RAQQA, Syria (North Press) – Rising construction and living costs are forcing residents of northern Syria to abandon plans and adapt to soaring prices, a situation largely linked to the diverging customs policies of the Syrian transitional government and the Autonomous Administration of North and East Syria (AANES).
Imad Abdullah, 32, halted finishing work on his new apartment on the outskirts of Raqqa city after material and labor costs surged to unprecedented levels. Abdullah, displaced from his hometown of Tel Abyad during the Turkish military operation in 2019, had bought a small flat in the al-Qitar Street neighborhood in northern Raqqa, hoping to escape rental burdens after losing hope of returning home. However, soaring prices have left him unable to complete the finishing work.
The impact of rising costs extends beyond construction materials to most basic goods, a situation closely linked to the diverging customs policies between the Syrian transitional government and the AANES.
Two customs systems, one economy
Experts note that customs duties are a key pillar of any national economy. In Syria, however, there is a wide gap in customs policies between the AANES and the Syrian transitional government.
Updated data from the General Customs Coordinator of the Syrian government (dated Sep. 1, 2025) shows duties imposed on 15 key goods, including medicines, food items such as sugar, tea, vegetables, and infant formula, as well as construction materials such as iron, cement, and PVC.
The data reveals significant differences between the duties imposed by the Syrian government and those applied by the AANES at the Semalka border crossing, its only external trade route connecting with the Kurdistan region of Iraq.
For example, in the pharmaceutical sector, the transitional government imposes duties of $5,013 per ton on human vaccines, $500 per ton on insulin-based medicines for diabetes, $3,007 on corticosteroids, and $500 on antibiotics and vitamins. These figures directly impact local market prices, reducing consumer purchasing power and slowing trade activity.
AANES customs policies
In contrast, the AANES follows a different customs approach. On Dec. 18, 2024, it issued Circular No. 32, abolishing customs duties on goods moving between its territories and other parts of Syria, citing the decision as an effort to promote “national unity” and adapt to changing conditions.
Currently, the AANES operates only one external border, Semalka, while its crossings with government-held areas serve solely as monitoring points, according to the AANES Public Finance Board.
Data obtained by North Press from the Finance Board indicates that the AANES’s customs revenues fell sharply by about 46.4 percent in the first nine months of 2025 compared to the same period of 2024. From January to the end of September 2025, customs revenues totaled $59,209,093, compared to $110,473,568 during the same period in 2024.
At Semalka, the AANES follows an exemption-based system. According to both the General Customs Coordinator and the Finance Board, all pharmaceutical products and infant formula are exempt from customs duties after coordination with the Health Board, as stipulated by the AANES Customs Law. Certain medications are listed with duty rates for anti-smuggling purposes only, but medicines are effectively fully exempt under the law.
Marked differences in duties
Data obtained by North Press from both the transitional government and the AANES shows clear disparities in import duties on essential goods. For instance sunflower oil is taxed at $300 per ton in Damascus vs. $20 under the AANES, tea at $300 vs. $3.16, ghee at $300 vs. $21.2, rice at $27 vs. $12.48, and vegetables (tomatoes, potatoes, eggplants) at $53 vs. $10.72. However, some items face higher AANES tariffs, such as bananas ($53 per ton vs. $25.92) and apples ($100 vs. $9.6). For construction materials, duties under the AANES stand at $33.4 per ton for PVC, $7 for iron, and $4.02 for cement.
Before the fall of the al-Assad regime, the AANES levied duties on goods transiting from its territories into government-held areas, but these were abolished after the regime’s collapse under Circular No. 32.
The reality on the ground
Despite legal provisions, the situation remains complex. Traders interviewed by North Press in AANES-run areas say most merchants are unfamiliar with the exact customs rates and rely on customs brokers at Semalka or government crossings, which adds extra costs for consumers.
One anonymous trader explained that although the AANES officially abolished duties on goods entering government areas, payments are still collected under the label of “violations of regulations.” For example, $100 is imposed on H100 trucks, $200 on ‘Inter’ trucks, and $400 on link trailers. Although these fees are lower than official customs rates, they are still mandatory.
The effects of these policies are directly felt in daily life. Many residents, like Imad Abdullah, struggle to meet living costs or complete their homes.
While customs policies may differ between the Syrian transitional government and the AANES, the outcome is similar: rising prices and increasing hardship for citizens trying to secure basic necessities in a deeply divided economy.