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Marketing Jordan's Customs Due Diligence and Supply Chain Security Standards
AMIR II Achievement of Market-Friendly Initiatives and Results
March 2006 This document was produced for review by the United States Agency for International Development. It was prepared by Chemonics International Inc.
JORDAN AMIR II Achievement of Market-Friendly Initiatives and Results Contract No. 278-C-00-02-00210-00 The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.
Contract No.: 278-C-00-02-00210-00
Contractor Name: Chemonics International, Inc.
USAID Cognizant Technical Office: Office of Economic Opportunities
USAID/Jordan
Date of Report: March 2006
Document Title: Marketing Jordan's Customs Due Diligence
and Supply Chain Security Standards
FINAL
Authors' Names: Dr. Mohammed Tarawneh and Dr. Mamoun
Akroush/Chemonics
Activity Title and Number: Achievement of Market-Friendly Initiatives
and Results Program (AMIR Program)
“PSP-SMA-IRC-006,” PSPI Component
Task No. 595.01.03, 595.01.04
Marketing Jordan's Customs Due Diligence and
Supply Chain Security Standards
Final
March 2006
The opinions expressed herein are those of the author(s) and do not necessarily reflect the
opinions of the United States Agency for International Development or the United States
Government or Chemonics International or any firms in the AMIR Program consortium
or the management of the AMIR Program.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program ii
Data Page
Name of Component: Private Sector Policy Initiative
Authors: Mohammed Tarawneh and Mamoun
Akroush/Chemonics
Practice Area: Trade and Investment
Service Offering: N/A
List of Key Words Contained in Report: Customs due diligence, supply chain
security, marketing, Golden List Program,
Jordan
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program iii
Abstract
During the second half of 2004, Jordan Customs (JC) initiated a voluntary, self-
compliance program called the Golden List Program (GLP). The program targeted
Jordan supply chain companies including importers, exporters, transporters and transport
operators, customs clearing agents, warehouse operators, and Qualified Industrial Zone
(QIZ) manufacturers (manufacturers qualified for duty-free exports to the United States).
According to the GLP, supply chain companies that are exercising customs due diligence,
have supply chain security procedures in place, have a good compliance history with JC
and compliant with Jordan customs law and regulations might qualify to become a GLP
member.
The GLP is considered a national effort undertaken by JC towards the implementation of
the World Customs Organization (WCO) Framework of Standards to Secure and
Facilitate Global Trade that came into effect in June, 2005. Jordan has already signed the
letter of intent to implement the WCO Framework and, with assistance from the USAID-
funded AMIR Program in Jordan, has taken wide steps towards implementing the
Framework. In partnership with the private sector in Jordan, JC has implemented the
GLP to qualify Authorized Economic Operators (AEOs) according to the customs-to-
business pillar of the WCO Framework of Standards. Further, JC intends to implement
the other pillar, customs-to-customs pillar, of the WCO Framework of Standards, starting
with Jordan's main trading partner countries.
The objective of this project was to facilitate marketing the GLP of JC nationally and
internationally. On the national front, the aim was to make the program known to Jordan
supply chain companies and invite them to join. On the international level, the aim was
to make the program known to other countries, especially Jordan main trading partners,
and seek their recognition of the GLP. To this extent, the project has established several
tasks all aimed at facilitating the marketing efforts of the GLP nationally and
internationally. This paper documents the results of these tasks.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program iv
Abbreviations and Acronyms
AEO Authorized Economic Operators
AMIR Achievement of Market-Friendly Initiatives and Results
C-TPAT Customs-Trade Partnership Against Terrorism
JC Jordan Customs
JEA Jordan Exporters Association
JEDCO Jordan Enterprise Development Corporation
JIB Jordan Investment Board
MoU Memorandum of Understanding
USA United States
USAID United States Agency for International Development
USCBP United States Customs and Border Protection
WCO World Customs Organization
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program v
Table of Contents
Executive Summary................................................................................................... 1
Recommendations...................................................................................................... 5
1. Introduction……..………………………………………………………………...6
2. Objective ................................................................................................................ 8
3. Results.................................................................................................................... 9
Appendix A Memorandom of Understanding ....................................................... 25
Appendix B Mutual Recognition Request letter .................................................... 30
Appendix C Jordan Main Traded Commodities by Tariff Classification............. 33
Appendix D Golden List Program of Jordan Customs - How to Join .................. 71
Appendix E Golden List Program of Jordan Customs - How to Implement ...... 103
Appendix F GLP - Questions & Answers Brochure............................................ 124
Appendix G Golden List Program Marketing Strategy ........................................ 130
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 1
Executive Summary
During the second half of 2004, Jordan Customs (JC) initiated a voluntary, self-
compliance program called the Golden List Program (GLP). The program targeted
Jordan supply chain companies including importers, exporters, transporters and transport
operators, customs clearing agents, warehouse operators, and Qualified Industrial Zone
(QIZ) manufacturers (manufacturers qualified for duty-free exports to the United States).
According to this program, supply chain companies that are exercising customs due
diligence, have supply chain security procedures in place, have a good compliance history
with JC and compliant with Jordan customs law and regulations might qualify to become
a GLP member. Golden List companies will enjoy preferential treatment by JC in the
form of certain incentives. Companies that do not qualify to become a member of the
GLP can work jointly with the JC to make certain improvements to enable them to join.
The GLP is considered a national effort undertaken by JC towards the implementation of
the World Customs Organization (WCO) Framework of Standards to Secure and
Facilitate Global Trade, which came into effect in June 2005. Jordan has already signed
the letter of intent to implement the WCO Framework and, with assistance from the
Achievement of Market-Friendly Initiatives and Results (AMIR) Program, funded by the
United States Agency for International Development (USAID) in Jordan, has taken wide
steps towards implementing the Framework. In partnership with the private sector of
Jordan, JC has implemented the GLP to qualify Authorized Economic Operators (AEOs)
according to the customs-to-business pillar of the WCO Framework of Standards.
Further, JC intends to implement the other pillar, customs-to-customs pillar, of the WCO
Framework of Standards, starting with Jordan's main trading partner countries. JC will be
seeking mutual recognition of its GLP as part of implementing the customs-to-customs
pillar. Within the context of the WCO Framework of Standards, the GLP can be
summarized in the following few points.
1. The program targets Jordan supply chain companies (AEOs) including importers,
exporters, transporters and transport operators, customs clearing agents,
warehouse operators, and Qualified Industrial Zone (QIZ) manufacturers
(manufacturers qualified for duty-free exports to the United States). According to
the GLP, supply chain companies that are exercising customs due diligence, have
supply chain security procedures in place, have a good compliance history with JC
and compliant with Jordan customs and non-customs laws and regulations may
qualify to become a GLP member.
2. The GLP is a customs-business partnership, thus satisfies the customs-to-business
pillar of the WCO Framework of Standards. GLP aims at enhancing customs due
diligence and supply-chain security of Jordanian businesses participating in the
international trade supply chain; while, at the same time, facilitating Jordan's trade
with other countries. The JC developed the program with assistance from the
USAID-funded AMIR Program.
3. GLP sets minimum customs due diligence and supply-chain security criteria that
must be met by a company desiring to become a GLP member. An audit team of
customs officers undertakes extensive audit processes, including customs-
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 2
transactions and supply-chain security audits, on the applicant company to verify
its compliance with program criteria.
4. GLP member companies enjoy a preferential treatment by JC in the form of
certain incentives; for example, reduced frequency of cargo inspections, pre-
arrival clearance of shipments, expedited borders clearance times, etc.
5. The supply-chain security side of the GLP has benefited from international
organizations and foreign countries codes or recommendations, including:
a. The International Shippers and Freight Forwarders Security Code—Draft
Rev. 4 by United Nations Center for Trade Facilitation and Electronic
Business (UN/CEFACT).
b. “High Level Guidelines for Co-operative Arrangements between WCO
Members and the Private Sector” to increase supply chain security, as
adopted by the WCO in its general assembly in June 2003.
c. United States C-TPAT guidelines on supply chain security.
d. International Ship and Port Facility Security Code (ISPS Code) by the
International Maritime Organization.
e. BASC (Business Anti-Smuggling Coalition) Standards by the World
BASC Organization.
6. JC intends to implement the customs-to-customs pillar of the WCO Framework of
Standards via seeking mutual recognition of its GLP from other countries (starting
with Jordan's main trading partner countries).
The objective of this project was to facilitate marketing the GLP of JC nationally and
internationally. On the national front, the aim was to make the program known to Jordan
supply chain companies and invite them to join. On the international level, the aim was
to make the program known to other countries, especially Jordan main trading partners,
and seek their recognition of the GLP.
The project, funded under a USAID grant through its AMIR Program, has established
several tasks all aimed at facilitating the marketing efforts of the GLP nationally and
internationally. Task one involved forming a program coalition of a number of public
and private sector organizations to collaborate and join efforts with JC to market the GLP.
It was realized from the onset of this project that the success of any future marketing
efforts would depend on key roles that should be played by key public and private sector
partners or stakeholders who have a stake in the success of the GLP. The mission
statements of three organizations were found to fit nicely with the mission and national
benefits of the GLP, thus selected to form a program coalition with JC. The three
organizations were Jordan Enterprise Development Organization (JEDCO), a
governmental organization, Jordan Investment Board (JIB), a governmental organization
and Jordan Exporters Association (JEA), a private sector representative organization.
After several meetings with these organizations, a Memorandum of Understanding
(MOU) that defines the roles each organization agreed to play was signed between them
and JC. A marketing organization structure encompassing the selected three
organizations and JC was developed to implement the GLP marketing strategy, which
was developed under Task 7.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 3
Task two involved translating all official GLP publications into English. Since the
official language in Jordan is Arabic, and since some of the GLP publications were
available in Arabic only, to market the GLP internationally, all publications are now
available in both Arabic and English. It was recognized that communicating the GLP to
Arab countries should be in Arabic while to other countries should be in English.
Because of the efforts made in this task, several documents pertaining to the GLP are now
available from JC in Arabic and English.
Task three involved identifying Jordan largest trading-partner countries from which JC
could seek mutual recognitions of the GLP under the customs-to-customs pillar of the
WCO Framework of Standards to Secure and Facilitate Global Trade. Trade value
figures in Jordanian Dinars between Jordan and other countries during the years 2003-
2004 were compiled from the Jordan Department of Statistics and validated using the
database of JC. The United States, Iraq, India, Saudi Arabia and Syria were the largest
markets for Jordan's exports. Saudi Arabia, China, Germany, United States, and Italy
were the largest markets from which Jordan imports. Jordan has sizable trade
transactions with several Arab or Middle-Eastern counties including Saudi Arabia, Iraq,
Syria, United Arab Emirates, Algeria, Lebanon, Kuwait, Sudan, Yemen, Libya, Qatar,
Bahrain, Oman, Turkey, Iran and Israel. In addition, Jordan has sizable trade volumes
with a number of European countries including Switzerland, Spain, Netherlands, Italy,
Germany, France, United Kingdom, Ukraine, Romania, Belgium, and Sweden. Most
notably, the United States is the largest and most promising market for Jordan's exports.
These countries were matched with the WCO list of "Members who have expressed their
intention to implement the WCO Framework of Standards to Secure and Facilitate Global
Trade: situation as of October 30, 2005". With the exception of very few countries, all
Jordan's main trading partners have expressed their intention to implement the WCO
Framework of Standards.
Task four involved identifying 20-30 target countries for customs-to-customs mutual
recognitions of the GLP under the WCO Framework of Standards and assisting JC in
contacting the identified countries and presenting the GLP to them. His Excellency, the
Director General of JC formed a committee of senior customs officers to choose 20-30
target countries. The consultant has served in an advisory capacity to the committee.
After four meetings, and using pre-established 6-item selection criteria, the committee
identified 29 target countries for JC to contact. The primary target was the United States
because it was the largest market for Jordan's exports, has a similar program to the GLP
(C-TPAT) and has a bi-lateral free trade agreement with Jordan. In addition, the
committee viewed the extent of cooperation between JC and the US Customs and Border
Protection (USCBP) as “superior.” Other selected countries include Canada, United
Kingdom, Germany, France, Italy, Spain, Ukraine, Bulgaria, Poland, Belgium,
Switzerland, China, Japan, India, Indonesia, Pakistan, Yemen, Libya, Egypt, United Arab
Emirates, Lebanon, Algeria, Kuwait, Sudan, Saudi Arabia, Oman, Turkey, and Iran. As
of this writing, an initial customs-to-customs mutual recognition letter was prepared and
sent to each of these countries. His Excellency the Director General of JC signed the
letter addressed to the Director of Customs Service/Department in each of the identified
countries (29 countries). The letter included two attachments; a summary sheet of the
GLP and a survey sheet asking a few questions to be answered by a target country. The
letter was formally referenced by "Implementation of Customs-to-Customs Pillar of the
World Customs Organization Framework of Standards to Secure and Facilitate Global
Trade".
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 4
Task five involved identifying the top 30% (minimum) of Jordan trade goods by tariff
classification that would benefit from the mutual recognition processes. The objective of
identifying the commodities, as tied to the target countries, is intended to identify the
commodities that would be most likely to benefit from a mutual recognition between the
two countries' customs administrations (Jordan and any other country). This information
will be advantageous to identify those industries in both countries that should place a high
emphasis on entering the GLP and the trade partner country's program. Trade value
figures in Jordanian Dinars (along with commodities descriptions and harmonized tariff
classification codes) between Jordan and other countries during the year 2004 were
compiled from the Jordan Department of Statistics and validated using the database of JC.
Jordan main exported commodities were apparels, clothing, precious stones and metals;
furniture, bedding, mattresses and cushions; pharmaceutical products; animal or vegetable
fats and oils; tobacco products; plastics and articles thereof; salt, sulphur, plastering
materials and cement; paper, paperboard and paper pulp; and few others. Jordan main
imported commodities were mineral fuels, mineral oils, bituminous substances and
waxes; plastics and articles thereof; sugars and sugar confectionary; knitted or crocheted
fabrics; electric machinery and equipment; articles of apparel and clothing (not knitted);
vehicles and their parts; pharmaceutical products; and few others. Thus, Jordan industries
dealing with these commodities should place a high emphasis on entering the GLP.
Task six involved preparing marketing materials to assist in marketing the GLP. The
intended materials are to spread awareness about the GLP, and assisting companies
interested to join in how to proceed and what needs to be done. Three stand-alone
documents were prepared in this task. "How to Join the Golden List Program" is a step-
by-step guide explaining all processes to be undertaken by a supply-chain company to
join the GLP. "How to Implement Customs Due Diligence and Supply Chain Security in
Your Company" is a guide to all supply-chain companies on how to implement customs
due diligence and supply-chain security which are a major part of JC's criteria for
accepting a company on the GLP. "Golden List Program of Jordan Customs: Questions
and Answers" is a brochure explaining in generic terms what is the GLP is about,
program benefits, types of companies accepted on the program, etc.
Task seven involved developing a multi-year marketing strategy for the GLP to be
implemented by the coalition partner organizations (formed under Task one). The GLP is
considered a national program of Jordan and expected to influence the trade sector, and
thus, the whole economy. However, it may take few years for the program to gain the
international recognition it deserves. Of course, this recognition will not come true
without a national effort encompassing both the private sector and the government. More
importantly, a marketing strategy needs to be in place so that each party, a governmental
or a private sector, understands its role and responsibility. The marketing strategy
developed under this task included three main phases. The Situational Analysis Phase
included discussions of market demographics, market needs, market trends and growth,
SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis and other critical
issues. The Marketing Strategy Formulation Phase included discussions of mission
statement, market segments (targeted enterprises), goals and objectives and marketing
strategy components. The Marketing Strategy Implementation Phase included
discussions of marketing organization, partner organizations' roles, the first-year
marketing plan, control and performance assessment and GLP scenarios.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 5
Recommendations
1. JC has already sent letters to the customs services/departments of 29 foreign
countries requesting mutual recognitions of the GLP under the customs-to-
customs pillar of the WCO Framework of Standards to Secure and Facilitate
Global Trade. JC should seek funding and technical assistance from international
donor organizations to support their mission. Opening dialogue with 29 foreign
customs services/departments is a huge effort on the part of JC and may not
succeed without a solid technical support standing by their side.
2. Coalition partner organizations (JC, JEDCO, JIB and JEA) have already signed a
MOU through which they committed themselves to market the GLP nationally
and internationally. Jointly, coalition partner organizations should seek funding
from international donor organizations to guide their efforts.
3. Coalition partner organizations should initiate national and international
marketing campaigns of the GLP. Marketing campaigns, especially on the
international level, are complex and expensive. Jointly, coalition partner
organizations should seek funding from international donor organizations to fund
such campaigns.
4. The GLP criteria for companies' inclusion on the Golden List should be monitored
and upgraded as experience emerges. The customs-to-customs mutual recognition
processes with other countries may stipulate changes to the program criteria and to
all other modalities.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 6
I. Introduction
A. Background
In modern customs practice, a primary objective of risk management is a concentrated
effort to identify and encourage low risk shipments. By the elimination of low risk
shipments from its workload, customs can direct limited resources to find and intercept
shipments that may present revenue, health, safety, or security risks. To achieve this
goal, customs must work in partnership with honest participants in the international
trading system. Both sides must do their part. Informed, voluntary compliance
eliminates the need for inspecting every shipment every time. To be voluntarily
compliant, the international trade community participants must develop and implement
documented systems of self-regulation. This self-regulation ensures that the businesses
exercise reasonable care or due diligence. There are three key elements essential for an
international transaction to qualify as low risk:
1. The associated businesses to the transaction must have a history of apparent
compliance
2. The associated businesses have been the subject of a compliance audit by customs
or an independent organization fully qualified and accredited to conduct a customs
compliance audit
3. The associated businesses have a functional, documented due diligence system. A
due diligence system simply put, is a documented process to insure that the
company is taking reasonable steps to insure compliance with the international
trade related laws and procedures.
The most advanced application of the low risk, due diligence process is currently in
practice in the United States. In the past, the emphasis has been on the application of the
low risk process for importers. Now, the application of documented low risk applies to
the entire supply chain; including importers, exporters, customs brokers, transporters,
freight forwarders and warehouse operators. A full circle due diligence process is where
each participant in the cross border transaction is exercising due diligence. The full circle
due diligence process provides the highest achievable level of confidence to customs that
a particular shipment crossing the border is compliant with the law and therefore does not
need inspection. When participants in the supply chain are exercising a due diligence
approach in their business transactions (including checks on the partner participants)
customs, with high confidence, can continue to permit the seamless flow of legitimate
international trade. The partnership of the international trade community and customs
significantly increases the supply chain security of international transactions.
B. Customs Due Diligence and Supply Chain Security in Jordan: the Golden List Program
During the second half of 2004, Jordan Customs (JC) initiated a voluntary, self-
compliance program called the Golden List Program (GLP). The program targeted
Jordan supply chain companies including importers, exporters, transporters and transport
operators, customs clearing agents, warehouse operators, and Qualified Industrial Zone
(QIZ) manufacturers (manufacturers qualified for duty-free exports to the United States).
According to this program, supply chain companies that are exercising customs due
diligence, have supply chain security procedures in place, have a good compliance history
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 7
with JC and compliant with Jordan customs law and regulations might qualify to become
a golden list member. Golden List companies will enjoy preferential treatment by JC in
the form of certain incentives. Examples of these incentives include (i) reduced
frequency of inspections by customs, (ii) pre-arrival clearance of goods, (iii) minimum
levels of financial penalties, (iv) release of goods before completing customs formalities,
(v) lesser financial securities (guarantees), (vi) reduced documentation and paper work
requirements, (vii) clearance of goods during off-work hours, and (viii) expedited
clearance times of customs transactions. Companies that do not qualify to become a
member of the Golden List can work jointly with JC to make certain improvements to
enable them to join .
C. Golden List Program and WCO Framework of Standards to Secure and Facilitate Global Trade
The GLP is a national effort undertaken by JC towards the implementation of the World
Customs Organization (WCO) Framework of Standards to Secure and Facilitate Global
Trade, which came into effect in June 2005. Jordan has already signed the letter of intent
to implement the WCO Framework and, with assistance from the USAID-Funded AMIR
Program of Jordan, has taken wide steps towards implementing the Framework. In
partnership with the private sector of Jordan, JC has implemented the GLP to qualify
Authorized Economic Operators (AEOs) according to the customs-to-business pillar of
the WCO Framework of Standards. Further, JC intends to implement the other pillar,
customs-to-customs pillar, of the WCO Framework of Standards, starting with Jordan's
main trading partner countries. JC will be seeking mutual recognition of its GLP as part
of implementing the customs-to-customs pillar. Within the context of the WCO
Framework of Standards, the GLP can be summarized in the following few points.
1. The program targets Jordan supply chain companies (Authorized Economic
Operators) including importers, exporters, transporters and transport operators,
customs clearing agents, warehouse operators, and Qualified Industrial Zone
(QIZ) manufacturers (manufacturers qualified for duty-free exports to the United
States). According to the GLP, supply chain companies that are exercising
customs due diligence, have supply chain security procedures in place, have a
good compliance history with JC and compliant with Jordan customs and non-
customs laws and regulations may qualify to become a GLP member.
2. The GLP is a customs-business partnership, thus satisfies the customs-to-business
pillar of the WCO Framework of Standards. GLP aims at enhancing customs due
diligence and supply-chain security of Jordanian businesses participating in the
international trade supply chain; while, at the same time, facilitating Jordan's trade
with other countries. The JC developed the program with assistance from the
United States Agency for International Development (USAID) through the
Achievement of Market-Friendly Initiatives and Results Program of Jordan
(AMIR-Program).
3. GLP sets minimum customs due diligence and supply-chain security criteria. A
company must meet these criteria to become a GLP member. An audit team of
customs officers undertakes an extensive audit processes, including customs-
transactions and supply-chain security audits, on the applicant company to verify
its compliance with program criteria.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 8
4. GLP member companies enjoy a preferential treatment by JC in the form of
certain incentives; for example, reduced frequency of cargo inspections, pre-
arrival clearance of shipments, expedited borders clearance times, etc.
5. The supply-chain security side of the GLP has benefited from international
organizations and foreign countries codes or recommendations, including:
a. The International Shippers and Freight Forwarders Security Code—Draft
Rev. 4 by United Nations Center for Trade Facilitation and Electronic
Business (UN/CEFACT).
b. “High Level Guidelines for Co-operative Arrangements between WCO
Members and the Private Sector” to increase supply chain security, as
adopted by the WCO in its general assembly in June 2003.
c. United States C-TPAT guidelines on supply chain security.
d. International Ship and Port Facility Security Code (ISPS Code) by the
International Maritime Organization.
e. BASC (Business Anti-Smuggling Coalition) Standards by the World
BASC Organization.
6. JC intends to implement the customs-to-customs pillar of the WCO Framework of
Standards via seeking mutual recognition of its GLP from other countries (starting
with Jordan's main trading partner countries).
2. Objective
The objective of this project was to facilitate marketing the GLP of JC nationally and
internationally. On the national front, the aim was to make the program known to Jordan
supply chain companies and invite them to join. On the international level, the aim was
to make the program known to other countries, especially Jordan main trading partners,
and seek their recognition of the GLP.
The project team undertook several tasks to accomplish the project objective. They were:
Task 1: Form a Program Coalition
Task 2: Translate all Official GLP Materials into English
Task 3: Identify Jordan Largest Trading Partner Countries
Task 4: Identify a Number of Target Countries for a Customs-to-Customs Mutual
Recognition of the GLP under WCO Framework of Standards
Task 5: Identify Jordan Trade Goods Likely to Benefit from a Customs-to-Customs
Mutual Recognition with Other Countries
Task 6: Prepare Marketing and Technical Materials for the GLP
Task 7: Develop a Multi-year Marketing Strategy for the GLP
Below is a description of the activities performed, and the results attained under each
task.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 9
3. Results
Task 1: Form a Program Coalition
Identification of Coalition Partners
The aim of this task was to identify a number of public- and private-sector organizations
to collaborate and join efforts with JC to accomplish the objective of this project, which
was to facilitate marketing the GLP nationally and internationally. It was realized from
the onset of this project that the success of any future marketing efforts would depend on
key roles that should be played by key public- and private-sector partners or stakeholders
who have a stake in the success of the GLP. Because there are many organizations in
Jordan that may have an interest in the GLP, JC and the grantee, decided to choose the
most relevant three organizations only. However, to make an appropriate selection, a
mission statement for the GLP, as well as its national benefits to Jordan, were formulated
and compared with the mission statement of several candidate organizations.
The GLP mission statement follows:
“The GLP is a voluntary, self-compliance program aimed at enhancing customs due
diligence and supply-chain security within the trading community of Jordan, and, at the
same time, facilitating Jordan's trade with other countries. The program improves the
performance of Jordan enterprises, boosts the trading sector, and enhances the growth of
the economy. The program encourages and assists enterprises to implement the state-of-
the-art and internationally-recognized procedures with respect to customs transactions
and security of trade supply chains. The program complies with the WCO Framework of
Standards to Secure and Facilitate Global Trade, which came into effect in June 2005.
Jordan enterprises joining the GLP will be perceived as "diligent" and "secure"
enterprises, and thus, will be treated favorably by their international counterparts. The
targeted community of the GLP is all enterprises in Jordan that participate in the
international trading activity; including importers, exporters, manufacturers, transporters,
customs brokers and warehouse operators."
The identified national benefits of the GLP are:
� Jordan's Economy. The GLP enhances the competitiveness of the trading sector
of Jordan locally and internationally and consequently improves Jordan's
economy.
� Jordanian Enterprises. The GLP offers Jordanian enterprises a great opportunity
to:
- expand current markets shares and exploit new markets
- increase profits and return on investment
- expedite business transactions and reduce operating costs
- apply the sate-of-the-art best practices
- gain a unique management experience
� Jordan Government. The GLP protects the income of the Treasury via optimal
allocation of JC and other Government organizations' resources.
� Jordan Security. The GLP enhances borders security, protects cargos and people,
and help prevents terrorist acts.
� International Best Practices. The GLP makes Jordan a pioneer country with
respect to compliance with internationally recognized best practices (such as the
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 10
World Customs Organization Framework of Standards to Secure and Facilitate
Global Trade).
� International Aid Agencies. The GLP demonstrates the success of international
aid agencies in Jordan.
� Jordan People. Jordan people will, ultimately, reap the economic as well as other
aforementioned benefits of the GLP.
After review, the mission statements of the following three organizations appear to fit
nicely with the mission and national benefits of the GLP suggesting their selection to
form a program coalition with JC:
� Jordan Enterprise Development Organization (JEDCO)- a governmental
organization.
� Jordan Investment Board (JIB) - a governmental organization.
� Jordan Exporters Association (JEA) - a private sector representative organization.
Jordan Enterprise Development Corporation (JEDCO), Jordan Investment Board (JIB)
and Jordan Exporters Association (JEA) are considered of crucial and strategic
importance to communicating the GLP to Jordanian enterprises as well as key trading
partners in the international community. Each of these organizations’ vision and mission
has an indirect responsibility toward promoting the GLP inside and outside Jordan. In its
mandate, JEDCO has the responsibility of developing the capacity of Jordan enterprises
and making them more competitive in the international markets. Of course, joining the
GLP by Jordan enterprises is a part of fulfilling this responsibility. JIB has the
responsibility of attracting foreign investments to Jordan; however, foreign investors
always demand a secure environment for their assets. The GLP enhances the security of
Jordan enterprises and the country at large; thus makes Jordan a more attractive
environment for foreign investments. JEA aims at assisting Jordan exporters to exploit
new foreign markets, which are now extremely cautious to the security of cargo
shipments and the supply chains carrying them. The GLP enhances the security of Jordan
exporters and the Jordan side of supply chains; thus facilitates entry of Jordan exports into
foreign markets.
In addition to the above organizations (JEDCO, JIB and JAE), international aid agencies
and Jordan embassies abroad were identified to informally assist JC in the marketing
efforts of the GLP.
Memorandum of Understanding
Several meetings were held with JEDCO, JIB and JAE to explain to them the objectives
and the national benefits of the GLP. All three organizations have agreed to join efforts
with JC for marketing the GLP nationally and internationally. The three organizations
and JC signed a Memorandum of Understanding (MOU) that defines the roles each
organization agreed to play. The MOU is contained in Appendix A.
Forming Marketing Organization
Marketing organization is a vital step for the success of implementing any marketing
strategy. Marketing organization design includes consideration of the trade-off between
performing marketing functions within the GLP initiator (JC) and having them performed
by other partner organizations (JEDCO, JIB and JEA). Figure 1 presents a model
organization structure to be followed throughout the implementation of the marketing
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 11
strategy (the marketing strategy was developed in Task seven). In the below discussion,
reference is made to the model organization of Figure one.
JC is the initiator of the GLP and has a major role to play both inside and outside Jordan.
Outside Jordan, JC could make the necessary contacts with foreign-country customs
departments/ services for attaining mutual recognition of the GLP from these
departments/ services. JC has the facility under the Customs-to-Customs Pillar of the
WCO Framework of Standards to Secure and Facilitate Global Trade to seek recognition
for the GLP. Practically, JC should seek recognition from Jordan's current main trading
partners, then follow up with Jordan's potential trading partners. Also, JC, along with the
rest of the partner organizations, could provide support to Jordan Embassies abroad to
enable them to spread awareness about the GLP to other countries. Inside Jordan, JC
could team up with other partner organizations (JEDCO, JIB and JEA) to market the GLP
to the trading community of Jordan.
JEDCO could play the role of a coordinator to the partner organizations efforts. JEDCO
could make a constructive connection between the GLP program initiator (JC) and other
organizations like international aid agencies, JIB, JEA and Jordan embassies abroad.
JEDCO could also play a vital role in marketing the GLP directly to Jordan enterprises.
Jordan embassies abroad are ideal to spread awareness about the GLP to the international
trading community. However, embassies cannot undertake this mission without support
from all other partner organizations.
International aid agencies, JIB and JEA have local and international connections to enable
them market the GLP locally and internationally.
The GLP marketing consultant could provide a supervisory role to the whole process,
advise all partner organizations, update the marketing strategy when deemed necessary,
and design appropriate assessment studies.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 12
Figure 1. Marketing Organization for the GLP.
Customs Departments in Main
Trading Partner Countries &
World Customs Organization
The Trade Community
of Jordan
The International
Trade Community/
World-Wide
Economic Events
Jordan Enterprise
Development
Corporation /
JEDCO
GLP
Marketing
Consultant
Jordan
Customs /
Golden List
Program
International
Aid Agencies
Jordan
Investment
Board / JIB
Jordan
Exporters
Association /
JEA
Jordan
Embassies
Abroad
GLP
Coordinator /
JEDCO
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
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Roles of Coalition Partners
Below is a description of the agreed-upon roles for the different partner organizations.
Jordan Customs (JC)
JC will undertake the following activities:
� Maintain and update all technical materials pertaining to the GLP.
� Communicate the benefits of the GLP to all organizations transacting with JC.
� Undertake a timely audit on any enterprise that requests inclusion on the GLP.
� Provide technical expertise and guidance to enterprises, and assist them
throughout the whole process of becoming a GLP member.
� Supply all required technical materials that other partner organizations request.
� Supply all required technical materials that government and non-government
organizations inside and outside Jordan request; including Jordan embassies
abroad and international aid agencies.
� Make a timely update to the list of GLP members and make the list available on
the JC Internet website.
� Seek mutual recognition for the GLP from other countries, especially the main
trading partners of Jordan.
Jordan Enterprise Development Corporation (JEDCO)
JEDCO will undertake the following activities:
� Act as a coordinator between JC and all other partner organizations.
� Act as a coordinator between all partner organizations and Jordan embassies
abroad.
� Communicate the benefits of the GLP to all enterprises transacting with JEDCO.
� Spread awareness about the GLP during national and international events JEDCO
holds or participates-in.
� Use the GLP as a tool in developing and enhancing the competitiveness of
Jordanian enterprises; especially enterprises intending to exploit new markets.
� Use the GLP status as a marketing advantage for Jordanian enterprises.
� Participate in the implementation of the marketing strategy of the GLP and
according to the decisions all partner organizations will jointly make.
� In coordination with the other partner organization, to seek funding for the
implementation of the marketing strategy from government and non-government
organizations, including international aid organizations and agencies.
Jordan Investment Board (JIB)
JIB could undertake the following activities:
� Communicate the benefits of the GLP to all enterprises transacting with JIB,
including all enterprises benefiting from JIB's tax relief incentives.
� Spread awareness about the GLP in the countries where JIB has presence or
intends to have presence.
� Spread awareness about the GLP during national and international events JIB
holds or participates-in.
� Use the GLP as a tool, among other tools, in marketing Jordan as a "secure
environment" for foreign investments.
� Use the GLP status as a marketing advantage for Jordanian enterprises; especially
those enterprises seeking international alliance with foreign investors and
counterparties.
� Use the GLP as a marketing tool to attract foreign enterprises to operate in Jordan.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 14
� Participate in the implementation of the marketing strategy of the GLP and
according to the decisions all partner organizations will jointly make.
� In coordination with the other partner organizations, to seek funding for the
implementation of the marketing strategy from government and non-government
organizations, including international aid organizations and agencies.
Jordan Exporters Association (JEA)
JEA could undertake the following activities:
� Communicate the benefits of the GLP to all enterprises transacting with JEA,
including all exporters currently listed on JEA's database.
� Spread awareness about the GLP in the foreign countries JEA visits from time to
time to promote Jordan exports.
� Spread awareness about the GLP during the trade shows, conferences, etc., JEA
holds or participates-in inside and outside Jordan.
� Use the GLP as a tool in marketing Jordan exporters as "secure exporters."
� Use the GLP status as a marketing advantage for Jordanian exporters to exploit
new markets.
� Participate in the implementation of the marketing strategy of the GLP and
according to the decisions all partner organizations will jointly make.
� In coordination with the other partner organizations, to seek funding for the
implementation of the marketing strategy from government and non-government
organizations, including international aid organizations and agencies.
International Aid Agencies
International aid agencies such as the United States Agency for International
Development (USAID) are friends of Jordan, and could play a significant part in
promoting the GLP to organizations inside and outside Jordan. These agencies are
important communications channels because they have built an international credibility
and are well known in many countries. For example, the USAID can promote the GLP
through the many programs the agency funds and implements in Jordan. A second
example is that USAID could spread awareness about the GLP to the US enterprises
through the funding of Jordan business-to-business alliances. A third example is that
USAID could facilitate for the recognition of the GLP by the US and other countries
where USAID has large aid programs. The same thing applies to all other international
aid agencies that have a significant presence in Jordan.
Jordan Embassies Abroad
Jordan embassies abroad have a very important role to play in promoting the GLP on the
international level. Through Jordan embassies, awareness about the GLP can spread to
almost all countries around the globe if Jordan embassies are well equipped to undertake
this function. However, embassies efforts should start with Jordan's current main trading
partners and potential future main partners. Embassies can undertake the following
activities:
� Participating in the economic forums and conferences that take place in the
countries where Jordan embassies operate.
� Participating in international economic events that take place in different parts of
the world.
� Distributing the GLP brochures and printed material.
� Launching promotional campaigns through their websites.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 15
� Communicating with the governmental and non-governmental economic bodies in
the countries where Jordan embassies operate.
� Participating in trade exhibitions in the countries where Jordan embassies operate.
Task 2: Translate all Official GLP Materials into English
The official language in Jordan is Arabic. Even though many documents pertaining to the
GLP were originally prepared in English (the working language of the technical experts
provided by the USAID-funded AMIR Program), they had to be translated into Arabic so
that the relevant personnel in JC could study and comment on them. The JC made several
refinements to the Arabic versions. The grantee translated these cnages back to the
original (English) versions. In addition, some documents were originally prepared in
Arabic, and English translation was required. The aim of this task was to make all the
technical materials pertaining to the GLP available in both Arabic and English. This step
was important, especially when JC starts seeking mutual recognition for the GLP from
other countries under the customs-to-customs pillar of the WCO Framework of Standards
to Secure and Facilitate Global Trade. It was recognized that communicating the GLP to
Arab countries should be in Arabic while to other countries should be in English.
Because of the efforts made in this task, the following documents pertaining to the GLP
are now available from JC in Arabic and English:
• Customs Due Diligence & Supply Chain Security Checklist-- Clearing Agent
• Customs Due Diligence & Supply Chain Security Checklist-- Export
• Customs Due Diligence & Supply Chain Security Checklist-- Import
• Customs Due Diligence & Supply Chain Security Checklist-- QIZ
• Customs Due Diligence & Supply Chain Security Checklist-- Transport Operator
• Customs Due Diligence & Supply Chain Security Checklist-- Warehouse
Operator
It should be noted that the above six checklists are the result of the joint effort undertaken
by JC and a number of experts provided by the USAID-funded AMIR Program and
representatives from the private sector. Each checklist pertains to one business activity
area: importer, exporter, transport operator, customs broker, warehouse operator, and
Qualified Industrial Zone manufacturer. The Risk Management Directorate of JC
officially approved the checklists and they are a major part of the GLP criteria. A
company that is interested to become a Golden List member must develop and implement
"customs due diligence and supply chain security" procedures that satisfy the stipulations
of the relevant checklist. Thus, the checklists serve as a benchmark to judge the quality
of a company's written procedures and capacity for self-regulation. Each checklist is a
series of a Yes/No type questions. Each question asks if the company has in-place a
documented procedure to carry out the duties of a certain activity (for example, if the
company has a documented procedure for carrying out background checks on new
employees).
In addition to the aforementioned six checklists, the following three documents are now
available from JC in Arabic and English as well:
• GLP- A Guide for International Trade Supply Chain Companies
• GLP- Criteria for Inclusion of Companies on the Golden List Program
• GLP- Application Form
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AMIR Program 16
The first is a guiding document containing background material on the benefits of joining
the program and explanations of the several technical modalities of the program. The
second document contains the official criteria approved by JC, which must be satisfied
before a company could join the program. The third document is a several-page
questionnaire that the company wishing to join the GLP must answer and submit to JC.
Task 3: Identify Jordan Largest Trading Partner Countries
Under the customs-to-customs pillar of the WCO Framework of Standards to Secure and
Facilitate Global Trade JC has the opportunity to seek mutual recognition of its GLP from
other countries. Since this process needs extensive communications with foreign country
customs services/ departments, JC decided to start with Jordan's largest trading-partner
countries. This task aimed at identifying the countries that have the largest trading
volumes (in monetary values) with Jordan.
Trade value figures in Jordanian Dinars between Jordan and other countries during the
years 2003-2004 were compiled from the Jordan Department of Statistics; a governmental
organization responsible for keeping and updating Jordan's national statistics figures,
including trade. The database of the JC validated these figures. Table one shows the
largest countries/ markets, in monetary values, to which Jordan exports; while Table two
shows the largest countries/ markets from which Jordan imports. The tables are self-
explanatory. The United States, Iraq, India, Saudi Arabia and Syria are the largest
markets for Jordan's exports. Saudi Arabia, China, Germany, United States, and Italy are
the largest markets from which Jordan imports. Both tables reveal that Jordan has sizable
trade transactions with several Arab or Middle-Eastern counties including Saudi Arabia,
Iraq, Syria, United Arab Emirates, Algeria, Lebanon, Kuwait, Sudan, Yemen, Libya,
Qatar, Bahrain, Oman, Turkey, Iran and Israel. Also, Jordan has sizable trade volumes
with a number of European countries including Switzerland, Spain, Netherlands, Italy,
Germany, France, United Kingdom, Ukraine, Romania, Belgium and Sweden. Most
notably, the United States is the largest and most promising market for Jordan's exports.
The countries listed in Tables one and two were compared with the WCO list of
"Members who have expressed their intention to implement the WCO Framework of
Standards to Secure and Facilitate Global Trade: situation as of October 30, 2005". With
the exception of few countries (Syria, Thailand, Algeria, Lebanon, Iraq, Palestinian
National Authority, Libya, Pakistan, Oman and Taiwan), all countries listed in Tables one
and two have expressed their intention to implement the WCO Framework of Standards.
This implies that almost all Jordan's larger trading-partner countries are well informed of
the WCO Framework of Standards, and further they have the intention to implement
programs similar to the GLP.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
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Table 1. Jordan 30 Largest Export Markets During 2003-2004.
Jordan Exports During Year
(JD Millions)
Country
No.
Exports to
(Destination)
2003
2004
1 U.S.A. 468.6 722.2
2 IRAQ 224.0 361.9
3 INDIA 141.0 178.4
4 SAUDI ARABIA 109.4 138.3
5 SYRIA 64.0 94.6
6 U.A. EMIRATES 65.7 77.1
7 ISRAEL 68.5 73.4
8 ETHIOPIA 4.5 51.3
9 ALGERIA 40.6 49.0
10 LEBANON 32.6 41.0
11 KUWAIT 26.6 36.8
12 IRAN 18.9 36.1
13 INDONESIA 19.2 24.5
14 CHINA 25.5 24.3
15 SUDAN 19.0 23.4
16 PALESTINIAN N.A. 16.9 21.0 17 EGYPT 17.1 20.2 18 SWITZERLAND 0.6 19.3 19 YEMEN 15.2 18.3 20 LIBYA 12.6 17.6 21 MALAYSIA 13.6 16.4 22 QATAR 17.5 15.9 23 PAKISTAN 16.1 14.6 24 SPAIN 8.2 12.6 25 BAHRAIN 12.5 12.6 26 JAPAN 9.6 12.2 27 TURKEY 9.3 10.9 28 OMAN 11.2 10.8 29 NETHERLANDS 11.3 10.6 30 ITALY 7.3 9.7
Source: Jordan Department of Statistics and Jordan Customs
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Table 2. Jordan 30 Largest Import Markets During 2003-2004.
Jordan Imports During Year
(JD Million)
Country
No.
Imports from
(Source)
2003
2004
1 SAUDI ARABIA 459.4 1,146.6 2 CHINA 322.4 489.3 3 GERMANY 320.2 394.9 4 U.S.A. 276.2 393.9 5 ITALY 153.2 222.2 6 EGYPT 83.6 214.5 7 JAPAN 141.5 189.9 8 SOUTH KOREA 102.0 182.2 9 UKRAINE 66.6 174.5
10 FRANCE 128.4 159.9 11 U.K. 140.3 150.9 12 SYRIA 108.7 147.4 13 TURKEY 98.7 133.8 14 INDONESIA 61.1 123.7 15 ISRAEL 94.9 116.8 16 TAIWAN 97.6 114.4 17 INDIA 60.3 103.2 18 U.A. EMIRATES 102.1 103.1 19 SWITZERLAND 53.2 80.2 20 NETHERLANDS 59.3 74.2 21 MALAYSIA 48.9 68.2 22 SPAIN 45.7 68.1 23 ARGENTINA 89.6 57.3 24 THAILAND 39.9 54.8 25 FINLAND 23.8 54.0 26 AUSTRALIA 50.2 53.1 27 ROMANIA 22.6 50.6 28 BRAZIL 21.2 46.7 29 BELGIUM 41.3 46.0 30 SWEDEN 36.7 45.7
Source: Jordan Department of Statistics and Jordan Customs
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
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Task 4: Identify a Number of Target Countries for a Customs-to-Customs Mutual
Recognition of the GLP under WCO Framework of Standards
JC and the grantee decided to identify 20-30 countries for JC to approach for seeking
customs-to-customs mutual recognitions for the GLP. This task aimed at formally
identifying 20-30 target countries for customs-to-customs mutual recognitions of the GLP
and assisting JC in contacting the identified countries and presenting the GLP to them.
Identifying Target Countries
A committee of senior customs officers was formed by his Excellency the Director
General of JC and entrusted with the task of identifying 20-30 target countries JC would
contact for customs-to-customs mutual recognitions of the GLP under the WCO
Framework of Standards to secure and Facilitate Global Trade. The consultant has served
in an advisory capacity to the committee.
The committee has decided to use the following criteria for selecting target countries:
1. Priority to countries with which Jordan has sizable trade volumes (i.e., from the
list of countries in Tables 1 and 2 above).
2. Priority to countries, which Jordan exports to as compared to countries from
which Jordan imports.
3. Priority to countries that expressed to the WCO their intent to implement the
WCO Framework of Standards to Secure and Facilitate Global Trade.
4. Priority to countries that have already implemented a customs due diligence and/
or supply chain security program similar to the GLP.
5. Priority to countries that have bilateral or multi-lateral trade agreements with
Jordan.
6. Finally consideration to the extent of existing cooperation between JC and the
customs services/ departments in the candidate countries.
Using the lists of countries in Tables 1 and 2 above and the six criteria, the committee
identified 29 target countries for JC to contact. The primary target was the United States
because it is the largest market for Jordan's exports, has a similar program to the GLP (C-
TPAT) and has a bi-lateral free trade agreement with Jordan. In addition, the committee
viewed the extent of cooperation between JC and the US Customs and Border Protection
as “superior.”
The team identified Canada as a target country primarily because it has a similar program
to the GLP (called Partners in Protection). In addition, because of the closeness to the
United States and the free-flow trade between Canada and the United States, potential
does exist for Jordan exports to increase to Canada as they did to the United States.
The team selected United Kingdom, Germany, France, Italy, Spain, Ukraine, Bulgaria,
Poland, Belgium, and Switzerland were identified as targets because of the sizable trade
volumes they have with Jordan and because of the Jordan-EU Free Trade Agreement.
The committee anticipates that Jordan's trade volumes with these countries will escalate
in the coming few years when traders fully utilize the Jordan-EU Free Trade Agreement.
The team identified China, Japan, India, Indonesia, and Pakistan primarily because of the
large trade volumes they have with Jordan.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
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Arab and Middle-Eastern countries (Yemen, Libya, Egypt, United Arab Emirates,
Lebanon, Algeria, Kuwait, Sudan, Saudi Arabia, Oman, Turkey, and Iran) were identified
because of the large trade volumes they have with Jordan and the extent of cooperation
between JC and the customs services/ departments in these countries.
Contacting Identified Countries
After identifying the target countries, an initial mutual recognition request letter was
prepared and sent to each one of them. His Excellency, the Director General of JC signed
the letter addressed to the Director of Customs Service/ Department in each of the
identified countries (29 countries). The letter included two attachments; a summary sheet
of the GLP and a survey sheet asking few questions to be answered by a target country.
The letter (contained in Appendix B) reference is "Implementation of Customs-to-
Customs Pillar of the World Customs Organization Framework of Standards to Secure
and Facilitate Global Trade." The letter declared that JC, with assistance from the
USAID-Funded AMIR Program of Jordan, has taken wide steps towards implementing
the customs-to-business pillar of the WCO Framework of Standards to Secure and
Facilitate Global Trade via the GLP. In addition, the letter declared that JC intends to
implement the other pillar, customs-to-customs pillar of the WCO Framework of
Standards, starting with Jordan's main trading partner countries.
The GLP summary sheet (see Appendix B) attached with the letter was a brief description
of the GLP and the relationship to the WCO Framework of Standards to Secure and
Facilitate Global Trade. The summary sheet directed the reader to JC website to obtain
more detailed information about the GLP.
The survey sheet (see Appendix B) attached with the letter included important inquiries
about:
• If the contacted Customs Service/Department currently implements a formal
program to qualify Authorized Economic Operators (AEOs) according to the
customs-to-business pillar of the WCO Framework of Standards.
• If the contacted Customs Service/Department is willing to start a customs-to-
customs dialogue with JC for mutually recognizing each-other-country program.
(Applicable if the contacted country has a program in place).
• If the contacted Customs Service/Department intends or plans to implement a
program similar to the GLP in the near future. (Applicable if the contacted
country does not yet have a program in place).
• If the contacted Customs Service/Department is willing to work with JC to
jointly, implement the customs-to-customs pillar of the WCO Framework of
Standards.
• The Customs Service's/Department's status with respect to the implementation of
the WCO Framework of Standards.
Task 5: Identify Jordan Trade Goods Likely to Benefit from a Customs-to-Customs
Mutual Recognition with Other Countries
The aim of this task was to identify the top 30% (minimum) of Jordan trade goods by
tariff classification that would benefit from the customs-to-customs mutual recognition
processes under the WCO Framework of Standards. The objective of identifying the
commodities, as tied to the target countries, intends to identify the commodities that
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 21
would be most likely to benefit from a mutual recognition between the two countries'
customs administrations (Jordan and any other country). This information will be
advantageous to identify those industries in both countries that should place a high
emphasis on entering the GLP and the trade partner country's program.
IRC compiled the trade value figures in Jordanian Dinars (along with commodities
descriptions and harmonized tariff classification codes) between Jordan and other
countries during the year 2004 from the Jordan Department of Statistics; a governmental
organization responsible for keeping and updating Jordan's national statistics figures,
including trade. The analysis later validated the figures using the database of JC. Tables
1-20 in Appendix C show commodities descriptions and harmonized tariff classification
codes of goods Jordan exported to its largest 20 export countries/ markets; while Tables
21-40 in the same Appendix show commodities descriptions and harmonized tariff
classification codes of goods Jordan imported from its largest 20 import countries/
markets. The tables are self-explanatory.
Based on Tables 1-20 of Appendix C, Jordan main exported commodities are:
• Apparels, clothing, precious stones and metals.
• Furniture, bedding, mattresses, cushions.
• Pharmaceutical products.
• Animal or vegetable fats and oils.
• Tobacco products.
• Plastics and articles thereof.
• Salt, sulphur, plastering materials, cement.
• Paper and paperboard, paper pulp.
• Fertilizers.
• Boilers, machinery and mechanical appliances.
• Organic and inorganic chemicals.
• Electrical machinery and equipments and parts thereof.
• Aluminum, iron and steel.
• Edible vegetables and fruits and certain roots and tubers.
• Dyeing and coloring materials and paints.
Based on Tables 21-40 of Appendix C, Jordan main imported commodities are:
• Mineral fuels, mineral oils, bituminous substances, waxes.
• Plastics and articles thereof.
• Sugars and sugar confectionary.
• Knitted or crocheted fabrics.
• Electric machinery and equipment.
• Articles of apparel and clothing (not knitted).
• Vehicles and their parts.
• Pharmaceutical products.
• Cereals.
• Optical, photographic, measuring and medical equipment and instruments.
• Iron and steel.
• Boilers, machinery and mechanical appliances.
• Animal or vegetable fats and oils.
• Cotton.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 22
Thus, Jordan industries dealing with the above listed commodities should place a high
emphasis on entering the GLP.
Task 6: Prepare Marketing Materials for the GLP
The aim of this task was to prepare marketing materials for the GLP. The intended
materials aim at spreading awareness about the GLP, and assisting companies interested
to join in how to proceed and what they need to do. Three documents were prepared in
this task. They are:
1. "How to Join the Golden List Program" is a step-by-step guide explaining all
processes to be undertaken by a supply-chain company to join the GLP. The
guide is contained in Appendix D.
2. "How to Implement Customs Due Diligence and Supply Chain Security in Your
Company" is a guide to all supply-chain companies on how to implement customs
due diligence and supply-chain security which are a major part of JC's criteria for
accepting a company on the GLP. The guide is contained in Appendix E.
3. "Golden List Program of Jordan Customs: Questions and Answers" is a brochure
explaining in generic terms what is the GLP is about, program benefits, types of
companies accepted on the program, etc. The brochure is contained in Appendix
F.
Below is a brief description of each document (full documents are contained in
Appendixes D, E and F).
"How to Join the Golden List Program" Guide
This guide is intended to lead companies throughout the whole process of joining the
GLP; from understanding what is the GLP is about, what is required from a company so
that it is accepted on the program, what is the procedure to follow in joining the program,
until ultimately become a GLP member. The guide contains seven main sections and two
Appendixes.
The first section explains the aim of the GLP, the benefits the companies gain joining the
program and the types of supply-chain companies targeted by the program.
The second section explains the requirements (criteria) imposed on companies, which
must be satisfied as a priory for acceptance on the GLP.
The third section is a step-by-step procedure for a company to follow in applying to join
the program until completing all requirements, and ultimately become a GLP member.
The section explains the steps JC undertakes before, during, and after the actual audit
process of a company by a designated team of customs auditors (audit team).
The forth section is devoted to “Voluntary Disclosure” which encourages companies to
undertake an internal audit of all its customs transactions before the actual audit by JC
takes place. Based on the results of its own audit, a company has the opportunity to
disclose voluntarily any errors, omissions, or violations to JC. The JC treats voluntary
disclosure favorably to the best of their ability under the current law. The Jordan
Customs has drafted new legislation to permit fully voluntary disclosure. This practice is
an invaluable mechanism for companies to avoid penalties.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 23
After auditing a company by JC, the audit results may reveal the need for the company to
develop and implement a Compliance Improvement Plan. Section five contains
information for companies on how to develop an acceptable Compliance Improvement
Plan.
The audit processes of a company by JC require sampling of customs transactions
previously completed by the company. Section six explains the principles of sampling
and the criteria used by JC in selecting the appropriate sample.
Section seven provides companies with information about the Analytical Study on a
company which JC undertakes before actual audit processes take place.
Appendix I contains the Application Form for the GLP, while Appendix II contains the
"GLP Criteria for Inclusion of Companies on the Golden List."
"How to Implement Customs Due Diligence and Supply Chain Security in Your
Company" Guide
According to the GLP requirements, supply-chain companies that are exercising customs
due diligence, have supply chain security procedures in place, have a good compliance
history with JC and compliant with Jordan customs law and regulations may qualify to
become a Golden List member.
As part of the criteria for accepting a company on the GLP, the company must have well-
documented “customs due diligence and supply chain security” procedures, and these
procedures have been already implemented and strictly followed by the company. This
guide assists all types of supply-chain companies (importers, exporters, customs clearing
agents, QIZ companies, transporters and transport operators, and warehouse owners and
operators) in developing and implementing their own "customs due diligence and supply
chain security" procedures.
The guide contains three main sections; the first section is a brief background on the
GLP, the second section describes how a company could implement its own customs due
diligence procedures, and the third section describes how a company could implement its
own supply-chain security procedures.
"Golden List Program of Jordan Customs: Questions and Answers" Brochure
This brochure intends to spread awareness about the GLP using a question-and-answer
format. The brochure answers the following 12 questions:
1. What is the Golden List Program (GLP)?
2. What is the Mission of the Golden List Program?
3. What are Objectives of the Golden List Program?
4. What Types of Organizations Can Apply to Join the GLP?
5. Why Organizations Need to Join the Golden List Program?
6. What Distinguishes the GLP from the Current Customs Practices?
7. Are there Opportunities due to joining the Golden List Program?
8. What are the Benefits to Your Organization from Joining the GLP?
9. Who is Involved in Implementing the GLP?
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AMIR Program 24
10. How Can an Organization Join the GLP?
11. Will the Required Information our Organization Provides to JC in the Process of
Joining the GLP be Kept Confidential?
12. Where Can my Organization Obtain More Information on the GLP?
Task 7: Develop a Multi-year Marketing Strategy for the GLP
The GLP is a national program of Jordan and expected to influence the trade sector, and
thus, the whole economy. However, it may take few years for the program to gain the
international recognition it deserves. Of course, this recognition will not come true
without a national effort encompassing both the private sector and the government. More
importantly, a marketing strategy needs to be in place so that each party, whether a
governmental or a private sector actor, understands its role and responsibility. This task
aims at developing an appropriate marketing strategy for the GLP. The marketing
strategy (contained in Appendix G) included three phases as described below.
Phase I: Situational Analysis
The first phase discusses the following elements:
• Market Demographics
• Market Needs
• Market Trends and Growth
• SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats of the GLP)
• Critical Issues Keys to Success
Phase II: Marketing Strategy Formulation
The second phase discusses the following elements:
• Mission Statement
• Market Segments (Targeted Enterprises)
• Goals, Sub-goals and Objectives
• Marketing Strategy Components including Service Strategy (GLP benefits and
branding strategy), Communications Strategy (communications tools) and
Budgeting Strategy.
Phase III: Marketing Strategy Implementation
The third phase discusses the following elements:
• Marketing Organization
• Partner Organizations Roles (roles of JC, JEDCO, JIB, JEA, International Aid
Agencies and Jordan Embassies Abroad)
• First Year Marketing Plan
• Control and Performance Assessment including
• GLP Scenarios
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
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APPENDIX A
(English Translation)
MEMORANDUM OF UNDERSTANDING BETWEEN JORDAN
CUSTOMS, JORDAN ENTERPRISE DEVELOPMENT
CORPORATION, JORDAN INVESTMENT BOARD AND JORDAN
EXPORTERS ASSOCIATION
PARTIES
The parties to this Memorandum of Understanding (MoU) are Jordan Customs ("JC"),
Jordan Enterprise Development Corporation ("JEDCO"), Jordan Investment Board
("JIB") and Jordan Exporters Association ("JEA").
PURPOSE
The purpose of this MoU is to accomplish the national benefits of securing and
facilitating Jordan's trade with other countries through marketing the Golden List
Program ("GLP") of Jordan Customs nationally and internationally.
RESPONSIBILITIES
All Parties
A. All parties to this MoU agree that the GLP of JC offers a great opportunity for the
economy and people of Jordan through accomplishing the following strategic
benefits:
1. Jordan's Economy. The GLP enhances the competitiveness of the trading sector
of Jordan locally and internationally and consequently improves Jordan's
economy.
2. Jordanian Enterprises. The GLP offers Jordanian enterprises a great opportunity
to:
• expand current markets shares and exploit new markets
• increase profits and return on investment
• expedite business transactions and reduce operating costs
• apply the sate-of-the-art best practices
• gain a unique management experience
3. Jordan Government. The GLP protects the income of the Treasury via optimal
allocation of JC and other Government Organizations' resources.
4. Jordan Security. The GLP enhances borders security, protects cargos and people,
and prevents terrorist acts.
5. International Best Practices. The GLP makes Jordan a pioneer country with
respect to compliance with internationally recognized best practices (such as the
World Customs Organization Framework of Standards to Secure and Facilitate
Global Trade).
6. International Aid Agencies. The GLP demonstrates the success of international
aid agencies in Jordan.
7. Jordan People. Jordan people ultimately will reap the economic as well as other
aforementioned benefits of the GLP.
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B. All parties to this MoU agree to form a joint committee in which a senior officer
represents each party to this MoU. The committee will plan and undertake all
necessary steps to:
1. Market the GLP nationally with the ultimate goal of increasing the membership of
the GLP.
2. Market the GLP internationally with the ultimate goal of securing and facilitating
Jordan's trade with other countries.
3. Implement the marketing strategy of the GLP and update the strategy from time to
time as deemed necessary.
Jordan Customs (JC)
JC agrees:
A. To maintain and update all technical materials pertaining to the GLP.
B. To communicate the benefits of the GLP to all organizations transacting with JC.
C. To undertake, within a suitable time frame, audit on any company that requests
inclusion on the GLP.
D. To provide technical advice and guidance to companies, and assist them
throughout the whole process of becoming a GLP member.
E. To supply all required technical materials that may be requested by the other
parties to this MoU.
F. To supply all required technical materials that may be requested by government
and non-government organizations inside and outside Jordan.
G. To make a timely update to the list of GLP members and make the list available
on its website.
H. To seek mutual recognition for the GLP from other countries, especially the main
trading partners of Jordan.
Jordan Enterprise Development Corporation (JEDCO)
JEDCO agrees:
A. To act as a coordinator between JC and all other parties to this MoU.
B. To act as a coordinator between all parties to this MoU and Jordan Embassies
abroad.
C. To communicate the benefits of the GLP to all enterprises transacting with
JEDCO.
D. To spread awareness about the GLP during national and international events
JEDCO holds or participates-in with JC attending such events.
E. To use the GLP as a tool in developing and enhancing the competitiveness of
Jordanian enterprises; especially enterprises intending to exploit new markets.
F. To use the GLP status as a marketing advantage for Jordanian enterprises.
G. To participate in the implementation of the marketing strategy of the GLP and
according to the decisions to be made by the joint committee with the other parties
to this MoU.
H. In coordination with the other parties to this MoU, to seek funding for the
implementation of the marketing strategy from government and non-government
organizations, including international donor organizations and agencies.
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Jordan Investment Board (JIB)
JIB agrees:
A. To communicate the benefits of the GLP to all enterprises transacting with JIB,
including all enterprises benefiting from JIB's tax relief incentives.
B. To spread awareness about the GLP in the countries where JIB has presence or
intends to have presence.
C. To spread awareness about the GLP during national and international events JIB
holds or participates-in with JC attending such events.
D. To use the GLP as a tool, among other tools, in marketing Jordan as a "secure
environment" for foreign investments.
E. To use the GLP status as a marketing advantage for Jordanian enterprises;
especially those enterprises seeking international alliance with foreign investors
and counterparties.
F. To use the GLP as a marketing tool to attract foreign enterprises to operate in
Jordan.
G. To participate in the implementation of the marketing strategy of the GLP and
according to the decisions to be made by the joint committee with the other parties
to this MoU.
H. In coordination with the other parties to this MoU, to seek funding for the
implementation of the marketing strategy from government and non-government
organizations, including international donor organizations and agencies.
Jordan Exporters Association (JEA)
JEA agrees:
A. To communicate the benefits of the GLP to all enterprises transacting with JEA,
including all exporters currently listed on JEA's database.
B. To spread awareness about the GLP in the foreign countries JEA visits from time
to time to promote Jordan exports.
C. To spread awareness about the GLP during the trade shows, conferences, etc.,
JEA holds or participates-in inside and outside Jordan.
D. To use the GLP as a tool in marketing Jordan exporters as "secure exporters".
E. To use the GLP status as a marketing advantage for Jordanian exporters to exploit
new markets.
F. To participate in the implementation of the marketing strategy of the GLP and
according to the decisions to be made by the joint committee with the other parties
to this MoU.
G. In coordination with the other parties to this MoU, to seek funding for the
implementation of the marketing strategy from government and non-government
organizations, including international donor organizations and agencies.
DATE EFFECTIVE
The terms of this MoU will become effective upon signature of the parties. They will
remain in effect until either modified or terminated as described in this MoU.
MODIFICATION
This MoU may be modified upon the mutual written consent of the parties.
TERMINATION
Each party to this MoU may revoke this MoU upon 30 days written notice.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
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LANGUAGE
If this MoU is signed in any language other than Arabic, then any misinterpretation of any
of its terms shall be resolved by reference to the Arabic version.
SEVERABILITY
Nothing in this MoU is intended to conflict with the current laws, regulations, or
directives of the Hashemite Kingdom of Jordan. If a term of this MoU is inconsistent
with such authority, then that term shall be invalid, but the remaining terms and
conditions of this MoU shall remain in full force and effect.
CONTACT INFORMATION
Contact for Jordan Customs:
Director General
Customs Department
P.O. Box 90
Amman, Jordan
Tel: 4623186/ 88
Fax: 4647791
Contact for Jordan Enterprise Development Corporation:
Chief Executive Officer
Jordan Enterprise Development Corporation
P.O. Box 7704
Amman 11118 Jordan
Tel: 5603507
Fax: 5684568
Contact for Jordan Investment Board:
Chief Executive Officer
Jordan Investment Board
P.O. Box 893
Amman 11821 Jordan
Tel: 5608400/ 15
Fax: 5608416
Contact for Jordan Exporters Association:
Managing Director
Jordan Exporters Association
P.O. Box 830432
Amman 11183 Jordan
Tel: 5685603/ 04
Fax: 5685605
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The undersigned approve the terms and conditions of this MoU.
Signature _________________________ Date: __________________
Alaa A. Al-Batayneh, Director General
Jordan Customs
Signature _________________________ Date: __________________
Wael Al-Akayleh, Chief Executive Officer
Jordan Enterprise Development Corporation
Signature _________________________ Date: __________________
Maen Nsour, Chief Executive Officer
Jordan Investment Board
Signature _________________________ Date: __________________
Halim Abu Rahmeh, Managing Director
Jordan Exporters Association
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APPENDIX B
Mutual Recognition Request Letter (Letter Sent by JC to
Customs Services/ Departments of 29 Foreign Countries)
Date ………..
His Excellency Mr. …………., Director General
Name of Customs Service/ Department
Address of Customs Service/ Department
Re: Implementation of Customs-to-Customs Pillar of the World Customs Organization
Framework of Standards to Secure and Facilitate Global Trade
Dear you're Excellency,
We are pleased to inform you that Jordan Customs (JC), with assistance from the USAID-
Funded AMIR Program of Jordan, has taken wide steps towards implementing the WCO
Framework of Standards to Secure and Facilitate Global Trade, which came into effect in
June, 2005. Most notably, JC in partnership with the private sector of Jordan has
implemented a program, called the Golden List Program (GLP), to qualify Authorized
Economic Operators (AEOs) according to the customs-to-business pillar of the WCO
Framework of Standards. A summary sheet of the main features of the GLP is attached,
and more technical information about the program can be obtained from our website
(www.customs.gov.jo).
In the mean time, JC intends to implement the other pillar, customs-to-customs pillar, of
the WCO Framework of Standards, starting with Jordan's main trading partner countries.
JC will be seeking mutual recognition of its GLP as part of implementing the customs-to-
customs pillar. To assist us in planning our implementation efforts with respect to the
customs-to-customs pillar of the WCO Framework of Standards, your Customs Service/
Department answers to the attached survey would be highly appreciated.
Best Regards,
Eng. Ala'a Batayneh
Director General
Jordan Customs
Attachments:
- Summary Sheet
- Survey
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Letter Attachment 1: Summary Sheet
Golden List Program of Jordan Customs
A Customs Due Diligence and Supply Chain Security Program
During the second half of 2004, Jordan Customs (JC) has initiated a voluntary, self-
compliance program called the Golden List Program (GLP). The program targets Jordan
supply chain companies including importers, exporters, transporters and transport
operators, customs clearing agents, warehouse operators, and Qualified Industrial Zone
(QIZ) manufacturers (manufacturers qualified for duty-free exports to the United States).
According to this program, supply chain companies that are exercising customs due
diligence, have supply chain security procedures in place, have a good compliance history
with JC and compliant with Jordan customs and non-customs laws and regulations may
qualify to become a GLP member. In summary, the GLP has the following
characteristics:
1. The GLP is a customs-business partnership aims at enhancing customs due
diligence and supply-chain security of Jordanian businesses participating in the
international trade supply chain; while, at the same time, facilitating Jordan's trade
with other countries. The program was developed by JC with assistance from the
United States Agency for International Development (USAID) through the
Achievement of Market-Friendly Initiatives and Results Program of Jordan
(AMIR-Program).
2. The program sets minimum customs due diligence and supply-chain security
criteria that must be met by a company desiring to become a GLP member. An
audit team of customs officers undertakes extensive audit processes, including
customs-transactions and supply-chain security audits, on the applicant company
to verify its compliance with the program criteria.
3. GLP member companies enjoy a preferential treatment by JC in the form of
certain incentives; for example, reduced frequency of cargo inspections, pre-
arrival clearance of shipments, expedited borders clearance times, etc.
4. The security side of the GLP has benefited from international organizations and
foreign countries codes or recommendations, including:
- The International Shippers and Freight Forwarders Security Code—Draft Rev.
4 by United Nations Center for Trade Facilitation and Electronic Business
(UN/CEFACT).
- “High Level Guidelines for Co-operative Arrangements between WCO
Members and the Private Sector” to increase supply chain security, as adopted
by the WCO in its general assembly in June 2003.
- United States C-TPAT guidelines on supply chain security.
- International Ship and Port Facility Security Code (ISPS Code) by the
International Maritime Organization.
- BASC (Business Anti-Smuggling Coalition) Standards by the World BASC
Organization.
5. The GLP is a major part of JC efforts toward implementing the World Customs
Organization (WCO) Framework of Standards to Secure and Facilitate Global
Trade which came into effect in June, 2005. Jordan has already signed the letter
of intent to implement the WCO Framework.
6. JC intends to seek customs-to-customs mutual recognition of its GLP with Jordan
trade partner countries.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
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Letter Attachment 2: Survey
Jordan Customs (JC) intends to implement the customs-to-customs pillar of World
Customs Organization (WCO) Framework of Standards to Secure and Facilitate Global
Trade, which came into effect in June 2005. JC, in partnership with the private sector of
Jordan, has developed and implemented a program, called the Golden List Program
(GLP), to qualify Authorized Economic Operators (AEOs) according to the customs-to-
business pillar of the WCO Framework of Standards. The GLP is a major part of JC
efforts toward implementing the WCO Framework of Standards; thus, JC intends to seek
a mutual recognition of this program with Jordan trade partner countries. To assist us in
planning our implementation efforts with respect to the customs-to-customs pillar of the
WCO Framework of Standards, your Customs Service/ Department answers to the
following questions would be highly appreciated.
1. Does your Customs Service/ Department currently implement a formal program to
qualify Authorized Economic Operators (AEOs) according to the customs-to-
business pillar of the WCO Framework of Standards to Secure and Facilitate
Global Trade? (If "yes", please tell us about your program, send us relevant
information or direct us to where we can reach relevant information).
2. If your answer to the first question is "yes", are you willing to start a customs-to-
customs dialogue for the purpose of mutually recognizing each-other-country
program (i.e., your Customs Service/ Department to recognize the Golden List
Program of Jordan, and Jordan Customs to recognize your program)?
3. If your answer to the first questions is "no", does your Customs Service/
Department intend or plan to implement such a program in the near future?
(Please provide details about your future plans and expected dates for
implementation).
4. As soon as your Customs Service/ Department starts implementing the WCO
Framework of Standards to Secure and Facilitate Global Trade, are you willing to
work with Jordan Customs to jointly implement the customs-to-customs pillar of
the WCO Framework?
5. What is your Customs Service's/ Department's current status with respect to the
implementation of the WCO Framework of Standards to Secure and Facilitate
Global Trade in general? (Please tell us about any steps you have taken or intend
to take with respect to the WCO Framework, any communications or bi-lateral
agreements made with other Customs Services/ Departments, etc.).
6. What do you think of Jordan Custom’s Golden List Program? Your feedback is
important to us. (Golden List Program details can be reached via our website
www.customs.gov.jo).
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APPENDIX C
Jordan Main Traded Commodities by Tariff Classification
Table 1. Jordan Main Types of Commodities Exported to the USA in 2004.
HS
Code
Commodity Description
Exports
Value (JD)
61 Articles of apparel and clothing accessories, knitted or
crocheted
394,430,014
62 Articles of apparel and clothing accessories, not knitted or
crocheted
257,292,746
71
Natural or cultured pearls, precious or semi-precious stones,
precious metals, metals clad with precious metal and articles
thereof; imitation jewelry; coin
61,783,652
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
2,246,061
94
Furniture, bedding, mattresses, mattress supports, cushions
and similar stuffed furnishing, lamps and lighting fittings, not
elsewhere specified or included; illuminated signs,
illuminated name-plates and the like; prefabricated buildings
1,511,176
30 Pharmaceutical products
1,057,710
34
Soap, organic surface-active agents washing preparations;
lubricating preparations, artificial waxes, prepared waxes,
polishing or scouring preparations, candles and similar
articles, modeling pastes, "dental waxes" and dental
preparations with a basis of plaster
431,755
21 Miscellaneous edible preparations
398,876
49 Printed books, newspapers, pictures and other products of the
printing industry; manuscripts, typescripts and plans
374,766
33 Essential oils and resinoids; perfumery, cosmetic or toilet
preparations
267,125
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Table 2. Jordan Main Types of Commodities Exported to Iraq in 2004.
HS
Code Commodity Description
Exports
Value (JD)
15
Animal or vegetable fats and oil and their cleavage products;
prepared edible fats; animal or vegetable waxes
103,790,430
34
Soap, organic surface-active agents washing preparations;
lubricating preparations, artificial waxes, prepared waxes,
polishing or scouring preparations, candles and similar
articles, modeling pastes, "dental waxes" and dental
preparations with a basis of plaster
37,856,239
24 Tobacco and manufactured tobacco substitutes
28,727,740
85
Electrical machinery and equipment and parts thereof; sound
recorders and reproducers, television image and sound
recorders and reproducers and parts and accessories of such
articles
24,024,444
39 Plastics and articles thereof
18,435,401
27
Mineral fuels, mineral oils and products of their distillation
bituminous substances; mineral waxes
14,887,881
30 Pharmaceutical products
12,769,172
25
Salt; sulfur; earths and stone; plastering materials, lime and
cement
12,644,185
23
Residues and waste from the food industries; prepared animal
fodder
10,204,156
22 Beverages, spirits and vinegar
9,939,774
07 Edible vegetables and certain roots and tubers
9,102,917
73 Articles of iron or steel
8,271,216
94
Furniture, bedding, mattresses, mattress supports, cushions
and similar stuffed furnishing, lamps and lighting fittings, not
elsewhere specified or included; illuminated signs,
illuminated name-plates and the like; prefabricated buildings
7,947,404
76 Aluminum and articles thereof
7,746,642
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Table 3. Jordan Main Types of Commodities Exported to India in 2004.
HS
Code Commodity Description
Exports
Value (JD)
25
Salt; sulfur; earths and stone; plastering materials, lime and
cement
66,397,407
31 Fertilizers
53,129,990
28
Inorganic chemicals; organic or inorganic compounds of
precious metals, of rare-earth metals, of radioactive elements
or of isotopes
50,781,071
74 Copper and articles thereof
2,619,828
76 Aluminum and articles thereof
2,545,365
78 Lead and articles thereof
992,153
72 Iron and steel
850,240
79 Zinc and articles thereof
214,780
68
Articles of stone, plaster, cement, asbestos, mica or similar
materials
209,191
73 Articles of iron or steel
177,291
27
Mineral fuels, mineral oils and products of their distillation
bituminous substances; mineral waxes
126,416
47
Pulp of wood or of other fibrous cellulose material; waste and
scrap of paper or paperboard
101,092
41 Raw hides and skins (other than fur skins) and leather
96,578
39 Plastics and articles thereof
42,934
51
Wool, fine or coarse animal hair; horsehair yarn and woven
fabric
35,076
15
Animal or vegetable fats and oil and their cleavage products;
prepared edible fats; animal or vegetable waxes
31,051
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Table 4. Jordan Main Types of Commodities Exported to Saudi Arabia in 2004.
HS
Code Commodity Description
Exports
Value (JD)
30 Pharmaceutical products
49,484,084
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
11,960,834
31 Fertilizers
11,928,067
01 Live animals
8,121,130
28
Inorganic chemicals; organic or inorganic compounds of
precious metals, of rare-earth metals, of radioactive
elements or of isotopes
6,727,653
94
Furniture, bedding, mattresses, mattress supports, cushions
and similar stuffed furnishing, lamps and lighting fittings,
not elsewhere specified or included; illuminated signs,
illuminated name-plates and the like; prefabricated
buildings
5,704,049
72 Iron and steel
5,243,071
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
4,457,550
68
Articles of stone, plaster, cement, asbestos, mica or similar
materials
3,912,916
38 Miscellaneous chemical products
3,179,655
39 Plastics and articles thereof
3,066,503
73 Articles of iron or steel
2,776,174
32
Tanning or dyeing extracts; tannins and their derivatives;
dyes, pigments and other coloring matter; paints and
varnishes; putty and other mastics; inks.
2,501,056
21 Miscellaneous edible preparations
2,057,200
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Table 5. Jordan Main Types of Commodities Exported to Syria in 2004.
HS
Code Commodity Description
Exports
Value (JD)
07 Edible vegetables and certain roots and tubers
39,631,302
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
12,585,809
25
Salt; sulfur; earths and stone; plastering materials, lime
and cement
7,020,599
76 Aluminum and articles thereof
6,439,416
39 Plastics and articles thereof
5,083,646
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
4,189,228
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
1,909,040
08 Edible fruit and nuts; peel of citrus fruit or melons
1,533,967
32
Tanning or dyeing extracts; tannins and their derivatives;
dyes, pigments and other coloring matter; paints and
varnishes; putty and other mastics; inks.
1,463,783
38 Miscellaneous chemical products
1,256,395
28
Inorganic chemicals; organic or inorganic compounds of
precious metals, of rare-earth metals, of radioactive
elements or of isotopes
1,246,481
55 Man-made staple fibers
1,139,271
30 Pharmaceutical products
1,027,632
31 Fertilizers
1,014,190
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Table 6. Jordan Main Types of Commodities Exported to the United Arab Emirates
in 2004.
HS
Code Commodity Description
Exports
Value (JD)
07 Edible vegetables and certain roots and tubers
30,452,153
30 Pharmaceutical products
7,401,323
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
6,048,199
28
Inorganic chemicals; organic or inorganic compounds of
precious metals, of rare-earth metals, of radioactive
elements or of isotopes
3,839,155
71
Natural or cultured pearls, precious or semi-precious
stones, precious metals, metals clad with precious metal
and articles thereof; imitation jewelry; coin
3,797,123
32
Tanning or dyeing extracts; tannins and their derivatives;
dyes, pigments and other coloring matter; paints and
varnishes; putty and other mastics; inks.
2,097,168
61
Articles of apparel and clothing accessories, knitted or
crocheted
2,078,751
62
Articles of apparel and clothing accessories, not knitted or
crocheted
1,889,475
08 Edible fruit and nuts; peel of citrus fruit or melons
1,650,122
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
1,525,839
31 Fertilizers
1,494,050
56
Wadding, felt and non-wovens, special yarns; twine,
cordage, ropes and cables and articles thereof
1,353,350
39 Plastics and articles thereof
1,230,021
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Table 7. Jordan Main Types of Commodities Exported to Israel in 2004.
HS
Code Commodity Description
Exports
Value (JD)
61
Articles of apparel and clothing accessories, knitted or
crocheted
27,748,745
71
Natural or cultured pearls, precious or semi-precious
stones, precious metals, metals clad with precious metal
and articles thereof; imitation jewelry; coin
21,802,528
62
Articles of apparel and clothing accessories, not knitted or
crocheted
11,635,422
39 Plastics and articles thereof
2,312,639
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
1,383,721
76 Aluminum and articles thereof
1,132,192
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
1,051,730
15
Animal or vegetable fats and oil and their cleavage
products; prepared edible fats; animal or vegetable waxes
1,045,500
25
Salt; sulfur; earths and stone; plastering materials, lime
and cement
961,128
07 Edible vegetables and certain roots and tubers
687,928
68
Articles of stone, plaster, cement, asbestos, mica or
similar materials
495,270
34
Soap, organic surface-active agents washing preparations;
lubricating preparations, artificial waxes, prepared waxes,
polishing or scouring preparations, candles and similar
articles, modeling pastes, "dental waxes" and dental
preparations with a basis of plaster
378,750
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Table 8. Jordan Main Types of Commodities Exported to Ethiopia in 2004.
HS
Code Commodity Description
Exports
Value (JD)
31 Fertilizers
50,261,312
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
409,802
35
Albuminoidal substances; modified starches; glues;
enzymes.
160,036
39 Plastics and articles thereof
145,362
28
Inorganic chemicals; organic or inorganic compounds of
precious metals, of rare-earth metals, of radioactive
elements or of isotopes
94,262
29 Organic chemicals
71,161
30 Pharmaceutical products
32,100
68
Articles of stone, plaster, cement, asbestos, mica or
similar materials
28,272
34
Soap, organic surface-active agents washing preparations;
lubricating preparations, artificial waxes, prepared waxes,
polishing or scouring preparations, candles and similar
articles, modeling pastes, "dental waxes" and dental
preparations with a basis of plaster
15,591
Table 9. Jordan Main Types of Commodities Exported to Algeria in 2004.
HS
Code Commodity Description
Exports
Value (JD)
30 Pharmaceutical products
33,698,788
38 Miscellaneous chemical products
6,436,509
76 Aluminum and articles thereof
2,617,328
62
Articles of apparel and clothing accessories, not knitted or
crocheted
1,552,972
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21 Miscellaneous edible preparations
1,432,540
04
Dairy produce; birds' eggs; natural honey; edible products
of animal origin, not elsewhere specified or included
778,582
31 Fertilizers
665,318
39 Plastics and articles thereof
512,652
73 Articles of iron or steel
382,254
19
Preparations of cereals, flour starch; or milk, pastry cooks,
products
205,342
34
Soap, organic surface-active agents washing preparations;
lubricating preparations, artificial waxes, prepared waxes,
polishing or scouring preparations, candles and similar
articles, modeling pastes, "dental waxes" and dental
preparations with a basis of plaster
175,948
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
100,317
56
Wadding, felt and non-wovens, special yarns; twine,
cordage, ropes and cables and articles thereof
87,668
Table 10. Jordan Main Types of Commodities Exported to Lebanon in 2004.
HS
Code Commodity Description
Exports
Value (JD)
07 Edible vegetables and certain roots and tubers
8,162,820
30 Pharmaceutical products
6,334,827
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
3,236,400
31 Fertilizers
2,601,697
15
Animal or vegetable fats and oil and their cleavage
products; prepared edible fats; animal or vegetable waxes
2,123,463
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 42
76 Aluminum and articles thereof
1,899,480
39 Plastics and articles thereof
1,777,826
72 Iron and steel
1,643,859
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
1,480,700
38 Miscellaneous chemical products
1,343,218
28
Inorganic chemicals; organic or inorganic compounds of
precious metals, of rare-earth metals, of radioactive
elements or of isotopes
1,331,272
19 Preparations of cereals, flour starch; or milk, pastry cooks,
products 1,125,185
08 Edible fruit and nuts; peel of citrus fruit or melons
1,063,873
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
664,338
16
Preparations of meat, of fish, or of crustaceans, mollusks
or other aquatic invertebrates
628,470
Table 11. Jordan Main Types of Commodities Exported to Kuwait in 2004.
HS
Code Commodity Description
Exports
Value (JD)
07 Edible vegetables and certain roots and tubers
12,998,285
87
Vehicles other than railway or tramway rolling-stock, and
parts and accessories thereof
11,823,346
08 Edible fruit and nuts; peel of citrus fruit or melons
1,861,579
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
1,141,049
30 Pharmaceutical products
1,039,338
01 Live animals 1,022,690
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 43
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
788,243
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
712,059
16
Preparations of meat, of fish, or of crustaceans, mollusks
or other aquatic invertebrates
631,678
68
Articles of stone, plaster, cement, asbestos, mica or
similar materials
589,218
04
Dairy produce; birds' eggs; natural honey; edible products
of animal origin, not elsewhere specified or included
541,905
39 Plastics and articles thereof
381,191
20
Preparations of vegetables, fruit, nuts or other parts of
plants
330,035
38 Miscellaneous chemical products
300,814
Table 12. Jordan Main Types of Commodities Exported to Iran in 2004.
HS
Code Commodity Description
Exports
Value (JD)
31 Fertilizers
26,886,959
25
Salt; sulphur; earths and stone; plastering materials, lime
and cement
6,145,072
28
Inorganic chemicals; organic or inorganic compounds of
precious metals, of rare-earth metals, of radioactive
elements or of isotopes
1,664,389
56
Wadding, felt and non-wovens, special yarns; twine,
cordage, ropes and cables and articles thereof
765,406
39 Plastics and articles thereof
301,557
73 Articles of iron or steel 164,402
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 44
16
Preparations of meat, of fish, or of crustaceans, mollusks
or other aquatic invertebrates
52,022
29 Organic chemicals
35,450
21 Miscellaneous edible preparations
23,838
12
Oil seeds and oleaginous fruits miscellaneous grains,
seeds and fruit; industrial or medical plants; straw and
fodder
20,292
Table 13. Jordan Main Types of Commodities Exported to Indonesia in 2004.
HS
Code Commodity Description
Exports
Value (JD)
31 Fertilizers
16,147,551
25
Salt; sulfur; earths and stone; plastering materials, lime
and cement
8,060,419
78 Lead and articles thereof
215,665
47
Pulp of wood or of other fibrous cellulose material; waste
and scrap of paper or paperboard
24,396
33
Essential oils and resinoids; perfumery, cosmetic or toilet
preparations
7,941
94
Furniture, bedding, mattresses, mattress supports,
cushions and similar stuffed furnishing, lamps and
lighting fittings, not elsewhere specified or included;
illuminated signs, illuminated name-plates and the like;
prefabricated buildings
6,009
72 Iron and steel
5,707
30 Pharmaceutical products
4,871
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 45
Table 14. Jordan Main Types of Commodities Exported to China in 2004.
HS
Code Commodity Description
Exports
Value (JD)
31 Fertilizers
23,050,414
41 Raw hides and skins (other than fur skins) and leather
588,465
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
223,200
28
Inorganic chemicals; organic or inorganic compounds of
precious metals, of rare-earth metals, of radioactive
elements or of isotopes
122,416
74 Copper and articles thereof
116,023
42
Articles of leather; saddlery and harness; travel goods,
handbags, and similar containers; articles of animal gut
(other than silk-worm gut)
80,783
25
Salt; sulfur; earths and stone; plastering materials, lime
and cement
31,188
Table 15. Jordan Main Types of Commodities Exported to Sudan in 2004.
HS
Code Commodity Description
Exports
Value (JD)
30 Pharmaceutical products
10,791,903
87
Vehicles other than railway or tramway rolling-stock, and
parts and accessories thereof
2,464,626
28
Inorganic chemicals; organic or inorganic compounds of
precious metals, of rare-earth metals, of radioactive
elements or of isotopes
2,259,817
31 Fertilizers
2,032,248
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
1,211,402
32 Tanning or dyeing extracts; tannins and their derivatives; 1,098,972
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 46
dyes, pigments and other coloring matter; paints and
varnishes; putty and other mastics; inks.
73 Articles of iron or steel
547,507
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
536,354
39 Plastics and articles thereof
526,087
38 Miscellaneous chemical products
289,230
76 Aluminum and articles thereof
271,764
62
Articles of apparel and clothing accessories, not knitted or
crocheted
174,040
56
Wadding, felt and non-wovens, special yarns; twine,
cordage, ropes and cables and articles thereof
167,077
Table 16. Jordan Main Types of Commodities Exported to the Palestinian National
Authority in 2004.
HS
Code Commodity Description
Exports
Value (JD)
76 Aluminum and articles thereof
4,473,853
25
Salt; sulfur; earths and stone; plastering materials, lime
and cement
3,217,934
32
Tanning or dyeing extracts; tannins and their derivatives;
dyes, pigments and other coloring matter; paints and
varnishes; putty and other mastics; inks.
3,032,437
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
1,031,349
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
886,457
94
Furniture, bedding, mattresses, mattress supports,
cushions and similar stuffed furnishing, lamps and
lighting fittings, not elsewhere specified or included;
illuminated signs, illuminated name-plates and the like;
prefabricated buildings
840,688
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 47
21 Miscellaneous edible preparations
799,355
39 Plastics and articles thereof
723,911
15
Animal or vegetable fats and oil and their cleavage
products; prepared edible fats; animal or vegetable waxes
642,036
19
Preparations of cereals, flour starch; or milk, pastry cooks,
products
612,887
72 Iron and steel
536,878
18 Cocoa and cocoa preparations
528,489
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 48
Table 17. Jordan Main Types of Commodities Exported to Egypt in 2004.
HS
Code Commodity Description
Exports
Value (JD)
31 Fertilizers
3,300,729
28
Inorganic chemicals; organic or inorganic compounds of
precious metals, of rare-earth metals, of radioactive
elements or of isotopes
2,163,572
56
Wadding, felt and non-wovens, special yarns; twine,
cordage, ropes and cables and articles thereof
2,009,424
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
1,891,486
30 Pharmaceutical products
1,625,966
73 Articles of iron or steel
1,434,561
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
1,399,674
39 Plastics and articles thereof
1,136,775
34
Soap, organic surface-active agents washing preparations;
lubricating preparations, artificial waxes, prepared waxes,
polishing or scouring preparations, candles and similar
articles, modeling pastes, "dental waxes" and dental
preparations with a basis of plaster
927,245
32
Tanning or dyeing extracts; tannins and their derivatives;
dyes, pigments and other coloring matter; paints and
varnishes; putty and other mastics; inks.
851,395
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
701,053
76 Aluminum and articles thereof
595,488
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 49
Table 18. Jordan Main Types of Commodities Exported to Switzerland in 2004.
HS
Code Commodity Description
Exports
Value (JD)
71
Natural or cultured pearls, precious or semi-precious
stones, precious metals, metals clad with precious metal
and articles thereof; imitation jewelry; coin
18,330,935
15
Animal or vegetable fats and oil and their cleavage
products; prepared edible fats; animal or vegetable waxes
742,022
26 Ores, slag and ash
160,501
25
Salt; sulfur; earths and stone; plastering materials, lime
and cement
35,698
61
Articles of apparel and clothing accessories, knitted or
crocheted
33,677
07 Edible vegetables and certain roots and tubers
16,155
33
Essential oils and resinoids; perfumery, cosmetic or toilet
preparations
9,039
70 Glass and glassware
3,747
Table 19. Jordan Main Types of Commodities Exported to Yemen in 2004.
HS
Code Commodity Description
Exports
Value (JD)
30 Pharmaceutical products
6,514,710
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
3,494,186
19
Preparations of cereals, flour starch; or milk, pastry cooks,
products
1,139,727
39 Plastics and articles thereof
957,891
38 Miscellaneous chemical products
920,851
85 Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and 795,036
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 50
sound recorders and reproducers and parts and accessories
of such articles
32
Tanning or dyeing extracts; tannins and their derivatives;
dyes, pigments and other coloring matter; paints and
varnishes; putty and other mastics; inks.
787,141
28
Inorganic chemicals; organic or inorganic compounds of
precious metals, of rare-earth metals, of radioactive
elements or of isotopes
718,800
64 Footwear, gaiters and the like; parts of such articles
372,677
56
Wadding, felt and non-wovens, special yarns; twine,
cordage, ropes and cables and articles thereof
327,511
34
Soap, organic surface-active agents washing preparations;
lubricating preparations, artificial waxes, prepared waxes,
polishing or scouring preparations, candles and similar
articles, modeling pastes, “dental waxes” and dental
preparations with a basis of plaster
308,419
31 Fertilizers
269,788
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 51
Table 20. Jordan Main Types of Commodities Exported to Libya in 2004.
HS
Code Commodity Description
Exports
Value (JD)
30 Pharmaceutical products
5,972,840
94
Furniture, bedding, mattresses, mattress supports,
cushions and similar stuffed furnishing, lamps and
lighting fittings, not elsewhere specified or included;
illuminated signs, illuminated name-plates and the like;
prefabricated buildings
1,837,208
62
Articles of apparel and clothing accessories, not knitted or
crocheted
1,778,110
57 Carpets and other textile floor coverings
1,389,931
73 Articles of iron or steel
1,328,824
56
Wadding, felt and non-wovens, special yarns; twine,
cordage, ropes and cables and articles thereof
1,133,677
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
859,702
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
761,782
38 Miscellaneous chemical products
681,169
29 Organic chemicals
257,960
20
Preparations of vegetables, fruit, nuts or other parts of
plants
230,159
87
Vehicles other than railway or tramway rolling-stock, and
parts and accessories thereof
186,329
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 52
Table 21. Jordan Main Types of Commodities Imported from Saudi Arabia in 2004.
HS
Code Commodity Description
Imports
Value (JD)
27
Mineral fuels, mineral oils and products of their
distillation bituminous substances; mineral waxes
934,827,156
39 Plastics and articles thereof
73,675,045
17 Sugars and sugar confectionery
18,233,479
74 Copper and articles thereof
14,507,458
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
13,754,086
72 Iron and steel
10,601,625
76 Aluminum and articles thereof
8,207,023
22 Beverages, spirits and vinegar
7,129,499
33
Essential oils and resinoids; perfumery, cosmetic or toilet
preparations
5,748,488
73 Articles of iron or steel
5,635,401
04
Dairy produce; birds’ eggs; natural honey; edible products
of animal origin, not elsewhere specified or included
5,396,102
32
Tanning or dyeing extracts; tannins and their derivatives;
dyes, pigments and other coloring matter; paints and
varnishes; putty and other mastics; inks.
4,530,823
28
Inorganic chemicals; organic or inorganic compounds of
precious metals, of rare-earth metals, of radioactive
elements or of isotopes
3,878,972
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
3,304,596
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 53
Table 22. Jordan Main Types of Commodities Imported from China in 2004.
HS
Code Commodity Description
Imports
Value (JD)
60 Knitted or crocheted fabrics
133,019,076
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
55,563,765
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
38,269,109
62
Articles of apparel and clothing accessories, not knitted or
crocheted
27,845,913
54 Man-made filaments
22,569,019
52 Cotton
21,994,984
73 Articles of iron or steel
15,966,391
61
Articles of apparel and clothing accessories, knitted or
crocheted
14,230,056
39 Plastics and articles thereof
13,422,541
29 Organic chemicals
12,817,290
94
Furniture, bedding, mattresses, mattress supports,
cushions and similar stuffed furnishing, lamps and
lighting fittings, not elsewhere specified or included;
illuminated signs, illuminated name-plates and the like;
prefabricated buildings
12,238,179
64 Footwear, gaiters and the like; parts of such articles
11,483,897
69 Ceramic products
8,955,512
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 54
Table 23. Jordan Main Types of Commodities Imported from Germany in 2004.
HS
Code Commodity Description
Imports
Value (JD)
87
Vehicles other than railway or tramway rolling-stock, and
parts and accessories thereof
145,608,832
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
62,171,175
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
32,714,544
30 Pharmaceutical products
22,986,492
99 Unspecified
18,322,753
90
Optical, photographic, cinematographic, measuring,
checking precision, medical or surgical instruments and
apparatus; parts and accessories thereof
13,696,426
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
11,151,517
39 Plastics and articles thereof
8,176,454
10 Cereals
6,625,605
29 Organic chemicals
5,918,087
38 Miscellaneous chemical products
5,244,381
88 Aircraft, spacecraft, and parts thereof
4,371,196
73 Articles of iron or steel
4,174,638
72 Iron and steel
3,439,518
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 55
Table 24. Jordan Main Types of Commodities Imported from the USA in 2004.
HS
Code Commodity Description
Imports
Value (JD)
10 Cereals
98,999,754
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
43,882,091
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
39,971,278
88 Aircraft, spacecraft, and parts thereof
35,769,758
99 Unspecified
35,717,285
90
Optical, photographic, cinematographic, measuring,
checking precision, medical or surgical instruments and
apparatus; parts and accessories thereof
16,978,190
87
Vehicles other than railway or tramway rolling-stock, and
parts and accessories thereof
15,553,602
15
Animal or vegetable fats and oil and their cleavage
products; prepared edible fats; animal or vegetable waxes
10,684,462
30 Pharmaceutical products
9,903,920
29
Organic chemicals
8,182,032
47
Pulp of wood or of other fibrous cellulose material; waste
and scrap of paper or paperboard
8,114,785
94
Furniture, bedding, mattresses, mattress and lighting
fittings, not elsewhere specified or included; illuminated
signs, illuminated name-plates and the like; prefabricated
buildings
6,690,571
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 56
Table 25. Jordan Main Types of Commodities Imported from Italy in 2004.
HS
Code Commodity Description
Imports
Value (JD)
71
Natural or cultured pearls, precious or semi-precious
stones, precious metals, metals clad with precious metal
and articles thereof; imitation jewelry; coin
67,590,309
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
44,300,920
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
10,240,867
87
Vehicles other than railway or tramway rolling-stock, and
parts and accessories thereof
10,228,432
39 Plastics and articles thereof
8,930,195
73 Articles of iron or steel
7,544,060
30 Pharmaceutical products
7,536,156
90
Optical, photographic, cinematographic, measuring,
checking precision, medical or surgical instruments and
apparatus; parts and accessories thereof
5,870,075
99 Unspecified
4,233,045
29 Organic chemicals
4,091,135
94
Furniture, bedding, mattresses, mattress supports,
cushions and similar stuffed furnishing, lamps and
lighting fittings, not elsewhere specified or included;
illuminated signs, illuminated name-plates and the like;
prefabricated buildings
3,881,133
25
Salt; sulfur; earths and stone; plastering materials, lime
and cement
3,297,739
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 57
Table 26. Jordan Main Types of Commodities Imported from Egypt in 2004.
HS
Code Commodity Description
Imports
Value (JD)
27
Mineral fuels, mineral oils and products of their
distillation bituminous substances; mineral waxes
100,017,530
72 Iron and steel
14,418,061
10 Cereals
11,460,419
21 Miscellaneous edible preparations
7,600,014
74 Copper and articles thereof
7,165,051
69 Ceramic products
6,498,812
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
4,981,144
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
4,413,890
04
Dairy produce; birds’ eggs; natural honey; edible products
of animal origin, not elsewhere specified or included
4,286,339
34
Soap, organic surface-active agents washing preparations;
lubricating preparations, artificial waxes, prepared waxes,
polishing or scouring preparations, candles and similar
articles, modeling pastes, “dental waxes” and dental
preparations with a basis of plaster
3,747,435
73 Articles of iron or steel
3,606,514
07 Edible vegetables and certain roots and tubers
3,175,042
20
Preparations of vegetables, fruit, nuts or other parts of
plants
2,935,580
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 58
Table 27. Jordan Main Types of Commodities Imported from Japan in 2004.
HS
Code Commodity Description
Imports
Value (JD)
87
Vehicles other than railway or tramway rolling-stock, and
parts and accessories thereof
94,286,339
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
36,577,962
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
12,661,728
90
Optical, photographic, cinematographic, measuring,
checking precision, medical or surgical instruments and
apparatus; parts and accessories thereof
8,912,635
40 Rubber and articles thereof
8,865,203
99 Unspecified
6,351,875
29 Organic chemicals
4,373,809
30 Pharmaceutical products
4,042,970
55 Man-made staple fibers
2,332,492
73 Articles of iron or steel
2,123,704
76 Aluminum and articles thereof
1,908,140
37 Photographic or cinematographic goods
1,792,877
96 Miscellaneous manufactured articles
961,717
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 59
Table 28. Jordan Main Types of Commodities Imported from South Korea in 2004.
HS
Code Commodity Description
Imports
Value (JD)
87
Vehicles other than railway or tramway rolling-stock, and
parts and accessories thereof
85,225,217
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
37,103,370
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
20,974,463
73 Articles of iron or steel
8,886,791
39 Plastics and articles thereof
4,959,861
99 Unspecified
4,821,472
54 Man-made filaments
4,320,208
60 Knitted or crocheted fabrics
4,280,772
40 Rubber and articles thereof
2,377,526
29 Organic chemicals
1,700,907
55 Man-made staple fibers
1,470,005
90
Optical, photographic, cinematographic, measuring,
checking precision, medical or surgical instruments and
apparatus; parts and accessories thereof
1,106,954
38 Miscellaneous chemical products
519,175
72 Iron and steel
506,031
30 Pharmaceutical products
505,538
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 60
Table 29. Jordan Main Types of Commodities Imported from Ukraine in 2004.
HS
Code Commodity Description
Imports
Value (JD)
72 Iron and steel
78,004,227
10 Cereals
43,741,050
73 Articles of iron or steel
40,615,317
15
Animal or vegetable fats and oil and their cleavage
products; prepared edible fats; animal or vegetable waxes
5,540,642
27
Mineral fuels, mineral oils and products of their
distillation bituminous substances; mineral waxes
4,624,810
01 Live animals
472,587
44 Wood and articles of wood; wood charcoal
387,522
99 Unspecified
226,758
12
Oil seeds and oleaginous fruits miscellaneous grains,
seeds and fruit; industrial or medical plants; straw and
fodder
216,063
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
201,420
Table 30. Jordan Main Types of Commodities Imported from France in 2004.
HS
Code Commodity Description
Imports
Value (JD)
88 Aircraft, spacecraft, and parts thereof
50,677,832
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
17,881,018
87
Vehicles other than railway or tramway rolling-stock, and
parts and accessories thereof
13,630,384
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 61
30 Pharmaceutical products
12,560,593
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
8,593,581
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
5,098,337
19
Preparations of cereals, flour starch; or milk, pastry cooks,
products
3,856,038
33
Essential oils and resinoids; perfumery, cosmetic or toilet
preparations
3,668,698
38 Miscellaneous chemical products
3,446,515
29 Organic chemicals
3,364,378
39 Plastics and articles thereof
3,297,724
04
Dairy produce; birds’ eggs; natural honey; edible products
of animal origin, not elsewhere specified or included
2,908,789
73 Articles of iron or steel
2,771,857
72 Iron and steel
2,652,263
Table 31. Jordan Main Types of Commodities Imported from the UK in 2004.
HS
Code Commodity Description
Imports
Value (JD)
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
24,372,885
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
23,248,573
30 Pharmaceutical products
19,309,655
99 Unspecified
12,115,162
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
AMIR Program 62
87
Vehicles other than railway or tramway rolling-stock, and
parts and accessories thereof
8,707,886
90
Optical, photographic, cinematographic, measuring,
checking precision, medical or surgical instruments and
apparatus; parts and accessories thereof
5,879,593
38 Miscellaneous chemical products
5,620,638
32
Tanning or dyeing extracts; tannins and their derivatives;
dyes, pigments and other coloring matter; paints and
varnishes; putty and other mastics; inks.
4,644,410
51
Wool, fine or coarse animal hair; horsehair yarn and
woven fabric
3,678,706
39 Plastics and articles thereof
3,644,056
29 Organic chemicals
3,432,304
49
Printed books, newspapers, pictures and other products of
the printing industry; manuscripts, typescripts and plans
3,385,490
88 Aircraft, spacecraft, and parts thereof
2,352,210
Table 32. Jordan Main Types of Commodities Imported from Syria in 2004.
HS
Code Commodity Description
Imports
Value (JD)
10 Cereals
30,461,174
08 Edible fruit and nuts; peel of citrus fruit or melons
13,201,621
72 Iron and steel
9,572,767
07 Edible vegetables and certain roots and tubers
8,642,907
22 Beverages, spirits and vinegar
7,572,442
61
Articles of apparel and clothing accessories, knitted or
crocheted
7,059,819
54 Man-made filaments
6,447,818
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01 Live animals
6,275,341
27
Mineral fuels, mineral oils and products of their
distillation bituminous substances; mineral waxes
5,887,357
62
Articles of apparel and clothing accessories, not knitted or
crocheted
4,891,096
58
Special woven fabrics; tufted textile fabrics; lace;
tapestries; trimmings; embroidery
3,735,764
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
3,253,169
39 Plastics and articles thereof
3,014,763
21 Miscellaneous edible preparations
2,616,889
52 Cotton
2,596,930
Table 33. Jordan Main Types of Commodities Imported from Turkey in 2004.
HS
Code Commodity Description
Imports
Value (JD)
72 Iron and steel
14,988,407
73 Articles of iron or steel
10,264,490
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
9,919,713
60 Knitted or crocheted fabrics
8,961,058
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
8,677,773
39 Plastics and articles thereof
6,781,634
87 Vehicles other than railway or tramway rolling-stock, and 6,526,183
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
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parts and accessories thereof
27
Mineral fuels, mineral oils and products of their
distillation bituminous substances; mineral waxes
4,922,134
54 Man-made filaments
4,757,058
25
Salt; sulfur; earths and stone; plastering materials, lime
and cement
4,525,019
55 Man-made staple fibers
4,017,363
62
Articles of apparel and clothing accessories, not knitted or
crocheted
3,829,447
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
3,033,927
07 Edible vegetables and certain roots and tubers
2,875,908
Table 34. Jordan Main Types of Commodities Imported from Indonesia in 2004.
HS
Code Commodity Description
Imports
Value (JD)
15
Animal or vegetable fats and oil and their cleavage
products; prepared edible fats; animal or vegetable waxes
75,371,336
44 Wood and articles of wood; wood charcoal
19,987,831
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
6,003,101
16
Preparations of meat, of fish, or of crustaceans, mollusks
or other aquatic invertebrates
4,602,860
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
4,088,960
40 Rubber and articles thereof
2,025,242
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84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
1,896,987
47
Pulp of wood or of other fibrous cellulosic material; waste
and scrap of paper or paperboard
1,854,570
54 Man-made filaments
1,350,136
55 Man-made staple fibers
1,143,646
70 Glass and glassware
890,762
29 Organic chemicals 690,311
60 Knitted or crocheted fabrics
493,168
19
Preparations of cereals, flour starch; or milk, pastry cooks,
products
396,298
Table 35. Jordan Main Types of Commodities Imported from Israel in 2004.
HS
Code Commodity Description
Imports
Value (JD)
60 Knitted or crocheted fabrics
52,286,778
71
Natural or cultured pearls, precious or semi-precious
stones, precious metals, metals clad with precious metal
and articles thereof; imitation jewelry; coin
19,517,063
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
11,548,743
54 Man-made filaments
6,799,039
39
Plastics and articles thereof
6,754,516
58
Special woven fabrics; tufted textile fabrics; lace;
tapestries; trimmings; embroidery
2,863,300
52 Cotton
2,511,422
61 Articles of apparel and clothing accessories, knitted or 2,486,905
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
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crocheted
62
Articles of apparel and clothing accessories, not knitted or
crocheted
2,319,937
96 Miscellaneous manufactured articles
2,162,657
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
1,483,033
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
1,366,909
38 Miscellaneous chemical products
715,473
Table 36. Jordan Main Types of Commodities Imported from Taiwan in 2004.
HS
Code Commodity Description
Imports
Value (JD)
60 Knitted or crocheted fabrics
46,092,185
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
12,275,913
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
9,838,686
52
Cotton
9,493,579
54 Man-made filaments
9,073,665
39 Plastics and articles thereof
7,582,139
72 Iron and steel
2,722,997
87
Vehicles other than railway or tramway rolling-stock, and
parts and accessories thereof
2,325,023
62 Articles of apparel and clothing accessories, not knitted or 1,782,083
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
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crocheted
55 Man-made staple fibers
1,565,374
40 Rubber and articles thereof
1,227,443
61
Articles of apparel and clothing accessories, knitted or
crocheted
1,197,823
Table 37. Jordan Main Types of Commodities Imported from India in 2004.
HS
Code Commodity Description
Imports
Value (JD)
02 Meat and edible meat offal
19,203,087
10 Cereals
13,837,238
29 Organic chemicals
13,214,259
15
Animal or vegetable fats and oil and their cleavage
products; prepared edible fats; animal or vegetable waxes
12,045,039
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
5,039,449
39 Plastics and articles thereof
4,181,607
55
Man-made staple fibers
2,669,444
09 Coffee, tea, mate' and spices
2,637,062
23
Residues and waste from the food industries; prepared
animal fodder
2,372,930
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
2,357,750
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Table 38. Jordan Main Types of Commodities Imported from the United Arab
Emirates in 2004.
HS
Code Commodity Description
Imports
Value (JD)
76 Aluminum and articles thereof
28,745,473
27
Mineral fuels, mineral oils and products of their
distillation bituminous substances; mineral waxes
14,517,977
39 Plastics and articles thereof
11,943,353
17 Sugars and sugar confectionery
6,591,796
69 Ceramic products
4,596,996
60 Knitted or crocheted fabrics
2,847,451
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
2,843,752
15
Animal or vegetable fats and oil and their cleavage
products; prepared edible fats; animal or vegetable waxes
2,756,480
18 Cocoa and cocoa preparations
1,929,992
73 Articles of iron or steel
1,872,853
30 Pharmaceutical products
1,673,076
11
Products of the milling industry; malt; starches; inulin,
wheat gluten.
1,576,378
57 Carpets and other textile floor coverings 1,523,215
31 Fertilizers
1,388,860
08 Edible fruit and nuts; peel of citrus fruit or melons
1,348,110
38 Miscellaneous chemical products
1,341,993
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Table 39. Jordan Main Types of Commodities Imported from Switzerland in 2004.
HS
Code Commodity Description
Imports
Value (JD)
71
Natural or cultured pearls, precious or semi-precious
stones, precious metals, metals clad with precious metal
and articles thereof; imitation jewelry; coin
27,139,342
30 Pharmaceutical products
21,107,801
24 Tobacco and manufactured tobacco substitutes
7,486,057
90
Optical, photographic, cinematographic, measuring,
checking precision, medical or surgical instruments and
apparatus; parts and accessories thereof
3,878,106
91 Clocks and watches and parts thereof
3,764,487
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
3,279,612
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
2,517,305
48
Paper and paperboard; articles of paper pulp, of paper or
of paper board
1,569,251
99 Unspecified
1,561,113
29 Organic chemicals
1,456,518
33
Essential oils and resinoids; perfumery, cosmetic or toilet
preparations
1,087,944
39 Plastics and articles thereof
863,161
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Table 40. Jordan Main Types of Commodities Imported from the Netherlands in
2004.
HS
Code Commodity Description
Imports
Value (JD)
30 Pharmaceutical products
9,291,567
04
Dairy produce; birds’ eggs; natural honey; edible products
of animal origin, not elsewhere specified or included
8,612,334
39 Plastics and articles thereof
6,981,244
88 Aircraft, spacecraft, and parts thereof
5,679,257
27
Mineral fuels, mineral oils and products of their
distillation bituminous substances; mineral waxes
4,934,819
84
Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof
4,298,305
29 Organic chemicals
4,152,835
90
Optical, photographic, cinematographic, measuring,
checking precision, medical or surgical instruments and
apparatus; parts and accessories thereof
3,534,458
23
Residues and waste from the food industries; prepared
animal fodder
3,027,542
21 Miscellaneous edible preparations
2,146,998
12
Oil seeds and oleaginous fruits miscellaneous grains,
seeds and fruit; industrial or medical plants; straw and
fodder
2,000,369
85
Electrical machinery and equipment and parts thereof;
sound recorders and reproducers, television image and
sound recorders and reproducers and parts and accessories
of such articles
1,598,366
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APPENDIX D
Golden List Program of
Jordan Customs
How to Join the Golden List Program
A Guide
For International Trade Supply Chain Companies
(Importers, Exporters, Qualified Industrial Zone Companies, Customs Agents,
Warehouse Operators and Transport Operators)
Prepared by:
Risk Management Directorate of
Jordan Customs
In Cooperation with:
USAID-Funded AMIR Program of Jordan
2005
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PREFACE
Jordan Customs Law No. 20 for the year 1998 allows Jordan Customs (JC) to perform
cargo physical inspections selectively based on pre-established risk management criteria.
Jordan foreign trade volumes escalate and thus JC will not have the capacity or the
resources to physically inspect every cargo shipment. To the contrary, JC believes that
inspecting every cargo shipment will hamper trade and will have unfavorable
consequences to Jordan economy. The Risk Management Directorate within JC was
established in 2001 with the vision of facilitating cargo inward and outward flow while
protecting the people of Jordan and the income of the Treasury. Low risk shipments will
enjoy minimal border processing time in addition to other benefits as permitted by the
Law.
During the second half of 2004, JC has initiated a voluntary, self-compliance program,
called Golden List Program (GLP). The program was targeted at Jordan supply-chain
companies; including importers, exporters, Qualified Industrial Zone (QIZ)
manufacturers, transporters and transport operators, customs clearing agents (brokers),
and warehouse operators. The primary aim of the GLP was promoting standards trade
with other countries. "World Customs Organization ()"companies and thus, will be
treated JC and as well
According to the GLP requirements, supply-chain companies that are exercising customs
due diligence, have supply chain security procedures in place, have a good compliance
history with JC and compliant with Jordan customs law and regulations may qualify to
become a Golden List member. Golden list companies will enjoy a preferred treatment
by Jordan Customs in the form of certain incentives. Companies that do not qualify to
become a member of the golden list can work jointly with JC to make certain
improvements to enable them to join.
Companies are strongly encouraged to voluntarily join the GLP. Doing so indicates that
a company has a strong sense of responsibility towards complying with customs
legislation and supply-chain security needs. It also indicates that a company has the
desire and ability to implement the state-of-the-art best practices.
This guide is intended to lead companies throughout the whole process of joining the
GLP; from understanding what is the GLP is about, what is required from a company so
that it is accepted on the program, what is the procedure to follow in joining the program,
until ultimately become a GLP member. The guide contains seven main sections and two
Appendixes. The first section explains the aim of the GLP, the benefits to be gained by
companies joining the program and the types of supply-chain companies targeted by the
program. The second section explains the requirements (criteria) imposed on companies
which must be satisfied as a priory for being accepted on the GLP. The third section is a
step-by-step procedure for a company to follow in applying to join the program until
completing all requirements, and ultimately become a GLP member. The section
explains the steps JC undertakes before, during, and after the actual audit process of a
company by a designated team of customs auditors (audit team). The forth section is
devoted to Voluntary Disclosure which encourages companies to undertake an internal
audit of all its customs transactions before the actual audit by JC takes place. Based on
the results of its own audit, a company has the opportunity to voluntarily disclose any
errors, omissions or violations to JC. Voluntary disclosure is treated favorably by JC and
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is considered an invaluable mechanism for companies to avoid penalties. After auditing a
company by JC, the audit results may reveal the need for the company to develop and
implement a Compliance Improvement Plan. Section five contains information for
companies on how to develop an acceptable Compliance Improvement Plan. The audit
processes of a company by JC require sampling of customs transactions previously
completed by the company. Section six explains the principles of sampling and the
criteria used by JC in selecting the appropriate sample. Section seven provides
companies with information about the Analytical Study on a company which JC
undertakes before actual audit processes take place. Appendix I contains the Application
Form for the GLP, while Appendix II contains the "GLP Criteria for Inclusions of
Companies on the Golden List".
DEFINITIONS
The terms defined below will be used throughout the rest of this document.
Customs Audit (sometimes called Post-Release Audit)
The audit process of a supply chain company (importer, exporter, Qualified Industrial
Zone Company, customs agent, warehouse operator, transport operator) conducted by an
authorized team of Jordan Customs Auditors. The audit takes place at the audited
company premises and according to a time table agreeable by the company itself and
Jordan JC. The company voluntarily requests its inclusion on the Golden List Program
GLP of JC and agrees to expose itself to this audit. The audit verifies if the company has
implemented "customs due diligence and supply chain security" procedures that meet a
certain pre-established criteria.
Audit Team
A team of Jordan customs officers authorized to perform the audit and verifies if the
company meets the pre-established criteria for inclusion on the GLP.
Voluntary Compliance
A company voluntarily develops and implements "customs due diligence and supply
chain security" procedures for the purpose of joining the GLP and benefiting from the
facilities offered by JC to GLP member companies.
The Preliminary Meeting
A meeting between the company representatives and the audit team that takes place at the
company premises before the actual audit starts. During the meeting the following
activities take place:
• The audit team receives the completed GLP Application Form from the company.
• The audit team receives the completed relevant "customs due diligence and
supply chain security" checklist.
• The audit team explains the audit processes the team intends to perform and the
documents the company required to furnish.
• The audit team and the company agree on a time table to complete all audit steps.
• Contact persons are identified for further communications between JC and the
company.
• The audit team answers to all inquiries made by the company with respect to the
audit procedures.
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The Closing Meeting
A meeting between the company representatives and the audit team that takes place at the
company premises after the actual audit has been completed. During this meeting the
audit team informs the company of the audit results and explains what steps the company
can implement to improve its processes. The audit team may request the company to
submit an improvement plan to rectify weaknesses in its internal control processes.
Compliance Criteria
The GLP has pre-established criteria that a company must meet so that it can be included
on the Golden List. Appendix II contains the official "GLP Criteria for Inclusion of
Companies on the Golden List".
Compliance Improvement Plan
If a company does not meet the GLP pre-established criteria (compliance criteria), a
company may develop an improvement plan so that it can meet the criteria. The
improvement plan must address the weaknesses discovered by the audit team and must be
implemented within a reasonable time. The plan must be agreeable between the company
and the audit team.
Voluntary Disclosure
Before the actual audit commences, a company has the opportunity to voluntarily disclose
to JC any errors, omissions or violations related to its previous customs transactions
which are unknown to JC. Voluntary disclosure will be always treated favorably by JC.
Acceptable Voluntary Disclosure
Is the disclosure that satisfies certain requirements established by JC and approved by the
"voluntary disclosure committee". Acceptable voluntary disclosure applies to the
violations described in Articles 198-202 and paragraphs G & H of Article 204 of Jordan
Customs Law. Voluntary disclosure does not apply to smuggling crimes described in
Articles 203 and 204 (except paragraphs G & H) of Jordan Customs Law.
Voluntary Disclosure Committee
A committee of customs officers formed to review the cases of voluntary disclosure made
by companies.
Voluntary Disclosure Duration
The time duration offered to a company to come forward and disclose any customs errors,
omissions or violations made by the company but not yet known to JC. This duration
normally precedes the date actual audit commences.
Violation
All types of customs violations described in sections 1 and 2 of chapter 13 of Jordan
Customs Law; particular attention is paid to Articles 198 to 202 and Article 204 of Jordan
Customs Law.
Risk Categories
Companies are classified into risk categories in terms of the level of risk they pose from a
customs-transaction view point and based on the audit results. The risk categories are:
1. Low Risk
2. Normal Risk
3. High Risk
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Customs Due Diligence and Supply Chain Security Checklists
As part of the requirements for accepting a company on the GLP, the company must have
well-documented “customs due diligence and supply chain security” procedures, and
these procedures have been already implemented and strictly-followed by the company.
The documented procedures must be in accordance to the relevant “customs due
diligence and supply chain security” checklist. The applicant company must use and
satisfy the relevant checklist requirements. There are six different checklists: importer,
exporter, qualified industrial zone company, customs agent, warehouse operator and
transport operator.
BACKGROUND ON THE GOLDEN LIST PROGRAM (GLP)
What Companies are Targeted by the GLP?
During the second half of 2004, Jordan Customs (JC) has initiated a voluntary, self-
compliance program, called Golden List Program (GLP). The program was targeted at
Jordan supply-chain companies, including:
• Importers
• Exporters
• Transporters and transport operators
• Customs clearing agents (brokers)
• Warehouse operators
• Qualified Industrial Zone (QIZ) manufacturers
What is the Aim of the GLP?
The GLP was intends to trade supply-chain companies, boost and enhance the economy
of Jordan. Jordan trade supply-chain companies "World Customs Organization
()"companies
According to the GLP requirements, supply-chain companies that are exercising customs
due diligence, have supply chain security procedures in place, have a good compliance
history with JC and compliant with Jordan customs law and regulations might qualify to
become a Golden List member. Golden list companies will enjoy a preferred treatment
by Jordan Customs in the form of certain incentives. Companies that do not qualify to
become a member of the Golden List can work jointly with JC to make certain
improvements to enable them to join.
What is the Rationale Behind the GLP? Today, y Jordan companies, especially those
QIZ demanded to supply-chain was developed to meet these demands. In fact, the GLP
meets
Companies that requirements of the "secure" companies
trade supply-chain companies
How Jordan Benefits from the GLP?
The GLP will benefit Jordan in many ways including: Companies. GLP offers Jordanian
companies WCO e and Facilitate Global Trade).
How Your Company May Benefit from Joining the GLP?
your company Customs requirements and supply-you your company he issue of benefits
companies to offer GLP member companies listed below.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
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companies that attained GLP customs border processing. lesser financial securities. status
of a GLP member company).a one-to-one basis. (Note: being offered formal benefits
WHAT ARE THE REQUIREMENTS TO JOIN THE GLP?
The following is a description of the main factors that affect the acceptance of a company
on the GLP. It should be noted that these factors are not the official criteria for
companies' inclusion on the GLP (the official criteria are contained in Appendix II of this
document). Rather, these factors are a general description of the main features required
under the GLP criteria. The factors described below aim at providing companies with a
quick, non-technical idea about what is expected from them; but, do not compose the
official criteria.
Note: JC will undertake an extensive audit on the company to verify the requirement
listed below. The audit takes place at the company premises and, depending on the
company size, may take approximately 3-10 working days to complete.
Factor 1: Company Size/ Business Volume
The GLP is currently open to larger-size companies according to the following
requirements.
For Importers, Exporters and QIZ Companies:
The company must have a large trade volume so that at least one condition of the
following three conditions is fulfilled by such a company:
• The company had at least 100 customs declarations filed with JC during the year
preceding the date of the application to join the GLP.
• The company had at least JD 10 million total of customs declared values (on all
customs declarations) during the year preceding the date of the application.
• The company had at least JD 1 million total of declared customs duties during the
year preceding the date of the application.
For Customs Clearing Agents (Brokers):
The company must have a large trade volume so that at least one condition of the
following four conditions is fulfilled by such a company:
• The company had at least 4,000 customs declarations in total from all customs
centers filed with JC during the year preceding the date of the application.
• The company had at least 800 customs declarations from one customs center filed
with JC during the year preceding the date of the application
• The company had at least JD 50 million total of customs declared values (on all
customs declarations) during the year preceding the date of the application.
• The company had at least JD 5 million total of declared customs duties during the
year preceding the date of the application.
For Transporters/ Transport Operators and Warehouse Operators:
The company must have been in business for at least five years before filing its
application, or has been in business for at least three years provided that the current
number of its full-time employees is 50 or more.
Marketing Jordan's Customs due diligence and Supply Chain Security Standards
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Factor 2: Customs Due Diligence and Supply Chain Security
To join the GLP, a company must develop and implement "customs due diligence and
supply chain security" procedures according to the relevant checklist issued by JC.
Currently, there are six different checklists:
1. Customs Due Diligence & Supply Chain Security Checklist- Import
2. Customs Due Diligence & Supply Chain Security Checklist- Export
3. Customs Due Diligence & Supply Chain Security Checklist- Clearing Agent
4. Customs Due Diligence & Supply Chain Security Checklist- QIZ Company
5. Customs Due Diligence & Supply Chain Security Checklist- Transport Operator
6. Customs Due Diligence & Supply Chain Security Checklist- Warehouse Operator
A company desiring to become a Golden List member must review one or more of the
checklists that is (are) relevant to its business operation. The company then develops and
implements "customs due diligence and supply chain security" procedures addressing the
many questions contained in the relevant checklist(s).
Customs due diligence and supply-chain security procedures are written procedures,
similar to any ISO/ Quality Management procedures, except that they are focused on
Customs and supply-chain security issues.
Note: A separate guide titled "How to Implement Customs Due Diligence and Supply
Chain Security in Your Company" was developed by JC to help your company write its
own procedures to satisfy the requirement of this factor (Factor 2). You can request this
guide from JC.
Factor 3: Customs Transactions Compliance Rates
This is a technical factor that is attained from examining several sample customs
declarations filed by the company in the last three years. Compliance with customs
requirements includes examining compliance rates with customs value, customs
classification (tariff classification), quantity, etc. It also includes the requirement for
good book keeping of all customs declarations and supporting documents.
Factor 4: Documented Internal Control System
This factor verifies that a company has implemented internal control procedures to ensure
business transactions in general, and customs transactions in particular, are performed
with maximum care; and errors, omissions and violations are avoided.
The presence of an internal control system within a company is considered a strong
indicator of the level of commitment of a company towards avoiding mistakes and
obeying all applicable legislation, including Jordan Customs Law.
Factor 5: Company's Acceptance to Undertake a Suitable Improvement Plan
There is no harm for a company to fail meeting the criteria of the GLP as long as the
company is willing to implement a satisfactory compliance improvement plan. JC will
provide the company with all actual audit results, assist the company to develop and
implement a compliance improvement plan, and make all necessary follow ups in
cooperation with the company to ensure that improvements called for by the plan are
implemented.
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If a company is not willing to implement an improvement plan, JC will not be able to
include the company on the GLP.
Factor 6: Company's Success in Implementing its Compliance Improvement Plan
Developing a compliance improvement plan is one thing; implementing the plan is
something else. Thus, the audit team of JC will undertake verification processes, the
extent of which depends on the scope of improvements called for, to make sure that the
compliance improvement plan is actually implemented.
WHAT IS THE PROCEDURE TO JOIN THE GLP?
The following steps outline how a company may join the GLP from the very beginning of
the process until the company officially becomes a member of the Golden List.
Step 1: Company Implements Customs Due Diligence and Supply Chain Security
Procedures
To join the GLP, a company must develop and implement "customs due diligence and
supply chain security" procedures according to the relevant checklist issued by JC.
Currently, there are six different checklists:
1. Customs Due Diligence & Supply Chain Security Checklist- Import
2. Customs Due Diligence & Supply Chain Security Checklist- Export
3. Customs Due Diligence & Supply Chain Security Checklist- Clearing Agent
4. Customs Due Diligence & Supply Chain Security Checklist- QIZ Company
5. Customs Due Diligence & Supply Chain Security Checklist- Transport Operator
6. Customs Due Diligence & Supply Chain Security Checklist- Warehouse Operator
A company desiring to become a Golden List member must review only one checklist;
the checklist that is most relevant to its main line of business. The company should
answer the many questions contained in the relevant checklist. Many of the company
answers will be "no" as the company may not have written standard procedures in place.
The company then develops (writes) and implements its own "customs due diligence and
supply chain security" procedures addressing the many questions contained in the
relevant checklist. Writing the appropriate procedures means turning the many "no"
answers into "yes" answers. The written procedures should be compiled into one
document (procedures manual). The written procedures must be implemented (i.e.,
followed) by all concerned departments in the company. It should be noted that
"Customs due diligence and supply chain security" procedures are similar to any ISO/
Quality Management procedures, except that they are focused on Customs and supply-
chain security issues. After writing the procedures, the company should complete
(answer) the checklist again; this time the responses to the many questions should show
many "yes" answers.
The company should have a copy of the completed checklist (the second checklist which
shows many "yes" answers) and a copy of the procedures manual ready for review by JC.
Note: A separate guide titled "How to Implement Customs Due Diligence and Supply
Chain Security in Your Company" was developed by JC to help your company write its
own procedures. You can request this guide from JC.
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Step 2: Company Completes the GLP Application Form and Notifies JC
The GLP Application Form is contained in Appendix I (an electronic copy of the form is
also available from JC). The company should complete the form as accurately as
possible. The form is generic and can be used by all type companies; thus some
questions may not apply to your company line of business. Irrelevant questions should
be left blank. The completed application form should be kept by the company, and
should not be sent to JC until requested.
At the same time the company should send an official letter (Request Letter) addressed to
the Director General of JC revealing the company's interest in joining the GLP, and
formally requesting JC to undertake all necessary steps to verify company qualifications.
Step 3: JC Forms an Audit Team
When JC receives a Request Letter to join the GLP from a company, JC replies to the
company within 14 days. The reply letter informs the company of the follow-up steps to
be undertaken by JC.
At the same time, JC forms an audit team to undertake all audit processes on the
company to verify if it qualifies for inclusion on the Golden List member companies.
The audit team is formed of at least three customs officers. The audit team members are
qualified and well-trained officers who have, collectively, the following qualifications:
1. Experience with customs procedures.
2. Academic qualification and experience in finance.
3. Experience in financial audit.
4. Experience in computer use and software applications.
Depending on the nature of the audit to be performed and the business line of the
company to be audited, the audit team may seek assistance from qualified customs
officers from JC.
Step 4: JC UNDERTAKES THREE STAGES OF AUDIT
The audit process of a GLP applicant company aims at examining and reviewing selected
business transactions using modern audit techniques. In addition, "customs due diligence
and supply chain security" procedures implemented by the company will be audited as
well. The scope of the audit will be different for the different types of companies
(importers, exporters, QIZ companies, Customs clearing agents (brokers), warehouse
operators and transport operators). Generally, the audit will verify if the company has
implemented adequate measures with respect to:
• Internal audit processes to ensure record keeping and support-documentation
keeping, especially with respect to customs transactions.
• Compliance with Jordan Customs Law and customs regulations and instructions.
• Supply chain security.
The audit normally comprises three different, but complimentary, stages as described
below.
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Stage I: Preparation for the Audit
This stage comprises the following activities:
• One of the audit team members is designated as a contact officer to communicate
with the company that requested formal inclusion on the GLP. The contact
officer sends to the company: (1) the GLP Application Form and (2) the relevant
"customs due diligence and supply chain security" checklist (both items may have
been already completed by the company as stated in Step 2 above). Also, the
contact officer arranges a preliminary meeting with the company to take place at
the company premises.
• The audit team starts an Analytical Study (a study conducted internally by JC
without requesting any data from the company) of the company by reviewing its
customs transactions over the last few years. Then, the audit team discusses the
results of the study and decides on a strategy on how the actual audit should take
place including the roles of the audit team members. The team also identifies the
most important areas to focus on during the audit and how to choose the needed
samples. The Analytical Study and the Sampling are described in more details
later in this document.
• The company has the opportunity to voluntarily disclose (Voluntary Disclosure)
any errors, omissions or violations made by the company in the past but not
known to JC. Voluntary Disclosure is described in more details later in this
document.
• A voluntary disclosure committee composed of a number of customs officers is
formed to review the voluntary disclosure made by the company. The committee
decides if the disclosure is acceptable and informs the company in writing of the
committee's decision. Voluntary Disclosure is described in more details later in
this document.
• A preliminary meeting (see definition of The Preliminary Meeting) takes place at
the company premises between the audit team and the company designated
officers. During the meeting the following activities take place: (1) the audit team
receives the completed GLP Application Form from the company, (2) the audit
team receives the completed relevant "customs due diligence and supply chain
security" checklist and procedures manual, (3) the audit team explains the audit
processes the team intends to perform and the documents the company required to
furnish, (4) the audit team and the company agree on a timetable to complete all
audit steps, (5) contact persons are identified for further communications between
JC and the company, and (6) the audit team answers to all inquiries made by the
company with respect to the audit procedures.
• The audit team reviews the completed GLP Application Form and the completed
relevant "customs due diligence and supply chain security" checklist and
procedures manual.
• The audit team reviews the organization structure of the company which supposed
to be submitted with the completed Application Form. The audit team decides on
the main company units that will be primarily targeted by the audit.
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• The audit team identifies the required samples to be fully audited and according to
the sampling procedure used by JC.
• The company provides adequate office space at its premises for the audit team
during the whole duration of audit.
• The audit team prepares a complete plan for its own use on how the audit will
proceed and identifies the roles and responsibilities of each team member.
• The company is officially informed of the starting time and date of the audit.
Stage II: Actual Audit
This stage comprises the following activities:
• The audit team shows up at the company premises on the pre-arranged time and
date. The audit team reveals to the company contact person an official letter from
JC authorizing the team to undertake the actual audit.
• The audit team starts its audit processes which include, but not limited to: (1)
examination of select customs transactions with all relevant verification
documents, (2) examination of select purchase and sale transactions with all cost
elements involved, (3) payments including cash and documentary letters of credit,
(4) internal audit processes performed by the company itself or by an external
party, (5) supply chain security procedures, (6) examination of documents
protection and record keeping, (7) warehouse documents and book keeping, and
(8) interviewing employees as needed.
• The audit team documents the results of all audit activities. Later, the audit team
writes a report containing audit results and recommendations.
• If the audit team finds out that the company has fulfilled the GLP Criteria, the
company will be identified as a Low-Risk (see definition of Risk Categories) and
will be approved to join the GLP.
• If the company does not fulfill the GLP Criteria because of deficiencies in its
records keeping processes or deficiencies in its internal control processes, then the
audit team will recommend to the company what to do to alleviate the
deficiencies. The company will be identified as a Normal-Risk and will stay so
until all deficiencies have been remedied to the satisfaction of the audit team.
• If the company does not fulfill the GLP Criteria because of errors or omissions
discovered during the audit, then the company will be requested to submit a
Compliance Improvement Plan (described later in this document) to alleviate all
errors or omissions. The company will be allowed a maximum of six months to
implement the plan and remain under the Normal-Risk category during this
period.
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• If the company does not fulfill the GLP Criteria and is not willing to implement a
Compliance Improvement Plan, then the company will be identified as a High-
Risk and will be denied any customs facilities or benefits. The same thing applies
to a company that decided to implement a Compliance Improvement Plan, but
failed to do so within the time period agreed upon by the audit team. It should be
noted that the company has the right in the future to re-submit a satisfactory
Compliance Improvement Plan and request JC to verify its implementation.
Stage III: Follow Up
The work of the audit team does not stop after completing the actual audit of stage II
above. Follow up steps are necessary to make sure that errors, omissions, violations
and deficiencies in the company procedures in general are remedied. The follow up
stage comprises the following activities:
• A closing meeting (see the definition of The Closing Meeting) between the
company representatives and the audit team takes place at the company premises
after the actual audit has been completed. During this meeting the audit team
informs the company of the audit results, the errors and omissions found, the
weaknesses in company procedures, and explains what steps the company can
implement to improve its processes. The audit team may request the company to
submit a Compliance Improvement Plan (described later in this document) to
rectify weaknesses in its processes.
• The audit team prepares a detailed report documenting all activities the team
undertook during the actual audit, the deficiencies or weaknesses found, the
recommended improvements the company should implement, the difficulties
encountered, etc. The report identifies in which risk category the company should
be.
• The audit team, in coordination with the company, makes follow up visits to the
company premises to verify the implementation status of any improvements
agreed upon according to the Compliance Improvement Plan.
• The audit team studies any comments received from the company with respect the
audit itself, the criteria used, the "customs due diligence and supply chain
security" checklist, etc. It should be noted that JC always encourages constructive
comments from the business community to improve its customs processes.
Notes:
• All audit stages (I, II & III) must be completed within a maximum of one-year
duration inclusive of developing and implementing a Compliance Improvement
Plan.
• JC may initiate a follow up audit on any Golden List member company after the
passage of one year from the date the company attained the Golden List status.
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VOLUNTARY DISCLOSURE
Before the actual audit commences, a company has the opportunity to voluntarily disclose
to JC any errors, omissions or violations related to its previous customs transactions
which are unknown to JC. Voluntary disclosure by a company will be always treated
favorably by JC.
Objectives of Voluntary Disclosure
• To make sure that companies understand their obligations and responsibilities
under applicable legislations including Jordan Customs Law.
• To encourage companies to undertake self-compliance audit to discover their
mistakes and disclose them to JC. Voluntary disclosure builds trust between JC
and the trade community.
How Companies Benefit from Voluntary Disclosure
1. Companies improve, and thus expedite, their transactions with customs when they
undertake self-compliance audit because they discover their own mistakes and
remedy them.
2. Self-compliance audit to discover a company own mistakes and remedy them
improves the chances the company could attain the Golden List status.
3. The company saves time and money via smoother transactions with Customs and
via avoiding higher penalties when the mistakes are discovered by JC.
4. JC may waive, or charges the minimum levels of, fines/ penalties when the
mistakes are disclosed by the company itself.
How JC Benefits from Voluntary Disclosure
1. With the escalating trade volume, JC will better utilize its resources. Voluntary
disclosure reduces the work burden of JC.
2. Customs comprehensive audits and investigations to verify violations are quite
expensive and time consuming; JC saves a lot if companies come forward and
disclose.
3. JC officers do not need to dig to discover mistakes; all disclosed mistakes are
"time savers".
4. Hidden mistakes are loss to the Treasury; disclosing mistakes means fulfilling a
company's obligation as a tax payer.
Acceptable Voluntary Disclosure
There are certain requirements that must be satisfied for a voluntary disclosure to be
accepted by JC. These requirements are:
1. The disclosure must be disclosed in writing to JC and within the time duration
offered to a company to come forward and disclose.
2. The disclosing company must identify the type or types of violations it made in
the past and must furnish all related documentation.
3. The voluntary disclosure should contain the following information:
- Type(s) of good(s)
- Customs procedure related to the goods (import for consumption, re-
export, bonded warehouse, under certain trade agreement, etc.)
- Customs declaration number(s), date and the customs center
- Description of how the error or violation had happened
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- The correct information that supposed to be furnished in the first place
instead of the mistaken ones.
4. The disclosed violation is not a smuggling crime as described under Articles 203
and 204 (except paragraphs G & H) of Jordan Customs Law.
5. The company is ready to pay all outstanding (unpaid) customs duties and other
taxes, in addition to any fines (fines may be waived or reduced to the minimum
level) JC imposes.
Official Procedure for Accepting a Voluntary Disclosure
1. JC issues an official acceptance letter to the disclosing company, and the company
legal representative must sign the delivery receipt of this letter.
2. The official acceptance letter formally indicates if JC intends to waive, or apply
the minimum levels of, any fines pertaining to the disclosed case.
3. The official acceptance letter formally indicates a time duration during which the
company must complete all formalities with respect to the case, including the
payment of duties, taxes and fines. The actual audit for the GLP will not
commence until this step is fulfilled.
4. After the company fulfills the previous step (step 3), JC informs the audit team to
discard the disclosed case from the audit.
5. After the company fulfills the previous step 3, JC informs the audit team to
discard the disclosed case from the GLP Criteria (i.e., the disclosed case will not
affect the company negatively with respect to joining the GLP).
Non Acceptance of Voluntary Disclosure
JC will not accept a voluntary disclosure made by a company under the following
condition:
1. If the disclosed case is a smuggling crime as described under Articles 203 and 204
(except paragraphs G & H) of Jordan Customs Law.
2. If the disclosed case was already known to JC even though an action is not yet
taken.
3. If the disclosed information and documents pertaining to the disclosed case are
deficient, or the company was not able to furnish appropriate documents.
Notes:
• JC will inform the disclosing company in writing of its rejection to the disclosed
case. The letter will reveal the reasons for the rejection.
• JC will accept reviewing a previously rejected disclosure case if new information
or documents become available to warrant such a review.
COMPLIANCE IMPROVEMENT PLAN
If a company does not meet the GLP Criteria (contained in Appendix II), the company
may develop an improvement plan so that it can meet the criteria. The improvement plan
must address the weaknesses discovered by the audit team and must be implemented
within a reasonable time. The plan must be agreeable between the company and the audit
team.
The compliance improvement plan is a joint effort between JC and the audited company.
The audit team, after actual audit is completed, will meet with company officers and
discuss with them the audit results. The audit team will recommend to the company what
improvements or changes should take place to improve company processes. Even though
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the company itself is primarily responsible for developing and implementing a
compliance improvement plan, JC will assist the company by all means to ensure the
quality of the improvements the company intends to make.
Description of the Compliance Improvement Plan
Compliance improvement plan is a document containing the company plans to ameliorate
all deficiencies found by the audit team during the actual audit of the company. The
important elements of an acceptable improvement plan include: the title of the
improvement element which must reveal the subject matter of the needed improvement,
the steps undertaken by the company to ameliorate the identified deficiency along with
any relevant supporting documents, and the expected date to completely implement each
improvement element.
Improvement Plan Overall Objective
The overall objective of the improvement plan is to improve the company internal control
processes with respect to customs transactions and supply chain security based on the
results of JC audit and any voluntarily disclosed cases by the company.
Allowed Duration for Plan Implementation
From the date a compliance improvement plan is approved (accepted) by JC, a company
has a maximum of six months duration to implement all the improvements contained in
the plan. The company remains within the Normal-Risk category during this period. The
company may request, and JC may accept, extending the six months duration if deemed
necessary.
If the company did not implement all the improvements contained in the plan within the
allowed six months duration, and did not apply for extension, JC will under-grade the
company into the High-Risk category.
Components of Compliance Improvement Plan
The important elements of an acceptable compliance improvement plan are:
• Company name and tax identification number.
• The title(s) of the improvement(s) which must reveal the subject matter of the
needed improvement(s).
• The name and title of the company employee who is responsible for undertaking
the required improvement(s).
• The steps undertaken by the company to ameliorate the identified deficiency along
with any relevant supporting documents.
• The criteria to be used by the company to measure the level of improvement to all
affected processes as a result of plan implementation.
• The expected date to completely implement the required improvement (6 months
maximum allowed duration to complete all required improvements).
• The signature of the company's authorized representative along with the date and
company seal.
Depending on the extent of the improvement required, JC may send a full audit team or
one member of the team to the company to verify improvement implementation.
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PRINCIPLES AND CRITERIA OF CUSTOMS TRANSACTIONS SAMPLING
The actual audit of a company aims primarily at ensuring that the company is compliant
with customs requirements as stipulated by Jordan Customs Law, customs regulations and
instructions, and supply chain security requirements. The audit process requires the audit
team to depend on a select number of sample customs transactions performed by the
company during the last few years. The selected sample transactions will be examined by
the audit team in terms of their compliance with respect to a number of factors including:
1. The correct types of goods and their tariff classifications.
2. The correct quantities and declaring the whole quantity.
3. The correct declaration under duty-free or duty-reductions under the various trade
agreements.
4. The correct country of origin and the correct application of country of origin
rules.
5. The correct value including all cost factors.
6. The proper records keeping of all pertaining documents for future review.
A company internal control system will be verified as to its adequacy to prevent errors,
omissions and violations, especially with respect to the afore-listed factors. If the internal
control system of a company is strong and comprehensive, the number of selected sample
transactions by the audit team would be smaller. However, if the internal control system
is loose, then the audit team will select a larger number of transactions for audit.
Sample Selection
Sample transactions will be selected randomly according to the well-known methods of
statistical sampling. Simple random sampling or more sophisticated blocked random
sampling may be employed depending on the complexity of the customs transactions.
Application
The sampling will be applied to different types of company records, including:
1. Customs transactions filed with JC over the last three years preceding the audit.
2. Accounting and financial records over the last three years preceding the audit.
3. Business communications including letters sent and received.
4. Computerized and non-computerized accounting and financial systems.
5. Shipping, insurance and all documents pertaining to a particular business
transaction.
Sample Size
The number of customs transactions to be pulled out for critique examination by the audit
team will vary from company to company. However, the sample size will be smaller for
a company that has good compliance record with JC; and for a company that has a strong
and comprehensive internal control system.
Evaluation of Compliance Level
After audit completion, the level of company compliance will be assessed against the
GLP Criteria. Generally, the compliance level is divided into three classes from best to
worst:
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1. The company internal control system is well documented and the company has
succeeded in all sample tests according to the GLP Criteria. In this case the
company is considered highly compliant and most likely will not need a
Compliance Improvement Plan.
2. The company has an internal control system, but the system is loose and not well
documented. Even if the company has succeeded in all sample tests according to
the GLP Criteria, the company will be required to implement a Compliance
Improvement Plan to enhance its internal control system.
3. The company does not have an internal control system or its system is weak. The
company would need a comprehensive Compliance Improvement Plan.
THE ANALYTICAL STUDY
As stated above, as soon as a company requests formal inclusion on the GLP, the audit
team starts an Analytical Study of the company. The analytical study is performed
internally within the JC, and precedes the actual audit which takes place at the company
premises. The analytical study is more applicable to importers, exporters and qualified
industrial zone companies. In the study, JC focuses on the following subjects/ issues
arranged according to importance from 1 to 11:
1. Tariff classifications that have the highest duty rates, and the tariff classifications
that have free-duty or reduced-duty rates according to trade agreements utilized by
a company.
2. Customs transactions where customs values are high.
3. Customs transactions under bi-lateral and multi-lateral trade agreements with
special attention to the country of origin.
4. Methods for calculating shipping expenses.
5. The accuracy of using tariff classifications and exemptions.
6. The customs center at which the highest number of customs transactions took
place.
7. Goods quantities, values and tariff classifications for goods deposited at public
and private warehouses.
8. Cancelled customs transactions.
9. Customs transactions for goods in-transit.
10. Customs transactions for goods entering the country for re-export purposes and
for deposit at free zone areas.
11. Any subjects or issues the audit team believes important to the business operation
of the company.
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Appendix I
GLP Application Form
Notes:
• All information provided on this form shall be treated with strict confidentiality by
Jordan Customs.
• Questions not relevant to your company can be left blank.
Part One: General Information
Company Name:
Business Activity (Import, Export, Customs Clearance, Transport, Warehousing, QIZ):
Address:
Telephone: Fax:
E-Mail: Website:
Company Registration Number:
Import Card Number:
Income Tax Number:
Sales Tax Number:
Part Two: Organization Structure
1. Organization structure (provide a copy and/ or a chart showing all company
departments and sections).
2. Company legal form (public share holding, limited share holding, individual
owner, etc.):
3. Paid-up capital (Jordanian Dinar):
4. Names of all authorized signatories:
5. Names of partners (for non pubic share holding companies only):
6. Do company partners have shares/ ownership rights in other companies (other
than public share holing companies)? If "yes" provide details.
7. Nature of business sector (trade, manufacturing, service, etc.):
8. Names of local/ international companies that are legally connected to your
company (subsidiaries, parent company, etc.):
9. Name of external audit company appointed to audit your company (mention the
name and contact information of the chief auditor):
10. Names and contact information of the company officers who prepared and
completed this Application Form:
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11. Name, job title, address and telephone number of your company officer who has
been appointed to represent your company with respect to all follow up matters
related to this Application Form and all subsequent steps:
12. Does your company have branches (mention names and addresses)
13. Does your company hold any Quality Management Certificates (ISO or Similar).
If "yes", mention them.
14. Does your company have a warehouse or a storage facility for your own company
use?
15. Were there any courts cases raised/ registered against your company (in the past
or still pending judgment)? If "yes", provide details.
Part Three: General Customs-Related Information
1. Do you contract external customs clearance agents to undertake customs clearance
duties for your goods? If "yes", mention names of all customs clearance
companies.
2. Name, address and contact information of the clearing agent's officer responsible
for your company customs clearance matters
3. Do you pay your customs duties directly to customs or via your clearance agent
company
4. Do you pay your clearing agent company for its services according to the
instructions of Jordan Customs? Explain and attach verification documents.
5. If your answer to question 1 of this part is "no", do your company employees
undertake customs clearance duties for your goods and according to the
authorization letter issued to them by Jordan Customs Mention the names of these
employees and attach copies of their authorization letters.
6. With respect to clearing your goods via Customs, does your company deal with
external parties (individuals or companies) that are Import Card-Holders Mention
the names of these parties along with their Tax ID numbers.
7. Types and nature of goods your company imports, exports or deals with (if many,
just mention the main types only)
8. What are the types of customs entry procedures your company use (i.e., release of
goods for free circulation, temporary admission, customs bonded warehouse,
export, etc.)
9. Mention Tax Identification Number(s) your company uses on its customs
declarations.
10. The prices of goods you fill on your customs declarations; are they the prices
actually paid or are they estimates (or both)
11. What is the main method used by Jordan Customs in identifying the customs
value of your imported goods according to Jordan Customs Law
- Declared price according to the purchase contract
- Value of identical goods
- Value of similar goods
- Last resort method
- Other
12. What is/ are the delivery term(s) your company uses for its imports (Ex-Factory,
FOB, C&F, etc.)
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13. Are there any conditions, circumstances or stipulations that affect your company's
ability to purchase any of your imported goods? Mention them with identifying
the names of goods affected.
14. Are you aware that the customs declared value must include all customs value
elements (price actually paid + shipping expenses + commissions + …; according
to article 28 of Jordan Customs Law)
15. Are there any royalties or licensing fees pertaining to your imported goods paid to
the exporter? Mention the names of goods and their country of Origin.
16. Did your company (as the importer) provide the exporter with any assists that are
used in the manufacturing/ production of your imported goods (raw materials,
models, molds, designs, etc.)? Did you include all assists in the price actually
paid? Mention the types of assists provided and the types of imported goods in
which the assists were used.
17. What payment modes mainly used to pay for your imported goods (cash, cash
transfers via a bank, documentary letter of credit, etc.)
18. Did your company ever obtain a tariff classification decision issued by Jordan
Customs or the World Customs Organization with respect to any of your imported
goods (regardless if the decision was issued before or after the goods were
imported)? Mention types of goods.
19. Do you consult external experts with respect to the tariff classification of your
imported goods or do you depend mainly on your customs clearance agent
(regardless if this agent is an external party or an employee of your company) If
"yes", provide details.
20. Does your company benefit from any customs duty reductions or duty-free
statuses allowed for by Jordan Customs Law or other Legislations
21. Do any of your imported goods require laboratory analyses to identify tariff
classification?
22. When filing customs declarations, do you declare accurately the country of origin
of all your imported goods? Explain if necessary.
23. Are the goods imported by your company subject to any trade agreements
between Jordan and the country of export? Mention these agreements.
24. Do your imported goods shipped directly from the country of origin to Jordan or
do they have to pass through other countries
25. Is there a separate department in your company that is responsible for purchasing,
trade transaction arrangements, contracts and prices? Name the department.
26. Are your imported goods cleared via one, or more than one, customs center Name
all relevant customs centers.
27. Does your company benefit from any facilities offered by Jordan Customs or other
Jordan tax agencies (for example, postponing the payment of sales tax) Mention
the number and date of the instructions letter that offered the facility and the name
of the relevant agency.
28. If your imported goods are subject to other agency requirements (Ministry of
Health, Ministry of agriculture, Jordan Institute of Standards and Metrology, etc.),
have any of your declared goods ever rejected by any of these agencies during the
last three years? If "yes", mention the relevant declarations' numbers and the
customs centers where they were filed.
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Did your company withdraw (i.e., cancelled) more than 10 customs declarations in one
year during any of the last three years? If "yes", mention the number of declarations
withdrawn and in which year(s).
29. Have your company been subjected to a "material violation" fine of JD 1,000 (one
thousand) or more by Jordan Customs during the last three years (as a result of
discrepancies in customs value, tariff classification, quantities, country of origin,
etc.)? If "yes", describe the violation, the amount of fine paid and the year.
Part Four: Company Records Keeping System
1. Does your company keep the following types of accounting records?
- General daily records
- General ledger
- Daily purchasing
- Daily outstanding payments
- Daily payments (cash, letter of credit, etc.)
- Warehouse record (sending and receiving receipts)
- Quarterly and annual financial statements
- Daily sales
2. Does your company keep all financial and accounting records for adequate time
period as stipulated by the Laws of Jordan? If "no", explain.
3. Does your company keep all audited financial statements? If "no", explain.
4. Is your company financial and accounting system fully or partially computerized?
Explain.
5. Is there a specific department or division in your company that is responsible for
records keeping with respect to imports, exports and customs processes? If "yes",
name the department or division.
6. Since when did your company officially start its records keeping processes?
7. Summarize your company's policy with respect to customs records keeping,
storage, moving and displacing records, records destruction, etc.?
8. Where does your company keep its records?
9. Does your company keep all records and documents pertaining to its customs
transactions? Answers "yes/ no" to the following:
- Commercial letters pertaining to imports and exports?
- Purchasing orders?
- Shipping documents?
- Pro-forma invoices?
- Goods' receiving documents?
- Packing lists?
- Goods catalogs and technical information?
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- Invoices?
- Payments' documents and records?
- Documents and records of commissions paid or received?
- Bank transfers?
- Documents and records of any payments made for imported goods?
10. Contracts:
- Does your company keep all purchase/ sale contracts?
- Does your company keep all contracts authorizing the use of any
intellectual property rights or any certifications?
- Do your company contracts contain the purchase/ sale prices?
- Does your company keep added-value contracts to your imports (plans
and designs, research studies, management fees, etc.)?
- Does your company keep all directly- and indirectly-related records to
your import and export transactions?
11. Do have written procedures on how to retain and keep your company records?
12. Do you document when and how your record keeping procedures are changed?
13. Are all your company documents and records officially certified (stamped or
sealed) by your company?
14. Do you have written procedures with respect to cancelling records, financial and
trade documents?
15. If your company financial recording system is computerized, do you keep backup
copies of all recorded data?
16. Do you have written procedures with respect to how to discover errors and how
to rectify them?
17. What are the procedures you follow when errors in your records are discovered?
18. Does your company have an internal audit system?
19. If your company uses any of the "outstanding duty" customs entry procedures
(i.e., temporary admission, customs bonded warehouse, re-export, etc.), does your
warehouse recording procedures accumulate/ reduce quantities and types in
connection with what has been originally reported on customs declarations?
20. Does your company have due diligence procedures with respect to documents
and records keeping processes?
21. Does your company fulfil its duties with respect to income-return and sales tax?
Attach last statement.
22. Are your company accountings procedures allow for identifying employees
accountabilities/ responsibilities; especially when errors are discovered?
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Part Five: Internal Audit System
1. Does your company have an internal audit department/ section/ individual that
undertakes internal audit processes? If "yes", identify the name.
2. Does your company audit all customs transactions after completion according to
customs instructions? If "yes", identify the department/ section/ individual
responsible for this task.
3. Identify your company policies and procedures with respect to customs
transactions?
4. Identify your company procedures to ensure that all cost factors (commissions,
assists, licensing fees, intellectual property rights fees, etc.) are accurately
declared to Jordan Customs?
5. What are the procedures your company follows to ensure the effectiveness and
integrity of its internal and external audit systems
Part Six: Data Processing Systems
1. Does your company keep documents and/ or data records electronically? If "yes",
identify them.
2. Explain the relationship(s) between the different data bases your company has.
3. Does your company have a department/ section/ individual that undertakes
electronic data maintenance processes? If "yes", identify the name.
4. Attach a data flow chart showing how your company data flows within your
company electronic system(s)
5. What are the electronic mechanisms your company uses for data storage and
transfer
6. Does your company have an authorization system to control entry into your
company electronic system and data?
7. Identify the person responsible for furnishing and maintaining employees'
electronic data storage passwords?
8. Does your company retain backup copies of your company data bases? If "yes",
where do you keep them?
9. Identify the name and contact information for your company employee who is
authorized to release information to Jordan Customs with respect to your company
data processing and maintenance systems.
We, (company name), certify that all information provided on this form are correct and
take full responsibility for its accuracy.
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Appendix II
GLP Criteria for Inclusion of Companies on the Golden List
SECTION A: IMPORT, EXPORT AND QIZ COMPANIES
This section applies to importers, exporters and Qualified Industrial Zone (QIZ)
companies.
Part I: Acceptance of Applications to Join the Golden List Program
JC will not perform any audits on any company for the purpose of joining the Golden List
Program unless the company satisfies the conditions described in this section.
The application by a company to join the Golden List Program will not be accepted, and
thus will not be followed through by JC, unless the following conditions are fulfilled by
such a company:
1. The company must have a large trade volume so that at least one condition of the
following three conditions is fulfilled by such a company:
• The company had at least 100 customs declarations filed with JC during the year
preceding the date of the application.
• The company had at least JD 10 million total of customs declared values (on all
customs declarations) during the year preceding the date of the application.
• The company had at least JD 1 million total of declared customs duties during the
year preceding the date of the application.
2. The company must have an acceptable compliance rate, equal to or exceeding 95%,
for all customs declarations during the year preceding the date of the application,
according to the stipulations A, B and C below:
A) the percentage of the difference in customs duties to the total declared customs
duties does not exceed 5% (compliance rate of 95% or more).
B) The percentage of the difference in customs bonds/ guarantees to the total
required bonds/ guarantees (for duty-unfulfilled or export declarations) does not
exceed 5% (compliance rate of 95% or more).
C) the percentage of the difference in declared values to the total declared values
does not exceed 5% (compliance rate of 95% or more).
In other words, the compliance rate (in percentage points) according to A, B and C
above must equal or exceed 95%.
If any one of the stipulations A, B or C is not satisfied, but the compliance rate is
still 90% or above, then stipulation D below will be applied.
D) The percentage of the number of declarations with error(s) to the total number of
declarations filed does not exceed 5% (compliance rate of 95% or more).
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3. The company was not subjected to litigation by JC where the litigation case involves a
fine exceeding 1% of the declared value. This condition applies to all customs
declarations filed by the company during the 3-year period preceding the date of the
application.
4. The company has been in business for at least five years before filing its application,
or has been in business for at least three years provided that the current number of its
full-time employees is 50 or more.
5. The company passes a preliminary inspection by JC to identify if basic "customs due
diligence and supply chain security" procedures are already in place to warrant full-
scale audit.
6. The company has already implemented a “customs due diligence and supply chain
security” procedures to guarantee that reasonable care is being exercised by the
company with respect to its transactions with customs and its obligations toward
securing its supply chain. The company must have these procedures documented and
must present a copy to JC for review.
Part II: Criteria for Inclusion on the Golden List
Once the application by a company to join the Golden List Program is accepted by JC
(after satisfying the conditions of Part I above), JC will initiate an audit process as
described in the "Golden List Guide" available from Jordan Customs. At the end of the
audit process the company will be approved for inclusion on the Golden List only after
satisfying the conditions described in this section.
To be approved for inclusion on the Golden List, a company must satisfy the following
criteria:
1. The company must have a well-documented “customs due diligence and supply chain
security” procedures, and these procedures have been already implemented and
strictly-followed by the company. The documented procedures must be in accordance
to the “customs due diligence and supply chain security” checklist prepared by JC for
this purpose. According to the checklist, the company must satisfy the requirements
A, B and C below.
A) The company must be 100% compliant with the “A” rated (Fundamental)
requirements of the checklist (see definitions below).
B) The company must be either 100% compliant with the “B” rated (Important)
requirements, or else, provide a satisfactory improvement plan to guarantee
compliance with these requirements within a reasonable time period agreed
between JC and the company.
C) Though not mandatory, the company may comply with the “C” rated (Desirable)
requirements for the purpose of attaining additional benefits from JC (in addition
to the benefits available to Golden List companies).
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Definitions of the A, B and C Requirements:
A-Rated Requirements: the requirements designated by the letter “A” in the “customs
due diligence and supply chain security” checklist are considered “fundamental” and the
company must have a documented and strictly-implemented procedures addressing these
requirements. An improvement plan is not adequate and is not acceptable to address
these fundamental requirements.
B-Rated Requirements: the requirements designated by the letter “B” in the “customs
due diligence and supply chain security” checklist are considered “important” and the
company must ultimately have a documented and strictly-implemented procedures
addressing these requirements. If the company is not 100% compliant with these
requirements, then an improvement plan by the company can be accepted by JC if such a
plan addresses these important requirements in full and the plan is implemented within a
reasonable time period.
C-Rated Requirements: the requirements designated by the letter “C” in the “customs
due diligence and supply chain security” checklist are considered “desirable” and the
company is encouraged to comply with them in the future. These requirements are not
mandatory for the company to join the Golden List, however, JC is willing to negotiate
additional benefits to be offered to the companies that respond to these requirements.
2. The company must be compliant with the customs-transaction measurements based on
the samples audited by the customs audit team and according to the criteria of
Appendix I.
Note: JC reserves the right to remove any company from the Golden List if the company
seizes compliance with the aforementioned criteria.
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SECTION B: CUSTOMS CLEARING AGENTS, WAREHOUSE OPERATORS
AND TRANSPORT OPERATORS
This section applies to customs clearing agents, warehouse operators and transport
operators.
Part I: Acceptance of Applications to Join the Golden List Program
JC will not perform any audits on any company for the purpose of joining the Golden List
Program unless the company satisfies the conditions described in this section.
The application by a company to join the Golden List Program will not be accepted, and
thus will not be followed through by JC, unless the following conditions are fulfilled by
such a company:
Part I-I: For Customs Clearing Agents
1. The company must have a large trade volume so that at least one condition of the
following four conditions is fulfilled by such a company:
• The company had at least 4,000 customs declarations in total from all customs
centers filed with JC during the year preceding the date of the application.
• The company had at least 800 customs declarations from one customs center filed
with JC during the year preceding the date of the application
• The company had at least JD 50 million total of customs declared values (on all
customs declarations) during the year preceding the date of the application.
• The company had at least JD 5 million total of declared customs duties during the
year preceding the date of the application.
2. The company must have an acceptable compliance rate for all customs declarations
during the year preceding the date of the application. The following procedure is used
to identify if the compliance rate is acceptable or not:
A) the percentage of the difference in declared values to the total declared
values is calculated.
B) the percentage of the difference in customs duties to the total declared
customs duties is calculated.
The percentage of step A is subtracted from the percentage of step B. If the result is
zero or less the company is considered compliant. If the result is between zero and
5%, then the calculation in step C below will be performed:
C) the percentage of the number of declarations with error(s) to the total
number of declarations filed (only errors that affect customs duty will be
considered).
If the result of step C is 5% or less the company is considered compliant;
otherwise, the company is noncompliant.
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3. The company is not currently under litigation by JC for its direct involvement in a
“material” breach of customs law.
4. The company has been in business for at least five years before filing its application,
or has been in business for at least three years provided that the current number of its
full-time employees is 50 or more.
5. The company passes a preliminary inspection by JC to identify if basic "customs due
diligence and supply chain security" procedures are already in place to warrant full-
scale audit.
6. The company has already implemented a “customs due diligence and supply chain
security” procedures to guarantee that reasonable care is being exercised by the
company with respect to its transactions with customs and its obligations toward
securing its supply chain. The company must have these procedures documented and
must present a copy to JC for review.
Part I-II: For Transporters and Transport Operators
The compliance of these companies depends largely on their compliance with the
"customs due diligence and supply chain security" checklist for transporters and transport
operators, in addition to the following requirements:
1. The company is not currently under litigation by JC for its direct involvement
in a “material” breach of customs law.
2. The company has been in business for at least five years before filing its
application, or has been in business for at least three years provided that the
current number of its full-time employees is 50 or more.
3. The company passes a preliminary inspection by JC to identify if basic
"customs due diligence and supply chain security" procedures are already in
place to warrant full-scale audit.
4. The company has already implemented a “customs due diligence and supply
chain security” procedures to guarantee that reasonable care is being exercised
by the company with respect to its transactions with customs and its
obligations toward securing its supply chain. The company must have these
procedures documented and must present a copy to JC for review.
5. The company has a business volume large enough (compared to other
companies) to warrant the effort by JC.
6. The company operates a minimum of 50 trucks.
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Part I-III: For Warehouse Operators
The compliance of these companies depends largely on their compliance with the
"customs due diligence and supply chain security" checklist for warehouse operators, in
addition to the following requirements:
1. The company is not currently under litigation by JC for its direct involvement
in a “material” breach of customs law.
2. The company has been in business for at least five years before filing its
application, or has been in business for at least three years provided that the
current number of its full-time employees is 50 or more.
3. The company passes a preliminary inspection by JC to identify if basic
"customs due diligence and supply chain security" procedures are already in
place to warrant full-scale audit.
4. The company has already implemented a “customs due diligence and supply
chain security” procedures to guarantee that reasonable care is being exercised
by the company with respect to its transactions with customs and its
obligations toward securing its supply chain. The company must have these
procedures documented and must present a copy to JC for review.
5. The company has a business volume large enough (compared to other
companies) to warrant the effort by JC.
Part II: Criteria for Inclusion on the Golden List
Once the application by a company to join the Golden List Program is accepted by JC
(after satisfying the conditions of Part I above), JC will initiate an audit process as
described in the "Golden List Guide" available from Jordan Customs. At the end of the
audit process the company will be approved for inclusion on the Golden List only after
satisfying the conditions described in this section.
To be approved for inclusion on the Golden List, a company must satisfy the following
criteria:
1. The company must have a well-documented “customs due diligence and
supply chain security” procedures, and these procedures have been already
implemented and strictly-followed by the company. The documented
procedures must be in accordance to the relevant “customs due diligence and
supply chain security” checklist prepared by JC for this purpose. According
to the relevant checklist, the company must satisfy the requirements A, B and
C below.
A) The company must be 100% compliant with the “A” rated (Fundamental)
requirements of the checklist (see definitions below).
B) The company must be either 100% compliant with the “B” rated (Important)
requirements, or else, provide a satisfactory improvement plan to guarantee
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compliance with these requirements within a reasonable time period agreed
between JC and the company.
C) Though not mandatory, the company may comply with the “C” rated (Desirable)
requirements for the purpose of attaining additional benefits from JC (in addition
to the benefits available to Golden List companies).
Definitions of the A, B and C Requirements:
A-Rated Requirements: the requirements designated by the letter “A” in the “customs
due diligence and supply chain security” checklist are considered “fundamental” and the
company must have a documented and strictly-implemented procedures addressing these
requirements. An improvement plan is not adequate and is not acceptable to address
these fundamental requirements.
B-Rated Requirements: the requirements designated by the letter “B” in the “customs
due diligence and supply chain security” checklist are considered “important” and the
company must ultimately have a documented and strictly-implemented procedures
addressing these requirements. If the company is not 100% compliant with these
requirements, then an improvement plan by the company can be accepted by JC if such a
plan addresses these important requirements in full and the plan is implemented within a
reasonable time period.
C-Rated Requirements: the requirements designated by the letter “C” in the “customs
due diligence and supply chain security” checklist are considered “desirable” and the
company is encouraged to comply with them in the future. These requirements are not
mandatory for the company to join the Golden List, however, JC is willing to negotiate
additional benefits to be offered to the companies that respond to these requirements.
2. The company must be compliant with the customs-transaction measurements based
on the samples audited by the customs audit team and according to the criteria of
Appendix I.
Note: JC reserves the right to remove any company from the Golden List if the company
seizes compliance with the aforementioned criteria.
See Below
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Appendix I
Audit Results Audit Results After Improvement Plan Implementation
Notes Improvement Plan
Customs and Supply Chain Security Requirements Non
Compliant
Under
Improvement
Plan
Compliant/
Percentage
Non
Compliant In Progress Completed
Compliant
Customs Requirements/ General
Supply Chain Security
Physical Security
Personnel Security
Procedures security
Documents Security
Customs Value
(Samples)
Equation (1)*
Equation (2)*
Tariff Classification
Equation (3)*
Equation (2)
Exemptions/ Lower Tariff
Procedures
Equation (3)
Equation (2)
Customs Agreements (Samples)
Equation (3)
Equation (2)
Quantities (Samples)
Equation (1)
Equation (2)
Country of Origin
Documentation and Record Keeping System
* Equations Listed Below
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Customs Transaction Measurement Equations
Equation (1):
100 - (Differences in Values Discovered/ Total Declared Values) * 100
The result of equation (1) must be 95% or more. If the result is 90% to 95%, equation (2)
below will be applied.
Equation (2):
100 – (Number of Sampled Declarations with Error/ Total Number of Samples) * 100
The result of equation (2) must be 95% or more.
Equation (3):
100 – (Differences in Duties Discovered/ Total Declared Duties) * 100
The result of equation (3) must be 95% or more. If the result is 90% to 95%, equation (2)
above will be applied.
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APPENDIX E
Golden List Program of
Jordan Customs
How to Implement Customs Due Diligence and Supply Chain Security
in Your Company
A Guide
For International Trade Supply Chain Companies
(Importers, Exporters, Qualified Industrial Zone Companies, Customs Agents,
Warehouse Operators and Transport Operators)
Prepared by:
Risk Management Directorate of
Jordan Customs
In Cooperation with:
USAID-Funded AMIR Program of Jordan
2005
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PREFACE
Jordan Customs Law No. 20 for the year 1998 allows Jordan Customs (JC) to perform cargo
physical inspections selectively based on pre-established risk management criteria. Jordan
foreign trade volumes escalate and thus JC will not have the capacity or the resources to
physically inspect every cargo shipment. To the contrary, JC believes that inspecting every
cargo shipment will hamper trade and will have unfavorable consequences to Jordan
economy. The Risk Management Directorate within JC was established in 2001 with the
vision of facilitating cargo inward and outward flow while protecting the people of Jordan
and the income of the Treasury. Low risk shipments will enjoy minimal border processing
time in addition to other benefits as permitted by the Law.
During the second half of 2004, JC has initiated a voluntary, self-compliance program, called
Golden List Program (GLP). The program was targeted at Jordan supply-chain companies;
including importers, exporters, Qualified Industrial Zone (QIZ) manufacturers, transporters
and transport operators, customs clearing agents (brokers), and warehouse operators. The
primary aim of the GLP was promoting standards 's trade with other countries. "World
Customs Organization ()"companies and thus, will be treated JC and as well
According to the GLP requirements, supply-chain companies that are exercising customs due
diligence, have supply chain security procedures in place, have a good compliance history
with JC and compliant with Jordan customs law and regulations may qualify to become a
Golden List member. Golden list companies will enjoy a preferred treatment by Jordan
Customs in the form of certain incentives. Companies that do not qualify to become a
member of the golden list can work jointly with JC to make certain improvements to enable
them to join.
Companies are strongly encouraged to voluntarily join the GLP. Doing so indicates that a
company has a strong sense of responsibility towards complying with customs legislation and
supply-chain security needs. It also indicates that a company has the desire and ability to
implement the state-of-the-art best practices.
As part of the criteria for accepting a company on the GLP, the company must have well-
documented “customs due diligence and supply chain security” procedures, and these
procedures have been already implemented and strictly-followed by the company. This
guide is intended to assist all types of supply-chain companies (importers, exporters, customs
clearing agents, QIZ companies, transporters and transport operators, and warehouse owners
and operators) in developing and implementing their own "customs due diligence and supply
chain security" procedures. The guide contains three main sections; the first section is a brief
background on the GLP, the second section describes how a company could implement its
own customs due diligence procedures, and the third section describes how a company could
implement its own supply-chain security procedures.
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BACKGROUND ON THE GOLDEN LIST PROGRAM (GLP)
What Companies are Targeted by the GLP?
During the second half of 2004, Jordan Customs (JC) has initiated a voluntary, self-
compliance program, called Golden List Program (GLP). The program was targeted at
Jordan supply-chain companies, including:
• Importers
• Exporters
• Transporters and transport operators
• Customs clearing agents (brokers)
• Warehouse operators
• Qualified Industrial Zone (QIZ) manufacturers
What is the Aim of the GLP?
The GLP was intends to trade supply-chain companies, boost and enhance the economy of
Jordan. Jordan trade supply-chain companies "World Customs Organization ()"companies
According to the GLP requirements, supply-chain companies that are exercising customs due
diligence, have supply chain security procedures in place, have a good compliance history
with JC and compliant with Jordan customs law and regulations might qualify to become a
golden list member. Golden list companies will enjoy a preferred treatment by Jordan
Customs in the form of certain incentives. Companies that do not qualify to become a
member of the golden list can work jointly with to make certain improvements to enable
them to join.
What is the Rationale Behind the GLP? Today, y Jordan companies, especially those QIZ
demanded to supply-chain was developed to meet these demands. In fact, the GLP meets
Companies requirements of the "secure" companies
trade supply-chain companies
How Jordan Benefits from the GLP?
The GLP will benefit Jordan in many ways including: Companies. GLP offers Jordanian
companies WCO e and Facilitate Global Trade).
How Your Company May Benefit from Joining the GLP?
your company's Customs requirements and supply-you your company he issue of benefits
companies to offer GLP member companies listed below.
companies that attain GLP: a one-to-one basis. (Note: being offered formal benefits
What are the Requirements to Join the GLP?
The following is a description of the main factors that affect the acceptance of a company on
the GLP. It should be noted that these are not the official criteria for companies' inclusion on
the GLP (the official criteria are contained in the document named "How to Join the Golden
List Program") rather, they are a general description of the main features required under the
GLP criteria. The factors described below aim at providing companies with a quick, non-
technical idea about what is expected from them; but, do not compose the official criteria.
Note: JC will undertake an extensive audit on the company to verify the requirement listed
below. The audit takes place at the company premises and, depending on the company size,
may take approximately 3-10 working days to complete.
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Factor 1: Company Size/ Business Volume
The GLP is currently open to larger-size companies according to the following requirements.
For Importers, Exporters and QIZ Companies:
The company must have a large trade volume so that at least one condition of the following
three conditions is fulfilled by such a company:
• The company had at least 100 customs declarations filed with JC during the year
preceding the date of the application to join the GLP.
• The company had at least JD 10 million total of customs declared values (on all
customs declarations) during the year preceding the date of the application.
• The company had at least JD 1 million total of declared customs duties during the
year preceding the date of the application.
For Customs Clearing Agents (Brokers):
The company must have a large trade volume so that at least one condition of the following
four conditions is fulfilled by such a company:
• The company had at least 4,000 customs declarations in total from all customs centers
filed with JC during the year preceding the date of the application.
• The company had at least 800 customs declarations from one customs center filed
with JC during the year preceding the date of the application
• The company had at least JD 50 million total of customs declared values (on all
customs declarations) during the year preceding the date of the application.
• The company had at least JD 5 million total of declared customs duties during the
year preceding the date of the application.
For Transporters/ Transport Operators and Warehouse Operators:
The company must have been in business for at least five years before filing its application,
or has been in business for at least three years provided that the current number of its full-
time employees is 50 or more.
Factor 2: Customs Due Diligence and Supply Chain Security
To join the GLP, a company must develop and implement "customs due diligence and supply
chain security" procedures according to the relevant checklist issued by JC. Currently, there
are six different checklists:
7. Customs Due Diligence & Supply Chain Security Checklist- Import
8. Customs Due Diligence & Supply Chain Security Checklist- Export
9. Customs Due Diligence & Supply Chain Security Checklist- Clearing Agent
10. Customs Due Diligence & Supply Chain Security Checklist- QIZ Company
11. Customs Due Diligence & Supply Chain Security Checklist- Transport Operator
12. Customs Due Diligence & Supply Chain Security Checklist- Warehouse Operator
A company desiring to become a Golden List member must review one or more of the
checklists that is (are) relevant to its business operation. The company then develops and
implements "customs due diligence and supply chain security" procedures addressing the
many questions contained in the relevant checklist(s).
This guide is intended to assist all types of supply-chain companies (importers, exporters,
customs clearing agents, QIZ companies, transporters and transport operators, and
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warehouse owners and operators) in developing and implementing their own "customs due
diligence and supply chain security" procedures so that they satisfy this factor (Factor 2).
This guide is restricted to Factor 2 and does not address the other Factors.
Factor 3: Customs Transactions Compliance Rates
This is a technical factor that is attained from examining several sample customs declarations
filed by the company in the last three years. Compliance with customs requirements includes
examining compliance rates with customs value, customs classification (tariff classification),
quantity, etc. It also includes the requirement for good book keeping of all customs
declarations and supporting documents.
Factor 4: Documented Internal Control System
This factor verifies that a company has implemented internal control procedures to ensure
business transactions in general, and customs transactions in particular, are performed with
maximum care; and errors, omissions and violations are avoided.
The presence of an internal control system within a company is considered a strong indicator
of the level of commitment of a company towards avoiding mistakes and obeying all
applicable legislation, including Jordan Customs Law.
Factor 5: Company's Acceptance to Undertake a Suitable Improvement Plan
There is no harm for a company to fail meeting the criteria of the GLP as long as the
company is willing to implement a satisfactory compliance improvement plan. JC will
provide the company with all actual audit results, assist the company to develop and
implement a compliance improvement plan, and make all necessary follow ups in
cooperation with the company to ensure that improvements called for by the plan are
implemented.
If a company is not willing to implement an improvement plan, JC will not be able to include
the company on the GLP.
Factor 6: Company's Success in Implementing its Compliance Improvement Plan
Developing a compliance improvement plan is one thing; implementing the plan is something
else. Thus, the audit team of JC will undertake verification processes, the extent of which
depends on the scope of improvements called for, to make sure that the compliance
improvement plan is actually implemented.
What are the Components of International Trade Supply Chain?
The international trade community includes two main components-- importers and exporters-
- in addition to all other supporting components like freight forwarders, in-land and ocean
transporters, warehouse operators and customs brokers. All these components are sometimes
referred to as “supply chain” because they carry out the duty of supplying goods around the
world. Since all these components are involved in international trade, i. e. moving freight
between different countries, they must deal or transact with customs departments/ services.
An importer and an exporter/ manufacturer participate in an international trade transaction
that is cleared by two-or-more different customs departments. The importer and the exporter/
manufacturer continuously need the services of a customs broker, freight forwarder,
warehouse operator, in-land and/ or an ocean transporter. Thus, customs departments/
services naturally play a pivotal role in international trade; without customs all trade supply
chain components will not be able to do their business.
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What are the Components of Jordan Trade Supply Chain?
Jordan trade supply chain companies include Jordanian importers, exporters/ manufacturers,
freight forwarders, in-land and ocean transporters, warehouse operators and customs brokers.
Jordan supply chain is considered part of the much bigger international supply chain. Jordan
trade transactions with other countries depend heavily on Jordan supply chain companies. As
stated above, the targets of the GLP are all Jordan trade supply chain companies.
What is the Relationship between Jordan Trade Supply Chain and JC?
All Jordan supply chain companies must, one way or another, transact with Jordan Customs
(JC). The trade activities carried out by Jordan supply chain companies are normally cleared
by JC. Thus, the JC plays a pivotal role in Jordan’s trade with other countries; without
Customs all Jordan supply chain companies will not be able to do their business. Both
parties, the JC and Jordan supply chain companies, are considered the backbone of Jordan’s
trade with other countries. The economic and developmental benefits to Jordan from
international trade cannot be realized without both parties working together.
HOW TO IMPLEMENT CUSTOMS DUE DILIGENCE IN YOUR COMPANY
Definition of Due Diligence
In the English language, and according to most dictionaries, “diligent” means “hard-working”
or “putting care and effort into what one does”, or “done with care and effort”. The word
“diligence” is taken from the Latin word “diligens” which means “conscientious”. Due
diligence, as a term, means taking reasonable care in performing a task or a group of tasks.
Obviously, this definition of diligence is clear on one important aspect; it requires effort and
hard-work.
From the legal view point, due diligence (or reasonable care) is the degree of care a
reasonably prudent person would use under like circumstances. This legal definition is very
important in one aspect: the degree of care is legally measured in relative terms rather than
absolute terms. For example, the level of care we expect from a 10-years old kid would be
different from what we expect from an adult. A larger importer who has more business
resources available, for example, is expected to make less customs transactions errors
compared to a smaller importer. Thus, what comprises a reasonable care behavior is really
something relative to what “comparable” others would do under the same circumstances.
Based on the above definitions, due diligence for any business entity (company) means
developing and implementing a system of procedures to carry out business operations in the
“best way possible”. The “best way possible” could mean different things for different
business entities; for example reducing business risks, or reducing legal exposure or liability,
or complying with industry’s code or best practices, or promoting business image within
industry, etc.
Within the international trade supply chain community, due diligence for any supply chain
company (including Jordan supply chain companies) generally means developing and
implementing a system of procedures to carry out business operations in the “best way
possible”. The “best way possible” generally means:
• Complying with customs laws, regulations, instructions and directives. For Jordan
supply chain companies in particular, the Jordan customs law, and all related
regulations, instructions and directives must be complied with.
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• Complying with international and local trade laws (export and import laws, goods
transport laws, prohibited/ restricted materials laws, intellectual property rights laws,
trade marks laws, international/ or multi-lateral trade agreements, bilateral trade
agreements, quota restrictions laws, health and product safety laws, etc.). For Jordan
supply chain companies in particular, Jordan trade-related laws must be complied
with; in addition to all relevant international laws/ agreements.
• Complying with the relevant industry best practices. For Jordan supply chain
companies in particular, relevant industry best practices on the local (Jordan) level,
and preferably the international level should be complied with.
Example on Customs Due Diligence
The following examples are aimed at explaining the due diligence system as applied to
supply chain companies (including Jordan supply chain companies). They are just few
examples to enhance the understanding of the concept, and do not represent an exhaustive
due diligence list. However, it should be noted that detailed and separate "customs due
diligence and supply chain security" checklists for Jordan importers, exporters, QIZ
manufacturers, warehouse operators, transporters and customs brokers are available from JC.
The reader should refer to these lists for in-depth details.
• Example 1: A Jordan import/ export company that has an up-to-date record of the
Jordan customs law and Jordan customs regulations, instructions and directives is
exercising due diligence. In addition, if this company is truly due diligent, then it
should have a written procedure on how to obtain an official copy of the latest Jordan
customs regulations, instructions and directives. A company that does not have this
record, and does not even know how to obtain this record, is a non due diligent
company. The difference is obvious: how can a company comply with a certain law
and relevant regulations, instructions and directives if this company does not even
have a copy of such materials?
• Example 2: A Jordan customs brokerage/ freight forwarding company that has
a well-maintained record of all Jordan customs-related paperwork (or
electronic files) for each customs transaction is exercising due diligence. This
company can provide Jordan Customs, and equally-important its clients, with
an account of all its customs-related transactions when requested. A company
that does not have a well-maintained record, and does not even know how to
keep a good record (or for what purpose), is a non-due diligent company. The
difference is obvious: how can we, the JC, ease-up our paper work
requirements if you, the broker/ forwarder, can not keep your paper work for
later review/ inspection?
• Example 3: A Jordan import/ export company that contracts with a customs
brokerage company to clear its customs-related transactions, but does not have
enough information about the broker’s background or experience, is not a due
diligent company. A due diligent importer/ exporter would worry about
knowing all relevant background information about its customs brokers.
Further, a due diligent import/ export company would have a written list of the
required qualifications expected from its broker. The difference is obvious: if
you, the Jordan importer/ exporter, would really like to have error-free
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transactions with Jordan customs, then you should hire an error-free customs
broker who has good experience in what he does.
• Example 4: A Jordan trucking carrier that does not have a tracking system of
all its operating fleet is not a due diligent carrier. A due diligent carrier would
have a system in place to know where every single truck is at any point of
time. With heightened security risks around the whole world, it is important
for every Jordan carrier to know where every unit of its fleet is located at any
time. A non-due diligent carrier may not even have a way of communication
with its fleet drivers. The difference is obvious: as a Jordan carrier, how can
the JC, and equally-important your clients, trust you with their transit or other
shipments if you do not know where the good are during the day?
• Example 5: As a Jordan exporting company, do you have adequate
information about the reputation of the local/ foreign carrier that transports
your exports to other countries? If not, what could be the reason? A due
diligent exporter surely has this information. The difference is obvious: if
you, the Jordan exporter, are proud of being “due diligent” in choosing your
carrier/ business partners/ service suppliers, then why deal with a “non
diligent” or unknown carrier?
• Example 6: As a Jordan supply chain company, regardless of your line of
business, do you have a good accounting system in place? Is this system
detailed enough to show all your import/ export transactions in terms of goods
types, quantities, prices, etc.? Can we, the JC or any concerned entity, verify
all customs duties and taxes through auditing your accounts? A due diligent
supply chain company would have a good accounting system in place, and
would be proud to be transparent enough with JC and other concerned entities.
The difference is obvious: we, the JC, would like to release your goods as
quickly as possible and would like to expedite your customs transaction;
however, can we verify everything related to your customs transactions via a
later audit (often called goods post-release audit)?
Developing and Implementing a Due Diligence System in Your Company
The following implementation steps comprise the logical sequence for developing and
implementing a due diligence system for any supply chain company. These steps are generic
and may not be exhaustive; thus they should be taken as “guiding steps” to help out
companies get started. Further, it should be noted that detailed and separate "customs due
diligence and supply chain security" checklists for importers, exporters, QIZ manufacturers,
warehouse operators, transporters and customs brokers are available from JC. The reader
should refer to these checklists for in-depth details.
Step 1: Management Commitment
Management commitment to developing and implementing due diligence procedures is the
most vital step to start with. The management of the company should carefully read the
benefits of the GLP outlined above, and then make a yes/ or no decision regarding its interest
in the program. The company will not be able to join the GLP unless it develops and
implements an appropriate due diligence system. If the company decides not to join the GLP,
and thus not to proceed with developing a due diligence system, then there is no sense of
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moving to the next step. However, if the management decides to join the GLP and proceed
with implementing a due diligence system, then the rest of the below steps will be a matter of
routine work.
Step 2: Coordinate Your Work with JC
The JC is the pivot around which all supply chain companies revolve. JC has already
established a Risk Management Unit to assist you in developing your own due diligence
procedures. Thus, work closely with this Unit and make sure that all Customs requirements
are included in your due diligence procedures. If you aim to benefit from any incentives to
be offered by JC, for example to become a Golden List Company, then you must
accommodate all the requirements.
Step 3: Understand Customs Requirements
• Always remember that “ignorance of the law is no defense". Therefore make sure to
conduct a thorough review of Jordan customs law, regulations, instructions and
directives.
• Make sure that you have an up-to-date copies of all revisions made to the customs
law, regulations, instructions and directives.
• Identify the articles in the law, regulations, instruction and directives that apply to
your business operations. Always read each law article within the context of its
applicability to your day-to-day business activities. Always think to what extent you
really complied in the past with each relevant article. Ask yourself: how can I comply
with each relevant article?
• Ensure that others in your company are made aware of their responsibilities under the
customs law, regulations, instructions and directives. Ask yourself: do I have a
system in place for making this information available to my employees; i.e. via
memos, notices, newsletters, etc.
• Ask yourself: do I have a senior staff member to do the aforementioned reviews? Do
I need an outside expert?
• Ask yourself: how can I make sure to obtain copies of all new customs law
amendments, new regulations, new directives and new decisions?
• Ask yourself: are my employees, especially seniors, well informed of the relevant
customs law articles?
Step 4: Understand International Trade Requirements
• Make sure to have up-to-date copies of all trade laws, regulations, agreements and
special requirements pertaining to your business operations. Think of all the laws
and regulations, other than Jordan Customs Law, that might have a direct or indirect
impact on your business activities.
• Ask yourself: am I affected by the Ministry of Industry and Trade requirements (i.e.,
Import and Export Law)? Am I affected by the Ministry of Agriculture requirements?
Am I affected by the Ministry of Health Requirements? Am I affected by any
requirements stipulated by Jordan Government agencies other than JC? Do I have
up-to-date copies of all such requirements?
• Ask yourself: am I utilizing any trade agreements between Jordan and other
countries? Do I understand all the requirements/ stipulations of such agreements?
What are the most relevant articles to my business activities? Do I have up-to-date
versions of such agreements?
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Step 5: Understand Industry Requirements
• One way or another, all industries have their own best practices. International and
local industry associations usually develop generic best-practice procedures for their
member companies; make sure to have them updated and handy in file.
• Ensure that the practices at your company reflect the industry best practices.
However, beware that your industry standard of best practices may not be sufficient;
try to beat them.
• Even when such best practices do not exist, always look up to the “best” companies in
your line of business and ask yourself: how can I become like them? Seek assistance
from them through your trade association or through direct contact.
Step 6: Try to be Objective
• In performing steps 3, 4 and 5 above, you need to be objective. Always
remember that in doing steps 3, 4 and 5 your aim is to find your own
limitations to set up certain procedures to overcome them; so, be objective and
do not get disappointed when finding many limitations. Always remember
that your due diligence system is supposed to overcome your limitations; if
you are already perfect, then you do not need a due diligence system.
• If you are not sure of being objective enough, invite an outside consultant/
expert to help you out. Experts usually can see more insights into your
business activities; not because they know better than you, but because they
have seen other companies in your line of business.
Step 7: Keep Pro-Active
To insure your compliance with the Customs law and all other trade laws, agreements,
requirements, etc. affecting your business activities, you need to be pro-active:
• Develop specific policies and procedures on how to perform your business
activities according to all relevant laws, regulations, agreements, requirements,
etc. (see steps 3, 4 and 5). The level of details for each policy/ procedure
should be in light of the likelihood of the harm that could result (for example,
the amount of penalty that may be assessed by Customs). The policies and
procedures should be distributed to all existing and newly assigned employees,
and should be systematically revised as circumstances warrant (i.e., changes in
law). Remember, six "customs due diligence and supply chain security"
checklists were prepared by JC to assist you carry out this step; review the list
relevant to your line of business.
• Train your employees on the developed policies and procedures. Your
employees should receive training to reinforce the adoption of the developed
policies and procedures. Training can be done internally or externally. A
record should be kept of who has been trained, what specifically they have
been trained in, when training last took place, etc.
• Communicate the developed policies and procedures on an on-going basis.
There should be a system in place to have the developed policies and
procedures communicated to new employees or transferred employees, and re-
communicated when material changes occur. For example, memos should be
distributed to all departments when changes in policies and procedures occur.
• Monitor adherence to the developed policies and procedures. Such monitoring
might be assigned to one of the senior staff members, or to all departments’
managers as part of their jobs descriptions.
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• Enforce compliance with the developed policies and procedures. Most often,
management is given the authority to enforce compliance. However,
regardless of who is given the enforcement authority, good records must be
kept of all enforcement activities like warnings, terminations, etc.
Step 8: Keep Good Records
Good record-keeping is always a strong signal of good management. A good system of
keeping all business activity records is a proof of your due diligence, and also a measure of
how you are carrying out the responsibilities of your work.
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HOW TO IMPLEMENT SUPPLY CHAIN SECURITY IN YOUR COMPANY
Jordan trade companies with the need for supply chain security include Jordanian importers,
exporters/ manufacturers, freight forwarders, in-land and ocean transporters, warehouse
operators and customs brokers. Jordan supply chain is considered a small part of the much
bigger international supply chain. Jordan trade with other nations depends heavily on Jordan
companies with active supply chain security systems.
Jordan Customs (JC) is issuing this guide to assist your company implement or improve a
supply-chain security management system to enhance the overall security of your business
operations. Is it important that all trade companies operating in Jordan review this
information and take appropriate steps to minimize their security risks.
The security management system described in this guide complies, generally, with the
principals set out in the:
1. The International Shippers and Freight Forwarders Security Code—Draft Rev. 4 by
United Nations Center for Trade Facilitation and Electronic Business (UN/CEFACT).
2. “High Level Guidelines for Co-operative Arrangements Between WCO Members and
the Private Sector” to increase supply chain security, as adopted by the WCO in its
general assembly in June 2003.
3. United States C-TPAT guidelines on supply chain security.
4. International Ship and Port Facility Security Code (ISPS Code) by the International
Maritime Organization.
5. BASC (Business Anti-Smuggling Coalition) Standards by the World BASC
Organization.
Why Supply Chain Security is Important
As concern grows that combating security threats is becoming more and more important to
countries, supply chain security has become a vital response mechanism. JC, and luckily
many Jordan companies, realize the importance of the supply chain security issue. Notably:
• Supply chain security has become an international mandate. It is expected in
the near future that all international trade activities will be carried out through
secure-only supply chains.
• Supply chain security reduces customs clearance times at borders. Thus,
Jordan companies implementing security management systems will have a
competitive trade advantage over others.
• Supply chain security has become a powerful marketing tool. Jordan
companies implementing security management systems will be preferred as
trade partners over other companies.
• Supply chain security is very important to Jordan and Jordan’s trade partners.
To make better use of Jordan free trade agreements with the United States
(US) and the European Union (EU), Jordan companies must enhance their
supply chain security management systems.
• Enhanced security will prevent the use of the logistics chain to cause harm to
life, property or the environments.
• Enhanced security will prevent any illegal intervention in the supply chain
which could cause serious delays and hence considerable economic damage.
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• Enhanced security in the supply chain will reduce other losses like theft and
damage.
General Security Requirements
• Management Commitment: Top management should provide evidence of its
commitment to the development and implementation of the security
management system. Top management should communicate to the company
the importance of security awareness. Also, top management should establish
a security policy, security objectives, conduct management reviews and assure
the availability of resources.
• Security Manual: A company should establish and maintain a security manual
that includes the scope of the security management system, including a clear
description of the processes which the company undertakes. (The security
manual may be part of a more comprehensive due diligence system to insure
self regulated compliance.) The interaction between the processes and the
facilities covered by the security management system should be described in
the manual. Also, a description of the interaction between the relevant
authorities (e.g. Customs, Police, Civil Defense Departments) and the
company should be included.
• Records: Records should be established and maintained to provide evidence
of conformity to requirements of the security management system. Records
should remain legible, readily identifiable and retrievable. A documented
procedure should be established to define the controls needed for the
identification, storage, protection, security retrieval, retention time and
disposition of records.
• Security Assessment: The security assessment is an essential and integral part
of the process of developing and updating the security management system
and is the delegated responsibility of the company security officer. The
security assessment should be carried out by the company, with the assistance
of a qualified third party if deemed necessary. The security assessments
should periodically be reviewed and updated, taking account of changing
threats and/ or minor changes in the company or its facilities and should
always be reviewed and updated when major changes to the company or its
facilities take place. The security assessment should include, at least, the
following elements: a) identification and evaluation of facilities, process steps
and documents which are important to protect; b) identification of possible
threats and vulnerabilities to these facilities, process steps and documents and
the likelihood of their occurrence, in order to establish and prioritize security
measures and define restricted areas; c) identification of weaknesses, including
human factors in the facilities, policies and procedures; d) identification,
selection and prioritization of counter measures and procedural changes and
their level of effectiveness in reducing vulnerability. Upon completion of the
security assessment, a report should be prepared, consisting of a summary of
how the assessment was conducted, a description of each threat and
vulnerability, found during the assessment, and a description of counter
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measures that could be used to address each threat and vulnerability. The
report should be protected from unauthorized access or disclosure.
Personnel Security
Company personnel are always under the risk of being pushed or convinced to cooperate with
illegal activities beyond their actual functions. Human resources may be the weakest link or
the strongest one in the risk prevention chain. With selection processes we may avoid that
the main interest of a new company employee would not be to work for the company but to
work against it. Below are some recommendations for improving the security of your
personnel.
• Data on the Applicant: Your company should have a detailed application
questionnaire to be filled out by all candidate employees. The application
form should ask for all personal data and a complete employment history.
Answers to questionnaire questions should be handwritten and the form should
be duly signed. This standard procedure creates a feeling of responsibility in
the applicant.
• Data checking: Once the applicant delivers the form, a person from your
company should check the information. Previous work history and personal
character should always be verified from previous employers.
• Interview: Once data is checked, it is advisable to interview the applicant.
Oral questions should be asked about the data included in the application
form. During the interview, the interviewer should try to find out about the
character, motivation and honesty of the applicant. Your company’s policies
against theft, illegal trafficking, terrorism, piracy, etc. should be stressed so as
to know about the applicant’s position on those issues.
• Induction: After being formally hired, it is necessary for the new employee to
receive an induction on security standards, restricted areas, identification
cards, and who should be advised about irregularities. The new employee
should also be trained on the ways to recognize that his/ her peers are
participating in illegal activities. All employees handling cargo or handling
documents must know your company’s security requirements and the
consequences of non-compliance.
• Maintaining Personnel: Human resources of your company are constantly
studied by criminal organizations that want to use them, convince them or
dissuade them about the possible additional benefits that they may obtain. A
periodic review on aspects such as behavior, proposals received from external
agents, observations on other peers, their social and economic situation, new
friends, will make your employee feel protected and at the same time
responsible towards the company. Also, you will demonstrate that you are
concerned for your employee, that you care and the most important thing, that
you know him/ her. A bi-annual home visit plan for employees, in which
observations are made about changes in life style, will be vital as a control
mean and as a prevention mechanism against internal conspiracy.
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• Preventing Internal Conspiracies: Criminal organizations require a connection
at the companies in order to create a criminal association. “Internal
conspiracies are when groups of employees within the company are engaged
in illegal activities.” The need of using company people is because they know
processes and data, operation and security procedures and because they have
physical access to different areas. People with the ability to become familiar
and with good human relation skills might be beneficial or dangerous. For
control positions to provide service to external users with the responsibility of
delivering or accepting cargo or documents, it would not be advisable to have
that skill.
• Incentives: Some incentives for those individuals or employees making
reports on activities related to suspicious aspects or vulnerable processes allow
the creation of a dissuasive environment and a continuous improvement of
safety and security standards.
Physical Security
Physical security is another important dimension of securing your company’s business
operations. Physical security focuses on the company’s buildings, premises, storage areas,
parking, gates, etc. Below are some recommendations for improving the physical security of
your business.
• Cargo Storage Areas: All buildings used for cargo storage and the related ones should
be built with resistant materials that would prevent illegal entry. Structure integrity
should be maintained through periodic inspection and repair. Doors and windows
should be secure. Restricted areas and their access control should be well signaled.
• Perimeter Fencing: The basic principle is to have physical barriers to avoid access of
non authorized vehicles or individuals to a company plant. Fences or division walls
sufficiently separated from buildings so as to have reaction time and observation
possibilities. No debris or trees should be close to the fence since they could be used
as support elements to violate integrity. Periodical inspection of the fence is required
to verify its condition.
• Doors: The number of doors should be the minimum necessary to provide adequate
access to the plant and to cargo storage areas. Doors should provide a defense against
non-desired access of vehicles and individuals. Doors should have physical security
barriers and people to control them. Signals and warnings should be placed on doors
regarding the responsibility and company procedures to notify about criminal events
that might take place in company facilities.
• Lighting: Adequate lighting should be provided for entry areas or gates, storage and
cargo operations areas, perimeter fencing and parking areas. It is recommended to
have an emergency lighting system for valuable cargo storage areas or for vital
process execution areas.
• Locks and Key Control: Locks and keys used in building doors and equipments
should have the necessary protection to avoid the access of non-authorized
individuals. Key and lock control should be handled by the person in charge of the
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area or by security personnel. It is recommended that your company has a key storage
closet with its key always carried by the shift security person. Also, it is
recommended to have a document to record the reception and delivery of high risk
area keys.
• Guard Booth: Facilities where large amounts of cargo are handled, especially for
export purposes, should have guards and booths in all vehicle entry and exit gates
during working hours. Automatic access control systems such as defense bars and
gates allow better control over the security activity. Emergency lighting system is
vital to avoid sabotage.
• Parking: Non-company cars should be forbidden from parking in the cargo area and
in the areas close to cargo storage buildings. Security service should control
employee-parking access. Employee parking should be separated from visitor
parking.
• Communications: A good communication service should exist between company
guards and security authorities. Resources such as telephone, portable radios, and
alarm systems should be used. An emergency electric power system is vital for the
continuity of security functions.
• Access Control: Without physical access to plants or areas it is impossible to have
thefts, illegal traffic, terrorism and piracy; thus it is important to have access control.
If fewer people have access to documents, cargos and/ or storage areas, the possibility
of risk will be lower. There should be control on the time people have access to
facilities, especially cargo storage areas. Inactivity should not be allowed in sensitive
areas. A hanging map showing restricted areas for each type of employee, visitor and
user is highly recommended. Signs advising customers and users about the
importance of security and company standard compliance should be placed in
conspicuous locations.
Operations Security
Operations security is yet another dimension of securing your company’s business operations.
Operations security focuses on the company’s security officer in charge, security of the
sensitive jobs, employees' identification and training. Below are some recommendations for
improving the operations security of your business.
• Security Officer: Depending on the size of your company, you may consider having a
security organization to protect your business operational activities. A company
representative should be appointed as a security officer and should be in charge of all
security duties. Security personnel should wear different uniforms from other
employees.
• Sensitive Jobs: All people working in sensitive jobs, especially those responsible for
cargos, documents and valuable items, should go through a careful pre-hiring
background checks.
• Identification Systems: All company personnel and in general, all personnel that have
access to the company areas should be duly identified. Identification, whether by
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color number or inscription, should indicate the areas the person is authorized to have
access to. Identification cards should be used and should have, as a minimum, the
employee physical characteristics, a color photograph, signature and a reasonable
expiration date. All personnel should carry the identification in a visible place. For
administrative personnel, the card may be a hanging batch or a batch clipped in the
right pocket. For operations personnel, a bracelet is used (industrial safety standard)
to avoid losses and accidents. Use reflective vests or different color uniforms for each
sensitive area in order to have more visual recognition, especially when monitoring
cameras are used.
• Security Knowledge and Training: The company should have programs to train all
personnel with respect to security policies and practices as part of its operations.
Cargo Handling Security
Security measures should be implemented in the plant during the course of cargo reception
and delivery, including handling empty and full containers. Below are some
recommendations for improving the security of cargo handling processes.
• Empty Containers: Empty containers received at the plant to be stored or filled out
should be checked (for general cargo or refrigerated cargo). The check of the empty
containers should be made at the time of arrival, and again at the time of filling. This
is important to prevent a structure modification to the container for trafficking in
illegal goods.
• Full Containers: Filling containers with cargo should be done with the presence of
security personnel. Also, handling full containers from the storage area or from the
plant should be security-supervised.
• Reception and Delivery of General Cargo: Forms or registry books should be kept of
all cargos received or delivered. Record the entrance and exit time of all cargo loads,
names of persons receiving and delivering, amounts of cargo by packing unit type,
packing condition and security seal or stamp. If there is a problem with packaging,
evidence should be recorded with a photograph and scale weight record.
• Inspection of Non Company Vehicles: All non-company vehicles should have
restricted access to operation areas. However, when allowed access, these vehicles
should be inspected or, preferably accompanies by security personnel. The method of
inspecting such vehicles should be well documented and adhered to at all times.
Documents and Data Security
Efficacy of your company’s security standards for facilities and operations depend on the
control of documents and data. Documents with which you receive, pack, unpack, transport,
deliver or transfer the responsibility from your company to another, or from one area in your
company to another, are especially important. Below are some recommendations for
improving documents and data security of your business.
• Documents Access and Responsibility: Limit as much as possible access to data or
information. Implement clear procedures for documents responsibility. Set closing
processes and confrontation processes between operating activities and documents
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generated by them. Set up formal delivery procedures and information files. Have a
secure area for storing documents and information.
• Cargo Documents: All personnel working with cargo documents have the
opportunity to recognize suspicious shipments that should not be received nor
transported. In the event it is already in the facilities, the responsible agencies in
charge of control should be notified. Careful examination is required of all cargo
documents, transportation agreements, invoices, customs documents and others. An
accurate account must be kept of all cargos handled or received. Only legible
documents should be processed; illegible documents should be replaced or else
rejected. Documents confidentiality should always be protected. Only authorized
signatures should be accepted. Identification of authorized persons should be
checked. Clear procedures should be set to notify about suspicious activities.
• Signatures and Stamps Policy: The signatures and stamps policy is generally
applicable to document preparation processes, application of seals, breaking seals,
physical count of parts, individuals checking, cargo and opening the vault.
Documents with which responsibility over cargo is transferred or when a service is
provided should be signed by the person delivering it and by the one receiving it.
Besides the signature, it is vital to stamp time and date with a printing clock. Only
official employees of the company may sign relevant documents on delivery,
reception, or responsibility transfer over a good.
• Last-Minute Shipment Documents: Experience showed that last minute documents
received under pressure are largely used by criminal organizations to avoid risk
analysis of suspicious shipments and authority controls. Thus, there should be a
defined policy to receive documents with sufficient time in advance for cargo entry or
exit. A special control should in place to handle last minute shipments. A clear
process should be in place on how to advise authorities about a last minute shipments.
• Computerized Documentation: Information systems represent great help to increase
security standards levels on administrative processes supporting physical operations.
There are two types of computer information crimes; one in which the actual victim is
the system (software or hardware damage) and one in which the system is used as an
instrument for illegal actions. Thus, there should be a system access control
mechanism, and preferably a discriminating users ability. Physical security in the
servers area should be provided. Backup processes should be implemented
frequently.
Specific to Forwarders and Transporters
These specific requirements are applicable to all companies who are engaged in the moving
of containers by road, rail or inland waterway.
• Only containers are accepted to be loaded on the company means of conveyance
which are properly marked, and have the correct weight and documentation.
• Containers, whether loaded or empty, only should be loaded when they are tamper
proof sealed and this sealing is properly documented.
• Containers are moved according to pre-defined schedules, including routes and stops,
and unexpected delays and deviations are to be reported to the company.
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• Origin site should pre-alert destination site before shipment. Such pre-alert should
contain as a minimum: departure time, expected arrival time, transport companies
name, employee name, and seal numbers.
• Security pertinent equipment should be properly maintained and calibrated.
• Before loading, at departure and after each prolonged stop, seals should be checked
for tampering, all readily accessible areas should be physically searched and internal/
external compartments and panels should be secured. These checks should be
recorded and records be kept for at least one year and be accessible to other
participants in the supply chain for verification.
• Control cabins of means of conveyance, when not manned, are kept locked at all
times and only employees of the company are allowed to have access.
• Documentation containing cargo information is kept secure in the control cabins.
• Control cabins are equipped with an intrusion alarm.
• Procedures should be in place for reporting when unauthorized personnel, un-
manifested materials, or signs of tampering, are discovered.
• No prolonged stops should be made at isolated locations, unless such location is
equipped with adequate lightening and fencing.
• Vehicles should only make prolonged stops at locations which are equipped with
adequate lightening and fencing.
• Vehicles should not be left unattended.
Specific to Warehouses, Storage Areas and Terminals
These specific requirements are applicable to all companies who, as part of their operation
are engaged in the storage of cargo and/ or sealed containers in warehouses, on storage areas
and terminals, independent of nature and size.
• All cargo entering the warehouse or storage area should be properly marked, weighed
counted, documented and inspected for the absence of illegal goods or attributes.
• That all containers entering the premises are properly sealed and that the seal is
compliant to its documentation.
• That all cargo and containers are compliant with their documentation and manifests.
• That received containers, when emptied, are sealed again and that such sealing is
properly recorded.
• Adequate maintenance and calibration of any security pertinent equipment should be
made.
• Warehouses and storage areas for outward bound cargo as well as terminals should be
identified as restricted areas.
• Unauthorized access to facilities should be prevented.
• Access controls should include positive identification and recording of all employees,
suppliers, visitors, and vendors on site.
• Visitors should not be allowed to move around the facilities without accompaniment
of an employee.
• Unauthorized / unidentified persons should be challenged.
• Authorization to access restricted areas should be clearly visible.
• Security codes, cards and/ or keys should only be submitted to authorized persons for
which records should be held.
• The identification of lorries, entering or leaving the premises, and their drivers and
passengers should be recorded.
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Specific to Stuffers and Packers
These specific requirements are applicable to all companies who, as part of their operation
are engaged in the stuffing, packing, loading, re-loading or consolidating and consecutive
sealing of containers, independent of their size and type of processes of this operation.
• The designated company security officer or one of his designated deputies should be
physically present during loading/ unloading of the container and supervise the
introduction or removal of cargo into/ from the container. This measure is to prevent
the infiltrated of unauthorized weapons or any other dangerous substances.
• Inspection of empty or partially loaded containers to detect any security breach,
immediately before loading.
• The supervision mentioned above should be uninterrupted from the start of the
inspection until the container is sealed.
• The supervision should include verification that seals on received containers are intact
and conform to the appropriate records.
• Marking, weighing, counting and documenting of cargo entering the container is
properly performed.
• All cargo should be compliant with its documentation and manifests.
• The designated security officer (or his deputies) should seal the closed container with
an approved tamper proof seal immediately upon loading and properly record the data
of this seal.
• Unauthorized access to facilities should be prevented.
• Access controls should include positive identification and recording of all employees,
suppliers, visitors, and vendors on site.
• Visitors should not be allowed to move around the facilities without accompaniment
of an employee.
• Unauthorized / unidentified persons should be challenged.
• Authorization to access restricted areas should be clearly visible.
• Security codes, cards and/ or keys should only be submitted to authorized persons for
which records should be held.
Specific to Information Processors
These specific requirements are applicable to all companies (including brokers, agents etc,)
who as part of their operation are engaged in the receiving, processing or forwarding of
information to the Jordan Customs or other parties in the supply chain.
• Complete, legible and accurate documents should be submitted timely to Customs.
• An analysis should be made of the vulnerability of information systems, the relevance
to security of data and the implementation of adequate safeguards and firewalls.
• Access authorization system should be implemented to protect computer systems and
computer data against exchange, loss or introduction of erroneous information.
• Security critical information should only be accessible by authorized personnel and
that the users of this information can be traced back.
• Routines should exist to securely cope with break downs and secure back-up routines
should be followed.
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• The transporter or forwarder should be informed when during the processing of
information it is noted that the progress or movement of containers deviates from pre
defined schedules.
• Overages and shortages, as well as other anomalies, observed during the processing of
information, should be reported not only to the customs, but also to the company(s)
responsible for the processing of the cargo.
• Unauthorized access to facilities should be prevented.
• Access controls should include positive identification and recording of all employees,
suppliers, visitors, and vendors on site.
• Visitors should not be allowed to move around the facilities without accompaniment
of an employee.
• Unauthorized / unidentified persons should be challenged.
• Security codes, cards and/ or keys should only be submitted to authorized persons for
which records should be held.
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APPENDIX F
GLP- Questions and Answers Brochure
Golden List Program: Security, Protection and Opportunity - Be the Winner
Jordan Customs Contact Details
- Contact Details: Traditional and Non Traditional Contact Details.
- Add some colored Photos from JC.
- Jordan Customs Logo.
- The Golden List Program Logo.
What is the Golden List Program (GLP)?
During the second half of 2004, Jordan Customs (JC) has initiated a voluntary, self-
compliance program, called Golden List Program (GLP). The program was intended to
enhance customs due diligence and supply chain security of the trade community of Jordan.
The program was targeted at Jordan supply chain companies including importers, exporters,
transporters and transport operators, customs clearing agents, warehouse operators and
Qualified Industrial Zone manufacturers (manufacturers qualified for duty-free export to the
United States). According to this program, supply chain companies that are exercising
customs due diligence, have supply chain security procedures in place, have a good
compliance history with JC and compliant with Jordan customs law and regulations might
qualify to become a Golden List member.
What is the Mission of the Golden List Program?
"The GLP is a voluntary, self-compliance program aimed at enhancing customs due diligence
and supply-chain security within the trading community of Jordan, and, at the same time,
facilitating Jordan's trade with other countries. The program improves the performance of
Jordan enterprises, boosts the trading sector, and enhances the growth of the economy. The
program encourages and assists enterprises to implement the state-of-the-art and
internationally-recognized procedures with respect to customs transactions and security of
trade supply chains. The program complies with the World Customs Organization (WCO)
Framework of Standards to Secure and Facilitate Global Trade which came into effect in
June, 2005. Jordan enterprises joining the GLP will be perceived as "diligent" and "secure"
enterprises, and thus, will be treated favorably by their international counterparts. The
targeted community of the GLP is all enterprises in Jordan that participate in the international
trading activity; including importers, exporters, manufacturers, transporters, customs brokers
and warehouse operators." The GLP will benefit:
� Jordan's Economy. The GLP enhances the competitiveness of the trading sector of
Jordan locally and internationally and consequently improves Jordan's economy.
� Jordanian Enterprises. The GLP offers Jordanian enterprises a great opportunity to:
- expand current markets shares and exploit new markets
- increase profits and return on investment
- expedite business transactions and reduce operating costs
- apply the sate-of-the-art best practices
- gain a unique management experience
� Jordan Government. The GLP protects the income of the Treasury via optimal
allocation of JC and other Government Organizations' resources.
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� Jordan Security. The GLP enhances borders security, protects cargos and people, and
help prevents terrorist acts.
� International Best Practices. The GLP makes Jordan a pioneer country with respect to
compliance with internationally-recognized best practices (such as the WCO
Framework of Standards to Secure and Facilitate Global Trade).
� International Aid Agencies. The GLP demonstrates the success of international aid
agencies in Jordan.
� Jordan People. Jordan people will, ultimately, reap the economic as well as other
aforementioned benefits of the GLP.
What are Objectives of the Golden List Program?
The GLP of is expected to achieve a number of desirable objectives including:
1. Enhancing and protecting the income of the Treasury.
2. Improving customs processing procedures at border crossings via focusing on high
risk cargo shipments.
3. Expediting customs processing procedures and goods release for low risk shipments.
4. Facilitating Jordan trade with other countries.
5. Upgrading customs work to meet international best practices.
6. Improving the mechanisms of collecting customs duties and other taxes.
7. Encouraging companies to implement international best practices in general and with
respect to their customs transactions in particular.
8. Supporting the economy of Jordan via a viable and strong trade sector, and making
Jordan an attractive environment for foreign investments.
9. Creating a real partnership between JC and the business sector of Jordan towards
achieving the national objectives.
10. Creating mutually rewarding relationships and partnerships with foreign Customs
Services/ Departments so that cargo information could be transacted before hand.
11. Creating mutually rewarding relationships and partnerships with foreign Customs
Services/ Departments so that customs knowledge, especially with respect to risk
management techniques, could be transferred.
12. Enhancing "early" customs control mechanisms with respect to cargo shipments.
13. Enhancing JC ability to cope with international trade challenges.
14. Creating a culture of self-compliance with customs and supply chain security
requirements within the trade community of Jordan.
15. Enhancing supply chain security of international cargo shipments.
16. Reducing the costs of cargo processing at border crossings.
17. Applying the state-of-the-art techniques according to international best practices in
customs procedures.
18. Enhancing the competitiveness of the trade community of Jordan in the international
markets.
What Types of Organizations Can Apply to Join GLP?
� Large manufacturing, trade and trade-supportive services organizations.
� Qualified Industrial Zone (QIZ) manufacturers operating in Jordan.
� Small and Medium Size Enterprises (if they qualify).
� Importers.
� Exporters.
� Transporters.
� Transport Operators.
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� Freight Forwarders.
� Customs Clearing Agents.
� Warehouse Operators.
Why Organizations Need To Join the Golden List Program?
Today, many Jordan enterprises, especially those operating from QIZ areas, are asked to
implement minimum security procedures to prove to their trading counterparts that they are
“diligent” and “secure” partners. The GLP meets all internationally-recognized supply-chain
security requirements or recommendations. The rationale behind all security procedures
world-wide, including supply-chain security procedures, is that the current local and
international environments stipulate maximum anti-terrorism procedures. Risky shipments
are perceived as a security threat to all countries alike and must be removed from the
international supply chains. Enterprises that comply with the GLP procedures will be more
efficient in their business operations, and will be recognized as “good” enterprises by JC and
the international trading community. Another fact is that Jordan enterprises need to
recognize that, sooner or later, they have to apply the state-of-the-art international best
practices, including those pertaining to customs transactions and supply-chain security; which
may become a prerequisite for entering global markets. Thus, the new global international
trading environment, global anti-terrorism precautions, WCO standards, and the information
technology revolution have changed the substance and shape of today’s business practices.
Today’s enterprises are quite different than before, and quite surely, are required to pay
extreme attention to the security of their business transactions.
What Distinguishes the GLP from the Current Customs Practices?
� The GLP is considered a comprehensive "customs due diligence and supply-chain
security" program that implements internationally-accepted standards.
� The GLP has gained a strong support from the Government of Jordan as represented
by JC and other relevant organizations.
� The GLP is compatible with the requirements of the WCO Framework of Standards to
Secure and Facilitate Global Trade.
� The GLP has benefited from other similar programs like the C-TPAT program of the
United States and the PIP program of Canada.
� The GLP has benefited from the international expertise provided by the United States
Agency for International Development (USAID).
� The GLP protects against terrorists acts and, in the awake of the terrorist acts that took
place in Jordan on November 9, 2005, Jordan needs such a program.
� The GLP enhances the contribution of JC and Jordan trade organizations to the
trading sector, and consequently, to the economy of Jordan.
� The GLP, as a risk management tool, is superior to the traditional customs practices
that do not allocate customs resources based on a sound risk management
methodology.
� The GLP is a great opportunity to Jordan enterprises to gain a unique management
experience.
Are there Opportunities due to joining the Golden List Program?
Yes, a wide range of opportunities exist for organizations joining the GLP, including:
� Increasing Jordanian enterprises return on investment, profits and sales
volumes, especially from doing business in international markets.
� Paving the way to Jordan enterprises to enter new international market
segments.
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� When international recognition of the GLP is achieved, especially by Jordan
main trading partners, ample business opportunities in several countries could
be accomplished.
� Marketing Jordan and Jordan enterprises to the international community as a
"secure" country with "secure" enterprises.
� Establishing and sustaining strategic relationships with key international
trading partners such as the United States and European Union Countries.
What are the Benefits to Your Organization from Joining the GLP?
The GLP aims at enhancing Jordan trade community's self-compliance with customs
requirements and supply chain security best practices. However, these enhancements would
not materialize without paying a price for them. The question then, is the trade community is
willing to pay the expense without any direct benefits or incentives? Obviously, the answer
is no. That is why on several occasions JC has debated the issue of benefits/ incentives with
a number of enterprises from the trade community of Jordan. After lengthy debates, JC has
approved to offer GLP member enterprises a number of "direct" benefits/ incentives. In
addition, the GLP has a number of "indirect" benefits that are not related to JC. Both direct
and indirect benefits are shown in the following two sub-sections.
Direct Benefits
JC will offer the following benefits/ incentives to all enterprises that gain membership in the
GLP.
� Reduced frequency of cargo shipment inspections by JC (more frequent use of the
green-lane processing at all border crossings). GLP member companies will enjoy
expedited customs border processing.
� Reduced goods post-release compliance audits. Customs inspections of companies’
books to verify duty payment and general compliance with the customs law will be
less frequent for GLP member companies.
� Pre-arrival clearance of goods. Completion of customs transactions formalities will
take place before goods arrival for GLP member companies.
� Minimum levels of financial penalties. GLP member companies will enjoy the
minimum levels of penalties when inadvertently make an error on a customs
transaction. In addition, fines might be paid in installments without interest. (This
facility will depend on the monetary amounts owed to JC and the duration for paying
such amounts).
� Goods release before completing customs formalities. GLP member companies could
take possession of their goods against certain securities before completing customs
formalities.
� Security facilities. GLP member companies will be able to benefit from taking
possession of their goods against lesser financial securities.
� Clearance of goods during off-work hours. Customs will strive to clear goods for
GLP member companies even during customs off-work hours.
� JC will recognize the GLP member companies via publishing their names on JC
website. (This is an important feature to the GLP as JC continuously validates the
status of a GLP member company.)
� JC will seek recognition of the GLP from other countries, which will reflect positively
on GLP member companies.
� Annually, JC will declare the best three companies on the GLP and will recognize
these companies via a celebration event.
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� JC will continue to negotiate additional benefits with all GLP member companies on a
one-to-one basis. (Note: The JC will take care in the one-to-one benefits to recognize
the advantages of tailoring customs services to the client needs but at the same time
maintain a transparent process.)
Indirect Benefits
In addition to the above benefits offered by JC, GLP member companies, because they
implement the state-of-the art best practices of customs due diligence and supply-chain
security, are expected to enjoy the following benefits as a natural outcome.
� Reduced customs transactions costs.
� Being on the GLP is a marketing tool for your organization.
� By being on the GLP, your organization is considered compliant with the state-of-the-
art international best practices.
� Reduced operating costs for your organization.
� Your organization is less likely to make errors and mistakes, thus less likely to be
exposed to legal litigations.
� GLP is a management tool to encourage the careful assessment of business
operations.
Who is involved in Implementing the GLP?
The key stakeholders of the GLP include the following organizations:
� Jordan Customs (JC)- a governmental organization.
� Jordan Enterprise Development Organization (JEDCO)- a governmental organization.
� Jordan Investment Board (JIB)- a governmental organization.
� Jordan Exporters Association (JEA)- a private sector representative organization.
� International Aid Agencies.
� Jordan Embassies abroad.
How Can an Organization Join the GLP?
The following two technical guides are published by JC to assist your organization
throughout the whole process of joining the GLP. Both guides are available for free from JC.
� How to Join the Golden List Program: A Guide for International Trade Supply Chain
Companies. Prepared by the Risk Management Directorate of JC in cooperation with
the USAID-Funded AMIR Program of Jordan, 2005.
� How to Implement Customs Due Diligence and Supply Chain Security in Your
Company: A Guide for International Trade Supply Chain Companies. Prepared by
the Risk Management Directorate of JC in cooperation with the USAID-Funded
AMIR Program of Jordan, 2005.
Will the Required Information our Organization Provides to JC in the Process of
Joining the GLP be Kept Confidential?
Yes, strict confidentiality will be kept and all information provided to JC will not be
disclosed to a third party under what circumstances as long as such information is legal.
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Where Can my Organization Obtain More Information on the GLP?
Any organization interested in joining the GLP can get further information by contacting the
Risk Management Directorate of JC per the following contact details:
The Risk Management Directorate
Jordan Customs
P.O. Box 90
Amman, Jordan
Tel: 962-6-462-3186/ 88
Fax: 962-6-464-7791
E-Mail: [email protected]
Thank You Very Much for Reading our Brochure
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APPENDIX G
Golden List Program Marketing Strategy
PHASE I
SITUATIONAL ANALYSIS
MARKET DEMOGRAPHICS
The most important targeted markets (organizations) for GLP are large manufacturing, trade
and trade-supportive services organizations, as well as Qualified Industrial Zone (QIZ)
manufacturers operating in Jordan. These organizations will be voluntarily called to
participate in the GLP through implementing the customs due diligence and supply-chain
security procedures to meet the international trade security requirements. Small and Medium
Size Enterprises (SMEs) will be an attractive market segment to be invited to participate in
the program, and should be encouraged and offered the opportunity to implement the GLP
requirements, and thus acquire membership. The attractiveness of the SMEs segment is
twofold: first, there is a very large number of SMEs in Jordan, though the majority are small
in size compared to SMEs in developed countries, second, the GLP is seen as an excellent
venue for SMEs to seek business opportunities in the international markets.
MARKET NEEDS
Today, many Jordan enterprises, especially those operating from QIZ areas, are asked to
implement minimum security procedures to prove to their trading counterparts that they are
“diligent” and “secure” partners. The GLP meets all internationally-recognized supply-chain
security requirements or recommendations. The rationale behind all security procedures
world-wide, including supply-chain security procedures, is that the current local and
international environments stipulate maximum anti-terrorism procedures. Risky shipments
are perceived as a security threat to all countries alike and must be removed from the
international supply chains. Enterprises that comply with the GLP procedures will be more
efficient in their business operations, and will be recognized as “good” enterprises by Jordan
Customs (JC) and the international trading community. Another fact is that Jordan
enterprises need to recognize that, sooner or later, they have to apply the state-of-the-art
international best practices, including those pertaining to customs transactions and supply-
chain security; which may become a prerequisite for entering global markets. Thus, the new
global international trading environment, global anti-terrorism precautions, World Customs
Organization (WCO) standards, and the information technology revolution have changed the
substance and shape of today’s business practices. Today’s enterprises are quite different
than before, and quite surely, are required to pay extreme attention to the security of their
business transactions.
MARKET TRENDS AND GROWTH
� Globalization. Globalization is a major trend in the world’s economy in all business
sectors and countries. For example, Europe has created a major new and well-united
market, Latin America is growing a united and healthy market, and the United States
is becoming a promising market for all countries. The World Trade Organization
(WTA) is becoming a venue for all countries to agree on mechanisms for removing
trade barriers and boosting trade volumes. Jordan has succeeded in joining the WTO
and forming bilateral trade agreements; notably with the United States and the
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European Union. However, all international trade communities share one common
concern; security and terrorism which are both addressed in the GLP requirements.
� The information technology (IT) revolution. The world now is witnessing an
unprecedented progress in the field of IT and communications; especially the Internet.
The IT has become a necessary part of any successful business; which implies that IT
can facilitate enterprises gaining up-to-date data and information.
� Anti-terrorism regulations. In today's environment, it seems reasonable to say that
every country now-a-days is concerned about terrorism which threatens businesses
individual businesses and economies alike. Consequently, security procedures are
necessary to minimize terrorism threats and preserve businesses and economies.
� Increasing competition. Today’s businesses are facing severe competition in almost
every part of the world. Businesses deal with competition by entering new markets
and creating new business niches. However, they need to feel secure and free when
entering new markets or seeking new business opportunities. The security
requirements of the GLP are beneficial to Jordan enterprise since they improve
business transactions in terms of quality, speed, cost and being "diligent" and "secure"
enterprises; and these are essential requirements for today’s competitive business
environment.
� International mandate. The national and international business environments and
numerous indications in many parts of the world indicate that enterprises will be
asked to prove that they implement adequate security procedures; most likely through
having an official security certification. The GLP is an excellent medium for
enterprises certification, especially with respect to international trade security.
Consequently, complying with the GLP requirements is a strategic necessity for many
Jordan enterprises.
SOWT ANALYSIS
The SOWT Analysis identifies the Strengths, Opportunities, Weaknesses and Threats of the
GLP. These dimensions are analyzed in this section.
GLP Strengths
� The GLP is considered a comprehensive "customs due diligence and supply-chain
security" guide that implements internationally-accepted standards.
� The GLP has gained a strong support from the Government of Jordan as represented
by JC and other relevant organizations.
� The GLP is compatible with the requirements of the WCO Framework of Standards to
Secure and Facilitate Global Trade.
� The GLP has benefited from other similar programs like the C-TPAT program of the
United States.
� The GLP has benefited from the international expertise provided by the United States
Agency for International Development (USAID).
� The GLP protects against terrorists acts and, in the awake of the terrorist acts that took
place in Jordan on November 9, 2005, Jordan needs such a program. The
Government of Jordan has a strategic need to apply security measures, including
supply chains security.
� The GLP enhances the contribution of JC and Jordan trade organizations to the
trading sector, and consequently, to the economy of Jordan.
� The GLP, as a risk management tool, is superior to the traditional customs practices
that do not allocate customs resources based on a sound risk management
methodology.
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� The GLP is a great opportunity to Jordan enterprises to gain a unique management
experience.
GLP Opportunities
� Increasing Jordanian enterprises return on investment, profits and sales volumes,
especially from doing business in international markets.
� Paving the way to Jordan enterprises to enter new international market segments.
� When international recognition of the GLP is achieved, especially by Jordan main
trading partners, ample business opportunities in several countries could be
accomplished.
� Marketing Jordan and Jordan enterprises to the international community as a "secure"
country with "secure" enterprises.
� Establishing and sustaining strategic relationships with key international trading
partners such as the United State and European Union Countries.
GLP Weaknesses
� In its current form, the GLP is directed at large enterprises only.
� SMEs are not a primary target for the GLP.
� The implementation of GLP requires a well-qualified staff and significant financial
resources which may be beyond many enterprises abilities.
� Most Jordan’s large trading partners do not have similar programs to the GLP; except
the United States. This implies that the GLP may take long time to achieve
recognition by other trading partners.
GLP Threats
A critical examination of the objectives of the GLP and the "customs due diligence and
supply-chain security" requirements of the program revealed that there are no threats for
Jordan enterprises from joining the program. The GLP aims, primarily, at enhancing
enterprises compliance with international best practices with respect to customs transactions
and security of international trade supply chains.
CRITICAL ISSUES KEYS TO SUCCESS
The success of the GLP in achieving its goal, objectives and sub-objectives, as detailed later,
relies on the following critical issues:
� Each member of the GLP must receive promised benefits as a reward for taking the
initiative to voluntarily participate in the program.
� JC has a strategic role to play in supporting and sustaining the GLP, and making a
success story out of it. A key approach here is that JC should establish and sustain a
strategic and mutually-rewarding partnership with the business community of Jordan.
A health partnership will create enormous benefits for JC and the business community
as well. in Jordan alike.
� Jordan enterprises willing to comply with the GLP requirements should receive
technical support in the form of training programs, technical coaching, etc. JC and
other relevant organizations should seek funding for such programs from Jordan
Government, international organizations, and local and international donor agencies.
� Teamwork is vital. To make the GLP a success, all governmental and non-
governmental organization having a stake in the GLP should work closely together,
especially in marketing the program to Jordan enterprises and driving them to
participate.
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� Raising funds. Sustaining the GLP requires funding which could be raised from local
and international sources.
� Marketing efforts. This marketing strategy is an essential part in promoting the GLP
to all Jordan enterprises and internationally. Implementing the strategy requires
serious collaborations and efforts from all stakeholders. The success of any
marketing strategy relies heavily on commitment, cooperation and team-work of all
stakeholders.
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PHASE II
MARKETING STRATEGY FORMULATION
MISSION STATEMENT
“The GLP is a voluntary, self-compliance program aimed at enhancing customs due diligence
and supply-chain security within the trading community of Jordan, and, at the same time,
facilitating Jordan's trade with other countries. The program improves the performance of
Jordan enterprises, boosts the trading sector, and enhances the growth of the economy. The
program encourages and assists enterprises to implement the state-of-the-art and
internationally-recognized procedures with respect to customs transactions and security of
trade supply chains. The program complies with the WCO Framework of Standards to
Secure and Facilitate Global Trade which came into effect in June, 2005. Jordan enterprises
joining the GLP will be perceived as "diligent" and "secure" enterprises, and thus, will be
treated favorably by their international counterparts. The targeted community of the GLP is
all enterprises in Jordan that participate in the international trading activity; including
importers, exporters, manufacturers, transporters, customs brokers and warehouse operators."
The GLP will benefit:
� Jordan's Economy. The GLP enhances the competitiveness of the trading sector of
Jordan locally and internationally and consequently improves Jordan's economy.
� Jordanian Enterprises. The GLP offers Jordanian enterprises a great opportunity to:
- expand current markets shares and exploit new markets
- increase profits and return on investment
- expedite business transactions and reduce operating costs
- apply the sate-of-the-art best practices
- gain a unique management experience
� Jordan Government. The GLP protects the income of the Treasury via optimal
allocation of JC and other Government Organizations' resources.
� Jordan Security. The GLP enhances borders security, protects cargos and people, and
help prevents terrorist acts.
� International Best Practices. The GLP makes Jordan a pioneer country with respect to
compliance with internationally-recognized best practices (such as the World
Customs Organization Framework of Standards to Secure and Facilitate Global
Trade).
� International Aid Agencies. The GLP demonstrates the success of international aid
agencies in Jordan.
� Jordan People. Jordan people will, ultimately, reap the economic as well as other
aforementioned benefits of the GLP.
MARKET SEGMENTS/ TARGETED ENTERPRISES
The prime market segments for the GLP are importers, exporters, transporters and transport
operators, customs clearing agents, warehouse operators and Qualified Industrial Zone
Manufacturers (manufacturers qualified for duty-free export to the United States). However,
other potential market participants are SMEs. This implies that GLP marketing efforts should
be directed toward targeting all these segments.
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GOALS AND OBJECTIVES
Goal
The GLP is a voluntary, self-compliance program aimed at enhancing customs due diligence
and supply-chain security within the trading community of Jordan, and, at the same time,
facilitating Jordan's trade with other countries. The goal of this marketing strategy is to
accomplish the aim of the GLP.
Sub-Goals
� Making Jordanian organizations aware of the GLP and the rationale behind it.
� Making Jordanian organizations aware of the GLP strategic benefits on the long run.
� Encouraging Jordan enterprises to use the GLP procedures and practices continually
within their business practices.
� Strengthening the relationship between Jordan business community and JC through
the mutual benefits attained to both sides from implementing the GLP.
� Establishing contacts to gain governmental support for the GLP.
� Establishing contacts to gain support for the GLP from international organizations and
international aid agencies.
� Motivating and rewarding GLP member enterprises through promoting them as “good
models” and “references” to encourage other enterprises to join the program.
� Establishing contacts with relevant Jordan government organizations and international
organizations to attain financial support for the GLP.
Objectives
� Recruiting 20 volunteer enterprises a year to implement the GLP requirements.
� Increasing larger-size enterprises’ awareness of the GLP by at least 40% during 2006.
� At least 15 enterprises join the GLP membership after satisfying program
requirements.
� The GLP image: to increase the recognition of the GLP image by at least 50% over
the next three years.
� Promoting the GLP to Jordan’s main trading partners in the international community
in 2006.
� Enhancing the volunteer enterprises’ staff skills and knowledge.
� Decreasing the customs procedures and customs transactions time cycle by at least
30% for each company on the GLP membership list in 2006.
MARKETING STRATEGY COMPONENTS
Service Strategy
GLP Benefits/ Incentives
The GLP aims at enhancing Jordan trade community's self-compliance with customs
requirements and supply chain security best practices. However, these enhancements would
not materialize without paying a price for them. The question then, is the trade community is
willing to pay the expense without any direct benefits or incentives? Obviously, the answer
is no. That is why on several occasions JC has debated the issue of benefits/ incentives with
a number of enterprises from the trade community of Jordan. After lengthy debates, JC has
approved to offer GLP member enterprises a number of "direct" benefits/ incentives. In
addition, the GLP has a number of "indirect" benefits that are not related to JC. Both direct
and indirect benefits are discussed in the following two sub-sections.
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Direct Benefits
JC will offer the following benefits/ incentives to all enterprises that gain membership in the
GLP.
� Reduced frequency of cargo shipment inspections by JC (more frequent use of the
green-lane processing at all border crossings). GLP member companies will enjoy
expedited customs border processing.
� Reduced goods post-release compliance audits. Customs inspections of companies’
books to verify duty payment and general compliance with the customs law will be
less frequent for GLP member companies.
� Pre-arrival clearance of goods. Completion of customs transactions formalities will
take place before goods arrival for GLP member companies.
� Minimum levels of financial penalties. GLP member companies will enjoy the
minimum levels of penalties when inadvertently make an error on a customs
transaction. In addition, fines might be paid in installments without interest. (This
facility will depend on the monetary amounts owed to JC and the duration for paying
such amounts).
� Goods release before completing customs formalities. GLP member companies could
take possession of their goods against certain securities before completing customs
formalities.
� Security facilities. GLP member companies will be able to benefit from taking
possession of their goods against lesser financial securities.
� Clearance of goods during off-work hours. Customs will strive to clear goods for
GLP member companies even during customs off-work hours.
� JC will recognize the GLP member companies via publishing their names on JC
website. (This is an important feature to the GLP as JC continuously validates the
status of a GLP member company.)
� JC will seek recognition of the GLP from other countries, which will reflect positively
on GLP member companies.
� Annually, JC will declare the best three companies on the GLP and will recognize
these companies via a celebration event.
� JC will continue to negotiate additional benefits with all GLP member companies on a
one-to-one basis. (Note: The JC will take care in the one-to-one benefits to recognize
the advantages of tailoring customs services to the client needs but at the same time
maintain a transparent process.)
Indirect Benefits
In addition to the above benefits offered by JC, GLP member companies, because they
implement the state-of-the art best practices of customs due diligence and supply-chain
security, are expected to enjoy the following benefits as a natural outcome.
� Reduced Customs Transactions Costs: Due diligent and secure companies are always
favored by Customs Departments. Regardless of being offered formal facilities/
incentives like the above or not, due diligent and secure companies, because of the
trust placed on them by Customs, enjoy an expedited processing for their transactions.
Of course, this translates into cost savings, and consequently a competitive advantage
in the markets where they operate.
� Marketing Tool: The trade community in one country is linked to the trade
communities in other countries. For example, a due diligent and secure importer in the
United States of America would prefer a due diligent and secure exporter/
manufacturer from Jordan as a trade partner. Therefore, a Jordanian exporter/
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manufacturer which implements "customs due diligence and supply-chain security"
procedures would gain preference over other exporters from Jordan or from other
countries. The same applies to all supply-chain companies; due diligent companies
always prefer to deal with each other.
� International Mandate: In the developed world, all supply chain companies are
already in the race of showing off their "customs due diligence and supply-chain
security" systems. This means, in the near future, almost all international trade
activities will be carried out by due diligent and secure supply chains. Soon, no place
will be left for non due diligent companies; it seems that the choice now is between
being a due diligent company or a company with no business. It is extremely
important for Jordan supply chain companies to realize that due diligence and supply-
chain security systems are not anymore a choice, rather, they are an international
mandate.
� Reduced Operating Costs: Due diligent and secure companies, whether supply chain
or not, always receive favorable treatment from governments and private-sector
organizations. A due diligent company would be offered more discounts on its
purchases, better payment terms, more finance by banks, reduced insurance rates, etc.
All these facilities are gained because of the high trust others place on due diligent
and secure companies. Of course, all these and similar facilities ultimately translate
into reduced company operating costs.
� Prevention of Errors and Mistakes: Because a due diligent and secure company has
written procedures for performing all its business operations, it is less likely that this
company will make errors on Customs transactions or other business transactions.
This is very important to avoid unnecessary delays in Customs transactions, and to
avoid additional non-justified costs.
� Due Diligence is a Legal Defense Mechanism: Due diligence and supply-chain
security is considered an important mechanism to defend a company, its directors,
managers and employees who could be otherwise found liable under the laws. With
the presence of a due diligence and supply-chain security system, it is much easier to
justify, especially from the legal view point, the company’s actions, decisions, etc.
� Management Tool: Managements of supply chain companies frequently employ due
diligence as a management tool to encourage the careful assessment of business
operations, and the reasonable steps required to avoid making mistakes.
� Performance-Measurement Tool: Supply chain companies always assess their
performances against to what is stipulated by the due diligence procedures.
Enhancements and corrective measures are normally recommended based on the
deviations from what is required by the written due diligence procedures.
� Especially Important for Jordan Supply Chain Companies: Compared to other
countries, Jordan supply chain companies will benefit more from implementing due
diligence and supply-chain security procedures. The first reason is that the US and
the European Union Countries are the pioneers in due diligence; Jordan has free trade
agreements to capitalize-on with these countries through the utilization of due
diligence. The second reason is that Jordan will be among the first few third-world
countries, and the first in the Middle East region, to implement due diligence and
supply-chain security, thus, will reap its benefits earlier.
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GLP Branding Strategy
The most suitable approach to brand the GLP within the trading community of Jordan and
world-wide is to focus on the core benefits offered by the GLP. For Jordan enterprises that
are looking to enter the international markets, the GLP offers a unique opportunity to exploit
new market opportunities, increase profits and return-on-investment, minimize operating
costs, expedite business transactions, improve business management skills and achieve higher
quality business operations. The cost of joining the GLP is a temporary variable cost that
offers strategic returns to all enterprises on the long run. World-wide, the GLP sends a
crucial message to Jordan main trading partners in the international trading community; they
can have secure business transactions with minimal risk, and free terrorist threats to their
businesses and countries. Having said that, the recommended branding strategy for the GLP
is: "Security, Protection and Opportunity" (SPO).
The communications tools recommended to help positioning and branding the GLP within
the trading community of Jordan and world-wide are:
� Jordan business associations should promote the program in their periodic
publications and on their websites. JC has a Consultative Council with few members
representing the private sector. The Council could play a role in this process.
� A logo has been developed for the GLP which should be used by JC and all other
stakeholders in their communications locally and internationally.
� Publishing the GLP logo on GLP member companies' websites with a hotlink to the
JC's website.
� GLP member companies could insert the GLP logo on their stationery.
� GLP member companies could include the program logo and summary-explanation to
their sales and promotional brochures.
� JC should develop a separate web page on the department's website where all relevant
GLP information made available.
� JC has prepared a brochure containing summary-information about the GLP. The
brochure could be distributed via all national customs centers.
� GLP member companies could inform their trade/ business partners about the
program and how they attained the GLP status.
� Allowing truck signs with the GLP logo.
� JC could issue certifications to foreign companies verifying the status of Jordan
companies on the GLP.
� Adding GLP logo to business cards.
� GLP member companies could advertise their status in target markets.
� GLP member companies could present any awards and recognition letters received
from JC.
� Wall plaques could be developed and used by GLP member companies and JC.
� Holding a large-scale annual conference for the GLP and inviting local and
international representatives and the press.
� Poster advertisements at customs centers, border crossing points, airports, Chambers
of Commerce, Qualified Industrial Zone (QIZ) offices and trade association offices.
� JC seeks mutual recognition status for the GLP under the WCO Framework of
Standards with the United States Customs and Border Protection (USCBP) as an
equivalent supply-chain security program to the US C-TPAT program.
� JC seeks mutual recognition status for the GLP under the WCO Framework of
Standards with Jordan's main trading partner countries.
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� JC opens dialog directly with the US counterparts in USCBP to begin a formal review
of the Jordan customs GLP for customs-to-customs mutual recognition.
� Seek signature of the Director General of JC on the Letter of Intent of the WCO
Resolution of the Customs Co-operation Council on the Framework of Standards to
Secure and Facilitate Global Trade.
� Send Letter of Intent to the Secretary General of the WCO, which will confirm
Jordan’s decision to fulfill the Framework of Standards to Secure and Facilitate
Global Trade.
Communications Strategy
Marketing communications strategy is considered a core part of the overall marketing
strategy of the GLP and should be used to communicate the GLP benefits to enterprises with
the purpose of persuading them to participate in program. It should be clear from the outset
of the marketing efforts that there is no single marketing communications tool able to
communicate the GLP benefits to the trading community inside or outside Jordan. Rather, a
number of marketing communications tools should be used simultaneously. In addition, all
communications tools must be integrated together and should be consistent in delivering a
unified message about the GLP inside and outside Jordan. The integration and consistency
between the different tools will enable the marketing strategy to achieve its goals and
objectives and build the desired brand (image) for the GLP.
Communications Tools
Figure 1 shows a recommended set of marketing communications tools to effectively
communicate the GLP to the trading community inside and outside Jordan. As shown in the
figure, the recommended tools are:
� Personal marketing, especially by JC.
� Using the Internet/ Websites.
� Advertising in newspapers and specialized magazines.
� Public relations.
� Posters, stationary, brochures, etc.
� National and international events such as sponsoring and/ or participating in national
and international conferences in the are of customs due diligence and supply-chain
security.
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Figure 1. GLP Marketing Communications Tools.
The success of the GLP marketing communications depends on key roles that should be
played by key public- and private-sector partners or stakeholders who have a stake in the
success of the GLP. The key stakeholders include the following organizations:
� Jordan Customs (JC)- a governmental organization.
� Jordan Enterprise Development Organization (JEDCO)- a governmental organization.
� Jordan Investment Board (JIB)- a governmental organization.
� Jordan Exporters Association (JEA)- a private sector representative organization.
� International Aid Agencies.
� Jordan Embassies abroad.
The communications tools that could be used by these organizations are described below.
Communications Tools by JC
JC has a fundamental role to play in marketing the GLP to Jordan enterprises and Jordan
main trading partners in the international community. The GLP is in Jordan’s national best
interests as the program enhances Jordan’s security, improves economic growth and markets
the whole country as a secure trading partner in the international community. JC is the most
important governmental body with respect to marketing the GLP since securing Jordan’s
borders and Jordan businesses are at the heart of JC vision and mission. In addition, JC has
close ties with the trading community inside Jordan, and foreign customs services/
departments outside Jordan. Consequently, it is reasonable to say that JC should take the
responsibility of implementing a major part of the GLP marketing strategy. JC can use the
following marketing communications tools to promote the GLP:
� Personal marketing, especially to the trading community of Jordan.
� JC website.
� Advertising in newspapers.
� Brochures and other printed materials.
� Sponsoring national events and conferences.
Marketing Strategy
Communications Tools
Personal
Marketing
Websites or
Websites
Links
Advertising Public
Relations
National &
International
Events
Posters &
Brochures
…etc
Communicating the GLP Benefits to the Targeted
Organizations/ Enterprises Inside & Outside Jordan
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Communications Tools by JEDCO, JIB and JEA
Jordan Enterprise Development Corporation (JEDCO), Jordan Investment Board (JIB) and
Jordan Exporters Association (JEA) are of crucial and strategic importance to communicating
the GLP to Jordanian enterprises as well as key trading partners in the international
community. Each of the above organizations’ vision and mission has an indirect
responsibility toward promoting the GLP inside and outside Jordan. JEDCO has the
responsibility of developing the capacity of Jordan enterprises and making them more
competitive in the international markets. Of course, joining the GLP by Jordan enterprises is
a part of fulfilling this responsibility. JIB has the responsibility of attracting foreign
investments; however, foreign investors always demand a secure environment for their assets.
The GLP enhances the security of Jordan enterprises and the country at large; thus makes
Jordan a more attractive environment for foreign investments. JEA aims at assisting Jordan
exporters to exploit new foreign markets which are now-a-days extremely cautious to the
security of cargo shipments and the supply chains carrying them. The GLP enhances the
security of Jordan exporters and Jordan-side supply chains; thus facilitates entry of Jordan
exports into foreign markets. JEDCO, JIB and JEA can use the following marketing
communications tools to promote the GLP:
� Using their websites.
� Advertising in specialized magazines.
� Public relations.
� Posters and brochures.
Communications Tools by International Aid Agencies
International aid agencies such as the United States Agency for International Development
(USAID) are friends of Jordan, and could play a significant part in promoting the GLP to
organizations inside and outside Jordan. These agencies are important communications
channels since they have built an international credibility and have become well-known in
many countries. For example, the USAID can promote the GLP through the many funded-
programs the agency implements in Jordan. A second example is that USAID could spread
awareness about the GLP to the US enterprises. A third example is that USAID could
facilitate for the recognition of the GLP by the US and other countries where USAID has
large aid programs. International aid agencies, including the USAID, can help through:
� Their funded aid programs in Jordan and other foreign countries.
� Using their websites.
� Public relations.
� Posters and brochures.
� Sponsoring national events and conferences.
Communications Tools by Jordan Embassies Abroad
Jordanian embassies abroad have a very important role to play in promoting the GLP on the
international level. Awareness about the GLP could be spread to almost all countries around
the globe if Jordan embassies are well-equipped to undertake this function. However,
embassies efforts should start with Jordan's current main trading partners and potential future
main partners. Embassies can promote the GLP through:
� Participating in the economic forums and conferences that take place in the countries
where Jordan embassies operate.
� International economic events that take place in different parts of the world.
� Distributing the GLP brochures and printed material.
� Launching promotional campaigns through their websites.
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� Communicating with the governmental and non-governmental economic bodies in the
countries where Jordan embassies operate.
� Participating in trade exhibitions in the countries where Jordan embassies operate.
Budgeting Strategy
Adequate financial and non-financial resources are required to enable this marketing strategy
achieve its goals and objectives. The size of the required budget will depend on how much
effort will be accomplished directly, i.e using own resources, by the partner organizations
(JC, JEDCO, JIB, JEA and Jordan Embassies). If most of the effort will be undertaken by the
partner organizations and using their own personnel time, an annual budget in the range of JD
150,000-200,000 over the next 3-5 years would be adequate. The range would escalate
depending on how much personnel effort will be contracted out. However, regardless of its
size, the budget should be assigned to cover the following aspects of the strategy:
Share of Available Budget
1. Personnel marketing costs 40%
2. Advertising in newspapers and specialized magazines 20%
3. Designing websites or websites links 5%
4. Brochures and posters 5%
5. Stationary and printed Material 5%
6. Participating in national and international conferences 15%
7. Trade Shows and Exhibitions 10%
100%
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PHASE III
MARKETING STRATEGY IMPLEMENTATION
Marketing strategy implementation is turning the GPL marketing strategy into actions that are
able to achieve the strategy goals and objectives. This requires a clear understanding of the
GLP marketing organization, implementation activities and performance assessment
mechanisms. The implementation activities must be linked to the goals and objectives of the
marketing strategy itself, while the performance assessment mechanisms measure how much
success has been accomplished. The marketing organization describes the organizations
involved in the implementation process and the roles each party plays.
MARKETING ORGANIZATION
Marketing organization is a vital step for the success of implementing any marketing strategy.
Marketing organization design includes consideration of the trade-off between performing
marketing functions within the GLP initiator (JC) and having them performed by other
partner organizations. Figure 2 presents a recommended model organization structure that
could be followed by through out the implementation of the marketing strategy. In the below
discussion, reference is made to the model organization of Figure 2.
JC is the initiator of the GLP and has a major role to play both inside and outside Jordan.
Outside Jordan, JC could make the necessary contacts with foreign-country customs
departments/ services for the purpose of attaining mutual recognition of the GLP from these
departments/ services. JC has the facility under the Customs-to-Customs Pillar of the WCO
Framework of Standards to Secure and Facilitate Global Trade to seek recognition of the
GLP. Practically, JC should seek recognition from Jordan's current main trading partners, to
be followed with Jordan's potential trading partners. Also, JC, along with the rest of partner
organizations, could provide support to Jordan embassies abroad to enable them spread
awareness about the GLP to other countries. Inside Jordan, JC could team up with other
partner organizations (JEDCO, JIB and JEA) to market the GLP to the trading community of
Jordan.
JEDCO could play the role of a coordinator to the partner organizations efforts. JEDCO
could make a constructive connection between the GLP program initiator (JC) and other
organizations like International Aid Agencies, JIB, JEA and Jordan embassies abroad.
JEDCO could also play a vital role in marketing the GLP directly to Jordan enterprises.
Jordan embassies abroad are ideally situated to spread awareness about the GLP to the
international trading community. However, embassies can not undetake this mission without
support from all other partner organizations.
International Aid Agencies, JIB and JEA have local and international connections to enable
them market the GLP locally and internationally.
The GLP marketing consultant could provide supervisory role to the whole process, advice
all partner organizations, update the strategy when deemed necessary and design appropriate
assessment studies.
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Figure 2. Marketing Organization for GLP Marketing Strategy Implementation
PARTNER ORGANIZATIONS ROLES
Below is a description of the recommended roles that could be played by the different partner
organizations.
Jordan Customs (JC)
JC could undertake the following activities:
� Maintain and update all technical materials pertaining to the GLP.
� Communicate the benefits of the GLP to all organizations transacting with JC.
Customs Departments in Main
Trading Partner Countries &
World Customs Organization
The Trade Community
of Jordan
The International
Trade Community/
World-Wide
Economic Events
Jordan Enterprise
Development
Corporation /
JEDCO
GLP
Marketing
Consultant
Jordan
Customs /
Golden List
Program
International
Aid Agencies
Jordan
Investment
Board / JIB
Jordan
Exporters
Association /
JEA
Jordan
Embassies
Abroad
GLP
Coordinator /
JEDCO
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� Undertake a timely audit on any enterprise that requests inclusion on the GLP.
� Provide technical expertise and guidance to enterprises, and assist them throughout
the whole process of becoming a GLP member.
� Supply all required technical materials that may be requested by other partner
organizations.
� Supply all required technical materials that may be requested by government and non-
government organizations inside and outside Jordan; including Jordan embassies
abroad and International Aid Agencies.
� Make a timely update to the list of GLP members and make the list available on its
website.
� Seek mutual recognition for the GLP from other countries, especially the main trading
partners of Jordan.
Jordan Enterprise Development Corporation (JEDCO)
JEDCO could undertake the following activities:
� Act as a coordinator between JC and all other partner organizations.
� Act as a coordinator between all partner organizations and Jordan embassies abroad.
� Communicate the benefits of the GLP to all enterprises transacting with JEDCO.
� Spread awareness about the GLP during national and international events JEDCO
holds or participates-in.
� Use the GLP as a tool in developing and enhancing the competitiveness of Jordanian
enterprises; especially enterprises intending to exploit new markets.
� Use the GLP status as a marketing advantage for Jordanian enterprises.
� Participate in the implementation of the marketing strategy of the GLP and according
to the decisions to be made jointly by all partner organizations.
� In coordination with the other partner organization, to seek funding for the
implementation of the marketing strategy from government and non-government
organizations, including international aid organizations and agencies.
Jordan Investment Board (JIB)
JIB could undertake the following activities:
� Communicate the benefits of the GLP to all enterprises transacting with JIB,
including all enterprises benefiting from JIB's tax relief incentives.
� Spread awareness about the GLP in the countries where JIB has presence or intends to
have presence.
� Spread awareness about the GLP during national and international events JIB holds or
participates-in.
� Use the GLP as a tool, among other tools, in marketing Jordan as a "secure
environment" for foreign investments.
� Use the GLP status as a marketing advantage for Jordanian enterprises; especially
those enterprises seeking international alliance with foreign investors and
counterparties.
� Use the GLP as a marketing tool to attract foreign enterprises to operate in Jordan.
� Participate in the implementation of the marketing strategy of the GLP and according
to the decisions to be made jointly by all partner organizations.
� In coordination with the other partner organizations, to seek funding for the
implementation of the marketing strategy from government and non-government
organizations, including international aid organizations and agencies.
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Jordan Exporters Association (JEA)
JEA could undertake the following activities:
� Communicate the benefits of the GLP to all enterprises transacting with JEA,
including all exporters currently listed on JEA's data base.
� Spread awareness about the GLP in the foreign countries JEA visits from time to time
to promote Jordan exports.
� Spread awareness about the GLP during the trade shows, conferences, etc., JEA holds
or participates-in inside and outside Jordan.
� Use the GLP as a tool in marketing Jordan exporters as "secure exporters".
� Use the GLP status as a marketing advantage for Jordanian exporters to exploit new
markets.
� Participate in the implementation of the marketing strategy of the GLP and according
to the decisions to be made jointly by all partner organizations.
� In coordination with the other partner organizations, to seek funding for the
implementation of the marketing strategy from government and non-government
organizations, including international aid organizations and agencies.
International Aid Agencies
International aid agencies such as the United States Agency for International Development
(USAID) are friends of Jordan, and could play a significant part in promoting the GLP to
organizations inside and outside Jordan. These agencies are important communications
channels since they have built an international credibility and have become well-known in
many countries. For example, the USAID can promote the GLP through the many funded-
programs the agency implements in Jordan. A second example is that USAID could spread
awareness about the GLP to the US enterprises. A third example is that USAID could
facilitate for the recognition of the GLP by the US and other countries where USAID has
large aid programs. The same thing applies to all other International Aid Agencies that have
a permanent presence in Jordan.
Jordan Embassies Abroad
Jordan embassies abroad have a very important role to play in promoting the GLP on the
international level. Awareness about the GLP could be spread to almost all countries around
the globe if Jordan embassies are well-equipped to undertake this function. However,
embassies efforts should start with Jordan's current main trading partners and potential future
main partners. Embassies can undertake the following activities:
� Participating in the economic forums and conferences that take place in the countries
where Jordan embassies operate.
� Participating in international economic events that take place in different parts of the
world.
� Distributing the GLP brochures and printed material.
� Launching promotional campaigns through their websites.
� Communicating with the governmental and non-governmental economic bodies in the
countries where Jordan embassies operate.
� Participating in trade exhibitions in the countries where Jordan embassies operate.
FIRST YEAR MARKETING PLAN
The first year marketing plan is a tactical plan that pinpoints a set of marketing activities to
be performed for the purpose of achieving some of the goals and objectives of the GLP
marketing strategy in the first year (year 2006). These activities are described in the
following phases of implementation:
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Phase 1: A high-level meeting should be held between the GLP marketing partner
organization (JC, JEDCO, JIB and JEA) to assign duties and responsibilities, and coordinate
future moves and actions.
Phase 2: The GLP marketing partner organizations (JC, JEDCO, JIB and JEA) should sign a
Memorandum of Understanding in which they declare their commitments and support to a
marketing campaign starting early 2006. Preferably, a joint committee in which each partner
organization is represented by a senior officer should be formed. The committee should be
tasked with undertaking all necessary steps to:
4. Market the GLP nationally with the ultimate goal of increasing the membership of the
GLP.
5. Market the GLP internationally with the ultimate goal of securing and facilitating
Jordan's trade with other countries.
6. Implement the marketing strategy of the GLP and update the strategy from time to
time as deemed necessary.
Phase 3: Each partner organization (JC, JEDCO, JIB and JEA) should prepare a plan that
describes the activities the organization intends to undertake along with a reasonable
timetable for implementation.
Phase 4: Preferably, the partner organizations should launch a ceremony in which they
declare the commencement of the GLP marketing campaign locally and internationally. The
participation of local governmental- and private-sector organizations and international
organizations and aid agencies in such a ceremony is essential to win their support and
commitment to the GLP marketing efforts.
Phase 5: When to launch the GLP marketing efforts? The appropriate time to launch the
GLP marketing efforts in Jordan and abroad is in the first quarter of year 2006, preferably in
March. The rationale for choosing this time is that the GLP marketing partner organizations,
and the required marketing materials, should be ready by that time.
Phase 6: Where to launch the GLP marketing efforts? In the first place, the GLP marketing
efforts should target larger enterprises from the trading community of Jordan. The
communications tools described in the marketing communications strategy should be used.
Phase 7: To whom to aim the launch? In addition to the larger enterprises of phase 6 above,
the GLP should be launched to (a) organizations that are expected to respond and co-operate
quickly, (b) organizations that are likely to have an important leadership role for others, and
(c) organizations that have regional and international business transactions and/ or presence.
Phase 8: How to launch? The communications tools described in the marketing
communications strategy should be used simultaneously by all partner organizations.
Phase 9: JC may start dialogues with other customs services/ departments of other countries
as of April, 2006. Dialogues should be started with Jordan's main trading partners. The aim
of the dialogues is to gain recognition for the GLP, and gain benefits for the GLP member
enterprises.
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Phase 10: The GLP partner organizations' joint committee, represented by the coordinator
(JEDCO), should start contacting the Jordanian embassies abroad explaining to them what
roles they can play and supplying them with the necessary marketing materials.
Phase 11: The GLP marketing partner organizations should start executing the GLP
branding strategy described under the GLP branding strategy section.
Phase 12: The GLP marketing partner organizations, represented by their joint committee,
should establish contacts with reputable advertising agencies in order to develop advertising
materials and campaigns in Arabic and English. This phase could be undertaken internally
by the partner organizations themselves if they have the capacity to do so.
Phase 13: The GLP marketing partner organizations, represented by their joint committee,
should monitor the progress of the marketing efforts through periodic reviews, brain-storming
meetings and performance assessments. Corrective actions should be taken when deemed
necessary.
Phase 14: The GLP marketing partner organizations, represented by their joint committee,
should execute performance assessments periodically to measure the level of success of the
marketing efforts. Performance assessment mechanisms are described later in this document.
Phase 15: The GLP marketing efforts timetable. Figure 3 presents a guide timetable for the
GLP marketing campaign during the year 2006. It should be noted that this timetable is a
guide only and may be modified by the partner organizations via their representatives in the
joint committee.
* Some of the GLP partner organizations meetings may take place in December, 2005.
Figure 3. First Year Marketing Plan Timetable (for the year 2006).
Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Marketing Activity
Phase 1*
Phase 2
Phase 3
Phase 4
Phase 5
Phase 6
Phase 7
Phase 8
Phase 9
Phase 10
Phase 11
Phase 12
Phase 13
Phase 14
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CONTROL AND PERFORMANCE ASSESSMENT
Control Process
Marketing control and performance assessment are essential parts of the any marketing
strategy implementation to assure that the marketing campaign is achieving its pre-
determined goals and objectives. A marketing control process for the GLP is described in
Figure 4. There are four steps in the control process from top to bottom. Step 1 is realizing
what the marketing partner organizations intend to achieve from their efforts. Step 2 is
realizing what is happening in reality, which might be different from what they intended to
achieve. Step 3 is trying to identify the reasons behind not achieving what they intended to
achieve. And step 4 is identifying appropriate corrective measures to restore the original
state of conformity to the goals and objectives. Implementing this control process works as
an “early warning system” that provides the GLP marketing organizations a sufficient
feedback with respect to any undesirable deviations during the implementation phase. Also,
the control process enables the partners to take corrective actions at an early stage.
Figure 4. GLP Marketing Control Process.
GLP Goals and Objectives: What
the GLP Marketing Partner
Organizations Want To Achieve?
GLP Marketing Performance
Measurement: What is Happening
in Reality? (During
Implementation in 2006)
Taking Corrective Actions: What
Should the GLP Partner
Organizations do about Deviations
from the Marketing Plan?
GLP Performance Diagnosis:
Why is Happening?
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Performance Assessment
Performance assessment aims at appraising the extent to which the marketing efforts have
accomplished the pre-determined goals and objectives. Performance assessment may include
quantitative methods as well as qualitative ones. Recommended assessment methods are
described below.
Quantitative Methods
These methods are objective in nature however, not all phenomena lend themselves to such
methods. Recommended quantitative methods may include:
� Number of companies started to implement the GLP requirements (even without
applying to JC to join the program).
� Number of companies officially applied to JC to join the GLP.
� Number of customs services/ departments that decided to hold dialogue with JC for
the purpose of recognizing the GLP.
� Number of inquiries received by JC from other countries' customs services/
department requesting information about the GLP.
� Percentage of companies that becomes aware of the GLP and its benefits.
� Decreased customs transactions time cycles for GLP member enterprises.
� Decreased operating costs for GLP member enterprises.
� Extent to which the GLP opens new business opportunities for GLP member
enterprises.
Qualitative Methods
These methods are subjective in nature however, certain phenomena lend themselves more to
these methods, and sometimes they are the only tools available. Recommended qualitative
methods may include:
� Conducting a survey that aims at understanding the perceptions of the business
community in Jordan concerning the GLP. The targeted perceptions should include
important aspects such as awareness of the presence of the GLP, the image of the
GLP within the business community, awareness of the direct and indirect benefits of
the GLP, and the willingness to participate in the GLP.
� Conducting a set of in-depth interviews and focus groups discussions with the
business community of Jordan to understand their thoughts, believes and viewpoints
concerning the GLP and how to make them join.
� The extent of success of JC in achieving mutual recognition for the GLP, and benefits
for the GLP member enterprises; especially among Jordan's main trading partners.
� The extent of success of Jordanian embassies abroad in spreading awareness about the
GLP in the countries where they operate.
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GLP SCENARIOS
As with any marketing strategy, a number of desirable and undesirable scenarios may be
faced by the GLP partner organizations. This is natural since every country and every
business enterprise now-a-days operates in a highly dynamic and more complicated
environment than ever before. The GLP partner organizations should be able to develop
contingency plans to deal with each of the following scenarios if materialized:
� What the GLP partner organizations should do if the programs, like GLP, become
highly visible within the international trading community, and thus force many
trading enterprises to join them.
� What the GLP partner organizations should do if the trading community of Jordan has
responded more positively than anticipated to the call to join the GLP.
� What the GLP partner organizations should do if the trading community of Jordan has
responded less positively than anticipated to the call to join the GLP.
� What the GLP partner organizations should do if the trading community of Jordan has
demanded financial and technical support as a priori for joining the GLP.
� What the GLP partner organizations should do if JC has achieved a mutual
recognition for the GLP with its counterparts in a relatively short period of time.