Jordan’s International Industries Company (JIIC) has launched the kingdom’s eighth Qualified Industrial Zone (QIZ) this week, in Al-Halabat, east of Amman. The 450,000-square-meter privately held zone could include up to 50 industrial facilities and is hoped to provide jobs to the many unemployed in the Governorate of Zarqa, reported Jordan Times.
The unique QIZ initiative was established in 1996, under the terms of trade agreements between Jordan and the US, aiming to support efforts towards regional peace. Goods produced in QIZ’s can be exported to the US market duty-free and with no excise tax or quota limits. The American government has designated ten industrial parks in Jordan as QIZs.
Following the establishment of mostly clothes and textile manufacturing QIZs, Jordan saw a dramatic increase in exports to the US, growing from $13 million in 1999 to an expected $400 million in 2002, making the US Jordan’s largest export market.
The primary requirement for obtaining duty free treatment is that the QIZ manufactured product must be a "substantially transformed" good, with at least 35 percent of its value added in Israel, a Jordanian QIZ or the West Bank/Gaza. Of that 35 percent, a minimum of 11.7 percent must be added in a Jordanian QIZ, eight percent in Israel, and the remaining 15.3 percent can come from either a Jordanian QIZ, Israel or the West Bank/Gaza.
Established by the Jordan International Investment Group with a capital of $2.8 million, the JIIC Al-Halabat plant produces farming inputs—fertilizers, animal feed and recycled organic waste. It has a processing capacity of seven tons per hour. JIIC shareholders include the Social Security Corporation, the Industrial Development Bank (IDB) and Jordan Investment and Finance Bank (JIFB). — (menareport.com)
© 2002 Mena Report (www.menareport.com)
© 2000 - 2021 Al Bawaba (www.albawaba.com)