Finance Minister Mohammad Al-Ississ announced on Monday the reduction and unification of customs duties on goods, noting that the decision will help reduce administrative diligence, which will positively reflect on the private sector and the economy in general.

Al-Ississ stressed during a press conference held at the Ministry of Finance that "this decision is in the interest of the Jordanian citizen first, by enhancing his purchasing power, in addition to activating the trade and tourism sectors."

He pointed out that the decision to replace the customs tariff excludes imported goods such as tobacco, vehicles and alcohol, indicating that the decision will come into effect next week, after the issuance of this month's issue of the Official Gazette.

Al-Ississ also indicated that this decision helps reduce administrative diligence, which will positively reflect on the private sector and the economy in general.

Al-Ississ stressed that reducing the cost of customs compliance to approach the costs of tax evasion and avoidance will lead to reducing smuggling and regulating the market.

The Ministry of Finance also decided to cancel the manufacturing equation in order to reduce the administrative burdens on Jordanian industry, according to Al-Ississ.

Under the new tariff, all materials except those produced by Jordanian industry in the engineering and construction industries, furniture, food industries and some other industries will be subject to categories (0%) and (5%) only.

He explained that the other sectors above, the customs tariff will be under four categories: (15%) and (25%) during the first three years of implementing the decision, so that the highest category will decrease from (25%) to (20%) for two years after that. The category (20%) will decrease again to (15%) in 2027.

Therefore, the customs tariff schedules will be subject to three categories from 1-1-2027, which are: 0%, 5%, 15%.

Al-Asas said that the Customs Department is now witnessing measures to facilitate and alleviate the burden on citizens and the private sector.

"The subject of the customs tariff is part of the measures taken by the Ministry of Finance and the Customs Administration for customs reform, which are structural reforms In general, according to Al-Assas.

Speaking about smuggling, Al-Assas said: “When the cost of customs compliance approaches the cost of evasion, compliance will increase and this will have a positive impact on the public treasury.”

“Everything with fees of 5-40% will decrease and be unified at 4%, and everything with fees of less than 5 and even zero will be unified at 0%; Meaning most imported goods, of course with the exception of cars, tobacco and alcohol, the goods will be unified and reduced to two categories, 0 and 5%, and this is a major radical change and we hope it will greatly reduce smuggling,” according to Al-Asas.

Al-Asas presented examples of some customs categories and their current fees compared to the new fees. For clothing, the customs fees were 20%, now 5%, and shoes 30%, now 5%.

“The sectors I mentioned earlier, the engineering and construction industries, furniture and food industries, for which we have a competitive industry, we will continue to provide some protection for them and the current tariff will range between two categories only,” according to Al-Asas.

Prime Minister Bisher Al-Khasawneh announced on Sunday that the Council of Ministers had taken a decision (Sunday) to restructure the customs tariff; in a way that enhances the competitiveness of the economy, which is “part of a comprehensive customs reform” in Jordan.

Al-Khasawneh explained during a press conference at the Prime Ministry, to announce government measures and programs aimed at enhancing customs reforms and developing the infrastructure For the communications sector, and to enhance employment opportunities, "the number of customs duty categories will be reduced to 4 categories instead of 11 categories."

The previous 11 customs duty categories ranged between zero and 40%; while the 4 new customs duty categories will range between 0 and 25% only, according to Al-Khasawneh.

He stated that "restructuring the customs tariff is part of a comprehensive customs reform that includes reviewing procedures for the purpose of simplifying them and ensuring that powers are not abused."

Al-Khasawneh stressed the "positive impact" of restructuring the customs tariff on suppliers and traders, and it will facilitate their activities and businesses, and is reflected in reducing costs, time and effort.

He spoke about the fact that this measure "will contribute to strengthening purchasing power locally, and providing many of citizens' needs at better prices."

The restructuring of customs tariffs comes to "facilitate and clarify customs procedures, promote the human element, and reduce human intervention in these procedures because it would guide the entire process and reduce opportunities for any of the few aspects of corruption," according to Al-Khasawneh.

The "central" goal of all of this, according to Al-Khasawneh, is "to reduce the final costs on citizens and facilitate procedures for suppliers and workers in the shipping field."

He pointed out that "the general reference for control at the borders will be the General Customs Department, and the rest of the agencies will work under its umbrella" in an effort to "reduce the long procedures in which goods wait to enter until they obtain the necessary permits from the control and competent authorities."

He stressed that this matter "will radically and fundamentally reduce the number of days required for the entry of goods, improving the business and investment environment."

Al-Khasawneh spoke about a national electronic window "currently under construction" that will work on pre-clearance of shipments coming to Jordan according to "an automated process that reduces friction with the human element."

He touched on a new classification of shipments coming to Jordan on three colored routes: red, green and yellow, in an effort to "reduce time, procedures and costs."

This, according to Al-Khasawneh, will help "reduce pressure on ports" and reduce the time required to release goods from 9 days to 3 days.