JORDAN

Based on information collected up to June 2000

1    TARIFF MEASURE
Structure of the tariff schedule
Jordan applies a nine-digit tariff nomenclature according to the Harmonized Commodity Description and Coding System (HS 96) as of 1 March 1997.
Tariff publications
Current information on customs-related matters is available from the Customs Department, P.O. Box 90, Amman.
 
12 Tariff rates have been reduced to six tariff bands on 1 March 1997 (0, 5, 10, 20, 30 and 40%).  Necessary primary materials like medicaments and industrial machinery like mining equipment and knitting machines pay zero tariff.  Primary materials for industrial use including chemicals and raw materials are subject to rates of 5% or 10%.  A 30% rate is set on intermediate goods such as cloth, wood and spare parts.  Manufactured products similar to locally manufactured products like detergents, cement and electric equipment pay 40%.  In September 1999, the 40% tariff band was reduced to 35%.  The maximum tariff is scheduled to be reduced to 30% before the end of 2000 except for manufactured tobacco substitutes (70% to 100%), and alcoholic beverages (50% and 180%).  Combined (ad valorem and specific) duty rates are charged on bananas, grapes, apples, calves, sheep and goats.
13 The proposed bound rates at the date of accession to the WTO Agreement are generally higher than the applied tariff rates.  Tariff reductions will be implemented according to the dates indicated in the "interim" of "implementation" column and in accordance to the attached Staging Annex (1 March 2000 - 1 March 2010).
16 Customs Law No. 20 of 1998 cancelled all import duty exemptions for government-owned firms and government institutions except grants and donations.  Import duty exemptions for production and operation purposes expire automatically on the date stipulated in the concessions and agreements granted to the following companies at the time of their establishment:
 -  Jordan Phosphate Mines Co. Ltd
 -  Jordan Petroleum Refinery Company
 -  Jordan Cement Factories Company
 -  Arab Bridge Maritime Company
 -  Arab Potash Company
 -  Jordan Electric Company
 -  Irbid Governorate Electric
 -  Vegetable Oil Industries Co. Ltd
 -  Arab Factory for Manufacturing White Cement
 -  Jordan Tanning Company

Certain products are excluded from import duty exemptions like cars and spare parts, tyres, petroleum products, vans and busses and their spare parts, stationery, computer devices, air-conditioners, hand tools, consumption materials, goods and materials used for housing employees, and products similar to Jordanian products. 

Owners of old cars used in public transport are eligible for duty-free importation of new cars provided the old car is surrendered to the State or retires from service. 

Under Law No. (20) of 1998, the following articles are exempted from customs duties and other fees and taxes: 
 -  supplies, fuels, lubricating oils and spare parts needed by ships and air crafts 
 -  calenders designated for advertising
 -  all educational and medical materials, supporting aids, instruments, machinery 
    and their parts, in addition to means of transportation required for schools,
    establishments, and programmes belonging to handicapped and production 
    projects, means of transportation designated for the use of handicapped
 -  ammunition, weapons, equipment, clothes, vehicles and their spare parts
    imported by the armed forces

19.1 On 19 February 1997, the Economic Council of the Arab League decided to establish an Arab free-trade area over a period of ten years starting from 1 January 1998.  During the ten-year period, member countries ought to reduce their respective tariffs by one-tenth every year.  As from 1 January 2007, the free-trade area was scheduled to be fully operational.  Jordan signed the Arab Free Trade Area Agreement (AFTA) on 1 January 1998, activated March 1998, and implemented the first round of tariff cuts on that date, but on a reciprocal basis, i.e. tariff reductions are only effective for other Arab League members implementing the same reductions.  Algeria, Comoros, Djibouti and Mauritania did not join the agreement.  Lebanon, Libya, Palestine, Somalia, Sudan and Yemen did not start the implementation. 

On 24 November 1997, Jordan and the European Union signed a trade agreement which is part of a strategy to establish an Euro-Mediterranean free-trade area by 2010.

19.3 A trade agreement between Jordan and Tunisia provides for duty-free access to each other's imports on the basis of jointly agreed lists (which may be replaced by other products) subject to quota allocation. 

The objective of the agreement between Jordan and Egypt is to establish a free-trade area by the year 2005.  Starting on 1 January 1997, customs duties and other equivalent taxes will be reduced by 10% annually on all tariff lines except for 48 products comprising 1,450 six-digit tariff lines which are temporarily excluded from the agreement.  A number of fruits and vegetables are subject to specific seasonal restrictions. 

The bilateral agreement between Jordan and Qatar exempts agricultural and natural resources originating in both countries.  In addition, the agreement stipulates that the Joint Committee shall agree on two lists of industrial products to be exempted from customs duties. 

The trade agreement between Jordan and Oman provides for free movement for agricultural, livestock and fish products. 

The trade agreement with Kuwait provides for free movement for agricultural and livestock products.  Customs duties and other equivalent taxes have been reduced by 20% annually on a specific list of industrial products.  This list enjoys duty-free entry now. 

A full free-trade area has been created between Jordan and Bahrain. 

The trade agreement between Jordan and Saudi Arabia provides for duty free treatment for some 166 products and a 66% duty exemption for about 37 products. 

Jordan and Libya grant duty-free entry for all products originating in both countries. 

The trade agreement between Jordan and Sudan provides for customs duty exemptions for agricultural, livestock and industrial products. 

The trade agreement between Jordan and Syria provides for customs duty exemption for agricultural, natural resources and industrial products. 

Jordan grants duty-free access for two lists with a total of 60 products originating in the Palestinian Territories.  It covers mainly processed industrial supplies, parts and accessories for capital goods, consumer semi-durables and food for household consumption. 

The trade agreement between Jordan and Israel provides for a 100% tariff duty reduction, a 50% tariff duty reduction and a 30% tariff duty reduction applied to a list of specified items.

2     PARA-TARIFF MEASURES

Additional charges

 
22.8 Veterinary charges are levied in accordance with by-law No. 17 of 1987, issued in accordance with the Agricultural Law No. 20 of 1973 and their amendments. 

An import processing fee of 0.2% of the transaction, value minimum JD 10 and maximum JD 250 per transaction, will be charged upon enactment of amendments to the Customs Law. No. 20. 

A transit fee of JD 20 per transaction will be levied upon enactment of amendments to the Customs Law No. 20. 

Consular fees for certifying commercial bills are levied in accordance with by-law No. 1 of 1989.  A flat rate of JD 21 per transaction applies from the date of Jordan's accession to the WTO.  The protocol of accession was open for signature by Jordan until 31 March 2000.  The practice of requiring such certificates will be eliminated by 31 December 2002. 

Audio-visual materials are subject to fees charged for the purpose of censorship to protect public morals in conformity with the Law No. 52 of 1951. 

The Jordan Export Development Corporation charges the following as service for executing trade agreements with Lebanon, Libya, Morocco, and Saudi Arabia: 
 -  1% on certain imports from Lebanon and Morocco 
 -  1% on all imports from Libya 
 -  0.25% on certain imports from Saudi Arabia

Internal taxes and charges levied on imports
 
23.1 The Sales Tax Law No. 6 of 1994 and amendment No. 15 of 1995 have recently been amended in July 1999 to raise the tax from 10% to 13% based on the duty-inclusive customs value.  A higher rate of 20% is levied on 30 items including films and movie equipment, dishwashers, microwave ovens, electric chandeliers, air conditioning units, cosmetics, tiles, marble products, video cameras, satellite transmission and reception systems, arms and ammunition, processed caviar and shrimps, tobacco, musical instruments, voice and image recorders.  A large variety of goods is exempted from GST.

An additional sales tax with rates ranging from 39% to 141% applies to motor vehicles, and snow or golf vehicles. 

Excise duties have been replaced by specific sales taxes charged on cement, construction and reinforcement iron, lubricants and lubrication material, natural and mineral water, carbonated water and beverages, beer, alcohol, wine, liquors, tobacco and tobacco products.


 5     AUTOMATIC LICENSING MEASURES

        Automatic license
  

51 Automatic licensing is required for goods subject to the provisions of trade protocols (currently applied to Syria for a specific list of items), dairy products, fresh fruits and vegetables imported from countries with which Jordan has trade agreements, and for certain goods like cereals, sugar and salt, biscuits, tomato paste, mineral water, cigarettes, new electric equipment, transmission and reception apparatus, and remote control equipment.


 6      QUANTITY CONTROL MEASURES

Licensing under the authority of
Ministry of Industry and Trade
P.O. Box 2019
Amman
Non-automatic licensing
 
61.1 Product-specific licensing requirements and import licences maintained for statistical purposes and to administer the tariff exemptions provided under the respective agreements are scheduled to be replaced with an automatic and non-automatic import licensing regime in accordance with the WTO Agreement on Import Licensing Procedures.
61.43 In the year 1999, Jordan imported petroleum and petroleum products from Iraq against exports of medicaments and foodstuff under barter trade arrangements.
61.7 Prior approvals granted automatically or issued under specific conditions by certain government institutions are considered one of the measures in force prior to accession to the WTO.
61.9 Non-automatic licenses are issued for the protection of health, safety, environment, national security, public order and moral, and the conservation of natural resources.  Used goods (tyres, electric equipment and photocopiers more than three years old)  as well as milk for industrial use require a licence from the Ministry of Industry and Trade.  Imports of live animals, frozen animal semen, meat, fertilizers, insecticides, fungicides and similar products, veterinary medicines, seeds and fruits used for sowing require a licence from the Ministry of Agriculture.  The Ministry of Interior issues import licenses for arms and ammunition, explosives, pen knives, toys like automobiles operated with fuel, remote control and toy aeroplanes, electronic video game machines, self-defense electrical equipment and ammonium nitrates.  Radio-active materials and uranium require a licence from the Ministry of Energy & Mineral Resources.  The Telecommunications Regulatory Commission administers the importation of wireless alarm equipment, radar apparatus, cordless telephones and microphones, electrical equipment for line telephony and telegraphy, decoders, and satellites.  Imports of colour photocopying machines are authorized by the Central Bank of Jordan.  The Ministry of Health issues import licenses for food preparations used by athletes, bromides of potassium, food colourings, sheets and pipes of asbestos, milk and food for children, ice cream and other edible ice.  Postage franking machines require a licence from the Ministry of Post and Communication, frion gas from the Public Corporation for Protection of the Environment, boring machinery from the Ministry of Water & Irrigation, and military clothing from the General Command of the Armed Forces.
  Prohibitions
 
63.4 A temporary suspension of imports of chicken, meat, eggs, milk, dairy products, and foodstuff based on these products originating in Belgium is effective as of 8 June 1999.
63.7 Passenger cars using other than benzene as fuel, and plastic waste are banned imports.


 7.      MONOPOLISTIC MEASURES

 Single channel for imports
 
71.1 In conformity with Prime Minister Instruction of 10 September 1991, Jordan Cement Factories have the exclusive right to import cement and its by-products.  This concession will expire in 2002.

The Jordan Tanning Company Co. Ltd. (JTCL) has the exclusive right to import raw hides and skins under Law No. 9 of 1962.  The concession will expire in 2002. 

Jordan Phosphate Mines Co. Ltd. (JPMC)  has the exclusive right to import explosive materials used for mining and quarrying purposes.  The exclusive right is indefinite according to Prime Minister Instructions of 1979. 

Concession Law No. 19 of 1958 was issued to approve the concession agreement signed between the Jordanian Government and the Jordan Petroleum Refinery Co. granting the company the exclusive right to import oil and hydrocarbon necessary to the local market.  The concession will expire in 2008. 

The Ministry of Industry and Trade has the exclusive right to import wheat bran for animal feed.  There is no time-limit on such right according to a decision of Ministry of Industry and Trade.


 8.     TECHNICAL MEASURES

Technical regulations
Standards are formulated and enforced by the
Jordan Institution for Standards and Metrology (JISM)
P.O. Box 941287,  Amman 11194
 
81.1 Imported goods are required to meet national or internationally recognized standards (when these are available) and technical regulations applied to protect the health and ensure the safety of consumers.  The current list of goods subject to mandatory standards comprises some 1,110 items since the enactment of Law No. 15 of 1994.  Mandatory standards are scheduled to be replaced by voluntary standards or by technical regulations consistent with the provisions of WTO TBT Agreement. 

Jordan has no standards for medicines or medical equipment.  Importers of such goods are required to provide documentation indicating circulation of the imported medical equipment in the country of origin. 

Medicine containing materials of human origin require certification from the health authority that each donor be tested free of HIV, HBsAg and Hbc. 

Imported medicines must be registered with the Ministry of Health. 

In conformity with decision No. I/BZ, fertilizers should be registered with the Ministry of Agriculture. 

Under Agricultural Law No. 20 for 1973 and other relevant instructions issued by the Ministries of Agriculture and Health, sanitary and phytosanitary regulations are maintained to ensure that imported plants, plant parts and by-products, animals and animal by-products, agricultural chemicals, fertilizers, and veterinary medicines do not endanger human, animal or plant health and life, or the environment.  A health certificate is required for each shipment to satisfy Jordan's sanitary and phytosanitary requirements. 

The importation of milk, dairy products and milk-based foodstuff from BSE-contaminated countries is authorized, if supported by a certificate from the competent authority and a certificate from the producer, attesting that the product is dioxin-free. 

Refrigeration requirements apply to imported meat to protect consumers against deceptive practices in the absence of legislation on consumer protection. 

In conformity with the 1998 Customs Law (Art. 24-27), a certificate of origin issued by an authorized body in the exporting country is required for imported goods from all countries.  The authorized body should be acknowledged by the World Customs Organization.

81.3 Remaining shelf-life requirements based on Jordan Standards 288/1994 (Shelf-Life for Foodstuff) and 401/1997 (Shelf-Life for Infant and Children's Foodstuff)  are scheduled to be replaced by regulations and procedures in line with international norms for highly perishable refrigerated food products by 31 December 2000. 

Specific statements are required on labels for certain products including ready-made clothing, shoes and cosmetics.

81.5 Imported goods subject to mandatory standards require verification through laboratory testing in Jordan. 

Foodstuff and agricultural products are subject to inspection by officials from the Ministry of Health and the Ministry of Agriculture, respectively.