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What is a QIZ?
Qualified Industrial Zones (QIZ) is a unilateral act by
the
USA in an innovation designed to encourage Jordanian exports to the U.S
market,
thus inviting National and International Companies to take advantage of
this
unprecedented initiative enabling Jordan to offer a unique opportunity
to
all Manufacturers.
This new concept allows goods manufactured in these Zones to enter the
USA Duty free & Quota free thus offering a unique
opportunity to all International Manufacturers to move their Industries
to these Zones.
The advantages of the QIZ are numerous:
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Assures Duty and Tariff free access
to the US market.
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No Quotas on export to U.S. market
for products manufactured in the QIZ.
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Total Income and Social Tax
exemption.
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Imported materials are not subject
to Custom Duties.
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No restriction on Project ownership.
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No restriction on Foreign Currency
transactions.
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No time limits or renewal
requirements for QIZ's.
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Full repatriation of capital and
profits and salaries.
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U.S. customs tariff on certain goods entering the USA
that
will be saved by the Investor in the QIZ for certain items are as
follows:
1.
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From 25% up to 48% on
Footwear:Waterproof , with metal Toe-cap, covering
the knee, Sports Footwear, designed for use without closure, Work
Footwear,
Footwear with open toes or open heels, Footwear of the slip-on type,
and
parts of Footwear.
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2.
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From 20% up to 33.6% on Woven
Fabrics, Textiles, Garments, Swimwear, Body
suits, Shirts, Trousers, Suits, Jackets, Raincoat, Underwear, Blouses,
Skirts,
Blazers, Ski-suits, Anoraks, for both women & men.
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3.
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From 18% up to 34% on Tableware,
Kitchenware, other Household and Toilet
articles of Porcelain or China, Hotel or Restaurant ware, Glassware
,Ceramic
tableware, Glass ceramics, Drinking glasses, other Glassware of Lead
crystal.
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4.
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From 6% to 20% on Trunks, Suitcases,
Attaché Cases, Wallets, Handbags.
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5.
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From 10% to 20% on Cheeses.
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Qualifying your product:
To qualify a product in the QIZ, contents of any product produced in
the
QIZ must represent a minimum of 35% of the appraised value.
There are three methods to comply with the requirements:
First:
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of the 35% minimum QIZ content, the
breakdown must be not less than:
11.7% from a Jordan QIZ
8.0% from Israel (7% for high tech. goods)
The Israeli percentage level is valid for a five year period, beginning
Feb.
1999. The remaining content, to reach the 35% total required, may come
from
either a Jordan QIZ, Israel, USA or West Bank/Gaza.
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Second:
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The Jordanian and Israeli
manufacturers may each maintain at least 20% of
the total production cost of the QIZ manufactured goods (excluding
profits).
Production costs may include (Raw materials, Packing materials), Wages
and
Salaries, Design and R & D.
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Third:
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Mixing and matching of the two
above methods is also allowed.
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Important Note:
In apparel manufacturing, imported fabric can be considered as local
(made
in QIZ) raw material if double substantial transformation occurs
locally.
Double substantial transformation in the case of fabric can be cutting
and
sewing. It is important to note that the cost of the fabric that is cut
and
sewn locally will be admissible when calculating the 35% minimum value
added
content requirement (the primary requirement). It will not. However, be
taken
into consideration when calculating the respective share of each
country
under the first method.
How
can we help?
There are basically three different services that we
provide.
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Sourcing
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Partnerships
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Turn-Key Operations
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Service given
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Our clients provide us with the
product
specifications they want to produce in the QIZ and we deliver these
products
to the client
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Our clients define the nature of the
partner factory they seek in the QIZ and we will find the partner
production facility
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Our clients define the kind of
factory they need and we will furnish them with a fully operational
production facility
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Who needs this service?
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U.S.A. medium sized importers
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Producers of fabric in Asia who want
to by-pass the quota system and high U.S. custom tarifs
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Entrepreneurs who want to take
advantage of the low production costs and QIZ benefits
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Also see : Bobbin
Article June 2001
| CONTACT
US |
| Tel: |
+ 972
3 674 16 76 |
| Fax: |
+ 972
3 674 17 76 |
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qiz@elyon.com |
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