Jordan: Update on Preferential Treatment Requirements under Free Trade Agreements
A recent court ruling has set a new procedural requirement for importing and exporting companies to claim preferential treatment for products imported under FTAs, a requirement that cannot be found in the agreements' texts.
In principle, products imported in Jordan under any free trade agreement must generally satisfy the "rules of origin" requirements set out by the concerned agreement to enjoy preferential tariff treatment upon entry. However, recent court rulings have set a new procedural requirement for importing and exporting companies to claim preferential treatment for products imported under FTAs, a requirement that cannot be found in the agreements' texts.
In a recent decision, the Supreme Court ruled that in order for imported goods to be granted preferential treatment under any free trade agreement, importers must fill out field No.36 of the customs declaration form, which subjects imported goods to customs "red-tape" inspection procedures. Conversely, if importing companies do not provide information in field36 of the customs declaration, imported products will not be considered to have been imported under the concerned FTA even if they achieve the rule of origin conditions. Hence, it will not be granted preferential treatment.
Filed 36 of the customs declaration requires information on the specific free trade agreement covering the transaction.
In practice, the customs department has been applying the new requirement after issuing the new ruling.
Jordan is a World Trade Organization member (WTO) and is currently a party to the Greater Arab Free Trade Agreement (GAFTA) with Arab countries, the Free Trade Agreement with Canada, the Association Agreement with the EU, the Free Trade Agreement with EFTA countries, the Free Trade Agreement with Singapore, and the Free Trade Agreement with the United States of America.
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Disclaimer: The information provided here is of a general nature and may not apply to any particular matter. It does not constitute legal advice nor presumed indefinitely up to date.
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