RESTRICTED
WORLD TRADE WT/ACC/JOR/3
6November 1996
ORGANIZATION(96-4683)
Original: English
ACCESSION OFJORDAN
Memorandum ontheForeign Trade Régime
Thefollowing revised Memorandum ontheForeign Trade Régime hasbeenreceived from
theGovernment oftheHashemite Kingdom ofJordan. Members interested inasking questions
concerning theforeign trade régime ofJordan areinvited tosubmit theirquestions, inwriting, tothe
Secretariat by15December 1996.
_______________
TABLE OFCONTENTS
Section page
I.INTRODUCTION 5
II.ECONOMY, ECONOMIC POLICIES &FOREIGN TRADE 5
1.Economy: 5
(a) General Description 5
(b) Current Economic Situation 6
2.Economic Policies: 7
(a) Main Directions oftheOngoing Economic Policies 7
(b) Monetary andFiscal Policies 13
(c) Foreign Exchange andPayments System 14
(d) Foreign andDomestic Investment Policies 18
(e) Other Policies Affecting Trade 20
3.Foreign Trade inGoods andServices 21
III.FRAME WORK FOR MAKING AND ENFORCING POLICIES 22
AFFECTING FOREIGN TRADE INGOODS AND TRADE IN
SERVICES
1.Powers ofExecutive, Legislative andJudicial Branches ofGovernment. 22
2.Government Entities Responsible forMaking andImplementing Policies
Affecting Foreign Trade. 22
3.Division ofAuthority Between Central andSub-Central Governments. 24WT/ACC/JOR/3
Page2
4.Changes intheRegulatory Régime. 24
5.Laws andLegal Acts. 24
6.Description ofJudicial, Arbitral orAdministrative Tribunals orProcedures 25
IV.POLICIES AFFECTING TRADE INGOODS 25
1Import Regulation: 25
(a) Registration Requirements forEngaging inImporting 25
(b) Characteristics ofNational Tariff 26
(c) Tariff Quotas, Tariff Exemptions 26
(d) Other Duties andCharges 27
(e) Quantitative Import Restrictions 27
(f) Import Licensing Procedures 30
(g) Other Border Measures 30
(h) Customs Valuation 30
(i) Other Customs Formalities 30
(j) Pre-shipment Inspection 31
(k) Application ofInternal Taxes onImports 31
(l) Rules ofOrigin 31
(m) Anti-dumping Régime 31
(n) Countervailing Duty Régime 31
(o) Safeguard Régime 31
2.Export Regulation: 31
(a) Registration Requirements forEngaging inExporting 31
(b) Customs Tariff Nomenclature, Types ofDuties, Duty Rates, Weighted
Averages ofRates 31
(c) Quantitative Export Restrictions 32
(d) Export Licensing Procedures 32
(e) Other Measures 32
(f) Export Financing, Subsidy andPromotion Policies 32
(g) Export Performance Requirements 34
(i) Import Duty Drawback Schemes 34
3.Internal policies affecting foreign trade ingoods: 34
(a) Industrial Policy 34
(b) Technical Regulations andStandards 35
(c) Sanitary andPhytosanitary Measures 36
(d) Trade-related Investment Measures 36
(e) State-trading Practices 36
(f) FreeZones 37
(g) FreeEconomic Zones 37
(h) Trade-related Environmental Policies 37
(i) Mixing Regulations 37
(j) Government-mandated Counter-trade andBarter 38
(k) Trade Agreements Leading toCountry-specific Quotas Allocation 38WT/ACC/JOR/3
Page3
(l) Government Procurement Practices 38
(m) Regulation ofTrade inTransit 38
4.Policies Affecting Foreign Trade inAgricultural Products: 39
(a) Imports 39
(b) Exports 39
(c) Export Prohibitions andRestrictions 39
(d) Export Credits 39
(e) Internal Policies 39
V.TRADE-RELATED INTELLECTUAL PROPERTY REGIME 40
1.General: 40
(a) Intellectual Property Policy 40
(b) Responsible Agencies forPolicy Formulation andImplementation 40
(c) Membership ofIntellectual Property Conventions andofRegional 40
orBilateral Agreements.
(d) Application ofNational andm.f.n. Treatment toForeign Nationals 41
2.Substantive Standards ofProtection: 41
(a) Copyright andRelated Rights 41
(b) Trademarks, Including Service Marks 41
(c) Geographical Indications 41
(d) Industrial Designs 42
(e) Patents 42
(f) Plant Variety Protection 42
(g) Layout Designs ofIntegrated Circuits 43
(h) Requirements onUndisclosed Information 43
(i) AnyOther Categories ofIntellectual Property 43
3.Measures toControl Abuse ofIntellectual Property Rights 43
4.Enforcement 44
5.Laws, Decrees, Regulations andOther Legal ActsRelating totheAbove 45
6.Statistical DataonApplications forandGrants ofIntellectual Property Rights 45
VI.TRADE -RELATED SERVICES REGIME 45
2.Policies Affecting Trade inServices 45
3.Specific Sectors 47
(a) Financial Services 47
(a.1) Banking Services 47
(a.2) Insurance Services 50
(a.3) Amman Financial Market 51
(b)Telecommunications 52
(c)Health Services 55WT/ACC/JOR/3
Page4
(d)Tourism 56
(e)Construction 56
VII.INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES. 57
1.Bilateral orPlurilateral Agreements Relating toForeign Trade inGoods and 57
Trade inServices
2.Economic Integration, Customs Union andFree-trade Agreements 57
3.Labour Markets Integration Agreements 58
4.Multilateral economic cooperation, membership inthemultilateral 58
economic organizations, trade-related programmes ofother multilateral
organizations
VIII. ANNEXES
Annex 1:Statistics andPublications 59
Annex 2:ListofLaws andLegal Acts 60
Annex 3:Information onImport Licensing Procedures 61
Annex 4:Information onImplementation andAdministration ofthe 63
Customs Valuation Agreement.
Annex 5:Information onTechnical Barriers toTrade 57
Annex 6:Information onState-trading 69
Annex 7:ListofBilateral Agreements Between Jordan andOther Countries 81WT/ACC/JOR/3
Page5
I. INTRODUCTION
Jordan ’seconomy achieved highgrowth ratesduring theseventies andearly eighties when
growth ratestopped 10%annually. Jordan ’seconomy which isstrongly linked toArab economies
wasseverely affected bythefallinoilprices intheeighties andtherecession thatfollowed intheoil
producing countries. Thisrecession resulted inafallofforeign exchange remittances ofJordanians
working intheGulfcountries andadecrease inbudget support fromthese countries, aswellasafall
inexports toIraqandtheGulfcountries resulting inafurther lossofforeign earnings. Jordan adopted
itsfirststructural adjustment programme in1989inthewakeoftheeconomic crisis thatwasexperienced
in1988. Theobjectives ofthisstructural adjustment programme andthemedium termadjustment
programme1992-1998thatfollowedaretoaddressexternalandinternalimbalancesandrecapturegrowth
momentumbyadoptingtheappropriateeconomicpoliciesandstrategies.Historically,tradeandindustrial
policies inJordan focused onimport substitution asaremedy fortradedeficit withlittleattention given
toexports. After theeconomic crisis in1988, itwasrealized thatliberalisation oftradeandincreasing
anddiversifying exports rather thanrestricting imports isthemore appropriate measure forreducing
imbalances intrade. Thetraditional exports ofJordan aremineral andmineral related products including
phosphate rock, potash andfertilizers. Withdiversification non-traditional exports increased theirshare
from41%in1988to61%in1995. Initsefforts toliberalize trade, thegovernment took anumber
ofmeasures including theremoval ofquantative restrictions onimports andunifying andsimplifying
tariff structure andreducing tariff rates. Italsodeveloped theinstitutional andlegalframework and
liberalized foreign exchange payments byaccepting theobligations ofArticle VIII, sections 2,3,&
4oftheInternational Monetary Fund Agreement. Thegovernment hasmoved from protocol trade
toMFN based freetrade agreements withitstrade partners. Inorder toridtheeconomy ofmarket
distortions andcutdown public expenditure, thegovernment drastically reduced pricesubsidy ofwater
forfarming andraised theprices ofelectricity torecover costs, aswellasremoving price subsidies
ofwheat andfodder. Thegovernment hasdrastically decreased itsroleasaninvestor andproducer.
Toensure thesmooth operation ofprivatisation, aHigher Ministerial Committee headed bythePrime
Minister wasformed tolaydown theprivatisation policy. Enterprises owned bytheGovernment are
being privatized, andtheGovernment isselling itsshare inpublic share holding companies, theprivate
sector isnowactively involved inrunning theeconomy.
Jordan ’scurrent economic policies andpractices aredefinitely thoseofanopenmarket economy
andareinlinewiththeWorld Trade Organisation objectives. With theincreased importance ofthe
globalisation oftrade, Jordan decided toaccede totheWTO inaccordance withtheprovisions ofArticle
XIIoftheMarrakesh Agreement Establishing theWorld Trade Organisation. Jordan intends toaccept
theobligations andavailitself oftherights under WTO asadeveloping country member.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. Economy:
(a) General description
Jordan measures 89544 square kilometres. Itforms ageographical unitwiththeSham Region
(large Syria) intheaspects oftopography, population, weather andhistory. Jordan occupies amiddle
location among theArab-Asian states. Itissurrounded bySyria fromtheNorth, IraqandSaudi Arabia
fromtheEast, GulfofAqaba andSaudi Arabia fromtheSouth andPalestine andIsrael fromtheWest.
Topographically, Jordan isdivided intofourregions: theplateaus consisting ofnorthern and
eastern plateaus; thevalleys, comprising theJordan Valley, theDead SeaValley andtheWadi Araba
Valley; themeadows; andthedesert.WT/ACC/JOR/3
Page6
Thepopulation ofJordan exceeds 4.3million withanaverage growth rateof3.2% forthe
lastdecade. Jordan isayoung nation interms ofpopulation age,asmore thanhalfofthepopulation
or(51%) arebelow theageof15,andthepercentage oftheelderly doesnotexceed 4%oftotal
population.
Jordan 'seconomic position reflects itsstructural features anditsstrong linkstotheeconomies
oftheregion. Macroeconomic andfinancial imbalances thatcharacterized theJordanian economy
throughout theprevious threedecades werecontinuously counterbalanced byexternal financial inflows
intheformofworkers 'remittances andgrants fromregional countries. Theregional recession resulting
from declining oilprices inthemideighties severely curtailed these financial inflows. Economic
imbalances surfaced. Bothfiscal andexternal current account deficits reached around 20%ofGDP,
andtheexternal debtincreased toalmost 165% ofGDP. This necessitated thelaunching ofa
comprehensive program ofeconomic reform which consisted ofapackage ofpolicy andinstitutional
measures tobring about fiscal andmonetary stability, aswellas,astructural transformation ofthe
economy. Thisprogram wassupported in1989 bytheIMF, theWorld Bank andother development
partners ofJordan.
(b) Current economic situation
Adjustment efforts thatwere initiated in1989 were bearing fruitandtheeconomy hadjust
started torespond favourably tothese efforts when theGulfcrisis erupted inmid1990. Asaresult,
imbalances wereaccentuated asJordan 'sexports sharply dropped, remittances fromJordanian workers
fellandincomes from transit transport, tourism andtravel were lost.Moreover, theinflux ofabout
300,000 Jordanians working abroad, thesurge ofunemployment toaround 25%ofthelabour force
andadecline inpercapita income andconsumption posed serious challenges forJordan.
TheGovernment, determined tocarry outeconomic reforms, resumed theadjustment program
andwasabletosurpass thetargets fortheperiod 1992-1994. After several years ofdecline andvirtual
stagnation ineconomic activity, realGDP increased bymore than11%in1992. Bumper agricultural
crops, andasurge inconstruction, trade, andmanufacturing activities contributed tothisrecord increase
inoutput. In1993and1994, realGDPgrowth registered 5.7% and5.8% respectively. Price stability
wasanother noteworthy achievement; budgetary andmonetary restraint onthedemand sideandadequate
availability ofdomestic andimported goods onthesupply sidehelped contain inflation toaround 4%
in1992, 4.8% in1993 and3.9% in1994.
Themostsignificant anddetermined adjustment effort wasmade inthebudgetary area. The
GovernmentofJordansuccessfullyimplementedrevenueenhancingmeasures-includingalargeincrease
inpetroleum product prices, andreduction offoodsubsidies. These fiscal efforts, combined withstrict
expenditure control andbuoyant revenue collection associated withthesurge indomestic economic
activity, contributed substantially toasharp reduction inthefiscal deficit, tolessthan6%ofGDP
in1992, 4.3% in1993 and2.6% in1994 compared to18%recorded in1991.
Duringthelastfive-yearperiod,Jordan'sbalanceofpaymentscomponentswitnessedconsiderable
changes. Thebalance oftrade deficit surged fromJD(1008.6) million in1990toJD(1347.1) million
in1995.Thisincrease intrade deficit wasmainly financed bytheservices surplus which increased
fromJD(326.4) million toJD(999.9) million during thesame period. Another source offinance was
theunrequited transfers which decreased from JD(409.4) million in1990 toJD(178.5) million in
1995.WT/ACC/JOR/3
Page7
Furthermore, thecurrent account deficit widened through theyears 1990-1992 butdescended
during thefollowing three years. ItrosefromJD(272.8) million in1990toreach JD(568.7) million
in1992 thenshrank toJD(279.2) million andJD(168.7) million in1994 and1995, respectively.
Nevertheless, theexternal debtrescheduling contributed totheimprovement oftheoverall balance
during theperiod 1989-1995. In1991 theoverall balance registered asurplus ofJD(464.2) million
ascompared withasurplus ofJD(205.7) million in1990. Thiswasmainly duetotheincrease inthe
transfer ofworkers 'savings intheaftermath oftheGulfCrisis. Theoverall balance recorded adeficit
ofJD(36.9) million andJD(218.4) million in1992 and1993, respectively. In1994, thedeficit
decreasedconsiderablytoreachJD(28.4)million,andin1995theoverallbalanceimprovedsubstantially
andrecorded asurplus ofJD(316.5) million.
Thecurrent account deficit toGDPreached 11%in1993and4.2% in1994and3.7% in1995
compared to6%in1992. TheGovernment 'scommitment tomaintain acompetitive exchange rate
policy andthemeasures taken tofurther liberalize theforeign exchange system contributed tothis
achievement.Jordanalsosucceededinreducingsubstantiallytheoutstandingexternaldebtbothinnominal
terms andinrelation toGDP, andimproved significantly itsdebtprofile andcredit worthiness through
prudent debtmanagement policy. Substantial debtrelief from bilateral official creditors greatly
complemented Jordan 'sefforts toward stabilization ofexternal debtmanagement. Jordan signed three
rescheduling agreements withParisClubin(1989, 1992, 1993) anddebtrestructuring agreement with
London Club. Moreover, Jordan debtforgiveness in1994and1995amounted toU.S.$(771) million
from thegovernments ofUS,UK, Germany andFrance. Theoutstanding external debtdeclined to
142% ofGDP in1992, 133.6% in1993 and115% in1994 compared with189% in1990.
Classification ofexternal debtaccording toitsmaturity in1995 shows thatlong-term loans
constituted 92.9% oftheoutstanding public debt, whereas theother loans constituted theremaining
percentage. Loans extended byforeign andArabgovernments formed 68.6% oftheoutstanding balance
ofexternal debt; multilateral institutions accounted for21.3%; bonds andleasing contracts formed
7.1%; andloans from foreign banks andcompanies formed theremaining 3.2%.
Thisremarkable growth andJordan 'srelentless efforts toachieve economic reforms havehad
adverse effects especially onthelow-income segments ofsociety. Although unemployment wasreduced
toabout 15%bytheendof1992through 1994, itstillremains amajor challenge which requires effective
medium andlongtermremedial measures through expansion ofprivate investment, establishing labour
intensive projects, promoting export industries, organising theinflow offoreign workers, encouraging
external migration andregulating theoutput oftheeducational system. Percapita income declined
inrealterms from JD.728 in1988 toJD.615 in1994. Moreover, thepercentage offamilies under
thepoverty lineincreased from18.7% in1987to21.3% in1991andthendeclined to16.1% in1992.
2. Economic Policies
(a) Main Directions oftheOngoing Economic Policies
Theissues ofunemployment andpoverty arenotaddressed directly intheadjustment program.
These highly sensitive issues havetobedealt withinorder toallow forsteady improvement inper
capita income andliving standards. Thus, theGovernment encompassed theadjustment program in
amore comprehensive economic andsocial package intheformofthenewfiveyearplan, 1993-1997,
tocomplement itandincrease itschances ofsuccess bypaying attention tosocial issues thattheprogram
didnotaddress.WT/ACC/JOR/3
Page8
(a.1) Objectives andBasic Principles ofthePlan
Thebasic objectives ofthePlanarethefollowing:
(i) toensure fiscal andmonetary stability andeliminate price andproduction distortions;
(ii) toredirect economic activities andpolicies withtheaimofreducing disparities among social
groups andgeographical regions; byinsuring equality ofopportunity, combating poverty and
providing allcitizens withbasic services;
(iii) tocombat poverty andprotect underprivileged groups ensuring aminimal levelofdecent living
forthem;
(iv) toexpand anddiversify theincome andemployment-generating production baseandtodevelop
ahighly competitive export sector;
(v) toenhance thecapabilities ofallcitizens andcreate theproper conditions conducive tocitizens
toinvest theirpotential;
(vi) toconserve theenvironment andprevent thedeterioration ofitscomponent elements. This
istobeachieved byregulating economic andhuman activities insuchawayastosecure a
healthy environment forpeople aswellasforfauna andflora, toensure non-depletion of
exhaustible resources andtocheck soilerosion, desertification andpollution.
Theeconomic policy inJordan isbased onanumber ofgeneral principles mostimportant of
which arethefollowing:
(i) todevelop theregulatory andsupervisory roleoftheGovernment andtoreduce itsdirect role
inproductive sectors suchasagriculture, mining, manufacturing industries, wholesale andretail
trade, restaurant andhotels andfinance andbusiness services; toactivate private sector
investment intheareasofdirect production, infrastructure, andbasicservices; andtorestructure
public sector corporations withfinancial difficulties; through improving theirefficiency and
gradually implementing measures toeliminate subsidies, recover costsandadopt commercial
performance criteria;
(ii) todevelop natural resources, particularly water andenergy, through identifying water resources
andchannelling available quantities towards thebestpossible useswithin anintegrated water
plan,ensuring optimal useofavailable energy sources; anddeveloping production institutions
administratively andfinancially;
(iii) todevelop theexport sector byopening newexport outlets, expanding traditional markets,
andtrainingmanpowerinamannercommensuratewiththeneedsofexploitingvariableresources
andtherequirements ofindustries andservices enjoying acomparative advantage. Thiswould
involve:
- developing theservices needed forincreasing export opportunities;
- reviewingandamendinglegislation,policiesandmeasuresneededforfurtheringexports;
- improving thequality ofJordanian products soastomeettherequirements ofexport
markets, andensuring parity ofJordanian specifications with their international
counterparts;
- ensuring theprovision ofadequate credit facilities forthepromotion ofexports;
- amending thecustoms tariff structure toremove anybiasagainst export industries;
- activating andpromoting theroleofprivate sector export corporations;
- reassessing theefficiency ofbilateral trade agreements andprotocols inpromoting
exports;
(iv) toensure abalance between human andeconomic resources through thedevelopment of
education andvocational training;
(v) tocreate newjobopportunities inthevarious production sectors, withtheaimofachieving
areduction inunemployment toanacceptable level. Thisistoberealised through:WT/ACC/JOR/3
Page9
- expanding training opportunities fortheunemployed andforlowincome groups to
enable them toacquire additional skills which would increase theircompetitiveness
inthelabour market;
- secure financing forincome andlabour-generating projects, particularly forlowincome
groups;
- promoting small labour-intensive industries;
- regulating thelabour market, andidentifying work opportunities abroad toabsorb part
oftheunemployed;
(vi) tobuild national capabilities inthefields ofscience, technology andinformatics through:
- keeping abreast ofandassimilating technological developments;
- establishing special centres fordeveloping production methods inthelightofmodern
technology findings;
- utilizing worldwide technological progress andmobilizing thescientific capabilities
ofresearch centres anduniversities toensure proper assimilation anddevelopment
oftechnology forthebenefit oftheJordanian economy;
- developing andestablishing economic andsocial datacollection systems atvarious
levels inorder toensure theavailability ofup-to-date information toserve asabasis
foreconomic andsocial studies, anddecision-making.
(a.2.) Economic andSocial Policies
Themacroeconomic andsectoral policies oftheGovernment canbedescribed asfollows:
(a.2.1) Macro Policies
Fiscal policies willseektoreduce thedeficit inthepublic budget through controlling expenditure
andincreasing domestic revenues. Toachieve this,thefollowing measures willbetaken: thegovernment
subsidyforcommoditiesisbeingreducedand,forpublicinstitutions,completelyeliminated;government
services costs willberecovered aftertaking theneeds oflimited income groups intoconsideration;
thetaxbasewillbeexpanded anditsefficiency improved; andtheconsumption taxwasreplaced by
ageneral salestax.
Themonetary policy willseektosecure monetary stability toensure general price stability
inaddition toadequate financing foreconomic activities. Thisistobeachieved through control of
themoney supply, consolidation offoreign currency reserves, continued liberalization ofinterest rates,
theestablishment ofadeposit insurance corporation, theamendment oftheBanking Lawtoprovide
forCentral Bank supervision ofallbanking establishment andfinancial institutions, andthereduction
ofmonetary control restrictions.
Thesocial policies during thisperiod willseektoreduce development disparities among social
groups andregions andtoadvance social integration through theprotection oflower income groups
andcontrol ofsubsidy policy bydirecting ittotarget groups. They alsoaimatcontinued regional
development andatensuring abalance between resources andpopulation bylimiting theuseofresources
andadopting appropriate population policies tobeachieved through:
- optimal utilization ofallresources intheKingdom ’sregions;
- increasing jobopportunities andincome forinhabitants intheirdevelopment region andunits
todiscourage migration toalready congested centres;WT/ACC/JOR/3
Page10
- widening public participation intheprocess ofdecision making, plan formulation,
implementation, andevaluation;
- creating development centres inabalanced manner among andwithin regions;
- attaining abalanced geographical distribution ofpopulation toserve theobjectives ofstrategic
development;
- bridging disparities between andwithin regions toimprove economic growth andquality of
life.
Thesocial policies willalsofocus onsafeguarding thefamily asacornerstone ofsociety.
(a.2.2) Sectoral Policies
Thesocial sectors policies aimatraising theliving standard ofthepopulation through improving
thequantity andquality ofthesocial services offered tothem, enhancing jobopportunities, andreducing
poverty. Most important among thesocial policies arethose which seektoaccomplish thefollowing:
- toachieve abalance between resources andpopulation, toorient social services andgovernment
support towards needy groups, particularly those below thepoverty line,andtotrainand
rehabilitate suchgroups;
- todirect thework ofnon-governmental charitable organizations towards income and
labour-generating projects forpoorfamilies;
- todevelop employment policies based onthefollowing:
(i) increasing thefinancing available tosmall andmedium-size enterprises under the
guaranteed umbrella ofspecialized funds;
(ii) encouraging theestablishment ofprivate employment agencies;
(iii) finding jobopportunities outside Jordan bydisseminating information about localtalent
andexperienceandpromotingtheiremploymentthroughbilateralagreements,Jordanian
embassies andprivate employment agencies;
(iv) regulating theoutput oftheeducational system through incentive andvarious vocational
training programmes, inamanner consistent withlabour market requirements;
(v) providing sufficient information anddataonlabour supply anddemand, ensuring a
balance between them, andsearching foremployment opportunities abroad by
establishing anemployment andlabour force organisation withparticipation bythe
public andprivate sector;
(vi) todevelop allcycles ofeducation, improve school testsandpublic examinations, and
upgrade teaching efficiency;
(vii) toimprove health care, andadopt apharmaceutical policy through market economy
thatwould ensure thesustained provision ofmedicines inaccordance withthe
following:
(i)reviewing existing rulesandregulations related tothemanufacturing, import and
distribution ofdrugs;
(ii)providing allessential drugs atalltimes andensuring asufficient supply of
life-saving drugs;
(iii) providing allmedical requirements incase ofnatural disasters andother
emergencies, including humanitarian assistance toothers;
(iv)improving theroleofdomestic pharmaceutical industries inproviding medicines
tothelocalmarket;
- toestablish public libraries onawidescale, particularly inlocalcommunities, andtogivemore
attention tochildren 'sculture;
- totrainandrehabilitate thedisabled through vocational training, andtostrengthen theNational
Assistance Fund;WT/ACC/JOR/3
Page11
- topromote vocational training forjobseekers andraise occupational health, safety and
environmental standards infirms andcorporations.
Theinvestment sectors policies seektocreate anappropriate investment climate conducive
totheenhancement ofproduction fordomestic consumption andexport andtotherationalization of
imports. Thisistobeachieved by:
- providing investment information andstreamlining registration andlicensing procedures;
- promoting reliance onnon-credit financing facilities andencouraging thebanking sector to
finance needed investments;
- reducing government intervention inpricing policies, preventing theformation ofmonopolies,
andprotecting consumers;
- amending thetaxsystem byeliminating theanti-export andanti-manufacturing biasand
streamlining implementation procedures by:
(i) establishing aclearly defined system ofclassification ofgoods bycategory, each
category tocomprise fourclasses: primary, manufactured, semi-manufactured and
final-consumption goods, anddetermining thecustoms tariff rateforeachclassso
astoreduce existing variation intariff rates;
(ii) applying afixed-rate drawback system tobeimplemented according toanapproved
equation which serves boththeproducer andtheexporter;
(iii) adopting aflexible customs tariff system which allows fortherevision oftariff rates
according tofixed criteria;
(iv) developingandcomputerizingtheinformationsystemrelatedtotypesofimportedgoods
andtheirworld prices inorder tofacilitate thevaluation ofgoods;
(v) gradually introducing, wherever practical orfeasible, book auditing bytheCustoms
Department toreplace on-the-spot auditing;
(vi) reducing theperiod needed forrefunding customs duties andfeespaidforimported
goods,after re-export;
(vii) granting taxincentives, through theIncome Taxbylinking taxincentives inthe
manufacturing sector directly toinvestment andexport processes bygranting an
accelerated depreciation allowance andadeduction, from revenues, ofallresearch,
development andmarketing expenses andabolishing feesandtaxes imposed onthe
capitalization ofshareholders ’rights;
- amending theEncouragement ofInvestment Lawtoincrease investment incentives;
- improving thequality ofJordanian goods andservices toraise their competitiveness
internationally by:
(i) complying withinternational specifications current inexport markets;
(ii) setting upeducational andawareness-building programs ontheimportance ofquality;
(iii) completing andupdating Jordan ’scodes andissuing andupdating related manuals;
(iv) controlling thequality ofmaterials usedinmanufacturing industries.
- developing localmaintenance capabilities andregulating auditing services;
- restoring financial andadministrative autonomy topublic institutions andpermitting theprivate
sector toprovide public services;
- promoting exploration fordomestic ores, withprivate sector involvement;
- organizing agricultural marketing activities andoperations, expanding theareaofcultivable
land, andhelpsecure thenecessary financing foragricultural activities.
Theinfrastructure sectors policies seektomaintain andupgrade theefficiency ofinfrastructure
facilities by:
- involving theprivate sector intheimplementation andmanagement ofinfrastructure;
- completing thedevelopment oftheinfrastructure needed bytheinvestment sectors;
- enhancing public awareness ofthelimited nature ofwater andenergy resources, andimproving
theutilization ofsuchresources;WT/ACC/JOR/3
Page12
- improving thefinancial andmanagerial efficiency ofpublic organizations bycomputerizing
theiractivities, rationalizing theiruseofhuman resources, anddecentralizing theirwork to
ensure flexibility inperformance;
- regulating water useandraising theefficiency ofwater carrying systems inorder toreduce
loss;
- promoting thecompetitiveness ofdomestic contracting andengineering consultancy firms.
Comprehensive sectors policies aimatimproving public administration, raising scientific and
technological standards, adapting technology todomestic uses, andconserving theenvironment.
(a.3) Privatisation policy
Jordan 'seconomy ischaracterized byastrong private enterprise orientation. Thestate-owned
sector issmall consisting ofpublic utilities andenterprises ofstrategic importance. State ownership
takes twoforms asfollows:
(i) totalownership ofagencies andcorporations insectors suchaspublic transportation, water,
energy andtelecommunications. However, several activities havebeenopened uptoprivate sector
investment andthenational airline, public transport andtelecommunication areunder consideration
forprivatization. Thestateowned enterprises are:
TelecommunicationCorporation,PublicTransportationCorporation,RoyalJordanianAirline,
Aqaba Railway Corporation, Jordan Investment Corporation andJordan Electricity Authority.
(ii) participation inpublic shareholding companies intheindustrial andservices sectors. These
enterprises are:
JordanNationalShippingLinesCompany,IndustrialDevelopmentBank,HousingBank,
ArabMining Company, ArabPotash Corporation, Jordan Phosphate Company, Jordan
Fertilizer Industry Company, Public Mining Company, Jordan Hotels andTourism
Company, privatized now andgovernment owns 30% instead of70%, Arab
International Hotels, Irbid District Electricity Company, Jordan Electric Power
Company. TheArab International Hotels wassoldrecently toprivate sector.
Privatisation ofenterprises which thegovernment partially orwholly owns isadeclared policy.
Studies onacasebycasebasis arebeing conducted. Thegovernment hasbeenselling abigpartof
itsshares inthepublic share holding companies andisintheprocess ofprivatising thefewstateowned
enterprises. Jordan Electricity Authority was commercialized inAugust 1996, and the
Telecommunications Corporation wascommercialized atthebeginning ofOctober 1996. Toensure
thesmooth operation ofprivatisation theCouncil ofMinisters decided initssession heldonJuly6,1996
thefollowing:
- toformaHigher Ministerial Committee headed bythePrime Minister todrawupthegeneral
policy fortheprivatisation process inamanner thatwillensure theachievement ofeconomic
growth andenhances theefficiency andproductivity ofthedifferent enterprises;
- toestablish atechnical unitinthePrime Ministry tooversee theimplementation ofthe
privatisation policy laiddown bytheHigher Ministerial Committee.WT/ACC/JOR/3
Page13
(b) Monetary andfiscal policies
Attheheart oftheadjustment program isthereduction ofthemacroeconomic imbalances,
especially thereduction ofthebudget deficit. Tomaintain abalance between thedemand forthelimited
availability ofresources inthefuture, theprogram wasdesigned toreduce thebudget deficit (excluding
grants) fromthe1991levelof17.8% ofGDPto2.5% ofGDPby1998. Thisreduction would require
structuralchangesinJordan'srevenuebaseandinthepatternofexpenditures.Themeasurescontemplated
bytheGovernment areexpected toincrease domestic revenues from 29%ofGDP in1991 toabout
31%ofGDP by1998, andtoreduce thecurrent expenditures from about 37%ofGDP in1991 to
about 26%during thesame period. Thekeypolicy forenhancing revenues wastheintroduction of
ageneral salestax(GST).
Other fiscal measures focus onexpenditure andsubsidy reduction. These measures areintended
toreduce expenditures byabout 4%ofGDP in1992; afurther reduction of1-2% ofGDP annually
willbepursued overthemedium term. Themostimportant measures toreduce expenditures onsubsidies
include increases inthedomestic prices forpetroleum derivatives andreductions inthefoodsubsidies.
Finally, thedesign andimplementation ofaprogram toimprove thefinances ofloss-making public
enterprises areanimportant element oftheGovernment 'sexpenditure reduction program. Thetargeted
enterprises areRoyal Jordanian Airlines, Public Transportation Corporation, Agricultural Marketing
Organisation.
TheGovernment carried outasubstantial depreciation oftheexchange rateduring 1989 and
iscommitted tomaintaining aflexible exchange ratepolicy. Inviewofthestringent demand management
policies implicit inthefiscal program, nopressures ontheexchange rateareexpected. TheGovernment
intends tointroduce further tradeliberalization measures toprotect theobjectives ofthetradereform.
Inindustry, therestructuring ofincentives would beaccompanied bygovernment actions aimed
atstrengthening institutions insupport ofmanufacturing andexports. Inagriculture, theGovernment
isplanning anumber ofmeasures toderegulate production andtradeandtoimprove support services
forthefarmer. Moreover, theGovernment hasformulated anenergy sector adjustment program, in
order toimprove theefficiency ofenergy useandstimulate long-term energy resource development.
Asforpublic enterprises thatincur losses andareamajor burden onthebudget, theGovernment aims
atrestoring thefinancial viability intheshort run.Inthelongrun,greater competition will be
introduced forthegoods andservices provided bythese enterprise .
Asfortheincome taxsystem themainfeatures ofthesystem areoutlined inthenewIncome
TaxlawNo.(14) of1995. Theprinciple features are:
(i) thetaxregime isbased onannual selfassessment;
(ii) income taxisdueonprofits orgains earned oraccrued inJordan;
(iii) income taxexemptions areequally applied toforeign enterprises;
(iv) thefollowing areexempted:
- welfare, cultural, educational, sports orhealth institutions andcooperative societies;
- landinvested inagriculture orpoultry, cattle, fishorbeebreeding;
- capital profits earned onequipment, apparatus, land, realestate, bonds andshares;
- salaries paidtonon-Jordanian diplomatic envoys;
- salaries andwages paidbyforeign companies registered inJordan according tothe
Companies Law;
- interests dueondeposits ofnational andforeign persons andcompanies;
- income accrued from patents, copyrights orrewards;
- income specified inagreements onpreventing double taxation;WT/ACC/JOR/3
Page14
- income explicitly exempted bytheInvestment Promotion LawNo.(16)of1995 and
bymeans ofbilateral andmultilateral agreements;
(v) disbursements andexpenses arededucted from annual totalincome;
(vi) losses arededucted fromthetaxpayers totalincome fromothersources oftaxable income during
thesame yearandthebalance carried forward tothenextyearandthentothesubsequent year
uptosixyears afterwhen lossoccurred;
(vii) partial exemptions are:
- 50%ofsalaries andwages ofemployees onthefirsttwelve thousands and25%on
theamount above that;
- 10%to30%ofrents accrued from leasing buildings;
(viii) theprogressive taxonindividuals ranges from 5%to30%;
(ix) theprogressive taxoncompanies ranges from 15%to35%according totypeofactivity.
(c) Foreign Exchange andPayments System, Relations with International Monetary Fund,
Application ofForeign Exchange Controls ifAny;
(c.1) Exchange Arrangements
Thecurrency ofJordan istheJordan dinar. Effective October 23,1995theauthorities pursued
anexchange ratepolicy aiming atachieving thehighest possible degree ofstability intheJDratewith
respect totheU.S.dollar. Since October 23.1995, theofficial buying andselling ratesofJordan dinar
fortheU.S.dollar wereJD0.708 andJD0.710, perU.S$1respectively. Buying andselling rates
forother foreign currencies werelefttofluctuate onthebasis oftheirratesagainst theU.S.dollar
ininternational markets.
Authorized banks arepermitted toenterintoforward contracts inmajor currencies against the
Jordan dinar forspecified commercial transactions, provided thattheycover suchoperations abroad.
Each authorized dealer 'sforward transactions aresubject toquantitative limits. Forcorporations or
projects considered tobeofvitalnational interest, theCentral Bank mayoffer aforward exchange
facility inrespect offorward exchange cover provided byJordanian banks. There arenotaxes or
subsidies onpurchases orsalesofforeign exchange. Jordan formally accepted theobligations ofArticle
VIII, sections 2,3and4oftheFund Agreement, asfrom February 20,1995.
(c.2) Administration ofControl
Exchange control isadministered bytheForeign Exchange Control Department oftheCentral
Bank, which alsoissues exchange permits; theCentral Bank hasdelegated toauthorized banks the
issuance ofexchange permits forimport payments and,within permitted annual limits, forpersonal
invisible payments. Suchpermits aregranted automatically andtheyareissued forstatistical purposes.
Import policy isdetermined bytheMinistry ofIndustry andTrade incooperation withtheMinistries
ofFinance, Supply, Agriculture andHealth. Arrears aremaintained withrespect toexternal payments.WT/ACC/JOR/3
Page15
(c.3) Prescription ofCurrency
Outward payments maybemade inanycurrency. Proceeds fromexports andinvisibles must
becollected inanyconvertible currency through anauthorized bankinJordan orfromanonresident
account withanauthorized bankinJordan, orincashinforeign banknotes from abroad.
(c.4) Non-resident Accounts
Subject totheprior approval oftheCentral Bank, authorized banks mayopen non-resident
accounts indomestic currency. Withdrawals andtransfers from non-resident accounts arepermitted
freely. Theinterest rateisfixed inaccordance withratesprevailing ininternational markets.
(c.5) Foreign Currency Accounts
AccountsdenominatedinaforeigncurrencymaybeopenedattheCentralBankoratanylicensed
bankorfinancial company bygovernmental andsemi-governmental entities, aswellasbythespecialized
credit institutions, licensed financial companies, anddomestic corporations ofvitalnational interest
includingpublicshareholdingcompanies,providedthatoutstandingbalances(includinginterestearnings)
ineachaccount donotexceed theequivalent ofJD1million. Thisceiling mayberaised incertain
cases.
Jordanian nationals residing inJordan maymaintain foreign currency deposits withlicensed
banks inJordan, provided thatthetotalbalance ofthedeposits thatanyoneperson holds doesnotexceed
theequivalent ofJD500,000. Balances inthese accounts canbeutilized formaking current payments
abroadconsistentwithregulationsgoverningimportandinvisiblepayments.Jordanianswhohaveworked
abroad formore thansixmonths andhavedecided toreturn maycontinue tokeepaccounts inforeign
currencies without limit foraperiod ofuptofiveyears, afterwhich thedeposits inexcess ofthe
equivalent ofJD500,000 mustbeconverted intoJordan dinars. Licensed banks andfinancial companies
mayextend credit facilities inJDtoresidents andnonresidents against theirforeign deposits uptoJD
100,000 without theprior approval oftheCentral Bank. Credits exceeding JD100,000 mayalsobe
extended without theCentral Bank'sprior approval, provided thattheyarefullybacked bydeposits
inforeign currency.
(c.6) Imports andImport Payments
Generally, imports donotrequire alicense. However, imports requiring alicense alsorequire
anexchange permit, which isgranted automatically when animport license hasbeenobtained; the
importer holding anexchange permit mayeither openaletter ofcredit orpayagainst documents. A
feeof0.10percent islevied onexchange permits forimports except those made bygovernment
departments andcertain approved institutions andindividual permits oflessthanJD300. Suchafee
islevied torecover theadministrative costsoftheCentral BankofJordan. Theuseofsuppliers 'credits
issubject topriorapproval fromtheCentral Bank, which isnormally given foressential imports only.WT/ACC/JOR/3
Page16
(c.7) Imports intoFreeZones
Withthediscontinuation ofCentral Bankissuance ofexchange permits forimports tofreezones
andfortransit trade, itistheimporter 'sresponsibility toprovide foreign currencies tofinance such
transactions. Banks areauthorized tosetthepercentage ofadvance import deposit theycharge their
clients incaseofimports tofreezones orontransit goods based oncustomer 'sfinancial credibility
andongenerally accepted standards.
(c.8) Payments forInvisibles
Thepolicy onpayments forinvisibles is,ingeneral, liberal andnondiscriminatory. Residents
arepermitted totakeoutortransfer foreign means ofpayment equivalent toJD35thousand tomeet
currentpaymentsforinvisiblesconsistingoftravel,education,medication,pilgrimage,residenceabroad,
family assistance andothers without prior approval oftheCentral Bank ofJordan norpresenting
documents tojustify these payments. Amounts inexcess ofJD35thousand areconsidered positively
inlightoftheapplicants needifsupportive documents werepresented. TheCentral Bank ofJordan
mayconsider liberalizing thistransfer ceiling when circumstances permit. Thisallowance isgranted
annually. Amounts inexcess oftheabove mentioned allowance shallbeconsidered positively, incase
ofpresenting supportive documents.
Premiums oflifeinsurance policies issued byinsurance companies operating intheKingdom
infavour ofnon-residents orJordanians working abroad aretobecollected inforeign currency remitted
from abroad orfrom nonresident accounts. Afeeof0.10percent islevied onexchange permits for
invisible payments asinthecaseofimports.
Remittances maybemade bypostal order foramounts notexceeding theequivalent ofJD10
amonth toanyperson residing abroad. Theauthorized amount forsubscriptions tonewsletters,
magazines, andscientific bulletins istheequivalent ofJDonethousand. Inpractice, theCentral Bank
doesnotrestrict remittances ofincome accruing tononresidents orofsavings offoreign nationals
returning totheirowncountries.
Inaddition toanytravel allocation, residents andnonresidents travelling abroad maytakeout
uptoJD5,000 inJordanian banknotes andcoins. Nonresidents working inJordan whodonotmaintain
non-resident accounts maytransfer uptoJD400amonth uptoamaximum ofJD5,000 ayear.
Furthermore, alltravellers maytakeoutchecks, travellers 'checks, orletters ofcredit issued by
authorizedbanksinJordan,inaccordancewithexchangepermitsauthorizedbytheCentralBank.Tourists
andother nonresidents mayalsotakeoutforeign currency notes andcoins andanyother foreign means
ofpayment thattheyhadpreviously brought inanddeclared tothecustoms authorities atthetimeof
entry.
(c.9) Exports andExport Proceeds
There arenorequirements affecting export proceeds.WT/ACC/JOR/3
Page17
(c.10) Proceeds from Invisibles
Travellers entering Jordan maybring inanyamount ofJordanian andforeign notes andcoins.
Anyperson considered forexchange control purposes asaresident ofJordan isnotpermitted toretain
anyforeign currency intheKingdom, except what isallowed forintheForeign Exchange Control
Regulation (theequivalent ofJD500thousand perperson) andshallsellexcessive sums tolicensed
banks, financial companies orauthorized dealers.
(c.11) Capital
Inward transfers ofcapital arenotrestricted, butoutward transfers require approval andare
notnormallypermitted,exceptthattheCentralBankmayapproveapplicationsmadebybanks,insurance
companies,industrialortradingfirms,agriculturalandtourism,andcontractorsforpermissiontotransfer
funds abroad forspecified investment oroperating purposes. Thetransfer offunds forthepurpose
ofinvesting inArabcountries byindividual investors ispermitted onlyifmutual treatment ofbilateral
agreement exists between Jordan andtheArabcountry invested in,anditistheinvestors 'responsibility
toprovide foreign currency tofinance suchinvestments. Current income resulting fromnon-resident
investments inJordan maybetransferred abroad, capital profits, dividends andinterest fromapproved
foreign investments mayberemitted. TheCompanies LawNo.1(1989) provides various benefits
toforeign companies establishing branches inJordan forpurposes ofconducting business outside the
country; suchbranches mayalsobegranted nonresident status forexchange control purposes. Premium
Development Bonds denominated inJordan dinar maybepurchased withconvertible currencies by
nonresidents;proceedsfromredemptionatmaturity,includinginterestaretransferableinanyconvertible
currency.
(c.12) Gold
TheCentral Bank hasissued tengoldcoins, which, although legal tender, donotcirculate
andareavailable onlytononresidents anddomestic numismatists. Residents maypurchase, hold, and
sellgoldcoins inJordan fornumismatic orinvestment purpose.
Imports ofgoldinanyform arepermitted without theprior approval oftheCentral Bank. Exports
ofgoldinanyform require theprior approval ofCentral Bank.
(c.13) Changes during 1995
(i)Exports andexport proceeds
January1.TheCentralBankmadethefollowingadjustmentstothegeneralconditionsconcerning
itsadvances tolicensed banks andfinancial companies against export credits andbillsandagainst bank
drafts andcollections: (1)theinterest ratecharged onexport promotion facilities bytheCentral Bank
wasamended tobe1.0% instead of2.5% below theprevailing discount rate.(2)banks 'commission
charged onexporters wasraised from 2.0% to2.5%.WT/ACC/JOR/3
Page18
(ii)Investments
August 22.Licensed banks werepermitted toinvest 50%oftheirclients deposits inforeign
currencies inthefollowing forms:
- extending development loans inJordan. (Subject totheprior approval oftheCentral Bank
except fortheexport sector);
- participation insyndicated loans concluded inside andoutside theKingdom tothebenefit of
projects inside theKingdom;
- government bonds andbills issued bythegovernments oftheU.S., UK,Germany, Japan
andSwitzerland;
- international andregional institutions ’bonds, highest quality corporate bonds rated (AAA)
and(AA);
- Jordanian Government ’sdebt bonds issued inforeign currency.
(iii)Margin trading
July1.Licensed banks havebeenauthorized tooffermargin trading services fornon-residents,
maintaining foreign currency accounts withaminimum of30%asamarginal deposit foreachposition.
July11.Banks havebeenauthorized tooffer foreign currency account/ account service for
residents.
(iv)Foreign exchange regulations
January 25,1994 topresent. Tofurther liberalize foreign currency regulations, theCentral
Bank ofJordan introduced thefollowing amendments:
- anyeligible resident ispermitted totakeoutortransfer foreign means ofpayment equivalent
to35,000 instead of20,000 Jordan dinars peryeartomeet current payments forinvisibles
consisting oftravel, education, medication, pilgrimage, residence abroad, family assistance
andothers;
- licensed banks andfinancial companies wereauthorized toopenaccounts inforeign currencies
fornonresidents without anyconditions. Inaddition, withdrawals andtransfers fromnonresident
accounts arepermitted freely;
- applications forexchange permits thatinclude advance payment mustbesupported witheither
oneofthefollowing twoguarantees, instead ofthefirstoneonly, toensure therepatriation
offoreign currency transferred through thesame bankthatissued theexchange permit;
- anexternal banking guarantee ofanamount equal totheadvance payment;
- alocalguarantee ofanamount equal to20%oftheadvance payment infavour oftheCentral
Bank;
(d) Foreign andDomestic Investment Policies
(d.1) Investment Policy
TheInvestment Promotion LawNo.(16)for1995supersedes theEncouragement ofInvestment
LawNo.(11)for1987 andtheArab andForeign Investment LawNo.(27)for1992.
According totheInvestment Promotion LawaHigher Council ofInvestment Promotion is
formed under theChairmanship ofthePrime Minister. TheCouncil ischarged withthetaskofcreating
asuitable environment forinvestment. According totheprovisions ofthislawacorporation named
“Investment Promotion Corporation ”isestablished with juristic personality andfinancial andWT/ACC/JOR/3
Page19
administrative independency. TheCorporation isentrusted withtheimplementation ofthislawand
isrunbyaseven member Board ofDirectors (including theDirector General oftheCorporation).
TheInvestment Promotion Lawdoesnotdifferentiate between Jordanian andnon-Jordanian
investors andaccords themgenerous incentives. According toTheLawnopreference isgiven toany
export performance ordomestic content requirements .Forforeign investors thetransfer ofprofits
realized onforeign capital invested inthecountry, andtherepatriation offoreign capital invested is
guaranteed bytheLaw.
Anyprojectinindustry,agriculture,maritimetransportandrailways,hospitalsandhotelsenjoys
thefollowing exemptions:
(i) fromCustoms Duties, import feesandanyother feesforfixed assets during theestablishment
oftheproject andforexpanding ordeveloping theproject atalaterstage, andforspare parts;
(ii) taxexemptions ranging from25%-75% fromincome andsocial taxesbased onthedevelopment
areawhere theproject isestablished, foraduration oftenyears. Theexemptions are25%
forprojects established indevelopment areaA,50%forthose inareaBand75%forareaC.
Below isadetailed schedule oftheareas andthestatus oftheprojects established ineacharea
forthepurposes oftaxexemptions;
(iii) inaddition, hotels andhospitals enjoy extraexemptions fromfeesandtaxesontheirpurchases
offurniture andsupplies forrenewal orrenovation onceevery seven years.
TheSchedule
(i)TheMunicipality District Hospitals Industry Hotels
TheCapital Amman Kasba * - - A
Marka A B B
Qweismeh A C B
University - - A
Wadi AlSeir - - B
Sahab A C C
Muwagar B C C
Gizeh B C C
Na’our A C C
Irbid Irbid Kasba B B C
Remaining Districts C C C
Balqa SaltKasba B C C
DeirAlla C C C
Southern Shouneh C C C
AinAlBasha - C C
Karak AllDistricts C C C
Ma’an Wadi Mousa C A C
Remaining Districts
Zarqa AllDistricts A C C
Mafraq AllDistricts C C C
Tafileh AllDistricts C C C
Madaba Madaba Kasba B C C
Thiban C C CWT/ACC/JOR/3
Page20
TheMunicipality District Hospitals Industry Hotels
Jerash AllDistricts C C C
Ajloun Ajloun C C C
Aqaba Aqaba Kasba B A C
Qwaireh C C C
_____________________
*Town Centre
(ii) Allareas oftheKingdom shallbeclassified under zone-C-forthesectors ofagriculture,
sea-transport andrailroads.
(iii) Theshore oftheDead Seaarea,with a5Kmdepth fromthesealine, shallbeclassified under
zone -A-forthehotels sectors.
Theprovisions ofparagraph (i)shallnotbeapplicable toconservatories andenvironmental
protection areas thatalready existorwillbeestablished.
(e) Other Policies Affecting Trade
(e.1) Pricing Policy
Prices inJordan aregenerally determined through themarket mechanism. TheMinistry of
Supply, however, setsprices forfivecommodities namely sugar, wheat, rice,onebrand ofmilkand
cigarettes thatareimported bytheMinistry ofSupply andtheprivate sector. Forthemostpart,the
government charges orallows commercial mark-ups.
Thegovernment setsdistribution margins fornineteen consumer goods produced inJordan.
Themethodology forcalculating theretailpriceistodetermine thecostofproduction fromfieldsurveys
andthenallow a17percent margin forperforming thenormal marketing functions ofdistribution,
storage,andfinancing.Thesamemechanismofpricingisappliedtosimilarimportedgoods.Inaddition,
acommittee ofgovernment officials, including officials from theMinistries ofAgriculture, Supply
andIndustry andTrade, studies market conditions intheAmman Central Market forAgricultural
Products andsetsappropriate retail prices forthese products. Thisisdoneonadaily basis andretail
prices arepublished inlocalnewspapers. The19consumer goods referred toabove whether locally
produced orimported are:
allkinds ofbread, pasta, freshpoultry, eggs, yoghurt andcooked cheese, halawa (local popular
sweet), tablesalt,fruits andvegetables, corn, lentils, fizzydrinks (with reusable glassbottles),
barely, frozen meat, frozen fish,canned meat, chilled imported meat, canned sardines and
tuna, tea,andcigarettes.
(e.2) Subsidy Policy
Subsidy policy hastwoobjectives:
(i) providing basic foodstuffs atastable price topreserve thestandard ofliving oflimited and
low-income groups;
(ii) promoting investment inlivestock toreduce dependence onimported redmeats.WT/ACC/JOR/3
Page21
Based onthis,theGovernment provided, inthepast, consumer subsidies forthirteen basic
commodities suchaswheat, barley, rice,sugar, driedmilk, frozen meats, oliveoil.However, subsidies
were nottargeted inthepast,thusreaching allgroups ofconsumers andproducers.
Inthelateeighties, theGovernment started reducing andtargeting subsidies. Presently, only
three basic items arebeing partially imported andsubsidized bytheGovernment: sugar, riceandone
brand ofpowdered mild. Theprivate sector isnowallowed toimport subsidized items andsellthem
atunsubsidized butfixed prices.
Targeting wasachieved through theintroduction ofcoupons which arenowdistributed only
tofamilies withamonthly income ofJD500orless.Three commodities arecovered bythesecoupons
sugar, riceandonebrand ofdried milk. Thesubsidy ofwheat wasremoved inAugust 1996.
3. Foreign Trade inGoods andServices
3.1 Commodity andGeographical Structure ofForeign Trade
Jordan 'sforeign trade (domestic exports +imports) withtherestoftheworld witnessed a
considerable expansion during thelasteightyears. Thevolume oftrade grew, onaverage, by15.7%
during theperiod (1988-1995). Itsvalue increased from JD(1347.3) million in1988 toJD(3594.8)
million in1995. Accordingly, theratioofforeign tradetoGDP, atcurrent prices, increased from59.5%
in1988 to77.8%in1995.
Domestic exports registered positive growth ratesduring theperiod 1988-1995 except in1991.
Theaverage growth rateduring theperiod reached 20.5%. Asaresult, theratioofdomestic exports
toGDP, atmarket prices, increased from 14.3% in1988 to21.7%in1995.
Jordan 'smainexports aremineral andmineral-related products, including phosphate rock, potash and
fertilizers. Though theirshare ofdomestic exports showed adownward trendasitdecreased from59.4%
in1988 to33.9% in1995, these three products constituted ,onaverage ,45.3% ofdomestic exports
during theabove mentioned period. Theshare ofnon-traditional exports which include avariety of
manufactured products suchaschemicals andpharmaceuticals andfruits andvegetables, increased
from 40.6% in1988 to66.1% in1995.
Allmajor components ofexports suchasmineral based exports andnon-traditional exports
haverecorded widefluctuations reflecting variations intheavailability andopenness ofregional and
other foreign markets, aswellaspricefluctuations. TheArabcountries absorption ofJordanian exports
declined from42%in1988 to28.8% in1991, followed byarecovery to35.1% in1992, increased
to45.0% in1995. TheJordanian exports toEUaveraged 4.7% during theperiod 1988-1995.
Asforimports, theiraverage annual growth ratewas14.7% during 1988-1995. Thehighgrowth
ratescanbeattributed mainly totheonetimeincrease inpopulation aftertheGulfCrisis andtheincrease
indemand forimports ofcapital goods, rawmaterials andenergy products bytheindustrial sector.
Consequently, theratioofimports toGDP atmarket prices increased from45.2% in1988 to56.1%
in1995.
Both thecommodity composition andgeographical distribution ofJordanian imports have
relatively remained stable during theperiod 1988-1995. Themajor imports arefoodstuffs, machinery
andtransport equipment, manufactured goods andmineral fuelsandlubricants. Themain sources of
Jordan 'simports havebeentheEuropean Community countries, primarily Germany, Italy, U.K. andWT/ACC/JOR/3
Page22
France, followed bytheArab countries. Iraqisthemajor exporter toJordan among countries, given
itsroleasasupplier ofpetroleum products, followed bytheUnited States ofAmerica andGermany.
TheServices Sector hasaleading roleintheeconomic development ofJordan. It’scontribution
toGDPwasabout 65%in1994, ofwhich tradeandcatering 10.2%; construction 8.6%; transportation,
storage andcommunication 15.9%; financial services, insurance, realestate andbusiness services
19.0%.
Jordan isanexporter andimporter ofservices. According tothebalance ofpayments figures
in1994, Jordan ’sexports ofservices amounted toJD.1905 million while itsimports ofsuchservices
wereJD.1049 million. TheJD.856 million services surplus helped finance partofJD.1362 million
trade deficit in1994. Themost important source ofrevenue intheservices account isworkers
remittances which in1994 brought inanetrevenue ofJD.699 million. Travel, especially tourism
generated asurplus inthetravel account ofJD.131million resulting mainly from JD.406 million
tourist income andfromJD.275 million payments accruing fromexpenses ontourism, medical care
andeducation. Income fromcapital investments isbecoming more important asasource ofrevenue
intheservices account, however, investment income payments werefourtimes larger thanreceipts
in1994, investment income payments which mainly represent interest ondebtreached JD.220 million,
while receipts were JD.51million.
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING FOREIGN
TRADE INGOODS AND TRADE INSERVICES.
1. Powers ofExecutive, Legislative andJudicial Branches ofGovernment.
Jordan isaconstitutional monarchy withthree separate powers infulldemocratic manner:
1.1 Executive: comprising theKing andtheCouncil ofMinisters;
1.2 Legislative: comprising theKing andtheParliament which consists of:
a. theUpper House comprising 40dignitaries appointed bytheKing.
b. theLower House comprising 80deputies elected bythepeople;
1.3 Judicial: Thejudicial system isguaranteed independent authority asstipulated inArticle (97)
oftheconstitution. Itcomprises thecivilandcriminal courts, which consist of,themagisterial courts,
thecourts ofFirstInstance andthecourts ofAppeal. Thecourt ofCassations decides onlyonmatters
oflaw,andtheHigher Court ofJustice decides mainly onthevalidity ofchallenged administrative
decisions. There arespecialized courts forCustoms andIncome Tax(firstinstance andappeal).
2. Government Entities Responsible forMaking andImplementing Policies Affecting Foreign
Trade
2.1 TheCouncilofMinistersisresponsibleforissuingby-Lawsandregulationsbasedonthedifferent
relevant Laws, andforanychange intariff rates.
2.2 TheMinistry ofIndustry andTrade supervises theformulation andexecution ofpolicy related
toindustry andtrade based onthefollowing principles:
- freemobility ofcapital;
- encouragement ofprivate sector initiatives andactivities;
- freedom ofparticipation inalleconomic sectors.WT/ACC/JOR/3
Page23
Themain duties oftheMinistry are:
(i) implementation ofthefollowing laws:
- Import/ Export Lawandregulations;
- Companies Law;
- Industrial Property Law;
- Insurance Law;
- Trade Marks Law;
(ii) negotiating trade andeconomic agreements andprotocols;
(iii) representing theGovernment atbilateral, regional andinternational meetings ontrade and
industry.
2.3 TheCustoms Department within theMinistry ofFinance consists of16directorates and23
border centres andcustoms houses, outofwhich 6areclearance houses. TheDepartment 'smain
responsibility istoadminister theflowofgoods across theborders according tothelawsandregulations
inforce. It,thus, provides amajor source ofrevenue tothecentral government reaching about 40%
ofdomestic revenues.
Themain tasks oftheDepartment 'sdirectorates areasfollows:
- apply customs duties toimported goods;
- administer thetemporary entry and/ordrawback facilities forexporters, diplomatic missions,
regional offices andprojects;
- implement exemptions according tothelawtocertain categories ofentities including charity
associations andthebeneficiaries oftheInvestment Promotion Law;
- collect thesalestax;
- handle allviolations oftheCustoms Lawsuchassmuggling, fraud andfalseinformation;
- combat smuggling through specialized patrols;
- perform auditing checks ofallcustoms statements.
2.4 TheMinistry ofHealth isthemain provider ofprimary health careandhospital careinthe
countryespeciallyforthelimitedandmediumincomegroups.TheMinistryisresponsibleforregistering
locally produced medicaments aswellasthose imported.
2.5 TheMinistry ofSupply mainresponsibility istoensure adequate supplies ofbasicfoodproducts
inthecountry andthattheyaresoldatprices thatreflect theircost,withreasonable margin ofprofit
toensure thattheretail prices areaffordable bythemajority ofpeople.
2.6 TheCentral Bank ofJordan (CBJ) istheofficial monetary authority thatstarted operation on
1/10/1964. Among themany important responsibilities ofCBJaretheissuing ofcurrency andthe
stabilization oftheexchange rate,thesupervision ofbanks andmoney changers, andtheadministration
offoreign exchange dealings through itsForeign Exchange Department. There arenotaxesorsubsidies
onpurchases orsalesofforeign exchange. Jordan formally accepted theobligations ofarticle VIII,
sections 2,3,and4oftheInternational Monetary Fund Agreement asfrom February 201996 thus
liberalizing thepayments fortrade ingoods andservices.
2.7 Jordan Export Development andCommercial Centres Corporation (JEDCO) isanautonomous
non-profit corporation equally owned bytheMinistry ofIndustry andTrade, theJordan Federation
ofChambersofCommerceandtheAmmanChamberofIndustry.ItissupervisedbyaBoardofDirectors
comprising senior government officials, principals oftheKingdom 'sbusiness organizations andleading
industrialists. IthasaGeneral Manager appointed bytheBoard ofDirectors.
JEDCO went through are-structuring process during 1995 inwhich newdepartments were
founded, andnewfunctions wereactivated. Theoriginal taskofJEDCO since 1972 wastoexecute,WT/ACC/JOR/3
Page24
onbehalf ofthegovernment, thetradeprotocols withseveral ArabCountries mostofwhich havebeen
terminated. ThenewfunctionsofJEDCOareoftechnicalandpromotionalnaturetohelpindustrialists
upgrade their products, adopt international standards anddevelop their marketing andtechnical
capabilities .JEDCO doesnotreceive anybudgetary assistance from theGovernment.
2.8 TheAgriculturalMarketingOrganisation(AMO),anautonomousgovernmententity,established
in1987 tohelp formulate marketing policies pertaining toagricultural products, develop domestic
markets, opennewexport markets andtosupport theprivate sector. Moreover, AMO serves asan
information bank forallfresh produce imports andexports. AMO hashadasignificant impact on
theJordanian agricultural sector interms ofimproved quality andincreased fresh produce export
quantities. AMO major activities areasfollows:
(i) conducting market studies foragricultural products onbothlocalandinternational markets;
(ii) issuing periodical statistical reports thathavedetailed information onfresh produce prices,
quantities, exports andimports;
(iii) promote agricultural exports byfacilitating theparticipation oftheprivate sector inthe
international trade fairsandexhibitions;
(iv) collecting information andfinding newexport markets;
(v) publishingbrochures,guidebooksandnewslettersforproducers,exportersandforeignimporters
ofagricultural products;
(vi) monitoring thequality offresh produce exported from Jordan.
2.9 Investment Promotion Corporation: Itisanewly established agency withjuristic personality
andfinancial andadministrative independency. TheCorporation isentrusted withtheimplementation
oftheofInvestment Promotion LawNo.(16)for1995 anditsby-Laws.
3. Division ofAuthority Between Central andSub-Central Governments
TheCentral Government ofJordan isresponsible forallmatters related tothenational economy
andforeign trade. Autonomous public entities andprivate agencies share inimplementing national
economic policies including trade.
4. AnyLegislative Programmes orPlans toChange theRegulatory Régime
Jordan iscurrently revising itslegislation andwillintroduce therequired changes inexisting
legislation, orenact newlegislation, tocomply withitsobligations asderived from theWTO
Agreements.
Thechange inLaws andLegal actsrequire thefollowing:
- lawsrequire legislative approval;
- by-Laws andregulations require Council ofMinisters approval;
- instructions require thedecision oftheMinister concerned.
5. Laws andLegal Acts
Draft Laws areusually submitted totheCouncil ofMinisters fortheirconsiderations bythe
Ministry orAgency concerned withthesubject matter oftheLaw. When theCouncil ofMinistersWT/ACC/JOR/3
Page25
approves theLaw, thenitissenttotheBureau ofLegislation tobeputintheproper legalformbefore
submitting ittoParliament. TheLawhastobediscussed separately andapproved bybothHouses
ofParliament before itispassed. When theLawispassed bybothHouses thenitissubmitted tothe
Kingforhisconsent andsignature. Once thislaststepiscompleted theLawbecomes effective. As
forInternational Agreement ortreaties thataresigned byJordan, inorder tobecome effective they
havetoberatified byParliament inaccordance withArticle 33.2oftheConstitution.
6. Description ofJudicial, Arbitral andAdministrative Tribunals orProcedures
Forthejudicial tribunals, item(1.3above refers). Arbitration isprovided forinthelawand
mayberesorted tobytheparties upon agreement. TheFederation ofChambers ofCommerce and
theChamber ofIndustry eachhasitsownarbitration functions. Agreement oftheparties isaprerequisite
forinitiating suchfunctions.
IV. POLICIES AFFECTING TRADE INGOODS
Jordan 'straderégime inthelate1980'swascharacterized byhightariffandnontariffbarriers.
Asaresult ofthisprotective system, theoverall incentive structure favoured production forthedomestic
market. In1989-1995 thetrade regime wasliberalized, aspartoftheoverall structural adjustment
efforts. Thefirstphase ofthetradeliberalization process began withtheelimination ofalargenumber
ofquantitative import restrictions in1989; onlyalimited number ofwhich havebeenmaintained for
mineral water andtable saltbecause ofsocial reasons connected withthesectors involved intheir
production. Theother prohibited imports areusedcarsthat fiveyears ormore elapsed since their
production, andplastic wastes forenvironmental considerations.
1. Import Regulation
(a) Registration Requirements forEngaging inImporting
Anybusiness enterprise registered inJordan canengage inimporting, provided thatitisin
possession ofanimporting card. Thiscardcanbeapplied forandobtained automatically from the
Ministry ofIndustry andTrade. Non-commercial business entities likehospitals, universities, schools,
andregional offices canapply foranimporting cardtoimport goods fortheirownneeds andnotfor
commercial purposes.
Persons whoarenotregistered businesses orwhodonotpossess aregistration card,canimport
buttheyhavetopayafeeequal to5%ofthevalue oftheimported goods. Personal effects canbe
imported andcleared bythecustoms onunconditional basis.
ThefirstCustoms Department inJordan wasestablished in1922 andthefirstCustoms Law
wasadopted in1926. Currently, Jordan isimplementing theCustoms LawNo.16fortheyear1983.
ThisLawisexpected tobeamended in1996taking intoconsideration international developments and
theeconomic policy ofthegovernment. TheCustoms Department isalsoimplementing acomprehensive
planforadministrativereformaimingatstreamlining,simplifyingandcomputerizingcustomsprocedures
toarrive ataonestopservice system.WT/ACC/JOR/3
Page26
(b) Characteristics ofNational Tariff
(b.1) Tariff Nomenclature
Jordan adopted theHarmonized System Nomenclature asofJanuary 1,1994.
Asofthebeginning of1997, the1996 amendments oftheHarmonized System willbe
implemented bytheJordanian authorities. Jordan applies tariffandspecific duties onsome agricultural
products only. Jordan ’scurrent customs tariff issupplied withthisMemo onadisk.
(b.2) Tariff Rates
Although there areseveral import-related duties, taxes andfees,theweighted average ofthe
consolidated tariff rateis17.1%. In1996, 2300 items classified byHSpaidatariff rateof10%or
less.Thefollowing tableshows thedistribution ofitems bytariff ratein1996:
Consolidated
Tariff rateNumber ofitems (HS) %ofitems %ofimport value
0-10.0% 2300 34.1 54.90
>10 -20% 90 1.3 4.08
>20 -30% 2146 31.8 22.04
40-895 13.3 6.62
50-1277 18.9 10.35
>50 -42 0.6 2.0
Total 6750 100.0% 100.0%
(c) Tariff Quotas, Tariff Exemptions:
Tariff exemptions aregranted tosome goods depending onthenature oftheiruselike
machinery, rawmaterials andbasic food-stuffs .
Tariff exemptions aregranted inthefollowing cases:
(i) items given suchstatus inthetariff schedule;
(ii) some imports governed bybilateral trade agreements (protocol trade);
(iii) imports ofgovernment institutions according totheCustoms Law, subject tocabinet approval;
(iv) imports ofdiplomatic missions, international organizations andregional offices offoreign
companies;
(v) imports ofcharitable organizations subject toCabinet approval, andspecial carsforthedisabled.
Imports offoreign charitable organisations aresubject usually toanagreement signed between
theforeign organisation andtheMinistry ofSocial Development;
(vi) imports ofprojects covered bytheInvestment Promotion Law;
(vii) imports ofeducational institutions;
(viii) imports ofhospitals suchasmedical equipment andmedicines.WT/ACC/JOR/3
Page27
(d) Other Duties andCharges
Jordan imposes ageneral salestax(GST) atarateof10%onallgoods except basicfoodstuffs,
fuel,agricultural equipment andmachinery, andpharmaceuticals. Excise duties apply toimports and
exports.
Alsoimport feesof5%onallitems except goods exempted bytheCabinet. Municipalities
feesof2%anduniversity feesof4%areimposed onitems subject tocustoms duties; feesforveterinary
andlaboratory analysis arecollected when suchservices arerendered bythegovernment. These fees
andthesurcharge taxof1969 levied onallitems exempt fromcustoms tariffs, willbeintegrated into
thecustoms tariffs afteralawforunifying allfeespasses through Parliament which isexpected to
bearound thebeginning of1997. Thiswillbring them inlinewithArticle VIIIofGATT 1994.
Jordan ’sfuture planforservice charges istocharge thecostofservices rendered.
Thefollowing tableshows thedifferent duties, taxes andfeesimposed onimports:
Type oftax Percentage
1.Consolidated surcharge 6%onallitems subject taxtocustoms duties
2.Municipalities fees 2%onallitems subject tocustoms duties
3.University fees 4%onallitems subject tocustoms duties
4.Surcharge tax1969 5%onallitems exempt (amended in1989)from customs duties
andarenotbasiccommodities norcapital goods, 3%onallitems
subject tocustoms duties
5.Import fees 5%onallitems except goods exempted bytheCabinet and
collected when suchlaboratory analysis services arerendered
bygovernment
6.Feesforveterinary and
laboratory analysis
These feesandadditional taxes arenotlevied ondomestic products directly buttheirimported
components aresubject tothem.
Theimport surcharge islevied forsocial, educational, environmental andrecreational purposes.
TheLawsestablishingsomeorganisationssuchasuniversities,municipalities,CivilAviationandHussein
Sports City, stipulate thatpartoftheirresources willaccrue fromasurcharge taxonimports. The
Customs Department collects thetaxthatisdistributed lateramong theorganisations concerned. The
authorities alsoreduced themaximum combined effective tariff (including theimport surcharge of13
percent andtheimport license feeof5percent) formerchandise imports other thanluxury goods from
more than300percent to50percent. Thiswasdoneinagreement withtheWorld Bank. Three luxury
items stillpaycustoms duties higher than50%. These are:alcoholic beverages; tobacco andtobacco
products; passenger cars,cargo motor vehicles andcaravans. Asaresult, theeffective rateofprotection
hasdeclined substantially, andthedispersion inthetariffschedule hasbeenreduced bymore thanone
half.
(e) Quantitive Import Restrictions
Most ofgoods canbeimported intoJordan, asfewitems aresubject toimport restrictions.
Plastic wastes, mineral water, tablesaltandcarsthatarefiveyears oldormore aretotally prohibited.
Some imported items needprior approval forsecurity andhealth considerations. (seesection IV,e.2).WT/ACC/JOR/3
Page28
(e.1) Import/ Export Law
ThenewImport/ Export LawNo.14fortheyear1992 andtheBy-law No.74fortheyear
1993regulate theflowofimports andexports. Themainfeatures ofthese regulations areasfollows:
(i) noimport license isrequired except forimports through protocol tradeorforthose goods that
needpriorapprovalsfromthegovernmentinstitutionsconcerned.Theseapprovalsareconsidered
asimport licenses;
(ii) noexport license isrequired forgoods ofJordanian origin;
(iii) forthose goods thatrequire animport license, alicense isgiven fortheduration ofoneyear
thatcanbeextended fortwoyears;
(iv) import feesarecollected withcustoms duties;
(v) agricultural andindustrial machinery areexempted from import fees;
(vi) rawmaterials exempted from customs duties arealsoexempted from import fees.
(e.2) Prior Approvals
Priorapprovals arerequired forfivecategories ofgoods: (i)fruits andvegetables (ii)chemicals;
(iii)medicines; (iv)some foodstuffs; and(v)telecommunication equipment.
TheimportsofallfreshfruitsandvegetablesfromArabCountrieswithwhomJordanhasbilateral
trade agreements aresubject toaquarterly planissued bytheAgricultural Marketing Organization,
which determines commodities which canbeimported.
Imports ofallfruits andvegetables fromtheArab Countries withwhom Jordan hasprotocol
trade agreements aresubject toproduct exchange agendas signed between these countries andthe
government ofJordan represented bytheAgricultural Marketing Organisation. Theproduct exchange
agendas determine onayearly basisthecommodities thatareallowed tobeimported fromeachcountry
andatwhattime. These measures aimatpreventing excessive supply intheJordanian market during
theseasonsofproduction,whichwouldadverselyaffectfarmers.Duringoff-seasons,importsareallowed
tomake agricultural products available atreasonable prices. Ontheother hand, imports ofallfruits
andvegetables from allnonArab countries areallowed allyearround.
There aresome chemicals which require thepermission oftheDirectorate ofPublic Security
oftheMinistry ofInterior before theycanbeimported.
Medicines require permission fromtheMinistry ofHealth (MOH). Thispolicy wasputinplace
outofconcern thatJordan could become therecipient ofoutdated medicines anddrugs.
There are6foodstuffs thatrequire permission from theMinistry ofSupply (MOS). These
commoditiesincludeitemssuchasindustrialmilk,barley,animalfoodstuffsandfrozenlamb.Permissions
aregranted bytheMOS fortheimport ofthese commodities, thepermissions areconsidered licenses
inthemselves .
Alltelecommunication equipment suchastelephones, facsimile machines, telexes etc.require
theprior approval oftheMinistry ofTelecommunication fortechnical purposes.
Thefollowing items needprior approval from certain government institutions:WT/ACC/JOR/3
Page29
Good Party Granting Approval
1.Rice Ministry ofSupply (MOS)
2.Powdered Milk (Halibuna Brand) (MOS)
3.Wheat Flour (MOS)
4.Sugar (MOS)
5.Frozen Lamb (MOS)
6.Wheat, Barley &Corn (MOS)
7.Milk forIndustrial Use (MOS)
8.Frozen Animal Semene Ministry ofAgriculture
9.Live Animals Ministry ofAgriculture
10.AllKinds ofArms &Ammunition Ministry ofInterior Public Security Department
11.AllKinds ofExplosives (PSD)
12.PenKnives &Similar Articles (PSD)
13.Children ’sAutomobile Toys (PSD)
14.Remote Control AirplaneToys (PSD)
15.Electrical &Electronic Video Games
Machines (PSD)
16.Self-Defense Electrical Equipment
Such asElectrical Sticks (PSD)
17.AllChemicals Products (PSD)
18.Radio-Active Materials andUranium Ministry ofEnergy &Mineral Resources
19.Mineral Raw Materials Ministry ofEnergy &Mineral Resources
20.Wireless Transmitters &Receivers Telecommunications Corp. (TCC)
21.Wireless Alarm Equipment (TCC)
22.AllKinds ofRemote-Control Equipment
except those forTVandVideo (TCC)
23.Transmission &Reception Stations (TCC)
24.Cellular Telephone Systems (TCC)
25.Decoders (TCC)
26.Gold oreforManufacturing &
Reexport Central Bank ofJordan
27.Colour Photocopying Machines Central Bank ofJordan
28.AllKinds ofMedicines &Anti-Biotics Ministry ofHealth (MOH)
29.Food Preparations &Food Complements (MOH)
Used Especially byAthletes
30.Potassium Promades (MOH)
31.DyeNOE104(Quinoline Yellow) (MOH)
32.Asbestos Pipes &Boards (MOH)
33.Halon Material Ministry ofMunicipalities andRural Affairs
34.Postal Clearing Machines Ministry ofPost &Communications
35.Potato, Onion &Garlic Agricopying
Machines Central Bank ofJordan
(e.3) Prohibitions
There areprohibitions onthree commodities, mineral water, table salt,andplastic wastes.
Inaddition, thereisadefactobanonimports ofcarsthatarefiveyears oldorolder forsafety reasons.WT/ACC/JOR/3
Page30
(e.4) Imports Through Government
TheGovernmentregulatestheimportsandinitialdistributionoffivecommodities,sugar,wheat,
rice,onebrandofpowderedmilkandcigarettes.Privatesectorcontractorsareselectedthroughtendering
andactasagents fortheMinistry ofSupply infacilitating theimport ofthecommodity. Fourofthese
products arebasic foodstuffs, theirimport through thegovernment istoensure adequate supply at
alltimes. However, theGovernment tookadecision inAugust 1995 allowing theprivate sector to
import sugar andrice.
(f) Import Licensing Procedures
originally licensing wasapre-requisite formostimports. Butwiththeliberalization offoreign
tradeandstreamlining ofimport procedures inthelastfewyears, licensing isnomore apre-requisite.
Onlyproducts imported under bilateral tradeprotocols andproducts thatneedpriorapprovals arestill
subject toimport licensing.
Thesystem wasoriginally intended forrevenue collection andstatistical purposes andnotfor
restricting thevalue orquantity ofimports norcontrolling thedirection oftrade ordiscriminating on
country basis.
Allpersons, firms andinstitutions canengage inimport activity iftheypossess import cards.
Toobtain animport card, anyoftheabove mustberegistered intheMinistry ofIndustry andTrade.
Arecord ofauthorized importers iskeptintheMinistry ofIndustry andTrade anddistributed tothe
official authorities concerned withimportation. Information regarding import regulations orprocedures
ispublished inlocalnewspapers andintheOfficial Gazette.
(g) Other Border Measures
Jordan doesnotapply anyother measure.
(h) Customs Valuation
Customs duties inJordan arecalculated onthebasis oftheCIFvalue ofimports onthe
registration dateofthecustoms declaration form.
Ingeneral, thereiscompliance between realanddeclared prices. However, theCustoms Law
authorizes theCustoms Department todirectly value imported items iftheimporter failstoverify his
declared price. Thecustoms valuation isusedforthepurpose ofapplying customs duties andthesales
tax.
(i) Other Customs Formalities
There arenocustoms formalities ormeasures thataffect theimportation ofgoods.WT/ACC/JOR/3
Page31
(j) Pre-shipment Inspection
Currently Jordan doesnothaveapre-shipment system .
(k) Application ofInternal Taxes onImports
Theonlyinternal taximposed onimports isthesalestax.Thistaxisequally applied todomestic
goods andservices.
(l) Rules ofOrigin
Imported goods should haveacertificate oforigin endorsed byanapproved authority inthe
country oforigin, aswellas,anenclosed invoice.
National exports should haveacertificate oforigin endorsed bytheChamber ofIndustry or
theChamber ofCommerce and/oranyother authority asrequested bytheimporter, aswellas,any
other requirement agreed upon intrade protocols.
Forthepurpose ofre-exporting goods, acertificate offoreign origin hastobeissued andbe
endorsed bytheChamber ofIndustry ortheChamber ofCommerce.
(m),(n),(o) Anti-dumping, Countervailing Duty andSafeguard Régimes
Jordan ’spresent trade lawsandregulations havenospecific provisions thatdealwithanyof
theabove issues. Once Jordan accedes toWTO, thentheagreements onthese issues willapply.
2. Export Regulation
(a) Registration Requirements forEngaging inExporting
Allthatisneeded toengage inexport activity isacertificate ofregistration ofthebusiness
enterprise.
(b) Customs Tariff Nomenclature, Types ofDuties, Weighted Averages ofRates
Jordan hasnotariff nomenclature specifically forexports. Nocustoms duties arelevied
onexports.WT/ACC/JOR/3
Page32
(c) Quantative Export Restrictions
There arenorestrictions orprohibitions onexports.
(d) Export Licensing Procedures
Jordanian exporters donotneedexport licenses forexporting Jordanian products except for
goods exported under protocol trade ifthevalue oftheexported goods exceed onethousand dinars.
Re-exports offoreign goods needanexport license iftheirvalue exceeds onethousand dinars.
(e) Other Measures
There arenoother measures, suchasminimum export prices, voluntary export restrictions,
ororderly marketing arrangements toregulate exports.
(f) Export Financing, Subsidy andPromotion Policies
Export promotion inJordan isarelatively recent activity. Itsimportance became evident after
theGulfwarandthelossofexport markets forJordanian products. TheJordan Export Development
andCommercial Centres Corporation offers technical assistance toindustries toupgrade theproducts
andadopt international standards anddevelop theirmarketing capabilities.
Inaddition tothat,there exists anumber ofincentives topromote exports andthusincrease
foreign exchange earnings. However, there arenoexport incentives thataretiedtoalocalcontent
requirement. These incentives taketheform of:
(f.1)Customs Duty Exemptions intheForm ofTemporary Entry
Thetemporary entry scheme which grants dutyexemptions forfirms manufacturing forexports
isapplied inJordan. Exporters canusethescheme when theybuyfromeither wholesalers ofbonded
commercial warehouses aswellaswhen theyimport directly.
(f.2) Credit Facility oftheCentral Bank ofJordan
TheCentral Bank ofJordan (CBJ) currently extends credit forbanks toprovide financing
toexporters, forthepurpose ofpromoting national exports. These advances aremade available against
letters ofcredit, billsoflading under collection onnational goods andaccepted andguaranteed drafts.
Furthermore, suchadvances aregranted according tothefollowing general conditions:
- theamount financed byadvances against export letters ofcredit “pre-shipment credit ”should
notexceed 75%from thevalue oftheexport credit;WT/ACC/JOR/3
Page33
- theamount financed byadvances against billsoflading accepted andguaranteed drafts
“post-shipment credit ”should notexceed 90%ofthevalue ofthebillsordrafts;
- thevalidity oftheadvances granted against bills, export credits andguaranteed drafts should
notexceed ninemonths, forallcountries;
- theinterest rateandcommission collected bylicensed banks andfinancial companies from
exporters is2%p.a.,above theinterest ratecollected byCBJonthese advances;
- local value added rateaccepted bytheCBJongoods locally produced forthepurpose of
utilizing these advances should notbelessthan25%;
- theCBJcomputes interest rateonthese advances onthebasis ofrediscount ratedecided by
theCBJonthedaytheadvance isgranted.
(f.3) Loans Granted totheIndustrial Development Bank (IDB)
Toencourage theestablishment ofnewindustries andexpand thealready -existing ones, the
Central Bank ofJordan allocated anamount ofJD10.0million tobeextended through theIDBduring
1994, andaceiling ofJD5million tobeextended through 1995, asmedium termcredit atlow
interest rate.These loans areusedasfollows:
- financing rawmaterials essential toindustrial export operations;
- financing newindustrial projects andexpanding theexisting ones;
- financing commodities stored forexport purposes.
TheConditions forGranting these Loans are:
- themaximum maturities fortheIDBloans andcredit documents arefiveyears andseven years,
respectively;
- theCentral BankofJordan charges aninterest of6%annually, while theIDBreceives aninterest
andcommission of2.5% higher thantheinterest received bytheCBJ;
- these loans aregranted oncondition thatcogent evidence issubmitted toshow theavailability
ofexport activities ofthecustomer orifanindication ofpromising export opportunities is
submitted.
(f.4) Income TaxExemptions
Income accrued from export sales is100% exempted since 1994. Thisexemption covers
export salesthrough non-protocol tradeonlyandexcludes exports ofphosphates, potash andfertilizers.
(f.5) Private Sector Institutions Promoting Exports
Several private sector institutions playanactive roleinpromoting international trade. Themost
prominent among these arethefollowing:
- theFederation ofChambers ofCommerce established in1955, isanon-profit organization
thataimsatpromoting trade. Itrepresents traders 'views andparticipates ineconomic decision-making
withaviewtoenhancing theroleoftheprivate sector ineconomic activity;
- theAmman Chamber ofIndustry wasestablished in1962asanon-profit organization toprovide
anumbrella forthecountry 'smanufacturing firms. TheChamber serves asaforum fortheviews of
theindustrial sector withtheaimofpromoting economic development. Itcooperates closely withthe
Ministry ofIndustry andTrade andother public entities, insponsoring business missions abroad andWT/ACC/JOR/3
Page34
organizing meetings withforeign business delegations inorder tostrengthen international cooperation,
promote investment andtrade exchange andencourage jointventures;
- theJordanian Businessmen Association wasestablished in1985 asaprivate, independent,
non-profit organization which aimsatcreating theappropriate climate fortheprivate sector tooperate.
Itrepresents theprivate sector 'spoint ofviewandkeeps anopendialogue withtheGovernment to
express these views especially regarding policies thattheGovernment pursues orintends topursue.
Italsoserves itsmembers byconducting studies andsurveys, aswellasproviding technical assistance
andinformation;
- theJordanTradeAssociation(JTA)wasestablishedin1989asaprivate,independent,non-profit
organization which aimsatexpanding, boosting anddeveloping exports ofgoods andservices produced
bytheJordanian private sector. Italsoaimsatproviding thesuitable climate forexchange ofideas
among Jordanian businessmen inthefieldofexports. JTAprovides itsmembers withinformation on
export markets, international tradelaws, required technical specification andprices ofproducts inexport
markets. Italsoestablishes channels ofcommunication andexchange ofinformation withforeign and
localspecialized consultancy bodies;
- theAgricultural Marketing andProcessing Company isaprivate company owned bytheJordan
Investment Corporation, theSocial Security Corporation andtheAgricultural Credit Corporation. The
company owns andoperates processing plants fortomatoes andcitrus fruits. Italsomarkets agricultural
produce bothdomestically andinternationally;
(g)Export Performance Requirements
InJordan there arenoexport performance requirements.
(i) Import Duty Drawback Scheme
Thedutydrawback arrangement allows exporters toreceive refunds onduties paidonthose
materials which would subsequently beusedintheproduction ofexports. Therefund iscalculated
according toaspecific formula foreachproduct. Thefeessubject forrefund include customs duties
andanyother feesortaxes.
Instructions fortheapplication oftheseschemes havebeenrevised tofacilitate theirapplication.
3. Internal Policies Affecting Foreign Trade inGoods
(a) Industrial Policy
Since August 1988, industrial policy inJordan hasbecome market oriented rather than
development oriented.
Theinvolvement ofgovernment bodies inindustrial organization andsupervision waslessened.
Theinvestment decision hasbecome solely thatoftheentrepreneur himself. Thisisalsotrueforthe
expansion anddiversification ofenterprises.
TheroleoftheMinistry ofIndustry andTrade inassisting anddeveloping theindustrial sector
isasfollows:WT/ACC/JOR/3
Page35
(i) helpdevelop anindustrial services sector tocopewiththeincreasing needs oftheindustrial
sector;
(ii) strengthen forward andbackward industrial linkages;
(iii) encouraging "package contracts" which serve several purposes namely, utilization offull
capacities atexisting enterprises andincreasing trade opportunities, inlocalaswellasexport
markets;
(iv) promotion ofindustrial subcontracts andpartnerships.
(b) Technical Regulations andStandards
Domestic andimported goods must meet thenational standards andmeasures. TheJordan
Institution forStandards andMetrology (JISM) isthecountry ’sofficial body forthepreparation and
publication ofJordanian Standards. JISM wasestablished in1995 byvirtue oftheStandards and
Metrology LawNo.15for1994. JISM isthelegalandactual successor oftheJordanian Directorate
ofStandards (JDS) thatwasfounded in1972.
JISM grants Quality Marks andisanimportant promoter ofISO9000“Quality Management
andQuality Assurance Standards ”inJordan. JISM arranges seminars, workshops andlectures for
professionals inthetechnical fields ofMetrology, Standardisation, Testing andQuality Management
(MSTQ) andalsooffers extensive information services inthese fields.
Themain tasks ofJISM are:
- toprepare, approve, revise, andamend Jordanian mandatory orvoluntary standards andmonitor
theirapplication;
- tomaintain thenational system formetrology andsupervise itsimplementation;
- togrant quality marks andcertificates ofconformity;
- tocontrol, testandhallmark theapproved fineness ofprecious metals andjewellery;
- toadopt andapprove standards ofother countries andofArab, regional andinternational
organisations, provided thatsuchstandards areissued inArabic orEnglish;
- tocooperate andcoordinate withorjointhemembership oftheArab, regional andinternational
institutions active inthefields ofstandardisation andmetrology.
Thetasks arecarried outbyJISM’sseven operational directorates:
Standardisation Directorate, Quality Directorate, Precious Metals Directorate, Metrology Directorate,
Laboratories Directorate, Conformity Assessment Directorate andtheInformation Centre.
TheJordan Institution forStandards andMetrology is:
- aparticipating member oftheArab Organisation forIndustrial Development andMining
(AIDMO);
- acorresponding member oftheInternational Organisation forStandardisation (ISO);
- acorresponding member oftheInternational Organisation forLegal Metrology (OIML);
- acontact point fortheCodex Alimentarius Commission.
TheMinistry ofHealth (MOH) isresponsible fortechnical regulations regarding drugs and
food. While theMinistry ofAgriculture isresponsible fortechnical regulations forserums, veterinary
medicines, vaccines andpesticides. Bothministries cooperate withJISM onthese matters.
Theaimofstandards andtechnical regulations applied inJordan istoprotect thehealth and
ensure thesafety oftheconsumers. Attheborders inspection offoodandagriculture products iscarried
outbyacommittee fromJISM, MOH, MOA andcustoms department. Samples aretaken fortestingWT/ACC/JOR/3
Page36
inthelaboratories ofMOH ortheMOA orother accredited laboratories toensure theymeettheset
standards inJordan before being cleared bycustoms authority. Jordan applies international recognized
standard when available.
(c) Sanitary andPhytosanitary Measures
TheMinistriesofAgricultureandHealthmaintainsanitaryandphytosanitarystandardstoensure
thatallimportedfoods,plants,plantparts,planby-products,animal,animalby-productsandagricultural
chemicals aresafeanddonotendanger human, animal andplant health andlife.These measures are
justified onthebasisoftheneedtoprotect thesafety oftheagriculture, livestock andpoultry, aswell
asnative plants andanimals.
Jordan isamember oftheCodex Alimenarius Commission, Prior Informed Consent (PIC),
International Office ofEpizootics (IOE), Food andAgriculture Organization (FAO), World Health
Organization (WHO), International Atomic Energy Agency (IAEA). Itworks together withthese
organizations onestablishing andapplying sanitary andphytosanitary measures.
Consignments ofanimals suchaslivestock (liveanimals, frozen andchilled meat, poultry meat,
hatching eggs, pesticides, seeds, animal fodder andorganic fertilizers) aresubject totheMinistry of
Agriculture andMinistry ofHealth inspection andquarantine.
Importedgoodsthatdonotsatisfysanitaryandphytosanitaryrequirementseitherarere-exported,
orifnotremoved, theywillbedestroyed.
Theimport activities aregoverned bytheAgriculture LawNo.20for1973, andother relevant
regulations andinstructions issued bytheMinistry ofAgriculture andtheMinistry ofHealth.
(d) Trade-related Investment Measures
Jordan doesnothaveanymeasures thataretrade-related asexplained inTRIMS.
(e) State-trading Practices
StatetradingenterprisesinJordan,accordingtoArticleXVII,aretheMinistryofSupply(MOS),
theJordan CivilConsumers Corporation (JCCC) andtheAgricultural Marketing Organisation (AMO).
MOS imports, through tendering andbidding bytheprivate sector, wheat, barley, corn, sugar,
rice,onebrand ofdried milk(Halibuna) andcigarettes. These products aresoldonthemarket through
retail outlets atprices setbyMOS withaverysmall margin ofprofit fortheretailers.
JCCC imports orbuysfrom thedomestic market theproducts itsbeneficiaries needandsellsthem
inthedifferent branches ofJCCC intheKingdom atprices thatareslightly lower thanmarket prices.
Thebeneficiaries ofJCCC arethegovernment employees.
AMO isanagricultural marketing board anddoesnotengage inactual export orimport of
physical goods, anditdoesnotinterfere intheprices ofproducts exported orimported.WT/ACC/JOR/3
Page37
(f&g)FreeZones andFreeEconomic Zones
Oneofthemainobjectives ofestablishing thefreezoneareas intheKingdom istoencourage
transit trade andexport-oriented industries thatwould support thenational economy ofJordan. Any
local, Arab orforeign investor canoperate inthefreezones. Investors register withtheCompanies
Registrar inthefreezones before operating inthezones. Goods imported orexported fromthefree
zones, other thantothedomestic market, areexempted fromcustoms duties andanyother taxes and
fees.
Twofreezones arecurrently operating inJordan. They are:
(i) TheAqaba FreeZone:
ThetotalareaoftheAqaba FreeZone isclosetoonemillion square meters. Itisfullyequipped
with:
(a) infrastructure:
(b) goods handling equipment;
(c) storage warehouses ofanareaof250,000 square meters;
(d) paved openyards ofanareaof300,000 square meters;
(e) cold-storage facilities ofacapacity of6,000 tonnes.
Itserves foreign andtransit trade ofgoods imported through theportofAqaba.
(ii) TheZarqu FreeZone:
TheZarqa FreeZone covers anareaextending 5.5million square meters, andliesonstrategic
international crossroads. Itserves boththeindustrial andcommercial investment sectors.
Foreign, localandjointventure investment inindustrial andservices projects established in
freezones enjoy thefollowing exemptions:
(a) exemption ofprofits from income taxforaperiod oftwelve years;
(b) exemption ofnon-Jordanian employees from income taxontheirremuneration and
exemption from social services tax;
(c) exemption ofgoods imported intofreezonefromoutside Jordan fromcustoms duties,
import feesandother taxes orfees;
(d) exemption ofbuildings constructed therein from licensing feesandrealestate taxes;
(e) freedom torepatriate capital invested andprofits earned.
(h) Trade-related Environmental Policies
Jordan doesnothavecurrently anytrade-related environmental policies.
(i) Mixing Regulations
There arenomixing regulations inJordan.WT/ACC/JOR/3
Page38
(j) Government Mandated Counter-trade andBarter
InthepastJordan usedtohavebarter tradeagreements withsome Arabcountries. Atpresent
there arenocounter trade, orbarter trade agreements between Jordan andanyother country.
(k) Trade Agreements Leading toCountry-specific Quotas Allocation
There arenosuchtrade agreements thatallocate certain quotas forimport from orexport to
anycountry.
(l) Government Procurement Practices
Government procurement practices inJordan aregoverned byseveral lawsandregulations
depending onthenature andpurpose oftheprocurement. Thepurchases ofsupplies forgovernment
departments aresubject toSupplies Regulation No.32fortheyear1993andtheTenders Instructions
No.(1)of1994 issued bytheMinister ofFinance.
TheGeneral Department ofSupplies/ Ministry ofFinance, istheofficial bodyresponsible for
suchprocurement. Thiskindofprocurement covers thesupplies government departments needto
performtheirdutiesefficiently.Theyrangefromofficeequipmentandsuppliestolaboratoryequipment,
carsandavariety ofother equipment needed bythedifferent departments tocarry outtheirdifferent
activities.
Procurement isusually carried outthrough tendering byTheCentral Tendering Committee
which iscomposed ofthree permanent members fromtheGeneral Supplies Department, theMinistry
ofIndustry andTrade andtheMinistry ofFinance inaddition totwoother persons fromthebeneficiary
department thatapplies forsupplies purchase.
Ingovernment procurement some preference isgiven forproducts soldonthelocalmarket
whether produced locally orimported.
ForPublic Works, contracts aretendered through theMinistry ofPublic Works. Government
purchase ofwheat andsome foodsupplies iscarried outbytheMinistry ofSupply through tendering.
(m) Regulation ofTrade inTransit
Jordan applies theprinciples oftheinternational agreement forroadtransportation known as
TIR. Italsoapplies theprinciples oftheArab Transit Agreement signed onMarch 14,1977. This
agreement consists ofthesame principles astheTIRbutsetsceilings onfeescollected forservices
provided toArab vehicles.
Thefollowing feesarecharged ontransit trade forservices rendered:
- atollequal to0.3% ofthevalue ofthegoods intransit, provided thatthevalue ofthetoll
doesnotexceed twohundred dinars;
- adiesel feeequal toeighty dinars;WT/ACC/JOR/3
Page39
- transit goods destined tofreezones areexempted from thetollof0.3%.
4. Policies Affecting Foreign Trade inAgricultural Products
More extensive anddetailed information willbesupplied laterontheitems under thisheading
oncetheinformation anddatarequired inWT/ACC/4 isfinalised.
(a) Imports
Customs valuation forimports isbased onvalue oftheproduct inthecustoms declaration.
Imports ofagricultural products require certificate oforigin andhealth certificate thattheproduct is
clear ofdiseases, radiation andnothazardous tohumans andenvironment.
Allagricultural inputs areexempt from customs duties butpay5%import fee.
(b) Exports
Thegovernment doesnotgiveanyloans orguarantees forsubsidizing agricultural exports.
(c) Export Prohibition &Restrictions
There arenoquantity orvalue restrictions onagricultural exports.
(d) Export Credits
(seesection IV,f) export credits facility oftheCentral Bank.
(e) Internal Policies
(e.1)Agricultural Policy
Agricultural policy inJordan hasfourmain objectives: 1-increased foodself-reliance, 2-
stimulating agricultural growth, 3-promoting balanced economic growth andequity; and4-improved
resourcemanagementandconservation.Toachievetheseobjectives,theGovernmentsupportsthefarmer
ondifferent levels which are:
(i) retail prices ofagricultural products (vegetables andimported meat) aresetbyagovernment
committee, whereas farm-gate prices offruits andvegetables, andwholesale prices ofredand
white meataredetermined bymarket forces;WT/ACC/JOR/3
Page40
(ii) theGovernment through theMinistry ofSupply sometimes buyslocal production ofsome
agricultural products suchaswheat, barley, lentils, chickpeas atpre-declared prices thatare
compatible withinternational prices;
(iii) irrigation water issoldtofarmers atsubsidized rates, though agradual phasing outistaking
place;
(iv) agricultural income isexempt from income tax;
(v) imports from Trade Protocol Countries areregulated through theissuance ofayearly plan
which includes products andquantities thatareallowed forimportation based onmarket needs.
V. TRADE -RELATED INTELLECTUAL PROPERTY REGIME
1.General
(a) Intellectual Property Policy
TheGovernment recognizes theimportance ofamending thelawspertaining tointellectual
property, like industrial property andcopyrights, trade marks, taking intoconsideration the
international intellectual property conventions andtheconditions forentry intotheWorld Trade
Organization.
(b) Responsible Agencies forPolicy Formulation andImplementation
TheHouses ofParliament, TheCouncil ofMinisters, Ministry ofTrade &Industry and
Ministry ofCulture, TheCourts ofLaw, theCustoms Department, Television andRadio Stations,
theDepartment ofNational Documentation areresponsible forformulation andimplementation ofLaws
andregulations pertaining tointellectual property rights.
(c) Membership ofInternational Intellectual Property Conventions andorRegional orBilateral
Agreements
Jordan isalready amember totheParis Convention fortheProtection ofIndustrial Property
andTheArab Agreement fortheProtection ofCopyrights.
Jordan isconsidering thepossibility ofacceding to:
(i) Madrid Agreement (1891) concerning theInternational Registration ofMarks;
(ii) Protocol Relating totheMadrid Agreement concerning theInternational Registration ofMarks
(1989);
(iii) Nice Agreement (1957) concerning theInternational Classification ofGoods andServices for
thepurposes oftheRegistration ofMarks;
(iv) “PCT”Patent Cooperation Treaty (1970);
(v) Berne Convention (1886) fortheProtection ofLiterary andArtistic Works.;
(vi) Rome Convention (1961) fortheProtection ofPerformers, Producers ofPhonograms and
Broadcasting Organizations.WT/ACC/JOR/3
Page41
TillthetimeJordan accedes toabove-mentioned agreements andtreaties itwillcomply with
therequirements ofTRIPS when itaccedes toWTO.
(d) Application ofNational andm.f.n. Treatment ofForeign Nationals
Withregard totheprotection ofindustrial property thecurrent lawsprovide foreign nationals
treatment equal tothatofnationals.
Thecurrent Copyright Lawprovides protection onlyforworks published orreproduced in
Jordan forJordanian andforeign authors, andthework published orreproduced abroad forJordanian
authors ifitispublished inJordan. Asfortheworks offoreign authors published abroad, international
conventions andreciprocity shallbetaken intoconsideration inthisrespect.
2. Substantive Standards ofProtection, Including Procedures fortheAcquisition andMaintenance
ofIntellectual Property Rights
(a) Copyright andRelated Rights.
TheCopyright Protection LawNo.22 fortheyear1992 governs theprotection ofcopyright
inJordan. Protection covers original works ofliterature, artandscience nomatter whattheirtype,
importance orpurpose is.This includes theworks ofartexpressed inwriting, sound, drawing,
photography andmotion, suchasbooks, speeches, plays, musical compositions, films, applied art,
three-dimensional works andcomputer software. TheLawisbeing revised andamended tocomply
withcopyright protection inTRIPS.
(b) Trademarks, Including Service Marks
Trade Marks LawNo.33of1952, effective July1,1952.
Theinternational classification ofgoods according totheNiceAgreement isfollowed inJordan.
TheTrademark Lawdoesnotprovide fortheprotection ofservice marks ininternational classes 35
to42oftheNiceAgreement. Separate application should befiledwithrespect toeachclassofgoods.
Trademark applications accepted bytheRegistrar arepublished intheOfficial Gazette. There
isathreemonth period openforfiling opposition byanyinterested party. Intheabsence ofopposition,
however, apublished trademark isregistered, andthecertificate ofregistration isissued.
Atrademark registration isvalid for7years asfrom thedateoffiling theapplication. Thereafter,
atrademark registration isrenewable forperiods of14years each. Noprovision intheJordanian law
prohibits thelicensing oftrademarks.
(c) Geographical Indications, Including Appellations ofOrigin
(Nopresent legislation available)WT/ACC/JOR/3
Page42
(d) Industrial Designs
Patents Designs LawNo.22of1953; effective February 17,1953; Patents andDesigns Order
No.of1953. Designs areprotected inJordan through registration withThePatent andIndustrial
Design Office oftheMinistry ofIndustry andTrade. Suchregistration iseffected without anynovelty
examination attheapplicant ’sresponsibility. According totheJordanian Patents Designs Law, there
are15classes under which designs canberegistered. Theclassification isbased onthematerials
which thegoods aremade fromsuchasmetals, glass, wood, paper, leather etc..Application maybe
filedtoregister thesame design formore thanoneclass; aseparate application isrequired foreach
class. Rejections bytheRegistrar canbeappealed totheCourt ofCassation within onemonth.
Adesign registration isvalid forfiveyears starting asofthedateoffiling theapplication.
Aregistration canberenewed fortwosimilar periods offiveyears each.
There isnoprovision inthecurrent Design LawofJordan forcompulsory working orlicensing
withrespect todesigns.
Anyinfringement orunauthorized useofaregistered design ispunishable under thecurrent
design law.
(e) Patents
Patent andDesign Law, No.22of1953, effective February 17,1953; Patent andDesign Rules,
Order No.1of1953.
Jordan isamember totheParis Convention. Once anapplication forthegrant ofapatent
isfiled, itisexamined withrespect tocompliance withformalities andpatentability provided forunder
thePatent LawinJordan.
ThePatent Office mayrequire whatever amendments thatmaybenecessary tobring the
application intoconformity withthelaw.
Working ofpatents inJordan isanofficial requirement. Intheevent thattheowner ofapatented
invention inJordan doesnotsatisfy thestipulated working requirements ofthecountry within three
years asfrom thedateofgrant ofapatent, thenthepatent willbesubject tocompulsory licensing
under theprovisions ofthelaw.
Infringement oftherightofapatentee ispunishable under theprovisions ofthecurrent Patent
LawinJordan.
(f) Plant Variety Protection
(Nopresent legislation available)WT/ACC/JOR/3
Page43
(g) Layout Designs ofIntegrated Circuits
(Nopresent legislation available)
(h) Requirements onUndisclosed Information, Including Trade Secrets andTestData
(Nopresent legislation available)
(i) AnyOther Categories ofIntellectual Property
(Nopresent legislation available)
3. Measures toControl Abuse ofIntellectual Property Rights
(a) Trademarks
TheTrademark LawNo.33of1952includes regulations tocontrol abuse oftrademark rights
atdifferent stages during theprocess ofthetrademark application ofwhich wemention thefollowing:
(i) Before acceptance ofthetrademark application:
Thelawincludes alistofmarks which arenotcapable ofregistration asmarks inArticle 8;
(ii) Upon publication ofthepatent application intheOfficial Gazette:
TheLawincludes regulations inArticle 11which allows anyperson tofileanopposition action
against theregistration ofapatent application published intheOfficial Gazette;
(iii) Beyond theregistration ofatrademark:
TheLawincludes regulations inArticles 22and25which allow anyperson tofileacancellation
action against theregistration ofamark, ortheremoval ofamark from theregister.
(b) Patents
ThePatent andDesigns LawNo.22of1953 includes regulations tocontrol abuse ofpatent
rights atdifferent stages during theprocess ofthepatent application, ofwhich wemention thefollowing:
(i) Before acceptance ofthepatent application:
TheLawincludesregulationswhichallowstheRegistrartorefuseapatentapplicationorrequire
some amendments inthespecifications;
(ii) Upon publication ofthepatent application intheOfficial Gazette:
TheLawincludes regulations inArticle 11which allow anyperson tofileanopposition action
against theregistration ofapatent application published intheOfficial Gazette;
(iii) Beyond theregistration ofapatent:
TheLawincludes regulations inArticle 23which allow theChief Public Prosecutor orany
person tofileacancellation action against theregistration ofapatent, from theregister.WT/ACC/JOR/3
Page44
(c) Designs
ThePatent andDesigns LawNo.22for1953includes regulations tocontrol abuse ofdesign
rights atdifferent stages during theprocess ofthedesign application.
(i) Before acceptance ofthedesign application:
TheLawincludes aregulation which allows theRegistrar torefuse adesign application.
(ii) Beyond theregistration ofadesign:
TheLawincludes regulations inArticle 36which allow anyperson tofileacancellation action
against theregistration ofadesign, ortheremoval ofadesign from theregister.
(d) Copyrights
TheCopyright LawNo.22fortheyear1992includes regulations tocontrol abuse orcopyrights
inarticles 42,46,47and51.
4. Enforcement
(a) Civil Judicial Procedures andRemedies
TheJordan Civil Code isonlyreferred toinorder toclaim damages ininfringement cases
byciting itsArticle No.256ofChapter Three entitled “TheInjurious Act”which states asfollows:
- every injurious actshall render theperson whocommits itliable fordamages ifheisa
non-discerning person;
Theinjurious actisfurther described inArticle No.257asfollows:
(i) theinjurious actmaybedirect orcausative;
(ii) andifitisdirect thedamages shallbedueunconditionally andifitiscausative itshallbesubject
totheproof oftrespass orintent orthattheactledtotheinjury.
(b) Provisional measures
(Nopresent measures available)
(c) AnyAdministrative Procedures andRemedies
(Nopresent administrative procedures andremedies available)
(d) AnySpecial Border Measures
TheCustoms LawNo.16fortheyear1983 includes insection four“Banned andRestricted
Goods ”under Articles 32and33which classifies thebanned orrestricted goods as“TheforeignWT/ACC/JOR/3
Page45
goods which carry atrademark, aname orasignwhich gives afalseimpression thatitisoflocal
origin.... ”(Article 32)and“Theforeign goods thatdonotsatisfy theconditions stipulated forinthe
lawsandregulations fortheprotection ofproperty andorigin... ”(Article 33).
(e) Criminal Procedures
(Nospecial procedures available other thanthose mentioned under thetrademark lawandthe
merchandise marks law).
5. Laws, Decrees, Regulations andOther Legal ActsRelating totheAbove
(i) TheTrade Names LawNo.(30)fortheyear1953.
(ii) TheMerchandise Marks LawNo(19)fortheyear1953.
(iii) TheHigh Court ofJustice pastdecisions pertaining tointellectual property cases areusedas
abasis fordeciding fornewcases.
6. Statistical DataonApplications forandGrants ofIntellectual Property Rights
Registered Trade Marks &Patents during theperiod 1987 tillDecember 31,1995 according
totherecords ofDepartment ofTrade Registration &Industrial Property protection intheMinistry
ofIndustry andTrade:
Item/Year 1987 1988 1989 1990 1991 1992 1993 1994 1995
1.Trade Marks
a.Local Trade Marks 432 462 387 530 640 962 1309 1130 1637
b.Foreign Trade Marks 515 712 608 601 484 803 974 741 863
c.Total ofTrade Marks 947 1174 995 1131 1124 1765 2282 1871 2500
2.Patents
a.Local Patents 8 13 8 11 613 12 24 23
b.Foreign Patents 39 38 24 31 30 35 30 46 45
c.Total ofPatents 47 51 32 42 36 48 42 70 68
VI. TRADE -RELATED SERVICES REGIME
2. Policies Affecting Trade inServices
Trade inservices inJordan isregulated bydomestic lawsandregulations, registration and
licensing requirements. Activities oftrade inservices inJordan areguided byboththelawsthat
areofhorizontal nature affecting more thanonesector orservice andby-laws andregulations that
pertain toacertain sector oractivity.WT/ACC/JOR/3
Page46
Horizontal Legislation
Themain Lawinthiscategory istheInvestment Promotion LawNo.(16)for1995 which
regulates domestic andforeign investment inJordan including some services. Inaddition theregulation
onInvestment Promotion ofnon-Jordanians No.1, for1996 specifies thefollowing criteria for
non-Jordanians Investors.
Anon-Jordanian canownnomore than50%ofanyproject inthefollowing services:
a) landandairtransportation;
b) construction contractors;
c) trade andtrade services;
d) banking andinsurance;
e) investment inAmman Financial Market.
Theminimum limitforforeign investment inanyproject inJordan isJD100,000 (onehundred
thousand) dinars, exception being buying shares attheAmman Financial Market minimum isJD.
1,000 (onethousand) dinars.
TheCompanies Law No.(1)for1989andtheInvestment Promotion Lawreferred toabove
arethemainimportant Laws thatregulate therightofestablishment orcommercial presence inJordan.
TheCompanies Laws defines thevarious forms ofcompanies thatcanbeestablished inJordan.
These include limited liability companies (private andpublic); partnership (general &limited); &mutual
funds, branch offices andregional offices.
Foreign companies areallowed tooperate inJordan intheformofabranch office oraregional
office, ortheycanregister aJordanian company attheMinistry ofIndustry &Trade. Foreign
shareholders canbemembers oftheboard ofdirectors, andeventakeuptheposition ofexecutive
director.
Moreover, regional offices established inJordan enjoy exemptions from:
(i) registration andanyother related fees;
(ii) income andsocial services taxes onprofits generated bytheforeign company from business
conducted outside Jordan;
(iii) taxes onwages andsalaries offoreign employees;
(iv) customsdutiesandotherfeesandchargesonsamplesanddemonstrationmodels,officefurniture,
oneautomobile foreachforeign employee every fiveyears.
Forregistering acompany inJordan oraregional office allthatisneeded fromtheinvestor
isthefollowing:
- registering theproject attheDirectorate ofIndustrial Development intheMinistry ofIndustry
andTrade (MIT), followed by;
- submitting anapplication totheController ofCompanies attheMinistry ofIndustry andTrade;
- theController ofCompanies thenpursues thematter withtheCouncil ofMinisters forapproval.
Iftheinvestor isestablishing abranch ofaforeign company, thenauthorization fromthemother
company forestablishing abranch inJordan andthename oftheperson authorized tosignonbehalf
ofthemother company must besubmitted withtheapplication.WT/ACC/JOR/3
Page47
Foraregional office, anapplication should besubmitted totheController ofCompanies at
Ministry ofIndustry andTrade withthefollowing documents, translated intoArabic andauthenticated
byaNotary Public inJordan.
- registration certificate ofthecompany initshome country anditsmemorandum andarticles
ofassociation which indicate itstype, capital andobjectives;
- acopyofthepower ofattorney bywhich aperson resident intheKingdom isauthorized to
dealwiththecompany 'saffairs;
- acopyofitsbalance sheet forthelastfiscal yearinitshome country andastatement showing
itsvolume ofbusiness inthearea, authenticated byacertified public accountant.
TheCentral Bank Law No.(19)fortheyear1979andtheForeign Exchange LawNo.(95)
for1966regulate theforeign exchange dealings. Thefullconvertibility ofthecurrent account payments
ofthebalance ofpayments hasbeenachieved since February 1995 when Jordan accepted formally
Article VIII oftheInternational Monetary Fund Articles ofAgreement.
Theoperations ofbanks inJordan areregulated bytheBanks ’LawNo.(24)for1971 and
itsamendments. Foreign Exchange dealings outside thebanking system arecarried outbymoney
changers whoareauthorized todosobytheMoney Exchange Dealings LawNo(37)for1992.
Anon-Jordanian wishing totakeupemployment inJordan must obtain awork permit from
theMinistry ofLabour andaresidence permit fromtheMinistry ofInterior. Labour LawNo.(27)
for1988 andResidency &Foreigners Affairs Law No.(5)for1991 govern theemployment and
stayofforeigners inJordan.
Theconditions toobtain awork permit are:
(i) twocopies ofawork contract signed bytheemployer andtheemployee;
(ii) professional license oftheagency employing him;
(iii) health certificate issued bytheMinistry ofHealth;
(iv) avalid passport foratleastsixmonths;
(v) personal photographs oftheperson tobeemployed.
There arenolimitations onthenumber offoreign employees. However, theeconomic activity
isusually whataffects thenumber.
3. Specific Sectors
(a) Financial Services
(a.1) Banking Services
Thefinancial sector inJordan consists oftheCentral Bank ofJordan (CBJ), licensed banks,
andother specialized credit institutions. Currently there arefifteen commercial banks operating in
Jordan ofwhich fivearebranches offoreign banks. Inaddition, therearesixprivate investment banks
andoneindustrial development bank.
CBJencourages thebanking sector toextend itsrange ofservices, andithasliberalized almost
alldirect controls oninterest ratesandcredit.
Regarding banking business, anycompany thatdesires toestablish abankinJordan mustobtain
alicense from CBJ, which isgranted upon ajustified economic needforestablishing suchabank,WT/ACC/JOR/3
Page48
andthebankmustbeapublic shareholding company. Branches offoreign banks areexempted from
thelatter condition. Theprinciples thatgovern licensing newbanks are:
(i) general particulars oftheeconomy;
(ii) study ofcapital market status;
(iii) general banking system situation, available economic infrastructure andbanking system
sufficiency tocopewithnewentrants;
(iv) services tobeextended bythebank;
(v) banks paid-up capital;
(vi) founders background;
(vii) feasibility study fortheestablishment ofthebank.
TheConditions forestablishing foreign banks andbranches are:
1. a) reciprocity treatment principle;
b) theextent ofapplying sound supervision bymother bankandhome country monetary
authority inaccordance withBasle requirements;
c) banking system capability toabsorb establishing newbanks;
d) financial status ofmother bank;
2. foreign participation inJordanian banks ’capital isnottoexceed 50%;
3. foreign participation isgranted national treatment. Inaddition, there arenorestrictions on
thetransfer abroad oftheprincipal andprofits offoreign capital inforeign currency.
Asforalready existing foreign banks inJordan, theyaresubject tothesamerulesforbranching
aslocal banks. Until recently, theminimum capital requirement ofanylicensed bank wasJD5.0
million. Foreign companies wishing tooperate asabank inJordan must transfer toJordan inone
single payment notlessthanJD5.0million inaconvertible currency. InDecember, 1995, CBJrequired
domestic banks toraisetheircapital toJD20.0million, bytheyear1997atthelatest. Minimum capital
requirement ofJD.20.0million applies inanon-discriminatory treatment toalllocally established
banks regardless ofthepercentage offoreign participation inthebank. Asforbranches offoreign
banks, capital requirement must notbelessthanJD5.0million. TheBasle capital adequacy ratio
isapplied uniformly toalldomestic andforeign banks.
Authorized banks arepermitted toenterintoforward contracts inmajor currencies against the
Jordan dinar forspecified commercial transactions, provided thattheycover suchoperations abroad.
Each authorized dealer ’sforward transaction issubject toaminimum quantitative limit. For
corporations orprojects considered tobeofvitalnational interest, theCentral Bankmayofferaforward
exchange facility inrespect offorward exchange cover provided byJordanian banks. There areno
taxes orsubsidies onpurchases orsalesofforeign exchange.
Toactivate andpromote theforeign exchange market andtoenhance theliberalization offoreign
currency control restriction, licensed banks arepermitted toinvest amaximum of50%oftheirforeign
currency deposits ininvestments inside andoutside Jordan. Such investments include: granting
development loans inJordan, participating insyndicated loans inside andoutside Jordan tofinance
projects inJordan, investing ingovernment bonds andbillsissued infivespecified countries outside
Jordan, ininternational andregional institutions ’bonds, incorporate bonds ratedAAA orAA,infloated
interest billsandbonds inthespecified countries, andinJordan ’sgovernment bonds issued inforeign
currency. Interbank borrowing inforeign currencies arealsopermitted. Licensed banks areauthorized
tooperate investment portfolios (including margin trading) inforeign currencies onbehalf of
nonresidents outoftheirforeign currency accounts financed bytransfers from abroad. TheCentral
Bank applies asetofprudential measures thatarechangeable depending ontheeconomic requirements
ofthecountry including interest rates, credit ceilings andbanks deposits withCBJ.WT/ACC/JOR/3
Page49
Policies Affecting Trade inBanking
Theexchange system hasbeensubstantially liberalized since 1992. OnFebruary 20,1995
fullcurrent account convertibility hasbeenachieved asJordan accepted formally Article VIIIofthe
IMFArticles ofAgreement. Nonresident accounts inforeign currencies arefreeofallrestrictions,
while opening nonresident accounts indomestic currency areregulated byCBJ.
Transfers andwithdrawals fromnonresident foreign currency accounts arefreeofrestrictions,
andinterest ratesonforeign accounts areinlinewiththose prevailing ininternational markets. In
addition, CBJdoesnotrestrict remittances ofincome accruing tononresidents.
Jordanians maymaintain foreign currency accounts withaceiling equivalent toJD.0.5million,
while residents andnonresidents mayobtain credit facilities against theirforeign currency deposits.
Onthesame side,export proceeds arenotrestricted byrepatriation oranyother requirements.
Regarding payments forcurrent transactions, afeeof0.10percent islevied onexchange permits
forimports andpayments forinvisibles except those ofgovernment departments, permits financed
from nonresident accounts inforeign currency, andpermits withavalue oflessthanJD.300.
Nonresidents maytakeoutanyforeign means ofpayments thattheyhadpreviously brought
inanddeclared tothecustoms authorities atthetimeofentry.
Asforcapital transactions, inward transfers ofcapital arenotrestricted, while outward transfers
aresubject toapproval byCBJ. Inparticular, inflows andoutflows pertaining toforeign direct
investmentmadeinJordanarecompletelyliberalized.TheCBJallowscapitaltransferstoArabCountries
onareciprocalbasis.Capitaltransfers,forspecifiedinvestmentsoroperatingpurposes,tothePalestinian
SelfRuleareas arepractically freeofrestrictions.
Market Access andNational Treatment
Alllicensed banks (domestic andforeign) operating inJordan enjoy thesame treatment except
fortwodomestic banks; theHousing Bank andtheIndustrial Development Bank. These twobanks
weregranted limited privileges toenable themtomeetsome desirable economic andsocial objectives.
Atanyrate,theCBJisintheprocess ofphasing outthespecial privileges accorded tothese twobanks
under theongoing Economic Reform andDevelopment Loan (ERDL) agreed onwiththeWorld Bank
in1995. AsfortheHousing Bank, there iscurrently anewdraftlawunder legislative process. This
draftlawabolishes allpreferential treatment theBank enjoys under itspresent law.Privileges granted
totheBank bytheCBJhavebeenalready abolished.
AsfortheIndustrial Development Bank, astudy isbeing prepared toassess itsprivileges
butnoaction hasbeentaken sofar.
Regarding market access, theCBJgrants newbanklicenses onacasebycasebasis, andinmaking
thedecision examines applications onthebasis ofeconomic needs andobjectives. These include the
efficiency ofestablishing suchbanks, acapital requirement ofnotlessthanJD.20.0million, given
thattheshare offoreign capital inanybank doesnotexceed 50% ofitscapital, while thecapital
requirement forbranches offoreign banks must notbelessthanJD.5.0 million. Inpractice, there
arenolimitations imposed onlicensed bank concerningthenumberortotalvalueoftheiroperations.
Inaddition, thenewInvestment Promotion Lawgranted foreign capital thesame treatment enjoyed
bydomestic capital (Ref. Non-Jordanian Investment Promotion Regulation No.1 of1996, andForeignWT/ACC/JOR/3
Page50
Exchange Control Regulations). Furthermore, foreign banks aregranted national treatment according
toCBJregulations.
(a.2) Insurance Services
Insurance services inJordan arebeginning toemerge asanimportant segment oftheeconomy
developing steadily itscapacity anddiversifying itsactivities.
There arenowtwenty fourinsurance companies inJordan. Prior to1996there wereeighteen
insurancecompanies,ofwhichoneinsurer,theAmericanLifeInsuranceCompanyisabranchoperation.
Some eleven oftheother seventeen companies havebetween 10and45percent oftheircapital owned
bynon-Jordanian investors. According totheInvestment Promotion Lawforeigners canownupto
50%ofthecapital ofaninsurance company. Thetotal capital ofinsurance companies inJordan in
1995 reached JD.25.5 million.
Theinsurance services inJordan areregulated bytheInsurance LawNo.(30)for1984 and
itsamendments andtheNewInsurance LawNo.(9)of1995.
According tothisLawtheoperations oftheinsurance companies aresupervised bytheOffice
oftheController ofInsurance intheMinistry ofIndustry andTrade.
Theinsurance companies haveaFederation thatcomprises allinsurance companies including
foreign companies. Nocompany isallowed tooperate inJordan ifitisnotamember oftheFederation.
Therequirement formembership oftheFederation isthatthecompany should beregistered inJordan.
TheFederation looks aftertheinterest ofitsmembers. Other functions aresetting insurance rates
andprices forcompulsory insurance onmotor vehicles, unifying insurance contracts, andforeseeing
theadoption ofprofessional codeofbehaviour among theinsurance companies.
Market Access andNational Treatment
Anyinsurance company tobeestablished mustberegistered inJordan andmustbeapublic
share holding company.
Thecommercial presence ofaforeign insurance company inJordan isbased ontherightof
reciprocity except forthose companies thatwere present inJordan before 1984. These areusually
intheform ofabranch ofaforeign company oranaccredited agent fortheforeign company.
Theminimum capital ofalocalinsurance company isJD.2.0 million, while thatforabranch
ofaforeign company oritsaccredited agent isJD.4.0 million. Therequired minimum capital for
alocalreinsurance company isJD.20.0million.
Allemployees mustbeJordanians including themanager ofthebranch ofaforeign insurance
company oritsaccredited agent. However, theController ofInsurance maygrant permission toan
insurance company toemploy uptothree non-Jordanian experts. Anynumber beyond three requires
theapproval oftheMinister ofIndustry andTrade upon therecommendation oftheController of
Insurance explaining thecaseforarealneedfortheservices ofsuchanexpert.WT/ACC/JOR/3
Page51
Thegeneral manager forabranch ofaforeign insurance company oranaccredited agent of
aforeign insurance company mustberegistered intheCommercial Register ortheCompanies ’Register
incaseofanatural entity.
Any Jordanian insurance company andbefore commencing itsoperations mustdeposit with
acommercial bank“insurance ”money forthedifferent kinds ofinsurance andasfollows:
JD.100,000 forlifeinsurance andsavings. JD.75,000 fortransport, fire,accidents andany
other kindofinsurance.
Asforabranch ofaforeign insurance company oritsaccredited agent, theyarerequired to
deposit double these sums. Thisistoprotect theholders ofinsurance policies fromanydefault onthe
partofsuchacompany.
Asforalocal re-insurance company itmust deposit JD.500,000 forlifeinsurance and
JD.250,000 forother types ofinsurance.
Thedeposits areheldunder thename oftheMinister ofIndustry andTrade andareconsidered
asacollateral thatcannot berevoked except withacourt order orwritten instructions fromtheMinister
ofIndustry andTrade. TheController ofInsurance isalerted bythebankifafallintheamount of
thedeposit occurs.
Thedeposits canbeinvested inshares, development bonds, corporate bonds andrealestate
mortgages.
TheController ’soffice keeps arecord oftheactivities oftheinsurance companies ingeneral,
andofeachcompany inparticular, aswellasoftheagents, intermediaries andexperts. TheController
oranyoneappointed byhimhastherighttoinspect andaudittheoperations ofanyinsurance company
atanytimeandthecompany istoprovide himwithanydocuments heasksfor.
Insurancecompanies(foreignanddomestic)aregrantedayearlypermissiontoperforminsurance
activities. Thepermission isrenewable upon submitting arequest onemonth before theendofeach
calendar year.
Anycompany involved ininsuring transport risksshould keepintheKingdom nolessthan
30%ofthetotalamount ofinsurance premiums, accrued intheKingdom, attheendofthefinancial
year; and40%forfireandaccidents andanyother form ofinsurance other thanlifeinsurance.
(a.3) Amman Financial Market
Amman Financial Market (AFM) though small byinternational standards itisconsidered the
mostdynamic bourse intheArab Countries. Themarket witnessed highgrowth ratesinthenumber
oflisted companies aswellasinshare prices. Because ofthesmallness ofitssize,itremains sensitive
toeconomic andpolitical developments inJordan andtheregion. Itisenvisaged thatthemarket will
develop andbecome stronger withdiversification ofitsfinancial instruments. Theactivities ofthe
AFM areregulated bytheAFM Law(No.31) of1976andbytheRegulation (No.26) of1980. Foreign
investors caninvest infinancial paper traded inAFM inJD.provided thattheequivalent offoreign
exchange hasbeentransferred toJordan from abroad andforeign ownership should notexceed 50%
ofthecapital ofanyenterprise.WT/ACC/JOR/3
Page52
Information regarding “market access andnational treatment offoreign securities firms”is
readily available intheEncouragement ofInvestment Lawwhich isavailable ondiskettes andalso
inhardcopy. TheAmman Financial Market (A.F.M.) frequently receives inquiries onthissameissue
andresponds promptly byfaxfollowed bythehardcopyairmailed toinvestors indifferent parts of
theworld. Furthermore, thelicensed brokerage firms attheAFM, which number twenty eight, respond
tosimilar inquiries frompotential andexisting clients from Europe, North America, andother parts
oftheworld.
Other means ofdisseminating information available tonon-Jordanian investors include:
- datavendors viamodem (such asAccess andNets);
- daily trading information viaJordan Television;
- dissemination ofAFM publications tomember firms andallinterested parties bothinside and
outside Jordan;
- E-mail through theInternet (theAFM address is:afm(a)go.com.jo ,while theACCESS
Webpageaddress is:http:// accessme.com) .
(b) Telecommunications Services
(b.1)
Thetelecommunications sector inJordan iscurrently undergoing arestructuring process
according towhich thefollowing changes havetaken place:
- anewTelecommunications LawNo.13 for1995 came intoforce since October,1995;
- aTelecommunications Regulatory Commission (TRC) hasbeenestablished asafinancially
independent entity responsible forregulating theSector. Theduties andresponsibilities of
(TRC) aredescribed intheabove mentioned Law. Itisnotlinked toTCCoranyother operator
financially ornon-financially;
- aPolicy Department hasbeenestablished intheMinistry ofPosts andTelecommunications
tocarry outduties concerning policy development andsuggestion;
- theNational Operator, theTelecommunications Corporation (TCC), hasbeencommercialised
asacompany wholly owned bytheGovernment asasteptowards privatisation. Thefirstphase
ofprivatisation willbetheintroduction ofastrategic partner andwillprobably takeplace in
thesecond halfof1997. Apublic offering willlaterbemade afterassessment ofthefirstphase.
(b.2) Existing Services:
Public Switched Telephone Network (PSTN):
TCC, which isapublic sector entity, isthemonopolistic provider ofbasic telephone service.
Thenumber ofconnected subscribers is330000. Thepenetration rateisabout 7.7per100inhabitants,
andexpected toreach 11%upon thecompletion ofon-going expansions. There arenoplans yetto
completely liberalise thepublic voice. Asforthepolicy onprivate circuits forvoice ithasnotbeen
approved yet.WT/ACC/JOR/3
Page53
Cellular Mobile Telephone:
Aprivate company waslicensed toprovide theservice in1994. Thestandard usedisGSM.
Number ofcustomers isabout 13500. Theservice covers themajor cities andhighways andimportant
touristic sites. There areplans tointroduce asecond cellular operator bytheyear1998 through open
bidding.
Paging:
Thisservice isprovided byaprivate company since 1987. Number ofsubscribers isaround
7500. Itisexpected tolicense asecond paging operator through openbidding.
Payphones:
TCC istheonlyprovider ofpayphone service. Thepenetration ofpayphones isverylimited
andtheirnumber doesnotexceed 300units located insome public sites.
DataServices:
Themarket ofthese services isstillinitsinitial stage ofdevelopment. Currently, 7operators
arelicensed toprovide dataservices. Allofthemareprivate companies andnotrelated tothePSTN
operator. Licensing ofdataservices isopen, provided thattheconditions laidbytheRegulator are
met.
(b.3) Policies Affecting Trade inServices
- Authorized Bodies:
Theoverall authority toapprove policies isvested intheCouncil ofMinisters upon the
recommendation oftheMinister ofPosts andTelecommunications. Within theMinistry, thePolicy
Department isresponsible forproposing andreviewing policies. TheTelecommunications Regulatory
Commissionisresponsibleforlicensing,issuingpermits,typeapproval,frequencymanagement,resolving
disputes between licensed operator andother regulatory functions asprescribed bythe
Telecommunications Law.
- Judicial Authorities:
Incaseofdisputes, theRegulator willarbitrate within itsauthority given bythe
Telecommunications Law. Beyond thislimit, theCourt willtakeovertheresponsibility.
- Provisions Concerning Qualification, Technical Standards andLicensing:
Provisions oftheTelecommunications Lawcover these requirements. Licensing procedures
areopenandtransparent.WT/ACC/JOR/3
Page54
- ProvisionsGoverningtheExistenceandOperationofMonopoliesorExclusiveServiceSuppliers:
Provisions oftheTelecommunications Lawcover these issues.
- Provisions Relating toSafeguard Measures astheyApply toTrade inServices:
Noregulations yetexistinJordan.
- ProvisionsRelatingtoInternationalTransfersandPaymentsforCurrentTransactionsofServices:
Those offoreign exchange regulations.
(b.4) Market Access andNational Treatment
- Limitations ontheNumber ofService Suppliers:
Limitation onthenumber ofsuppliers foraparticular telecommunications service isapolicy
matter andcanbeimposed bytheCouncil ofMinisters. Limitations, ifany,arenormally declared
inthesame decision oftheCouncil which allows fortheintroduction oftheservice.
- Restriction on,orRequirements ofSpecific Type ofLegal Entity Through Which aService
MaybeSupplied:
Theservice provider should bearegistered company inconformance withtheCompanies Law.
- Limitations ontheparticipation offoreign capital:
According totheInvestment Promotion LawNo.(16)for1995andNon-Jordanian Investment
Regulation No.(1)for1996, foreign investment, inthissector isnottoexceed 50%ofthecapital.
- Competition:
TheTelecommunications Lawstates:
Chapter II,‘TheMinistry shallundertake thefollowing tasks andduties:
article 3-b:create acompetitive environment among theproviders ofsaidservices, soastoensure
state-of-the-art telecommunications services atacceptable costs andaffordable prices ”.
Chapter III,article 6:“TheCommission shallundertake thefollowing tasks:
- toregulate thetelecommunications sector intheKingdom through theapplication ofthedeclared
policy fortheprovision ofeffective telecommunications services tobeneficiaries, insucha
manner thatkeeps pacewithdevelopments inthetelecommunications technology, andmeets
theneeds ofthose wishing tobenefit from saidservices onnon-monopolistic basis, and
encouraging investment andcompetition inthetelecommunications sector;
- tospread public awareness ofthesignificance ofthetelecommunications utility, endeavouring
toprovide telecommunications services ofalltypes, insuchamanner thatfulfills theneeds
andwishes ofbeneficiaries throughout theKingdom, andgiving dueattention totheprovision
ofservices ofacceptable standards, ataffordable costs, inaccordance withtherules of
competition ”.WT/ACC/JOR/3
Page55
(b.5) Most-Favoured-Nation Treatment
There arenomeasures inconsistent withm.f.n. treatment.
(c) Health Services
(c.1) General
Health andmedical services inJordan areprovided bythepublic sector through theMinistry
ofHealth andtheRoyal Medical Services oftheJordan Armed Forces andtheUniversity Hospital,
andbytheprivate sector, andbyUNRWA (United Nations Relief andWorks Agency) forPalestinians
refugees living inJordan.
Health andmedical services inJordan areamong thebestintheregion. Health indicators
show thatlifeexpectancy atbirth increased from 49years in1965 to70years in1994, andinfant
mortality ratefellfrom 114to33per1,000 livebirths inthesame period.
Thepublic health sector isthemain provider ofprimary andhospital careespecially forthe
limited medium andlowincome people. TheMinistry ofHealth (MOH) operates anextensive primary
health carenetwork with1031health clinics andcentres thatspanthecountry. There are19hospitals
runby(MOH) with2681 bedsand68%occupancy rate.
Theprivate sector health services complement those ofthepublic sector astheyarepresent
mostly incities while thepublic sector serves ruralareasaswellasurban centres. There are36hospitals
with1997 bedsrunbytheprivate sector with49%occupancy rate. Theprivate health sector serves
allJordanians, andforeigners whose numbers having beenincreasing recently especially from Arab
countries.
Theprivate sector offers health insurance schemes tocompanies andindividuals andtheycover
around 12% ofthose insured inJordan.
(c.2) Market Access andNational Treatment
TheInvestment Promotion LawNo.(16)for1995 offers incentives andfullownership of
hospitals established inJordan byforeigners. Hospitals inJordan whether owned byJordanians or
foreigners (100% ownership) enjoy theincentives offered bytheInvestment Promotion LawNo.(16)
of1995 which include:
- exemption from customs duties andimport feesduring theestablishment ofthehospital or
forexpanding anddeveloping itatalaterstage;
- income taxexemptions ranging from 25%-75% depending ontheareawhere thehospital is
established andforaduration of10years;
- exemptions from feesandtaxes onthepurchase offurniture andsupplies forrenewal or
renovation aregranted onceevery seven years.
Asforthecommercial presence, anyonecanestablish ahospital intheprivate sector, butprior
approval mustbeobtained fromthe(MOH) based ontheneedfortheestablishment ofsuchahospital.
Thiscondition applies toJordanians andnon-Jordanians. Thehospital established canberegistered
asacompany provided thatoneoftheowners isamedical doctor.WT/ACC/JOR/3
Page56
Toestablish ahospital inJordan there areasetofrequirements thathavetobesubmitted to
theMinistry ofHealth before itgives itspermission thatthenewhospital mayberegistered atthe
Ministry ofIndustry andTrade asaprivate enterprise orcompany.
Therequired information includes:
- theownership ofthehospital: could beindividual orcompany orcharitable orcooperative
organisation, oneoftheowners must beadoctor;
- thetypeofservices tobeoffered bythehospital, andthenumber ofbeds;
- number ofdoctors andnurses andother staffthatwillbeworking there;
- theareaandsitewhere thehospital isgoing tobeestablished, andthearchitectural and
engineering plans.
TheMinistry ofHealth gives apermission forestablishing thehospital andwhen thehospital
isready toassume operation itisgranted atemporary license fortwoyears bytheMinistry of
Health.
Asforthepresence ofnatural persons thenumber ofJordanian doctors working inanyhospital
should notbelessthanthreequarters ofthetotalnumber ofdoctors. Asforother staff, theJordanians
must notbelessthanhalfthetotalofworkers inthehospital.
(d) Tourism
Tourismactivityisessentiallyprivatesectororiented.TheGovernmentusedtoownasubstantial
share oftheJordan Hotels andTourism Company, butoffered itsshare forsaleandmost ofitwas
bought byaprivate company. ArabInternational Hotels wassoldrecently totheprivate sector. Tourist
activity isgrowing andhotelconstruction isincreasing. Newhotels arebeing builtbyprivate Jordanian
andforeign capital. Foreign investors canown100% ofanyproject inhotels withaminimum capital
ofJD.(100,000). Fixed assets fortheestablishment oftheproject areexempted fromcustom ’sduties
andimport fees. Hotels canalsogetexemption from feesandtaxes ontheirpurchase offurniture
orsuppliesforrenewalorrenovationonceeverysevenyears,andincometaxexemptionrangingbetween
25% -75% fortheduration of10years depending onthedevelopment areawhere thehotel is
established.
Tourist bustransport usedtobeamonopoly ofoneprivate company upto1994. Thesector
isnowopenandtwonewtourist transport companies havestarted operations. Foreigners interested
intourist transport candosowithalimitation of50%ownership fortheproject.
(e) Construction Services
Theconstruction sector isanimportant contributor toeconomic activity inJordan. Bothpublic
andprivate sectors aremajor players intheconstruction activity inthecountry. TheMinistry ofPublic
Works andHousing engages inactual construction andmaintenance ofgovernment buildings androads,
though thebulkoftheconstruction works inthepublic sector iscarried outbytheprivate sector
contractors through tenders offered bytheGovernment.
Thevalue ofconstruction works inthepublic sector in1995 wasJD.475 million ofwhich
JD.186 million wasawarded through theGovernment Tenders Department. Thevalue ofconstruction
works intheprivate sector in1995 wasJD.850million.WT/ACC/JOR/3
Page57
According totheForeign Investment Regulation No.(1)for1996 aNon-Jordanian Investor
isallowed a50%ownership ofanenterprise inthecontracting sector.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
1. Bilateral orPlurilateral Agreements Relating toForeign Trade inGoods andTrade inServices
Jordan hasconcluded bilateral trade agreements withmany countries. These agreements aim
atincreasing tradeflows withdeveloping anddeveloped countries. Most oftheseagreements arebased
onthemost-favoured nation principle. Fewagreements withArabcountries havepreferential treatment
intheform ofpartial ortotalcustoms exemptions from custom duties onspecific goods included in
protocols annexed tothese agreements. However, Jordan inthelastyearorsohasended allthese
trade protocols withtheexception ofLebanon. Thetrade protocol withLebanon willbereviewed
inthenextmeeting between theLebanese -Jordanian JointCommittee expected totakeplace atthe
endof1996.
2. Economic Integration, Customs Union andFree-Trade Area Agreements
Jordan ismember ofArab Common Market Agreement (ACM) since 1964. Themembers
of(ACM) are:Egypt, Iraq, Yemen, Syria, Libya, Mauritania andJordan.
Jordan isamember ofthe“Agreement forFacilitating andDeveloping Trade Exchange among
ArabStates. ”Themember states are:Jordan, United ArabEmirates, Bahrain, Tunisia, Saudi Arabia,
Sudan, Syria, Somalia, Iraq,Palestine, Qatar, Kuwait, Lebanon, Libya, Morocco, Yemen Republic.
Theagreement stipulates thatthefollowing products areexempted from customs duties andtaxes:
- agricultural andlivestock products;
- rawmaterials;
- goods andproducts with40%value-added intheexporting country. Thispercentage could
godown to20%ifallinputs areimported from Arab countries;
- goods andproducts produced byjointArab enterprises;
- anyother good orproduct agreed upon.
Additional exemptions arediscussed butnotagreed upon yet,buttheywillbeintheformof
reductions incustoms duties.
TheAgreement forFacilitating andDeveloping Trade Exchange among Arab States willbe
thoroughly reviewed bymember countries andnewways foractivating itwillbesuggested and
discussed. Thiswilltakeplace during thenextmeeting oftheArab Economic andSocial Council.
These twoagreements arenotfunctioning.
- FreeTrade Areas
Jordan hasconcluded recently afreetradeareaagreement withEgypt which hasnotbeenratified
yet.Theagreement isMFN based withanegative listof48items.
Another freetrade areaagreement istobenegotiated withAlgeria.WT/ACC/JOR/3
Page58
3. Labour Markets Integration Agreements
There arenoLabour Market Integration Agreements, though therearesome provision inArab
economic agreements forfacilitating movement ofworkers among there countries.
4. Multilateral Economic Cooperation, Membership intheMultilateral Economic Organizations,
Trade-related Programmes ofOther Multilateral Organisations
Jordan hasbeenanactive participant inthework oftheUnited Nations System aswellasthe
Bretton Woods Institutions. Jordan isamember ofseveral multilateral economic organisations which
aimatpromoting trade andeconomic cooperation among members. Regionally theyinclude theArab
Monetary Fund, theIslamic Development Bank, theArabFund forEconomic andSocial Development
andtheArab Council forEconomic Unity. Internationally theyinclude theInternational Monetary
Fund,theInternationalBankforReconstructionandDevelopment,theMultilateralInvestmentGuarantee
Agency, World Intellectual Property Organisation (WIPO) andtheInternational Labour Organisation.
4.1 General System ofPreferences (GSP)
Jordan iseligible tobenefit from GSPschemes andisfound onthelistofpreference-giving
countries, buthavenotmade useofthisscheme.
4.2 Agreement withEuropean Union
Jordan signed acooperation agreement withtheEUin1977. Theagreement offers Jordan
seasonal preferential treatment forsome ofitsagricultural products. Thispreferential treatment takes
theformoftariff cutsincertain periods oftheyear. Jordan isnegotiating withtheEUapartnership
agreement. TheJordan-EU partnership agreement isbasically afree-trade, MFN based agreement.WT/ACC/JOR/3
Page59
ANNEX 1
STATISTICS AND PUBLICATIONS
1. Foreign trade statistics forgoods andservices: responsible agencies
TheAgency entrusted withcompilation offoreign tradestatistics istheDepartment ofStatistics.
They alsocompile thefigures forNational Income Accounts.
TheCentral Bank ofJordan compiles thebalance ofpayments figures andanumber oftables
onforeign trade.
2. Publications related tostatistics
TheDepartment ofStatistics publishes annually theforeign tradestatistics according tocountry
andcommodity, andaccording tocommodity andcountry. HStariff codeisusedforclassification
ofcommodities.
TheDepartment ofStatistics alsopublishes anannual statistical bookthatcovers awiderange
ofeconomic andsocial fields. They alsopublish theNational Accounts figures.
TheCentral Bank ofJordan publishes monthly theforeign tradefigures byeconomic function,
andbycommodity according toS.I.T.C. classification andbygeographic distribution, italsopublishes
indices ofunitprice andunitvolume ofdomestic exports andimports.
Balance ofpayments figures arealsopublished bytheCentral Bank ofJordan according to
accrual basis andcashbasis.
Statistical Data
Figures published bytheCentral Bank ofJordan willbecirculated asanaddendum.WT/ACC/JOR/3
Page60
ANNEX 2
LIST OFLAWS AND LEGAL ACTS
A. Laws, Regulations andInstructions (Available inArabic unless otherwise specified)
1. Companies LawNo.1for1989
2. Investment Promotion LawNo.16for1995 (English translation available).
3. Customs LawNo.16 for1983 (English translation available)
4. Imports andExports LawNo.14 for1992
5. Imports andExports Regulation No.74for1993
6. Standards andMeasurements LawNo.15for1994 (English translation available)
7. Income TaxLawNo.57for1985 anditsamendments (English translation available)
8. Instructions forImportation No.1 for1995
9. Instructions forTransit.
10. Instructions forDuty Drawback No.69for1995
11. Instructions forTemporary Entry for1995.
12. Telecommunications LawNo.13for1995
13. Insurance LawNo.30for1984 anditsamendments
14. Copyright Protection LawNo.22for1992
15. Trade Marks LawNo.33for1952
16. Patents Designs LawNo.22for1953
17. Foreign Exchange LawNo.95for1966
18. Central Bank LawNo.23for1971 anditsamendments
19. Banks LawNo.24for1971 anditsamendments
20. Money Exchange Dealings LawNo.37for1992
21. FreeZones Corporation LawNo.32for1984
22. Ministry ofSupply LawNo.17for1992
23. TheJordan Civil Consumer Corporation LawNo.31for1984
24. Labour LawNo.27for1988
25. Residency andForeigners Affairs LawNo.5for1991
26. Amman Financial Market LawNo.31for1976
27. Amman Financial Market Regulation No.26for1980
28. General Sales TaxLawNo.6for1994WT/ACC/JOR/3
Page61
ANNEX 3
INFORMATION ONIMPORT LICENSING PROCEDURES
I. Outline oftheSystem
Originally licensing wasapre-requisite formostimports. Butwiththeliberalization offoreign
trade andthestreamlining ofimport procedures inthelastfewyears, licensing became nomore a
necessity. However, imports executed under bilateral trade protocols stillneedlicensing.
II. Purpose andCoverage ofLicensing
1. Import licensing isnomore apre-requisite forimporting goods since November 1,1995
according toInstructions No.(1) of1995. These instructions exclude products imported under bilateral
tradeprotocols,andproductsthatneedpriorapprovalsfromotherministriesanddepartments.However,
prior approvals areconsidered import licenses inthemselves.
2. Thelicensing system hasalways beenapplied toimported goods without discrimination on
country basis.
3. Thelicensing system wasoriginally intended forthepurpose ofrevenue collection andstatistical
purposes andnotforrestricting thevalue orquantity ofimports norcontrolling thedirection oftrade.
4. Thelicensing system inJordan isgoverned bytheImport-Export LawNo.(14)of1992 and
theImport andExport By-Law No.(74)of1993, andInstructions No.(1)of1995issued inaccordance
witharticle (20) oftheImport-Export By-Law.
Thechange intherules governing import licenses require thefollowing:
- theLawrequires legislative approval;
- theBy-Law requires Council ofMinisters approval;
- theInstructions require theMinister ’sdecision.
III. Procedures
Information regarding import regulations orprocedures ispublished inlocalnewspapers and
intheOfficial Gazette. Theimporter usually informs theexporter ofanyinformation released bythe
government affecting theflowofimports. There arenorestrictions onthequantity orvalue ofimports
from anycountry.
Products thataresubject tolicensing areimports offresh fruits andvegetables from Arab
countries withwhom Jordan hasbilateral tradeagreements. TheAgricultural Marketing Organisation
(AMO) issues aquarterly planforagricultural commodities thatcanbeimported fromthesecountries.
Importers filearequest fortheproduct theywanttoimport andtherequest isprocessed by(AMO)
andtheimporter islatergranted apermission toimport. Imports offruits andvegetables fromArab
countries withwhom Jordan hastrade protocols aresubject toproduct exchange agenda determined
onyearly basis.
Thequarterly planandtheproduct exchange agenda areaimed atpreventing excessive supply
ofagricultural products during theproduction season.WT/ACC/JOR/3
Page62
Asforother products thatneedimport licenses orprior approvals there isnolimitation on
theperiod oftheyearduring which anapplication foralicense maybemade.
IV. Eligibility ofImports toApply forLicense
Allpersons, firms andinstitutions areeligible toapply forlicenses provided theyhave
animport cardwhich isobtained fromtheMinistry ofIndustry andTrade. Toobtain animport card,
theperson, firmorinstitution mustberegistered intheMinistry ofIndustry andTrade. Ifanyofthe
above imports areimported without animport license thentheyhavetopayafineequal to5%ofthe
value oftheimported goods. Thefeeforobtaining animport cardisequal toJD.2.
Arecord ofauthorized importers iskeptbytheMinistry ofIndustry andTrade anddistributed
totheofficial authorities concerned withimportation.
VI. Documentation andOther Requirements forApplication forLicense
1. Theinformation required intheapplication form are:
(1)importer registration No.,(2)name oftheimporter, (3)address oftheimporter, (4)type
ofgoods tobeimported, (5)tariff no.,(6)purpose ofimportation, (7)value inJDonC&F basis,
(8)quantity, (9)weight, (10)country oforigin, (11)portofshipment, (12)portofclearance, (13)
signature, (14)value offeespaid.
Theimport feeisequal to5%ofthevalue oftheimported goodC&F. Nodeposit oradvance
payment isrequired fortheissuance ofthelicense.
VII. Conditions ofLicensing
Import licenses arevalid foraperiod ofoneyearthatcanbeextended foranother year. The
Minister, innecessary situations mayre-extend thelicense foranother additional oneyear. There is
nopenalty forthenon-utilization ofalicense oraportion ofalicense.
Licenses maybeassigned andtransferred toother importers provided thatsuchassignment
ortransferal iscertified bythecompetent body attheMinistry ofIndustry andTrade. Inaddition,
suchassignment issubject toafeeamounting to1%ofthevalue ofthelicense.
VIII. Other Procedural Requirements
There arenoother administrative procedures apart fromtheonesmentioned previously. As
forthesupply offoreign exchange forgoods imported, thebanks provide foreign exchange upon
presenting thelicense ifalicense isrequired ortheimport cardofalicense isnotrequired.WT/ACC/JOR/3
Page63
ANNEX 4
INFORMATION ONIMPLEMENTATION AND ADMINISTRATION
OFTHE CUSTOMS VALUATION AGREEMENT
1. Questions Concerning Article (1)
(a) Sales Between Related Persons
(i)Aresalesbetween persons subject tospecial provisions?
According tothecurrent Customs Lawtheprice agreed upon must notbeaffected
byanycommercial, financial orother relationships between theseller andhispartner other thanthose
arising fromthesaleitself. TheLawalsodefines thebusiness partners asanytwopersons ofwhom
onehasinterest inthebusiness oftheother, orwhen bothhaveajointinterest inanybusiness, or
when some third person hasaninterest inthebusiness ofanyofthem, whether these twopartners
werenatural orphysical persons. Theproposed Custom Draft Lawwillinclude rulessimilar tothose
inArticle (1)oftheCustoms Valuation Agreement.
(ii)Isthefactofintercompany prima facieconsidered asgrounds forregarding therespective
prices asbeing influenced?
Under thecurrent Customs Lawtheyareconsidered so.
However,intheproposedCustomsDraftLawtheJordanianmeasuresinthisrespectwillcomply
withrequirements oftheCustoms Valuation Agreement.
(iii)What istheprovision forgiving thecommunication oftheafore-mentioned grounds in
writing iftheimporter sorequests? (Article 1.2.(a).
Thecurrent Customs Lawdoesnotinclude anysuchprovision.
(iv)How hasArticle 1.2(b)beenimplemented?
Thecurrent Customs Lawdoesnothaveanysuchprovision. Buttheprovisions of
Article 1.2(b)areincorporated intotheCustoms Draft Law.
(b) Price oflostordamaged goods:
TherearenoprovisionsorpracticalarrangementsintheJordaniancustomslawregarding
thevaluation oflostordamaged goods.
2. How hastheprovision ofArticle 4toallow theimporter anoption toreverse theorder of
application ofArticles 5and6beenimplemented?
Such aprovision isincluded intheCustoms Draft Law.WT/ACC/JOR/3
Page64
3. How hasArticle 5.2beenimplemented?
Thecurrent Custom Lawpractices aresometimes based oncomparing ittothevalue ofaproduct
thatwassoldafteradditional processing hastaken place i.e.soldinaform different from theform
when itwasimported. Inthefuture thecustoms practices willcomply withArticle 5.2.
4. How hasArticle 6.2beenimplemented ?
Theconcept ofcomputed value isnotusedbycustoms authorities inJordan because ofthe
difficulty ofidentifying theinputs andtheirvalues.
5. Questions concerning Article 7:
(a) What provisions havebeenmade formaking value determinations pursuant toArticle 7?
TheCustoms Draft Lawhasprovisions thatrefertoinstructions thatwillbeissued intheOfficial
Gazetteexplaininghowtodeterminethevalueoftheimportedgoodsthatcannotbedeterminedaccording
toArticles 1-6.Itisexpected thatsuchinstructions willcomply withthespirit ofArticle 7.1and7.2
andtheInterpretative Notes inAnnex 1oftheAgreement.
(b) What istheprovision forinforming theimporter ofthecustoms value determined under Article
7?
TheCustomsDraftLawincludesanarticlestipulatingthattheimportershallbeinformed
inwriting, upon hisrequest, ofthedetermined value inaccordance withArticle 7andofthemeans
usedtodetermine thisvalue.
(c) Aretheprohibitions found inArticle 7.2delineated ?
Theinstructions thatwillbeissued, oncetheLawispassed bythelegislative authority, will
include alistofalltheprohibitions referred toinArticle 7.2.
(6) How havetheoptions found inArticle 8.2beenhandled ?Inthecaseoff.o.b. application,
areex-factory prices alsoaccepted ?
According totheCustoms Draft Lawthecustom value willbedetermined onthebasisofC.I.F.
including alltheitems referred toinArticle 8.2.
(7) Where istherateofexchange published, asrequired byArticle 9.1.?
Theexchange ratesofforeign currencies against theJordan dinar arepublished intheMonthly
Statistical Bulletin oftheCentral Bank ofJordan.WT/ACC/JOR/3
Page65
(8) What steps havebeentaken toensure confidentiality, asrequired byArticle 10?
TheCustoms Draft Lawincludes anArticle thatsubjects anyonewhodiscloses anyconfidential
information toothers, toquestioning andpunishment.
(9) Questions concerning Article 11:
(a) What rights ofappeal areopentoimporter oranyother person ?
IntheCustoms Draft Lawtheimporter orhisrepresentative isguaranteed therightofappeal
oncustoms valuation without being subject topenalty, infrontofanappeal committee composed of
senior customs officials intheinitial stage andtheninfront ofCustoms Court.
(b) How ishetobeinformed ofhisrighttofurther appeal ?
Therightoffurther appeal isguaranteed bytheLaw.
(10) Provide information onthepublication, asrequired byArticle 12,of:
(a) (i) therelevant national laws;
(ii) theregulations concerning theapplication oftheAgreement;
(iii) thejudicial decisions andadministrative rulings ofgeneral application relating tothe
Agreement;
(iv) general orspecific lawsbeing referred tointherulesofimplementation orapplication;
- Laws, by-Laws andInstructions arepublished intheOfficial Gazette.
- Administrative rulings andjudicial decisions ofgeneral application arepublished asofficial
communiques thatarecirculated toallandputonnotice boards.
(b) Isthepublication offurther rules anticipated? Which topics would theycover?
Atthisstageandbefore theactual application ofthenewrulesitisdifficult tothinkoforsuggest
additional rules andprovisions.
(11) Questions concerning Article 13:
(a) Howistheobligation ofArticle 13(lastsentence) being dealtwithintherespective legislation?
There areprovisions intheCustom Draft Lawthatallow therelease ofgoods from customs
inreturn forguarantees thattheCustoms Department deems appropriate andsufficient toallow the
importer towithdraw thembefore thefinaldetermination ofthecustoms value oftheimported goods.
(b) Have additional explanations beenlaiddown?
No.WT/ACC/JOR/3
Page66
(12) Questions concerning Article 16:
(a) Does therespective national legislation contain aprovision requiring customs authorities to
giveanexplanation inwriting astohowthecustoms value wasdetermined ?
Thecurrent Customs Lawdoesnotcontain suchaprovision. TheCustoms Draft Lawcontains
anarticle thatobliges thecustoms authorities toinform theimporter inwriting, upon hisrequest, of
howthecustoms value determined andthereasons thatcaused thecustoms authorities todoubt the
declared value andtheprecision ofthedocuments.
(b) Arethere anyfurther regulations concerning anabove-mentioned request ?
Itispossible withacourt order, andatalltimes, toprovide therequested explanations.
(13) How havetheInterpretative Notes oftheAgreement beenincluded ?
TheCustoms Draft Lawcontains theprovisions oftheGeneral Noteconcerning sequential
application ofvaluation methods anddefinitions ofsome expressions. Asfortheapplication ofArticle
7,itwillbedonethrough instructions published intheOfficial Gazette. Theother notes willbeissued
asspecial communiqués.
(14) Howhavetheprovisions oftheDecision of26April 1984ontheTreatment ofInterest Charges
intheCustoms Value ofImported Goods (Val/6/Rev.1) beenimplemented?
Thiswillbetaken careofatalaterstagebypublishing theDecision firstandthenimplementing
it.Thisaction willapply toother decisions.
(15) Forthose countries applying paragraph 2ofthedecision of24September 1984ontheValuation
ofCarrier Media Bearing Software forData Processing Equipment (Val/8), howhavethe
provisions ofthisparagraph beenimplemented?
(Seeanswer forquestion 14above).WT/ACC/JOR/3
Page67
ANNEX 5
INFORMATION ONTECHNICAL BARRIERS TOTRADE
1. Description ofRelevant Laws, Regulations, Administrative Orders, etc.Relating to
Implementation andAdministration ofTechnical Barriers toTrade
Therelevant Laws andregulations are:
1. LawofStandards andMetrology No.(15)fortheyear1994, (atranslation isattached) contains
theregulations, responsibilities, authorities, revenues andpenalties ofJISM.
2. TheQuality Mark Regulation
Itstates thedesignation ofthemark, feescharged forthemark andvalidity period ofthemark.
3. TheInstructions forImplementing theQuality Mark Regulation issued pursuant thereto.
4. TheNational Measurement Regulation
Itcancels Regulation No.58oftheyear1972onlegalmetrology controls andgives theauthority
totheAdministrative Council ofJISM toissue anyinstructions required forimplementing such
regulation.
5. Instructions forPreparation ofJordanian Standards.
Itcontains instructions forforming thetechnical committees assigned toprepare standards,
work schedule forsuchcommittees, draftofthestandard, approval ofthestandard, publication ofthe
standard, update ofthestandard andadoption ofinternational orregional standards.
2. Information regarding:
(a) Name ofpublications:
“TheJordan Standards Catalogue ”isthepublication thatcontains Jordanian Standards. Itispublished
bothinArabic andEnglish.
(b) TheName andaddress oftheenquiry point:
Thename andaddress oftheenquiry point foreseen inArticles 10.1and10.3oftheWTO
Agreement onTechnical barriers totrade is:
Jordan Institution forStandards andMetrology,
P.O.Box :941287,
Amman -11194- Jordan,
Tel:962-6-680139
Fax:962-6-681099WT/ACC/JOR/3
Page68
(c) Name andaddress oftheagency dealing withconsultations:
Thename andaddress oftheagency dealing withconsultations asforeseen inArticle 14of
WTO Agreement onTechnical Barriers toTrade is:
TheMinistry ofIndustry andTrade,
P.O.Box: 2019
Amman -1118 -Jordan,
Tel.: 962-6-663191
Fax: 962-6-603721
(d) Name andaddress ofagencies thataredealing withother specific functions foreseen inthe
Agreement:
(i) TheMinistry ofHealth isresponsible forimposing technical regulations forfoodanddrugs
andensuring theconformity oflocally manufactured andimported commodities withtheseregulations
thataresetaccording tothePublic Health Law. Address is:
Ministry ofHealth,
P.O.Box: 86,
Amman, Jordan
(ii) TheMinistry ofAgriculture isresponsible forimposing technical regulations forserums,
veterinarymedicines,vaccinesandpesticides.Itensurestheconformityoflocallyproducedandimported
commodities withthese regulations. Theaddress is:
Ministry ofAgriculture,
P.O.Box: 2099,
Amman, JordanWT/ACC/JOR/3
Page69
ANNEX 6
INFORMATION ONSTATE-TRADING
I. Enumeration ofState-trading Enterprises
1. Does yourcountry maintain enterprises covered bytheprovisions ofArticle XVII?
State-trading enterprises inJordan, according tothedefinition ofArticle XVII aretheMinistry
ofSupply, (MOS) theJordan Civil Consumers Corporation (JCCC) andtheAgricultural Marketing
Organisation (AMO).
TheMinistry ofSupply imports wheat, barely, corn, sugar, rice,onebrand ofdried milk
(Halibuna) andcigarettes.
TheJCCC imports directly some ofthegoods itsells, andbuystherestfrom thedomestic
market whether imported orlocally produced. Thebeneficiaries oftheJCCC operations aregovernment
employees only.
TheAgricultural Marketing Organisation islikeamarketing board regulating theimport and
export ofagricultural products from andtoArab countries withwhom Jordan hasbilateral trade
agreements ortrade protocols.
II. Reason andPurpose forIntroducing andMaintaining State-trading Enterprises
Themain function oftheMinistry ofSupply andaccording toLawNo.17for1992 isto
implement thegeneral supply policy fortheKingdom, andtoprovide theKingdom ’sneeds ofbasic
foodproducts aswellasensuring astrategic reserve ofthese products.
AsfortheJCCC, LawNo.31for1984, defines itsmainactivity asprovision ofdifferent food
andconsumption goods tothebeneficiaries atreasonable prices.
TheAgricultural Marketing Organisation doesnotengage inactual exporting orimporting
ofgoods. Asmentioned earlier oneofitsactivity istoregulate theflowofagricultural products between
Jordan andtheArab countries with whom Jordan hasbilateral andtrade protocol trade agreements
according toayearly planandaquarterly agenda. These measures areintended toprevent excess
supplies ofsimilar products during theproduction season inJordan. AMO doesnotinterfere with
theprices ofgoods traded.
III. Description oftheFunctioning ofState-trading Enterprises
Thepurchases oftheMinistry ofSupply andtheJCCC arecarried outoncommercial basis
through theprivate sector. When tendering forimports, domestic private sector enterprises representing
foreign enterprises bidforthecontracts.
TheMinistry ofSupply resells thefoodproducts totheprivate sector retail outlets whomake
themavailable toconsumers atprices setbyMOS. Fodder products aresolddirectly tofarmers from
theMOS distribution outlets. TheGovernment hastaken decision toallow theprivate sector toimportWT/ACC/JOR/3
Page70
alloftheproducts thatwereamonopoly ofMOS especially afterabolishing thewheat andfodder subsidy
andtargeting other subsidized goods likericeandsugar.
JCCC buysitsneeds either byimporting directly orfromthedomestic market andsellsthem
tothebeneficiaries initsoutlets inthedifferent towns inJordan.
IV. Statistical Information
Thefollowing tableshows theimports ofMOS intheyear1994 and1995.
Product Quantity (ton) Quantity (ton)
1994 1995
Wheat 500,000 650,000
Barley 500,000 550,000
Corn 245,000 450,000
Sugar 175,000 180,000
Rice 58,000 93,000
Milk (Halibuna) 600,000 carton 840,000 cartonWT/ACC/JOR/3
Page71
ANNEX 7
LIST OFBILATERAL AGREEMENTS BETWEEN JORDAN AND OTHER COUNTRIES
A. Foreign Countries
1. Agreement onEconomic andTechnical Cooperation between Jordan andBelgium.
2. Agreement onEconomic andTechnological Cooperation between Jordan andBulgaria.
3. Trade Agreement between Jordan andthePeople 'sRepublic ofChina.
4. Trade Agreement between Jordan andRepublic ofChina.
5. Trade Agreement between Jordan andGreece.
6. Long Term Trade Agreement between Jordan andHungary.
7. Trade andEconomic Agreement between Jordan andIndia.
8. Trade andEconomic Agreement between Jordan andIndonesia.
9. Trade Agreement between Jordan andNorth Korea.
10. Trade Agreement between Jordan andSouth Korea.
11. Trade Agreement between Jordan andPakistan.
12. Long Term Trade Agreement between Jordan andPoland.
13. Trade Agreement between Jordan andPortugal.
14. Trade Agreement between Jordan andRomania.
15. Trade Agreement between Jordan andSpain.
16. Trade Agreement between Jordan andSriLanka.
17. Trade andEconomic Agreement between Jordan andSwitzerland.
18. Trade Agreement between Jordan andTurkey.
19. Trade Agreement between Jordan andBrazil.
20. Trade Agreement between Jordan andEthiopia.
21. Trade Agreement between Jordan andAustralia.
22. Trade Agreement between Jordan andDenmark.
23. Trade Agreement between Jordan andFinland.
24. Trade Agreement between Jordan andAustria.
25. Economic Agreement between Jordan andtheEuropean Communities.
26. Agreement onEconomic andTechnical Cooperation between Jordan andGermany.
27. Trade andEconomic Agreement between Jordan andRussia.
28. Trade Agreement between Jordan andMexico.
29. Agreement onEconomic andTechnical Cooperation between Jordan andHolland.
30. Trade andEconomic Agreement between Jordan andCanada.
31. Trade Agreement between Jordan andMalaysia.
32. Agreement onEconomic andTechnical Cooperation between Jordan andChile.
33. Trade Agreement between Jordan andtheIslamic Republic ofIran.
34. Trade Agreement between Jordan andIsrael.
B. Arab Countries
1. Trade andEconomic Agreement between Jordan andBahrain.
2. Trade Agreement between Jordan andTunisia.
3. Trade andEconomic Agreement between Jordan andSaudi Arabia.
4. Trade Agreement between Jordan andSudan.
5. Trade andEconomic Agreement between Jordan andSyria.
6. Trade Agreement between Jordan andSomalia.
7. Trade andEconomic Agreement between Jordan andEgypt.WT/ACC/JOR/3
Page72
8. Trade Agreement between Jordan andQatar.
9. Trade andEconomic Agreement between Jordan andLebanon.
10. Trade Agreement between Jordan andLibya.
11. Trade Agreement between Jordan andMorocco.
12. Trade andEconomic Agreement between Jordan andYemen.
13. Trade andEconomic Agreement between Jordan andOman.
14. Trade andEconomic Agreement between Jordan andKuwait.
15. Trade andEconomic Agreement between Jordan andIraq.
16. Trade andEconomic Agreement between Jordan andUnited Arab Emirates.
17. Trade Agreement between Jordan andDjibouti.
18. Trade andEconomic Agreement between Jordan andthePalestinian National Authority.