RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/JOR/25
4 October 1999
(99-4099)
Working Party on the
Accession of JordanOriginal:  English
ACCESSION OF JORDAN
Communication from Jordan
Report on the Right to Trade
The Government of the Hashemite Kingdom of Jordan has submitted the following Report on
the Right to Trade of 15 September 1999.
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The following report provides additional inform ation to clarify the right to trade in Jordan.
Sections A and B discuss respectively import for commercial purpose (further distribution and sale
including wholesaling and retail) and non-commercial purpose (own use).
First, Jordan would like to establish clea rly the distinction under Jordanian law between
foreign-owned Jordanian companies and foreign companies.  A company is considered to be
Jordanian, if it is established and registered in Jordan, and has its principal place of operation therein -
regardless of the nationality of the owners.1  The Company law, therefore, does not link company
nationality to foreign equity.  Under the Company Law of Jordan, a Jordanian Company may be
wholly foreign-owned, if this is consistent with the provisions of other sector-specific or horizontal
legislation.
According to Non-Jordanian Investment Promotion Regulation for the Year 1997, foreign
investments in trade and trading services (understood to include distribution services as well as
activities for importing and exporting for commercial purposes) may not exceed 50 per cent.
Therefore, foreign ownership in a Jordanian company with the objective of trade and trade services
can not exceed 50 per cent.  In addition, in order for foreign investors to be engaged in trade and
trading services as a Jordanian company, foreign investors are required to deposit in a Jordanian bankaccount a minimum capital of JD 50,000 in orde r to register such Jordanian company.
Sole proprietorship, having the objectives of engaging in trade and trade services, may only
be owned by Jordanian nationals.
A foreign company, on the other hand, is a company having its principal place of operation
abroad and “registered” in Jordan to operate in Jo rdan, i.e. a branch of a foreign company.  Foreign
companies are of two kinds:
- Temporary Companies registered for the purpose of implementing a specific project/
tender in the Kingdom, and whose registration expires upon end of its activities in
Jordan.
2
                                                     
1 Article 4, Non-Jordanian Investment Promotion Regulation for the Year 1997, Regulation No. 24 for
the Year 1997, as Published in the Official Gazette Issue No. 4226, 1997.
2 Article 240, Companies Law for the Year 1997, Law No. 22 for the Year 1997, as Published in the
Official Gazette Issue No. 4204, page 2038, 1997.WT/ACC/JOR/25
Page 2
- Permanent Companies registered to carry out  regular business in Jordan indefinitely.3
However, this form of company is not automatically registered, but rather is subject
to an economic needs test.
A foreign company can be engaged in trade and trade services if specified in its objective
during registration in Jordan.  In addition, it is not subject to the minimum capital requirements of JD
50,000.
Jordan’s requirements on the right to trade do not in any way contradict Articles III, XI, and
VIII of the GATT 1994.  However, natural and legal persons are restricted, as described below, in
their ability to import for commercial purposes.
A Trade for Commercial Purpose
The following can import and export for commercial purpose if "engaging in trade activities"
is specified in their objectives at the time of registration:
- Fully domestically-owned Jordanian companies
- Sole proprietorship
- Jordanian companies with 50 per cent or less foreign equity
- Foreign companies registered in Jordan  (i.e. branches)
Jordanian natural persons do not have the right to import or export for commercial purposes.
In order to do so, they may register as a Jordanian company or a sole proprietorship.
Foreign natural persons do not have the right to import or export for commercial purposes.  In
order to do so, they may register as a Jordanian company taking into account restrictions discussedabove (50 per cent maximum foreign ownership and minimum capital of JD 50,000) or as a foreign
company (i.e. branch).  Foreign natural persons may not establish in Jordan sole proprietorship for
engaging in trade for commercial purpose.
The Import and Export Regulations No. 74 of 1993 stipulates that for any firms to engage in
importing and exporting for commercial purposes, they must hold an import card, issued by the
Ministry of Industry and Trade, which may be obtained subject to the following conditions:
- Being a registered Jordanian or foreign company, or a commercial establishment
(sole proprietorship), whose objectives include carrying out trading activities.
- Holding a municipal professional license. The requirements for obtaining a municipal
license do not pertain to nationality of the entity or of its owner. Rather, it includesrequirements, such as, deed of ownership or lease contract of the place of business,
certificate of membership in the chambers of commerce.
Firms eligible to import for commercial purposes may also import without the import card.  In
such case, a 5 per cent penalty of the value of the imported goods is imposed. This penalty is intendedto deter persons from importing without the import card.
The objectives of requiring import card are the following:- Identifying who has the right to import for commercial purposes.
- Allowing entities not having the objective of conducting trading activities to import
for their own purpose through a special import card.
                                                     
3 Id.WT/ACC/JOR/25
Page 3
- Administrative purposes, such as statistical and municipal purposes.
In addition, please note the following additional points:- Foreigners in Jordan may engage in trade through commercial presence, either by
establishing a branch of a foreign company, or through establishing a Jordanian
company according to the restrictions me ntioned above. Foreign companies, i.e.
branches, are not subject to the foreign equity ceiling. Foreign investors are subject to
the foreign equity ceiling provided for in  the Non–Jordanian Investment Promotion
Regulation if they choose to establish a Jordanian company. Moreover, there are no
differences between the right to trade of foreign companies and those of Jordanian
companies once established in Jordan.
- Membership in the Chamber of Commerce is a requirement for obtaining the
professional license which, in turn, is a requirement for obtaining the import card.
Membership in the Chamber of Commerce, access to professional license to import,
and access to import card are not related to the equity ownership of a firm.
- In order to engage in import and export for commercial purposes, a company
(Jordanian or Foreign) must include this as an objective for registration purposes. The
company’s objectives may be amended to include imports and exports, through a very
simple process. Requests for amendments are approved upon receipt by theController of Companies if the applicant is found to be eligible. Here again it is
noteworthy emphasizing that the only legal authority pertaining to nationality is the
Non-Jordanian Investment Promotion Regulation.
B. Trade for non-Commercial purpose
The following have the right to import and export for non-commercial purposes (their own
use):
- Jordanian companies (regardless of level of foreign equity)
- Foreign companies registered in Jordan (i.e. branches of foreign companies)
- Foreign natural persons
- National natural persons
Jordanian and foreign companies whose stated objective does not include "engaging in trade
activities" may import for their own use.   Such imports however are limited to items which are
relevant to the realization of the stated objectives of such entities. Such firms may not import for otherpurposes.  A special import card is required in order to avoid the 5 per cent penalty applied on the
value of imported goods. The special import card may be obtained by such entities without difference
as to nationality. The requirements for the special import card does not necessarily require
membership in the Chamber of Commerce. The main difference is that the special import card states
the objectives of which the firm may import in accordance thereto.
Firms eligible to import for commercial purpos es and have the import card may import for
non-commercial purposes without the ne ed to obtain a special import card.WT/ACC/JOR/25
Page 4
Both foreign and national natural persons equally have the right under Jordanian Law to
import for non-commercial purpose.4 Such importation however, is subject to the 5 per cent penalty
since natural persons do not have the right to apply for special import card.
A foreign natural person may register as a sole proprietorship and import for non-commercial
purpose.  In such case, a special import card may be obtained in order to avoid paying the 5 per cent
penalty.
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4 Article 7, Import and Export Regulation for the Year 1993, Regulation No. 74 for the Year 1993, as
Published in the Official Gazette page 2496, 1993.