1 signed distribution agreement (Levant Animal Health = Al Haytham — same Syrian LLC trading under two names). Score 52/D. Operative until 1 April 2027. OFAC GL 24 authorizes veterinary exports post-Assad transition, but Syria Commercial Agencies Law 12/2010 imposes mandatory termination indemnity for registered distributors. Sanctions exit + Arabic translation needed before next renewal.
Country profile
Syria — regulatory context
Status
Post-Assad transition (late 2024). White House EO 2025/06 revoked some Syria sanctions. Court system reorganizing — enforcement chaotic. Damascus-based Directorate of Veterinary Medicine operates loosely under WHO/ICH standards.
Vet drug authority
Directorate of Veterinary Medicine (Ministry of Agriculture). 6-12 month approval. No centralized online portal.
Sanctions overlay (as of May 2026)
OFAC General License 24 authorizes medicine + veterinary agricultural exports without specific license, provided counterparties are not SDN-listed.
EU Regulation 2024/3197 allows vet med exports with end-use certificates.
Screen counterparties + UBOs against CAPTAGON-network and ex-regime designations.
Use USD via non-Syrian banks; GL 24 citation in shipment manifest.
Commercial agency law
Commercial Agencies Law No. 12/2010 (still applicable post-transition). Registered exclusive distributors with Ministry of Industry; 5-year minimum contracts; mandatory indemnity on termination. Local Syrian partner required for imports.
Multi-distributor permissibility
NO / CONDITIONAL Commercial Agencies Law 12/2010 mandates registered exclusive distributors per product line; a second registered distributor for the same product would trigger indemnity exposure under the 5-year minimum regime. Workaround: appoint as non-registered, own-account distributor — but enforceability of exclusivity becomes uncertain post-transition.
Voidance risks
Language law: Arabic mandatory for state-court enforcement; foreign-language contracts require certified Arabic translation.
Commercial registry filing: Mandatory Ministry of Industry registration for exclusive agency to be enforceable.
FX controls: Central Bank of Syria 180-day repatriation undertaking via CBS-approved banks; non-compliance voids payment terms.
Mandatory local content: Local Syrian partner required for imports — foreign principal cannot register directly.
Sanctions overlay: Post-Assad transition leaves enforcement chaotic; even valid contracts face de facto enforcement delays.
Formalities: Syria NOT a Hague Apostille member — consular legalization typically required.
FX rules
Central Bank of Syria controls; 180-day repatriation undertaking. Hawala common but high-risk. Pre-shipment USD cash payment via non-Syrian banks (Levant contract uses this).
NY Convention
Syria acceded 1959 (verify current status post-transition). Practical enforcement currently chaotic; Syrian Article 5/1967 may impose public-policy escape.
JAPFA recommendation
Treat as HIGH-RISK alongside Iran/Yemen — not a routine distribution territory. Per-shipment OFAC + EU end-user certificate + GL 24 citation on invoice. Repatriation bond. Sanctions exit clause + Arabic translation hook needed BEFORE next renewal in April 2027.
Signed contracts in this country
LEVANT ANIMAL HEALTH / AL HAYTHAM — SAME ENTITY
Counterparty (per recital)
AL HAYTHAM FOR TRADE LIMITED LIABILITY COMPANY (LEVANT ANIMAL HEALTH) — single Syrian LLC trading under two names
Registered office
Damascus, Masaken Barzah, HamishAutostrade, facing Qasioun Mall, Real Estate No 4/27, Barzeh, Phase 9
Counterparty signatory
Dr. Mona Abd Al Malek (General Manager) — signature + Levant Animal Health corporate seal; date field BLANK on both sides
Effective
1 April 2024
Term end
1 April 2027 (~11 months remaining)
Score / grade
52 / 100D
Exclusivity
CONTRADICTORY Art. 2.1 says "non exclusive" AND "exclusively in the Territory" in the same sentence; Art. 5 (heading "Non-Exclusivity") imposes one-way restrictions on Distributor only
Delivery
CIF Beirut International Airport (Lebanon) — not Damascus; adds Lebanese transit/customs touchpoint
Currency
USD pre-payment in cash, 7 days from pro-forma invoice, BEFORE shipment (Art. 9.1) — strongest payment structure in portfolio
Governing law / forum
Indonesia (Art. 34.1) / HYBRID BANI / SIAC defect (Art. 34.2) — same defect as MENA Agrovet, Pakistan UMEX, Egypt 5Stars
Sibling file
"Signed Distribution Agreement AL HAYTHAM - Syria.pdf" — verified by OCR as the same legal entity, same text, same signatures (not a separate counterparty as filename suggests)
HYBRID/PATHOLOGICAL Art. 34.2 dispute clause — "BANI OR SIAC Rules" cannot be compelled. NY Convention Art. V(1)(d) refusal risk on enforcement.
Syria Law 12/2010 termination compensation overhang — mandatory indemnity for registered distributors + 5-year minimum contract regime (this is a 3-year contract).
1-month liability cap (Art. 21.4) — far below benchmark 12 months; about USD 20K-25K based on Schedule A monthly run-rate.
Authorized Products (current LOA)
LOA covers 17 Vaksimune SKUs; valid until 1 April 2027 (mirrors agreement term). Signed by Dr. Teguh Y. Prajitno only — counterparty has not countersigned. Schedule A of the signed agreement covers a subset (12 of 17 SKUs with explicit minimums); remaining 5 SKUs authorized in LOA only.
#
Product
Pack
Y1 vol
Y2 vol
Y3 vol
In Schedule A?
1
Vaksimune NDLS
1000 ds
20,000
22,000
24,200
YES
2
Vaksimune NDLS IB
1000 ds
10,000
11,000
12,100
YES
3
Vaksimune ND Clone
1000 ds
20,000
22,000
24,200
YES
4
Vaksimune ND Clone IB
1000 ds
10,000
11,000
12,100
YES
5
Vaksimune IBD L
1000 ds
5,000
5,500
6,050
YES
6
Vaksimune IBD D
1000 ds
5,000
5,500
6,050
YES
7
Vaksimune IBD M+
-
-
-
-
LOA only
8
Vaksimune IB NV1
1000 ds
see SKU
see SKU
see SKU
YES
9
Vaksimune IB QX
1000 ds
see SKU
see SKU
see SKU
YES
10
Vaksimune Pox
1000 ds
2,000
2,200
2,420
YES
11
Vaksimune ILT
1000 ds
2,000
2,200
2,420
YES
12
Vaksimune ND Inaktif
-
-
-
-
LOA only
13
Vaksimune NDL Multi Inaktif
1000 ds
1,000
1,100
1,210
YES
14
Vaksimune NDL Multi IBPlus EDS
-
-
-
-
LOA only
15
Vaksimune NDL Inaktif 0.1
-
-
-
-
LOA only
16
Vaksimune IBH Duo
-
-
-
-
LOA only
17
Vaksimune NDL Multi IBPlus
1000 ds
1,000
1,100
1,210
YES
Schedule A 3-year totals: Year-1 ~USD 235K · Year-2 ~USD 259K · Year-3 ~USD 285K. 10% annual upward revision. CIF USD per 1000 doses: IB NV1/QX $3.70 · IBD D/L $2.30 · IBH Duo $26.00 · ILT $3.50 · ND Clone $1.20 · ND Clone IB $2.20 · NDL Multi Inaktif $12.00 · ND LS $0.80 · ND LS IB $1.60 · NDL Multi IBPlus $27.00 · Pox $3.50.
Country watch items
Sanctions exit clause missing — tier-1 sanctions country
Severity: HIGH.
Despite OFAC GL 24 authorizing veterinary exports post-Assad transition, contract has no sanctions screening, no sanctions exit clause, no warranty on counterparty UBO. If a Levant officer or UBO is later SDN-designated, JAPFA has no contractual exit.
Action: side-letter pre-renewal to add (i) sanctions screening obligation, (ii) immediate termination right on SDN trigger, (iii) UBO warranty.
Arabic translation hook missing — state-court enforcement gap
Severity: HIGH.
If a SIAC award is later enforced in Syrian courts, Arabic translation will be required (Syrian state-court practice). Contract is English-only with no translation provision.
Action: add Arabic-translation-on-request clause before renewal.
Syria Law 12/2010 indemnity overhang
Severity: MEDIUM-HIGH on non-renewal.
Commercial Agencies Law 12/2010 imposes mandatory termination indemnity for registered distributors, 5-year minimum term. Levant contract is 3 years. If Levant is registered with Ministry of Industry, non-renewal in April 2027 triggers indemnity exposure. Verify registration status.
Suggested actions ranked by urgency
Day 0-60 — pre-renewal side-letter
Add sanctions exit clause + UBO warranty (OFAC GL 24 reliance is conditional on counterparty not being SDN).
Add Arabic-translation-on-request clause for Syrian state-court enforcement.
Verify Levant's Ministry of Industry commercial-agency registration status (affects termination indemnity exposure).
Restructure exclusivity (Art. 2.1 self-contradicts; Art. 5 one-sided): clarify whether non-exclusive or exclusive; add JAPFA carve-out for additional distributors.
Lift liability cap from 1 month to 12 months (Art. 21.4).
Tighten Force Majeure (Art. 28) — remove "labor disputes" and "raw material shortage".
Add reciprocal indemnity (Art. 21.1 currently distributor-only against JAPFA).
Tighten adverse-event reporting from 10 days to 24h serious / 5d non-serious.
Pre-1-April-2027 renewal decision
Decide: renew under improved terms OR non-renew + plan for Law 12/2010 indemnity exposure.
If renewing: extend to 5-year minimum (Law 12/2010 expectation).
If non-renewing: document breach record + negotiate indemnity buy-out; coordinate MA transfer-back from Levant within 6 months (Syrian DOAH realistic timeline).