Garment Traders Association (GTA) President, Sultan Allan, called for standardizing tariff and customs duties countrywide, including the Aqaba Special Economic Zone Authority (ASEZA).
In his interview with “Petra,” Allan hoped the customs tariffs will stand at ‘zero,’ or 5% for services, in addition to 5% as a sales tax.
If this mechanism is implemented, it will lead to enhancing the citizens’ purchasing power and creating a balance between postal parcels and the garment imports through customs centers, in addition to encouraging shopping tourism from neighboring countries, Allan pointed out.
Allan, who is also a board member of the Amman Chamber of Commerce (ACC), said inbound parcels should be treated with the same mechanism, where the Kingdom’s clothing and shoes imports are dealt with in terms of customs duties, or treat the garment sector as postal parcels in the taxing aspect.
Allan noted JD23 are paid for a postal parcel worth JD50 as customs duties if the importer is a merchant, while JD5 is paid if the parcel goes directly to the consumer, describing this as “the obvious defect in related regulations in place.”
Allan also referred to an ACC study, which recommended setting new controls on postal parcels coming to the local market that were found as a “major” challenge for the garment sector.
This projected regulatiion will contribute to reviving the movement of Jordan’s trade activity and supporting the commercial and service sectors affected by the Covid-19-related consequences, according to Allan.
SOURCE: JORDAN NEWS AGENCY