Doing Business With Lebanon

Find out why it is easy to do business with Lebanese suppliers

Frequently Asked Questions When Doing Business with Lebanon

When considering sourcing your products or services from Lebanon, you might have several question marks and concerns such as:

  • Will my products arrive on time? What if my shipment never arrived?
  • What if I was not happy with the order and had a conflict with the supplier?
  • Are the products safe? Do they comply with international safety regulations?
  • Do I have to pay custom duty upon arrival of the order?

In this section, we aim to address most of these questions and demonstrate that it is easy and cost-effective to do business with Lebanese companies.

There are four main seaports in Lebanon, with the largest used for trade activities being in Beirut and Tripoli ports. The 2018 UNCTAD Liner Shipping Connectivity Index ranked Beirut 38 out of 171 countries and 6th in the Middle East, outperforming several regional peers.

The Port of Beirut (PoB) is Lebanon’s main port and is located in the center of the capital. It is one of the largest ports on the Eastern Mediterranean with a total area of 1.2 million square meters (sqm), featuring four basins, 16 quays and a new container terminal capable of handling 1.7 million TEU per year. It is operated and managed by the “Gestion et Exploitation du Port de Beyrouth” authority.

Other facilities in the PoB include a logistics free zone established in 2007 (positioning Beirut as a hub for merchandises distribution in the Middle East) and hundreds of warehouses for general cargo. Container terminal operations are subcontracted to the private company Beirut Container Terminal Consortium (BCTC) since 2004. The container terminal is considered among the best performing terminals globally and regionally, and is considerably well connected.

As for the Port of Tripoli, it is the country’s second largest port hosting a 150,000 square meters (sqm) free zone, and 880 sqm duty-free market and several warehouses. The port is currently undergoing major expansion to transform it into a leading container terminal for regional shipping. The PoT is located only 30 km away from the Syrian border with easy and fast accessibility to Gulf markets, as well as competitive tax rates and related tariff facilities through the Tripoli Special Economic Zone.

Moreover, the Port of Tripoli has been recently selected as a main terminal in the Eastern Mediterranean for two of the sea routes of CMA CGM, one of the world’s largest shipping companies, starting in February 2021.

The Beirut Rafic Hariri International Airport (BRHIA) is currently the only operating international commercial airport (for cargo and passengers) in Lebanon. BRHIA serves as the hub for Lebanon’s national carrier, Middle East Airlines (MEA), the local cargo carrier Trans Mediterranean Airways (TMA), as well as Wings of Lebanon, a private Lebanese airline specialized in charter operations. The airport houses 23 gates in total, and 4500 square meters of duty free and retail space, currently welcoming around 8 million passengers a year. By 2030, the airport is estimated to host 20 million passengers.

There are plans to activate the Rene Mouawad Airport to accommodate commercial planes mainly low-cost airlines and general cargo unlocking demand from Lebanon’s northern areas and Syria’s southern areas, increasing the competitiveness of Lebanon’s transport infrastructure and helping businesses conclude trade activities with foreign markets.

Lebanon has three main crossings with Syria, which are the Abboudieh, Arida and Masnaa crossings.

The war in Syria significantly reduced the utilization of land routes, coupled with the closure of borders between Syria and Jordan, which blocked the main route from Lebanon to Gulf countries for several years. As a result, Lebanese exports through land routes have declined from 21.7% of total exports in 2011 to a share of 5.6% in 2020. Most of Lebanese exports by land through Syria take the Masnaa border crossing, representing 83.3% of total exports by land.

While the borders reopened in 2018, land transportation activities remained low as most of the trade through Syria was redirected towards maritime trade in order to hedge against unexpected challenges and potential risks.

Despite the aforementioned challenges, land transportation still accounts for an important share of intra-Arab trade, as exports to Arab countries through the Abboudieh, Arida and Masnaa crossings represented 14% of total exports to Arab economies in 2020.

Several companies provide land transportation through Syria, which is preferred for non-perishable products that are not directly affected by delays. While, some exporters of products that have short shelf life such as fresh fruits and vegetables and food products continue to use land transit, most exporters tend to transport such products by air or sea.

The latest World Bank data from 2020 shows that it takes 96 hours in border compliance to export from Lebanon and costs on average USD 480, while documentary compliance takes 48 hours and costs on average USD 100.

If you are looking for a freight forwarder to support you in shipping your ordered products, you can search the Freightnet Directory which is an online database for logistics companies, freight forwarders, custom brokers and cargo agents in Lebanon who can help with your freight requirements.

Lebanon has stringent and very strict food safety regulations enacted by the Ministry of Agriculture that follow international standards including the CODEX Alimentarius by the World Health Organization and the Food and Agriculture Organization (FAO). You can check the food safety regulations by products that are issued by the Ministry of Agriculture on this link: regulations.agriculture.gov.lb

Lebanon has a solid quality infrastructure with more than 100 accredited laboratories and inspection bodies. Accredited laboratories that test for food and non-food products can be found in the Chambers of Commerce of Tripoli, Saida and Zahle and also there is a central public laboratory that is internationally accredited at the Industrial Research Institute (IRI) which is under the Ministry of Industry that provides all needed certifications and lab analysis. The Lebanese Agriculture Research Institute (LARI) under the Ministry of Agriculture provides lab results and analysis for agriculture products and sometimes for few agri-food processed products.

Multinational inspection bodies such as Bureau Veritas, SGS, Apave, among others are all available in the country and provide valuable services to importers and exporters to support trading activities.

As a first-time importer, you may seek help from sourcing and inspection agencies to make an informed decision, and guarantee your order matches the stated requirements before shipping.

 

Free Trade Agreements (FTAs) are destined to benefit local exporters, importers, producers and investors by reducing and eliminating certain barriers to international trade and enhancing the access of local products to international markets.

While FTAs work both ways, these agreements can have a significant impact on businesses sourcing products from Lebanon. It can make it easier, cheaper and faster for both you and the business you’re buying from.

These benefits could be critical notably if you are a small business as there might be countries you haven’t previously considered due to cost, and where FTAs might make it more cost-effective to do business. With reduced or eliminated duties, your business can take advantage of lower importing costs and therefore price your domestic offerings more competitively (or make a higher margin).

It is hence essential that you get a handle on existing Free Trade Agreement with your country of origin, and those that are in the pipeline.

Lebanon is signatory of several trade agreements that have been signed mainly with Arab countries and the European Union:

  • The Euro-Mediterranean Partnership Initiative (2002): provides Lebanese industrial and most agricultural products which fall within the limits of tariff quotas with free access to EU markets.
  • The Free Trade Agreement with the European Free Trade Association (EFTA) (2004): grants Lebanese industrial exports (including fish and other marine products, as well as processed agricultural products) free access to the selected EU markets (Switzerland, Liechtenstein, Norway, and Iceland).
  • The Greater Arab Free Trade Area (GAFTA) (2005): provides full exemption of tariffs on all agricultural and industrial goods traded between Lebanon and the 17 Arab member countries.
  • Bilateral Free Trade Agreements with Egypt, Iraq, Kuwait, Syria, and the UAE.
  • The Agadir agreement that was signed in 2020 with Jordan, Tunisia, Egypt and Morocco.
  • UK-Lebanon Association Agreement entered into force on January 2021.

To facilitate trading across borders and foster international business, Lebanon has signed tax conventions with 32 countries. These conventions promote the exchange of goods and services, the inflow of capital and technology by avoiding double taxation, on one hand, and the prevention of fiscal evasion through administrative assistance between the contracting parties on the other hand.

For more information on these agreements and conventions, please visit the Ministry of Finance’s website.

Chambers, associations, syndicates, clusters and networking bodies can help you meet your potential supplier/ partner in Lebanon through their matchmaking services. Some are sector-specific and some are region specific and some have a specific focus on women empowerment in business. Depending on your needs and requirements, you can contact them for further support.

Federation of chamber of commerce, Industry and Agriculture (FCCIAL)
Chamber of Commerce, Industry and Agriculture for Beirut and Mount Lebanon (CCIB)
Chamber of Commerce, Industry and Agriculture in Tripoli and North Lebanon
Chamber of Commerce, Industry and Agriculture in Sidon and South Lebanon
Chamber of Commerce, Industry and Agriculture for Bekaa and Zahle region
Association of Lebanese Industrialists (ALI)
Syndicate of Lebanese Food Industrialists (SLFI)
Lebanese League for Women in Business (LLWB)
Lebanese Business Leaders Association
Qoot Agritech Cluster
Lebanon Softshore Cluster
Beirut Creative Cluster
Lebanese IT syndicate
The Syndicate of Computer Sciences in Lebanon

When importing from Lebanon you might need to go through Government ministries to finalize some official papers. We list below the main ministries that you might deal with when importing/sourcing from Lebanon

Ministry of Economy and Trade

Ministry of Industry

Ministry of Agriculture

Ministry of Public Health

Ministry of Public works and Transportation

Lebanese Customs

There are several accelerators and incubators in Lebanon that support startups and innovative SMEs in product and business development. If you want to meet and connect with leading start-ups or innovative SMEs from various industries, you can contact one of the below accelerators or incubators.

When sourcing your products from Lebanon, you might want to take care of all shipping and logistics by yourself. You can contact local freight forwarders and logistics solutions providers through one of the below associations.

We offer you free legal and financial advice to support you when considering importing from Lebanon.