The Law of the Free Zones

Corporation
No. (32) for 1984 and Its
Amendments

Article (1)
This Law shall be named : The Free Zones Corporation Law
No. (32) for 1984 and shall come into effect on the date of
(1)
publication in the Official Gazette .

Article (2)
The following terms and expressions wherever mentioned in
this Law shall have the meanings assigned to them
hereunder, unless the context indicates otherwise :

The Minister : The Minister of Finance

The Free Zones : A part of the territories of the Kingdom
demarcated and fenced by a partition,
wherein goods are placed for storage and
manufacturing purposes and whereby all
taxes and fees payable thereon are
suspended, as if these goods were outside
the Kingdom.
The Director General : The Director General of the Free Zones
Corporation
The Manager : The Manager of the free zone
The Corporation : The Free Zones Corporation as
established in accordance with the provisions
of this Law.
The Board : The Board of Directors of the Corporation
The Goods : All merchandises and materials of
whatever kind.
The Invested Capital : The foreign currencies transferred into
and from the free zone in accordance
with the instructions of the Central Bank
as well as machineries , tools , materials ,
goods and equipment necessary for
setting up, operating or expanding any
project inside the free zone.
(1)
Published in the Official Gazette Issue No (3280) of 16/12/1984
The public free zone : A zone wherein investment is
administered by the Corporation (2)
The private free zone : A zone which is administered by any
party from the private sector under the
supervision of the Corporation (3).
Joint Free Zone : A zone established jointly between
the Kingdom and other countries , or
between parties of the public and private
sectors in any of them, with due
observance of the provisions of
agreements signed for this purpose (4l
Economic Activity : Any commercial , industrial ,
agricultural or service activity which is carried
out by a registered person at the free
zones (5)
Registered Person : Natural person or legal person who is
registered with the Corporation to
exercise economic activity in accordance
with the provisions of this Law,
regulations and instructions issued
pursuant thereof (6) .

Article (3)
A- A Corporation named ( the Free Zones Corporation)
shall be established in the Kingdom affiliated to the
Minister, and will enjoy a legal personality with
independent financial and administrative status, and
accordingly shall have the right to conduct all legal acts
and procedures and to delegate public prosecutor or appoint
any other person for this purpose.
B- Its registered office shall be in Amman and it may establish
offices in any part of the Kingdom .

Article (4)
The Corporation shall be entrusted to carry out the following
tasks and duties:
A- To establish the free zones and cancel them .
B- To establish warehouses, stores and any other
establishments necessary for managing and developing the
free zones in such a manner that ensures their growth and
booming including the joint free zones .

(2 , 3 , 4 , 5 , 6)
Amended so pursuant to Law No. (19) of 2004 published in the Official Gazette
Issue No. (4662) of 1/6/2004 .
C- To manage, invest and develop free zones and gearing
them to serve the national economy, promote the
international trade exchange, transit trade and export
oriented industries.
D- To implement the conditions and provisions relating to
customs control, foreign exchange control and set up any
establishments necessary for this purpose .
E- Registering establishments and companies at any
free zone (1) .
F- Issuance of licenses and approvals related to exercising
economic activities at the free zones in accordance with the
provisions of this law , regulations and instructions issued
pursuant thereof (2) .
G- Protecting and Preserving environment in the free zones and
ensuring continuous development in accordance with
standards and foundations to be determined pursuant to a
regulation to be issued for this purpose , provided that the
level of such standards and foundations shall not be less than
adopted ones in the Kingdom . For this purpose , the
Corporation shall exercise the power of Ministry of
Environment and the Minister shall exercise the power of the
Minister of Environment in accordance with the enforce
Protection of Environment Law (3) .

Article (5)
It shall not be permitted to store any transit goods passing
through the Kingdom except in the free zones .

Article (6)
A- The Board of Directors of the Corporation shall be
composed of the Minister of Finance as the Chairman, the
Director General of the Corporation as Vice Chairman and
membership of a representative of each of the following:

(1) Ministry of Industry and Trade Member

(2) Ministry of Finance / Customs Member
(3) Ministry of Transport Member
(4) The Central Bank Member

b- The Board members shall be appointed through

a decision issued by the Council of Ministers following
a recommendation of the Minister.

Article (7)
The Board shall administer and supervise the affairs and
activities of the Corporation, and shall be entitled to
achieve this purpose the full authorities and tasks
including the following :
A- Laying down the general policy of the Corporation.
B- Preparing plans and programmes necessary for developing
and qualifying the free zones to attract investments and
create developed investment atmosphere , which contributes
in activating industry , trade , tourism and services in the
zone (4) . The Board , upon the recommendation of the Director
General , may form a consultative committee comprises
specialized persons for specified purposes .
C- Studying free zones investment applications for establishing
industrial commercial and storage projects.
D- Providing all necessary insurance arrangements to the free
zones.
E- Fixing service fees payable to the free zones with the
approval of the Council on Ministers.
F- Signing agreements and contracts concerning loans with the
approval of the Council of Ministers.
G- Approving the draft general budget of the Corporation and
submitting it to the Council of Ministers for approval.
H- Preparing draft of laws and regulations.

Article (8)
A- The Board shall hold its meetings at the invitation of the
Chairman or, in his absence, the Vice Chairman whenever
need arises for such a meeting. A meeting of the Board shall
be deemed to be legal if at least four members including the
Chairman or the Vice Chairman are present . Resolutions shall
be taken by consensus of opinion or by majority of votes , and
in the event of a tie, the Chairman will have a casting vote .
B- The remunerations of the members of the Board will be
determined by a resolution of the Council of Ministers upon
the recommendation from Minister.

Article (9)
The Chairman shall represent the Corporation vis--vis other
parties .

(1 , 2 , 3 , 4 )
Amended so pursuant to Law No. (19) of 2004 published in the Official Gazette
Issue No. (4662) of 1/6/2004 .

Article (10)
The Director General shall be appointed and his services shall
be terminated, by a decision issued by the Council of
Ministers, provided that such a decision be endorsed
by Royal decree .
Article (11)
The Director General shall undertake the following tasks and
authorities :

A- To execute the Corporations general policy as laid down by

the Board and execute the resolutions issued by it .
B- To manage the executive system of the Corporation and
supervise the work of officials and employees therein.
C- To prepare and submit to the Board the draft general budget.
D- To exercise any powers which may be delegated to him by the
Board or provided for in any regulations issued in accordance
with the provisions of this law.

Article (12)
The Corporations financial revenues shall be consisted of the
following :

A- Rent charges and temporary occupation of lands and

properties owned by the Corporation.
B- Revenues of the services furnished by the Corporation as
prescribed in the investment regulation .
C- The funds allocated in the general budget.
D- Loans obtained by the Corporation.
E- Any other revenues approved by the Council of Ministers.

Article (13)
A- The Corporation shall enjoy all exemptions and privileges
offered to ministries and government departments.
B- It shall be permissible to exercise manufacturing enterprises
and establish factories in the free zones with the approval of
the Board of Directors, provided that one or more of the
following characteristics are fulfilled:

(1) Industries that are new and not existed locally and which
depend on advanced modern technological processes.
(2) Industries for which primary materials, are locally available
or which use locally manufactured parts and also industries
complementing domestic ones .
(3) Industries which raise the level of labor skills and contribute
to its technical advancement.
(4) Industries which meet consumer needs and assist in reducing
dependence on imports from outside the Kingdom.
C- The categories of industries which may be established in the
free zone in accordance with the provisions of this law shall be
determined by a resolution of the Council of Ministers upon the
recommendation of the Board of Directors.
D- The registered person , who exercises an economic activity in
the free zone will enjoy the following exemptions (1) :

(1) Exemption of Projects profits from income taxes for goods

exported out side the Kingdom as well as transit trade , in
 addition to profits accruing from selling or transferring of
goods inside the borders of the free zones (2) . Profits accruing
from goods when placed for domestic market shall be
excluded from such exemption (3) .
(2) Exempting salaries and allowances of non-Jordanian
employees in projects established in the free zone from
income and social service taxes.
(3) Exempting imported goods or exported thereform to
parties other than domestic market from import fees ,
custom duties and all taxes and fees accrued thereon
except services and rent charges .
(4) Exempting buildings and real estate constructions built in the
free zones from the licensing fees as well as from buildings
and land taxes.
(5) Permitting the transfer of the capital invested in the free
zone and the profits generated thereform outside the
Kingdom in accordance with the regulations in force therein.
(6) Exempting the products of the industrial projects established
in the free zone, upon placing them for consumption in the
domestic market from customs duties within the extent of the
value of materials, costs and local expenditures included in their
manufacturing provided that the value is estimated by a
committee chaired by the Director General or his Deputy,
and a representative of each of the Ministry of Industry &
Trade and the Ministry of Finance / Customs , appointed
by the competent Minister.

(1 , 2 , 3 )
Amended so pursuant to Law No. (19) of 2004 published in the
Official Gazette No. (4662) of 1/6/2004 .

E- With due observance of the previsions of this Law, regulations

and instructions issued pursuant thereof (1) the exemptions
provided in this Article and the licensing for the
establishment of investment projects in the free zone shall be
subject to the conditions and guarantees laid down by the Board
of Directors .
F- The investors shall be directed to establish industries in the
public , private and joint free zones so that their industrial
production be exported outside the Kingdom , and the Board
may allow entry of a percentage of such products to domestic
market (2) whenever it deems necessary .
G- Notwithstanding the provisions of this Law or any other
legislations, a Sales Tax shall be imposed on sold commodities
and services provided in the private free zones (3) which are
mainly specified for tourist activities (4) as follows:.
1- (8%) tax of the value of commodities and services upon selling
for consumption in the zone and such commodities and
services shall be determined in accordance with a regulation
which includes provisions and procedures related to collecting
and refunding tax (5).
 2- Tax on sales of local commodities of free zones origin if sold
from these zones to the remaining zones in the Kingdom in
accordance with the provisions of in forced Tax on Sales Law
provided that (6) the provisions of the in forced customs law be
applied on subjects related to customs duties and procedures (7) .
3- Tax on Services sales which are executed from the free zones
to the remaining zones in the Kingdom or out side the
Kingdom in accordance with the provisions of the enforced
Public Tax on Sales Law (8) .
4- Special tax on sales of tobacco and its manufacturing, alcoholic
beverages , intoxicants and beer upon selling them for
consumption in the free zones, and they shall be determined in
accordance with instructions issued by the Council of Ministers for
this purpose (9) .
H- Determining the process of collecting taxes provided for in Items
(2),(3) and (4) of paragraph (G) of this Article shall be in
accordance with a regulation to issued for this purpose .
I- The Corporation shall keep an operating reserve that does not
exceed at any time general expenses estimated in the
Corporations budget ; surplus funds shall be transferred for
Treasury of the state .

Article (14)
It shall be permissible for any registered person to exercise
economic activity, except what is prohibited or restricted
in the free zone, in accordance with a regulation issued
by the Council of Ministers for this purpose ; where it
shall include the terms and conditions necessary for
exercising restricted activities and revenues which may
accrue thereof for the General Treasury (10) .
(1,2,3,4,5,6,7,8,9,10 )
Amended so pursuant to Law No. (19) for year 2004 published in the
Official Gazette issue No. (4662) of 1/6/2004 .

Article (15)
The Audit Bureau shall audit the accounts of the Corporation.
The Council of Ministers may if necessary appoint
for this purpose, a special Chartered Accountant
who will make a report on this subject and submit it
to the Audit Bureau.

Article (16)
Notwithstanding the provisions of any other law or regulation,
the Corporation shall have the right to increase the
charges of the rent of its leased installations or real
estates not more than once every three years at
most in such a way not to exceed the inflation rate
or the rates of increase of prices announced by the
Central Bank from time to time, taking into
consideration the terms of contract in other
matters.

Article (17)
As from the effective date of the provisions of this law, all
installations, real estates, rights and privileges
belonging to Aqaba Free Zone will accrue to the
Corporation, which will assume all obligations
consequent thereon. All employees and workers of
the Aqaba Free Zone shall be considered of the
cadre of the Corporation, together with all the rights
and privileges due to them .

Article (18)
The Corporation may issue debentures within the extent of
the types provided for in the Public Debt Law. The
pertinent terms and conditions shall be determined
pursuant to a special regulation to be issued for this
purpose and the interests accruing from investment
in such bonds will be exempted from income and
social service taxes as well as from any other taxes
and fees.

Article (19)
A- The Council of Ministers may, upon the recommendation of
the Board issue the necessary regulations for the
implementation of the provisions of this Law, including the
regulations pertaining to the financial and administrative
affairs, supplies, work contracts, personnel, employees and
 their saving funds, the rules pertaining to running and
conditions of investment of the free zones, customs and
public security procedures. Pending the issue of such
regulations, the regulations of the Aqaba Free Zone shall
remain in force and shall be applied on the Corporation to
the extent that they do not contradict with the provisions
of this law .

B- The regulations provided for in paragraph (A) of this

Article may cover the imposition of penalties against the
violations committed against the provisions of this law
or any regulation issued in accordance therewith, and
also the compensations and financial fines payable in
respect of making compromise or settlement thereon, as
well as the wages and bonuses payable to detectors of
such violations.
C- Fees to be received by the Corporation for registration
and licensing of persons at the free zones shall be
determined in accordance with regulations issued
pursuant to this law . (1)

Article (20)
With due observance to the provisions of paragraph (A) of
Article (19) (2) of this law , any law or legislation will
be cancelled to the extent of its contradiction with
the provisions of this law .

Article (21)
The Prime Minister and Ministers, each within the scope of his
competency, are charged with implementation of the
provisions of this law.

Law 2004. Zainab

(1,2 )
Amended so pursuant to Law No. (19) of 2004 published in the Official Gazette Issue
No. (4662) of 1/6/2004 .

Law 2004. Zainab