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Exporting Cars from the USA to Jordan

Date: 10/26/2015 |Category: Exporting Cars

Market Overview

The value of used cars Jordan imported in 2014 reached around JD650 million, registering a 40 per cent increase over 2013, a sector leader said Tuesday.

President of the Jordan Free Zone Investors Association Nabil Rumman said Jordan has imported 62,047 used cars this year, while the total number reached 43,774 last year valued at JD450 million. The Jordanian market has shown demand on automobiles with  hybrid cars, such as Toyota Prius and Toyota Camry dominating the market. This growth is in response to reduce the tax on small-engine hybrids from 55 per cent of the value of the vehicle to 25 per cent and to place a five-year age limit on all cars entering the local market.

The decision also granted owners of cars that are 10 years old or more a further tax discount, under which they pay 12.5 per cent in a special tax for hybrids while their old cars are handed over to authorities to be scrapped. (1)

Official sales data in Jordan from 2015 show Korean manufacturers Hyundai (39.9% share) and Kia (21.5%) have a stranglehold on the Jordanian market, with Toyota holding an 18.8% share. Mitsubishi, Nissan, Lexus, and Peugeot follow with smaller shares.

Pros

  •  Healthy demand and growth.

Cons

  • Growth is limited to a narrow range of cars.
  • A high rate of unemployment, poverty and inequality limiting buyers.
  • Vulnerability to the international economic climate and political instability in the Near and the Middle East. (2)

Departure Ports Serving Jordan

RORO

  • Everett, WA
  • Port Hueneme, CA
  • Galveston, TX
  • Jacksonville, FL
  • Baltimore, MD
  • Newark, NJ
  • New Westminster, Canada

Container Shipping Departure Ports  (Shared and Full Containers)

  • Oakland, CA (Shared & Full)
  • Long Beach, CA (Shared & Full)
  • Houston, TX (Shared & Full)
  • Miami, FL (Full)
  • Savannah, GA (Full)
  • NJ (Full)

Arrival Ports

Arrival Port (RORO Ships)

  • Aqaba

Arrival Ports (Container Ships)

  •  Aqaba

Documentation Requirements

  • Passport showing national identification (ID)/Residence Permit showing time abroad for a minimum of 12 months (returning citizens)
  • Original Bill of Lading
  • Original Certificate of Title
  • Import Customs Declaration Form
  • Original Commercial/ Purchase Invoice
  • Registration Certificate (foreigners seeking exemption)

Other Requirements

Imports of used automobiles are allowed with no age limitation; however, personal vehicles imported cannot be more than ten years old.

Import Restrictions

  • Imports of used trucks older than three years are not allowed.
  • Vehicles tinted windows should not exceed 10 percent.
  • Imports of used tires are not allowed except for retreading purposes.
  • An import license is required for imports of vehicles and auto parts to Jordan.

Import Duties and Taxes

Overview

Import duty and taxes are due when importing goods into Jordan whether by a private individual or commercial entity.  The valuation method is CIF (Cost, Insurance, and Freight). In addition to duty, imports are also subject to Sales Tax.

Duties and Taxes

Customs Duty 30%, VAT 16%, import tax 2.50%, extra Tax 1%. Duties to be paid are based on the assessed value of the car by the customs department. Customs duty on vehicle depends upon the size of the engine and the model year. Exemption on vehicles imported by returning Jordanians is given provided the vehicle be exported from Jordan with all customs duties paid and is now being re-imported. Otherwise, duties are to be paid.

VAT is levied on imports at a standard rate of 16%, and some products are subject to reduced rates of 4% and 8%, calculated on the sum of the CIF value and applicable duty.

Market Guides For Additional Countries.
Explore our Vehicle Auctions, Buying With Us and International Shipping Rates.

References

(1) http://www.jordantimes.com/news/local/used-car-imports-40-2014-%E2%80%94-sector-leader
(2) http://www.coface.com/Economic-Studies-and-Country-Risks/Jordan

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