Iraq denies the exemption of Jordanian goods from the customs tax

27/03/2017 (00:01 pm)

Baghdad / Salam Zidan

A member of the Iraqi-Jordanian joint committee, Ali al-Saadi, denied that Iraq has exempted Jordanian goods from the customs tax, asserting that the Iraqi side rejected a Jordanian request in this regard to protect the local product in order to avoid possible corruption.

The twenty-seventh session of the Joint Jordanian-Jordanian Committee was held in Baghdad on 19 and 20 of the current month. The two sides agreed to grant Jordanian companies the approvals for processing foodstuffs imported by the Iraqi Ministry of Commerce within the ration card, the results of the analysis of Jordanian medicines issued by the Iraqi Ministry of Health laboratories, and activating the work of the Jordanian - Iraqi Company for industry and speed up procedures for direct implementation of the oil and gas connecting line to the port of Aqaba.

Saadi, who heads the Federation of Iraqi Industries in an interview with Al-Mada, said that "Jordan asked Iraq in the talks to exempt Jordanian goods from customs duties, but we refused to do so," noting that "the exemption of Jordanian goods from customs tax will destroy the national industry and it will use it by bringing corrupt Chinese goods bar and paste it shows it is a Jordanian industry, and after being introduced to Iraq. "

He added that "Iraqi officials assured the Jordanians, that the country is committed to apply the protection of local product and activate the role of national industry," noting that "was discussed the issue of the port of Trebil border between the two countries."

In the meantime, the spokesman for the Ministry of Industry and Minerals Abdul-Razzaq Abdul Wahed told "Al-Mada" that "the recent Jordanian-Jordanian negotiations in Baghdad resulted from several agreements related to industry and trade and land and air transport," stressing that "the Jordanian side was interested in the need to open Trebil border and promised Iraq inaugurated soon. "

He stressed that "Jordan raised the issue of exemption of goods from the customs tax, but Iraqi officials rejected it, because it will open doors to other countries demanding exemption of goods," noting that "Iraq asked Jordan, know the production capacity of its laboratories in order to agree on a mechanism through a decision Issued by senior Iraqi officials, "noting that" Iraq called on Jordan, the need to invest through investment opportunities, which currently amount to 125 opportunities, "and pointed out that" Iraq agreed with Jordan, the need to exchange experiences between the two countries on issues that develop industry and local product "He said. Iraq decided last April to impose a tax year , 30% on Jordanian goods. Jordan also severely damaged after the closure Trebil border between the two countries.

For his part, said a member of the Jordanian delegation Fathi al-Jaghbir, "We have provided Iraq lists of goods to exempt them from customs duties, and Baghdad requested us to provide them with the production capacity of Jordanian factories that want to export their products to Iraq to be studied and exempt from fees."

"The chambers of industry will supply Iraq with the production capacity of Jordanian factories by the beginning of next May, likely to obtain a final approval from Iraq to receive Jordanian goods exempt from customs duties a month after they received the list of production capacity of Jordanian factories, which means that the export to Iraq exempted goods Of customs duties will begin in June. "

"The Iraqi authorities are seeking every effort to open the crossing as soon as possible, and they put forward a tender to secure the road from the Trebil crossing to Baghdad, which was submitted by two foreign companies. It is likely that the flow of goods between the two sides will begin by June, the need for some roads and bridges to maintain , In addition to securing the road and ensuring the safety of passengers and goods.

"The Jordanian-Jordanian agreement on the Jordanian goods tax is part of the regulation of the customs tariff law and the prohibition of duplication with the Arab Convention on goods of Arab origin subject to a customs exemption," said Mitham Laibi, an economics professor at Mustansiriya University. Cause a problem with the Tariff Act under which such goods are subject to tariff. "

"The Iraqi side has to form a good team of real representatives from the private sector concerned, not just a government team, and not to be dragged into such lists and tax free," he said.

He pointed out that "Iraq will need to work diligently in the field of tariff customs, and subject to the philosophy of the state to build a competitive base that strengthens domestic production and promote non-oil exports."