The hashemite kingdom of Jordan
Ministry of finance
The free zones company
Investors’ Services Directorate
A form for calculating the percentage of domestic production
/ The hashemite kingdom of JordanMinistry of finance
The free zones company
/A form for calculating the percentage of domestic production
Messrs: ------
This guide has been prepared to facilitating the process of getting the national certificate of origin or certificate of origin (Free Zone) for the industries established in the Free Zones Corporation as well as exempting the industrial projects products in the free zones upon placing them at domestic markets from customs fees limited by the value of materials, costs, and domestic expenditures involved in their manufacturing.
In accordance with Article (13/d/6) of the Free Zones Corporation’s law which stipulate “Exemption of Industrial projects products established in the Free Zone for the domestic market consuming, from customs fees limited by the value of materials, costs, domestic expenditures involved in the products manufacturing, provided this value is estimated by a committee chaired by the General Director or his Deputy, and a representative of both The Ministry of Industry and Trade, and the Ministry of Finance / Customs, appointed by the minister concerned.”
And in accordance with Article (6) of the Instructions of Storage and Investment in the Free Zones “The Certificates of origin for the Factory Products in the Free Zone shall be issued according to the following arrangements:
a. The certificates of origin (Free Zone), for the processed or transformed products in the Free Zones wherein the rate of the value added is below 40%, shall be granted by and under the responsibility of the Free Zone Management.
b. A national certificate of origin shall be granted for the processed or transformed products in the Free Zones where the value added therein exceeds 40% and shall be issued within the Free Zone by the competent authorities.”
The value of materials, costs, and domestic expenditures shall be determined through data completed in this form and through documents prove that the mentioned data are correct and accurate.
Dear Investors,
When completing the form, the following should be noticed:
- The name of company shall be written as per lease contract made with the Corporation.
- Full description of your products.
- Ensuring that all required documents proving that the mentioned data are correct and accurate are attached.
/ The hashemite kingdom of Jordan
Ministry of finance
The free zones Company
/A form for calculating the percentage of domestic production
Date:/ /
Application No.: ( )
Name of Company/Enterprise: ------
Location: ------
Number of Industrial Registration: ------
Date of Industrial Registration: ------
Registered Capital: ------
Operating Capital: ------
Workers No.: ------
Products: ------
A Brief of Manufacturing Process: ------
Product for which the Percentage of Domestic Production Will be Calculated: ------
Production Unit on which the Percentage of Domestic Production Will be Calculated: ------
In Table No. (1), all information of domestic raw materials, packaging and packing materials involved in product manufacturing for which the percentage of domestic production will be calculated shall be completed.
Table No. (1)
Cost of Domestic Raw Materials
Material Name / Unit / Unit Cost(JD) / Required Quantity / Total Cost
(JD)
Total Cost of Domestic Raw Materials:
In Table No. (2), all information of foreign raw materials, packaging and packing materials involved in product manufacturing for which the percentage of domestic production will be calculated shall be completed.
Table No. (2)
Cost of Foreign Raw Materials
Material Name / Unit / Unit Cost(JD) / Required Quantity / Total Cost
(JD)
Total Cost of Foreign Raw Materials:
In Table No. (3), value of direct industrial expenditures for each production unit shall be completed.
Table No. (3)
Cost Inputs in Direct Industrial Expenditures
No.
/Cost Inputs Per Each Unit
/Value
(JD)
1-
/Wages, Salaries, and Direct Incentives
2-
/Direct Industrial Consumptions
3-
/Power Fees (Water, Electricity, and Fuel)
4-
/Telegrams, Post, Telephones and Fax
5-
/Maintenance & Reparation
6-
/Factory Rental
7-
/Factory Insurance
8-
/Excellency & Trade Marks
9-
/Direct Loans Interests
Total
In Table No. (4), value of direct administrative expenditures for each production unit shall be completed.
Table No. (4)
Cost Inputs in Administrative Expenditures
No.
/Cost Inputs Per Each Unit
/Value
(JD)
1-
/Administration Salaries
2-
/Offices Rentals
3-
/Stationary & Prints
4-
/Telegrams, Post, Telephones and Fax
5-
/Travel & Transportation
6-
/Automobiles
7-
/Consumptions
8-
/Accounts Audit Wages
9-
/Attorneys Fees
10-
/Fees & Licenses
11-
/Propaganda & Advertisement
Total
Table No. (5) shows method of calculating the percentage of domestic production:
Table No. (5)
Method of Calculating the Percentage of Domestic Production
No.
/Cost Inputs Per Each Unit
/Value
(JD)
1-
/Cost of Domestic Raw Materials
2-
/Cost of Foreign Raw Materials
3-
/Cost of Total Raw Materials (1+2)
4-
/Direct Industrial Cost from Table (3)
5-
/Total Direct Domestic Cost = (1 + 4)
6-
/Administrative Expenditures from Table (4)
7-
/Total Cost = (3 + 4 + 6)
8-
/Percentage of Domestic Production = ((5+6) / 7)* 100%
Percentage of Domestic Production = Direct Domestic Cost / Total Cost * 100%
Direct Domestic Cost = Cost of Domestic Raw Materials + Direct Industrial Cost + Administrative Costs
Total Cost = Cost of Total Raw Materials + Direct Industrial Cost + Administrative Costs
Required Documents to Be Attached:
Authenticated budget or authenticated trial balance.
(In case such documents are not available, a voucher of each cost input shall be enclosed.)
Pay sheets / Social Security Statements.
Invoice of Raw Materials.
Product Manufacturing Equation.
Registration Certificate of the Factory.
Manufacturing Formula.
Vocations License.
Lease Contract.
List of Machines.
Drafts of Calculating Percentage of Domestic Production.
I hereby certify that all information mentioned above and attached documents therein are accurate and actual to the product for which the percentage of domestic production will be calculated and in accordance with the information, which I have and shall be held responsible for any incorrect statements therein.
Name & Signature of Authorized Person of the Company/Official Seal of the Company
/ The hashemite kingdom of JordanMinistry of finance
The free zones company
/A form for calculating the percentage of domestic production
For the use of the Committee to determine the value of materials, costs, and domestic expenditures
Data has been reviewed and found identical. Consequently, we recommend the approval to calculate the percentage of domestic production estimated (------)
Member / Member / Member / Resolution of Committee ChairmanDirector General of the Free Zones Corporation
Agree / Reject
Remarks: ------