Jordan Free Trade Agreement Implementation Instructions
The U.S.-Jordan Free Trade Area Implementation Act ("the JOFTA Act") (Public Law 107-43, 115 Stat. 243) (19 U.S.C. 2112 Note) provides for the elimination of duties and commercial barriers to bilateral trade in goods and services produced in the United States and Jordan and originating under the terms of the Agreement. It was signed into law on September 28, 2001 and implemented on December 17, 2001, after having been proclaimed by Presidential Proclamation 7512, dated December 7, 2001, and published in the Federal Register on December 13, 2001 (66 FR 64497).
JOFTA Origination Rules, 19 CFR 10.709
Section 102 of the JOFTA Act provides the rules of origin to determine if a good qualifies for preferential tariff treatment (originates) under the Agreement. Under the JOFTA, a good shall qualify for preferential tariff treatment as a "Product of Jordan," only if:
- the good is imported directly from Jordan into the U.S. and is wholly the growth, product, or manufacture of Jordan; or
- the good is imported directly from Jordan into the U.S. and is a new or different article of commerce that has been grown, produced, or manufactured in Jordan; and
- the sum of (1) the cost or value of the materials produced in Jordan, plus (2) the direct costs of processing operations performed in Jordan is not less than 35% of the appraised value of the article at the time it is entered into the territory of the U.S.
- If the cost or value of materials produced in the customs territory of the United States is included with respect to an article for purposes of determining the 35% domestic content, an amount not to exceed 15 percent of the appraised value of the article at the time it is entered that is attributable to such United States cost or value may be applied toward determining the 35%.
Simple combining or packaging operations or mere dilution with water or another substance cannot confer origination under the JOFTA.
The JOFTA does not provide for a merchandise processing fee (MPF) exemption in 19 CFR 24.23(c).
Merchandise produced in Jordan that qualifies for preference under a Qualified Industrial Zone (QIZ) program may continue to be entered under that program.
JOFTA Textile and Apparel Articles Origination Rules
The following criteria shall be used to determine whether a textile or apparel article originates pursuant to the provisions set forth under the JOFTA Act:
- A textile or apparel article imported directly from Jordan into the Customs territory of the United States shall be eligible for preferential tariff treatment only if the following conditions are met:
- the article is wholly obtained or produced in Jordan;
- the article is a yarn, thread, twine, cordage, rope, cable or braiding, and
- the constituent staple fibers are spun in Jordan, or
- the continuous filament is extruded in Jordan;
- the article is a fabric, including a fabric classified in chapter 59 of the HTS, and the constituent fibers, filaments or yarns are woven, knitted, needled, tufted, felted, entangled or transformed by any other fabric-making process in Jordan; or
- the article is any other textile or apparel article that is wholly assembled in Jordan from its component pieces.
Textile and apparel articles not wholly obtained or produced in Jordan must comply with the above conditions and the value requirements, as described under "General Origin Rules".
- An article is "wholly obtained or produced in Jordan" if it is wholly the growth, product or manufacture of Jordan.
- Notwithstanding the provisions of (1)(D) and except as provided in (5) and (6), the provisions of (1)(A), (1)(B) or (1)(C), as appropriate, shall determine whether a good that is classified in one of the following headings or subheadings of the HTS shall be considered to meet the requirements as described under "General Origin Rules"; 5609, 5807, 5811, 6209.20.50 (the requirement of this subdivision applies only to babies' diapers of this provision), 6213, 6214, 6301, 6302, 6304, 6305, 6306, 6307.10, 6307.90, 6308 and 9404.90.
- Notwithstanding the provisions of (1)(D) and except as provided in (5) and (6), a textile or apparel article which is knit-to-shape in Jordan shall be considered to meet the requirements as described under "General Origin Rules".
- Notwithstanding the provisions of (1)(D), a good classified in subheading 6117.10, heading 6213 or 6214 or subheadings 6302.22, 6302.29, 6302.52, 6302.53, 6302.59, 6302.92, 6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 6304.93, 6304.99, 9404.90.85 or 9494.90.95 of the HTS, except for a good classified in any such provision as of cotton or of wool or consisting of fiber blends containing 16 percent or more by weight of cotton, shall be considered to meet the requirements as described under "Rules of Origin" if the fabric in the good is both dyed and printed in Jordan, and such dyeing and printing is accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing or moireing.
- Notwithstanding the provisions of (1)(C), a fabric classified in the HTS as of silk, cotton, man-made fiber, or vegetable fiber shall be considered to meet the requirements as described under "Rules of Origin" if the fabric is both dyed and printed in Jordan, and such dyeing and printing is accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing or moireing.
- If the origin of a textile or apparel article cannot be determined under the provisions of (1) or (3) through (6), inclusive, then that article shall be considered to be a "Product of Jordan", as described under "General Origin Rules" if-
- the most important assembly or manufacturing process occurs in Jordan, or
- the applicability of the requirements as described under "General Origin Rules" cannot be determined under subdivision (A), the last important assembly or manufacturing occurs in Jordan.
A claim may be made at entry summary by prefacing the HTSUS number on the CBP Form 7501 or electronic equivalent with the special program indicator "JO".
By entering an article with JOFTA preference, the importer certifies that such article qualifies for the preferential treatment provided for by the Agreement and that he is prepared to provide substantiating documentation to CBP.
The importer shall be prepared to submit to CBP, upon request, a declaration setting forth all pertinent information concerning the production or manufacture of the article. Information for the preparation of the declaration must be retained for a period of 5 years. The information on the declaration should contain at least the following:
- A description of the article, quantity, numbers, and marks of packages, invoice number, and bills of lading;
- A description of the operations performed in the production of the article in Jordan and identification of the direct costs of processing operations;
- A description of any materials used in production of the article which are wholly the growth, product, or manufacture of Jordan, and a statement as to the cost or value of such materials;
- A description of the operations performed on, and a statement as to the origin and cost or value of, any foreign materials used in the article which are claimed to have been sufficiently processed in Jordan so as to be materials produced in Jordan; and
- A description of the origin and cost or value of any foreign materials used in the article, which have not been substantially transformed in Jordan.
The declaration shall be prepared, signed and submitted upon request by CBP.
Pursuant to the JOFTA, a good shall not be considered to originate under the JOFTA if the good:
- is imported into Jordan, and, at the time of importation, would be classified under heading 0805 of the HTS; and
- is processed in Jordan into a good classified under any of subheadings 2009.11 through 2009.30 of the HTS.
Termination of Agreement
The JOFTA does not have an expiration date. However, the provisions of and amendments made by the JOFTA Act will cease to be effective upon the termination of the Agreement by written notification from either the U.S. or Jordan six months after the date of such notification.
Verification by CBP
CBP may request the importer's declaration when verifying the validity of a claim for preferential tariff treatment under the JFTA, and any and all supporting documentation upon which the completed declaration was based, as described under "Importer Responsibilities."
Petition and Protest Rights
Importers may make a post-importation claim under the Post-Summary Correction (PSC) program.
Importers may file a protest to contest a denial of preference or other adverse action by CBP pursuant to 19 U.S.C. 1514 within 180 days of the date of liquidation or other adverse action by CBP.
Effective immediately, importers may file claims for preferential tariff treatment of designated articles that originate under the terms of the JOFTA.