Factors on Basis of Which Import Or Export Duties are Applied
Article 9:
Notwithstanding the provisions of any other law or legislation, the goods imported to the kingdom shall be subject to the customs "duties" specified in the unified the customs tariff and to other due fees and taxes, , excluding those exempted under the provisions of this " law " or the provisions of investment promotion law or any concession Law or international agreement.
Article 10:
The rate of the customs tariff shall be either ad Valorem (percentage of the value of goods) or per unit (an amount levied on each unit of the goods). Tariff duties may be both ad Valorem proportional and per unit for the same type of goods.
Article 11:
The ordinary customs tariff shall apply to goods from all countries, subject to provisions of article 12 of this law.
Article 12:
A. Preferential tariff duties shall apply to goods originating in one of the countries that are associated with the Kingdom via agreements granting preferential status within the scope of such agreements.
B. The goods imported from other than the country of origin –after being placed for consumption in that country- are subject to the customs tariff applicable to the goods of the country of origin or the country of export, whichever higher.
Article 13:2
A. the Council of Ministers shall constitute a Higher Committee of Customs with expertise and competence headed by the Minister. Such committee shall be missioned to provide advice in all matters that may assist in achieving the purposes of this Law.
B. A council called "Customs Tariff Council" shall be formed under the chairmanship of the Minister of Finance and the membership of the minister of Trade and Industry and Supply, and the Director.
Article 14:
Customs Tariff schedules shall be issued, and customs duties shall be levied, amended, abolished and effective by a decree from the council of ministers upon recommendation from the customs tariff council. The decision shall be promulgated in the official gazette.
Article 15:
Pursuant to the decisions issued by the competent authorities in accordance with the relevant legislations in force, the Department shall:
A. Collect the countervailing fees and the anti-dumping fees imposed on specific goods imported from specific countries when due, or refund such fees when refundable.
B. Take the necessary measures including quotas to counter practices of some other countries which would harm the national economy.
Article 16:
Imported goods declared for local consumption or for re- export and goods exiting free zones and duty-free market shall be subject to customs tariff duties in force on the date of registering declaration thereof at customs houses.
As for the goods intended for re-exportation on which customs duties have been paid before wholly entering the customs zone, the part of those goods which has not entered yet shall be subject to the effective tariff at the time of entering the customs zone.
Article 17:
The declarant may, upon a written request from the owner of the goods, apply for the director's approval to place goods declared under local consumption, provided that to the higher tariff rate of HS code shall apply thereon.
Article 18:
A. When duties on goods stored in the warehouse are due for payment by reason of expiry of the deposit delay period and failure to extend, the provisions of the tariff in force shall be applied on the day of expiry of the deposit delay period.
B. The goods withdrawn illegally from the warehouse or those goods found short after reviewing the warehouse's account shall be subject to the tariff in force on the date of the last withdrawal therefrom or on the date the shortage was discovered /occurred, whichever higher in duties.
Article 19:
Goods with pending duties under guaranteed undertakings which have not been presented to the Customs Department shall be subject to the tariff duties in force on the date of the registration of these undertakings or the date of the expiry of the granted deadline whichever higher.
Goods with pending duties whose declaration has been presented to the department by the concerned person for consumption shall be subject to the tariff in force on the date the declaration thereof was registered to place goods for consumption
Article 20:
Smuggled goods or the like shall be subject to the tariff duties in effect on the date the smuggling occurred/ was discovered, if identified, or the date of the compromise settlement thereof, whichever higher.
Article 21:
The Tariff in effect at the date of the sale shall apply to goods sold by the Customs Department to be placed for consumption in accordance with the provisions of this Law.
Article 22:
The Tariff in force shall apply on goods subject to ad-valorem rates in accordance estimated value thereof under their present condition unless the tariff states otherwise. As for goods subject to qualitative per unit rates, the full rate shall be levied regardless of conditions of goods unless the Customs Department is convinced that the goods were damaged as result of an accident or force majeure. In this case, the qualitative rate shall be reduced in proportion to damages that were inflected on the goods. The amount of such damage shall be determined by the director upon recommendation by the special committee provided for in article 80 of this law. Declarants shall have the right to object to the Director's decision before the customs court within the period prescribed in the above-mentioned article.
The declarants shall have the right to contest the directors decision before the customs court within the period prescribed in the above-mentioned article.
Article 23:
Provisions of articles 16 - 22 of this law shall apply to all other fees and taxes which the Department levies unless another legal provision provides otherwise.
Chapter Two
Distinctive Characteristics of Goods
Section 1: Origin Of Goods
Article 24:
The origin of imported goods is determined on the following bases:
A. The goods are considered to be originating goods if they are wholly obtained in the country of origin; this shall include:
1. Mineral products.
2. Plant products.
3. Live animals.
4. Derivatives of live animals.
5. Fishing and / or hunting products of specific country of territorial water thereof.
6. Maritime fishing products and other products acquired from the sea, outside the territorial water of a country, by fishing boats being registered in the country concerned and marked by the flag thereof.
7. Goods produced or acquired onboard industrial ships from products mentioned in item (6) of this Article, and which are originated in that country, provided that such ships are registered in said country and marked by the flag thereof.
8.products harvested from the sea - bed or underneath the soil thereof outside the territorial water provided that said country has special rights to exploit the sea - bed or the underneath soil mentioned above.
9. Waste products derived from manufacturing operations and used materials, if collected therein and are fit only for re-covering raw materials.
10. Goods produced in that country exclusively from goods referred to in items (1) to (9) or from their derivatives at any production stage.
B. The goods are considered to be originating goods if they are wholly produced from materials as a result of a substantial conversion process in accordance with to the provisions of the paragraph (C) of this article.
C. The goods produced by more than one country are considered to be of the origin of the country where the last substantial conversion process took place. The conversion is considered substantial if it meets any of the two following conditions:
1. If the classification of the customs tariff of goods, which consists of six digits, is different from the composition thereof.
2. If the added value was equal to at least 40% of the value of the goods in the factory premises. For this purpose:
-The added value shall mean: the value of the goods at the factory premises minus the customs value of all foreign production inputs used in the production of goods.
-The value of the goods at the factory premises shall mean: the price which is actually paid or payable price against delivering the goods at the factory premises minus any taxes or fees which are refunded or refundable upon exportation.
D.Notwithstanding item (1) of paragraph (C) of this article, a change of customs classification of goods shall not be considered substantial conversion of goods if it is resulted from any /all of the following processes:
1. The processes carried out to ensure maintaining the goods in a good condition for the purpose of carriage or storage.
2. The processes carried out to facilitate the shipment or the carriage of goods.
3. Packing or finalizing the goods for sale.
4. The simple processes that involve: ventilation, sun-drying, drying, cooling, removing damaged parts, treating with lubrication or rust-removal, coating with paint to protect from the natural agents, removing rust, laundry, cleaning, sifting or sorting, classification and listing, inspection and calibration, unwrapping or rewrapping, partitioning bulk goods, labelling, branding with distinctive marks on goods wrappings, dissolving with water or any water-based solvent, ionization, salting, peeling, crushing, fruit deseeding , animal slaughtering.
Article 253:
A. 1. If an exporter, importer or any related person, upon a justified reason, submits a written request to the Customs Department to resolve the non-preferential origin of a particular goods, the Department shall decide on the origin without delay, within a period not exceeding ninety days from the date of submission thereof, provided that all information specified in the instructions Issued by the Director therefor shall be attached to the request.
2. Applications for identification of the origin may be accepted at any time either before the trading process of the concerned goods or at any time thereafter.
3. The decision to determine the non-preferential origin mentioned in section (1) of this paragraph shall remain valid for a period of three years as long as the facts, circumstances and conditions on which the decision was made, including the rules of origin, are similar.
4. Any administrative action taken by the Department to determine the non-preferential origin shall be subject to objection before the Director within ten days from the date of notification thereof. The Director's decision shall be subject to challenge at the Customs Court within fifteen days from the date of notification.
5. The decision shall be deemed invalid in the event that a subsequent contradicting decision is issued by the Customs Department in accordance with section (4) of this paragraph, provided that the concerned parties shall be notified thereof in advance.
6. Subject to the provisions of section (7) of this paragraph, the Customs Department shall publish the non-preferential origin decisions in the Official Gazette.
7. For the purpose of applying the rules of non-preferential origin, the Customs Department shall not disclose any information which is confidential in nature or which is submitted on a confidential basis. Such information shall not be disclosed without a written permission from the person or entity that provided such information, except for what is required disclosure by a judicial body.
B. Without prejudice to the relevant legislation, the Customs Department may not retroactively apply any new rules of origin or changes done to non-preferential rules of origin.
Article 26:
A. The rules regarding the preferential origin shall be applied in accordance with agreements concluded between the Kingdom and other parties and which provide for granting preferential tariff treatment.
B. the provisions of the article (25) of this law shall apply to the preferential origin rules as appropriate.
C. for the purposes of this Article and Articles 24, 25 and 26 of this Law, the term "rules of origin" shall mean the basis for determining the country of origin of the goods in accordance with the provisions of these articles or the international conventions in which the Kingdom is a party.
Article 27:
A. The rules regarding the preferential origin shall be applied in accordance with agreements concluded between the Kingdom and other parties and which provide for granting preferential tariff treatment.
B. the provisions of the article (25) of this law shall apply to the preferential origin rules as appropriate.
C. for the purposes of this Article and Articles 24, 25 and 26 of this Law, the term "rules of origin" shall mean the basis for determining the country of origin of the goods in accordance with the provisions of these articles or the international conventions in which the Kingdom is a party.
Section 2: Customs Value
Article 28:
A. Customs value of imported goods shall be the transaction value; that is the price actually paid or payable for goods sold for export to the Kingdom in accordance with the following conditions, taking into account the provisions of paragraph (f) of this Article:
1. That there are no restrictions as to the disposition or use of the goods other than restrictions which are provided for in this Law or any other Law, or restrictions which identify the geographical area in which the goods may be resold, or the restrictions which do not substantially affect the value of the goods.
2. That the sale or the price is not subject to some condition or consideration for which a value cannot be determined with respect to the goods under valuation.
3. That no part of the proceeds of any subsequent resale, disposal or use of the goods by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be made in accordance with the provision of paragraph (F) of this Article.
4. That the buyer and seller are not related. If so, the value of the transaction shall be acceptable for customs purposes in accordance with the provisions of paragraphs (c) and (d) of this Article.
B. Persons, being either natural or legal, shall be deemed unrelated unless:-
1. They are officers or directors of one another's business.
2. They are legally recognized partners in business.
3. They are employer and employee.
4. If there was another person who directly or indirectly owns and controls not less than 5 per cent of stock or shares which, subsequently, give him the right to vote with regard to decisions taken by both
5. One of them directly or indirectly controls the other.
6. Both of them are directly or indirectly controlled by a third person.
7. Both of them directly or indirectly control a third person.
8. They are members of the same family up to the third degree.
C.1. In determining whether the value of the transaction is acceptable for the purposes of paragraph (A) of this article, the relationship between the seller and the buyer within the meaning of paragraph (b) thereof shall not in itself constitute a basis for deeming the transaction value unacceptable. In this case, the Customs Department shall consider the circumstances surrounding the sale and the value of the transaction and, accordingly, deem the value acceptable on condition that the relationship has not affected the price.
2. If the Customs Department concludes, based on the available information, that there is a basis for considering that the relationship has affected the price, it shall notify the importer of this basis and give him a sufficient time to respond. The notification shall be in writing if the importer requests so.
D. In a sale between related persons, the transaction value shall be accepted and the goods shall be valued in accordance with the provisions of paragraph (A) whenever the importer demonstrates that such value closely approximates to one of the following test (standard) values of goods imported at the same time as much as possible:
1. The transaction value of identical or similar goods sold to buyers unrelated to the sellers for export to the Kingdom.
2. The customs value of identical or similar goods as determined under the provisions of paragraph (C) or (D) of Article 30.
E. 1. When applying the tests values mentioned in paragraph (D) of this Article, it shall be taken into account the differences in commercial levels, quantity and costs provided for in paragraph (F) of this Article, and the costs incurred by the seller in sale processes in which the seller and the buyer are not related, as the seller doesn't bear the cost of sales in cases when he and the buyer are related.
2. The test values referred to in this paragraph shall be used upon initiative by the importer and for comparison purposes only. Thus, they shall not be recognized as alternative values.
F. when determining the transaction value in accordance with paragraph (A) of this Article, the following costs shall be added to the extent that they are not included in the price actually paid or payable for the imported goods:-
1. Commission and brokerage, except purchase commission.
2. The cost of containers which are, for customs purposes, considered as part of the goods.
3. The cost of packaging, labor /materials.
4. The value of the following goods and services that are directly or indirectly provided by the buyer free of charge or at reduced cost for use in the production of imported goods and the sales thereof for export to the Kingdom, provided that this value shall be distributed appropriately:
- Materials, components and parts incorporated in the imported goods.
- Tools, dies and molds used in the production of the imported goods.
- Materials consumed in the production of the imported goods.
- Engineering, development, artwork, design work, plans and sketches executed abroad as being necessary for the production of the imported goods.
5. Royalties and license fees a buyer pays for one of the intellectual property rights related to the goods being valued that the buyer must pay, either directly or indirectly, as a condition of sale of the goods being valued wherever they are not included in the price actually paid or payable.
6. The value of any part of the proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller.
7. The cost of transport of the imported goods to the port or place of importation.
8. Loading, unloading, handling and insurance charges associated with the transport of the imported goods to the port or place of importation.
G. No additions shall be made to the price actually paid or payable when determining the transaction value except as provided for in paragraph (F) of this Article. Additions to the price actually paid or payable shall be made only on the basis of objective and quantifiable data, otherwise the transaction value under this Article shall be deemed undeterminable.
H. if the Customs Department has reasonable doubt regarding the validity of presented documents despite applicability of the provisions of this Article thereto, it shall notify the importer in writing, upon his request, and give him enough time- decided by the Customs Department- to respond. In case the importer fails to present the evidence acceptable by the Customs Department within the given period, then the provisions of Articles (29, 30, 31) shall be applied successively.
I. The following costs and amounts shall not be included in the customs value calculation, provided they are separate from the price actually paid or payable:
1. Construction, assembly, maintenance or technical assistance costs undertaken after the importation of goods such as industrial enterprises, machinery or equipment.
2. Cost of transportation after import.
3. Fees and taxes imposed in Jordan.
4. Revenues and other payments from the buyer to the seller that are not associated with imported goods.
Article 29:
If it is not possible to determine the customs value under the provisions of Article 28, , it shall be determined in accordance with paragraphs (A-D) of Article (30) in the order specified therein and by applying methods sequentially until customs value is reached via the first possible method. The provisions of paragraph (c) and (d) of Article (30) may be applied if the importer requests so.
Article 30:
The customs value shall be:-
A. The transaction value of identical goods sold for export to the Kingdom, and exported at or about the same time at which the goods under valuation were exported in convergent quantities on the same commercial level. If such value is unavailable, the transaction value of identical goods sold on a different commercial level and quantities shall be used. In this case, the value shall be adjusted to accommodate discrepancies in the commercial level or quantities, provided that the adjustment shall be based on evidence proving the accuracy of the adjustment made, whether it increases or decreases the value, while taking into account the difference in costs- referred to in items (7) and (8) of paragraph (f) of article (28) of this law- between imported and identical goods due to differences in distance and means of transport as. If more than one transaction value of identical goods is found, the lowest value shall be approved.
B. Paragraph (A) of this article shall also apply to the transaction value of similar goods.
C.1. If the imported goods or identical or similar imported goods are sold in the Kingdom in the condition as imported, the customs value of the imported goods shall be based on the unit price at which the imported goods or identical or similar imported goods are sold in the greatest aggregate quantity at or about the time of the importation of the goods, under valuation, to persons who are not related to the persons from whom they buy such goods, provided that the following deductions shall be made:
- The commissions usually paid in the Kingdom or agreed to be paid and the additions usually made for profit and general expenses of goods of the same class or kind.
- The usual costs of transport and insurance, and any related costs in the Kingdom.
- The customs duties and other fees and taxes due on importation or sale of the goods in the Kingdom.
2- If the imported goods or the identical or similar imported goods were not sold at or about the time of the importation of the goods under valuation, the customs value shall, under the provisions item (1) of this paragraph, be based on the unit price at which the imported goods or the identical or similar goods were sold in the Kingdom, in the condition as imported, at the earliest time after importation of the goods under valuation, provided that this shall be completed within a period of 90 days after the date of import.
3. If the imported goods, or the imported identical or similar goods are not are sold in the condition as imported, the customs value shall, upon the importer's request, be based on the unit price at which the imported goods are, after additional processing, sold at the largest total quantity, to persons who are not connected with the persons who sold the goods, taking into consideration the value added due to additional processing and the deductions provided for in paragraph (C/1) of this Article.
D. 1. The customs value of imported goods under the provision of this paragraph shall be based on a computed value. Computed value shall consist of the sum of:-
- The cost or value of materials and fabrication or other processing employed in producing the imported goods.
- amount of profit and general expenses equal to that usually reflected in sales of goods of the same class or kind as the goods under valuation and which are made by producers in the country of exportation for export to the Kingdom.
- Wages, cost and expenses provided for in items 7-8 paragraph (F) of Article 28.
2. No person outside the Kingdom shall be requested to present any account or records for the purpose of determining the calculated value or be requested to allow access thereto. Nevertheless, the Customs Department, subject to the approval of the goods producer, may verify the information presented by the goods producer residing outside the Kingdom for the purpose of determining the customs value, provided that the competent governmental authorities in the country of producer shall be given sufficient time and there shall be no objection to the verification process in accordance with the provisions of this article.
Article 31 4:
If determining the customs value of the imported goods under the provisions of Articles 28, 29, 30 of this Law is not possible, such value shall be determined on appropriate basis which shall not be inconsistent with the provisions of these Articles based on information available to any party in the Kingdom. However, the customs value shall not be determined based on the following:
1. Selling price of locally produced goods in the Kingdom
2. The higher value of alternative values.
3. The price of goods at the local market of the country of export.
4. The cost of production other than the calculated value that was determined for goods identical or similar based on the provisions of paragraph (d) of Article (30) of this law.
5. The price of goods sold for the purpose of export to a country other than the Kingdom.
6. Random or arbitrary values.
7. Minimum customs values.
B. Upon his request, the importer shall be notified in writing of the basis adopted to determine the customs value under the provisions of paragraph (a) of this article.
C. Subject to the provisions of Article (26) of this Law, the customs declaration shall be attached with an original list (invoice) listing the description of the goods, their prices, their origin and any other original documents, whether in paper or electronic form.
D. Notwithstanding the provisions of paragraph (c) of this Article, the Director may allow the completion of clearance procedures of goods without presenting the lists and other original required documents, provided that a cash deposit or bank guarantee not exceeding 2% of the declared value of the goods shall be submitted for each document based on the provisions of this Law. The deposit or guarantee shall be refunded if the list and the required documents are submitted within a period not exceeding (60) days from the date of making the cash deposit or providing the guarantee.
E. The list or terms thereof may be disregarded in whole or in part under instructions issued by the Minister upon recommendation from the Director, where cases of disregard to that list shall be identified and promulgated in the Official Gazette.5
F. when the declared value is calculated in foreign currency, it shall be converted into local currency. The conversion shall be made on basis of rate of exchange duly promulgated by the Central Bank on date of registering the declaration.
G .The Customs Department shall have the right to request documents, contracts, correspondences and others related to the transaction, including documentary credits.
H. Commodity type shall be written in Arabic on the invoices issued in foreign language, in compliance with the customs tariff.
(I) The provisions and other conditions necessary for the application of the provisions of Articles (28), (29), (30) and (31) of this Law shall be specified under a by-law issued for this purpose.
(J) For the purposes of customs valuation, the Customs Department shall not disclose any information that is confidential in nature or which is submitted on a confidential basis and is prohibited from being disclosed without a written permission from the person or entity that provided such information, except for what is required to be disclosed by a judicial body.
Article 32:
A. The value declared in export is the value of the goods at the time of the registration of the customs declaration with the addition of all expenses incurred up to the point the commodity arrive at the border. This value shall not include:
1. The duties and taxes imposed on exportation if cited.
2. The local taxes and others refundable upon export.
B. The provisions and other conditions necessary for the application of the provisions of this Article shall be specified under directives issued by the Director for this purpose.
Section 3: Type
Article 33:
A. For the purposes of determining the type of goods, decisions of analogy and classification of goods not mentioned in Customs Tariff schedules shall be issued by a decision from the Minister upon recommendation of the Director and in pursuance of rules stated in the schedule. These decisions shall be promulgated in the Official Gazette.
B. Subject to explanatory notes of Tariff nomenclature issued by the World Customs Organization, additional and applicable terms of Tariff shall be issued by the Director via decisions in which he determines their effective date. Such decisions shall be promulgated in the Official Gazette.
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2This paragraph was amended pursuant to Article (3) of the amending Law No. (33) of 2018
4 This paragraph was amended pursuant to Article (5) of the amending Law No. (33) of 2018
5This paragraph was amended by canceling the word "attested" therein pursuant to article (2) of amending law No.(10) of 2019