RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/JOR/6 
23 April 1999 
 (99-1658) 
Working Party on the 
Accession of Jordan Original:   English 
 
 
ACCESSION OF THE HASHEMITE KINGDOM OF JORDAN 
 
Elements of a Draft Report  
of the Working Party on the Accession of Jordan  
Introduction  
1. The Government of the Hashemite Kingdom of  Jordan applied for accession to the General 
Agreement on Tariffs and Trade (GATT 1947) in January 1994 (document L/7378).  At its meeting 
on 25 January 1994, the GATT 1947 Council of Representatives established a Working Party to 
examine the application of the Government of Jordan to accede to the General Agreement under 
Article XXXIII of the General Agreement.  Followi ng the conclusion of the Uruguay Round, Jordan 
requested accession to the World Trade Organizat ion (WTO) under Article XII of the Marrakesh 
Agreement establishing the World Trade Organizatio n.  In accordance with the decision adopted by 
the WTO General Council on 31 January 1995,  the existing GATT 1947 Accession Working Party 
was transformed into a WTO Accession Working Part y.  The terms of reference and the membership 
of the Working Party are reproduced in document WT/ACC/JOR/5/Rev.3. 
2. The Working Party met on 28 October 1996; 4 July 1997;  22 July 1998;  and …. under the 
Chairmanship of H.E. Mr. K. Kesavapany (Singapore). 
Documentation provided  
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Jordan, the questions s ubmitted by Members on the foreign trade regime of 
Jordan, together with the replies thereto, and othe r information provided by the authorities of Jordan 
(L/7533, WT/ACC/JOR/2, WT/ACC/JOR/3 a nd Add.1, WT/ACC/JOR/8 and Add.1, 
WT/ACC/JOR/9, WT/ACC/JOR/13, WT/ACC/JO R/14, WT/ACC/JOR/18; ......), including the 
legislative texts and other documentation listed in Annex I. 
Introductory statements  
4. In his introductory statement in 1996, th e representative of Jordan  said that Jordan was WT/ACC/SPEC/JOR/6 
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 approaching the next century in an environment ra dically different from that of its early decades of 
development.  In the 1970s and 1980s, Jordan had inv ested heavily in developing its human resources, 
relying on  high levels of extern al financing and remittances of Jord anians working abroad.  Jordan's 
inability to meet its external obligations had led to an economic stabilization programme being 
introduced at the end of the 1980s.  The stabilizat ion policies had been successful, even with the 
return of more than 400,000 expatriate workers.  The Government had pursued an ambitious reform 
agenda, including fiscal and trade reform, since the early 1990s to stabilize the economy, improve 
efficiency and broaden the rôle of the private sector .  The current account deficit had declined sharply 
reflecting solid export growth, improved earnings fr om tourism and increased worker remittances.  
Jordan's medium-term reform programme aimed at su staining annual growth of real GDP at minimum 
6 per cent and export growth of around 10 per ce nt, rates of inflation in line with those of 
industrialized countries, current account deficits be low 3 per cent of GDP and accumulation of foreign 
exchange reserves. 
5. Economic reform was geared towards liberali zation and dismantling of all barriers to trade, 
investment, labour, capital, payments and services.  The Government had drafted a customs law based 
on international best practice.  Actions to improve  customs clearance included streamlining of the 
temporary entry and duty drawback regime, pre-ship ment certification, a "green channel" for easy 
clearance of imports and computerization, upgrading and training of customs staff.  The Government 
had also taken initiatives to review and revise th e main economic laws governing economic activity, 
and established a Privatization Implementation Office to coordinate various privatization initiatives 
and ensure transparency of the process.  Domestic  reforms were consistent  with the direction of 
multilateral reform, but Jordan had not waited for worl d-wide liberalization to take decisions deemed 
in its own best interest. 
6. A strong multilateral trading system was vital to  Jordan, and Jordan w as preparing to link its 
economy with the global economy.  Jordan's economic  cooperation and trade relations with the world 
community were characterized by a sincere commitmen t to obligations towards its partners.  Some 
WTO obligations would entail constraints on polic ies and regulations affecting certain sensitive 
industries.  Jordan was ready to negotiate a fair  deal that would accommodate the interests of all 
parties concerned within the spirit of WTO multilateral agreements, and hoped for a successful 
accession which would take into account Jordan's s ituation as a developing country with a small 
economy.  Accession to the WTO would give Jordan the chance to work along with member countries 
to strengthen the multilateral trading syst em to the advantage of all members.  WT/ACC/SPEC/JOR/6 
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 7. In their opening remarks, members of the Wo rking Party welcomed the request from Jordan 
to accede to the WTO.  Jordan's accession would reinforce the univer sality of the WTO.  Jordan was 
commended for its efforts to overcome economic di fficulties, and accession to the WTO was expected 
to assist in consolidating the reforms.  Members looked forward to close co-operation with Jordan 
with a view to concluding the accession process succ essfully as quickly as possible.  Noting Jordan's 
wish to avail itself of certain transitional arrange ments, some members supported this request while 
other members stated that such requests would be  given sympathetic consideration and decided case-
by-case on the basis of substantiated needs. 
8. The Working Party reviewed the economic polic ies and foreign trade regime of Jordan and 
the possible terms of a draft Protocol of Accessi on to the WTO.  The views expressed by members of 
the Working Party on the various aspects of Jordan 's foreign trade regime, and on the terms and 
conditions of Jordan's accession to the WTO ar e summarized below in paragraphs 9 to 194. 
ECONOMIC POLICIES 
Monetary and fiscal policy  
9. The representative of Jordan said that current economic policies aimed at fiscal and monetary 
stability.  The public budget deficit had been redu ced through subsidy cuts, ex penditure restraint and 
increasing revenue.  Food subsidies had been reduced , the domestic price for petroleum derivatives 
increased, and a programme to improve the perform ance of loss-making public enterprises such as 
Royal Jordanian Airlines, Public Transportatio n Corporation and the Agricultural Marketing 
Organization had been implemented.  Draft legisla tion had been submitted to the Council of Ministers 
to remove all privileges enjoyed by the Housing Bank,  consistent with mainta ining its obligations to 
low-income housing.  The Housing Bank had beco me a commercial bank and no longer enjoyed any 
privileges.  Food subsidies had been eliminated recently, and Royal Jordanian Airlines and Public 
Transport Corporation were undergoing privatization. 
10. On the revenue side, an expanded tax base was accompanied by more efficient tax collection, 
including the introduction of a general sales tax (G ST), replacing the former consumption tax.  The 
system of income tax implemented through the Inco me Tax Law (No. 14 of 1995) taxed profits or 
gains earned or accrued in Jordan on the basis of annual self-assessment.  Tax rates ranged from 5 to 
30 per cent for individuals and 15 to 35 per cent fo r companies.  Exempted from income tax were 
non-profit welfare, cultural, educational, sports or health institutions and coop erative societies;  land 
invested in agriculture or poultry, cattle, fish or  bee breeding;  capital gains earned on equipment, 
apparatus, land, real estate, bonds and shares;  sa laries paid to non-Jordanian diplomatic envoys;  WT/ACC/SPEC/JOR/6 
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 salaries and wages paid by non-operating foreign co mpanies registered in Jordan according to the 
Companies Law;  interest due on deposits of nati onal and foreign persons and companies;  income 
accrued from patents, copyrights or rewards;  inco me specified in agreements on the prevention of 
double taxation;  and income explicitly exempted by the Investment Promotion Law (No. 16 of 1995) 
and by means of bilateral or multilateral agreements .  The tax exemptions applied equally to foreign 
enterprises. 
11. Monetary policy aimed at monetary stability to  ensure price stability and adequate financing 
of economic activity.  The objective was achieved by controlling the money supply while reducing 
monetary control restrictions;  consolidation of fo reign currency reserves;  continued liberalization of 
interest rates;  the establishment of a deposit insura nce corporation;  and Ce ntral Bank supervision of 
all financial institutions. 
Foreign exchange and payments
 
12. The representative of Jordan said that the nati onal currency - the Jordan dinar (JD, equal to 
1,000 fils) - had been pegged to the US dollar at th e official buying and selling rates of JD 0.708 and 
0.710, respectively, since 23 October 1995.  Jo rdan had formally accepted the obligations of 
Article VIII, sections 2, 3 and 4 of the Articles of  Agreement of the International Monetary Fund as 
from 20 February 1995.  Thus, foreign exchange pa yments for current account transactions were not 
restricted in Jordan.  Concerning capital transacti ons, the representative of Jordan said that inward 
transfers of capital were not restricted, but outward transfers were subject to approval by CBJ.  
Transactions pertaining to foreign investment had been completely liberalized.  The CBJ allowed 
capital transfers to Arab countries on a reciprocal basis.  Residents we re allowed to carry or transfer 
up to JD 35,000 in foreign exchange to meet current  payments for invisibles such as travel, education, 
medication, pilgrimage, residence abroad and fa mily assistance without prior approval from the 
Central Bank.  Applications for amounts in excess of  JD 35,000 would be considered positively in the 
light of the applicant's needs.  As of 199 7, outward transfers were fully liberalized. 
13. Forward contracts in major currencies against the Jordan dinar were permitted for specified 
commercial transactions, including commodity imports , provided the authorized banks covered such 
operations abroad.  Each dealer's forward transact ions were subject to quantitative limits, but the 
Central Bank of Jordan (CBJ) could offer a forward exchange facility in respect of forward exchange 
cover provided by Jordanian banks for corporations and projects of vital national interest.  Foreign 
exchange regulations had been modified to pe rmit banks to execute asset-swap operations from 
foreign currencies into Jordania n dinars for all customers.  WT/ACC/SPEC/JOR/6 
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 14. Exchange permits were re quired for goods subject to impor t licensing, and were granted 
automatically once the import licence had been obtai ned.  Exchange permits were issued by the 
Foreign Exchange Control Department of the Centra l Bank of Jordan against a fee of 0.1 per cent to 
recover related administrative costs.  Although exch ange permits were no long er required, banks still 
collected the 0.1 per cent fee on some categories of transfers for payment to the Central Bank.  The 
fee was being revised to narrow the categories of tran sfers subject to it with a view to its eventual 
elimination.  The fee was not applied to permits  issued for government departments and certain 
approved institutions and individual permits of less than JD 300. 
15. He confirmed that private sector firms coul d borrow abroad freely and that no government 
approval was necessary.  Export proceeds were not s ubject to any repatriation requirements.  There 
were no taxes or subsidies on purchases and sales of fo reign exchange;  the fees and charges for such 
transactions were determined freely in the market. 
Investment regime  
16. The representative of  Jordan said that the Investment Promotion Law No. 16 of 1995 had 
superseded the Encouragement of Investment Law No. (11) for 1987 and the Arab and Foreign 
Investment Law No. (27) for 1992.  A Higher Coun cil of Investment Promotion had been formed 
under the Chairmanship of the Prime Minister, and an "Investment Promotion Corporation" was entrusted with the implementation of the law. 
17. Business enterprises were incorporated in Jo rdan either as General Partnership and Limited 
Partnership Companies, Limited Liability Companies, Limited Partnership in Shares or Public 
Shareholding Companies.  Applications for re gistration were submitted to the Controller of 
Companies at the Ministry of Industry and Trade.  For general and limited partnership companies, the 
application should be accompanied by the original partnership agreement and a statement signed by 
each of them;  for limited liability companies the company's Memorandum and Articles of 
Association, on the approved forms for this purpose, should be included.  The statement should be 
signed before the Controller or any person authorized by him, a Notary Public or a licensed lawyer.  
For general and limited partnership companies the registration fee amounted to JD 10 plus 0.3 per 
cent of the company's capital in revenue stamps an d JD 10 for publication of the registration in the 
Official Gazette.  The fees for limited liability comp anies amounted to 0.5 per cent of the company's 
capital - 0.2 per cent for registration and 0.3 per cent fo r revenue stamps - and a JD 15 publication fee.  
An application for registration as a public share holding company was accompanied by the company's 
Articles of Association, the Memorandum of Associa tion, the names of the promoters of the company 
and the names of the promoters' commitment conduc ting the formation procedures.  The Articles of WT/ACC/SPEC/JOR/6 
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 Association and the Memorandum of Association we re signed before the Controller or any person 
authorized by him, a Notary Public or a licensed lawyer.  The fees totalled 0.6 per cent of the 
company's capital (one half for registration, the other half for revenue st amps) and JD 75 to 100 for 
publication in the Official Gazette.  Foreign in vestors registered their companies as Jordanian 
companies with the Companies' Registrar at the Mi nistry of Industry and Trade.  A branch of a 
foreign company would need to submit to the C ontroller of Companies a copy of its Articles of 
Association and Memorandum of Association, as well as written documentation certifying that the 
company had been approved by the concerned authority in Jordan for operating in Jordan.  Registration fees amounted to JD 1,000 for a co mpany with capital less than JD 1 million, and 
JD 2,000 for larger companies. 
18. Tax incentives were provided by virtue of the Investment Promotion Law for any project 
related to industry, agriculture, maritime transport and railways, hospitals and hotels.  The Council of 
Ministers could add any other sector in accordance w ith the Kingdom's needs.  In January 1997, the 
Council of Ministers had added leisure and recrea tional compounds and exhibition centres to the list 
of projects benefitting from tax incentives provided under the Investment Promotion Law.  Imported 
fixed assets and spare parts (up to 15 per cent of  the value of the fixed assets utilising these spare 
parts) for the establishment or subsequent expansi on of a project were exempt from import duties and 
other import fees and charges (except municipal fees),  provided that the items were imported into the 
Kingdom or used in a project within 10 years from the commencement date of the work or 
production.  The exemption would also cover any in crease in the value of the fixed assets resulting 
from price increases, freight charges or changes in exchange rates.  Hotels and hospitals enjoyed 
further exemptions from fees and taxes on purch ases of furniture and supplies for renewal or 
renovation once every seven years. 
19. Reductions in income and social services tax es to the level of 25, 50 or 75 per cent were 
granted depending on the nature of the activity and the location of the project.  The reduction could 
amount to 100 per cent in certain areas approved by the Council of Ministers.  The exemptions from income and social services tax were applicable fo r 10 years, starting from the date of commencement 
of works (services projects) or production (manufacturing projects).  An additional exemption, not 
exceeding four years, could be granted if the proj ect was expanded, developed or modernized with a 
resulting increase in production capacity (one year for each increase of not less than 25 per cent). 
20. The Investment Promotion Law did not di fferentiate between dom estic and non-Jordanian 
investors, and no preferences were linked to expor t performance or domestic content requirements.  
Article 24 of the Investment Promotion Law stipulat ed that non-Jordanian investors investing in any  WT/ACC/SPEC/JOR/6 
 Page 7 
 
 
 project governed by the Law should be afforded the same treatment as Jordanian investors.  The Law 
guaranteed foreign investors the transfer of profits  and repatriation of the foreign capital invested.  
Foreign investment was restricted in certain sector s.  According to the Investment Regulation No. 39 
for 1997, issued in accordance with Article 24 of the Investment Promotion Law No. 16 of 1995, non-
Jordanian ownership could not exceed 50 per cent in any project or economic activity in the sectors of 
construction, trading and trade services, and mini ng.  The Investment Promotion Corporation was 
preparing legislation to define cl early the scope of mining, construc tion, and trade services covered by 
the foreign equity restrictions.  Non-Jordanian in vestment in securities listed on the Amman Financial 
Market was subject to a provision (Article 6) th at payment be made from the sale of convertible 
foreign currency.  Non-Jordanian ownership in a public shareholding company could not exceed 
50 per cent unless the percentage of foreign ownershi p was higher at the time of closing of the share 
subscription, in which case the maximum limit would be fixed at that percentage.  The amount of non-
Jordanian investment in any project should be mi nimum JD 50,000, except in public shareholding 
companies.  
State ownership and privatization  
21. The representative of Jordan said that Jordan's economic strategy called for a much larger rôle 
of the private sector in the economy.  The Government aimed at reducing its own involvement in the production and distribution of goods  and services.  Some sectors previously reserved for public 
investment such as telecommunications and power ge neration were being opened to private investors, 
and new public-private partnerships  were being forged.  Rapid impl ementation of the privatization 
programme in a transparent manner was a key objective of the Government. 
22. The Council of Ministers had appointed an in terministerial committee, headed by the Prime 
Minister, to steer the overall privatization plan.  A Privatization Implementation Unit, located in the 
office of the Prime Minister, assisted in the priv atization process, and the World Bank supported the 
institutional capacity to implement the programme through the Institutional Development Fund (IDF).  
The main responsibilities of the Privatization Implementation Unit included: 
(a) coordination of the preparation of divestiture transactions; 
(b) managing the teams of technical experts and short-term external advisers; (c) managing the marketing efforts of enterprises undergoing divestment; (d) negotiations with stockholder groups; 
(e) execution of transactions;  and  
(f) dissemination of information on progress in privatization. WT/ACC/SPEC/JOR/6 
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23. The privatization programme aimed at increasing enterprise efficiency.  The operational 
performance of some public enterprises was expect ed to improve by according greater autonomy to 
enterprise management in administrative and investme nt decision, and the sale of shares to reputable 
strategic investors.  Substantive steps towards eventu al privatization had been taken in the energy and 
telecommunication sectors.  The Government inte nded to restructure public enterprises in the 
transport sector.  The Government had decided that  the first phase of the programme would involve 
the privatization of the Jordan Telecommunicati on Corporation (JTCC), the Jordan Electricity 
Authority (JEA), Irbid District Electricity Company (IDECO), Jordan Electric Power Company 
(JEPCO), Aqaba Railway Corporation (ARC), Jordan  Cement Factories Company (JCFC), Public 
Transport Corporation (PTC) and the Jordan Tour ism and Spa Complex Co. at Zerqa Mai'n.  The 
Government would also sell its minor stakes (less than  5 per cent) in public shareholding companies 
and partially dispose of other shareholdings such  as those in Arab Pot ash Co. and the Jordan 
Phosphate Mines Co. (under study). 
24. The representative of Jordan said that Jordan's privatization process was free from 
discriminatory practices or discretionary investment  authorizations.  Forei gners of all nationalities 
could participate in Jordan's privatization process within the legislation in force.  International 
consultants, investors and develope rs were invited to compete for bi ds related to privatization through 
local and international media. 
Pricing policies
 
25. The representative of Jordan said that his G overnment was removing pr ice controls gradually 
on certain commodities with a view to the eventual liberalization of all prices at the retail level.  
Jordan applied price and profitability control, as well as price cap control, on certain domestic and 
imported products. The products subject to controls are listed in Table 1. 
Table 1(a):  Controls on domestic products  
HS Code Product name 
PRICE CONTROL  
ex 0713.20 Chickpeas, seeds of a kind used for sowing 
ex 0713.40 Lentils, seeds for a kind used for sowing 
ex 1001 Wheat, seed of a kind used for sowing 
ex 1003.00 Barley, seed of a kind used for sowing 
ex 1214.90 
 Vetches and similar forage, seeds of a kind used for 
sowing animal feed. 
1001.10,  ex 1001.90 Wheat  WT/ACC/SPEC/JOR/6 
 Page 9 
 
 
 1101.00 Flour 
HS Code Product name 
ex 1905.90 Bread – Arabic, Tanouri, Taboun, Armenian, and 
Baladi 
ex 2302 Bran 
ex 2523.29 ex 2523.29 
ex 2523 
ex 2523 Cement, Portland , bagged 
Cement, Portland , not bagged 
Cement, Sulphate resistant, bagged 
Cement, Sulphate resistant, not bagged 
ex 2711.13 
ex 2710.00 
ex 2710.00 ex 2710.00 ex 2710.00 ex 2710.00 
2710.004 
2710.005 ex2714.90 ex 2714.90 ex 2710.00 Liquid gas Butane 
Leaded  (gasoline)  
Super  (gasoline) Unleaded  (gasoline) Jet Fuel (airplanes’ fuel) Kerosene 
Diesel 
Fuel oil Asphalt, w/o containers Asphalt, in containers Diesel for Ships 
ex 3002, ex 3003, ex 3004 Medicaments for Human, manufactured locally 
ex 2201.90 Water 
2716.00 Electrical Energy 
  
PROFITABILITY CONTROL  
ex 3002, ex 3003, and ex 3004 Medicine, Veterinary, manufactured locally 
  
 PRICE CAP 
ex 0401.30 Fresh Cow Milk 
ex 0403.10 Yogurt, in plastic container, produced from 100% 
fresh cow milk.  
ex 0403.90 Labaneh, in plastic container, produced from 100% 
fresh cow milk.  
ex 2005.90 ex 2005.90 ex 2005.90 ex 2005.90 
 
ex 2106.90 Houmos, 
Qudsieh, Fool, Musabaha, 
Falafel Sandwiches, and Falafel pieces, sold in 
unclassified restaurants 
 WT/ACC/SPEC/JOR/6 
Page 10  
 
 Table 1(b):  Controls on imported products
 
 
HS Code Product name 
PRICE CONTROL  
1001.10  ex 1001.90 Wheat 
  
PROFITABILITY CONTROL  
ex 3002, ex 3003, ex 3004 Medicaments for Human 
ex 3002, ex 3003, ex 3004 Medicaments, Veterinary 
  
PRICE CAP  
0204.21 
0204.22 
0201.10 
0201.20 0201.30 - Carcasses & half carcasses of sheep, fresh or chilled 
- Other cuts of sheep with bone in, fresh or chilled 
- Carcasses & half carcasses of bovine animals, fresh or chilled 
- Cuts of bovine animals with bone in, fresh or chilled - meat of bovine animals, boneless, fresh or chilled 
ex 1003.00 ex 1003.00 Barley , bagged  
Barley, loose 
26. A committee - comprising representatives of merchants and the Ministries of Supply and 
Agriculture - set prices based on costs, and allo wed a 17 per cent profit margin for wholesalers and 
retailers.  The same maximum profit margin applie d in case of similar imported products.  Revisions 
of the established prices could take place every si x months.  In most cases the revisions were 
requested by importers due to changes in import prices, for example, for wheat of bread-making 
quality.  The price controls had originally a ffected 66 food products.  In response to specific 
questions, he confirmed that prices of dried milk , sugar and rice were not fixed when imported by 
private enterprises.  Except for th e regular Jordanian loaf of bread, prices of all bakery and pastry 
products were determined freely by the market.  Price controls remained on locally-produced cigarettes, while prices for imported cigarettes had been liberalized. 
27. [Prices for utilities (electricity, water, solar heating and natural gas)  and petroleum products, 
except lubricants, were controlled to support low-inco me groups.  Electricity prices had recently been 
raised to rationalize the use of energy and increase the financial viability of electricity production.  
Water charges had also been increased, including the adoption of a progressive tariff for irrigation 
water, to rationalize use and ensure cost recovery for water and sanitation services.] 
28. A member noted that the use of price controls on imported chilled meat, but not on 
domestically-produced chilled meat, would appear to  violate the national treatment obligations of 
GATT Article III, and asked how Jordan intended to  bring this item into conformity with WTO 
requirements.  This member sought a commitment fro m Jordan that it would observe the provisions of 
Article III concerning the application of maximum pr ices to imports, with particular emphasis on the  WT/ACC/SPEC/JOR/6 
 Page 11 
 
 
 provisions of paragraphs 4 and 9, that Jordan w ould notify its current price controls on imports and 
domestic goods and services to the Working Party, a nd that any subsequent such controls will be 
published in an official journal for the information and review of traders. 
29. In reply, the representative of Jordan said th at Jordan intended to ensure conformity with 
national treatment with regard to the use of pric e cap for chilled meat and meat from imported live 
animals slaughtered in Jordan.  [The matter is curre ntly before the Council of Ministers.]  He added 
that Jordan did not intend to liberalize the pri ces of products remaining under price control before 
acceding to the WTO.  However, Jordan would ensure  that the price control mechanisms applied in 
Jordan be in conformity with Article I and III of the GATT 1994, and with the transparency 
requirements of the WTO.  Jordan would notify its  current price controls  on imports and domestic 
goods and services to the Working Party, and any subse quent such controls would be published in an 
official journal for the information and review of traders. 
Competition policy  
30. The representative of Jordan said that a draft Competition Law had been submitted to 
Parliament for review and approval.  An English translation of the law, once available, would be 
provided to the Working Party. 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
31. The representative of Jordan said that Jord an was a constitutional monarchy.  The King and 
the Council of Ministers constituted the executive br anch of government.  The legislative system 
comprised the King and Parliament, which was fo rmed by an Upper House of 40 dignitaries 
appointed by the King, and a Lower House of 80 deputies elected by the people.  The constitution 
(Article 97) guaranteed an independent judicial system , i.e. the civil and criminal courts, including the 
magisterial courts, courts of Firs t Instance and courts of Appeal. 
32. The Council of Ministers was responsible for issuing by-laws and regulations based on the 
different relevant laws.  Regula tions of the Council of Ministers should be approved by the King and 
published before coming into effect.  According to the Customs Law, the Council of Ministers 
decided on changes in tariff rates upon proposals of the Tariff Council, formed by the Minister of Finance, the Minister of Industry and Trade, and the Director General of the Customs Department.  
The Council of Ministers was empowered to restri ct importation or exporta tion of certain goods, 
restrict totally or partially the right to import or  export goods to certain entities, or exempt goods from 
import and export licensing requirements upon propos al of the Minister of Industry and Trade. WT/ACC/SPEC/JOR/6 
Page 12  
 
 33. The Ministry of Industry and Trade supervised the formulation and execution of policies 
related to industry and trade.  The Ministry's f unctions included the implem entation of major trade-
related legislation such as the Import/Export Law an d regulations, the Companies Law, the Industrial 
Property Law, the Insurance Law and the Trade Marks Law; negotiation of trade and economic 
agreements and protocols; and re presenting the Government in bilate ral, regional and international 
meetings.  The Ministry of Industry and Trade coul d, upon a proposal from or in coordination with the 
authority concerned, subject certain imports or exports to prior approval of this authority. 
34. The Customs Department within the Ministry  of Finance administered the flow of goods 
across borders according to the laws and regulations  in force.  The main tasks of the Department, 
which consisted of 16 directorates and 23 border centers, included the application of customs duties 
on imported goods;  administration of temporary en try and/or drawback facilities for exporters, 
diplomatic missions, regional offices and projects;  implementation of exemptions accorded to entities 
such as charitable organizations a nd beneficiaries under the Investment  Promotion Law;  collection of 
sales tax;  handling of violations of the Customs La w such as smuggling, fraud and false information;  
organization of special patrols to combat smuggli ng;  and performing auditing checks on all customs 
statements.  The Ministry of Health was responsib le for registration of imported and locally-produced 
medicaments. 
35. The representative of Jordan said that draft la ws would normally be submitted to the Council 
of Ministers for consideration by the Ministry or agency concerned with the subject-matter.  
Approved by the Council of Ministers, the law would be  sent to the Bureau of Legislation to be put in 
proper legal form prior to submission to Parliament .  Laws were discussed and approved separately by 
both Houses of Parliament.  A Law passed by both  Houses was submitted to the King for his consent 
and signature.  Once this step had been complete d the Law would become effective after publication 
in the Official Gazette.  International agreements and treaties signed by Jordan needed to be ratified 
by Parliament only if they entailed expenditure on behalf of the Treasury.  All treaties were required 
to be published in the Official Gazette in order to be enforceable. 
36. The representative of Jordan said that unless a law designated a different court, civil courts 
had jurisdiction in all civil matters, including trad e.  Jordanian courts could also decide on cases 
beyond their jurisdiction if the litigants agreed.  Trade issues heard by civil courts could be referred to 
the magisterial courts (cases within a JD 750 value limit), the Courts of First Instance (which also 
served as courts of appeal for magisterial court d ecisions), the Courts of Appeal, and the Court of 
Cassation.  The Court of Cassation decided on judgements of the Courts of Appeal in civil cases.  It also decided on points of law or procedure if refe rence to the Court of Cassation was allowed by the  WT/ACC/SPEC/JOR/6 
 Page 13 
 
 
 presiding judge of the Court of Appeal.  In certain cases the Court of Cassation could decide to return 
the case to the Court of Appeal for reconsideration.   Matters of fact relating to litigants' rights not 
objected to before the Court of First Instance or the Court of Appeal could not be raised before the 
Court of Cassation. 
37. Natural or legal persons contesting administra tive decisions could take the matter to the High 
Court of Justice, which was specialized in admi nistrative jurisdiction.  Customs and income tax 
matters were decided by specialized courts.  Customs decisions could be appealed to the Customs 
Court of First Instance, whose judgements could be  appealed to the Customs Court of Appeal and 
further to the Court of Cassation.  Issues of in tellectual property infringement were addressed by the 
civil Courts of First Instance.  Apart from the granting of amnesty or partial pardon to convicted 
individuals and sanctioning the execution of cap ital punishment, the King had no power to overrule 
any court judgement, civil or criminal.  Religi ous Courts mainly heard cases involving marriage, 
divorce, wills and legacies and had no jurisdiction in  civil or criminal cases or issues related to 
domestic and foreign trade. 
38. A member asked Jordan to clarify the right of appeal to a separate judicial authority in matters 
covered by WTO Agreements.  In reply, the represen tative of Jordan said that Jordan had adopted the 
system of two-tier litigation.  This rule applied in  the civil or administrative courts, thus every 
decision of a judicial character was subject to appeal in Jordan in one form or another.  In the absence 
of a special court of first instance, all administra tive-related decisions were considered decisions of 
the first court and subject to appeal to the High Court of Justice.  The High Court of Justice had 
jurisdiction to hear a limited list of appeals menti oned in the High Court Law or in other special laws, 
i.e. trade marks and patents.  Decisions concer ning customs, income tax, and compensation under 
imminent domain were appealed to the civil system  of courts as provided by special provision in the 
relevant laws.  The Court of Customs and the Cust oms Court of Appeal had jurisdiction to hear all 
customs-related issues and penalties.  Decisions of the Customs Court and the Court of Appeal were 
subject to review of the Court of Cassation.  However, decisions rega rding prior approval for 
importation would be subject to appeal to the High  Court of Justice in accordance with the general 
theory of Administrative Law. 
39. Concerning the division of authority betw een central and sub-central government, the 
representative of Jordan said that the central Government was responsib le for all matters related to the 
national economy and foreign trade.  Autonomous public entities and private agencies shared in implementing national economic policies, including trade. WT/ACC/SPEC/JOR/6 
Page 14  
 
 POLICIES AFFECTING TRADE IN GOODS 
Trading Rights
 
40. The representative of Jordan said that any bu siness registered in Jordan could engage in 
importation provided it possessed a valid import card.  Foreign companies, i.e. companies not registered in Jordan, did not have the right to import for commercial purposes.  Foreign ownership in 
enterprises engaged in trade and trading services could not exceed 50 per cent, and the minimum 
foreign capital requirement amounted to JD 50,000 (except for public shareholding companies). 
41. Import cards were issued automatically to im porters by the Trade Directorate in the Ministry 
of Industry and Trade after the importer had received  a certificate of registration from the Importer's 
Registration at the Ministry of Industry and Trade.   An application for registration in the Importer's 
Registration should be accompanied by a valid pr ofession licence and include information such as the 
name, address, capital and trade name of the compa ny or enterprise.  Profession licences were issued 
to natural and legal persons registered in Jordan  which were members of the Chamber of Commerce 
or Chamber of Industry, and which had had their premises inspected/approved by the local 
municipality.  Membership in the Chamber of Commerce or Chamber of Industry was automatic 
provided membership fees were paid. 
42. The registration certificate of a company or merc hant should be attached to the application for 
individual enterprises, whose capital should not be less than JD 5,000.  Provided the documentation 
was in order, the import card would be issued w ithin 30 minutes at no cost.  The card was valid for 
one year (ending on 28 February), and could be renewed annually s ubject to the usual documentation 
requirements, including a renewed profession licence.   An import card could not be cancelled.  The 
Ministry could not refuse an application for an import card. 
43. Identical criteria applied for import cards issued to all persons, entities and institutions 
regardless of nationality and economic sector.  En tities needing an import lic ence according to the 
information provided in [paragraph 67 below] coul d use this licence in lieu of the import card. 
44. The import card provided the importer with a special number and a special file which 
facilitated the clearance of importe d goods through customs.  Goods could also be imported without a 
valid import card, but would then be subject to a fine equal to 5 per cent of the value of the imported 
goods.  This fine was applied evenly to imports fro m all sources.  Imported personal effects were not 
affected by this provision as these were cleared unconditionally by customs.  WT/ACC/SPEC/JOR/6 
 Page 15 
 
 
 45. Some members requested Jordan to provide a WTO justification for the import card rule, and 
considered the fine for importing without a card disproportionate.  The representative of Jordan 
replied that import cards were used for identifica tion and statistical purposes, and that the fine was 
designed to ensure that importers complied with the requirements. 
[Market Access Negotiations  
The Ministry of Industry and Trade submitted the initial market access offer in goods in June 1998 
(circulated in document WT/ACC/SPEC/JOR/1 of 3 July 1998).  The offer was resubmitted in 
August 1998 to follow the order of the Harmonized  System.  The Customs Tariff of Jordan was 
submitted in diskette form to the WTO.] 
1. Import Regulation 
Customs tariff  
46. The representative of Jordan said that the cust oms law had been revised and amended to make 
it compatible with WTO requirements, ensuring transparency and simplified customs procedures.  A new Customs Law, replacing the Customs Law of 1983,  had been published on 1 October 1998, and 
had entered into force on 1 January 1999.  Jo rdan had begun using the Harmonized System 
nomenclature on 1 January 1994, and the HS 96 nomenclature had entered into force on 
1 March 1997.  The Customs Law No. 20 of 1998 had been reviewed to assess its WTO conformity.  
Although the Customs Law No. 20 of 1998 largely conformed to WTO requirements, certain amendments were needed in order to bring it into full conformity.  Key subject areas to be addressed 
were (i) non-preferential rules of origin (Articl es 24-26), which would be substantially revised to 
incorporate the Harmonized Rules of Origin once finalized by the WTO in co-operation with the 
World Customs Organization;  (ii) customs valua tion (Articles 28-32), where the language of some 
articles would be changed in the areas covering the definition of tr ansaction value, deductive value, 
and prohibited methods.  Jordan also planned to publis h, in the form of a Regulation, the interpretive 
note on customs valuation in 1999;  (iii) customs user fees, to include a provision ensuring that 
customs user fees reflected the cost of services rendered in accordance with Article VIII of GATT 
1994;  (iv) border enforcement of intellectual property rights, providing a basic legal framework which would be further elaborated through Regulat ions,  and (v) countervailing duty and safeguard 
measures, where existing language in Article 15 wo uld be deleted because Jordan had enacted a Law 
on safeguards and was preparing Regul ations on countervailing measures.   Jordan was in the process 
of preparing these amendments, and planned to enact them in 2000.
 WT/ACC/SPEC/JOR/6 
Page 16  
 
 47. The representative of Jordan said that tariff rates had been streamlined and reduced.  The 
tariff bands had been reduced to six (0, 5, 10, 20 , 30 and 40 per cent).  The average trade-weighted 
tariff had fallen from 34.1 per cent in 1994 to 14.6 per cent in 1996, and the share of customs duties in 
government revenue had declined from 25 per cen t in 1992 to 10 per cent in 1995.  As of 
1 January 1997, the maximum tariff amounted to 40 pe r cent (except for alcohol and tobacco).  Before 
the end of 1998, the maximum tariff was expected  to be reduced to 30 per cent, except for 
manufactured tobacco and tobacco substitutes (70 to  100 per cent), and alcoho lic beverages (180 per 
cent).  Jordan maintained combined ( ad valorem  and specific) duty rates on bananas, grapes, apples, 
calves, and sheep and goats.  Jordan had no intention to abolish these compound rates. 
Other duties and charges
 
48. The representative of Jordan said that Law No. 7 on Unifying Other Taxes and Fees had been 
passed in March 1997, consolidating all other import  duties and charges into the ordinary rate of 
customs duty.  The fees and taxes that had be en incorporated into customs duties included a 
consolidated surcharge (6 per cent);  the munici palities and universities fees (2 per cent and 4 per 
cent, respectively);  the 1969 surcharge tax (5 per cent on items exempt from customs duty, 3 per cent 
on dutiable items); and a 5 per cent import fee. 
49. A fee of 86.5 fils (JD 0.0865) per packet (20) of imported cigarettes was levied in accordance 
with the decision of the Economic Security Commi ssion No. 16 of 20 September 1984.  The revenue 
was earmarked for support of some agricultural products.   Imported radios were subject to fees levied 
in accordance with by-law No. 20 for 1966 of the Mi nistry of Post and Telecommunication.  The fees 
amounted to JD 0.2 for one-wave transistor radios, JD 0.3 for two-wave radios and JD 0.4 for radios 
with three wave bands.  In addition, JD 0.5 was levied on each transistor radio with an electric 
transformer, and JD 2 on each radio operated by electricity.  Asked to explain the purpose of the fees levied on imported transistor radios, the representati ve of Jordan said that the purpose had not been 
specified in the legislation introducing these fees,  i.e. the Regulation of Wireless Receivers and 
Transmitters No. 30 of 1966 and the 1934 Wireless Telegraph Law (Article 4).  Jordan was currently 
evaluating the application of these fees [informatio n will be provided at the next meeting of the 
Working Party]. 
50. The representative of Jordan confirmed that  upon Jordan's accession to the WTO no extra 
duties and charges would be liable to products in  the sense of GATT Article II:1(b).  Asked by a 
member whether Jordan would agree to bind at zero all duties and charges on imports referred to in 
Article II:1(b) of the GATT 1994 in its Schedul e of Concessions and Commitments on Goods, 
annexed to Jordan's Protocol of Accession, the representative of Jordan said that Jordan was  WT/ACC/SPEC/JOR/6 
 Page 17 
 
 
 considering the matter, but was not rea dy to make a commitment at this point. 
Tariff rate quotas, tariff exemptions  
51. The representative of Jordan said that tariff ra te quotas were not applied in Jordan, but tariff 
exemptions had been granted for basic production inputs, basic food products, necessary health and 
medical goods, and capital goods a nd equipment for agriculture and industry.  Tariff-exempt imports 
had accounted for almost 60 per cent of the total value of imports in 1996, and 50 per cent of total 
imports in 1997.  These figures included duty-free impor ts by diplomatic, charitable, educational and 
medical institutions, certain imports governed by bi lateral trade agreements (protocol trade), imports 
by certain government institutions, and im ports under the Investment Promotion Law. 
52. The new Customs Law No. 20 of 1998 ha d cancelled all import duty exemptions for 
government-owned firms and government instituti ons (except grants and donations).  Duty 
exemptions remained for 10 companies in accordan ce with agreements with the Government or 
concessions, granted at the time of their establishmen t.  The import duty exemptions were set to 
expire automatically on the date stipulated in the concessions and agreements.  The beneficiaries were 
share holding companies with significant private participation - the Phosphate Mining Company, the 
Petroleum Refinery Company, the Jordan Cement Factories Company, the Arab Bridge Maritime 
Company, the Arab Potash Company, the Jordanian Electric Company, the Ir bid Governorate Electric 
Company, the Jordanian Tanning Company, the Ve getable Oil Factories Company, and the Arab 
Company for Manufacturing White Cement.  The products subject to import duty exemptions were 
used by the exempted companies for production purposes and operations, excluding cars and spare 
parts, tyres, petroleum products, vans and buses and their spare parts, stationery, computer devices, 
air-conditioners, hand tools, consumption materials,  goods and materials used for housing employees, 
and products similar to Jordanian products. 
53. Charitable organizations were registered in a sp ecial registry at the Ministry of Industry, and 
received an import licence from the Ministry to import goods duty free upon recommendation from 
the Ministry of Social Development, certifying that the goods to be imported were for charitable 
purposes.  Duty-free imports were allowed for medi cal equipment and medications (approval of the 
Minister of Health and Minister of Finance/Custom s);  fixed equipment and apparatus and educational 
apparatus received as donations or grants for use in schools and institutions run by charitable 
organizations (recommendation from the Minister of  Social Development and approval by the 
Minister of Finance/Customs);  clothes, food, fu rnishings (carpets and curtains) received as donations 
or grants to orphanages, old peoples' homes and hos pitals (upon direction from the Minister of Social 
Development and approval of the Mi nister of Finance/Customs);  dona tions and grants of construction WT/ACC/SPEC/JOR/6 
Page 18  
 
 materials for building mosques, churches or schools belonging to religious or charitable organizations 
accredited by the Ministry of Social Developmen t;  and hearse cars (95 per cent tariff reduction).  
Educational and medical materials and all other ap paratus, equipment, machines and spare parts, 
including transport vehicles, were also fully exempt from customs duti es when used by schools, 
institutions and programmes for handicapped persons. 
54. The tariff exemptions granted for imported capita l goods and related spare parts in investment 
projects are described in the section "Investment regime".  Agricultural products exempted from 
customs duties were wheat and flour, and certain fruit and vegetables importe d under bilateral trade 
agreements with Arab countries, Israel and Palestine according to an agricultural calendar. 
55. Some members noted that the seasonal exemp tions for customs duties and import fees for 
certain agricultural products were not applied on a most favoured nation basis.  In reply, the 
representative of Jordan said that Jordan intended c onform to the MFN requirements of WTO.  Jordan 
was currently evaluating its tr ade arrangements with other countries to determine the proper 
mechanism for ensuring WTO conformity  [informati on will be provided at the next meeting of the 
Working Party]. 
Fees and charges for services rendered
 
56. The representative of Jordan said that certain  fees and charges were imposed for services 
rendered to the importer.  Veterinary charges were levied in accordance with by-law No. 17 for 1987, 
issued in accordance with the Agriculture Law No. 20 for 1973, and their amendments.  The 
veterinary fee amounted to 70 fils per head, and a sheep census fee equalled 800 fils for each camel, 
buffalo, cow and pig, and 200 fils per goat and sheep. 
57. A fee for screening of video films was impo sed according to Law No. 52 of 1951.  The fee 
amounted to JD 3 for non-news tape with less th an 30 minutes viewing time, and JD 10 for longer 
tapes not containing news. 
58. An overtime fee equal to 0.2 per cent of the c.i.f. value of imported goods worth more than 
JD 50 (0.1 per cent for goods in transit) was ch arged for services rendered by staff of the Customs 
Department during official working hours and for performing difficult and risky tasks. 
59. Consular fees were levied in accordance with  by-law No. 1 for 1989 based on Article 2 of the 
Law on consular fees No. 36 for 1947.  The fees were levied for certification of commercial bills not 
paid at the time of certification by the consular authority in the exporting country, and ranged from JD 2 for bills less than JD 100 to JD 50 for bills  worth JD 50,000-100,000 with an additional JD 2  WT/ACC/SPEC/JOR/6 
 Page 19 
 
 
 charged for each JD 10,000 in excess of JD 100,000.  Certificates of origin issued by a consular 
authority were subject to a fee of JD 2 per certificate. 
60. A member noted that Jordan imposed overtime fees and non-tariff ad valorem  charges for 
[foreign exchange permits and] re-exported goods, and that the fee assessed for authentication of 
invoices and certificates of origin increased for goods  worth more than JD 10,000.  Jordan was 
requested to bring its fees and charges for services rendered into conformity with Article VIII of the 
GATT 1994. 
61. The representative of Jordan replied that Jo rdan was reviewing all customs and trade-related 
fees to identify the fees which did not conform to GATT Article VIII.  Jordan would take necessary 
measures to bring these fees into conformity with Article VIII by the end of 1999.  The fees would 
reflect the cost of services rendered, and would either be specific or ad valorem  with fixed minimum 
and maximum levels. 
Application of internal taxes  
62. The representative of Jordan said that a Gene ral Sales Tax was applied in Jordan.  Products 
subject to specific rates of sales tax are listed in Table 2.  Impor ted goods were taxed at the border 
based on the duty-inclusive customs value. 
Table 2:  Products subject to specific sales tax  
No. Product Unit Tax rate (JD) 
Domestic Tax rate (JD) 
Imported 
1 All kinds of cement ton  10.000  10.000
2 Iron for construction ton  40.000  40.000
3 Mineral lubricating oils Kg.  00.200  00.200
4 Natural and mineral water, gas water including 
soda water in  - reusable container 
-   disposable container  
litre  
 00.020 
00.166 00.175  00.020
00.16600.175
5 Fizzy drinks 
(a) for immediate consumption      -   reusable container 
     -   disposable container 
(b) Concentrates in  - drums that yield 96 bottles/25 cl. 
 capacity each 
 - drums that yield 480 bottles/ 25cl. 
capacity each   
 
litre 
litre 
 
drum 
drum  
  
 
   
0.166 0.175 
 
3.984 
19.920  
  
 
  0.166
0.175
3.984
19.920
6 Beer including non-alcoholic beer 
(a) 35cl. container 
(b) 35cl. to 2/3 litre (c)  Other  
container 
container 
litre  
 
   
0.175 
0.245 0.420  
 
  0.285
0.3850.585WT/ACC/SPEC/JOR/6 
Page 20  
 
 No. Product Unit Tax rate (JD) 
Domestic Tax rate (JD) 
Imported 
7 Alcohol 
(a) Pure alcohol 
(b) Mixed alcohol  
liquid litre. 
liquid litre. 
 
  
0.325 
0.140  
 
 0.330
0.140
8 Wine-  25 per cent  alcohol 
(a)  Sparkling wine 
(b) Other  
litre 
litre  
 
  
0.500 
0.500  
 
 1.155
0.891
9  Alcoholic drinks including wine with more than 
25 per cent alcohol 
(a) Arak 
(b) Cognac (c) Other  
liquid 
litre 
litre litre  
 
 
  
0.600 
0.650 
0.850  
 
 
 0.850
1.000
1.200
10 Tobacco 
(a) Ordinary 
(b) Mixed with fruit syrup  
Kg. 
Kg.  
 
  
2.000 
2.000  
      
 2.000
2.000
11 Snuff Kg.  2.000  2.000
12 Chopped tobacco Kg.  0.500  0.500
13 Cigar Kg.  15.000  15.000
14 Tyres for big cars Tire  0.500  0.500
15 Tyres for small cars Tire  0.250  0.250
16 Lubricating mixtures Kg.  0.005  0.005
17 Cigarettes 
(a) Locally produced cigarettes for local 
consumption box /20 Range of tax runs from 229 fils to 385 
fils depending on the brand name, and 
from 197 fils to 342 fils for the same 
brand names sold to armed forces. 
 (b) Imported Cigarettes box    0.385 
 
Imported goods received national treatment with cert ain exceptions.  [Note that items under items 6, 
7a, 8 and 17 are higher for imports than for domestic  goods]  Some imported products were subject to 
10 per cent General Sales Tax, while locally-mad e goods were tax exempt.  The products involved 
were clothing and shoes;  agricultural plastic houses;  kerosene or gas operated heaters;  furniture;  
fibre glass and its products;  wool blankets, cove rs, and mattresses, quilts, and towels;  yeast and 
bread improvements;  active and inactive lime and ca lcareous masonry;  smoke stack stoves and their 
parts;  dried leguminous vegetables subjected to any manufacturing process such as: peas, chick peas, 
beans, kidney beans, lentils of field beans;  egg car ton holders;  solar heaters;  knitted textiles;  milled 
products including spices, thyme, and other herbs;   plastic agricultural sheets and other plastic 
products for the irrigation network;  and energy- saving insulation material s for building purposes. 
 63. Some members noted that Jordan applie d sales tax rates which differentiated between 
imported and domestically-produced goods in violat ion of Article III of the GATT 1994, and asked 
which steps Jordan was taking to eliminate this diffe rential treatment.  In reply, the representative of 
Jordan said that Jordan intended to remove the differential rates of General Sales Tax prior to 
accession.  Jordan planned to enact legal measures to bring its regime into conf ormity with Article III 
of the GATT 1994 before the end of 1999.  WT/ACC/SPEC/JOR/6 
 Page 21 
 
 
 Quantitative import restrictions, includin g prohibitions, quotas and licensing systems  
64. The representative of Jordan said that, although  imports had been liberalized in recent years 
and numerous non-tariff barriers had been elimin ated, importation of some products was still 
prohibited or subject to prior approval or import licensing.  The goods banned from importation into 
Jordan are listed in Table 3.  Jordan also banne d the importation of toy automobiles because special 
tracks on which to drive them were not readily ava ilable in Jordan.  Banned goods would be refused 
entry or clearance by customs, and would need to be re-exported to the country of origin or to the Free 
Zone. 
Table 3:  Banned imports  
HS Code Products 
25.01 Table Salt 
39.15 Plastic Waste 
87.03 Cars older than five year 
87.03 Passenger cars using other than benzene as fuel 
ex 90.09 Used photocopiers older than 3 years 
65. Some members pointed out that Jordan's bans  on imports of plastic waste, mineral water, 
table salt, used cars, and cars using fuel other than  petrol were intended to  limit imports and were 
inconsistent with Article XI of the GATT and the Agreement on Agriculture.  Jordan was requested to 
confirm that all these restrictions would be elim inated or amended no later than upon accession to 
bring them into line with WTO provisions.  In repl y, the representative of Jordan said that mineral 
water and salt had been banned from importation for socio-economic reasons.  Jordan had eliminated 
the import ban on mineral water in April 1999 and in tended to lift the other bans, but no decision had 
yet been taken in this respect [further information will be provided at the next meeting of the Working 
Party].  Price controls on table salt had been lifted in  June 1997 as a first step towards liberalization.  
Regarding the import ban on used cars, he said that Jordan had adopted Jordanian Standard 
1050:1998, identical to 44 EEC Directives, which outlin ed the safety requirements for motor vehicles.  
Instructions were being prepared to address the impo rtation of used vehicles in the light of this new 
standard.  The import ban on cars older than five y ears, except for use as spare parts, remained in 
force for the time being.  Importation of diesel-e ngine saloon cars and taxis was not allowed because 
of the environmental pollution they were causing.  Diesel-engine trucks were accepted because they 
mostly operated outside the congested areas.  He added that his Government was encouraging 
Jordanians to replace older cars with newer (and safer) models.  Owners of old cars used in public 
transport were eligible for duty-free importation of  new cars provided the old car was surrendered to 
the State or retired from service. WT/ACC/SPEC/JOR/6 
Page 22  
 
 66. The representative of Jordan said that prior approvals were issued under specific conditions 
by certain government institutions.  Prior appr ovals were required to import from all countries 
(including those with which Jordan had preferential agreements) for all produc ts listed in Table 4.  
Prior approvals were granted automatically to priv ate sector importers of rice and sugar and there 
were no import quotas or restrictions on the importe d quantity.  Private sector imports of cigarettes 
required prior approval and an import licence from the Ministry of Industry and Trade, but there was 
no import quota.  Prior approvals to import electri c and electronic video games were granted only to 
shops licensed to use or deal with such games.   
Table 4:  Prior approvals
 
 
 HS Code Product Party Granting Approval Justification 
1. 10.06 Rice Ministry of Industry and 
Trade (MIT) Statistical purpose 
2. 11.01 Wheat flour MIT Statistical purpose  
3. 17.01 Sugar MIT Statistical purpose  
4. 10.01 Wheat MIT Statistical purpose  
5. 10.03 Barley MIT Statistical purpose  
6. 10.05 Corn MIT Statistical purpose  
     
     
9. Chapter 1 Live animals Ministry of Agriculture Health 
10. 0511.10 Frozen animal 
semen Ministry of Agriculture Health 
11. Chapter 2 Fresh chilled 
and frozen meat Ministry of Agriculture Health 
12. 1509 Olive oil Ministry of Agriculture Social 
13. Chapter 93 All kinds of 
arms and 
ammunition Ministry of Interior, 
Public Security Dept. 
(PSD) National security  
14. 36.01 
36.02 
36.03 
36.04 All kinds of 
explosives PSD National Security  
15. 82.11 Pen knives and 
similar articles PSD National Security 
Public order  
16. 95.01 Children 
automobile toys 
operated with 
fuel PSD Safety 
17. 9503.20 Remote control 
and toy 
aeroplanes PSD Safety  
23 . 95.04 Electrical and 
electronic video games machines PSD Public moral  
24. 85.43 Self-defence 
electrical 
equipment PSD National Security 
Public order  WT/ACC/SPEC/JOR/6 
 Page 23 
 
 
  HS Code Product Party Granting Approval Justification 
25. 28.44 Radio-active 
materials and uranium Ministry of Energy & 
Mineral Resources National Security 
Health Safety 
Environment 
26. 85.25 Wireless 
transmitters and 
receivers Telecommunications 
Regulatory Commission 
(TRC) National  Security  
Safety  
Health 
27. 85.31 Wireless alarm 
equipment TRC National Security  
Health 
28. 8543.209 
8526.92 All kinds of 
remote control 
equipment (except those 
for television 
and video)  TRC National Security  
Safety  
Health  
29. 8526.91 Radar apparatus TRC National Security  
Safety  
Health 
30. 85.25 Transmission 
and reception 
stations TRC National Security  
Safety  
Health Environment 
31. 85.25.201 Cellular 
telephone 
systems TRC National Security  
Safety  
Health Environment 
32. 85.17.11 Cordless 
telephones TRC National Security  
Health 
33. 8518.10 Cordless 
microphones TRC National Security  
Health 
34. 85.17 Electrical 
equipment for line telephony 
and telegraphy TRC Safety  
Environment  
35. 8543.899  Decoders TRC National Security  
Health  
36. 85.29 
8529.101 8543.891 Satellites TRC National Security  
Safety  Health 
37. 90.09 Coloured 
photocopying 
machines Central Bank of Jordan National Security 
38. 29.41 
30.02 30.03 
30.04 Medicaments, 
antibiotics, human blood, 
vaccines Ministry of Health 
(MOH) Health  
39. 2106.90 Food 
preparations used by athletes MOH Health 
40. 2827.51 Bromides of 
potassium MOH Health 
41. 13.02 Food colourings MOH Health 
42. 68.11 Sheets and pipes 
of asbestos MOH Health WT/ACC/SPEC/JOR/6 
Page 24  
 
  HS Code Product Party Granting Approval Justification 
43. 04.02 
2106.90 Milk and foods 
for children MOH Health 
44. 21.05 Ice cream and 
other edible ice MOH Health 
45. 84.70 Postage 
franking 
machines Ministry of Post and 
Communications National Security 
46. 2903.4 
2903.46 Halogenated 
derivatives of hydrocarbons Public Corporation for 
Protection of the Environment Safety 
Environment 
47. 2903 Frion gas Public Corporation for 
Protection of the 
Environment Safety 
Environment 
48. 8430.4 Boring 
machinery for water Ministry of Water & 
Irrigation Conservation of 
Natural Resources 
49. Chapters 61+62 Military 
clothing General Command of the 
Armed Forces National Security 
 
67. Import licenses were required for goods (i) orig inating in countries and territories which had 
trade agreements and protocols with Jordan, i.e. Ba hrain, Egypt, Iraq, Israel, Kuwait, Lebanon, Libya, 
Morocco, Oman, Palestine, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen;  
(ii) imported by banks, companies under establishmen t, farms, handicraft businesses, hospitals, hotels, 
newspapers, religious, scientific and charitable or ganizations;  (iii) imports by individuals for 
personal, non-commercial use;  (i v) goods, neither prohibited nor restricted and whose total value 
exceeded JD 2,000, brought into th e country by passengers;  (iv) imports of companies, organizations 
and individuals registered with official bodies to  establish development projects in Jordan;  (v) 
imports by foreign contractors and companies includi ng their branches registered in Jordan as foreign 
entities;  and (vi) imports by foreign entities permitte d to operate a resident branch in Jordan to 
conduct business outside Jordan and non-Jordanian individuals working in media establishments.  
Product-specific import licences were required for the items listed in Table 5.  The import licences 
were maintained for statistical purposes and to ad minister the tariff exemptions provided under the 
respective agreements. 
Table 5:  Import licences  
HS CODE ITEM 
ex 19.05 Biscuits 
ex 87.03 Used vehicles 
ex 2201.10 Mineral water 
ex 84.18 Refrigerators 
ex 84.18 Freezers 
84.14.30 Compressors 
ex 04.02 Milk for industrial use 
ex 40.12 Used automobile tires 
ex 85 Used electronic equipment  WT/ACC/SPEC/JOR/6 
 Page 25 
 
 
 68. The representative of Jordan said that import licences were issued free of charge, and most 
Ministries did not charge fees for the issuance of prior approvals.  Legisl ation on prior approvals, 
which varied from one institution to another, did not  stipulate any time-limit for the issuance of prior 
approvals.  The process could therefore take from one day to one year, provided all required 
documentation had been submitted.  In certain case s (arms, ammunition, explosives and pen knives), 
only licensed importers could apply for prior approvals.   In general, the main determinant in granting 
prior approval was the nature of the product and its  impact on health, safety, the environment, national 
security, public order and morals, and the conserva tion of natural resources.  Imports of chemical 
products were subject to general sa fety conditions, i.e. availability of  appropriate storage facilities and 
proper procedures for the transportation, handling and labelling of products.  Telecommunications 
equipment and toys were checked or subject to laborat ory tests to ensure that they would not threaten 
national security, health, safety, or the environment.   Asked whether Jordan provided an opportunity 
for other countries to comment in writing on new pro cedures, or products to be added to the list of 
goods subject to prior approval, he replied that th ere were no restrictions on other countries providing 
written comments. 
69. Some members noted that Jordan applied qua ntitative restrictions and import licensing which 
could not be justified as exceptions to the requireme nts of GATT Article XI.  Some of the measures 
also appeared to violate GATT provisions on MFN and national treatment.  Jordan was requested to 
eliminate or amend these measures prior to accession.  The representative of Jordan  stated that Jordan 
intended to conform to Article XI of the GATT 1994 no later than upon accession, and that Jordan 
would eliminate or amend all restrictions which were  inconsistent with Article XI before the end of 
1999.  His Government was reviewing the list of products subject to prior approval, and would 
eliminate those items that could not be justified under WTO rules by the date of accession.  Legislation to bring the current regime into full conformity with WTO requirements would be enacted 
prior to accession.   
Customs valuation
 
70. A member stated that it considered th e Customs Valuation Agreement a fundamental 
component of the Uruguay Round Agreement.  This member encouraged Jordan to incorporate the 
WTO Customs Valuation Agreement into its legisla tion as soon as possible and certainly no later than 
the date of accession. 
71. The representative of Jordan said that the 1998 Customs Law, which was based on the WTO 
Customs Valuation Agreement, included provisions on customs valuation in its Articles 28 to 32.  The 
Law required valuation based on self-declaration by importers, and stipulated that the transaction WT/ACC/SPEC/JOR/6 
Page 26  
 
 value, rather than the "normal" value be used for customs valuation purposes.  Customs duties were 
calculated on the basis of the c.i.f. value of imports  on the registration date of the customs valuation 
form.  In mid-1996, a reference price database for valuation of goods had b een initiated by customs, 
but this database no longer existed. 
72. The Customs Law No. 20 of 1998 conformed largely to the WTO Customs Valuation 
Agreement.  The Law contained a definition of relate d persons similar to that of Article 15.4 of the 
Customs Valuation Agreement, except that Jordanian Law limited family relation to third degree.  He 
confirmed that the Customs Law incorporated the Article 5.2 valuation method, and that customs 
practices would comply with Article 5.2 of the Cust oms Valuation Agreement.  The right of further 
appeal (beyond the Customs Court) was guaranteed by Law, and he considered Article 80 of the 
Customs Law, which stipulated that a decision of the Director General of the Customs Department 
could be contested at the Customs Court within 15 days, would meet the requirements of Article 11.3 
of the Customs Valuation Agreement.  He consider ed the confidentiality provision in Article 10 of the 
Agreement to be covered by Article 175 of the Cust oms Law.  A provision on the valuation of lost or 
damaged goods would be addressed in instructions of the Minister of Finance, which would also be 
issued to incorporate the interpreta tive notes in Jordanian legislation. 
Other customs formalities
 
73. The representative of Jordan said that the 1998 Customs Law (Articles 24-27) provided the 
legal framework for the application of rules of or igin.  A certificate of origin indicating the initial 
origin and the value added was required for impor ted products from all countries.  The certificate 
should be issued by an authorized body in the ex porting country.  The authorized body, for example a 
Ministry, Chamber of Commerce or Chamber of Industry, should be acknowledged by the World 
Customs Organization. 
74. For products exported from Jordan, the Chamber of Industry issued certificates of origin for 
licensed factories.  The Industria l Development Directorate in the Ministry of Industry and Trade 
checked the certificate, i.e whether the factory existed and the products  were made in the factory, and 
whether the local manufacturing percentage complied with the minimum stipulated in the bilateral 
agreement. 
75. Jordan's preferential rules of origin depe nded on the bilateral agreement with each country, 
and were essentially based on the value added or local  content.  The principle of minimum 40 per cent 
value added was applied in trade arrangements with  Arab countries, and 35 per cent in trade with 
Israel.  WT/ACC/SPEC/JOR/6 
 Page 27 
 
 
 76. The representative of Jordan said that Jordan  planned to adopt the Harmonized Rules of 
Origin once finalized by the WTO in co-operation with the World Customs Organization.  Jordan 
would ensure conformity with the Agreement on Rul es of Origin as soon as the Harmonized Rules of 
Origin had been finalized. 
77. The representative of Jordan said that the Government had implemen ted a scheme permitting 
ISO 9000 certified industries to benefit from a "Green  Channel" for imports of materials, equipment 
and components used in the production of expor ts.  The green channel involved acceptance of 
invoices presented by exporters on the basis of tr ust, with reliance on ex-post random auditing of 
factory premises.  A feasibility study had been unde rtaken to prepare the implementation of x-ray 
inspection services on all border crossing points to facilitate the inspection of lorries, trucks and 
tankers. 
Preshipment inspection  
[78. The representative of Jordan said that a voluntary preshipment inspection scheme was 
planned which would provide bona fide  importers an opportunity to avoid delays and uncertainties 
concerning customs clearance.  Customs would be required to accept documentation establishing the 
classification and value of goods provided by certification bodies accredited by the Government of 
Jordan.  Customs inspection or checking of containe rs sealed by certification bodies would be limited.  
The costs of preshipment inspection services would be borne by the importer. 
79. Jordan would choose an accredited interna tional company to perform the preshipment 
inspections.  The tender document required the selecte d company to ensure that the operation of the 
scheme would be consistent with WTO requirement s, in particular the Agreement on Preshipment 
Inspection.  Instructions for this company were be ing elaborated based on the criteria laid down by 
WTO. 
80. A member requested Jordan to report in de tail on its preshipment inspection contract, and 
sought a commitment from Jordan that the operations of this firm would be  consistent with the 
relevant WTO Agreements, in particular GAT T Article VIII, the Agreement on Preshipment 
Inspection and the Agreement on the Implemen tation of Article VII of the GATT 1994.] 
81. The representative of Jordan replied that Jord an did not yet have a system of preshipment 
inspection.  Should preshipment inspection be introdu ced in the future, Jordan would ensure that the 
system will be in full conformity with the WTO Agreement on Preshipment Inspection. WT/ACC/SPEC/JOR/6 
Page 28  
 
 Anti-dumping, countervailing duties, safeguard regimes
 
82. The representative of Jordan said that Article  15 of the 1998 Customs Law authorized the use 
of countervailing duties or safeguard action.  M easures, including quantitative restrictions, could be 
applied to counteract any procedure taken in othe r countries that endangered Jordanian industry and 
trade, and to safeguard the interests of the nati onal economy to the extent deemed necessary by the 
Council of Ministers. 
83. The representative of Jordan added that  Jordan had enacted the National Production 
Protection Law ("the Law on Safeguards") on 1 Octobe r 1998.  In his view, the Law conformed with 
the WTO Agreement on Safeguards (a detailed compar ison between the provisions of the Law and the 
Agreement on Safeguards is provi ded in document WT/ACC/JOR/18, pp.33-42).  He added that, in 
order to implement the Law, Article 14 of the Law required the Council of Ministers to issue a 
regulation covering the (i) fees to be collected from petitioners for protection;  (ii) conditions to be 
fulfilled by protection petitioners, as well as details about the evidence and documents to be submitted 
with the petition;  (iii) procedures for investigating the petitions and the scope of the investigations;  
(iv) matters to be addressed by the report includi ng the recommendation to the Minister regarding the 
protection petition;  and (v) the maximum period for applying the protection measures as well as the 
procedures and conditions pertaining to any extension or re-imposition of such measures.  Jordan was 
in the process of drafting these regulations. 
84. A member was concerned that Jordan's Safeguard Law might not fully reflect WTO 
provisions concerning safeguards, anti-dumping, and countervailing duties, and sought a commitment 
from Jordan not to apply any such measures until WTO- consistent legislation had been put in place.  
Should Jordan be unable to complete the implementati on of WTO-consistent legislation by the date of 
accession, this member requested the Government of  Jordan to commit to refrain from imposing any 
anti-dumping, countervailing or safeguard measur es until WTO-consistent legislation had been 
enacted and properly notified to the appropriate WTO Committees. 
85. In reply, the representative of Jordan said that the National Production Protection Law had 
been enacted, published in the Official Gazette and forwarded to the WTO Secretariat.  Jordan was 
preparing regulations to implement the Agreemen t on Subsidies and Countervailing Measures and the 
Agreement on Implementation of Article VI of the GATT 1994 (anti-dumping).  WT/ACC/SPEC/JOR/6 
 Page 29 
 
 
 2. Export regulation 
Customs tariffs, fees and charges for services rende red, application of internal taxes to exports  
86. The representative of Jordan said that a certif icate of registration of the enterprise was the 
only requirement for engaging in exporting. 
87. Asked to list all charges on exports - whethe r called fees, taxes or tariffs – the representative 
of Jordan said that exports to Syria and Iraq were licensed and subject to JD 2 stamp duty, collected 
by the Ministry of Industry and Trade.  The Cust oms Authority collected a fee of JD 25 per ton on 
exports of scrap and waste of iron, brass and aluminium.  Export fees collected by the Natural Resources Authority are listed in Table 6, and fees  on exported agricultural products collected by the 
Ministry of Agriculture are listed in Table 7.  The Jordan Export Development Corporation (JEDCO) 
also charged fees for services provided to exporters. 
Table 6:  Export fees on mining and quarry products
 
Product Fee (JD per ton) 
Crushed stones 0.2 
Building stones 0.3 
Marble and granite 1.0 
Travertine and marble crushes 0.5 
Crude xyolite 1.0 
Clay, clay derivatives and kaolin 0.5 
Tripine biototite and diatomite 0.3 
Silicate, gypsum, pure limestone, feldspar, volcanic turf and 
bituminous mineral oil 0.2 
Dolomite and basalt 0.1 
 
Table 7:  Fees on exports of agricultural products  
Type of fee Amount (fils) 
1. Fumigation of consignments 250f/ton 
2. Inspection and checking 250f/ton 
3. Inspection of live animals:  
 Bovines, camels and pigs 50 f/head 
 Horses 50 f/head 
 Sheep, goats and deer 20 f/head 
 Cats, dogs and wild animals 100 f/head 
 Birds 20 f/bird 
4. Animal interdiction fees/quarantine  
 Bovines, camels and pigs 80 f/head 
 Horses 90 f/head 
 Sheep, goats and deer 20 f/head WT/ACC/SPEC/JOR/6 
Page 30  
 
 Type of fee Amount (fils) 
 Cats, dogs and wild animals 100 f/head 
 Birds 20 f/bird 
5. Animal watering  
 Camels, horses, bovines and big animals 10 f/head/day 
 Sheep, goats and small animals 5 f/head/day 
6. Disinfection fees:  
Ships transport 1-100 head JD 2 
Ships transport 1,000 tons. JD 3 
Ships transport 4,000 tons. JD 5 
Ships transport more than that JD 7 
Any other vehicles JD 0.5 each 
88. A 2 per cent inspection fee, which the represen tative of Jordan considered a fee for services 
rendered, was levied on re-exporte d foreign goods.  For imported goo ds undergoing some additional 
processing in Jordan, the value added would need to  be 40 per cent or more for a product to be 
considered a Jordanian export.  Exempt from the fe e were exports by diplomatic missions and their 
staff;  personal belongings;  articles exempt from import customs duties;  used household furniture;  
project machinery and equipment imported on a tempor ary basis;  foreign goods re-exported directly 
from stores and warehouses;  and any item exempt by decision of the Council of Ministers upon recommendation from the Minister of Finance.  Re -exported goods were also subject to customs 
overtime fees (0.2 per cent of the declared value). 
Export restrictions
 
89. The representative of Jordan said that products of Jordanian origin generally did not require 
export licenses.  A licence was required for exports to  protocol trade countries for consignments of a 
value exceeding JD 1,000 irrespective of origin, i. e. Jordanian or foreign.  Export licences were 
required in trade with Syria and Iraq as Jordan was committed to certain banking arrangements in 
transactions with these countries.  Exports to ot her countries were exempt from the export licence 
requirement by virtue of by-law No. 74 of 1993 fo r Exports and Imports.  A licensing requirement for 
re-exported foreign goods of a value ex ceeding JD 1,000 had been abolished. 
90. Some products were subject to  prior approval before exportation.  The items affected by the 
prior approval requirement are listed in Table 8.   These approvals were in themselves considered 
export licences.  WT/ACC/SPEC/JOR/6 
 Page 31 
 
 
 Table 8:  Exports subject to prior approval  
Product Institution granting approval 
Wheat Ministry of Industry and Trade 
Wheat flour and other wheat products (semolina, bran, 
broken wheat) " 
Sugar " 
Rice (ordinary brand) " 
Halibuna (milk) " 
Milk for industrial use " 
Ewes and cows Ministry of Agriculture 
Precious metals, including gold and silver bullion and coins Central Bank of Jordan 
Marble slabs Natural Resources Authority 
Broken marble " 
Mineral ores " 
Radioactive materials and sour ces, and exhausted uranium " 
Fresh fruit and vegetables destined to protocol trade 
countries Agricultural Marketing Organization 
91. Some members questioned whether the prio r approval system was consistent with GATT 
Article XI.  In reply, the representative of Jordan  said that most of the products subject to such 
approval prior to exportation were strategic food products.  The system was being phased out, and 
would with time be brought in line with the requi rements of GATT Article XI [further information 
will be provided at the next meeting of the Working Party]. 
Export subsidies  
92. The representative of Jordan said that, as a resu lt of the negative effects of the Gulf War on 
Jordan's economy and exports, his Government had decided in 1993 to encourage Jordanian producers 
to diversify production and focu s on non-traditional markets.  The Council of Ministers had 
accordingly decided (Decision No. 3394 of 1994) to ex empt from income tax profits of exports to 
non-protocol countries and territories - i.e. all countries and territories except Israel, Lebanon, 
Palestine and Saudi Arabia - excluding traditiona l Jordanian export items such as phosphates and 
potash.  The Arab countries trading with Jordan under  bilateral and protocol trade agreements, thus 
excluded from the tax-exemption scheme, accounted  for around 45 per cent of Jordan's exports. 
93. The legal basis for exempting profits earned from exportation wholly or partly from income 
tax was Article 3(c) of the Income Tax Law No . 57 of 1985 and its amendments.  The decision was 
taken by the Council of Ministers upon recommendation of  the Minister of Finance.  The income tax 
exemptions were accorded to en terprises which could provide official documentation (e.g. customs 
declarations) to the Income Tax Departments provi ng their export earnings.  He added that the Higher 
Council for Investment had approved the establishmen t of Jordanian Export Companies specialized in WT/ACC/SPEC/JOR/6 
Page 32  
 
 exportation of national products a nd goods.  These companies were also exempt from payment of 
income tax.  According to Decision No. 12/11/4 of 30 December 1997 of the Council of Ministers, all 
companies with a minimum paid capital of JD 2 m illion, registered in accordance with the Jordanian 
Company Law and specialised in "external marketin g, advertising and expor ting local products" were 
eligible to become Jordanian Export Companies.  The functions of these companies should be limited 
to exportation, marketing, and promotion of Jordan ian products abroad.  The companies were required 
to buy from local producers, and could not act as a paid agent only. 
94. The Central Bank had operated an export pr omotion facility since 1980.  The Central Bank 
refinanced export credits charging interest at 2 pe rcentage point below the prevailing discount rate.  
Such refinancing was available to any company regi stered in the Jordanian Official Registry of 
Companies, thus any exporter, regardless of sector, could benefit from the interest rate subsidies on 
loans granted by the Central Bank of Jordan.  The main objective of this arrangement was to 
encourage banks to meet exporters' demand for credit.  The Central Bank provided advances to 
authorized banks, i.e. all banks licensed to operate in Jordan, against export letters of credit and bills 
for collection.  The maximum duration of a dvances extended against such documentation was 
9 months.  The maximum limit on pre-shipment credit amounted to 75 per cent of the exporter's letter 
of credit, while post-shipment credit could be extend ed for up to 90 per cent of the value of bills of 
lading and drafts.  Exported produc ts were required to satisfy a lo cal value added criterion (minimum 
25 per cent) to be covered by the scheme.  Th e interest and commission charged on advances 
extended by licensed banks and financial instituti ons to exporters should not exceed 2.5 per cent 
annually.  The estimated total value of the interest-ra te subsidy had varied in recent years, from a high 
of nearly JD 40 million in 1994 to less than JD 10 million in 1995, rising to almost JD 15 million in 
1996.  A financing facility operate d by the Industrial Development Bank for commodities stored for 
export purposes had been discontinued on 1 January 1997. 
95. The representative of Jordan did not consid er the import duty exemptions accorded to 10 
companies (see "Tariff rate quotas, tariff exemptions ") actionable subsidies under the Agreement on 
Subsidies and Countervailing Measures.  The bene ficiaries were share holding companies with 
significant private participation, thus item (d) of A nnex I (Illustrative List of Export Subsidies) of the 
Agreement did not apply in this case.  The purpose of these subsidies was to encourage production.  
They were not intended to cause a dverse effects to the interests of  other countries.  Moreover, the 
import duty exemptions were not contingent upon export performance or import substitution. 
96. The representative of Jordan added that fi rms manufacturing for exports were granted duty 
exemptions under a temporary entry scheme.  The scheme applied to direct imports as well as to  WT/ACC/SPEC/JOR/6 
 Page 33 
 
 
 wholesale purchases from bonded commercial warehou ses.  A duty drawback arrangement allowed 
exporters to be refunded duty paid  on imported materials subsequent ly used in the production of 
exports.  The refund was calculated according to a specific formula for each product.  The temporary 
entry and duty drawback systems had been improved during 1996 through the introduction of 
computerization. 
97. The Jordan Export Development and Commercia l Centres Corporation (JEDCO), originally 
founded to execute trade protocols with Arab c ountries on behalf of the Government, had been 
reorganized in 1995.  JEDCO - an autonomous no n-profit organization owned by the Ministry of 
Industry and Trade, the Jordan Federation of Ch ambers of Commerce and the Amman Chamber of 
Industry - received no budgetary assistance from the Government.  The Board of Directors, comprising senior government officials, principa ls of the Kingdom's business organizations and 
leading industrialists, appointed the General Manage r.  The current functions of JEDCO were of 
technical and promotional nature, principally assis ting industrialists in upgrading products, adapting 
to international standards and developmen t of marketing and technical capabilities. 
98. Some members noted that Jordan had me asures which violated the WTO Agreement on 
Subsidies and Countervailing Measures, and that Jord an intended to phase out such practices.  Jordan 
was requested to list all such measures, with legal citations, and indicate the timeframe in which they 
would be eliminated.  Jordan should also indicat e any residual legal rights to such incentives which 
would remain after the laws aut horising them had been repealed. 
99. The representative of Jordan said that Jordan  recognized that its income tax exemption on 
export sales was not in conformity with WTO requireme nts.  At present, Jordan maintained two types 
of export subsidies.  The Income Tax Law No. 57 of 1985 and its amendments authorized the Council 
of Ministers to grant partial or total exemptions  from income tax for profits on certain exports.  
Pursuant to this Law, a Decision (No. 3394 of 1 994) had been issued exempting from income tax 
profits on all exports (except phospha te and potash) to non-protocol countries and territories, i.e. all 
countries and territories except Israel, Lebanon, Pales tine and Saudi Arabia.  The other form of export 
subsidy was the scheme whereby the Central Bank  discounted commercial documents to finance 
Jordanian exports at below-market interest rate.  Jordan was evaluating the application of export 
subsidies to non-protocol countries to determine the proper mechanisms for conforming to the MFN 
requirements of the WTO.  Jordan planned to seek  transition for phasing out prohibited subsidies (as 
defined in Article 3 of the Ag reement on Subsidies and Counterva iling Measures) under Article 27 of 
the Agreement on Subsidies and Countervailing Measu res.  Prohibited subsidies, granted prior to 
repealing the laws authorising them, would remain  valid for the duration agreed upon when they had WT/ACC/SPEC/JOR/6 
Page 34  
 
 been granted. 
3. Internal policies affecting foreign trade in goods 
Industrial policy, including subsidies
 
100. The representative of Jordan said that industria l policy in Jordan had become market oriented, 
rather than development oriented, since 1988.  Th e Government had reduced its involvement in and 
supervision of industrial organizations.  The Minist ry of Industry and Trade assisted the development 
of industry by (i)  helping to develop a business services sector responding to the increasing needs of 
the industrial sector;  (ii) strengthening ups tream and downstream industrial linkages;  
(iii)  encouraging "package contracts" which foster ed full capacity utilization at existing enterprises 
and increasing trade opportunities in local and export markets;  and (iv)  promotion of industrial 
subcontracts and partnerships. 
101. The Central Bank had allocated JD 10 milli on in 1994 and a JD 5 million credit ceiling in 
1995 to finance new industrial projects and expansion of existing enterprises.  The loans were granted 
through the Industrial Development Bank as medium te rm credit (maximum 5 to 7 years) at low rate 
of interest (6 per cent). The Industrial Developm ent Bank charged the lenders an annual interest 
margin and commission of 2.5 per cent for its services. 
102. Concerning adjustment measures in the energy  sector, the representative of Jordan said that 
the Jordan Electricity Authority (JEA) had been  transformed into a public share holding company 
(NEPCO) in 1996.  The company was 100 per cent owned by the Governme nt and operated on a 
commercial basis.  Private sector investment in elec tricity generation was permitted.  The Ministry of 
Energy and Natural Resources (MEMR), assisted by an international consulting firm, was studying 
the establishment of the first Independent Power Proj ect in Jordan.  An independent and transparent 
regulatory commission would be established to regulate the power sector, including electricity pricing. 
103. In the oil and gas sector, the National Resources Authority (NRA) had been partly 
transformed into a national company for explora tion and drilling in 1995.  The National Petroleum 
Company, formed in part with assets separated fro m the NRA, held a concession on the gas-producing 
Risha area.  NPC's drilling operations had been separ ated into a new private company in conformity 
with the Council of Ministers' Resolution of 4 Oc tober 1997.  The NRA was authorized to negotiate 
joint ventures with international companies to generate investment.  WT/ACC/SPEC/JOR/6 
 Page 35 
 
 
 Technical barriers to trade, sanitary and phytosanitary measures  
(a) Standards and certification  
104. The representative of Jordan said that the Jordan Institution for Standards and Metrology 
(JISM) was the official body for the preparation and publication of Jordanian Standards.  JISM had 
been established in 1995 by virtue of the Standa rds and Metrology Law No. 15 for 1994, and was the 
legal and actual successor of the Jordanian Dir ectorate of Standards (founded in 1972).  The main 
tasks of JISM were to (i) prepare, approve, re vise and amend Jordanian mandatory or voluntary 
standards and monitor their application;  (ii) main tain a national system for metrology and supervise 
its implementation;  (iii) grant quality marks and certif icates of conformity;  (iv) control, test and 
hallmark the approved fineness of precious metals an d jewellery;  (v) adopt and approve standards of 
other countries and of Arab, regional and internati onal organizations, provided that such standards 
were issued in Arabic or English;  and (vi) to  cooperate and coordinate with Arab, regional and 
international institutions in the area of standardi zation and metrology.  JISM was a participating 
member of the Arab Organization for Industrial Development and Mining (AIDMO), a corresponding 
member of the International Organization for Sta ndardization (ISO), a corresponding member of the 
International Organization for Legal Metrolog y (OIML), and a contact point for the Codex 
Alimentarius Commission. 
105. Standards were elaborated in technical co mmittees.  JISM circulated draft standards and 
technical regulations to interested parties such  as the Chamber of Industry, the Chamber of 
Commerce, the Consumer Protection Association, re search institutions and testing laboratories, and 
allowed a period of 50 days for comments.  As of early 1998, JISM had begun publication of a bulletin describing the status of ongoing work on st andards.  Jordanian standards were published in 
Arabic and English in the Jordan Standards Ca talogue.  Jordan was working constantly on 
harmonising its standards with international standards. 
106. Domestic and imported goods were required to meet national standards and technical 
regulations applied to protect the health and ensure the safety of consumers.  The Ministry of Health 
was responsible for technical regulations regardi ng drugs and food, while technical regulations for 
serums, veterinary medicines, vaccines and pestic ides fell under the responsibility of the Ministry of 
Agriculture.  Inspections of food and agriculture products at the border were carried out by a 
committee comprising officials from JISM, the Ministry  of Health, the Ministry of Agriculture and 
the customs department.  Samples were tested at Ministry laboratories or other accredited laboratories to ensure they met the set standards before being released from customs.  Jordan applied WT/ACC/SPEC/JOR/6 
Page 36  
 
 internationally recognized standards when these were available.  Imports were not required to comply 
with Jordanian mandatory standards if the product had a minor non-conformity which did not affect 
the performance, safety and health of the user, or the environment.  
107. Asked whether Jordan had any automatic recognition procedures for imported products 
manifestly conform to accepted international standa rds where Jordanian standards did not exist, the 
representative of Jordan said that samples of im ported products, for which there was a Jordanian 
standard, were subject to verification through labora tory testing in Jordan.  Testing was conducted by 
laboratories accredited by JISM at the request of JISM .  Certificate of conformity was not required.  
No verification procedures were applied on importe d goods if Jordanian standards did not exist.  
Jordan had no standards for medicines or medica l equipment;  importers of such goods provided 
documentation indicating circulation of the imported medical equipment in the country of origin.  
Importers of medicines we re required to register the imported product at the Ministry of Health 
(MOH).  Registration was based on manufacturer's sp ecification and/or international standards (e.g. 
USP, BP, EP, etc.).  Imported medicine was subj ect to laboratory analysis by MOH to ensure 
conformity with the information provided at the time of registration.  No certification was required for  
importation of medicine or medical equipment.  As for shelf-life requirements, these were determined 
by the Ministry of Health on a case-by-case basis for each product. 
108. The representative of Jordan said that existi ng legislation and practic es would need to be 
changed to comply with the WTO TBT Agreement in  respect of the elaboration and implementation 
of  standards and mandatory requirements, border inspections and the establishment of a TBT enquiry 
point.  The current Standards and Metrology La w addressed only standards, and did not cover 
international guides and recommendations, although th e Jordan Institute for Standards and Metrology 
used such guides and recommendations as reference in the preparation of its regulations.  At present, 
JISM issued both voluntary and mandatory standard s.  The mandatory standards would need to be 
replaced by technical regulations based on the protec tion of heath, safety and environmental aspects.  
Most current Jordanian standards were based on d escriptive characteristics ra ther than performance. 
109. Inspection procedures at the border would need to be streamlined.  Currently, every 
consignment was tested to ascertain compliance wi th Jordanian mandatory standards regardless of 
whether the product had already been subjected to  any conformity assessment procedure.  The TBT 
inquiry point would be established as a division within the information centre at JISM.  The inquiry point would collect all regulations affecting inte rnational trade from othe r government institutions, 
and a mechanism would need to be devised to strengthen the communicati on channels between the 
inquiry point and these institutions.  WT/ACC/SPEC/JOR/6 
 Page 37 
 
 
 110. The representative of Jordan said that Jordan  was reviewing its current legal regime for 
conformity with the TBT Agreement.  [A progress re port will be provided at the next meeting of the 
Working Party.] 
(b) Sanitary and phytosanitary measures  
111. The representative of Jordan said that the Mini stries of Agriculture and Health maintained 
sanitary and phytosanitary standard s to ensure that locally-produced and imported foods, plants, plant 
parts and by-products, animals and animal by-produc ts, and agricultural chem icals were safe and did 
not endanger human, animal or plant health and life.   In Jordan, samples were collected at local 
markets and tested for pesticide residue, animals we re examined before slaughter, and carcasses were 
examined to determine their suitability for human  consumption.  All sanitary and phytosanitary 
regulations were published in the O fficial Gazette, and traders could consult this information at the 
Chambers of Commerce in Jordan.  Jordan was a member of the Codex Alimentarius Commission, 
Prior Informed Consent (PIC), the International O ffice of Epizootics (OIE), the Food and Agriculture 
Organization (FAO), the World Health Organizati on (WHO) and the International Atomic Energy 
Agency (IAEA), and worked together with these organizations in establis hing and applying sanitary 
and phytosanitary measures.  Jordan was not a member of the International Plant Protection 
Convention, but adopted and implemented the standards of this organization. 
112. Import activities were governed by the Agricu lture Law No. 20 for 1973  and other relevant 
regulations and instructions issued by the Ministry  of Agriculture and the Ministry of Health.  A 
health certificate was required for each shipment.  Imported goods not satisfying Jordan's sanitary and 
phytosanitary requirements were re -exported or destroyed.  In 1997,  65 consignments (out of 51,000 
customs transactions) had been re-exported because th ey did not meet Jordanian requirements.  The 
most frequent cause of non-compliance related to shelf-life requirements for foodstuffs.  
Consignments of live animals, frozen and chilled me at, poultry meat, hatching eggs, pesticides, seeds, 
animal fodder and organic fertilizers were subject to inspection or quarantine.  A list of all quarantine 
pests would be submitted to the Working Party.  Cont rol measures applied in Jordan to control pests 
included the use of pesticides, soil fumigation with methyl bromide and soil solarization, if possible. 
113. Concerning shelf-life requirements for foodstuffs , the representative of Jordan said that these 
were based on Jordan Standard 288/1994 "On Shelf Li fe for Foodstuff" and Jordan Standard 401/1997 
"On Shelf Life for Infant and Children's Foodstuff", issued and administered by the Jordan Institution 
for Standards and Metrology.  The standards had b een prepared by specialised technical committees, 
taking into consideration the climatic and storage conditions in Jordan.  The shelf-life requirements 
applied equally to impor ted and domestic goods. WT/ACC/SPEC/JOR/6 
Page 38  
 
 114. Asked whether Jordan was considering work ing towards the concept of equivalence, the 
representative of Jordan said that Jordan accepted IS O procedures.  JISM also intended to issue new 
regulations for the acceptance of sanitary and phy tosanitary measures of other countries.  The 
exporting countries would need to demonstrate th at their measures achieved the same level of 
consumer health protection as in Jordan.  Jordan was pr epared to accept inspection certifications from 
other countries on a mutual basis.  Jordan did not apply stricter sanitary and phytosanitary measures 
than set out by international standards organizations on any product. 
115. The representative of Jordan said that Jordan would require a transitional period to comply 
with the provisions of the Agreement on the Applica tion of Sanitary and Phyt osanitary Measures.  In 
particular, Jordan needed time to upgrade its te sting laboratories and educate their staff in the 
application of new requirements.  [A progress repor t will be provided at the next meeting of the 
Working Party.] 
Trade-Related Investment Measures (TRIMs)
 
116. The representative of Jordan said that Jordan did not maintain any measures inconsistent with 
the TRIMs Agreement.  His Government applied the principle of national treatment and did not resort 
to performance requirements which could affect trade. 
117. The representative of Jordan said that Jordan would not maintain any measures inconsistent 
with the TRIMs Agreement and would apply th e TRIMs Agreement from the date of accession 
without recourse to any transition period.  The Working Party took note of this commitment. 
State trading entities  
118. The representative of Jordan said that the government sector was gradually moving out of 
importing food products.  The private sector could now import all products previously subject to 
government monopoly such as rice, sugar, wheat, barley, frozen meat and poultry, and his 
Government had thus far never refu sed to provide prior approval for goods where this was required.  
The Directorate of Internal Trade at the Ministry of Industry and Trade continued to import wheat and one brand of dried milk (Halibuna) in competition w ith the private sector.  He noted that any private 
sector importer could import milk powder into Jordan.  The Directorate of Internal Trade at the 
Ministry of Industry and Trade sold fodder products directly to farmers through its distribution 
outlets.  Jordan was currently evaluating whether or  not the Directorate of Internal Trade at the 
Ministry of Industry and Trade was a State trading entity.  WT/ACC/SPEC/JOR/6 
 Page 39 
 
 
 119. The Jordan Civil Consumers Corporation (JCCC)  was an enterprise organized for the benefit 
of government employees.  JCCC operated on a comme rcial basis and sold imported and Jordanian 
products at its outlets at prices slightly below the regular market prices.  The Agricultural Marketing 
Organization (AMO) was an agricultural marketing board regulating trade in agricultural products 
with other Arab countries in accordance with bilatera l trade agreements or trade protocols.  In this 
regard, AMO issued recommendations to the customs department whether or not to exempt imports 
from customs duties in compliance with the agreemen ts.  AMO also monitored the quality of imports 
to ensure compliance with Jordania n quality standards.  AMO did not engage in actual importation or 
exportation, and did not interfere regarding the prices of products imported or exported.  AMO served 
as an information centre as it collected trade and pri ce statistics and other relevant information.  AMO 
conducted market studies;  researched new export mark ets;  assisted private sector participation at 
international trade fairs and exhibitions;  pub lished brochures, guidebooks  and newsletters for 
producers, exporters and importers ;  and monitored the quality of fresh produce exported from Jordan. 
120. Asked about the activities of the Agricultur al Marketing and Processing Company (AMPCO), 
the representative of Jordan said th at this was a company in the pr ocess of being privatized.  AMPCO 
owned and operated processing plants for tomatoes and citrus fruit, and marketed agricultural produce 
locally and internationally.  The comp any had no exclusive trading rights. 
121. Importation and exportation of  some products were reserved for particular enterprises in 
accordance with their laws.  The products and co mpanies involved are listed in Table 9.  The 
enterprises could also benefit from tariff exempti ons granted by the Council of Ministers upon special 
decision.  All companies, except the tyre manufactur ers, had been granted customs duty exemptions.  
The representative of Jordan added that the exclus ive rights were provided as part of the concession 
packages and agreements w ith these companies, and that the exclus ive rights would continue to be in 
effect for the duration of the concessions. 
Table 9:  Exclusive rights to import or export  
HS Code Product Enterprise Reason for restriction 
41.01+ 
41.02+ 41.03 Natural raw leather Jordan Tann ing Co. The Law of the Company 
27.09 Petroleum and   
derivatives,  excluding   
mineral oils Jordan Petroleum Refinery 
Company 
(JPRC) The Law of the Company 
73.11 Gas cylinders  for house 
use JPRC The Law of the Company 
25.23 Black cement Jordan Cement Factories 
Co. The Law of the Company WT/ACC/SPEC/JOR/6 
Page 40  
 
 HS Code Product Enterprise Reason for restriction 
28.34 Ammonium Nitrate Jordan Phosphates Mining 
Co. (JPMC) The Law of the Company 
and because it is also used 
as input for explosives 
25.10 Raw Phosphates JPMC  The Law of the Company 
36.01 
36.02 
36.03 Gun Powder  salt and 
explosives JPMC The Law of the Company 
and for security reasons 
40.12 Used  automobile   tires Tyre  factories for safety and ecological 
reasons 
122. Some members queried whether the enterprises me ntioned had the right to restrict trade, in 
which case Jordan was requested to indicate how it would amend this practi ce to bring it into 
conformity with Article XI of the GATT.  Jordan was requested to describe the special or exclusive 
privileges relating to importation and exportation by completing the State trading questionnaire for the 
Jordan Tanning Company, the Jordan Petroleum Re finery Company, the Jordan Cement Factories 
Company, the Jordan Phosphates Mining Company,  the Fertilizers Company, the Arab Potash 
Company, and the Arab Company for Manufacturing White Cement.  Some members sought confirmation that Jordan was prepared to notify fi rms with special and exclusive privileges as State 
trading enterprises within the meaning of Artic le XVII of the GATT 1994 an d the Understanding on 
the Interpretation of Article XVII, and to observe  the provisions of the WTO, including Article XVII 
of the GATT in their operation. 
123. In reply, the representative of Jordan said th at the enterprises listed in Table 9 traded on the 
basis of market demand and their own needs.  The fact that these firms received tariff exemptions did 
not, in his view, make them State trading comp anies.  Jordan was currently reviewing these 
enterprises according to the definition provided un der the Understanding on the Interpretation of 
Article XVII of the GATT 1994, and would provide information in the format of the State trading questionnaire for all enterprises falling under this defi nition in June 1999.  Jordan was prepared to 
notify firms identified as State trading enterprises within the meaning of Article XVII of the GATT 
1994 and the Understanding on the Inte rpretation of Article XVII, and to  observe the provisions of the 
WTO, including Article XVII of the GATT in their operation.   
Free zones, special economic areas
 
124. The representative of Jordan said that four fr ee zones were currently operating in Jordan.  The 
Aqaba Free Zone, occupying an area close to one  million square metres, served transit trade and 
goods imported through the port of Aqaba.  The Zone was fully equipped with infrastructure, goods 
handling equipment, storage warehouses, paved open yards and cold-storage facilities.  The Zarqa  WT/ACC/SPEC/JOR/6 
 Page 41 
 
 
 Free Zone covered an area of some 5.5 million s quare metres, serving industrial and commercial 
investment.  The Sahab free zone covered an ar ea of 62,000 square metres, and the Queen Alia 
International Airport Free Zone an area of 20,000 sq uare metres.  In addition, four livestock/private 
free zones operated in Jordan. 
125. The free zones had been established to encour age local and foreign investment, introduction 
of new technology, transit trade and export oriented  industries and were open to any local, Arab or 
foreign investor.  Investors registered with the Co mpanies Registrar.  Industrial and services projects 
established in the free zones enjoyed benefits in the form of (i) profits exempt from income tax for a 
period of twelve years;  (ii) the remuneration of non-Jordanian employees was exempt from income 
tax and social services tax;  (iii) goods imported into the free zones were exempt from customs duties and any other taxes and fees;  (iv) no licensing fees or real estate taxes were applied to the buildings 
constructed within the free zones;  and (v) the ca pital invested and profits earned could be freely 
repatriated.  Goods exported from the free zones, other than to Jordan, were also exempt from 
customs duties and any other taxes and fees. 
Government procurement
 
126. The representative of Jordan said that govern ment procurement practices were governed by 
several laws and regulations depending on the nature  and purpose of the procurement.  Two public 
departments – the Cooperation Organization and the National Aid Fund – enjo yed autonomy in their 
procurement according to their rules and regulations .  Excluding these two bodies, the overall value of 
goods and services purchased by the public sector  amounted to around JD 145 million annually. 
127. Purchases of supplies for government departme nts were subject to Supplies Regulation No. 
32 for 1993 and the Tenders Instructions No. (1) of 1994 issued by the Minister of Finance.  The General Department of Supplies/Ministry of Financ e were responsible for such procurement, which 
was normally conducted by tende ring through the Central Tendering Committee.  The committee 
comprised three permanent members from the General Supplies Department (GSD), the Ministry of 
Industry and Trade and the Ministry of Finance,  and two members from the government department 
applying for the actual purchase. 
128. Tender notices were published in local ne wspapers for three consecutive days.  The 
announcement included the tender identification numb er, information on the requested product, the 
price and final date of sale of the tender documents , and the closing date and time for the submission 
of offers.  Bids were evaluated according to crite ria depending on the genera l and special conditions 
as well as the technical specifications set out in th e tender documents.  Severa l elements of the offer WT/ACC/SPEC/JOR/6 
Page 42  
 
 would be considered, including the price, running cost s, the need for spare parts and maintenance, and 
the commercial capability and reputation of the bi dder.  Most procurement was conducted by open 
tender, but in some cases limited tendering would be applied, in which case a shortlist of qualified 
bidders would be drawn up on the basis of technical  merits and experience.  The Secretariat of the 
tenders committee in the General Supplies Depart ment announced the winning bid on a special 
announcing board (at the GSD) or by any other me thod devised by the Director General, allowing 
four days for objections to be submitted by any pa rticipant.  The tenders committee would consider 
the objections and issue its decision.  A supplier wh ich continued to dispute the award of a contract 
could seek redress through the national courts. 
129. Public works contracts were tendered through the Ministry of Public Works. 130. Local products were given preference over imported products in government tenders.  A 
15 per cent preferential margin was accorded to Jordanian products provided the terms and conditions 
(including quality) were otherwise equal to impor ted products.  Moreover, a contractor procuring 
imported products should buy these in the local market rather than by direct importation. 
131. Jordan did not have any trade agreements w ith other countries covering public procurement.  
Offset arrangements were infrequent and would be handled on a case-by-case basis. 
132. Asked whether Jordan would seek observer status in the Agreement on Government 
Procurement and seek membership in the context of  its accession to the WTO, the representative of 
Jordan said that Jordan would consider su ch a decision after accession to the WTO. 
Transit
 
133. The representative of Jordan said that Jordan  applied the principles of the international 
agreement for road transportation known as TIR.  Transit trade was subject to a toll equal to 
0.3 per cent of the value of the goods in transit (m aximum JD 200).  Transit goods destined to free 
zones were exempt from the fee.  Jordan also charged a diesel fee of JD 80 on transit trade. 
134. Jordan also applied the principles of the Arab Transit Agreement signed on 14 March 1977.  
The Arab Transit Agreement was part of the Arab regional trade arrangements within the Arab League.  The agreement was based on the same principles as the TIR, but set ceilings on the transit fees for Arab vehicles. 
135. Some members noted that transit charges on Arab vehicles were lower than for other 
transporters, and asked how Jordan intended to end its discriminatory sy stem of transit charges.  The  WT/ACC/SPEC/JOR/6 
 Page 43 
 
 
 representative of Jordan acknowledged that the fee for goods passing through Jordan in accordance 
with the Arab Transit Agreement amounted to 0.3 pe r cent, as against 0.4 per cent for other goods, but 
did not consider the system discriminatory.  In add ition, trucks registered in countries which were not 
signatories to the Arab Transit Agreement were subject  to some specific fees regardless of the nature 
of the goods they were carrying.  Loaded trucks paid JD 75 for loads not exceeding 30 tons, JD 100 
for loads between 30 and 40 tons, and JD 150 for loads exceeding 40 tons, as well as a fee of JD 15 
for each one-body loaded truck and JD 25 for a loaded  truck and trailer.  Em pty one-body trucks were 
subject to a fee of JD 5, while an empty truck and trailer paid JD 10.  Jordan also charged JD 10 for 
guard and security escort. 
Agricultural policies  
(a) Imports – description of the typ es of border protection maintained 
136. The representative of Jordan provided detaile d information on Jordan's agriculture sector and 
agricultural policies in document WT/ACC/JOR/14.  Concerning measures pertaining to agricultural 
imports, he said that import regulations had change d substantially in recent years in Jordan.  The 
former Ministry of Supply had been the sole im porter of essential foodstuffs until 1997.  The private 
sector could now import almost any agricultural prod uct against payment of prevailing import duties 
and taxes, and provided the imported product met lo cal quality standards.  However, import bans 
remained on imports of fresh milk to protect dom estic milk producers.  A ban on imported mineral 
water - to support local production in a disadva ntaged area – had been lifted in April 1999. 
137. Import licences were required for most goods, in particular those originating in, and imported 
from, countries and territories with which Jordan had concluded bilateral trade agreements and 
protocols on trade in agricultural goods (details on the agricultural agenda with Lebanon is provided 
in document WT/ACC/JOR/8, details on the impor t arrangements with Oman, Yemen and Palestine 
are found in document WT/ACC/JOR/13.  Prior approval from the Ministry of Agriculture was 
required for importation of live animals;  fresh, ch illed and frozen meat;  and frozen animal semen – 
essentially to ensure that the imported animals and an imal products met local health standards.  The 
Ministry of Industry and Trade issued prior approvals for importation of rice, powder milk, wheat and wheat derivatives, sugar, barley, corn, and milk fo r manufacturing purposes.  The Ministry of Industry 
and Trade monitored the local market to ensure adequate supply of essen tial foodstuffs, and would 
make purchases internationally if private sector imports proved insufficient.  The prior approval 
system was a temporary measure which the Governme nt intended to abolish once satisfied that the 
private sector would respond fully to pr ice signals in the Jordanian market. WT/ACC/SPEC/JOR/6 
Page 44  
 
 138. Some members noted import restrictions on live sheep which, in their view, would appear to 
be a violation of Article XI as well as Article III:4 (national treatment).  The representative of Jordan 
replied that Jordan had recently changed its regulations  regarding importation of live sheep.  A 
previous import restriction based on weight had been changed to a requirement that the imported sheep should be at least one year old.  Jordan was restricting importation of sheep older than 1.5 years as these sheep were more prone to carry diseases, and because Jordan currently did not have the 
technical capacity to cope with the inspection of imported sheep.  However, Jordan was modernizing 
its veterinary inspection services.  The Ministry  of Agriculture conducted periodic and systematic 
inspections of domestic farms to control any disease. 
(b) Exports 139. Exports of agricultural products were gene rally unrestricted except for some fruit and 
vegetables Jordan exported to Leba non and Israel under bilateral agre ements subject maximum limits 
(quotas).  Jordanian exporters were obliged to comp ly with standards and other requirements in the 
importing country, and export of, for example, horticultu ral products typically required a certificate of 
origin issued by the Chamber of Commerce and approved by the Agricultural Marketing 
Organization, a health certificate issued by the Plant Protection Department of the Ministry of 
Agriculture, and an EURI certificate for exports to the EU. 
(c) Internal policies – i.e. description of, and th e budgetary expenditure and any revenue foregone 
involved in each of the domestic support measures in place 
[The Ministry of Industry and Trade has pr ovided information on domestic support and export 
subsidies, circulated in document WT/ACC/SPEC/JOR/2  of 3 July 1998.  Members may also consider 
revised ACC/4 information provided in March 1999.] 
140. The representative of Jordan said that although the direct contribution of agriculture in 
Jordan's GDP was no more than around 5 per cent, it was estimated that about 25 to 30 per cent of 
economic activity was based on agriculture.  The Government supported local producers through a 
combination of means including procurement of domest ic production, and provision of inputs such as 
seeds, water, credit and livestock feed.  The Governme nt  also financed agricultural extension services 
and scientific research to improve productivity in th e agriculture sector.  The principal institutions 
involved in producer support were the Ministry of Agriculture;  the Ministry of Industry, Supply and 
Trade;  the Agricultural Marketing Organization (A MO);  the Agricultural Marketing and Processing 
Company (AMPCO);  the Jordan Cooperatives Cor poration (JCC);  the Jordan Valley Authority 
(JVA);  and the Agricultural Credit Corporation (ACC).  WT/ACC/SPEC/JOR/6 
 Page 45 
 
 
 141. In the past - to ensure production of basic foodstuffs and fodder - the former Ministry of 
Supply had purchased wheat, lentils, chickpeas and barley from farmers at prices announced during 
the planting season.  The Government no longer pur chased commodities from farmers but maintained 
strategic food reserves.  At the end of May 1998, the Ministry of Supply had become a directorate 
within the Ministry of Industry and Trade. 
142. The representative of Jordan said that the Agriculture Marketing Organization (AMO) was a 
government agency formed in 1987 to organi ze and develop the marketing of processed and 
unprocessed agricultural products.  He stressed that  the Agricultural Marketing Organization had 
never been involved in any commercial activity of im porting, exporting, selling or distribution of any 
goods, and that the AMO had never been involved in  any trading operation on behalf of Jordan's 
Government.  Concerning the importation and exportati on of fresh fruits and vegetables, he noted that 
importation of fresh fruits and vegetables was allo wed in principle year round from all countries 
without any restrictions and subject to pre-set custom duty.  Imports from member countries of the Arab Free Trade Area (AFTA) were subject to Arab Calendars set by AFTA, allowing member countries to charge the full customs tariff on their imports of fresh produce from other member 
countries during time periods agreed upon in the a bove mentioned calendars.  Imports from some 
Arab countries with whom Jordan had bilateral tr ade agreements were subject to the terms and 
conditions of the signed agreements and their attached calendars, which enabled imports to enjoy full 
exemption from custom duties during periods set in the calendars.  The role of the AMO in this regard 
was to manage this process by issuing recommendati ons to the customs department on whether or not 
to exempt imports from customs duties in complian ce with each of the mentioned agreements, and to 
monitor the quality of imports and ensure that they  complied with Jordanian quality requirements and 
standards.  In addition, the AMO was respons ible for conducting market studies in local and 
international markets;  assisting and organizing privat e sector participation in international trade fairs 
and exhibitions;  introducing new high value hor ticultural products;  publishing guidebooks, 
brochures, and newsletters on production, mark eting, handling, backing and exportation of 
horticultural products;  and mon itoring and controlling the quality of fresh produce in Jordan, 
including imported and exported pr oducts.  The AMO maintained a complete database on local and 
international prices, and statistics on production, impor ts and exports of fresh horticultural products.
 
143. The Agricultural Marketing and Processing Company (AMPCO) had been established in 
1987 to stimulate production and processing of tomatoes and citrus fruit.  The Government currently 
owned 88 per cent of its shares, but the company w as scheduled for full privatization by the end of 
1999.  AMPCO had paid guaranteed prices, regardless of the market conditions, to tomato farmers in 
the early 1990s, but was now competing with two other processors for available supplies.  The WT/ACC/SPEC/JOR/6 
Page 46  
 
 maximum price paid to tomato producers was now set relative to processing costs and international 
price trends for processed tomatoes.  AMPCO had held exclusive rights to import four primary 
horticultural crops until 1995, when its monopoly rights were removed. 
144. The Jordan Cooperatives Corporation (JCC) provided farmers with supplies and inputs at 
outlets throughout the country.  Its members could obtain inputs at prices slightly below ordinary market prices.  One of JCC's primary current func tions was to distribute certified seeds to farmers at 
subsidized prices, but this practice would be abolis hed in 1999.  The JCC no longer provided loans to 
members at less than market interest rates, but some of the loans granted before 1989 were still 
outstanding.  The value of forgiven loans amounted to approximately JD 32,000 in 1997. 
145. The Jordan Valley Authority (JVA), operating within the Ministry of Water and Irrigation, 
supplied water to agricultural producers and monito red development in the Jo rdan Valley to ensure 
that water use would not exceed the available s upply.  JVA had until recently charged horticultural 
producers for water below cost, but this subsidy ha d been virtually eliminated in 1997.  Producers 
elsewhere in Jordan had no access to subsidized water. 
146. The Agricultural Credit Corporation (ACC) pr ovided soft loans (6 to 8.5 per cent annual 
interest) to farmers and agribusiness investors.  ACC loans were either operational loans of 
12-24 month duration or development loans to be re paid over a maximum of 15 years.  In 1996, ACC 
had provided JD 8 million in operational loans, pr imarily as seasonal or short-term financing of 
production.  ACC development loans were in st rong demand, not just because of the discounted 
interest rates and lack of commissions and fees, but also because commercial banks generally refused 
to provide loans with maturity beyond three years.  Farmers and processors had outstanding debts totalling JD 181 million at the end of 1997.  The estimated interest subs idy amounted to JD 350,000 
on operational loans and JD 330,0 00 on development loans in 1997.  The agriculture sector also 
benefitted from the subsidy component  (maximum 1 percentage point) embodied in the rediscount 
and advance rates established by the Central Bank.  
147. The representative of Jordan said that subsid ies had been removed on wheat, sugar, rice and 
animal fodder.  In line with this policy reform, the price of bread had been increased from 85 to 
250 fils per kg, balanced by cash transfers to affected household meeting an income eligibility 
criterion.  In addition, families with monthly in come of less than JD 500 had received coupons from 
the Ministry of Industry and Trade to obtain rice, su gar, and condensed milk (Halibuna) at subsidized 
prices.  The coupon system had been replaced by a cash subsidy programme for government 
employees at the end of 1997.  Selected commodities – fresh cow milk, yoghurt, and imported fresh meat – were subject to ceiling prices established in negotiations between the Ministry of Industry and  WT/ACC/SPEC/JOR/6 
 Page 47 
 
 
 Trade and representatives of the private sector. 
148. Agricultural income was exempt from income tax.  The exemption applied to domestic sales 
as well as to exports. 
149. The representative of Jordan said that Jordan intended to stimulate agricultural growth and to 
improve resource management by directing and en couraging farmers towards growing agricultural 
products with high economic value.  The Minist ry of Agriculture had identified high-value 
agricultural products suitable to Jordan's climat ic and agronomic conditions, but not yet commonly 
produced in Jordan.  The products were suggested to  producers as alternatives to current crops by the 
extension and advisory services of the Ministry of Agriculture.  In addition, the Agricultural 
Marketing Organisation featured the products at in ternational trade fairs a nd supported experimental 
shipments of such products to potential export mark ets.  He considered these measures "Green box" 
policies. 
150. The representative of Jordan said that domes tic support in the agriculture sector was below 
the de minimis  percentage allowed under Article 6 of th e Agreement on Agriculture.  Jordan did not 
grant any export subsidies to agricultural products. 
Trade-Related Intellectual Property Rights (TRIPS)  
1. General  
(a) Industrial property protection  
151. The representative of Jordan said that his Government recognized the importance of 
introducing new laws and amending existing laws pertaining to intellectual property taking into 
consideration the international intellectual property conventions and the conditions for entry into the 
World Trade Organization. 
152. Some members requested Jordan to submit to the Working Party a plan of action for 
implementation of the WTO TRIPS Agreement by the date of accession.  In their view, Jordan should 
use the period of its accession negotiations to make  the necessary changes in the area of intellectual 
property rights to meet WTO norms, and, as a conseque nce, Jordan was expected to be in conformity 
with the WTO TRIPS Agreement from the date of accession to the WTO, without recourse to any 
transitional period of non-application. WT/ACC/SPEC/JOR/6 
Page 48  
 
 (b) Responsible agencies for polic y formulation and implementation
 
153. The representative of Jordan said that va rious institutions were responsible for the 
formulation and implementation of laws and regulations pertaining to intellectual property rights, 
including the Houses of Parliament, the Council of Mi nisters, the Ministry of Trade and Industry, the 
Ministry of Culture, the Courts of Law, the Cu stoms Department, the National Library, as well as 
television and radio stations. 
(c) Participation in internationa l intellectual property agreements  
154. The representative of Jordan said that Jordan was a member of the Paris Convention for the 
Protection of Industrial Property and the Arab Agreement for the Protection of Copyrights.  Jordan was considering the possibility to accede to the Madrid Agreement (1891) concerning the 
International Registration of Marks;  the Protocol  Relating to the Madrid Agreement concerning the 
International Registration of Marks (1989);  the Nice Agreement (1957) concerning the International 
Classification of Goods and Services for the purposes of  the Registration of Marks;  the "PCT" Patent 
Cooperation Treaty (1970);  the Berne Convention ( 1886) for the Protection of Literary and Artistic 
Works;  and the Rome Convention (1961) for the Protection of Performers, Producers of Phonograms 
and Broadcasting Organizations.  Jordan expected to  join the Berne Convention in the near future, 
while his Government envisaged to accede to the othe r agreements within 5 to 7 years.  However, 
until the time of accession to these agreements, Jordan  would comply with the requirements of the 
TRIPS Agreement upon accession to the WTO.  In early April 1999, the Council of Ministers had 
approved Jordan's accession to the Berne Conven tion and forwarded it for Royal Assent.  The 
Convention would be published shor tly.  The Berne Convention would supersede national laws after 
its publication. 
(d) Application of national and MFN treatment to foreign nationals
 
155. The representative of Jordan said that the curre nt industrial property laws provided foreign 
nationals with treatment equal to that of Jordania n nationals.  Article 38 of the Copyright Protection 
Law would be amended to ensure that non-depos iting of a copyright work at the Documentation 
Centre would not affect the author's rights as sti pulated in the Law.  International conventions and 
reciprocity conditions would be take n into consideration with respect to the protection of works of 
foreign authors published abroad.  The current Copyright Protection Law (Article 53) provided 
protection only for works published or reproduced in  Jordan by Jordanian and foreign authors, and 
works of Jordanian authors published abroad.  Protection of works published abroad would be 
accorded protection in the near future, as Jordan was joining the Berne Convention.  The Amendment  WT/ACC/SPEC/JOR/6 
 Page 49 
 
 
 Copyright Law had been published on 1 October 1998.   Its Article 45 stipulated that non-filing of a 
work of art would not affect the rights of the author provided for in the Law. 
2. Substantive standards of protection, includi ng procedures for the acquisition and maintenance 
of intellectual property rights  
(a) Copyright protection  
156. The representative of Jordan said that protecti on of copyright in Jordan was governed by the 
Copyright Protection Law No. 22 of 1992.  Amendments to the Copyright Law were enacted in 
October 1998.  The Law (Article 3 (a) and (b)) protected original works of literature, art and science 
irrespective of type, importance or purpose, incl uding works of art expressed in writing, sound, 
drawing photography and motion such as books, speeches, plays, musical compositions, films, applied art, three-dimensional works, and computer soft ware.  The Law (paragraph D of Article 3), as 
amended by the Copyright Amendment Law No. 14 of 1998, provided protection to compilations of 
data.  The exclusive rights of the author were enum erated in Articles 8 and 9 of the Law and the terms 
of protection were laid down in Articles 30 to 32.  Works of an author were protected for his lifetime 
and for fifty years after his death (or the death of th e last surviving co-author);  protection for 50 years 
from the date of publication was provided for cinema tographic and television works, any work whose 
author or right holder was a legal entity, any work published for the first time after the death of its 
author, and anonymous and pseudonymous works;  and computer programs, translated works, 
paintings, manuscripts, sculptures, drawings, pict ures, architectural and geographical maps or 
topography, surface or three-dimensional maps were protected for 50 years after the death of the 
author. 
157. Article 17 of the Copyright Law permitte d the use of published works without the 
authorization of the right holder for educational, vocational training, cultural or religious purposes on 
certain conditions.  The representative of Jordan cons idered this provision to be in full conformity 
with Article 10(2) and (3) of the Berne Convention.   Regarding compulsory licensing, he said that 
Jordan's rules concerning the granting of licences fo r translation or copying had been amended to be 
compatible with the regulations of the Annex to the Berne Convention relating to developing 
countries.  Article 11 of the amended Copyright Pr otection Law allowed any person, upon obtaining a 
licence from the Ministry of Culture, to translate a work into Arabic, provided three years had lapsed 
since the date of first publication. 
158. The Copyright Amendment Law No.14 had been enacted in October 1998 to ensure 
compliance with the TRIPS Agreement.  Changes ha d been required to meet the obligations with WT/ACC/SPEC/JOR/6 
Page 50  
 
 respect to compilations of data (Article 10 of th e TRIPS Agreement);  terms of protection (Article 
12);  limitations and exceptions (Article 13);  prot ection of performers, producers of phonograms and 
broadcasting organizations (Article  14);  and enforcement (Articles 41 to 61).  Rental rights were 
provided according to Article 3(b) and 9 of the Copyright Protection Law, but the Law would be amended to give all producers of sound recordings th e right to allow or prohibit direct and indirect 
copying of their sound recordings, or rental of the original copies of recordings.  Jordan would also 
provide retroactive protection for sound recordi ngs in accordance with Article 14 of the TRIPS 
Agreement and Article 18 of the Berne Convention.   The Berne Convention would become effective 
in Jordan in the near future. 
(b) Trademarks, including service marks
 
159. The representative of Jordan said that pr otection was afforded under the Trademarks Law 
No. 33 of 1952, effective since 1 July 1952.  Jord an followed the international classification of goods 
according to the Nice Agreement, and the Tradem arks Law did not provide protection of service 
marks in classes 35 to 42 of the Nice Agreement.  Sepa rate application should be filed with respect to 
each class of goods. 
160. The Jordanian authorities could refuse registra tion of a mark on grounds outlined in Article 8 
of the Trademarks Law.  Applications accepted by the Trademark Registrar were published in the 
Official Gazette, allowing a three-month period for f iling of opposition by any interested party.  All 
decisions of the Trademark Registra r could be appealed to the Highe r Court of Justice.  A published 
trademark was registered, and the certificate of registration was issued, in the absence of opposition.  
A registered trademark was valid for 7 years from the date of filing of the a pplication, and could be 
renewed indefinitely for periods of 14 years (the re gistration periods would be changed to 10 years in 
the amended Trademarks Law).  Proof of use was not a prerequisite for renewal of a registered 
trademark, and Jordanian law did not recogni ze the non-use of a trademark due to special 
circumstances in trade as valid grounds for cancella tion due to non-use.  Among the justifications for 
non-use of a trademark, he mentioned commercia l circumstances (such as recession), and special 
commercial circumstances including force majeure  due to war, floods, Law of God, or Law or action 
of Government.  Any person, including the owner of an unregistered trademark, had the right to object 
to the initial request for registration within three months of its publication in the Official Gazette, 
could demand cancellation of the mark registration, but could not file a civil court case demanding 
compensation for damages and losses. 
161. The current law did not allow the registration of  identical or similar tr ademarks for the same 
goods or any other protected related goods.  No prov ision in Jordanian law prohibited the licensing of  WT/ACC/SPEC/JOR/6 
 Page 51 
 
 
 trademarks.  The recordation of an assignment w as mandatory according to the law.  Concerning 
protection of well-known marks, the representative of Jordan said that Article 8, paragraph 6 of the 
1952 Trademark Law had been used in courts to  protect well-known marks.  Article 25 of the 
Trademark Law provided for invalida tion of trademarks registered in  contradiction of Articles 6, 7 
and 8 of the Trademark Law.  Well-known marks fo r goods and services could not be registered in 
Jordan except in the name of  the legitimate proprietor. 
162. The representative of Jordan said that the existing Trademarks Law would be amended to 
comply with obligations under the TRIPS Agreem ent.  The changes included introduction of 
protection for service marks, well-known marks and collective trademarks;  extension of the grace period for non-use of a trade mark from 2 to 3 year s;  introduction of punishment for infringement of 
well-known marks;  and allowing assignment of a trademark with or without good will.  
(c) Geographical indications, including appellations of origin
 
163. The representative of Jordan said that Jordan ha d no specific legislation covering the subject.  
Geographical names were protectable in accordance with Article 8 (paragraphs 6 and 7) of the Trademarks Law, and this provision had been used in courts to protect geographical indications.  
Supplementary provisions for the protection of ge ographical indications would be included in the 
draft amendments to the Trademark Law. 
(d) Industrial designs
 
164. The representative of Jordan said that industr ial designs were protected under the Patents 
Designs Law No. 22 of 1953, effective since 17 Fe bruary 1953, and the Patents and Designs Order 
No. 1 of 1953.  Industrial designs were registered with the Patents and Industr ial Design Office at the 
Ministry of Industry and Trade.  An industrial design was not subject to novelty examination for 
registration purposes, but the industrial design re gistrar would determine whether the design had a 
certain degree of novelty and qualit y, and was useful with disti nguished design and arrangement.  
Designs could be registered under 15 classes, base d on the materials the goods were made from, under 
the Patents Designs Law.  A design could be re gistered for more than one class, but a separate 
application was required for each class.  Textile d esigns were protected under Jordanian legislation. 
165. A design registration was valid for five years as of the date of filing th e application, and could 
be renewed twice, each time for a period of five year s.  Rejections by the Registrar could be appealed 
to the High Court of Justice within one month.  Any infringement or non-authorized use of a registered design was punishable under the current design law.  The Patents Designs Law contained WT/ACC/SPEC/JOR/6 
Page 52  
 
 no provision for compulsory working or licensing. 
166. The Ministry of Industry and Trade had completed a draft Law for Industrial Designs. 
(e) Patents
 
167. The representative of Jordan said that pate nts were granted under the Patents Designs Law 
No. 22 of 1953 and the Patents and Designs Order No. 1 of 1953.  Once filed, the patent application 
was examined with respect to compliance with th e formalities and patentability provided for under the 
Patents Designs Law.  Jordan's Patent Office c ould stipulate any amendment necessary to bring the 
application into conformity with the Law.  Formal examination was conducted only on patents 
belonging to Jordanians and those filed for the firs t time in Jordan.  There were no examiners at the 
Patent Office.  In all, 1,935 patents had been issu ed in Jordan by the end of January 1997.  Foreign-
owned patents had mainly been issued for pharmac euticals, chemicals, solar energy, construction 
materials, machinery and mechanics, while patents i ssued to Jordanian nationals were mostly related 
to public safety, solar energy, electrical equipment, chemicals and mining. 
168. The patent owner's rights were set out in Artic le 4 of the Law, and there were no restrictions 
on the owner's rights to assign, transfer, or licence rights under a patent except for patents of military 
significance.  However, Jordan required the workin g of patents in Jordan, although the current law 
contained no definition of "working of patents".  A patent would be subject to compulsory licensing 
under the provisions of the Law if the owner of a patented invention did not satisfy the working 
requirement within three years of the date of granting the patent.  A decision to revoke a patent could 
be reviewed by the High Court of Justice. 
169. Infringements of the right of a patentee we re punishable under the provisions of the current 
Patents Designs Law. 
170. The representative of Jordan said that the ex isting patent legislation would need to be 
modified in view of Article 31 of the TRIPS Agreem ent to put more stringent conditions on the use of 
a patented invention without the authorization of the right holder.  Existing legislation also did not 
provide the owner of a patent the exclusive right to prevent a third party from making, offering for sale, selling or importing a product or the process resulting in that product without his consent as required under Article 28:1(a) and (b) of the TRIPS Ag reement.  The patent legislation would also be 
revised to provide for a term of protection of 20 years from the date of filing, as against 16 years 
under present legislation.  Moreover, the Patent s Law No. 8 of 1986 limited the patentability of 
chemical products, and would be  amended to extend patent pr otection to pharmaceuticals and  WT/ACC/SPEC/JOR/6 
 Page 53 
 
 
 agricultural chemical products.  However, Jordan  intended to request a transitional period for 
implementation of the obligations contained in Articles 70.8 and 70.9 of the TRIPS Agreement. 
171. The representative of Jordan said that the dr aft Patent Law (DPL) satisfied the requirements 
of Article 27 of the TRIPS Agreement as its Article  6 provided protection for inventions which were 
new, involved an inventive step, and were capable of  industrial application.  Article 30 of DPL stated 
expressly that pharmaceutical and chemical final pr oducts would be patentable.  The rights of the 
patent owner were regulat ed under Article 21 of DPL and allowe d him/her to prevent third parties 
from exploiting, commercially using, selling, offering to  sell, or importing products or - in the case of 
a patented process - to prevent third parties from using without authorisation the process, selling, 
offering to sell, or importing a product produced by th e process, as well as the right to dispose of the 
patent inter vivos , in succession, or to licence the patent. 
172. Concerning the filing of patent applica tions containing claims for medical drugs, 
pharmaceutical compositions and food products, a member noted that Article 70.8 of the TRIPS 
Agreement stipulates that Members shall provide a m eans by which applications for patents for such 
inventions can be filed as from the date of entry into force of the WTO Agreement.  In reply, the 
representative of Jordan said that the filing of patent  applications containing claims for medical drugs, 
pharmaceutical compositions and food products would be accepted as from the date of entry into force 
of the Law (Mail Box Requirement), i.e. one month after its publication in the Official Gazette.  
However, Jordan wished to take advantag e of the grace period provided in Article 65  of the TRIPS 
Agreement for developing countries, and intended to negotiate a transitional period to delay the 
provision of patent protection for final produc ts which could be used as medical drugs, 
pharmaceutical compositions and food products. 
(f) Plant variety protection  
173. The representative of Jordan said that Jordan ha d no existing legislation covering the subject.  
A plant variety protection law was in preparation. 
(g) Layout designs of integrated circuits  
174. The representative of Jordan said that Jordan ha d no existing legislation covering the subject.  
WIPO had been requested to draft a law addressing the requirements of Articles 35-38 of the TRIPS 
Agreement.  Jordan was planning to  join the Washington Treaty on In tellectual Property in Respect of 
Integrated Circuits of 1989 over a period of seven years. WT/ACC/SPEC/JOR/6 
Page 54  
 
 (h) Requirements on undisclosed information, including trade secrets and test data
 
175. The representative of Jordan said that Jordan ha d no specific legislation covering the subject.  
However, the Jordan Civil Code of 1976 provid ed protection for trade secrets in employment 
contracts.  Jordanian legislation also allowed compensation for damages and losses if the owner of a trade secret could prove that damage had been inf licted on him.  He considered existing legislation 
fulfilled the requirements of Article 10 bis of the Paris Convention, incorporated by reference in 
Article 39 of the TRIPS Agreement. 
176. Asked specifically about im plementation of Article 39.3 of the TRIPS Agreement, which 
provides for a special protection regime for data submitted for registration of new pharmaceutical and 
agrochemical products, the represen tative of Jordan said that his Government was drafting a trade 
secrets law. 
3. Measures to control abuse of intellectual property rights
 
177. The representative of Jordan said that the Co pyright Law No. 22 of 1992 included provisions 
(Articles 42, 46, 47 and 51) on the control of abuse of copyright.   Article 36 of the draft amended copyright law would give copyright office staff in th e Department of the National Library the status of 
judiciary officers in implementing the provisions of the Law.  Article 22/3 of the Patents Designs Law 
stipulated the conditions under which the owner of a patent could be or dered by a court of law to grant 
a licence for use of his patent.  Regulations to control abuse also existe d under the Trademarks Law 
and the Patents Designs Law.  The amended trademarks law would address the issue of contractual 
licensing of trademarks. 
4. Enforcement
 
(a) Civil judicial procedures and remedies  
178. The representative of Jordan said that the Jord anian Civil Code, the Code of Civil Procedure, 
the Merchandise Law, and the Trademark Law cont ained provisions relating to civil judicial 
procedures and remedies.  A detailed comparison of Jordanian legislation with Articles 42-48 of the 
TRIPS Agreement was provided in document WT/A CC/JOR/18 (pp.66-69).  Damages for injury in 
infringement cases could be claimed with reference to Articles 256 and 257 of the Jordan Civil Code. 
(b) Provisional measures  
179. The representative of Jordan said that pro cedures invoked in accordance with the Jordanian  WT/ACC/SPEC/JOR/6 
 Page 55 
 
 
 Code of Civil Procedure (Articles 32 and 115)  corresponded to the conditions, effects, and 
requirements mentioned in Article 50 of the TRIPS Agreement.  His Government was taking steps to 
ensure systematic applicability of these pr ovisions to intellectual property rights. 
(c) Administrative procedures and remedies  
180. The representative of Jordan said that no administrative procedures and remedies were 
available at present. 
(d) Special border measures  
181. The representative of Jordan said that the 1998 Customs Law contained provisions providing 
for the prohibition of importation of goods contradic ting the provisions of intellectual property laws.  
The copyright law, trademark law and draft patent law contained provisions regarding the prohibition 
of importation of infringing goods.  However, cu stoms control and enforcement of intellectual 
property laws needed further elaboration, and his Government was currently revising these provisions. 
(e) Criminal procedures  
182. The representative of Jordan said that Jordania n legislation contained no special procedures 
beyond those laid down in the Tr ademarks Law and the Mercha ndise (Commodities) Marks Law 
No. 19 of 1953.  The actions considered unlawful and the penalties for trademark infringement were 
defined in Article 38 of the Trademarks Law.  Viol ations were punishable by imprisonment up to one 
year and/or a fine not exceeding JD 100.  A person imitating or using a patent without the permission 
of the patent holder, or giving false indication of a patented article, would be liable to imprisonment 
up to six months and payment of a fine not less th an JD 1,000 to 5,000 acco rding to the new draft 
amended patent law. 
Policies affecting trade in services  
[Jordan has submitted information on its existing re gime in services in the format of WT/ACC/5 in 
document WT/ACC/SPEC/JOR/4 of 6 January 1999.  Jord an's offer in services h as been circulated in 
document WT/ACC/SPEC/JOR/5 of 7 January 1999.] 
183. The representative of Jordan said that trade in services was regulated under various laws and 
regulations, the most important of which were th e Investment Promotion Law No. 16 for 1995, the 
Companies Law No. 1 for 1989, the Foreign Investment Regulation No. 1 for 1996, the Central Bank 
Law No. 19 for 1979, the Foreign Exchange Law No. 95 for 1966, the Banks' Law No. 24 for 1971, WT/ACC/SPEC/JOR/6 
Page 56  
 
 the Money Exchange Dealings Law No. 37 for 1992, the Labour Law No. 37 for 1988, and the 
Residency and Foreigners Affairs Law No. 5 for 1991. 
184. The financial sector in Jordan consisted of the Central Bank of Jordan (CBJ), banks licensed 
by the CBJ, and other specialized credit institutio ns.  Fifteen commercial banks, including five 
branches of foreign banks, operated in Jordan along with six private investment banks and one 
industrial development bank.  Th e Central Bank examined applica tions to establish new banks on a 
case-by-case basis, and subject to an economic needs test.  There were no numerical limitations on the 
establishment of branches of foreign banks.  The capital of a new bank should be at least JD 20 million, with the share of foreign capital not exceeding 50 per cent, and not less than JD 5 million for branches of foreign banks.  In practice, there were no limitations imposed on licensed banks regarding the number or total value of their operations.  Jordan was drafting new legislation for 
the banking sector.  The licensing procedures appli cable to domestic and fo reign banks would be 
modified and developed with emphasis on capital requirements, the quality of management, and 
innovative or novelty services. 
185. Insurance services were regulated by the In surance Law No. 30 for 1984 and its amendments 
on the control of insurance activities, and Regulati on No. 33 of 1995 regarding insurance companies.  
Insurance companies were supervised  by the Office of the Controller of Insurance in the Ministry of 
Industry and Trade.  The Controller granted insura nce companies yearly permission, renewable upon 
request, to perform insurance activities.  In  1998,  27 insurance companies - with a total capital of 
JD 65.5 million - operated in Jordan.  The minimu m capital for a local insu rance company was JD 2 
million, or JD 4 million for a branch of a forei gn company or its accredited agent.  The capital 
requirement for a local reinsurance company was minimum JD 20 million.  Non-Jordanian investors 
could own up to 50 per cent of the capital of an  insurance company.  All insurance companies 
registered in Jordan were required to be member of a Federation.  Before commencing operations, an 
insurance company was required to deposit with a commercial bank an amount to protect the holders 
of insurance policies against any default on its pa rt.  A foreign insurance company or its accredited 
agent was required to deposit the double of the amount required by a Jordanian insurer. 
186. Concerning telecommunication services, the repr esentative of Jordan said that the sector was 
regulated by the Telecommunications Law No. 13 fo r 1995.  The sector was in the process of 
restructuring.  An independent Telecommunicati ons Regulatory Commission had been established, 
while policy formulation and development was carri ed out by the Policy Department within the 
Ministry of Posts and Telecommunications.  The national operator – the Telecommunications Corporation (TCC) had been transformed into a State-owned company as a first step towards  WT/ACC/SPEC/JOR/6 
 Page 57 
 
 
 privatization.  The TCC held a monopoly on the pr ovision of basic telephone services, while licences 
had been issued to private suppliers of cellular mobile telephone, data, pagi ng, news service and pay-
phone services. 
187. Tourism activity was essentially private-sector  oriented.  In the past, the Government had 
owned a substantial stake in the Jordan Hotels and Tourism Company, but the shares had been sold to 
a private company.  The sector was expanding rapidly, and new hotels were built with private 
Jordanian and foreign capital.  Tourist bus tran sportation had been a monopoly held by a private 
company until 1994, but this sector was now open to other service providers. 
188. The representative of Jordan said that Arab  economic agreements contained some provisions 
on facilitating the movement of workers among the countries. 
Transparency  
[to be completed] 
Trade agreements  
189. The representative of Jordan said that Jordan  was a member of several multilateral economic 
organizations which aimed at promoting trad e and economic cooperation among its members, 
including the International Monetary Fund, the International Bank for Reconstruction and 
Development, the Multilateral Investment Gu arantee Agency, the World Intellectual Property 
Organization and the International Labour Organiza tion.  Among the regional institutions, Jordan was 
a member of the Arab Monetary Fund, the Isla mic Development Bank, the Arab Fund for Economic 
and Social Development, and the Arab Council for Economic Unity. 
190. Jordan had concluded bilateral trade agreemen ts with many countries (listed in Annex 7 of 
document WT/ACC/JOR/3).  These agreements were generally based on the MFN principle, although 
some agreements with Arab countries included trade preferences.  Preferentia l treatment was accorded 
to specific goods included in protocols annexed to these agreements.  However, Jordan had terminated 
all trade protocols, except with Lebanon, in 1995.  The representative of Jordan said that the bilateral 
agreements did not include countertrade and barter arrangements.  In the past, trade with Sudan had 
been subject to countertrade and barter, but these arrangements had not been renewed.  The trade agreement with Iraq essentially provided Iraqi oil in exchange for Jordanian exports.  Previously, the 
agreement had a credit arrangement component, but this was no longer the case (since 1997).  Jordan 
had concluded bilateral investment promotion a nd protection agreements with Germany, France, 
Turkey, Switzerland, Malaysia, Romania, United Kingdom, Tunisia, Yemen, Egypt, Italy, Algeria, WT/ACC/SPEC/JOR/6 
Page 58  
 
 Indonesia, the United States, the Czech Repub lic, Poland, the Netherlands and Morocco. 
191. Jordan was a member of the Arab Common Ma rket Agreement (ACM) together with Egypt, 
Iraq, Mauritania, Libya, Syria and Yemen.  Jo rdan was also a member of the Agreement for 
Facilitating and Developing Trade Exchange among Arab States.  Members of the Agreement – 
Bahrain, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Palestine, Qatar, Saudi Arabia, Somalia, 
Sudan, Syria, Tunisia, United Arab Emirates a nd Yemen – exempted various products from customs 
duties and taxes, including agricultural and livestoc k products;  raw materials;  goods and products 
with at least 40 per cent value added in the expor ting country (or minimum 20 per cent value added if 
all inputs were imported from Arab countries);  a nd goods and products produced by joint Arab 
enterprises.  Further products could be added to the preferential arrangement (the current product 
coverage is provided in document WT/ACC/JOR/8 pp.75-76).  The Agreement also eliminated all 
non-tariff measures (quotas, bans and other quantitative  restrictions);  however, the agreement had not 
functioned as envisaged.  In June 1996, the Arab League/Economic and Social  Council had decided to 
replace the Agreement with a new free-trade area agre ement.  Jordan signed the Arab Free Trade Area 
Agreement (AFTA) on 1 January 1998, activated in  March 1998, and implemented the first round of 
tariff cuts on that date, but on a reciprocal basis, i. e. the reductions were only effective for other Arab 
League members implementing the same reductions.  Tariffs between member countries would be 
eliminated over a ten-year period.  Pursuant to full implementation of the Agreement, Jordan would 
eliminate import duties on approximately 94 per cent of its (six digit) tariff lines, and AFTA would 
cover about 21 per cent of Jordan's trade.  The A FTA Agreement itself did not include provisions on 
the application of non-tariff measures, but the AFTA implementation prog ramme prohibited the use 
of non-tariff measures such as quantitative restri ctions and import licensing for non-exempt and non-
prohibited products.  Although the implementati on programme did not cover non-tariff measures 
applied to prohibited and exempted products, Jordan  did not intend to use non-tariff measures except 
where non-tariff measures were applied by other Parti es to the agreement (recipr ocal treatment).  The 
AFTA Agreement did not cover services. 
192. Jordan had concluded an agreement with Egypt to create a free-trade area among them by 
2005.  Customs duties and other equi valent taxes were reduced by 10 per cent annually.  Some 48 
products, representing 1,450 tariff lines at the six-di git level, were temporarily excluded from the 
agreement.  Agricultural products also benefitted from the tariff reductions, except for certain fruit 
and vegetables which were subject to seasonal restri ctions.  The agreement was not yet effective as 
Egypt had not ratified the agreement.  Jordan had signed a free trade area agreement with Algeria.  
Further details concerning Jordan's regional trade relations with neighbouring countries are described 
in Table 10.  WT/ACC/SPEC/JOR/6 
 Page 59 
 
 
 Table 10:  Preferential treatment gran ted under Jordan's bilateral agreements  
Bilateral agreement 
with: Preferences granted: 
Bahrain Full free-tr ade area agreement 
Egypt Free-trade area by 2005 
Israel 10 per cent tariff reduction for 66 products originating in Israel 
Kuwait Free movement for agricultural and livestock products.  Customs duties and equivalent 
taxes reduced by 20 per cent annua lly for specific industrial products 
Libya Free movement for all products originating in both countries 
Oman Free movement for agricultural, livestock and fish products 
Palestine Duty free access for 60 products originating in the Palestinian Territories 
Qatar Mutual exemptions from customs duties for agricultural products and natural 
resources.  Lists of duty free industrial products to be established. 
Saudi Arabia Duty free treatment for 166 products 
Sudan Customs duties exemptions for agricultural, livestock and industrial products 
Syria Customs duties exemptions for agricultural, natural resources and industrial products 
193. In 1977, Jordan had signed a cooperation ag reement with the EC which offered Jordan 
seasonal preferential treatment (tariff cuts) for so me of its agricultural exports.  Jordan had 
subsequently negotiated a new agreement within the Euro-Mediterranean partnership agreements, 
leading to a free-trade area to be reached after 12 years from the date of entry into force of the 
partnership agreement.  The partnership agreement also covered services, social and cultural affairs, 
and financial cooperation.  The ag reement was expected to be impl emented on 1 January 1999.  All 
industrial products and natural res ources originating in Jordan woul d enter duty free in the EC, while 
EC industrial products benefitte d from annual duty reductions over the 12 year implementation 
period.  The agreement excluded some products orig inating in the EC from preferential treatment.  
The agreement contained specific import procedur es and safeguards with respect to trade in 
agricultural products.  Tariff rates applied by Jo rdan are detailed in document WT/ACC/JOR/18, 
page 74.  Jordan expected that about 65 per cen t of the goods imported from the EC would receive 
preferential treatment.  The trade-weighted averag e tariff applicable to imports from the EC was 
24.51 per cent. 
194. Some members asked Jordan to provide deta ils of its Agreement w ith the United States on 
duty free areas.  The representative of Jordan replie d that the United States had proposed the concept 
of Qualified Industrial Zones (QIZ), extending duty  free status to products of the West Bank, 
Gaza Strip and Qualified Industrial Zones.  Thus fa r, only the Irbid (Al-Hassan) Qualifying Industrial 
Zone had been established in Jordan.  The QI Z provided non-reciprocal duty free access to the 
United States' market, provided the products fulfilled certain conditions.  The direct cost of producing 
operations performed in the QIZ should account for at  least 35 per cent of the appraised value of a 
product at the time of entry into the United States.  Th is could result either by (i) at least one-third (or 
11.7 per cent) being contributed by the Jordanian ma nufacturer in the QIZ, one third by an Israeli WT/ACC/SPEC/JOR/6 
Page 60  
 
 manufacturer(s), and the remainder by production at the QIZ, the West Bank/Gaza Strip, in Israel or 
in the United States;  or (ii) by Jordanian and Is raeli manufacturers maintaining at least 20 per cent of 
the total production cost of QIZ-produced good(s), including originating materials, wages and 
salaries, design, research and development, deprec iation of capital investment, overhead expenses, 
including marketing expenses, etc. 
[Conclusions
 
195. The Working Party took note of the explana tions and statements of Jordan concerning its 
foreign trade regime, as reflected in this report.  The Working Party took note of the assurances given 
by Jordan in relation to certain sp ecific matters which are reproduced in 
paragraphs................................. of this report.  The Working Party took note of the commitments 
given by Jordan in relation to certain specifi c matters which are reproduced in paragraphs 
............................ of th is report.  The Working Party took note  that these assurances and commitments 
had been incorporated in paragraph 2 of the Protocol of Accession of Jordan to the WTO. 
196. Having carried out the examination of the forei gn trade regime of Jordan and in the light of 
the explanations, commitments and concessions made  by the representative of  Jordan, the Working 
Party reached the conclusion that Jordan be invited to accede to th e Marrakesh Agreement 
Establishing the WTO under the provisions of Article  XII.  For this purpose, the Working Party has 
prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix to this report, and 
takes note of Jordan's Schedule of Specific Co mmitments on Services (document WT/ACC/JOR/......) 
and its Schedule of Concessions  and Commitments on Goods (doc ument WT/ACC/JOR/.....) that are 
annexed to the Protocol.  It is proposed that th ese texts be adopted by the General Council when it 
adopts the report.  When the Decision is adopte d, the Protocol of Accession would be open for 
acceptance by Jordan which would become a Member thirty days after it accepts the said Protocol.  
The Working Party agreed, therefore, that it had co mpleted its work concerning the negotiations for 
the accession of Jordan to the Marrak esh Agreement Establishing the WTO.] 
[to be completed]  WT/ACC/SPEC/JOR/6 
 Page 61 
 
 
 ANNEXES 
ANNEX 1 
Laws, Regulations and Other Information Provided to the Working Party by Jordan  
- Customs Law No. 16 of 1983; 
- Law No. 20 on Customs (1998); - Law No. 14 for 1992 - Import and Export Law; 
- Regulation No. 74 (1993) - Import and Export Regulation; 
- Law No. 7 on Unifying Other Taxes and Fees (1997); - Law No. 6 (1994) – General Sales Tax Law; - Income Tax Law No. 57 of 1985, Law No. 2 of 1992 and Law No. 14 of 1995; - National Production Protection Law No. 4 of 1998 (Safeguards Law); 
- Investment Promotion Law No . 16 of 1995 and Regulations; 
- Regulation No. 39 (1997) – Non-Jordan ian Investments Promotion Regulation; 
- Law No. 15 of Standards and Metrology, effec tive 16 January 1995 (unofficial translation); 
- Jordanian Standards Nos. 288 and 401; - Regulation No. 32 (1993) – Gove rnment Procurement Regulation; 
- Agricultural Law No. 20/1973; 
- Law No. 9 Amending the Law on the Control of the Insurance Business and Regulation 
No. 33 of the year 1995 on Insurance Companies (unofficial translation); 
- Banking Legislations in Jordan (1994); - Commodities' Marks Act No. 19 of 1953; - Telecommunications Law of the Year 1995; 
- Patents and Designs Law and Rules (1953); 
- Trade Mark Law and Regulations in  Hashemite Jordan (1 July 1952); 
- Companies Law No. 22 of 1977; - Draft Amended Copyright Law No. 22 of 1992; - Banking Legislation in Jordan (1994); - Instructions No. 4 for the Year 1995 – Preparation of Jordanian Standards; 
- Tenders Regulation No.1 of 1994; 
- Securities Law of 1997 (unofficial translation);  and - Telecommunications Law No. 13 of 1995 (unofficial translation).  [to be completed] WT/ACC/SPEC/JOR/6 
Page 62  
 
 [APPENDIX 
ACCESSION OF THE HASHEMITE KINGDOM OF JORDAN
 
Draft Decision  
The General Council,  Having regard
 to the results of the negotiations di rected towards the establishment of the 
terms of accession of the Hashemite Kingdom of Jord an to the Marrakesh Agreement Establishing the 
World Trade Organization and having prepared a Protocol for the Accession of the Hashemite 
Kingdom of Jordan, 
 Decides , in accordance with Article XII of the Marrakesh Agreement Establishing the World 
Trade Organization, that the Hashemite Kingdom of  Jordan may accede to the Marrakesh Agreement 
Establishing the World Trade Organization on the terms set out in the said Protocol.] 
  WT/ACC/SPEC/JOR/6 
 Page 63 
 
 
 [PROTOCOL OF ACCESSION OF THE HASHEMITE KINGDOM OF JORDAN 
TO THE MARRAKESH AGREEMENT ESTABLISHING 
THE WORLD TRADE ORGANIZATION 
DRAFT 
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the 
approval of the General Council of the WTO accord ed under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organization (hereina fter referred to as "WTO Agreement"), and the 
Hashemite Kingdom of Jordan (hereina fter referred to as "Jordan"),  
 Taking note  of the Report of the Working Party on th e Accession of Jordan to the WTO in 
document WT/ACC/JOR/... (hereinafter referre d to as the "Working Party Report"), 
 Having regard  to the results of the negotiations on the accession of Jordan to the WTO, 
 Agree  as follows: 
Part I - General  
1. Upon entry into force of this Protocol, Jordan accedes to the WTO Agreement pursuant to 
Article XII of that Agreement and thereby becomes a Member of the WTO. 
2. The WTO Agreement to whic h Jordan accedes shall be the WTO Agreement as rectified, 
amended or otherwise modified by such legal inst ruments as may have entered into force before the 
date of entry into force of this Protocol.  This Protocol, which shall include the commitments referred 
to in paragraph ... of the Working Party Report, sh all be an integral part of the WTO Agreement. 
3. Except as otherwise provided for in the paragra phs referred to in paragraph ... of the Working 
Party Report, those obligations in the Multilateral Trade Agreements annexed to the WTO Agreement 
that are to be implemented over a period of time st arting with the entry into force of that Agreement 
shall be implemented by Jordan as if it had accepted th at Agreement on the date of its entry into force. 
4. Jordan may maintain a measure inconsistent  with paragraph 1 of Article II of the GATS 
provided that such a measure is recorded in the list of Article II Exemptions annexed to this Protocol 
and meets the conditions of the Annex to the GATS on Article II Exemptions. WT/ACC/SPEC/JOR/6 
Page 64  
 
 Part II – Schedules
 
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and 
Commitments annexed to the General Agreement on Tariffs and Trade 1994 (hereinafter referred to 
as the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreement 
on Trade in Services (hereinafter referred to as "GATS") relating to Jordan.  The staging of 
concessions and commitments listed in the Schedu les shall be implemented as specified in the 
relevant parts of the respective Schedules. 
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date 
of that Agreement, the applicable date in resp ect of the Schedules of Concessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
Part III - Final Provisions   
7. This Protocol shall be open for acceptance, by signature or ot herwise, by Jordan until ......... 
8. This Protocol shall enter in to force on the thirtieth day following the day of its acceptance. 
9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-
General of the WTO shall promptly furnish a certifie d copy of this Protocol and a notification of 
acceptance thereto pursuant to paragraph 7 to each member of the WTO and Jordan. 
10. This Protocol shall be registered in acco rdance with the provisions of Article 102 of the 
Charter of the United Nations. 
11. Done at Geneva this ... day of  .... one thousand nine hundred a nd ninety ....., in a single copy 
in the English, French and Spanish languages eac h text being authentic, except that a Schedule 
annexed hereto may specify that it is authen tic in only one or more of these languages.]  WT/ACC/SPEC/JOR/6 
 Page 65 
 
 
 ANNEX 
  
SCHEDULE – HASHEMITE KINGDOM OF JORDAN 
 
 
Part I – Goods 
 
[To be completed] 
 
 
 
Part II – Services 
 
[To be completed] 
 
 
__________