Jordan Market Entry

Jordan Market Entry

Subchapters:

  • Market entry
  • Forms and conditions of operation on the market
  • Marketing and Communications
  • Issues of intellectual property protection
  • Public procurement market
  • Payment terms, payment ethics and resolution of commercial disputes
  • Visas, fees, specific conditions of travel to the territory
  • Employment of citizens from the Czech Republic
  • Fairs and events

Market entry

For decades, the Jordanian market has been closely linked to Western markets and the Gulf states. Even thanks to the extensive preferences resulting from the trade agreement concluded with the USA, there is a lot of competition from American goods. As well as products from the United Arab Emirates or Saudi Arabia, which are part of the generously conceived Greater Arab Free Trade Area with Jordan and most other Arab countries. The EU’s association agreement with Jordan, which entered into force in 2002 and includes tariffs, does not reach this level of liberalization. now a reform of the customs tariff is underway, which should simplify it. A license is required for import and export, with exceptions, usually granted automatically, with special rules for food and medicine. The Government may fully or partially reserve the import or export of any commodity to a particular ministry, public company or specialized institution. It also ad hoc limits the export of certain, primarily agricultural commodities. Certificates of origin issued by the relevant institution in the exporter’s country, a bill of lading and, for goods in transit, a customs declaration issued by a neighboring country are required for imports. The purchase price and the origin of the goods must be stated on the invoices and all other documents, together with the freight, insurance and other costs. All invoices must have a description of the imported goods in Arabic. Products must be labeled with the country of origin, e.g. “Made in Czech Republic”. Indicating other than the actual quantity of goods in the invoice can be considered smuggling, punishable by up to three times the customs value. Export control is the responsibility of the Ministry of Finance and the Ministry of Industry and Trade. An export permit is not required for the export of goods in transit,

According to cheeroutdoor.com, the decision whether or not any product can be imported into Jordan is fully in the hands of the Jordanian Customs Department. As part of customs procedures, it divides the cleared goods into green, orange and red groups. They won’t let the red one into the country, the green one will, and they send samples of the orange one to check whether it meets Jordanian standards and then issue a verdict. Non-sale free samples with a value of less than 100 Jordanian dinars (approx. 3250 CZK) are exempt from customs duties and taxes, if it is more, a classic customs declaration through a clearance company is required. The investigation of compliance with Jordanian standards is carried out for a fee by the Jordanian Standards and Metrology Organization. The expression of this organization is generally one of the ways to increase the hope of passing through the customs office,

Forms and conditions of operation on the market

You cannot start a business in Jordan without registering with the Ministry of Industry, Trade and Supply, or with its subordinate Companies Control Department, which is in charge of supervising business entities and also manages a publicly available list of registered companies (however, only in Arabic). According to Companies Law No. 4/2002, it is possible to register as 1) limited liability company 2) joint stock company 3) limited partnership 4) joint venture 5) offshore company and 6) foreign branch. The number of this registration is the basic identification mark for any further corporate communication within Jordan. Following this registration, you need to open a new bank account and deposit at least 50% of the initial capital into it and then register as a taxpayer with the Income and Sales Tax Department. If the company will engage in commercial activities, it must also register with the Chamber of Commerce, if with the Chamber of Industry, then with the Chamber of Industry according to territorial jurisdiction. All businesses must apply for annual licenses from the relevant municipality according to their location. Registration with the Social Security Office is also required. A local office or representative office may conduct business activity in Jordan, provided that at least half of its employees must be local. then at the Chamber of Industry according to territorial jurisdiction. All businesses must apply for annual licenses from the relevant municipality according to their location. Registration with the Social Security Office is also required. A local office or representative office may conduct business activity in Jordan, provided that at least half of its employees must be local. then at the Chamber of Industry according to territorial jurisdiction. All businesses must apply for annual licenses from the relevant municipality according to their location. Registration with the Social Security Office is also required. A local office or representative office may conduct business activity in Jordan, provided that at least half of its employees must be local.

Marketing and communication

The Jordanian market has long been accustomed to a wide range of Western-style products, including their adequate presentation. The population with sufficient purchasing power, living mainly in the capital Amman, has a relatively good overview of current world trends and usually prefers brands that are already known. It is fairly common for the name and other product information to be listed in both Arabic and English, even for most domestic productions. A certificate of halal origin is expected for relevant products. The basis of communication with the end consumer should be unequivocally Arabic, which can be accompanied by simple and comprehensible slogans in English.

For Jordan, Western-style ads are common, but respecting Muslim taboos such as exposed bodies, alcohol or hints of intimacy. Compared to electronic versions, the importance and sales of printed newspapers and magazines are rapidly declining, and they are used rather marginally even in Jordan as a medium for advertising purposes. Given the average age of the population around 24, social networks are becoming key communication channels for the promotion of (not only) consumer goods. At the same time, following the local tradition of emphasizing personal recommendations, the popularity and number of local influencers is growing. Classic internet tools, especially quality websites, have not had time to spread much here, many Jordanian companies still do not have them or they definitely do not meet our standards.

The use of television advertising in Jordanian televisions may not have the expected impact. Thanks to the absence of a language barrier, mainly commercial TV channels from Arabic-speaking neighboring countries are watched here. The offer of local television stations is relatively poor. Only Roya TV, which also has quality internet news (also in English) and active social networks, roughly corresponds to our idea of ​​a commercial television oriented towards entertainment in Jordanian conditions. Above all, in the capital city of Amman, where most of the country’s purchasing power is located, significant outdoor campaigns are often used, from large illuminated advertisements to gigaboards on highway bridges to advertising spots on giant screens located in luxury shopping centers and in the middle of busy intersections. Due to the non-existence of classic mailboxes, advertising leaflets are left behind car wipers or under the entrance gate. Marketing companies (even with regard to the lack of legislative protection) offer campaigns by sending e-mails and sms.

For goods, technologies or services aimed at a specific group of customers, it is advisable to present them at specially focused events, exhibitions, fairs or business forums. Personal contact and product introductions mean a lot in Jordan. Presentation materials are mostly sufficient in English, but Arabic definitely adds plus points, especially when it comes to the offer also aimed at the public sector.

Among the best-known advertising agencies are Correct Marketing & Advertising (correctjordan.com), we can also recommend Jordan Walls (jordanwalls.com) for outdoor campaigns and for social media Snapshots Media (which is a successful and well-known company without a website, which it just documents the information mentioned above).

Issues of intellectual property protection

With its entry into the World Trade Organization (WTO) in 2000, Jordan automatically committed itself to the obligations arising from the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) towards other members of the organization. Jordan has also been a member of the World Intellectual Property Organization (WIPO) since 1972 and a signatory to the International Patent Cooperation Treaty since 2017. The provisions regarding the protection of intellectual property rights in the EU-Jordan Association Agreement, valid since 2002, are also binding on the relationship between Jordan and the Czech Republic. Copyright protection is protected by Copyright Protection Law No. 22/1992 and its latest amendment by Law No. 23/2014, however, only after their registration with the National Library, which is a subordinate organization of the Jordanian Ministry of Culture. Industrial property is dealt with by Law on Industrial Designs and Models No. 14/2000, Trademarks Law No. 33/1952 (amendments – Acts No. 34/1999, No. 29/2007 and No. 15/2008), Patent Law No. 32/1999 (amendments – Acts No. 71/2001 and No. 28 /2007), Trade Names Law No. 9/2006, and Law on Geographical Indications No. 8/2000. The key institution is the Ministry of Industry, Trade and Supply, respectively the Directorate for the Protection of Industrial Property and the Register of Patents and Trademarks falling under it. A trademark can also be registered with two private entities, Abu Ghazaleh Intellectual Property and SABA&Co. Intellectual Property. Registration costs between 450 and 700 JOD. In the field of intellectual property rights protection, Jordan is not one of the known problem countries. The Global Competitiveness Report rates the situation in Jordan within the region as one of the best, and even the USA did not feel the need to include it on the so-called Watch List. The Jordanian government itself considers the main problem in this area to be the fact that counterfeit audio-visual media, mainly from abroad, continue to be sold in the country, despite government campaigns, including those directly aimed at stores. Illegal software is also a common phenomenon, counterfeit branded textile goods are a marginal phenomenon. The Jordanian customs office, which together with the police, has created special units to detect and confiscate counterfeit goods, is trying to solve the situation. An interdepartmental copyright enforcement commission was also established. The Jordanian customs office, which together with the police, has created special units to detect and confiscate counterfeit goods, is trying to solve the situation. An interdepartmental copyright enforcement commission was also established. The Jordanian customs office, which together with the police, has created special units to detect and confiscate counterfeit goods, is trying to solve the situation. An interdepartmental copyright enforcement commission was also established.

Public procurement market

Jordan has not yet acceded to the Agreement on Government Procurement at the WTO, and has only maintained observer status for many years. Although the relevant provisions of the Association Agreement with the EU apply to Czech companies, they are far from reaching the level of obligations from the new modern EU trade agreements. Jordan officially declares its interest in achieving a unified, open, comprehensible and controllable system of public procurement, which is also requested by world financial institutions within the framework of their support programs, the new system is the JONEPs electronic procurement system (www.joneps.gov.jo). However, the reality remains that public contracts are practically unattainable without a reliable local partner who has appropriate, even unwritten, information, and there are no central rules for awarding them. The key moment was supposed to be the adoption of the directive on the unification of government contracts in 2019, but its implementation has so far made little progress. The notified committee for supervision and the relevant implementation departments have not yet been established, the promised fundamental reforms are not taking place. The overarching institution was to become a special office for government contracts, falling directly under the Prime Minister – Government Procurement Department (www.gdp.gov.jo). It was already established by the merger of previously separate institutions for the awarding of government contracts for goods and services and for medicines and medical supplies. A large number of different commissions and committees announcing government contracts were also formally included under it. But they continue to follow their old ways, which ultimately means that over fifty systems of rules and requirements that are difficult to understand still operate in Jordan. which are often very different for individual contractors. Last but not least, a considerable amount of unclear and sometimes contradictory legal regulations also remain in force. The share of foreign participation, the use of domestic resources or the implementation of part of the processing process is usually limited. The processes of selecting the winner themselves are not very transparent. Only Jordanian entities can participate in public works and engineering services. Own rules have special economic zones, state-owned enterprises and basically any other state institution below the government level can have them. The processes of selecting the winner themselves are not very transparent. Only Jordanian entities can participate in public works and engineering services. Own rules have special economic zones, state-owned enterprises and basically any other state institution below the government level can have them. The processes of selecting the winner themselves are not very transparent. Only Jordanian entities can participate in public works and engineering services. Own rules have special economic zones, state-owned enterprises and basically any other state institution below the government level can have them.

Payment terms, payment ethics and resolution of commercial disputes

The payment morale of Jordanian companies is not usually problematic, especially if the terms of delivery and payment are clearly defined in advance. This also applies to the time assumption for the maturity of invoices, if it is not given by contract, approximately one month is expected, but it is not an immutable rule. Since they have been doing business mainly with Western companies for a long time, Jordanian companies are largely used to respecting the usual standards of international trade, which means mainly payments in the form of letters of credit. Commercial disputes are subject to Jordanian civil courts, which decide according to local laws, unless the contract provides a different legal basis. Disputes can also be resolved through the arbitration commission established by the Jordanian Chamber of Commerce. Unfortunately, going to court in Jordan is in any case a long shot with an uncertain outcome. The problem is not so much the fundamental shortcomings of the Jordanian legal system as the costly and complicated related bureaucracy and, above all, the length of court proceedings. Both (and not only) are rated by Doing Business as one of the worst in the Middle East and North Africa region. In general, there are also complaints about the transparency and coherence of judicial decisions in connection with the Jordanian judiciary.

Visas, fees, specific conditions for traveling to the territory

A passport valid for at least 6 months after the intended departure and a visa which can be purchased for 40 JOD upon arrival at Amman and Aqaba airports, also by card, are required to enter Jordan. A variant is the so-called Jordan Pass purchased in advance (www.jordanpass.jo) at a price of 70 JOD, which works as a visa and entrance fee to a number of monuments at the same time. You can also apply for a visa at the Embassy of Jordan in Vienna. The visa is valid for 30 days, it can be extended up to 90 days at the foreign police. The exit tax when leaving the country is 10 JOD, the tickets include it directly. You also need a pre-filled and printed arrival form (https://www.visitjordan.gov.jo/form/) and travel health insurance.

The possibilities of land entry change depending on the development of the security situation. The current status (including the possibility of obtaining a visa on the spot) will be communicated by the Jordanian embassies. When arriving by motor vehicle, a technical and international driver’s license must be presented and insurance of approximately USD 40/week must be paid at the border. Information on transport from the airport to Amman city center is available at www.amman-airport.com/transport.php. It is only possible to get to the Representative Office of the Czech Republic by car. Public bus transport is limited in Amman and Irbid, and its system is difficult for foreigners to understand. Transportation by private car is standard. Due to the clear price in advance, we recommend the Uber and Careem apps over a classic taxi. An international driver’s license is required to rent and drive a car.

During treatment, payment is required in advance (including insurance), and during hospitalization, a deposit in the amount of several tens of thousands of CZK is required. You can usually pay by bank card. In Amman and tourist centers (Aqaba, Dead Sea, Petra), quality and luxury hotels are available, including renowned international chains. In these locations, you can normally pay by card even in smaller shops and restaurants. Water from the water supply network should be safe for health, but it is not very tasty, which is why drinking water is usually bought bottled. Its purchase is no problem in populated areas. Safety and specifically the safety of foreigners is a priority for Jordan, the police are very welcoming to foreigners. In the western part of the country, where most of the monuments are located, the situation has been stable for a long time and ordinary crime is comparable to the Czech Republic,

Employment of citizens from the Czech Republic

According to local law, without Jordanian citizenship, employment in Jordan can only be obtained through a so-called guarantor, which can only be an entity registered with the Jordanian Ministry of Industry, Trade and Supply (which is the local equivalent of the commercial register). The guarantor takes responsibility for it to a large extent towards the state, without it you cannot get a work permit or a residence permit in the country, which must be renewed every year. The permit itself is granted at the request of the guarantor by the Ministry of Labour, in addition to completed forms, a copy of the passport and a photo, a positive statement from the Ministry of the Interior, a medical examination at the relevant institution of the Ministry of Health, an employment contract and proof of local insurance are required. The basic fee is 300 JOD + other minor administrative fees. By default, employers pay 14% and employees 7, 5% for social insurance, different conditions are part of the incentives for the creation of new jobs. The maximum duration of a fixed-term contract is 5 years, the probationary period is a maximum of 3 months. The average salary is roughly 545 JOD. The minimum wage is currently 260 JOD for Jordanian citizens, 245 JOD for others. In addition, some sectors such as the textile industry are completely exempt from the minimum wage, as are domestic staff. If it is not manual work with low financial and social remuneration, then due to high unemployment, the government permits the employment of foreigners only in exceptional cases, while (in accordance with the law) differences between Arab and non-Arab applicants are applied, some sectors are from the point of view of citizens CR closed completely.

Fairs and events

The most important event in Jordan is the defense and security technology fair SOFEX (Special Operations Forces Exhibition and Conference, www.sofexjordan.com), which takes place once every two years with the support of the King of Jordan and the army. The 13th edition, postponed due to the pandemic, will take place on October 31 – November 3, 2022 in the port city of Aqaba on the Red Sea.

The combined trade fair SONEX/JIMEX ((www.sonex.jo and www.jimex.jo), which takes place every year at the turn of May and June, is intended not only for companies in the field of energy. The SONEX part is primarily focused on solar energy and other renewable sources, JIMEX then covers the energy sector comprehensively, including the related electrotechnical and engineering offer.

A new initiative in the field of energy is the MENA-Europe Future Energy Dialogue (mena-europe-energy.org), the first year of this conference took place at the beginning of June 2022.

In the field of agriculture and food products, you can present at the Sawsana , Vetrana and IRIS exhibitions organized by the Technical Consultancy Center (www.tc-center.com). In 2022, they will take place together on November 8-11, 2022 in Amman. Sawsana is focused on plant production, Vetrana on all aspects of livestock production, and the IRIS exhibition is dedicated to food and food technology.

A key event for the ICT sector is the MENA ICT Forum , which takes place once every two years and whose next edition is scheduled for November 16-17, 2022 at the Dead Sea (www.menaictforum.com).

Jordan Market Entry