Ministry to monitor markets to ensure compliance with customs tariffs

The Ministry of Trade, Industry, and Supply will work with the commercial and industrial sectors to ensure that citizens benefit from the new decisions. (Photo: Ameer Khalifeh/Jordan News)
AMMAN — Director of Market Control and Supplies at the Ministry of Industry, Trade and Supply Suleiman Al-Saud said on Monday that the ministry is preparing a plan for monitoring markets after the government decided to reduce customs tariffs to ensure the revitalization of the commercial sector, Al-Mamlaka TV.اضافة اعلان

Finance Minister Mohamed Al-Ississ announced on Monday that the decision to reduce and unify customs duties on goods will enter into force next week. All materials, except for Jordanian industry products in the engineering sector, construction, furniture, and food industries will be subject to the two categories of customs tariffs, from zero to 5 percent.

Customs tariffs will come under four categories, zero percent, 5 percent, 15 percent, and 25 percent for the first three years after the decision comes into force. Then, 25 percent will be reduced to 20 percent for two years, and 20 percent will become 15 percent in 2027.

“Market monitors spread in all governorates of the Kingdom will monitor price indicators in order to ensure that these decisions will reflect positively on the commercial activity by increasing competitiveness and reducing prices,” said Saud.

He said that the COVID-19 pandemic and the accompanying rise in global prices were felt in all countries of the world, adding that the government took many measures to ensure a good supply of goods.

According to Saud, there is no price ceiling, but if the government and other concerned authorities find that the decisions on tariffs do not reflect positively on the citizen, they will be discussed again.

According to Saud, the Ministry of Industry, Trade, and Supply is working with the commercial and industrial sector to ensure that citizens benefit from the new decisions, and the government support for the industrial sector will continue. He also said that international agreements Jordan signed opened export markets for Jordanian industries, and that exempting Jordanian industries production inputs will help ensure they are competitive.

Sultan Allan, president of Textile and Readymade Clothes Syndicate, said that the reduction of customs duties and tariffs on goods announced by the government is bound to reflect on the consumer, but “there are taxes that have not been decreased, such as sales tax, and income tax, but customs duties on clothing and shoes were reduced”.

He said that there is intense competition in the clothing sector, because there about 3,400 importers and about 10,000 retailers.

Allan said: “The citizen should not think that the commodity itself will decrease by 15 percent, because the components of the cost of the commodity are transportation, the price of the commodity and sales tax, and all of this has not decreased.”

Talking about e-commerce in Jordan, Allan said: “We are not against e-commerce, but we have a problem with a decision that was issued in 2015 in favor of e-commerce, as an unconventional competitor that pays 10 percent taxes, so we demand equality with it.”

Prime Minister Bisher Al-Khasawneh on Sunday announced that the Cabinet had taken the decision to restructure customs tariff in order to enhance Jordan’s competitiveness.

He said that “the restructuring is part of a comprehensive customs reform plan that includes reviewing procedures to simplify them and ensure that powers are not abused”.

The “central” goal of those decisions, according to Khasawneh, “is to reduce the final costs on citizens and facilitate procedures for suppliers and workers in the field of shipping.”

He pointed out that “the general control reference at the borders will be the General Customs Department, and the rest of the authorities will work under its umbrella” in an effort to “reduce the long procedures in which goods are waiting to enter until they obtain the necessary permit from the control authorities.”

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