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Marketing Jordan's Customs Due Diligence and Supply Chain Security Standards

AMIR II Achievement of Market-Friendly Initiatives and Results

March 2006 This document was produced for review by the United States Agency for International Development. It was prepared by Chemonics International Inc.

JORDAN AMIR II Achievement of Market-Friendly Initiatives and Results Contract No. 278-C-00-02-00210-00 The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

Contract No.: 278-C-00-02-00210-00

Contractor Name: Chemonics International, Inc.

USAID Cognizant Technical Office: Office of Economic Opportunities

USAID/Jordan

Date of Report: March 2006

Document Title: Marketing Jordan's Customs Due Diligence

and Supply Chain Security Standards

FINAL

Authors' Names: Dr. Mohammed Tarawneh and Dr. Mamoun

Akroush/Chemonics

Activity Title and Number: Achievement of Market-Friendly Initiatives

and Results Program (AMIR Program)

“PSP-SMA-IRC-006,” PSPI Component

Task No. 595.01.03, 595.01.04

Marketing Jordan's Customs Due Diligence and

Supply Chain Security Standards

Final

March 2006

The opinions expressed herein are those of the author(s) and do not necessarily reflect the

opinions of the United States Agency for International Development or the United States

Government or Chemonics International or any firms in the AMIR Program consortium

or the management of the AMIR Program.

Marketing Jordan's Customs due diligence and Supply Chain Security Standards

AMIR Program ii

Data Page

Name of Component: Private Sector Policy Initiative

Authors: Mohammed Tarawneh and Mamoun

Akroush/Chemonics

Practice Area: Trade and Investment

Service Offering: N/A

List of Key Words Contained in Report: Customs due diligence, supply chain

security, marketing, Golden List Program,

Jordan


AMIR Program iii

Abstract

During the second half of 2004, Jordan Customs (JC) initiated a voluntary, self-

compliance program called the Golden List Program (GLP). The program targeted

Jordan supply chain companies including importers, exporters, transporters and transport

operators, customs clearing agents, warehouse operators, and Qualified Industrial Zone

(QIZ) manufacturers (manufacturers qualified for duty-free exports to the United States).

According to the GLP, supply chain companies that are exercising customs due diligence,

have supply chain security procedures in place, have a good compliance history with JC

and compliant with Jordan customs law and regulations might qualify to become a GLP

member.

The GLP is considered a national effort undertaken by JC towards the implementation of

the World Customs Organization (WCO) Framework of Standards to Secure and

Facilitate Global Trade that came into effect in June, 2005. Jordan has already signed the

letter of intent to implement the WCO Framework and, with assistance from the USAID-

funded AMIR Program in Jordan, has taken wide steps towards implementing the

Framework. In partnership with the private sector in Jordan, JC has implemented the

GLP to qualify Authorized Economic Operators (AEOs) according to the customs-to-

business pillar of the WCO Framework of Standards. Further, JC intends to implement

the other pillar, customs-to-customs pillar, of the WCO Framework of Standards, starting

with Jordan's main trading partner countries.

The objective of this project was to facilitate marketing the GLP of JC nationally and

internationally. On the national front, the aim was to make the program known to Jordan

supply chain companies and invite them to join. On the international level, the aim was

to make the program known to other countries, especially Jordan main trading partners,

and seek their recognition of the GLP. To this extent, the project has established several

tasks all aimed at facilitating the marketing efforts of the GLP nationally and

internationally. This paper documents the results of these tasks.


AMIR Program iv

Abbreviations and Acronyms

AEO Authorized Economic Operators

AMIR Achievement of Market-Friendly Initiatives and Results

C-TPAT Customs-Trade Partnership Against Terrorism

JC Jordan Customs

JEA Jordan Exporters Association

JEDCO Jordan Enterprise Development Corporation

JIB Jordan Investment Board

MoU Memorandum of Understanding

USA United States

USAID United States Agency for International Development

USCBP United States Customs and Border Protection

WCO World Customs Organization


AMIR Program v

Table of Contents

Executive Summary................................................................................................... 1

Recommendations...................................................................................................... 5

1. Introduction……..………………………………………………………………...6

2. Objective ................................................................................................................ 8

3. Results.................................................................................................................... 9

Appendix A Memorandom of Understanding ....................................................... 25

Appendix B Mutual Recognition Request letter .................................................... 30

Appendix C Jordan Main Traded Commodities by Tariff Classification............. 33

Appendix D Golden List Program of Jordan Customs - How to Join .................. 71

Appendix E Golden List Program of Jordan Customs - How to Implement ...... 103

Appendix F GLP - Questions & Answers Brochure............................................ 124

Appendix G Golden List Program Marketing Strategy ........................................ 130


AMIR Program 1

Executive Summary






According to this program, supply chain companies that are exercising customs due

diligence, have supply chain security procedures in place, have a good compliance history

with JC and compliant with Jordan customs law and regulations might qualify to become

a GLP member. Golden List companies will enjoy preferential treatment by JC in the

form of certain incentives. Companies that do not qualify to become a member of the

GLP can work jointly with the JC to make certain improvements to enable them to join.

The GLP is considered a national effort undertaken by JC towards the implementation of

the World Customs Organization (WCO) Framework of Standards to Secure and

Facilitate Global Trade, which came into effect in June 2005. Jordan has already signed

the letter of intent to implement the WCO Framework and, with assistance from the

Achievement of Market-Friendly Initiatives and Results (AMIR) Program, funded by the

United States Agency for International Development (USAID) in Jordan, has taken wide

steps towards implementing the Framework. In partnership with the private sector of

Jordan, JC has implemented the GLP to qualify Authorized Economic Operators (AEOs)

according to the customs-to-business pillar of the WCO Framework of Standards.

Further, JC intends to implement the other pillar, customs-to-customs pillar, of the WCO

Framework of Standards, starting with Jordan's main trading partner countries. JC will be

seeking mutual recognition of its GLP as part of implementing the customs-to-customs

pillar. Within the context of the WCO Framework of Standards, the GLP can be

summarized in the following few points.

1. The program targets Jordan supply chain companies (AEOs) including importers,

exporters, transporters and transport operators, customs clearing agents,

warehouse operators, and Qualified Industrial Zone (QIZ) manufacturers

(manufacturers qualified for duty-free exports to the United States). According to

the GLP, supply chain companies that are exercising customs due diligence, have

supply chain security procedures in place, have a good compliance history with JC

and compliant with Jordan customs and non-customs laws and regulations may

qualify to become a GLP member.

2. The GLP is a customs-business partnership, thus satisfies the customs-to-business

pillar of the WCO Framework of Standards. GLP aims at enhancing customs due

diligence and supply-chain security of Jordanian businesses participating in the

international trade supply chain; while, at the same time, facilitating Jordan's trade

with other countries. The JC developed the program with assistance from the

USAID-funded AMIR Program.

3. GLP sets minimum customs due diligence and supply-chain security criteria that

must be met by a company desiring to become a GLP member. An audit team of

customs officers undertakes extensive audit processes, including customs-


AMIR Program 2

transactions and supply-chain security audits, on the applicant company to verify

its compliance with program criteria.

4. GLP member companies enjoy a preferential treatment by JC in the form of

certain incentives; for example, reduced frequency of cargo inspections, pre-

arrival clearance of shipments, expedited borders clearance times, etc.

5. The supply-chain security side of the GLP has benefited from international

organizations and foreign countries codes or recommendations, including:

a. The International Shippers and Freight Forwarders Security Code—Draft

Rev. 4 by United Nations Center for Trade Facilitation and Electronic

Business (UN/CEFACT).

b. “High Level Guidelines for Co-operative Arrangements between WCO

Members and the Private Sector” to increase supply chain security, as

adopted by the WCO in its general assembly in June 2003.

c. United States C-TPAT guidelines on supply chain security.

d. International Ship and Port Facility Security Code (ISPS Code) by the

International Maritime Organization.

e. BASC (Business Anti-Smuggling Coalition) Standards by the World

BASC Organization.

6. JC intends to implement the customs-to-customs pillar of the WCO Framework of

Standards via seeking mutual recognition of its GLP from other countries (starting

with Jordan's main trading partner countries).





and seek their recognition of the GLP.

The project, funded under a USAID grant through its AMIR Program, has established

several tasks all aimed at facilitating the marketing efforts of the GLP nationally and

internationally. Task one involved forming a program coalition of a number of public

and private sector organizations to collaborate and join efforts with JC to market the GLP.

It was realized from the onset of this project that the success of any future marketing

efforts would depend on key roles that should be played by key public and private sector

partners or stakeholders who have a stake in the success of the GLP. The mission

statements of three organizations were found to fit nicely with the mission and national

benefits of the GLP, thus selected to form a program coalition with JC. The three

organizations were Jordan Enterprise Development Organization (JEDCO), a

governmental organization, Jordan Investment Board (JIB), a governmental organization

and Jordan Exporters Association (JEA), a private sector representative organization.

After several meetings with these organizations, a Memorandum of Understanding

(MOU) that defines the roles each organization agreed to play was signed between them

and JC. A marketing organization structure encompassing the selected three

organizations and JC was developed to implement the GLP marketing strategy, which

was developed under Task 7.


AMIR Program 3

Task two involved translating all official GLP publications into English. Since the

official language in Jordan is Arabic, and since some of the GLP publications were

available in Arabic only, to market the GLP internationally, all publications are now

available in both Arabic and English. It was recognized that communicating the GLP to

Arab countries should be in Arabic while to other countries should be in English.

Because of the efforts made in this task, several documents pertaining to the GLP are now

available from JC in Arabic and English.

Task three involved identifying Jordan largest trading-partner countries from which JC

could seek mutual recognitions of the GLP under the customs-to-customs pillar of the

WCO Framework of Standards to Secure and Facilitate Global Trade. Trade value

figures in Jordanian Dinars between Jordan and other countries during the years 2003-

2004 were compiled from the Jordan Department of Statistics and validated using the

database of JC. The United States, Iraq, India, Saudi Arabia and Syria were the largest

markets for Jordan's exports. Saudi Arabia, China, Germany, United States, and Italy

were the largest markets from which Jordan imports. Jordan has sizable trade

transactions with several Arab or Middle-Eastern counties including Saudi Arabia, Iraq,

Syria, United Arab Emirates, Algeria, Lebanon, Kuwait, Sudan, Yemen, Libya, Qatar,

Bahrain, Oman, Turkey, Iran and Israel. In addition, Jordan has sizable trade volumes

with a number of European countries including Switzerland, Spain, Netherlands, Italy,

Germany, France, United Kingdom, Ukraine, Romania, Belgium, and Sweden. Most

notably, the United States is the largest and most promising market for Jordan's exports.

These countries were matched with the WCO list of "Members who have expressed their

intention to implement the WCO Framework of Standards to Secure and Facilitate Global

Trade: situation as of October 30, 2005". With the exception of very few countries, all

Jordan's main trading partners have expressed their intention to implement the WCO

Framework of Standards.

Task four involved identifying 20-30 target countries for customs-to-customs mutual

recognitions of the GLP under the WCO Framework of Standards and assisting JC in

contacting the identified countries and presenting the GLP to them. His Excellency, the

Director General of JC formed a committee of senior customs officers to choose 20-30

target countries. The consultant has served in an advisory capacity to the committee.

After four meetings, and using pre-established 6-item selection criteria, the committee

identified 29 target countries for JC to contact. The primary target was the United States

because it was the largest market for Jordan's exports, has a similar program to the GLP

(C-TPAT) and has a bi-lateral free trade agreement with Jordan. In addition, the

committee viewed the extent of cooperation between JC and the US Customs and Border

Protection (USCBP) as “superior.” Other selected countries include Canada, United

Kingdom, Germany, France, Italy, Spain, Ukraine, Bulgaria, Poland, Belgium,

Switzerland, China, Japan, India, Indonesia, Pakistan, Yemen, Libya, Egypt, United Arab

Emirates, Lebanon, Algeria, Kuwait, Sudan, Saudi Arabia, Oman, Turkey, and Iran. As

of this writing, an initial customs-to-customs mutual recognition letter was prepared and

sent to each of these countries. His Excellency the Director General of JC signed the

letter addressed to the Director of Customs Service/Department in each of the identified

countries (29 countries). The letter included two attachments; a summary sheet of the

GLP and a survey sheet asking a few questions to be answered by a target country. The

letter was formally referenced by "Implementation of Customs-to-Customs Pillar of the

World Customs Organization Framework of Standards to Secure and Facilitate Global

Trade".


AMIR Program 4

Task five involved identifying the top 30% (minimum) of Jordan trade goods by tariff

classification that would benefit from the mutual recognition processes. The objective of

identifying the commodities, as tied to the target countries, is intended to identify the

commodities that would be most likely to benefit from a mutual recognition between the

two countries' customs administrations (Jordan and any other country). This information

will be advantageous to identify those industries in both countries that should place a high

emphasis on entering the GLP and the trade partner country's program. Trade value

figures in Jordanian Dinars (along with commodities descriptions and harmonized tariff

classification codes) between Jordan and other countries during the year 2004 were

compiled from the Jordan Department of Statistics and validated using the database of JC.

Jordan main exported commodities were apparels, clothing, precious stones and metals;

furniture, bedding, mattresses and cushions; pharmaceutical products; animal or vegetable

fats and oils; tobacco products; plastics and articles thereof; salt, sulphur, plastering

materials and cement; paper, paperboard and paper pulp; and few others. Jordan main

imported commodities were mineral fuels, mineral oils, bituminous substances and

waxes; plastics and articles thereof; sugars and sugar confectionary; knitted or crocheted

fabrics; electric machinery and equipment; articles of apparel and clothing (not knitted);

vehicles and their parts; pharmaceutical products; and few others. Thus, Jordan industries

dealing with these commodities should place a high emphasis on entering the GLP.

Task six involved preparing marketing materials to assist in marketing the GLP. The

intended materials are to spread awareness about the GLP, and assisting companies

interested to join in how to proceed and what needs to be done. Three stand-alone

documents were prepared in this task. "How to Join the Golden List Program" is a step-

by-step guide explaining all processes to be undertaken by a supply-chain company to

join the GLP. "How to Implement Customs Due Diligence and Supply Chain Security in

Your Company" is a guide to all supply-chain companies on how to implement customs

due diligence and supply-chain security which are a major part of JC's criteria for

accepting a company on the GLP. "Golden List Program of Jordan Customs: Questions

and Answers" is a brochure explaining in generic terms what is the GLP is about,

program benefits, types of companies accepted on the program, etc.

Task seven involved developing a multi-year marketing strategy for the GLP to be

implemented by the coalition partner organizations (formed under Task one). The GLP is

considered a national program of Jordan and expected to influence the trade sector, and

thus, the whole economy. However, it may take few years for the program to gain the

international recognition it deserves. Of course, this recognition will not come true

without a national effort encompassing both the private sector and the government. More

importantly, a marketing strategy needs to be in place so that each party, a governmental

or a private sector, understands its role and responsibility. The marketing strategy

developed under this task included three main phases. The Situational Analysis Phase

included discussions of market demographics, market needs, market trends and growth,

SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis and other critical

issues. The Marketing Strategy Formulation Phase included discussions of mission

statement, market segments (targeted enterprises), goals and objectives and marketing

strategy components. The Marketing Strategy Implementation Phase included

discussions of marketing organization, partner organizations' roles, the first-year

marketing plan, control and performance assessment and GLP scenarios.


AMIR Program 5

Recommendations

1. JC has already sent letters to the customs services/departments of 29 foreign

countries requesting mutual recognitions of the GLP under the customs-to-

customs pillar of the WCO Framework of Standards to Secure and Facilitate

Global Trade. JC should seek funding and technical assistance from international

donor organizations to support their mission. Opening dialogue with 29 foreign

customs services/departments is a huge effort on the part of JC and may not

succeed without a solid technical support standing by their side.

2. Coalition partner organizations (JC, JEDCO, JIB and JEA) have already signed a

MOU through which they committed themselves to market the GLP nationally

and internationally. Jointly, coalition partner organizations should seek funding

from international donor organizations to guide their efforts.

3. Coalition partner organizations should initiate national and international

marketing campaigns of the GLP. Marketing campaigns, especially on the

international level, are complex and expensive. Jointly, coalition partner

organizations should seek funding from international donor organizations to fund

such campaigns.

4. The GLP criteria for companies' inclusion on the Golden List should be monitored

and upgraded as experience emerges. The customs-to-customs mutual recognition

processes with other countries may stipulate changes to the program criteria and to

all other modalities.


AMIR Program 6

I. Introduction

A. Background

In modern customs practice, a primary objective of risk management is a concentrated

effort to identify and encourage low risk shipments. By the elimination of low risk

shipments from its workload, customs can direct limited resources to find and intercept

shipments that may present revenue, health, safety, or security risks. To achieve this

goal, customs must work in partnership with honest participants in the international

trading system. Both sides must do their part. Informed, voluntary compliance

eliminates the need for inspecting every shipment every time. To be voluntarily

compliant, the international trade community participants must develop and implement

documented systems of self-regulation. This self-regulation ensures that the businesses

exercise reasonable care or due diligence. There are three key elements essential for an

international transaction to qualify as low risk:

1. The associated businesses to the transaction must have a history of apparent

compliance

2. The associated businesses have been the subject of a compliance audit by customs

or an independent organization fully qualified and accredited to conduct a customs

compliance audit

3. The associated businesses have a functional, documented due diligence system. A

due diligence system simply put, is a documented process to insure that the

company is taking reasonable steps to insure compliance with the international

trade related laws and procedures.

The most advanced application of the low risk, due diligence process is currently in

practice in the United States. In the past, the emphasis has been on the application of the

low risk process for importers. Now, the application of documented low risk applies to

the entire supply chain; including importers, exporters, customs brokers, transporters,

freight forwarders and warehouse operators. A full circle due diligence process is where

each participant in the cross border transaction is exercising due diligence. The full circle

due diligence process provides the highest achievable level of confidence to customs that

a particular shipment crossing the border is compliant with the law and therefore does not

need inspection. When participants in the supply chain are exercising a due diligence

approach in their business transactions (including checks on the partner participants)

customs, with high confidence, can continue to permit the seamless flow of legitimate

international trade. The partnership of the international trade community and customs

significantly increases the supply chain security of international transactions.

B. Customs Due Diligence and Supply Chain Security in Jordan: the Golden List Program









AMIR Program 7

with JC and compliant with Jordan customs law and regulations might qualify to become

a golden list member. Golden List companies will enjoy preferential treatment by JC in

the form of certain incentives. Examples of these incentives include (i) reduced

frequency of inspections by customs, (ii) pre-arrival clearance of goods, (iii) minimum

levels of financial penalties, (iv) release of goods before completing customs formalities,

(v) lesser financial securities (guarantees), (vi) reduced documentation and paper work

requirements, (vii) clearance of goods during off-work hours, and (viii) expedited

clearance times of customs transactions. Companies that do not qualify to become a

member of the Golden List can work jointly with JC to make certain improvements to

enable them to join .

C. Golden List Program and WCO Framework of Standards to Secure and Facilitate Global Trade

The GLP is a national effort undertaken by JC towards the implementation of the World

Customs Organization (WCO) Framework of Standards to Secure and Facilitate Global

Trade, which came into effect in June 2005. Jordan has already signed the letter of intent

to implement the WCO Framework and, with assistance from the USAID-Funded AMIR

Program of Jordan, has taken wide steps towards implementing the Framework. In

partnership with the private sector of Jordan, JC has implemented the GLP to qualify

Authorized Economic Operators (AEOs) according to the customs-to-business pillar of

the WCO Framework of Standards. Further, JC intends to implement the other pillar,

customs-to-customs pillar, of the WCO Framework of Standards, starting with Jordan's

main trading partner countries. JC will be seeking mutual recognition of its GLP as part

of implementing the customs-to-customs pillar. Within the context of the WCO

Framework of Standards, the GLP can be summarized in the following few points.

1. The program targets Jordan supply chain companies (Authorized Economic

Operators) including importers, exporters, transporters and transport operators,

customs clearing agents, warehouse operators, and Qualified Industrial Zone

(QIZ) manufacturers (manufacturers qualified for duty-free exports to the United

States). According to the GLP, supply chain companies that are exercising

customs due diligence, have supply chain security procedures in place, have a

good compliance history with JC and compliant with Jordan customs and non-

customs laws and regulations may qualify to become a GLP member.

2. The GLP is a customs-business partnership, thus satisfies the customs-to-business

pillar of the WCO Framework of Standards. GLP aims at enhancing customs due



with other countries. The JC developed the program with assistance from the

United States Agency for International Development (USAID) through the

Achievement of Market-Friendly Initiatives and Results Program of Jordan

(AMIR-Program).

3. GLP sets minimum customs due diligence and supply-chain security criteria. A

company must meet these criteria to become a GLP member. An audit team of

customs officers undertakes an extensive audit processes, including customs-

transactions and supply-chain security audits, on the applicant company to verify

its compliance with program criteria.


AMIR Program 8




5. The supply-chain security side of the GLP has benefited from international

organizations and foreign countries codes or recommendations, including:

a. The International Shippers and Freight Forwarders Security Code—Draft

Rev. 4 by United Nations Center for Trade Facilitation and Electronic

Business (UN/CEFACT).

b. “High Level Guidelines for Co-operative Arrangements between WCO

Members and the Private Sector” to increase supply chain security, as

adopted by the WCO in its general assembly in June 2003.

c. United States C-TPAT guidelines on supply chain security.

d. International Ship and Port Facility Security Code (ISPS Code) by the


e. BASC (Business Anti-Smuggling Coalition) Standards by the World

BASC Organization.

6. JC intends to implement the customs-to-customs pillar of the WCO Framework of

Standards via seeking mutual recognition of its GLP from other countries (starting

with Jordan's main trading partner countries).

2. Objective





and seek their recognition of the GLP.

The project team undertook several tasks to accomplish the project objective. They were:

Task 1: Form a Program Coalition

Task 2: Translate all Official GLP Materials into English

Task 3: Identify Jordan Largest Trading Partner Countries

Task 4: Identify a Number of Target Countries for a Customs-to-Customs Mutual

Recognition of the GLP under WCO Framework of Standards

Task 5: Identify Jordan Trade Goods Likely to Benefit from a Customs-to-Customs

Mutual Recognition with Other Countries

Task 6: Prepare Marketing and Technical Materials for the GLP

Task 7: Develop a Multi-year Marketing Strategy for the GLP

Below is a description of the activities performed, and the results attained under each

task.


AMIR Program 9

3. Results

Task 1: Form a Program Coalition

Identification of Coalition Partners

The aim of this task was to identify a number of public- and private-sector organizations

to collaborate and join efforts with JC to accomplish the objective of this project, which

was to facilitate marketing the GLP nationally and internationally. It was realized from

the onset of this project that the success of any future marketing efforts would depend on

key roles that should be played by key public- and private-sector partners or stakeholders

who have a stake in the success of the GLP. Because there are many organizations in

Jordan that may have an interest in the GLP, JC and the grantee, decided to choose the

most relevant three organizations only. However, to make an appropriate selection, a

mission statement for the GLP, as well as its national benefits to Jordan, were formulated

and compared with the mission statement of several candidate organizations.

The GLP mission statement follows:

“The GLP is a voluntary, self-compliance program aimed at enhancing customs due

diligence and supply-chain security within the trading community of Jordan, and, at the

same time, facilitating Jordan's trade with other countries. The program improves the

performance of Jordan enterprises, boosts the trading sector, and enhances the growth of

the economy. The program encourages and assists enterprises to implement the state-of-

the-art and internationally-recognized procedures with respect to customs transactions

and security of trade supply chains. The program complies with the WCO Framework of

Standards to Secure and Facilitate Global Trade, which came into effect in June 2005.

Jordan enterprises joining the GLP will be perceived as "diligent" and "secure"

enterprises, and thus, will be treated favorably by their international counterparts. The

targeted community of the GLP is all enterprises in Jordan that participate in the

international trading activity; including importers, exporters, manufacturers, transporters,

customs brokers and warehouse operators."

The identified national benefits of the GLP are:

� Jordan's Economy. The GLP enhances the competitiveness of the trading sector

of Jordan locally and internationally and consequently improves Jordan's

economy.

� Jordanian Enterprises. The GLP offers Jordanian enterprises a great opportunity

to:

- expand current markets shares and exploit new markets

- increase profits and return on investment

- expedite business transactions and reduce operating costs

- apply the sate-of-the-art best practices

- gain a unique management experience

� Jordan Government. The GLP protects the income of the Treasury via optimal

allocation of JC and other Government organizations' resources.

� Jordan Security. The GLP enhances borders security, protects cargos and people,

and help prevents terrorist acts.

� International Best Practices. The GLP makes Jordan a pioneer country with

respect to compliance with internationally recognized best practices (such as the


AMIR Program 10

World Customs Organization Framework of Standards to Secure and Facilitate

Global Trade).

� International Aid Agencies. The GLP demonstrates the success of international

aid agencies in Jordan.

� Jordan People. Jordan people will, ultimately, reap the economic as well as other

aforementioned benefits of the GLP.

After review, the mission statements of the following three organizations appear to fit

nicely with the mission and national benefits of the GLP suggesting their selection to

form a program coalition with JC:

� Jordan Enterprise Development Organization (JEDCO)- a governmental

organization.

� Jordan Investment Board (JIB) - a governmental organization.

� Jordan Exporters Association (JEA) - a private sector representative organization.

Jordan Enterprise Development Corporation (JEDCO), Jordan Investment Board (JIB)

and Jordan Exporters Association (JEA) are considered of crucial and strategic

importance to communicating the GLP to Jordanian enterprises as well as key trading

partners in the international community. Each of these organizations’ vision and mission

has an indirect responsibility toward promoting the GLP inside and outside Jordan. In its

mandate, JEDCO has the responsibility of developing the capacity of Jordan enterprises

and making them more competitive in the international markets. Of course, joining the

GLP by Jordan enterprises is a part of fulfilling this responsibility. JIB has the

responsibility of attracting foreign investments to Jordan; however, foreign investors

always demand a secure environment for their assets. The GLP enhances the security of

Jordan enterprises and the country at large; thus makes Jordan a more attractive

environment for foreign investments. JEA aims at assisting Jordan exporters to exploit

new foreign markets, which are now extremely cautious to the security of cargo

shipments and the supply chains carrying them. The GLP enhances the security of Jordan

exporters and the Jordan side of supply chains; thus facilitates entry of Jordan exports into

foreign markets.

In addition to the above organizations (JEDCO, JIB and JAE), international aid agencies

and Jordan embassies abroad were identified to informally assist JC in the marketing

efforts of the GLP.

Memorandum of Understanding

Several meetings were held with JEDCO, JIB and JAE to explain to them the objectives

and the national benefits of the GLP. All three organizations have agreed to join efforts

with JC for marketing the GLP nationally and internationally. The three organizations

and JC signed a Memorandum of Understanding (MOU) that defines the roles each

organization agreed to play. The MOU is contained in Appendix A.

Forming Marketing Organization

Marketing organization is a vital step for the success of implementing any marketing

strategy. Marketing organization design includes consideration of the trade-off between

performing marketing functions within the GLP initiator (JC) and having them performed

by other partner organizations (JEDCO, JIB and JEA). Figure 1 presents a model

organization structure to be followed throughout the implementation of the marketing


AMIR Program 11

strategy (the marketing strategy was developed in Task seven). In the below discussion,

reference is made to the model organization of Figure one.

JC is the initiator of the GLP and has a major role to play both inside and outside Jordan.

Outside Jordan, JC could make the necessary contacts with foreign-country customs

departments/ services for attaining mutual recognition of the GLP from these

departments/ services. JC has the facility under the Customs-to-Customs Pillar of the

WCO Framework of Standards to Secure and Facilitate Global Trade to seek recognition

for the GLP. Practically, JC should seek recognition from Jordan's current main trading

partners, then follow up with Jordan's potential trading partners. Also, JC, along with the

rest of the partner organizations, could provide support to Jordan Embassies abroad to

enable them to spread awareness about the GLP to other countries. Inside Jordan, JC

could team up with other partner organizations (JEDCO, JIB and JEA) to market the GLP

to the trading community of Jordan.

JEDCO could play the role of a coordinator to the partner organizations efforts. JEDCO

could make a constructive connection between the GLP program initiator (JC) and other

organizations like international aid agencies, JIB, JEA and Jordan embassies abroad.

JEDCO could also play a vital role in marketing the GLP directly to Jordan enterprises.

Jordan embassies abroad are ideal to spread awareness about the GLP to the international

trading community. However, embassies cannot undertake this mission without support

from all other partner organizations.

International aid agencies, JIB and JEA have local and international connections to enable

them market the GLP locally and internationally.

The GLP marketing consultant could provide a supervisory role to the whole process,

advise all partner organizations, update the marketing strategy when deemed necessary,

and design appropriate assessment studies.


AMIR Program 12

Figure 1. Marketing Organization for the GLP.

Customs Departments in Main

Trading Partner Countries &

World Customs Organization

The Trade Community

of Jordan

The International

Trade Community/

World-Wide

Economic Events

Jordan Enterprise

Development

Corporation /

JEDCO

GLP

Marketing

Consultant

Jordan

Customs /

Golden List

Program

International

Aid Agencies

Jordan

Investment

Board / JIB

Jordan

Exporters

Association /

JEA

Jordan

Embassies

Abroad

GLP

Coordinator /

JEDCO


AMIR Program 13

Roles of Coalition Partners

Below is a description of the agreed-upon roles for the different partner organizations.

Jordan Customs (JC)

JC will undertake the following activities:

� Maintain and update all technical materials pertaining to the GLP.

� Communicate the benefits of the GLP to all organizations transacting with JC.

� Undertake a timely audit on any enterprise that requests inclusion on the GLP.

� Provide technical expertise and guidance to enterprises, and assist them

throughout the whole process of becoming a GLP member.

� Supply all required technical materials that other partner organizations request.

� Supply all required technical materials that government and non-government

organizations inside and outside Jordan request; including Jordan embassies

abroad and international aid agencies.

� Make a timely update to the list of GLP members and make the list available on

the JC Internet website.

� Seek mutual recognition for the GLP from other countries, especially the main

trading partners of Jordan.

Jordan Enterprise Development Corporation (JEDCO)

JEDCO will undertake the following activities:

� Act as a coordinator between JC and all other partner organizations.

� Act as a coordinator between all partner organizations and Jordan embassies

abroad.

� Communicate the benefits of the GLP to all enterprises transacting with JEDCO.

� Spread awareness about the GLP during national and international events JEDCO

holds or participates-in.

� Use the GLP as a tool in developing and enhancing the competitiveness of

Jordanian enterprises; especially enterprises intending to exploit new markets.

� Use the GLP status as a marketing advantage for Jordanian enterprises.

� Participate in the implementation of the marketing strategy of the GLP and

according to the decisions all partner organizations will jointly make.

� In coordination with the other partner organization, to seek funding for the

implementation of the marketing strategy from government and non-government

organizations, including international aid organizations and agencies.

Jordan Investment Board (JIB)

JIB could undertake the following activities:

� Communicate the benefits of the GLP to all enterprises transacting with JIB,

including all enterprises benefiting from JIB's tax relief incentives.

� Spread awareness about the GLP in the countries where JIB has presence or

intends to have presence.

� Spread awareness about the GLP during national and international events JIB


� Use the GLP as a tool, among other tools, in marketing Jordan as a "secure

environment" for foreign investments.

� Use the GLP status as a marketing advantage for Jordanian enterprises; especially

those enterprises seeking international alliance with foreign investors and

counterparties.

� Use the GLP as a marketing tool to attract foreign enterprises to operate in Jordan.


AMIR Program 14



� In coordination with the other partner organizations, to seek funding for the



Jordan Exporters Association (JEA)

JEA could undertake the following activities:

� Communicate the benefits of the GLP to all enterprises transacting with JEA,

including all exporters currently listed on JEA's database.

� Spread awareness about the GLP in the foreign countries JEA visits from time to

time to promote Jordan exports.

� Spread awareness about the GLP during the trade shows, conferences, etc., JEA

holds or participates-in inside and outside Jordan.

� Use the GLP as a tool in marketing Jordan exporters as "secure exporters."

� Use the GLP status as a marketing advantage for Jordanian exporters to exploit

new markets.






International Aid Agencies

International aid agencies such as the United States Agency for International

Development (USAID) are friends of Jordan, and could play a significant part in

promoting the GLP to organizations inside and outside Jordan. These agencies are

important communications channels because they have built an international credibility

and are well known in many countries. For example, the USAID can promote the GLP

through the many programs the agency funds and implements in Jordan. A second

example is that USAID could spread awareness about the GLP to the US enterprises

through the funding of Jordan business-to-business alliances. A third example is that

USAID could facilitate for the recognition of the GLP by the US and other countries

where USAID has large aid programs. The same thing applies to all other international

aid agencies that have a significant presence in Jordan.

Jordan Embassies Abroad

Jordan embassies abroad have a very important role to play in promoting the GLP on the

international level. Through Jordan embassies, awareness about the GLP can spread to

almost all countries around the globe if Jordan embassies are well equipped to undertake

this function. However, embassies efforts should start with Jordan's current main trading

partners and potential future main partners. Embassies can undertake the following

activities:

� Participating in the economic forums and conferences that take place in the

countries where Jordan embassies operate.

� Participating in international economic events that take place in different parts of

the world.

� Distributing the GLP brochures and printed material.

� Launching promotional campaigns through their websites.


AMIR Program 15

� Communicating with the governmental and non-governmental economic bodies in

the countries where Jordan embassies operate.

� Participating in trade exhibitions in the countries where Jordan embassies operate.

Task 2: Translate all Official GLP Materials into English

The official language in Jordan is Arabic. Even though many documents pertaining to the

GLP were originally prepared in English (the working language of the technical experts

provided by the USAID-funded AMIR Program), they had to be translated into Arabic so

that the relevant personnel in JC could study and comment on them. The JC made several

refinements to the Arabic versions. The grantee translated these cnages back to the

original (English) versions. In addition, some documents were originally prepared in

Arabic, and English translation was required. The aim of this task was to make all the

technical materials pertaining to the GLP available in both Arabic and English. This step

was important, especially when JC starts seeking mutual recognition for the GLP from

other countries under the customs-to-customs pillar of the WCO Framework of Standards

to Secure and Facilitate Global Trade. It was recognized that communicating the GLP to

Arab countries should be in Arabic while to other countries should be in English.

Because of the efforts made in this task, the following documents pertaining to the GLP

are now available from JC in Arabic and English:

• Customs Due Diligence & Supply Chain Security Checklist-- Clearing Agent

• Customs Due Diligence & Supply Chain Security Checklist-- Export

• Customs Due Diligence & Supply Chain Security Checklist-- Import

• Customs Due Diligence & Supply Chain Security Checklist-- QIZ

• Customs Due Diligence & Supply Chain Security Checklist-- Transport Operator

• Customs Due Diligence & Supply Chain Security Checklist-- Warehouse

Operator

It should be noted that the above six checklists are the result of the joint effort undertaken

by JC and a number of experts provided by the USAID-funded AMIR Program and

representatives from the private sector. Each checklist pertains to one business activity

area: importer, exporter, transport operator, customs broker, warehouse operator, and

Qualified Industrial Zone manufacturer. The Risk Management Directorate of JC

officially approved the checklists and they are a major part of the GLP criteria. A

company that is interested to become a Golden List member must develop and implement

"customs due diligence and supply chain security" procedures that satisfy the stipulations

of the relevant checklist. Thus, the checklists serve as a benchmark to judge the quality

of a company's written procedures and capacity for self-regulation. Each checklist is a

series of a Yes/No type questions. Each question asks if the company has in-place a

documented procedure to carry out the duties of a certain activity (for example, if the

company has a documented procedure for carrying out background checks on new

employees).

In addition to the aforementioned six checklists, the following three documents are now

available from JC in Arabic and English as well:

• GLP- A Guide for International Trade Supply Chain Companies

• GLP- Criteria for Inclusion of Companies on the Golden List Program

• GLP- Application Form


AMIR Program 16

The first is a guiding document containing background material on the benefits of joining

the program and explanations of the several technical modalities of the program. The

second document contains the official criteria approved by JC, which must be satisfied

before a company could join the program. The third document is a several-page

questionnaire that the company wishing to join the GLP must answer and submit to JC.

Task 3: Identify Jordan Largest Trading Partner Countries

Under the customs-to-customs pillar of the WCO Framework of Standards to Secure and

Facilitate Global Trade JC has the opportunity to seek mutual recognition of its GLP from

other countries. Since this process needs extensive communications with foreign country

customs services/ departments, JC decided to start with Jordan's largest trading-partner

countries. This task aimed at identifying the countries that have the largest trading

volumes (in monetary values) with Jordan.

Trade value figures in Jordanian Dinars between Jordan and other countries during the

years 2003-2004 were compiled from the Jordan Department of Statistics; a governmental

organization responsible for keeping and updating Jordan's national statistics figures,

including trade. The database of the JC validated these figures. Table one shows the

largest countries/ markets, in monetary values, to which Jordan exports; while Table two

shows the largest countries/ markets from which Jordan imports. The tables are self-

explanatory. The United States, Iraq, India, Saudi Arabia and Syria are the largest

markets for Jordan's exports. Saudi Arabia, China, Germany, United States, and Italy are

the largest markets from which Jordan imports. Both tables reveal that Jordan has sizable

trade transactions with several Arab or Middle-Eastern counties including Saudi Arabia,

Iraq, Syria, United Arab Emirates, Algeria, Lebanon, Kuwait, Sudan, Yemen, Libya,

Qatar, Bahrain, Oman, Turkey, Iran and Israel. Also, Jordan has sizable trade volumes

with a number of European countries including Switzerland, Spain, Netherlands, Italy,

Germany, France, United Kingdom, Ukraine, Romania, Belgium and Sweden. Most

notably, the United States is the largest and most promising market for Jordan's exports.

The countries listed in Tables one and two were compared with the WCO list of

"Members who have expressed their intention to implement the WCO Framework of

Standards to Secure and Facilitate Global Trade: situation as of October 30, 2005". With

the exception of few countries (Syria, Thailand, Algeria, Lebanon, Iraq, Palestinian

National Authority, Libya, Pakistan, Oman and Taiwan), all countries listed in Tables one

and two have expressed their intention to implement the WCO Framework of Standards.

This implies that almost all Jordan's larger trading-partner countries are well informed of

the WCO Framework of Standards, and further they have the intention to implement

programs similar to the GLP.


AMIR Program 17

Table 1. Jordan 30 Largest Export Markets During 2003-2004.

Jordan Exports During Year

(JD Millions)

Country

No.

Exports to

(Destination)

2003

2004

1 U.S.A. 468.6 722.2

2 IRAQ 224.0 361.9

3 INDIA 141.0 178.4

4 SAUDI ARABIA 109.4 138.3

5 SYRIA 64.0 94.6

6 U.A. EMIRATES 65.7 77.1

7 ISRAEL 68.5 73.4

8 ETHIOPIA 4.5 51.3

9 ALGERIA 40.6 49.0

10 LEBANON 32.6 41.0

11 KUWAIT 26.6 36.8

12 IRAN 18.9 36.1

13 INDONESIA 19.2 24.5

14 CHINA 25.5 24.3

15 SUDAN 19.0 23.4

16 PALESTINIAN N.A. 16.9 21.0 17 EGYPT 17.1 20.2 18 SWITZERLAND 0.6 19.3 19 YEMEN 15.2 18.3 20 LIBYA 12.6 17.6 21 MALAYSIA 13.6 16.4 22 QATAR 17.5 15.9 23 PAKISTAN 16.1 14.6 24 SPAIN 8.2 12.6 25 BAHRAIN 12.5 12.6 26 JAPAN 9.6 12.2 27 TURKEY 9.3 10.9 28 OMAN 11.2 10.8 29 NETHERLANDS 11.3 10.6 30 ITALY 7.3 9.7

Source: Jordan Department of Statistics and Jordan Customs


AMIR Program 18

Table 2. Jordan 30 Largest Import Markets During 2003-2004.

Jordan Imports During Year

(JD Million)

Country

No.

Imports from

(Source)

2003

2004

1 SAUDI ARABIA 459.4 1,146.6 2 CHINA 322.4 489.3 3 GERMANY 320.2 394.9 4 U.S.A. 276.2 393.9 5 ITALY 153.2 222.2 6 EGYPT 83.6 214.5 7 JAPAN 141.5 189.9 8 SOUTH KOREA 102.0 182.2 9 UKRAINE 66.6 174.5

10 FRANCE 128.4 159.9 11 U.K. 140.3 150.9 12 SYRIA 108.7 147.4 13 TURKEY 98.7 133.8 14 INDONESIA 61.1 123.7 15 ISRAEL 94.9 116.8 16 TAIWAN 97.6 114.4 17 INDIA 60.3 103.2 18 U.A. EMIRATES 102.1 103.1 19 SWITZERLAND 53.2 80.2 20 NETHERLANDS 59.3 74.2 21 MALAYSIA 48.9 68.2 22 SPAIN 45.7 68.1 23 ARGENTINA 89.6 57.3 24 THAILAND 39.9 54.8 25 FINLAND 23.8 54.0 26 AUSTRALIA 50.2 53.1 27 ROMANIA 22.6 50.6 28 BRAZIL 21.2 46.7 29 BELGIUM 41.3 46.0 30 SWEDEN 36.7 45.7

Source: Jordan Department of Statistics and Jordan Customs


AMIR Program 19

Task 4: Identify a Number of Target Countries for a Customs-to-Customs Mutual

Recognition of the GLP under WCO Framework of Standards

JC and the grantee decided to identify 20-30 countries for JC to approach for seeking

customs-to-customs mutual recognitions for the GLP. This task aimed at formally

identifying 20-30 target countries for customs-to-customs mutual recognitions of the GLP

and assisting JC in contacting the identified countries and presenting the GLP to them.

Identifying Target Countries

A committee of senior customs officers was formed by his Excellency the Director

General of JC and entrusted with the task of identifying 20-30 target countries JC would

contact for customs-to-customs mutual recognitions of the GLP under the WCO

Framework of Standards to secure and Facilitate Global Trade. The consultant has served

in an advisory capacity to the committee.

The committee has decided to use the following criteria for selecting target countries:

1. Priority to countries with which Jordan has sizable trade volumes (i.e., from the

list of countries in Tables 1 and 2 above).

2. Priority to countries, which Jordan exports to as compared to countries from

which Jordan imports.

3. Priority to countries that expressed to the WCO their intent to implement the

WCO Framework of Standards to Secure and Facilitate Global Trade.

4. Priority to countries that have already implemented a customs due diligence and/

or supply chain security program similar to the GLP.

5. Priority to countries that have bilateral or multi-lateral trade agreements with

Jordan.

6. Finally consideration to the extent of existing cooperation between JC and the

customs services/ departments in the candidate countries.

Using the lists of countries in Tables 1 and 2 above and the six criteria, the committee

identified 29 target countries for JC to contact. The primary target was the United States

because it is the largest market for Jordan's exports, has a similar program to the GLP (C-

TPAT) and has a bi-lateral free trade agreement with Jordan. In addition, the committee

viewed the extent of cooperation between JC and the US Customs and Border Protection

as “superior.”

The team identified Canada as a target country primarily because it has a similar program

to the GLP (called Partners in Protection). In addition, because of the closeness to the

United States and the free-flow trade between Canada and the United States, potential

does exist for Jordan exports to increase to Canada as they did to the United States.

The team selected United Kingdom, Germany, France, Italy, Spain, Ukraine, Bulgaria,

Poland, Belgium, and Switzerland were identified as targets because of the sizable trade

volumes they have with Jordan and because of the Jordan-EU Free Trade Agreement.

The committee anticipates that Jordan's trade volumes with these countries will escalate

in the coming few years when traders fully utilize the Jordan-EU Free Trade Agreement.

The team identified China, Japan, India, Indonesia, and Pakistan primarily because of the

large trade volumes they have with Jordan.


AMIR Program 20

Arab and Middle-Eastern countries (Yemen, Libya, Egypt, United Arab Emirates,

Lebanon, Algeria, Kuwait, Sudan, Saudi Arabia, Oman, Turkey, and Iran) were identified

because of the large trade volumes they have with Jordan and the extent of cooperation

between JC and the customs services/ departments in these countries.

Contacting Identified Countries

After identifying the target countries, an initial mutual recognition request letter was

prepared and sent to each one of them. His Excellency, the Director General of JC signed

the letter addressed to the Director of Customs Service/ Department in each of the

identified countries (29 countries). The letter included two attachments; a summary sheet

of the GLP and a survey sheet asking few questions to be answered by a target country.

The letter (contained in Appendix B) reference is "Implementation of Customs-to-

Customs Pillar of the World Customs Organization Framework of Standards to Secure

and Facilitate Global Trade." The letter declared that JC, with assistance from the

USAID-Funded AMIR Program of Jordan, has taken wide steps towards implementing

the customs-to-business pillar of the WCO Framework of Standards to Secure and

Facilitate Global Trade via the GLP. In addition, the letter declared that JC intends to

implement the other pillar, customs-to-customs pillar of the WCO Framework of

Standards, starting with Jordan's main trading partner countries.

The GLP summary sheet (see Appendix B) attached with the letter was a brief description

of the GLP and the relationship to the WCO Framework of Standards to Secure and

Facilitate Global Trade. The summary sheet directed the reader to JC website to obtain

more detailed information about the GLP.

The survey sheet (see Appendix B) attached with the letter included important inquiries

about:

• If the contacted Customs Service/Department currently implements a formal

program to qualify Authorized Economic Operators (AEOs) according to the

customs-to-business pillar of the WCO Framework of Standards.

• If the contacted Customs Service/Department is willing to start a customs-to-

customs dialogue with JC for mutually recognizing each-other-country program.

(Applicable if the contacted country has a program in place).

• If the contacted Customs Service/Department intends or plans to implement a

program similar to the GLP in the near future. (Applicable if the contacted

country does not yet have a program in place).

• If the contacted Customs Service/Department is willing to work with JC to

jointly, implement the customs-to-customs pillar of the WCO Framework of

Standards.

• The Customs Service's/Department's status with respect to the implementation of

the WCO Framework of Standards.

Task 5: Identify Jordan Trade Goods Likely to Benefit from a Customs-to-Customs

Mutual Recognition with Other Countries

The aim of this task was to identify the top 30% (minimum) of Jordan trade goods by

tariff classification that would benefit from the customs-to-customs mutual recognition

processes under the WCO Framework of Standards. The objective of identifying the

commodities, as tied to the target countries, intends to identify the commodities that


AMIR Program 21

would be most likely to benefit from a mutual recognition between the two countries'

customs administrations (Jordan and any other country). This information will be

advantageous to identify those industries in both countries that should place a high

emphasis on entering the GLP and the trade partner country's program.

IRC compiled the trade value figures in Jordanian Dinars (along with commodities

descriptions and harmonized tariff classification codes) between Jordan and other

countries during the year 2004 from the Jordan Department of Statistics; a governmental

organization responsible for keeping and updating Jordan's national statistics figures,

including trade. The analysis later validated the figures using the database of JC. Tables

1-20 in Appendix C show commodities descriptions and harmonized tariff classification

codes of goods Jordan exported to its largest 20 export countries/ markets; while Tables

21-40 in the same Appendix show commodities descriptions and harmonized tariff

classification codes of goods Jordan imported from its largest 20 import countries/

markets. The tables are self-explanatory.

Based on Tables 1-20 of Appendix C, Jordan main exported commodities are:

• Apparels, clothing, precious stones and metals.

• Furniture, bedding, mattresses, cushions.

• Pharmaceutical products.

• Animal or vegetable fats and oils.

• Tobacco products.

• Plastics and articles thereof.

• Salt, sulphur, plastering materials, cement.

• Paper and paperboard, paper pulp.

• Fertilizers.

• Boilers, machinery and mechanical appliances.

• Organic and inorganic chemicals.

• Electrical machinery and equipments and parts thereof.

• Aluminum, iron and steel.

• Edible vegetables and fruits and certain roots and tubers.

• Dyeing and coloring materials and paints.

Based on Tables 21-40 of Appendix C, Jordan main imported commodities are:

• Mineral fuels, mineral oils, bituminous substances, waxes.

• Plastics and articles thereof.

• Sugars and sugar confectionary.

• Knitted or crocheted fabrics.

• Electric machinery and equipment.

• Articles of apparel and clothing (not knitted).

• Vehicles and their parts.

• Pharmaceutical products.

• Cereals.

• Optical, photographic, measuring and medical equipment and instruments.

• Iron and steel.

• Boilers, machinery and mechanical appliances.

• Animal or vegetable fats and oils.

• Cotton.


AMIR Program 22

Thus, Jordan industries dealing with the above listed commodities should place a high

emphasis on entering the GLP.

Task 6: Prepare Marketing Materials for the GLP

The aim of this task was to prepare marketing materials for the GLP. The intended

materials aim at spreading awareness about the GLP, and assisting companies interested

to join in how to proceed and what they need to do. Three documents were prepared in

this task. They are:

1. "How to Join the Golden List Program" is a step-by-step guide explaining all

processes to be undertaken by a supply-chain company to join the GLP. The

guide is contained in Appendix D.

2. "How to Implement Customs Due Diligence and Supply Chain Security in Your

Company" is a guide to all supply-chain companies on how to implement customs

due diligence and supply-chain security which are a major part of JC's criteria for

accepting a company on the GLP. The guide is contained in Appendix E.

3. "Golden List Program of Jordan Customs: Questions and Answers" is a brochure

explaining in generic terms what is the GLP is about, program benefits, types of

companies accepted on the program, etc. The brochure is contained in Appendix

F.

Below is a brief description of each document (full documents are contained in

Appendixes D, E and F).

"How to Join the Golden List Program" Guide

This guide is intended to lead companies throughout the whole process of joining the

GLP; from understanding what is the GLP is about, what is required from a company so

that it is accepted on the program, what is the procedure to follow in joining the program,

until ultimately become a GLP member. The guide contains seven main sections and two

Appendixes.

The first section explains the aim of the GLP, the benefits the companies gain joining the

program and the types of supply-chain companies targeted by the program.

The second section explains the requirements (criteria) imposed on companies, which

must be satisfied as a priory for acceptance on the GLP.

The third section is a step-by-step procedure for a company to follow in applying to join

the program until completing all requirements, and ultimately become a GLP member.

The section explains the steps JC undertakes before, during, and after the actual audit

process of a company by a designated team of customs auditors (audit team).

The forth section is devoted to “Voluntary Disclosure” which encourages companies to

undertake an internal audit of all its customs transactions before the actual audit by JC

takes place. Based on the results of its own audit, a company has the opportunity to

disclose voluntarily any errors, omissions, or violations to JC. The JC treats voluntary

disclosure favorably to the best of their ability under the current law. The Jordan

Customs has drafted new legislation to permit fully voluntary disclosure. This practice is

an invaluable mechanism for companies to avoid penalties.


AMIR Program 23

After auditing a company by JC, the audit results may reveal the need for the company to

develop and implement a Compliance Improvement Plan. Section five contains

information for companies on how to develop an acceptable Compliance Improvement

Plan.

The audit processes of a company by JC require sampling of customs transactions

previously completed by the company. Section six explains the principles of sampling

and the criteria used by JC in selecting the appropriate sample.

Section seven provides companies with information about the Analytical Study on a

company which JC undertakes before actual audit processes take place.

Appendix I contains the Application Form for the GLP, while Appendix II contains the

"GLP Criteria for Inclusion of Companies on the Golden List."

"How to Implement Customs Due Diligence and Supply Chain Security in Your

Company" Guide

According to the GLP requirements, supply-chain companies that are exercising customs

due diligence, have supply chain security procedures in place, have a good compliance

history with JC and compliant with Jordan customs law and regulations may qualify to

become a Golden List member.

As part of the criteria for accepting a company on the GLP, the company must have well-

documented “customs due diligence and supply chain security” procedures, and these

procedures have been already implemented and strictly followed by the company. This

guide assists all types of supply-chain companies (importers, exporters, customs clearing

agents, QIZ companies, transporters and transport operators, and warehouse owners and

operators) in developing and implementing their own "customs due diligence and supply

chain security" procedures.

The guide contains three main sections; the first section is a brief background on the

GLP, the second section describes how a company could implement its own customs due

diligence procedures, and the third section describes how a company could implement its

own supply-chain security procedures.

"Golden List Program of Jordan Customs: Questions and Answers" Brochure

This brochure intends to spread awareness about the GLP using a question-and-answer

format. The brochure answers the following 12 questions:

1. What is the Golden List Program (GLP)?

2. What is the Mission of the Golden List Program?

3. What are Objectives of the Golden List Program?

4. What Types of Organizations Can Apply to Join the GLP?

5. Why Organizations Need to Join the Golden List Program?

6. What Distinguishes the GLP from the Current Customs Practices?

7. Are there Opportunities due to joining the Golden List Program?

8. What are the Benefits to Your Organization from Joining the GLP?

9. Who is Involved in Implementing the GLP?


AMIR Program 24

10. How Can an Organization Join the GLP?

11. Will the Required Information our Organization Provides to JC in the Process of

Joining the GLP be Kept Confidential?

12. Where Can my Organization Obtain More Information on the GLP?

Task 7: Develop a Multi-year Marketing Strategy for the GLP

The GLP is a national program of Jordan and expected to influence the trade sector, and

thus, the whole economy. However, it may take few years for the program to gain the

international recognition it deserves. Of course, this recognition will not come true

without a national effort encompassing both the private sector and the government. More

importantly, a marketing strategy needs to be in place so that each party, whether a

governmental or a private sector actor, understands its role and responsibility. This task

aims at developing an appropriate marketing strategy for the GLP. The marketing

strategy (contained in Appendix G) included three phases as described below.

Phase I: Situational Analysis

The first phase discusses the following elements:

• Market Demographics

• Market Needs

• Market Trends and Growth

• SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats of the GLP)

• Critical Issues Keys to Success

Phase II: Marketing Strategy Formulation

The second phase discusses the following elements:

• Mission Statement

• Market Segments (Targeted Enterprises)

• Goals, Sub-goals and Objectives

• Marketing Strategy Components including Service Strategy (GLP benefits and

branding strategy), Communications Strategy (communications tools) and

Budgeting Strategy.

Phase III: Marketing Strategy Implementation

The third phase discusses the following elements:

• Marketing Organization

• Partner Organizations Roles (roles of JC, JEDCO, JIB, JEA, International Aid

Agencies and Jordan Embassies Abroad)

• First Year Marketing Plan

• Control and Performance Assessment including

• GLP Scenarios


AMIR Program 25

APPENDIX A

(English Translation)

MEMORANDUM OF UNDERSTANDING BETWEEN JORDAN

CUSTOMS, JORDAN ENTERPRISE DEVELOPMENT

CORPORATION, JORDAN INVESTMENT BOARD AND JORDAN

EXPORTERS ASSOCIATION

PARTIES

The parties to this Memorandum of Understanding (MoU) are Jordan Customs ("JC"),

Jordan Enterprise Development Corporation ("JEDCO"), Jordan Investment Board

("JIB") and Jordan Exporters Association ("JEA").

PURPOSE

The purpose of this MoU is to accomplish the national benefits of securing and

facilitating Jordan's trade with other countries through marketing the Golden List

Program ("GLP") of Jordan Customs nationally and internationally.

RESPONSIBILITIES

All Parties

A. All parties to this MoU agree that the GLP of JC offers a great opportunity for the

economy and people of Jordan through accomplishing the following strategic

benefits:

1. Jordan's Economy. The GLP enhances the competitiveness of the trading sector

of Jordan locally and internationally and consequently improves Jordan's

economy.

2. Jordanian Enterprises. The GLP offers Jordanian enterprises a great opportunity

to:

• expand current markets shares and exploit new markets

• increase profits and return on investment

• expedite business transactions and reduce operating costs

• apply the sate-of-the-art best practices

• gain a unique management experience

3. Jordan Government. The GLP protects the income of the Treasury via optimal

allocation of JC and other Government Organizations' resources.

4. Jordan Security. The GLP enhances borders security, protects cargos and people,

and prevents terrorist acts.

5. International Best Practices. The GLP makes Jordan a pioneer country with

respect to compliance with internationally recognized best practices (such as the

World Customs Organization Framework of Standards to Secure and Facilitate

Global Trade).

6. International Aid Agencies. The GLP demonstrates the success of international

aid agencies in Jordan.

7. Jordan People. Jordan people ultimately will reap the economic as well as other



AMIR Program 26

B. All parties to this MoU agree to form a joint committee in which a senior officer

represents each party to this MoU. The committee will plan and undertake all

necessary steps to:

1. Market the GLP nationally with the ultimate goal of increasing the membership of

the GLP.

2. Market the GLP internationally with the ultimate goal of securing and facilitating

Jordan's trade with other countries.

3. Implement the marketing strategy of the GLP and update the strategy from time to

time as deemed necessary.

Jordan Customs (JC)

JC agrees:

A. To maintain and update all technical materials pertaining to the GLP.

B. To communicate the benefits of the GLP to all organizations transacting with JC.

C. To undertake, within a suitable time frame, audit on any company that requests

inclusion on the GLP.

D. To provide technical advice and guidance to companies, and assist them

throughout the whole process of becoming a GLP member.

E. To supply all required technical materials that may be requested by the other

parties to this MoU.

F. To supply all required technical materials that may be requested by government

and non-government organizations inside and outside Jordan.

G. To make a timely update to the list of GLP members and make the list available

on its website.

H. To seek mutual recognition for the GLP from other countries, especially the main

trading partners of Jordan.


JEDCO agrees:

A. To act as a coordinator between JC and all other parties to this MoU.

B. To act as a coordinator between all parties to this MoU and Jordan Embassies

abroad.

C. To communicate the benefits of the GLP to all enterprises transacting with

JEDCO.

D. To spread awareness about the GLP during national and international events

JEDCO holds or participates-in with JC attending such events.

E. To use the GLP as a tool in developing and enhancing the competitiveness of

Jordanian enterprises; especially enterprises intending to exploit new markets.

F. To use the GLP status as a marketing advantage for Jordanian enterprises.

G. To participate in the implementation of the marketing strategy of the GLP and

according to the decisions to be made by the joint committee with the other parties

to this MoU.

H. In coordination with the other parties to this MoU, to seek funding for the


organizations, including international donor organizations and agencies.


AMIR Program 27


JIB agrees:

A. To communicate the benefits of the GLP to all enterprises transacting with JIB,


B. To spread awareness about the GLP in the countries where JIB has presence or

intends to have presence.

C. To spread awareness about the GLP during national and international events JIB

holds or participates-in with JC attending such events.

D. To use the GLP as a tool, among other tools, in marketing Jordan as a "secure


E. To use the GLP status as a marketing advantage for Jordanian enterprises;

especially those enterprises seeking international alliance with foreign investors

and counterparties.

F. To use the GLP as a marketing tool to attract foreign enterprises to operate in

Jordan.

G. To participate in the implementation of the marketing strategy of the GLP and


to this MoU.

H. In coordination with the other parties to this MoU, to seek funding for the




JEA agrees:

A. To communicate the benefits of the GLP to all enterprises transacting with JEA,

including all exporters currently listed on JEA's database.

B. To spread awareness about the GLP in the foreign countries JEA visits from time

to time to promote Jordan exports.

C. To spread awareness about the GLP during the trade shows, conferences, etc.,

JEA holds or participates-in inside and outside Jordan.

D. To use the GLP as a tool in marketing Jordan exporters as "secure exporters".

E. To use the GLP status as a marketing advantage for Jordanian exporters to exploit

new markets.

F. To participate in the implementation of the marketing strategy of the GLP and


to this MoU.

G. In coordination with the other parties to this MoU, to seek funding for the



DATE EFFECTIVE

The terms of this MoU will become effective upon signature of the parties. They will

remain in effect until either modified or terminated as described in this MoU.

MODIFICATION

This MoU may be modified upon the mutual written consent of the parties.

TERMINATION

Each party to this MoU may revoke this MoU upon 30 days written notice.


AMIR Program 28

LANGUAGE

If this MoU is signed in any language other than Arabic, then any misinterpretation of any

of its terms shall be resolved by reference to the Arabic version.

SEVERABILITY

Nothing in this MoU is intended to conflict with the current laws, regulations, or

directives of the Hashemite Kingdom of Jordan. If a term of this MoU is inconsistent

with such authority, then that term shall be invalid, but the remaining terms and

conditions of this MoU shall remain in full force and effect.

CONTACT INFORMATION

Contact for Jordan Customs:

Director General

Customs Department

P.O. Box 90

Amman, Jordan

Tel: 4623186/ 88

Fax: 4647791

Contact for Jordan Enterprise Development Corporation:

Chief Executive Officer

Jordan Enterprise Development Corporation

P.O. Box 7704

Amman 11118 Jordan

Tel: 5603507

Fax: 5684568

Contact for Jordan Investment Board:

Chief Executive Officer

Jordan Investment Board

P.O. Box 893

Amman 11821 Jordan

Tel: 5608400/ 15

Fax: 5608416

Contact for Jordan Exporters Association:

Managing Director

Jordan Exporters Association

P.O. Box 830432

Amman 11183 Jordan

Tel: 5685603/ 04

Fax: 5685605


AMIR Program 29

The undersigned approve the terms and conditions of this MoU.

Signature _________________________ Date: __________________

Alaa A. Al-Batayneh, Director General

Jordan Customs

Signature _________________________ Date: __________________

Wael Al-Akayleh, Chief Executive Officer

Jordan Enterprise Development Corporation

Signature _________________________ Date: __________________

Maen Nsour, Chief Executive Officer

Jordan Investment Board

Signature _________________________ Date: __________________

Halim Abu Rahmeh, Managing Director

Jordan Exporters Association


AMIR Program 30

APPENDIX B

Mutual Recognition Request Letter (Letter Sent by JC to

Customs Services/ Departments of 29 Foreign Countries)

Date ………..

His Excellency Mr. …………., Director General

Name of Customs Service/ Department

Address of Customs Service/ Department

Re: Implementation of Customs-to-Customs Pillar of the World Customs Organization

Framework of Standards to Secure and Facilitate Global Trade

Dear you're Excellency,

We are pleased to inform you that Jordan Customs (JC), with assistance from the USAID-

Funded AMIR Program of Jordan, has taken wide steps towards implementing the WCO

Framework of Standards to Secure and Facilitate Global Trade, which came into effect in

June, 2005. Most notably, JC in partnership with the private sector of Jordan has

implemented a program, called the Golden List Program (GLP), to qualify Authorized

Economic Operators (AEOs) according to the customs-to-business pillar of the WCO

Framework of Standards. A summary sheet of the main features of the GLP is attached,

and more technical information about the program can be obtained from our website

(www.customs.gov.jo).

In the mean time, JC intends to implement the other pillar, customs-to-customs pillar, of

the WCO Framework of Standards, starting with Jordan's main trading partner countries.

JC will be seeking mutual recognition of its GLP as part of implementing the customs-to-

customs pillar. To assist us in planning our implementation efforts with respect to the

customs-to-customs pillar of the WCO Framework of Standards, your Customs Service/

Department answers to the attached survey would be highly appreciated.

Best Regards,

Eng. Ala'a Batayneh

Director General

Jordan Customs

Attachments:

- Summary Sheet

- Survey


AMIR Program 31

Letter Attachment 1: Summary Sheet

Golden List Program of Jordan Customs

A Customs Due Diligence and Supply Chain Security Program

During the second half of 2004, Jordan Customs (JC) has initiated a voluntary, self-

compliance program called the Golden List Program (GLP). The program targets Jordan

supply chain companies including importers, exporters, transporters and transport





with JC and compliant with Jordan customs and non-customs laws and regulations may

qualify to become a GLP member. In summary, the GLP has the following

characteristics:

1. The GLP is a customs-business partnership aims at enhancing customs due



with other countries. The program was developed by JC with assistance from the

United States Agency for International Development (USAID) through the

Achievement of Market-Friendly Initiatives and Results Program of Jordan

(AMIR-Program).

2. The program sets minimum customs due diligence and supply-chain security

criteria that must be met by a company desiring to become a GLP member. An

audit team of customs officers undertakes extensive audit processes, including

customs-transactions and supply-chain security audits, on the applicant company

to verify its compliance with the program criteria.




4. The security side of the GLP has benefited from international organizations and

foreign countries codes or recommendations, including:

- The International Shippers and Freight Forwarders Security Code—Draft Rev.

4 by United Nations Center for Trade Facilitation and Electronic Business

(UN/CEFACT).

- “High Level Guidelines for Co-operative Arrangements between WCO

Members and the Private Sector” to increase supply chain security, as adopted

by the WCO in its general assembly in June 2003.

- United States C-TPAT guidelines on supply chain security.

- International Ship and Port Facility Security Code (ISPS Code) by the


- BASC (Business Anti-Smuggling Coalition) Standards by the World BASC

Organization.

5. The GLP is a major part of JC efforts toward implementing the World Customs

Organization (WCO) Framework of Standards to Secure and Facilitate Global

Trade which came into effect in June, 2005. Jordan has already signed the letter

of intent to implement the WCO Framework.

6. JC intends to seek customs-to-customs mutual recognition of its GLP with Jordan

trade partner countries.


AMIR Program 32

Letter Attachment 2: Survey

Jordan Customs (JC) intends to implement the customs-to-customs pillar of World

Customs Organization (WCO) Framework of Standards to Secure and Facilitate Global

Trade, which came into effect in June 2005. JC, in partnership with the private sector of

Jordan, has developed and implemented a program, called the Golden List Program

(GLP), to qualify Authorized Economic Operators (AEOs) according to the customs-to-

business pillar of the WCO Framework of Standards. The GLP is a major part of JC

efforts toward implementing the WCO Framework of Standards; thus, JC intends to seek

a mutual recognition of this program with Jordan trade partner countries. To assist us in

planning our implementation efforts with respect to the customs-to-customs pillar of the

WCO Framework of Standards, your Customs Service/ Department answers to the

following questions would be highly appreciated.

1. Does your Customs Service/ Department currently implement a formal program to

qualify Authorized Economic Operators (AEOs) according to the customs-to-

business pillar of the WCO Framework of Standards to Secure and Facilitate

Global Trade? (If "yes", please tell us about your program, send us relevant

information or direct us to where we can reach relevant information).

2. If your answer to the first question is "yes", are you willing to start a customs-to-

customs dialogue for the purpose of mutually recognizing each-other-country

program (i.e., your Customs Service/ Department to recognize the Golden List

Program of Jordan, and Jordan Customs to recognize your program)?

3. If your answer to the first questions is "no", does your Customs Service/

Department intend or plan to implement such a program in the near future?

(Please provide details about your future plans and expected dates for

implementation).

4. As soon as your Customs Service/ Department starts implementing the WCO

Framework of Standards to Secure and Facilitate Global Trade, are you willing to

work with Jordan Customs to jointly implement the customs-to-customs pillar of

the WCO Framework?

5. What is your Customs Service's/ Department's current status with respect to the

implementation of the WCO Framework of Standards to Secure and Facilitate

Global Trade in general? (Please tell us about any steps you have taken or intend

to take with respect to the WCO Framework, any communications or bi-lateral

agreements made with other Customs Services/ Departments, etc.).

6. What do you think of Jordan Custom’s Golden List Program? Your feedback is

important to us. (Golden List Program details can be reached via our website

www.customs.gov.jo).


AMIR Program 33

APPENDIX C

Jordan Main Traded Commodities by Tariff Classification

Table 1. Jordan Main Types of Commodities Exported to the USA in 2004.

HS

Code

Commodity Description

Exports

Value (JD)

61 Articles of apparel and clothing accessories, knitted or

crocheted

394,430,014

62 Articles of apparel and clothing accessories, not knitted or

crocheted

257,292,746

71

Natural or cultured pearls, precious or semi-precious stones,

precious metals, metals clad with precious metal and articles

thereof; imitation jewelry; coin

61,783,652

84

Nuclear reactors, boilers, machinery and mechanical

appliances; parts thereof

2,246,061

94

Furniture, bedding, mattresses, mattress supports, cushions

and similar stuffed furnishing, lamps and lighting fittings, not

elsewhere specified or included; illuminated signs,

illuminated name-plates and the like; prefabricated buildings

1,511,176

30 Pharmaceutical products

1,057,710

34

Soap, organic surface-active agents washing preparations;

lubricating preparations, artificial waxes, prepared waxes,

polishing or scouring preparations, candles and similar

articles, modeling pastes, "dental waxes" and dental

preparations with a basis of plaster

431,755

21 Miscellaneous edible preparations

398,876

49 Printed books, newspapers, pictures and other products of the

printing industry; manuscripts, typescripts and plans

374,766

33 Essential oils and resinoids; perfumery, cosmetic or toilet

preparations

267,125


AMIR Program 34

Table 2. Jordan Main Types of Commodities Exported to Iraq in 2004.

HS

Code Commodity Description

Exports

Value (JD)

15

Animal or vegetable fats and oil and their cleavage products;

prepared edible fats; animal or vegetable waxes

103,790,430

34






37,856,239

24 Tobacco and manufactured tobacco substitutes

28,727,740

85

Electrical machinery and equipment and parts thereof; sound

recorders and reproducers, television image and sound

recorders and reproducers and parts and accessories of such

articles

24,024,444

39 Plastics and articles thereof

18,435,401

27

Mineral fuels, mineral oils and products of their distillation

bituminous substances; mineral waxes

14,887,881


12,769,172

25

Salt; sulfur; earths and stone; plastering materials, lime and

cement

12,644,185

23

Residues and waste from the food industries; prepared animal

fodder

10,204,156

22 Beverages, spirits and vinegar

9,939,774

07 Edible vegetables and certain roots and tubers

9,102,917

73 Articles of iron or steel

8,271,216

94


and similar stuffed furnishing, lamps and lighting fittings, not

elsewhere specified or included; illuminated signs,

illuminated name-plates and the like; prefabricated buildings

7,947,404

76 Aluminum and articles thereof

7,746,642


AMIR Program 35

Table 3. Jordan Main Types of Commodities Exported to India in 2004.

HS


Exports

Value (JD)

25

Salt; sulfur; earths and stone; plastering materials, lime and

cement

66,397,407

31 Fertilizers

53,129,990

28

Inorganic chemicals; organic or inorganic compounds of

precious metals, of rare-earth metals, of radioactive elements

or of isotopes

50,781,071

74 Copper and articles thereof

2,619,828


2,545,365

78 Lead and articles thereof

992,153

72 Iron and steel

850,240

79 Zinc and articles thereof

214,780

68

Articles of stone, plaster, cement, asbestos, mica or similar

materials

209,191


177,291

27

Mineral fuels, mineral oils and products of their distillation

bituminous substances; mineral waxes

126,416

47

Pulp of wood or of other fibrous cellulose material; waste and

scrap of paper or paperboard

101,092

41 Raw hides and skins (other than fur skins) and leather

96,578


42,934

51

Wool, fine or coarse animal hair; horsehair yarn and woven

fabric

35,076

15

Animal or vegetable fats and oil and their cleavage products;

prepared edible fats; animal or vegetable waxes

31,051


AMIR Program 36

Table 4. Jordan Main Types of Commodities Exported to Saudi Arabia in 2004.

HS


Exports

Value (JD)


49,484,084

48

Paper and paperboard; articles of paper pulp, of paper or

of paper board

11,960,834

31 Fertilizers

11,928,067

01 Live animals

8,121,130

28


precious metals, of rare-earth metals, of radioactive

elements or of isotopes

6,727,653

94


and similar stuffed furnishing, lamps and lighting fittings,

not elsewhere specified or included; illuminated signs,

illuminated name-plates and the like; prefabricated

buildings

5,704,049

72 Iron and steel

5,243,071

84



4,457,550

68

Articles of stone, plaster, cement, asbestos, mica or similar

materials

3,912,916

38 Miscellaneous chemical products

3,179,655


3,066,503


2,776,174

32

Tanning or dyeing extracts; tannins and their derivatives;

dyes, pigments and other coloring matter; paints and

varnishes; putty and other mastics; inks.

2,501,056


2,057,200


AMIR Program 37

Table 5. Jordan Main Types of Commodities Exported to Syria in 2004.

HS


Exports

Value (JD)


39,631,302

84



12,585,809

25

Salt; sulfur; earths and stone; plastering materials, lime

and cement

7,020,599


6,439,416


5,083,646

85

Electrical machinery and equipment and parts thereof;

sound recorders and reproducers, television image and

sound recorders and reproducers and parts and accessories

of such articles

4,189,228

48


of paper board

1,909,040

08 Edible fruit and nuts; peel of citrus fruit or melons

1,533,967

32




1,463,783


1,256,395

28




1,246,481

55 Man-made staple fibers

1,139,271


1,027,632

31 Fertilizers

1,014,190


AMIR Program 38

Table 6. Jordan Main Types of Commodities Exported to the United Arab Emirates

in 2004.

HS


Exports

Value (JD)


30,452,153


7,401,323

84



6,048,199

28




3,839,155

71

Natural or cultured pearls, precious or semi-precious

stones, precious metals, metals clad with precious metal

and articles thereof; imitation jewelry; coin

3,797,123

32




2,097,168

61

Articles of apparel and clothing accessories, knitted or

crocheted

2,078,751

62

Articles of apparel and clothing accessories, not knitted or

crocheted

1,889,475


1,650,122

48


of paper board

1,525,839

31 Fertilizers

1,494,050

56

Wadding, felt and non-wovens, special yarns; twine,

cordage, ropes and cables and articles thereof

1,353,350


1,230,021


AMIR Program 39

Table 7. Jordan Main Types of Commodities Exported to Israel in 2004.

HS


Exports

Value (JD)

61


crocheted

27,748,745

71




21,802,528

62


crocheted

11,635,422


2,312,639

84



1,383,721


1,132,192

85




of such articles

1,051,730

15

Animal or vegetable fats and oil and their cleavage

products; prepared edible fats; animal or vegetable waxes

1,045,500

25


and cement

961,128


687,928

68

Articles of stone, plaster, cement, asbestos, mica or

similar materials

495,270

34






378,750


AMIR Program 40

Table 8. Jordan Main Types of Commodities Exported to Ethiopia in 2004.

HS


Exports

Value (JD)

31 Fertilizers

50,261,312

84



409,802

35

Albuminoidal substances; modified starches; glues;

enzymes.

160,036


145,362

28




94,262

29 Organic chemicals

71,161


32,100

68


similar materials

28,272

34






15,591

Table 9. Jordan Main Types of Commodities Exported to Algeria in 2004.

HS


Exports

Value (JD)


33,698,788


6,436,509


2,617,328

62


crocheted

1,552,972


AMIR Program 41


1,432,540

04

Dairy produce; birds' eggs; natural honey; edible products

of animal origin, not elsewhere specified or included

778,582

31 Fertilizers

665,318


512,652


382,254

19

Preparations of cereals, flour starch; or milk, pastry cooks,

products

205,342

34






175,948

85




of such articles

100,317

56



87,668

Table 10. Jordan Main Types of Commodities Exported to Lebanon in 2004.

HS


Exports

Value (JD)


8,162,820


6,334,827

48


of paper board

3,236,400

31 Fertilizers

2,601,697

15



2,123,463


AMIR Program 42


1,899,480


1,777,826

72 Iron and steel

1,643,859

85




of such articles

1,480,700


1,343,218

28




1,331,272

19 Preparations of cereals, flour starch; or milk, pastry cooks,

products 1,125,185


1,063,873

84



664,338

16

Preparations of meat, of fish, or of crustaceans, mollusks

or other aquatic invertebrates

628,470

Table 11. Jordan Main Types of Commodities Exported to Kuwait in 2004.

HS


Exports

Value (JD)


12,998,285

87

Vehicles other than railway or tramway rolling-stock, and

parts and accessories thereof

11,823,346


1,861,579

84



1,141,049


1,039,338

01 Live animals 1,022,690


AMIR Program 43

85




of such articles

788,243

48


of paper board

712,059

16



631,678

68


similar materials

589,218

04

Dairy produce; birds' eggs; natural honey; edible products


541,905


381,191

20

Preparations of vegetables, fruit, nuts or other parts of

plants

330,035


300,814

Table 12. Jordan Main Types of Commodities Exported to Iran in 2004.

HS


Exports

Value (JD)

31 Fertilizers

26,886,959

25

Salt; sulphur; earths and stone; plastering materials, lime

and cement

6,145,072

28




1,664,389

56



765,406


301,557

73 Articles of iron or steel 164,402


AMIR Program 44

16



52,022


35,450


23,838

12

Oil seeds and oleaginous fruits miscellaneous grains,

seeds and fruit; industrial or medical plants; straw and

fodder

20,292

Table 13. Jordan Main Types of Commodities Exported to Indonesia in 2004.

HS


Exports

Value (JD)

31 Fertilizers

16,147,551

25


and cement

8,060,419

78 Lead and articles thereof

215,665

47

Pulp of wood or of other fibrous cellulose material; waste

and scrap of paper or paperboard

24,396

33

Essential oils and resinoids; perfumery, cosmetic or toilet

preparations

7,941

94

Furniture, bedding, mattresses, mattress supports,

cushions and similar stuffed furnishing, lamps and

lighting fittings, not elsewhere specified or included;

illuminated signs, illuminated name-plates and the like;

prefabricated buildings

6,009

72 Iron and steel

5,707


4,871


AMIR Program 45

Table 14. Jordan Main Types of Commodities Exported to China in 2004.

HS


Exports

Value (JD)

31 Fertilizers

23,050,414

41 Raw hides and skins (other than fur skins) and leather

588,465

85




of such articles

223,200

28




122,416


116,023

42

Articles of leather; saddlery and harness; travel goods,

handbags, and similar containers; articles of animal gut

(other than silk-worm gut)

80,783

25


and cement

31,188

Table 15. Jordan Main Types of Commodities Exported to Sudan in 2004.

HS


Exports

Value (JD)


10,791,903

87



2,464,626

28




2,259,817

31 Fertilizers

2,032,248

48


of paper board

1,211,402

32 Tanning or dyeing extracts; tannins and their derivatives; 1,098,972


AMIR Program 46




547,507

84



536,354


526,087


289,230


271,764

62


crocheted

174,040

56



167,077

Table 16. Jordan Main Types of Commodities Exported to the Palestinian National

Authority in 2004.

HS


Exports

Value (JD)


4,473,853

25


and cement

3,217,934

32




3,032,437

84



1,031,349

48


of paper board

886,457

94






840,688


AMIR Program 47


799,355


723,911

15



642,036

19


products

612,887

72 Iron and steel

536,878

18 Cocoa and cocoa preparations

528,489


AMIR Program 48

Table 17. Jordan Main Types of Commodities Exported to Egypt in 2004.

HS


Exports

Value (JD)

31 Fertilizers

3,300,729

28




2,163,572

56



2,009,424

48


of paper board

1,891,486


1,625,966


1,434,561

85




of such articles

1,399,674


1,136,775

34






927,245

32




851,395

84



701,053


595,488


AMIR Program 49

Table 18. Jordan Main Types of Commodities Exported to Switzerland in 2004.

HS


Exports

Value (JD)

71




18,330,935

15



742,022

26 Ores, slag and ash

160,501

25


and cement

35,698

61


crocheted

33,677


16,155

33


preparations

9,039

70 Glass and glassware

3,747

Table 19. Jordan Main Types of Commodities Exported to Yemen in 2004.

HS


Exports

Value (JD)


6,514,710

48


of paper board

3,494,186

19


products

1,139,727


957,891


920,851

85 Electrical machinery and equipment and parts thereof;

sound recorders and reproducers, television image and 795,036


AMIR Program 50


of such articles

32




787,141

28




718,800

64 Footwear, gaiters and the like; parts of such articles

372,677

56



327,511

34




articles, modeling pastes, “dental waxes” and dental


308,419

31 Fertilizers

269,788


AMIR Program 51

Table 20. Jordan Main Types of Commodities Exported to Libya in 2004.

HS


Exports

Value (JD)


5,972,840

94






1,837,208

62


crocheted

1,778,110

57 Carpets and other textile floor coverings

1,389,931


1,328,824

56



1,133,677

84



859,702

85




of such articles

761,782


681,169


257,960

20


plants

230,159

87



186,329


AMIR Program 52

Table 21. Jordan Main Types of Commodities Imported from Saudi Arabia in 2004.

HS


Imports

Value (JD)

27

Mineral fuels, mineral oils and products of their

distillation bituminous substances; mineral waxes

934,827,156


73,675,045

17 Sugars and sugar confectionery

18,233,479


14,507,458

48


of paper board

13,754,086

72 Iron and steel

10,601,625


8,207,023


7,129,499

33


preparations

5,748,488


5,635,401

04

Dairy produce; birds’ eggs; natural honey; edible products


5,396,102

32




4,530,823

28




3,878,972

85




of such articles

3,304,596


AMIR Program 53

Table 22. Jordan Main Types of Commodities Imported from China in 2004.

HS


Imports

Value (JD)

60 Knitted or crocheted fabrics

133,019,076

84



55,563,765

85




of such articles

38,269,109

62


crocheted

27,845,913

54 Man-made filaments

22,569,019

52 Cotton

21,994,984


15,966,391

61


crocheted

14,230,056


13,422,541


12,817,290

94






12,238,179

64 Footwear, gaiters and the like; parts of such articles

11,483,897

69 Ceramic products

8,955,512


AMIR Program 54

Table 23. Jordan Main Types of Commodities Imported from Germany in 2004.

HS


Imports

Value (JD)

87



145,608,832

84



62,171,175

85




of such articles

32,714,544


22,986,492

99 Unspecified

18,322,753

90

Optical, photographic, cinematographic, measuring,

checking precision, medical or surgical instruments and

apparatus; parts and accessories thereof

13,696,426

48


of paper board

11,151,517


8,176,454

10 Cereals

6,625,605


5,918,087


5,244,381

88 Aircraft, spacecraft, and parts thereof

4,371,196


4,174,638

72 Iron and steel

3,439,518


AMIR Program 55

Table 24. Jordan Main Types of Commodities Imported from the USA in 2004.

HS


Imports

Value (JD)

10 Cereals

98,999,754

84



43,882,091

85




of such articles

39,971,278


35,769,758

99 Unspecified

35,717,285

90




16,978,190

87



15,553,602

15



10,684,462


9,903,920

29

Organic chemicals

8,182,032

47

Pulp of wood or of other fibrous cellulose material; waste


8,114,785

94

Furniture, bedding, mattresses, mattress and lighting

fittings, not elsewhere specified or included; illuminated

signs, illuminated name-plates and the like; prefabricated

buildings

6,690,571


AMIR Program 56

Table 25. Jordan Main Types of Commodities Imported from Italy in 2004.

HS


Imports

Value (JD)

71




67,590,309

84



44,300,920

85




of such articles

10,240,867

87



10,228,432


8,930,195


7,544,060


7,536,156

90




5,870,075

99 Unspecified

4,233,045


4,091,135

94






3,881,133

25


and cement

3,297,739


AMIR Program 57

Table 26. Jordan Main Types of Commodities Imported from Egypt in 2004.

HS


Imports

Value (JD)

27



100,017,530

72 Iron and steel

14,418,061

10 Cereals

11,460,419


7,600,014


7,165,051

69 Ceramic products

6,498,812

84



4,981,144

48


of paper board

4,413,890

04



4,286,339

34




articles, modeling pastes, “dental waxes” and dental


3,747,435


3,606,514


3,175,042

20


plants

2,935,580


AMIR Program 58

Table 27. Jordan Main Types of Commodities Imported from Japan in 2004.

HS


Imports

Value (JD)

87



94,286,339

84



36,577,962

85




of such articles

12,661,728

90




8,912,635

40 Rubber and articles thereof

8,865,203

99 Unspecified

6,351,875


4,373,809


4,042,970


2,332,492


2,123,704


1,908,140

37 Photographic or cinematographic goods

1,792,877

96 Miscellaneous manufactured articles

961,717


AMIR Program 59

Table 28. Jordan Main Types of Commodities Imported from South Korea in 2004.

HS


Imports

Value (JD)

87



85,225,217

85




of such articles

37,103,370

84



20,974,463


8,886,791


4,959,861

99 Unspecified

4,821,472


4,320,208


4,280,772


2,377,526


1,700,907


1,470,005

90




1,106,954


519,175

72 Iron and steel

506,031


505,538


AMIR Program 60

Table 29. Jordan Main Types of Commodities Imported from Ukraine in 2004.

HS


Imports

Value (JD)

72 Iron and steel

78,004,227

10 Cereals

43,741,050


40,615,317

15



5,540,642

27



4,624,810

01 Live animals

472,587

44 Wood and articles of wood; wood charcoal

387,522

99 Unspecified

226,758

12



fodder

216,063

85




of such articles

201,420

Table 30. Jordan Main Types of Commodities Imported from France in 2004.

HS


Imports

Value (JD)


50,677,832

85




of such articles

17,881,018

87



13,630,384


AMIR Program 61


12,560,593

84



8,593,581

48


of paper board

5,098,337

19


products

3,856,038

33


preparations

3,668,698


3,446,515


3,364,378


3,297,724

04



2,908,789


2,771,857

72 Iron and steel

2,652,263

Table 31. Jordan Main Types of Commodities Imported from the UK in 2004.

HS


Imports

Value (JD)

84



24,372,885

85




of such articles

23,248,573


19,309,655

99 Unspecified

12,115,162


AMIR Program 62

87



8,707,886

90




5,879,593


5,620,638

32




4,644,410

51

Wool, fine or coarse animal hair; horsehair yarn and

woven fabric

3,678,706


3,644,056


3,432,304

49

Printed books, newspapers, pictures and other products of

the printing industry; manuscripts, typescripts and plans

3,385,490


2,352,210

Table 32. Jordan Main Types of Commodities Imported from Syria in 2004.

HS


Imports

Value (JD)

10 Cereals

30,461,174


13,201,621

72 Iron and steel

9,572,767


8,642,907


7,572,442

61


crocheted

7,059,819


6,447,818


AMIR Program 63

01 Live animals

6,275,341

27



5,887,357

62


crocheted

4,891,096

58

Special woven fabrics; tufted textile fabrics; lace;

tapestries; trimmings; embroidery

3,735,764

84



3,253,169


3,014,763


2,616,889

52 Cotton

2,596,930

Table 33. Jordan Main Types of Commodities Imported from Turkey in 2004.

HS


Imports

Value (JD)

72 Iron and steel

14,988,407


10,264,490

84



9,919,713


8,961,058

85




of such articles

8,677,773


6,781,634

87 Vehicles other than railway or tramway rolling-stock, and 6,526,183


AMIR Program 64


27



4,922,134


4,757,058

25


and cement

4,525,019


4,017,363

62


crocheted

3,829,447

48


of paper board

3,033,927


2,875,908

Table 34. Jordan Main Types of Commodities Imported from Indonesia in 2004.

HS


Imports

Value (JD)

15



75,371,336

44 Wood and articles of wood; wood charcoal

19,987,831

48


of paper board

6,003,101

16



4,602,860

85




of such articles

4,088,960


2,025,242


AMIR Program 65

84



1,896,987

47

Pulp of wood or of other fibrous cellulosic material; waste


1,854,570


1,350,136


1,143,646

70 Glass and glassware

890,762

29 Organic chemicals 690,311


493,168

19


products

396,298

Table 35. Jordan Main Types of Commodities Imported from Israel in 2004.

HS


Imports

Value (JD)


52,286,778

71




19,517,063

48


of paper board

11,548,743


6,799,039

39

Plastics and articles thereof

6,754,516

58

Special woven fabrics; tufted textile fabrics; lace;

tapestries; trimmings; embroidery

2,863,300

52 Cotton

2,511,422

61 Articles of apparel and clothing accessories, knitted or 2,486,905


AMIR Program 66

crocheted

62


crocheted

2,319,937

96 Miscellaneous manufactured articles

2,162,657

84



1,483,033

85




of such articles

1,366,909


715,473

Table 36. Jordan Main Types of Commodities Imported from Taiwan in 2004.

HS


Imports

Value (JD)


46,092,185

84



12,275,913

85




of such articles

9,838,686

52

Cotton

9,493,579


9,073,665


7,582,139

72 Iron and steel

2,722,997

87



2,325,023

62 Articles of apparel and clothing accessories, not knitted or 1,782,083


AMIR Program 67

crocheted


1,565,374


1,227,443

61


crocheted

1,197,823

Table 37. Jordan Main Types of Commodities Imported from India in 2004.

HS


Imports

Value (JD)

02 Meat and edible meat offal

19,203,087

10 Cereals

13,837,238


13,214,259

15



12,045,039

84



5,039,449


4,181,607

55

Man-made staple fibers

2,669,444

09 Coffee, tea, mate' and spices

2,637,062

23

Residues and waste from the food industries; prepared

animal fodder

2,372,930

85




of such articles

2,357,750


AMIR Program 68

Table 38. Jordan Main Types of Commodities Imported from the United Arab

Emirates in 2004.

HS


Imports

Value (JD)


28,745,473

27



14,517,977


11,943,353

17 Sugars and sugar confectionery

6,591,796

69 Ceramic products

4,596,996


2,847,451

48


of paper board

2,843,752

15



2,756,480

18 Cocoa and cocoa preparations

1,929,992


1,872,853


1,673,076

11

Products of the milling industry; malt; starches; inulin,

wheat gluten.

1,576,378

57 Carpets and other textile floor coverings 1,523,215

31 Fertilizers

1,388,860


1,348,110


1,341,993


AMIR Program 69

Table 39. Jordan Main Types of Commodities Imported from Switzerland in 2004.

HS


Imports

Value (JD)

71




27,139,342


21,107,801

24 Tobacco and manufactured tobacco substitutes

7,486,057

90




3,878,106

91 Clocks and watches and parts thereof

3,764,487

84



3,279,612

85




of such articles

2,517,305

48


of paper board

1,569,251

99 Unspecified

1,561,113


1,456,518

33


preparations

1,087,944


863,161


AMIR Program 70

Table 40. Jordan Main Types of Commodities Imported from the Netherlands in

2004.

HS


Imports

Value (JD)


9,291,567

04



8,612,334


6,981,244


5,679,257

27



4,934,819

84



4,298,305


4,152,835

90




3,534,458

23

Residues and waste from the food industries; prepared

animal fodder

3,027,542


2,146,998

12



fodder

2,000,369

85




of such articles

1,598,366


AMIR Program 71

APPENDIX D

Golden List Program of

Jordan Customs

How to Join the Golden List Program

A Guide

For International Trade Supply Chain Companies

(Importers, Exporters, Qualified Industrial Zone Companies, Customs Agents,

Warehouse Operators and Transport Operators)

Prepared by:

Risk Management Directorate of

Jordan Customs

In Cooperation with:

USAID-Funded AMIR Program of Jordan

2005


AMIR Program 72

PREFACE

Jordan Customs Law No. 20 for the year 1998 allows Jordan Customs (JC) to perform

cargo physical inspections selectively based on pre-established risk management criteria.

Jordan foreign trade volumes escalate and thus JC will not have the capacity or the

resources to physically inspect every cargo shipment. To the contrary, JC believes that

inspecting every cargo shipment will hamper trade and will have unfavorable

consequences to Jordan economy. The Risk Management Directorate within JC was

established in 2001 with the vision of facilitating cargo inward and outward flow while

protecting the people of Jordan and the income of the Treasury. Low risk shipments will

enjoy minimal border processing time in addition to other benefits as permitted by the

Law.

During the second half of 2004, JC has initiated a voluntary, self-compliance program,

called Golden List Program (GLP). The program was targeted at Jordan supply-chain

companies; including importers, exporters, Qualified Industrial Zone (QIZ)

manufacturers, transporters and transport operators, customs clearing agents (brokers),

and warehouse operators. The primary aim of the GLP was promoting standards trade

with other countries. "World Customs Organization ()"companies and thus, will be

treated JC and as well



history with JC and compliant with Jordan customs law and regulations may qualify to

become a Golden List member. Golden list companies will enjoy a preferred treatment

by Jordan Customs in the form of certain incentives. Companies that do not qualify to

become a member of the golden list can work jointly with JC to make certain

improvements to enable them to join.

Companies are strongly encouraged to voluntarily join the GLP. Doing so indicates that

a company has a strong sense of responsibility towards complying with customs

legislation and supply-chain security needs. It also indicates that a company has the

desire and ability to implement the state-of-the-art best practices.

This guide is intended to lead companies throughout the whole process of joining the

GLP; from understanding what is the GLP is about, what is required from a company so

that it is accepted on the program, what is the procedure to follow in joining the program,

until ultimately become a GLP member. The guide contains seven main sections and two

Appendixes. The first section explains the aim of the GLP, the benefits to be gained by

companies joining the program and the types of supply-chain companies targeted by the

program. The second section explains the requirements (criteria) imposed on companies

which must be satisfied as a priory for being accepted on the GLP. The third section is a

step-by-step procedure for a company to follow in applying to join the program until

completing all requirements, and ultimately become a GLP member. The section

explains the steps JC undertakes before, during, and after the actual audit process of a

company by a designated team of customs auditors (audit team). The forth section is

devoted to Voluntary Disclosure which encourages companies to undertake an internal

audit of all its customs transactions before the actual audit by JC takes place. Based on

the results of its own audit, a company has the opportunity to voluntarily disclose any

errors, omissions or violations to JC. Voluntary disclosure is treated favorably by JC and


AMIR Program 73

is considered an invaluable mechanism for companies to avoid penalties. After auditing a

company by JC, the audit results may reveal the need for the company to develop and

implement a Compliance Improvement Plan. Section five contains information for

companies on how to develop an acceptable Compliance Improvement Plan. The audit

processes of a company by JC require sampling of customs transactions previously

completed by the company. Section six explains the principles of sampling and the

criteria used by JC in selecting the appropriate sample. Section seven provides

companies with information about the Analytical Study on a company which JC

undertakes before actual audit processes take place. Appendix I contains the Application

Form for the GLP, while Appendix II contains the "GLP Criteria for Inclusions of

Companies on the Golden List".

DEFINITIONS

The terms defined below will be used throughout the rest of this document.

Customs Audit (sometimes called Post-Release Audit)

The audit process of a supply chain company (importer, exporter, Qualified Industrial

Zone Company, customs agent, warehouse operator, transport operator) conducted by an

authorized team of Jordan Customs Auditors. The audit takes place at the audited

company premises and according to a time table agreeable by the company itself and

Jordan JC. The company voluntarily requests its inclusion on the Golden List Program

GLP of JC and agrees to expose itself to this audit. The audit verifies if the company has

implemented "customs due diligence and supply chain security" procedures that meet a

certain pre-established criteria.

Audit Team

A team of Jordan customs officers authorized to perform the audit and verifies if the

company meets the pre-established criteria for inclusion on the GLP.

Voluntary Compliance

A company voluntarily develops and implements "customs due diligence and supply

chain security" procedures for the purpose of joining the GLP and benefiting from the

facilities offered by JC to GLP member companies.

The Preliminary Meeting

A meeting between the company representatives and the audit team that takes place at the

company premises before the actual audit starts. During the meeting the following

activities take place:

• The audit team receives the completed GLP Application Form from the company.

• The audit team receives the completed relevant "customs due diligence and

supply chain security" checklist.

• The audit team explains the audit processes the team intends to perform and the

documents the company required to furnish.

• The audit team and the company agree on a time table to complete all audit steps.

• Contact persons are identified for further communications between JC and the

company.

• The audit team answers to all inquiries made by the company with respect to the

audit procedures.


AMIR Program 74

The Closing Meeting

A meeting between the company representatives and the audit team that takes place at the

company premises after the actual audit has been completed. During this meeting the

audit team informs the company of the audit results and explains what steps the company

can implement to improve its processes. The audit team may request the company to

submit an improvement plan to rectify weaknesses in its internal control processes.

Compliance Criteria

The GLP has pre-established criteria that a company must meet so that it can be included

on the Golden List. Appendix II contains the official "GLP Criteria for Inclusion of

Companies on the Golden List".

Compliance Improvement Plan

If a company does not meet the GLP pre-established criteria (compliance criteria), a

company may develop an improvement plan so that it can meet the criteria. The

improvement plan must address the weaknesses discovered by the audit team and must be

implemented within a reasonable time. The plan must be agreeable between the company

and the audit team.

Voluntary Disclosure

Before the actual audit commences, a company has the opportunity to voluntarily disclose

to JC any errors, omissions or violations related to its previous customs transactions

which are unknown to JC. Voluntary disclosure will be always treated favorably by JC.

Acceptable Voluntary Disclosure

Is the disclosure that satisfies certain requirements established by JC and approved by the

"voluntary disclosure committee". Acceptable voluntary disclosure applies to the

violations described in Articles 198-202 and paragraphs G & H of Article 204 of Jordan

Customs Law. Voluntary disclosure does not apply to smuggling crimes described in

Articles 203 and 204 (except paragraphs G & H) of Jordan Customs Law.

Voluntary Disclosure Committee

A committee of customs officers formed to review the cases of voluntary disclosure made

by companies.

Voluntary Disclosure Duration

The time duration offered to a company to come forward and disclose any customs errors,

omissions or violations made by the company but not yet known to JC. This duration

normally precedes the date actual audit commences.

Violation

All types of customs violations described in sections 1 and 2 of chapter 13 of Jordan

Customs Law; particular attention is paid to Articles 198 to 202 and Article 204 of Jordan

Customs Law.

Risk Categories

Companies are classified into risk categories in terms of the level of risk they pose from a

customs-transaction view point and based on the audit results. The risk categories are:

1. Low Risk

2. Normal Risk

3. High Risk


AMIR Program 75

Customs Due Diligence and Supply Chain Security Checklists

As part of the requirements for accepting a company on the GLP, the company must have

well-documented “customs due diligence and supply chain security” procedures, and

these procedures have been already implemented and strictly-followed by the company.

The documented procedures must be in accordance to the relevant “customs due

diligence and supply chain security” checklist. The applicant company must use and

satisfy the relevant checklist requirements. There are six different checklists: importer,

exporter, qualified industrial zone company, customs agent, warehouse operator and

transport operator.

BACKGROUND ON THE GOLDEN LIST PROGRAM (GLP)

What Companies are Targeted by the GLP?


compliance program, called Golden List Program (GLP). The program was targeted at

Jordan supply-chain companies, including:

• Importers

• Exporters

• Transporters and transport operators

• Customs clearing agents (brokers)

• Warehouse operators

• Qualified Industrial Zone (QIZ) manufacturers

What is the Aim of the GLP?

The GLP was intends to trade supply-chain companies, boost and enhance the economy

of Jordan. Jordan trade supply-chain companies "World Customs Organization

()"companies



history with JC and compliant with Jordan customs law and regulations might qualify to

become a Golden List member. Golden list companies will enjoy a preferred treatment

by Jordan Customs in the form of certain incentives. Companies that do not qualify to

become a member of the Golden List can work jointly with JC to make certain

improvements to enable them to join.

What is the Rationale Behind the GLP? Today, y Jordan companies, especially those

QIZ demanded to supply-chain was developed to meet these demands. In fact, the GLP

meets

Companies that requirements of the "secure" companies

trade supply-chain companies

How Jordan Benefits from the GLP?

The GLP will benefit Jordan in many ways including: Companies. GLP offers Jordanian

companies WCO e and Facilitate Global Trade).

How Your Company May Benefit from Joining the GLP?

your company Customs requirements and supply-you your company he issue of benefits

companies to offer GLP member companies listed below.


AMIR Program 76

companies that attained GLP customs border processing. lesser financial securities. status

of a GLP member company).a one-to-one basis. (Note: being offered formal benefits

WHAT ARE THE REQUIREMENTS TO JOIN THE GLP?

The following is a description of the main factors that affect the acceptance of a company

on the GLP. It should be noted that these factors are not the official criteria for

companies' inclusion on the GLP (the official criteria are contained in Appendix II of this

document). Rather, these factors are a general description of the main features required

under the GLP criteria. The factors described below aim at providing companies with a

quick, non-technical idea about what is expected from them; but, do not compose the

official criteria.

Note: JC will undertake an extensive audit on the company to verify the requirement

listed below. The audit takes place at the company premises and, depending on the

company size, may take approximately 3-10 working days to complete.

Factor 1: Company Size/ Business Volume

The GLP is currently open to larger-size companies according to the following

requirements.

For Importers, Exporters and QIZ Companies:

The company must have a large trade volume so that at least one condition of the

following three conditions is fulfilled by such a company:

• The company had at least 100 customs declarations filed with JC during the year

preceding the date of the application to join the GLP.

• The company had at least JD 10 million total of customs declared values (on all

customs declarations) during the year preceding the date of the application.

• The company had at least JD 1 million total of declared customs duties during the

year preceding the date of the application.

For Customs Clearing Agents (Brokers):

The company must have a large trade volume so that at least one condition of the

following four conditions is fulfilled by such a company:

• The company had at least 4,000 customs declarations in total from all customs

centers filed with JC during the year preceding the date of the application.

• The company had at least 800 customs declarations from one customs center filed

with JC during the year preceding the date of the application





For Transporters/ Transport Operators and Warehouse Operators:

The company must have been in business for at least five years before filing its

application, or has been in business for at least three years provided that the current

number of its full-time employees is 50 or more.


AMIR Program 77

Factor 2: Customs Due Diligence and Supply Chain Security

To join the GLP, a company must develop and implement "customs due diligence and

supply chain security" procedures according to the relevant checklist issued by JC.

Currently, there are six different checklists:

1. Customs Due Diligence & Supply Chain Security Checklist- Import

2. Customs Due Diligence & Supply Chain Security Checklist- Export

3. Customs Due Diligence & Supply Chain Security Checklist- Clearing Agent

4. Customs Due Diligence & Supply Chain Security Checklist- QIZ Company

5. Customs Due Diligence & Supply Chain Security Checklist- Transport Operator

6. Customs Due Diligence & Supply Chain Security Checklist- Warehouse Operator

A company desiring to become a Golden List member must review one or more of the

checklists that is (are) relevant to its business operation. The company then develops and

implements "customs due diligence and supply chain security" procedures addressing the

many questions contained in the relevant checklist(s).

Customs due diligence and supply-chain security procedures are written procedures,

similar to any ISO/ Quality Management procedures, except that they are focused on

Customs and supply-chain security issues.

Note: A separate guide titled "How to Implement Customs Due Diligence and Supply

Chain Security in Your Company" was developed by JC to help your company write its

own procedures to satisfy the requirement of this factor (Factor 2). You can request this

guide from JC.

Factor 3: Customs Transactions Compliance Rates

This is a technical factor that is attained from examining several sample customs

declarations filed by the company in the last three years. Compliance with customs

requirements includes examining compliance rates with customs value, customs

classification (tariff classification), quantity, etc. It also includes the requirement for

good book keeping of all customs declarations and supporting documents.

Factor 4: Documented Internal Control System

This factor verifies that a company has implemented internal control procedures to ensure

business transactions in general, and customs transactions in particular, are performed

with maximum care; and errors, omissions and violations are avoided.

The presence of an internal control system within a company is considered a strong

indicator of the level of commitment of a company towards avoiding mistakes and

obeying all applicable legislation, including Jordan Customs Law.

Factor 5: Company's Acceptance to Undertake a Suitable Improvement Plan

There is no harm for a company to fail meeting the criteria of the GLP as long as the

company is willing to implement a satisfactory compliance improvement plan. JC will

provide the company with all actual audit results, assist the company to develop and

implement a compliance improvement plan, and make all necessary follow ups in

cooperation with the company to ensure that improvements called for by the plan are

implemented.


AMIR Program 78

If a company is not willing to implement an improvement plan, JC will not be able to

include the company on the GLP.

Factor 6: Company's Success in Implementing its Compliance Improvement Plan

Developing a compliance improvement plan is one thing; implementing the plan is

something else. Thus, the audit team of JC will undertake verification processes, the

extent of which depends on the scope of improvements called for, to make sure that the

compliance improvement plan is actually implemented.

WHAT IS THE PROCEDURE TO JOIN THE GLP?

The following steps outline how a company may join the GLP from the very beginning of

the process until the company officially becomes a member of the Golden List.

Step 1: Company Implements Customs Due Diligence and Supply Chain Security

Procedures

To join the GLP, a company must develop and implement "customs due diligence and

supply chain security" procedures according to the relevant checklist issued by JC.

Currently, there are six different checklists:







A company desiring to become a Golden List member must review only one checklist;

the checklist that is most relevant to its main line of business. The company should

answer the many questions contained in the relevant checklist. Many of the company

answers will be "no" as the company may not have written standard procedures in place.

The company then develops (writes) and implements its own "customs due diligence and

supply chain security" procedures addressing the many questions contained in the

relevant checklist. Writing the appropriate procedures means turning the many "no"

answers into "yes" answers. The written procedures should be compiled into one

document (procedures manual). The written procedures must be implemented (i.e.,

followed) by all concerned departments in the company. It should be noted that

"Customs due diligence and supply chain security" procedures are similar to any ISO/

Quality Management procedures, except that they are focused on Customs and supply-

chain security issues. After writing the procedures, the company should complete

(answer) the checklist again; this time the responses to the many questions should show

many "yes" answers.

The company should have a copy of the completed checklist (the second checklist which

shows many "yes" answers) and a copy of the procedures manual ready for review by JC.

Note: A separate guide titled "How to Implement Customs Due Diligence and Supply

Chain Security in Your Company" was developed by JC to help your company write its

own procedures. You can request this guide from JC.


AMIR Program 79

Step 2: Company Completes the GLP Application Form and Notifies JC

The GLP Application Form is contained in Appendix I (an electronic copy of the form is

also available from JC). The company should complete the form as accurately as

possible. The form is generic and can be used by all type companies; thus some

questions may not apply to your company line of business. Irrelevant questions should

be left blank. The completed application form should be kept by the company, and

should not be sent to JC until requested.

At the same time the company should send an official letter (Request Letter) addressed to

the Director General of JC revealing the company's interest in joining the GLP, and

formally requesting JC to undertake all necessary steps to verify company qualifications.

Step 3: JC Forms an Audit Team

When JC receives a Request Letter to join the GLP from a company, JC replies to the

company within 14 days. The reply letter informs the company of the follow-up steps to

be undertaken by JC.

At the same time, JC forms an audit team to undertake all audit processes on the

company to verify if it qualifies for inclusion on the Golden List member companies.

The audit team is formed of at least three customs officers. The audit team members are

qualified and well-trained officers who have, collectively, the following qualifications:

1. Experience with customs procedures.

2. Academic qualification and experience in finance.

3. Experience in financial audit.

4. Experience in computer use and software applications.

Depending on the nature of the audit to be performed and the business line of the

company to be audited, the audit team may seek assistance from qualified customs

officers from JC.

Step 4: JC UNDERTAKES THREE STAGES OF AUDIT

The audit process of a GLP applicant company aims at examining and reviewing selected

business transactions using modern audit techniques. In addition, "customs due diligence

and supply chain security" procedures implemented by the company will be audited as

well. The scope of the audit will be different for the different types of companies

(importers, exporters, QIZ companies, Customs clearing agents (brokers), warehouse

operators and transport operators). Generally, the audit will verify if the company has

implemented adequate measures with respect to:

• Internal audit processes to ensure record keeping and support-documentation

keeping, especially with respect to customs transactions.

• Compliance with Jordan Customs Law and customs regulations and instructions.

• Supply chain security.

The audit normally comprises three different, but complimentary, stages as described

below.


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Stage I: Preparation for the Audit

This stage comprises the following activities:

• One of the audit team members is designated as a contact officer to communicate

with the company that requested formal inclusion on the GLP. The contact

officer sends to the company: (1) the GLP Application Form and (2) the relevant

"customs due diligence and supply chain security" checklist (both items may have

been already completed by the company as stated in Step 2 above). Also, the

contact officer arranges a preliminary meeting with the company to take place at

the company premises.

• The audit team starts an Analytical Study (a study conducted internally by JC

without requesting any data from the company) of the company by reviewing its

customs transactions over the last few years. Then, the audit team discusses the

results of the study and decides on a strategy on how the actual audit should take

place including the roles of the audit team members. The team also identifies the

most important areas to focus on during the audit and how to choose the needed

samples. The Analytical Study and the Sampling are described in more details

later in this document.

• The company has the opportunity to voluntarily disclose (Voluntary Disclosure)

any errors, omissions or violations made by the company in the past but not

known to JC. Voluntary Disclosure is described in more details later in this

document.

• A voluntary disclosure committee composed of a number of customs officers is

formed to review the voluntary disclosure made by the company. The committee

decides if the disclosure is acceptable and informs the company in writing of the

committee's decision. Voluntary Disclosure is described in more details later in

this document.

• A preliminary meeting (see definition of The Preliminary Meeting) takes place at

the company premises between the audit team and the company designated

officers. During the meeting the following activities take place: (1) the audit team

receives the completed GLP Application Form from the company, (2) the audit

team receives the completed relevant "customs due diligence and supply chain

security" checklist and procedures manual, (3) the audit team explains the audit

processes the team intends to perform and the documents the company required to

furnish, (4) the audit team and the company agree on a timetable to complete all

audit steps, (5) contact persons are identified for further communications between

JC and the company, and (6) the audit team answers to all inquiries made by the

company with respect to the audit procedures.

• The audit team reviews the completed GLP Application Form and the completed

relevant "customs due diligence and supply chain security" checklist and

procedures manual.

• The audit team reviews the organization structure of the company which supposed

to be submitted with the completed Application Form. The audit team decides on

the main company units that will be primarily targeted by the audit.


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• The audit team identifies the required samples to be fully audited and according to

the sampling procedure used by JC.

• The company provides adequate office space at its premises for the audit team

during the whole duration of audit.

• The audit team prepares a complete plan for its own use on how the audit will

proceed and identifies the roles and responsibilities of each team member.

• The company is officially informed of the starting time and date of the audit.

Stage II: Actual Audit

This stage comprises the following activities:

• The audit team shows up at the company premises on the pre-arranged time and

date. The audit team reveals to the company contact person an official letter from

JC authorizing the team to undertake the actual audit.

• The audit team starts its audit processes which include, but not limited to: (1)

examination of select customs transactions with all relevant verification

documents, (2) examination of select purchase and sale transactions with all cost

elements involved, (3) payments including cash and documentary letters of credit,

(4) internal audit processes performed by the company itself or by an external

party, (5) supply chain security procedures, (6) examination of documents

protection and record keeping, (7) warehouse documents and book keeping, and

(8) interviewing employees as needed.

• The audit team documents the results of all audit activities. Later, the audit team

writes a report containing audit results and recommendations.

• If the audit team finds out that the company has fulfilled the GLP Criteria, the

company will be identified as a Low-Risk (see definition of Risk Categories) and

will be approved to join the GLP.

• If the company does not fulfill the GLP Criteria because of deficiencies in its

records keeping processes or deficiencies in its internal control processes, then the

audit team will recommend to the company what to do to alleviate the

deficiencies. The company will be identified as a Normal-Risk and will stay so

until all deficiencies have been remedied to the satisfaction of the audit team.

• If the company does not fulfill the GLP Criteria because of errors or omissions

discovered during the audit, then the company will be requested to submit a

Compliance Improvement Plan (described later in this document) to alleviate all

errors or omissions. The company will be allowed a maximum of six months to

implement the plan and remain under the Normal-Risk category during this

period.


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• If the company does not fulfill the GLP Criteria and is not willing to implement a

Compliance Improvement Plan, then the company will be identified as a High-

Risk and will be denied any customs facilities or benefits. The same thing applies

to a company that decided to implement a Compliance Improvement Plan, but

failed to do so within the time period agreed upon by the audit team. It should be

noted that the company has the right in the future to re-submit a satisfactory

Compliance Improvement Plan and request JC to verify its implementation.

Stage III: Follow Up

The work of the audit team does not stop after completing the actual audit of stage II

above. Follow up steps are necessary to make sure that errors, omissions, violations

and deficiencies in the company procedures in general are remedied. The follow up

stage comprises the following activities:

• A closing meeting (see the definition of The Closing Meeting) between the

company representatives and the audit team takes place at the company premises

after the actual audit has been completed. During this meeting the audit team

informs the company of the audit results, the errors and omissions found, the

weaknesses in company procedures, and explains what steps the company can

implement to improve its processes. The audit team may request the company to

submit a Compliance Improvement Plan (described later in this document) to

rectify weaknesses in its processes.

• The audit team prepares a detailed report documenting all activities the team

undertook during the actual audit, the deficiencies or weaknesses found, the

recommended improvements the company should implement, the difficulties

encountered, etc. The report identifies in which risk category the company should

be.

• The audit team, in coordination with the company, makes follow up visits to the

company premises to verify the implementation status of any improvements

agreed upon according to the Compliance Improvement Plan.

• The audit team studies any comments received from the company with respect the

audit itself, the criteria used, the "customs due diligence and supply chain

security" checklist, etc. It should be noted that JC always encourages constructive

comments from the business community to improve its customs processes.

Notes:

• All audit stages (I, II & III) must be completed within a maximum of one-year

duration inclusive of developing and implementing a Compliance Improvement

Plan.

• JC may initiate a follow up audit on any Golden List member company after the

passage of one year from the date the company attained the Golden List status.


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VOLUNTARY DISCLOSURE

Before the actual audit commences, a company has the opportunity to voluntarily disclose

to JC any errors, omissions or violations related to its previous customs transactions

which are unknown to JC. Voluntary disclosure by a company will be always treated

favorably by JC.

Objectives of Voluntary Disclosure

• To make sure that companies understand their obligations and responsibilities

under applicable legislations including Jordan Customs Law.

• To encourage companies to undertake self-compliance audit to discover their

mistakes and disclose them to JC. Voluntary disclosure builds trust between JC

and the trade community.

How Companies Benefit from Voluntary Disclosure

1. Companies improve, and thus expedite, their transactions with customs when they

undertake self-compliance audit because they discover their own mistakes and

remedy them.

2. Self-compliance audit to discover a company own mistakes and remedy them

improves the chances the company could attain the Golden List status.

3. The company saves time and money via smoother transactions with Customs and

via avoiding higher penalties when the mistakes are discovered by JC.

4. JC may waive, or charges the minimum levels of, fines/ penalties when the

mistakes are disclosed by the company itself.

How JC Benefits from Voluntary Disclosure

1. With the escalating trade volume, JC will better utilize its resources. Voluntary

disclosure reduces the work burden of JC.

2. Customs comprehensive audits and investigations to verify violations are quite

expensive and time consuming; JC saves a lot if companies come forward and

disclose.

3. JC officers do not need to dig to discover mistakes; all disclosed mistakes are

"time savers".

4. Hidden mistakes are loss to the Treasury; disclosing mistakes means fulfilling a

company's obligation as a tax payer.

Acceptable Voluntary Disclosure

There are certain requirements that must be satisfied for a voluntary disclosure to be

accepted by JC. These requirements are:

1. The disclosure must be disclosed in writing to JC and within the time duration

offered to a company to come forward and disclose.

2. The disclosing company must identify the type or types of violations it made in

the past and must furnish all related documentation.

3. The voluntary disclosure should contain the following information:

- Type(s) of good(s)

- Customs procedure related to the goods (import for consumption, re-

export, bonded warehouse, under certain trade agreement, etc.)

- Customs declaration number(s), date and the customs center

- Description of how the error or violation had happened


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- The correct information that supposed to be furnished in the first place

instead of the mistaken ones.

4. The disclosed violation is not a smuggling crime as described under Articles 203

and 204 (except paragraphs G & H) of Jordan Customs Law.

5. The company is ready to pay all outstanding (unpaid) customs duties and other

taxes, in addition to any fines (fines may be waived or reduced to the minimum

level) JC imposes.

Official Procedure for Accepting a Voluntary Disclosure

1. JC issues an official acceptance letter to the disclosing company, and the company

legal representative must sign the delivery receipt of this letter.

2. The official acceptance letter formally indicates if JC intends to waive, or apply

the minimum levels of, any fines pertaining to the disclosed case.

3. The official acceptance letter formally indicates a time duration during which the

company must complete all formalities with respect to the case, including the

payment of duties, taxes and fines. The actual audit for the GLP will not

commence until this step is fulfilled.

4. After the company fulfills the previous step (step 3), JC informs the audit team to

discard the disclosed case from the audit.

5. After the company fulfills the previous step 3, JC informs the audit team to

discard the disclosed case from the GLP Criteria (i.e., the disclosed case will not

affect the company negatively with respect to joining the GLP).

Non Acceptance of Voluntary Disclosure

JC will not accept a voluntary disclosure made by a company under the following

condition:

1. If the disclosed case is a smuggling crime as described under Articles 203 and 204

(except paragraphs G & H) of Jordan Customs Law.

2. If the disclosed case was already known to JC even though an action is not yet

taken.

3. If the disclosed information and documents pertaining to the disclosed case are

deficient, or the company was not able to furnish appropriate documents.

Notes:

• JC will inform the disclosing company in writing of its rejection to the disclosed

case. The letter will reveal the reasons for the rejection.

• JC will accept reviewing a previously rejected disclosure case if new information

or documents become available to warrant such a review.

COMPLIANCE IMPROVEMENT PLAN

If a company does not meet the GLP Criteria (contained in Appendix II), the company

may develop an improvement plan so that it can meet the criteria. The improvement plan

must address the weaknesses discovered by the audit team and must be implemented

within a reasonable time. The plan must be agreeable between the company and the audit

team.

The compliance improvement plan is a joint effort between JC and the audited company.

The audit team, after actual audit is completed, will meet with company officers and

discuss with them the audit results. The audit team will recommend to the company what

improvements or changes should take place to improve company processes. Even though


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the company itself is primarily responsible for developing and implementing a

compliance improvement plan, JC will assist the company by all means to ensure the

quality of the improvements the company intends to make.

Description of the Compliance Improvement Plan

Compliance improvement plan is a document containing the company plans to ameliorate

all deficiencies found by the audit team during the actual audit of the company. The

important elements of an acceptable improvement plan include: the title of the

improvement element which must reveal the subject matter of the needed improvement,

the steps undertaken by the company to ameliorate the identified deficiency along with

any relevant supporting documents, and the expected date to completely implement each

improvement element.

Improvement Plan Overall Objective

The overall objective of the improvement plan is to improve the company internal control

processes with respect to customs transactions and supply chain security based on the

results of JC audit and any voluntarily disclosed cases by the company.

Allowed Duration for Plan Implementation

From the date a compliance improvement plan is approved (accepted) by JC, a company

has a maximum of six months duration to implement all the improvements contained in

the plan. The company remains within the Normal-Risk category during this period. The

company may request, and JC may accept, extending the six months duration if deemed

necessary.

If the company did not implement all the improvements contained in the plan within the

allowed six months duration, and did not apply for extension, JC will under-grade the

company into the High-Risk category.

Components of Compliance Improvement Plan

The important elements of an acceptable compliance improvement plan are:

• Company name and tax identification number.

• The title(s) of the improvement(s) which must reveal the subject matter of the

needed improvement(s).

• The name and title of the company employee who is responsible for undertaking

the required improvement(s).

• The steps undertaken by the company to ameliorate the identified deficiency along

with any relevant supporting documents.

• The criteria to be used by the company to measure the level of improvement to all

affected processes as a result of plan implementation.

• The expected date to completely implement the required improvement (6 months

maximum allowed duration to complete all required improvements).

• The signature of the company's authorized representative along with the date and

company seal.

Depending on the extent of the improvement required, JC may send a full audit team or

one member of the team to the company to verify improvement implementation.


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PRINCIPLES AND CRITERIA OF CUSTOMS TRANSACTIONS SAMPLING

The actual audit of a company aims primarily at ensuring that the company is compliant

with customs requirements as stipulated by Jordan Customs Law, customs regulations and

instructions, and supply chain security requirements. The audit process requires the audit

team to depend on a select number of sample customs transactions performed by the

company during the last few years. The selected sample transactions will be examined by

the audit team in terms of their compliance with respect to a number of factors including:

1. The correct types of goods and their tariff classifications.

2. The correct quantities and declaring the whole quantity.

3. The correct declaration under duty-free or duty-reductions under the various trade

agreements.

4. The correct country of origin and the correct application of country of origin

rules.

5. The correct value including all cost factors.

6. The proper records keeping of all pertaining documents for future review.

A company internal control system will be verified as to its adequacy to prevent errors,

omissions and violations, especially with respect to the afore-listed factors. If the internal

control system of a company is strong and comprehensive, the number of selected sample

transactions by the audit team would be smaller. However, if the internal control system

is loose, then the audit team will select a larger number of transactions for audit.

Sample Selection

Sample transactions will be selected randomly according to the well-known methods of

statistical sampling. Simple random sampling or more sophisticated blocked random

sampling may be employed depending on the complexity of the customs transactions.

Application

The sampling will be applied to different types of company records, including:

1. Customs transactions filed with JC over the last three years preceding the audit.

2. Accounting and financial records over the last three years preceding the audit.

3. Business communications including letters sent and received.

4. Computerized and non-computerized accounting and financial systems.

5. Shipping, insurance and all documents pertaining to a particular business

transaction.

Sample Size

The number of customs transactions to be pulled out for critique examination by the audit

team will vary from company to company. However, the sample size will be smaller for

a company that has good compliance record with JC; and for a company that has a strong

and comprehensive internal control system.

Evaluation of Compliance Level

After audit completion, the level of company compliance will be assessed against the

GLP Criteria. Generally, the compliance level is divided into three classes from best to

worst:


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1. The company internal control system is well documented and the company has

succeeded in all sample tests according to the GLP Criteria. In this case the

company is considered highly compliant and most likely will not need a

Compliance Improvement Plan.

2. The company has an internal control system, but the system is loose and not well

documented. Even if the company has succeeded in all sample tests according to

the GLP Criteria, the company will be required to implement a Compliance

Improvement Plan to enhance its internal control system.

3. The company does not have an internal control system or its system is weak. The

company would need a comprehensive Compliance Improvement Plan.

THE ANALYTICAL STUDY

As stated above, as soon as a company requests formal inclusion on the GLP, the audit

team starts an Analytical Study of the company. The analytical study is performed

internally within the JC, and precedes the actual audit which takes place at the company

premises. The analytical study is more applicable to importers, exporters and qualified

industrial zone companies. In the study, JC focuses on the following subjects/ issues

arranged according to importance from 1 to 11:

1. Tariff classifications that have the highest duty rates, and the tariff classifications

that have free-duty or reduced-duty rates according to trade agreements utilized by

a company.

2. Customs transactions where customs values are high.

3. Customs transactions under bi-lateral and multi-lateral trade agreements with

special attention to the country of origin.

4. Methods for calculating shipping expenses.

5. The accuracy of using tariff classifications and exemptions.

6. The customs center at which the highest number of customs transactions took

place.

7. Goods quantities, values and tariff classifications for goods deposited at public

and private warehouses.

8. Cancelled customs transactions.

9. Customs transactions for goods in-transit.

10. Customs transactions for goods entering the country for re-export purposes and

for deposit at free zone areas.

11. Any subjects or issues the audit team believes important to the business operation

of the company.


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Appendix I

GLP Application Form

Notes:

• All information provided on this form shall be treated with strict confidentiality by

Jordan Customs.

• Questions not relevant to your company can be left blank.

Part One: General Information

Company Name:

Business Activity (Import, Export, Customs Clearance, Transport, Warehousing, QIZ):

Address:

Telephone: Fax:

E-Mail: Website:

Company Registration Number:

Import Card Number:

Income Tax Number:

Sales Tax Number:

Part Two: Organization Structure

1. Organization structure (provide a copy and/ or a chart showing all company

departments and sections).

2. Company legal form (public share holding, limited share holding, individual

owner, etc.):

3. Paid-up capital (Jordanian Dinar):

4. Names of all authorized signatories:

5. Names of partners (for non pubic share holding companies only):

6. Do company partners have shares/ ownership rights in other companies (other

than public share holing companies)? If "yes" provide details.

7. Nature of business sector (trade, manufacturing, service, etc.):

8. Names of local/ international companies that are legally connected to your

company (subsidiaries, parent company, etc.):

9. Name of external audit company appointed to audit your company (mention the

name and contact information of the chief auditor):

10. Names and contact information of the company officers who prepared and

completed this Application Form:


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11. Name, job title, address and telephone number of your company officer who has

been appointed to represent your company with respect to all follow up matters

related to this Application Form and all subsequent steps:

12. Does your company have branches (mention names and addresses)

13. Does your company hold any Quality Management Certificates (ISO or Similar).

If "yes", mention them.

14. Does your company have a warehouse or a storage facility for your own company

use?

15. Were there any courts cases raised/ registered against your company (in the past

or still pending judgment)? If "yes", provide details.

Part Three: General Customs-Related Information

1. Do you contract external customs clearance agents to undertake customs clearance

duties for your goods? If "yes", mention names of all customs clearance

companies.

2. Name, address and contact information of the clearing agent's officer responsible

for your company customs clearance matters

3. Do you pay your customs duties directly to customs or via your clearance agent

company

4. Do you pay your clearing agent company for its services according to the

instructions of Jordan Customs? Explain and attach verification documents.

5. If your answer to question 1 of this part is "no", do your company employees

undertake customs clearance duties for your goods and according to the

authorization letter issued to them by Jordan Customs Mention the names of these

employees and attach copies of their authorization letters.

6. With respect to clearing your goods via Customs, does your company deal with

external parties (individuals or companies) that are Import Card-Holders Mention

the names of these parties along with their Tax ID numbers.

7. Types and nature of goods your company imports, exports or deals with (if many,

just mention the main types only)

8. What are the types of customs entry procedures your company use (i.e., release of

goods for free circulation, temporary admission, customs bonded warehouse,

export, etc.)

9. Mention Tax Identification Number(s) your company uses on its customs

declarations.

10. The prices of goods you fill on your customs declarations; are they the prices

actually paid or are they estimates (or both)

11. What is the main method used by Jordan Customs in identifying the customs

value of your imported goods according to Jordan Customs Law

- Declared price according to the purchase contract

- Value of identical goods

- Value of similar goods

- Last resort method

- Other

12. What is/ are the delivery term(s) your company uses for its imports (Ex-Factory,

FOB, C&F, etc.)


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13. Are there any conditions, circumstances or stipulations that affect your company's

ability to purchase any of your imported goods? Mention them with identifying

the names of goods affected.

14. Are you aware that the customs declared value must include all customs value

elements (price actually paid + shipping expenses + commissions + …; according

to article 28 of Jordan Customs Law)

15. Are there any royalties or licensing fees pertaining to your imported goods paid to

the exporter? Mention the names of goods and their country of Origin.

16. Did your company (as the importer) provide the exporter with any assists that are

used in the manufacturing/ production of your imported goods (raw materials,

models, molds, designs, etc.)? Did you include all assists in the price actually

paid? Mention the types of assists provided and the types of imported goods in

which the assists were used.

17. What payment modes mainly used to pay for your imported goods (cash, cash

transfers via a bank, documentary letter of credit, etc.)

18. Did your company ever obtain a tariff classification decision issued by Jordan

Customs or the World Customs Organization with respect to any of your imported

goods (regardless if the decision was issued before or after the goods were

imported)? Mention types of goods.

19. Do you consult external experts with respect to the tariff classification of your

imported goods or do you depend mainly on your customs clearance agent

(regardless if this agent is an external party or an employee of your company) If

"yes", provide details.

20. Does your company benefit from any customs duty reductions or duty-free

statuses allowed for by Jordan Customs Law or other Legislations

21. Do any of your imported goods require laboratory analyses to identify tariff

classification?

22. When filing customs declarations, do you declare accurately the country of origin

of all your imported goods? Explain if necessary.

23. Are the goods imported by your company subject to any trade agreements

between Jordan and the country of export? Mention these agreements.

24. Do your imported goods shipped directly from the country of origin to Jordan or

do they have to pass through other countries

25. Is there a separate department in your company that is responsible for purchasing,

trade transaction arrangements, contracts and prices? Name the department.

26. Are your imported goods cleared via one, or more than one, customs center Name

all relevant customs centers.

27. Does your company benefit from any facilities offered by Jordan Customs or other

Jordan tax agencies (for example, postponing the payment of sales tax) Mention

the number and date of the instructions letter that offered the facility and the name

of the relevant agency.

28. If your imported goods are subject to other agency requirements (Ministry of

Health, Ministry of agriculture, Jordan Institute of Standards and Metrology, etc.),

have any of your declared goods ever rejected by any of these agencies during the

last three years? If "yes", mention the relevant declarations' numbers and the

customs centers where they were filed.


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Did your company withdraw (i.e., cancelled) more than 10 customs declarations in one

year during any of the last three years? If "yes", mention the number of declarations

withdrawn and in which year(s).

29. Have your company been subjected to a "material violation" fine of JD 1,000 (one

thousand) or more by Jordan Customs during the last three years (as a result of

discrepancies in customs value, tariff classification, quantities, country of origin,

etc.)? If "yes", describe the violation, the amount of fine paid and the year.

Part Four: Company Records Keeping System

1. Does your company keep the following types of accounting records?

- General daily records

- General ledger

- Daily purchasing

- Daily outstanding payments

- Daily payments (cash, letter of credit, etc.)

- Warehouse record (sending and receiving receipts)

- Quarterly and annual financial statements

- Daily sales

2. Does your company keep all financial and accounting records for adequate time

period as stipulated by the Laws of Jordan? If "no", explain.

3. Does your company keep all audited financial statements? If "no", explain.

4. Is your company financial and accounting system fully or partially computerized?

Explain.

5. Is there a specific department or division in your company that is responsible for

records keeping with respect to imports, exports and customs processes? If "yes",

name the department or division.

6. Since when did your company officially start its records keeping processes?

7. Summarize your company's policy with respect to customs records keeping,

storage, moving and displacing records, records destruction, etc.?

8. Where does your company keep its records?

9. Does your company keep all records and documents pertaining to its customs

transactions? Answers "yes/ no" to the following:

- Commercial letters pertaining to imports and exports?

- Purchasing orders?

- Shipping documents?

- Pro-forma invoices?

- Goods' receiving documents?

- Packing lists?

- Goods catalogs and technical information?


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- Invoices?

- Payments' documents and records?

- Documents and records of commissions paid or received?

- Bank transfers?

- Documents and records of any payments made for imported goods?

10. Contracts:

- Does your company keep all purchase/ sale contracts?

- Does your company keep all contracts authorizing the use of any

intellectual property rights or any certifications?

- Do your company contracts contain the purchase/ sale prices?

- Does your company keep added-value contracts to your imports (plans

and designs, research studies, management fees, etc.)?

- Does your company keep all directly- and indirectly-related records to

your import and export transactions?

11. Do have written procedures on how to retain and keep your company records?

12. Do you document when and how your record keeping procedures are changed?

13. Are all your company documents and records officially certified (stamped or

sealed) by your company?

14. Do you have written procedures with respect to cancelling records, financial and

trade documents?

15. If your company financial recording system is computerized, do you keep backup

copies of all recorded data?

16. Do you have written procedures with respect to how to discover errors and how

to rectify them?

17. What are the procedures you follow when errors in your records are discovered?

18. Does your company have an internal audit system?

19. If your company uses any of the "outstanding duty" customs entry procedures

(i.e., temporary admission, customs bonded warehouse, re-export, etc.), does your

warehouse recording procedures accumulate/ reduce quantities and types in

connection with what has been originally reported on customs declarations?

20. Does your company have due diligence procedures with respect to documents

and records keeping processes?

21. Does your company fulfil its duties with respect to income-return and sales tax?

Attach last statement.

22. Are your company accountings procedures allow for identifying employees

accountabilities/ responsibilities; especially when errors are discovered?


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Part Five: Internal Audit System

1. Does your company have an internal audit department/ section/ individual that

undertakes internal audit processes? If "yes", identify the name.

2. Does your company audit all customs transactions after completion according to

customs instructions? If "yes", identify the department/ section/ individual

responsible for this task.

3. Identify your company policies and procedures with respect to customs

transactions?

4. Identify your company procedures to ensure that all cost factors (commissions,

assists, licensing fees, intellectual property rights fees, etc.) are accurately

declared to Jordan Customs?

5. What are the procedures your company follows to ensure the effectiveness and

integrity of its internal and external audit systems

Part Six: Data Processing Systems

1. Does your company keep documents and/ or data records electronically? If "yes",

identify them.

2. Explain the relationship(s) between the different data bases your company has.

3. Does your company have a department/ section/ individual that undertakes

electronic data maintenance processes? If "yes", identify the name.

4. Attach a data flow chart showing how your company data flows within your

company electronic system(s)

5. What are the electronic mechanisms your company uses for data storage and

transfer

6. Does your company have an authorization system to control entry into your

company electronic system and data?

7. Identify the person responsible for furnishing and maintaining employees'

electronic data storage passwords?

8. Does your company retain backup copies of your company data bases? If "yes",

where do you keep them?

9. Identify the name and contact information for your company employee who is

authorized to release information to Jordan Customs with respect to your company

data processing and maintenance systems.

We, (company name), certify that all information provided on this form are correct and

take full responsibility for its accuracy.


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Appendix II

GLP Criteria for Inclusion of Companies on the Golden List

SECTION A: IMPORT, EXPORT AND QIZ COMPANIES

This section applies to importers, exporters and Qualified Industrial Zone (QIZ)

companies.

Part I: Acceptance of Applications to Join the Golden List Program

JC will not perform any audits on any company for the purpose of joining the Golden List

Program unless the company satisfies the conditions described in this section.

The application by a company to join the Golden List Program will not be accepted, and

thus will not be followed through by JC, unless the following conditions are fulfilled by

such a company:

1. The company must have a large trade volume so that at least one condition of the

following three conditions is fulfilled by such a company:


preceding the date of the application.





2. The company must have an acceptable compliance rate, equal to or exceeding 95%,

for all customs declarations during the year preceding the date of the application,

according to the stipulations A, B and C below:

A) the percentage of the difference in customs duties to the total declared customs

duties does not exceed 5% (compliance rate of 95% or more).

B) The percentage of the difference in customs bonds/ guarantees to the total

required bonds/ guarantees (for duty-unfulfilled or export declarations) does not

exceed 5% (compliance rate of 95% or more).

C) the percentage of the difference in declared values to the total declared values

does not exceed 5% (compliance rate of 95% or more).

In other words, the compliance rate (in percentage points) according to A, B and C

above must equal or exceed 95%.

If any one of the stipulations A, B or C is not satisfied, but the compliance rate is

still 90% or above, then stipulation D below will be applied.

D) The percentage of the number of declarations with error(s) to the total number of

declarations filed does not exceed 5% (compliance rate of 95% or more).


AMIR Program 95

3. The company was not subjected to litigation by JC where the litigation case involves a

fine exceeding 1% of the declared value. This condition applies to all customs

declarations filed by the company during the 3-year period preceding the date of the

application.

4. The company has been in business for at least five years before filing its application,

or has been in business for at least three years provided that the current number of its

full-time employees is 50 or more.

5. The company passes a preliminary inspection by JC to identify if basic "customs due

diligence and supply chain security" procedures are already in place to warrant full-

scale audit.

6. The company has already implemented a “customs due diligence and supply chain

security” procedures to guarantee that reasonable care is being exercised by the

company with respect to its transactions with customs and its obligations toward

securing its supply chain. The company must have these procedures documented and

must present a copy to JC for review.

Part II: Criteria for Inclusion on the Golden List

Once the application by a company to join the Golden List Program is accepted by JC

(after satisfying the conditions of Part I above), JC will initiate an audit process as

described in the "Golden List Guide" available from Jordan Customs. At the end of the

audit process the company will be approved for inclusion on the Golden List only after

satisfying the conditions described in this section.

To be approved for inclusion on the Golden List, a company must satisfy the following

criteria:

1. The company must have a well-documented “customs due diligence and supply chain

security” procedures, and these procedures have been already implemented and

strictly-followed by the company. The documented procedures must be in accordance

to the “customs due diligence and supply chain security” checklist prepared by JC for

this purpose. According to the checklist, the company must satisfy the requirements

A, B and C below.

A) The company must be 100% compliant with the “A” rated (Fundamental)

requirements of the checklist (see definitions below).

B) The company must be either 100% compliant with the “B” rated (Important)

requirements, or else, provide a satisfactory improvement plan to guarantee

compliance with these requirements within a reasonable time period agreed

between JC and the company.

C) Though not mandatory, the company may comply with the “C” rated (Desirable)

requirements for the purpose of attaining additional benefits from JC (in addition

to the benefits available to Golden List companies).


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Definitions of the A, B and C Requirements:

A-Rated Requirements: the requirements designated by the letter “A” in the “customs

due diligence and supply chain security” checklist are considered “fundamental” and the

company must have a documented and strictly-implemented procedures addressing these

requirements. An improvement plan is not adequate and is not acceptable to address

these fundamental requirements.

B-Rated Requirements: the requirements designated by the letter “B” in the “customs

due diligence and supply chain security” checklist are considered “important” and the

company must ultimately have a documented and strictly-implemented procedures

addressing these requirements. If the company is not 100% compliant with these

requirements, then an improvement plan by the company can be accepted by JC if such a

plan addresses these important requirements in full and the plan is implemented within a

reasonable time period.

C-Rated Requirements: the requirements designated by the letter “C” in the “customs

due diligence and supply chain security” checklist are considered “desirable” and the

company is encouraged to comply with them in the future. These requirements are not

mandatory for the company to join the Golden List, however, JC is willing to negotiate

additional benefits to be offered to the companies that respond to these requirements.

2. The company must be compliant with the customs-transaction measurements based on

the samples audited by the customs audit team and according to the criteria of

Appendix I.

Note: JC reserves the right to remove any company from the Golden List if the company

seizes compliance with the aforementioned criteria.


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SECTION B: CUSTOMS CLEARING AGENTS, WAREHOUSE OPERATORS

AND TRANSPORT OPERATORS

This section applies to customs clearing agents, warehouse operators and transport

operators.

Part I: Acceptance of Applications to Join the Golden List Program

JC will not perform any audits on any company for the purpose of joining the Golden List

Program unless the company satisfies the conditions described in this section.

The application by a company to join the Golden List Program will not be accepted, and

thus will not be followed through by JC, unless the following conditions are fulfilled by

such a company:

Part I-I: For Customs Clearing Agents

1. The company must have a large trade volume so that at least one condition of the

following four conditions is fulfilled by such a company:

• The company had at least 4,000 customs declarations in total from all customs

centers filed with JC during the year preceding the date of the application.







2. The company must have an acceptable compliance rate for all customs declarations

during the year preceding the date of the application. The following procedure is used

to identify if the compliance rate is acceptable or not:

A) the percentage of the difference in declared values to the total declared

values is calculated.

B) the percentage of the difference in customs duties to the total declared

customs duties is calculated.

The percentage of step A is subtracted from the percentage of step B. If the result is

zero or less the company is considered compliant. If the result is between zero and

5%, then the calculation in step C below will be performed:

C) the percentage of the number of declarations with error(s) to the total

number of declarations filed (only errors that affect customs duty will be

considered).

If the result of step C is 5% or less the company is considered compliant;

otherwise, the company is noncompliant.


AMIR Program 98

3. The company is not currently under litigation by JC for its direct involvement in a

“material” breach of customs law.

4. The company has been in business for at least five years before filing its application,

or has been in business for at least three years provided that the current number of its

full-time employees is 50 or more.

5. The company passes a preliminary inspection by JC to identify if basic "customs due

diligence and supply chain security" procedures are already in place to warrant full-

scale audit.

6. The company has already implemented a “customs due diligence and supply chain

security” procedures to guarantee that reasonable care is being exercised by the

company with respect to its transactions with customs and its obligations toward

securing its supply chain. The company must have these procedures documented and

must present a copy to JC for review.

Part I-II: For Transporters and Transport Operators

The compliance of these companies depends largely on their compliance with the

"customs due diligence and supply chain security" checklist for transporters and transport

operators, in addition to the following requirements:

1. The company is not currently under litigation by JC for its direct involvement

in a “material” breach of customs law.

2. The company has been in business for at least five years before filing its

application, or has been in business for at least three years provided that the

current number of its full-time employees is 50 or more.

3. The company passes a preliminary inspection by JC to identify if basic

"customs due diligence and supply chain security" procedures are already in

place to warrant full-scale audit.

4. The company has already implemented a “customs due diligence and supply

chain security” procedures to guarantee that reasonable care is being exercised

by the company with respect to its transactions with customs and its

obligations toward securing its supply chain. The company must have these

procedures documented and must present a copy to JC for review.

5. The company has a business volume large enough (compared to other

companies) to warrant the effort by JC.

6. The company operates a minimum of 50 trucks.


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Part I-III: For Warehouse Operators

The compliance of these companies depends largely on their compliance with the

"customs due diligence and supply chain security" checklist for warehouse operators, in

addition to the following requirements:

1. The company is not currently under litigation by JC for its direct involvement

in a “material” breach of customs law.

2. The company has been in business for at least five years before filing its

application, or has been in business for at least three years provided that the

current number of its full-time employees is 50 or more.

3. The company passes a preliminary inspection by JC to identify if basic

"customs due diligence and supply chain security" procedures are already in

place to warrant full-scale audit.

4. The company has already implemented a “customs due diligence and supply

chain security” procedures to guarantee that reasonable care is being exercised

by the company with respect to its transactions with customs and its

obligations toward securing its supply chain. The company must have these

procedures documented and must present a copy to JC for review.

5. The company has a business volume large enough (compared to other

companies) to warrant the effort by JC.

Part II: Criteria for Inclusion on the Golden List

Once the application by a company to join the Golden List Program is accepted by JC

(after satisfying the conditions of Part I above), JC will initiate an audit process as

described in the "Golden List Guide" available from Jordan Customs. At the end of the

audit process the company will be approved for inclusion on the Golden List only after

satisfying the conditions described in this section.

To be approved for inclusion on the Golden List, a company must satisfy the following

criteria:

1. The company must have a well-documented “customs due diligence and

supply chain security” procedures, and these procedures have been already

implemented and strictly-followed by the company. The documented

procedures must be in accordance to the relevant “customs due diligence and

supply chain security” checklist prepared by JC for this purpose. According

to the relevant checklist, the company must satisfy the requirements A, B and

C below.

A) The company must be 100% compliant with the “A” rated (Fundamental)

requirements of the checklist (see definitions below).

B) The company must be either 100% compliant with the “B” rated (Important)

requirements, or else, provide a satisfactory improvement plan to guarantee


AMIR Program 100

compliance with these requirements within a reasonable time period agreed

between JC and the company.

C) Though not mandatory, the company may comply with the “C” rated (Desirable)

requirements for the purpose of attaining additional benefits from JC (in addition

to the benefits available to Golden List companies).

Definitions of the A, B and C Requirements:

A-Rated Requirements: the requirements designated by the letter “A” in the “customs

due diligence and supply chain security” checklist are considered “fundamental” and the

company must have a documented and strictly-implemented procedures addressing these

requirements. An improvement plan is not adequate and is not acceptable to address

these fundamental requirements.

B-Rated Requirements: the requirements designated by the letter “B” in the “customs

due diligence and supply chain security” checklist are considered “important” and the

company must ultimately have a documented and strictly-implemented procedures

addressing these requirements. If the company is not 100% compliant with these

requirements, then an improvement plan by the company can be accepted by JC if such a

plan addresses these important requirements in full and the plan is implemented within a

reasonable time period.

C-Rated Requirements: the requirements designated by the letter “C” in the “customs

due diligence and supply chain security” checklist are considered “desirable” and the

company is encouraged to comply with them in the future. These requirements are not

mandatory for the company to join the Golden List, however, JC is willing to negotiate

additional benefits to be offered to the companies that respond to these requirements.

2. The company must be compliant with the customs-transaction measurements based

on the samples audited by the customs audit team and according to the criteria of

Appendix I.

Note: JC reserves the right to remove any company from the Golden List if the company

seizes compliance with the aforementioned criteria.

See Below


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Appendix I

Audit Results Audit Results After Improvement Plan Implementation

Notes Improvement Plan

Customs and Supply Chain Security Requirements Non

Compliant

Under

Improvement

Plan

Compliant/

Percentage

Non

Compliant In Progress Completed

Compliant

Customs Requirements/ General

Supply Chain Security

Physical Security

Personnel Security

Procedures security

Documents Security

Customs Value

(Samples)

Equation (1)*

Equation (2)*

Tariff Classification

Equation (3)*

Equation (2)

Exemptions/ Lower Tariff

Procedures

Equation (3)

Equation (2)

Customs Agreements (Samples)

Equation (3)

Equation (2)

Quantities (Samples)

Equation (1)

Equation (2)

Country of Origin

Documentation and Record Keeping System

* Equations Listed Below

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Customs Transaction Measurement Equations

Equation (1):

100 - (Differences in Values Discovered/ Total Declared Values) * 100

The result of equation (1) must be 95% or more. If the result is 90% to 95%, equation (2)

below will be applied.

Equation (2):

100 – (Number of Sampled Declarations with Error/ Total Number of Samples) * 100

The result of equation (2) must be 95% or more.

Equation (3):

100 – (Differences in Duties Discovered/ Total Declared Duties) * 100

The result of equation (3) must be 95% or more. If the result is 90% to 95%, equation (2)

above will be applied.

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APPENDIX E

Golden List Program of

Jordan Customs

How to Implement Customs Due Diligence and Supply Chain Security

in Your Company

A Guide

For International Trade Supply Chain Companies

(Importers, Exporters, Qualified Industrial Zone Companies, Customs Agents,

Warehouse Operators and Transport Operators)

Prepared by:

Risk Management Directorate of

Jordan Customs

In Cooperation with:

USAID-Funded AMIR Program of Jordan

2005

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PREFACE

Jordan Customs Law No. 20 for the year 1998 allows Jordan Customs (JC) to perform cargo

physical inspections selectively based on pre-established risk management criteria. Jordan

foreign trade volumes escalate and thus JC will not have the capacity or the resources to

physically inspect every cargo shipment. To the contrary, JC believes that inspecting every

cargo shipment will hamper trade and will have unfavorable consequences to Jordan

economy. The Risk Management Directorate within JC was established in 2001 with the

vision of facilitating cargo inward and outward flow while protecting the people of Jordan

and the income of the Treasury. Low risk shipments will enjoy minimal border processing

time in addition to other benefits as permitted by the Law.

During the second half of 2004, JC has initiated a voluntary, self-compliance program, called

Golden List Program (GLP). The program was targeted at Jordan supply-chain companies;

including importers, exporters, Qualified Industrial Zone (QIZ) manufacturers, transporters

and transport operators, customs clearing agents (brokers), and warehouse operators. The

primary aim of the GLP was promoting standards 's trade with other countries. "World

Customs Organization ()"companies and thus, will be treated JC and as well

According to the GLP requirements, supply-chain companies that are exercising customs due


with JC and compliant with Jordan customs law and regulations may qualify to become a

Golden List member. Golden list companies will enjoy a preferred treatment by Jordan

Customs in the form of certain incentives. Companies that do not qualify to become a

member of the golden list can work jointly with JC to make certain improvements to enable

them to join.

Companies are strongly encouraged to voluntarily join the GLP. Doing so indicates that a

company has a strong sense of responsibility towards complying with customs legislation and

supply-chain security needs. It also indicates that a company has the desire and ability to

implement the state-of-the-art best practices.

As part of the criteria for accepting a company on the GLP, the company must have well-

documented “customs due diligence and supply chain security” procedures, and these

procedures have been already implemented and strictly-followed by the company. This

guide is intended to assist all types of supply-chain companies (importers, exporters, customs

clearing agents, QIZ companies, transporters and transport operators, and warehouse owners

and operators) in developing and implementing their own "customs due diligence and supply

chain security" procedures. The guide contains three main sections; the first section is a brief

background on the GLP, the second section describes how a company could implement its

own customs due diligence procedures, and the third section describes how a company could

implement its own supply-chain security procedures.

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BACKGROUND ON THE GOLDEN LIST PROGRAM (GLP)

What Companies are Targeted by the GLP?


compliance program, called Golden List Program (GLP). The program was targeted at

Jordan supply-chain companies, including:

• Importers

• Exporters

• Transporters and transport operators

• Customs clearing agents (brokers)

• Warehouse operators

• Qualified Industrial Zone (QIZ) manufacturers

What is the Aim of the GLP?

The GLP was intends to trade supply-chain companies, boost and enhance the economy of

Jordan. Jordan trade supply-chain companies "World Customs Organization ()"companies

According to the GLP requirements, supply-chain companies that are exercising customs due


with JC and compliant with Jordan customs law and regulations might qualify to become a

golden list member. Golden list companies will enjoy a preferred treatment by Jordan

Customs in the form of certain incentives. Companies that do not qualify to become a

member of the golden list can work jointly with to make certain improvements to enable

them to join.

What is the Rationale Behind the GLP? Today, y Jordan companies, especially those QIZ

demanded to supply-chain was developed to meet these demands. In fact, the GLP meets

Companies requirements of the "secure" companies

trade supply-chain companies

How Jordan Benefits from the GLP?

The GLP will benefit Jordan in many ways including: Companies. GLP offers Jordanian

companies WCO e and Facilitate Global Trade).

How Your Company May Benefit from Joining the GLP?

your company's Customs requirements and supply-you your company he issue of benefits

companies to offer GLP member companies listed below.

companies that attain GLP: a one-to-one basis. (Note: being offered formal benefits

What are the Requirements to Join the GLP?

The following is a description of the main factors that affect the acceptance of a company on

the GLP. It should be noted that these are not the official criteria for companies' inclusion on

the GLP (the official criteria are contained in the document named "How to Join the Golden

List Program") rather, they are a general description of the main features required under the

GLP criteria. The factors described below aim at providing companies with a quick, non-

technical idea about what is expected from them; but, do not compose the official criteria.

Note: JC will undertake an extensive audit on the company to verify the requirement listed

below. The audit takes place at the company premises and, depending on the company size,

may take approximately 3-10 working days to complete.

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Factor 1: Company Size/ Business Volume

The GLP is currently open to larger-size companies according to the following requirements.

For Importers, Exporters and QIZ Companies:

The company must have a large trade volume so that at least one condition of the following

three conditions is fulfilled by such a company:


preceding the date of the application to join the GLP.





For Customs Clearing Agents (Brokers):

The company must have a large trade volume so that at least one condition of the following

four conditions is fulfilled by such a company:

• The company had at least 4,000 customs declarations in total from all customs centers

filed with JC during the year preceding the date of the application.







For Transporters/ Transport Operators and Warehouse Operators:

The company must have been in business for at least five years before filing its application,

or has been in business for at least three years provided that the current number of its full-

time employees is 50 or more.

Factor 2: Customs Due Diligence and Supply Chain Security

To join the GLP, a company must develop and implement "customs due diligence and supply

chain security" procedures according to the relevant checklist issued by JC. Currently, there

are six different checklists:







A company desiring to become a Golden List member must review one or more of the

checklists that is (are) relevant to its business operation. The company then develops and

implements "customs due diligence and supply chain security" procedures addressing the

many questions contained in the relevant checklist(s).

This guide is intended to assist all types of supply-chain companies (importers, exporters,

customs clearing agents, QIZ companies, transporters and transport operators, and

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107

warehouse owners and operators) in developing and implementing their own "customs due

diligence and supply chain security" procedures so that they satisfy this factor (Factor 2).

This guide is restricted to Factor 2 and does not address the other Factors.

Factor 3: Customs Transactions Compliance Rates

This is a technical factor that is attained from examining several sample customs declarations

filed by the company in the last three years. Compliance with customs requirements includes

examining compliance rates with customs value, customs classification (tariff classification),

quantity, etc. It also includes the requirement for good book keeping of all customs

declarations and supporting documents.

Factor 4: Documented Internal Control System

This factor verifies that a company has implemented internal control procedures to ensure

business transactions in general, and customs transactions in particular, are performed with

maximum care; and errors, omissions and violations are avoided.

The presence of an internal control system within a company is considered a strong indicator

of the level of commitment of a company towards avoiding mistakes and obeying all

applicable legislation, including Jordan Customs Law.

Factor 5: Company's Acceptance to Undertake a Suitable Improvement Plan

There is no harm for a company to fail meeting the criteria of the GLP as long as the

company is willing to implement a satisfactory compliance improvement plan. JC will

provide the company with all actual audit results, assist the company to develop and

implement a compliance improvement plan, and make all necessary follow ups in

cooperation with the company to ensure that improvements called for by the plan are

implemented.

If a company is not willing to implement an improvement plan, JC will not be able to include

the company on the GLP.

Factor 6: Company's Success in Implementing its Compliance Improvement Plan

Developing a compliance improvement plan is one thing; implementing the plan is something

else. Thus, the audit team of JC will undertake verification processes, the extent of which

depends on the scope of improvements called for, to make sure that the compliance

improvement plan is actually implemented.

What are the Components of International Trade Supply Chain?

The international trade community includes two main components-- importers and exporters-

- in addition to all other supporting components like freight forwarders, in-land and ocean

transporters, warehouse operators and customs brokers. All these components are sometimes

referred to as “supply chain” because they carry out the duty of supplying goods around the

world. Since all these components are involved in international trade, i. e. moving freight

between different countries, they must deal or transact with customs departments/ services.

An importer and an exporter/ manufacturer participate in an international trade transaction

that is cleared by two-or-more different customs departments. The importer and the exporter/

manufacturer continuously need the services of a customs broker, freight forwarder,

warehouse operator, in-land and/ or an ocean transporter. Thus, customs departments/

services naturally play a pivotal role in international trade; without customs all trade supply

chain components will not be able to do their business.

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What are the Components of Jordan Trade Supply Chain?

Jordan trade supply chain companies include Jordanian importers, exporters/ manufacturers,

freight forwarders, in-land and ocean transporters, warehouse operators and customs brokers.

Jordan supply chain is considered part of the much bigger international supply chain. Jordan

trade transactions with other countries depend heavily on Jordan supply chain companies. As

stated above, the targets of the GLP are all Jordan trade supply chain companies.

What is the Relationship between Jordan Trade Supply Chain and JC?

All Jordan supply chain companies must, one way or another, transact with Jordan Customs

(JC). The trade activities carried out by Jordan supply chain companies are normally cleared

by JC. Thus, the JC plays a pivotal role in Jordan’s trade with other countries; without

Customs all Jordan supply chain companies will not be able to do their business. Both

parties, the JC and Jordan supply chain companies, are considered the backbone of Jordan’s

trade with other countries. The economic and developmental benefits to Jordan from

international trade cannot be realized without both parties working together.

HOW TO IMPLEMENT CUSTOMS DUE DILIGENCE IN YOUR COMPANY

Definition of Due Diligence

In the English language, and according to most dictionaries, “diligent” means “hard-working”

or “putting care and effort into what one does”, or “done with care and effort”. The word

“diligence” is taken from the Latin word “diligens” which means “conscientious”. Due

diligence, as a term, means taking reasonable care in performing a task or a group of tasks.

Obviously, this definition of diligence is clear on one important aspect; it requires effort and

hard-work.

From the legal view point, due diligence (or reasonable care) is the degree of care a

reasonably prudent person would use under like circumstances. This legal definition is very

important in one aspect: the degree of care is legally measured in relative terms rather than

absolute terms. For example, the level of care we expect from a 10-years old kid would be

different from what we expect from an adult. A larger importer who has more business

resources available, for example, is expected to make less customs transactions errors

compared to a smaller importer. Thus, what comprises a reasonable care behavior is really

something relative to what “comparable” others would do under the same circumstances.

Based on the above definitions, due diligence for any business entity (company) means

developing and implementing a system of procedures to carry out business operations in the

“best way possible”. The “best way possible” could mean different things for different

business entities; for example reducing business risks, or reducing legal exposure or liability,

or complying with industry’s code or best practices, or promoting business image within

industry, etc.

Within the international trade supply chain community, due diligence for any supply chain

company (including Jordan supply chain companies) generally means developing and

implementing a system of procedures to carry out business operations in the “best way

possible”. The “best way possible” generally means:

• Complying with customs laws, regulations, instructions and directives. For Jordan

supply chain companies in particular, the Jordan customs law, and all related

regulations, instructions and directives must be complied with.

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• Complying with international and local trade laws (export and import laws, goods

transport laws, prohibited/ restricted materials laws, intellectual property rights laws,

trade marks laws, international/ or multi-lateral trade agreements, bilateral trade

agreements, quota restrictions laws, health and product safety laws, etc.). For Jordan

supply chain companies in particular, Jordan trade-related laws must be complied

with; in addition to all relevant international laws/ agreements.

• Complying with the relevant industry best practices. For Jordan supply chain

companies in particular, relevant industry best practices on the local (Jordan) level,

and preferably the international level should be complied with.

Example on Customs Due Diligence

The following examples are aimed at explaining the due diligence system as applied to

supply chain companies (including Jordan supply chain companies). They are just few

examples to enhance the understanding of the concept, and do not represent an exhaustive

due diligence list. However, it should be noted that detailed and separate "customs due

diligence and supply chain security" checklists for Jordan importers, exporters, QIZ

manufacturers, warehouse operators, transporters and customs brokers are available from JC.

The reader should refer to these lists for in-depth details.

• Example 1: A Jordan import/ export company that has an up-to-date record of the

Jordan customs law and Jordan customs regulations, instructions and directives is

exercising due diligence. In addition, if this company is truly due diligent, then it

should have a written procedure on how to obtain an official copy of the latest Jordan

customs regulations, instructions and directives. A company that does not have this

record, and does not even know how to obtain this record, is a non due diligent

company. The difference is obvious: how can a company comply with a certain law

and relevant regulations, instructions and directives if this company does not even

have a copy of such materials?

• Example 2: A Jordan customs brokerage/ freight forwarding company that has

a well-maintained record of all Jordan customs-related paperwork (or

electronic files) for each customs transaction is exercising due diligence. This

company can provide Jordan Customs, and equally-important its clients, with

an account of all its customs-related transactions when requested. A company

that does not have a well-maintained record, and does not even know how to

keep a good record (or for what purpose), is a non-due diligent company. The

difference is obvious: how can we, the JC, ease-up our paper work

requirements if you, the broker/ forwarder, can not keep your paper work for

later review/ inspection?

• Example 3: A Jordan import/ export company that contracts with a customs

brokerage company to clear its customs-related transactions, but does not have

enough information about the broker’s background or experience, is not a due

diligent company. A due diligent importer/ exporter would worry about

knowing all relevant background information about its customs brokers.

Further, a due diligent import/ export company would have a written list of the

required qualifications expected from its broker. The difference is obvious: if

you, the Jordan importer/ exporter, would really like to have error-free

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transactions with Jordan customs, then you should hire an error-free customs

broker who has good experience in what he does.

• Example 4: A Jordan trucking carrier that does not have a tracking system of

all its operating fleet is not a due diligent carrier. A due diligent carrier would

have a system in place to know where every single truck is at any point of

time. With heightened security risks around the whole world, it is important

for every Jordan carrier to know where every unit of its fleet is located at any

time. A non-due diligent carrier may not even have a way of communication

with its fleet drivers. The difference is obvious: as a Jordan carrier, how can

the JC, and equally-important your clients, trust you with their transit or other

shipments if you do not know where the good are during the day?

• Example 5: As a Jordan exporting company, do you have adequate

information about the reputation of the local/ foreign carrier that transports

your exports to other countries? If not, what could be the reason? A due

diligent exporter surely has this information. The difference is obvious: if

you, the Jordan exporter, are proud of being “due diligent” in choosing your

carrier/ business partners/ service suppliers, then why deal with a “non

diligent” or unknown carrier?

• Example 6: As a Jordan supply chain company, regardless of your line of

business, do you have a good accounting system in place? Is this system

detailed enough to show all your import/ export transactions in terms of goods

types, quantities, prices, etc.? Can we, the JC or any concerned entity, verify

all customs duties and taxes through auditing your accounts? A due diligent

supply chain company would have a good accounting system in place, and

would be proud to be transparent enough with JC and other concerned entities.

The difference is obvious: we, the JC, would like to release your goods as

quickly as possible and would like to expedite your customs transaction;

however, can we verify everything related to your customs transactions via a

later audit (often called goods post-release audit)?

Developing and Implementing a Due Diligence System in Your Company

The following implementation steps comprise the logical sequence for developing and

implementing a due diligence system for any supply chain company. These steps are generic

and may not be exhaustive; thus they should be taken as “guiding steps” to help out

companies get started. Further, it should be noted that detailed and separate "customs due

diligence and supply chain security" checklists for importers, exporters, QIZ manufacturers,

warehouse operators, transporters and customs brokers are available from JC. The reader

should refer to these checklists for in-depth details.

Step 1: Management Commitment

Management commitment to developing and implementing due diligence procedures is the

most vital step to start with. The management of the company should carefully read the

benefits of the GLP outlined above, and then make a yes/ or no decision regarding its interest

in the program. The company will not be able to join the GLP unless it develops and

implements an appropriate due diligence system. If the company decides not to join the GLP,

and thus not to proceed with developing a due diligence system, then there is no sense of

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moving to the next step. However, if the management decides to join the GLP and proceed

with implementing a due diligence system, then the rest of the below steps will be a matter of

routine work.

Step 2: Coordinate Your Work with JC

The JC is the pivot around which all supply chain companies revolve. JC has already

established a Risk Management Unit to assist you in developing your own due diligence

procedures. Thus, work closely with this Unit and make sure that all Customs requirements

are included in your due diligence procedures. If you aim to benefit from any incentives to

be offered by JC, for example to become a Golden List Company, then you must

accommodate all the requirements.

Step 3: Understand Customs Requirements

• Always remember that “ignorance of the law is no defense". Therefore make sure to

conduct a thorough review of Jordan customs law, regulations, instructions and

directives.

• Make sure that you have an up-to-date copies of all revisions made to the customs

law, regulations, instructions and directives.

• Identify the articles in the law, regulations, instruction and directives that apply to

your business operations. Always read each law article within the context of its

applicability to your day-to-day business activities. Always think to what extent you

really complied in the past with each relevant article. Ask yourself: how can I comply

with each relevant article?

• Ensure that others in your company are made aware of their responsibilities under the

customs law, regulations, instructions and directives. Ask yourself: do I have a

system in place for making this information available to my employees; i.e. via

memos, notices, newsletters, etc.

• Ask yourself: do I have a senior staff member to do the aforementioned reviews? Do

I need an outside expert?

• Ask yourself: how can I make sure to obtain copies of all new customs law

amendments, new regulations, new directives and new decisions?

• Ask yourself: are my employees, especially seniors, well informed of the relevant

customs law articles?

Step 4: Understand International Trade Requirements

• Make sure to have up-to-date copies of all trade laws, regulations, agreements and

special requirements pertaining to your business operations. Think of all the laws

and regulations, other than Jordan Customs Law, that might have a direct or indirect

impact on your business activities.

• Ask yourself: am I affected by the Ministry of Industry and Trade requirements (i.e.,

Import and Export Law)? Am I affected by the Ministry of Agriculture requirements?

Am I affected by the Ministry of Health Requirements? Am I affected by any

requirements stipulated by Jordan Government agencies other than JC? Do I have

up-to-date copies of all such requirements?

• Ask yourself: am I utilizing any trade agreements between Jordan and other

countries? Do I understand all the requirements/ stipulations of such agreements?

What are the most relevant articles to my business activities? Do I have up-to-date

versions of such agreements?

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Step 5: Understand Industry Requirements

• One way or another, all industries have their own best practices. International and

local industry associations usually develop generic best-practice procedures for their

member companies; make sure to have them updated and handy in file.

• Ensure that the practices at your company reflect the industry best practices.

However, beware that your industry standard of best practices may not be sufficient;

try to beat them.

• Even when such best practices do not exist, always look up to the “best” companies in

your line of business and ask yourself: how can I become like them? Seek assistance

from them through your trade association or through direct contact.

Step 6: Try to be Objective

• In performing steps 3, 4 and 5 above, you need to be objective. Always

remember that in doing steps 3, 4 and 5 your aim is to find your own

limitations to set up certain procedures to overcome them; so, be objective and

do not get disappointed when finding many limitations. Always remember

that your due diligence system is supposed to overcome your limitations; if

you are already perfect, then you do not need a due diligence system.

• If you are not sure of being objective enough, invite an outside consultant/

expert to help you out. Experts usually can see more insights into your

business activities; not because they know better than you, but because they

have seen other companies in your line of business.

Step 7: Keep Pro-Active

To insure your compliance with the Customs law and all other trade laws, agreements,

requirements, etc. affecting your business activities, you need to be pro-active:

• Develop specific policies and procedures on how to perform your business

activities according to all relevant laws, regulations, agreements, requirements,

etc. (see steps 3, 4 and 5). The level of details for each policy/ procedure

should be in light of the likelihood of the harm that could result (for example,

the amount of penalty that may be assessed by Customs). The policies and

procedures should be distributed to all existing and newly assigned employees,

and should be systematically revised as circumstances warrant (i.e., changes in

law). Remember, six "customs due diligence and supply chain security"

checklists were prepared by JC to assist you carry out this step; review the list

relevant to your line of business.

• Train your employees on the developed policies and procedures. Your

employees should receive training to reinforce the adoption of the developed

policies and procedures. Training can be done internally or externally. A

record should be kept of who has been trained, what specifically they have

been trained in, when training last took place, etc.

• Communicate the developed policies and procedures on an on-going basis.

There should be a system in place to have the developed policies and

procedures communicated to new employees or transferred employees, and re-

communicated when material changes occur. For example, memos should be

distributed to all departments when changes in policies and procedures occur.

• Monitor adherence to the developed policies and procedures. Such monitoring

might be assigned to one of the senior staff members, or to all departments’

managers as part of their jobs descriptions.

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• Enforce compliance with the developed policies and procedures. Most often,

management is given the authority to enforce compliance. However,

regardless of who is given the enforcement authority, good records must be

kept of all enforcement activities like warnings, terminations, etc.

Step 8: Keep Good Records

Good record-keeping is always a strong signal of good management. A good system of

keeping all business activity records is a proof of your due diligence, and also a measure of

how you are carrying out the responsibilities of your work.

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HOW TO IMPLEMENT SUPPLY CHAIN SECURITY IN YOUR COMPANY

Jordan trade companies with the need for supply chain security include Jordanian importers,

exporters/ manufacturers, freight forwarders, in-land and ocean transporters, warehouse

operators and customs brokers. Jordan supply chain is considered a small part of the much

bigger international supply chain. Jordan trade with other nations depends heavily on Jordan

companies with active supply chain security systems.

Jordan Customs (JC) is issuing this guide to assist your company implement or improve a

supply-chain security management system to enhance the overall security of your business

operations. Is it important that all trade companies operating in Jordan review this

information and take appropriate steps to minimize their security risks.

The security management system described in this guide complies, generally, with the

principals set out in the:

1. The International Shippers and Freight Forwarders Security Code—Draft Rev. 4 by

United Nations Center for Trade Facilitation and Electronic Business (UN/CEFACT).

2. “High Level Guidelines for Co-operative Arrangements Between WCO Members and

the Private Sector” to increase supply chain security, as adopted by the WCO in its

general assembly in June 2003.

3. United States C-TPAT guidelines on supply chain security.

4. International Ship and Port Facility Security Code (ISPS Code) by the International

Maritime Organization.

5. BASC (Business Anti-Smuggling Coalition) Standards by the World BASC

Organization.

Why Supply Chain Security is Important

As concern grows that combating security threats is becoming more and more important to

countries, supply chain security has become a vital response mechanism. JC, and luckily

many Jordan companies, realize the importance of the supply chain security issue. Notably:

• Supply chain security has become an international mandate. It is expected in

the near future that all international trade activities will be carried out through

secure-only supply chains.

• Supply chain security reduces customs clearance times at borders. Thus,

Jordan companies implementing security management systems will have a

competitive trade advantage over others.

• Supply chain security has become a powerful marketing tool. Jordan

companies implementing security management systems will be preferred as

trade partners over other companies.

• Supply chain security is very important to Jordan and Jordan’s trade partners.

To make better use of Jordan free trade agreements with the United States

(US) and the European Union (EU), Jordan companies must enhance their

supply chain security management systems.

• Enhanced security will prevent the use of the logistics chain to cause harm to

life, property or the environments.

• Enhanced security will prevent any illegal intervention in the supply chain

which could cause serious delays and hence considerable economic damage.

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• Enhanced security in the supply chain will reduce other losses like theft and

damage.

General Security Requirements

• Management Commitment: Top management should provide evidence of its

commitment to the development and implementation of the security

management system. Top management should communicate to the company

the importance of security awareness. Also, top management should establish

a security policy, security objectives, conduct management reviews and assure

the availability of resources.

• Security Manual: A company should establish and maintain a security manual

that includes the scope of the security management system, including a clear

description of the processes which the company undertakes. (The security

manual may be part of a more comprehensive due diligence system to insure

self regulated compliance.) The interaction between the processes and the

facilities covered by the security management system should be described in

the manual. Also, a description of the interaction between the relevant

authorities (e.g. Customs, Police, Civil Defense Departments) and the

company should be included.

• Records: Records should be established and maintained to provide evidence

of conformity to requirements of the security management system. Records

should remain legible, readily identifiable and retrievable. A documented

procedure should be established to define the controls needed for the

identification, storage, protection, security retrieval, retention time and

disposition of records.

• Security Assessment: The security assessment is an essential and integral part

of the process of developing and updating the security management system

and is the delegated responsibility of the company security officer. The

security assessment should be carried out by the company, with the assistance

of a qualified third party if deemed necessary. The security assessments

should periodically be reviewed and updated, taking account of changing

threats and/ or minor changes in the company or its facilities and should

always be reviewed and updated when major changes to the company or its

facilities take place. The security assessment should include, at least, the

following elements: a) identification and evaluation of facilities, process steps

and documents which are important to protect; b) identification of possible

threats and vulnerabilities to these facilities, process steps and documents and

the likelihood of their occurrence, in order to establish and prioritize security

measures and define restricted areas; c) identification of weaknesses, including

human factors in the facilities, policies and procedures; d) identification,

selection and prioritization of counter measures and procedural changes and

their level of effectiveness in reducing vulnerability. Upon completion of the

security assessment, a report should be prepared, consisting of a summary of

how the assessment was conducted, a description of each threat and

vulnerability, found during the assessment, and a description of counter

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measures that could be used to address each threat and vulnerability. The

report should be protected from unauthorized access or disclosure.

Personnel Security

Company personnel are always under the risk of being pushed or convinced to cooperate with

illegal activities beyond their actual functions. Human resources may be the weakest link or

the strongest one in the risk prevention chain. With selection processes we may avoid that

the main interest of a new company employee would not be to work for the company but to

work against it. Below are some recommendations for improving the security of your

personnel.

• Data on the Applicant: Your company should have a detailed application

questionnaire to be filled out by all candidate employees. The application

form should ask for all personal data and a complete employment history.

Answers to questionnaire questions should be handwritten and the form should

be duly signed. This standard procedure creates a feeling of responsibility in

the applicant.

• Data checking: Once the applicant delivers the form, a person from your

company should check the information. Previous work history and personal

character should always be verified from previous employers.

• Interview: Once data is checked, it is advisable to interview the applicant.

Oral questions should be asked about the data included in the application

form. During the interview, the interviewer should try to find out about the

character, motivation and honesty of the applicant. Your company’s policies

against theft, illegal trafficking, terrorism, piracy, etc. should be stressed so as

to know about the applicant’s position on those issues.

• Induction: After being formally hired, it is necessary for the new employee to

receive an induction on security standards, restricted areas, identification

cards, and who should be advised about irregularities. The new employee

should also be trained on the ways to recognize that his/ her peers are

participating in illegal activities. All employees handling cargo or handling

documents must know your company’s security requirements and the

consequences of non-compliance.

• Maintaining Personnel: Human resources of your company are constantly

studied by criminal organizations that want to use them, convince them or

dissuade them about the possible additional benefits that they may obtain. A

periodic review on aspects such as behavior, proposals received from external

agents, observations on other peers, their social and economic situation, new

friends, will make your employee feel protected and at the same time

responsible towards the company. Also, you will demonstrate that you are

concerned for your employee, that you care and the most important thing, that

you know him/ her. A bi-annual home visit plan for employees, in which

observations are made about changes in life style, will be vital as a control

mean and as a prevention mechanism against internal conspiracy.

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• Preventing Internal Conspiracies: Criminal organizations require a connection

at the companies in order to create a criminal association. “Internal

conspiracies are when groups of employees within the company are engaged

in illegal activities.” The need of using company people is because they know

processes and data, operation and security procedures and because they have

physical access to different areas. People with the ability to become familiar

and with good human relation skills might be beneficial or dangerous. For

control positions to provide service to external users with the responsibility of

delivering or accepting cargo or documents, it would not be advisable to have

that skill.

• Incentives: Some incentives for those individuals or employees making

reports on activities related to suspicious aspects or vulnerable processes allow

the creation of a dissuasive environment and a continuous improvement of

safety and security standards.

Physical Security

Physical security is another important dimension of securing your company’s business

operations. Physical security focuses on the company’s buildings, premises, storage areas,

parking, gates, etc. Below are some recommendations for improving the physical security of

your business.

• Cargo Storage Areas: All buildings used for cargo storage and the related ones should

be built with resistant materials that would prevent illegal entry. Structure integrity

should be maintained through periodic inspection and repair. Doors and windows

should be secure. Restricted areas and their access control should be well signaled.

• Perimeter Fencing: The basic principle is to have physical barriers to avoid access of

non authorized vehicles or individuals to a company plant. Fences or division walls

sufficiently separated from buildings so as to have reaction time and observation

possibilities. No debris or trees should be close to the fence since they could be used

as support elements to violate integrity. Periodical inspection of the fence is required

to verify its condition.

• Doors: The number of doors should be the minimum necessary to provide adequate

access to the plant and to cargo storage areas. Doors should provide a defense against

non-desired access of vehicles and individuals. Doors should have physical security

barriers and people to control them. Signals and warnings should be placed on doors

regarding the responsibility and company procedures to notify about criminal events

that might take place in company facilities.

• Lighting: Adequate lighting should be provided for entry areas or gates, storage and

cargo operations areas, perimeter fencing and parking areas. It is recommended to

have an emergency lighting system for valuable cargo storage areas or for vital

process execution areas.

• Locks and Key Control: Locks and keys used in building doors and equipments

should have the necessary protection to avoid the access of non-authorized

individuals. Key and lock control should be handled by the person in charge of the

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area or by security personnel. It is recommended that your company has a key storage

closet with its key always carried by the shift security person. Also, it is

recommended to have a document to record the reception and delivery of high risk

area keys.

• Guard Booth: Facilities where large amounts of cargo are handled, especially for

export purposes, should have guards and booths in all vehicle entry and exit gates

during working hours. Automatic access control systems such as defense bars and

gates allow better control over the security activity. Emergency lighting system is

vital to avoid sabotage.

• Parking: Non-company cars should be forbidden from parking in the cargo area and

in the areas close to cargo storage buildings. Security service should control

employee-parking access. Employee parking should be separated from visitor

parking.

• Communications: A good communication service should exist between company

guards and security authorities. Resources such as telephone, portable radios, and

alarm systems should be used. An emergency electric power system is vital for the

continuity of security functions.

• Access Control: Without physical access to plants or areas it is impossible to have

thefts, illegal traffic, terrorism and piracy; thus it is important to have access control.

If fewer people have access to documents, cargos and/ or storage areas, the possibility

of risk will be lower. There should be control on the time people have access to

facilities, especially cargo storage areas. Inactivity should not be allowed in sensitive

areas. A hanging map showing restricted areas for each type of employee, visitor and

user is highly recommended. Signs advising customers and users about the

importance of security and company standard compliance should be placed in

conspicuous locations.

Operations Security

Operations security is yet another dimension of securing your company’s business operations.

Operations security focuses on the company’s security officer in charge, security of the

sensitive jobs, employees' identification and training. Below are some recommendations for

improving the operations security of your business.

• Security Officer: Depending on the size of your company, you may consider having a

security organization to protect your business operational activities. A company

representative should be appointed as a security officer and should be in charge of all

security duties. Security personnel should wear different uniforms from other

employees.

• Sensitive Jobs: All people working in sensitive jobs, especially those responsible for

cargos, documents and valuable items, should go through a careful pre-hiring

background checks.

• Identification Systems: All company personnel and in general, all personnel that have

access to the company areas should be duly identified. Identification, whether by

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color number or inscription, should indicate the areas the person is authorized to have

access to. Identification cards should be used and should have, as a minimum, the

employee physical characteristics, a color photograph, signature and a reasonable

expiration date. All personnel should carry the identification in a visible place. For

administrative personnel, the card may be a hanging batch or a batch clipped in the

right pocket. For operations personnel, a bracelet is used (industrial safety standard)

to avoid losses and accidents. Use reflective vests or different color uniforms for each

sensitive area in order to have more visual recognition, especially when monitoring

cameras are used.

• Security Knowledge and Training: The company should have programs to train all

personnel with respect to security policies and practices as part of its operations.

Cargo Handling Security

Security measures should be implemented in the plant during the course of cargo reception

and delivery, including handling empty and full containers. Below are some

recommendations for improving the security of cargo handling processes.

• Empty Containers: Empty containers received at the plant to be stored or filled out

should be checked (for general cargo or refrigerated cargo). The check of the empty

containers should be made at the time of arrival, and again at the time of filling. This

is important to prevent a structure modification to the container for trafficking in

illegal goods.

• Full Containers: Filling containers with cargo should be done with the presence of

security personnel. Also, handling full containers from the storage area or from the

plant should be security-supervised.

• Reception and Delivery of General Cargo: Forms or registry books should be kept of

all cargos received or delivered. Record the entrance and exit time of all cargo loads,

names of persons receiving and delivering, amounts of cargo by packing unit type,

packing condition and security seal or stamp. If there is a problem with packaging,

evidence should be recorded with a photograph and scale weight record.

• Inspection of Non Company Vehicles: All non-company vehicles should have

restricted access to operation areas. However, when allowed access, these vehicles

should be inspected or, preferably accompanies by security personnel. The method of

inspecting such vehicles should be well documented and adhered to at all times.

Documents and Data Security

Efficacy of your company’s security standards for facilities and operations depend on the

control of documents and data. Documents with which you receive, pack, unpack, transport,

deliver or transfer the responsibility from your company to another, or from one area in your

company to another, are especially important. Below are some recommendations for

improving documents and data security of your business.

• Documents Access and Responsibility: Limit as much as possible access to data or

information. Implement clear procedures for documents responsibility. Set closing

processes and confrontation processes between operating activities and documents

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generated by them. Set up formal delivery procedures and information files. Have a

secure area for storing documents and information.

• Cargo Documents: All personnel working with cargo documents have the

opportunity to recognize suspicious shipments that should not be received nor

transported. In the event it is already in the facilities, the responsible agencies in

charge of control should be notified. Careful examination is required of all cargo

documents, transportation agreements, invoices, customs documents and others. An

accurate account must be kept of all cargos handled or received. Only legible

documents should be processed; illegible documents should be replaced or else

rejected. Documents confidentiality should always be protected. Only authorized

signatures should be accepted. Identification of authorized persons should be

checked. Clear procedures should be set to notify about suspicious activities.

• Signatures and Stamps Policy: The signatures and stamps policy is generally

applicable to document preparation processes, application of seals, breaking seals,

physical count of parts, individuals checking, cargo and opening the vault.

Documents with which responsibility over cargo is transferred or when a service is

provided should be signed by the person delivering it and by the one receiving it.

Besides the signature, it is vital to stamp time and date with a printing clock. Only

official employees of the company may sign relevant documents on delivery,

reception, or responsibility transfer over a good.

• Last-Minute Shipment Documents: Experience showed that last minute documents

received under pressure are largely used by criminal organizations to avoid risk

analysis of suspicious shipments and authority controls. Thus, there should be a

defined policy to receive documents with sufficient time in advance for cargo entry or

exit. A special control should in place to handle last minute shipments. A clear

process should be in place on how to advise authorities about a last minute shipments.

• Computerized Documentation: Information systems represent great help to increase

security standards levels on administrative processes supporting physical operations.

There are two types of computer information crimes; one in which the actual victim is

the system (software or hardware damage) and one in which the system is used as an

instrument for illegal actions. Thus, there should be a system access control

mechanism, and preferably a discriminating users ability. Physical security in the

servers area should be provided. Backup processes should be implemented

frequently.

Specific to Forwarders and Transporters

These specific requirements are applicable to all companies who are engaged in the moving

of containers by road, rail or inland waterway.

• Only containers are accepted to be loaded on the company means of conveyance

which are properly marked, and have the correct weight and documentation.

• Containers, whether loaded or empty, only should be loaded when they are tamper

proof sealed and this sealing is properly documented.

• Containers are moved according to pre-defined schedules, including routes and stops,

and unexpected delays and deviations are to be reported to the company.

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• Origin site should pre-alert destination site before shipment. Such pre-alert should

contain as a minimum: departure time, expected arrival time, transport companies

name, employee name, and seal numbers.

• Security pertinent equipment should be properly maintained and calibrated.

• Before loading, at departure and after each prolonged stop, seals should be checked

for tampering, all readily accessible areas should be physically searched and internal/

external compartments and panels should be secured. These checks should be

recorded and records be kept for at least one year and be accessible to other

participants in the supply chain for verification.

• Control cabins of means of conveyance, when not manned, are kept locked at all

times and only employees of the company are allowed to have access.

• Documentation containing cargo information is kept secure in the control cabins.

• Control cabins are equipped with an intrusion alarm.

• Procedures should be in place for reporting when unauthorized personnel, un-

manifested materials, or signs of tampering, are discovered.

• No prolonged stops should be made at isolated locations, unless such location is

equipped with adequate lightening and fencing.

• Vehicles should only make prolonged stops at locations which are equipped with

adequate lightening and fencing.

• Vehicles should not be left unattended.

Specific to Warehouses, Storage Areas and Terminals

These specific requirements are applicable to all companies who, as part of their operation

are engaged in the storage of cargo and/ or sealed containers in warehouses, on storage areas

and terminals, independent of nature and size.

• All cargo entering the warehouse or storage area should be properly marked, weighed

counted, documented and inspected for the absence of illegal goods or attributes.

• That all containers entering the premises are properly sealed and that the seal is

compliant to its documentation.

• That all cargo and containers are compliant with their documentation and manifests.

• That received containers, when emptied, are sealed again and that such sealing is

properly recorded.

• Adequate maintenance and calibration of any security pertinent equipment should be

made.

• Warehouses and storage areas for outward bound cargo as well as terminals should be

identified as restricted areas.

• Unauthorized access to facilities should be prevented.

• Access controls should include positive identification and recording of all employees,

suppliers, visitors, and vendors on site.

• Visitors should not be allowed to move around the facilities without accompaniment

of an employee.

• Unauthorized / unidentified persons should be challenged.

• Authorization to access restricted areas should be clearly visible.

• Security codes, cards and/ or keys should only be submitted to authorized persons for

which records should be held.

• The identification of lorries, entering or leaving the premises, and their drivers and

passengers should be recorded.

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Specific to Stuffers and Packers

These specific requirements are applicable to all companies who, as part of their operation

are engaged in the stuffing, packing, loading, re-loading or consolidating and consecutive

sealing of containers, independent of their size and type of processes of this operation.

• The designated company security officer or one of his designated deputies should be

physically present during loading/ unloading of the container and supervise the

introduction or removal of cargo into/ from the container. This measure is to prevent

the infiltrated of unauthorized weapons or any other dangerous substances.

• Inspection of empty or partially loaded containers to detect any security breach,

immediately before loading.

• The supervision mentioned above should be uninterrupted from the start of the

inspection until the container is sealed.

• The supervision should include verification that seals on received containers are intact

and conform to the appropriate records.

• Marking, weighing, counting and documenting of cargo entering the container is

properly performed.

• All cargo should be compliant with its documentation and manifests.

• The designated security officer (or his deputies) should seal the closed container with

an approved tamper proof seal immediately upon loading and properly record the data

of this seal.





of an employee.


• Authorization to access restricted areas should be clearly visible.



Specific to Information Processors

These specific requirements are applicable to all companies (including brokers, agents etc,)

who as part of their operation are engaged in the receiving, processing or forwarding of

information to the Jordan Customs or other parties in the supply chain.

• Complete, legible and accurate documents should be submitted timely to Customs.

• An analysis should be made of the vulnerability of information systems, the relevance

to security of data and the implementation of adequate safeguards and firewalls.

• Access authorization system should be implemented to protect computer systems and

computer data against exchange, loss or introduction of erroneous information.

• Security critical information should only be accessible by authorized personnel and

that the users of this information can be traced back.

• Routines should exist to securely cope with break downs and secure back-up routines

should be followed.

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• The transporter or forwarder should be informed when during the processing of

information it is noted that the progress or movement of containers deviates from pre

defined schedules.

• Overages and shortages, as well as other anomalies, observed during the processing of

information, should be reported not only to the customs, but also to the company(s)

responsible for the processing of the cargo.





of an employee.




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APPENDIX F

GLP- Questions and Answers Brochure

Golden List Program: Security, Protection and Opportunity - Be the Winner

Jordan Customs Contact Details

- Contact Details: Traditional and Non Traditional Contact Details.

- Add some colored Photos from JC.

- Jordan Customs Logo.

- The Golden List Program Logo.

What is the Golden List Program (GLP)?


compliance program, called Golden List Program (GLP). The program was intended to

enhance customs due diligence and supply chain security of the trade community of Jordan.

The program was targeted at Jordan supply chain companies including importers, exporters,

transporters and transport operators, customs clearing agents, warehouse operators and

Qualified Industrial Zone manufacturers (manufacturers qualified for duty-free export to the

United States). According to this program, supply chain companies that are exercising

customs due diligence, have supply chain security procedures in place, have a good

compliance history with JC and compliant with Jordan customs law and regulations might

qualify to become a Golden List member.

What is the Mission of the Golden List Program?

"The GLP is a voluntary, self-compliance program aimed at enhancing customs due diligence

and supply-chain security within the trading community of Jordan, and, at the same time,

facilitating Jordan's trade with other countries. The program improves the performance of

Jordan enterprises, boosts the trading sector, and enhances the growth of the economy. The

program encourages and assists enterprises to implement the state-of-the-art and

internationally-recognized procedures with respect to customs transactions and security of

trade supply chains. The program complies with the World Customs Organization (WCO)

Framework of Standards to Secure and Facilitate Global Trade which came into effect in

June, 2005. Jordan enterprises joining the GLP will be perceived as "diligent" and "secure"

enterprises, and thus, will be treated favorably by their international counterparts. The

targeted community of the GLP is all enterprises in Jordan that participate in the international

trading activity; including importers, exporters, manufacturers, transporters, customs brokers

and warehouse operators." The GLP will benefit:

� Jordan's Economy. The GLP enhances the competitiveness of the trading sector of

Jordan locally and internationally and consequently improves Jordan's economy.

� Jordanian Enterprises. The GLP offers Jordanian enterprises a great opportunity to:








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� Jordan Security. The GLP enhances borders security, protects cargos and people, and

help prevents terrorist acts.

� International Best Practices. The GLP makes Jordan a pioneer country with respect to

compliance with internationally-recognized best practices (such as the WCO

Framework of Standards to Secure and Facilitate Global Trade).

� International Aid Agencies. The GLP demonstrates the success of international aid

agencies in Jordan.



What are Objectives of the Golden List Program?

The GLP of is expected to achieve a number of desirable objectives including:

1. Enhancing and protecting the income of the Treasury.

2. Improving customs processing procedures at border crossings via focusing on high

risk cargo shipments.

3. Expediting customs processing procedures and goods release for low risk shipments.

4. Facilitating Jordan trade with other countries.

5. Upgrading customs work to meet international best practices.

6. Improving the mechanisms of collecting customs duties and other taxes.

7. Encouraging companies to implement international best practices in general and with

respect to their customs transactions in particular.

8. Supporting the economy of Jordan via a viable and strong trade sector, and making

Jordan an attractive environment for foreign investments.

9. Creating a real partnership between JC and the business sector of Jordan towards

achieving the national objectives.

10. Creating mutually rewarding relationships and partnerships with foreign Customs

Services/ Departments so that cargo information could be transacted before hand.

11. Creating mutually rewarding relationships and partnerships with foreign Customs

Services/ Departments so that customs knowledge, especially with respect to risk

management techniques, could be transferred.

12. Enhancing "early" customs control mechanisms with respect to cargo shipments.

13. Enhancing JC ability to cope with international trade challenges.

14. Creating a culture of self-compliance with customs and supply chain security

requirements within the trade community of Jordan.

15. Enhancing supply chain security of international cargo shipments.

16. Reducing the costs of cargo processing at border crossings.

17. Applying the state-of-the-art techniques according to international best practices in

customs procedures.

18. Enhancing the competitiveness of the trade community of Jordan in the international

markets.

What Types of Organizations Can Apply to Join GLP?

� Large manufacturing, trade and trade-supportive services organizations.

� Qualified Industrial Zone (QIZ) manufacturers operating in Jordan.

� Small and Medium Size Enterprises (if they qualify).

� Importers.

� Exporters.

� Transporters.

� Transport Operators.

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� Freight Forwarders.

� Customs Clearing Agents.

� Warehouse Operators.

Why Organizations Need To Join the Golden List Program?

Today, many Jordan enterprises, especially those operating from QIZ areas, are asked to

implement minimum security procedures to prove to their trading counterparts that they are

“diligent” and “secure” partners. The GLP meets all internationally-recognized supply-chain

security requirements or recommendations. The rationale behind all security procedures

world-wide, including supply-chain security procedures, is that the current local and

international environments stipulate maximum anti-terrorism procedures. Risky shipments

are perceived as a security threat to all countries alike and must be removed from the

international supply chains. Enterprises that comply with the GLP procedures will be more

efficient in their business operations, and will be recognized as “good” enterprises by JC and

the international trading community. Another fact is that Jordan enterprises need to

recognize that, sooner or later, they have to apply the state-of-the-art international best

practices, including those pertaining to customs transactions and supply-chain security; which

may become a prerequisite for entering global markets. Thus, the new global international

trading environment, global anti-terrorism precautions, WCO standards, and the information

technology revolution have changed the substance and shape of today’s business practices.

Today’s enterprises are quite different than before, and quite surely, are required to pay

extreme attention to the security of their business transactions.

What Distinguishes the GLP from the Current Customs Practices?

� The GLP is considered a comprehensive "customs due diligence and supply-chain

security" program that implements internationally-accepted standards.

� The GLP has gained a strong support from the Government of Jordan as represented

by JC and other relevant organizations.

� The GLP is compatible with the requirements of the WCO Framework of Standards to

Secure and Facilitate Global Trade.

� The GLP has benefited from other similar programs like the C-TPAT program of the

United States and the PIP program of Canada.

� The GLP has benefited from the international expertise provided by the United States

Agency for International Development (USAID).

� The GLP protects against terrorists acts and, in the awake of the terrorist acts that took

place in Jordan on November 9, 2005, Jordan needs such a program.

� The GLP enhances the contribution of JC and Jordan trade organizations to the

trading sector, and consequently, to the economy of Jordan.

� The GLP, as a risk management tool, is superior to the traditional customs practices

that do not allocate customs resources based on a sound risk management

methodology.

� The GLP is a great opportunity to Jordan enterprises to gain a unique management

experience.

Are there Opportunities due to joining the Golden List Program?

Yes, a wide range of opportunities exist for organizations joining the GLP, including:

� Increasing Jordanian enterprises return on investment, profits and sales

volumes, especially from doing business in international markets.

� Paving the way to Jordan enterprises to enter new international market

segments.

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� When international recognition of the GLP is achieved, especially by Jordan

main trading partners, ample business opportunities in several countries could

be accomplished.

� Marketing Jordan and Jordan enterprises to the international community as a

"secure" country with "secure" enterprises.

� Establishing and sustaining strategic relationships with key international

trading partners such as the United States and European Union Countries.

What are the Benefits to Your Organization from Joining the GLP?

The GLP aims at enhancing Jordan trade community's self-compliance with customs

requirements and supply chain security best practices. However, these enhancements would

not materialize without paying a price for them. The question then, is the trade community is

willing to pay the expense without any direct benefits or incentives? Obviously, the answer

is no. That is why on several occasions JC has debated the issue of benefits/ incentives with

a number of enterprises from the trade community of Jordan. After lengthy debates, JC has

approved to offer GLP member enterprises a number of "direct" benefits/ incentives. In

addition, the GLP has a number of "indirect" benefits that are not related to JC. Both direct

and indirect benefits are shown in the following two sub-sections.

Direct Benefits

JC will offer the following benefits/ incentives to all enterprises that gain membership in the

GLP.

� Reduced frequency of cargo shipment inspections by JC (more frequent use of the

green-lane processing at all border crossings). GLP member companies will enjoy

expedited customs border processing.

� Reduced goods post-release compliance audits. Customs inspections of companies’

books to verify duty payment and general compliance with the customs law will be

less frequent for GLP member companies.

� Pre-arrival clearance of goods. Completion of customs transactions formalities will

take place before goods arrival for GLP member companies.

� Minimum levels of financial penalties. GLP member companies will enjoy the

minimum levels of penalties when inadvertently make an error on a customs

transaction. In addition, fines might be paid in installments without interest. (This

facility will depend on the monetary amounts owed to JC and the duration for paying

such amounts).

� Goods release before completing customs formalities. GLP member companies could

take possession of their goods against certain securities before completing customs

formalities.

� Security facilities. GLP member companies will be able to benefit from taking

possession of their goods against lesser financial securities.

� Clearance of goods during off-work hours. Customs will strive to clear goods for

GLP member companies even during customs off-work hours.

� JC will recognize the GLP member companies via publishing their names on JC

website. (This is an important feature to the GLP as JC continuously validates the

status of a GLP member company.)

� JC will seek recognition of the GLP from other countries, which will reflect positively

on GLP member companies.

� Annually, JC will declare the best three companies on the GLP and will recognize

these companies via a celebration event.

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� JC will continue to negotiate additional benefits with all GLP member companies on a

one-to-one basis. (Note: The JC will take care in the one-to-one benefits to recognize

the advantages of tailoring customs services to the client needs but at the same time

maintain a transparent process.)

Indirect Benefits

In addition to the above benefits offered by JC, GLP member companies, because they

implement the state-of-the art best practices of customs due diligence and supply-chain

security, are expected to enjoy the following benefits as a natural outcome.

� Reduced customs transactions costs.

� Being on the GLP is a marketing tool for your organization.

� By being on the GLP, your organization is considered compliant with the state-of-the-

art international best practices.

� Reduced operating costs for your organization.

� Your organization is less likely to make errors and mistakes, thus less likely to be

exposed to legal litigations.

� GLP is a management tool to encourage the careful assessment of business

operations.

Who is involved in Implementing the GLP?

The key stakeholders of the GLP include the following organizations:

� Jordan Customs (JC)- a governmental organization.

� Jordan Enterprise Development Organization (JEDCO)- a governmental organization.

� Jordan Investment Board (JIB)- a governmental organization.

� Jordan Exporters Association (JEA)- a private sector representative organization.

� International Aid Agencies.

� Jordan Embassies abroad.

How Can an Organization Join the GLP?

The following two technical guides are published by JC to assist your organization

throughout the whole process of joining the GLP. Both guides are available for free from JC.

� How to Join the Golden List Program: A Guide for International Trade Supply Chain

Companies. Prepared by the Risk Management Directorate of JC in cooperation with

the USAID-Funded AMIR Program of Jordan, 2005.

� How to Implement Customs Due Diligence and Supply Chain Security in Your

Company: A Guide for International Trade Supply Chain Companies. Prepared by

the Risk Management Directorate of JC in cooperation with the USAID-Funded

AMIR Program of Jordan, 2005.

Will the Required Information our Organization Provides to JC in the Process of

Joining the GLP be Kept Confidential?

Yes, strict confidentiality will be kept and all information provided to JC will not be

disclosed to a third party under what circumstances as long as such information is legal.

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Where Can my Organization Obtain More Information on the GLP?

Any organization interested in joining the GLP can get further information by contacting the

Risk Management Directorate of JC per the following contact details:

The Risk Management Directorate

Jordan Customs

P.O. Box 90

Amman, Jordan

Tel: 962-6-462-3186/ 88

Fax: 962-6-464-7791

E-Mail: [email protected]

Thank You Very Much for Reading our Brochure

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APPENDIX G

Golden List Program Marketing Strategy

PHASE I

SITUATIONAL ANALYSIS

MARKET DEMOGRAPHICS

The most important targeted markets (organizations) for GLP are large manufacturing, trade

and trade-supportive services organizations, as well as Qualified Industrial Zone (QIZ)

manufacturers operating in Jordan. These organizations will be voluntarily called to

participate in the GLP through implementing the customs due diligence and supply-chain

security procedures to meet the international trade security requirements. Small and Medium

Size Enterprises (SMEs) will be an attractive market segment to be invited to participate in

the program, and should be encouraged and offered the opportunity to implement the GLP

requirements, and thus acquire membership. The attractiveness of the SMEs segment is

twofold: first, there is a very large number of SMEs in Jordan, though the majority are small

in size compared to SMEs in developed countries, second, the GLP is seen as an excellent

venue for SMEs to seek business opportunities in the international markets.

MARKET NEEDS

Today, many Jordan enterprises, especially those operating from QIZ areas, are asked to

implement minimum security procedures to prove to their trading counterparts that they are

“diligent” and “secure” partners. The GLP meets all internationally-recognized supply-chain

security requirements or recommendations. The rationale behind all security procedures

world-wide, including supply-chain security procedures, is that the current local and

international environments stipulate maximum anti-terrorism procedures. Risky shipments

are perceived as a security threat to all countries alike and must be removed from the

international supply chains. Enterprises that comply with the GLP procedures will be more

efficient in their business operations, and will be recognized as “good” enterprises by Jordan

Customs (JC) and the international trading community. Another fact is that Jordan

enterprises need to recognize that, sooner or later, they have to apply the state-of-the-art

international best practices, including those pertaining to customs transactions and supply-

chain security; which may become a prerequisite for entering global markets. Thus, the new

global international trading environment, global anti-terrorism precautions, World Customs

Organization (WCO) standards, and the information technology revolution have changed the

substance and shape of today’s business practices. Today’s enterprises are quite different

than before, and quite surely, are required to pay extreme attention to the security of their

business transactions.

MARKET TRENDS AND GROWTH

� Globalization. Globalization is a major trend in the world’s economy in all business

sectors and countries. For example, Europe has created a major new and well-united

market, Latin America is growing a united and healthy market, and the United States

is becoming a promising market for all countries. The World Trade Organization

(WTA) is becoming a venue for all countries to agree on mechanisms for removing

trade barriers and boosting trade volumes. Jordan has succeeded in joining the WTO

and forming bilateral trade agreements; notably with the United States and the

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European Union. However, all international trade communities share one common

concern; security and terrorism which are both addressed in the GLP requirements.

� The information technology (IT) revolution. The world now is witnessing an

unprecedented progress in the field of IT and communications; especially the Internet.

The IT has become a necessary part of any successful business; which implies that IT

can facilitate enterprises gaining up-to-date data and information.

� Anti-terrorism regulations. In today's environment, it seems reasonable to say that

every country now-a-days is concerned about terrorism which threatens businesses

individual businesses and economies alike. Consequently, security procedures are

necessary to minimize terrorism threats and preserve businesses and economies.

� Increasing competition. Today’s businesses are facing severe competition in almost

every part of the world. Businesses deal with competition by entering new markets

and creating new business niches. However, they need to feel secure and free when

entering new markets or seeking new business opportunities. The security

requirements of the GLP are beneficial to Jordan enterprise since they improve

business transactions in terms of quality, speed, cost and being "diligent" and "secure"

enterprises; and these are essential requirements for today’s competitive business

environment.

� International mandate. The national and international business environments and

numerous indications in many parts of the world indicate that enterprises will be

asked to prove that they implement adequate security procedures; most likely through

having an official security certification. The GLP is an excellent medium for

enterprises certification, especially with respect to international trade security.

Consequently, complying with the GLP requirements is a strategic necessity for many

Jordan enterprises.

SOWT ANALYSIS

The SOWT Analysis identifies the Strengths, Opportunities, Weaknesses and Threats of the

GLP. These dimensions are analyzed in this section.

GLP Strengths

� The GLP is considered a comprehensive "customs due diligence and supply-chain

security" guide that implements internationally-accepted standards.

� The GLP has gained a strong support from the Government of Jordan as represented

by JC and other relevant organizations.

� The GLP is compatible with the requirements of the WCO Framework of Standards to


� The GLP has benefited from other similar programs like the C-TPAT program of the

United States.

� The GLP has benefited from the international expertise provided by the United States

Agency for International Development (USAID).

� The GLP protects against terrorists acts and, in the awake of the terrorist acts that took

place in Jordan on November 9, 2005, Jordan needs such a program. The

Government of Jordan has a strategic need to apply security measures, including

supply chains security.

� The GLP enhances the contribution of JC and Jordan trade organizations to the

trading sector, and consequently, to the economy of Jordan.

� The GLP, as a risk management tool, is superior to the traditional customs practices

that do not allocate customs resources based on a sound risk management

methodology.

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� The GLP is a great opportunity to Jordan enterprises to gain a unique management

experience.

GLP Opportunities

� Increasing Jordanian enterprises return on investment, profits and sales volumes,

especially from doing business in international markets.

� Paving the way to Jordan enterprises to enter new international market segments.

� When international recognition of the GLP is achieved, especially by Jordan main

trading partners, ample business opportunities in several countries could be

accomplished.

� Marketing Jordan and Jordan enterprises to the international community as a "secure"

country with "secure" enterprises.

� Establishing and sustaining strategic relationships with key international trading

partners such as the United State and European Union Countries.

GLP Weaknesses

� In its current form, the GLP is directed at large enterprises only.

� SMEs are not a primary target for the GLP.

� The implementation of GLP requires a well-qualified staff and significant financial

resources which may be beyond many enterprises abilities.

� Most Jordan’s large trading partners do not have similar programs to the GLP; except

the United States. This implies that the GLP may take long time to achieve

recognition by other trading partners.

GLP Threats

A critical examination of the objectives of the GLP and the "customs due diligence and

supply-chain security" requirements of the program revealed that there are no threats for

Jordan enterprises from joining the program. The GLP aims, primarily, at enhancing

enterprises compliance with international best practices with respect to customs transactions

and security of international trade supply chains.

CRITICAL ISSUES KEYS TO SUCCESS

The success of the GLP in achieving its goal, objectives and sub-objectives, as detailed later,

relies on the following critical issues:

� Each member of the GLP must receive promised benefits as a reward for taking the

initiative to voluntarily participate in the program.

� JC has a strategic role to play in supporting and sustaining the GLP, and making a

success story out of it. A key approach here is that JC should establish and sustain a

strategic and mutually-rewarding partnership with the business community of Jordan.

A health partnership will create enormous benefits for JC and the business community

as well. in Jordan alike.

� Jordan enterprises willing to comply with the GLP requirements should receive

technical support in the form of training programs, technical coaching, etc. JC and

other relevant organizations should seek funding for such programs from Jordan

Government, international organizations, and local and international donor agencies.

� Teamwork is vital. To make the GLP a success, all governmental and non-

governmental organization having a stake in the GLP should work closely together,

especially in marketing the program to Jordan enterprises and driving them to

participate.

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� Raising funds. Sustaining the GLP requires funding which could be raised from local

and international sources.

� Marketing efforts. This marketing strategy is an essential part in promoting the GLP

to all Jordan enterprises and internationally. Implementing the strategy requires

serious collaborations and efforts from all stakeholders. The success of any

marketing strategy relies heavily on commitment, cooperation and team-work of all

stakeholders.

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PHASE II

MARKETING STRATEGY FORMULATION

MISSION STATEMENT

“The GLP is a voluntary, self-compliance program aimed at enhancing customs due diligence


facilitating Jordan's trade with other countries. The program improves the performance of

Jordan enterprises, boosts the trading sector, and enhances the growth of the economy. The

program encourages and assists enterprises to implement the state-of-the-art and

internationally-recognized procedures with respect to customs transactions and security of

trade supply chains. The program complies with the WCO Framework of Standards to

Secure and Facilitate Global Trade which came into effect in June, 2005. Jordan enterprises

joining the GLP will be perceived as "diligent" and "secure" enterprises, and thus, will be

treated favorably by their international counterparts. The targeted community of the GLP is

all enterprises in Jordan that participate in the international trading activity; including

importers, exporters, manufacturers, transporters, customs brokers and warehouse operators."

The GLP will benefit:

� Jordan's Economy. The GLP enhances the competitiveness of the trading sector of

Jordan locally and internationally and consequently improves Jordan's economy.

� Jordanian Enterprises. The GLP offers Jordanian enterprises a great opportunity to:








� Jordan Security. The GLP enhances borders security, protects cargos and people, and

help prevents terrorist acts.

� International Best Practices. The GLP makes Jordan a pioneer country with respect to

compliance with internationally-recognized best practices (such as the World

Customs Organization Framework of Standards to Secure and Facilitate Global

Trade).

� International Aid Agencies. The GLP demonstrates the success of international aid

agencies in Jordan.



MARKET SEGMENTS/ TARGETED ENTERPRISES

The prime market segments for the GLP are importers, exporters, transporters and transport

operators, customs clearing agents, warehouse operators and Qualified Industrial Zone

Manufacturers (manufacturers qualified for duty-free export to the United States). However,

other potential market participants are SMEs. This implies that GLP marketing efforts should

be directed toward targeting all these segments.

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GOALS AND OBJECTIVES

Goal

The GLP is a voluntary, self-compliance program aimed at enhancing customs due diligence


facilitating Jordan's trade with other countries. The goal of this marketing strategy is to

accomplish the aim of the GLP.

Sub-Goals

� Making Jordanian organizations aware of the GLP and the rationale behind it.

� Making Jordanian organizations aware of the GLP strategic benefits on the long run.

� Encouraging Jordan enterprises to use the GLP procedures and practices continually

within their business practices.

� Strengthening the relationship between Jordan business community and JC through

the mutual benefits attained to both sides from implementing the GLP.

� Establishing contacts to gain governmental support for the GLP.

� Establishing contacts to gain support for the GLP from international organizations and

international aid agencies.

� Motivating and rewarding GLP member enterprises through promoting them as “good

models” and “references” to encourage other enterprises to join the program.

� Establishing contacts with relevant Jordan government organizations and international

organizations to attain financial support for the GLP.

Objectives

� Recruiting 20 volunteer enterprises a year to implement the GLP requirements.

� Increasing larger-size enterprises’ awareness of the GLP by at least 40% during 2006.

� At least 15 enterprises join the GLP membership after satisfying program

requirements.

� The GLP image: to increase the recognition of the GLP image by at least 50% over

the next three years.

� Promoting the GLP to Jordan’s main trading partners in the international community

in 2006.

� Enhancing the volunteer enterprises’ staff skills and knowledge.

� Decreasing the customs procedures and customs transactions time cycle by at least

30% for each company on the GLP membership list in 2006.

MARKETING STRATEGY COMPONENTS

Service Strategy

GLP Benefits/ Incentives

The GLP aims at enhancing Jordan trade community's self-compliance with customs

requirements and supply chain security best practices. However, these enhancements would

not materialize without paying a price for them. The question then, is the trade community is

willing to pay the expense without any direct benefits or incentives? Obviously, the answer

is no. That is why on several occasions JC has debated the issue of benefits/ incentives with

a number of enterprises from the trade community of Jordan. After lengthy debates, JC has

approved to offer GLP member enterprises a number of "direct" benefits/ incentives. In

addition, the GLP has a number of "indirect" benefits that are not related to JC. Both direct

and indirect benefits are discussed in the following two sub-sections.

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Direct Benefits

JC will offer the following benefits/ incentives to all enterprises that gain membership in the

GLP.

� Reduced frequency of cargo shipment inspections by JC (more frequent use of the

green-lane processing at all border crossings). GLP member companies will enjoy

expedited customs border processing.

� Reduced goods post-release compliance audits. Customs inspections of companies’

books to verify duty payment and general compliance with the customs law will be

less frequent for GLP member companies.

� Pre-arrival clearance of goods. Completion of customs transactions formalities will

take place before goods arrival for GLP member companies.

� Minimum levels of financial penalties. GLP member companies will enjoy the

minimum levels of penalties when inadvertently make an error on a customs

transaction. In addition, fines might be paid in installments without interest. (This

facility will depend on the monetary amounts owed to JC and the duration for paying

such amounts).

� Goods release before completing customs formalities. GLP member companies could

take possession of their goods against certain securities before completing customs

formalities.

� Security facilities. GLP member companies will be able to benefit from taking

possession of their goods against lesser financial securities.

� Clearance of goods during off-work hours. Customs will strive to clear goods for

GLP member companies even during customs off-work hours.

� JC will recognize the GLP member companies via publishing their names on JC

website. (This is an important feature to the GLP as JC continuously validates the

status of a GLP member company.)

� JC will seek recognition of the GLP from other countries, which will reflect positively

on GLP member companies.

� Annually, JC will declare the best three companies on the GLP and will recognize

these companies via a celebration event.

� JC will continue to negotiate additional benefits with all GLP member companies on a

one-to-one basis. (Note: The JC will take care in the one-to-one benefits to recognize

the advantages of tailoring customs services to the client needs but at the same time

maintain a transparent process.)

Indirect Benefits

In addition to the above benefits offered by JC, GLP member companies, because they

implement the state-of-the art best practices of customs due diligence and supply-chain

security, are expected to enjoy the following benefits as a natural outcome.

� Reduced Customs Transactions Costs: Due diligent and secure companies are always

favored by Customs Departments. Regardless of being offered formal facilities/

incentives like the above or not, due diligent and secure companies, because of the

trust placed on them by Customs, enjoy an expedited processing for their transactions.

Of course, this translates into cost savings, and consequently a competitive advantage

in the markets where they operate.

� Marketing Tool: The trade community in one country is linked to the trade

communities in other countries. For example, a due diligent and secure importer in the

United States of America would prefer a due diligent and secure exporter/

manufacturer from Jordan as a trade partner. Therefore, a Jordanian exporter/

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manufacturer which implements "customs due diligence and supply-chain security"

procedures would gain preference over other exporters from Jordan or from other

countries. The same applies to all supply-chain companies; due diligent companies

always prefer to deal with each other.

� International Mandate: In the developed world, all supply chain companies are

already in the race of showing off their "customs due diligence and supply-chain

security" systems. This means, in the near future, almost all international trade

activities will be carried out by due diligent and secure supply chains. Soon, no place

will be left for non due diligent companies; it seems that the choice now is between

being a due diligent company or a company with no business. It is extremely

important for Jordan supply chain companies to realize that due diligence and supply-

chain security systems are not anymore a choice, rather, they are an international

mandate.

� Reduced Operating Costs: Due diligent and secure companies, whether supply chain

or not, always receive favorable treatment from governments and private-sector

organizations. A due diligent company would be offered more discounts on its

purchases, better payment terms, more finance by banks, reduced insurance rates, etc.

All these facilities are gained because of the high trust others place on due diligent

and secure companies. Of course, all these and similar facilities ultimately translate

into reduced company operating costs.

� Prevention of Errors and Mistakes: Because a due diligent and secure company has

written procedures for performing all its business operations, it is less likely that this

company will make errors on Customs transactions or other business transactions.

This is very important to avoid unnecessary delays in Customs transactions, and to

avoid additional non-justified costs.

� Due Diligence is a Legal Defense Mechanism: Due diligence and supply-chain

security is considered an important mechanism to defend a company, its directors,

managers and employees who could be otherwise found liable under the laws. With

the presence of a due diligence and supply-chain security system, it is much easier to

justify, especially from the legal view point, the company’s actions, decisions, etc.

� Management Tool: Managements of supply chain companies frequently employ due

diligence as a management tool to encourage the careful assessment of business

operations, and the reasonable steps required to avoid making mistakes.

� Performance-Measurement Tool: Supply chain companies always assess their

performances against to what is stipulated by the due diligence procedures.

Enhancements and corrective measures are normally recommended based on the

deviations from what is required by the written due diligence procedures.

� Especially Important for Jordan Supply Chain Companies: Compared to other

countries, Jordan supply chain companies will benefit more from implementing due

diligence and supply-chain security procedures. The first reason is that the US and

the European Union Countries are the pioneers in due diligence; Jordan has free trade

agreements to capitalize-on with these countries through the utilization of due

diligence. The second reason is that Jordan will be among the first few third-world

countries, and the first in the Middle East region, to implement due diligence and

supply-chain security, thus, will reap its benefits earlier.

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GLP Branding Strategy

The most suitable approach to brand the GLP within the trading community of Jordan and

world-wide is to focus on the core benefits offered by the GLP. For Jordan enterprises that

are looking to enter the international markets, the GLP offers a unique opportunity to exploit

new market opportunities, increase profits and return-on-investment, minimize operating

costs, expedite business transactions, improve business management skills and achieve higher

quality business operations. The cost of joining the GLP is a temporary variable cost that

offers strategic returns to all enterprises on the long run. World-wide, the GLP sends a

crucial message to Jordan main trading partners in the international trading community; they

can have secure business transactions with minimal risk, and free terrorist threats to their

businesses and countries. Having said that, the recommended branding strategy for the GLP

is: "Security, Protection and Opportunity" (SPO).

The communications tools recommended to help positioning and branding the GLP within

the trading community of Jordan and world-wide are:

� Jordan business associations should promote the program in their periodic

publications and on their websites. JC has a Consultative Council with few members

representing the private sector. The Council could play a role in this process.

� A logo has been developed for the GLP which should be used by JC and all other

stakeholders in their communications locally and internationally.

� Publishing the GLP logo on GLP member companies' websites with a hotlink to the

JC's website.

� GLP member companies could insert the GLP logo on their stationery.

� GLP member companies could include the program logo and summary-explanation to

their sales and promotional brochures.

� JC should develop a separate web page on the department's website where all relevant

GLP information made available.

� JC has prepared a brochure containing summary-information about the GLP. The

brochure could be distributed via all national customs centers.

� GLP member companies could inform their trade/ business partners about the

program and how they attained the GLP status.

� Allowing truck signs with the GLP logo.

� JC could issue certifications to foreign companies verifying the status of Jordan

companies on the GLP.

� Adding GLP logo to business cards.

� GLP member companies could advertise their status in target markets.

� GLP member companies could present any awards and recognition letters received

from JC.

� Wall plaques could be developed and used by GLP member companies and JC.

� Holding a large-scale annual conference for the GLP and inviting local and

international representatives and the press.

� Poster advertisements at customs centers, border crossing points, airports, Chambers

of Commerce, Qualified Industrial Zone (QIZ) offices and trade association offices.

� JC seeks mutual recognition status for the GLP under the WCO Framework of

Standards with the United States Customs and Border Protection (USCBP) as an

equivalent supply-chain security program to the US C-TPAT program.

� JC seeks mutual recognition status for the GLP under the WCO Framework of

Standards with Jordan's main trading partner countries.

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� JC opens dialog directly with the US counterparts in USCBP to begin a formal review

of the Jordan customs GLP for customs-to-customs mutual recognition.

� Seek signature of the Director General of JC on the Letter of Intent of the WCO

Resolution of the Customs Co-operation Council on the Framework of Standards to


� Send Letter of Intent to the Secretary General of the WCO, which will confirm

Jordan’s decision to fulfill the Framework of Standards to Secure and Facilitate

Global Trade.

Communications Strategy

Marketing communications strategy is considered a core part of the overall marketing

strategy of the GLP and should be used to communicate the GLP benefits to enterprises with

the purpose of persuading them to participate in program. It should be clear from the outset

of the marketing efforts that there is no single marketing communications tool able to

communicate the GLP benefits to the trading community inside or outside Jordan. Rather, a

number of marketing communications tools should be used simultaneously. In addition, all

communications tools must be integrated together and should be consistent in delivering a

unified message about the GLP inside and outside Jordan. The integration and consistency

between the different tools will enable the marketing strategy to achieve its goals and

objectives and build the desired brand (image) for the GLP.

Communications Tools

Figure 1 shows a recommended set of marketing communications tools to effectively

communicate the GLP to the trading community inside and outside Jordan. As shown in the

figure, the recommended tools are:

� Personal marketing, especially by JC.

� Using the Internet/ Websites.

� Advertising in newspapers and specialized magazines.

� Public relations.

� Posters, stationary, brochures, etc.

� National and international events such as sponsoring and/ or participating in national

and international conferences in the are of customs due diligence and supply-chain

security.

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Figure 1. GLP Marketing Communications Tools.

The success of the GLP marketing communications depends on key roles that should be

played by key public- and private-sector partners or stakeholders who have a stake in the

success of the GLP. The key stakeholders include the following organizations:

� Jordan Customs (JC)- a governmental organization.

� Jordan Enterprise Development Organization (JEDCO)- a governmental organization.

� Jordan Investment Board (JIB)- a governmental organization.

� Jordan Exporters Association (JEA)- a private sector representative organization.

� International Aid Agencies.

� Jordan Embassies abroad.

The communications tools that could be used by these organizations are described below.

Communications Tools by JC

JC has a fundamental role to play in marketing the GLP to Jordan enterprises and Jordan

main trading partners in the international community. The GLP is in Jordan’s national best

interests as the program enhances Jordan’s security, improves economic growth and markets

the whole country as a secure trading partner in the international community. JC is the most

important governmental body with respect to marketing the GLP since securing Jordan’s

borders and Jordan businesses are at the heart of JC vision and mission. In addition, JC has

close ties with the trading community inside Jordan, and foreign customs services/

departments outside Jordan. Consequently, it is reasonable to say that JC should take the

responsibility of implementing a major part of the GLP marketing strategy. JC can use the

following marketing communications tools to promote the GLP:

� Personal marketing, especially to the trading community of Jordan.

� JC website.

� Advertising in newspapers.

� Brochures and other printed materials.

� Sponsoring national events and conferences.

Marketing Strategy

Communications Tools

Personal

Marketing

Websites or

Websites

Links

Advertising Public

Relations

National &

International

Events

Posters &

Brochures

…etc

Communicating the GLP Benefits to the Targeted

Organizations/ Enterprises Inside & Outside Jordan

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Communications Tools by JEDCO, JIB and JEA

Jordan Enterprise Development Corporation (JEDCO), Jordan Investment Board (JIB) and

Jordan Exporters Association (JEA) are of crucial and strategic importance to communicating

the GLP to Jordanian enterprises as well as key trading partners in the international

community. Each of the above organizations’ vision and mission has an indirect

responsibility toward promoting the GLP inside and outside Jordan. JEDCO has the

responsibility of developing the capacity of Jordan enterprises and making them more

competitive in the international markets. Of course, joining the GLP by Jordan enterprises is

a part of fulfilling this responsibility. JIB has the responsibility of attracting foreign

investments; however, foreign investors always demand a secure environment for their assets.

The GLP enhances the security of Jordan enterprises and the country at large; thus makes

Jordan a more attractive environment for foreign investments. JEA aims at assisting Jordan

exporters to exploit new foreign markets which are now-a-days extremely cautious to the

security of cargo shipments and the supply chains carrying them. The GLP enhances the

security of Jordan exporters and Jordan-side supply chains; thus facilitates entry of Jordan

exports into foreign markets. JEDCO, JIB and JEA can use the following marketing

communications tools to promote the GLP:

� Using their websites.

� Advertising in specialized magazines.


� Posters and brochures.

Communications Tools by International Aid Agencies

International aid agencies such as the United States Agency for International Development

(USAID) are friends of Jordan, and could play a significant part in promoting the GLP to

organizations inside and outside Jordan. These agencies are important communications

channels since they have built an international credibility and have become well-known in

many countries. For example, the USAID can promote the GLP through the many funded-

programs the agency implements in Jordan. A second example is that USAID could spread

awareness about the GLP to the US enterprises. A third example is that USAID could

facilitate for the recognition of the GLP by the US and other countries where USAID has

large aid programs. International aid agencies, including the USAID, can help through:

� Their funded aid programs in Jordan and other foreign countries.

� Using their websites.


� Posters and brochures.

� Sponsoring national events and conferences.

Communications Tools by Jordan Embassies Abroad

Jordanian embassies abroad have a very important role to play in promoting the GLP on the

international level. Awareness about the GLP could be spread to almost all countries around

the globe if Jordan embassies are well-equipped to undertake this function. However,

embassies efforts should start with Jordan's current main trading partners and potential future

main partners. Embassies can promote the GLP through:

� Participating in the economic forums and conferences that take place in the countries

where Jordan embassies operate.

� International economic events that take place in different parts of the world.



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� Communicating with the governmental and non-governmental economic bodies in the



Budgeting Strategy

Adequate financial and non-financial resources are required to enable this marketing strategy

achieve its goals and objectives. The size of the required budget will depend on how much

effort will be accomplished directly, i.e using own resources, by the partner organizations

(JC, JEDCO, JIB, JEA and Jordan Embassies). If most of the effort will be undertaken by the

partner organizations and using their own personnel time, an annual budget in the range of JD

150,000-200,000 over the next 3-5 years would be adequate. The range would escalate

depending on how much personnel effort will be contracted out. However, regardless of its

size, the budget should be assigned to cover the following aspects of the strategy:

Share of Available Budget

1. Personnel marketing costs 40%

2. Advertising in newspapers and specialized magazines 20%

3. Designing websites or websites links 5%

4. Brochures and posters 5%

5. Stationary and printed Material 5%

6. Participating in national and international conferences 15%

7. Trade Shows and Exhibitions 10%

100%

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PHASE III

MARKETING STRATEGY IMPLEMENTATION

Marketing strategy implementation is turning the GPL marketing strategy into actions that are

able to achieve the strategy goals and objectives. This requires a clear understanding of the

GLP marketing organization, implementation activities and performance assessment

mechanisms. The implementation activities must be linked to the goals and objectives of the

marketing strategy itself, while the performance assessment mechanisms measure how much

success has been accomplished. The marketing organization describes the organizations

involved in the implementation process and the roles each party plays.

MARKETING ORGANIZATION

Marketing organization is a vital step for the success of implementing any marketing strategy.

Marketing organization design includes consideration of the trade-off between performing

marketing functions within the GLP initiator (JC) and having them performed by other

partner organizations. Figure 2 presents a recommended model organization structure that

could be followed by through out the implementation of the marketing strategy. In the below

discussion, reference is made to the model organization of Figure 2.

JC is the initiator of the GLP and has a major role to play both inside and outside Jordan.

Outside Jordan, JC could make the necessary contacts with foreign-country customs

departments/ services for the purpose of attaining mutual recognition of the GLP from these

departments/ services. JC has the facility under the Customs-to-Customs Pillar of the WCO

Framework of Standards to Secure and Facilitate Global Trade to seek recognition of the

GLP. Practically, JC should seek recognition from Jordan's current main trading partners, to

be followed with Jordan's potential trading partners. Also, JC, along with the rest of partner

organizations, could provide support to Jordan embassies abroad to enable them spread

awareness about the GLP to other countries. Inside Jordan, JC could team up with other

partner organizations (JEDCO, JIB and JEA) to market the GLP to the trading community of

Jordan.

JEDCO could play the role of a coordinator to the partner organizations efforts. JEDCO

could make a constructive connection between the GLP program initiator (JC) and other

organizations like International Aid Agencies, JIB, JEA and Jordan embassies abroad.

JEDCO could also play a vital role in marketing the GLP directly to Jordan enterprises.

Jordan embassies abroad are ideally situated to spread awareness about the GLP to the

international trading community. However, embassies can not undetake this mission without

support from all other partner organizations.

International Aid Agencies, JIB and JEA have local and international connections to enable

them market the GLP locally and internationally.

The GLP marketing consultant could provide supervisory role to the whole process, advice

all partner organizations, update the strategy when deemed necessary and design appropriate

assessment studies.

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Figure 2. Marketing Organization for GLP Marketing Strategy Implementation

PARTNER ORGANIZATIONS ROLES

Below is a description of the recommended roles that could be played by the different partner

organizations.

Jordan Customs (JC)

JC could undertake the following activities:

� Maintain and update all technical materials pertaining to the GLP.

� Communicate the benefits of the GLP to all organizations transacting with JC.

Customs Departments in Main

Trading Partner Countries &

World Customs Organization

The Trade Community

of Jordan

The International

Trade Community/

World-Wide

Economic Events

Jordan Enterprise

Development

Corporation /

JEDCO

GLP

Marketing

Consultant

Jordan

Customs /

Golden List

Program

International

Aid Agencies

Jordan

Investment

Board / JIB

Jordan

Exporters

Association /

JEA

Jordan

Embassies

Abroad

GLP

Coordinator /

JEDCO

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� Undertake a timely audit on any enterprise that requests inclusion on the GLP.

� Provide technical expertise and guidance to enterprises, and assist them throughout

the whole process of becoming a GLP member.

� Supply all required technical materials that may be requested by other partner

organizations.

� Supply all required technical materials that may be requested by government and non-

government organizations inside and outside Jordan; including Jordan embassies

abroad and International Aid Agencies.

� Make a timely update to the list of GLP members and make the list available on its

website.

� Seek mutual recognition for the GLP from other countries, especially the main trading

partners of Jordan.


JEDCO could undertake the following activities:

� Act as a coordinator between JC and all other partner organizations.

� Act as a coordinator between all partner organizations and Jordan embassies abroad.

� Communicate the benefits of the GLP to all enterprises transacting with JEDCO.

� Spread awareness about the GLP during national and international events JEDCO


� Use the GLP as a tool in developing and enhancing the competitiveness of Jordanian

enterprises; especially enterprises intending to exploit new markets.

� Use the GLP status as a marketing advantage for Jordanian enterprises.

� Participate in the implementation of the marketing strategy of the GLP and according

to the decisions to be made jointly by all partner organizations.

� In coordination with the other partner organization, to seek funding for the




JIB could undertake the following activities:

� Communicate the benefits of the GLP to all enterprises transacting with JIB,


� Spread awareness about the GLP in the countries where JIB has presence or intends to

have presence.

� Spread awareness about the GLP during national and international events JIB holds or

participates-in.

� Use the GLP as a tool, among other tools, in marketing Jordan as a "secure


� Use the GLP status as a marketing advantage for Jordanian enterprises; especially

those enterprises seeking international alliance with foreign investors and

counterparties.

� Use the GLP as a marketing tool to attract foreign enterprises to operate in Jordan.






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JEA could undertake the following activities:

� Communicate the benefits of the GLP to all enterprises transacting with JEA,

including all exporters currently listed on JEA's data base.

� Spread awareness about the GLP in the foreign countries JEA visits from time to time

to promote Jordan exports.

� Spread awareness about the GLP during the trade shows, conferences, etc., JEA holds

or participates-in inside and outside Jordan.

� Use the GLP as a tool in marketing Jordan exporters as "secure exporters".

� Use the GLP status as a marketing advantage for Jordanian exporters to exploit new

markets.






International Aid Agencies

International aid agencies such as the United States Agency for International Development

(USAID) are friends of Jordan, and could play a significant part in promoting the GLP to

organizations inside and outside Jordan. These agencies are important communications

channels since they have built an international credibility and have become well-known in

many countries. For example, the USAID can promote the GLP through the many funded-

programs the agency implements in Jordan. A second example is that USAID could spread

awareness about the GLP to the US enterprises. A third example is that USAID could

facilitate for the recognition of the GLP by the US and other countries where USAID has

large aid programs. The same thing applies to all other International Aid Agencies that have

a permanent presence in Jordan.

Jordan Embassies Abroad

Jordan embassies abroad have a very important role to play in promoting the GLP on the

international level. Awareness about the GLP could be spread to almost all countries around

the globe if Jordan embassies are well-equipped to undertake this function. However,

embassies efforts should start with Jordan's current main trading partners and potential future

main partners. Embassies can undertake the following activities:

� Participating in the economic forums and conferences that take place in the countries

where Jordan embassies operate.

� Participating in international economic events that take place in different parts of the

world.



� Communicating with the governmental and non-governmental economic bodies in the



FIRST YEAR MARKETING PLAN

The first year marketing plan is a tactical plan that pinpoints a set of marketing activities to

be performed for the purpose of achieving some of the goals and objectives of the GLP

marketing strategy in the first year (year 2006). These activities are described in the

following phases of implementation:

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Phase 1: A high-level meeting should be held between the GLP marketing partner

organization (JC, JEDCO, JIB and JEA) to assign duties and responsibilities, and coordinate

future moves and actions.

Phase 2: The GLP marketing partner organizations (JC, JEDCO, JIB and JEA) should sign a

Memorandum of Understanding in which they declare their commitments and support to a

marketing campaign starting early 2006. Preferably, a joint committee in which each partner

organization is represented by a senior officer should be formed. The committee should be

tasked with undertaking all necessary steps to:

4. Market the GLP nationally with the ultimate goal of increasing the membership of the

GLP.

5. Market the GLP internationally with the ultimate goal of securing and facilitating

Jordan's trade with other countries.

6. Implement the marketing strategy of the GLP and update the strategy from time to

time as deemed necessary.

Phase 3: Each partner organization (JC, JEDCO, JIB and JEA) should prepare a plan that

describes the activities the organization intends to undertake along with a reasonable

timetable for implementation.

Phase 4: Preferably, the partner organizations should launch a ceremony in which they

declare the commencement of the GLP marketing campaign locally and internationally. The

participation of local governmental- and private-sector organizations and international

organizations and aid agencies in such a ceremony is essential to win their support and

commitment to the GLP marketing efforts.

Phase 5: When to launch the GLP marketing efforts? The appropriate time to launch the

GLP marketing efforts in Jordan and abroad is in the first quarter of year 2006, preferably in

March. The rationale for choosing this time is that the GLP marketing partner organizations,

and the required marketing materials, should be ready by that time.

Phase 6: Where to launch the GLP marketing efforts? In the first place, the GLP marketing

efforts should target larger enterprises from the trading community of Jordan. The

communications tools described in the marketing communications strategy should be used.

Phase 7: To whom to aim the launch? In addition to the larger enterprises of phase 6 above,

the GLP should be launched to (a) organizations that are expected to respond and co-operate

quickly, (b) organizations that are likely to have an important leadership role for others, and

(c) organizations that have regional and international business transactions and/ or presence.

Phase 8: How to launch? The communications tools described in the marketing

communications strategy should be used simultaneously by all partner organizations.

Phase 9: JC may start dialogues with other customs services/ departments of other countries

as of April, 2006. Dialogues should be started with Jordan's main trading partners. The aim

of the dialogues is to gain recognition for the GLP, and gain benefits for the GLP member

enterprises.

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Phase 10: The GLP partner organizations' joint committee, represented by the coordinator

(JEDCO), should start contacting the Jordanian embassies abroad explaining to them what

roles they can play and supplying them with the necessary marketing materials.

Phase 11: The GLP marketing partner organizations should start executing the GLP

branding strategy described under the GLP branding strategy section.

Phase 12: The GLP marketing partner organizations, represented by their joint committee,

should establish contacts with reputable advertising agencies in order to develop advertising

materials and campaigns in Arabic and English. This phase could be undertaken internally

by the partner organizations themselves if they have the capacity to do so.


should monitor the progress of the marketing efforts through periodic reviews, brain-storming

meetings and performance assessments. Corrective actions should be taken when deemed

necessary.


should execute performance assessments periodically to measure the level of success of the

marketing efforts. Performance assessment mechanisms are described later in this document.

Phase 15: The GLP marketing efforts timetable. Figure 3 presents a guide timetable for the

GLP marketing campaign during the year 2006. It should be noted that this timetable is a

guide only and may be modified by the partner organizations via their representatives in the

joint committee.

* Some of the GLP partner organizations meetings may take place in December, 2005.

Figure 3. First Year Marketing Plan Timetable (for the year 2006).

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Marketing Activity

Phase 1*

Phase 2

Phase 3

Phase 4

Phase 5

Phase 6

Phase 7

Phase 8

Phase 9

Phase 10

Phase 11

Phase 12

Phase 13

Phase 14

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CONTROL AND PERFORMANCE ASSESSMENT

Control Process

Marketing control and performance assessment are essential parts of the any marketing

strategy implementation to assure that the marketing campaign is achieving its pre-

determined goals and objectives. A marketing control process for the GLP is described in

Figure 4. There are four steps in the control process from top to bottom. Step 1 is realizing

what the marketing partner organizations intend to achieve from their efforts. Step 2 is

realizing what is happening in reality, which might be different from what they intended to

achieve. Step 3 is trying to identify the reasons behind not achieving what they intended to

achieve. And step 4 is identifying appropriate corrective measures to restore the original

state of conformity to the goals and objectives. Implementing this control process works as

an “early warning system” that provides the GLP marketing organizations a sufficient

feedback with respect to any undesirable deviations during the implementation phase. Also,

the control process enables the partners to take corrective actions at an early stage.

Figure 4. GLP Marketing Control Process.

GLP Goals and Objectives: What

the GLP Marketing Partner

Organizations Want To Achieve?

GLP Marketing Performance

Measurement: What is Happening

in Reality? (During

Implementation in 2006)

Taking Corrective Actions: What

Should the GLP Partner

Organizations do about Deviations

from the Marketing Plan?

GLP Performance Diagnosis:

Why is Happening?

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Performance Assessment

Performance assessment aims at appraising the extent to which the marketing efforts have

accomplished the pre-determined goals and objectives. Performance assessment may include

quantitative methods as well as qualitative ones. Recommended assessment methods are

described below.

Quantitative Methods

These methods are objective in nature however, not all phenomena lend themselves to such

methods. Recommended quantitative methods may include:

� Number of companies started to implement the GLP requirements (even without

applying to JC to join the program).

� Number of companies officially applied to JC to join the GLP.

� Number of customs services/ departments that decided to hold dialogue with JC for

the purpose of recognizing the GLP.

� Number of inquiries received by JC from other countries' customs services/

department requesting information about the GLP.

� Percentage of companies that becomes aware of the GLP and its benefits.

� Decreased customs transactions time cycles for GLP member enterprises.

� Decreased operating costs for GLP member enterprises.

� Extent to which the GLP opens new business opportunities for GLP member

enterprises.

Qualitative Methods

These methods are subjective in nature however, certain phenomena lend themselves more to

these methods, and sometimes they are the only tools available. Recommended qualitative

methods may include:

� Conducting a survey that aims at understanding the perceptions of the business

community in Jordan concerning the GLP. The targeted perceptions should include

important aspects such as awareness of the presence of the GLP, the image of the

GLP within the business community, awareness of the direct and indirect benefits of

the GLP, and the willingness to participate in the GLP.

� Conducting a set of in-depth interviews and focus groups discussions with the

business community of Jordan to understand their thoughts, believes and viewpoints

concerning the GLP and how to make them join.

� The extent of success of JC in achieving mutual recognition for the GLP, and benefits

for the GLP member enterprises; especially among Jordan's main trading partners.

� The extent of success of Jordanian embassies abroad in spreading awareness about the

GLP in the countries where they operate.

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GLP SCENARIOS

As with any marketing strategy, a number of desirable and undesirable scenarios may be

faced by the GLP partner organizations. This is natural since every country and every

business enterprise now-a-days operates in a highly dynamic and more complicated

environment than ever before. The GLP partner organizations should be able to develop

contingency plans to deal with each of the following scenarios if materialized:

� What the GLP partner organizations should do if the programs, like GLP, become

highly visible within the international trading community, and thus force many

trading enterprises to join them.

� What the GLP partner organizations should do if the trading community of Jordan has

responded more positively than anticipated to the call to join the GLP.


responded less positively than anticipated to the call to join the GLP.


demanded financial and technical support as a priori for joining the GLP.

� What the GLP partner organizations should do if JC has achieved a mutual

recognition for the GLP with its counterparts in a relatively short period of time.

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