21. U.S.-Jordan Free Trade Area Agreement (JFTA)

 

21. U.S.-Jordan Free Trade Area Agreement (JFTA) 

 The United States-Jordan Free Trade Area agreement went into effect on December 17,  2001, and provides for the elimination of tariffs on almost all qualifying goods within 10 years. 

Eligible Items 

JFTA benefits apply to tariff items listed in the Harmonized Tariff Schedule and  identified by “JO” in the Special column. 

Eligibility Requirements, General 

An article imported into the customs territory of the United States is eligible for JFTA  preference if: 

• It was wholly obtained or produced entirely in Jordan with no foreign inputs; or  • It is a “product of” Jordan, and the sum of (1) the cost of the materials produced  in Jordan, plus (2) the direct costs of processing performed in Jordan is not less  than 35 percent of the article’s appraised value at the time it enters the commerce  of the United States. Materials produced in the United States that do not to exceed  15 percent of the article’s appraised value may be applied toward the 35 percent  threshold; and 

• The article is imported directly into the United States. 

Eligibility Requirements, Textiles And Apparel 

Textile and apparel articles, with exceptions, are subject to the same “substantial  transformation plus 35 percent” value-content rule as non-textiles (see General Note 18(d)). 

Qualified Industrial Zones 

 The JFTA does not affect merchandise entered from a Qualifying Industrial Zone (QIZ).  Because duty reductions for some products will be staged, importers may chose to continue  entering qualifying merchandise under the QIZ, rather than under the JFTA. 

Certification 

CBP does not require presentation of a certificate of origin. By making the preference  claim, the importer is deemed to certify that the goods meet the requirements of the agreement. 

Documentation 

The importer shall be prepared to submit to CBP a declaration setting forth the pertinent  information concerning the article’s production or manufacture and all supporting documentation  upon which the declaration is based. This information must be retained in the importer’s files for  five years. The importer’s failure to provide the declaration and/or sufficient evidentiary  documentation will result in the claim’s denial. 

Merchandise Processing Fees 

The JFTA provides no exemption from payment of the merchandise processing fee. 

Sources Of Additional Information 

Additional information is available on CBP’s Website at: 

www.cbp.gov/xp/cgov/import/international_agreements/free_trade/usjfta.xml or  www.cbp.gov/xp/cgov/import/textiles_and_quotas/. 

Information can also be found on the U.S. Trade Representative Website,  www.ustr.gov/Trade_Agreements/Bilateral/Jordan/Section_Index.html . 

References 

• Presidential Proclamation 7512, December 7, 2001, 

• Public Law 107-43, September 28, 2001, 

• Harmonized Tariff Schedule of the United States, General Note 18.