RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/JOR/26
4 October 1999
(99-4100)
Working Party on the
Accession of JordanOriginal:  English
ACCESSION OF JORDAN
Communication from Jordan
Report on State Trading
The Government of the Hashemite Kingdom of Jordan has submitted the following Report on
State Trading of 15 September 1999.
_______________
Jordan conducted an evaluation of all entities referred to in previous communications and
determined that only six companies are state tradin g companies according to the definition of Article
XVII of the GATT 1994.  These are: 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.  Table 1 provides a description of the nature and period of
exclusivity provided to these state-trading comp anies. Concessions to these companies are not
accorded as conditions of investment or as preferences to domestic producers.
Table 2 below provides the reasons for not considering the remaining companies as state-
trading companies.   Annex 6 on state trading of WT/ACC/1 is being prepared for all six companies
and will be submitted to the WTO Secretariat before the end of September 1999.
Table 1 – Entities Identified as State Trading
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
September 10, 1951 andConcession agreement
dated December 6, 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.WT/ACC/JOR/26
Page 2
Entity Name Nature of Exclusivity Legal Justification Duration
Jordan
PhosphateMines 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.
Mining rights are subject to re-
negotiation and renewal once
they expire.
Although there are no legal
restrictions on any persons for
exporting phosphate, JPMC de
facto does not sell phosphate to
private traders for export
purpose.
JPMC also has the exclusive
rights to import, store and sell
explosive materials used for
mining and quarrying purposes.Based on Law No. 12 of
Natural Resources 1968
Mining Rights No.1 and
No.2 1968
Prime Minister
instructions dated
29 May 1979(explosives)Exclusive right
for mining (andde facto export)
of phosphate is
for 30 years.
Expiration date is
1998 for Hasa,Rusaif, and Wadi
Al-Abyad and
2017 for Shaidiah
Exclusive right
for the import and
sale of explosive
materials isindefinite
according to
Prime Minister
Instructions of
1979.
Jordan
Petroleum
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 the
local market.The concession Law No.
19 of 1958 was issued to
approve the concessionagreement signed
between the Jordanian
Government and the
Petroleum Refinery
Company.The concession
expires in 2008.
The Vegetable
Oil 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 yearsand extended for
another fifteen
years. The
concession will
expire in 2001.WT/ACC/JOR/26
Page 3
Entity Name Nature of Exclusivity Legal Justification Duration
The Ministry of
Industry andTradeExclusive rights to import
Wheat Bran for animal feed.Decision of Ministry of
Industry and TradeNo time limit on
such rights
Table 2 – Entities that did not meet the Definition of Article XVII of the GATT 1994
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-threading
purpose 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.
Jordan agrees to have the following added to its Draft Report of the Working Party:
xx. The Government of Jordan 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.   The representative of Jordan stated that
his Government had identified the trading activities of the firms listed above as
subject to the provisions of Article XVII of the GATT 1994, and is prepared to notify
these firms as state trading enterprises within the meaning of Article XVII and the
Understanding upon accession.
xx. The representative of Jordan confirmed that after accession to the WTO, Jordan
would observe the provisions of Article XVII of the GATT 1994 and the WTO
Understanding on that Article regarding State trading, in particular abiding by the
provisions for notification, non-discrimination, and the application of commercialconsiderations for trade transactions.  The Working Party took note of these
commitments.WT/ACC/JOR/26
Page 4
ATTACHMENTS
Jordan Cement Factories
III. DESCRIPTION OF THE FUNCTIONING OF STATE-TRADING ENTERPRISES
Describe, item by item, the functioning of such enterprises and state, in particular, whether the
enterprise deals with exports or with imports, or both?
Jordan Cement Factories was established in 1951, as a public shareholding company for the purpose
of supplying the Jordanian market with all its cement needs.
Jordan cement factories is the sole producer, importer, and exporter of all the Hashemite Kingdom of
Jordan’s cement needs and exports its surpluses.
Jordan Cement factories through a fifty year concession agreement with the Government of Jordan,
that will end in the year 2001; has the exclusive right to search, extract and produce cement and itsby-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.
Accordingly the Jordan Cement factories is the sole importer and imports to sell locally whenever
there is shortage in its supply to the local market that cannot be met through its factories capacities.
Jordan Cement Factories through the concession agreement has the right to import all its needs from
material, equipment and tools exempt from custom duties through special legislation.
Jordan Cement Factories’ current registered capital is JD 60,444,460 divided into 60,444,460 shares
and its shares are traded on the Amman Financial Market.
Shares distribution as of 31 December 1998 was as follows:
- 36 per cent La Farge, a French strategic partner company that purchased
36 per cent of the company in 1998 as part of Jordan’s effort for
privatization;
- 30 per cent Jordanian investors including employee ownership;
- 14 per cent Jordan Investment Corporation;
- 9 per cent  The Social Security;
- Non Jordanian.
Jordan Cement Factories currently has two factories one in Fuhais, and one in Rashadieh.
Whether private traders are allowed to import or export and, if so, on what conditions?
Private Traders are not allowed to import. However, Jordan Cement Factories uses local agents
through contracts for the export of its production that is beyond Jordan’s Cement demand.
Whether there is free competition between pri vate traders and the State-trading enterprise?
There is no free competition with the private traders. Jordan Cement Factories is the sole importer and
exporter of Cement under the concession terms that end in 2001.WT/ACC/JOR/26
Page 5
The Criteria used for determining the quantities to be exported or imported. How export prices
are determined. How the mark-up on imported products is determined. How export prices and
re-sale prices of imports compare with domestic prices?
The criteria used for determining the quantities to be exported are, after providing the local market
with its cement needs and the strategic storage quantity for local demand fulfillment, based on
production capacities, market prices, and other factors that affect the general commercial and
profitability oriented sense. Therefore, export prices are based on international prices.
Cement is imported only to meet local demand that cannot be met through local production, a case
that has not happened since the eighties. However, if importing is needed then the resale price of the
imported cement is the same as the price set for locally produced cement even if it is sold at a loss.Therefore, the sale price of the imported cement is the same agreed upon price of the locally produced
cement.
Whether long-term contracts are negotiated by  the State-trading enterprise; Whether State-
trading methods are used to fulfill contractua l obligations entered into by the government?
Long-term contracts are negotiated by Jordan Cement Factories. These contracts are mostly technical
in nature. State trading methods are not used to fulfill contractual obligations entered into by the
government.
IV. STATISTICAL INFORMATION
Jordan Cement Factories
Product / year 1998 1997 1996
Clinker
National Production- ton      2,441,674       3,054,508       2,982,979
Production of enterprise- ton      2,441,674       3,054,508       2,982,979
National Production-US$    66,404,939     78,370,155     71,542,082
Production of enterprise-US$    66,404,939     78,370,155     71,542,082
National exports in tons         144,082 0                     0
Company exports in tons         144,082                     0 0
National exports in US$      4,178,384                     0                     0
Company exports in US$      4,178,384                     0                     0
National imports in tons                     0                     0                     0
Company imports in tons                     0                     0                     0
National imports in US$                     0                     0                     0
Company imports in US$                     0                     0                     0
Cement
National Production- ton      2,650,279       3,250,484       3,512,190
Production of enterprise- ton      2,650,279       3,250,484       3,512,190
National Production-US$    98,268,408   116,256,977   118,483,285
Production of enterprise-US$    98,268,408   116,256,977   118,483,285
National exports in tons         429,522          975,537          951,215
Company exports in tons         429,522          975,537          951,215
National exports in US$    11,545,983     35,087,637     38,621,156
Company exports in US$    11,545,983     35,087,637     38,621,156
National imports in tons                     0                     0                     0
Company imports in tons                     0                     0                     0WT/ACC/JOR/26
Page 6
Jordan Cement Factories
Product / year 1998 1997 1996
National imports in US$                     0                     0                     0
Company imports in US$                     0                     0                     0
V. REASONS WHY NO FOREIGN TRADE HAS TAKEN PLACE (IF THIS IS THE
CASE) IN PRODUCTS EFFECTED.
Jordan Cement Factories has not imported in more than five years since its production capacity
currently meets local demand and its fluctuations.
Export activity has been noticed. Please see section IV above.
VI. ADDITIONAL INFORMATION
None.WT/ACC/JOR/26
Page 7
Jordan Petroleum Refinery Co. Ltd. (JPRCL)
III. DESCRIPTION OF THE FUNCTIONING OF STATE-TRADING ENTERPRISES
Describe item by item, the functioning of such enterprise and state in particular whether the
enterprise deals with exports or with imports or with both?
JPRCL was established in 1956 as a public shareholding company. Currently 52 per cent of the issued
share capital is owned by individuals, 11 per cent by companies, 12 per cent by banks, 17.5 per cent
by government, 7 per cent Savings and Provident Funds and 0.5 per cent others.  JPRCL is registered
in Amman Financial Market  (AFM) and its shares are traded publicly to local and foreign investors
subject to the laws and regulations of AFM.
JPRCL’s main activities and functions include:
- Refining and processing crude oil to meet local demand requirements for the following
hydrocarbon products: Liquid Propane Gas (LPG), Gasoline, Avtur, Kerosene, Light Gas Oil,
Fuel Oil, and Asphalt.
- Producing lubricating oil under the brand name of JOPETROL.
- Bottling of LPG and maintaining LPG cylinders.
- Servicing airport station to provide national and international carriers with fuel.
Law No. (19) was issued to approve the concession agreement signed between the Government of
Jordan and JPRCL. The concession agreement which is valid for fifty years grants JPRCL the
exclusive rights to establish and invest in facilities for the refining and processing of petroleum and
hydrocarbon products and derivatives; to store and distribute these products; and to own and lease
land. The company also has exclusive rights to import oil and hydrocarbon products necessary for
local use. Concession agreement is valid through year 2008.
JPRCL was also granted an exemption from all fees and customs duties charged on goods and
materials imported for the company's operations in addition to raw material imported for its refininguse.
Import activities
- Crude Oil: JPRCL imports the needed amount of crude oil under protocol agreement in
coordination with the government.
- Hydrocarbon products: JPRCL imports the need ed amount of hydrocarbon products under
protocol agreement in coordination with the government.
- LPG and base oil: JPRCL imports the needed amount of base oil under protocol agreement in
coordination with the government. If the needed amounts are larger than the protocol quota,
JPRCL purchases the extra needed quantities of LPG and base oil through international
tenders.
- Additives and other materials: JPRCL purchases the needed amounts of additives and other
materials through tenders.
- LPG Cylinders: JPRCL manufactures and imports LPG cylinders to meet local market
demand through tenders. JPRCL is the sole importer.
Exports activities
Neither JPRCL nor other entities in Jordan exports any of the refined or other related material that
were mentioned above.  No export activities are conducted.WT/ACC/JOR/26
Page 8
Whether private traders are allowed to import or export and, if so, on what conditions?
Private traders are not allowed to import Crude O il, Hydrocarbon Products (LPG, Gasoline, Fuel Oil
and Light Gas Oil), Base oils and additives and LPG Cylinders.
Private traders are allowed to import lubricating oils, but they are not allowed to set up manufacturing
operations of such oils.
Export activities do not take place.
Whether there is free competition between pri vate traders and the State trading enterprises?
There is no free competition between private traders and the State traders except in selling Lubricating
oils.  JOPETROL (brand name) lubricating oil, produced by JPRCL, competes with other imported
products in the local market and is estimated to have over 80 per cent of the local market share.
Criteria used for determining the quantities to be exported or imported.
Imported quantities are based on the country’s demand. JPRCL, in coordination with the government,
determines a yearly import plan which specifies the quantities of raw materials and finished products
to be imported taking into consideration the production requirements and capacities of the refinery.
All other trading activities are the sole concern of JPRCL and are tendered in the local and
international markets.
No export activities take place.
How export prices are determined; how the mark -up on imported products is determined; how
export prices and the re-sale prices of import compare with domestic prices?
According to the terms of the concession agreemen t, the Government of Jordan has the right to
determine and control prices of oil, crude oil and products supplied for local consumption. JPRCL
should submit to the government a detailed statement of the production costs and accordingly sales
prices and mark-ups are determined.
The cost price of crude oil supplied by the gove rnment is determined using the following equation:
Cost of Crude Oil = Revenues - (Costs  + Net Income)
The consumer prices equal the production cost  plus fees plus company commissions plus
transportation costs plus distributors commissions.  Consumer prices differ from one product to
another.
The government sets prices. In setting prices the government takes into consideration the economical
situation that is prevailing in the country and the purchasing power of the citizens of Jordan. Pricesare not changed frequently.
No export prices.
Whether long-term contracts are negotiated by the State-trading enterprise; whether States
Trading methods are used to fulfil contractua l obligations entered into by the government.
State trading methods are used to fulfil contractual obligations for certain materials and products. The
following illustrates which products are:WT/ACC/JOR/26
Page 9
- Crude Oil: JPRCL imports the needed amount of crude oil under protocol agreement in
coordination with the government.
- Hydrocarbon products: JPRCL imports the need ed amount of hydrocarbon products under
protocol agreement in coordination with the government.
- LPG and base oil: JPRCL imports the needed amount of base oil under protocol agreement in
coordination with the government. If the needed amounts are larger than the protocol quota,
JPRCL purchases the extra needed quantities of LPG and base oil through international
tenders.
- Additives and other materials: JPRCL purchases the needed amounts of additives and other
materials through tenders.
- LPG Cylinders: JPRCL manufactures and imports LPG cylinders to meet local market
demand through tenders.
IV. STATISTICAL INFORMATION
Jordan Petroleum Refinery Company
Product / Year 1998 1997 1996
Hydrocarbon Products / ton 3,236,873 3,257,268 3,154,247
Lubricating Oils / ton 19,423 20,166 22,292
LPG Cylinders (12.5 kg) 56,550 80,000 96,250
Total Production in Ton 3,256,296 3,277,434 3,176,539
Drums in Numbers 1,050 1,377 2,796
Drums with Asphalt in Numbers 12,149 12,424 15,231
Imports in ton:
Crude Oil 3,557,778 3,442,658 3,274,296
Hydrocarbon Products 1,152,660 932,437 1,192,207
Base Oils 14,268 16,476 23,915
Additives 2,446 2,153 2,714
Cylinders of 12.5kg 200,000 150,000 150,000
Company production in JD 413,903,112 391,371,711 351,854,432
Company production in US$ 582,962,130 551,227,762 495,569,623
Company imports in JD 463,491,583 449,921,520 452,269,443
Company imports in US$ 652,805,046 633,692,281 636,999,215
Source:  Jordan Petroleum Refinery company annual reports.
V. REASONS WHY NO FOREIGN TRADE HAS TAKEN PLACE (IF THIS IS THE
CASE) IN PRODUCTS AFFECTED
Foreign trade has taken place. Please see answer to Section IV above.
VI.  ADDITIONAL INFORMATION
None.WT/ACC/JOR/26
Page 10
Jordan Phosphate Mines Co. (JPMC)
III. DESCRIPTION OF THE FUNCTIONING OF STATE-TRADING ENTERPRISES
Describe item by item, the functioning of such enterprise and state in particular whether the
enterprise deals with exports or with imports or with both?
JPMC was established in 1935 as a private company, and was later registered as a Public
Shareholding in 1953. The government and the priv ate sector jointly own JPMC. JPMC share holders
presently are: Jordan Investment Corporation 42.2 per cent, Social Security Corporation 28.4 per cent,
Government of Kuwait 16.3 per cent, Others 7.5 per cent, The Housing Bank 2.5 per cent, Arab
Petroleum Investment Corporation with 1.3 per cen t, Arab Mining Company 1.3 per cent and Islamic
Development Bank – Jeddah with 0.5 per cent.  JPMC  is registered in Amman Financial market and
its shares are traded openly to local and foreign investors subject to the laws and regulations of
Amman Financial Market.
JPMC extracts Phosphate from four different mine s in Jordan. JPMC has “Mining Rights” for these
locations, which were granted by the Government of Jordan based on Law No. 12 of Natural
Resources 1968, (mining rights No. 1 and 2) and for thirty years. Mining rights are subject to re-
negotiation and renewal once they expire.
Hasa, Rusaifa and Wadi Al Albiad locations mining rights are valid from December 17th, 1968 to
1998.   Shaidiah location Mining rights are valid from November 1987 to 2017.
According to JPMC’s company law,  the company has the right to export directly or sell through
intermediaries if and only if intermediaries adhere to the marketing policies of the company.  For this
activity, enterprise deals with exports.
JPMC’s industrial complex in Aqaba produces different types of Fertilizers and Fertilizers raw
materials and markets it in the local and international market. Presently the Fertilizer complex
produces: DAP Fertilizers (DI-Ammonium Phospha te), Sulphuric Acid, Phosphoric Acid and
Aluminum Fluoride. JPMC has the right to export directly or through intermediaries if intermediaries
adhere to the marketing policies of the company. Other Fertilizer companies operate in Jordan and
compete freely.
Currently, JPMC is a partner with Indo Jordan Chemicals Co., Nippon Jordan Fertilizer Co., FFC-
Jordan Fertilizer Co., and Hydro Agri. Jordan. These compnaies are totally independent entities
registered in accordance to Companies Law in Jordan. These companies have sales agreements with
JPMC to buy Phosphate and other raw materials from JPMC. Sales agreements are usually valid forten years and thereafter re-negotiated.
JPMC also is the sole importer of Explosive Materials used for mining and quarrying purposes as per
the Prime Minister instructions dated May 29
th, 1979. The instructions gave JPMC the exclusive
responsibility for importing, storing and sellin g explosive raw materials in Jordan. Currently,
instructions to import and store explosive materials are indefinite. For this activity, enterprise deals
with imports.
The main reason for granting this exclusivity is for security purposes given the fact that JPMC is the
prime user of these raw materials. Currently JPMC imports the following: Ammonium Nitrate (usedfor explosive purposes), Detonating Fuse, Safety  Fuse, Ordinary Aluminum Detonators, Electrical
Detonators, Igniters, and Sodium Nitrate. Special Gelatin is presently bought from the local market,
however, other local enterprises have to still buy Gelatine through JPMC.WT/ACC/JOR/26
Page 11
Whether private traders are allowed to import or export and, if so, on what conditions?
Regarding Phosphate Rocks: To date, JPMC has been the sole exporter of Phosphate in Jordan. Local
private traders are not allowed to export. International Private traders are allowed to export if they are
opening new markets and they are not under cutting the prices of JPMC in international markets.
Importing has not been attempted due to large deposits of Phosphate in Jordan.Regarding Fertilizers and other raw materials currently being produced by JPMC’s industrial
Complex:  To date, JPMC is the sole exporter of its’ Fertilizer and Raw materials production. Other
private traders can import and export the different types of Fertilizers and raw materials.
Regarding Explosive Raw materials: Private traders are not allowed to import or export the above
mentioned explosive materials. Users can only purchase same from JPMC and after the Police
Department approval and direct supervision.
Whether there is free competition between pri vate traders and the State-trading enterprise?
For Phosphate there is no free competition between State and Private Traders as JPMC has the right
for mining and stipulates its terms for exporting.
Fertilizers and other raw materials. JPMC directly imports its needed raw material and directly
exports to international market. Other Private traders can export if they do not undercut JPMC prices
and penetrate the markets where JPMC sells.
Other Fertilizer companies operate in Jordan and are free to conduct their commercial activities as
they see fit.
For explosive material there is no competition between private traders and the state trader, as private
traders are not allowed to import or sell these materials.
Criteria used for determining the quantities to be exported or imported.
For Phosphate: The main criteria used for determining quantities to be exported are tenders, estimated
level of international demand and anticipated market penetration rate, production capacities of thedifferent mines and sales agreements that have already been concluded with local Joint ventures.
For DAP Fertilizers (DI-Ammonium Phosphate) and other related raw materials: the main criterion is
production capacities. Production capacities are limited.
For Explosive Materials: Quantities purchased depend on JPMC needs, local market demand and the
availability of storage space. JPMC consumes 80 per cent of total imports. Given the fact that these
raw materials require a lot of space for safety measures, the responsible department usually imports a
supply of two months to minimize  explosion risks especially Ammonium Nitrate (explosive grade).
How export prices are determined; how the mark -up on imported products is determined; how
export prices and the re-sale prices of imports compare with domestic prices.
For Phosphate: currently export prices are determined by international commodity prices. Prices are
set in accordance to prevailing Phosphate prices in the international market, which is highly related todemand issues.
For Fertilizers DAP, (DI-Ammonium Phosphate) prices are determined by international prices, which
change on weekly basis. Main indicator for price is the U.S.A. Fertilizers market prices.WT/ACC/JOR/26
Page 12
For Explosive Materials: Currently the re-sale price of imports are determined as follows: Cost +
transportation +Customs + direct and indirect expenses + profit margin of 20 per cent. Handling
expenses are very high due to high security measures that the Police and Department of Security
require.
Whether long- term contracts are negotiated by the State-trading enterprise; whether State
Trading methods are used to fulfill contractua l obligations entered into by the government.
Contracts are negotiated on commercial basis. JPMC has not fulfilled contractual obligations entered
to by the government.
IV. STATISTICAL INFORMATION:
Jordan Phosphate Mines Co.
Product / year 1998 1997 1996
Phosphate
National Production- ton  5,925,000 5,895,000  5,355,000
Production of enterprise- ton  5,925,000  5,895,000  5,355,000
National Production-US$ N.A. N.A. N.A.
Production of enterprise-US$ N.A. N.A. N.A.
National exports in tons  4,560,000  4,718,000  4,352,000
Company exports in tons  4,560,000  4,718,000  4,352,000
National exports in US$ 194,360,000 202,744,000 178,421,000
Company exports in US$ 194,360,000 202,744,000 178,421,000
Source:  JPMC Annual Reports and Financial Department
Jordan Phosphate Mines Co.
Product / year 1998 1997 1996
Explosive materials
Ammonium Nitrate/explosive grade
National Imports volume/tons  20,000  17,000  12,000
National Imports value/US$
Co. imports in Volume/ton  20,000  17,000  12,000
Co. imports in value/US$  5,120,745  3,875,652  2,851,799
Detonating Fuse/cortex
National Imports volume/meters  6.0 m  6.0 m  4.0 m
National Imports value/US$
Co. imports in Volume/meters  6.0 m  6.0 m  4.0 m
Co. imports in value/US$     682,611     704,225     421,070
Safety Fuse/regular
National Imports volume/meters  1.0 m     250,000     250,000
National Imports value/US$
Co. imports in Volume/meters  1.0 m     250,000     250,000
Co. imports in value/US$  81,986  19,014  15,549
Ordinary Aluminum Detonator
National Imports volume/piece     0  0.5m 0
National Imports value/US$
Co. imports in Volume/piece 0  0.5m 0WT/ACC/JOR/26
Page 13
Jordan Phosphate Mines Co.
Product / year 1998 1997 1996
Co. imports in value/US$  22,723
Electric Detonator
National Imports volume/piece 0  1.0m 0
National Imports value/US$
Co. imports in Volume/piece 0  1.0m 0
Co. imports in value/US$     132,207
Igniters
National Imports volume/piece 0  15,000 0
National Imports value/US$
Co. imports in Volume/piece 0  15,000 0
Co. imports in value/US$  10,845
Sodium Nitrate
National Imports volume/ton    50 0 0
National Imports value/US$
Co. imports in Volume/ton    50 0 0
Co. imports in value/US$  24,627
Source:  Jordan Phosphate Mines Co.  National Imports = Co. imports
      Army and other Security figures are not available.
V. REASONS WHY NO FOREIGN TRADE HAS TAKEN PLACE (IF THIS IS THE
CASE) IN PRODUCTS AFFECTED.
Foreign trade has taken place. Please see answer in section IV above.
VI. ADDITIONAL INFORMATION
None.WT/ACC/JOR/26
Page 14
Jordan Tanning Co. Ltd. (JTCL)
III. DESCRIPTION OF ENTERPRISE
Describe item by item, the functioning of such enterprise and state in particular whether the
enterprise deals with exports or with imports or with both?
JTCL was established in 1957 as a public shareholding company.  The government and the private
sector jointly own JTCL. JTCL is registered in Amman Financial Market  (AFM) and its shares are
traded publicly to local and foreign investors subject to the laws and regulations of AFM.
JTCL concession agreement was granted in 1962. Law No. 9 was issued, to enact and notarize the
concession agreement granted by the government of Jordan. Concession is valid for forty years and
expires in March 2002. Concession agreement grants JTCL the right to be the only importer of
rawhides and skins, the only exporter of rawhides and skins and the only exporter of tanned leather.
Other traders can import tanned leather to be used in their manufacturing operations. Enterprise deals
with export and imports.
JTCL main activities include local purchasing of rawhides and skins, importing required rawhides and
skins, tanning leather either (partially or completely), exporting tanned leather in addition to
manufacturing shoes. Currently, JTCL produces the fo llowing types of leather: Upper leather, Lining
leather, Sole leather and Pickled Leather.
Shoe manufacturing activity, is primarily for boots. Two thirds of the JTCL leather production goes to
JTCL’s own shoe factory that manufactures mainly army boots to supply Jordan’s armed forces, air
force, public security and civil defense.
Whether private traders are allowed to import or export and, if so, on what conditions?
Private traders are not allowed to import nor export rawhides and skins.  Private traders are allowed to
import tanned leather. Private traders are not allowed to export tanned leather.
Whether there is free competition between pri vate traders and the State trading enterprises?
For tanned leather there is free competition in importing. Private traders can import any type of
leather from international markets.
JTCL is the only exporter of tanned leather as it is the only enterprise that tans leather.
For rawhides and skins there is no competition.
JTCL is the only major buyer in the local market. Some trading activity is apparent in the local market
amongst traditional and hand craft shops, but not of major importance.
JTCL is the only exporter of rawhides and skins in Jordan.
Criteria used for determining the quantities to be exported or imported.
The main criteria used for determining quantities to  be imported for rawhides and tanned leather are
JTCL own consumption and local market needs if any. For exporting, the main criteria are JTCL
production capacity, export market demand, and availability of local supply of rawhides and skins.
How export prices are determined; how the mark -up on imported products is determined; how
export prices and the re-sale prices of import compare with domestic prices?WT/ACC/JOR/26
Page 15
Export prices are set competitively with international market rates.
Re-sale prices of imports are determined in accordance to actual expenses plus profit .  Given the fact
that JTCL is the only tanning company in Jordan, there is no basis for price comparison to otherdomestic prices.
JTCL selling price to its own shoe manufacturing activity is the same as the market selling price for a
particular type of leather.
Imported tanned leather prices differ in accordance to type of leather and source of origin.
Whether long-term contracts are negotiated by the State-trading enterprise; whether States
Trading methods are used to fulfill contractua l obligations entered into by the government.
All contractual obligations are negotiated on commercial basis. JTCL does not fulfill any contractual
obligations entered into by the government. Sales to the Government of Jordan are usually tendered
and awarded to best bidder.
IV. STATISTICAL INFORMATION:
Jordan Tanning Co. Ltd.
Product / year 1998 1997 1996
Leather
National Production-sq ft 3,033,648 4,204,082 4,250,404
Production of enterprise- sq ft 3,033,648 4,204,082 4,250,404
National Production-kgs 33,650 46,679 54,388
Production of enterprise- kgs 33,650 46,679 54,388
National Production-US$  N.A.  N.A.  N.A.
Production of enterprise-US$  N.A.  N.A.  N.A.
National exports in sq ft  N.A.  N.A.  N.A.
Company exports in sq ft  N.A.  N.A.  N.A.
National exports in kg  N.A.  N.A.  N.A.
Company exports in kg  N.A.  N.A.  N.A.
National exports in US$ 2,046,334 4,170,899 10,745,889
Company exports in US$ 2,046,334 4,170,899 10,745,889
National imports in sq ft  N.A.  N.A.  N.A.
Company imports in sq ft  N.A.  N.A.  N.A.
Company imports in JOD 375,000 237,000 700,000
Company imports in US$ 528,169 333,803 985,915
Source:  Jordan Tanning Co. Ltd./Annual reports and Finance Department
IV. REASONS WHY NO FOREIGN TRADE HAS TAKEN PLACE (IF THIS IS THE
CASE) IN PRODUCTS EFFECTED.
See section IV above.
VI. ADDITIONAL INFORMATION
None.WT/ACC/JOR/26
Page 16
Jordan Vegetable Oil Industries Co. Ltd.
III. DESCRIPTION OF ENTERPRISE
Describe item by item, the functioning of such enterprise and state in particular whether the
enterprise deals with exports or with imports or with both?
Jordan Vegetable Oil Industries Co. Ltd. is a publicshare holding Co. that was established in 1956.
The company produces edible Vegetable Oils and Ghee (margarine) and sells in the local and
international market. Previously, the company’s conc ession agreement gave them the exclusive right
to produce Vegetable Oil and  and exclusive right to export them. Concession was valid for thirty
years effective from 1956 through 1986; prime ministry decision No. 181 dated March 26th, 1956. The
concession was then renegotiated and renewed for fifteen years with its exclusivity being applicable
only to Vegetable Ghee (margarine) and not oils. Concession agreement is valid through the year
2001. The enterprise deals with exports only.
In practice, exclusivity does not apply. It is estimated that nine other companies are licensed to
produce Ghee (margarine) and oil and some export their production to international markets.
Whether private traders are allowed to import or export and, if so, on what conditions?
Private traders are not allowed to export Vegetable Ghee (margarine) as per the terms of the
agreement. Export activities have taken place during the past years by other manufacturers and private
traders. Jordan Vegetable Oil industries Co. Ltd., either exports directly or through private traders to
international markets.
There is no restriction on imports
Whether there is free competition between pri vate traders and the State trading enterprises?
There is free competition. Other companies have licenses to produce Vegetable Ghee (margarine) and
do sell them in the local and international markets.   Jordan Vegetable Oil Industries Co. Ltd. exports
through private traders and directly.
Criteria used for determining the quant ities to be exported or imported.
The main criterion used for determining quantities to be exported is demand.
How export prices are determined; how the mark -up on imported products is determined; how
export prices and the re-sale prices of import compare with domestic prices?
Export prices are determined by international market prices. Pricing is determined on competitive
basis.
Whether long-term contracts are negotiated by the State-trading enterprise; whether States
Trading methods are used to fulfill contractua l obligations entered into by the government.
Contracts are negotiated on commercial basis. Jordan Vegetable Oil industries Co. Ltd. does not fulfil
contractual obligations entered to by the government.WT/ACC/JOR/26
Page 17
IV. STATISTICAL INFORMATION:
Jordan Vegetable Oil Industries Co. Ltd.
Product / year 1998 1997 1996
Ghee (margarine) (Vegetable origin)
National Production- ton  N.A.   N.A N.A.
Production of enterprise- ton  27,682  23,188 21,108
National Production-US$ N.A. N.A. N.A.
Production of enterprise-US$ N.A. N.A. N.A.
National exports in tons N.A. N.A. N.A.
Company exports in tons 17, 189 12,751 10,328
National exports in US$ N.A. N.A. N.A.
Company exports in US$ 14,570,814 11,464,632 10,302, 290
Source: company figures / Jordan Vegetable Oil Industries Co. Ltd.
V. REASONS WHY NO FOREIGN TRADE HAS TAKEN PLACE (IF THIS IS THE
CASE) IN PRODUCTS EFFECTED.
Foreign trade has taken place. See section IV above.
Exclusive rights of concession agreement are not practiced.  It is estimated that nine other companies
are licensed to produce Ghee (margarine) and oil and some export their production to international
markets.
VI. ADDITIONAL INFORMATION
NoneWT/ACC/JOR/26
Page 18
Ministry of Industry and Trade
III. DESCRIPTION OF ENTERPRISE
Describe item by item, the functioning of such enterprise and state in particular whether the
enterprise deals with exports or with imports or with both?
The Ministry of Industry and Trade (“Ministry”) is the sole importer of Wheat Bran for animal feed.
The Ministry only imports the country’s needs in time of drought. The Ministry does not engage in
any export activities.
Whether private traders are allowed to import or export and, if so, on what conditions?
Private traders are not allowed to import. No export activities have taken place during the past three
years. There is no restriction on exports.
Whether there is free competition between pri vate traders and the State trading enterprises?
There is no free competition. The Ministry of Industry and Trade is the only entity that is currently
allowed to import.
Criteria used for determining the quantities to be exported or imported.
The main criteria used for determining quantities to be imported is demand. The feeding needs of the
livestock owners especially in drought conditions augmented with good prices.
No export activity.
How export prices are determined; how the mark -up on imported products is determined; how
export prices and the re-sale prices of import compare with domestic prices?
Imported Wheat Bran is sold at a loss to the government. The Ministry does not cover the cost of
import and therefore, only imports in emergencies.
Whether long-term contracts are negotiated by the State-trading enterprise; whether States
Trading methods are used to fulfill contractua l obligations entered into by the government.
No long-term contracts are negotiated. The Ministry puts a tender for purchasing Wheat Bran for
animal feed.  Purchases are made by the Ministry from the source(s) that offer(s) the best bid.
IV. STATISTICAL INFORMATION:
During the year 1999, the government has so far (July 1999) only imported 10 thousand tons of
Wheat Bran.  Before that foreign trade took place in the eighties.WT/ACC/JOR/26
Page 19
V. REASONS WHY NO FOREIGN TRADE HAS TAKEN PLACE (IF THIS IS THE
CASE) IN PRODUCTS EFFECTED.
Foreign trade has not taken place during the period 1990-1998 because there was no drought during
this period.
VI. ADDITIONAL INFORMATION
None.
__________