A Drain on Hard Currency
The phantom-importer scheme has emerged as one of the most pressing challenges to Syria's commercial markets, draining foreign currency reserves and adding pressure to the Syrian pound (SYP) against the US dollar (USD). The practice is described as a major channel for tax evasion that distorts import flows and inflates consumer prices.
Two Syrian economists explained that the mechanism relies on small registered traders or shell companies acting as front operators for larger importers, then closing their commercial registries before any audit can trace the money.
How the Scheme Works
Importers using the phantom model submit understated invoices to reduce customs duties and taxes, then move the difference out of the formal financial system. The result is a steady leak of dollars that the central bank cannot reach, and higher retail prices because the savings are pocketed rather than passed to consumers.
The two analysts said the phenomenon weakens fair competition in the market and erodes public revenue at a time when the state is trying to stabilize the currency.
The Finance Ministry Responds
Finance Minister Mohammed Yasser Bernieh, in coordination with the General Authority for Border Crossings and Customs, issued two decrees on 24 March 2026 requiring importers to pay a 2% tax advance on each invoice and to obtain a tax-clearance certificate before importing. A grace period was attached to ease the transition for compliant traders.
Economist Ibrahim Nafe Qoushji described the advance as a useful tool to narrow the space for evasion by linking taxation directly to each import operation, but said it would only succeed if paired with electronic invoicing, tighter follow-up audits, and an integrated system connecting customs, taxes, and banks.
Limits of the New Tool
Economist Mohammed Kousa called the 2% advance "correct in principle" but warned that the real challenge is balancing anti-evasion measures with continued trade flow. He urged the ministry to classify importers by their compliance record, granting trusted firms simplified clearance while subjecting high-risk operators to stricter financial guarantees.
Kousa added that auditing invoices and money transfers after goods enter the market is more effective than holding shipments at the border, pointing to international practice of digitizing customs systems and connecting them electronically with banks and tax authorities.
What Comes Next
Both analysts agreed that lasting progress requires linking customs, the tax administration, and the banking system into a single electronic platform, alongside priority clearance for staple foods and raw materials. Without that integration, they warned, phantom-importer activity will continue to weigh on the Syrian pound and push prices higher across local markets.