RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/JOR/33
WT/MIN(99)/9
3 December 1999
(99-5235)
Working Party on the
Accession of Jordan
REPORT OF THE WORKING PARTY ON
 THE ACCESSION OF THE HASHEMITE KINGDOM OF JORDAN TO THE
WORLD TRADE ORGANIZATION
Introduction
1. The Government of the Hashemite Kingdom of Jordan applied for accession to the General
Agreement on Tariffs and Trade (GATT 1947) in January 1994 (document L/7378).  At its meetingon 25 January 1994, the GATT 1947 Council of Representatives established a Working Party to
examine the application of the Government of Jordan to accede to the General Agreement under
Article XXXIII of the General Agreement.  Following the conclusion of the Uruguay Round, Jordan
requested accession to the World Trade Organization (WTO) under Article XII of the Marrakesh
Agreement establishing the World Trade Organization.  In accordance with the decision adopted bythe WTO General Council on 31 January 1995, the existing GATT 1947 Accession Working Party
was transformed into a WTO Accession Working Party.  The terms of reference and the membership
of the Working Party are reproduced in document WT/ACC/JOR/5/Rev.3.
2. The Working Party met on 28 October 1996; 4 July 1997;  22 July 1998;  22 October and
24 November 1999 under the Chairmanship of H.E. Mr. K. Kesavapany (Singapore).
Documentation provided
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the
Foreign Trade Regime of Jordan, the questions submitted by Members on the foreign trade regime of
Jordan, together with the replies thereto, and other information provided by the authorities of Jordan
(L/7533, WT/ACC/JOR/2, WT/ACC/JOR/3 and Add.1, WT/ACC/JOR/8 and Add.1,
WT/ACC/JOR/9, WT/ACC/JOR/13, WT/ACC/JOR/14, WT/ACC/JOR/18, WT/ACC/JOR/22,
WT/ACC/JOR/23, WT/ACC/JOR/24, WT/ACC/J OR/25, WT/ACC/JOR/26, WT/ACC/JOR/27,
WT/ACC/JOR/28, WT/ACC/JOR/30 and WT/ACC/JOR/32), including the legislative texts and other
documentation listed in Annex I.
Introductory statements
4. In his introductory statement in 1996, the representative of Jordan said that Jordan was
approaching the next century in an environment radi cally different from that of its early decades of
development.  In the 1970s and 1980s, Jordan had invested heavily in developing its human resources,
relying on high levels of external financing and remittances of Jordanians working abroad.  Jordan's
inability to meet its external obligations had led to an economic stabilization programme being
introduced at the end of the 1980s.  The stabilization policies had been successful, even with the
return of more than 400,000 expatriate workers.  The Government had pursued an ambitious reformagenda, including fiscal and trade reform, since the early 1990s to stabilize the economy, improve
efficiency and broaden the role of the private sector.  The current account deficit had declined sharply
reflecting solid export growth, improved earnings from tourism and increased worker remittances.
Jordan's medium-term reform programme aimed at su staining annual growth of real GDP at minimum
6 per cent and export growth of around 10 per cent, rates of inflation in line with those ofWT/ACC/JOR/33
WT/MIN(99)/9
Page 2
industrialized countries, current account deficits below 3 per cent of GDP and accumulation of foreign
exchange reserves.
5. Economic reform was geared towards liberalization and dismantling of all barriers to trade,
investment, labour, capital, payments and services.  The Government had drafted a customs law basedon international best practice.  Actions to improve customs clearance included streamlining of the
temporary entry and duty drawback regime, a "green channel" for easy clearance of imports and
computerization, upgrading and training of customs staff.  The Government had also taken initiatives
to review and revise the main economic laws governing economic activity, and had established a
Privatization Unit at the Prime Ministry to coordinate various privatization initiatives and ensure
transparency of the process.  Domestic reforms were consistent with the direction of multilateral
reform, but Jordan had not waited for world-wide liberalization to take decisions deemed in its ownbest interest.
6. A strong multilateral trading system was vital to  Jordan, and Jordan was preparing to link its
economy with the global economy.  Jordan's economic cooperation and trade relations with the world
community were characterized by a sincere commitment to obligations towards its partners.  Some
WTO obligations would entail constraints on policies and regulations affecting certain sensitiveindustries.  Jordan was ready to negotiate a fair deal that would accommodate the interests of all
parties concerned within the spirit of WTO multilateral agreements, and hoped for a successful
accession which would take into account Jordan's situation as a developing country with a small
economy.  Accession to the WTO would give Jordan the chance to work along with member countries
to strengthen the multilateral trading system to the advantage of all members.
7. In their opening remarks, members of the Working Party welcomed the request from Jordan
to accede to the WTO.  Jordan's accession would reinforce the universality of the WTO.  Jordan was
commended for its efforts to overcome economic difficulties, and accession to the WTO was expected
to assist in consolidating the reforms.  Member s looked forward to close co-operation with Jordan
with a view to concluding the accession process su ccessfully as quickly as possible.  Noting Jordan's
wish to avail itself of certain transitional arrangements, some members supported this request while
other members stated that such requests would be given sympathetic consideration and decided case-
by-case on the basis of substantiated needs.
8. The Working Party reviewed the economic policies and foreign trade regime of Jordan and
the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by members of
the Working Party on the various aspects of Jordan's foreign trade regime, and on the terms and
conditions of Jordan's accession to the WTO are summarized below in paragraphs 9 to 247.
ECONOMIC POLICIES
Monetary and fiscal policy
9. The representative of Jordan said that current economic policies aimed at fiscal and monetary
stability.  The public budget deficit had been reduced through subsidy cuts, expenditure restraint and
increasing revenue.  Food subsidies had been reduced, the domestic price for petroleum derivativesincreased, and a programme to improve the performance of loss-making public enterprises such as
Royal Jordanian Airlines, Public Transportation Corporation and the Agricultural Marketing
Organization had been implemented.  Draft legislation had been submitted to the Council of Ministers
to remove all privileges enjoyed by the Housing Bank, consistent with maintaining its obligations to
low-income housing.  The Housing Bank had become a commercial bank and no longer enjoyed anyprivileges.  Food subsidies had been eliminated recently, and Royal Jordanian Airlines and Public
Transport Corporation were undergoing privatization.WT/ACC/JOR/33
WT/MIN(99)/9
Page 3
10. On the revenue side, an expanded tax base was accompanied by more efficient tax collection,
including the introduction of a general sales tax (GST), replacing the former consumption tax.  The
system of income tax implemented through the Income Tax Law (No. 14 of 1995) taxed profits or
gains earned or accrued in Jordan on the basis of annual self-assessment.  Tax rates ranged from 5 to30 per cent for individuals and 15 to 35 per cent for companies.  Exempted from income tax were
non-profit welfare, cultural, educational, sports or health institutions and cooperative societies;  land
invested in agriculture or poultry, cattle, fish or bee breeding;  capital gains earned on equipment,
apparatus, land, real estate, bonds and shares;  salaries paid to non-Jordanian diplomatic envoys;
salaries and wages of non-Jordanians paid by branches of foreign companies;  salaries and wages paid
by non-operating foreign companies registered in Jordan according to the Companies Law;  interest
due on deposits of national and foreign persons and companies;  income accrued from patents,copyrights or rewards;  income specified in agreements on the prevention of double taxation;  and
income explicitly exempted by the Investment Promotion Law (No. 16 of 1995) and by means of
bilateral or multilateral agreements.  The tax exemptions applied equally to foreign enterprises.
11. Monetary policy aimed at monetary stability to ensure price stability and adequate financing
of economic activity.  The objective was achieved by controlling the money supply while reducingmonetary control restrictions;  consolidation of foreign currency reserves;  continued liberalization of
interest rates;  the establishment of a deposit insurance corporation;  and Central Bank supervision of
all financial institutions.
Foreign exchange and payments
12. The representative of Jordan said that the national currency - the Jordan dinar (JD, equal to
1,000 fils) - had been pegged to the US dollar at the official buying and selling rates of JD 0.708 and
0.710, respectively, since 23 October 1995.  Jordan had formally accepted the obligations of
Article VIII, sections 2, 3 and 4 of the Articles of Agreement of the International Monetary Fund as
from 20 February 1995.  Thus, foreign exchange payments for current account transactions were not
restricted in Jordan.  Concerning capital transactio ns, the representative of Jordan said that inward
transfers of capital were not restricted, but outward transfers were subject to approval by the Central
Bank of Jordan (CBJ).  Transactions pertaining to  foreign investment had been completely liberalized.
The CBJ allowed capital transfers to Arab countries on a reciprocal basis.  Residents were allowed to
carry or transfer up to JD 35,000 in foreign exchange to meet current payments for invisibles such as
travel, education, medication, pilgrimage, residence abroad and family assistance without prior
approval from the Central Bank.  Applications for amounts in excess of JD 35,000 would be
considered positively in the light of the applican t's needs.  As of 1997, outward transfers were fully
liberalized.
13. Licensed banks could purchase any amount of foreign currency against Jordan dinars from
their customers on a forward deal basis, and could sell foreign currencies forward to customers paying
for imports into Jordan.
14. Forward contracts in major currencies against the Jordan dinar were permitted for specified
commercial transactions, including commodity impor ts, provided the authorized banks covered such
operations abroad.  Each dealer's forward transactions were subject to quantitative limits, but the CBJ
could offer a forward exchange facility in respect of forward exchange cover provided by Jordanian
banks for corporations and projects of vital national interest.  Foreign exchange regulations had been
modified to permit banks to execute asset-swap ope rations from foreign currencies into Jordanian
dinars for all customers.
15. Exchange permits were required for goods subject to import licensing, and were granted
automatically once the import licence had been obta ined.  Exchange permits were issued by the
Foreign Exchange Control Department of the Central Bank of Jordan against a fee of 0.1 per cent toWT/ACC/JOR/33
WT/MIN(99)/9
Page 4
recover related administrative costs.  Although exchange permits were no longer required, banks still
collected the 0.1 per cent fee on some categories of transfers for payment to the Central Bank.  The
fee was being revised to narrow the categories of transfers subject to it with a view to its eventual
elimination.  The fee was not applied to transfers issued for government departments, non-residentaccounts in foreign currency, and certain approved institutions and individual transfers of less than
JD 300.
16. He confirmed that private sector firms could borrow abroad freely and that no government
approval was necessary.  Export proceeds were not subject to any repatriation requirements.  There
were no taxes or subsidies on purchases and sales of foreign exchange;  the fees and charges for such
transactions were determined freely in the market.
Investment regime
17. The representative of  Jordan said that th e Investment Promotion Law No. 16 of 1995 had
superseded the Encouragement of Investment Law No. (11) for 1987 and the Arab and Foreign
Investment Law No. (27) for 1992.  A Higher Council of Investment Promotion had been formed
under the Chairmanship of the Prime Minister, and an "Investment Promotion Corporation" was
entrusted with the implementation of the law, incl uding acting as inquiry point regarding information
on investment.
18. Business enterprises were incorporated in Jordan either as General Partnership and Limited
Partnership Companies, Limited Liability Companies, Limited Partnership in Shares or Public
Shareholding Companies.  Applications for registration were submitted to the Controller of
Companies at the Ministry of Industry and Trade.  For general and limited partnership companies, theapplication should be accompanied by the original partnership agreement and a statement signed by
each of them;  for limited liability companies the company's Memorandum and Articles of
Association, on the approved forms for this purpos e, should be included.  The statement should be
signed before the Controller or any person authorized by him, a Notary Public or a licensed lawyer.
An application for registration as a public shareholding company was accompanied by the company'sArticles of Association, the Memorandum of Association, the names of the promoters of the company
and the names of the promoters' commitment conducting the formation procedures.  The Articles of
Association and the Memorandum of Association were signed before the Controller or any person
authorized by him, a Notary Public or a licensed lawyer.  Foreign investors registered their companies
as Jordanian companies with the Companies' Registrar at the Ministry of Industry and Trade.  A
branch of a foreign company would need to submit to the Controller of Companies a copy of its
Articles of Association and Memorandum of Associ ation, as well as written documentation certifying
that the company had been approved by the concer ned authority in Jordan for operating in Jordan.
The representative of Jordan provided detailed information on the fees levied in connection with
registration of companies in document WT/ACC/JOR/30.
19. Tax incentives were provided by virtue of the Investment Promotion Law for any project
related to industry, agriculture, maritime transport and railways, hospitals and hotels.  The Council of
Ministers could add any other sector in accordance with the Kingdom's needs.  In January 1997, the
Council of Ministers had added leisure and recreational compounds, and convention and exhibition
centres to the list of projects benefiting from tax incentives provided under the Investment Promotion
Law.  All imported fixed assets needed for the establishment of a project were exempted from import
duties, sales tax and other import fees and charges (with the exemption of municipal taxes) providedthese assets were imported into the Kingdom within three years from the date of the Investment
Promotion Committee's decision approving their importation.  The Committee could extend this
period if considered justified due to the nature of the project or the size of the work required.
Imported spare parts for a project were exempt from import duties, sales tax and other import fees and
charges (with the exception of municipal taxes) provided the value of such parts would not exceedWT/ACC/JOR/33
WT/MIN(99)/9
Page 5
15 per cent of the value of the fixed assets for which they were required, and provided that these parts
would be imported into the Kingdom or used in the project within 10 years of the date of
commencement of production or the work.  Fixed assets required for the expansion, development or
modernization of a project were exempt from import duties, sales tax and other import fees andcharges (with the exception of municipal taxes), if  they would lead to an increase in production
capacity for the project of not less than 25 per cent.   The exemptions would also cover any increase in
the value of the fixed assets resulting from price increases, freight charges or changes in exchange
rates.  Hotels and hospitals enjoyed further exemptions from fees and taxes on purchases of furniture
and supplies for renewal or renovation once every seven years.
20. Reductions in income and social services taxes to the level of 25, 50 or 75 per cent were
granted depending on the nature of the activity and the location of the project.  The reduction couldamount to 100 per cent in certain areas approved by  the Council of Ministers.  The exemptions from
income and social services tax were applicable for 10 years, starting from the date of commencement
of works (services projects) or production (manuf acturing projects).  An additional exemption, not
exceeding four years, could be granted if the project was expanded, developed or modernized with a
resulting increase in production capacity (one year for each increase of not less than 25 per cent).
21. The Investment Promotion Law did not differentiate between domestic and non-Jordanian
investors, and no preferences were linked to export performance or domestic content requirements.
Article 24 of the Investment Promotion Law stipulated that non-Jordanian investors investing in any
project governed by the Law should be afforded th e same treatment as Jordanian investors.  The Law
guaranteed foreign investors the transfer of profit s and repatriation of the foreign capital invested.
According to the Investment Regula tion No. 39 for 1997, issued in accordance with Article 24 of the
Investment Promotion Law No. 16 of 1995, non-Jordanian ownership could not exceed 50 per cent in
any project or economic activity in the sectors of construction, trading and trade services (excluding
the right to import and export as outlined in paragraph 50 below), and mining.  Except for these three
sectors, a foreign investor could own 100 per cent of the equity in a Jordanian entity.  The InvestmentPromotion Corporation was preparing legislation to define clearly the scope of trade services covered
by the foreign equity restrictions.  Non-Jordania n investment in securities listed on the Amman
Financial Market was subject to a provision (Article 6) that payment be made from the sale of
convertible foreign currency.  The amount of non-Jordanian investment in any project should be
minimum JD 50,000, except in public shareholding companies (JD 1,000).
State ownership and privatization
22. The representative of Jordan said that Jordan's economic strategy called for a much larger role
of the private sector in the economy.  The Govern ment aimed at reducing its own involvement in the
production and distribution of goods and services.  Some sectors previously reserved for public
investment such as telecommunications and power generation were being opened to private investors,
and new public-private partnerships were being forged.  Rapid implementation of the privatization
programme in a transparent manner was a key objective of the Government.
23. The Council of Ministers had appointed an interministerial committee, headed by the Prime
Minister, to steer the overall privatization plan.  A Privatization Unit, located in the office of the
Prime Minister, assisted in the privatization process, and the World Bank supported the institutional
capacity to implement the programme through the Institutional Development Fund (IDF).  The main
responsibilities of the Privatization Unit at the Prime Ministry included:
(a) coordination of the preparation of divestiture transactions;
(b) managing the teams of technical experts and short-term external advisers;
(c) managing the marketing efforts of enterprises undergoing divestment;WT/ACC/JOR/33
WT/MIN(99)/9
Page 6
(d) negotiations with stockholder groups;
(e) execution of transactions;  and
(f) dissemination of information on progress in privatization.
24. The privatization programme aimed at increasing enterprise efficiency.  The operational
performance of some public enterprises was expected to improve by according greater autonomy to
enterprise management in administrative and investment decision, and the sale of shares to reputable
strategic investors.  Substantive steps towards eventual privatization had been taken in the energy and
telecommunication sectors.  The Government intended to restructure public enterprises in the
transport sector.  The Government had decided that the first phase of the programme would involve
the privatization of the Jordan Telecommunication Corporation (JTCC), the Jordan Electricity
Authority (JEA), Irbid District Electricity Company (IDECO), Jordan Electric Power Company(JEPCO), Aqaba Railway Corporation (ARC), Jordan Cement Factories Company (JCFC), Public
Transport Corporation (PTC) and the Jordan Tourism and Spa Complex Co. at Zerqa Mai'n.  The
Government would also sell its minor stakes (less than 5 per cent) in public shareholding companies
and partially dispose of other shareholdings such as those in Arab Potash Co. and the Jordan
Phosphate Mines Co. (under study).
25. The representative of Jordan said that Jordan's privatization process was free from
discriminatory practices or discretionary investment authorizations.  Foreigners of all nationalities
could participate in Jordan's privatization process within the legislation in force.  International
consultants, investors and developers were invited to compete for bids related to privatization through
local and international media.
Pricing policies
26. The representative of Jordan said that his Government was removing price controls gradually
on certain commodities with a view to the eventual liberalization of all prices at the retail level.
Jordan applied price and profitability control, as well as price cap control, on certain domestic and
imported products.  The products subject to controls are listed in Table 1.
Table 1:  Price controls in Jordan
HS Code Product name
PRICE CONTROL
ex 0713.20 Chickpeas, seeds of a kind used for sowing
ex 0713.40 Lentils, seeds for a kind used for sowing
ex 1001 Wheat, seed of a kind used for sowing
ex 1214.90 Vetches and similar forage, seeds of a kind used for
sowing animal feed.
1001.10, ex 1001.90 Wheat
1101.00 Flour
ex 1905.90 Bread – Arabic, Tanouri, Taboun, Armenian, and Baladi
ex 2302 Bran
ex 2523.29
ex 2523.29
ex 2523
ex 2523Cement, Portland , bagged
Cement, Portland , not bagged
Cement, Sulphate resistant, bagged
Cement, Sulphate resistant, not bagged
 ex 2711.13
 ex 2710.00
 ex 2710.00Liquid gas Butane
Leaded  (gasoline)
Super  (gasoline)WT/ACC/JOR/33
WT/MIN(99)/9
Page 7
HS Code Product name
 ex 2710.00
 ex 2710.00
 ex 2710.00
 2710.004
 2710.005
 ex2714.90
 ex 2714.90
 ex 2710.00Unleaded  (gasoline)
Jet Fuel (airplanes’ fuel)
Kerosene
Diesel
Fuel oil
Asphalt, w/o containersAsphalt, in containers
Diesel for Ships
ex 3002, ex 3003, ex 3004 Medicaments for human use
ex 2201.90 Water
2716.00 Electrical Energy
PROFITABILITY CONTROL
ex 3002, ex 3003, and ex 3004 Medicaments for human use
ex 3002, ex 3003, and ex 3004 Medicine for veterinary use
PRICE CAP
ex 0401.30 Fresh Cow Milk
ex 1003.00 Barley, seed of a kind used for sowing
ex 2005.90ex 2005.90
ex 2005.90
ex 2005.90
ex 2106.90Houmos,
Qudsieh,
Fool,
Musabaha,
Falafel Sandwiches, and Falafel pieces, sold inunclassified restaurants
27. A committee - comprising representatives of merchants and the Ministries of Supply and
Agriculture - set prices based on costs, and allowed a 17 per cent profit margin for wholesalers and
retailers.  The same maximum profit margin applied in case of similar imported products.  Revisions
of the established prices could take place every six months.  In most cases the revisions were
requested by importers due to changes in import prices, for example, for wheat of bread-makingquality.  The price controls had originally affected 66 food products.  In response to specific
questions, he confirmed that prices of dried milk, sugar and rice were not fixed when imported by
private enterprises.  Except for the regular Jordanian loaf of bread, prices of all bakery and pastry
products were determined freely by the market.  Price controls had been liberalized on imported and
locally-produced cigarettes.
28. Prices for utilities (electricity, water, solar heating and natural gas) and petroleum products,
except lubricants, were controlled to support low-income groups.  Electricity prices had recently been
raised to rationalize the use of energy and increase the financial viability of electricity production.
Water charges had also been increased, including the adoption of a progressive tariff for irrigation
water, to rationalize use and ensure cost recovery for water and sanitation services.
29. Some members noted that the use of price controls on imported chilled meat, but not on
domestically-produced chilled meat, would appear to violate the national treatment obligations of
GATT Article III, and asked how Jordan intended to  bring this item into conformity with WTO
requirements.  These members sought a commitment from Jordan that it would observe the provisions
of Article III concerning the application of maxi mum prices to imports, with particular emphasis on
the provisions of paragraphs 4 and 9, that Jordan would notify its current price controls on imports
and domestic goods and services to the Working Party, and that any subsequent such controls will be
published in an official journal for the information and review of traders.  A member added that
grading requirements applied to meat by Jordan were arbitrary and unjustifiable, and that theWT/ACC/JOR/33
WT/MIN(99)/9
Page 8
maintenance of such a regime after accession would deny its exporters benefits to which they would
be entitled under Article III:4 of GATT 1994.  This member therefore requested that the grading
requirements and the pricing regime associated with those requirements be eliminated prior to
accession.
30. In reply, the representative of Jordan said that price control affected imported wheat and
medicaments for human use;  profitability control was applied to imported medicaments for human
and veterinary use;  and the price cap was applied on imported barley.  The controls on imports were
also applied on the same domestically-produced items  Therefore, these price controls and caps did
not violate the national treatment provisions of Ar ticle III of the GATT 1994.  He added that Jordan
did not intend to liberalize the prices of products remaining under price control before acceding to the
WTO.  However, Jordan would ensure that the pr ice control mechanisms applied in Jordan be in
conformity with Article I and III of the GATT 1994, and with the transparency requirements of the
WTO.  He confirmed that Jordan had eliminated price controls on imported chilled meat.  Legal
measures to eliminate this practice had been adopted in October 1999.  The representative of Jordan
stated that there was no relation between the meat grading requirements and the pricing regime.
Jordan was preparing new technical regulations on meat that would retain a grading system in linewith the grading system of the concerned member.  The main purpose of the grading requirements in
Jordan would be to provide information to consumers.
31. The representative of Jordan confirmed that prices for goods in every sector of Jordan were
determined freely by market forces with the exception of those listed in Table 1.   Current price
controls on imported fresh and chilled meat had been eliminated at the end of October 1999 inaccordance with the "Instructions on the Elimination of the Price Cap on Imported Meat" issued by
the Ministry of Industry and Trade.  Price controls existed on State services (e.g. vehicle inspection,
passport fees), customs clearing agents services, public warehouses, transport services for passengers
and goods, telecommunication services, professional medical services offered by the Government, car
liability insurance services, and ticketing services by travel agents.  Price cap was applied onprofessional medical services, certain banking services, money exchange services, commission on
services rendered by securities dealers, hotel room rates, internal tourism tour packages, tour packages
with bed and meal, meal prices at hotels, bed and breakfast rate for country's official guests,
vegetables and fruits auctioning services, and legal services.  All other prices of services were
determined freely by the market.
32. The representative of Jordan confirmed that Jordan would apply, from the date of accession,
the price and profitability controls described in paragraphs 26-31 and Table 1 and any applied in thefuture, in a WTO-consistent fashion, and would take account of the interests of exporting WTO
Members as provided for in Article III:9 of the GATT 1994.  Jordan would publish any list of goods
and services subject to State price controls in th e Official Journal, including any changes regarding
existing price controls.  The Working Party took note of these commitments.
Competition policy
33. The representative of Jordan said that a draft Law on the Prevention of Monopolistic Practices
and Encouragement of Competition had been submitted to Parliament for review and approval.  An
English translation of the law, once available, would be provided to the Working Party.
FRAMEWORK FOR MAKING AND ENFORCING POLICIES
34. The representative of Jordan said that Jordan was a constitutional monarchy.  The King and
the Council of Ministers constituted the executive branch of government.  The legislative system
comprised the King and Parliament, which was fo rmed by an Upper House of 40 dignitaries
appointed by the King, and a Lower House of 80 deputies elected by the people.  The constitutionWT/ACC/JOR/33
WT/MIN(99)/9
Page 9
(Article 97) guaranteed an independent judicial syst em, i.e. the civil and criminal courts, including the
magisterial courts, courts of First Instance and courts of Appeal.
35. The Council of Ministers was responsible for issuing regulations based on the different
relevant laws.  Regulations of the Council of Ministers should be approved by the King and publishedbefore coming into effect.  According to the Customs Law, the Council of Ministers decided on
changes in tariff rates upon proposals of the Tariff Council, formed by the Minister of Finance, the
Minister of Industry and Trade, and the Director General of the Customs Department.  The Council of
Ministers was empowered to restrict importation or exportation of certain goods, restrict totally or
partially the right to import or export goods to certain entities, or exempt goods from import and
export licensing requirements upon proposal of the Minister of Industry and Trade.
36. The Ministry of Industry and Trade supervised the formulation and execution of policies
related to industry and trade.  The Ministry's functions included the implementation of major trade-
related legislation such as the Import/Export Law and regulations, the Companies Law, the industrial
property laws, the Insurance Law and the Trade Marks Law; negotiation of trade and economic
agreements and protocols; and representing the Gove rnment in bilateral, regional and international
meetings.  The Ministry of Industry and Trade could, upon a proposal from or in coordination with theauthority concerned, subject certain imports or exports to prior approval of this authority.
37. The Customs Department within the Ministry of Finance administered the flow of goods
across borders according to the laws and regulations  in force.  The main tasks of the Department,
which consisted of 16 directorates, 28 customs house centres, 8 bonded custom houses, and 6
passenger customs border centres included the application of customs duties on imported goods;administration of temporary entry and/or drawback  facilities for exporters, diplomatic missions,
regional offices and projects;  implementation of exemptions accorded to entities such as charitable
organizations and beneficiaries;  collection of sales tax;  handling of violations of the Customs Law
such as smuggling, fraud and false information;  organization of special patrols to combat smuggling;
and performing auditing checks on all customs statements.  The Ministry of Health was responsiblefor registration of imported and locally-produced medicaments.
38. The representative of Jordan said that draft laws would normally be submitted to the Council
of Ministers for consideration by the Ministry or agency concerned with the subject-matter.
Approved by the Council of Ministers, the law would be sent to the Bureau of Legislation to be put in
proper legal form prior to submission to Parliament.  Laws were discussed and approved separately by
both Houses of Parliament.  A Law passed by both Houses was submitted to the King for his consent
and signature.  Once this step had been completed the Law would become effective 30 days afterpublication in the Official Gazette or as stipulated in the Law.  International agreements and treaties
signed by Jordan needed to be ratified by Parliament  only if they entailed expenditure on behalf of the
Treasury or affected the rights of Jordanian citizens.  All treaties were required to be published in the
Official Gazette in order to be enforceable.
39. The representative of Jordan said that unless a law designated a different court, civil courts
had jurisdiction in all civil matters, including trade.  Jordanian courts could also decide on cases
beyond their jurisdiction if the litigants agreed.  Trade issues heard by civil courts could be referred to
the magisterial courts (cases within a JD 750 value limit), the Courts of First Instance (which also
served as courts of appeal for magisterial court decisions), the Courts of Appeal, and the Court of
Cassation.  The Court of Cassation decided on challenges regarding judgements of the Courts ofAppeal in civil cases.  It also decided on points of law or procedure if reference to the Court of
Cassation was allowed by the presiding judge of the Court of Appeal.  In certain cases the Court of
Cassation could decide to return the case to the Court of Appeal for reconsideration.  Matters of fact
relating to litigants' rights not objected to before the Court of First Instance could not be raised beforeWT/ACC/JOR/33
WT/MIN(99)/9
Page 10
the Court of Appeal, and those not raised before th e Court of Appeal could not be raised before the
Court of Cassation.
40. Natural or legal persons contesting administrative decisions could take the matter to the High
Court of Justice, which was specialized in administrative jurisdiction.  Customs and income taxmatters were decided by specialized courts.  Customs decisions could be appealed to the Customs
Court of First Instance, whose judgements could be  appealed to the Customs Court of Appeal and
further to the Court of Cassation.  Issues of intellectual property infringement were addressed by the
Civil Courts.  Apart from the granting of amnesty or partial pardon to convicted individuals and
sanctioning the execution of capital punishment, the King had no power to overrule any court
judgement, civil or criminal.  Religious Courts ma inly heard cases involving marriage, divorce, wills
and legacies and had no jurisdiction in civil or criminal cases or issues related to domestic and foreigntrade.
41. A member asked Jordan to clarify the right of appeal to a separate judicial authority in matters
covered by WTO Agreements.  In reply, the representative of Jordan said that Jordan had adopted the
system of two-tier litigation.  This rule applied in the civil or administrative courts, thus every
decision of a judicial character was subject to appeal in Jordan in one form or another.  In the absenceof a special court of first instance, all administrative-related decisions were considered decisions of
the first court and subject to appeal to the High Court of Justice.  The High Court of Justice had
jurisdiction to hear a limited list of appeals mentioned in the High Court Law or in other special laws,
such as trade marks and patents.  Decisions concerning customs, income tax, and compensation under
imminent domain were appealed to the civil system of courts as provided by special provision in therelevant laws.  The Court of Customs and the Cust oms Court of Appeal had jurisdiction to hear all
customs-related issues and penalties.  Decisions of the Customs Court and the Court of Appeal were
subject to review of the Court of Cassation.  However, decisions regarding prior approval for
importation would be subject to appeal to the High Court of Justice in accordance with the general
theory of Administrative Law.
42. Concerning the division of authority between central and sub-central government, the
representative of Jordan said that the central Govern ment was responsible for all matters related to the
national economy and foreign trade.  Autonomous public entities and private agencies shared in
implementing national economic policies, including trade.
43. The representative of Jordan stated that if Jordanian laws or other acts should be found to
contradict international treaties or agreements, the provisions of the international treaty or agreement,
such as the WTO, would apply.  The representative of Jordan confirmed that sub-central entities hadno autonomous authority over issues of subsidies, taxation, trade policy or any other measures
covered by WTO provisions.  He confirmed that the provisions of the WTO Agreement, including
Jordan's Protocol, shall be applied uniformly throughout its customs territory and other territories
under Jordan's control, including in regions engaging in border trade or frontier traffic, special
economic zones, and other areas where special regimes for tariffs, taxes and regulations areestablished.  He added that when apprised of a situation where WTO provisions were not being
applied or were applied in a non-uniform manner, central authorities would act to enforce WTO
provisions without requiring affected parties to petition through the courts.  The Working Party took
note of these commitments.
POLICIES AFFECTING TRADE IN GOODS
Trading rights (the right to import and export)
44. Some members requested Jordan to clarify the right of firms and individuals to trade, i.e. to
import and export goods, to understand better how Jordan's conditions compared with the requirementWT/ACC/JOR/33
WT/MIN(99)/9
Page 11
of GATT Articles III:4 and XI.  Specifically, Jordan was asked to outline the trading rights of (i) fully
domestically-owned firms;  (ii) firms with less than  50 percent foreign equity;  (iii) firms with more
than 50 percent foreign equity;  and (iv) fully fore ign-owned firms.  For each category, Jordan should
also indicate who would be entitled to register as Jordanian firms with the right to import for own use(e.g. in manufacturing), import for further distribution, or export.  In reply, the representative of
Jordan provided a detailed report on the right to trade (WT/ACC/JOR/25).  Jordan's legislation
distinguished between import/export for a commercial purpose (further distribution and sale,
including wholesale and retail) and non-commercial purpose (own use).
45. Commercial trade could be effected by companies or sole proprietorships having specified
"engaging in trade activities" among their objectives at the time of registration.  In this respect,
Jordanian legislation distinguished between Jord anian (including foreign-owned) companies and
foreign companies.  Jordanian companies were comp anies established and registered in Jordan, and
having Jordan as the principal place of operation.  According to the Non-Jordanian Investment
Promotion Regulation for 1997, foreign equity in a Jordanian company engaged in trade and trading
services (including distribution services and import/export for commercial purposes) could not exceed
50 per cent.  In addition, foreign investors in a Jordanian trade and trading services company wererequired to deposit minimum JD 50,000 with a Jordanian bank to effect the registration of such a
company (except for public share holding companies) .  A foreign company, such as a branch of a
company incorporated abroad, could be registered fo r trade and trading services in Jordan, in which
case the minimum capital requirement of JD 50,000 would not apply.  Registration could be either
temporary, for the purpose of implementing a specific project or tender in Jordan, or permanent.However, permanent registration of foreign companies carrying out regular business in Jordan was
subject to approval by the relevant Ministry.
46. Individuals, Jordanian or foreign, did not have the right to import or export for commercial
purposes.  However, a Jordanian natural person could register a "sole proprietorship", an option which
was not available to foreigners wishing to engage  in commercial trade.  Foreign individuals could
register as a sole proprietorship and import for non-commercial purpose after obtaining a special
import card.  Imports or exports for non-commercial purposes (own use) could be effected by
Jordanian companies regardless of the level of foreig n equity, foreign companies registered in Jordan,
or domestic or foreign individuals.  Imports for own use would be limited to items relevant to attain
the stated objectives of the entities concerned.
47. A firm engaging in importation and exportation for commercial purposes was required to hold
a valid import card, as stipulated in the Instructions on Import No. 1 of 1999.  Import cards wereissued automatically by the Trade Directorate in the Ministry of Industry and Trade after the importer
had received a certificate of registration from the Importer's Registration at the Ministry of Industry
and Trade.  An application for registration in the Importer's Registration should be accompanied by a
valid profession licence and include information such as the name, address, capital and trade name of
the company or enterprise.  Profession licences were  issued to natural and legal persons registered in
Jordan which were members of the Chamber of Commerce or Chamber of Industry, and which had
had their premises inspected/approved by the local municipality.  Membership in the Chamber of
Commerce or Chamber of Industry was automatic provided membership fees were paid.
48. The registration certificate of a company or merchant should be attached to the application for
individual enterprises, whose capital should not be less than JD 5,000.  Provided the documentationwas in order, the import card would be issued within 30 minutes at no cost.  The card was valid for
one year (ending on 28 February), and could be renewed annually subject to the usual documentation
requirements, including a renewed profession licence.  An import card could not be cancelled.  The
Ministry could not refuse an application for an import card.  Identical criteria applied for import cards
issued to all persons, entities and institutions regardless of nationality and economic sector.WT/ACC/JOR/33
WT/MIN(99)/9
Page 12
49. The import card provided the importer with a special number and a special file which
facilitated the clearance of imported goods through customs.  Goods could also be imported without a
valid import card, but would then be subject to a fine equal to 5 per cent of the value of the imported
goods.  This fine was applied evenly to imports from all sources.
50. A member expressed concern that since Jordan's regulations did not distinguish between
importing or exporting and providing services, such as distribution, after importation those regulations
could be considered a restriction on imports and inconsistent with Article XI of GATT 1994.
Moreover, application of an economic needs test in the context of registering importers would have an
adverse effect on the terms of competition between imported and domestically produced goods.  The
representative of Jordan recognized the distincti on drawn in the WTO between the right to import and
export under the GATT and the right, under the GATS, to provide services such as distribution, andtransportation, with respect to imported goods.  Without prejudice to Jordan's schedule of
commitments on services, Jordan would modify the relevant laws, regulations and requirements to
permit foreign firms, including sole proprietorships to register as importers without limitation on
equity or application of an economic needs test, including for branches of foreign firms permanently
registered in Jordan.
51. Some members requested Jordan to provide a WTO justification for the import card rule, and
considered the fine for importing without a card disproportionate.  The representative of Jordan
replied that import cards were used for identification and statistical purposes, and that the fine was
designed to ensure that importers complied with the requirements.  Jordanian and foreign companies
which had not been registered as "engaging in trade activities" or "importing" could avoid the 5 percent penalty on imports for own use by requesting a special import card.  Imported personal effects
were not affected by the import card rule as these were cleared unconditionally by customs.
52. The representative of Jordan said that Jordan’s  requirements on the right to trade would not in
any way contradict Articles III, XI, and VIII of the GATT 1994.  The representative of Jordan
confirmed that no restrictions existed on the right of foreign and domestic individuals and enterprisesto import and export goods and services into Jordan's customs territory, except as provided for in
WTO Agreements.  He confirmed that individuals and firms were not restricted in their ability to
import or export based on their registered scope of business and the criteria for registration of
companies in Jordan were generally applicable and published in the official gazette of Jordan.
53. The representative of Jordan confirmed that from the date of accession Jordan would ensure
that its laws, regulations and requirements relating to the right to import and export and all fees,
charges or taxes levied on such rights would be in full conformity with its WTO obligations, includingArticles VIII:1(a), XI:1 and III:2 and 4 of the GA TT 1994 and that it would also implement such laws
and regulations in full conformity with these obligations.  The Working Party took note of this
commitment.
1. Import Regulation
Customs tariff
54. The representative of Jordan said that the customs law had been revised and amended to make
it compatible with WTO requirements, ensuring transparency and simplified customs procedures.  A
new Customs Law, replacing the Customs Law of 1983, had been published on 1 October 1998, and
had entered into force on 1 January 1999.  Jordan had begun using the Harmonized System
nomenclature on 1 January 1994, and the HS 96 nomenclature had entered into force on1 March 1997.  The Customs Law No. 20 of 1998 had been reviewed to assess its WTO conformity.
Although the Customs Law No. 20 of 1998 largel y conformed to WTO requirements, certain
amendments were needed in order to bring it into full conformity.  Key subject areas to be addressedWT/ACC/JOR/33
WT/MIN(99)/9
Page 13
were (i) non-preferential rules of origin (Articles 24-26), which would be substantially revised to
incorporate the Harmonized Rules of Origin once finalized by the WTO in co-operation with the
World Customs Organization;  (ii) customs valuation (Articles 28-32), where the language of some
articles would be changed in the areas covering the definition of transaction value, deductive value,and prohibited methods.  Jordan was also publishing, in the form of an Instruction, the interpretive
note on customs valuation in 1999;  (iii) customs user fees, to include a provision ensuring that
customs user fees reflected the cost of servic es rendered in accordance wi th Article VIII of GATT
1994;  (iv) border enforcement of intellectual property rights, providing a basic legal framework
which would be further elaborated through Regulations,  and (v) countervailing duty and safeguard
measures, where existing language in Article 15 would be amended because Jordan had enacted a
Law on safeguards and was preparing Regulations on countervailing measures.  Jordan was in theprocess of preparing these amendments, and planned to enact them in 2000.
55. The representative of Jordan said that tariff rates had been streamlined and reduced.  The
tariff bands had been reduced to six (0, 5, 10, 20, 30 and 40 per cent).  The average trade-weighted
tariff had fallen from 34.1 per cent in 1994 to 16.7 per cent in 1996, and the share of customs duties in
government revenue had declined from 25 per cent in 1992 to 10 per cent in 1995.  As of1 January 1997, the maximum tariff amounted to 40 per cent (except for alcohol and tobacco).  Jordan
had reduced the 40 per cent tariff band to 35 per cent in September 1999.  Before the end of 2000, the
maximum tariff was expected to be reduced to 30 per cent, except for manufactured tobacco and
tobacco substitutes (70 to 100 per cent), and alcoholic beverages (50 per cent and 180 per cent).
Jordan maintained combined ( ad valorem  and specific) duty rates on bananas, grapes, apples, calves,
and sheep and goats.  Jordan had no intention to abolish these compound rates.
Other duties and charges
56. The representative of Jordan said that Law No. 7 on Unifying Other Taxes and Fees had been
passed in March 1997, consolidating all other import duties and charges into the ordinary rate of
customs duty.  The fees and taxes that had been incorporated into customs duties included aconsolidated surcharge (6 per cent);  the municipalities and universities fees (2 per cent and 4 per
cent, respectively);  the 1969 surcharge tax (5 per cent on items exempt from customs duty, 3 per cent
on dutiable items); and a 5 per cent import fee.
57. The Council of Ministers had decided to eliminate a fee of 86.5 fils (JD 0.0865) per packet
(20) of imported cigarettes, which had been levied in accordance with the decision of the Economic
Security Commission No. 16 of 20 September 1984.  The revenue had been earmarked for support of
some agricultural products.  Jordan planned to impose an internal tax on imported and domestically-produced cigarettes.  Such a tax would be imposed  in full conformity with Article III of the
GATT 1994.  Imported radios were subject to fees levied in accordance with by-Law No. 20 for 1966
of the Ministry of Post and Telecommunication.  The fees amounted to JD 0.2 for one-wave transistor
radios, JD 0.3 for two-wave radios and JD 0.4 for radios with three wave bands.  In addition, JD 0.5
was levied on each transistor radio with an electric transformer, and JD 2 on each radio operated byelectricity.  Asked to explain the purpose of the fees levied on imported transistor radios, the
representative of Jordan said that the purpose had not been specified in the legislation introducing
these fees, i.e. the Regulation of Wireless Receivers and Transmitters No. 30 of 1966 and the 1934
Wireless Telegraph Law (Article 4).  Article 90 of the Telecommunications Law No. 13 of 1995 had
repealed the aforementioned regulation and Law, thereby eliminating the import fee on transistorradios.  Asked by a member about the WTO justification for an import charge on imported sheep and
goats (JD 2 per head) and calves (JD 10 per head), the representative of Jordan said that the Law on
Unifying Taxes and Duties No. 7 of 1997 would be  amended prior to accession.  Jordan would
reintroduce compound tariff rates for sheep and calves, as was the case before February 1997.WT/ACC/JOR/33
WT/MIN(99)/9
Page 14
58. The representative of Jordan confirmed that from the date of accession Jordan would levy no
duties and charges on imports other than ordinary customs duties and fees and charges for services
rendered.  Any such charges applied to imports after accession would be in accordance with WTO
provisions.  The Working Party took note of this commitment.
59. The representative of Jordan further confirmed that Jordan would not list any other charges in
its Goods Market Access Schedule under Article II:1(b) of the GATT 1994, binding such charges at
"zero".
Tariff rate quotas, tariff exemptions
60. The representative of Jordan said that tariff rate quotas were not applied in Jordan, but tariff
exemptions had been granted for basic production inputs, basic food products, necessary health and
medical goods, and capital goods and equipment for agriculture and industry.  Tariff-exempt importshad accounted for almost 60 per cent of the total value of imports in 1996, 50 per cent in 1997, and
38 per cent in 1998.  These figures included duty-free imports by diplomatic, charitable, educational
and medical institutions, certain imports governed by bilateral trade agreements (protocol trade),
imports by certain government institutions, and imports under the Investment Promotion Law.
61. The new Customs Law No. 20 of 1998 had cancelled all import duty exemptions for
government-owned firms and government institutions (except grants and donations).  Duty
exemptions remained for 10 companies in accord ance with agreements with the Government or
concessions, granted at the time of their establishment (Table 2).  The import duty exemptions were
set to expire automatically on the date stipulated in the concessions and agreements.  The
beneficiaries were share holding companies with sign ificant private participation - the Jordan Phosphate
Mines Co. Ltd., the Jordan Petroleum Refinery Comp any, the Jordan Cement Factories Company, the
Arab Bridge Maritime Company, the Arab Potash Co mpany, the Jordanian Electric Company, the Irbid
Governorate Electric Company, the Jordanian Tannin g Company, the Vegetable Oil Industries Co. Ltd.,
and the Arab Company for Manufacturing White Cement.  The products subject to import duty
exemptions were used by the exempted companies for production and operations purposes.  Thefollowing goods imported by these companies were not exempt from import duties:  cars and spare
parts, tyres, petroleum products, vans and buses 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.  These companies were not exempt from income tax, and
the tariff exemptions were not contingent upon export performance.
Table 2:  Company-specific tariff exemptions in Jordan
Company Name Terms of concessions and agreements; conditions; and expiration
Jordan Phosphate
Mines Co. Ltd.The company has exclusive mining rights of Phosphate for four different mines
in Jordan, which are granted based on Law No. 12 of Natural Resources 1968.
Mining rights are usually granted for thirty years and are subject to
renegotiations and renewal once they expire.  The company also has the
exclusive right (indefinite term) to import, store and sell explosive materials
used in the local market for mining and quarrying purposes.
Jordan PetroleumRefinery
CompanyThe concession Law No. 19 of 1958 was issued to approve the concession
agreement signed between the Jordanian Government and the Petroleum
Refinery Company.  The term of concession grants the company the exclusive
right to refine oil and sell in Jordan.  The company alone shall have the right toimport oil and Hydrocarbon necessary to the local market.  The concession
expires in 2008.WT/ACC/JOR/33
WT/MIN(99)/9
Page 15
Company Name Terms of concessions and agreements; conditions; and expiration
Jordan Cement
Factories
CompanyThe Jordan Cement Factories has a concession for fifty years and it is valid
from 1951 to 2001.  The company has the exclusive right to search, extract and
produce cement and its by-products in any area or land of the Hashemite
Kingdom of Jordan for the purpose of supplying the local market with all its
cement demand.  The concession expires in year 2001.
Arab PotashCompanyThe Arab Potash Company has a concession Agreement which was granted in
1958 and for 100 years according to law No. 16 of 1958, issued to approve the
concession agreement.  The company has the exclusive right to mine and
extract Dead Sea minerals from the Dead Sea.  The concession expires in year
2058.
Jordan TanningCompanyThe Jordanian Tanning Co. has a concession agreement that was granted in
1962, for forty years, according to the Law No. 9 which approved theconcession agreement.  The company has the exclusive right to import and
export rawhides and skins and also it has exclusive right to export tanned
leather.  The concession expires in year 2002.
Jordan ElectricCompanyThe Jordanian Electric Co. has a concession agreement that was granted in
1961 for fifty years according to Law approving the concession agreement.
The company has exclusive right to distribute electric power to Amman, Zarqa,
Madaba, Salt areas and suburbs with electricity power.  The concession expires
in year 2012.
The company is not engaged in international trade activities and does not have
exclusive right to generate power.  Its main objective is to distribute electric
power in the above mentioned areas (n atural monopoly with regard to power
distribution at the local level).
Irbid GovernorateElectricThe Irbid Electric Co. has a concession agreement that was granted in 1961, for
fifty years, according to Law No. 1 of 1961 approving the concession
agreement.  The company has the exclusive right to distribute electric power to
Ajlun, Irbid, Mafraq and Jerash areas.  The concession expires in year 2011.
The company is not engaged in international trade activities and does not have
exclusive right to generate power.  Its main objective is to distribute electric
power in the above mentioned areas (natural monopoly with regard to power
distribution at the local level).
Vegetable OilIndustries Co.
Ltd.The Vegetable Oil Factories Co. has exclusive right to produce vegetable Ghee
(Margarine) to the local market.  Concession agreement was granted in 1956
for thirty years according to agreement and has been extended for another
fifteen years.  The concession expires in year 2001.
However this is not implemented in practice.
Arab Company
forManufacturing
White CementThere is no concession agreement between the Jordanian Government and the
Arab Company for Manufacturing White Cement.
The company has an exemption from paying customs duties of indefinite
validity, as per cabinet decision dated 10 November 1984.WT/ACC/JOR/33
WT/MIN(99)/9
Page 16
Company Name Terms of concessions and agreements; conditions; and expiration
Arab Bridge
Maritime
CompanyThe company has a concession agreement that was granted in 1985 for fifty
years according to Maritime cooperation agreement between three Arab
countries (Jordan, Egypt, and Iraq).  The company has the exclusive right to
transport cargo, mail and passengers from Aqaba to Noueibe and return.
The company is registered in Panama and, therefore, is not subject to Jordanian
laws on income tax.
62. The representative of Jordan added that th e customs exemptions provided for the Jordan
Phosphate Mines Co. Ltd. would be eliminated upon accession to the WTO, as stipulated in Council
of Ministers Decision No. 12-9-76 of September 1999.  He noted that the concessions granted to the
Arab Bridge Maritime Company would expire in 2035.
63. The representative of Jordan confirmed that the exemptions on customs duties for certain
imports by the 10 companies listed in Table 2 will expire as indicated in that table, and will not berenewed.  As noted in Table 2, the customs exemption for Arab Company for Manufacturing White
Cement had been granted for an indefinite period of time, in accordance with the Council of Ministers'
Decision dated 10 November 1994.  The Working Party took note of this commitment.
64. Charitable organizations were registered in a special registry at the Ministry of Industry, and
received an import licence from the Ministry to import goods duty free upon recommendation fromthe Ministry of Social Development, certifying that the goods to be imported were for charitable
purposes.  Duty-free imports were allowed for medical equipment and medications (approval of the
Minister of Health and Minister of Finance/Customs);  fixed equipment and apparatus and educational
apparatus received as donations or grants for use in schools and institutions run by charitable
organizations (recommendation from the Minister of Social Development and approval by theMinister of Finance/Customs);  clothes, food, furnis hings (carpets and curtains) received as donations
or grants to orphanages, old peoples' homes and hospitals (upon direction from the Minister of Social
Development and approval of the Minister of Financ e/Customs);  donations and grants of construction
materials for building mosques, churches or schools belonging to religious or charitable organizations
accredited by the Ministry of Social Development;  and hearse cars (95 per cent tariff reduction).Educational and medical materials and all other ap paratus, equipment, machines and spare parts,
including transport vehicles, were also fully exempt from customs duties when used by schools,
institutions and programmes for handicapped persons.
65. The tariff exemptions granted for imported capital goods and related spare parts in investment
projects are described in the section "Investment regime".  Agricultural products exempted fromcustoms duties were wheat and flour, and certain fruit and vegetables imported under bilateral trade
agreements with Arab countries, Israel and Palestinian Authority according to an agricultural
calendar.
66. Some members noted that the seasonal exemptions for customs duties and import fees for
certain agricultural products were not applied on a most favoured nation basis.  In reply, the
representative of Jordan said that Jordan inte nded to conform to the MFN requirements of WTO.
Jordan would maintain seasonal exemptions from customs duties accorded as trade preferences tosome Arab countries in the context of the Arab Free-trade Area.WT/ACC/JOR/33
WT/MIN(99)/9
Page 17
Fees and charges for services rendered
67. A member noted that Jordan imposed overtime fees and non-tariff ad valorem  charges for re-
exported goods, and that the fee assessed for authentication of invoices and certificates of origin
increased for goods worth more than JD 10,000.  Jordan was requested to bring its fees and chargesfor services rendered into conformity with Article VIII of the GATT 1994.
68. In reply, the representative of Jordan said that certain fees and charges were imposed for
services rendered to the importer.  A detailed report was provided to the Working Party in document
WT/ACC/JOR/27.  Veterinary charges were levied in accordance with by-law No. 17 for 1987, issued
in accordance with the Agriculture Law No. 20 for 1973, and their amendments.  He added that audio-
visual material was screened to protect public morals according to Law No. 52 of 1951, and the fees
for movies (JD 50);  video films and visual discs (JD 3);  and audio discs, computer and electronicgames, and audio cassettes (JD 1), were below the cost of the services rendered.
69. An overtime fee equal to 0.2 per cent of the c.i.f. value of imported goods worth more than
JD 50 (0.1 per cent for goods in transit) was charged for services rendered by staff of the Customs
Department during official working hours and for perf orming difficult and risky tasks.  He confirmed
that these fees would be brought into conformity  with Article VIII of the GATT 1994 upon enactment
of amendments to the Customs Law No. 20 (e xpected during Parliament Ordinary Session
November 1999- February 2000).  The overtime fee w ould be replaced by an import processing fee of
0.2 per cent of the transaction value, minimum JD 10 and maximum JD 250 per transaction.  All trade
would be subject to this fee, and revenues from  the fee would be used to support the overall
operations and infrastructure of the Customs Department in connection with customs processing(Article 161D of the Customs Law).  The transit fe e would be levied at a fixed rate of JD 20 per
transaction.
70. A member noted that Jordan required consular certification of commercial bills, and
considered the certification by consulates and Chambers of Commerce of documents unnecessary.
Moreover, the requirement created an additional charge on imports, and an additional burden toimport trade not applied to domestic goods, incompatible with the provisions of the Agreement on
Rules of Origin and Article VIII of the GATT.  Jordan was accordingly requested to eliminate this
practice.
71. In reply, the representative of Jordan said that  consular fees were levied in accordance with
by-law No. 1 for 1989 based on Article 2 of the Law on consular fees No. 36 for 1947.  The fees were
levied for certification of commercial bills not paid at the time of certification by the consular
authority in the exporting country, and ranged from JD 2 for bills less than JD 100 to JD 50 for billsworth JD 50,000-100,000 with an additional JD 2 charged for each JD 10,000 in excess of JD
100,000.  Certificates of origin issued by a consular authority were subject to a fee of JD 2 per
certificate.  Appropriate legal measures to bring the consular fees for certification of commercial bills
into conformity with Article VIII of the GATT 1994 would be taken, and a flat fee of JD 21 per
transaction would apply from the date of Jordan's accession to the WTO.  Jordan would introduceamendments to the Customs Law No. 20 of 1998 and Regulations No. 1 of 1989 on Consular Services
and Fees during the second half of 2002 to eliminate the consular authentication requirements.
72. The representative of Jordan confirmed that from the date of accession, Jordan would impose
any fees or charges for "services rendered" to importation or exportation only in conformity with
Article VIII of the GATT 1994.  He further confirmed that the fee described in paragraph 71 for theauthentication or certification of import documents by Chambers of Commerce or consular officials in
the exporting country would be fixed at JD 21 per transaction from the date of accession.  The
practice of requiring such certifications would be eliminated by 31 December 2002.  InformationWT/ACC/JOR/33
WT/MIN(99)/9
Page 18
regarding the application and level of such fees, revenues collected and their use, would be provided
to WTO Members upon request.  The Working Party took note of these commitments.
Application of internal taxes
73. Some members noted that Jordan applied sales tax rates which differentiated between
imported and domestically-produced goods in violation of Article III of the GATT 1994, and asked
which steps Jordan was taking to eliminate this differential treatment.  A member observed that, under
a number of provisions of the General Sales Tax Law of 1994, as amended, national treatment was not
accorded in the taxation of imported goods, and asked that the Law be brought into full conformity
with the requirements of Article III:2 of GATT 1994 prior to accession.  This member stated that the
General Sales Tax law provisions not in conformity with Article III:2 of GATT 1994 were
(i) Article 6, which provided for two schedules of goods subject to the supplementary sales tax, whosepurpose was to compensate for reductions in import duties;  (ii) Article 7, which provided that the
Council of Ministers could wholly or partially exempt any locally produced goods from the tax;
(iii) Schedule 1, which consisted of goods not subject to sales tax including locally produced
furniture, locally produced dried legumes, locally produced solar water heaters and a number of other
locally produced items, but not imported like products;  (iv) Schedule 2, which consisted of goodssubject to 20 per cent sales tax, but retained separa te columns for the rate applicable to local and
imported goods, as long as the rates were not the same;  (v) Schedule 3, which consisted of goods
subject to specific sales tax, but retained separa te columns for the rate applicable to local and
imported goods, as long as the rates were not the same;  and (vi) Schedule 5-A, which consisted of
imported goods subject to supplementary sales tax, including natural and mineral water andcarbonated and alcoholic beverages.
74. In reply, the representative of Jordan said that a General Sales Tax was applied in Jordan, and
imported goods were taxed at the border based on the duty-inclusive customs value.  Jordan intended
to remove the differential rates of General Sales Tax prior to accession.  The Ministry of Finance was
preparing amendments to the General Sales Tax Law to bring the application of General Sales Taxinto full conformity with Article III of the GA TT 1994.  Parliament was expected to adopt these
amendments during its Ordinary Session Nove mber 1999-February 2000.  The amendments would
ensure national treatment with regard to the application of general sales tax. Products subject to the
(amended) specific rates of sales tax are listed in Table 3.
Table 3:  Products subject to specific sales tax
No. Product Unit Tax rate (JD)
(domestic or
imported)
1 All kinds of cement Ton 10.000
2 Iron for construction Ton 50.000
3 Mineral lubricating oils Kg 0.200
4 Natural and mineral water
Gas water including soda water in- reusable container-  disposable containerLitre0.020
0.166
0.175
5 Fizzy drinks
(a) for immediate consumption    -  reusable container
    -  disposable container
(b) Concentrates in
-drums that yield 96 bottles/25 cl.  Capacity each-drums that yield 480 bottles/ 25cl. capacity eachLitre
Litre
Drum
Drum0.166
0.175
3.984
19.920WT/ACC/JOR/33
WT/MIN(99)/9
Page 19
No. Product Unit Tax rate (JD)
(domestic or
imported)
6 Beer including non-alcoholic beer Litre 0.600
7 Unsaturated Ethel Alcohol Litre 0.330
8 Alcoholic drinks including wine. Litre 1.000
9 Tobacco
(a) Ordinary(b) Mixed with fruit syrupKg
Kg2.000
2.000
10 Snuff Kg 2.000
11 Chopped tobacco Kg 0.500
12 Cigar Kg 15.000
13 Cigarettes
a) For local consumptionb) for the same brand names sold to armed forces.box /20
0.1700.130
75. The representative of Jordan stated that Jordan, as of the date of accession, will be applying
sales tax for both imported and locally-made goods in conformity with Article III of the GATT 1994.Some imported products were subjected to 10 per cent general sales tax while locally produced goods
were exempt.  The products involved were agricultural plastic houses;  furniture;  wool blankets,
covers, and mattresses, quilts, and towels;  yeast and bread improvements;  active and inactive lime
and calcareous masonry;  smoke stack stoves and their parts;  dried leguminous vegetables subjected
to any manufacturing process such as peas, chick peas, beans, kidney beans, lentils of field beans;egg carton holders;  solar heaters;  knitted textiles;  milled products including spices, thyme, and other
herbs;  and energy-saving insulation materials for building purposes.  After the enactment of the
amendments to the General Sales Tax Law, the above-mentioned locally produced goods would no
longer be exempted from general sales tax.  A 13 per cent general sales tax would be applied on all
imported and locally produced goods mentioned above except gas and kerosene heaters which were
exempt from sales tax regardless of whether these were imported or locally-produced.  The
representative of Jordan added that the General Sales Tax Law had been amended in July 1999 toraise the tax rate from 10 per cent to 13 per cent.
76. The representative of Jordan stated that, from the date of accession, Jordan will apply its
domestic taxes, including those on products listed in Table 3, in compliance with Articles I and III of
the GATT 1994.  The Working Party took note of this commitment.
Quantitative import restrictions, including prohibitions, quotas and licensing systems
77. The representative of Jordan said that, although imports had been liberalized in recent years
and numerous non-tariff barriers had been eliminated, importation of some products was still
prohibited or subject to prior approval or import licensing.  The goods banned from importation into
Jordan are listed in Table 4.  Banned goods would be refused entry or clearance by customs, and
would need to be re-exported to the country of origin or to the Free Zone.
Table 4:  Banned imports
HS Code Products
39.15 Plastic Waste
87.03 Passenger cars using other than benzene as fuelWT/ACC/JOR/33
WT/MIN(99)/9
Page 20
78. Some members pointed out that Jordan's bans on imports of plastic waste, mineral water,
table salt, used cars, and cars using fuel other than petrol were intended to limit imports and were
inconsistent with Article XI of the GATT and the Agreement on Agriculture.  Jordan was requested to
confirm that all these restrictions would be eliminated or amended no later than upon accession tobring them into line with WTO provisions.  In reply, the representative of Jordan said that mineral
water and salt had been banned from importation for socio-economic reasons.  Price controls on table
salt had been lifted in June 1997 as a first step towards liberalization.  Jordan had eliminated the
import ban on mineral water in April 1999, and the ban on table salt and cars older than five years in
September 1999, and intended to lift the other bans.  Importation of diesel-engine saloon cars and
taxis was not allowed because of the environmental pollution they were causing.  Diesel-engine trucks
were accepted because they mostly operated outside the congested areas.  His Government wasencouraging Jordanians to replace older cars with newer (and safer) models.  Owners of old cars used
in public transport were eligible for duty-free importation of new cars provided the old car was
surrendered to the State or retired from service.
79. He added that Jordanian standards on cars had been suspended and were likely to be totally
withdrawn.  The ban on importation of diesel powered saloon cars would remain until Jordan's
refinery had been modernized to produce diesel fuel with lower sulphur content.  The prohibition on
import of plastic waste would not be lifted as processing of plastic waste was considered a major
environmental problem in Jordan.
80. The representative of Jordan said that prio r approvals were issued under specific conditions
by certain government institutions.  Prior approv als were required to import from all countries
(including those with which Jordan had preferential agreements) for all products listed in Table 5.
Prior approvals were granted automatically to private sector importers of rice and sugar and there
were no import quotas or restrictions on the imported quantity.  Private sector imports of cigarettes
required prior approval and an import licence from the Ministry of Industry and Trade, but there was
no import quota.  Prior approvals to import electric and electronic video games were granted only toshops licensed to use or deal with such games.
Table 5:  Prior approvals (measure in force prior to accession)
HS Code Product Party Granting
ApprovalJustification
1. 10.06 Rice Ministry of Industry
and Trade (MIT)Statistical purpose
2. 11.01 Wheat flour MIT Statistical purpose
3. 17.01 Sugar MIT Statistical purpose
4. 10.01 Wheat MIT Statistical purpose
5. 10.03 Barley MIT Statistical purpose
6. 10.05 Corn MIT Statistical purpose
7. Chapter 1 Live animals Ministry of
AgricultureHealth
8. 0511.10 Frozen animal semen Ministry of
AgricultureHealth
9. Chapter 2 Fresh chilled and frozen
meatMinistry of
AgricultureHealth
10. 1509 Olive oil Ministry of
AgricultureSocial
11. Chapter 93 All kinds of arms and
ammunitionMinistry of Interior,
Public Security Dept.
(PSD)National securityWT/ACC/JOR/33
WT/MIN(99)/9
Page 21
HS Code Product Party Granting
ApprovalJustification
12. 36.01
36.02
36.03
36.04All kinds of explosives PSD National Security
13. 82.11 Pen knives and similar
articlesPSD National Security
Public order
14. 95.01 Children automobile
toys operated with fuelPSD Safety
15. 9503.20 Remote control and toy
aeroplanesPSD Safety
16. 95.04 Electrical and electronic
video games machinesPSD Public moral
17. 85.43 Self-defence electrical
equipmentPSD National Security
Public order
18. 28.44 Radio-active materials
and uraniumMinistry of Energy &
Mineral ResourcesNational Security
HealthSafety
Environment
19. 85.25 Wireless transmitters
and receiversTelecommunications
RegulatoryCommission (TRC)National  Security
SafetyHealth
20. 85.31 Wireless alarm
equipmentTRC National Security
Health
21. 8543.209
8526.92All kinds of remote
control equipment
(except those for
television and video)TRC National Security
Safety
Health
22. 8526.91 Radar apparatus TRC National Security
Safety
Health
23. 85.25 Transmission and
reception stationsTRC National Security
Safety
Health
Environment
24. 85.25.201 Cellular telephone
systemsTRC National Security
Safety
Health
Environment
25. 85.17.11 Cordless telephones TRC National Security
Health
26. 8518.10 Cordless microphones TRC National Security
Health
27. 85.17 Electrical equipment for
line telephony and
telegraphyTRC Safety
Environment
28. 8543.899 Decoders TRC National Security
HealthWT/ACC/JOR/33
WT/MIN(99)/9
Page 22
HS Code Product Party Granting
ApprovalJustification
29. 85.29
8529.101
8543.891Satellites TRC National Security
Safety
Health
30. 90.09 Coloured photocopying
machinesCentral Bank of
JordanNational Security
31. 29.41
30.02
30.03
30.04Medicaments,
antibiotics, human
blood, vaccinesMinistry of Health
(MOH)Health
32. 2106.90 Food preparations used
by athletesMOH Health
33. 2827.51 Bromides of potassium MOH Health
34. 13.02 Food colourings MOH Health
35. 68.11 Sheets and pipes of
asbestosMOH Health
36. 04.02
2106.90Milk and foods for
childrenMOH Health
37. 21.05 Ice cream and other
edible iceMOH Health
38. 84.70 Postage franking
machinesMinistry of Post and
CommunicationsNational Security
39. 2903.4
2903.46Halogenated derivatives
of hydrocarbonsPublic Corporation for
Protection of the
EnvironmentSafety
Environment
40. 2903 Frion gas Public Corporation for
Protection of the
EnvironmentSafety
Environment
41. 8430.4 Boring machinery for
waterMinistry of Water &
IrrigationConservation of Natural
Resources
42. Chapters
61+62Military clothing General Command of
the Armed ForcesNational Security
81. Import licenses were required for goods (i) originating in countries and territories which had
trade agreements and protocols with Jordan, i.e. Bahrain, Egypt, Iraq, Israel, Kuwait, Lebanon, Libya,
Morocco, Oman, Palestinian Authority, Saudi Arabia , Sudan, Syria, Tunisia, United Arab Emirates
and Yemen;  (ii) imported by banks, companies under establishment, farms, handicraft businesses,hospitals, hotels, newspapers, religious, scientific and charitable organizations;  (iii) imports by
individuals for personal, non-commerci al use;  (iv) goods, neither prohibited nor restricted and whose
total value exceeded JD 2,000, brought into the country by passengers;  (v) imports of companies,
organizations and individuals registered with official bodies to establish development projects in
Jordan;  (vi) imports by foreign contractors and companies including their branches registered in
Jordan as foreign entities;  and (vii) imports by foreign entities permitted to operate a resident branch
in Jordan to conduct business outside Jordan and non-Jordanian individuals working in media
establishments.  Product-specific import licences were required for the items listed in Table 6.  The
import licences were maintained for statistical pu rposes and to administer the tariff exemptions
provided under the respective agreements.WT/ACC/JOR/33
WT/MIN(99)/9
Page 23
Table 6:  Import licences
HS Code Item
ex 19.05 Biscuits
ex 87.03 Used vehicles
ex 2201.10 Mineral water
ex 84.18 Refrigerators
ex 84.18 Freezers
84.14.30 Compressors
ex 04.02 Milk for industrial use
ex 40.12 Used automobile tires
ex 85 Used electronic equipment
82. The representative of Jordan said that import licences were issued free of charge, and most
Ministries did not charge fees for the issuance of prior approvals.  Legislation on prior approvals,which varied from one institution to another, did not stipulate any time-limit for the issuance of prior
approvals.  The process could therefore take from one day to one year, provided all required
documentation had been submitted.  In certain cases (arms, ammunition, explosives and pen knives),
only licensed importers could apply for prior approvals.   In general, the main determinant in granting
prior approval was the nature of the product and its impact on health, safety, the environment, nationalsecurity, public order and morals, and the conservation of natural resources.  Imports of chemical
products were subject to general safety conditions, i.e. availability of appropriate storage facilities and
proper procedures for the transportation, handling and labelling of products.  Telecommunications
equipment and toys were checked or subject to laboratory tests to ensure that they would not threaten
national security, health, safety, or the environment.  Asked whether Jordan provided an opportunityfor other countries to comment in writing on new procedures, or products to be added to the list of
goods subject to prior approval, he replied that there were no restrictions on other countries providing
written comments.
83. Some members noted that Jordan applied quantitative restrictions and import licensing which
could not be justified as exceptions to the requirements of GATT Article XI.  Some of the measuresalso appeared to violate GATT provisions on MFN and national treatment.  Jordan was requested to
eliminate or amend these measures prior to accession.  The representative of Jordan stated that Jordan
intended to conform to Article XI of the GATT 1994 no later than upon accession, and that Jordan
would eliminate or amend all restrictions which were inconsistent with Article XI before the end of
1999.  His Government was reviewing the list of products subject to prior approval, and wouldeliminate those items that could not be justified under WTO rules by the date of accession.
Legislation to bring the current regime into full conformity with WTO requirements would be enacted
prior to accession.
84. The representative of Jordan provided a report on import/export licensing in document
WT/ACC/JOR/28, including a detailed proposal for the application of a new licensing regime.  He
proposed to eliminate the current system of licensing and prior approvals and replace it with an
automatic and non-automatic import licensing regime in accordance with the WTO Agreement onImport Licensing Procedures.  Non-automatic licenses would be applied in accordance with the
provisions of Article 3 of the Agreement on Im port Licensing Procedures, and would be required to
regulate (i) quantitative restrictions (e.g. quotas) in accordance with the Agreement on Safeguards and
Article XIX of the GATT 1994, or in accordance w ith Article XII and Article XVIII of the GATT
1994, and the Understanding on Balance-of-Payments Pr ovisions of the GATT 1994;  (ii) importation
of goods likely to cause threat to safety, environment, health, national security, public order and
moral;  and (iii) goods having an impact on the conservation of natural resources (for example, water).
Imported used electronic goods would be provided national treatment in accordance with Article III ofWT/ACC/JOR/33
WT/MIN(99)/9
Page 24
the GATT 1994 following customs clearance.  Only three types of "used" goods (used electrical
equipment, used tires and used photocopiers) would be subject to non-automatic import licensing.
Used goods were usually not accompanied by catalogues or warranties.  The main purpose of non-
automatic licensing on these two types of goods wa s to obtain information from the importer on the
condition of such goods given the health, safety and environmental concerns associated with these
products.
85. Automatic licensing would be applied for administrative and statistical purposes, such as the
monitoring of trade flows and collection of statistics, in accordance with the provisions of Articles 1
and 2 of the Agreement on Import Licensing Procedures.  Automatic licences would be issued within
a maximum of ten working days after submission  of all relevant documentation, as required under
Article 2.2.(a)(iii) of the Agreement.  Automatic import licenses would be required for goods subjectto the provisions of trade protocols (currently applied to Syria for a specific list of items);  dairy
products (HS Chapter 4) and fresh fruits and vege tables (Chapters 7 and 8) imported from counties
with which Jordan has trade agreements;  and for th e goods listed in Table 7.  Non-automatic licenses
would be issued for the protection of health, safety, environment, national security, public order and
moral, and the conservation of natural resources for products listed in Table 8.  He confirmed thatimportation of such goods were not subject to quantitative restrictions at present.
Table 7:  Goods Subject to Automatic Import Licensing
HS Code Item Line Authority
Ex 19.05.30 Biscuits Ministry of Industry and Trade (MIT)
ex 22.01.10 Mineral water MIT
25.01 Table salt MIT
10.06 Rice MIT
11.01 Wheat flour and other wheat
productsMIT
17.01 Sugar MIT
10.01 Wheat MIT
10.03 Barley MIT
10.05 Corn MIT
24.02.20 Cigarettes MIT
Ex 97.05.00 Stuffed wild animals Ministry of Agriculture
20.02.90 Tomato paste Ministry of Agriculture
15.09 Olive oil Ministry of Agriculture
29.03.4 Halogenated derivatives of
hydrocarbonsPublic Corporation for Protection of the
Environment
Ex84 and ex85 New electric equipment MIT
85.25.10
85.25.20Wireless transmitters and receivers;
transmission and reception stationsTelecommunications Regulatory
Commission (TRC)
85.25.201 Cellular telephone systems TRC
85.43.20985.26.92All kinds of remote control
equipment (except those for
television and video)TRCWT/ACC/JOR/33
WT/MIN(99)/9
Page 25
Table 8:  Goods Subject to Non-Automatic Import Licensing
HS Code Item Justification Line Authority
Ex 40.12 Used automobile tires Safety MIT
Ex 84 and ex 85 Used electric equipment Health, safety
and environment MIT
ex90.09 Used photocopiers (more
than three years old)Health and safety MIT
04.02 Milk for industrial use Health MIT
Chapter 1 Live animals Health Ministry of Agriculture
0511.10 Frozen animal semen Health Ministry of Agriculture
Chapter 2 Fresh chilled and frozen
meatHealth Ministry of Agriculture
Chapter 31 Fertilizers  Environment Ministry of Agriculture
38.8 Insecticides, fungicides,
herbicides, disinfectorsHealth and
environmentMinistry of Agriculture
12.09 Seed and fruits, used for
sowingPlant health Ministry of Agriculture
30.03
30.04Veterinary medicines Animal health Ministry of Agriculture
Chapter 93 All kinds of arms and
ammunitionNational security Ministry of Interior, Public
Security Department (PSD)
36.0136.0236.03
36.04All kinds of explosives National security PSD
82.11 Pen knives and similar
articlesNational security
Public orderPSD
95.01 Children automobile toys
operated with fuelSafety PSD
95.03.90 Remote control and toy
airplanesSafety PSD
95.04.10 Electrical and electronic
video games machinesPublic moral PSD
85.43 Self-defense electrical
equipmentNational security
Public orderPSD
Ex 28.34.299 Ammonium Nitrates National security
Public orderPSD
28.44 Radio-active materials
and uraniumNational security
Health
Safety
EnvironmentMinistry of Energy & Mineral
Resources
85.31 Wireless alarm
equipmentNational security
HealthTRC
85.26.91
85.26.10Radar apparatus National security
Safety
HealthTRC
85.17.11 Cordless telephones National security
HealthTRC
8518.10 Cordless microphones National security
HealthTRCWT/ACC/JOR/33
WT/MIN(99)/9
Page 26
HS Code Item Justification Line Authority
85.17 Electrical equipment for
line telephony and
telegraphySafety
EnvironmentTRC
85.43.899 Decoders National security
HealthTRC
85.29.101
85.43.891Satellites National security
SafetyHealthTRC
90.09 Colour photocopying
machinesNational security Central Bank of Jordan
29.41
30.02
30.0330.04Medicaments, antibiotics,
human blood, vaccinesHealth Ministry of Health (MOH)
21.06.90 Food preparations used
by athletesHealth MOH
28.27.51 Bromides of potassium Health MOH
33.02 Food colourings Health MOH
68.11 Sheets and pipes of
asbestosHealth MOH
04.02
21.06.90
1901.10
1901.90Milk and foods for
childrenHealth MOH
21.05 Ice cream and other
edible iceHealth MOH
84.70.90 Postage franking
machinesNational security Ministry of Post and
Communications
29.03.4 Frion gas Safety
EnvironmentPublic Corporation for
Protection of the Environment
84.30.4 Boring machinery for
waterConservation of
NaturalResourcesMinistry of Water & Irrigation
Chapters 61 and
62Military clothing National security General Command of the
Armed Forces
86. The representative of Jordan said that any reas on for the refusal of a license would be in full
conformity with the requirements of the Agreement on Import Licensing Procedures, in particular
Articles 1.6, 1.7 and 1.8, as well as with all other requirements of the WTO Agreement.  The issuingauthority would be entitled to cancel an import licence and refund the fees if importation of goods
were to become prohibited, or restricted to a specific entity.  However, for the entire period that an
import or export licence remained in force, the rights of any trader would not be revoked on the
grounds that exclusive trading rights in relation to the product or products concerned were being
accorded to another entity.  Licences could also be cancelled in emergency situations, such as thespread of disease in a specific country.  The circumstances leading to such cancellations would be
defined more closely in the implementing regulations to the Law on Imports.  He confirmed that
Jordan's amended legislation, regulations and instructions would be notified to the Committee on
Import Licensing procedures for examination, together with the questionnaire on import licensing
procedures, in accordance with the notification time table presented in document WT/ACC/JOR/31.WT/ACC/JOR/33
WT/MIN(99)/9
Page 27
87. A member sought clarification of the objective of the import licensing requirements applied to
milk for industrial purposes.  The representative of Jordan replied that such requirements were applied
to prevent deceptive practices and considered the measure to be in conformity with Article 2.2 of the
WTO Agreement on Technical Barriers to Trade.  Th e member rejoined that the risks associated with
the non-fulfilment of this objective were not clear, and hence it was not clear how such a measure
should be considered necessary to prevent deceptive practices and why it was in conformity with
Article 2.2.  This member also stated that the measur e appeared to be used to provide protection to the
domestic dairy industry, and considered that such a measure could not be in conformity with
Articles III:4 and XI:1 of GATT 1994, as well as with Article 2.2 of the WTO Agreement on
Technical Barriers to Trade.
88. The representative of Jordan confirmed that Jordan would, from the date of accession,
eliminate and shall not introduce, re-introduce or apply quantitative restrictions on imports, or other
non-tariff measures such as licensing, quotas, bans, permits, prior authorization requirements,
licensing requirements and other restrictions having equivalent effect that cannot be justified under
the provisions of the WTO Agreement.  Any further amendments to the import licensing regime after
accession would be fully in accordance with all relevant provisions of the WTO, including theAgreement on Import Licensing Procedures.  Jordan would replace non-automatic import licensing
with automatic import licensing for "milk for industri al use" within 3 years from the date of accession.
He further confirmed that the legal authority of the Government of Jordan to suspend imports and
exports or to apply licensing requirements that could be used to suspend, ban, or otherwise restrict the
quantity of trade will be applied from the date of accession in conformity with the requirements of theWTO, in particular Articles XI, XII, XIII, XVIII, XIX, XX and XXI of the GATT 1994, and the
Multilateral Trade Agreements on Agriculture, Application of Sanitary and Phytosanitary Measures,
Import Licensing Procedures, Safeguards and Technical Barriers to Trade.  The Working Party took
note of these commitments.
Customs valuation
89. A member stated that it considered the Customs Valuation Agreement a fundamental
component of the Uruguay Round Agreement.  This member encouraged Jordan to incorporate the
WTO Customs Valuation Agreement into its legislation as soon as possible and certainly no later than
the date of accession.
90. The representative of Jordan said that the 1998 Customs Law, which was based on the WTO
Customs Valuation Agreement, included provisions on customs valuation in its Articles 28 to 32.  The
Law required valuation based on self-declaration by importers, and stipulated that the transactionvalue, rather than the "normal" value be used for customs valuation purposes.  Customs duties were
calculated on the basis of the c.i.f. value of imports on the registration date of the customs valuation
form.  In mid-1996, a reference price database for valuation of goods had been initiated by customs,
but this database no longer existed.
91. The Customs Law No. 20 of 1998 conformed largely to the WTO Customs Valuation
Agreement.  The Law contained a definition of relate d persons similar to that of Article 15.4 of the
Customs Valuation Agreement, except that Jordania n Law limited family relation to third degree.  He
confirmed that the Customs Law incorporated the Article 5.2 valuation method, and that customs
practices would comply with Article 5.2 of the Cust oms Valuation Agreement.  The right of further
appeal (beyond the Customs Court) was guaranteed by Law, and he considered Article 80 of theCustoms Law, which stipulated that a decision of the Director General of the Customs Department
could be contested at the Customs Court within 15 days, would meet the requirements of Article 11.3
of the Customs Valuation Agreement.  He considered the confidentiality provision in Article 10 of the
Agreement to be covered by Article 175 of the Cust oms Law.  A provision on the valuation of lost orWT/ACC/JOR/33
WT/MIN(99)/9
Page 28
damaged goods would be addressed in instructions of the Minister of Finance, which would also be
issued to incorporate the interpretative notes in Jordanian legislation.
92. A member requested that Jordan provide th e regulations implementing the Interpretative
Notes to the WTO Valuation Agreement, stressing that Article 14 of the WTO Valuation Agreement
which incorporated the Interpretative Notes as an integral part of the Agreement and the Articles of
the Agreement could not be read and applied without reference to the respective Interpretative Notes.
This member also sought verification of Jordan's  implementation of Decisions 3.1 (software) and 4.1
(treatment of interest charges) of the Committee on Customs Valuation and confirmation by Jordan
that (i) Articles 1(d) and 1.2(a) of the WTO Valuation Agreement concerning related parties had been
fully implemented in Jordan's Customs Law;  (ii) Jordan would eliminate the inconsistency identified
in their deductive value provision in the Amendments to the Customs Law;  (iii) Article 31C(i)concerning implementation of other provision was designed to cover the regulations, i.e. the
Interpretative Notes, software decision and interest decision;  and (iv) that Jordan would implement a
provision to cover fully the confidentiality requirement of Article 10 of the WTO Valuation
Agreement.
93. The representative of Jordan replied that a review of the Customs Law No. 20 had been
completed in March 1999, and Jordan had prepared draft amendments to address these points and
ensure full conformity with the WTO Customs Valuation Agreement (to be submitted to Parliament in
November 1999).  He confirmed that Article 1(d) and Article 1.2(a) of the Agreement concerning
related parties had been fully implemented in Jordan's Customs Law, and Article 31C(i) concerning
implementation of other provision was designed to cover the regulations, i.e. Interpretative Notes,software decision and interest decision.  Jordan was preparing "Instructions on Implementing
Customs Valuation", addressing the interpretative notes and the valuation of software and interest
charges.  These instructions would be adopted upon enactment of the Amendments to the Customs
Law.
94. The representative of Jordan confirmed that Jordan would fully apply the WTO provisions
concerning customs valuation from the date of accession without recourse to a transition period,
including the Agreement on the Implementation of Article VII of the GATT 1994.  In this regard, the
Customs Law and its implementing regulations incorporated Annex I (Interpretative Notes) and
provisions for the Valuation of Carrier Media Bearing Software for Data Processing Equipment
(Decision 4.1).  The Working Party took note of these commitments.
Rules of origin
95. The representative of Jordan said that the 1998 Customs Law (Articles 24-27) provided the
legal framework for the application of rules of origin.  A certificate of origin indicating the initial
origin was required for imported products from all countries.  The certificate should be issued by an
authorized body in the exporting country.  The authorized body, for example a Ministry, Chamber of
Commerce or Chamber of Industry, should be ac knowledged by the World Customs Organization.
96. For products exported from Jordan, the Chamber of Industry issued certificates of origin for
licensed factories.  The Industrial Development Directorate in the Ministry of Industry and Trade
checked the certificate, i.e. whether the factory existed and the products were made in the factory, and
whether the local manufacturing percentage complied with the minimum stipulated in the bilateral
agreement.
97. Jordan's preferential rules of origin depended on the bilateral agreement with each country,
and were essentially based on the value added or local content.  The principle of minimum 40 per cent
value added was applied in trade arrangements with Arab countries, and 35 per cent in trade with
Israel.WT/ACC/JOR/33
WT/MIN(99)/9
Page 29
98. The representative of Jordan said that Jordan planned to adopt the Harmonized Rules of
Origin once finalized by the WTO in co-operation with the World Customs Organization.  Jordan
would ensure conformity with the Agreement on Rules of Origin as soon as the Harmonized Rules of
Origin had been finalized.
99. Having reviewed Jordan's existing legislation, a member  said that Articles 24-27 of the
Customs Code were inadequate in addressing the provisions of the Agreement on Rules of Origin.
Jordan was requested to develop legislation establishing rules of origin based on international norms.In reply, the representative of Jordan said that Jordan was preparing draft amendments to the Customs
Law No. 20 to ensure conformity with the WTO Rules of Origin (to be submitted to Parliament in
November 1999).
100. The representative of Jordan stated that, from the date of accession, Jordan's preferential and
non-preferential rules of origin would comply fully with the WTO Agreement on Rules of Origin.
The requirements of Article 2(h) and Annex II, Paragraph 3(d) of the Agreement would also be fully
implemented prior to accession.  He also stated that in any event, from the date of accession, Customswould provide an assessment of the origin of th e import upon the request of an exporter, importer or
any person with a justifiable cause.  Any request for such an assessment would be accepted even
before trade in the goods concerned began.  Any such assessment would be binding for three years.
The Working Party took note of these commitments.
Other customs formalities
101. The representative of Jordan said that the Government had implemented a scheme permitting
ISO 9000 certified industries to benefit from a "Green Channel" for imports of materials, equipment
and components used in the production of exports.  The green channel involved acceptance of
invoices presented by exporters on the basis of trust, with reliance on ex-post random auditing of
factory premises.  A feasibility study had been undertaken to prepare the implementation of x-rayinspection services on all border crossing points to facilitate the inspection of lorries, trucks and
tankers.
Preshipment inspection
102. The representative of Jordan said that Jordan did not have a system of preshipment inspection,
and did not intend to establish such a system in the foreseeable future.
103. The representative of Jordan stated that if Jord an in the future engaged the services of a pre-
shipment inspection service provider Jordan would ensure that the requirements of the Agreement on
Preshipment Inspection were implemented in full.  He confirmed that Jordan would ensure that the
operations of any such preshipment inspection firm would meet WTO norms, including the
establishment of charges and fees consistent with Article VIII of the GATT 1994, observance of due
process and the transparency requirements of the relevant WTO Agreements, in particular Article X
of the GATT 1994, the Agreement on Preshipment Inspection and the Agreement on theImplementation of Article VII of the GATT 1994, as well as the substantive provisions of these
Agreements.  The Working Party took  note of these commitments.
Anti-dumping, countervailing duties, safeguard regimes
104. The representative of Jordan said that Jordan had enacted the National Production Protection
Law ("the Law on Safeguards") on 1 October 1998 (a detailed comparison between the provisions ofthe Law and the Agreement on Safeguards is pr ovided in document WT/ACC/JOR/18, pp.33-42).  He
added that, in order to implement the Law, Article 14 of the Law required the Council of Ministers to
issue a regulation covering the (i) fees to be collected from petitioners for protection;  (ii) conditionsWT/ACC/JOR/33
WT/MIN(99)/9
Page 30
to be fulfilled by protection petitioners, as well as details about the evidence and documents to be
submitted with the petition;  (iii) procedures for investigating the petitions and the scope of the
investigations;  (iv) matters to be addressed by the report including the recommendation to the
Minister regarding the protection petition;  and (v) the maximum period for applying the protectionmeasures as well as the procedures and conditions pertaining to any extension or re-imposition of
such measures.  Jordan was in the process of drafting these regulations.  He added that 17 petitions
had been filed with the Ministry of Industry and Trade since the Law had entered into force in
December 1998.  No decisions had been taken regarding any of these cases.
105. A member was concerned that Jordan's Safeguard Law might not fully reflect WTO
provisions concerning safeguards, anti-dumping, and countervailing duties, and sought a commitment
from Jordan not to apply any such measures until WTO-consistent legislation had been put in place.Should Jordan be unable to complete the implementation of WTO-consistent legislation by the date of
accession, this member requested the Government of Jordan to commit to refrain from imposing any
anti-dumping, countervailing or safeguard measures until WTO-consistent legislation had been
enacted and properly notified to the appropriate WTO Committees.
106. In reply, the representative of Jordan said that the National Production Protection Law had
been enacted, published in the Official Gazette and forwarded to the WTO Secretariat.  Jordan was
preparing regulations to implement the Agreement on Subsidies and Countervailing Measures and the
Agreement on Implementation of Article VI of the GATT 1994 (anti-dumping).  Jordan was
reviewing the National Production Protection Law and the draft anti-dumping and countervailing duty
legislation to ensure their conformity with the provisions of the relevant WTO Agreements.
107. The representative of Jordan said that  Jordan would not apply any anti-dumping,
countervailing or safeguard measure to imports from WTO Members until it had notified and
implemented appropriate laws in conformity with the provisions of the WTO Agreements on the
Implementation of Article VI, on Subsidies and Countervailing Measures and on Safeguards.  He
confirmed that Jordan would ensure that such legislation would be in full conformity with the relevantWTO provisions, including Article VI and XIX of the GATT 1994 and the Agreement on the
Implementation of Article VI, the Agreement on Subsidies and Countervailing Measures and the
Agreement on Safeguards.  After such legislation was implemented, Jordan would only apply any
antidumping duties, countervailing duties and safeguar d measures in full conformity with the relevant
WTO provisions.  The Working Party took note of these commitments.
2. Export regulation
Customs tariffs, fees and charges for services rendered, application of internal taxes to exports
108. The representative of Jordan said that a certifi cate of registration of the enterprise was the
only requirement for engaging in exporting.
109. Asked to list all charges on exports - whether called fees, taxes or tariffs – the representative
of Jordan said that exports to Syria and Iraq were licensed and subject to JD 2 stamp duty, collected
by the Ministry of Industry and Trade.  The Customs Authority collected a fee of JD 25 per ton onexports of scrap and waste of iron, brass and aluminium.  Export fees collected by the Natural
Resources Authority are listed in Table 9, and fees on exported agricultural products collected by the
Ministry of Agriculture are listed in Table 10.  The Jordan Export Development Corporation (JEDCO)
also charged fees for services provided to exporters under the trade agreements with Lebanon, Libya
and Saudi Arabia.  JEDCO charged 1 per cent on all transactions with Libya, and on certain goodstraded with Lebanon (1 per cent) and Saudi Arabia (0.25 per cent).WT/ACC/JOR/33
WT/MIN(99)/9
Page 31
Table 9:  Export fees on mining and quarry products
Product Fee (JD per ton)
Crushed stones 0.2
Building stones 0.3
Marble and granite 1.0
Travertine and marble crushes 0.5
Crude xyolite 1.0
Clay, clay derivatives and kaolin 0.5
Tripine biototite and diatomite 0.3
Silicate, gypsum, pure limestone, feldspar, volcanic turf and
bituminous mineral oil0.2
Dolomite and basalt 0.1
Table 10:  Fees on exports of agricultural products
Type of fee Amount (fils)
1. Fumigation of consignments 250f/ton
2. Inspection and checking 250f/ton
3. Inspection of live animals:
Bovines, camels and pigs 50 f/head
Horses 50 f/head
Sheep, goats and deer 20 f/head
Cats, dogs and wild animals 100 f/head
Birds 20 f/bird
4. Animal interdiction fees/quarantine
Bovines, camels and pigs 80 f/head
Horses 90 f/head
Sheep, goats and deer 20 f/head
Cats, dogs and wild animals 100 f/head
Birds 20 f/bird
5. Animal watering
Camels, horses, bovines and big animals 10 f/head/day
Sheep, goats and small animals 5 f/head/day
6. Disinfection fees:
Ships transport 1-100 head JD 2
Ships transport 1,000 tons. JD 3
Ships transport 4,000 tons. JD 5
Ships transport more than that JD 7
Any other vehicles JD 0.5 each
110. A 2 per cent inspection fee, which the representative of Jordan considered a fee for services
rendered, was levied on re-exported foreign goods.  For imported goods undergoing some additional
processing in Jordan, the value added would need to be 40 per cent or more for a product to be
considered a Jordanian export.  Exempt from the fee were exports by diplomatic missions and their
staff;  personal belongings;  articles exempt from import customs duties;  used household furniture;
project machinery and equipment imported on a temporary basis;  foreign goods re-exported directly
from stores and warehouses;  and any item exempt by decision of the Council of Ministers uponWT/ACC/JOR/33
WT/MIN(99)/9
Page 32
recommendation from the Minister of Finance.  Re-exported goods were also subject to customs
overtime fees (0.2 per cent of the declared value).
111. The representative of Jordan said that the 2 per cent fee on re-exported foreign goods would
be eliminated upon enactment of amendments to the Law on Unifying Taxes and Duties No. 7 of1997 in January 2000.  In the future, Customs would charge a flat fee of JD 15 per transaction for
export processing, and JD 20 per transaction for goods in transit.  In his view, these fees equalled the
approximate cost of the services rendered.  The overtime fee would be converted into a JD 15 export
processing fee through the Amendments to the Customs Law No. 20 of 1998.  The mining fee was
considered an export duty and would continue to ap ply.  In response to questions by a member, the
representative of Jordan confirmed that all imports and exports would be subject to import and export
processing fees, respectively, and that the revenues from these fees would only be used to support theoverall customs operations and infrastructure conne cted with customs processing of imported and
exported goods in accordance with Article 161D of the Customs Law.
Export restrictions
112. The representative of Jordan said that products of Jordanian origin generally did not require
export licenses.  A licence was required for exports to protocol trade countries for consignments of avalue exceeding JD 1,000 irrespective of origin, i.e. Jordanian or foreign.  Export licences were
required in trade with Syria and Iraq as Jordan was committed to certain banking arrangements in
transactions with these countries.  Exports to other countries were exempt from the export licence
requirement by virtue of by-law No. 74 of 1993 for Exports and Imports.  A licensing requirement for
re-exported foreign goods of a value exceeding JD 1,000 had been abolished.
113. Some products were subject to prior approval before exportation (Table 11).  These approvals
were in themselves considered export licences.
Table 11:  Exports subject to prior approval (prior to accession)
Product Institution granting approval
Wheat Ministry of Industry and Trade
Wheat flour and other wheat products (semolina, bran,
broken wheat)"
Sugar "
Rice (ordinary brand) "
Milk for industrial use "
Ewes and cows Ministry of Agriculture
Precious metals, including gold and silver bullion and coins Central Bank of Jordan
Marble slabs Natural Resources Authority
Broken marble "
Mineral ores "
Radioactive materials and sources, and exhausted uranium "
Fresh fruit and vegetables destined to protocol trade
countriesAgricultural Marketing Organization
114. Some members questioned whether the prior approval system was consistent with GATT
Article XI.  In reply, the representative of Jordan said that most of the products subject to such
approval prior to exportation were strategic food products.  The system was being phased out, andwould with time be brought in line with the requirements of GATT Article XI.  Prior approvals had
been eliminated for Halibuna (milk) and precious metals (including gold and silver bullion and coins).WT/ACC/JOR/33
WT/MIN(99)/9
Page 33
115. The representative of Jordan outlined a new export licensing regime in his report on
import/export licensing (document WT/ACC/JOR/28).  Existing prior approvals of exports would be
eliminated and replaced by automatic export licensing for the items listed in Table 12.  Jordan planned
to eliminate sugar, macaroni and vermicelli, and rice from export licensing.  In addition, Jordan wouldmaintain automatic export licence requirements on all products exported to Iraq and Syria from the
date of accession.
Table 12:  Goods Subject to Automatic Export Licensing
HS Code Item Line Authority
10.01 Wheat MIT
11.01 Wheat flour and other wheat products (semolina,
bran, broken wheat)MIT
17.01 Sugar MIT
19.02.111
19.02.191Macaroni and vermicelli MIT
10.06.10
10.06.20Rice (ordinary brand) MIT
25.15 Marble slabs Natural Resources
Authority (NRA)
25.17.41 Broken marble NRA
Chapter 26 Mineral ores NRA
Ex Chapter 25 The argillaceous material extracted from the Dead
SeaNRA
28.44 Radioactive materials and sources, and exhausted
uraniumNRA
15.09 Olive Oil Ministry of Agriculture
Chapters 7 and 8 Fresh fruit and vegetables destined to protocol trade
countriesMinistry of Agriculture
116. The representative of Jordan confirmed that any export control requirements remaining in
place on the date of accession would be fully consistent with WTO provisions, including those
contained in Articles XI, XVII, XX and XXI of th e GATT 1994.  The Working Party took note of this
commitment.
Export subsidies
117. The representative of Jordan said that the Central Bank had operated an export promotion
facility since 1980.  The Central Bank refinanced export credits charging interest at 2 percentage point
below the prevailing discount rate.  Such refinancin g was available to any company registered in the
Jordanian Official Registry of Companies, thus any exporter, regardless of sector, could benefit from
the interest rate subsidies on loans granted by the Central Bank of Jordan.  The main objective of this
arrangement was to encourage banks to meet exporters' demand for credit.  The Central Bank
provided advances to authorized banks, i.e. all banks licensed to operate in Jordan, against export
letters of credit and bills for collection.  The maximum duration of advances extended against suchdocumentation was 9 months.  The maximum limit on pre-shipment credit amounted to 75 per cent of
the exporter's letter of credit, while post-shipment credit could be extended for up to 90 per cent of the
value of bills of lading and drafts.  Exported products were required to satisfy a local value added
criterion (minimum 25 per cent) to be covered by the scheme.  The interest and commission charged
on advances extended by licensed banks and financial institutions to exporters should not exceed
9.0 per cent annually.  The estimated total value of the subsidy facilities had declined from a high of
nearly JD 40 million in 1994 to less than JD 10 million in 1995.  A financing facility operated by theWT/ACC/JOR/33
WT/MIN(99)/9
Page 34
Industrial Development Bank for commodities stored for export purposes had been discontinued on
1 January 1997.
118. The Jordan Export Development and Commercial  Centres Corporation (JEDCO), originally
founded to execute trade protocols with Arab countries on behalf of the Government, had beenreorganized in 1995.  JEDCO - an autonomous non-profit organization owned by the Ministry of
Industry and Trade, the Jordan Federation of Chambers of Commerce and the Amman Chamber of
Industry - received no budgetary assistance from  the Government.  The Board of Directors,
comprising senior government officials, principals of the Kingdom's business organizations and
leading industrialists, appointed the General Manager.  The current functions of JEDCO were of
technical and promotional nature, principally assisting industrialists in upgrading products, adapting
to international standards and development of marketing and technical capabilities.
119. Firms manufacturing for exports were granted duty exemptions under a temporary entry
scheme.  The scheme applied to direct imports as well as to wholesale purchases from bonded
commercial warehouses.  A duty drawback arrangement allowed exporters to be refunded duty paid
on imported materials subsequently used in the production of exports.  The refund was calculated
according to a specific formula for each product.  The temporary entry and duty drawback systemshad been improved during 1996 through the introduction of computerization.
120. The representative of Jordan did not consider the import duty exemptions accorded to 10
companies (see "Tariff rate quotas, tariff exemptions") prohibited subsidies under the Agreement on
Subsidies and Countervailing Measures.  The beneficiaries were share holding companies with
significant private participation, thus item (d) of Annex I (Illustrative List of Export Subsidies) of theAgreement did not apply in this case.  He acknowledged that although the import duty exemptions
might be considered actionable subsidies under the Agreement, the purpose of these subsidies was to
encourage production and they were not intended to cause adverse effects to the interests of other
countries.  Moreover, the import duty exemptions were not contingent upon export performance or
import substitution.  Jordan would be ready to take appropriate action, including immediate
elimination or reduction of such subsidies, if other countries could prove in accordance with the
Agreement that such subsidies were causing injury to their industry.
121. The representative of Jordan said that, as a result of the negative effects of the Gulf War on
Jordan's economy and exports, his Government had decided in 1993 to encourage Jordanian producers
to diversify production and focus on non-traditional markets.  The Council of Ministers had
accordingly decided (Decision No. 3394 of 1994) to exempt from income tax profits of exports to
non-protocol countries and territories - i.e. all countries and territories except Israel, Lebanon,Palestinian Authority and Saudi Arabia - excluding traditional Jordanian export items such as
phosphates and potash.  The Arab countries trading with Jordan under bilateral and protocol trade
agreements, thus excluded from the tax-exemption scheme, accounted for around 45 per cent of
Jordan's exports.
122. The legal basis for exempting profits earned fro m exportation wholly or partly from income
tax was Article 3(c) of the Income Tax Law No. 57 of 1985 and its amendments.  The decision was
taken by the Council of Ministers upon recommendation of the Minister of Finance.  The income tax
exemptions were accorded to enterprises which could provide official documentation (e.g. customs
declarations) to the Income Tax Departments proving their export earnings.  He added that the Higher
Council for Investment had approved the establishm ent of Jordanian Export Companies specialized in
exportation of national products and goods.  These companies were also exempt from payment of
income tax.  According to Decision No. 12/11/4 of  30 December 1997 of the Council of Ministers, all
companies with a minimum paid capital of JD 2 million, registered in accordance with the Jordanian
Company Law and specialised in "external marketing, advertising and exporting local products" were
eligible to become Jordanian Export Companies.  The functions of these companies should be limitedWT/ACC/JOR/33
WT/MIN(99)/9
Page 35
to exportation, marketing, and promotion of Jordan ian products abroad.  The companies were required
to buy from local producers, and could not act as a paid agent only.
123. Some members noted that Jordan maintained measures which were not in conformity with the
WTO Agreement on Subsidies and Countervailing Measures.  Jordan’s interest rate subsidies forloans to promote exports and the income tax exemption for profits from exports, including for the
establishment of Jordanian Export Companies, would appear to be prohibited subsidies within the
meaning of Article 3 of the SCM Agreement.  These members sought the immediate elimination or
revision of the export subsidies programme.  Jordan was requested to provide a notification of the
remaining subsidies in place from previous use of the programme, and a specific commitment to
terminate all remaining such subsidies prior to 31 December 2002.
124. The representative of Jordan said that Jordan  recognized that its income tax exemption on
export sales was not in conformity with WTO requirem ents.  At present, Jordan maintained two types
of export subsidies.  The Income Tax Law No. 57 of 1985 and its amendments authorized the Council
of Ministers to grant partial or total exemptions from income tax for profits on certain exports.
Pursuant to this Law, a Decision (No. 3394 of 1994) had been issued exempting from income tax
profits on all exports (except phosphate and potash) to non-protocol countries and territories, i.e. allcountries and territories except Israel, Lebanon, Palestinian Authority and Saudi Arabia.  The other
form of export subsidy was the scheme whereby the Central Bank discounted commercial documents
to finance Jordanian exports at below-market interest rate.  Jordan had evaluated the Jordanian Export
Companies programme to determine whether or not it would fall under Article 3 of the SCM
Agreement, and the Council of Ministers had decided to eliminate the legal authority for establishingJordanian Export Companies in November 1999.  He added that no such companies had been
established.  Jordan planned to seek transition for phasing out prohibited subsidies (as defined in
Article 3 of the Agreement on Subsidies and Countervailing Measures) under Article 27 of the
Agreement on Subsidies and Countervailing Measur es.  Prohibited subsidies, granted prior to
repealing the laws authorising them, would remain valid for the duration agreed upon when they hadbeen granted.  A member held the view that Jord an was not automatically entitled to any phase-out
period for such subsidies, or to leave any provisions of them in place for the duration agreed upon
when they were granted after accession.
125. The representative of Jordan stated that the following programmes were export subsidies,
which met a definition of a prohibited subsidy within the meaning of Article 3 of the Agreement on
Subsidies and Countervailing Measures:  (i) the Income Tax Law No. 57 of 1985 and its amendments,
which authorized partial or total exemptions from income tax for profits on certain exports, andDecision No. 3394 of 1994 pursuant to this Law, which exempted from income tax profits on all
exports (except phosphate and potash) to non-protocol countries and territories, i.e. all countries and
territories except Israel, Lebanon, Palestinian Authority and Saudi Arabia;  and (ii) the discount
facility below the going interest rate for commercial documents operated by the Central Bank of
Jordan.  He confirmed that Jordan had taken appropriate legal measures in September 1999 (Councilof Ministers Decision No. 12-9-76) to eliminate these export subsidies by 31 December 2002.
126. The representative of Jordan confirmed that Jordan would eliminate the export subsidies
described in paragraph 125 by 31 December 2002.  He further confirmed that from the date of
accession, Jordan would not maintain nor introduce any other prohibited subsidies.  The
representative of Jordan stated that, in accordance with Article 28 of the WTO Agreement onSubsidies and Countervailing Measures, these two export subsidy programs would be notified upon
accession. 
 The Working Party took note of these commitments.WT/ACC/JOR/33
WT/MIN(99)/9
Page 36
3. Internal policies affecting foreign trade in goods
Industrial policy, including subsidies
127. The representative of Jordan said that industrial policy in Jordan had become market oriented,
rather than development oriented, since 1988.  The Government had reduced its involvement in andsupervision of industrial organizations.  The Minist ry of Industry and Trade assisted the development
of industry by (i)  helping to develop a business services sector responding to the increasing needs of
the industrial sector;  (ii) strengthening upstream and downstream industrial linkages;
(iii)  encouraging "package contracts" which fostered full capacity utilization at existing enterprises
and increasing trade opportunities in local and export markets;  and (iv)  promoting industrial
subcontracts and partnerships.
128. The Central Bank had allocated JD 10 million in 1994 and a JD 5 million credit ceiling in
1995 to finance new industrial projects and expansion of existing enterprises.  The loans were granted
through the Industrial Development Bank as medium term credit (maximum 5 to 7 years) at low rate
of interest (6 per cent).  The Industrial Development Bank charged the lenders an annual interest
margin and commission of 2.5 per cent for its services.
129. Concerning adjustment measures in the energy sector, the representative of Jordan said that
the Jordan Electricity Authority (JEA) had been transformed into a public share holding company
(NEPCO) in 1996.  The company was 100 per cent owned by the Government and operated on a
commercial basis.  Private sector investment in electricity generation was permitted.  The Ministry of
Energy and Natural Resources (MEMR), assisted by an international consulting firm, was studying
the establishment of the first Independent Power Project in Jordan.  An independent and transparentregulatory commission would be established to regulate the power sector, including electricity
pricing.
130. In the oil and gas sector, the National Resources Authority (NRA) had been partly
transformed into a national company for exploration and drilling in 1995.  The National Petroleum
Company, formed in part with assets separated from the NRA, held a concession on the gas-producingRisha area.  NPC's drilling operations had been separated into a new private company in conformity
with the Council of Ministers' Resolution of 4 October 1997.  The NRA was authorized to negotiate
joint ventures with international companies to generate investment.
131. The representative of Jordan confirmed that upon accession any subsidy programmes with the
exception of those noted in paragraph 125 of this Report would be administered in conformity with
the Agreement on Subsidies and Countervailing Measures.  All necessary information on such
programmes would be notified upon accession to the Committee on Subsidies and CountervailingMeasures in accordance with Article 25 of the Agreement.  The Working Party took note of this
commitment.
Technical barriers to trade, sanitary and phytosanitary measures
(a) Standards and certification
132. The representative of Jordan said that the Jordan Institution for Standards and Metrology
(JISM) was the official body for the preparation and publication of Jordanian Standards.  JISM had
been established in 1995 by virtue of the Standards and Metrology Law No. 15 for 1994, and was the
legal and actual successor of the Jordanian Directorate of Standards (founded in 1972).  The main
tasks of JISM were to (i) prepare, approve, revise and amend Jordanian mandatory or voluntary
standards and monitor their application;  (ii) main tain a national system for metrology and supervise
its implementation;  (iii) grant quality marks and certificates of conformity;  (iv) control, test andWT/ACC/JOR/33
WT/MIN(99)/9
Page 37
hallmark the approved fineness of precious metals and jewellery;  (v) adopt and approve standards of
other countries and of Arab, regional and international organizations, provided that such standards
were issued in Arabic or English;  and (vi) to cooperate and coordinate with Arab, regional and
international institutions in the area of standardization and metrology.  JISM was a participatingmember of the Arab Organization for Industrial De velopment and Mining (AIDMO), a corresponding
member of the International Organization for Sta ndardization (ISO), a corresponding member of the
International Organization for Legal Metrology (OIML), and a contact point for the Codex
Alimentarius Commission.  The Jordan Quality Mark was a voluntary certification system, granted
upon request.  Products for which the quality mark was sought were tested for compliance with
relevant Jordanian Standards.  The programme covered foodstuff, feeds, chemicals, soaps, detergents,
cosmetics, paints and varnishes, adhesives, pesticides, fertilizers, petroleum products, electrical andelectronic appliances, batteries, cables, telecommunication equipment, construction materials and
other consumable goods.  JISM was updating the current Quality Mark System to comply with the
requirements of ISO/IEC Guide 65.
133. Standards were elaborated in technical committees.  JISM circulated draft standards by mail
to interested parties such as the Chamber of Industry, the Chamber of Commerce, the ConsumerProtection Association, research institutions and testing laboratories, and relevant ministries, and
allowed a period of 60 days for comment (according to the draft instructions on Preparation of
Jordanian Standards, to replace Instructions No. 4:1995).  As of early 1998, JISM had begun
publication of a quarterly newsletter ("Standards and Metrology News") describing the status of
ongoing work on standards.  Interested parties c ould obtain copies of the standards work programme
from the JISM Information Centre (the TBT Enquiry Point from the date of accession).  Jordanian
standards, titles, numbers or bibliographic information were published in Arabic and English in the
Jordan Standards Catalogue.  Jordan was working constantly on harmonising its standards with
international standards.
134. Domestic and imported goods were required to meet national standards and technical
regulations applied to protect the health and ensure the safety of consumers.  The Ministry of Health
was responsible for technical regulations regarding drugs, including vaccines and sera for human use
and food, while technical regulations for veterinary medicines, sera, vaccines, pesticides, meat,
fertilizer, animal feed, and seedlings fell under the responsibility of the Ministry of Agriculture.
Inspections of food and agriculture products at the border were carried out by a committee comprising
officials from JISM, the Ministry of Health, the Mi nistry of Agriculture and the customs department.
Samples were tested at Ministry laboratories or other accredited laboratories to ensure they met the setstandards before being released from customs.  Jo rdan applied internationally recognized standards
when these were available.  He emphasized that only consignments containing products subject to
Jordanian mandatory standards were tested.
135. Asked whether Jordan had any automatic recognition procedures for imported products
manifestly conform to accepted international standards where Jordanian standards did not exist, therepresentative of Jordan said that samples of imported products, for which there was a Jordanian
mandatory standard, were subject to verification th rough laboratory testing in Jordan.  Testing was
conducted by laboratories accredited by JISM at the request of JISM.  Certificate of conformity was
not required.  No verification procedures were applied on imported goods if Jordanian standards did
not exist.  Jordan had no standards for medicines or medical equipment;  importers of such goodsprovided documentation indicating circulation of  the imported medical equipment in the country of
origin.  Importers of medicines were required to register the imported product at the Ministry of
Health (MOH).  Registration was based on manufacturer's specification and/or international standards
(e.g. USP, BP, EP, etc.).  Imported medicine was subject to laboratory analysis by MOH to ensure
conformity with the information provided at the time of registration.  No certification was required forimportation of medicine or medical equipment.  Ho wever, medicine containing materials of human
origin required certification from the health authority that each donor be tested free of HIV (1,2),WT/ACC/JOR/33
WT/MIN(99)/9
Page 38
HBs Ag and Hbc.  As for shelf-life requirements for drugs and vaccines, these were determined by the
Ministry of Health case-by-case in accordance with the stability study submitted by the manufacturer
of the product.
136. The representative of Jordan said that existing legislation and practices would need to be
changed to comply with the WTO TBT Agreement in  respect of the elaboration and implementation
of standards and mandatory requirements, border inspections and the establishment of a TBT enquiry
point.  The current Standards and Metrology Law addressed only standards, and did not cover
international guides and recommendations, although the Jordan Institute for Standards and Metrology
used such guides and recommendations as reference in the preparation of its regulations.  At present,
JISM issued both voluntary and mandatory standards.  The mandatory standards would need to be
replaced by technical regulations based on the protection of health, safety and environmental aspects.Most current Jordanian standards were based on descriptive characteristics rather than performance.
Article 11 of the Draft Law on Standards and Metrology stipulated that the Director General would
appoint a technical committee to revise existing standards.  Proposed drafts would be submitted to the
Board for adoption as standards or technical regulations.  Jordanian Standards were reviewed
continuously for the need to be updated according to the policy of the Standardization Department.All standards published before 1995 were mandatory.  As per November 1999, JISM had published
more than 210 voluntary standards (of a total 1,32 0 existing standards) since the enactment of the
Standards and Metrology Law No. 15 of 1994.  The current number of mandatory standards was
1,110.  The objective of JISM was to replace current mandatory standards with voluntary ones, or
with mandatory technical regulations consistent with the provisions of the WTO TBT Agreement, andJISM would need extensive technical assistance from WTO Members and other sources to accomplish
this goal as soon as possible.  JISM was at present assisted by the German GTZ project in this regard,
and had adopted the ZOPP methods for annual planning.
137. The representative of Jordan stated that Jordan's Standardization Department was gradually
reviewing the remaining 1,110 mandatory standards to replace them with voluntary standards or with
technical regulations, consistent with Article 2 of the TBT Agreement.  No less than one quarter of the
remaining standards would be converted each year after accession, and Jordan intended to complete
the process of conversion by 31 December 2003.  The Working Party took  note of this commitment.
138. Inspection procedures at the border would need to be streamlined.  Currently, each
consignment was tested to ascertain compliance with Jordanian mandatory standards regardless of
whether the product had already been subjected to any conformity assessment procedure.  JISM had
prepared a plan for product inspection to ensure that procedures would be simplified and no morerestrictive than necessary, and shortening the time period for inspection, sampling and testing.
According to this plan, JISM intended to (i) conso lidate testing activities;  (ii) reduce the time needed
for border inspection by 30 per cent by the end of 2001.  Customs centres would send samples taken
directly to the testing laboratories, and samples taken at the border would be given priority by the
testing laboratories;  (iii) accept foreign certificates of conformity, if issued by bodies recognized oraccredited by JISM;  (iv) establish sampling procedures in accordance with international standards;
(v) improve coordination between different inspection bodies in Jordan to avoid overlapping;  and (vi)
improve the capability of the inspection system in the Control Department of JISM by training of
staff, acquisition of international references on acceptable inspection procedures, and
computerization.  The TBT inquiry point would be established as a division within the informationcentre at JISM.  The inquiry point would collect all regulations affecting international trade from
other government institutions, and a mechanism would need to be devised to strengthen the
communication channels between the inquiry point and these institutions.  JISM had started work on a
survey of governmental institutions to strength en communication between the inquiry point and these
institutions.  In addition, JISM was preparing a web site for the Enquiry Point, providing access to therelevant government institutions for their contributions.  Moreover, Article 21 of the draft Law on
Standards and Metrology required all official bodies to respond within five days to requests fromWT/ACC/JOR/33
WT/MIN(99)/9
Page 39
JISM for all necessary information concerning technical regulations, conformity assessment
procedures and copies of such, thereby allowing JISM to respond to inquiries promptly.
139. The representative of Jordan said that Jord an was reviewing its current legal regime for
conformity with the TBT Agreement.  An overview of the existing regime and an action plan forimplementation of the TBT Agreement were provid ed in document WT/ACC/JOR/22 (Attachments A
and B).  Law No.15 on Standards and Metrology would be replaced by a new draft Law on Standards
and Metrology, to be adopted by Parliame nt during its Ordinary Session November 1999-
February 2000, to address TBT and SPS requirements (except seed control).  Jordan was ready to
implement fully the TBT Agreement upon accession provided that technical assistance and support
(including financial means) would be provided by WTO Members with regard to modernization of
testing laboratories in Jordan, border inspection, sampling procedures as well as training of personnel.The Jordanian Institute of Standards and Metrology would act as TBT enquiry point.  He added that
Article 18 of the draft Law on Standards and Metrology, to be enacted by the end of 1999, provided
for publication of a notice in JISM's newsletter of all proposed technical regulations and conformity
assessment procedures prior to adoption to perm it reasonable time for comments to be considered
before adoption of the final rule, as required in Article 2.9 of the TBT Agreement.  He added thatwhen adopting standards, Jordan would adhere to the Code of Good Practice (Annex 3 of the TBT
Agreement), incorporated by reference in Article 11.10 of the draft Law on Standards and Metrology,
which meant, in practice, that notice of a standard would be published at least 60 days prior to its
planned enactment to allow interested parties opportunity to comment in JISM's newsletter.
Article 18.b of the same draft Law stipulated that all adopted technical regulations, conformityassessment procedures and standards be published promptly in the official gazette.  Technical
regulations, conformity assessment procedures and standards came into effect after their publication.
140. The representative of Jordan confirmed that Jordan would comply with all obligations under
the WTO Agreement on Technical Barriers to Trade from the date of accession without recourse to
any transition period.  The Working Party took note of this commitment.
(b) Sanitary and phytosanitary measures
141. The representative of Jordan said that the Ministries of Agriculture and Health maintained
sanitary and phytosanitary technical regulations to ensure that locally-produced and imported foods,
plants, plant parts and by-products, animals and animal by-products, agricultural chemicals, fertilizer,
and veterinary medicine were safe and did not endanger human, animal or plant health and life, or the
environment.  In Jordan, samples were collected at local markets and tested for pesticide residue,
animals were examined before slaughter, and carca sses were examined to determine their suitability
for human consumption.  All sanitary and phytosanitary regulations were published in the Official
Gazette, and traders could consult this information at the Chambers of Commerce in Jordan.  Jordan
was a member of the Codex Alimentarius Commission, Prior Informed Consent (PIC), the
International Office of Epizootics (OIE), the F ood and Agriculture Organization (FAO), the World
Health Organization (WHO) and the Internati onal Atomic Energy Agency (IAEA), and worked
together with these organizations in establishing and applying sanitary and phytosanitary measures.
Jordan was not a member of the International Plant Protection Convention, but adopted and
implemented the standards of this organization.  Jordan was a member of the European Plant
Protection Organization and the Near East Plant Organization.
142. Import activities were governed by the Agriculture Law No. 20 for 1973 and other relevant
regulations and instructions issued by the Ministry of Agriculture and the Ministry of Health.  A
health certificate was required for each shipment.  Imported goods not satisfying Jordan's sanitary and
phytosanitary requirements were re-exported or destroyed.  In 1997, 65 consignments (out of 51,000
customs transactions) had been re-exported because they did not meet Jordanian requirements.  The
most frequent cause of non-compliance related to shelf-life requirements for foodstuffs.WT/ACC/JOR/33
WT/MIN(99)/9
Page 40
Consignments of live animals, frozen and chilled meat, poultry meat, hatching eggs, pesticides, seeds,
seedlings and plants, animal fodder and organic fertilizers were subject to inspection or quarantine.
Control measures applied in Jordan to control pests included the use of pesticides, soil fumigation
with methyl bromide and soil solarization, if possible.
143. Concerning shelf-life requirements for foodstuffs, the representative of Jordan said that these
were based on Jordan Standard 288/1994 "Shelf Life for Foodstuff" and Jordan Standard 401/1997
"Shelf Life for Infant and Children's Foodstuff", i ssued and administered by the Jordan Institution for
Standards and Metrology.  The standards had been prepared by specialised technical committees,
taking into consideration the climatic and storage conditions in Jordan.  The shelf-life requirements
applied equally to imported and domestic goods.
144. A member observed that Jordan's  regulations on shelf-life did not conform with international
norms and were inconsistent with the provisions of the SPS and TBT Agreements that require the use
of sound science to establish such requirements.  The food safety risk that could be prevented with
mandatory shelf-life dates had not been specified, nor had Jordan demonstrated what impact non-
fulfilment, i.e. the absence of a shelf-life date, would have.  This member also maintained that the
imposition of mandatory shelf-life terms on an arbitrary, across-the-board basis on numerous productswas not an appropriate solution to the concerns expressed, and emphasized that it was in the interest
of both the exporter and the importer to assure that there would be sufficient shelf-life remaining on
imported products for them to be purchased and consumed within the optimum quality period.  This
member expressed the view that an arbitrary requ irement for half the shelf-life, enforced by the
Government, was not a useful way to address this concern.  He suggested that mandatory shelf-life
dating should be eliminated for "shelf-stable foods", in the context of adopting the Ministerial Decrees
that will implement the WTO TBT and SPS Agreements in Jordan, and that regulations and
procedures be established in line with international norms for "highly perishable refrigerated" food
products to gradually replace these requirements with  a scientific regulatory  framework, e.g., within
one year.  In reply, the representative of Jordan said that the new draft Law on Food did not containany provision on half shelf-life requirements.  The Draft Law on Food was expected to be enacted in
December 1999.  Once enacted, all articles in the Law on Public Health connected with food,
including half-shelf life requirements, would become inapplicable, including Article 69 (1.b).
145. The representative of Jordan confirmed that Jordan would initiate immediately the process of
examining its shelf-life standards (JS:401:1977 and JS 288:1994) in light of international scientific
practices on shelf-stable food products to identify shelf-stable products currently appearing on the lists
of these two standards.  He further confirmed that  Jordan would eliminate shelf-stable products from
the coverage of these two standards by 30 June 2000.  He added that Jordan would establish within
one year regulations and procedures in line wi th international norms for "highly perishable
refrigerated" food products to gradually replace remaining shelf life requirements on these products
with a scientific regulatory framework by 31 December 2000.  The Working Party took note of these
commitments.
146. The representative of Jordan added that Jordan had conducted an assessment of its SPS
legislation and determined that new laws would have to be enacted in order to fully conform to the
SPS Agreements.  Jordan had prepared a new draft Law on Agriculture (to address SPS plant and
animal provisions) and a Draft Law on Food (covering SPS food aspects).  The draft laws would bring
Jordan’s foreign trade regime into full conformity with the WTO Agreement on the Application ofSanitary and Phytosanitary Measures.  Jordan was ready to implement fully the SPS Agreement upon
accession provided that technical assistance and support (including financial means) would be
provided by WTO Members with regard to modernization of testing laboratories in Jordan, border
inspection, sampling procedures as well as training of personnel.  The Ministry of Agriculture would
act as SPS enquiry point.WT/ACC/JOR/33
WT/MIN(99)/9
Page 41
147. A member sought information on Jordan's plans to reform the activities of four separate
bodies (the Ministry of Health, Ministry of Agriculture, JISM and the Greater Amman Municipal
authorities) involved in the testing and/or sampling of frozen foodstuffs, which appeared to have had
negative trade effects.  This member also inquired about measures applied to imported meat, notablyinspection requirements at the border supplemented by additional inspection within Jordan, which
appeared to be more trade-restrictive than necessary.  Moreover, Jordan required imported meat or
meat from imported animals to be refrigerated separately from other meat and sold separately from
domestically-produced meat, which, in the view of this member, was inconsistent with the provisions
of Article III of GATT 1994.  Jordan also maintain ed a prohibition on the use of powdered milk as an
input in the production of UHT milk and yoghurt.   This member requested the abolition of all
remaining prohibitions on the use of powdered milk by industrial users of dairy products, as thosemeasures were trade distorting and had no valid WTO justification, and a commitment from Jordan
that guidelines or rules be developed in relation to the entry into Jordan of live animals, frozen meat,
milk powder, and frozen butter to ensure full conformity with the requirements of the WTO
Agreement on the Application of Sanitary and Phytosanitary Measures.
148. The representative of Jordan replied that the new Laws on Agriculture, Standards and
Metrology, and Food Control, all to be enacted before the end of February 2000, defined clearly the
relevant mandates for the Ministry of Agriculture, the Ministry of Health, and the Jordan Institute of
Standards and Metrology.  Jordan was evaluating the process of sampling, inspecting and testing of
food to streamline and eliminate any redundancies observed with the assistance of the World Bank
and USAID.  The reform process would be completed by the end of June 2000, and by then theactivities of all Jordanian bodies involved in the testing and/or sampling of frozen foodstuffs would be
in conformity with all relevant provisions of the Agreement on the Application of Sanitary and
Phytosanitary Measures, including those relating to Control, Inspection and Approval Procedures
(Annex C).  The refrigeration requirements for meat were applied to protect consumers against
deceptive practices in the absence of legislation on consumer protection.
149. The representative of Jordan confirmed that, as from the date of accession, unnecessary
inspections of imported meat and meat from imported animals would be eliminated, and national
treatment would be accorded fully to such products as part of Jordan's program for the development
and adoption of guidelines and/or rules for food inspection and testing procedures.  The new Law on
Agriculture would include provisions of Anne x C of the WTO Agreement on the Application of
Sanitary and Phytosanitary Measures.  All instructions and testing procedures would be in accordance
with the WTO Agreement on the Application of Sanitary and Phytosanitary Measures, in particular itsAnnex C.  To address concerns over the lack of national treatment for and the unnecessary inspection
of imported meat and meat from live animals, he confirmed that Jordan would make a particular
commitment to abide by the provisions of paragraphs 1(a), 1(e) and 1(g) of Annex C from the date of
accession.  Jordan would implement the least trade restrictive requirements possible to prevent
deceptive practices vis-à-vis  consumers of meat, taking into account the national treatment
requirements of Article III of GATT 1994.  All remaining prohibitions on the use of powdered milk
by industrial users of dairy products would be abolished as soon as legislatively possible upon
accession, and in any event no later than within 12 months from the date of accession.  The Working
Part took note of these commitments.
150. Asked whether Jordan was considering working towards the concept of equivalence, the
representative of Jordan said that Jordan accepte d ISO procedures.  His Government also intended to
issue new regulations for the acceptance of sanitary and phytosanitary measures of other countries.
The exporting countries would need to demonstrate that their measures achieved the same level of
consumer health protection as in Jordan.  Jordan was prepared to accept inspection certifications from
other countries based on agreement.  Jordan did not apply stricter sanitary and phytosanitary measuresthan set out by international standards organizations on any product.WT/ACC/JOR/33
WT/MIN(99)/9
Page 42
151. The representative of Jordan confirmed that Jordan's sanitary and phytosanitary standards
system would be in compliance with WTO provis ions under the Agreement on the Application of
Sanitary and Phytosanitary Measures as of the date of accession to the WTO, and that Jordan would
apply all measures of the Agreement on the Application of Sanitary and Phytosanitary Measures in aleast trade distortive manner from the date of accession without recourse to any transition period.  The
representative of Jordan further confirmed that, without recourse to any transition period and in
conformity with the SPS Agreement, no stricter rules than those laid out by international
organizations such as OIE will be applied.  The Working Party took note of this commitment.
Trade-Related Investment Measures (TRIMs)
152. The representative of Jordan said that Jordan did not maintain any measures inconsistent with
the TRIMs Agreement.  His Government applied the principle of national treatment and did not resort
to performance requirements which could affect trade.
153. The representative of Jordan said that Jordan  would not maintain any measures inconsistent
with the TRIMs Agreement and would apply the TRIMs Agreement from the date of accession
without recourse to any transition period.  The Working Party took note of this commitment.
State trading entities
154. The representative of Jordan said that the government sector was gradually moving out of
importing food products.  The private sector could now import all products previously subject to
government monopoly such as rice, sugar, wheat, barley, frozen meat and poultry, and his
Government had thus far never refused to provide prior approval for goods where this was required.
The Directorate of Internal Trade at the Ministry of Industry and Trade continued to import wheat and
one brand of dried milk (Halibuna) in competition with the private sector.  He noted that any private
sector importer could import milk powder into Jordan.  The Directorate of Internal Trade at the
Ministry of Industry and Trade sold fodder products directly to farmers through its distribution
outlets.
155. The Jordan Civil Consumers Corporation (JCCC) was an enterprise organized for the benefit
of government employees.  JCCC operated on a co mmercial basis and sold imported and Jordanian
products at its outlets at prices slightly below the regular market prices.  The Agricultural Marketing
Organization (AMO) was an agricultural marketing board regulating trade in agricultural products
with other Arab countries in accordance with bilate ral trade agreements or trade protocols.  In this
regard, AMO issued recommendations to the custom s department whether or not to exempt imports
from customs duties in compliance with the agreements.  AMO also monitored the quality of imports
to ensure compliance with Jordanian quality standa rds.  AMO did not engage in actual importation or
exportation, and did not interfere regarding the prices of products imported or exported.  AMO served
as an information centre as it collected trade and price statistics and other relevant information.  AMO
conducted market studies;  researched new export markets;  assisted private sector participation at
international trade fairs and exhibitions;  published brochures, guidebooks and newsletters for
producers, exporters and importers;  and monitored the quality of fresh produce exported from Jordan.
156. Asked about the activities of the Agricultural  Marketing and Processing Company (AMPCO),
the representative of Jordan said that this was a company in the process of being privatized.  AMPCO
owned and operated processing plants for tomatoes and citrus fruit, and marketed agricultural produce
locally and internationally.  The company had no exclusive trading rights.
157. Importation and exportation of some products were reserved for particular enterprises in
accordance with their laws.  The products and companies involved are listed in Table 13.  The
enterprises could also benefit from tariff exemptions granted by the Council of Ministers upon specialWT/ACC/JOR/33
WT/MIN(99)/9
Page 43
decision.  All companies, except the tyre manufacturers, had been granted customs duty exemptions.
The representative of Jordan added that the exclusive rights were provided as part of the concession
packages and agreements with these companies, and that the exclusive rights would continue to be in
effect for the duration of the concessions.
Table 13:  Exclusive rights to import or export
HS Code Product Enterprise Reason for restriction
41.01
41.02
41.03Natural raw leather Jordan Tanning Co. The Law of the
Company
27.09 Petroleum and
derivatives, excludingmineral oilsJordan Petroleum
Refinery Company(JPRC)The Law of the
Company
73.11 Gas cylinders for house
useJPRC The Law of the
Company
25.23 Black cement Jordan Cement
Factories Co.The Law of the
Company
28.34 Ammonium Nitrate Jordan Phosphates
Mining Co. (JPMC)The Law of the
Company and because it
is also used as input for
explosives
25.10 Raw Phosphates JPMC The Law of the
Company
36.0136.02
36.03Gun Powder, salt and
explosivesJPMC The Law of the
Company and for
security reasons
40.12 Used automobile tires Tyre factories For safety and
ecological reasons
158. Some members queried whether the enterprises mentioned had the right to restrict trade, in
which case Jordan was requested to indicate how it would amend this practice to bring it into
conformity with Article XI of the GATT.  Jordan was requested to describe the special or exclusive
privileges relating to importation and exportation by completing the State trading questionnaire for the
Jordan Tanning Company, the Jordan Petroleum Re finery Company, the Jordan Cement Factories
Company, the Jordan Phosphates Mining Company, the Fertilizers Company, the Arab Potash
Company, and the Arab Company for Manufacturing White Cement.  Some members sought
confirmation that Jordan was prepared to notify firms with special and exclusive privileges as State
trading enterprises within the meaning of Articl e XVII of the GATT 1994 and the Understanding on
the Interpretation of Article XVII, and to observe the provisions of the WTO, including Article XVIIof the GATT in their operation.
159. In reply, the representative of Jordan said that  the enterprises listed in Table 13 traded on the
basis of market demand and their own needs.  The fact  that these firms received tariff exemptions did
not, in his view, make them State trading companies.  Having reviewed Jordan's State trading
activities according to the definition provided under the Understanding on the Interpretation of ArticleXVII of the GATT 1994, Jordan had identified - in document WT/ACC/JOR/26 - six State trading
entities, and provided a justification for not including two further activities (Table 14(a) and 14(b)).WT/ACC/JOR/33
WT/MIN(99)/9
Page 44
Table 14(a):  State trading entities identified by the Government of Jordan
Entity Name Nature of Exclusivity Legal Justification Duration
Jordan Cement
FactoriesJordan Cement Factories has
the exclusive right to import
cement and its by-products.Prime Minister Instruction
dated 10 September 1951
and Concession agreement
dated 6 December 1951Concession is
for 50 years.  It
will expire in
2001
Jordan TanningCompany Co.
Ltd. (JTCL)JTCL has the exclusive rights to
import and export rawhides and
skins. JTCL also has exclusive
rights to export tanned leather.Law No. 9 of 1962 Concession is
for 40 years. It
will expire
2002.
JordanPhosphateMines Co. Ltd.
(JPMC)JPMC has exclusive mining
rights of phosphates for fourdifferent mines in Jordan.
Hasa, Rusaifa, and Wadi Al-
Abyad locations mining rights
are valid from 17 December
1968 to 1998.Shaidiah location Mining rights
are valid from November 1987
to 2017.Based on Law No. 12 of
Natural Resources 1968Mining Rights No.1 and
No.2 1968
Prime Minister
instructions dated
29 May 1979 (explosivesExclusive right
for mining (andde facto export)
of phosphate is
for 30 years.
Expiration date
is 1998 forHasa, Rusaif,
and Wadi Al-
Abyad and 2017
for Shaidiah.
Mining rights are subject to re-negotiation and renewal once
they expire.
Although there are no legal
restrictions on any persons forexporting phosphate, JPMC de
facto does not sell phosphate to
private traders for export
purpose.
JPMC also has the exclusiverights to import, store and sell
explosive materials used for
mining and quarrying purposes.Exclusive right
for the import
and sale of
explosive
materials isindefinite
according to
Prime Minister
Instructions of
1979.
JordanPetroleum
Refinery Co.The term of concession grants
the company the exclusive right
to refine oil and sell in Jordan.
The company has the exclusive
right to import oil and
Hydrocarbon necessary to thelocal market.The concession Law No.
19 of 1958 was issued to
approve the concession
agreement signed between
the Jordanian Government
and the PetroleumRefinery Company.The concession
expires in 2008.
The VegetableOil Industries
Co. ltd.The company has the exclusive
right to refine and produce
margarine of plant origin.
The company has the exclusive
right to export margarine as per
the concession agreement;however this is not
implemented in practiceAgreement signed on
27 March 1956Concession
agreement was
granted in 1956
for thirty years
and extended for
another fifteenyears. The
concession will
expire in 2001.WT/ACC/JOR/33
WT/MIN(99)/9
Page 45
Entity Name Nature of Exclusivity Legal Justification Duration
The Ministry of
Industry and
TradeExclusive rights to import
Wheat Bran for animal feed.Decision of Ministry of
Industry and TradeNo time limit on
such rights
Table 14(b):  Entities that do not meet the definition of Article XVII of the GATT 1994
according to the Government of Jordan
Entity Name Justification
Agricultural Marketing Organization(AMO)AMO does not engage in any international trade activities.
Used tires Used tires may not be imported unless for the purpose of re-
threading.
Any company may import used tires for re-threadingpurpose if such company has re-threading facilities.
There are no restrictions on establishing re-threading
facilities in Jordan. Currently, there are eight companies
engaged in this activity.
160. The representative of Jordan stated that his Government had identified the following six
entities as State Trading companies:  Jordan Cement Factories, Jordan Petroleum Refinery Co. Ltd.,
Jordan Tanning Co. Ltd., Jordan Phosphate Mines Co. Ltd., the Vegetable Oil Industries Co. Ltd., and
the Ministry of Industry and Trade.  His Government had identified the trading activities of the
entities listed above as subject to the provisions of Article XVII of the GATT 1994, and is prepared tonotify these firms as State trading enterprise s within the meaning of Article XVII and the
Understanding upon accession.
161. The representative of Jordan confirmed that after accession to the WTO, Jordan would
observe WTO provisions, in particular, Article XVII of the GATT 1994, the WTO Understanding on
that Article, and Article VIII of the GATS regarding State trading, with respect to the State-ownedenterprises and other enterprises and entities with special or exclusive privileges identified in
paragraphs 154-160 of this report, in particular abiding by the provisions for notification, non-
discrimination, and the application of commercial considerations for trade transactions.  The Working
Party took note of these commitments.
Free zones, special economic areas
162. The representative of Jordan said that four free zones were currently operating in Jordan.  The
Aqaba Free Zone, occupying an area close to one million square metres, served transit trade and
goods imported through the port of Aqaba.  The Zone was fully equipped with infrastructure, goods
handling equipment, storage warehouses, paved open yards and cold-storage facilities.  The Zarqa
Free Zone covered an area of some 5.5 million square metres, serving industrial and commercial
investment.  The Sahab free zone covered an area of 62,000 square metres, and the Queen Alia
International Airport Free Zone an area of 20,000 square metres.  In addition, four livestock/privatefree zones operated in Jordan.
163. The free zones had been established to encourage local and foreign investment, introduction
of new technology, transit trade and export oriented  industries and were open to any local, Arab or
foreign investor.  Investors registered with the Companies Registrar.  Industrial and services projects
established in the free zones enjoyed benefits in the form of (i) profits exempt from income tax for aperiod of twelve years;  (ii) the remuneration of non-Jordanian employees was exempt from incomeWT/ACC/JOR/33
WT/MIN(99)/9
Page 46
tax and social services tax;  (iii) goods imported into the free zones were exempt from customs duties
and any other taxes and fees;  (iv) no licensing fees or real estate taxes were applied to the buildings
constructed within the free zones;  and (v) the capital invested and profits earned could be freely
repatriated.  Goods exported from the free zones, other than to Jordan, were also exempt fromcustoms duties and any other taxes and fees.
164. The representative of Jordan confirmed that fre e zones or free economic zones in Jordan would
be fully subject to the coverage of the commitment s taken in the Protocol of Accession, and that Jordan
would ensure enforcement of its WTO obligations in  those zones, including those commitments derived
from the TRIPS Agreement.  He also confirmed that , when goods produced or imported into the zones
under the special tax and tariff regime existing in th ese areas enter into the rest of Jordan, normal
customs formalities, tariffs and taxes would be applied.  The Working Party took note of thiscommitment.
Government procurement
165. The representative of Jordan said that government procurement practices were governed by
several laws and regulations depending on the nature and purpose of the procurement.  Two public
departments – the Cooperation Organization and the National Aid Fund – enjoyed autonomy in theirprocurement according to their rules and regulation s.  Excluding these two bodies, the overall value of
goods and services purchased by the public sector amounted to around JD 145 million annually.
166. Purchases of supplies for government departments were subject to Supplies Regulation
No. 32 for 1993 and the Tenders Instructions No. (1) of  1994 issued by the Minister of Finance.  The
General Department of Supplies/Ministry of Financ e were responsible for such procurement, which
was normally conducted by tendering through the Central Tendering Committee.  The committee
comprised three permanent members from the General Supplies Department (GSD), the Ministry of
Industry and Trade and the Ministry of Finance, and two members from the government department
applying for the actual purchase.
167. Tender notices were published in local newspapers for three consecutive days.  The
announcement included the tender identification number, information on the requested product, the
price and final date of sale of the tender documents, and the closing date and time for the submission
of offers.  Bids were evaluated according to criteria depending on the general and special conditions
as well as the technical specifications set out in the tender documents.  Several elements of the offer
would be considered, including the price, running co sts, the need for spare parts and maintenance, and
the commercial capability and reputation of the bidder.  Most procurement was conducted by open
tender, but in some cases limited tendering would be applied, in which case a shortlist of qualifiedbidders would be drawn up on the basis of technical merits and experience.  The Secretariat of the
tenders committee in the General Supplies Department announced the winning bid on a special
announcing board (at the GSD) or by any other me thod devised by the Director General, allowing
four days for objections to be submitted by any participant.  The tenders committee would consider
the objections and issue its decision.  A supplier which continued to dispute the award of a contractcould seek redress through the national courts.  Public works contracts were tendered through the
Ministry of Public Works.
168. Local products were given preference over im ported products in government tenders.  A
15 per cent preferential margin was accorded to Jordanian products provided the terms and conditions
(including quality) were otherwise equal to imported products.  Moreover, a contractor procuringimported products should buy these in the local market rather than by direct importation.  Jordan did
not have any trade agreements with other countries covering public procurement.  Offset
arrangements were infrequent and would be handled on a case-by-case basis.WT/ACC/JOR/33
WT/MIN(99)/9
Page 47
169. The representative of Jordan said that work would be undertaken in November 1999 to table a
request for observer status in the GPA Committee.
170. The representative of Jordan confirmed that, upon accession to the WTO, Jordan would
initiate negotiations for membership in the Ag reement on Government Procurement by tabling an
entity offer.  He also confirmed that, if the results of the negotiations were satisfactory to the interests
of Jordan and the other members of the Agreement, Jordan would complete negotiations for
membership in the Agreement within a year of accession.  The Working Party took note of these
commitments.
Transit
171. The representative of Jordan said that Jordan  applied the principles of the international
agreement for road transportation known as TIR.  Transit trade was subject to a toll equal to0.3 per cent of the value of the goods in transit (maximum JD 200).  Transit goods destined to free
zones were exempt from the fee.  Jordan also charged a diesel fee of JD 80 on transit trade.
172. Jordan also applied the principles of the Arab Transit Agreement signed on 14 March 1977.
The Arab Transit Agreement was part of the Arab regional trade arrangements within the Arab
League.  The agreement was based on the same principles as the TIR, but set ceilings on the transitfees for Arab vehicles.
173. Some members noted that transit charges on Arab vehicles were lower than for other
transporters, and asked how Jordan intended to end it s discriminatory system of transit charges.  The
representative of Jordan acknowledged that the fe e for goods passing through Jordan in accordance
with the Arab Transit Agreement amounted to 0.3 per cent, as against 0.4 per cent for other goods, butdid not consider the system discriminatory.  In addition, trucks registered in countries which were not
signatories to the Arab Transit Agreement were subjec t to some specific fees regardless of the nature
of the goods they were carrying.  Loaded trucks paid JD 75 for loads not exceeding 30 tons, JD 100
for loads between 30 and 40 tons, and JD 150 for loads exceeding 40 tons, as well as a fee of JD 15
for each one-body loaded truck and JD 25 for a loaded truck and trailer.  Empty one-body trucks weresubject to a fee of JD 5, while an empty truck and trailer paid JD 10.  Jordan also charged JD 10 for
guard and security escort.
Agricultural policies
(a) Imports – description of the types of border protection maintained174. The representative of Jordan provided detailed  information on Jordan's agriculture sector and
agricultural policies in document WT/ACC/JOR/14.  Concerning measures pertaining to agricultural
imports, he said that import regulations had changed substantially in recent years in Jordan.  Theformer Ministry of Supply had been the sole importer of essential foodstuffs until 1997.  The private
sector could now import almost any agricultural pr oduct against payment of prevailing import duties
and taxes, and provided the imported product met local quality standards.  A ban on imported mineral
water - to support local production in a disadvantaged area – had been lifted in April 1999.
175. Import licences were required for most goods, in particular those originating in, and imported
from, countries and territories with which Jordan had concluded bilateral trade agreements and
protocols on trade in agricultural goods (details on the agricultural agenda with Lebanon is provided
in document WT/ACC/JOR/8, details on the import a rrangements with Oman, Yemen and Palestinian
Authority are found in document WT/ACC/JOR/13).  Prior approval from the Ministry of Agriculture
was required for importation of live animals;  fresh, chilled and frozen meat;  and frozen animalsemen – essentially to ensure that the imported animals and animal products met local healthWT/ACC/JOR/33
WT/MIN(99)/9
Page 48
standards.  The Ministry of Industry and Trade issued prior approvals for importation of rice, powder
milk, wheat and wheat derivatives, sugar, barley, corn, and milk for manufacturing purposes.  The
Ministry of Industry and Trade monitored the local market to ensure adequate supply of essential
foodstuffs, and would make purchases internationally if private sector imports proved insufficient.The prior approval system was a temporary measur e which the Government intended to abolish once
satisfied that the private sector would respond fully to price signals in the Jordanian market.
176. Some members noted import restrictions on live sheep which, in their view, would appear to
be a violation of Article XI as well as Article III:4 (national treatment).  The representative of Jordan
replied that Jordan had recently changed its regulations regarding importation of live sheep.  A
previous import restriction based on weight had been changed to a requirement that the imported
sheep should be maximum 1.5 years old, as older sheep were more prone to carry diseases, andbecause Jordan currently did not have the technical capacity to cope with the inspection of imported
sheep.  However, Jordan was modernizing its vete rinary inspection services.  A technical committee
formed by representatives of the Ministry of Agriculture, the Jordan Institution for Standards and
Metrology and the private sector was developing technical regulations for live sheep and carcasses.
The restriction on importation of sheep older than 1.5 years would be eliminated as soon as thesetechnical regulations had been adopted (expected in  1999).  Jordan had eliminated a requirement that
the share of imported ewes/yearlings could not exceed 10 per cent of the total number of imported
sheep in November 1999.  The Ministry of Agriculture conducted periodic and systematic inspections
of domestic farms to control any disease.
177. The representative of Jordan confirmed that the age restriction on imported sheep, described
in paragraph 176, would be eliminated no later than 30 April 2000.  The Working Party took note of
this commitment.
(b) Exports
178. Exports of agricultural products were generally unrestricted except for some fruit and
vegetables Jordan exported to Lebanon and Israel under bilateral agreements subject to maximumlimits (quotas).  Jordanian exporters were obliged to comply with standards and other requirements in
the importing country, and export of, for example, horticultural products typically required a
certificate of origin issued by the Chamber of Commerce and approved by the Agricultural Marketing
Organization, a health certificate issued by the Plant Protection Department of the Ministry of
Agriculture, and an EURI certificate for exports to the EU.
(c) Internal policies – i.e. description of, and the budgetary expenditure and any revenue foregone
involved in each of the domestic support measures in place
179. The representative of Jordan said that although the direct contribution of agriculture in
Jordan's GDP was no more than around 5 per cent, it was estimated that about 25 to 30 per cent of
economic activity was based on agriculture.  The Government supported local producers through a
combination of means including procurement of domestic production, and provision of inputs such as
seeds, water, credit and livestock feed.  The Government  also financed agricultural extension servicesand scientific research to improve productivity in the agriculture sector.  The principal institutions
involved in producer support were the Ministry of Agriculture;  the Ministry of Industry, Supply and
Trade;  the Jordan Cooperatives Association (JCA);  the Jordan Valley Authority (JVA);  and the
Agricultural Credit Corporation (ACC).
180. In the past - to ensure production of basic foodstuffs and fodder - the former Ministry of
Supply had purchased wheat, lentils, chickpeas and barley from farmers at prices announced during
the planting season.  The Government no longer purchased commodities from farmers but maintainedWT/ACC/JOR/33
WT/MIN(99)/9
Page 49
strategic food reserves.  At the end of May 1998, the Ministry of Supply had become a directorate
within the Ministry of Industry and Trade.
181. The representative of Jordan said that the Agriculture Marketing Organization (AMO) was a
government agency formed in 1987 to organize and develop the marketing of processed andunprocessed agricultural products.  He stressed that the Agricultural Marketing Organization had
never been involved in any commercial activity of importing, exporting, selling or distribution of any
goods, and that the AMO had never been involved in any trading operation on behalf of Jordan's
Government.  Concerning the importation and exportation of fresh fruits and vegetables, he noted that
importation of fresh fruits and vegetables was allowed year round from all countries without any
restrictions and subject to pre-set custom duty, except from countries with which Jordan had trade
protocols.  Imports from member countries of the Arab Free Trade Area (AFTA) were subject to Arab
Calendars set by AFTA, allowing member countries to charge the full customs tariff on their imports
of fresh produce from other member countries during time periods agreed upon in the above
mentioned calendars.  Imports from some Arab countries with whom Jordan had bilateral trade
agreements were subject to the terms and conditions of the signed agreements and their attached
calendars, which enabled imports to enjoy full exemption from custom duties during periods set in thecalendars.  The role of the AMO in this regard was to manage this process by issuing
recommendations to the customs department on whet her or not to exempt imports from customs
duties in compliance with each of the mentioned agreements, and to monitor the quality of imports
and ensure that they complied with Jordanian quality requirements and standards.  In addition, the
AMO was responsible for conducting market studies in local and international markets;  assisting andorganizing private sector participation in international trade fairs and exhibitions;  introducing new
high value horticultural products;  publishing guidebooks, brochures, and newsletters on production,
marketing, handling, backing and exportation of horticultural products;  and monitoring and
controlling the quality of fresh produce in Jordan, including imported and exported products.  The
AMO maintained a complete database on local and international prices, and statistics on production,imports and exports of fresh horticultural products.
182. The Agricultural Marketing and Processing Company (AMPCO) had been established in
1987 to stimulate production and processing of tomatoes and citrus fruit.  The Government currently
owned 88 per cent of its shares, but the company was scheduled for full privatization by the end of
1999.  AMPCO had paid guaranteed prices to tomato farmers in the early 1990s, but was now
competing with two other processors for availabl e supplies.  The maximum price paid to tomato
producers was now set relative to processing costs and international price trends for processedtomatoes.  AMPCO had held exclusive rights to import four primary horticultural crops until 1995,
when its monopoly rights had been removed.
183. The Jordan Cooperatives Association (JCA) provided farmers with supplies and inputs at
outlets throughout the country.  Its members could obtain inputs at prices slightly below ordinary
market prices.  One of JCA's primary current functions was to distribute certified seeds to farmers atsubsidized prices, but this practice would be abolished in 1999.  The JCA no longer provided loans to
members at less than market interest rates, but some of the loans granted before 1989 were still
outstanding.  The value of forgiven loans amounted to approximately JD 32,000 in 1997.
184. The Jordan Valley Authority (JVA), operating within the Ministry of Water and Irrigation,
supplied water to agricultural producers and monitored development in the Jordan Valley to ensurethat water use would not exceed the available supply.  JVA had until recently charged horticultural
producers for water below cost, but this subsidy had been virtually eliminated in 1997.  Producers
elsewhere in Jordan had no access to subsidized water.
185. The Agricultural Credit Corporation (ACC) pr ovided soft loans (6 to 8.5 per cent annual
interest) to farmers and agribusiness investors.  ACC loans were either operational loans ofWT/ACC/JOR/33
WT/MIN(99)/9
Page 50
12-24 month duration or development loans to be re paid over a maximum of 15 years.  In 1996, ACC
had provided JD 8 million in operational loans, primarily as seasonal or short-term financing of
production.  ACC development loans were in str ong demand, not just because of the discounted
interest rates and lack of commissions and fees, but also because commercial banks generally refusedto provide loans with maturity beyond three years.  Farmers and processors had outstanding debts
totalling JD 181 million at the end of 1997.  The estimated interest subsidy amounted to JD 350,000
on operational loans and JD 330,000 on development loans in 1997.  The agriculture sector also
benefited from the subsidy component (maximum 1 percentage point) embodied in the rediscount and
advance rates established by the Central Bank.
186. The representative of Jordan said that subsidies had been removed on wheat, sugar, rice and
animal fodder.  In line with this policy reform, the price of bread had been increased from 85 to250 fils per kg, balanced by cash transfers to affected household meeting an income eligibility
criterion.  In addition, families with monthly income of less than JD 500 had received coupons from
the Ministry of Industry and Trade to obtain rice, su gar, and condensed milk (Halibuna) at subsidized
prices.  The coupon system had been replaced by a cash subsidy programme for government
employees at the end of 1997.  Selected commodities – fresh cow milk, yoghurt, and imported freshmeat – were subject to ceiling prices established in negotiations between the Ministry of Industry and
Trade and representatives of the private sector.
187. Agricultural income was exempt from income tax.  The exemption applied to domestic sales
as well as to exports.
188. The representative of Jordan said that Jordan intended to stimulate agricultural growth and to
improve resource management by directing and encouraging farmers towards growing agricultural
products with high economic value.  The Ministry of Agriculture had identified high-value
agricultural products suitable to Jordan's climatic and agronomic conditions, but not yet commonly
produced in Jordan.  The products were suggested to producers as alternatives to current crops by the
extension and advisory services of the Ministry of Agriculture.  In addition, the AgriculturalMarketing Organisation featured the products at international trade fairs and supported experimental
shipments of such products to potential export markets.  He considered these measures "Green box"
policies.
189. Members of the Working Party agreed that Jordan had AMS of JD 1,539,199 and Jordan
agreed to reduce this by 13.3 per cent over seven years from the date of accession.  Those Members
also considered that for the purposes of Article 6.4 of the WTO Agriculture Agreement, Jordan was a
developing country.  Jordan did not grant any export subsidies to agricultural products.  Therepresentative of Jordan confirmed that Jordan would bind agricultural exports subsidies at zero in its
goods schedule.  The Working Party took note of this commitment.
190. Jordan's commitments on agricultural tariffs, on domestic support and export subsidies for
agricultural products are in the Schedule of Concessions and Commitments on Goods annexed to
Jordan's Protocol of Accession to the WTO.
Trade-Related Intellectual Property Rights (TRIPS)
1. General
(a) Industrial property protection
191. The representative of Jordan said that his Government recognized the importance of
introducing new laws and amending existing laws pertaining to intellectual property taking intoWT/ACC/JOR/33
WT/MIN(99)/9
Page 51
consideration the international intellectual property conventions and the conditions for entry into the
World Trade Organization.
192. Some members requested Jordan to submit to the Working Party a plan of action for
implementation of the WTO TRIPS Agreement by the date of accession.  In their view, Jordan shoulduse the period of its accession negotiations to make the necessary changes in the area of intellectual
property rights to meet WTO norms, and, as a consequence, Jordan was expected to be in conformity
with the WTO TRIPS Agreement from the date of a ccession to the WTO, without recourse to any
transitional period of non-application.  The representative of Jordan replied that Jordan had launched a
major reform of its intellectual property regime in 1999.  The status of ongoing reforms
(November 1999) is presented in Table 15.
Table 15:  Status of legislation on intellectual property rights in Jordan (November 1999)
Law Status of Draft Expected approval
date (Parliament)
Amendments to the Law on
Trademarks No. 33 of 1952Enacted as a Law, entering into force on
1 December 1999 
Law on Patents Enacted as a Law, entering into force on
1 December 1999 
Amendments to the Law onCopyrights No. 22 of 1992Enacted as a Law, entered into force on
2 November 1999  
Law on Industrial Design Referred to Parliament January 2000
Law on Integrated Circuits Referred to Parliament January 2000
Law on Geographical
IndicationsReferred to Parliament January 2000
Law on Trade Secrets and
Unfair CompetitionReferred to Parliament November 1999
Law on Plant Variety
ProtectionReferred to the Legislative Bureau at the
Council of MinistersNovember 1999
Regulations/
InstructionsStatus of Draft Expected Adoption Date
Regulations on Border
Enforcement of Intellectual
property RightsBeing drafted; submission to the CM is
expected in December 1999 Upon enactment ofAmendments to the
Customs Law
Regulations on Copyrights Being drafted; submission to the CM is
expected in December 1999January 2000
Regulations on Integrated
CircuitsBeing drafted; submission to the CM is
expected in December 1999Upon enactment of the
Law on IntegratedCircuits
(b) Responsible agencies for policy formulation and implementation
193. The representative of Jordan said that various institutions were responsible for the
formulation and implementation of laws and regulations pertaining to intellectual property rights,
including the Houses of Parliament, the Council of Ministers, the Ministry of Industry and Trade, the
Ministry of Agriculture, the Ministry of Culture,  the Courts of Law, the Customs Department, the
National Library, as well as television and radio stations.WT/ACC/JOR/33
WT/MIN(99)/9
Page 52
(c) Participation in international intellectual property agreements
194. The representative of Jordan said that Jordan  was a member of the Paris Convention for the
Protection of Industrial Property and the Arab Agreement for the Protection of Copyrights.  Jordan's
accession to the Berne Convention (1886) for the Protection of Literary and Artistic Works had beenapproved by the Council of Ministers, and had come into force in July 1999.  The Berne Convention
superseded national laws after its publication.  Jordan was considering the possibility to accede to the
Madrid Agreement (1891) concerning the International Registration of Marks;  the Protocol Relating
to the Madrid Agreement concerning the International Registration of Marks (1989);  the Nice
Agreement (1957) concerning the International Classification of Goods and Services for the purposes
of the Registration of Marks;  the "PCT" Patent Cooperation Treaty (1970);  and the Rome
Convention (1961) for the Protection of Perfor mers, Producers of Phonograms and Broadcasting
Organizations.  His Government envisaged to accede to these agreements within 5 to 7 years.
However, until the time of accession to these agreements, Jordan would comply with the requirements
of the TRIPS Agreement upon accession to the WTO.
(d) Application of national and MFN treatment to foreign nationals
195. The representative of Jordan said that the curr ent industrial property laws provided foreign
nationals with treatment equal to that of Jordanian nationals.  Article 38 of the Copyright Protection
Law would be amended to ensure that non-depositing of a copyright work at the Documentation
Centre would not affect the author's rights as stip ulated in the Law.  International conventions and
reciprocity conditions would be taken into consideration with respect to the protection of works of
foreign authors published abroad.  The current Copyright Protection Law (Article 53) providedprotection only for works published or reproduced in Jordan by Jordanian and foreign authors, and
works of Jordanian authors published abroad.  Protection of works published abroad would be
accorded protection in the near future, as Jordan  was joining the Berne Convention.  The Amendment
Copyright Law had been published on 1 October 1998.  Its Article 45 stipulated that non-filing of a
work of art would not affect the rights of the author provided for in the Law.
2. Substantive standards of protection, including procedures for the acquisition and maintenance
of intellectual property rights
(a) Copyright protection
196. The representative of Jordan said that protection of copyright in Jordan was governed by the
Copyright Protection Law No. 22 of 1992.  Amendments to the Copyright Law had been enacted in
October 1998 and September 1999.  The Law (Article 3 (a) and (b)) protected original works of
literature, art and science irrespective of type, importance or purpose, including works of artexpressed in writing, sound, drawing photography and motion such as books, speeches, plays, musical
compositions, films, applied art, three-dimensional works, and computer software.  The Law
(paragraph D of Article 3), as amended by the Copyright Amendment Law No. 14 of 1998, provided
protection to compilations of data.  The exclusive righ ts of the author were enumerated in Articles 8
and 9 of the Law and the terms of protection were laid down in Articles 30 to 32.  Works of an authorwere protected for his lifetime and for fifty years after his death (or the death of the last surviving co-
author);  protection for 50 years from the date of publication was provided for cinematographic and
television works, any work whose author or right holder was a legal entity, any work published for the
first time after the death of its author, and a nonymous and pseudonymous works;  and computer
programs, translated works, paintings, manuscripts, sculptures, drawings, pictures, architectural andgeographical maps or topography, surface or three-dimensional maps were protected for 50 years after
the death of the author.WT/ACC/JOR/33
WT/MIN(99)/9
Page 53
197. Article 17 of the Copyright Law permitted the use of published works without the
authorization of the right holder for educational, vocational training, cultural or religious purposes on
certain conditions.  The representative of Jordan considered this provision to be in full conformity
with Article 10(2) and (3) of the Berne Conventi on.  Regarding compulsory licensing, he said that
Jordan's rules concerning the granting of licences for translation or copying had been amended to be
compatible with the regulations of the Annex to the Berne Convention relating to developing
countries.  Article 11 of the amended Copyright Protection Law allowed any person, upon obtaining a
licence from the Ministry of Culture, to translate a work into Arabic, provided three years had lapsed
since the date of first publication.
198. The Copyright Amendment Law No.14 had been enacted in October 1998 to ensure
compliance with the TRIPS Agreement.  Changes had been required to meet the obligations withrespect to compilations of data (Article 10 of the TRIPS Agreement);  terms of protection
(Article 12);  limitations and exceptions (Article 13);  protection of performers, producers of
phonograms and broadcasting organizations (Article 14);  and enforcement (Articles 41 to 61).  Rental
rights were provided according to Article 3(b) and 9 of the Copyright Protection Law, but the Law
would be amended to give all producers of sound recordings the right to allow or prohibit direct andindirect copying of their sound recordings, or rental of the original copies of recordings.  Jordan
would also provide retroactive protection for sound recordings in accordance with Article 14 of the
TRIPS Agreement and Article 18 of the Berne Convention.
199. Some members requested, with respect to protection of copyrights, that Jordan clarify through
regulations the meaning of Article 27 of the Law on the Protection of Copyright (1992), as amendedby Article 7 of the Law Amending the Copyright Protection Law (1999), and its intention to apply
this provision in very narrow circumstances.  The representative of Jordan stated that the meaning of
the referenced provision would be clarified in regulations that will provide that the authority in
Article 27 applies only in the situation in which the author of a work is deceased and the work has
never been published in the author's lifetime.  In such circumstances, the Minister shall first seek thepermission of the author's heirs or successors to publish the work, and if such permission is not
granted within six months, the Minister shall have the right to publish only the work's substance.
200. Some members also requested clarification regarding the meaning of the phrase "for financial
gain" in Article 9 of the Law on the Protection of Copyright (1992), and, in particular, whether Jordan
intended to limit the author's exclusive rights in this manner, given that doing so would be
inconsistent with the Berne Convention and TRIPS Ag reement.  The representative of Jordan replied
that no such limitation was intended.  Regulations under this law would be issued to clarify themeaning of the phrase, and would provide that the term "for financial gain" in Article 9 would not
preclude the ability of the author or right holder from engaging in, authorizing or prohibiting any non-
commercial exploitation of his work;  except for those non-commercial exploitations explicitly
permitted by the law without the authorization of the author or right holder, provided that such
exploitations were limited to certain special cases, and provided that such exploitations did notconflict with a normal exploitation of the work and did not unreasonably prejudice the legitimate
interests of the right holder.
(b) Trademarks, including service marks
201. The representative of Jordan said that protection was afforded under the Trademarks Law
No. 33 of 1952, effective since 1 July 1952.  Jordan followed the international classification of goods
according to the Nice Agreement, and the Trademarks Law did not provide protection of service
marks in classes 35 to 42 of the Nice Agreement.  Separate application should be filed with respect to
each class of goods.WT/ACC/JOR/33
WT/MIN(99)/9
Page 54
202. The Jordanian authorities could refuse registration of a mark on grounds outlined in Article 8
of the Trademarks Law.  Applications accepted by the Trademark Registrar were published in the
Official Gazette, allowing a three-month period for filing of opposition by any interested party.  All
decisions of the Trademark Registrar could be appealed to the Higher Court of Justice.  A publishedtrademark was registered, and the certificate of registration was issued, in the absence of opposition.
A registered trademark was valid for 7 years from the date of filing of the application, and could be
renewed indefinitely for periods of 14 years (the registration periods would be changed to 10 years in
the amended Trademarks Law).  Proof of use was not a prerequisite for renewal of a registered
trademark, and Jordanian law did not recognize the non-use of a trademark due to special
circumstances in trade as valid grounds for cancellation due to non-use.  Among the justifications for
non-use of a trademark, he mentioned commercial circumstances (such as recession), and special
commercial circumstances including force majeure  due to war, floods, Law of God, or Law or action
of Government.  Any person, including the owner of an unregistered trademark, had the right to object
to the initial request for registration within three months of its publication in the Official Gazette,
could demand cancellation of the mark registration, but could not file a civil court case demanding
compensation for damages and losses.
203. The current law did not allow the registration of identical or similar trademarks for the same
goods or any other protected related goods.  No provision in Jordanian law prohibited the licensing of
trademarks.  The recordation of an assignment was mandatory according to the law.  Concerning
protection of well-known marks, the representative of Jordan said that Article 8, paragraph 6 of the
1952 Trademark Law had been used in courts to protect well-known marks.  Article 25 of theTrademark Law provided for invalidation of trademarks registered in contradiction of Articles 6, 7
and 8 of the Trademark Law.  Well-known marks for goods and services could not be registered in
Jordan except in the name of the legitimate proprietor.
204. The representative of Jordan said that the existing Trademarks Law had been amended to
comply with obligations under the TRIPS Agreement in September 1999.  The changes includedintroduction of protection for service marks, well-known marks and collective trademarks;  extension
of the grace period for non-use of a trade mark from 2 to 3 years;  introduction of punishment for
infringement of well-known marks;  and allowing assignment of a trademark with or without good
will.
(c) Geographical indications, including appellations of origin
205. The representative of Jordan said that Jordan had no specific legislation covering the subject
yet.  Geographical names were protectable in accordance with Article 8 (paragraphs 6 and 7) of theTrademarks Law, and this provision had been used in courts to protect geographical indications.
Jordan had prepared a draft law to protect geographical indications.  The draft law had been submitted
to Parliament in November 1999.  In his view, the draft law complied with the requirements of the
TRIPS Agreement.
(d) Industrial designs
206. The representative of Jordan said that industrial designs were protected under the Patents
Designs Law No. 22 of 1953, effective since 17 Fe bruary 1953, and the Patents and Designs Order
No. 1 of 1953.  Industrial designs were registered with the Patents and Industrial Design Office at the
Ministry of Industry and Trade.  An industrial design was not subject to novelty examination for
registration purposes, but the industrial design registrar would determine whether the design had acertain degree of novelty and quality, and was useful with distinguished design and arrangement.
Designs could be registered under 15 classes, based on the materials the goods were made from, underWT/ACC/JOR/33
WT/MIN(99)/9
Page 55
the Patents Designs Law.  A design could be registered for more than one class, but a separate
application was required for each class.  Textile designs were protected under Jordanian legislation.
207. A design registration was valid for five years as of the date of filing the application, and could
be renewed twice, each time for a period of five years.  Rejections by the Registrar could be appealedto the High Court of Justice within one month.  Any infringement or non-authorized use of a
registered design was punishable under the current design law.  The Patents Designs Law contained
no provision for compulsory working or licensing.
208. The draft Industrial Design Law had been referred to Parliament in November 1999.
(e) Patents
209. The representative of Jordan said that patents were granted under the Patents Designs Law
No. 22 of 1953 and the Patents and Designs Order No. 1 of 1953.  Once filed, the patent applicationwas examined with respect to compliance with the fo rmalities and patentability provided for under the
Patents Designs Law.  Jordan's Patent Office could stipulate any amendment necessary to bring the
application into conformity with the Law.  Formal examination was conducted only on patents
belonging to Jordanians and those filed for the first time in Jordan.  There were no examiners at the
Patent Office.  In all, 1,935 patents had been issued in Jordan by the end of January 1997.  Foreign-owned patents had mainly been issued for pharmaceuticals, chemicals, solar energy, construction
materials, machinery and mechanics, while patents is sued to Jordanian nationals were mostly related
to public safety, solar energy, electrical equipment, chemicals and mining.
210. The patent owner's rights were set out in Article 4 of the Law, and there were no restrictions
on the owner's rights to assign, transfer, or licence rights under a patent except for patents of militarysignificance.  However, Jordan required the working of patents in Jordan, although the current law
contained no definition of "working of patents".  A patent would be subject to compulsory licensing
under the provisions of the Law if the owner of a patented invention did not satisfy the working
requirement within three years of the date of granting the patent.  A decision to revoke a patent could
be reviewed by the High Court of Justice.  Infringements of the right of a patentee were punishableunder the provisions of the current Patents Designs Law.
211. The representative of Jordan said that the existing patent legislation would need to be
modified in view of Article 31 of the TRIPS Agreement to put more stringent conditions on the use of
a patented invention without the authorization of the right holder.  The new Law adopted TRIPS
criteria for compulsory licensing.  Existing legislat ion also did not provide the owner of a patent the
exclusive right to prevent a third party from making, offering for sale, selling or importing a product
or the process resulting in that product without his consent as required under Article 28:1(a) and (b) ofthe TRIPS Agreement.  The patent legislation would also be revised to provide for a term of
protection of 20 years from the date of filing, as against 16 years under present legislation.  Moreover,
the Patents Law No. 8 of 1986 limited the patentability of chemical products, and would be amended
to extend patent protection to pharmaceuticals and agricultural chemical products.  He added that the
new Patent Law provided protection to patents in respect of pharmaceutical products, but entrustedCabinet with the authority to implement these provisions.  Article 36/E/2 stated that "The provisions
of paragraphs(C) and (D) of this Article shall come into force one month after the issuance of a
decision to the effect by Cabinet during a period which does not exceed three years from the date of
Jordan's accession to the World Trade Organization."
212. Some members requested that Jordan clarify whether use of a patent without the authorization
of the right holder could be authorized to permit the exploitation of a patent which could not be
exploited without infringing another patent, and, if such use could be authorized, to explain the
consistency of the Jordanian Patent Law with Article 31(1) of the TRIPS Agreement.  TheWT/ACC/JOR/33
WT/MIN(99)/9
Page 56
representative of Jordan replied that the Patent Law of 1999 provided no authority to the Government
to authorize the use of a patent without the authorization of the right holder for the purpose of
exploiting a patent which could not be exploited without infringing another patent.  He added that, for
the sake of transparency, this clarification will also be reflected in any implementing regulations
issued under the Patent Law.
213. Some members also requested that Jordan clarify when the Cabinet would issue the decision
referenced in Article 36(E) of the Patent Law (1999) to ensure that the provisions of Article 36(C),
specifically, the availability of product patent protection for "chemicals related to medications, or
pharmaceutical or food final products," should come into effect.  In reply, the representative of Jordan
confirmed that the necessary steps would be taken by the Cabinet to ensure that the provisions of
Article 36(C) would come into force no later than 2 April 2000, and that product patent protection for
chemicals related to medications, and pharmaceutical and food products, would be available from that
date.
214. Some members also requested Jordan to clarify how it would ensure that, before Jordanian
regulatory authorities approve the marketing of a pharmaceutical or agricultural chemical product,
those authorities would coordinate with the Patent Office to ensure that such marketing approvalswould not conflict or interfere with the enjoyment of patents on that product.  The representative of
Jordan replied that this question would be clarified through a Cabinet decision issued prior to Jordan's
accession, which would require that, prior to issuance of marketing approval of any pharmaceutical
and agricultural chemical products, the relevant Ministries in Jordan must determine the existence of a
patent covering a product for which an application for marketing approval had been filed by a partyother than the patentee, and must not approve such application for marketing approval until the date of
the expiration of such patent.
215. Some members also requested that Jordan clarify the meaning of the term "unfair commercial
use" in its draft Unfair Competition Law to ensure protection of undisclosed test data submitted to the
government as a condition for obtaining marketing approval of pharmaceutical and agriculturalchemical products utilizing new chemical entities, as required by TRIPS Article 39.3.  The
representative of Jordan replied that Jordan would amend its draft Unfair Competition Law as
follows:  "Jordan will protect against unfair commercial use of undisclosed test or other data
submitted in support of applications for marketing approval of pharmaceutical or of agricultural
chemical products which utilize new chemical entiti es, by providing that no person other than the
person that submitted such data may, without the permission of the latter person, rely on such data in
support of an application for product approval for a period of at least five years from the date onwhich Jordan granted marketing approval to the person that produced the data."  The representative of
Jordan added that this amendment to the Unfair Competition Law would be applicable to any
application for marketing approval pending on or filed after the date of enactment of that law.
216. The representative of Jordan said that the draft Patent Law (DPL) satisfied the requirements
of Article 27 of the TRIPS Agreement as its Article 6 provided protection for inventions which werenew, involved an inventive step, and were capable of industrial application.  Article 30 of DPL stated
expressly that pharmaceutical and chemical final products would be patentable.  The rights of the
patent owner were regulated under Article 21 of DPL and allowed him/her to prevent third parties
from exploiting, commercially using, selling, offering to sell, or importing products or - in the case of
a patented process - to prevent third parties from using without authorisation the process, selling,offering to sell, or importing a product produced by the process, as well as the right to dispose of the
patent inter vivos , in succession, or to licence the patent.WT/ACC/JOR/33
WT/MIN(99)/9
Page 57
217. Concerning the filing of patent applications containing claims for medical drugs,
pharmaceutical compositions and food products, a member noted that Article 70.8 of the TRIPS
Agreement stipulates that Members shall provide a means by which applications for patents for such
inventions can be filed as from the date of entry into force of the WTO Agreement.  In reply, therepresentative of Jordan said that the filing of patent applications containing claims for medical drugs,
pharmaceutical compositions and food products would be accepted as from the date of entry into force
of the Law (Mail Box Requirement), i.e. one month after its publication in the Official Gazette.
218. Some members requested Jordan to clarify whether importation of a patented product would
qualify as exploitation and use of a patent within the meaning of the second sub-paragraph of
Article 22 of the Patent Law (1999).  The representative of Jordan replied that importation of a
patented product would be considered exploitation and use of the patent, such that the situation wouldnot satisfy the criteria of Article 22, second sub-paragraph.  He added that, for the sake of
transparency, this clarification would also be reflected in any implementing regulations issued under
the Patent Law.  In case WTO Members in the futu re should adopt an interpretation of the TRIPS
Agreement pursuant to Article IX of the Agreement Establishing the WTO contradicting the
aforementioned, Jordan reserved the right to abid e by this interpretation of the TRIPS Agreement.
219. Some members also requested that Jordan clarify the meaning of the condition in Article 37
of the Patent Law concerning "if the importation was legal", and to clarify whether the situation
involving a breach of contract would render such importation illegal, and whether administrative
procedures and regulations were available to patent owners to assist in the control of unauthorized
importation of patented products.  The representative of Jordan replied that in situations in whichthere had been a breach of a contract with respect to imported products, such products would not be
considered to be legally imported within the meaning of Article 37 and their importation would be
prohibited.  He noted, however, that the patent holder was required to notify the appropriate Jordanian
customs authorities of the identity of parties authorized to import the patented product into Jordan, in
which case measures would be available to prevent the entry into the Jordanian market of suchunauthorized imports.  He added that, for the sake of transparency, this clarification would also be
reflected in implementing regulations issued under the draft Customs Law.  In case WTO Members in
the future should adopt an interpretation of the TRIPS Agreement pursuant to Article IX of the
Agreement Establishing the WTO contradicting the aforementioned, Jordan reserved the right to abide
by this interpretation of the TRIPS Agreement.
(f) Plant variety protection
220. The representative of Jordan said that Jordan  had no existing legislation covering the subject.
A draft New Plants Variety Law had been referred to the Legislative Bureau at the Council of
Ministers in November 1999.
(g) Layout designs of integrated circuits
221. The representative of Jordan said that Jordan had referred the Layout Designs Draft Law,
which covered Articles 35-38 of the TRIPS Agreement, to Parliament in November 1999.
(h) Requirements on undisclosed information, including trade secrets and test data
222. The representative of Jordan said that Jordan had no specific legislation covering the subject.
However, the Jordan Civil Code of 1976 provided protection for trade secrets in employment
contracts.  Jordanian legislation also allowed compensation for damages and losses if the owner of a
trade secret could prove that damage had been inflicted on him.  He considered existing legislationfulfilled the requirements of Article 10 bis of the Paris Convention, incorporated by reference in
Article 39 of the TRIPS Agreement.WT/ACC/JOR/33
WT/MIN(99)/9
Page 58
223. Asked specifically about implementation of Article 39.3 of the TRIPS Agreement, which
provides for a special protection regime for data submitted for registration of new pharmaceutical and
agrochemical products, the representative of Jordan said that Article 39.3 of the TRIPS Agreement
would be implemented through the Trade Secrets a nd Unfair Competition Draft Law, which had been
referred to Parliament in November 1999.
3. Measures to control abuse of intellectual property rights
224. The representative of Jordan said that the Copyright Law No. 22 of 1992 included provisions
(Articles 42, 46, 47 and 51) on the control of abuse of copyright.   Article 36 of the draft amended
copyright law would give copyright office staff in the Department of the National Library the status of
judiciary officers in implementing the provisions of the Law.  Article 22/3 of the Patents Designs Law
stipulated the conditions under which the owner of a patent could be ordered by a court of law to granta licence for use of his patent.  Regulations to control abuse also existed under the Trademarks Law
and the Patents Designs Law.  The amended trademarks law would address the issue of contractual
licensing of trademarks.
4. Enforcement
(a) Civil judicial procedures and remedies
225. The representative of Jordan said that the Jordanian Civil Code, the Code of Civil Procedure,
the Merchandise Law, and the Trademark Law contained provisions relating to civil judicial
procedures and remedies.  A detailed comparison of Jordanian legislation with Articles 42-48 of the
TRIPS Agreement was provided in document WT/ACC/JOR/18 (pp.66-69).  Damages for injury in
infringement cases could be claimed with reference to Articles 256 and 257 of the Jordan Civil Code.
(b) Provisional measures
226. The representative of Jordan said that procedures invoked in accordance with the Jordanian
Code of Civil Procedure (Articles 32 and 115) corresponded to the conditions, effects, and
requirements mentioned in Article 50 of the TRIPS Agreement.  His Government was taking steps to
ensure systematic applicability of these provisions to intellectual property rights.
(c) Administrative procedures and remedies
227. The representative of Jordan said that no administrative procedures and remedies were
available at present.
(d) Special border measures
228. The representative of Jordan said that the 1998 Customs Law contained provisions providing
for the prohibition of importation of goods contradicting the provisions of intellectual property laws.
The copyright law, trademark law and draft patent law contained provisions regarding the prohibitionof importation of infringing goods.  However, customs control and enforcement of intellectual
property laws needed further elaboration, and his Go vernment was currently revising these provisions.
The Cabinet of Ministers was expected to approve new regulations on border enforcement of
intellectual property rights upon enactment of Amendments to the Customs Law.
(e) Criminal procedures
229. The representative of Jordan said that Jordanian legislation contained no special procedures
beyond those laid down in the Trademarks Law and the Merchandise (Commodities) Marks LawWT/ACC/JOR/33
WT/MIN(99)/9
Page 59
No. 19 of 1953.  The actions considered unlawful and the penalties for trademark infringement were
defined in Article 38 of the Trademarks Law.  Vi olations were punishable by imprisonment ranging
from three months to one year and/or a fine ranging from JD 100 to JD 3,000.  With respect to patent
violations, any person imitating or using a patent  without the permission of  the patent holder, or
giving false indication of a patented article, would be liable to imprisonment ranging from three
months to one year and payment of a fine ranging from JD 100 to JD 3,000 according to the new draft
amended patent law.
230. The representative of Jordan stated that Jord an would apply fully all the provisions of the
Agreement on Trade-Related Aspects of Intellectual Property Rights from the date of accession to the
WTO, without recourse to any transitional period.  The Working Party took note of this commitment.
Policies affecting trade in services
231. The representative of Jordan said that trade in services was regulated under various laws and
regulations, the most important of which were the Investment Promotion Law No. 16 for 1995, the
Companies Law No. 1 for 1989, the Foreign Investment Regulation No. 39 for 1997, the Central Bank
Law No. 19 for 1979, the Foreign Exchange Law No. 95 for 1966, the Banks' Law No. 24 for 1971,
the Money Exchange Dealings Law No. 37 for 1992, the Labour Law No. 37 for 1988, and theResidency and Foreigners Affairs Law No. 5 for 1991.
232. The banking system in Jordan consisted mainly of the Central Bank of Jordan (CBJ), banks
licensed by the CBJ, and specialized credit institutions.  The licensed banks comprised fourteen
commercial banks (including five branches of fore ign banks), five private investment banks, and two
Islamic banks.  In addition, Jordan had five specialized credit institutions.  There were no numericallimitations on the establishment of branches of foreign banks.  Under the current banking law, the
minimum capital of a licensed bank should not be less than JD 5 million.  This minimum capital
requirement had been raised by CBJ to JD 20 mill ion for national banks.  In the meantime, foreign
banks were being urged to increase their capital to JD 10 million.  In practice, no limitations were
imposed on licensed banks regarding the number or total value of their operations.  The CBJ haddrafted a new banking law consistent with international banking standards.
233. Insurance services were regulated by the Insurance Law No. 30 for 1984 and its amendments
on the control of insurance activities, and Regula tion No. 33 of 1995 regarding insurance companies.
Insurance companies were supervised by the Office of  the Controller of Insurance in the Ministry of
Industry and Trade.  Jordan operated its insurance supervisory system in accordance with GATS
commitments, including Article VI and the obligations of the Financial Services Annex.  In 1998, 27
insurance companies - with a total capital of JD  65.5 million - operated in Jordan.  The minimum
capital for a Jordanian (domestically constituted) insurance company was JD 2 million, or JD 4
million for a branch of a foreign company or its accredited agent.  The capital requirement for a
Jordanian (domestically constituted) reinsurance company was minimum JD 20 million.  The
limitation that non-Jordanian investors could own up to 50 per cent of the capital of an insurance
company was being removed in accordance with sc heduled commitments.  All insurance companies
registered in Jordan were required to be member of a Federation.  Before commencing operations, an
insurance company was required to deposit with a commercial bank an amount to protect the holders
of insurance policies against any default on its part.
234. Concerning telecommunication services, the representative of Jordan said that the sector was
regulated by the Telecommunications Law No. 13 for 1995.  The sector was in the process ofrestructuring.  An independent Telecommunicati ons Regulatory Commission had been established,
while policy formulation and development was carried out by the Policy Department within the
Ministry of Posts and Telecommunications.  The national operator – the Jordan Telecommunication
Company (JTC) had been transformed into a State-owned company as a first step towardsWT/ACC/JOR/33
WT/MIN(99)/9
Page 60
privatization.  The JTC held a monopoly on the provision of basic telephone services, while licences
had been issued to private suppliers of cellular mobile telephone, data, paging and pay-phone services.
235. Tourism activity was essentially private-sector oriented.  In the past, the Government had
owned a substantial stake in the Jordan Hotels and Tourism Company, but the shares had been sold toa private company.  The sector was expanding rapidly, and new hotels were built with private
Jordanian and foreign capital.  Tourist bus transportation had been a monopoly held by a private
company until 1994, but this sector was now open to other service providers.
236. The representative of Jordan said that Arab economic agreements contained some provisions
on facilitating the movement of workers among the countries.  The Agreement on Facilitating and
Developing Commercial Exchange between Arab  States (AFTA) aimed at providing special
facilitation to services related to commercial exchange between member states.  Article 18 of theAgreement referred to transport services, stating that members should cooperate in facilitating
transportation between each other, and transit trade of Arab goods among member states.
237. Jordan's Schedule of Specific Commitments on Services is annexed to its draft Protocol of
Accession reproduced in the Appendix to this Report (see paragraph 249 below).  This Schedule of
Specific Commitments on Services contains the legally binding market access commitments of Jordanin respect of services.
Transparency
Publication of information on trade
238. The representative of Jordan said that the Constitution of Jordan provided that laws should be
published in the Official Gazette.  According to provision No. 93 (ii) of the Constitution, a law came
into force after its promulgation by the King, thirty days from the date of publication in the Official
Gazette, unless the law specifically stated another da te of entry into force.  The date of entry into
force was stipulated in the first article of each law.
239. The representative of Jordan said that from the date of accession all laws, regulations,
decrees, judicial decisions and administrative rulings of general application related to trade would bepublished in a manner that fulfils the WTO requirements.  As such, no law or regulation related to
international trade would become effective prior to such publication in the official Gazette.  He
further stated that all laws which were amended to comply with the WTO Agreements contain
provisions which require such publication.  Decrees which affect international trade will be published
either in the Official Gazette or in the bulletin of Chamber of Industry and Commerce.  Final judicial
judgements of the highest courts will be published in the Journal of Jordanian Bar Association.
Jordan's Constitution and other laws currently in place or listed in document WT/ACC/JOR/32 asslated for near-term enactment would implemen t fully Article X of the GATT 1994 and the other
transparency requirements in WTO Agreements requiring notification and publication.
Notifications
240. The representative of Jordan said that, at the latest within six months of the entry into force of
the Protocol of Accession, Jordan would submit all initial notifications required by any Agreementconstituting part of the WTO Agreement.  Some notifications, as provided for in WT/ACC/JOR/31,
will be made immediately after accession.  Any regulations subsequently enacted by Jordan which
gave effect to the laws enacted to implement any Agreement constituting part of the WTO Agreement
would also conform to the requirements of that Agreement.  The Working Party took note of these
commitments.WT/ACC/JOR/33
WT/MIN(99)/9
Page 61
Trade agreements
241. The representative of Jordan said that Jordan was a member of several multilateral economic
organizations which aimed at promoting trade and economic cooperation among its members,
including the International Monetary Fund, the International Bank for Reconstruction andDevelopment, the Multilateral Investment Guarantee Agency, the World Intellectual Property
Organization and the International Labour Organizati on.  Among the regional institutions, Jordan was
a member of the Arab Monetary Fund, the Islamic Development Bank, the Arab Fund for Economic
and Social Development, and the Arab Council for Economic Unity.
242. Jordan had concluded bilateral trade agreements with many countries (listed in Annex 7 of
document WT/ACC/JOR/3).  These agreements were generally based on the MFN principle, although
some agreements with Arab countries included trade preferences.  Preferential treatment was accordedto specific goods included in protocols annexed to these agreements.  However, Jordan had terminated
all trade protocols, except with Lebanon, in 1995.  The representative of Jordan said that the bilateral
agreements did not include countertrade and barter arrangements.  In the past, trade with Sudan had
been subject to countertrade and barter, but these arrangements had not been renewed.  The trade
agreement with Iraq essentially pr ovided Iraqi oil in exchange for Jordanian exports.  Previously, the
agreement had a credit arrangement component, but this was no longer the case (since 1997).  Jordan
had concluded bilateral investment promotion a nd protection agreements with Germany, France,
Turkey, Switzerland, Malaysia, Romania, United Ki ngdom, Tunisia, Yemen, Egypt, Italy, Algeria,
Indonesia, the United States, the Czech Republic, Poland, the Netherlands and Morocco.
243. Jordan was a member of the Arab Common Market Agreement (ACM) together with Egypt,
Iraq, Mauritania, Libya, Syria and Yemen.  Jordan was also a member of the Agreement for
Facilitating and Developing Trade Exchange among Arab States.  Members of the Agreement –
Bahrain, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Palestine, Qatar, Saudi Arabia, Somalia,
Sudan, Syria, Tunisia, United Arab Emirates a nd Yemen – exempted various products from customs
duties and taxes, including agricultural and livestock products;  raw materials;  goods and productswith at least 40 per cent value added in the expo rting country (or minimum 20 per cent value added if
all inputs were imported from Arab countries);  and goods and products produced by joint Arab
enterprises.  Further products could be added to the preferential arrangement (the current product
coverage is provided in document WT/ACC/JOR /8 pp.75-76).  The Agreement also eliminated all
non-tariff measures (quotas, bans and other quantitative restrictions);  however, the agreement had not
functioned as envisaged.  In June 1996, the Arab League/Economic and Social Council had decided to
replace the Agreement with a new free-trade area agr eement.  Jordan signed the Arab Free Trade Area
Agreement (AFTA) on 1 January 1998, activated in March 1998, and implemented the first round of
tariff cuts on that date, but on a reciprocal basis, i.e. the reductions were only effective for other Arab
League members implementing the same reductions .  Tariffs between member countries would be
eliminated over a ten-year period.  Pursuant to full implementation of the Agreement, Jordan would
eliminate import duties on approximately 94 per cent of its (six digit) tariff lines, and AFTA wouldcover about 21 per cent of Jordan's trade.  The AFTA Agreement itself did not include provisions on
the application of non-tariff measures, but the AFTA implementation programme prohibited the use
of non-tariff measures such as quantitative restrictions and import licensing for non-exempt and non-
prohibited products.  Although the implementation programme did not cover non-tariff measures
applied to prohibited and exempted products, Jordan did not intend to use non-tariff measures exceptwhere non-tariff measures were applied by other Parties to the agreement (reciprocal treatment).  The
AFTA Agreement did not cover services.WT/ACC/JOR/33
WT/MIN(99)/9
Page 62
244. Jordan had concluded an agreement with Egypt to create a free-trade area among them by
2005.  Customs duties and other equivalent taxes were reduced by 10 per cent annually.  Some 48
products, representing 1,450 tariff lines at the six-digit level, were temporarily excluded from the
agreement.  Agricultural products also benefited from the tariff reductions, except for certain fruit andvegetables which were subject to seasonal restrictions.  The agreement was not yet effective as Egypt
had not ratified the agreement.  Jordan had signed a free trade area agreement with Algeria.  Further
details concerning Jordan's regional trade relations with neighbouring countries are described in
Table 16.
Table 16:  Preferential treatment granted under Jordan's bilateral agreements
Bilateral agreement
with:Preferences granted:
Bahrain Full free-trade area agreement
Egypt Free-trade area by 2005
Israel 10 per cent tariff reduction for 66 products originating in Israel
Kuwait Free movement for agricultural and livestock products.  Customs duties and
equivalent taxes reduced by 20 per cent annually for specific industrial
products
Libya Free movement for all products originating in both countries
Oman Free movement for agricultural, livestock and fish products
Palestinian
AuthorityDuty free access for 60 products originating in the Palestinian Territories
Qatar Mutual exemptions from customs duties for agricultural products and natural
resources.  Lists of duty free industrial products to be established.
Saudi Arabia Duty free treatment for 166 products
Sudan Customs duties exemptions for agricultural, livestock and industrial products
Syria Customs duties exemptions for agricultural, natural resources and industrial
products
245. In 1977, Jordan had signed a cooperation agreement with the EC which offered Jordan
seasonal preferential treatment (tariff cuts) for some of its agricultural exports.  Jordan had
subsequently negotiated a new agreement within the Euro-Mediterranean partnership agreements,leading to a free-trade area to be reached after 12 years from the date of entry into force of the
partnership agreement.  The partnership agreement also covered services, social and cultural affairs,
and financial cooperation.  Jordan ratified the agreement in late Summer 1999.  All industrial products
and natural resources originating in Jordan would enter duty free in the EC, while EC industrial
products benefited from annual duty reductions over the 12 year implementation period.  Theagreement excluded some products originating in the EC from preferential treatment.  The agreement
contained specific import procedures and safeguards with respect to trade in agricultural products.
Tariff rates applied by Jordan are detailed in document WT/ACC/JOR/18, page 74.  Jordan expected
that about 65 per cent of the goods imported from th e EC would receive preferential treatment.  The
trade-weighted average tariff applicable to imports from the EC was 24.51 per cent.
246. Some members asked Jordan to provide details of its Agreement with the United States on
duty free areas.  The representative of Jordan replied that the United States had proposed the concept
of Qualified Industrial Zones (QIZ), extending duty free status to products of the West Bank,
Gaza Strip and Qualified Industrial Zones.  Thus far, only the Irbid (Al-Hassan) Qualifying Industrial
Zone had been established in Jordan.  The QIZ provided non-reciprocal duty free access to theUnited States' market, provided the products fulfilled certain conditions.  The direct cost of producing
operations performed in the QIZ should account for at least 35 per cent of the appraised value of a
product at the time of entry into the United States.  This could result either by (i) at least one-third (or
11.7 per cent) being contributed by the Jordanian manufacturer in the QIZ, one third by an IsraeliWT/ACC/JOR/33
WT/MIN(99)/9
Page 63
manufacturer(s), and the remainder by production at the QIZ, the West Bank/Gaza Strip, in Israel or
in the United States;  or (ii) by Jordanian and Israeli manufacturers maintaining at least 20 per cent of
the total production cost of QIZ-produced good(s), including originating materials, wages and
salaries, design, research and development, depreciation of capital investment, overhead expenses,including marketing expenses, etc.
247. The representative of Jordan stated that his Government would observe the provisions of the
WTO including Article XXIV of the GATT 1994 and Article V of the GATS in its trade agreements,
and would ensure that the provisions of these WTO Agreements for notification, consultation and
other requirements concerning free trade areas a nd customs unions of which Jordan was a member
were met from the date of accession.  The Working Party took note of these commitments.
Conclusions
248. The Working Party took note of the explanations and statements of Jordan concerning its
foreign trade regime, as reflected in this report .  The Working Party took note of the commitments
given by Jordan in relation to certain specific matters which are reproduced in paragraphs 32, 43, 53,
58, 63, 72, 76, 88, 94, 100, 103, 107, 116, 126, 131, 137, 140, 145, 149, 151, 153, 161, 164, 170, 177,
189, 230, 240 and 247 of this report.  The Working Party took note that these assurances andcommitments had been incorporated in paragraph 2 of the Protocol of Accession of Jordan to the
WTO.
249. Having carried out the examination of the foreign trade regime of Jordan and in the light of
the explanations, commitments and concessions made by the representative of Jordan, the Working
Party reached the conclusion that Jordan be invited to accede to the Marrakesh Agreement
Establishing the WTO under the provisions of Article XII.  For this purpose, the Working Party has
prepared the draft Decision and Protocol of Accession reproduced in the Appendix to this report, and
takes note of Jordan's Schedule of Concessions and Commitments on Goods (document
WT/ACC/JOR/33/Add.1) and its Schedule of Specific Commitments on Services (document
WT/ACC/JOR/33/Add.2) that are annexed to the Protocol.  It is proposed that these texts be adoptedby the Ministerial Conference when it adopts the report.  When the Decision is adopted, the Protocol
of Accession would be open for acceptance by Jordan which would become a Member thirty days
after it accepts the said Protocol.  The Working Party agreed, therefore, that it had completed its work
concerning the negotiations for the accession of Jordan to the Marrakesh Agreement Establishing the
WTO.WT/ACC/JOR/33
WT/MIN(99)/9
Page 64
ANNEXES
ANNEX 1
Laws, Regulations and Other Information Provided to the Working Party by Jordan
- Companies Law No. 22 of 1977;
- Customs Law No. 16 of 1983;
- Law No. 20 on Customs (1998);
- A Law Amending the Customs Law - Law No. (__) of the Year 1999;
- Law No. 14 for 1992 - Import and Export Law;
- Regulation No. 74 (1993) - Import and Export Regulation;
- Law No. 7 on Unifying Other Taxes and Fees (1997);
- Draft Law Amending the Unification of Fees and Taxes Imposed on Imported and Re-
Exported Goods Law for the Year 1999 (11 October 1999);
- Law No. 6 (1994) – General Sales Tax Law;
- Draft Law Amending the General Sales Tax Law – Law No. (__) of the year 1999
(30 September 1999);
- Income Tax Law No. 57 of 1985, Law No. 2 of 1992 and Law No. 14 of 1995;- National Production Protection Law No. 4 of 1998 (Safeguards Law);
- Investment Promotion Law No. 16 of 1995 and Regulations;
- Regulation No. 39 (1997) – Non-Jordania n Investments Promotion Regulation;
- Law No. 15 of Standards and Metrology, effective 16 January 1995 (unofficial translation);
- Draft Law on Standards and Metrology Law No. (__) of the Year 1999 (11 October 1999);- Instructions No. 4 for the Year 1995 – Preparation of Jordanian Standards;
- Quality Mark Regulations No. 49 for the year 1996;
- Quality Mark Institutions;
- TBT Conformity Table (11 October 1999);
- Jordanian Standards Nos. 288 and 401;- Agricultural Law No. 20/1973;
- Draft Law on Agriculture (30 September 1999);
- Draft Law on Food Control Law No. (__)  of the Year 1999 (11 October 1999);
- SPS Conformity Table – Food (11 October 1999);
- SPS Conformity Table – Agriculture (11 October 1999);
- Regulation No. 32 (1993) – Government Procurement Regulation;
- Tenders Regulation No.1 of 1994;- Commodities' Marks Act No. 19 of 1953;
- Patents and Designs Law and Rules (1953);
- Draft Law No. (…) for the year 1999 Patent Law (as adopted by Parliament in September
1999);
- Trade Mark Law and Regulations in Hashemite Jordan (1 July 1952);- Draft Law No. (…) for the year 1999 Amending The Trademarks Law (as adopted by
Parliament in September 1999);
- Draft Amended Copyright Law No. 22 of 1992;
- Draft Law No. (…) for the year 1999 - A Law Amending The Copyright Protection Law (as
adopted by Parliament in September 1999);
- TRIPS Copyright Conformity Table (11 October 1999);
- TRIPS Trademarks Conformity Table (11 October 1999);
- TRIPS Geographical Indications Conf ormity Table (11 October 1999);
- TRIPS Industrial Designs and Models Conformity Table (11 October 1999);
- TRIPS Unfair Competition and Trade Secrets Conformity Table (11 October 1999);- TRIPS Patents Conformity Table (11 October 1999);
- TRIPS Layout Designs of Integrated Circ uits Conformity Table (11 October 1999);WT/ACC/JOR/33
WT/MIN(99)/9
Page 65
- Selected articles from specific Laws related to the implementation of the TRIPS Agreement:
- Code of Civil Procedure - No. 24 of 1988;
- High Court of Justice Law - No. 11 of 1989;
- Criminal Procedure Law - No. 9 of 1961;
- Evidence Law - No. 30 of 1952;
- Criminal Law - No. 16 of 1960;
- Civil Code - No. 43 of 1976.
- Banking Legislation in Jordan (1994);
- Law No. 9 Amending the Law on the Control of the Insurance Business and Regulation
No. 33 of the year 1995 on Insurance Companies (unofficial translation);
- Telecommunications Law No. 13 of 1995;  and- Securities Law of 1997 (unofficial translation).WT/ACC/JOR/33
WT/MIN(99)/9
Page 66
APPENDIX
ACCESSION OF THE HASHEMITE KINGDOM OF JORDAN
Draft Decision
Ministers,
Having regard to the results of the negotiati ons directed towards the establishment of the
terms of accession of the Hashemite Kingdom of Jordan to the Marrakesh Agreement Establishing the
World Trade Organization and having prepared a Protocol for the Accession of the Hashemite
Kingdom of Jordan,
Decide, in accordance with Article XII of the Marrakesh Agreement Establishing the World
Trade Organization, that the Hashemite Kingdom of Jordan may accede to the Marrakesh Agreement
Establishing the World Trade Organization on the terms set out in the said Protocol.WT/ACC/JOR/33
WT/MIN(99)/9
Page 67
PROTOCOL OF ACCESSION OF THE HASHEMITE KINGDOM OF JORDAN
TO THE MARRAKESH AGREEMENT ESTABLISHING
THE WORLD TRADE ORGANIZATION
DRAFT
The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the
approval of the Ministerial Conference accorded  under Article XII of the Marrakesh Agreement
Establishing the World Trade Organization (hereinafter referred to as "WTO Agreement"), and the
Hashemite Kingdom of Jordan (hereinafter referred to as "Jordan"),
Taking note of the Report of the Working Party on the Accession of Jordan to the WTO in
document WT/ACC/JOR/33 (hereinafter referred to as the "Working Party Report"),
Having regard to the results of the negotiations on the accession of Jordan to the WTO,
Agree as follows:
Part I - General
1. Upon entry into force of this Protocol, Jordan accedes to the WTO Agreement pursuant to
Article XII of that Agreement and thereby becomes a Member of the WTO.
2. The WTO Agreement to which Jordan accedes shall be the WTO Agreement as rectified,
amended or otherwise modified by such legal instru ments as may have entered into force before the
date of entry into force of this Protocol.  This Protocol, which shall include the commitments referred
to in paragraph 248 of the Working Party Report, shall be an integral part of the WTO Agreement.
3. Except as otherwise provided for in the para graphs referred to in paragraph 248 of the
Working Party Report, those obligations in the Mu ltilateral Trade Agreements annexed to the WTO
Agreement that are to be implemented over a period of time starting with the entry into force of that
Agreement shall be implemented by Jordan as if it had accepted that Agreement on the date of its
entry into force.
4. Jordan may maintain a measure inconsistent with paragraph 1 of Article II of the GATS
provided that such a measure is recorded in the list of Article II Exemptions annexed to this Protocoland meets the conditions of the Annex to the GATS on Article II Exemptions.
Part II – Schedules
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred to
as the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreement
on Trade in Services (hereinafter referred to as "GATS") relating to Jordan.  The staging of
concessions and commitments listed in the Schedu les shall be implemented as specified in the
relevant parts of the respective Schedules.
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date
of that Agreement, the applicable date in respect of the Schedules of Concessions and Commitments
annexed to this Protocol shall be the date of entry into force of this Protocol.WT/ACC/JOR/33
WT/MIN(99)/9
Page 68
Part III - Final Provisions
7. This Protocol shall be open for acceptance, by signature or otherwise, by Jordan until
31 March 2000.
8. This Protocol shall enter into force on the thirtieth day following the day of its acceptance.9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-
General of the WTO shall promptly furnish a certified copy of this Protocol and a notification of
acceptance thereto pursuant to paragraph 7 to each member of the WTO and Jordan.
10. This Protocol shall be registered in accordance with the provisions of Article 102 of the
Charter of the United Nations.
11. Done at Seattle this third day of December one thousand nine hundred and ninety nine, in a
single copy in the English, French and Spanish languages each text being authentic, except that aSchedule annexed hereto may specify that it is authentic in only one or more of these languages.WT/ACC/JOR/33
WT/MIN(99)/9
Page 69
ANNEX
SCHEDULE – HASHEMITE KINGDOM OF JORDAN
Part I – Goods
[Circulated in document WT/ACC/JOR/33/Add.1]
Part II – Services
[Circulated in document WT/ACC/JOR/33/Add.2]
__________