Customs Penalties in Syria

August 2000

Customs authorities in Syria may impose fines on shipowners for excess or shortage of cargo landed. However, such shortage or excess may exist on paper only. The calculation of any shortage or excess of cargo discharged is based on the difference between the declaration of the manifested cargo according to the bill of lading and the cargo which is actually delivered. In fact, an excess delivered under one bill of lading may compensate for a shortage under another but this is not taken into consideration.

The customs authorities will request the court to impose a fine based on two or three times the value of the cargo plus dues. The customs authorities value the cargo according to weight and custom clearance value. The dues are calculated according to an existing tariff which varies according to the type of cargo. Fines against foreign companies are to be settled in foreign currency calculated according to the official rate of exchange which has an inflationary effect on the original amount of the fine.

However the shipowner may be able to defeat the fine by producing to the court conclusive evidence to show that the excess or shortage of cargo exists on paper only. In this regard it is very important to ensure that the bill of lading contains a reservation clause as to the weight of the cargo and the number of packages.

The shipowner will need to present to the court a sworn translation of the bill of lading containing the reservation clause. The shipowner must also request the court to appoint a court surveyor to verify the port discharge records in order to prove that the whole consignment was delivered once any excess of cargo has been offset against any shortage. In addition, in appropriate cases, the shipowner should consider an application to the court to appoint an expert to confirm the proportion of bulk allowance and the effect on the cargo of climatic changes during the voyage.

Case law in Syria shows that producing such appropriate evidence may assist shipowners in persuading the court to repudiate the fine.