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REGULATION NO. (43) FOR THE YEAR 1987
THE FREE ZONES CORPORATION INVESTMENT REGULATION AND ITS AMENDMENTS



This Regulation shall be named (the Free Zones Corporation Investment Regulation for the year 1987, and shall be enforce as from the date of publication in the Official Gazette)*. Article 2 A- Unless the context indicates otherwise the following words and phrases shall have the meanings stated hereunder:

Corporation:

The Free Zones Corporation.

Board:

The Free Zones Board of Directors.

President:

The Board Director.

Director-General:

The Director-General of the Corporation.

Director:

 The Director of the Free Zone

Zone:

The Free Zone established in accordance with the Law.

Warehouses:

Open yards, buildings, sheds, and other constructions built or authorized to be built by the Corporation in a Free Zone and shall include all immovable properties and constructions rented by the Corporation, or whose ownership shall revert to the Corporation in accordance with the provisions of this Regulation.

Depositor:

The person to whose order, or in whose name the goods destined for storage are consigned and person to whom the goods are legally transferred and shall include the carrier of the original Bill of Lading and their legally delegated agents.

Project*:

Any commercial, industrial, tourist, or service investment project approved in accordance with the provisions of these Regulations.

Investor*:

Any natural or legal person who is registered at the Corporation companies register or signed an investment contract or made an agreement with the Corporation.   

Invested Capital*:

Funds transferred in accordance with the provisions of the Central Bank Instructions and machinery, tools, materials, goods, and equipment required for setting up, operation or expansion of any project.

The Committee*:

Investment committee comprises in accordance with the provisions of this Regulation.

B- For the purposes of this regulation, definitions mentioned at the Free Zones Corporation Law enforce wherever it is stated in the provision of this Regulation shall be stipulated.  

Article 3

This Regulation shall be applicable to all Free Zones and the Council of Ministers may, upon the recommendation of the Board, order their application thereof to any Free Markets.

Article 4

Without prejudice to the provision of Article 5 of this Regulation, and view of the nature of the goods and materials mentioned below and of the conditions of the storage and transportation thereof and of the protection against their dangers, the following acts shall be permissible:

a. Bringing in foreign goods of whatever type or origin into the Free Zone without an import license, depositing them therein and taking them out therefrom without an export license to any destination other than the local market. In all such cases, such goods shall not be subject to any customs duties or other fees or taxes.

b. Depositing any domestic goods produced or manufactured in the Kingdom in the Zones in accordance with the instructions laid down by the Board.

c. Taking out any goods stored in the Zone to the customs area for subsequent entry into the local market subject to the laws and regulations enforce.

d. Diverting goods from the customs centers to the Zone in accordance with the procedures enforce for diverting goods from a customs center to another.

e. Bringing in the following materials, tools and requirements, duty paid, required for erecting constructions in the area in accordance with the instructions laid down by the Board.

    1 – Local building materials and tools.
    2 – Office furniture and requirements.
    3 – Domestic raw materials.
    4 – Manufactured raw materials.
    5 – Fuel required meeting the needs of the industrial project in the Zone.

f. Taking out machinery, equipments and parts thereof from the Zone to the local market for the purpose of performing repairs and returning them in accordance with the instructions laid down by the Board.

 

Article 5


It is prohibited to enter into the Zone the following goods, and any contravention thereto shall cause the said goods to be seized without compensation and the Corporation may refer to the concerned parties in case of any default, damage, or cost pertaining therefrom.
a. Goods of origin or source that is prohibited to deal with.

b. Narcotics except those necessary for the manufacture of medical drugs and pharmaceutical supplies as may be stipulated by the Ministry of Health.

c. Firearms, ammunitions and explosives except shot guns and their relevant ammunition, and fireworks as may be stipulated by the competent public security authorities.

d. Stinking or inflammable materials as the Board may specify and prohibit their entry into the Zone.

e. Radioactive materials unless approved by the Minister of Energy and Mineral Resources and subject to the conditions determined by him.

f. Deteriorated or expired foodstuff and foodstuff which are damaged or have a negative effect on environment*. 

Article 6

The Director or the person properly delegated by him shall allow the deposit of goods in the Zone after being inspected by the Customs Department.

 Article 7

a. Clearing companies, goods owners and carrier companies shall submit within 72 hours from the arrival of the transportation means to the customs center wherein the Zone is situated the goods addressed to the free Zone and the necessary documents, and organize a Deposit Form of goods. Otherwise a twenty-five Jordanian Dinar fine shall be collected for every delay date provided that imposed fines shall not exceed (500) Jordanian Dinar unless justified reasons have been submitted for the Director*.   

b. It shall be permissible for transit goods not addressed to the Zone in accordance with the ship’s manifest or bills of lading to remain in the port for a period of one month from the date of discharge therein for the purpose of withdrawing them from the port in accordance with the procedures enforce. After the lapse of the aforesaid period such goods shall be transferred at the cost of the owners to the Zone for storage in accordance with the provisions of the Corporation Law.

c. Should any goods destined to the Zone be stored in the port Warehouses yards or any other place for any reason whatever and should these goods be exempted in part or in whole from the storage fees for any period, it shall not be permissible to exempt them from the service charges due to the Zone. The provisions of this paragraph shall apply to all goods diverted from the customs area to the Zone with the approval of the Customs Department.

Article 8

a. The Depositor of goods shall sort out the said goods before delivering them to the Zone according to their respective marks. Should he fail to do so within five days from the date of arrival of the goods at the Zone he shall pay all expenses incurred by the Zone in respect of sorting out the said goods plus 10% as service dues. He shall in this case agree to the records of the Zone in regard to the kind, number, weights and contents of packages. And the Depositor has no right to refer to the Zone in case of any damage or default occurs during the act of sorting out.

b. 1. Should the Depositor of goods not deliver the said goods to the Zone after sorting within 5 days from the date of arrival of the goods at the Zone’s site, he would be responsible for the goods and would pay triple daily storage fees for the period in which he delayed the delivering.

2. The Director, in case of justified delay cases may exempt the Depositor from the fine    stipulated in item (1) of this Article upon a written application submitted by the concerned parties*. 

Article 9

a.       Goods entering the Zone shall be stored inside covered warehouses or under sheds upon the request of the Depositor. Should space not be available for such storage, they shall be deposited in open yards after obtaining the Depositor’s approval.

b. The following types of goods shall be deposited in open yards:

    1 – Goods which are not affected by atmospheric conditions, or which cannot be placed under sheds or inside covered warehouses whether on account of their shape, volume, or weight.
    
    2 – Goods which the Depositors, owners or agents thereof request in writing to be placed in those yards at their own risk.

c. Goods shall remain in the Zone for the duration required by the Depositor, except in those cases which necessitate taking the said goods out of the Zone in view of their nature or if the Depositor failed to fulfill his obligations towards the Zone*.

Article 10

a. Goods shall be accepted in the Zones in accordance with their specifications as stipulated in the relevant documents and Depositors shall be responsible for the correctness of the statements mentioned in the documents. The Zone shall not be responsible for any difference between the said goods and the information mentioned in such documents or statements.

b. Should any goods be discharged* by an act of error in Zone; the charges stipulated in this Regulation and in the instructions issued accordingly shall be paid in full.

c. The Zone shall not be responsible for any shortage or variation in the contents of any packages, if these packages were on receipt or delivery in an apparent wholesome condition.

Article 11

a. The goods deposited in the Zone may be assigned in accordance with the instructions issued by the Director General and by virtue of an official report of assignment to be organized in the same manner as the goods delivery report and after payment of all charges due to the Zone up to the date of the Director’s approval in the presence of the Assignor and the Assignee or their legally authorized representatives. Any assignment contrary to this shall not be considered.

b. Any procedures took place on the Transfer Document shall not be considered unless due charges are paid and upon the approval of the Director or who is delegated by him within seven days as from the date of signing the said document by Assignor and the Assignee thereon.

Article 12*

a. All goods entering into the premises shall be under the custody of the Lessee and his full responsibility. He must keep the documents and records as decided by the Director General and in a manner which would facilitate the auditing and re-conciliation of such documents with the documents and records of the Free Zone.
b. The investor shall be responsible towards the Free Zone for any shortage in the balances or variation in the type of goods.

c. The investor shall be responsible jointly or severally with Depositors for any due charges on goods stored by him for other parties to the Zone.

d. The investor shall be committed to submit any insurance policy in virtue of the arrangements stipulated by the council, otherwise the said goods stored by him and reverted to him or other parties shall be included in the insurance policy of the Zone and at the investor’s expense. 

 

Article 13

a. The Zone shall not be responsible during the storage of the goods therein for:

    1 – Any default, damage or deterioration affecting the goods because of their inherent nature or due to the method of packaging or non-packaging or resulting from atmospheric heat or humidity.
     2 – Any default, deterioration, damage or shortage affecting the goods in consequence of disturbances, commotion, war operations or any other force circumstances.

b. Subject to the provisions of paragraph (a) of this Article, the Zone shall be responsible for any default, damage, deterioration or shortage which may effect any goods if it is proved that such default, damage, deterioration or shortage has occurred in consequence of any act, or negligence by any of the personnel or employees of the Zone or in consequence of the unsuitability of its warehouses for the storage of such goods. The president may conclude any settlement with the Depositor in respect of compensation payable to him in lieu of the default, damage, shortage or deterioration affecting the goods without recourse to the courts of law.

Article 14

a. Subject to the provisions of the Corporation’s law, industries and factories may be established in the Zone under the license issued by the Board in accordance with instructions stipulated thereby for such purpose.

b. The Board may permit establishing any projects or investment enterprises inside the Zones for the purposes of covering manufacture, shipping, insurance, storage and any other commercial activities subject to the conditions and guarantees it may lay down.

c. Processing operations in the Zone shall be conducted under license from the Director including such operations like separating, grading, molding, packaging, packing, mixing, cleaning, greasing, distilling, roasting, pounding, fragmenting, crushing numbering and affixing or substituting trade marks such operations shall be carried out in the leased premises. The Director may, however, allow such operations in whole or in part in the general warehouses of the Zone or in such places as the Zone may design for this purpose within its bounds.

Article 15*

a. Taking out documents, deposit applications, and prepared assignment documents and its contents shall be destroyed after the duration of five years from the date of completing them upon the resolution of the Director General provided that such doing should be done by a committee comprises for such purpose from two representatives or more of the Corporation and Audit Bureau. 

b. Documents that are not stipulated therein at paragraph (a) of this Article shall be destroyed upon the resolution of the Director General after the duration of five years as from the date of issuance.    


 Article 16*

a. Constructions erected on the leased land whether at industrial, commercial, or service sector shall not be subject to mortgage or seizure in the Zone.

b. It is permissible to mortgage investor’s movable assets after submitting justified reasons for such act and according to conditions stipulated by the Director General.

c. Mortgage or seizure of the deposited goods in the Zone shall not prevent the Zone to carry out any procedures to guarantee its rights among of which selling the said goods by public auction or deteriorating them.  

Article 17*

All construction works on leased lands in the Zone shall be set up according to the drawings, general and technical conditions and requirements of public safety as may be laid down by the Board; any modifications to the constructions shall be subject to the prior approval of the Director General.

Article 18*

A.                 The President, upon the Director General recommendations, shall comprise a committee called (Investment Committee) responsible for the following tasks and shall refer their recommendations for the Director General:

1.      Studying investment application forms and all related issues.

2.      Looking into type of investment in terms of its purposes.

3.      Studying the forms submitted for the purposes of transfer or accession or withdrawal every now and then and reforming them, as it deems appropriate to investment requirements.

4.      Any other pertaining issues assigned by the Director General.


B. Subject to the provisions of Article (16) of the Free Zones Corporation Law, land and constructions pertaining to the Zone shall be leased in accordance with the following terms:

a. The lease shall be carried out by the Director General’s decision upon the recommendation of the committee within the plan approved by the Board.

b. The Board shall prepare lease contract forms and shall determine the constructions thereof including the possibility of the reversion of the constructions to the Corporation after the expiry of the lease period.

c. The rent shall be paid in advance for every year and the Director General, by virtue of instructions he issues, shall decide the type and amount of the guarantee to be submitted in compensation for the damages caused by the lessee contrary to the provisions of these Regulations, the instruction issued thereunder and provisions of the contract.

Article 19

a. The lease period shall be specified in the contract as follows:

 1 – Thirty years as a maximum for industrial projects.
 2 – Fifteen years for open spaces as needed for erecting constructions for commercial storage.
 3 – One year for open spaces to be leased for the purpose of storage without erecting any constructions thereon.
 4 – One year for buildings and constructions erected by the Corporation.

b. In special cases necessitating the reduction of the duration stipulated in items (3) and (4) of paragraph (a) of this Article, the Director General may reduce such durations to the limit he finds appropriate for such cases provided that such limit shall not be less than three months.

c. Notwithstanding the stipulation of paragraph (a) of this Article, lease contracts may, after expiry, be renewed annually against a rent to be paid in advance by providing that the rent and conditions be specified and agreed upon by the two parties. The lessee shall notify the Director General in writing of his wish not to renew the contract two months prior to the expiration of the contract period or, otherwise, the contract shall be considered to be automatically renewed under the conditions laid down by the Board.

Article 20*


The Director General may, upon the recommendation of the Director approve to allow the lessee to assign his rights in the leased premises to others in accordance with the following conditions:

a. The assignment shall take place in accordance with the instructions of the Board and the adopted forms provided that the Assignor shall obtain a duly quite-claim pursuant to the forms prepared for such purpose.

b. A new contract shall be made between the Corporation and the Assignee under the same conditions of the preceding contract provided that the duration of the new contract shall not exceed the remaining period of the first contract.

Article 21*

The Director General has the right to breach lease contract in any of the following cases:

a. If the lessee failed to pay rental charges at dates stipulated in the contract or in case he violated any of its conditions.

b.  If the lessee has not abided by conditions of buildings and constructions.

c. If the lessee has not stuck to conditions and requirements of public safety.

d. If the lessee has not utilized the Lot for a consecutive year.

e. If the lessee has recommitted the act of smuggling for a second time.

Article 22*

a. If the lessee failed to evacuate the premises of all of its contents upon the expiry of contract duration or breaching it, the Director General has the right to order evacuating the premises at the lessee expense. The said contents shall be stored according to daily rent at his expenses in warehouses and public yards and the Zone shall not be responsible for any damage or deterioration occur thereto resulted from the act of evacuation or transfer.

b.  If the duration of contract has expired or it has been breached and the Corporation does not wish to revert the constructions erected by the lessee to its ownership, the lessee has to evacuate the site within sex months from such constructions. If he failed to do so, the Zone shall carry out the process of evacuating the premises from the said constructions at the lessee expense and in such case he has no right to object or claim any compensation.       

Article 23

a. The Depositor shall pay the storage charges and any other charges due on the goods deposited in the Zone once every six months at most. On the expiry of such period the Director shall send the Depositor a notification by registered mail or publication in the local daily newspaper* demanding him to pay the due amounts and thirty days after publication date or mailing the notification, the following measures shall be taken:

 1. The Director General* may sell by public auction a part of the goods, without customs duties, commensurate in his estimation with the amounts* due on the Depositor. However, should the goods be indivisible, the whole shall be sold and such sale shall be effected under the supervision of a committee consisting of two of the corporation’s staff and a representative of each of the Customs Department and the Auditing Bureau. The Zone shall not be responsible for any damages that may occur to the goods in consequence of such sale.
    
 2. The committee referred to in item (1) of paragraph (a) of this Article shall compile a list of the details, types, quantities, weights and origins of the goods as far as possible.
    
 3 . The amounts due from the Depositor and any other fees or expenses incurred on the goods shall be deducted from the sale proceeds and any surplus money shall be entered in the deposit account*.

b. If the goods were insaleable, the Director shall be entitled to order it be destroyed by the sale committee mentioned in paragraph (a) of this Article. The Zone shall, in all circumstances, be entitled to recur to the Depositor to collect the due charges.

c. The Director may collect in depositing the goods and in advance, the cash deposit that he finds appropriate against the charges that may accrue to the Zone.

d. The Director General may, upon the recommendation of the Director, postpone the selling of the goods if their value exceeds the money due to the Zone.

Article 24


a. The following acts shall not be allowed in the Zone:
 1. Kindling fire in any form whatsoever, including lighting candles, gas, and petroleum or any derivative thereof, alcohol, lighters, or matches even if such acts were for personal use.
 2. Smoking inside the warehouses, offices, factories and other projects and in yards, excepting clubs, restaurants, and hotels that are specified for this purpose in the Zone.    
 3. Using liquid or gas fuels in lighting.
 4. Using the electric current for any purpose other than lighting inside offices and warehouses, excepting electricity used in operating factories in accordance with the technical conditions stipulated by the Board.
 5. Erecting any constructions for prime movers or for lighting inside warehouses or factories except with approval of the Board and subject to the conditions and guarantees it prescribes.
6. Moving goods from the warehouses or the yards of the Zone to the leased premises or vice versa with the approval of the Director.
7. Consuming goods inside the Zone*.
 8. Lodging of workers and employees in the Zone or partaking food therein except in the places specifically assigned for such purpose, and in accordance with the conditions stipulated by the Board*.


b. The Director may allow aircraft to be supplied from the Zone with foodstuffs, tobacco, cigarettes, alcoholic beverages and fuels and lubricants necessary for their engines in accordance with the stipulated customs procedures.

Article 25


Subject to the payment of the charges stipulated in these Regulations the Corporation shall collect its proceeds on the services specified in the Law in accordance with instructions issued by the Council of Ministers on the recommendation of the Board.

 

Article 26

Manifests, cargo lists and the applications for depositing the goods in the Zone or for taking the goods out therefrom for the account of others shall not be presented to anyone other than the persons authorized in accordance with the regulations stipulated by the Board.

Article 27

Entry into the Zone and departure therefrom as well as the other matters governing the work relations in the Zone between the Zone management and the other departments shall be regulated under instructions stipulated by the Board.

Article 28

a. Any person who conceals any statements or documents or submits untrue statements with the purpose of violating the provisions of this Regulation shall be punished with imprisonment for not less than one month or with a fine not less than one hundred Jordan Dinars.

b. The Director General or who is properly delegated by him may:

1. Impose a fine not less than fifty Jordan Dinars and not more than five hundred     Jordan Dinars.

2.      Suspend the activity of whoever violates the provisions of this Regulation or the instructions issued therto until the correction of the occurred violation*.

Article 29

a. Customs Department shall practice its work at the main entrances and exits of the     Zone and at the nearby yards and their employees has the right to inspect people and transportation means going out of the Zone.

b. The president shall comprise a committee or more include two representatives of the Corporation and Customs Department, or any other concerned party to carry out the act of auditing and inspecting of the goods in the presence of the concerned party or his representative in order to assure that there aren’t any smuggled or prohibited goods.

c. The Director General or whom he properly delegates may assign any of the Zone employees to entering at any time to constructions, factories, or leased lots*.

Article 30

The Corporation shall practice the power of the competent parties in accordance with the enforce legislations concerning building and professions licenses and authentication of certificates of invested companies and factories inside the Zones or any other related issues*.

Article 31

The Board shall issue all the instructions necessary for the implementation of this Regulation including the following matters:

a. Devising procedures regulating the entry, withdrawal, receipt, delivery, sorting, counting, protection and transfer of goods from one place to another inside the Zone, the collection of charges and the sale of deteriorated or unclaimed goods.

b. Devising procedures regulating the transfer of profits and interests, establishing letters of credit, transfer of the cost of goods, shipping documents, bringing into the Zone and taking out therefrom money and bullions and all relevant methods of payment and also all measures pertaining to the exchange control after consulting the Governor of the Central Bank.
c. Devising procedures regulating the licensing of industrial, commercial and service enterprises in the Zone and the stipulating of the conditions, guarantees, applications, and documents which must be submitted for this purpose.
d. Devising forms of lease contracts and stipulating the conditions and guarantees that must be observed.
e. Regulating procedures for the submission of lists, manifests and applications for depositing goods in the Zone and withdrawing them therefrom to the account of other persons and also stipulating the conditions, guarantees, license fees and control of persons and vehicles entering or leaving the Zone and imposing temporary ban on persons who violate instructions.
f. Devising procedures regulating the setting of any violations to the provisions of these Regulations, and dispensing financial awards to deserving persons excepting those violations mentioned in Article (5) of these regulations.
g. Devising procedures for protecting constructions and goods inside the Zone and other places against any dangers which may arise from the acts of the lessees, their employees and from their goods and also for demanding lessees to insure their leased premises and the contents thereof.

Article 32


The Free Zones Corporation Regulation No. (46) for the year 1979 and the amendments thereto are herewith repealed.