Industrialists demand exemption of production inputs from customs duties

Jordan

Published: 2021-01-18 11:57

Last Updated: 2024-10-25 22:49


Industrialists demand exemption of production inputs from customs duties
Industrialists demand exemption of production inputs from customs duties

The Chairman of the Amman Chamber of Industry (ACI) Fathi Al-Jaghbir confirmed that supporting the competitiveness of the industrial sector in the local and export markets requires many measures, the most prominent of which is exempting industrial production inputs from customs duties.

During a meeting with industrialists and traders working in the field of manufacturing and trading of nuts, spices and coffee, he stressed the importance of activating the partnership between the two sectors when making decisions that affect the various economic sectors, calling for the removal of procedural obstacles facing the industrial sector related to the customs department.

According to a press release from ACI Monday, Jaghbir called for a discussion of the Customs Department's decision to freeze work by exchanging production inputs of nuts, coffee and spices between factories about a week ago, stressing that national industries face many challenges that limit their competitiveness in the local and export markets, such as the high cost of production and energy prices.

He indicated that the Customs Department’s decision to stop permits and approvals for selling raw materials between factories in the spice, nuts and coffee sector will harm a wide sector of roasters, mills, factories and small businesses that do not have the financial ability to import raw materials from the source.

During the meeting, participants confirmed that the current laws and procedures prohibit factories, roasters and small business owners from obtaining raw materials upon the requirement to obtain approvals for production equivalencies and five employees registered with Social Security.

They indicated that roasters and small business owners refuse to buy manufactured items, especially coffee, because they want to buy them in their raw and primary nature to uniquely manufacture and present them fresh in front of customers daily, stressing that there is no separation between the industrial and commercial sectors in the field of roasters and mills.

They pointed out that most types of coffee, nuts and spices are not completely consumed in their initial nature, but are consumed after undergoing the customary stages of manufacturing, so restricting their exemptions when imported by factories that have the ability to import raw materials greatly hurt the medium and small enterprises.

Due to this, some items become forcibly off the market, which may lead to higher selling prices for consumers.

They demanded to facilitate the process of dealing with raw materials by sale and purchase among all factories, roasters and mills by exempting these materials from customs duties, especially coffee, spices and nuts that are not completely consumed in their natural state and are subject to grinding or roasting.

They demanded the aforementioned provided that heart nuts (walnuts), peeled white almonds, and shelled pistachios are excluded from this exemption, as they are not considered raw materials for roasters and are not subject to any manufacturing processes.

The meeting was attended by the representative of the Jordanian food industries sector Muhammad Walid al-Jitan, a member of the board of directors of the ACI, Tamim Al-Qasrawi, the representative of the Jordanian craft industries sector Fawaz Al-Shakaa, and the Director General of the ACI Ishaq Arabiyat.

A decision was issued August 2015 by the Customs Department allowing the exchange and sale of exempt production inputs as production inputs between Jordanian factories.

In 2018, a decision was issued by the Council of Ministers that included approval to exempt the inputs for the production of coffee, nuts and spices from customs duties, provided that the importer is established and licensed by the Ministry of Industry, Trade and Supply for the manufacturing of coffee, nuts and spices, and these raw materials are included in their manufacturing.