Jordan Times
Wednesday, October 13, 2004
Cabinet reduces customs on industrial inputs for garment manufacturing
By Rami Abdelrahman
AMMAN — The Cabinet authorised on Tuesday a reduction in customs on a
wide-ranging list of imported industrial inputs necessary for manufacturing
clothes, Finance Minister Mohammad Abu Hammour announced.
Abu Hammour said that upon directives from His
Majesty King Abdullah, a joint recommendation was submitted by the Ministry of
Finance and the Ministry of Industry and Trade to the Council of Ministers to
lower the customs on some industrial inputs that were not included in previous
customs reductions.
The minister indicated that Tuesday's decision which cut customs on inputs like
cotton, wool and fibre aims at supporting the garment making sector in the
Kingdom to be able to further compete internationally and increase its exports.
Garment industry has become the country's main exporting industry as it
represents about 30 per cent of all exports.
The reductions was countered by another Cabinet decision that raised customs on
imported dead and live enzymes from 15 to 20 per cent, and increasing customs on
imported polymers used for radiators from 5 to 15 per cent in order to support
local producers of these materials,
According to the finance minister, local producers of radiators “are facing
unfair competition from international producers of the same materials.”
The Cabinet decision also authorised returning all paid customs on several
imported inputs used in local industries for local sales. These items include
nuts, refined sugar, truck tyres and construction materials.