Jordanian fears of Iraq's retreat by exempting products from taxes
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Jordanian sources confirmed that the Iraqi authorities have not yet implemented the decision to exempt Jordanian products from customs duties and are still collecting these fees in varying percentages.
This comes despite a decision by the Iraqi authorities last month to exempt Jordanian products from customs duties.
The sources, who asked not to be named, said that the Ministry of Industry, Trade and Supply began to move quickly and addressed the Iraqi side in order to emphasize the need to comply with the application of the exemption of Jordanian products from customs duties.
The sources indicated that the Ministry of Industry is currently waiting for the response of the Iraqi authorities to the communications sent to them; the response is expected to be decisive today (Thursday), either by agreeing to apply or waive the exemption.
The sources said that the Ministry of Industry circulated lists of goods exempt from customs duties on the industrial sector after the Iraqi authorities supplied to Jordan.
For his part, said an Iraqi official source at the Iraqi embassy in Amman, "The delay in the implementation of the decision to exempt Jordanian products is due to delay in reporting to the Iraqi customs authorities the decision, denying that there is a retreat from the decision to exempt, especially as this decision of the Iraqi Council of Ministers."
He added that the staff of the Iraqi embassy in Amman is following up with the authorities of his country to implement the decision to exempt Jordanian products and circulate to the Iraqi ports.
This comes at a time when the Minister of Industry, Trade and Supply expressed the judges last month that Iraq will begin to implement the decision to exempt 371 Jordanian goods from customs duties to enter its markets earlier this year, "which did not happen until now, as confirmed by industrialists.
Industrialists expressed their fears that the Iraqi authorities would retract their commitment to Jordan to exempt Jordanian products from customs duties imposed on all imports by 30% by the end of 2016.
The invoices for the clearance of goods exported to Iraq show that the Iraqi authorities have levied customs duties on them.
The head of the committee to follow up on export issues to Iraq, Hassan al-Smadi, said that Jordanian products exported to Iraq are still imposed customs duties by the Iraqi authorities in varying degrees.
Al-Smadi said that the products included in the decision to exempt fees, which have been announced recently, the Iraqi authorities still pay their customs duties.
He called on government agencies to communicate with the Iraqi authorities to implement the decision to exempt Jordanian products from customs duties.
He pointed out that many of the owners of Jordanian factories to export to Iraq until the implementation of the decision to exempt Jordanian products from customs duties.
He stressed that the application of the exemption of Jordanian products from Iraqi fees encourages the increase of exports and gives advantage to Jordanian products to compete within the Iraqi market.
He reiterated that Iraq is one of the most important trading partners of Jordan, the main nerve of the Jordanian industry, and enjoys the priority and priority of many Jordanian traders, importers and industrialists who prefer his market to other markets.
It is noteworthy that the Committee to follow up the export issues to Iraq was established in 2015 by the General Authority in the Chamber of Industry Oman.
The value of national exports during the first ten months of last year increased by 843.6 thousand dinars to 274.88 million dinars instead of 274.05 million dinars compared to the same period of 2016.
Jordanian exports to Iraq peaked in 2013 to reach 882 million dinars, while in 2016 they fell to 330 million dinars.
Despite the decline of Jordanian exports to Iraq, but the industrial sector maintained the export to Baghdad before the reopening of "Trebil" at the end of August, through the road through Saudi Arabia and Kuwait to Iraq or through the sea route through the port of Aqaba to the port Umm Qasr through Jebel Ali Port, despite the high shipping costs and the length of time required for the arrival of the goods.
The Iraqi government decided to reduce the tariff rates imposed on imports of goods as of the beginning of this year, with a minimum fee of 0.5% and a maximum of 30%.
The Director General of the Industry of Oman, Dr. Nael al-Husami, said that the industrial sector is still waiting for the decision to apply the exemption of Jordanian products from customs duties; there is a state of anticipation of industrialists until the implementation of the decision and benefit from it.
He called on government bodies to communicate with the Iraqi authorities in order to implement the decision and increase trade exchange between the two countries.
He said the revival of trade relations between the two countries requires that Iraqi trucks be allowed to enter Jordan for direct loading from the factory land or allow Jordanian trucks to enter Iraq loaded with goods.
He explained that allowing trucks to enter the two countries reduces shipping costs by not less than 36%, and allows the loading of larger quantities of goods, especially since the method used to ship goods to Iraq through the exchange yard caused an increase in shipping costs and damage to goods.
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