WORLD TRADE
ORGANIZATIONG/STR/N/4/JOR
G/STR/N/5/JORG/STR/N/6/JOR
5 January 2001
(01-0031)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
New and Full and Updating Notifications Pursuant to Article XVII:4(a)
of the GATT 1994 and Paragraph 1 of the Understanding
on the Interpretation of Article XVII
JORDAN
The following communication, dated 20 December 2000, has been received from the
Permanent Mission of Jordan.
_______________
TABLE OF CONTENTS
Page
I. JORDAN CEMENT FACTORIES....................................................................................1
II. JORDAN PETROLEUM REFI ONERY CO. LTD..........................................................4
III. JORDAN PHOSPHATE MI NES CO. LTD......................................................................7
IV. VEGETBLE OIL INDUSTRIE S......................................................................................11
V. JORDAN TANNING CO. LTD........................................................................................13
VI. MINISTRY OF I NDUSTRY AND TRADE ....................................................................15
I. JORDAN CEMENT FACTORIES
1. Description of Enterprise
(a) Describe, item by item, the functioning of such enterprises and state, in particular, whether
the enterprise deals with exports or with imports, or both?
Jordan Cement Factories was established in 1951 as a public shareholding company for the
purpose of supplying the Jordanian market with all its cement needs.
Jordan Cement Factories is the sole producer, importer, and exporter of all the Hashemite
Kingdom of Jordan’s cement needs.
As a result of a fifty-year concession agreement with the Government of Jordan, which will
end in the year 2001, Jordan Cement Factories has the exclusive right to search, extract and produce
cement and cement by-products in any area or land of the Hashemite Kingdom of Jordan for thepurpose of supplying the local market with all its demand for cement.G/STR/N/4/JOR
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Jordan Cement Factories also has the right to trade in cement and cement by-products in the
Hashemite Kingdom of Jordan and abroad either directly or indirectly through means it deemssuitable.  It also has the right to engage in activities that it judges as advantageous, whether mentioned
or not mentioned in its charter, and in general to execute all objectives mentioned in its charter.
Jordan Cement Factories is the sole importer and imports to sell locally whenever there is
shortage in its supply to the local market that cannot be met through the capacity of its factories.
As a result of the concession agreement, Jordan Cement Factories has the right to import its
requirements for material, equipment, and tools exempt from custom duties through special
legislation, with the exception of certain items.
Jordan Cement Factories’ current registered capital is JD 60,444,460 divided into 60,444,460
shares.  Its shares are traded on the Amman Financial Market.
As of 31 December 1999, distribution of shares was as follows:43% La Farge, a French strategic partner
27% Jordanian investors including employee ownership14% Jordan Investment Corporation.
9% The Social Security
7% Non Jordanian
Jordan Cement Factories currently has two factories.  One is in Fuhais, and the other is in
Rashadieh.
(b) Whether private traders are allowed to import or export and, if so, on what conditions?
Private traders are not allowed to import.  However, Jordan Cement Factories contracts with
local agents for export of its production that exceeds cement demands of Jordan.  This is in addition to
an export terminal in Sudan. Currently, the company exports directly its exportable production.
(c) Whether there is free competition between private traders and the State-trading enterprise?
There is no free competition with the private traders.  Jordan Cement Factories is the sole
importer and exporter of cement under a concession agreement, which is scheduled to end in 2001.
(d) The criteria used for determining the quantities to be exported or imported. How export prices
are determined.  How the mark-up on imported products is determined. How export prices
and re-sale prices of imports compare with domestic prices?
The criteria used to determine the quantities to be exported are, after providing the local
market with its cement needs and the strategic st orage quantity for fulfillment of local demand, based
on production capacities, market prices, and other factors related to profitability.  Therefore, export
prices are based on international prices.
Cement is imported only if local demand cannot be met through local production, a case that
has not happened since the 1980's.  However, if the importation of cement is required, the resale price
of the imported cement is the same as that set for locally-produced cement, even if the importedG/STR/N/4/JOR
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cement must be sold at a loss.  Therefore, the sale price of the imported cement is the same agreed-
upon price of the locally produced cement.
The price of locally-produced cement sold in the local market is calculated based on a
formulae that includes the total cost of production plus a minimum of 6 per cent profit and a
maximum of 15 per cent profit, which is calculated based on an aggregate five year period.
(e) Whether long-term contracts are negotiated by the State-trading enterprise; Whether State-
trading methods are used to fulfill contractual obligations entered into by the government?
Long-term contracts are negotiated by Jordan Cement Factories. These contracts are mostly
technical in nature. State trading methods are not used to fulfill contractual obligations entered into by
the government.
2. Statistical Information
Jordan Cement Factories
Product / year 1999 1998 1997 1996
Clinker
National Production- ton 2.4 million 2,441,674 3,054,508 2,982,979
Production of enterprise- ton 2.4 million 2,441,674 3,054,508 2,982,979
National Production-USD N.A 66,404,939 78,370,155 71,542,082
Production of enterprise-USD N.A 66,404,939 78,370,155 71,542,082
National exports in tons 197,000 144,082 0 0
Company exports in tons 197,000 144,082 0 0
National exports in USD 5,300,000 4,178,384 0 0
Company exports in USD 5,300,000 4,178,384 0 0
National imports in tons 0 0 0 0
Company imports in tons 0 0 0 0
National imports in USD 0 0 0 0
Company imports in USD 0 0 0 0G/STR/N/4/JOR
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Cement
National Production- ton 2.7 million 2,650,279 3,250,484 3,512,190
Production of enterprise- ton 2.7 million 2,650,279 3,250,484 3,512,190
National Production-USD N.A 98,268,408 116,256,977 118,483,285
Production of enterprise-USD N.A 98,268,408 116,256,977 118,483,285
National exports in tons 445,000 429,522 975,537 951,215
Company exports in tons 445,000 429,522 975,537 951,215
National exports in USD 11,299,000 11,545,983 35,087,637 38,621,156
Company exports in USD 11,299,000 11,545,983 35,087,637 38,621,156
National imports in tons 0 0 0 0
Company imports in tons 0 0 0 0
National imports in USD 0 0 0 0
Company imports in USD 0 0 0 0
Clinker and Cement Sales(JOD) 95,000,000 92,515,575 104,114,142 109,570,767
Clinker and Cement Sales(USD) 133,950,000 130,671,716 147,053,873 154,760,970
3. Reasons why no foreign trade has taken place (if this is the case) in products effected
Jordan Cement Factories has not imported in more than five years because its production
capacity currently meets local demand and its fluctuations.  Export activity has been noted.  Please see
section 2.
4. Additional Information
None
II. JORDAN PETROLEUM REFINERY CO. LTD. (JPRCL)
1. Description of Enterprise
(a) Describe item by item, the functioning of such enterprise and state in particular whether the
enterprise deals with exports or with imports or with both?
JPRCL was established in 1956 as a public shareholding company. Currently 52 per cent of
the issued share capital is owned by individuals, 11 per cent by companies, 12 per cent by banks,17.5 per cent by government, 7 per cent by Savings and Provident Funds, and .5 per cent  by others.
JPRCL is registered in Amman Financial Market  (AFM) and its shares are traded publicly to local
and foreign investors subject to the laws and regulations of AFM.
JPRCL’s main activities and functions include:
• Refining and processing crude oil to meet local demand for the following hydrocarbon products:
Liquid Propane Gas (LPG), Gasoline, Avtur, Kerosene, Light Gas Oil, Fuel Oil, and Asphalt.G/STR/N/4/JOR
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• Producing lubricating oil under the brand name of JOPETROL.
• Bottling of LPG and maintaining LPG cylinders.
• Servicing airport station to provide national and international carriers with fuel.
Law No. (19) was issued to approve the concession agreement signed between the
Government of Jordan and JPRCL.  The concession agreement, which is valid for fifty years, grants
JPRCL the exclusive rights to establish and invest in facilities for refining and processing petroleum
and hydrocarbon products and derivatives; to store and distribute these products; and to own and lease
land.  The company also has exclusive rights to import oil and hydrocarbon products necessary for
local use.  Concession agreement is valid through year 2008.
JPRCL was also granted an exemption from all fees and customs duties charged on goods and
materials imported for the company's operations in addition to raw material imported for its refining
use.
Import activities :
Crude Oil: JPRCL imports  crude oil under protocol agreement in coordination with the
government.
Hydrocarbon products: JPRCL imports hydroc arbon products under protocol agreement in
coordination with the government.
LPG and base oil: JPRCL imports base oil under protocol agreement in coordination with thegovernment.
Additives and other materials: JPRCL purchases additives and other materials through
tenders.
LPG Cylinders: JPRCL manufactures and imports LPG cylinders to meet local market
demand through tenders.  JPRCL is the sole importer.
Exports activities :
JPRCL does not export any of the refined or other related material  mentioned above.  No
export activities are conducted.
(b) Whether private traders are allowed to import or export and, if so, on what conditions?
Private traders are not allowed to import crude oil, hydrocarbon products (LPG, gasoline, fuel
oil and light gas oil), base oils and additives and LPG Cylinders.
Private traders are allowed to import lubricating oils, but they are not allowed to set up
manufacturing operations of such oils.
Export activities do not take place.
(c) Whether there is free competition between private traders and the State trading enterprises?
There is not free competition between private traders and the State traders except in the sale
of lubricating oils.  JOPETROL (brand name) lubricating oil, produced by JPRCL, competes withG/STR/N/4/JOR
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other imported products in the local market and is estimated to have over 80 per cent of the local
market share.
(d) Criteria used for determining the quantities to be exported or imported.
Quantity of imports is based on the country’s demand. JPRCL, in coordination with the
government, determines a yearly import plan which specifies the quantities of raw materials and
finished products to be imported taking into consideration the production requirements and capacities
of the refinery.  All other trading activities are the sole concern of JPRCL and are tendered in the local
and international markets.
No export activities take place.
(e) How export prices are determined; how the ma rk-up on imported products is determined; how
export prices and the re-sale prices of import compare with domestic prices?
According to the terms of the concession agreem ent, the Government of Jordan has the right
to determine and control prices of oil, crude oil and products supplied for local consumption. JPRCL
should submit to the government a detailed statement of the production costs and on that basis sales
prices and mark-ups are determined.
The cost price of crude oil supplied by the government is determined using the following
equation: Cost of Crude Oil = Revenues- (Costs + Net Income)
The consumer prices equal the production cost  plus fees plus company commissions plus
transportation costs plus distributors' commissions. Consumer prices differ from one product to
another.
The government sets prices. In setting prices  the government takes into consideration the
economic situation that is prevailing in the country and the purchasing power of the citizens of Jordan.
Prices are not changed frequently.
There are no export prices.
(f) Whether long-term contracts are negotiated by the State-trading enterprise; whether States
Trading methods are used to fulfill contractual obligations entered into by the government.
State trading methods are used to fulfill contractual obligations for certain materials and
products. The following illustrates which of these products this applies to:
Crude Oil : JPRCL imports crude oil under protocol agreement in coordination with the
government.
Hydrocarbon products : JPRCL hydrocarbon products under protocol agreement in
coordination with the government.
LPG and base oil : JPRCL imports base oil under protocol agreement in coordination with
the government.  If the amounts required by JPRCL are greater than the protocol quota, JPRCL
purchases the additional quantities of LPG and base oil through international tenders.G/STR/N/4/JOR
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Additives and other materials : JPRCL purchases additives and other materials through
tenders.
LPG Cylinders : JPRCL manufactures and imports LPG cylinders to meet local market
demand through tenders.
2. Statistical Information
Jordan Petroleum Refinery Company
Product/ Year 1999 1998 1997 1996
Hydrocarbon Products/ Tons 3,265,985 3,236,873 3,257,268 3,154,247
Lubricating Oils/ Tons 18,387 19,423 20,166 22,292
LPG Cylinders (12.5 kg) 50,900 56,550 80,000 96,250
Total Production/ Tons 3,284,372 3,256,296 3,277,434 3,176,539
Drums/ Numbers 1,000 1,050 1,377 2,796
Drums with Asphalt/ Numbers 12,000 12,149 12,424 15,231
Imports/ Tons N/A N/A N/A N/A
Crude Oil/ Tons 3,499,105 3,557,778 3,442,658 3,274,296
Hydrocarbon Products 1,101,543 1,152,660 932,437 1,192,207
Base Oils 14,585 14,268 16,476 23,915
Additives 774 2,446 2,153 2,714
Cylinders (12.5kg) 0 200,000 150,000 150,000
Company production/ JD 406,691,733 413,903,112 391,371,711 351,854,432
Company production/ USD 572,805,258 582,962,130 551,227,762 495,569,623
Company imports/ JD 486,190,129 463,491,583 449,921,520 452,269,443
Company imports/ USD 684,774,830 652,805,046 633,692,281 636,999,215
Source: Jordan Petroleum Refinery Company annual reports.
3. Reasons why no foreign trade has taken place (if this is the case) in products affected
Foreign trade has taken place.  Please see answer to Section 2 above.
4. Additional Information
None.
III. JORDAN PHOSPHATE MINES CO. (JPMC)
1. Description of Enterprise
(a) Describe item by item, the functioning of such enterprise and state in particular whether the
enterprise deals with exports or with imports or with both?
JPMC was established in 1935 as a private company, and was later registered as a public
shareholding company in 1953. The government a nd the private sector jointly own JPMC.  JPMC
shareholders presently are:  Jordan Investme nt Corporation (42.2 per cent), Social Security
Corporation (28.4 per cent), Government of Kuwait (16.3 per cent), Others (7.5 per cent),  The
Housing Bank (2.5 per cent),  Arab Petroleum In vestment Corporation (1.3 per cent), Arab MiningG/STR/N/4/JOR
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Company (1.3 per cent), and Islamic Development Bank – Jeddah (.5 per cent).   JPMC is registered
on the Amman Financial market and its shares are traded publicly to local and foreign investors
subject to the laws and regulations of Amman Financial Market.
JPMC extracts phosphate from four different mines in Jordan.  JPMC has “Mining Rights” for
these locations, which were granted by the Government of Jordan based on Law No. 12 of Natural
Resources 1968 (mining rights No. 1 and 2) for thirty years.  Mining rights are subject to re-
negotiation and renewal once they expire.
The mining rights for Hasa, Rusaifa and Wadi Al Albiad locations are valid from
17 December 1968 to 16 December 1998.    Mining rights for El- Shaidiah location are valid from
November 1987 to November 2017.
According to JPMC’s company law, the company has the right to export directly or sell
through intermediaries if and only if intermediaries adhere to the marketing policies of the company.For this activity, the enterprise deals with exports.
JPMC’s industrial complex in Aqaba produces different types of fertilizers and fertilizer raw
materials, and markets them in the local and international market.  Presently, the fertilizer complex
produces: DAP fertilizers (DI-Ammonium Phosphate), sulphuric acid, phosphoric acid and aluminumfluoride.  JPMC has the right to export directly or through intermediaries if intermediaries adhere to
the marketing policies of the company.  Other fertilizer companies operate in Jordan and compete
freely.
Currently, JPMC is a partner with Indo Jordan Chemicals Co., Nippon Jordan Fertilizer Co.,
FFC-Jordan Fertilizer Co., and Hydro Agri, Jordan.  These companies are totally independent entities
registered in accordance to Companies Law in Jordan.  These companies have sales agreements with
JPMC to buy phosphate and other raw materials from JPMC.  Sales agreements are usually valid for
ten years and thereafter re-negotiated.
JPMC also is the sole importer of explosive materials used for mining and quarrying purposes
in accordance with the Prime Minister's instruction dated 29 May 1979.  The instructions give JPMCthe exclusive responsibility for importing, storin g and selling explosive raw materials in Jordan.
Currently, instructions to import and store explosive materials are indefinite. For this activity,
enterprise deals with imports.
The main reason for granting this exclusivity is security, given the fact that JPMC is the prime
user of these raw materials.  Currently JPMC im ports the following:  ammonium nitrate (used for
explosive purposes), detonating fuses, safety fuses, ordinary aluminum detonators, electrical
detonators, igniters, and sodium nitrate.  Special gelatin is presently bought from the local market,
however, other local enterprises have to still buy gelatine through JPMC.
(b) Whether private traders are allowed to import or export and, if so, on what conditions?
Phosphate rocks:  To date, JPMC has been the sole exporter of phosphate in Jordan. Local
private traders are not allowed to export.  International private traders are allowed to export if they are
opening new markets and they are not undercutting the prices of JPMC in international markets.There is no restriction on import of phosphate rocks; however, no imports have been made due to the
fact that Jordan has large deposits of phosphate.G/STR/N/4/JOR
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Fertilizers and other raw materials currently being produced by JPMC’s industrial complex:
to date, JPMC is the sole exporter of its fertilizer and raw materials production.  Other private traders
can import and export the different types of fertilizers and raw materials.
Explosive raw materials:  Private traders are not allowed to import or export the above-
mentioned explosive materials.  Users can only purch ase same from JPMC subject to the approval and
direct supervision of the Police Department.
(c) Whether there is free competition between private traders and the State-trading enterprise?
With regard to phosphate there is no free competition between the State-trading enterprise and
private traders as JPMC has the exclusive right to mine and the ability to designate who may export.
With regard to fertilizers and other raw materials, JPMC directly imports its needed raw
material and directly exports to international market.  Private traders can export finished products ifthey do not undercut JPMC prices and penetrate the markets where JPMC sells.   Other fertilizer
companies operate in Jordan and are free to conduc t their commercial activities as they see fit.
With regard to explosive materials, there is no competition between private traders and the
State Trader, as private traders are not allowed to import or sell these materials.
(d) Criteria used for determining the quantities to be exported or imported.
Phosphate:  the main criteria used for determining quantities to be exported are tenders,
estimated level of international demand and anticipated market penetration rate, production capacitiesof the different mines, sales agreements that have  already been concluded with local Joint Ventures
and spot trade for trial purposes.
DAP Fertilizers (DI-Ammonium Phosphate) and other related raw materials: the main criteria
are production capacities and spot tenders.  Production capacities are limited.
Explosive Materials:  Quantities purchased depend on JPMC needs, local market demand and
the availability of storage space.  JPMC consumes 80 per cent of total imports.  Given the fact that
these raw materials require significant space for safety measures, the responsible department usually
imports a supply of two months to minimize explos ion risks, especially ammonium nitrate (explosive
grade).
(e) How export prices are determined; how the ma rk-up on imported products is determined; how
export prices and the re-sale prices of imports compare with domestic prices.
Phosphate: export prices currently are determined by international commodity prices.  Prices
are set in accordance with prevailing phosphate prices in the international market, which are highlyrelated to demand.
Fertilizers DAP, (DI-Ammonium Phosphate):   prices are determined by international prices,
which change on weekly basis.  The main price indicators are the North Africa (Morocco and Tunis),
Russia and US fertilizer market prices.
Explosive Materials:  currently, the re-sale price of imports is determined as follows: Cost +
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expenses are very high due to high security measures that the Police and Department of Security
require.
(f) Whether long- term contracts are negotiated by the State-trading enterprise; whether State
Trading methods are used to fulfill contractual obligations entered into by the government.
Contracts are negotiated on commercial basis.  JPMC has not fulfilled contractual obligations
entered to by the government.
2. Statistical Information:
Jordan Phosphate Mines Co.
Product / Year 1999 1998 1997 1996
Phosphate
National Production- ton 6,013,610 5,925,000 5,895,000 5,355,000
Production of enterprise- ton 6,013,610 5,925,000 5,895,000 5,355,000
National Production-US D N.A. N.A. N.A. N.A.
Production of enterprise-USD N.A. N.A. N.A. N.A.
National exports in tons 4,447,119 4,560,000 4,718,000 4,352,000
Company exports in tons 4,447,119 4,560,000 4,718,000 4,352,000
National exports in USD 187,752,900 194,360,000 202,744,000 178,421,000
Company exports in USD 187,752,900 194,360,000 202,744,000 178,421,000
Source: JPMC Annual Report and Finance Department
JPMC
Explosive materials
Product / Year 1999 1998 1997 1996
Ammonium Nitrate/ Explosive grade
National Imports volume/tons 22,869 20,000 17,000 12,000
National Imports value/USD - - -
Co. imports in Volume/ton 22,869 20,000 17,000 12,000Co. imports in value/USD 4,733,883 5,120,745 3,875,652 2,851,799
Detonating Fuse/ Cortex
National Imports volume/meters 2.7m  6.0 m  6.0 m  4.0 m
National Imports value/USD - - - -Co. imports in Volume/meters 2.7m  6.0 m  6.0 m  4.0 m
Co. imports in value/USD 272,230 682,611 704,225 421,070
Safety Fuse/regular
National Imports volume/meters 1.0 m 250,000 250,000
National Imports value/USD
Co. imports in Volume/meters 0 1.0 m 250,000 250,000
Co. imports in value/USD 0 81,986 19,014 15,549G/STR/N/4/JOR
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Ordinary Aluminum Detonator
National Imports volume/piece 0 0 0.5m 0
National Imports value/USD
Co. imports in Volume/piece 0 0 0.5m 0
Co. imports in value/USD           22,723
Electric Detonator
National Imports volume/piece 0 0 1.0m 0
National Imports value/USDCo. imports in Volume/piece 0 0 1.0m 0
Co. imports in value/USD          132,207
Igniters
National Imports volume/piece 0 0 15,000 0
National Imports value/USD
Co. imports in Volume/piece 0  0 15,000 0
Co. imports in value/USD 10,845
Sodium Nitrate
National Imports volume/ton 0 50 0 0
National Imports value/USD
Co. imports in Volume/ton 0 50 0 0
Co. imports in value/USD 0 24,627
Source: Jordan Phosphate Mines Co.
National imports = Co. imports
*Army and other Security figures are not available
3. Reasons why no foreign trade has taken place (if this is the case) in products affected
Foreign trade has taken place.  Please see answer in section 2.
4. Additional information
None
IV. JORDAN VEGETABLE OIL INDUSTRIES CO. LTD.
1. Description of Enterprise
(a) Describe item by item, the functioning of such enterprise and state in particular whether the
enterprise deals with exports or with imports or with both?
Jordan Vegetable Oil Industries Co. Ltd. is a public shareholding company that was
established in 1956.  The company produces edible vegetable oils and ghee (margarine) and sells in
the local and international market.  Previously, the company’s concession agreement gave them theexclusive rights to produce and export vegetable oil.  The concession was valid for thirty years
effective from 1956 through 1986 (Decision of the Prime Minister No. 181, dated 26 March 1956).
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applicable only to vegetable ghee (margarine) and not oils.  Concession agreement is valid through
the year 2001.  The enterprise deals with exports only.
In practice, however, exclusivity is not enforced.  It is estimated that nine other companies are
licensed to produce ghee (margarine) and oil, and so me of these companies export their production to
international markets.
(b) Whether private traders are allowed to import or export and, if so, on what conditions?
Private traders are not allowed to export vegetable ghee (margarine) as per the terms of the
concession agreement.  Nevertheless, as noted above, export activities have taken place during the
past years by other manufacturers and private traders. Jordan Vegetable Oil industries Co. Ltd., either
exports directly or through private traders to international markets.   There is no restriction on imports
(c) Whether there is free competition between private traders and the State trading enterprises?
There is free competition.  Other companies have licenses to produce vegetable ghee
(margarine) and do sell them in the local and international markets.  Jordan Vegetable Oil Industries
Co. Ltd. exports through private traders and directly.
(d) Criteria used for determining the quantities to be exported or imported.
The main criterion used for determining quantities to be exported is demand.
(e) How export prices are determined; how the ma rk-up on imported products is determined; how
export prices and the re-sale prices of import compare with domestic prices?
Export prices are determined by international market prices. Pricing is determined on
competitive basis.
(f) Whether long-term contracts are negotiated by the State-trading enterprise; whether State
Trading methods are used to fulfill contractual obligations entered into by the government.
Contracts are negotiated on commercial basis. Jordan Vegetable Oil industries Co. Ltd. does
not fulfil contractual obligations entered to by the government.
2. Statistical Information
Jordan Vegetable Oil Industries
Co. Ltd.
Product / year 1999 1998 1997 1996
Ghee (margarine) (Vegetable origin)
National Production- ton N.A N.A N.A  N.A
Production of enterprise- ton 21,911 27,682 23,188  21,108
National Production-USD N.A N.A N.A N.A
Production of enterprise-USD N.A N.A N.A N.A
National exports in tons N.A N.A N.A N.A
Company exports in tons 5,903 17, 189 12,751 10,328G/STR/N/4/JOR
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National exports in USD N.A N.A N.A N.A
Company exports in USD 5,597,116 14,570,814 11,464,632 10,302, 290
Source: company figures / Jordan Vegetable Oil Industries Co. Ltd.
* Exchange rate used USD 1.708: JD1
3. Reasons why no foreign trade has taken place (if this is the case) in products effected
Foreign trade has taken place. See section 2.Exclusive rights of the concession agreement are not enforced, as noted above.  It is estimated
that nine other companies are licensed to produce Ghee (margarine) and oil and some export their
production to international markets.
4. Additional information
The Jordan Vegetable Oil Industries Company is  no longer exempt from Customs Tax as of
March 2000.  This has resulted in a 5.5 per cent- 6 per cent increase in costs.
V. JORDAN TANNING CO. LTD. (JTCL)
1. Description of Enterprise
(a) Describe item by item, the functioning of such enterprise and state in particular whether the
enterprise deals with exports or with imports or with both?
JTCL was established in 1957 as a public shareholding company.  The government and the
private sector jointly own JTCL.  JTCL is regist ered on the Amman Financial Market  (AFM) and its
shares are traded publicly to local and foreign investors subject to the laws and regulations of AFM.
JTCL concession agreement was granted in 1962.  Law No. 9 was issued, to enact and
notarize the concession agreement granted by the Government of Jordan.  The concession is valid for
forty years and will expire in March 2002.   The concession agreement grants JTCL the exclusive
right to import rawhides and skins, the exclusive right to export rawhides and skins, and the exclusive
right to export tanned leather.  Other traders may import tanned leather for use in their manufacturing
operations.  The enterprise deals with export and imports.
JTCL main activities include local purchase of rawhides and skins, importation of required
rawhides and skins, tanning of leather (in part or in whole), export of tanned leather, and manufacture
of shoes.  Currently, JTCL produces the following types of leather: upper leather, lining leather, sole
leather, and pickled leather.
Shoe manufacturing activity is primarily for boots.  Two-thirds of the JTCL leather
production goes to JTCL’s own shoe factory that manufactures mainly army boots to supply Jordan’s
armed forces, air force, public security and civil defense.G/STR/N/4/JOR
G/STR/N/5/JOR
G/STR/N/6/JOR
Page 14
(b) Whether private traders are allowed to import or export and, if so, on what conditions?
Private traders are not allowed to import or export rawhides and skins.  Private traders are
allowed to import tanned leather.  Private traders are not allowed to export tanned leather.
(c) Whether there is free competition between private traders and the State trading enterprises?
For tanned leather there is free competition in importing.  Private traders can import any type
of leather from international markets.
JTCL is the only exporter of tanned leather in the local market as it is the only enterprise that
tans leather.
For rawhides and skins there is no competition.
JTCL is the only major buyer in the local market.  Some trading activity is apparent in the
local market amongst traditional and hand craft shops, but is not of major importance.
JTCL is the only exporter of rawhides and skins in Jordan.
(d) Criteria used for determining the quantities to be exported or imported
The main criteria used to determine the quantities of rawhides and tanned leather to be
imported are JTCL own consumption (shoe factory) and local market needs, if any.  For exporting, the
main criteria are JTCL production capacity, export market demand, and availability of local supply ofrawhides and skins.
(e) How export prices are determined; how the ma rk-up on imported products is determined; how
export prices and the re-sale prices of import compare with domestic prices?
JTCL's export prices for tanned leather and rawhides and skins are determined in accordance
with international market rates. Free competition - supply and demand - is the major determinant ofprice.
JTCL's resale prices of imports of rawhides and skins are determined in accordance with
actual expenses plus profit.  Given the fact that JTCL is the only tanning company in Jordan, there is
no basis for price comparison to other domestic prices.
(f) Whether long-term contracts are negotiated by the State-trading enterprise; whether State
Trading methods are used to fulfill contractual obligations entered into by the government.
All contractual obligations are negotiated on commercial basis. JTCL does not fulfill any
contractual obligations entered into by the government. Sales to the Government of Jordan are usually
tendered and awarded to best bidder.G/STR/N/4/JOR
G/STR/N/5/JOR
G/STR/N/6/JOR
Page 15
2. Statistical Information
Jordan Tanning Co. Ltd.
Product / year 1999* 1998 1997 1996
Leather
National Production-sq ft 2,347,903  3,033,648 4,204,082 4,250,404
Production of enterprise- sq ft 2,347,903 3,033,648 4,204,082 4,250,404
National Production-kg 27,184 33,650 46,679 54,388
Production of enterprise- kg 27,184 33,650 46,679 54,388
National Production-USD N.A  N.A.  N.A.  N.A.
Production of enterprise-USD N.A  N.A.  N.A.  N.A.
National exports in sq ft N.A  N.A.  N.A.  N.A.
Company exports in sq ft N.A  N.A.  N.A.  N.A.
National exports in kg N.A  N.A.  N.A.  N.A.
Company exports in kg N.A  N.A.  N.A.  N.A.
National exports in USD 1,260,437 2,046,334 4,170,899 10,745,889
Company exports in USD 1,260,437 2,046,334 4,170,899 10,745,889
National imports in sq ft N.A  N.A.  N.A.  N.A.
Company imports in sq ft N.A  N.A.  N.A.  N.A.
Company imports in JOD 12,881 375,000 237,000 700,000
Company imports in USD 22,000 528,169 333,803 985,915
Source: Jordan Tanning Co. Ltd. / Annual reports and Finance Department.
*Exchange rate JD1: USD1.708
3. Reasons why no foreign trade has taken place (if this is the case) in products effected.
See section 2.
4.  Additional information
None
VI. MINISTRY OF INDUSTRY AND TRADE
1. Description of Enterprise
(a) Describe, item by item, the functioning of such enterprise and state in particular whether the
enterprise deals with exports or with imports or with both?
The Ministry of Industry and Trade (“Ministry”) is the major importer of wheat bran for
animal feed. The Ministry only imports the country’s needs in times of drought.  The Ministry does
not engage in any export activities.G/STR/N/4/JOR
G/STR/N/5/JOR
G/STR/N/6/JOR
Page 16
(b) Whether private traders are allowed to import or export and, if so, on what conditions?
Private traders are allowed to import.  No export activities have taken place during the past
three years.  There is no restriction on exports.
(c) Whether there is free competition between private traders and the State trading enterprises?
There is free competition.
(d) Criteria used for determining the quantities to be exported or imported.
The main criteria used for determining quantitie s to be imported is demand of feeding needs
of the livestock owners, particularly in drought conditions, as well as price.
No export activity.
(e) How export prices are determined; how the ma rk-up on imported products is determined; how
export prices and the re-sale prices of import compare with domestic prices?
The Ministry only imports in emergencies and in times of drought, therefore, it sells imported
wheat bran at a loss.
(f) Whether long-term contracts are negotiated by the State-trading enterprise; whether States
Trading methods are used to fulfill contractual obligations entered into by the government.
No long-term contracts are negotiated.  The Mi nistry puts a tender for purchasing wheat bran
for animal feed.  The Ministry makes purchases from the source(s) that offer(s) the best bid.
2. Statistical Information
During the year 1999, the government imported 11,434 tons of Wheat Bran.
3. Reasons why no foreign trade has taken place (if this is the case) in products effected
Foreign trade has not taken place during the period 1990-1998 because there was no drought
during this period.
4. Additional information
None.
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