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Home > Custom Law > Chapter Three - Factors on Basis of Which Import or Export Duties are Applied

Factors on Basis of Which Import Or Export Duties are Applied

 

Article 9:

Notwithstanding the provisions of any other law or legislation, the goods entering the kingdom shall be subject to the customs duties prescribed in the customs tariff and the other due fees and taxes except the goods excluded under the provisions of this Law or the provisions of the encouragement of investment Law or any concession Law or any international agreement.
 

Article 10:

 The duties of the customs tariff shall be either advalorem ( in percentage of value of goods ) or qualitative ( a lump sum for each unit of the commodity). The fees of the tariff could be both advalorem and qualitative for the same kind of goods.
 

Article 11:

 The ordinary customs tariff shall be applied to goods from all countries, subject to provisions of article 12 of this law.
 

Article 12:

 Preferential Tariff duties shall apply to goods originating in countries bound up with the Kingdom by agreements granting preferential statuses pursuant to such agreements.
 

Article 13:

  1. The council of ministers shall form a senior customs committee from those who are well-experienced where the minister shall be the chairmen. Its duty is to give consultation in respect of whatever may help in achieving the purposes of this law.

  2. A council called customs tariff council shall be formed and consist of: minister of finance as chairman, minister of trade and industry, minister of supply and the director as members.

Article 14:

 Customs Tariff schedules shall be issued, and customs duties shall be imposed, amended, canceled and the effective date thereof shall be determined by a decision from the council of ministers upon recommendation from the customs tariff council. The decision shall be published in the official gazette.
 

Article 15:

 Upon recommendation of the customs tariff council, the council of ministers shall decide to:

  1. Impose compensating fees on some imported goods.

  2. Take the necessary measures including quotas to counteract measures taken by some countries which are harmful to national economy.

  3. Take measures provided for in this article in compliance with safegarding national economy to the extent that the council of ministers deems necessary

 

Article 16:

Imported goods declared for free circulation or for re- export and goods coming from free zones and duty-free shops to be submitted for local consumption shall be subject to the customs tariff duties in force at the date of registering their customs declarations at customs houses.
 

 

Those goods intended for re-exportation and on which customs duties have been paid before wholly entering the customs zone, the part of those goods which has not yet entered shall be subject to the tariff in force upon entering the customs zone.
 

Article 17:

 The declarant may, upon a written request from the owner of the goods, apply for the directors approval to subject goods declared for local consumption to the tariff classification of the highest rate.
 

Article 18:

  1. When duties on goods stored in the warehouse are due for collecting by reason of expiry of the deposit delay period and failure to extend it, the provisions of the tariff in force at the time of expiry of the deposit delay period shall be applied.
     

  2. The goods withdrawn illegally from the warehouse or those goods found short upon reviewing the warehouse's account shall be subject to the tariff in force at the date of the last withdrawal from the warehouse or the date at which the shortage was discovered or the date of its occurrence if this was possible to determine depending on whichever higher in duties.

Article 19:

Pending goods with duties under guaranteed undertakings which have not been presented to the department shall be subject to the tariff in force at the date of the registration of these undertakings or the date of the expiry of the granted periods depending on whose duties are higher, while delay goods with pending duties whose declaration has been presented to the department by the concerned person with the aim of submitting them for consumption shall be subject to the tariff in force at the date of the registration of this declaration relevant to their submittal for consumption.
 

Article 20:

Smuggled goods or goods treated as being smuggled shall be subject to the tariff duties in effect at the date of the discovery or occurrence of he smuggling if determinable, or the date of the compromise settlement, whichever is higher.
 

Article 21:

 The Tariff in effect at the date of the sale shall be applied to goods sold by the department to be submitted for consumption in accordance with the provisions of this Law.
 

Article 22:

The Tariff in force shall be applied on goods subject to advalorean rates in accordance with their estimated value under their present condition unless the tariff states otherwise. Concerning goods subject to qualitative rates, the said rate shall be levied regardless of conditions of goods unless the department is convinced that the damage of goods is a result of an accident or force majeure in which case the rate of the damage caused to the goods is deducted from the qualitative rate.The rate of such damage shall be determined by a decision from the director upon recommendation of the special committee provided for in article 80 of this law.
 

 

The declarants shall have the right to contest the directors decision before the customs court within the period prescribed in the above-mentioned article.
 

Article 23:

 Provisions of articles 16 - 22 of this law shall be applied to all the other fees and duties which the department levies unless otherwise is prescribed by another Law.
 

 Chapter Two


Distinctive Characteristics of Goods
 


Section 1: Origin Of Goods
A- Nonpreferential Origin
 

Article 24:

 The origin of goods is their producing country.The source of goods is the country from which they were directly imported. The commodity produced in a certain country is that which is wholly produced or acquired in such country including:-

  1. Mineral products.

  2. Plant products.

  3. Live animals.

  4. Derivatives of live animals.

  5. Fishing and / or hunting products.

  6. Maritime fishing products and other products acquired from the sea, outside the territorial water of a country, by fishing boats registered in the country concerned and raising said countrys flag.

  7. Goods produced or acquired on board industrial ships from the products mentioned in item f of this Article, and which are originated in that country, provided that such ships are registered in said country and raising its flag.

  8. products taken from the sea - bed or the underneath soil thereof outside the territorial water provided that said country has special rights to exploit the sea - bed or the underneath soil mentioned above.

  9. Waste products derived from manufacturing operations and used materials, if collected therein and are fit only for re-covering raw materials.

  10. Goods produced in that country exclusively from goods referred to in items (A) to (I) or from their derivatives at any production stage.

Article 25:

  1. Goods, the production of which involves more than one country, are considered to be of an origin of the country where the final processing of such goods takes place, provided that the production shall be done in a project prepared to that effect which will result in the manufacture of a new product.
     

  2. Goods imported from a country other than that of origin shall be subject, after being submitted for consumption in said country, for the Customs Tariff applied to goods of the country of origin or source whichever of them is higher.
     

  3. Goods which undergo additional processing in a country other than that of origin, shall be subject to the Customs Tariff applied to goods of the country of origin or country of manufacture, according to the processing degree, and in accordance with the basis provided for in paragraph (A) of this Article.

Article 26:

  1. Imported goods shall be subject to prove their origin. The conditions of proving the origin and the exemption cases thereof shall be determined by a decision from the Minister upon recommendation from the Director.
     

  2. The Department shall have the right to request additional evidence to prove the origin of goods in case of doubting the authenticity of the presented certificate of origin.


B- Preferential Origin
 

Article 27:

The rules on preferential origin shall be determined and implemented in accordance with agreements concluded between the Kingdom and other parties and which provide for the granting of preferential tariff treatment.
 


Section 2: Customs Value
 

Article 28:
  1. Customs value of imported goods shall be the transaction value, that is the price actually paid or payable for the goods, when bought, provided:-

    1. That there are no restrictions as to the disposition or use of the goods other than restrictions which are provided for in this Law or any other Law or restrictions which limit the geographical area in which the goods may be resold or those which do not substantially affect the value of the goods.

    2. That the sale or price is not subject to some condition or consideration for which a value cannot be determined with respect to the goods being valued.

    3. That no part of the proceeds of any subsequent resale, disposal or use of the goods by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be made in accordance with the provision of paragraph (F) of this Article.

    4. That the buyer and seller are not related.
       

  2. Persons, either being natural or legal, shall be deemed to be related only if:--

    1. They are officers or directors of one anothers business.

    2. They are legally recognized partners in business.

    3. They are employer and employee.

    4. Any person directly or indirectly owns not less then 5 percent of the outstanding voting stock or shares.

    5. One of them directly or indirectly controls the other.

    6. Both of them are directly or indirectly controlled by a third person.

    7. Together they directly or indirectly control a third person.

    8. They are members of the same family up to the third degree.
       

  3. The fact that the buyer and the seller are related within the meaning of paragraph B of this Article shall not in itself be grounds for regarding the transaction value as unacceptable provided that the relationship did not influence the value.
     

  4. In a sale between related persons, the transaction value shall be accepted and the goods valued in accordance with the provisions of paragraph (A) whenever the importer demonstrates that such value closely approximates to one of the following test values of goods imported within 90 days before or after the date of importation:-

    1. The transaction value in sales of identical or similar goods to buyers unrelated to the sellers for export to the Kingdom.

    2. The customs value of identical or similar goods as determined under the provisions of paragraph (C) or (D) of Article 30.
       

  5. In applying the test values mentioned in paragraph (D) of this Article, due account shall be taken of demonstrated differences in commercial levels. quantity levels and costs provided for in paragraph (F) of this Article.
     

  6. In determining the transaction value, the following costs shall be added to the extent that they are not included in the price actually paid or payable for the imported goods:-

    1. Commission and brokerage, except buying commission.

    2. The cost of containers which are treated as being for customs purposes part of the goods.

    3. The cost of packing whether for labour or materials.

    4. The value of the following goods and services where supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production of the imported goods:-

      • Materials, components and parts incorporated in the imported goods.

      • Tools, dies and molds used in the production of the imported goods.


      • Materials consumed in the production of the imported goods.

      • Engineering, development, artwork, design work, and plans and sketches carried out elsewhere than in the Kingdom and necessary for the production of the imported goods.

    5. Royalties and license fees of using the concession right related to the goods being valued that the buyer must pay, either directly or indirectly, as a condition of sale of the goods.

    6. The value of any part of the proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller.

    7. The cost of transport of the imported goods to the port or place of importation.

    8. Loading, unloading, handling and insurance charges associated with the transport of the imported goods to the port or place of importation.
       

  7. No additions shall be made to the price actually paid or payable in determining the transaction value except as provided in paragraph (F) of this Article. Additions to the price actually paid or payable shall be made only on the basis of objective and quantifiable data, otherwise it will be impossible to determine the transaction value under this Article.
     

  8. When the Jordan Customs has reasonable reasons to doubt the truth of the produced documents, despite the conformity of the provisions of this Article, it shall communicate to the importer, in writing if requested, its grounds for doubting the truth or accuracy of the presented documents and the importer shall be given a reasonable opportunity to respond. In case the importer fails to present the evidence acceptable by the Department within the given period, then the provisions of Articles (29,30 31) shall be applied successively.
     

Article 29:

 Whenever the customs value cannot be determined under the provisions of Article 28, then it shall be determined in accordance with items (A-D) of Article 30: according to the order shown therein and by applying methods successively until determining the customs value in accordance with the first possible method. At the request of the importer and the Departments approval, the order of application of items (D) and (C) Article 30 may be reversed.
 

Article 30:

The customs value shall be:-

  1. The transaction value of identical goods sold for export to the Kingdom and exported at or about the same time as the goods being valued. In applying this Article, differences in commercial level, quantity, distance and means of transport shall be taken into account. If, when applying this item, more than one transaction value of identical goods is found, the lowest of these values shall be used to determine the customs value of the imported goods.
     

  2. The transaction value of similar goods sold for export to the Kingdom and exported at or about the same time as the goods being valued. In applying this Article, it shall be taken into account the discrepancies arising from differences in commercial level, quantity, distances and modes of transport. If, in applying this item, more than one transaction value of similar goods is found, the lowest of such values shall be used to determine the customs value of the imported goods.
     


    1. If the imported goods or identical or similar imported goods are sold in the Kingdom in the condition as imported, the customs value of the imported goods shall be based on the unit price at which the imported goods or identical or similar imported goods are sold in the greatest aggregate quantity, at or about the time of the importation of the goods being valued, but before the expiration of 90 days after such importation, to persons who are not related to the persons from whom they buy such goods, provided that deductions must be made in the commissions usually paid in the Kingdom or agreed to be paid and the additions usually made for profit and general expenses of goods of the same class or kind regardless of their origin, and in the usual costs of transport and insurance incurred within the Kingdom, as well as in the customs duties and the other fees and taxes and other national taxes payable by reason of the importation or sale of the goods in the Kingdom.

    2. If neither of the goods provided for in paragraph (C/1) of this Article are sold in the condition as imported, then the customs value shall be based on the unit price at which the imported goods, after further processing, are sold. Due allowance shall be made for the value added by such processing and the deductions provided for in the foregoing paragraph.
       

  3. The customs value of imported goods under the provision of this item shall be based on a computed value. Computed value shall consist of the sum of:-

    1. the cost or value of materials and fabrication or other processing employed in producing the imported goods.

    2. an amount for profit and general expenses equal to that usually reflected in sales of goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to the Kingdom.

    3. wages, cost and expenses provided for in items 7-8 paragraph (F) of Article 28.

Article 31:
  1. Where it is impossible to determine the customs value under the provisions of Articles 28, 29, 30, then it shall be determined by directives issued by the Minister and shall be published in the Official Gazette.
     

  2. If the importer so requests, the importer shall be informed in writing of the customs value determined and the methods used to determined such value.
     

  3. Every declaration should be accompanied by an original list (invoice) attested by the chamber of commerce of the city where commodity has originated or by any agency acceptable for the Department confirming the authenticity of prices and origin. These documents shall also be attested by the Jordanian Consulate Missions and in case these Missions are not existing it would be sufficient to attest them by chambers of commerce or official bodies.
     

  4. The Director may allow the completion of formalities of clearing the commodity without the presentation of the attested lists and the required documents in return for cash guarantee not exceeding 2% or a bank security not exceeding 4% of commodity value for each document,provided that this deposit shall be refunded to payer as soon as he presents the attested lists and the required documents within (60) days of date of payment.
     

  5. The attested list or whole or part of terms thereof may be disregarded in accordance with instructions issued by the Minister for this purpose upon recommendation from the Director, where cases of disregared to that list shall be determined and published in the Official Gazette.
     

  6. Where the declared value is calculated in foreign currency, it shall be converted into local currency. The conversion shall be made on basis of rate of exchange duly published by the Central Bank on date of registering the declaration.
     

  7. The Department shall have the right to request the documents, contracts, correspondences and others related to the transaction, including documentary credits.
     

  8. Commodity kind shall be written in Arabic, in compliance with the customs tariff, on the invoices issued in foreign language.

Article 32:

The value declared in export is the value of the goods at the time of the registration of the customs declaration added to it all the expenses incurred up to the time of the commodity's arrival at the border.This value shall not include:

  1. The duties and taxes imposed on exportation if existed.
     

  2. The local taxes and others refundable upon export.


Section 3: Kind
 

Article 33:
  1. For the purposes of determining the kind, decisions of analogy and classification of goods not mentioned in Customs Tariff schedules shall be issued by a decision by the Minister upon recommendation of the Director and in pursuance of rules stated in the schedule. These decisions shall be published in the Official Gazette.
     

  2. Subject to explanatory notes of Tariff issued by the World Customs Organization, additional and applicable terms of Tariff shall be issued by the Director by decisions in which he shall determine their effective date. Such decisions shall be published in the Official Gazette.


Please note that the authentic text for the customs law 20/1998 is arabic language and this is the non-official translation

     
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