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AL Armouti Wins a Crucial Court Ruling For GM Dealership

AL Armouti Wins a Crucial Court Ruling For GM Dealership



The Jordanian Court of Cassation has recently issued its decision in favor of AL Armouti's client; the Leading Vehicles Co., the exclusive dealership of General Motors in Jordan, in which it reversed the decision of the Appellate Court with regard to the importation of car spare parts from the United States. In this case, the Jordanian Customs department had unlawfully applied customs duties on spare parts of US origin and imported from the US while they enjoy customs exemptions under the Jordan- US free trade Agreement.

The Customs Court of First Instance ruled in favor of the Customs department Justifying that such imported products did not qualify for exemption under the agreement because they entered the commerce of the transit Country ( UAE), and that they were not stored under the custody or Control of the Dubai Customs department. The Court of Appeal upheld the First Court decision.

The Court of Cassation ruled that the court of appeal and the Court of First Instance erred by not discussing and envisaging a significant letter issued by Dubai Customs department in which it was clarified that the shipments remained under the custody of the Dubai Customs Department and that such shipment had not entered the commerce of transit country.

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