The Law of the
Free Zones Corporation
No. (32) for
1984 and its Amendments
Article
(1)
This Law shall be named
: The Free Zones Corporation Law No. (32) for 1984 and shall come into effect
on the date of publication in the Official
Gazette (1).
Article
(2)
The following
terms and expressions wherever mentioned in this Law shall have the meanings
assigned to them hereunder, unless the context indicates otherwise.
| The
Minister |
: |
The
Minister of Finance. |
| The
Free Zones |
: |
A part of the territories of the Kingdom demarcated and fenced by a partition, wherein goods are placed for storage and manufacturing purposes and
whereby all taxes and fees payable thereon are suspended, as if these goods
were outside the Kingdom. |
| The
Director General |
: |
The Director General of the Free Zones Corporation. |
|
The
Manager |
: |
The Manager of the
Free Zone. |
|
The
Corporation |
: |
The Free Zones Corporation as established in accordance with the provisions
of this Law. |
|
The Board |
: |
The Board
of Directors of the Corporation. |
|
The Goods |
: |
All
merchandises and materials of whatever kind. |
|
The Invested Capital |
: |
The foreign currencies transferred into and from the free zone in accordance with the instructions of the Central Bank as well as
machineries, tools, materials, goods and equipment necessary for setting up,
operating or expanding any project inside the free zone. |
|
The Public Free Zone |
: |
A zone
wherein investment is administered by the Corporation
(2). |
|
The Private Free Zone |
: |
A zone
which is administered by any party from the private sector under
the supervision of the Corporation (3). |
|
Joint Free Zone |
: |
A zone
established jointly between the Kingdom and other countries, or
between parties of the public and private sectors in any of
them, with due observance of the provisions of agreements signed
for this purpose (4). |
|
Economic Activity |
: |
Any
commercial, industrial, agricultural or service activity which
is carried out by a registered person at the free zones (5). |
|
Registered Person |
: |
Natural
person or legal person who is registered with the Corporation to
exercise economic activity in accordance with the provisions of
this Law, regulations and instructions issued pursuant thereof
(6). |
(1) Published in the official
gazette Issue No
(3280) of 16/12/1984.
(2, 3, 4, 5, 6)
Amended
so pursuant to Temporary Law No. (19) of 2004 published in the official gazette
Issue No. (4662) of 1/6/2004.
Article
(3)
|
A. |
A Corporation named (the Free Zones Corporation) shall be
established in the Kingdom affiliated to the Minister, and
will enjoy a legal personality with independent financial and
administrative status, and accordingly shall have the right to
conduct all legal acts and procedures and to delegate public
prosecutor or appoint any other person for this purpose. |
| B. |
Its
registered office shall be in Amman and it may establish offices in any part of
the Kingdom. |
Article
(4)
The
Corporation shall be entrusted to carry out the following tasks and duties:
| A. |
To establish the free zones and cancel them. |
| B. |
To establish warehouses, stores and any other establishments
necessary for managing and developing the free zones in such a
manner that ensures their growth and booming including the joint
free zones. |
| C. |
To manage, invest
and develop free zones and gearing them to serve the national economy, promote
the international trade exchange, transit trade and export oriented industries. |
| D. |
To implement the conditions and provisions relating to customs
control, foreign exchange control and set up any establishments
necessary for this purpose. |
| E. |
Registering
establishments and companies at any free zone (1). |
| F. |
Issuance of licenses
and approvals related to exercising economic activities at the free zones in
accordance with the provisions of this law, regulations and instructions
issued pursuant thereof (2). |
| G. |
Protecting and
preserving environment in the free zones and ensuring continuous development in
accordance with the provisions of the enforce Protection of
Environment Law and Regulations issued therewith.
For this purpose, the Minister shall exercise the
authorities of the Minister of
Environment, and the Corporation shall exercise the power of
Ministry of Environment provided in such legislations through
coordination of the two sides (3). |
(1, 2)
Amended so pursuant to Temporary Law No. (19) of 2004 published in the
Official
Gazette Issue No. (4662) of 1/6/2004.
(3)
Amended so pursuant to Temporary Law No. (9) of 2007 published in the
Official
Gazette Issue No. (4817) of 1/4/2007.
Article
(5)
It shall not
be permitted to store any transit goods passing through the Kingdom except in
the free zones.
Article
(6)
| A. |
The Board of Directors of
the Corporation shall be composed of the Minister
of Finance as the Chairman, the Director General of the Corporation as Vice
Chairman and membership of a representative of each of the following:
|
1.
Ministry of Industry and Trade |
Member |
|
2.
Ministry of Finance / Customs Member |
Member |
|
3.
Ministry of Transport Member |
Member |
|
4.
The Central Bank Member |
Member |
|
| B. |
The Board members shall be appointed through a decision issued
by the Council of Ministers following a recommendation of the
Minister. |
Article
(7)
The Board
shall administer and supervise the affairs and activities of the Corporation,
and shall be entitled to achieve this purpose the full authorities and tasks
including the following :
| A. |
Laying down
the general policy of the Corporation. |
| B. |
Preparing plans and
programs necessary for developing and qualifying the free zones to attract
investments and create developed investment atmosphere, which contributes in
activating industry, trade, tourism and services in the zone (1).
The Board upon the recommendation of the Director General may
form a consultative committee comprises specialized persons for
specified purposes. |
| C. |
Studying free zones
investment applications for establishing industrial commercial and storage
projects. |
| D. |
Providing all
necessary insurance arrangements to the free zones. |
| E. |
Fixing service fees
payable to the free zones with the approval of the Council of Ministers. |
| F. |
Signing agreements
and contracts concerning loans with the approval of the Council of Ministers. |
| G. |
Approving the draft
general budget of the Corporation and submitting it to the Council of Ministers
for approval. |
| H. |
Preparing draft of
laws and regulations. |
(1)
Amended so pursuant to Temporary Law No. (19) of 2004 published in the
Official
Gazette Issue No.(4662) of 1/6/2004.
Article
(8)
| A. |
The Board
shall hold its meetings at the invitation of the Chairman or, in his absence,
the Vice Chairman whenever need arises for such a meeting. A meeting of the
Board shall be deemed to be legal if at least four members including the
Chairman or the Vice Chairman are present. Resolutions shall be taken by
consensus of opinion or by majority of votes, and in the event of a tie, the
Chairman will have a casting vote. |
| B. |
The
remunerations of the members of the Board will be determined by a resolution of
the Council of Ministers upon the recommendation from Minister. |
Article
(9)
The Chairman
shall represent the Corporation vis-à-vis other parties.
Article
(10)
The Director
General shall be appointed and his services shall be terminated, by a decision
issued by the Council of Ministers provided that such a decision be endorsed by
Royal decree.
Article
(11)
The Director
General shall undertake the following tasks and authorities:
| A. |
To execute
the Corporation’s general policy as laid down by the Board and execute the
resolutions issued by it. |
| B. |
To manage the
executive system of the Corporation and supervise the work of officials and
employees therein. |
| C. |
To prepare
and submit to the Board the draft general budget. |
| D. |
To exercise
any powers which may be delegated to him by the Board or provided for in any
regulations issued in accordance with the provisions of this Law. |
Article
(12)
The
Corporation’s financial revenues shall be consisted of the following:
| A. |
Rent charges
and temporary occupation of lands and properties owned by the
Corporation. |
| B. |
Revenues of
the services furnished by the Corporation as prescribed in the investment
regulation. |
| C. |
The funds
allocated in the general budget. |
| D. |
Loans
obtained by the Corporation. |
| E. |
Any other
revenues approved by the Council of Ministers. |
Article
(13)
| A. |
The
Corporation shall enjoy all exemptions and privileges offered to ministries and
government departments. |
| B. |
It shall be
permissible to exercise manufacturing enterprises and establish factories in the
free zones with the approval of the Board of Directors, provided that one or
more of the following characteristics are fulfilled:
|
1. |
Industries that are
new and not existed locally and which depend on advanced modern technological
processes. |
|
2. |
Industries for
which primary materials, are locally available or which use locally
manufactured parts and also industries complementing domestic ones. |
|
3. |
Industries which
raise the level of labor skills and contribute to its technical advancement. |
|
4. |
Industries which
meet consumer needs and assist in reducing dependence on imports from outside
the Kingdom. |
|
| C. |
The
categories of industries which may be established in the free zone in accordance
with the provisions of this Law shall be determined by a resolution of the
Council of Ministers upon the recommendation of the Board of
Directors. |
| D. |
The registered person who exercises an economic activity in the
free zone will enjoy the following exemptions (1):
|
1. |
Exemption project’s profits from both income taxes for goods exported outside the
Kingdom as well as transit trade in addition to profits
accruing from selling or transferring of goods inside
the borders of the free zones (2). Profits
accruing goods when placed for domestic market shall be excluded from such exemption
(3). |
|
2. |
Exempting salaries
and allowances of non-Jordanian employees in projects established in the free
zone from income and social service taxes. |
|
3. |
Exempting imported
goods or exported therefrom to parties other than domestic market from import
fees, custom duties and all taxes and fees accrued thereon except services and
rent charges. |
|
4. |
Exempting buildings and real estate constructions built
in the free zones from the licensing fees as well as
from buildings and land taxes. |
|
5. |
Permitting the
transfer of the capital invested in the free zone and the profits generated
therefrom outside the Kingdom in accordance with the regulations in force
therein. |
|
6. |
Exempting the
products of the industrial projects established in the free zone, upon placing
them for consumption in the domestic market from customs duties within the
extent of the value of materials, costs and local expenditures included in
their manufacturing provided that the value is estimated by a committee chaired
by the Director General or his Deputy, and a representative of each of the
Ministry of Industry & Trade and the Ministry of Finance / Customs,
appointed by the competent Minister. |
|
| E. |
With due observance of the previsions of this Law, Regulations
and Instructions issued pursuant thereof (4) the
exemptions provided in this Article and the licensing for the
establishment of investment projects in the free zone shall be
subject to the conditions and guarantees laid down by the Board
of Directors. |
| F. |
The investors shall be directed to establish industries in the public,
private and joint free zones so that their industrial production be
exported outside the Kingdom, and the Board may allow entry of a
percentage of such products to domestic market (5) whenever
it deems necessary. |
| G. |
Notwithstanding the provisions of this Law or any other
legislations, Sales Tax shall be imposed on sold commodities and
services provided in the private free zones (6) which are mainly specified for tourist activities (7)
as follows:
|
1. |
(8%) tax of the value of commodities and services upon
selling for consumption in the zone and such commodities
and services shall be determined in accordance with a
regulation which includes provisions and procedures
related to collecting and refunding tax (8). |
|
2. |
Tax on sales of local commodities of free zones origin
if sold from these zones to the remaining zones in the
Kingdome in accordance with the provisions of enforce
Tax on Sales Law provided that (9) the
provisions of the enforced customs law be applied on
subjects related to customs duties and procedures
(10). |
|
3. |
Tax on Services sales which are executed from the free
zones to the remaining zones in the Kingdom or outside
the Kingdom in accordance with the provisions of the
enforced Public Tax on Sales Law (11). |
|
4. |
Special tax on sales of tobacco and its manufacturing,
alcoholic beverages , intoxicants and beer upon selling
them for consumption in the free zones, and they shall
be determined in accordance with instructions issued by
the Council of Ministers for this purpose (12). |
|
| H. |
Determining the
process of collecting taxes provided for in Items (2), (3) and (4) of
paragraph (G) of this Article shall be in accordance with a regulation to
issued for this purpose. |
| I. |
The
Corporation shall keep an operating reserve that does not exceed
at any time general expenses estimated in the Corporation's
budget; surplus funds shall be transferred for Treasury of the
State. |
(1,2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12)
Amended so pursuant to Temporary Law No. (19) of 2004 published in the
official gazette issue No. (4662) of 1/6/2004.
Article
(14)
It shall be
permissible for any registered person to exercise economic activity, except what
is prohibited or restricted in the free zone, in accordance with a regulation
issued by the Council of Ministers for this purpose; where it shall include the
terms and conditions necessary for exercising restricted activities and revenues
which may accrue thereof for the General Treasury (1).
Article
(15)
The Audit
Bureau shall audit the accounts of the Corporation. The Council of Ministers may
if necessary appoint for this purpose, a special Chartered Accountant who will
make a report on this subject and submit it to the Audit Bureau.
Article
(16)
Notwithstanding
the provisions of any other law or regulation, the Corporation shall have the
right to increase the charges of the rent of its leased installations or real
estates not more than once every three years at most in such a way not to
exceed the inflation rate or the rates of increase of prices announced by the
Central Bank from time to time, taking into consideration the terms of contract
in other matters.
Article
(17)
As from the
effective date of the provisions of this Law, all installations, real estates,
rights and privileges belonging to Aqaba Free Zone will accrue to the
Corporation, which will assume all obligations consequent thereon. All employees
and workers of the Aqaba Free Zone shall be considered of the cadre of the
Corporation, together with all the rights and privileges due to them.
Article
(18)
The
Corporation may issue bonds with categories mentioned in
the Public Debt Law. The pertinent terms and conditions shall be determined
pursuant to a special regulation to be issued for this purpose and the interests
accruing from investment in such bonds will be exempted from income and social
service taxes as well as from any other taxes and fees.
Article
(19)
| A. |
The Council of Ministers may, upon the recommendation of the
Board issue the necessary regulations for the implementation of
the provisions of this Law, including the regulations pertaining
to the financial and administrative affairs, supplies, work
contracts, personnel, employees and their saving funds, the
rules pertaining to running and conditions of
investment of the free zones, customs and public security
procedures. Pending the issue of such regulations, the
regulations of the Aqaba Free Zone shall remain in force and
shall be applied on the Corporation to the extent that they do not
contradict with the provisions of this Law. |
| B. |
The regulations provided for in paragraph (A) of this Article
may cover the imposition of penalties against the violations
committed against the provisions of this Law or any regulation
issued in accordance therewith, and also the compensations and
financial fines payable in respect of making compromise or
settlement thereon, as well as the wages and bonuses payable to
detectors of such violations. |
| C. |
Fees to be received by the Corporation for registration and
licensing of persons at the free zones shall be determined in
accordance with regulations issued pursuant to this Law (2). |
Article
(20)
With due
observance to the provisions of paragraph (A) of Article (19) (3) of
this Law , any law or legislation will be cancelled to the extent of its
contradiction with the provisions of this Law.
Article
(21)
The Prime
Minister and Ministers, each within the scope of his competency, are charged
with implementation of the provisions of this Law.
(1,2, 3
) Amended
so pursuant to Law No. (19) of 2004 published in the official gazette
issue No. (4662) of 1/6/2004
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