‘There is nothing we can’t sell’: smugglers siphon off scarce Lebanese goods to Syria


Aya Iskandarani
  • English
  • Arabic

Once night falls on the village of Al Qasr in north-east Lebanon, smugglers lay makeshift steel bridges across the small stream separating it from Homs province in Syria and take across everything from flour to aspirin and fuel in lorries and four-wheel drives.

“There is nothing we cannot sell to Syrians. They are starved of everything,” says Ahmed, 25, one of hundreds of Lebanese living on the border who make a living ferrying goods into Syria.

Ahmed supports his three children by carrying flour and fuel into Syria every week in his pickup truck.

"At one crossing in Al Qasr the smuggler chief can carry up to 100 tonnes of flour and a thousand gas containers per night," he told The National by phone from his village near Al Qasr deep in the Hermel district.

People queue to buy bread in the city of Aleppo in Syria, where a shortage of basic goods has created demand for products smuggled from Lebanon. Anadolu Agency via Getty Images
People queue to buy bread in the city of Aleppo in Syria, where a shortage of basic goods has created demand for products smuggled from Lebanon. Anadolu Agency via Getty Images

Before Syria's civil war began in 2011, cheap Syrian clothing, fuel and produce were smuggled from Syria into Lebanon. Now, fuel, flour and other subsidised goods flow the other way from areas controlled by Hezbollah, the Lebanese party and militia that is allied to the Syrian regime.

But Lebanon itself is struggling to subsidise basic goods in the face of the country's worst economic crisis, the coronavirus pandemic and a plunge in the value of the local currency.

Ordinary Lebanese say the increased smuggling into Syria is depleting scarce foreign currency reserves and creating shortages and the hoarding of subsidised products in Lebanon.

Demand for smuggled fuel in Syria increased after a container ship ran aground in the Suez canal on March 23 and blocked the channel for nearly a week. Last week the Syrian government began rationing fuel, limiting sales to taxis in Damascus to just 20 litres every four days.

Milad Matar, 62, who operates a small generator business in the Lebanese Christian border town of Al Qaa, said shortages spurred by smuggling and the depreciating local currency had forced him to to pay more for fuel on the black market.

“Instead of making a 1,000 Lebanese pound profit on each gallon by selling fuel oil to Lebanese, smugglers can make a 5,000 pound profit if they sell it in Syria,” he said.

“So of course when Lebanese citizens go to the gas station they find there is no more fuel.”

A photo provided by the Lebanese aarmy shows a tank used by fuel smugglers on the Lebanon-Syria border. Courtesy Lebanese Armed Forces
A photo provided by the Lebanese aarmy shows a tank used by fuel smugglers on the Lebanon-Syria border. Courtesy Lebanese Armed Forces

One tonne of high-quality Lebanese flour costs about 1.5 million pounds in Lebanon but can be sold on the other side of the border for more than 2 million pounds.

Lebanese villagers living along the border constitute a large part of the smuggling trade but say the large-scale movement of contraband is the preserve of well-connected and politically backed clans.

“I have to beg the chief smuggler to get a few tonnes of flour across to Syria,” Ahmed said. “It’s humiliating, but the crossing is his territory.”

The Hezbollah-controlled Baalbek-Hermel region where Ahmed lives is home to ancient ruins, rich agricultural lands and trout fisheries, but is most widely known for its lawlessness. Powerful clans backed by Hezbollah and its Shiite ally, the Amal Movement, whose green flags fly on houses, streets and bridges in the Bekaa Valley, have long engaged in criminal activity. Their record ranges from car theft and personal vendettas to the production and traffic of narcotics — and of course, smuggling.

Damascus considers Lebanon an extension of its territory and has consistently refused to demarcate the borders that bound its smaller neighbour to the north and east, stretching along 369 kilometres of dry and mostly mountainous terrain.

As a result, contraband has for decades sustained the economy of the Baalbek-Hermel district. It has also provided the Syrian regime, propped up by Hezbollah fighters and foreign governments since the early years of the war, with precious supplies at a time when international sanctions, war and economic strife have limited imports.

A Syrian businessman, who spoke on condition of anonymity, explained that a collapse of the Syrian pound over the past year, which intensified last month, and severe shortages of basic goods have raised demand for subsidised products from Lebanon.

These goods can be sold at higher prices in regime-held areas, where people queue for hours for a bag of subsidised bread or a container of fuel.

"Everything from French butter that is subsidised in Lebanon to bread made of smuggled flour has appeared on the shelves," he said.

A customer walks past nearly empty shelves at a supermarket in Beirut amid shortages and high prices created by Lebanon's economic crisis. EPA
A customer walks past nearly empty shelves at a supermarket in Beirut amid shortages and high prices created by Lebanon's economic crisis. EPA

Meanwhile, Lebanon faces price hikes driven by the freefall of its currency, making affordable, subsidised goods all the more coveted.

To counter smuggling and prevent militants from entering, the Lebanese army has deployed 24-hour patrols, aided by radar and watchtowers flanking the Anti-Lebanon mountains that overlook Syria.

After the beginning of the Syrian civil war, militant incursions wreaked havoc along the porous border. ISIS briefly overtook the northern town of Arsal in 2014 and attacked Al Qaa a few years later, forcing the Lebanese army to redouble its presence on the border.

The US and European countries granted the Lebanese army hundreds of millions of dollars in financial and material aid. Despite this, the army remains caught in a game of cat and mouse with local smugglers.

Capt Mohamed Barraj of Lebanon’s land border army division spends his days patrolling the border with his men. They have closed down smuggling routes, confiscated merchandise and even engaged in armed encounters with local clans.

A narrow water channel forms the border with Syria in Lebanon's Baalbek-Hermel region. Aya Iskandarani / The National
A narrow water channel forms the border with Syria in Lebanon's Baalbek-Hermel region. Aya Iskandarani / The National

The National accompanied Capt Barraj on a routine border patrol last month.

“The army is working hard to stop the smuggling,” he said, pointing at a recently closed smuggling route ending metres from a Syrian checkpoint.

As he commanded his soldiers across the border town of Hawch El Sayyed Ali near Al Qasr, a man jumped into a river to evade them while another ran away, leaving behind a bag filled with two dozen cans of beer that the soldiers said was about to be smuggled.

A woman also followed the patrol in a car, speaking into a telephone. Soldiers suspected that she was spying on them for a local clan.

"This is what we deal with every day from the local community," one soldier told The National.

“They even have WhatsApp groups to keep track of the patrols. We have to keep changing our routes to stay one step ahead.”

Solidarity among residents, many of whom belong to local clans involved in organised crime, has impeded the army’s work.

Ali, a 22-year-old clan member in Hermel, said his peers have a deep sense of loyalty to one another.

“Whenever the army catches someone involved in criminal activity, clan members block roads so that they let him go,” Ali said.

He said the crossings are operated by the clans on a rotating basis, with separate families responsible for them at specific times.

Some of the crossings are simply dirt roads leading to Syria, others are the steel bridges laid over streams.

The uniformed Lebanese soldiers patrolling the border in armoured vehicles stand in sharp contrast to their Syrian counterparts.

A Syrian border post seen from the Lebanon side. Aya Iskandarani / The National
A Syrian border post seen from the Lebanon side. Aya Iskandarani / The National

Concrete barracks with scrap metal and rock roofs dot the border on the Syrian side, along with checkpoints manned by dishevelled soldiers, dressed in sneakers and keffiyehs — the traditional headdress of shepherds.

Bashir Matar, the head of Al Qaa municipality, said he does not trust the Syrian army to halt the smuggling.

“Syria benefits from smuggling, but why should Lebanese have to pay so that a well-connected Lebanese-Syrian mafia continues to profit on our backs?” he asked.

A regional security source and a smuggler both told The National that local clans use their connections with Syria's elite Fourth Armoured Division and the regime's Lebanese allies to smuggle large quantities of goods.

“The Fourth Division has a monopoly over bribes and taxes at the borders of region-held areas,” the source said, referring to the elite army division commanded by Maher Al Assad, Syrian President Bashar Al Assad's brother.

"There is a clear policy on the Syrian side: smuggling is allowed because of the economic situation," he said.

"There is even a term for it. Smugglers 'buy the road' for a few hours, or overnight. The arrangement is that the border guards look the other way during that time," he added, noting that Hezbollah controlled the borders on the Lebanese side.

Vehicles queue for fuel in the town of Hama in western Syria. Anadolu Agency via Getty Images
Vehicles queue for fuel in the town of Hama in western Syria. Anadolu Agency via Getty Images

Three Lebanese army sources denied that there was a similar arrangement on their side of the border. The National could not independently verify these claims.

Former Lebanese defence minister Elias Bou Saab said in 2019 that “smuggling up to $2.5 billion does not take place through illegal crossings”, hinting at severe shortcoming on the Lebanese army’s side.

A senior army source who denied the military’s involvement in the smuggling, said the armed forces face an impossible task as long as there is no incentive in Beirut and Damascus to delineate the border.

“Every time the army closes a crossing, smugglers open another one,” he said.

“Even if you put a soldier on every inch of the border, it will never be enough. On the ground, there are no borders.”

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What is the FNC?

The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning. 
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval. 
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
 

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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UAE currency: the story behind the money in your pockets

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Manchester United 1 (Fernandes pen 2') Tottenham Hotspur 6 (Ndombele 4', Son 7' & 37' Kane (30' & pen 79, Aurier 51')

Man of the match Son Heung-min (Tottenham)

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Need to know

The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours. 

The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.

When to go: You can climb Kili at any time of year, but the best months to ascend  are  January-February and September-October.  Also good are July and August, if you’re tolerant of the colder weather that winter brings.

Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.

UAE currency: the story behind the money in your pockets
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December 8: UAE v USA (Sharjah Cricket Stadium)

December 9: USA v Scotland (Sharjah Cricket Stadium)

December 11: UAE v Scotland (Sharjah Cricket Stadium)

December 12: UAE v USA (ICC Academy Oval 1)

December 14: USA v Scotland (ICC Academy Oval 1)

December 15: UAE v Scotland (ICC Academy Oval 1)

All matches start at 10am

 

MATHC INFO

England 19 (Try: Tuilagi; Cons: Farrell; Pens: Ford (4)

New Zealand 7 (Try: Savea; Con: Mo'unga)