RESTRICTED
WORLD TRADE WT/ACC/JOR/8
4June1997
ORGANIZATION(97-2338)
Original: English Working Party onthe
Accession ofJordan
ACCESSION OFJORDAN
Questions andReplies
ontheMemorandum ontheForeign Trade Regime
(Documents L/7533, WT/ACC/JOR/2 and3)
Inacommunication, dated 6January 1994, circulated asL/7378, theGovernment ofthe
HashemiteKingdomofJordanappliedforaccessiontotheGeneralAgreementonTariffsandTrade1947
onthebasis ofArticle XXXIII oftheGeneral Agreement. Having regard totheDecision adopted
bytheGeneral Council on31January 1995, theWorking Party ontheAccession ofJordan tothe
GATT 1947 wastransformed intoaWTO Accession Working Party. Theterms ofreference ofthe
WorkingPartyarereproducedindocumentWT/ACC/JOR/1.IndocumentWT/ACC/JOR/3,Members
hadbeeninvited tosubmit questions inwriting concerning theforeign traderegime ofJordan. Questions
submitted byMembers andthereplies thereto provided bytheauthorities ofJordan arereproduced
hereunder. Theattachments mentioned inthisdocument areavailable intheSecretariat (Accessions
Division, Room 1126) forconsultation. Additional questions andreplies willbecirculated asdocument
WT/ACC/JOR/9.
Delegations wishing toraiseadditional questions concerning theforeign traderegime ofJordan
might inform thedelegation ofJordan (with acopy totheSecretariat) ofsuchquestions inadvance
ofthenextmeeting oftheWorking Party, sothatconsidered replies canbemade available byJordan
toMembers atthetimeoftheWorking Party meeting.WT/ACC/JOR/8
Pagei
TABLE OFCONTENTS
Page
No.Question
No.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN
TRADE
2. Economic Policies
(a) Main directions ofongoing economic policies 1 1-4
(c) Foreign exchange andpayments system 5 5-13
(d) Foreign anddomestic investment policies 8 14-19
(e) Other policies affecting trade 12 20-25
III. FRAMEWORK FOR MAKING AND ENFORCING
POLICIES AFFECTING FOREIGN TRADE INGOODS
AND TRADE INSERVICES
1. Powers ofExecutive, Legislative andJudicial Branches of
Government 13 26-29
2. Government Entities Responsible forMaking and
Implementing Policies Affecting Foreign Trade 14 30
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(b) Characteristics ofNational Tariff 16 31-37
(c) Tariff quotas, tariff exemptions 18 38-42
(d) Other duties andcharges 21 43-47
(e) Quantitative import restrictions 25 48-54
(f) Import licensing procedures 27 55-70
(h) Customs valuation 33 71-72
(l) Rules oforigin 34 73-77
(m) Anti-dumping regime 35 78
2. Export Regulation
(b) Customs tariff nomenclature, types ofduties, dutyrates,
weighted average ofrates 36 79
(d) Export licensing procedures 36 80
(f) Export financing, subsidy andpromotion policies 38 81-89
(g) Export performance requirements 41 90
3. Internal Policies Affecting Foreign Trade inGoods
(b) Technical regulations andstandards 42 91-93
(c) Sanitary andphytosanitary measures 42 94-96
(d) Trade-related investment measures 43 97
(e) State-trading practices 43 98-100WT/ACC/JOR/8
Pageii
Page
No.Question
No.
(f) Freezones 44 101-102
(l) Government procurement practices 46 103
(m) Regulation oftrade intransit 46 104
4. Policies Affecting Foreign Trade inAgricultural Products 46 105
(a) Imports 47 106-122
(b) Exports 52 123-125
(c) Export prohibitions andrestrictions 53 126
(e) Internal policies 53 127-131
V. TRADE-RELATED INTELLECTUAL PROPERTY
REGIME
1. General
(a) Intellectual property policy 55 132-134
2. Substantive Standards ofProtection
(a) Copyright andrelated rights 56 135-143
(b) Trademarks, including service marks 60 144-159
(d) Industrial designs 65 160-163
(e) Patents 65 164-174
(g) Layout designs ofintegrated circuits 68 175-178
(h) Requirements onundisclosed information 69 179-180
3. Measures toControl Abuse ofIntellectual Property Rights 69 181-182
4. Enforcement 70 183-184
VI. TRADE-RELATED SERVICES REGIME
2. Policies Affecting Trade inServices 70 185
3. Specific Sectors
(b) Telecommunications services 70 186-187
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
1. Bilateral orPlurilateral Agreements Relating toForeign Trade
inGoods andTrade inServices 71 188-190
2. Economic Integration, Customs Union andFree-Trade
Agreements 73 191-196
Annex 4- Information onImplementation andAdministration of
theCustoms Valuation Agreement 80 -WT/ACC/JOR/8
Page1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions ofongoing economic policies
Question 1.
Please elaborate onthespecifics ofJordan ’splans toreduce subsidies, restructure incentives,
deregulate prices, andliberalize andreform trade asreported inthissection.
Answer:
ThesuccessfulimplementationoftheGovernmentpoliciesdemonstratestheseriouscommitment
oftheJordanian authorities toundertake difficult additional measures inresponse tochanging conditions.
Uncertainties intheMiddle EastRegion andthesteep increases intheinternational prices ofmajor
foodimport commodities suchaswheat andbarley havemade theachievement offiscal targets even
moredifficult. Nevertheless, theGovernment showed itsstrong commitment toremove thegeneralized
subsidy onwheat, (barley andanimal feed). Inlinewiththispolicy reform, theprice ofbread was
increased byalmost 200percentfrom 85filsto250filsperkilogram. Thisaction, however, was
balanced bymaking available cashtransfers totheaffected households meeting theincome eligibility
criteria.
Within thebanking sector, theGovernment hasagreed onanumber ofactions designed to
equalize treatment among institutions andsectors. Thesubsidy component embodied inthecurrent
setofrediscount andadvance rates established bytheCentral Bank tosupport thedevelopment of
agriculture, small handicraft andindustry, municipal infrastructure, low-income housing, andexports
willbeeliminated gradually, except foramaximum of1percentage point forexports, agriculture,
andhandicraft andindustry. Withtheelimination ofthesubsidy element theCentral Bankrediscounting
mechanism would remain available, butatmarket ratesofinterest.
TheGovernment recognizes thatthechanging financial environment, including greater exposure
toexchangeandinterestraterisksandtocompetitions,necessitatesacontinuousreviewandimprovement
ofsupervisory methods andprocedures aswellasprudential regulations. TheGovernment plans to
move away from direct intervention intheday-to-day operation ofthebanks andtogivethebanks
sufficient degree offreedom tomanage theirportfolio within pre-set ratios.
TheHousing Bank hasbeenmade subject tothesameCentral Bank regulation andsupervision
asapplied toother banks. Inaddition, draftlegislation hasbeensubmitted tocabinet toremove all
otherprivileges enjoyed bytheHousing Bank, consistent withmaintaining itsobligations tolowincome
housing. Thedraftlegislation willinclude aprovision thatanysubsidy willbemade available through
ataxcredit totheHousing Bank. Such ataxcredit would notexceed thecurrent subsidy extended
bytheHousing Bank tolowincome housing.
Trade andLiberalization Reform
Aprimary objective oftheGovernment ’sstrong reform programme remains theenhancement
ofitsability togenerate sufficient levelofforeign exchange earnings topromote investment andgrowth,
employment opportunities, andtoboost foreign exchange reserves towithstand external shocks. This
callsforpromoting andsustaining ahighlevel ofexports, attracting anadequate level offoreign
investment andimproving investment efficiencies through reduction ofunnecessary bureaucraticWT/ACC/JOR/8
Page2
bottlenecks, further simplification ofcustoms regulations, enacting business friendly legislation and
proceeding withawellthought privatization programme.
Asaresult ofreforms undertaken since 1989 thetransparency ofthetrade regime hasbeen
greatly enhanced. Currently theonlyinstrument ofprotection isthetariff; import quotas, bansand
licensing requirements havebeeneliminated. Theaverage levelofprotection andthedispersion of
tariffs havealsobeensignificantly reduced. Thishasbeenachieved through thepartial removal of
exemptions andareduction inthemaximum tariffto40percent. Theimport weighted average tariff
rateisbelow 17percent, down from 34percentin1987.
Theobjective oftradepolicy reforms istoencourage export-oriented investment andproduction
byfacilitating trade andreducing tariff protection. Trade willbefacilitated through theadoption of
measures tospeed customs clearance. Tariff reduction willcentre notonlyonthemaximum tariff
butalsoonreducing tariffratesoncapital goods andfurther consolidating thenumber oftariff bands.
TheGovernment hasacted toreduce themaximum tariff to40percent, except foralcohol
andtobacco, by1January 1997. Inthecaseofmotor vehicles, thiswillbeaccompanied bytheadoption
ofadditional general salestaxes toensure thatthisisrevenue neutral. Inorder tosimplify thetariff
structure andincrease transparency, tariff bands arereduced from ninetosix(0,5,10,20,30and
40).Feesandsurcharges additional tothetariff areconsolidated intoonesingle charge, andpartof
thenewtariff bands.
TheGovernment hasreviewed thecurrent tariffexemption policies andhasceased authorising
anynewexemptions. Theexemptions existing under thecurrent bilateral trade agreements willalso
notberenewed oncetheagreements currently inforce expire.
Thesecondmajorcomponentofthereformprogrammeconcernsfacilitationofcustomsclearance.
Asofmid-1996, application ofareference price database forvaluation ofgoods hasbeeninitiated
bycustoms. AnewCustoms Law, based onbestpractices, hasbeendrafted andapproved bythecabinet
andsubmitted totheparliament. Thenewlawrequires thatvaluation bebased onself-declaration
byimporters. Thelawisconsistent withWTO rulesandwillensure thatprotection willonlybegranted
ifitisconsidered tobeintheinterest oftheeconomy asawhole. Inaddition, aSafeguard Lawhas
beensubmitted toparliament.
Thetemporary entry anddutydrawback systems were improved during 1996 through the
introduction ofcomputerisation.
TheGovernment willallow importers tousetheservices ofaselected pre-shipment certification
provider onavoluntary basis. Such services would befinanced bytheimporter. Acceptance by
Jordanian Customs ofdocuments establishing theclassification andvalue ofgoods provided by
certification bodies accredited bytheGovernment ofJordan would bemandatory. Inspection oropening
ofcontainers sealed bycertification bodies bycustoms would belimited. Thisvoluntary pre-shipment
inspectionschemewillprovidebonafideimporterswithanopportunitytoavoidanydelayanduncertainty
concerning customs clearance.
TheGovernment hasalsoimplemented ascheme under which itpermits established exporters
tobenefit from a“Green Channel ”forimports ofmaterials, equipment, andcomponents usedin
production ofexport. Thegreen channel involves acceptance ofinvoices presented byexporters on
thebasis oftrust, withreliance onex-post random auditing offactory premises.WT/ACC/JOR/8
Page3
Question 2.
Please describe more fullyJordan ’splans toprivatize stateenterprises, howthatprocess willbe
conducted, andtheultimate scope envisioned byJordan fortheprivatization process.
Answer:
Jordan Plans toPrivatize State Enterprises
Given thatJordan 'seconomic strategy callsforamuch larger rolefortheprivate sector in
theeconomy, theGovernment ’saimistoreduce itsowninvolvement intheproduction anddistribution
ofgoods andservices. Some ofthesectors previously closed arebeing opened toprivate investors
suchastelecommunication andpower generation. Anewpublic-private partnership isbeing forged
tobuild mutual trustandcreate better understanding ofeachother’sconcerns.
TheGovernment ’sprivatization programme aimsatraising enterprise efficiency. Saleofshares
toreputable strategic investors could improve theoperational performance ofsome public enterprises
(PEs) thatcurrently suffer fromadministrative interventions, limited autonomy, inadequate investment
capital,andpoorlydesignedincentivestructures.Otherobjectivesofthedivestitureswouldbetodevelop
theAmman Financial Market (AFM) through public share offerings byincreasing investment and
diversification opportunities tobothinstitutional andretailinvestors, andtoconsolidate public finances
byreducing subsidies andfiscal drain, andbyincreasing taxbase.
Privatization Process
Rapid implementation oftheprivatization programme inatransparent manner isakeyobjective
oftheGovernment. Tothisendtheinstitutional framework forprivatization hasbeenestablished and
divestiture procedures defined: TheCabinet hasrecently appointed aninter-ministerial committee,
headed bythePrime Minister, tosteertheoverall privatization plan. TheCabinet hasalsoestablished
aPrivatization Implementation Unitintheoffice ofthePrime Minister toprovide implementation
assistanceforprivatizationactivities.AnInstitutionalDevelopmentFund(IDF)granthasbeenmobilized
through theWorld Banktosupport thebuilding upofinstitutional capacity toimplement theprogramme.
TheIDFandtheGovernment willfinance thehiring ofqualified localandforeign experts toimplement
transactions andtraining ofprofessional staffofthePrivatization Implementation Unit. Themain
responsibilities ofthePrivatization Implementation Unitinclude:
(a) coordination ofthepreparation ofthedivestiture transactions;
(b) management oftheteams oftechnical experts andshort-term external advisors;
(c) management ofthemarketing efforts ofenterprises being divested;
(d) negotiations withvarious groups ofstockholders;
(e) execution oftransactions;
(f) dissemination ofinformation regarding theprogress oftheprogramme.
TheUltimate Scope Envisioned forthePrivatization Process
Substantive stepshavebeentaken intheenergy andtelecommunication sectors towards eventual
privatization andexpanded private sector participation. ItisalsotheGovernment ’sintention thatthe
public enterprises inthetransport sector willberestructured toallow forgreater private sector
participation. While fullimplementation oftheprivatization programme willtakeovertwoyears,
theGovernment hasdecided thattheTelecommunication Corporation (TCC), theJordan ElectricityWT/ACC/JOR/8
Page4
Authority(JEA),IrbidDistrictElectricityCompany(IDECO),JordanElectricPowerCompany(JEPCO),
Aqaba Railway Corporation (ARC), Jordan Cement Factories company (JCFC), Public Transport
Corporation (PTC), andtheMain Spawillcomprise thefirstphase oftheprogramme tobecompleted
within thenexttwelve months. Thefollowing actions havealready beencompleted:
(a) TCC hasbeenregistered asapublic shareholding company under theCompanies Law. The
privatization Inter-Ministerial committee hasmade thedecision todivest atleast26percent
oftheGovernment ’sshares inTCC toastrategic investor. TheGovernment hasrequested,
ininternational press, expressions ofinterest fromfinancial advisors toexecute thistransaction.
Theselection offinancial advisor hasbeencompleted;
(b) Jordan Electricity Authority hasbeentransformed intoapublic shareholding company under
thename ofNational Electric andPower Company (NEPCO). Ithasbeendecided todivest
NEPCOsharesinIDECOandJEPCO.TheGovernmenthasestablishedaRegulatoryCommission
appointed byCouncil ofMinisters anddirectly responsible forallaspects ofregulation inthe
electricity sector;
(c) theefforts toprivatize ARChavebeenaccelerated andatimebound action planforprivatization
ofARC wascompleted byDecember 1996. Tender documents foraconcession forthe
operations ofthecompany istobeissued byFebruary 1997;
(d) theprivatization oftheJordan Cement Factories hasbeeninitiated byadecision oftheBoard
ofJordan Investment corporation tosellatleasta20percentstake toastrategic partner and
byholding aninternational pre-bidding conference tointerested parties. Ashort-list ofpotential
investors hasbeenprepared, bidsarecurrently being evaluated;
(e) theBoard oftheJordan Tourism andSpaComplex atZerqa Main, hasinvited expressions
ofinterest from interested parties foralong-term concession;
(f) aGovernment decision hasbeen taken toprivatize theoperations ofPublic Transport
Corporation, andadvisors havebeenrecruited forthetask;
(g) divestiture activities ofloss-making firms intheportfolio ofJordan Investment Corporation
(JIC) havebeenaccelerated; liquidators havebeenappointed toselltheassets oftheTelevision
Production Company andtheGlass Factory;
(h) Hotels: Jordan Hotels andTourism Company wasprivatized andtheGovernment owns
30percentoftheshares, Arab International Hotels wassoldtotheprivates sector.
Question 3.
Please listthesectors/enterprises thathave been orareplanned tobeprivatized? What access
doforeigners haveinsuchaprocess? Please describe theultimate scope andoperations ofJordan 's
plans forprivatization.
Answer:
Thelistofthesectors/enterprises thathavebeenprivatized orplanned tobeprivatized are:
- Jordan Electricity Authority;WT/ACC/JOR/8
Page5
- Jordan Telecommunications Corporation (JTCC);
- Aqaba Railway Corporation (ARC);
- Public Transport Corporation (PTC);
- Jordan Tourism andSPAComplex Co.(MAI’NSPAComplex);
- Jordan Cement Factories (JCF);
- thePower sector:
- introduction ofindependent power producers (IPPS);
- thesaleofnationalElectricPowerCompany(NEPCO)sharesinIrbiddistrictElectricity
Company (IDECO) andJordan Electric Power Company (JEPCO);
- thesaleoftheGovernment ’sshares ofbelow (5percent)ofpublic shareholding companies;
- partial saleoftheGovernment ’sother shareholdings suchasthose withtheArab Potash Co.
andtheJordan Phosphate Mines Co.(under study).
Foreigners ofallnationalities areinvited toparticipate intheprivatization process inJordan
withinthelegislationsinforce.Allinternationalconsultants,investors,anddevelopersareinvitedthrough
thelocalandinternational media tocompete forbidsrelated totheprivatization programme.
Question 4.
CouldJordanpleaseprovideinformationonanydiscretionaryinvestmentauthorizations,reciprocity
measures, ordiscriminatory practices involved inprivatization, inaddition toother measures
inconsistent withtheprovisions onmarket access, national treatment, andMFN oftheGeneral
Agreement onTrade inServices (GATS)?
Answer:
Jordan hasneither discriminatory practices nordiscretionary investment authorizations involved
inprivatization atpresent.
(c) Foreign exchange andpayments system
Question 5.
What trade orother measures doesJordanian lawauthorize toprotect itsbalance ofpayments,
should thedinar come under pressure? Please describe theapproach Jordan would takeaddressing
suchasituation, should itoccur.
Answer:
TheGovernment ofJordan adopts anexchange ratepolicy aiming atmaintaining the
competitiveness ofJordan ’sexports ofgoods andservices, andsustaining financial stability inJordan.
TheGovernment ofJordan relies onstrengthening fiscal andmonetary stance tosustain comfortable
levels offoreign exchange reserves andmaintain adequate exchange ratestability. Actions inthefuture,
ifneeded inthedomain ofexchange ratepolicy, would bealong thesame lines, andinconsultation
withtheIMF.WT/ACC/JOR/8
Page6
Question 6.
Canprivate sector firms seekforeign loans directly, ormust theyseekGovernment approval?
Answer:
Theprivate sector firms inJordan canseekforeign loans attheirowndirectly. NoGovernment
approval isrequired.
Question 7.
Jordan states that"there arenotaxes orsubsidies onpurchases orsales offoreign exchange".
Doesthisstatement include "thefeeof0.10percentlevied onexchange permits forimports, except
those made bygovernment departments andcertain approved institutions andindividual permits
oflessthanJD300", referred toinsection 3.3.1 (L/7533)? What relationship doesan"exchange
permit" have tothepurchase offoreign exchange?
Answer:
Thestatement iscorrect, except thatitdoesnotinclude the0.1percentwhich isanegligible
feeimposed torecover related administrative costs oftheCentral Bank ofJordan.
Thisfeeisbeing revised tonarrow thecategories oftransfers subject toit,withtheviewof
itseventual elimination.
Exchangepermitsarenolongerrequired,althoughbanksarestillrequiredtocollect0.1percent
onsome categories oftransfers forpayment totheCentral Bank.
Question 8.
Arethere anylegal limits ontheleveloffeesorother charges applied forthepurchase orsale
offoreign exchange through thedesignated traders?
Answer:
Theexchange market inJordan isfreewithregard tofeesandcharges. Themargins areleft
totraders tobedetermined through freecompetition. Nolegallimits areapplied.
Question 9.
With respect toCentral Bank forward coverage, howareprojects determined tobeofvitalnational
interest? Areprojects thataredetermined tobeofnational interest opentoforeign participation?
Answer:
Theforeign exchange regulations havebeenmodified topermit banks toexecute asset-swap
operations forallcustomers whether nationals offoreigners whohaveforeign exchange andwould
liketoswapitintoJD.Moreover, theforward saleofforeign exchange forJDispermitted inconnection
withcommodity imports.WT/ACC/JOR/8
Page7
Question 10.
Please elaborate more fully onhowJordan 'strade protocol withIraqworks. Thisagreement
appears toprovide foreither abarter and/or credit arrangement, andseems tobeanexception
toJordan 'sstated policy that"proceeds from exports andinvisibles must becollected inany
convertible currency".
Answer:
Attheoutset, itisworth noting thatexport proceeds arenotsubject toanyrepatriation
requirements.
Regarding Jordan ’sTrade Agreement withIraq,itwasfirstsigned in1980. TheAgreement
provides essentially fortheexchange ofJordanian exports withIraqioil.Until 1996, theAgreement
hadacredit arrangement component, butitstipulated thatoutstanding balances must besettled in
United States 'dollars attheendofeachyear. Thishasnottaken place, inpractice, following the
GulfCrisis in1990. Iraqnowowes Jordan theunsettled balances accumulating overthisperiod.
However, starting 1997 theAgreement doesnotprovide foracredit arrangement.
Question 11.
How doesthepermit process work forexchange permits forpersonal invisible payments? Are
corporate payments forinvisible payments alsosubject toapermit process? Howaretheexchange
permits rationed among banks, andthenbybanks totheir customers?
Answer:
Exchange permits thatusedtobeissued bytheCentral Bank ofJordan arenolonger required.
Question 12.
Inthissection, Jordan notes thatafeeof0.10percentislevied onexchange permits forinvisible
payments, asisthecaseofimports. Isthisfeetheonereferred toin3.1.6 (L/7533), orisiton
topoftheother fee,bringing itto0.20percent?
Answer:
The0.10percentfeeontransfers forinvisible payments istheonlyfee,which isthesame
feeontransfers forvisible payments. Asnoted earlier, thecategories oftransfers subject tothisfee
arebeing narrowed down withtheviewofitseventual elimination.
Question 13.
Jordan states thatafeeof0.1percentislevied onexchange permits forimports, except those
made bygovernment departments andcertain approved institutions andindividual permits of
lessthanJD300(page 16ofWT/ACC/JOR/2). Wewould appreciate more information onthe
nature ofandtheprocedures relating tothisfee,andonanyplans which theGovernment ofJordan
mayhave forthisfee.WT/ACC/JOR/8
Page8
Answer:
Thefeeislevied onexchange permits forimports andinvisible payments largely torecover
administrative costsoftheCentral Bank ofJordan. Theexchange permits aregranted automatically,
commercial banks whoexecute transfers areauthorized tocharge theirclients thefeeof0.1percent
fortheaccount oftheCentral Bank ofJordan.
(d) Foreign anddomestic investment policies
Question 14.
How istheEncouragement ofInvestment Lawtobeamended toincrease incentives toinvest?
Please elaborate onthetypes ofincentives tobeoffered. Would thisinvolve subsidizing imports
forinvestment projects?
Answer:
Theincentives comprise:
(a) increasing thescope oftheprojects thatcanbefully owned bynon-Jordanian investors in
theindustrial sector toinclude allkinds ofindustry;
(b) theLawdoesnotdifferentiate between Jordanian andnon-Jordanian investors;
(c) theLaw does notgiveanypreference toanyexport performance ordomestic content
requirements;
(d) forforeign investors thetransfer ofprofits realized onforeign capital invested inthecountry,
andtherepatriation offoreign capital invested isguaranteed bytheLaw;
(e) anyproject inindustry, agriculture, maritime transport andrailways, hospitals andhotels enjoys
thefollowing exemptions:
(i) from customs duties, import feesandanyother feesforfixed assets during the
establishment oftheproject andforexpanding ordeveloping theproject atalaterstage,
andforspare parts;
(ii) taxexemptions ranging from 25percent-75 percentfrom income andsocial taxes
based onthedevelopment areawhere theproject isestablished, foraduration often
years. Theexemptions are25percentforprojects established indevelopment areaA,
50percentforthose inareaBand75percentforareaC.Seeanswer toquestion 40
forthedetailed schedule oftheareas andthestatus oftheprojects established ineach
areaforthepurpose oftaxexemptions;
(iii) inaddition, hotels andhospitals enjoy extra exemptions from feesandtaxes ontheir
purchases offurniture andsupplies forrenewal orrenovation onceevery seven years.WT/ACC/JOR/8
Page9
Question 15.
Concerning theduty-free status ofimports ofprojects covered bytheEncouragement ofthe
Investment Law:
Please indicate thecriteria applied forprojects eligible toreceive suchstatus. Forexample, are
there anyexport performance requirements? Aretheexemptions targeted toanyspecific sectors
orindustries?
Answer:
TheInvestment Promotion Lawdoesnotdifferentiate between Jordanian andnon-Jordanian
investors andaccords them generous 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:
- fromcustoms duties, import feesandanyother feesforfixed assets during theestablishment
oftheproject andforexpanding ordeveloping theproject atalaterstage, andforspare parts;
- taxexemptions ranging from 25percent-75 percentfrom income andsocial taxes based on
thedevelopment areawhere theproject isestablished, foraduration oftenyears. The
exemptions are25percentforprojects established indevelopment areaA,50percentfor
those inareaBand75percentforareaC.Below isadetailed schedule oftheareas andthe
status oftheprojects established ineachareaforthepurposes oftaxexemptions;
- inaddition, hotels andhospitals enjoy extraexemptions fromfeesandtaxesontheirpurchases
offurniture andsupplies forrenewal orrenovation onceevery seven years
TheSchedule
Hospitals Industry Hotels
(i) TheMunicipality District
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 CWT/ACC/JOR/8
Page10
Hospitals Industry Hotels
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 C
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 shall beclassified under zoneCforthesectors ofagriculture,
sea-transport andrailways.
(iii) Theshore oftheDead Seaarea,with a5kmdepth fromthesealine, shallbeclassified under
zoneAforthehotels sectors.
Theprovisions ofparagraph (i)shallnotbeapplicable toconservatories andenvironmental
protection areas thatalready existorwillbeestablished.
Question 16.
What istheprocess fordesignation asan"approved economic project"?
Answer:
TheInvestment Promotion Lawdoesnotrequire suchacriteria forgiving investment incentives
toaproject.
Question 17.
Section II.2.(e) (WT/ACC/JOR/3) states thatnon-Jordanian investors canhave fullownership
ofenterprises in"industry".
Isthisallindustry? Ifnot,thenwhat sectors? What sectors canforeigners notholdmajority
ownership?WT/ACC/JOR/8
Page11
Answer:
Industry means allindustry. Regulation 1of1996, theRegulation forthePromotion of
non-Jordanian Investments andinArticle 5specifies thesectors inwhich anon-Jordanian canonly
ownupto50percentofanyproject oreconomic activity. These sectors are:
- landandairtransport;
- construction contracting sector;
- trading andtrade services sector;
- banking andinsurance sector;
- telecommunications sector;
- mining sector;
- agricultural products sector;
- investment inAmman Financial Market subject totheprovisions ofArticle 6ofthisregulation.
Article 6reads:
"Subject totheprovisions ofArticle 5ofthisRegulation, anon-Jordanian
investor maypurchase securities listed ontheAmman Financial Market inJordanian
currency provided thatitisconverted from aconvertible foreign currency."
Thenon-Jordanian ownership inapublic shareholding company maynotexceed 50percent,
unless thepercentage ofthenon-Jordanian ownership wasmore than50percentatthetimeofclosing
ofsubscription intheshares ofthepublic shareholding company, inwhich casethemaximum limit
fornon-Jordanian ownership shallbefixed atthatpercentage.
Inallother sectors aproject canbeowned completely byanon-Jordanian.
Question 18.
Please describe thespecific programmes contemplated insub-section (vii)ofWT/ACC/JOR/2,
which refers totaxincentives linked toinvestment andexport processes.
Answer:
Pending.
Question 19.
What sectors willbenefit from "encouraging thebanking sector tofinance needed investments"
andelimination ofthe"anti-export andanti-manufacturing bias"?
Answer:
Pending.WT/ACC/JOR/8
Page12
(e) Other policies affecting trade
Question 20.
Towhat extent does Jordan useprice controls onnatural resources, e.g.water, forusein
production?
Answer:
Price controls areusedforwater andelectricity only. Thefollowing measures havebeentaken:
(a) electricity rateshavebeenraised toensure thefinancial viability ofelectricity saleandto
rationalize theuseofenergy, taking intoaccount theneeds oflowincome groups;
(b) prices ofwater havebeenincreased toensure costrecovery ofwater andsanitation services,
while rationalising water use,taking intoaccount theneeds oflowincome groups;
(c) aprogressive tariff forirrigation water hasbeenadopted.
Question 21.
Concerning the19domestically produced goods forwhich Jordan setsdistribution margins:
How arethese requirements applied withregard toimports ofsimilar products?
Answer:
Thesame mechanism ofpricing isapplied tosimilar imported products which isamaximum
17percentmargin added tothecostoftheproduct.
Question 22.
IstheGovernment ofJordan prepared toliberalize retail prices ofagricultural products?
Answer:
TheGovernment ofJordan hasrecently liberalized prices offresh agricultural products and
poultry products andmost other products areintheprocess ofliberalization.
Question 23.
Thissection states thattheprivate sector isnowallowed toimport other previously-subsidized
items andsellthem atunsubsidized butfixed prices.
How aretheprices fixed andbywhom?
Answer:
Thecommodities whose prices arestillfixed bytheMinistry ofSupply are:milkandmilk
products, sugar, rice,redmeat, saltandfizzydrinks withre-used bottles. When fixing theprices several
consideration aretaken aftercalculating thecostoftheimported goodafterpayment ofcustoms dutiesWT/ACC/JOR/8
Page13
andgeneral salestax,handling anddistribution costsandanyother costspayed forservices rendered
likelaboratory examinations forhealth certificates, etc.plusamargin ofprofit forthewholesaler and
theretailer. Theprices arefixed byacommittee composed ofpersons from theMinistry ofSupply,
merchants 'representatives andfrom theMinistry ofAgriculture.
Question 24.
How often dothese prices change andbywhose decision andauthority?
Answer:
These prices canberevised every sixmonths ifthereisaneedtodosodepending onthechange
inthecostofthese products. Inmost ofthecases theimporters request suchachange.
Question 25.
Could Jordan provide details ofanyplans thatitmayhavetoeliminate thediscriminatory pricing
ofbread based onthenational source ofthewheat from which thebread ismade?
Answer:
Theprice ofbread wasnever based onthenational source ofwheat from which thebread is
made.
III. FRAMEWORKFORMAKINGANDENFORCINGPOLICIESAFFECTINGFOREIGN
TRADE INGOODS AND TRADE INSERVICES
1. Powers ofExecutive, Legislative andJudicial Branches ofGovernment
Question 26.
Please describe more fully theroleofcivilcourts inissues related totrade.
Answer:
Unless thelawdesignates adifferent court, civilcourts havejurisdiction inallcivilmatters
including trade.
- Jordanian courts maydecide oncases beyond theirjurisdiction ifthelitigants agree.
- Jordanian courts havejurisdiction:
- where theforeign defendant haselected domicile inJordan; and,
- where alitigant isaforeigner butthesubject matter:
- involves aproperty inJordan oraliability thathasarisen orhasbeenorto
bedischarged inJordan, or
- isrelated toabankruptcy declared inJordan.
Question 27.
Dothecourts ofappeal hearcivilorcriminal cases, orboth? Please elaborate on"thecassation".WT/ACC/JOR/8
Page14
Answer:
Judges mayhearcivilandcriminal cases, buttheprocedure applied isdifferent ineachcategory.
Courts heldforcriminal casesmaydiffer fromthose heldforcivilcasesinthenumber ofjudges forming
thecourt.
TheCourt ofCassation, incivilcases, decides onjudgments oftheCourts ofAppeal. Italso
decides onpoints oflaworprocedure ifreference totheCourt ofCassation isallowed bythepresiding
judge oftheCourt ofAppeal. Incertain cases theCourt ofCassation maydecide toreturn thecase
totheCourt ofAppeal forreconsideration. Thematters ofrightofthelitigants notobjected tobefore
theCourt ofFirstInstance ortheCourt ofAppeal cannot beraised before theCourt ofCassation.
Question 28.
Please distinguish theroleandresponsibilities ofthereligious courts incivilandcriminal cases
from theother types ofcourts inJordan, withspecial reference totheir roleinissues related to
international trade.
Answer:
Religious Courts mainly hearcases suchasthose ofmarriage, divorce, wills andlegacies.
Theyhavenojurisdiction incivilorcriminal cases orissues related totrade, international orotherwise.
Question 29.
Does theright oftheKing tooverrule acourt sentence inthecaseofcriminal cases, extend to
civilcases aswell?
Answer:
Apart from granting amnesty orpartial pardon toindividual convicts andsanctioning the
execution ofcapital punishment, theKing hasnopower tooverrule anycourt judgements, civilor
criminal.
2. Government Entities Responsible forMaking andImplementing Policies Affecting Foreign
Trade
Question 30.
Please describe inmore detail theauthority oftheKing andmembers oftheexecutive branch
toalterJordan 'strade regime (e.g.withregards tochanges intariffs, import andexport licensing,
establishment ofquantitative restrictions, etc.). Cansuchchanges bemade unilaterally, ormust
thelegislative branch ofJordan ’sGovernment beconsulted?
Answer:
Thetrade regime isgoverned bylaws. Regulations areissued bytheCouncil ofMinisters
totheextent prescribed insuchlawsandputtoforce byorders oftheKing.WT/ACC/JOR/8
Page15
Tariffs areimposed andchanged andquantitative restrictions areimplemented byresolution
oftheCouncil ofMinisters upon proposal oftheTariff Council (formed oftheMinister ofFinance,
theMinister ofIndustry andTrade andtheMinister ofSupplies).
TheCouncil ofMinisters may:
(a) upon proposal oftheMinister ofIndustry andTrade exempt certain goods fromlicensing for
export orimport;
(b) uponproposal oftheMinister ofIndustry andTrade based onrecommendation oftheauthority
concerned, restrict totally orpartially, therightofimport orexport ofcertain goods tocertain
entities; and,
(c) bantheimport orexport ofcertain goods.
TheMinister ofIndustry andTrade may, uponproposal oforcoordination withtheauthority
concerned, subject certain exports orimports toprior approval ofsuchauthority.
Suchresolutions oftheCouncil ofMinisters andtheMinister ofIndustry andTrade arepassed
without reference tothelegislative branch oftheGovernment.
(a) Please outline inmore detail Jordan 'sjudicial structure asitrelates totrade issues.
Answer:
Trade issues areheard byCivil Courts:
- Magisterial Courts (cases within aJD750limitinvalue);
- Courts ofFirst Instance (serve alsoascourts ofappeal withregard toMagisterial Court
decisions);
- Courts ofAppeal;
- Customs Court ofFirstInstance;
- Customs Court ofAppeal;
- Income TaxCourt ofAppeal;
- Court ofCassation;
- Higher Court ofJustice (concerned mainly withchallenged decisions oftheAdministration
including those oftheCouncil ofMinisters andtheregulations issued thereby).
(b) Which courts receive appeals from customs decisions?
Answer:
Customs decisions areappealed totheCustoms Court ofFirstInstance, whose judgements
maybeappealed totheCustoms Court ofAppeal andfurther totheCourt ofCassation.
(c) Which courts areauthorized toaddress issues ofintellectual property protection?
Answer:
Issues ofintellectual property protection areaddressed bythecivilCourts ofFirstInstance.WT/ACC/JOR/8
Page16
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(b) Characteristics ofNational Tariff
Question 31.
Section I.3.2.2. (WT/ACC/JOR/2) indicates thatonegoalofthese policies under theFiveYear
Planrelates torevision ofthecustoms tariff andtaxstructure toeliminate the"anti-export and
anti-manufacturing bias" inthecurrent system.
Please indicate what leveloftariff iscontemplated foreachofthefourclasses ofimports listed
insub-section I(WT/ACC/JOR/2).
Answer:
NowthatJordan applies theharmonized system (HS)oftariffs, thisclassification referred to
inthequestion isnotrelevant anymore.
Thesequence ofproducts intheHScodereflects thelevelofprocessing ofproducts. Itstarts
withrawmaterials andprimary inputs, thensemi-manufactured andmanufactured andfinalproducts.
Thetariff ratesinJordan areasfollows:
- necessary primary materials asmedicaments payzerotariff;
- industrial machinery suchasmining equipment andknitting machines payzerotariff;
- primary materials forindustry likechemicals andraw materials arepay5percentor
10percent;
- intermediate products likecloth, wood andspare parts pay30percenttariff;
- other manufactured products similar tolocalmanufactured products pay40percentsuchas
detergents, cement andelectrical equipment.
Question 32.
Please describe the"fixed criteria" contemplated fortariff revision referred toinsub-section 3
(WT/ACC/JOR/2).
Answer:
Anumber ofcharges andfeeswerelevied onimports according todifferent laws. Lately all
these charges andfeeswereconsolidated intothetariff structure. Thisstepprovides more flexibility
when achange intariffratesiswarranted without having togiveregard tootherlawswhich thesecharges
andfeeswere levied according to.
Question 33.
What percentage ofJordan 'sGovernment revenues come fromtariff revenues? What hashappened
tothisfigure under recent trade liberalization?
Answer:
Jordan ’sGovernment revenues which come from tariff revenues declined from 25percent
intheyear1992 to10percentintheyear1995.WT/ACC/JOR/8
Page17
Question 34.
Please describe howtheCustoms Law hasbeen orwillbeamended in1996, withparticular
reference totheprovisions ofWTO Agreements, e.g.,GATT 1994andtheAgreements onCustoms
Valuation andImport Licensing.
Answer:
Themain features ofthenewdraftCustoms Laware:
- theGovernment isauthorized toissue newregulations andby-laws tocomply with its
commitments resulting fromanyinternational agreement thatitisparty tooritbecomes party
toespecially WTO Agreements;
- transparency;
- procedures aresimplified.
Concerning theCustoms Valuation, thenewdraftlawdealtwiththismatter initsArticles 30,31,32,
33,34and82inaccordance withtheprovisions ofWTO Agreements.
Question 35.
What isthestatus ofthelegislative change?
Answer:
Thedraftlawisinthefinalstages oflegislative process.
(a) Please provide acopyofthenewordraft Customs LawtotheWTO Secretariat forreview
byinterested Working Party members.
Answer:
Thenewdraft Customs Lawisonlyavailable inArabic anditisnotfeasible toprovide a
translation ofthedraftlawatthisstage.
Question 36.
HasJordan submitted tariff andtrade datanecessary toconduct tariff negotiations?
Answer:
Alltheinformation ontheimport dataforlatest yearavailable, customs applied tariffs and
othernecessary dataareavailable intheSecretariat (Accessions Division, Room 1126) forconsultation.
(a) Please provide acopyofschedule ofcurrent applied tariffs andinformation onthetotality
ofimport charges andsurcharges inexcess ofthetariffs applied.
Answer:
Seeanswer toprevious question.WT/ACC/JOR/8
Page18
(b) Inaddition, wewould appreciate receiving recent import databytariff lineitemgiving
supplier countries.
Answer:
Seeanswer toprevious question.
Question 37.
Werefer totherates ofimport dutyaffecting the4,360 (oralmost twothirds ofthe6,750) tariff
lineswithtariff rates greater than20percent(page 20ofWT/ACC/JOR/2).
(a) Could Jordan provide alistoftheaverage rateofimport dutybyHSchapter?
(b) What overall ofceiling binding doesJordan intend toprovide foritstariffs upon accession
totheWTO?
(c) Does Jordan intend tobindallofitstariffs? Ifso,atwhat levels totariff onagricultural
products? Andatwhat levels oftariff onindustrial products?
Answer:
(a) Yes.
(b-c) Theceiling binding andlevels oftariffs onagriculture andindustrial products willbesubmitted
tomembers atalaterstage.
(c) Tariff quotas, tariff exemptions
Question 38.
Concerning "Duty FreeStatus":
Thissection (WT/ACC/JOR/2) listsimports thatreceive dutyfreetreatment inJordan 'strade
regime. These include, inaddition toitems withazerorateinthetariff schedule andimports
bydiplomatic, charitable, educational, andmedical institutions, (a)"protocol trade", (b)imports
bycertain Government institutions, and(c)imports under theInvestment Promotion Law.
(a) Isthislistcomprehensive?
Answer:
Allimports thatreceive dutyfreetreatment inJordan ’straderegime arementioned inthecurrent
lawunder chapter 10andarticles 159-168 from thecurrent customs law.
(b) CanJordan statecategorically thatthere arenoadditional exemptions from thecustoms
tariff ortheother taxes, fees,charges andsurcharges applied toimports?
Answer:
Seeanswer topart(a)above.WT/ACC/JOR/8
Page19
(c) Ifnot,please listallother suchexemptions authorized byJordan.
Answer:
Seeanswer topart(a)above.
Question 39.
Please describe indetail thenature, scope, andrationale ofalltariff exemptions granted from
statutory customs tariffs andthevarious taxes, fees,charges, andsurcharges applied toimports.
What portion ofJordan 'simports receive these exemptions?
Answer:
Theportion ofJordan ’simports thatreceive these exemptions wasabout 60percentofthe
totalvolume oftheimports in1996.
Question 40.
Concerning "protocol trade":
(a) Specifically, which ofJordan 'strade agreements arecovered bythisappellation, andwhat
products (byHSlineitem) areexempted from import duties andcharges under theirterms?
Answer:
Please seetheanswer toquestion 188below.
Question 41.
Please listthegovernment institutions whose imports aredutyfree. Aresuchimports solely for
theconsumption ofthegovernment entity, e.g.,aswithgovernment procurement foritsownuse?
Please describe anycases where imports bygovernment institutions granted dutyfreestatus are
usedasinputs forfurther processing bygovernment-owned andoperated production orservice
facilities andeventual resale oruseinthemarket.
Answer:
Theimportedcapitalgoodsandotherequipmentsormachineswhicharenecessaryforproduction
intheprojects ofthefollowing institutions areexempted from thecustoms duties:
I.
- Aqaba Authority Region;
- Jordanian Electricity Authority;
- Water Authority;
- Aqaba Railway Corporation;
- Vocational Training Organization;
- Amman Greater Municipality;
- Royal Jordanian Corporation;
- Villages andMunicipal Councils;
- Royal Scientific Society.WT/ACC/JOR/8
Page20
II. Imports ofthefollowing educational institutions ofmaterials, machines andequipments which
related totheeducational functions:
- Jordanian University;
- Yarmouk University;
- Jordan Science andTechnology University;
- Zarqa Public University;
- Al-AlBayt university;
- Muta’aUniversity.
These exemptions inI&IIabove donotapply tothefollowing items:
- cars;
- furniture;
- office equipment;
- spare parts;
- other consumption goods.
III. Theprocurement ofthefollowing companies areexempted fromthecustoms duties uponspecial
decisions bytheCouncil ofMinisters:
- Phosphate Mining Company;
- Petroleum Refinery Company;
- Jordan Cement Factories Company;
- Fertilizers Company;
- Arab Bridge Maritime Company;
- Arab Potash Company;
- Jordanian Electric Company;
- Irbid Governorate Electric Company;
- Jordanian Tanning Company;
- Vegetable OilFactories Company;
- Arab Company forManufacturing White Cement.
These exemptions inIIIdonotapply tothefollowing items:
- cars;
- tyres andcarspares parts;
- petroleum products;
- office equipments.
Question 42.
Could Jordan provide alistoftheagricultural products which areexempt from customs duties
andimport fees(page 21ofWT/ACC/JOR/2)? Wealsonotethatseveral agricultural products
require prior approval fromcertain government institutions. DoesJordan impose anyquantitative
limitations onimports ofthese oranyother agricultural products?
Answer:
Theagricultural products exempted from customs duties andimport feesare:WT/ACC/JOR/8
Page21
(a) wheat andflour;
(b) theagricultural products exempted under bilateral tradeagreements withArabcountries, Israel
andthePalestinian National Authority according toanagricultural calendar. Examples ofsuch
exemptions aretheagricultural goods intheagreement withLebanon:
Product Periods ofimporting
Naval oranges 1March -30April
Valencia oranges 1May-30August
Fresh sage allyear
Grapes 1October -30January
Kaka 15October -31January
Pears 18September -31December
Lemons 1May-30August
Acedenia 10April -10May
Potatoes 1September -25October
Apples 15February -30April
Fresh thyme allyear
However, there arenoquantitative restrictions onanyimports from other countries.
(d) Other duties andcharges
Question 43.
Concerning "Tariff Rates", section IV.1(b.2) (WT/ACC/JOR/2):
Thetable inthissection listsanumber ofimport taxes andtariff surcharges inaddition tothe
customs tariff. These include (a)aconsolidated surcharge tax,(b)municipalities fees,(c)university
fees,(d)additional import surcharge taxes, (e)additional import fees,and(f)feesforveterinary
andlaboratory analysis.
(a) Isthislistcomprehensive?
Answer:
Anewlawconsolidated alltheimport taxes, tariffsurcharges andthecustoms duties andbecame
partofthetariff structure.
(b) CanJordan statecategorically thatthere arenoadditional customs orimport fees,charges,
orsurcharges onimports other thanthose listed inthistable, thegeneral sales tax,and
the0.10percentexchange permit fee?WT/ACC/JOR/8
Page22
Answer:
Inaddition tothesalestaxandthe0.1percentexchange permit feethefollowing feecategories
areimposed forservices rendered:
- JD2.0tocertify theinvoices andthecertificates oforigin accompanying theimported goods
withavalue ranging between JD1,000 andlessthanJD1,000, andJD20forthose more than
JD10,000;
- JD2.0perheadofimported livestock asveterinary examination andtestfee;
- 1percentofthec.i.f. value onthere-exported goods inaddition to1percentadditional tax;
- JD25/ton ofscrap ironexcept thegalvanized iron;
- 0.2percentofthec.i.f. value onthere-exported andtheimported goods asovertime wages.
(c) Ifnot,please listallother fees, taxes, charges andsurcharges ofwhatever character
authorized byJordan onimports orexports.
Answer:
Seeanswer tosection (b)above.
Forfeesandcharges applied forservices rendered:
(d) Which, ifany, ofthese fees, taxes, charges, andsurcharges arelevied forservices
performed atthetimeofimport orexport?
Answer:
Allthese feesandcharges areapplied forservices rendered.
(e) Arethe"import fees" referred toinNo.5ofthetable considered afeeforservice? Please
listtheexemptions currently authorized from thisfeebytheCabinet.
Answer:
Inaccordance withthenewlawconsolidating other feesandcharges andcustoms duties the
import feesdonotexistanymore.
(f) Please listthefeestructure forthese services. Foreachfee,please describe thetaxable
basetowhich thefeeisapplied andindicate howthefeeisrelated tothecostofthecustoms
orother service rendered.
Answer:
Please seetheanswer tosection (b)above.WT/ACC/JOR/8
Page23
Question 44.
Please indicate specifically howthese feesareconsistent withtheprovisions ofArticle VIIIof
theGATT 1994.
Answer:
These feesandcharges areconsistent withArticle VIIIofGATT 1994forthefollowing reasons:
- allareapplied forservices rendered;
- itdoesnotrepresent anindirect protection todomestic products;
- itisnotataxforfiscal purposes.
Fortheremaining charges applied toimports andexports:
(a) Areanyofthese fees,charges, taxes andsurcharges applied todomestic goods aswell,
oraretheyallapplied exclusively toimports? Areanyapplied toexports?
Answer:
Forthose which areapplied forservices rendered itisapplied onanyproduct which theservice
hasbeenrendered towhether itisimported orexported.
(b) Please describe thetaxable baseused intheapplication ofthese non-tariff taxes, fees,
charges, andsurcharges toimports.
Answer:
Seeanswer 31.
Question 45.
Concerning theapplication ofthese charges inconjunction withtherequirements ofArticle II
oftheGATT 1994:
Answer:
These charges willnotbeapplicable anymore. Seeanswer 31.
(a) How doesJordan intend tojustify theapplication ofthese taxes onimports inlight of
WTO requirements concerning thebinding oftariff levels?
Answer:
Allthese feesandcharges havebeenconsolidated withthetariffs.
(b) What istherationale forimposing onimports a"municipalities fee"anda"university
fee"inaddition toduties andsurcharges?WT/ACC/JOR/8
Page24
Answer:
There willbenoexistence forsuchfeesandsurcharges when thenewlawconsolidating the
customs duties andother feesandtaxes inonedutybecomes effective.
(c) Please bemore specific astowhich tariff linesaresubject tothesurcharges provided for
inNo.5ofthetable, e.g.,listanyexemptions from thesurcharge taxbyHScategory
orlineitem.
Answer:
Seeanswer toquestion 41.
Question 46.
Werefer tothetabulated measures applied toimports (WT/ACC/JOR/2). Allseven types are
imposed onimports but,ofthese, onlytwo(customs duties andimport fees)would seem certain
from their description toapply exclusively toimports.
(a) Doanyoftheother fivemeasures (viz., consolidated surcharge tax,municipalities fees,
university fees,surcharge tax1969(asamended), andfeesforveterinary andlaboratory
analysis) apply todomestic products aswellasimports?
(b) Where ameasure applies todomestic products aswellasimports, wewould begrateful
fordetails ofanydifferences which mayexistbetween howthatmeasure applies toimports
andhowitapplies todomestic products.
(c) Where ameasure applies toimports butnottodomestic products, wewould begrateful
ifJordan would outline itsplans tobring thatmeasure intoconformity withtherelevant
provisions oftheWTO Agreement, inparticular Article VIIIoftheGATT 1994, and,
ifrelevant, theprovisions oftheWTO Agreement ontheApplication ofSanitary and
Phytosanitary Measures andtheWTO Agreement onTechnical Barriers toTrade.
Answer:
(a) Theother fivemeasures donotapply todomestic products. However, alladditional feesand
taxes referred toinquestion 46havebeenconsolidated intoonedutyandtheyarenowparts ofthe
customs tariff.
(b) Allthemeasures referred toarelevied onimports, andnotdirectly ondomestic products i.e.
theimported component ofalocalproduct might paysuchtaxes.
(c) Anewlawwaspassed consolidating allfeesandduties onimported products intotariff rates
which willbeinlinewiththeprovisions oftheWTO Agreement.
Question 47.
Wenote therange ofimport-related taxes listed intheMemorandum (pages 19and20of
WT/ACC/JOR/2) including, interalia:aconsolidated surcharge tax(6percent); municipalities
fees(2percent); university fees(4percent); surcharge tax1969 amended in1989 (3percent
ifcustoms dutyislevied; 5percentifcustoms dutyisnotlevied andtheitemisneither abasic
commodity noracapital good); and, import fees(5percent, except forCabinet exemptions).WT/ACC/JOR/8
Page25
Wewould appreciate details ofJordan ’splans forthese taxes inview oftheobligations itwill
assume upon accession totheWTO.
Answer:
Seeanswer toquestion 46(c) above.
(e) Quantitative import restrictions
Question 48.
Please provide copies intranslation oftheImport/Export LawNo.14of1992 andtheby-law
No.74of1993 andanyother relevant lawsorregulations amending these provisions todateto
theWTO Secretariat forreview bytheWorking Party.
Answer:
There arenocopies ofthese lawsinEnglish.
Question 49.
Concerning "Prohibitions", section III.(e.3) (WT/ACC/JOR/3):
Thissection listsprohibited imports, noting thatquantitative restraints areinplace formineral
water, table salt,plastic wastes andusedcars.
Please indicate whyJordan bans theimportation oftomato paste, fresh milkandcertain dairy
products, inaddition totheother products listed inthissection. What ismeant by“social reasons
connected withthesectors involved intheir production ”.
Answer:
Thebanontomato pasteandfreshmilkhasbeenlifted, andtheycanbeimported bytheprivate
sector without prior approval andwithout anylimitation onquantities orkinds.
There isatotalbanontheimport oftablesalt,usedcars, mineral water andplastic wastes.
Table saltisproduced inareas which areleastdeveloped inJordan andpeople haveahighrateof
unemployment andthatiswhatmeant by"social reasons connected withthesectors involved intheir
production".
Asformineral water, theGovernment isstudying thepossibility oflifting thebanonimports
ofmineral water.
Asforusedcarsmore thanfiveyears old,thebanisforanumber ofreasons. Firsttolimit
trade inusedcarandtheiruseastheyareadrain onforeign exchange reserves because ofneedfor
imports ofspare parts andtires. Thesecond reason isagreat number ofthese carswere 10years
oldandmore andtheylackalotofthesafety options which newcarsnowhave. Thirdly theyare
more harmful toenvironment. Most ofthecarsinJordan havethesafety options. TheGovernment
offered theowners ofoldcarsusedforpublic transport liketaxisandservice carsexemption from
customs duties onthenewcarstheybuyprovided theygiveuptheiroldcars. Thisencouraged the
owners ofsucholdcarstogetridofthem. There arenoother products prohibited thantheonesWT/ACC/JOR/8
Page26
mentioned above. There areconditions forprior approval, andtheimport andexport ofalimited
number ofproducts arerestricted tocertain agencies Seeanswer toquestion 78.
Question 50.
What isthespecific nature ofthequantitative restraints onthese products andhowarethey
enforced?
Answer:
Therestrictions arenotquantitative.
Question 51.
Concerning thedefacto banonimported carsmore thanfiveyears oldforsafety reasons, please
describe inmore detail thesafety justification forbanning imported carsolder thanfiveyears.
Dothese safety restrictions extend todomestically-owned carsolder thanfiveyears thataresold
ontheJordanian market?
Answer:
Seeanswer toquestion 47above.
Question 52.
Arethere anyother products thatarebanned?
Answer:
There arenoother products thatarebanned.
Question 53.
How would Jordan justify these bans inlightofWTO disciplines?
Answer:
These banswereineffect before Jordan applied foraccession toWTO. Since thenanumber
ofbanshavebeenlifted asshown inanswer toquestion 47above. Theprocess ofliberalization is
moving andwithtimethefewbansareexpected toberemoved.
Question 54.
Jordan states thatonlyalimited number ofquantitative import restrictions havebeenmaintained
onmineral water andtable saltfor“...social reasons connected withthesectors involved intheir
production... ”(page 19ofWT/ACC/JOR/2). However, aspects ofsub-section 3.2.2 (pages 21
and22)imply thatquantitative restrictions arealsoapplied tocertain other commodities (sugar,
wheat, rice,onebrand ofpowdered milkandcigarettes plusseasonal restrictions onfruits and
vegetables). Could Jordan provide afulllistoftheproducts which areaffected byquantitative
import restrictions andexplain thenature ofandthereason forhaving therestriction thatapplies
toeachproduct?WT/ACC/JOR/8
Page27
Answer:
Quantitative restrictions stillapply tomineral water, tablesalt,carsthatarefiveyears oldor
more, andplastic wastes. Theotheritems likesugar, wheat rice,onebrand ofpowdered milk, cigarettes
needprior approval butthere arenoquantitative restrictions ontheirimport. Fruits andvegetables
imported fromArabcountries withwhom Jordan hasbilateral andprotocol tradeagreements aresubject
toseasonal restrictions based ontheagreements referred toabove. Suchrestrictions aremeant toprevent
excess supplies intheproduction season inJordan andintheother countries.
(f) Import licensing procedures
Question 55.
Jordan should provide information onproducts subject toimport licensing responding totheoutline
andquestionnaire contained inWT/ACC/1 forreview bythenextWorking Party meeting. In
particular, wewould appreciate aunified treatment ofJordan 'sregime including therelevant
information insections 3.2.2.1 through 3.2.2.4 (WT/ACC/JOR/2).
Answer:
Seetherevised Memorandum onForeign Trade (WT/ACC/JOR/3).
Question 56.
Jordan refers totheexemptions from "import fees" (section II.2.(d), WT/ACC/JOR/3) bysome
categories ofimports.
(a) What istherelationship ofthese import feeexemptions tothelicensing requirements listed
inthissection?
Answer:
There isnorelationship between theexemption fromimport feesandthelicensing requirements.
Thelicensing requirements asexplained earlier apply tocertain products thatneedprior approval, or
whose export isexclusively restricted tocertain departments andgoods thatarelisted inprotocol trade
agreements between Jordan andother countries.
(b) Arethefeesreferred toassociated withobtaining alicence? Ifso,please describe the
feestructure andscope ofapplication, withparticular reference totheprovisions ofthe
WTO Agreement onImport Licensing Procedures andArticle VIIIoftheGATT 1994.
Answer:
Ifaproduct requires animport licence, thenafeeequal to5percentofthevalue oftheimported
good willbepaid. Anadditional feeequal to5percentofthevalue ofanimported good islevied
onpersons oragencies thatimport goods without holding animport cardtoprove theyareregistered
intheimporters registrar intheMinistry ofIndustry andTrade.
However, allfeesother thancustoms duties havebeenconsolidated intothecustoms duties
according tothenewLawforconsolidating customs duties, other feesandtaxes. TheLawwaspassed
through Parliament recently. Thiswillbring these feesintotherequirements ofArticle VIIIof
GATT 1994.WT/ACC/JOR/8
Page28
(c) Jordan states thatimport licences arerequired forprotocol trade andforgoods thatneed
prior approval from specialized agencies.
Concerning protocol trade, please describe howthelicences issued, bywhom, andthe
conditions thatmust bemettoobtain thelicence.
Answer:
Goods imported under protocol trade agreements needimport licences which areissued as
follows:
Thelicence isusually issued bytheMinistry ofIndustry andTrade. Iftheproduct needs prior
approval, thenthisapproval havetobeobtained fromthedepartment oragency concerned. Ingeneral
theissuing oflicences issubject totheconditions stipulated insuchagreements.
Question 57.
Insection3.1.6(WT/ACC/JOR/2),Jordanstatedthat"generally,importsdonotrequirealicence."
Weappreciate theoutline provided byJordan onitslicensing system insection 3.2.2.1. Weneed
much more information, however.
Answer:
Therequirement forimport licence foraproduct isnotbased ontheHSconsiderations, but
onthefollowing:
- persons oragencies thatdonotholdanimport cardthatallows them toimport ingeneral are
required toobtain animport licence;
- imports fromprotocol tradeagreements countries needanimport licence forproducts thatare
specified inlistsattached tosuchagreements, andenjoy fullorpartial exemptions fromcustoms
duties aresubject tolicensing requirements. Imports outside suchlistsdoneedlicences.
Question 58.
Weseekalisting byHSnumber ofitems thatrequire suchpermits, theWTO justification for
thismeasure, thecriteria (ifany)applied todetermine whether alicence isissued ornot,and
thelevels ofanyquotas thatareadministered through thelicensing system.
Answer:
Seeanswer toquestions 54,55and188.
Question 59.
How arethelicensing requirements forspecific imports areestablished, e.g.,howisthelistof
licensed imports determined? Who hastheability tochange itandwithwhat kind ofpublic
notification? How aresuchlistspublicly distributed?WT/ACC/JOR/8
Page29
Answer:
Licensing requirements forimports andinstructions forimports ingeneral areauthorized by
theMinister ofIndustry andTrade inaccordance withimport/export lawsandby-laws. Heisalso
authorized tospecify thegoods andagencies ordepartments thatneedimport licences oranyspecific
import requirements byissuing instructions tothateffect. Such decisions aretaken incoordination
withother ministries andofficial agencies andinlinewiththegovernment general tradeandeconomic
policy. Instructions arepublished inlocal newspapers andaresenttoChamber ofCommerce and
Chamber ofIndustry sotheycancirculate them totheirmembers.
Question 60.
Does Jordan consider anyofthese requirements "automatic" licence requirements? Ifso,please
describe howthisisthecasewithreference totheprovisions oftheWTO Agreement onImport
Licensing Procedures.
Answer:
Allimportlicensingrequirementsareclearlydefinedintheimportinstructionsthatarepublished
inlocalnewspapers andcirculated toChambers ofCommerce andIndustry andtoanyagency concerned
withtrade. Granting alicence aftersubmission oftherequest takes about halfanhourintheMinistry
ofIndustry andTrade.
Question 61.
Please describe specifically theprocedures forobtaining animport licence, including, butnot
limited to,information onthefollowing points:
(a) How isapproval from concerned government entities required? How quickly issuch
approval gained? How many approvals arenecessary foraparticular good?
(b) How istheprior approval partoftheprocedures isadministered. How dothespecific
agencies interact withthelicence-granting authority oftheJordanian Government?
Answer:
Procedures forobtaining animport licence
When there isaneedforprior approval fromtheministry oragency concerned thefollowing
measures aretobefollowed:
1. Theimporter getstheapproval fromtheagency concerned foraparticular product inthesame
dayhesubmits hisrequest forapproval. Iftheproduct needs approval fromtwoagencies, oneofthem
issues theapproval aftercoordinating withtheother agencies asspecified intheimport instructions.
2. Theagencies authorized togive prior approvals inform theMinistry ofIndustry and
Trade/Directorate ofTrade, ofanychanges ofliststhatneedpriorapproval andthereasons fordoing
so.IftheMinister ofIndustry andTrade isconvinced ofthereasons andthattheyareinlinewith
thegeneral trade policies thenheissues anorder toamend theimport instructions.WT/ACC/JOR/8
Page30
3. Incaseofprior approval toimport from anycountry other thanprotocol trade countries the
priorapproval isconsidered animport licence byitself. Asforpriorapproval toimport fromaprotocol
trade country thefollowing measures arerequired toobtain animport licence:
- theimporter mustsubmit totheMinistry ofIndustry andTrade anapplication toimport that
includes thefollowing information: Name ofimporter, hisregistration number intheimporters
Registrar attheMinistry ofIndustry andTrade ,kindofproduct imported, H.S.code, country
oforigin, portofshipment, portofclearance, value inJordan dinar C&F, quantity orweight
ofproducts. Theapplication form must besigned bytheimporter orhisauthorized
representative;
- thisapplication ischecked andthenapproved bytheofficer incharge attheDirectorate of
Trade intheMinistry ofIndustry andTrade inaccordance with theimport instructions;
- theimport feeisthencharged ifitissubject tosuchafee;
- information included intheapplication isentered intocomputer andthelicence isissued
accordingly;
- theimport licence ischecked again inrelation toinformation intheapplication andthensigned
bytheauthorized official andgiven byhandtotheimporter;
- allthese measures takeabout halfanhourtocomplete.
Question 62.
What istherelationship between imports requiring anexchange permit andgoods requiring an
import licence?
Answer:
Therelationship between animport licence andexchange permits isasfollows:
Theletterofcreditandtheissuanceofanexchangepermitisdonewhenthefollowingdocuments
areprovided:
- animport licence iftheproduct requires suchalicence or;
- theimporter ’scardissued bytheMinistry ofIndustry andTrade when theimported products
donotneedanimport licence;
- priorapproval andtheimporter ’scardforproducts thatneedpriorapproval butnotanimport
licence.
Theopeningofaletterofcreditisdonethroughanycommercialbankthatusuallyhavetheadministrative
instructions forthat,andtheexchange permit isissued immediately bytheCentral Bank.
Question 63.
While theWTO justification forarequirement thatthePublic Security Agency togrant prior
approval forexplosives, chemicals andself-defence electrical equipment iseasily understood, this
isnotthecaseformany oftheother products listed inthissection.WT/ACC/JOR/8
Page31
Why areimports oftoyautomobiles, electrical andelectronic video games alsorequired tohave
prior approval from thePublic Security Department? Why docommercial goods inthislistneed
prior approval?
Answer:
Toyautomobiles thatareoperated bybenzine orbatteries needspecial tracks fordriving them.
Suchspecial tracks arenotreadily available inJordan. Therefore, theneedforpriorapproval tomonitor
theirimport andensure thesafety oftheusers whoarechildren andnotqualified drivers.
Asforelectric andelectronic video games there aresocial considerations thatgovern theuse
ofsuchmachines. These machines which areinstalled inpublic places thatarefrequented mainly by
children andteenagers could ifnotproperly supervized, beusedforgambling activities. Inamuslim
country likeJordan thisisagainst themorals andnorms ofthesociety. Therefore, prior approval is
required toensure thatsuchmachines areusedinamanner thatdoesnotendanger thesocial fabric
ofthesociety.
Thedifferent chemical materials donotneedprior approval buttheyaretobechecked bythe
departments concerned when suchmaterials enter thecountry, andtobecleared onlyifthegeneral
safety conditions aremet.
Other commercial products likerice,wheat, sugar, aresubject toprior approval because of
foodsecurityconsiderationtoensureastrategicreserveofthesecommodities.Asforindustrialpowdered
milkitistobeusedforchocolate andbiscuits factories andnotformixing withfresh milktomake
dairy products likeyoghurt, cheese, etc.
Question 64.
Jordan must eliminate licensing thatrestricts agricultural imports atthetimeofaccession. Please
address thisfactinterms ofJordan 'sexisting licensing requirements andexplain howtheMinistry
ofSupply andtheAgricultural Marketing Organization determines import quantities ofthese
products.
Answer:
There arenorestrictions onimports ofagricultural products. Butthereisanagenda published
bytheAgricultural Marketing Organization thatspecifies thetimeofimports ofagricultural products
from countries withwhom Jordan hasprotocol trade agreements, andsuchimports needanimport
licence. Exports ofagricultural products fromJordan tothese countries aresubject tosimilar agenda.
Question 65.
Itwould appear thatanumber oftheimport licensing provisions currently inplace arenot
consistent withWTO provisions. Insuchcases, howdoesJordan intend toproceed tocomply
withWTO requirements?
Answer:
Import licensing procedures inJordan aretransparent andinformation ispublic. SeeAnnex 3
oftherevised Memorandum ontheForeign Trade Regime ofJordan (WT/ACC/JOR/3).WT/ACC/JOR/8
Page32
Question 66.
Please specify bymeasure andproduct coverage, which products require import approval and/or
import licences. Please provide specific justification forsuchapprovals. What isJordan ’stime
frame forthe“liberalization ”oftheimports ofallagricultural products?
Answer:
There arenow43items thatrequire prior approval forimport. Ofthese, 12areagricultural
products. They are:rice,onebrand ofmilkpacked fortheMinistry ofSupply, wheat andwheat flour,
sugar, barley, corn, frozen animal semen, liveanimals, chilled andfrozen meat, potatoes, onion and
garlic. Priorapprovals areconsidered import licences inthemselves. Certain products, thatareannexed
tobilateral andprotocol agreements between Jordan andothercountries andhavepreferential treatment,
require animport licence. There arepreferential trade agreements withSyria, Saudi Arabia, Yemen,
Libya, Sudan, Kuwait, Oman, theUnited ArabEmirates, Lebanon, Iraq,Bahrain, Morocco, Tunisia,
thePalestinian National Authority, Egypt andIsrael.
Theproduct coverage inthese annexes varies from onecountry toanother. Thetreatment
isreciprocal between Jordan andsuchtradepartners. However, Jordan isnowchanging tofree-trade
areaagreements andinduetime these preferences willcease toexist.
Question 67.
Concerning Ministry ofSupply permission (section III.2.2.2, WT/ACC/JOR/2):
This report states that while 66foodstuffs require permission, "permissions aregranted
automatically". Why doesthissystem continue toexist? How willthisbeeliminated?
Answer:
Thefoodproducts thatneedpermission from theMinistry ofSupply nowareactually only
fiveproducts. These products arerice,Halibuna powdered milkandmilkforindustrial use,wheat
andwheat flour, sugar andcigarettes. Theprocess ofelimination ismoving fast.
Question 68.
Could Jordan provide afulllistofalltheproducts, including agricultural products, which are
subject tolicensing andprovide details ofthelicensing requirements which apply toeachofthose
products? Wewould begrateful ifsuchdetails included anindication ofwhether these licences
aregranted automatically.
Answer:
Imports toJordan fromcountries withwhom Jordan hasbilateral andprotocol tradeagreements
namely some Arab countries, Israel andthePalestinian National Authority, andexports fromJordan
tothesecountriesaresubjecttolicensingrequirements.Licencesaregrantedautomatically.SeeAnnex3
page61(WT/ACC/JOR/3). Some other products require priorapprovals toimports. Prior approvals
areconsidered import licences inthemselves seepage29(WT/ACC/JOR/3).WT/ACC/JOR/8
Page33
Question 69.
Foreach oftheproducts forwhich import licences arenotgranted automatically, wewould
appreciate details of:
(a) theadministrative procedures required toobtain prior approvals/import licences;
(b) theamount oftimeforapproval tobegiven; and,
(c) thefeespayable forprior approval andtheir form (flat-rate orpercentage).
Answer:
(a) Seepages 29and61of(WT/ACC/JOR/3).
(b) Forprior approval about oneday,forimport licensing around halfanhour.
(c) Nofeesarerequired forprior approvals. Imports offruits andvegetables from protocol
countries payoneJordan dinar foreachonemetric ton.
Question 70.
Inrespect ofprocedures forgaining prior approval forimportation (page 21ofWT/ACC/JOR/2).
(a) Doanyquantitative limitations apply?
(b) Areapplications forimport licences approved automatically?
(c) Arethere anyappeal procedures, and,ifso,howdotheyoperate?
(d) What arethecosts which areinvolved inobtaining animport licence?
Answer:
(a) No.
(b) Yes.
(c) When arequest isrefused, thereasons arespecified forsuchrefusal. Iftheperson whose
request wasrefused wishes toappeal hecandosoeither tothose whorefused hisrequest ortothe
Courts ofLaw.
(d) Afeeof5percentofthevalue oftheimported product, which isnowconsolidated intothe
tariff.
(h) Customs valuation
Question 71.
Thedescription ofJordan 'scustoms valuation regime contained inthissection istotally inadequate
fortheaccession negotiation. Forreview atthenextWorking Party meeting:
(a) JordanshoulddescribespecificallytherulesandguidelinesusedbytheCustomsDepartment
tovalue imports, andprovide acopy ofitscustoms valuation lawandregulations in
translation.WT/ACC/JOR/8
Page34
Answer:
Articles 39,40,41,78,79,80and81ofthecurrent lawandtheregulations andby-laws issued
inaccordance tothatlawexplains Jordan ’svaluation regime.
Thenewdraftlawinitsarticles 30,31,32,33,34and82dealtwiththevaluation inaway
thattheregime isconsistent withtheWTO Customs Valuation Agreement. Please seeAnnex 4,
Information onImplementation andAdministration oftheCustoms Valuation Agreement, totherevised
Memorandum ontheForeign Trade Regime ofJordan (WT/ACC/JOR/3) which isreproduced atthe
endofthisdocument.
(b) Jordan should complete thequestionnaire inAnnex 4ofWT/ACC/1 onimplementation
ofWTO customs valuation provisions.
Answer:
Thecompleted questionnaire isreproduced attheendofthisdocument.
Question 72.
Could Jordan provide details ofitslaws, regulations andprocedures inthearea ofcustoms
valuation relating totheprovisions ofArticle VIIofGATT 1994 andtheAgreement on
Implementation ofArticle VII? Wewould appreciate acopy ofJordan ’slawsandregulations
intheareaofcustoms valuation.
Answer:
TheCustoms Lawisavailable inEnglish intheWTO Secretariat. However, oncethenew
Customs Lawpasses through Parliament andhasbeentranslated intoEnglish, wewillprovide theWTO
Secretariat withacopy. ThenewCustoms Lawisinconformity withWTO Agreement.
(l) Rules oforigin
Question 73.
Please provide copies ofJordan 'slawsandregulations concerning theapplication ofrulesoforigin.
Answer:
There arenospecific lawsandregulations inJordan forapplication ofrules oforigin.
Question 74.
What rulesoforigin areusedtoidentify "protocol imports" subject totariff andother preferences?
Answer:
Theconditions forsuchrules willbeidentified ineachagreement.WT/ACC/JOR/8
Page35
Question 75.
What institutions areconsidered tobe"approved authorities" forthepurpose ofissuing certificates
oforigin?
Answer:
TheChamber ofIndustry istheapproved authority forissuing certificates oforigin which have
tobecertified from theMinistry ofIndustry andTrade.
Question 76.
Please indicate howJordan intends tobring itsrules oforigin intoconformity withtheprovisions
oftheWTO Agreement?
Answer:
Jordandoesnothavelegislationoutliningtherulesoforigin.Jordanplanstointroducelegislation
thatconforms withWTO requirements, oncetheharmonization oftherules oforigin ofdifferent
countries areagreed upon within theWTO.
Question 77.
Could Jordan provide details ofitslaws, regulations andprocedures intheareaofrules oforigin?
What timeframe doesJordan envisage forthedevelopment andimplementation ofstandards
intheareaofrules oforigin?
Answer:
There arenospecific lawsandregulations concerning theapplication ofrules oforigin. In
practice therulesapplied depend onthebilateral agreement witheachcountry. TheChamber ofIndustry
istheApproved Authority forthepurpose ofissuing certificates oforigin.
TheChamber ofIndustry issues acertificate oforigin foralicensed factory, andtheIndustrial
Development Directorate intheMinistry ofIndustry andTrade checks thecertificate: whether the
factory exists, whether theproduct isproduced inthefactory, andwhether thelocal manufacturing
percentage complies withthepercentage agreed upon bythebilateral agreement.
Therules oforigin usedtoidentify Protocol Imports forthepurpose ofissuing certificates
oforigin depends onthebilateral agreement witheachcountry. Jordan intends tobring itsrules of
origin intoconformity withtheprovision oftheWTO Agreement oncetherules oforigin within the
WTO Agreement arecoordinated andagreed upon.
(m) Anti-dumping regime
Question 78.
Could Jordan provide details ofanylaws, policies andpractices which itmayhave, orwhich
itintends tointroduce, inthefollowing areas: anti-dumping andcountervailing duties;
countervailing measures; andsafeguards (GATT Articles VIIandXIX)? Could Jordan provide
acopy ofanylawsandregulations which itmayhave inthese areas?WT/ACC/JOR/8
Page36
Answer:
Article 16ofthecurrent Customs Lawpartially dealswithanti-dumping, countervailing duties,
countervailing measures andsafeguards. However, Jordan isintheprocess ofpreparing newlaws
onsafeguards andcompetition.
2. Export Regulation
(b) Customs tariff nomenclature, types ofduties, dutyrates, weighted averages ofrates
Question 79.
Could Jordan provide details ofanyplans thatitmayhavetobring itsexport taxes intoconformity
withArticle VIIIoftheGATT 1994?
Answer:
InfactJordan doesnothaveanyexport taxes. Theonlyexport feescharged arethose connected
withprotocol trade.
(d) Export licensing procedures
Question 80.
Jordan hasstated thatdomestic exports donotrequire export licences.
(a) Please describe anyexport licensing measures inplace inJordan andtheconditions that
Jordan mayusesuchmeasures inthefuture.
Answer:
1. Products ofJordanian origin donotneedexport licences. Butanyproduct offoreign origin
(re-exports) withavalue thatexceeds JD1,000 require anexport licence. Products exported toprotocol
trade countries withavalue exceeding JD1,000 alsorequire export licence irrespective oforigin i.e.
Jordanian orforeign origin. Some products needpriorapproval before exporting them. These approvals
areconsidered export licences inthemselves.
2. Asforlicensing requirements thefollowing stepsaretobecompleted before actual export can
takeplace:
- theexporter issues aninvoice totheimporter andcertifies suchaninvoice fromtheChamber
ofCommerce;
- aCertificate ofOrigin must alsobeissued from theChamber ofCommerce;
- thesedocuments havealsotobecertified fromtheMinistry ofIndustry andTrade, theMinistry
ofForeign Affairs andfromtheEmbassy ofthecountry towhich theseproducts areexported;
- then, getanexport licence ifsuchalicence isrequired afterperforming above;
- anexportmanifestationfromtheCustomsOfficepriortoexportingtheproductfromthecustoms
exitpoint chosen bytheexporter;WT/ACC/JOR/8
Page37
- asmentioned above some exports needprior approvals fromcertain departments, andexport
ofsome products arerestricted tocertain departments.
Prior approvals from theMinistry ofSupply:
- basic foodproducts:
- wheat;
- wheat flour andother wheat products: (semolina, bran, broken wheat);
- sugar;
- rice(ordinary brand);
- Halibuna (milk);
- milkforindustrial use.
Prior approvals from Ministry ofAgriculture:
- ewes andcows.
Prior approvals from Central Bank ofJordan:
- precious metals including goldandsilver bullion andcoins.
Prior approvals from Natural Resources Authority:
- marble slabs;
- broken marble;
- mineral ores;
- radioactive materials andsources andexhausted uranium.
Prior approvals from Agricultural Marketing Organization:
- fresh fruits andvegetables destined toprotocol trade countries;
- therearesomeproductsthatareexclusivelyexportedbythefollowingdepartmentsandagencies.
Product Exclusive Exporters:
- realleather (manufactured natural) Jordan Tanning Company
- petroleum andpetroleum products
except mineral oils Jordan Petroleum Refinery Company
- household gascylinders Jordan Petroleum Refinery Company
- black cement Jordan Cement Factories Company
- gunpowder, explosives and
explosives detonators Jordan Phosphates Mining Company (JPMC)
- ammonium nitrate (JPMC)
- phosphate ores (JPMC)WT/ACC/JOR/8
Page38
(f) Export financing, subsidy andpromotion policies
Question 81.
Insection a.2.1 (WT/ACC/JOR/2) Jordan referred to"support" provided tothemanufacturing
export sector, tosubsidies toindustries, andtoplans togradually reduce suchprogrammes.
Areallindustries inJordan stilleligible toreceive subsidies? Ifnot,please indicate theindustries
thatareeligible.
Answer:
Notallindustries inJordan areeligible toreceive subsidies. Theonlysubsidies provided are
interest ratesubsidies bytheCentral Bank ofJordan. They areattheorder of1percentonlyand
provided toexporters, agriculture, andhandicrafts sectors.
Question 82.
Please listandexplain eachsubsidy forcommodities andenterprises, noting those thatwillbe
gradually reduced under theFiveYear Plan, and,forpublic institutions, completely eliminated.
What isthetimetable forthereduction andelimination ofthese subsidies?
Answer:
Seeanswer toquestion 79above.
Question 83.
Please explain infurther detail thesystem whereby theCentral Bank ofJordan provides advances
toauthorized banks against export credits andbillsforproducts where local value added isnot
lessthan25percent, including butnotlimited toreplies tothefollowing questions:
- Which banks are"authorized"?
- Which companies/products areeligible toreceive export credits?
- Arethese purely commercial transactions withnogovernment interference ordoesthe
government subsidize export credits?
- What requirements dothebanks have forrepaying thecredits?
- Areforeign-owned banks eligible toreceive theadvances?
- Explain howproviding these below-market rateadvances tobanks forexport credits is
consistent withtheWTO subsidies Agreement?
- Areexports ofJordanian origin produced asaresult offoreign investment subject tothese
restrictions aswell?WT/ACC/JOR/8
Page39
Answer:
TheCentral Bank ofJordan provides advances toauthorized banks against export letters of
credit andbillsforcollection forproducts ofatleast25percentlocalvalue added. Themainfeatures
ofthisprogramme maybedescribed asfollows:
- allbanks licensed tooperate inJordan are“authorized ”toobtain advances from theCentral
BankofJordanexportrefinancingfacility.Therefinancingmaybeobtainedbybanksonaccount
ofanycompany operating inJordan thatitsexports meet theabove mentioned 25percent
localvalue-added criterion. Thiscriterion applies toallexport products;
- thetransaction between thecompany andthecommercial bankisapurecommercial transaction,
without anyinterference byCentral Bank ofJordan;
- thebanks require theirclients tohaveeither avalid export letter ofcredit orvalid billsfor
collection ortimedrafts, given thatthesedocuments areendorsed totheorder ofthecommercial
bank;
- foreign-owned banks licensed tooperate inJordan arealsoeligible toreceive suchadvances;
- exports ofJordanian origin produced asaresult offoreign investment aresubject tothesesame
requirements aswell. Theonlyrestrictions isthe25percentcontent andtheofficial registration
ofthatcompany intheJordanian Official Registry.
TheCentralBankofJordanchargesinterestrateonrefinancingofexportcreditwhichiscurrently
only1percentbelow theprevailing discount rate. Thissmall subsidy constitutes onlyafraction of
thecostof1.0percentoftotalexports. Themore important objective oftheexport refinancing facility
istoencourage banks tomeetdemand forcredit byexporters.
Question 84.
Please explain howlongtheexport promotion programme oftheCentral Bank ofJordan has
been inplace.
Answer:
Theexport promotion programme oftheCentral Bank ofJordan hasbeeninplace since 1980.
Question 85.
Whichproducts-intermsofcommodity-specificvolumesandvalues-havebeensubsidizedthrough
these schemes ineachoftheyears thecredits have been available?
Answer:
Commodities thatbenefited from thescheme
(JDmillions)
Commodities 1993 1994 1995 1996
Pharmaceuticals 5.3 7.5 8.7 8.3
Fabrics 1.3 - -WT/ACC/JOR/8
Page40
Commodities 1993 1994 1995 1996
Clothing 1.5 1.0 0.6 0.2
Iron 0.2 0.3 0.09 0.8
Paints 0.02 0.2 0.3 0.2
Agricultural Products 0.4 0.02 0.02 -
Oils 2.6 - - -
Plastics 0.2 - - -
Phosphates - - - 5.0
Stationary 0.9 1.1 -
Potash - 27.2 -
Other 0.38 1.28 0.09 0.2
Total 12.8 38.6 9.8 14.7
Please note details arenotavailable fortheperiod prior to1993, nevertheless, total values are
much smaller.
Question 86.
Which firms areeligible toreceive suppliers credits? Forimports ofwhich goods?
Answer:
Seeanswer toquestion 83above.
Question 87.
Please explain howtheexemption ofincome taxonexport sales isconsistent withtheprovisions
oftheWTO Agreement onSubsidies andCountervailing Measures, inparticular paragraph (e)
ofAnnex I?
Answer:
After theGulfwar,Jordan ’sexports inparticular andtheeconomy ingeneral suffered agreat
dealforbeing dependent onthese markets. TheGovernment tookadecision asearly as1993 to
encourage Jordanian producers todiversify theirproducts andtolookfornewnon-traditional markets.
Thiswasdone through theexemption oftheprofits ofexports, excluding traditional onesnamely
phosphate, potash andfertilizers andexcluding Arab countries withwhom Jordan hasprotocol trade
agreements from income tax.
Itisworth mentioning that45percentofJordan ’sexports aredestined toArabcountries with
whom Jordan hasbilateral andprotocol trade agreements andtheirexport proceeds arenoteligible
forincome taxexemption. Thenon-traditional exports referred toabove constitute around 37percent
oftotaldomestic exports. Article 27.2, paragraph (b)oftheAgreement onSubsidies andCountervailing
Measures allows suchsubsidies todeveloping countries foraperiod ofeight years.WT/ACC/JOR/8
Page41
Question 88.
HowdoesthenewIncome TaxLaw, No.14of1995, address theissue ofexempting income from
export activity from taxation?
Answer:
Article 3(c)oftheIncome TaxLawNo.57of1985anditssuccessive amendments ofwhich
LawNo.14of1995 wasthelast,states that:
"The profits resulting from export salesareconsidered tohaveaccrued intheKingdom, and
theCouncil ofMinisters, upon recommendation oftheMinister, hastheright toexempt totally or
partially theprofits ofsome exports.".
According tothisArticle, theCouncil ofMinisters issued in1994adirective toexempt from
income taxprofits resulting fromexport. Theprofits fromexports ofphosphates, potash andchemical
industries,aswellasprofitsfromexportstocountriesthatareexecutedthroughprotocoltradeagreements
arenotexempted from income taxunder thisdirective.
Question 89.
WenoteJordan ’sdescription ofasubsidy contingent upon export (under 3.3.4 onpage 24of
WT/ACC/JOR/2). Does Jordan intend tophase outthissubsidy?
Answer:
After theGulfwar,Jordan ’sexports inparticular andtheeconomy ingeneral suffered agreat
dealforbeing dependent onthese markets. TheGovernment tookadecision asearly as1993 to
encourage Jordanian producers todiversify theirproducts andtolookfornewnon-traditional markets.
Thiswasdone through theexemption oftheprofits ofexports, excluding traditional onesnamely
phosphate, potash andfertilizers andexcluding Arab countries withwhom Jordan hasprotocol trade
agreements.
Itisworth mentioning that45percentofJordan ’sexports aredestined toArabcountries with
whom Jordan hasbilateral andprotocol trade agreements andtheirexport proceeds arenoteligible
forincome taxexemption. Thenon-traditional exports referred toabove constitute around 37percent
oftotaldomestic exports. Article 27.2, paragraph (b)oftheAgreement onSubsidies andCountervailing
Measures allows suchsubsidies todeveloping countries foraperiod ofeight years.
(g) Export performance requirements
Question 90.
Does theAgricultural Marketing Organization (page 33ofWT/ACC/JOR/2) provide support
contingent onexport performance?
Answer:
TheAgricultural Marketing Organization doesnotprovide anysupport toproducers anddoes
notengage inactual exporting orimporting activities. Itsmain function istoregulate theexport andWT/ACC/JOR/8
Page42
import ofagricultural products toandfromArabcountries withwhom Jordan hasbilateral andprotocol
trade agreements according toayearly planandaquarterly agenda.
3. Internal Policies Affecting Foreign Trade inGoods
(b) Technical regulations andstandards
Question 91.
When willJordan beprepared toassume theresponsibilities oftheTBT andSPSAgreements?
What typeoflegislation willthisrequire?
Answer:
Jordan willassume itsresponsibilities onTBTandSPSAgreements assoonasitfinds itself
inaposition todoso.
Question 92.
Jordan should provide information onitsstandards andSPSregime outlined inWT/ACC/1 and
copies oftherelevant legislation thatprovides fortheapplication ofTBT andSPSrequirements
onimports.
Answer:
SeeAnnex 5onInformation onTechnical Barriers toTrade asitappears intherevised
Memorandum onJordan ’sForeign Trade Regime (WT/ACC/JOR/3).
Question 93.
Areforeign producers required tomeet ahigher technical standard thanaJordanian producer?
Answer:
No,theyarenotrequired todoso.
(c) Sanitary andphytosanitary measures
Question 94.
IsJordan amember oftheCodex Alimentarius Commission (CODEX) ortheInternational Plant
Protection Convention (IPPC)? Ifnot,doesitplantojoinsoon? Also, howdoJordan 'sstandards
forsanitary andphytosanitary measures differ from international standards established bythose
organizations?
Answer:
Jordan isamember oftheCodex Alimentarius Commission, butnotamember ofthe
International Plant Protection Convention. However, Jordan adopts andimplements thestandards of
bothorganizations.WT/ACC/JOR/8
Page43
Question 95.
What farm imports arehighly restricted oroutright banned foranimal orplant health reasons.
Please provide justification.
Answer:
There isnopre-determined listofimports thatarebanned foranimal orplanthealth reasons.
Butshould circumstances arisethatjustify suchabanthenhealth regulations willbeimposed thatwill
barimports oftheproducts inquestion aslongasthereason forenforcing thebanexists.
Question 96.
Foragricultural products thatrequire certification oforigin andhealth, howarethesecertifications
obtained? Does Jordan have aspecific system? Ifso,please describe it.
Answer:
ThehealthcertificatesforagriculturalproductswhetheranimalorplantareissuedbytheMinistry
ofAgriculture. Iftheproduct isanexport product thenthecertificate oforigin isgiven bytheMinistry
ofIndustry andTrade uponrecommendation oftheMinistry ofAgriculture. Toissueaheath certificate
foragricultural products, asample ofsuchproduct isexamined bytheconcerned departments ofthe
Ministry ofAgriculture. After theexamination isperformed, andiftheresults aresatisfactory, then
aphytosanitary certificate, orahealth certificate isissued depending onthenature oftheconsignment
examined.
(d) Trade-related investment measures
Question 97.
Please confirm thatJordan does notapply trade-related investment measures andwould be
prepared toimplement theWTO TRIMs agreement.
Answer:
According totheInvestment Promotion LawNo.16of1995, Jordan doesnotapply any
trade-related investment measures. Asforthepreparedness ofJordan toimplement theWTO TRIM ’s
Agreement, Jordan willgiveitgreat consideration.
(e) State-trading practices
Question 98.
WenotethattheGovernment regulates theimports ofsugar, wheat, rice,powdered milk and
cigarettes (page 22ofWT/ACC/JOR/2). Does thisGovernment import monopoly operate on
acommercial basis? Does Jordan have restrictions onthequantity ofproduct thatcanbe
imported?
Answer:WT/ACC/JOR/8
Page44
TheGovernment recently allowed theprivate sector toimport sugar, riceandwheat. Powdered
milkhasalways beenimported bytheprivate sector, onlyonebrand ofmilk-Halibuna -isimported
bytheMinistry ofSupply (MOS). Theprices ofthese products aresetbytheGovernment witha
margin ofprofit forperforming thenormal marketing functions ofdistribution, storage andfinancing.
Question 99.
CouldJordanprovidedetailsofthefundingoftheAgriculturalMarketingandProcessingCompany
(page 34ofWT/ACC/JOR/2)?
Answer:
AMPCO isacompany owned bytheJordan Investment Corporation which istheinvestment
armoftheGovernment. Thefunding ofAMPCO comes fromitscommercial activities which arenow
atomato paste factory andcoldstores thatarerented totheprivate sector. AMPCO isintheprocess
ofbeing privatized.
Question 100.
Wenotetheexistence ofwholly orpartially State-owned enterprises insome sectors (page 30of
WT/ACC/JOR/2).CouldJordanprovidedetailsrelatingtowhetherthelaws,policiesandpractices
governing these State-owned enterprises areconsistent withtheprovisions ofArticle XVII of
GATT 1994 andtheUnderstanding ontheInterpretation ofArticle XVII?
Answer:
State-trading enterprises inJordan, according tothedefinition ofArticle XVII aretheMinistry
ofSupply (MOS), theJordan Civil Consumers Corporation (JCCC) andtheAgricultural Marketing
Organization (AMO).
Themain function oftheMinistry ofSupply andaccording toLawNo.17of1992 isto
implement thegeneral supply policy fortheKingdom, andtoprovide theKingdom ’sneeds ofbasic
foodproducts aswellasensuring astrategic reserve oftheseproducts. TheMinistry ofSupply imports
wheat, barely, corn, sugar, rice,onebrand ofdried milk(Halibuna) andcigarettes.
AsfortheJCCC, LawNo.31of1984, defines itsmainactivity asprovision ofdifferent food
andconsumption goods tothebeneficiaries atreasonable prices. TheJCCC imports directly some
ofthegoods itsells, andbuystherestfromthedomestic market whether imported orlocally produced.
Thebeneficiaries oftheJCCC operations aregovernment employees only.
TheAgricultural Marketing Organization islikeamarketing board regulating theimport and
export ofagricultural products from andtoArab countries withwhom Jordan hasbilateral trade
agreements ortrade protocols according toayearly planandquarterly agenda. These measures are
intended toprevent excess supplies ofsimilar products during theproduction season inJordan. AMO
doesnotinterfere withtheprices ofgoods traded.
(f) Freezones
Question 101.WT/ACC/JOR/8
Page45
Forgoods processed ormanufactured inthefreezones thatarelatersoldintotherestofJordan,
areallnormal taxes, tariffs andother border measures normally applied toimports applied to
these goods?
Answer:
Allnormal taxes, tariffs andother border measures areapplied forthegoods processed or
manufactured inthefreezones inaccordance withArticle 13ofthecurrent Customs Law.
Question 102.
Isaccess toestablishment ofanenterprise inthefreezoneinanywayconditioned onexport sales?
Please provide comprehensive information onhowfirms qualify forestablishment.
Answer:
Theestablishment ofanenterprise inthefreezones isnotconditional onexport sales.
Therequirements forestablishing afirminthefreezones are:
(a) Commercial andServices Projects
1. Toestablish acommercial orservices project, anapplication formissubmitted totheDirector
oftheFreeZone where theproject istobeestablished together withaphotocopy oftheregistration
certificate ofthecompany. TheDirector oftheFree Zone submits theapplication with his
recommendations totheDirector General oftheFreeZones forapproval, provided thatadeposit of
aminimum three months rentisenclosed withtheapplication.
2. Once theDirector General takeshisdecision ofapproval theinvestor isimmediately informed
ofthedecision. Hemustcommence withthefinalization oftheleasing formalities andsigntheleasing
contract within amonth from thedateofnotification. Ifhefailstodoso,thenheisconsidered to
haverefrained andthedeposit isconfiscated.
3. Thelessee isrequested toprovide aguarantee thatrentswillbemade ontimeandthathewill
honour alltheconditions oftheleasing contract. Thistakes twoforms: Iftheinvestor intends to
construct hisowninstallations hehastoprovide apersonal guarantee. Otherwise hehastoprovide
aguarantee attested bytheNotary Public.
(b) Industrial Projects
1. Toestablish anindustrial project anapplication formissubmitted totheDirector General of
theFreeZones comprising allinformation required intheform including theareaofthenecessary
land, together withaphotocopy oftheregistration certificate ofthecompany.
2. Acashdeposit withaminimum oneyearrentofthelandintended tobeleased out,mustbe
deposited withtheapplication. Iftheapplicant refrains fromtheexecution oftheproject thecashdeposit
isnotrefunded. Ifheexecutes theproject thenthecashdeposit iscalculated aspartoftheoriginal
rent.WT/ACC/JOR/8
Page46
3. Upon therecommendations oftheDepartment ofInvestment intheFreeZones Corporation
andtherecommendations oftheDirector oftheFreeZone, theDirector General forwards theapplication
totheInvestment Committee oftheFreeZones Corporation fortheiropinion ontheproposed project.
4. Thereafter, andwithin onemonth ofthesubmission oftheapplication, theDirector General
shallissue hisdecision andtheinvestor isnotified ofit.
5. Theinvestor isgiven twomonths from thedateofhisnotification oftheapproval decision
tofinalize theleasing formalities andtosigntheleasing contract. Ifhefailstodoso,heisconsidered
tohaverefrained andthedeposit isconfiscated.
6. Upon signing theleasing contract, theinvestor isrequired toprovide aguarantee thatrents
willbepaidontimeandthathewillhonours allthecondition ofthecontract. Theguarantee required
from theinvestor intheindustrial sector isapersonal guarantee submitted onthespecified form for
that.
(l) Government procurement practices
Question 103.
Jordan should seekobserver status intheAgreement onGovernment Procurement andprepare
toseekaccession tothatorganization inthecontext ofitsaccession totheWTO.
Answer:
Jordan willconsider suchadecision afteritaccedes toWTO.
(m) Regulation oftrade intransit
Question 104.
Does Jordan expect tochange thediscriminatory policy ofputting ceilings onfeescollected for
services provided toArab vehicles?
Answer:
Theceilings onfeescollected forservices provided toArabvehicles arespecified bytheArab
Transit Agreement towhich Jordan isasignatory. These feesareapplied byallmember countries
andnotonlyJordan.
4. Policies Affecting Foreign Trade inAgricultural Products
Question 105.
Please listanddescribe inmore detail Jordan ’sproposed measures aimed atderegulating
agricultural production andtrade.
Answer:
Despite agenerally openeconomy andarecent history ofliberalization, thestructure ofJordan ’s
agriculture markets tillrecently wasrelatively controlled. TheGovernment hasdirectly influencedWT/ACC/JOR/8
Page47
theprice ofcereals which areprocured bytheGovernment atpre-set prices which areabove import
prices attimes, andtherewassubsidies onanimal feed. Retail prices ofsome agricultural andprocessed
foodproducts havealsobeenregulated.
Subsidies
Theproducer prices ofwheat, barley, chick peasandlentils andtomatoes haveinthepastbeen
bought atpre-set prices bytheGovernment. Theprice ofimported barley foranimal feedhasalso
beensetatsubsidized levels. Subsidies forcereal producers havebeenphased outbytheGovernment
inrecent years andtheGovernment hasannounced 1994/5 cereals procurement prices thateliminate
subsidies.
Subsidies onfeedbarley havealsobeeneliminated, andthemarket hasbeenliberalized. The
Government hasannounced thelivestock feedpricefor1994/5 reflecting theelimination ofthesubsidy
andhasadopted aplanforwithdrawal ofthepublic sector fromthebarley trade, including areduction
inpublic sector barley imports for1995of20percentbelow the1992/94 average. TheGovernment
hasannounced aceiling onpublic sector barley imports for1996 ofatleast60percentbelow the
1992-94 average, together withtheelimination ofpublic sector barley imports in1997. TheGovernment
hasalsoannounced theelimination oftomato price support witheffect from 1January 1995.
Price Controls
Theretail margins offresh fruitandvegetables andtheprices ofmany fresh andprocessed
commodities haveinthepastbeencontrolled bytheGovernment. Margin controls andcontrols on
prices ofmajor freshandprocessed foods (including eggs, oliveoil,tomato paste, chickpeas andlentils)
haverecently beeneliminated bytheGovernment.
(a) Imports
Question 106.
Does Jordan intend tofurther raise itsapplied tariff rates onfarm products orinvoke any
safeguard measure tocurtail imports?
What istheaverage trade-weighted leveloftariff protection onagricultural products?
Answer:
Theaverage trade-weighted leveloftariffprotection onagricultural products according tothe
1994 figures was8.9percent.
Question 107.
How areprices determined forthese goods? How arequantities imported determined? How do
youintend toliberalize thissystem aspartofyour WTO accession?
Answer:
Thequantities imported bytheGovernment aretomeet domestic demand. There isno
pre-determined orfixed levelforproducts imported bytheGovernment. Thequantities imported are
tosatisfy domestic demand. However, theGovernment through theMinistry ofSupply hasreducedWT/ACC/JOR/8
Page48
itsimport activity. Itstopped importing sugar, cornandrice. Wheat istheonlycommodity isstill
imported bytheMinistry ofSupply. Theprocess ofliberalization hasgonealongwayinpreparation
foraccession totheWTO.
Question 108.
Inwhat waydoes theMinistry ofSupply regulate imports andinitial distribution ofcertain
agricultural commodities? HowdoestheGovernment ofJordan propose tochange theMinistry
ofSupply 'sfunctions tobring them intocompliance withWTO procedures?
Answer:
Asexplained intheanswer toquestion 105above, theprivate sector canimport allagricultural
products including wheat. Asforinitial distribution ofthese products imported bytheGovernment,
thewholesaler andtheretailer buydirectly whattheyneedfrom thewarehouses oftheMinistry of
Supply iftheywishtodoso,because theycanbuyitfromtheprivate sector importers. Wheat isstill
theagriculturalcommoditythatissolelyimportedbytheGovernmentastheprivatesectorseemsreluctant
todoso.Thedistribution ofwheat isdoneinthesame wayaswithother products.
Question 109.
What Stateimporting agencies exist? Howdodomestic wholesale prices forfarmproducts compare
withimport prices? Assuming State-trading entities import atworld market prices thensellat
local prices, howistheprice differential accounted for? How aretheprofits used andlosses
funded?
Answer:
Stateimporting agencies inJordan andinaccordance withtheWTO definition aretheMinistry
ofSupply, theJordan CivilConsumer Corporation andtheAgricultural Marketing Organization which
isamarketing board. State-trading enterprises buyatworld market prices andsellatapricethatcovers
theimport priceandadministrative costs. TheMinistry ofSupply sellstowholesalers atcostincluding
import price, transport, insurance andstorage. Asforsubsidized items soldtosubsidy coupon holders
withprices thatarelower thanlocalprices, thedifference iscovered bytheGovernment. TheConsumer
Civil Corporation sellswithamargin ofprofit thatcovers itsadministration expenses, butdoesnot
make anyprofit from itsmembers whoaregovernment employees.
Question 110.
Assuming State-trading corporations import atworld market prices thensellatlocalprices, how
istheprice deferential accounted for?Howdodomestic wholesale prices forfarm prices compare
withimport prices? How aretheprofits usedandlosses funded?
Answer:
Please seeanswer toquestion 107.
Question 111.
What ismeant by“onebrand ofpowdered milk”?WT/ACC/JOR/8
Page49
Answer:
TheMinistry ofSupply imports powdered milkthatispacked infoilbagsinstead oftinsto
reduce thecostofthemilk. Thispowdered milkisbought inbulkthrough public tendering from
international markets todistinguish thismilkfrom theinternational brands imported bytheprivate
sector, thismilkhasalocalbrand name “Halibuna ”.Aliterary translation oftheword is“ourmilk”.
Question 112.
Jordan hasstated thatprivate sector contractors areselected through atendering process.
(a) Areallprivate sector entities eligible toactascontractors andagents fortheMinistry
ofSupply?
Answer:
Anynatural person orlegalentity registered intheMinistry ofIndustry andTrade asanimporter
canparticipate inanytender offered bytheMinistry ofSupply. Inaddition, regional companies and
offices canalsotakepartinthese tenders. Invitation fortenders areadvertised inseveral newspapers,
andparticipation inthetender isopenforallthose whomeettheconditions ofthetender. Alltender
conditions andspecifications areusually stated inthetender document thatcanbebought from the
Ministry ofSupply bycompanies interested inparticipating, through theirlocalagents andcontractors.
(b) Please provide adescription ofthetendering process bywhich private entities areselected.
Answer:
1. TheMinistry ofSupply issues atender invitation andadvertises itinthelocal newspapers,
specifying thegoods tobesupplied andthedeadline forreceiving thebidswhich areusually obtained
from Ministry ofSupply foracertain fee.
2. When abiddocument ishanded totheMinistry ofSupply, itisfirstregistered andthendeposited
inasafeboxspecially provided forthatpurpose.
3. After thefinaldatespecified forreceipt ofbidsexpires, theTenders ’Committee meets toopen
thebids. Thetenders ’safeboxisopened inthepresence oftheCommittee members. Theinformation
ineachbidwhich includes thename ofthebidder, quantity tobysupplied, price, dates ofshipments,
origin ofgoods, andanyother information isentered intoatable forthepurpose ofevaluating the
bids. Thebidistobeaccompanied byabankguarantee forparticipating inthetender.
4. Minutes ofthemeetings aretaken andsigned byallCommittee members andapproved by
theMinister.
5. Once thebidder ischosen, which isusually based ontheleastpriceprovided thatallconditions
ofthetender aremet,heisinformed ofthedecision byaletter signed bytheMinister onthefollowing
dayofopening thebids.
Question 113.
Please clarify thestatements thattheAgricultural Marketing Organization (AMO) determines
onaquarterly basis which commodities canbeimported andthatimports offruits andvegetablesWT/ACC/JOR/8
Page50
from allnon-Arab countries areallowed allyearround? Inaddition, please provide specific
justification fortherequired import approvals ofother foodandfoodproducts.
Answer:
TheimportsofallfreshfruitsandvegetablesfromArabcountrieswithwhomJordanhasbilateral
trade agreements aresubject toaquarterly planissued bytheAgricultural Marketing Organization,
which determines commodities which canbeimported.
Imports ofallfruits andvegetables from theArab countries withwhom Jordan hasprotocol
trade agreements aresubject toproduct exchange agendas signed between these countries andthe
Government ofJordan represented bytheAgricultural Marketing Organization. Theproduct exchange
agendas determine onayearly basisthecommodities thatareallowed tobeimported fromeachcountry
andatwhattime. These measures aimatpreventing excessive supply intheJordanian market during
theseasonsofproduction,whichwouldadverselyaffectfarmers.Duringoff-season,importsareallowed
tomake agricultural products available atreasonable prices. Ontheother hand, imports ofallfruits
andvegetables from allnon-Arab countries areallowed allyear.
Question 114.
Please prepare adraft agricultural country schedule including information onagricultural subsidy
andprice support policies andsupply thebackground information documenting thedesignations
totheWorking Party. Inthisregard, Jordan should refer toWT/ACC/4.
Jordan 'ssystem ofagricultural import quotas appears tobeinconsistent withtheprovisions of
theWTO Agreement. Inlightofthis:
- Does Jordan plantoliberalize itsimport system forwheat, sugar, riceanddried milk
byopening imports totheprivate sector?
Answer:
Theprivate sector imports avariety ofbrands andkinds ofpowdered milk. Onelocally named
brand “Halibuna ”isimported bytheMinistry ofSupply andsoldatsubsidized prices forsubsidy coupon
holders. Imports ofrice,sugar andwheat arenowopentotheprivate sector.
Wheat isstillimported bytheMinistry ofSupply, theGovernment hasallowed theprivate
sector toimport wheat especially afterabolishing thewheat andflour subsidy buttheprivate sector
soforhasnotdoneso.
Question 115.
Bywhat mechanisms doestheJordanian Government regulate andimplement theimportation
ofthese products? Under what criteria?
Answer:
Theimportation ofthese products isnowopentotheprivate sector. Theimporter hasstill
togetprior approval from theMinistry ofSupply. After obtaining theprior approval theimporter
canproceed intheimport activity asanyother importer asexplained intheanswer toquestion 59.WT/ACC/JOR/8
Page51
Question 116.
Does Jordan intend tonotify these imports andtheir importing enterprises under Article XVII?
Answer:
When Jordan accedes totheWTO itintends toprovide theinformation required under
Article XVII when required todoso.
Question 117.
What istheannual budgetary outlay foreachoftheproducts affected?
Answer:
(JDmillion)
1994 1995 1996 1997
Wheat 39.5 53.7 42.3 0.7
Sugar 0.5 4.1 10.2 12.7
Rice 4.8 7.3 10.9 10.9
Dried milk 3.0 5.2 7.1 6.6
*Wheat andflour subsidy wasabolished attheendof1996.
Question 118.
Forprotocol trade, what istherelationship ofthe"quarterly plan" forthese imports withthe
import permit system described insection 3.2.2.1 and3.2.2.4 (WT/ACC/JOR/2)?
Answer:
Theimports offreshvegetables andfruits fromArabcountries withwhom Jordan hasbilateral
trade agreements aresubject toaquarterly planissued bytheAgricultural Marketing Organization
which determines theagricultural commodities tobeimported during thequarter. Imports ofallfruits
andvegetables fromtheArab countries withwhom Jordan hasprotocol trade agreements aresubject
toproduct exchange agendas signed between Jordan andthesecountries. Theproduct exchange agendas
determine onayearly basis, thecommodities thatareallowed tobeimported fromeachcountry and
atwhattime.
Thequarterly planandtheyearly agendas areaimed atpreventing excess supply intheJordanian
market during theproduction season ofcertain products. Imports offresh fruits andvegetables from
countrieswithbilateralandprotocoltradeagreementsaresubjecttopriorapprovalswhichareconsidered
import permits inthemselves.
Question 119.
What HSlines arecovered bytheexemption ofagricultural inputs from customs duties and
application ofthe5percentimport fee?WT/ACC/JOR/8
Page52
Answer:
Seetariff exemptions ofagricultural products from themost recent HStariff dataprovided
inelectronic form which areavailable intheSecretariat (Accessions Division, Room 1126) for
consultation.
Question 120.
Could Jordan provide details ofwhyimports ofmineral water areprohibited (page 22of
WT/ACC/JOR/2)? How willJordan ensure thatthismeets theobligations oftheAgriculture
Agreement?
Answer:
Thesources ofmineral water inJordan arelocated inareaswhich areconsidered disadvantaged
areasfromadevelopment prospect. Toencourage investment intheseproducts, protection wasgranted
tomineral water industry. However, theGovernment isconsidering nowlifting thisbanandallowing
theimports ofmineral water.
Question 121.
Wenotethatallimports offresh fruits andvegetables aresubject toaplan issued bythe
Agricultural Marketing Organization which determines onaquarterly basisthecommodities which
canbeimported (page 22ofWT/ACC/JOR/2). Could Jordan please provide details oftheseasonal
restrictions applying toeach fruit andvegetable product? CanJordan confirm thatthere are
noother restrictions ofanykindontheimport offruitandvegetables?
Answer:
Seeanswer toquestion 42above.
Question 122.
Could Jordan provide details ofanyplans thatitmayhave toeliminate weight restrictions on
imported livesheep?
Answer:
Weight restrictions onimported livesheep reflect consumer preference forsmaller lambs.
However,thematterofslightlyincreasingweightsofimportedlivesheepareunderconsiderationkeeping
inmind consumer preference anddemand.
(b) Exports
Question 123.
Does Jordan under its“export promotion ”schemes grant export subsidies orother incentives
foragricultural products?
Answer:
Jordan doesnotgrant anyexport subsidies toagricultural products.WT/ACC/JOR/8
Page53
Question 124.
Regarding programmes forfinancing commodities stored forexport purposes:
- Please giveupdated information ontheCentral Bank ofJordan allocations forthese
programmes during 1996.
- How dotheinterest rates charged compare tomarket interest rates?
- What products -onacommodity-specific volume andvalue basis -have been awarded
these loans?
- Under what terms andconditions arethestored products exported orreintroduced into
domestic commerce?
- How doesJordan intend toinclude these commodities initsagricultural export subsidy
tables?
Answer:
Theprogramme forfinancing commodities stored forexport purposes wascancelled asof
1January 1997.
Question 125.
How doesJordan intend toinclude these commodities initsagricultural export subsidy tables?
Answer:
Seeanswer toquestion 122above.
(c) Export prohibitions andrestrictions
Question 126.
Wewould begrateful forconfirmation thatrestrictions ontheexport ofewesfrom Jordan have
been lifted.
Answer:
Thisrestriction hasbeenremoved inSeptember 1996.
(e) Internal policies
Question 127.
Concerning Agricultural Marketing Organization procedures:
Howdoesthemarketing organization work? Who determines "reasonable" prices? Howdoyou
plantoeliminate thisprogramme under your accession?WT/ACC/JOR/8
Page54
Answer:
TheAgricultural Marketing Organization (AMO) isanautonomous government entity entrusted
withtheformulation ofagricultural marketing policies, development ofmarketing prospects for
agricultural products domestically andinternationally. Itisrunbyaboard ofdirectors composed of
representatives from theprivate andpublic sectors.
Whole prices ofagricultural products aredetermined according tosupply anddemand forces
inthewhole salemarkets foragricultural products. Ontheotherhandretailprices usedtobedetermined
byaspecialized committee thatadded amargin ofprofit tothewhole saleprice ofeachproduct to
arrive attheretail price.
TheGovernment abolished thefixing oftheretail prices foragricultural products attheend
ofApril 1997.
Question 128.
Areproducers obligated toselltotheGovernment?
Answer:
Producers arenotobligated toselltheirproducts totheGovernment.
Question 129.
IsJordan committed tofurther reducing thelevelofsubsidy provided toagricultural producers
upon WTO accession?
Answer:
Ifthecalculations onagricultural subsidies prove thatthese subsidies aresubject toreduction
according totheAgreement anAgriculture, Jordan willlookintothematter ofreducing them.
Question 130.
Please alsodocument export subsidy practices over thepasttenyears. Isthere anewprice
liberalization andsubsidy plan? Ifso,which products arecovered?
Answer:
Seeanswers toquestions 83,84,87,123and124.
Question 131.
CanJordan confirm thatthefollowing measures have been abolished:
(a) domestic fodder subsidies;
(b) theregulation ofdomestic fodder prices; and,
(c) theimport ofliveanimals contingent oninvestment infodder?WT/ACC/JOR/8
Page55
Answer:
(a) Adecision wastaken in1996 thatended suchsubsidies.
(b) Does notapply anymore.
(c) Does notapply anymore.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy
Question 132.
What changes doesJordan anticipate initslawstobring practices intoconformity withWTO
TRIPS provisions?
Answer:
JordanisintheprocessofbringingitslawsintoconformitywithWTOTRIPSprovisionsthrough
amendment ofsome ofthepresent lawsandintroducing newother laws. Currently, work isgoing
onamending theCopyright Protection LawNo.22of1992, theTrademarks LawNo.33of1952and
thePatents Design LawNo.22of1953. Anewdraftlawoncompetition willsoonseeitswayto
Parliament fordiscussion andapproval.
Question 133.
HowdoesJordan 'scurrent regulation andenforcement ofintellectual property rights match WTO
requirements?
Answer:
There areadequate intellectual property lawsinJordan, however, theyarecurrently under
review andshallbeamended sothattheyarecompatible withWTO TRIPS requirements.
Question 134.
Currently onlytheintellectual property ofJordanian andforeign authors whoregister theirwork
inJordan areprotected. Infringement ofUnited States 'intellectual property rights isnotsubject
toanypenalties atthistime. How willthisbeaddressed?
Answer:
Thecurrent Copyright Lawgives protection toforeign authors including United States 'authors
whoregister theirwork inJordan. Theworks offoreign (non-Jordanian) authors thatarepublished
abroad areprotected inaccordance withArticle 53ofthecurrent Law, bytheprinciple ofreciprocity
andinternational conventions towhich thecountry oftheauthor andJordan arebothmembers. Jordan
isnowintheprocess ofjoining theBerne Convention.WT/ACC/JOR/8
Page56
2. Substantive Standards ofProtection
(a) Copyright andrelated rights
Question 135.
Please provide adescription ofJordan 'slawsoncopyright protection. What rights areguaranteed
byJordanian copyright law,andtowhich categories ofworks dothese rights apply? What is
theterm ofprotection?
Answer:
1. Article 3(a)and(b)ofthecurrent lawclassifies theworks thatareprotected, asfollows:
(a) works created inthefields ofliterature, artandscience, whatever theirnature, theirimportance
orthepurpose forwhich theyweremade, shallenjoy protection inaccordance withthisLaw;
(b) thesaidprotection shallextend toworks expressed inwriting, sound, drawing, painting or
movement, andinparticular:
(i) books, booklets andother written matter;
(ii) oralworks suchaslectures, speeches andsermons;
(iii) dramatic works; dramatic-musical andmimed works;
(iv) musicalworks,whetherinwrittenformornotandwithorwithoutaccompanyingworks;
(v) audiovisual, cinematographic andbroadcast works;
(vi) paintings, drawings, sculptures, engraving, andworks ofarchitecture andofapplied
anddecorative art;
(vii) illustrations, maps, plans, diagrams, three-dimensional works relating togeography
andtopographical maps;
(viii) computer programs.
2. Inaccordance withArticle 4,theperson towhom thework isattributed onpublication, whether
bythemention ofhisname onthework orinanyother way, shallbedeemed tobetheauthor inthe
absence ofevidence tothecontrary. Theforegoing shallapply topseudonyms, insofarasthere is
nodoubt astothetrueidentity oftheauthor.
3. Inaccordance withArticle 8theexclusive rights oftheauthor are:
(a) tohavehiswork attributed tohimandtobenamed onallcopies whenever hiswork ismade
available tothepublic, butnotwhen thework ismentioned incidentally inthecourse ofanews
report oncurrent events;
(b) todecide onthepublication ofhiswork andtodetermine themanner anddatethereof;
(c) tomake anymodification tohiswork whether byalteration, editing, deletion oraddition;
(d) tooppose anyinfringement ofhiswork andtoprevent anydistortion, mutilation orother
modification thereof, oranyother actprejudicial tohisreputation andhonour; however, if
suchdeletion, alteration, addition orother modification occurs inthetranslation ofthework,
theauthor shallnothavetherighttoprevent it,savewhere thetranslator omits tospecify the
location ofthemodification orwhere thetranslation isliable toprejudice thereputation of
theauthor andhiscultural orartistic standing, orisdetrimental tothecontent ofthework;WT/ACC/JOR/8
Page57
(e) towithdraw hiswork ifthere areserious andlegitimate reasons therefore; insuchacasethe
author shallbeliable topayfaircompensation totheperson towhom theeconomic rights have
passed.
4. Article 9identifies thefinancial rights oftheauthor. Theauthor shallhavetherighttoexploit
hiswork forgaininwhatever manner hechooses. Noother person mayexercise thatrightwithout
written authorization from himorhissuccessors, which authorization shallinclude:
(a) therighttoprint, broadcast orproduce hiswork;
(b) therighttoreproduce hisworkinanymaterial form, including photographic orcinematographic
reproduction, orrecording;
(c) therighttotranslate oradapt hiswork, totransform itintoamusical work, ortomake any
change therein;
(d) theright toauthorize persons toutilize oneormore copies ofhiswork forexploitation by
means ofrental, lending oranyother actserving tomake thework available tothepublic;
(e) therighttoconvey hiswork tothepublic bymeans ofrecitation, exhibition, performance,
radio ortelevision broadcasting, cinematographic production orbyanyother means.
5. Theterms ofprotection fortheworks oftheauthor arecovered asfollows:
(a) inaccordance withArticle 30,theworks oftheauthor shallbeprotected forhislifetime and
forthirty years afterhisdeath orafterthedeath ofthelastsurviving co-author;
(b) inaccordance withArticle 31,thefollowing works shallbeprotected for30years starting
from thedateofpublication:
(i) cinematographic andtelevision works;
(ii) anywork whose author orrightholder isalegalentity;
(iii) anywork published forthefirsttimeafterthedeath ofitsauthor;
(iv) anonymous orpseudonymous works, provided that,iftheauthor reveals hisidentity
within theperiod ofprotection, thatperiod shallcommence onthedateofthedeath
oftheauthor.
(c) inaccordance withArticle 32,thefollowing works shallbeprotected for15years afterthe
death oftheauthor:
(i) computer programs;
(ii) translated works;
(iii) paintings, manuscripts, sculptures, drawings, pictures, architectural andgeographical
maps ortopography, surface orthree dimensional maps.
Question 136.
Iscopyright protection afforded onanational treatment basis, andifitisnot,what arethe
exceptions?WT/ACC/JOR/8
Page58
Answer:
According toArticle 38ofthecurrent law,eachwritten work published orprinted inthe
Kingdom foraJordanian ornon-Jordanian author shall besubject totheprovisions ofdepositing
prescribed inthislaw. Likewise, eachwritten work published orprinted outside theKingdom for
aJordanian author, butdistributed inside it,shallalsobesubject tothesame provisions, provided that
depositing bemade attheDocumentation Centre before offering thewritten workforsaleordistribution
intheKingdom. However, aprospective amendment ofthelawaddsaprovision thatnon-depositing
ofacopyright work attheCentre doesnotaffect theauthor ’srights stipulated inthislaw.
Question 137.
DoesJordan plantojointheBerne Convention? What changes intheCopyright Lawwould have
tobemade tomeet therequirements oftheBerne Convention?
Answer:
Yes,Jordan plans tojointheBerne Convention. Thus, itisexpected toaffect thechanges
initsCopyright Lawinorder tomeettherequirements oftheBerne Convention.
Question 138.
What changes inJordan 'scopyright lawswould beneeded tomeettherequirements oftheTRIPS
Agreement? What plans doesJordan have tobring itslawintocompliance withTRIPS?
Answer:
Thefollowing changes inJordan ’sCopyright Lawareneeded tomeettherequirements ofthe
TRIPS Agreement: compilations ofdata(Article 10oftheTRIPS Agreement), termofprotection
(Article 12),limitations andexceptions (Article 13),protection ofperformers, producers ofphonograms
andbroadcasting organisations (Article 14).Thisisinaddition tomatters regarding enforcement of
copyright matters asstipulated inTRIPS Articles 41-61.
Question 139.
What system isinplace fortheenforcement ofcopyright, inbothcivilandcriminal law? What
istheaverage timeframe forlitigations ofcopyright infringement suits?
Answer:
Enforcement ofcopyright isstipulated inArticles 51and52oftheCopyright Lawinaddition
toboththecivilandcriminal laws. Itisverydifficult toassess theaverage timeframe forlitigation
ofcopyright infringement cases, asthere hasbeennosuitsonrecord.
Question 140.
How arephonograms (sound recordings) anddatabase compilations protected? Iscomputer
software given copyright protection asaliterary work?WT/ACC/JOR/8
Page59
Answer:
Phonograms (sound recordings) anddatabase compilations arenotprotected inthecurrent
copyright law,however, phonograms areincluded intheamended version ofthelawunder Article 7(b).
Computer programs aregiven protection asaliterary work according tothecurrent Copyright Law.
Question 141.
HowdoesJordan 'slawtreatrental rights? What works aresubject totherequirement thatauthors
andtheirsuccessors intitlemayauthorize orprohibit thecommercial rental oforiginals orcopies
oftheir works?
Answer:
According toArticle 9oftheprotection ofCopyright LawNo.22for1992, theauthor has
therighttoexploit hiswork forfinancial gaininwhatever manner hechooses. Nooneelsemayexercise
suchrightwithout written authorization fromhimorhissuccessors. Paragraph (e)ofthesaidarticle
gives theauthor therighttoletothers useacopyorseveral copies ofhisoriginal work andgivethem
therighttoconvey ittothepublic byrental orlease oranyother means. These works areprotected
according toparagraph (b)ofArticle 3oftheCopyright Lawasexplained inanswer toquestion 128.
Theproposed amendment totheCopyright Lawadded anewarticle thatgives allproducers
ofsound recording therighttoallow orprohibit thedirect andindirect copying oftheirsound recordings,
orrental oftheoriginal copies ofrecording.
Question 142.
What isthescope ofcompulsory licensing ofcopyrightable works? Under what conditions would
compulsory licences begranted?
Answer:
Article 11oftheprotection oftheCopyright Lawallows anyperson, upon obtaining licence
from theMinister ofCulture totranslate thework intoArabic, provided oneyearhaselapsed since
thedateofrequest hemade totheauthor toorothers whotranslated thework intoaforeign, language
totranslate thework intoArabic. Thisisalsoconditional onthefactthatneither theauthor orthose
whotranslated ittoaforeign language didnotauthorize others totranslate itintoArabic during the
oneyearperiod. Once theperson getslicence totranslate thework intoArabic, theauthor ortheperson
whom heauthorized totranslate thework intoaforeign language, isentitled toafaircompensation
from theperson thatwaslicensed bytheMinister ofculture totranslate thework intoArabic.
Thisarticle waschanged intheproposed amendments totheprotection ofCopyright Law,
sothattherules concerning granting oflicences fortranslation orcopying arecompatible withthe
regulations oftheAnnex totheBerne Convention relating todeveloping countries.
Question 143.
TheGovernment ofJordan announced in1994 thatitwillgivepriority toprotecting computer
software andother copyrights, butnoaction hasbeen taken. When andhowwillenforcement
ofcopyright protection occur?WT/ACC/JOR/8
Page60
Answer:
Jordan hasamended theCopyright Protection LawNo.22of1992. Theamendments take
careoftheprovisions andobligations oftheBerne andTRIPS Agreements, andofsoftware protection
andother copyrights. Theamended lawwasapproved bytheCouncil ofMinisters andforwarded
toParliament fortheirconsideration anddeliberations.
(b) Trademarks, including service marks
Question 144.
What changes inJordan 'slawarenecessary forcompliance withTRIPS trademark obligations?
When willsuchchanges bemade?
Answer:
Thecurrent trademarks lawhave been amended forcompliance with TRIPS trademark
obligations. Thechanges include:
- introduction ofprotection forservice marks, wellknown marks andcollective trademarks;
- increase oftheperiod ofno-use foratrademark from 2years to3years;
- introduction ofcompulsory licensing fortrademarks;
- introduction ofpunishment forinfringement onwellknown marks;
- allowing assignment ofatrademark withorwithout good will.
Question 145.
Does trademark protection apply toservices aswellastogoods?
Answer:
Thecurrent trademarks lawdoesnotprotect service marks. However, theamended lawincludes
suchaprotection.
Question 146.
What rights aregranted totheowner ofatrademark?
Answer:
Aregistered trademark gives theowner thefollowing protection:
- theexclusive rightofuse;
- therighttolicence other people touseforannual fees;
- righttofilecriminal andcivilcases inthecourts oflaw.
Question 147.
What isthedefinition andscope ofprotection ofawell-known mark?WT/ACC/JOR/8
Page61
Answer:
There isnodefinition forawell-known mark inthecurrent law.
Question 148.
Towhat extent doesawell-known mark notregistered inJordan receive protection?
Answer:
Theowner ofawell-known marknotregistered inJordan canfileanobjection totheTrademark
Registrar attheMinistry ofIndustry andTrade toobstruct theregistration ofsuchamark. Ifthe
mark hadbeenregistered already hecanrequest itscancellation within aperiod offiveyears from
thedaytheregistration ofthatmark tookeffect. Hecanalsofileacivilcaseinlawcourts inJordan
regarding infringement oftheuseofwell-known mark forthesame kinds ofgoods.
Question 149.
What specific rights doestheowner ofanunregistered mark have?
Answer:
Theowner ofanunregistered mark hasthefollowing rights:
- objection totheinitial request forregistration ofthetrade mark within three months fromits
publication intheOfficial Gazette;
- theright todemand thecancellation ofthemark registration ifheistheowner ofthemark
inhiscountry, andwithin fiveyears fromtheactual registration ofthemark inJordan provided
thatsuchamark hadbeenusedonhisgoods thataretraded inJordan, i.e.theJordan public
know thatsuchgoods areofforeign origin;
- righttofileacivilcourt casedemanding compensation fordamages andlosses because ofthe
unauthorized useofthemark, andtodemand action toputanendtosuchinfringement.
Question 150.
What istheroleoftheJordanian authorities ininfringement actions?
Answer:
1. TheTrademark Registrar andtheHigher Court ofJustice dealwithobjection toregistration
oftrademarks andcancellation ofsuchmarks.
2. Civil andcriminal courts dealwithcases concerning infringement ontheuseofaregistered
trademark. Civil courts candealwithcases concerning infringement ontheuseofunregistered
trademark.
3. Customs officials havetherightnottoallow theentry ofgoods thatitstrademark hasbeen
infringed upon, provided thatafinaldecision hasbeentaken regarding suchamatter.WT/ACC/JOR/8
Page62
Question 151.
Onwhat grounds maytheJordanian authorities refuse toregister amark?
Answer:
Article 8ofthelawdefines thecases when amark cannot beregistered.
Thefollowing marks arenotcapable ofregistration astrade marks:
- representations ofroyal armsorroyal crests, orarmsorcrests sonearly resembling them as
toleadtomistake, ortheword “royal”oranyother words, letters, ordevices calculated to
leadpersons tothink thattheapplicant hasroyal patronage;
- public armorial bearings, crests, insignia, ordecorations oftheHashemite Kingdom ofJordan
orforeign States ornations, unless authorized bythecompetent authorities;
- official hallmarks orsigns indicating anofficial warranty; unless putforward orauthorized
bythecompetent authority owning orcontrolling themark;
- representations ofthenational flagortheflags, military ornaval, oftheHashemite Kingdom
ofJordan oritshonourary decorations orinsignia ofnational military ornaval flags;
- marks which contain thefollowing words orterms: "patent", "patented", "byRoyal Letters
patent", "registered", "registered design", "copyright", "tocounterfeit thisisaforgery", or
words tolikeeffect;
- marks which arecontrary topublic order ormorality orwhich arecalculated todeceive the
public;ormarkswhichencourageunfairtradecompetition,orcontainfalseindicationsoforigin;
- marks consisting offigures, letters orwords which areincommon useintrade todistinguish
ordescribe kinds ofgoods ortheirclasses; words whose ordinary signification isgeographical
orasurname, unless represented inaspecial manner; provided thatnothing herein contained
shallbedeemed toprohibit theregistration ofmarks ofthenature described inthisparagraph
which haveadistinctive character within themeaning ofsub-sections 2and3ofsection 7;
- marks identical withorsimilar toemblems ofexclusively religious significance;
- marks which contain thepicture, name orthetrade name ofaperson, orthename ofabody
corporate orofanassociation, unless theconsent oftheperson orpersons concerned hasbeen
obtained; inthecaseofpersons recently deadtheregistrar maycallforconsents from their
legalrepresentatives;
- amark, identical withonebelonging toadifferent proprietor, which isalready ontheregister
inrespect ofthesame goods orclassofgoods itisintended toregister suchtrademark, or
sonearly resembling suchtrademark astobecalculated todeceive;
- marks which aresimilar oridentical totheinsignia oftheRedCrescent, orRedCross ona
white back ground ortheinsignia oftheRedCross ortheCross ofGeneva.WT/ACC/JOR/8
Page63
Question 152.
Arethere minimum/maximum limits onpenalties fortrademark infringement?
Answer:
Article 38ofthelawdefines theminimum andmaximum penalties fortrademark infringement
asfollows:
- anyperson whowithintent todeceive, commits orattempts tocommit oraidsorincites any
other person incommitting anyofthefollowing actsshall beliable upon conviction to
imprisonment foraperiod notexceeding oneyearortoafinenotexceeding onehundred dinar,
ortobothsuchpenalties:
(a) notbeing theproprietor thereof makes useofatrademark registered under thisLaw
orofanimitation ofsuchtrademark upon thesame classofgoods asthatinrespect
ofwhich themark isregistered;
(b) sells, stores forthepurposes ofsale,orexposes forsale,goods bearing amark the
useofwhich isanoffence under paragraph (a);
(c) usesamark dulyregistered byanother person under thisLawforthepurpose of
advertising goods ofthesameclassification asthose forwhich registration hasalready
beenobtained byanother person;
(d) makes, engraves, prints, orsells, anyplate, die,block, stamp orother representation
ofadulyregistered mark oranyother imitation thereof forthepurpose ofenabling
anyperson, other thantheregistered proprietor ofsuchmark, tomake useofsuch
mark oranimitation thereof inconnection withgoods ofthesame classification as
those forwhich registration hasalready beenobtained byanother person;
(e) makes orcauses tobemade afalseentry intheregister keptunder thisLaw, ormakes
orcauses tobemade awriting falsely purporting tobeacopyofanentry inanysuch
register, orproduces ortenders orcauses tobeproduced ortendered inevidence any
suchwriting, knowing theentry orwriting tobefalse.
Question 153.
Does registration ofamark satisfy notice oftheexclusive right oftheright holder topotential
infringers? Does aright holder have togiveactual notice toaninfringer before theinfringer
isliable? Orisregistration ofthemark sufficient?
Answer:
Theregistration ofamark inthename oftherightowner gives himtheexclusive righttostop
infringement orpiracy onhismark incriminal andcivilcourts. Hecanstartcourt procedures tostop
infringement onhismark assoonashelearns ofsuchinfringement without serving anotice tothe
infringer.WT/ACC/JOR/8
Page64
Question 154.
Forwhat period oftime aretrademark registrations valid? May registration berenewed
indefinitely?
Answer:
Theperiod offirstregistration is7years. Renewal ofperiods isindefinite foraduration of
14years eachtime. Intheamended newlawtheduration ofthefirstregistration andtherenewal
periods is10years foreach.
Question 155.
Does Jordan 'slawcontain auserequirement tomaintain trademark rights? Ifso,after what
period mayamark becancelled fornon-use?
Answer:
Thecontinuation ofregistration ofatrademark istiedtoitsuse. There isatwo-year grace
period ofnon-use. Intheamended lawtheperiod hasbeincreased to3years.
Question 156.
Does Jordan 'slawallow forregistration ofidentical orsimilar marks forthesame orrelated
goods todifferent parties?
Answer:
Thecurrent lawdoesnotallow theregistration ofidentical orsimilar trademarks forthesame
goods oranyother protected related goods iftheowner ofthemark hasasked forsuchaprotection.
Question 157.
Istherecordation ofanassignment mandatory? Ifso,what aretheramifications ofnotrecording
anassignment?
Answer:
Therecordation ofanassignment iscompulsory according tothelaw.Anydelay inrecording
suchanassignment within sixmonths entails payment ofafineontherecordation fees. Inaddition,
hecannot fileacourt caseunless herecords theassignment attheTrademark Registrar intheMinistry
ofIndustry andTrade.
Question 158.
Towhat extent maydecisions ofthetrademark registrar beappealed inacourt oflaw?
Answer:
Alldecisions oftheTrademark Registrar canbeappealed attheHigher Court ofJustice.WT/ACC/JOR/8
Page65
Question 159.
Does Jordanian lawpermit thecompulsory licensing ofatrademark?
Answer:
Thecurrent lawdoesnotpermit compulsory licensing fortheuseofregistered trademarks.
(d) Industrial designs
Question 160.
What form ofprotection doesJordan provide forindustrial designs?
Answer:
TheLawforPatents andIndustrial Design gives protection toindustrial designs inciviland
criminal courts.
Question 161.
What istheterm ofprotection?
Answer:
Theperiod ofprotection is15years provided in3equal terms.
Question 162.
Does Jordan expect tomake anymodifications toitslaws toimplement theindustrial design
provisions ofTRIPS?
Answer:
Jordan isconsidering todraftanamended lawforindustrial designs withhelpfrom WIPO.
Question 163.
Does Jordan protect textile designs? Ifso,doesitdosothrough industrial design law,orthrough
copyright law?
Answer:
Itcanbeprotected through theindustrial designs laworthrough thecopyright law. The
classification depends onthepurpose ofutilisation ofthedesigns.
(e) Patents
Question 164.
What subject matter isexcluded from patentability under Jordanian law?WT/ACC/JOR/8
Page66
Answer:
According toArticle 2ofthePatents LawNo.8of1986 "Apatent ofinvention maynotbe
granted inrespect ofchemical products relating tomedical drugs, pharmaceutical compositions of
foods except when suchproducts aremade according toparticular chemical methods andprocesses.
Insuchcase, thepatent shallnotapply tothefinished form ofanyofthese products, butrather to
themanufacturing process only".
Question 165.
IsJordanian lawcurrently inconformity withtheTRIPS Agreement? Ifnot,what plans does
Jordan have tobring itssystem intoconformity, andinwhat timeframe?
Answer:
Atthemoment there aresome variations between theJordanian Patent LawandtheTRIPS
Agreement. However, thePatent Lawisunder review withaview toitsamendment according to
theprovisions oftheTRIPS Agreement.
Question 166.
Does theJordanian Patent Lawprovide alltherights listed inArticle 28ofTRIPS withrespect
toproduct andprocess patents? Ifnot,what rights arenotavailable?
Answer:
Thecurrent Jordanian Patent Design Lawdoesnotprovide theowner ofapatent therights
listed in(a)and(b)ofparagraph 1ofArticle 28oftheTRIPS Agreement concerning hisexclusive
righttoprevent athirdparty from making, offering forsale,selling orimporting theproduct orthe
process resulting inthatproduct without hisconsent.
Question 167.
Arethere anyrestrictions onapatent owner 'srights toassign, transfer, licence rights under a
patent?
Answer:
There arenorestrictions onapatent owner ’srights toassign transfer, licence rights under
apatent except inthecaseofinvention patents ofmilitary significance. Thepatent owner ’srights
areclearly specified inArticle 4oftheLaw: "Without prejudice toanyother conditions provided
forherein, thefirstoriginal inventor ofanynewinvention shallbegranted apatent which confers
uponhimtheabsolute righttouse,exploit, utilize, manufacture, produce, prepare, sellsuchinvention
orgrant licences toothers foranyofthese purposes".
Question 168.
Under what conditions maycompulsory licences, including those forusebytheGovernment or
third parties authorized bytheGovernment, begranted? Will modifications beneeded to
implement theprovisions outlined inArticle 31ofTRIPS?WT/ACC/JOR/8
Page67
Answer:
Under Article 22(1) oftheLaw"Any person interested maypresent apetition totheRegistrar
alleging thatthereasonable requirements ofthepublic withrespect toapatented invention havenot
beensatisfied andaskforthegrant ofacompulsory licence, orinthealternative, fortherevocation
ofapatent".
Some modifications willberequired toimplement theprovisions outlined inArticle 31ofthe
TRIPS Agreement byeliminating theprovisions ofthelawthatnowsubject patents tocompulsory
licences ifthepatented invention isnotproduced locally andputting more stringent conditions onuse
ofapatented invention without theauthorization oftherightholder.
Question 169.
Please elaborate ontheroleofthePatent Office indocumenting licensing agreements andtransfer
oftechnology contracts, asmentioned insection VII.1. ofWT/ACC/JOR/2.
Answer:
ThePatentOfficedoesnotplayanycurrentroleindocumentinglicensingagreementsandtransfer
totechnology contracts duetothesmall number ofpatents filedperyearandthescarcity resources.
However, there areserious intentions topromote theindustrial property system andprocedures atthe
Patent Office inthenearfuture.
Question 170.
What isthesizeoftheexamining coreinJordan 'sPatent Office? How many applications are
submitted annually? What istheaverage pendency period foranapplication?
Answer:
There arenoexaminers atJordan ’sPatent Office, asnoformal examination isconducted for
patents belonging toforeigners whohadfiledapplications fortheirpatents abroad. Formal examination
isconducted onlyonpatents belonging toJordanians andthose filedforthefirsttimeinJordan and
these areusually conducted atvarious scientific research centres. There hasbeen approximately
70applications being submitted annually since 1994 andthependency period foranapplication is
approximately oneyear.
Question 171.
How many patents have been issued todate? Inwhat technological categories?
Answer:
There hasbeen1,935 patent applications issued inJordan uptotheendofJanuary 1997. The
foreignpatentsissuedhavebeenconcentratedinthefollowingtechnologicalcategories:pharmaceuticals,
chemicals, solarenergy, constructional materials, machinery andmechanics. While thepatents issued
fornationalsconcentratedonthefollowingtechnologicalcategories:publicsafety,solarenergy,electrical
equipment, chemicals andmining.WT/ACC/JOR/8
Page68
Question 172.
How longhasthepatent office been inoperation?
Answer:
ThePatent Office hasbeeninoperation since 1953.
Question 173.
What opportunities exist forjudicial review ofadecision torevoke apatent, asrequired by
Article 32oftheTRIPS Agreement?
Answer:
Onlyinthecases ifagrave mistake hasoccurred intaking thedecision torevoke apatent then
theSupreme Court willmeetasageneral assembly andre-examine thecase.
Question 174.
IfJordan doesnotcurrently extend patent protection topharmaceutical andagricultural chemical
products, what plans doesJordan havetocomply withtheprovisions ofTRIPS Article 70.8and
70.9?
Answer:
Jordan plans toamend itscurrent lawtoextend patent protection topharmaceuticals and
agricultural chemical products.
(g) Layout designs ofintegrated circuits
Question 175.
Does Jordan protect layout designs?
Answer:
There isnolawtoprotect layout designs.
Question 176.
What istheterm ofprotection?
Answer:
There isnoprotection forlayout designs.
Question 177.
What rights areextended totheright holder?WT/ACC/JOR/8
Page69
Answer:
Norights areextended totherightholder asthere isnolawtoprotect layout designs.
Question 178.
What changes must bemade tobring Jordan 'slawintoconformity withTRIPS obligations?
Answer:
JordanisplanningtojointheWashingtonTreatyonIntellectualPropertyinRespectofIntegrated
Circuits of1989, during aperiod of7years.
(h) Requirements onundisclosed information
Question 179.
Does Jordan protect trade secrets? Ifso,inwhat form?
Answer:
There isnospecial lawforprotection oftradesecrets. However, thecivillawprovides asimilar
kindofprotection through compensation fordamages andlosses iftheowner ofatrade secret can
prove thatsuchdamage hasbeeninflicted onhim.
Question 180.
Arechanges necessary toimplement theTRIPS obligations?
Answer:
TheGovernment isconsidering thepossibility ofintroducing suchchanges.
3. Measures toControl Abuse ofIntellectual Property Rights
Question 181.
DoesJordanhaveanylawsthatwouldfallintotheanti-competitivepracticesprovisionsofArticle40
ofTRIPS? Ifso,please specify?
Answer:
Thecurrent Jordanian Patents Design Lawhandles theissue ofcontrol overcompetition in
licensing. Article 22/3oftheLawstipulates thatthecourt oflawcanorder theowner ofapatent to
grant alicence foruseofhispatent, provided thatthree years haveelapsed since thedateofbeing
granted thepatent forhisinvention. Theamended trademarks lawwilladdress theissueofcontractual
licensing intrademarks.
Question 182.
Arethere anyrestrictions onthelicensing ofintellectual property, oneither domestic orforeign
nationals?WT/ACC/JOR/8
Page70
Answer:
Asfarasthecurrent Jordanian lawsareconcerned there arenorestrictions onthelicensing
ofproperty rights fordomestic orforeign nationals.
4. Enforcement
Question 183.
Does Jordan provide thefullrange ofrelief required byTRIPS, including injunctive relief,
damages, seizure anddestruction ofinfringing goods, provisional relief, border relief andcriminal
sanctions?
Answer:
TheCommodities Mark LawNo.19of1953 provides suchrelief required byTRIPS.
Question 184.
Ineachcase, indicate under what lawsuchprotection isprovided, andwhether amendments will
berequired tofully implement Articles 41-61 ofTRIPS?
Answer:
Weneedtoamend theMerchandise Lawtogiveprotection toservice marks, well-known and
collective marks.
VI. TRADE-RELATED SERVICES REGIME
2. Policies Affecting Trade inServices
Question 185.
Please describe andprovide English translations ofJordanian lawsandregulations governing
international participation initsservices sector. Inparticular, please provide acopyofCompanies
LawNo.1of1989 andtheInvestment Promotion Law.
Answer:
ThenewCompanies Lawbecame effective attheendofApril 1997. Notranslation inEnglish
ispresently available.
3. Specific Sectors
(b) Telecommunications services
Question 186.
Concerning prior approvals fortelecommunications equipment:
Howdoestheprocess work fortheimport ofthese products? Isprior approval alsorequired for
businessmen whotravel withthese products intoJordan?WT/ACC/JOR/8
Page71
Answer:
Prior approval isnotrequired.
Telecommunication Regulatory Commission (TRC) sends aperiodical report totheCustoms
Department including alistforallterminal equipment which isapproved byTRC. Thisistofacilitate
theprocess ofapproval foranyonetravelling withanyoftheseproducts. Anyperson holding aproduct
within thatlistdoesnotneedtocontact TRC forapproval.
Question 187.
Why isprior approval required fortelecom equipment? Isthere adifference between Jordanian
technical specifications andother international standards forsuchequipment?
Answer:
Toensure thatequipment connected toPSTN system willneither adversely affect anyPSTN
system norinterface withtheservice available totheusers ofPSTN system andtoprotect theusers
from thehazards thatmayarisefrom theconnection oftheequipment tothatsystem especially ifit
doesnotmeettherequired standards.
Jordanian technical specifications aresimilar tomostInternational standards suchasFCC, BSI.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
1. Bilateral orPlurilateral Agreements Relating toForeign Trade inGoods andTrade in
Services
Question 188.
Please listthecountries orother economic regions thatreceive preferential trade treatment of
anytype, including investment andtrading rights.
Answer:
Preferential treatment given bythebilateral agreement withthefollowing countries:
- Egypt:
themain objective oftheagreement istocreate afreetrade areabytheyear2005. Customs
duties andother equivalent taxes willbereduced by10percentannually onalltariff lines
except forsome 48products comprising 1,450 six-digit tariff lines which aretemporarily
excludedfromtheAgreement.Agriculturalproductsalsofallunderthereductionoftenpercent
annually withtheexception ofanumber offruits andvegetables which aresubject tospecific
seasonal restrictions;
- Qatar:
thebilateral agreement exempts theagricultural products andthenatural resources exchanged
between thetwocountries fromcustoms duties. Inaddition tothat,theagreement stipulates
thattheJointCommittee shallagree ontwolistsofindustrial products tobeexempted from
customs duties;WT/ACC/JOR/8
Page72
- Oman:
itprovides freemovement fortheagricultural andlivestock products andfishproducts;
- Kuwait:
itprovides forfreemovement foragricultural andlivestock products. Customs duties and
other equivalent taxeshavebeenreduced by20percentannually onaspecific listofindustrial
products. Thislistenjoys dutyfreemovement now, buttrading isextremely limited now;
- Bahrain:
fullfree-trade areaagreement;
- Saudi Arabia:
itgrants dutyfreetreatment forsome 166products;
- Libya:
itprovides freemovement forallproducts originating inbothcountries;
- Sudan:
itgrantscustomsdutiesexemptionsforagricultural,livestockandindustrialproducts,buttrading
isextremely limited;
- Syria:
itgrants customs duties exemptions foragricultural, natural resources andindustrial products;
- Palestinian National Authority:
itgrants dutyfreeaccess fortwolistswithatotalof60products originating inthePalestinian
Territories. Itcovers mainly processed industrial supplies, parts andaccessories forcapital
goods, consumer semi-durable andfoodforhousehold consumption;
- Israel:
itgrants a10percenttariffreduction for66products originating inIsrael. Thislistcomprised
mainly processed industrial supplies, capital goods andparts forcapital goods, consumer
semi-durable andfoodforhousehold consumption.
Inaddition, itisworth mentioning thatJordan lately initiated dialogue withmost ofthese
countries toendprotocol trade andmove towards freetrade onbilateral basis.
Thesecond partofthequestion concerning Investment Agreements:
Jordan signed bilateral Investment Promotion andProtection Agreements withthefollowing
countries:WT/ACC/JOR/8
Page73
Germany, France, Turkey, Switzerland, Malaysia, Romania, theUnited Kingdom, Tunisia,
Yemen, Egypt, Italy, Algeria, Indonesia andtheUnited States ofAmerica.
Question 189.
Please confirm Jordan 'scurrent status vis-à-vis implementation oftheArab League boycott of
trade withIsrael, withreference totheprimary, secondary, andtertiary aspects ofthisprogramme.
Answer:
LawNo.11for1995 “Economic Boycott andProhibition ofDealing withtheEnemy ”inits
Article 9cancelled thethreeLaws andtheiramendments thatboycotted Israel andprohibited dealings
andtrading withIsrael.
Question 190.
Werefer toJordan ’sbilateral agreements with Arab countries, under which customs duty
exemptionsaregrantedtospecificgoodsaccordingtotradeprotocols(page31ofWT/ACC/JOR/2).
CouldJordanprovidedetailsofanyplansthatitmayhavetoeliminatethecustomsdutyexemptions
which remain inforce under itsbilateral trade protocols?
Answer:
Jordan lately initiated discussions withmostofthese countries toputanendtoprotocol trade
andmore towards freetrade onabilateral base.
2. Economic Integration, Customs Union andFree-Trade Agreements
Question 191.
What isthestatus oftheJordan/European Communities partnership agreement negotiation?
Answer:
Thispartnership agreement shallreach intoafree-trade areaafter12years from thedateof
entry intoforce. Itprovides forentry ofallJordanian industrial products andnatural resources duty
freestatus intotheEuropean Communities 'market. European Communities 'industrial products shall
haveaccess totheJordanian market based onannual dutyreduction overthe12years implementation
period.
Theagreement willexclude some products originated intheEuropean Communities fromthe
preferential treatment. Agricultural products willhave adifferent setofmeasures forentry into
European Communities Market. Theagreement covers tradeinservices aswellassocial andcultural
affairs andfinancial cooperation.
Question 192.
Please describe more fully thepreferential arrangements withother Arab countries, especially
thescope andnature ofthepreferences, bothwithregard totariff duties andwithother restrictions.
Please elaborate ontheproduct coverage forthese agreements. Dothese agreements cover
substantially alltrade?WT/ACC/JOR/8
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Answer:
Seeanswer toquestion 188. Inaddition, these agreements donotgovern alltrade between
Jordan andtheother Arabcountries party tothebilateral agreement unless itisafree-trade agreement.
Question 193.
Please outline thecurrent status ofnegotiations forafree-trade areaagreement withIsrael.
Answer:
JordanandIsraelconcludedabilateraltradeagreementon25October1995basedonpreferential
treatment forgoods andproducts originating inbothcountries. Thefree-trade areaagreement was
notonthenegotiation agenda anditisnotdecided yetwhen itwillbediscussed between thetwosides.
Question 194.
Wehave anumber ofquestions inrelation totheAgreement forFacilitating Trade Exchange
Among Arab States (page 31ofWT/ACC/JOR/2):
(a) IstheAgreement fully implemented? Ifnot,when willthisoccur?
Answer:
TheAgreement isnotfullyimplemented.
TheArab League/Economic andSocial Council (ESC) isexecuting thedecision thathasbeen
agreed upon intheArab Summit heldinJune1996, toestablish afree-trade area. Tocarry outthis
decision, theESC hadreviewed theAgreement inorder toreplace itbythenewfreetrade area
agreement. Infactthework onthenewFTAisunder way.
(b) What proportion ofJordan ’strade withtheother parties isexempted from customs duties
andtaxes?
Answer:
Since theAgreement isnotimplemented bymostmembers, itisdifficult todefine thevolume
orpercentage oftradebetween Jordan andtheother Arabcountries thatbenefit fromtariffexemptions
andreductions.
(c) Arethere anyproduct areas which areexempted from coverage bytheAgreement?
Answer:
Thefollowing arethetariff lines byCCCN benefiting from tariff exemptions under the
Agreement forFacilitating andDeveloping Trade Exchange Among Arab Countries.
A. Agricultural andlivestock products:
1. Chapter 1.01-03 (Pigs) tobeexcluded.
2. Chapter 2.02.05 (Pork meat) tobeexcluded
3. Chapter 3.Thewhole chapter.
4. From chapter 4.04.01 -04.06.WT/ACC/JOR/8
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5. Chapter 5.Thewhole Chapter.
6. Chapter 6.Thewhole chapter.
7. Chapter 7.Thewhole Chapter.
8. From chapter 8.08.01-08.09&08.11-08.13.
9. From chapter 9.09.01, 09.04 and09.09.
10. Chapter 10.Thewhole chapter.
11. From chapter 11.11.01-11.07 and11.09.
12. Chapter 12.Thewhole chapter.
13. From chapter 13-13.02.
14. Chapter 14.Thewhole chapter.
15. From chapter 15-15.02, 15.03, 15.05,15.06, 15.07.
B.
1. Chapter 25
25.01
From 25.02
25.03
25.04
25.05
25.06
25.07
25.08
25.10
25.11
25.12
From 25.13
From 25.14
From 25.15
25.16
25.17
25.18
From 25.19
From 25.20
25.21
25.22
25.24
25.28
From 25.26
25.27
2. Chapter 26.Thewhole chapter.
3. From chapter 27: 27.01- 27.04
4. From chapter 40: 40.01 and40.04
5. From chapter 41: 41.01 and40.09
6. From chapter 43: 43.01.
7. From chapter 44: 44.01 -44.05 and44.12
8. From chapter 45: 45.01.
9. From chapter 50: 50.01-50.03
10. From chapter 53: 53.01-53.04
11. From chapter 54: 54.01-54.02
12. From chapter 55: 55.01-55.04
13. From chapter 57: 57.01WT/ACC/JOR/8
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grapes From 57.02 andJutefrom 57.03.
14. From chapter 73: 73.01-73.05.
15. From chapter 74: 74.01-74.02.
16. From chapter 75: 75.01.
17. From chapter 76: 76.01.
18. From chapter 77: 77.01.
19. From chapter 78: 78.01.
20. From chapter 79: 79.01.
21. From chapter 80: 80.01.
22. From chapter 81: alltherawmaterials inthischapter.
23. Chapter 47Thewhole chapter.
Concerning theindustrial products, thefollowing products (tariff lines) areagreed tobeexempted from
customs duties andother duties:
1. Capsules Gelatin 19.07
2. Preparations ofKinds usedinanimal 23.07
3. Gypsum 25.20
4. Sulphonitric Acids 28.08
5. Caustic Soda 28.17
6. Ethylene 29.01
7. Methanol 29.04
8. Antisera andVaccines 30.02
9. Medicaments fortherapeutic orprophylactic uses 30.03
10. Ammonium Sulphate 31.02
11. Urea 31.02
12. Plastic Granules 39.01
13. Polypropylene 39.02
14. Polystyrene 39.02
15. Cotton Yarns andMixed 55.05/55.06.
16. Rock wool 68.07
17. Ceramic Pipes Conduits Guttering andpipefittings 69.06
18. Float Glass andSurface Ground orPolished
Glass insheets 70.05/70.06
19. Electrical Wires andCables 85.23
20. Medical Syringes (Plastic) 90.17
(d) Istrade between Jordan andtheother parties subject toquotas, bansandother quantitative
restrictions, orarethere exemptions from suchmeasures under theAgreement?
Answer:
TheAgreement eliminates allthenontariff measures, quotas, bansandother quantitative
restrictions.
(e) What aretheadditional exemptions thatarecurrently being discussed? Why willthese
besubject todutyreductions rather thandutyexemptions?
Answer:
Seeanswer topart(a)above.WT/ACC/JOR/8
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(f) Arethere anyplans toextend theAgreement tonewmembers?
Answer:
Seeanswer topart(a)above.
(g) Does theAgreement cover onlygoods, ordoesitalsocover trade inservices? Arethere
anyplans toextend ittocover services?
Answer:
There arenospecific provisions intheAgreement covering trade inservices.
(h) Arethere plans thattheAgreement should beconverted toacustoms union?
Answer:
Seeanswer topart(a)above. Inaddition tothatandinitsArticle 8,paragraph 1,theAgreement
stipulates thatallthecountries members totheAgreement should negotiate imposing minimum unified
tariff levelontheimported products from other countries.
(i) What provisions arethere intheAgreement inrelation toexport restrictions andexport
subsidies?
Answer:
Itdoes notmention theexport subsidies. Noexport restrictions butitdoes restrict the
re-exporting.
(j) Does Jordan consider theAgreement tobeinconformity withArticle XXIV oftheGATT
and,ifrelevant, Article VoftheGATS?
Answer:
(a) ThisAgreement isleading totheformation ofafree-trade area.
Given thisfact,theAgreement fallswithin theprovisions oftheGATT anddoesnotdeviate
from Article I(MFN), forthefollowing reasons:
- Article I,paragraph 5reads “Theprovisions ofparagraph 1shallnotapply topreferences
between thecountries formerly apartoftheOttoman Empire anddetached from iton
24July1923”.Most ofthecountries parties totheAgreement arecountries formerly apart
oftheOttoman Empire.
- Article XXIV, paragraph 5reads “Accordingly, theprovisions ofthisAgreement shallnot
prevent, asbetween theterritories ofthecontracting parties, theformation ofacustoms union
orfree-trade areaortheadoption ofaninterim agreement necessary fortheformation ofa
customs union orofafree-trade area”.
Tothisend,thenewFree-Trade Area Agreement which isunder process toreplace the
Agreement Facilitating andDeveloping Trade Exchange Among Arabcountries willbenotifiedWT/ACC/JOR/8
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tothemembers when thefinalagreement between theArab States isreached, inaccordance
withArticle XXIV paragraph 7(a)oftheGATT.
- Enabling clause permits developing countries togrant preferences toeachother without any
regard toArticle IandArticle XXIV. Given that,most ofArab countries areparties tothis
Agreement arecategorized tobedeveloping countries andtherestofthese countries are
categorized tobeleastdeveloped countries.
(b) There arenospecific provisions intheAgreement covering trade inservices.
Question 195.
Werefer tothevalue ofJordan ’simports from theworld inthemostrecent three years forwhich
trade statistics areavailable, andtothevalue ofJordan ’simports from members oftheAgreement
forFacilitating andDeveloping Trade Exchange Among Arab States inthose years.
(a) What percentage ofthevalue ofJordan ’simports from theworld wasrepresented by
imports from members oftheAgreement forFacilitating andDeveloping Trade Exchange
Among Arab States?
Answer:
Duringtheyears1993-1995Jordan’simportsfromthemembersoftheAgreementforFacilitating
andDevelopingTradeExchangeAmongArabCountries(AFDTE)represented19percentto22percent
from itstotalimports asshown inthetablebelow.
Ontheother handitsdomestic exports tothese countries inproportion toitstotaldomestic
exports ranged between 37percentto43percent.
Jordan 'sTrade withtheMembers oftheAgreement
forFacilitating andDeveloping Trade Exchange Among Arab Countries
(inJDmillion)
1993 1994 1995
1- Total Imports 2454 2362 2590
2- Imports from AFDTE members 468 491 573
3- (2over1,percentage) 19% 21% 22%
4- Total Export 691 794 1004
5- Exports toAFDTE members 253 318 433
6- (5over4percentage) 37% 40% 43%
(b) What percentage ofthevalue ofJordan ’simports wasrepresented byimports which had
entered onapreferential basis (whether dutyfreeoratlower rates ofdutythantherates
imposed onimports from third countries) under theprovisions oftheAgreement for
FacilitatingandDevelopingTradeExchangeAmongArabStateswhichwereinforceduring
those years.WT/ACC/JOR/8
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Answer:
Itisdifficult todefine whatpercentage ofthevalue ofitsimports fromorexports tomembers
were concluded onpreferential basis. Though itisnotexpected tobehighastheAgreement isnot
fullyimplemented bythemember countries.
Question 196.
Wewould appreciate details ofJordan ’splans tonegotiate anagreement with the
European Communities. Wewould alsoappreciate details ofanyother free-trade areas orcustoms
unions thatJordan isconsidering. Foreachofthese could Jordan advise:
- details oftheintended product coverage attheendoftheimplementation period;
- details oftheexempted areas within theagreement;
- details oftheareas inwhich preferential trade isexpected tobecompletely dutyfreeat
theendoftheimplementation period;
- when thenegotiations areexpected tobeconcluded;
- theamount oftimethatisexpected tobetaken tofully implement theagreement; and
- whether theagreement istocover trade inservices aswellasgoods?
Answer:
Thispartnership agreement shallleadtoafree-trade areaafter12years fromthedateofentry
intoforce. Itprovides forentry ofallJordanian industrial products andnatural resources dutyfree
status intotheEuropean Communities 'market. TheEuropean Communities 'industrial products shall
haveaccess totheJordanian market based onannual dutyreduction overthe12years implementation
period. However, thescenarios ofdutyreduction havenotbeenfinalized yet.
Theagreement willexclude some products originating intheEuropean Communities from
preferential treatment.
AgriculturalproductswillhaveadifferentsetofmeasuresforentryintoEuropeanCommunities'
market. Theagreement covers trade andservices aswellassocial andcultural affairs andfinancial
cooperation.WT/ACC/JOR/8
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ANNEX 4
Information onImplementation andAdministration oftheCustoms Valuation Agreement
1. Questions Concerning Article 1
(a) Sales between related persons
(i) Aresales between persons subject tospecial provisions?
According tothecurrent Customs Lawtheprice agreed upon must notbeaffected byany
commercial, financial orother relationships between theseller andhispartner other thanthose arising
fromthesaleitself. TheLawalsodefines thebusiness partners asanytwopersons ofwhom onehas
interest inthebusiness oftheother, orwhen bothhaveajointinterest inanybusiness, orwhen some
thirdperson hasaninterest inthebusiness ofanyofthem, whether these twopartners were natural
orphysical persons. Theproposed Custom Draft Lawwillinclude rules similar 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 oftheabove-mentioned grounds in
writing iftheimporter sorequests? (Article 1.2(a))
Thecurrent Customs Lawdoesnotinclude anysuchprovision.
(iv) How hasArticle 1.2(b) been implemented?
ThecurrentCustomsLawdoesnothaveanysuchprovision.ButtheprovisionsofArticle1.2(b)
areincorporated intotheCustoms Draft Law.
(b) Price oflostordamaged goods:
There arenoprovisions orpractical arrangements intheJordanian customs lawregarding the
valuation oflostordamaged goods.
2. How hastheprovision ofArticle 4toallow theimporter anoption toreverse theorder
ofapplication ofArticles 5and6been implemented?
Such aprovision isincluded intheCustoms Draft Law.
3. How hasArticle 5.2been implemented?
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.WT/ACC/JOR/8
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4. How hasArticle 6.2been implemented?
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?
TheCustoms Draft Lawincludes anarticle stipulating thattheimporter shallbeinformed in
writing, uponhisrequest, ofthedetermined value inaccordance withArticle 7andofthemeans used
todetermine thisvalue.
(c) Aretheprohibitions found inArticle 7.2delineated?
Theinstructions thatwillbeissued, oncetheLawispassed bythelegislative authority, will
include alistofalltheprohibitions referred toinArticle 7.2.
6. Howhavetheoptions 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.
8. What steps have been taken 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 areopen toimporter oranyother person?
IntheCustoms Draft Lawtheimporter orhisrepresentative isguaranteed therightofappeal
oncustoms valuation without being subject topenalty, infront ofanappeal committee composed of
senior customs officials intheinitial stage andtheninfront ofCustoms Court.
(b) How ishetobeinformed ofhisright tofurther appeal?
Therightoffurther appeal isguaranteed bytheLaw.WT/ACC/JOR/8
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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 tointherules ofimplementation 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) How istheobligation ofArticle 13(last sentence) being dealt with intherespective
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 been laiddown?
No.
12. Questions concerning Article 16:
(a) Does therespective national legislation contain aprovision requiring customs authorities
togiveanexplanation 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 have theInterpretative Notes oftheAgreement been included?
TheCustoms Draft Lawcontains theprovisions oftheGeneral Noteconcerning sequential
applicationofvaluationmethodsanddefinitionsofsomeexpressions.AsfortheapplicationofArticle7,
itwillbedonethrough instructions published intheOfficial Gazette. Theother notes willbeissued
asspecial communiques.
14. How have theprovisions oftheDecision of26April 1984 ontheTreatment ofInterest
Charges intheCustoms Value ofImported Goods (Val/6/Rev.1) been implemented?WT/ACC/JOR/8
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Thiswillbetaken careofatalaterstagebypublishing theDecision firstandthenimplementing
it.Thisaction willapply toother decisions.
15. Forthose countries applying paragraph 2ofthedecision of24September 1984 onthe
Valuation ofCarrier Media Bearing Software forData Processing Equipment (Val/8),
howhave theprovisions ofthisparagraph been implemented?
Seeanswer forquestion 14above.