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Jordan - Selling and buying

Contents extracted from the comprehensive atlas of international trade by Export Entreprises

Reaching the consumers

Marketing opportunities

Consumer behavior: The Jordanian consumer is attracted first of all by the price of the product. In addition, young people, who represent more than 60% of the total population, are very fond of technological innovation. The product's modernity is taken into account and more especially in the sectors of IT and telecommunications. A real and effective after-sales service is also more and more considered to be important by Jordanian buyers. In the field of clothing, brand names are much sought after.
Consumer profile: Jordanian commercial activity is concentrated around Amman and in the large provincial cities such as Aqaba, Zarqa and Irbid. There are very great differences in consumer behavior. The inhabitants of Amman have very westernized consumer habits, while the inhabitants of the rest of the country have more traditional lifestyles and more conservative consumer habits. In general, the Jordanian buyer is young.
Main advertising agencies:

Distribution network

Evolution of the sector: The normal system for acquiring capital  equipment and primary materials is direct selling.
Foodstuffs are distributed by 4 channels. The first hypermarket (12 000 m2) opened its doors in Amman under the Carrefour name. Supermarkets are widespread in the country. There are classic supermarkets (100 to 400 m2) and western style supermarkets (1 000 to 3 000m2). There are four supermarket chains of which 2 are local (Cozmo and El Ahlia Plaza) and 2 under franchise (C-Town and Safeway). In addition there are also civil and military cooperatives which sell local produce, with little variety, at low prices. Finally, the sector also includes groceries, markets and wholesalers specialized in spices, dried fruits, fruit and vegetables and fresh meat. Shopping centers are in full expansion especially in the capital and the number of franchises has greatly increased. They are found mostly in the clothing sector.

 

Types of outlet: This data is not available.

Market access procedures

Economic Cooperation: The Jordanian economy is very open. The country is part of the Greater Arab Free Trade Area (GAFTA), a pact of the Arab League entered into force in January 2005 which aims to form an Arabic free trade area. It has also signed bilateral free trade agreements with most of the countries of the Arab League. Jordan has also signed an agreement with the European Free Trade Association (EFTA), the United States and Singapore. Jordan has signed the Euro-Mediterranean Association Agreement which provides for a free trade area between the European Union and the other signatory countries. Finally, Jordan is a member of the Agadir agreement which provides for a system of free trade between Jordan, Tunisia and Egypt. Jordan also signed a Free Trade Agreement with Canada.

 

Non tariff barriers: The Jordanian trade system is in full liberalization. An import license is normally not necessary but an exchange permit is. However, it is obtained in an automatic way and allows you to pay on presentation of the documents or to open a documentary credit.
There are quantitative limitations on the import of certain manufactured goods and it is forbidden to import tomatoes, fresh milk, mineral water, table salt and plastic waste. Some specific products are reserved for the State's business such as sugar, wheat, flour, rice, powdered milk, cigarillos, frozen chicken, lentils and olive oil.
A license for the import of fruits, vegetables, certain chemicals, medicines, some foodstuffs and telecommunications equipment is required. Some products also require a license from various public organizations.
Average Customs Duty (excluding agricultural products): Customs duties are governed by law n°20/98. This provides for a progressive reduction of applicable duties with an upper limit in 2003 of 30% (40% in 1998). This rate should be brought down to 20% maximum in 2010. There is thus a scale of five rates for the most common goods: 0%, 5%, 10%, 20% or 30%. Alcohol and tobacco are taxed on a scale from 50 to 180%.  Imports of raw materials and machinery for the production of  capital  equipment as well as basic foodstuffs are exempted from Customs tax.
Customs classification: Jordan uses the Harmonized System.
Import procedures: The documents required for importing a product into Jordan are:

- a bill of lading for imports coming in through the port of Aqaba

- an air waybill for products imported by air or a transporter's certificate for goods having transited by land.

- a declaration of Arab transit for goods having transited Arab countries which are not neighbors of Jordan.

- an invoice showing the quantity, type and numbers of the goods as well as their weight, value and the names of the buyer and seller.

- a certificate of origin

- a declaration of value for goods whose value is over 2 000 JD.

- an exit permit for goods warehoused in free zones.

In addition, you must know that Jordan uses the system of the single administrative document ( SAD) for import declarations. This means that the declaration is directly submitted by the importer or the licensed seller through the Asycuda system. The system validates the entry, gives a registration number and indicates if the entry is green (no inspection), orange (inspection of the documents) or red (inspection of the documents and the goods). A paper copy of the declaration is given to Customs accompanied by the supporting documents if necessary.

Certain products such as fruits, chemicals, medicines or telecommunications equipment require an import license.

Customs website: Jordanian Customs Office

Organizing goods transport

Organizing goods transport to and from: Generally speaking, the road infrastructures in Jordan are very good. The country has 6 678 km of roads of which 2 756 km are motorways. Most of the roads run north/south, which allows you to reach the whole country. All the big cities are linked by motorway. Piggybacking concerns exclusively phosphates in the region of El-Hassa near Aqaba. The Ministry of Transport launched a tender in 2005 to develop rail infrastructures over the long term (over 20-25 years).

The port of Aqaba, Jordan's only access to the sea, is very modern with special containers for hydrocarbons and phosphates.

Finally, Queen Alia international airport has modern services and infrastructures.
Sea transport organizations:

Domestic business directories

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