Jordan: Update on Preferential Treatment Requirements under Free Trade Agreements

In principle, products imported into 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. This requirement cannot be found in the agreements' texts. 

In a recent decision, the Supreme Court ruled that for imported goods to be granted preferential treatment under any free trade agreement, importers must complete field No.36 of the customs declaration form. This field is crucial as it subjects imported goods to customs' red-tape inspection procedures. Importing companies need to be aware that if they fail to provide the required information in field 36, their imported products will not be considered to have been imported under the relevant FTA, even if they meet the rule of origin conditions. This non-compliance will result in the products not being granted preferential treatment.

Field 36 of the customs declaration form is the specific area where the new procedural requirement is implemented. This field requires detailed information on the specific free trade agreement that covers the transaction. It's important for importing and exporting companies to understand the significance of this field and to ensure they provide accurate and complete information.

The customs department has applied the new requirement after issuing the latest 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.