. /.WORLD TRADE
ORGANIZATIONG/SCM/N/71/JOR
7 March 2002
(02-1156)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notification Pursuant to Article XVI:1 of the GATT 1994
and Article 25 of the Agreement on Subsidies and
Countervailing Measures
JORDAN
The following communication, dated 28 February 2002,  has been received from the
Permanent Mission of Jordan.
_______________
With reference to Jordan's request pursuant to Article 27.4 of the Agreement on Subsidies and
Countervailing Measures (document G/SCM/N/74/JOR) in compliance with the procedure indocument G/SCM/39, Jordan has the honour to enclose herewith the background information pursuant
to the procedure in document G/SCM/6, given that  notification pursuant to Article 28.1(a) was made
on 11 May 2000 in document G/SCM/N/2/JOR.
Jordan's Income Tax Law No. 57 of 1994 and its amendments, which authorize partial or total
exemption from income tax for profits on certain exports, and Decision No. 3394 of 1994 pursuant to
this law, which exempted from income tax profits on all exports (except phosphate and potash) tonon-protocol countries and territories.  The latter decision came as a result of the negative effects of
the Gulf War on Jordan's economy and exports and hence the government's attempt to encourage
Jordanian producers to diversify production and focus on non-traditional markets.
*
Table 1 - Income Tax Relief by HS Chapters in
US$ for Jordan in 2001
Chapters Export value No. of Exporters Income Tax Relief
1-5 5,218,732 61 78,281
6-14 2,280,430 154 34,206
15 1,564,091 27 23,461
16-24 22,420,887 274 336,313
25-27 72,660,924 99 1,089,914
28-38 262,516,419 627 3,937,746
39-40 17,386,955 321 260,804
41-43 444,863 18 6,673
44-46 186,399 26 2,796
47-49 23,159,357 217 347,390
                                                     
* Programme description can be found in document G/SCM/N/2/JOR.G/SCM/N/71/JOR
Page 2
Chapters Export value No. of Exporters Income Tax Relief
50-63 25,895,318 433 388,430
64-67 1,310,101 41 19,652
68-70 1,788,985 92 26,835
71 4,872,460 14 73,087
72-83 16,668,622 273 250,029
84-85 23,405,235 240 351,079
86-89 109,723,888 50 1,645,858
90-92 375,598 16 5,634
94 1,346,436 226 20,197
95 150,487 8 2,257
96 163,702 15 2,456
97 24,698 6 370
Total 593,564,589 3,238 8,903,469
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