Jordan is located in West Asia. It is surrounded in the East by Palestine and Israel, along the Jordan River and the Dead Sea, in the south by Saudi Arabia, in the East by Iraq and  in the North by Syria, with access to the Gulf of Aqaba, on the Red Sea.

Jordan's GDP exceeded USD 45 billion in 2021. With a population over 11 million, GDP per capita reached USD  4055.

Source: https://www.cbj.gov.jo/Pages/viewpage.aspx?pageID=67

Jordan experienced an average GDP growth of 4.58% during the period 2000-2018. However, two distinct periods should be noted: during the period 2004-2007, growth exceeded 8% while since 2010, it has not exceeded 3% due to regional instability and recently the pandemic implications.

Jordan`s exports remained strong and maintained a positive growth despite challenges and witnessed an unprecedented increase by 45% in the first half of 2022 accompanied by an increase in transit trade serving neighboring countries.

It’s worth mentioning that Jordan`s economy is supported by vibrant services sectors such as the IT, health, education, and financial services which contribute significantly towards a knowledge-based economy.

Source: World Bank data https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?end=2021&locations=JO&start=1977&view=chart

Source: Central Bank of Jordan Annual Report 2021

https://jorinfo.dos.gov.jo/Databank/pxweb/ar/Poverty/Poverty__Poverty-Indicators/Table1.px/table/tableViewLayout2/

Jordan started implementing a liberal trade policy in 1990`s with its accession process to the World Trade Organization and negotiating free trade agreements with the US, EU, EFTA and Arab countries. That was accompanied by major economic reforms for most of its trade and investment related regulatory environment and reform in its import policy.

Jordan is currently one of the most liberal economies in the region through an investment friendly environment and a network of free trade agreements, and a relatively low-tariffs and foreign investment allowed in most sectors.

The liberal economic policy led to significant economic growth and exports jumping from 1 billion USD in 2000 to more than 7 billion USD in 2021.

Jordan has free trade agreements with 52 countries with access to over 1 billion consumers.

https://www.moin.gov.jo/en/reasons-to-invest-in-jordan/market-access/

Jordan is strategically located in the Middle East connecting Asia and Africa, located in the north of the Arabian Peninsula and in West Asia. Bordered by Syria to the north, Iraq to the east, Saudi Arabia to the south and south-east, and Palestine (the West Bank) to the west.

• There are three international airports in Jordan, two in Amman the capital and one in the Aqaba south of Jordan.
• One sea port in Aqaba serving Jordan and neighboring countries.
• More than 18,500 kms of land road network comprising 3,334 of highway roads. https://www.mpwh.gov.jo/AR/Pages/%D8%A7%D8%AD%D8%B5%D8%A7%D8%A6%D9%8A%D8%A7%D8%AA_%D8%A7%D9%84%D9%88%D8%B2%D8%A7%D8%B1%D8%A9
• Trade facilitation measures have been continuously adopted and developments introduced such as the National Single Window, and Jordan Customs was awarded the E-Government Transformation Award in Jordan for the year 2021. (https://www.customs.gov.jo/en/JCAwards_Local.aspx#)
• Jordan has an advanced telecommunications network with affordable prices and high penetration rates including 98.5% of families having mobile phones and 89% of families having internet at home. The 5th generation is expected to be available in Jordan end of 2023. https://trc.gov.jo/EchoBusV3.0/SystemAssets/ICT%20Facts%20&%20Opportunities%20in%20Jordan_SM.PDF

The Competition Law follows the principle of free determination of prices in accordance with market mechanisms and the principles of free competition, with the following exceptions:

• prices of "essential commodities" subsidised by the Government: price controls may be applied pursuant to the Industry and Trade Law No. 188 of 1998 and other specific laws, on "essential commodities" which are determined by the Council of Ministers;
• temporary government control of prices in the case of emergencies or natural disasters.
• The government sets the prices of bread sold by bakeries, as it imports wheat and barely. There are price controls on electricity and water. The tariffs/fees for a number of services are subject to price control, including certain telecommunications services, insurance services (for compulsory motor insurance), postal services, and public transport services.

https://www.wto.org/english/tratop_e/tpr_e/s325_e.pdf

Inflation rate in Jordan registered an increase of 1.35% in 2021 compared to 2020. In 2022, the first 7 months witnessed an inflation rate of 3.63% due to higher fuel prices and food prices.

http://dos.gov.jo/dos_home_a/main/archive/inflation/2022/CPI_July.pdf

Jordan is considered a relatively globalized economy as foreign trade represents more than two thirds of its GDP. Jordan exports increased significantly after adopting a free trade policy in the late 1990`s through joining the World Trade Organization (WTO) and signing free trade agreements with the US, EU, and the Arab Countries, which led to an increase in exports of more than three folds. Jordan exports in 2021 reached 8.5 billion USD while imports reached 21.6 billion USD with a trade deficit of 13 billion USD. Jordan exports to the US, Arab countries in addition to India and other Asian countries, while imports come from China, Saudi Arabia, United States, and European countries.

Jordan exports witnessed a significant increase during 2021, and a further increase in the first half of 2022, the national exports value reached USD 5.58 Billion during the first half of 2022 [i.e. an increase by 45.5% compared with the same period of 2021]. The value of re-exports reached USD 520 million during the first half of 2022 which indicates an increase by 24.8% as compared with the same period of 2021. The imports value reached USD 13.2 Billion during the first half of 2022, thus increasing by 38.6% compared with the same period of 2021.

• The main export markets for Jordanian products are: United States, Saudi Arabia, India, United Arab Emirates, Palestine, Egypt, Indonesia, Qatar.
• The main export products are: Apparel and clothing, fertilizers, inorganic chemicals, natural or cultured pearls, phosphate, pharmaceutical products, vegetables and fruits.
• The main countries where imports come from are: Saudi Arabia, China, United States, Turkey, India, Germany, and Egypt.
• The main imports are: vehicles, machinery, plastics, natural or cultured pearls, pharmaceutical products, fuels, cereals.

Source of data: Trademap (International Trade Centre)

List of FTAs

Import Procedures:

By Sea:

1-Registration of a cargo manifest (Electronic Manifest) by the shipping agent

2-Informing the Container Terminal of the arrival date of the goods by the shipping agent

3-Obtain electronic bill of lading for sea freight

4-Prepare and register the customs declaration electronically

5-Electronic declaration approval from customs

6-Payment of Customs Declaration Duties & Taxes

7-Obtain electronic delivery order

8-Payment of Required Fees for the Container Terminal

9-Approval of receipt form by the Customs Department

10-Transportation of Goods from Container Terminal to Customs Yard

11-Sealing the goods before inspection

12-Inspection and examination of goods

13-Obtaining approval from other departments

14-Releasing the goods with a guarantee

15-Sealing the goods after inspection

16-Obtain exit permit

Link for further information and documents

https://tradeportal.customs.gov.jo/procedure/1506?l=en&includeSearch=true

Export procedures:

1-Container Number Reservation by Shipping Agent

2-Prepare and register the customs declaration electronically

3-Electronic declaration approval from customs

4-Obtaining approval from other departments for goods that require this

5-Payment of Customs Declaration Duties & Taxes

6-Entering and storing containers at the port

7-Payment of Port Services Fees

8-Ensure that the shipping line approves to export the containers

9-Registration of the container on the ship by the Container Terminal

10-Storing containers on the ship

11-Inspection and examination of Red Lane goods

Link for further information and documents

https://tradeportal.customs.gov.jo/procedure/1608?l=en&includeSearch=true

Customs:

Jordan bound its tariffs on all products, and the simple average of the final bound tariffs is 16.3%: 24.1% for agricultural products, and 15.2% for non-agricultural products. Jordan charges at most MFN duty rates to all WTO Members.

More than half (52.4%) of the tariff lines are duty free. Applied MFN tariffs are within the range of 0–200%, with 16 different rates. The highest rates are applied to certain alcoholic beverages (where tariffs on some products were increased from 180% in 2008 to 200% in 2015), and tobacco and tobacco products (where tariffs were increased from 100% to 150%).

Source: Jordan`s Trade Policy Review-WTO Secretariat Report

Jordan Customs lunched the Application of Custom International Tariff Site through Mobiles (Mobile CITS) and more information could be found through the following link:

https://www.customs.gov.jo/en/mcits.aspx

Agencies involved in foreign Trade

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