled it a penalty on Syrians with limited incomes. He also lamented the policies of the Ministry of Finance, which appear focused on taxation as a means to boost government revenues.
  • The Governorate of Damascus raised local taxes in the province by up to 10%.
  • The government plans to compensate automobile owners whose vehicles were completely damaged by terrorist attacks by exempting them from customs duties. Cars that were partially damaged will not benefit from this exemption.
  • A Ministry of Finance regulation is set to impose a seizure of assets and travel bans on any persons who fail to fulfill and pay their tax obligations to the General Commission on Taxes and Fees. The movable and immovable properties of defaulting taxpayers who fail to pay their tax dues will be sold in public auctions.

Commerce

  • The Minister of Internal Trade and Consumer Protection issued Resolution 2650/2017 ratifying the Articles of Association of Syria’s first ever offshore company – Global Trading Company Offshore LLC – which will pursue activities outside of Syria.
  • In light of reconstruction priorities, the Ministry of Internal Trade and Consumer Protection adopted a number of policies such as the establishment of a legal regime for offshore companies, serviced flexible offices for companies to register their addresses and the speedy issuance of corporate documents. Speedy incorporation and the registration of companies in the Commercial Registry were facilitated whereby certificates of incorporation are issued within two hours. Another incentive includes establishing an office at the Ministry of Internal Trade and Consumer Protection for providing headquarters to companies that do not have any, which would help startup companies or ones whose headquarters have been damaged or lost in the conflict.
  • The Minister of Internal Trade and Consumer Protection issued regulations limiting the profits of importers, producers, wholesalers and retailers to fixed rates. Accordingly, the percentages of profits are set at a maximum rate of 10% for wholesalers and 15% for retailers.
  • The government plans to develop a national exports strategy to promote and sell Syrian products to markets in Russia, Africa and the Eurasian Economic Union. The Minister of Economy and Foreign Trade stated that Syrian exports currently reach 90 countries.

Transport

  • The Supreme Investment Council licensed the Syria Motors Company project so that it benefits from tax exemptions, employment facilities and other benefits.

Telecommunications

  • The Minister of Information stated that private companies will be licensed to provide Apple TV to viewers in Syria.

Education

  • Amendments to the Universities Law 6/2006 are expected soon. The Council of Ministers discussed a bill amending some provisions of the Universities Law with respect to establishing mechanisms concerning the recruitment and promotion of staff to ensure the quality of the processes.

Employment

  • Law 36/2017 provides for the transfer of the Public Sector Employees Registry to the Ministry of Administrative Development from the Ministry of Social Affairs and Labour. The number of Syrian public sector employees is estimated at around 2.2 million individuals.
  • The People’s Assembly deliberated on a bill that amends the fees and fines mentioned in the provisions of Legislative Decree 65/2013, which regulates the recruitment of foreign domestic workers.

Health

  • The People’s Assembly deliberated on a new bill regulating the veterinarian profession and agreed on a number of provisions concerning the branches of the relevant syndicate, its council and work mechanisms.

Postal Services

  • The new Postal Law 38/2017 was issued, which regulates the postal sector.

Constitutional Affairs

  • Ahmad Kuzbari MP, who chairs the Legislative and Constitutional Affairs Committee in the People’s Assembly, explained that any constitutional amendments must follow the procedures laid down in the current Constitution of 2012. Kuzbari recapped that new constitutions are generally adopted by two methods: popular referendum or by a constituent assembly. In a popular referendum, a draft constitution is presented to the people and they vote on it – this is how the current Constitution was adopted in 2012. In a constituent assembly, the people elect an assembly to draft the constitution and once they issue it, the constitution becomes binding. The assembly can then convert itself into a parliament with legislative authority – this is what happened in Syria with the Constitution of 1950.

Lawyers

  • More lawyers are returning to work in the profession as courts resume functions with every region that comes back under government control. Some lawyers over the recent years have taken up work in other sectors just to make ends meet as practising the law on its own became difficult.

Judiciary

  • The Minister of Justice is to push for speedy litigation to serve the interests of citizens. The Minister wants judges to ensure that lawsuit proceedings are no longer prolonged in the courts.
  • The Minister of Justice vented frustration with respect to some Court of Cassation judges who are not adhering to their work schedules. There was concern that some of these judges are too busy talking about favoritism at the expense of adjudicating on cases. The Minister acknowledged instances when judges have fallen behind on legislative developments and not based their decisions on actual law. Some judgments in the Court of Cassation have been leaked even before they were properly signed off on by the respective court.
  • The Minister of Justice intends to initiate a process whereby judges are carefully selected based on their experience and specialization as these factors will be given priority. The measures are part of the package of judicial reforms.

Immigration

  • The President of the Bar Association has brought to the attention of the People’s Assembly the dangers of foreign countries naturalizing Syrian refugees. The fear is that many skilled Syrians will not return to Syria to participate in the reconstruction phase if they are naturalized abroad.

Military

  • Law 35/2017 amends Articles 74 and 97 of the Military Service Law concerning the position of deserters. Any person who exceeds the age for mandatory military service and did not fulfill it shall pay a fee of $8,000 (US) within three months of reaching the prescribed age. Failure to pay the $8,000 deserter fee in full may result in imprisonment for a period of one year and a seizure of assets. There will be a $200 penalty for each year of delay starting with the date the deadline is missed but the amount shall not exceed $2,000.
  • The Council of Ministers discussed a bill amending Article 4 of Law 8/2008 concerning doctors serving in the rural areas. Accordingly, doctors, dentists and pharmacists are to be exempted from rural service if they complete two years in military service serving within their specialization.

Family Law

  • A Sharia judge confirmed that the wife of a missing husband can apply to the courts to manage his estate and become the legal guardian of their children.
  • According to a Sharia judge, any person missing for a period of four years throughout the conflict can be declared legally dead by the courts according to Article 205 of the Personal Status Law.

Criminal Law

  • The Ministry of Justice intends to refer a proposal to amend Article 15 of the Economic Criminal Code to the Council of Ministers to close a loophole in the law concerning bribery. According to Article 15, if anyone involved in an act of bribery informs the competent authorities of the act before the matter is referred to the courts, that person shall not be punished. The proposal seeks to amend this provision to prevent abuse.

International

  • Following a meeting in the Russian city of Sochi between President Bashar Al-Assad and his Russian counterpart, President Vladimir Putin informed US President Donald Trump that President Al-Assad supported political reforms in Syria, which would include constitutional amendments and presidential and parliamentary elections as part of a transitional political process.
  • The United Nations had hopes that the Syrian peace talks in Geneva would attempt to formulate a political process that focuses on plans for elections and the drafting of a new constitution.
  • Lebanon appointed an ambassador to Syria for the first time in years as it slowly abandons its disassociation policy in light of the shifting dynamics in the country.
  • Turkish President Recep Tayeb Erdogan said he is prepared to talk to President Bashar Al-Assad for the first time in six years. However, there is an ongoing court case in Damascus directed at Turkey concerning the looting of factories in Aleppo. Syria is expected to demand compensation.
  • Canadian Environment Minister Catherine McKenna initially saluted Syria for agreeing to sign up to the Paris Agreement on Climate Change, leaving the US as the only non-signatory. It was the first time that Canada praised Syria on a policy since the conflict erupted in 2011.
  • A House of Lords parliamentary delegation from the United Kingdom accompanied by representatives of the Anglican Church in England visited Syria and met with Hammoudeh Sabbagh, the Speaker of the People’s Assembly.
  • French and Belgian authorities conducted a raid against the offices of Lafarge Holcim and its shareholder Groupe Bruxelles Lambert as part of an investigation into payments allegedly made to ISIS in Syria in order to maintain operations at their cement factory in the country.