Jordan decides to exempt all industrial production inputs from customs duties

Published August 4th, 2004 - 02:00 GMT

The Jordanian government will exempt all industrial production inputs from customs duties as of the beginning of next month, Finance Minister Mohammad Abu Hammour told The Jordan Times on Tuesday. 


According to him, the government decided to expand the number of input exemptions to 103 items to cover all imported industrial inputs in order to boost the competitiveness of the Kingdom's industrial sector.  


The minister described the government's decision as a response to the “challenges” of economic liberalisation and globalisation sweeping the world over the past few years.  


This decision aims at enhancing Jordan's industrial sector, which accounts for 17 per cent of the kingdom's gross domestic product and employs 14 per cent of the workforce.  


He pointed out that the additional exemptions would cost the treasury JD4 million annually, but would bring positive outcomes on increasing Jordanian exports through minimising costs and bringing down the prices of locally sold Jordanian products.  


The exemptions include natural juice materials, chemicals like sodium and potassium phosphates, ammonium nitrates, paint, wool and textile materials among other items that are presently subject to customs duties ranging between five and 30 per cent.  


The government's decision includes reduction on 13 items by at least 50 per cent.  


He added that citizens will feel the effect if the manufacturers afford to reduce sales prices due to the reduction in costs.  


Head of the Jordan Chamber of Industry, Hatem Halawani, said the decision is welcomed by all industrialists in the Kingdom.  


“Now things are fair for Jordanian industries which sell in the local market,” he conveyed. “Imported products have preferential treatments due to free trade agreements but now Jordanian products would receive the same treatment.” (

© 2004 Mena Report (

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