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Qualified
Industrial Zones (QIZ) is a unilateral act by the USA in an innovation
designed to encourage Jordanian exports to the U.S market, thus inviting
National and International Companies to take advantage of this
unprecedented initiative enabling Jordan to offer a unique opportunity
to all Manufacturers.
This concept allows goods manufactured in these Zones
to enter the USA Duty free & Quota free thus offering a unique
opportunity to all International Manufacturers to move their Industries
to these Zones.
The advantages of the QIZ are numerous:
- Assures Duty and
Tariff free access to the US market.
- No Quotas on export to U.S. market for products manufactured in the
QIZ.
- Total Income and Social Tax exemption.
- Imported materials are not subject to Custom Duties.
- No restriction on Project ownership.
- No restriction on Foreign Currency transactions.
- No time limits or renewal requirements for QIZ's.
- Full repatriation of capital , profits and salaries.
U.S. customs tariff on certain goods entering the USA that will be saved
by the Investor in the QIZ for certain items are as follows:
1-From 25% up to
48% on Footwear:Waterproof , with metal Toe-cap, covering the knee,
Sports Footwear, designed for use without closure, Work Footwear,
Footwear with open toes or open heels, Footwear of the slip-on type,
and parts of Footwear. |
2-From 20% up to 33.6% on Woven Fabrics, Textiles, Garments,
Swimwear, Body suits, Shirts, Trousers, Suits, Jackets, Raincoat,
Underwear, Blouses, Skirts, Blazers, Ski-suits, Anoraks, for both
women & men. |
3-From 18% up to
34% on Tableware, Kitchenware, other Household and Toilet articles
of Porcelain or China, Hotel or Restaurant ware, Glassware ,Ceramic
tableware, Glass ceramics, Drinking glasses, other Glassware of Lead
crystal. |
4-From 6% to 20% on Trunks, Suitcases, Attache Cases, Wallets,
Handbags. |
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5-From 10% to
20% on Cheeses. |
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Qualifying your product:
To qualify a product in the QIZ, contents of any product produced in the
QIZ must represent a minimum of 35% of the appraised value.
There are three methods to comply with the requirements:
| First: |
of the 35%
minimum QIZ content, the breakdown must be not less than:
11.7% from a Jordan QIZ
8.0% from Israel (7% for high tech. goods)
The remaining content, to reach the 35% total required, may come
from either a Jordan QIZ, Israel, USA or West Bank/Gaza. |
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| Second: |
The
Jordanian and Israeli manufacturers may each maintain at least 20%
of the total production cost of the QIZ manufactured goods
(excluding profits). Production costs may include (Raw materials,
Packing materials),Wages and Salaries, Design and R & D. |
| Third : |
Mixing and
matching of the two above methods is also allowed. |
Important Note:
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In apparel manufacturing, imported fabric can be considered as
local (made in QIZ) raw material if double substantial
transformation occurs locally. Double substantial
transformation in the case of fabric can be cutting and
sewing. It is important to note that the cost of the fabric
that is cut and sewn locally will be admissible when
calculating the 35% minimum value added content requirement
(the primary requirement). It will not, however, be taken into
consideration when calculating the respective share of each
country under the first method. |
The
first zone designated in Jordan as QIZ was the Al-Hassan Industrial
Estate in March 1998. The success of that Zone was phenomenal as all
the area was occupied by Local and International Manufacturers. The
demand for these areas are increasing tremendously as International
Manufacturers have become aware of the advantages to move their
facilities to such Zones. Due to that success other areas in Jordan
were designated as QIZ including the Ad-Dulayl Industrial Park, a park
which is ready to accommodate industries right away.
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