Law No.

(32) for the Year 2000

The Aqaba Special Economic Zone Law

Article (1) : This Law shall be known as the “Aqaba Special Economic Zone Law for the Year
2000” and shall come into effect as of the date of its publication in the Official
Gazette.

Definitions

Article (2) : The following words and phrases wherever used in this Law shall have the
meanings ascribed thereto hereunder unless the context indicates otherwise:
Zone : The Aqaba Special Economic Zone.
Authority : The Authority of the Zone.
Board : The Board of Commissioners.
Chief Commissioner : The Chairman of the Board.
Registered : The person registered with the Authority pursuant
Enterprise to the provisions of this Law.
Customs Territory : The lands and territorial waters of the Kingdom
excluding the Zone.
Region : The lands of the Aqaba Governorate, which fall
outside the perimeters of the Zone and are not
within the perimeters of the Jordan Valley in
accordance with the Jordan Valley Development
Law.
Admission : Admitting goods that are subject to custom duties
and taxes in the Customs Territory to the Zone,
without collecting such taxes and duties on such
goods.
Importation : Bringing goods into the Zone, including
Admission, and excluding bringing goods from the
Customs Territory into the Zone on which duties
and tax are paid therein.

Establishment and Perimeters of the Zone

Article (3) : The aim of the establishment of the Zone is to enhance economic capability in
the Kingdom by attracting different economic activities and investments
thereto.

Article (4) : The perimeters of the Zone shall be determined by a decision of the Council of
Ministers upon the recommendation of the Board. The Council of Ministers may
amend these perimeters according to the business requirements of the
Authority and the exigencies of public interest. The decision and any
amendment thereto shall be published in the Official Gazette.
Article (5) : The starting date of operation in the Zone shall be determined by a decision of
the Council of Ministers upon the recommendation of the Board. Such decision
shall be published in the Official Gazette.

Article (6) : All legislation in force in the Kingdom shall apply to the Zone. The provisions of
this Law shall supersede in case of contradiction with the provisions of such
legislation.

The Authority of the Zone

Article (7) : a. An Authority to be known as the “Aqaba Special Economic Zone Authority”
shall be established in the Kingdom and shall have a juridical personality
with financial and administrative autonomy. As such, the Authority may
acquire movable and immovable property and perform all legal acts
necessary to achieve its objectives, including concluding contracts,
accepting aids, grants and donations, and litigating. The Civil Attorney
General or any attorney appointed by the Authority for this purpose shall
represent the Authority in any legal proceedings.
b. The headquarters of the Authority shall be in the Zone. The Authority may
establish liaison offices within and outside the Kingdom.
c. The Authority shall be associated to the Prime Minister.

Article (8) : a. As of the date specified by the Council of Ministers, the Authority shall
become the legal and factual successor of the Aqaba Region Authority and
the Municipality of Aqaba according to the provisions of this Law.
b. All rights and obligations of the Aqaba Region Authority and the
Municipality of Aqaba shall be transferred to the Authority. The Authority
shall undertake to execute all contracts and agreements to which any of
such entities was a party thereto at the date specified by the Council of
Ministers as if such contracts and agreements were concluded with the
Authority.
c. Ownership of the Jordan Free Zones Corporation’s facilities and properties
located within the perimeters of the Zone shall be transferred to the
Authority for consideration determined by the Council of Ministers.
d. All employees and personnel of the Aqaba Region Authority, the Free
Zones Corporation in Aqaba and the Municipality of Aqaba shall be
transferred to the Authority de jure.
e. The Jordan Industrial Estate Corporation shall be considered in the Zone
as a Registered Enterprise. Without prejudice to the Jordan Industrial
Estate Corporation’s rights and obligations incurred prior to the
enforcement of the provisions of this Law, the provisions of the Jordan
Industrial Estate Corporation Law in force shall not apply in the Zone.

Article (9) : The Authority shall perform the following functions:

a. Develop and qualify the Zone to attract investments and create an
advanced investment environment to stimulate industry, trade, tourism
and services in the Zone.
b. Increase job opportunities for Jordanians, and coordinate and cooperate
with investing entities in the Zone to train, qualify and enhance the
capacity of Jordanian manpower and accord it priority in employment.

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 c. Enhance the role of the private sector in participating in the development
of the Zone, including providing infrastructure services and any public
services.
d. Encourage competition and prevent monopoly in the various economic
activities within the Zone.
e. Plan, design and execute projects for the development of the Zone in
various fields, directly or through other parties.
f. Protect the environment in the Zone.
g. Encourage Registered Enterprises to conduct and support research and
development.

Article (10) : a. The Authority shall assume the following responsibilities:

1. Administer the Zone and oversee its affairs according to its authorities
entrusted therewith pursuant to this Law and the Regulations issued
pursuant thereto.
2. Prepare the necessary plans and programs for developing the Zone.
3. Establish the applicable basis for investment in the Zone.
4. Register enterprises wishing to enjoy the benefits and exemptions
stipulated pursuant to this Law.
5. Promote the Zone in coordination and cooperation with the relevant
bodies.
b. Notwithstanding what is stated in any other legislation, the Authority shall
according to the provisions of this Law assume within the perimeters of
the Zone the functions and authorities relating to the following:
1. Regulating and monitoring economic activities to verify their
compliance with the provisions of this Law and the Regulations and
Instructions issued pursuant thereto, including the public health and
safety affairs pertinent to such activities.
2. Issuing permits and certificates and any other authorizations which
pertain to conducting economic activities in the Zone according to
the provisions of this Law and the Regulations issued pursuant
thereto.
3. Zoning of cities, villages and buildings.
4. Municipal affairs.
5. Protecting the environment, water resources, natural resources and
biological diversity.
6. Controlling procedures of imported and exported food to or from the
Zone and control and inspection procedures for all places for
slaughtering, preparing, manufacturing, circulating, selling and
catering foodstuffs and their derivatives in the Zone. For this
purpose, the Chief Commissioner shall assume the powers of the
Minister and the competent Commissioner shall assume the powers
of the Director prescribed for such in the enacted Control of Food
Law and the regulations issued pursuant thereto.
7. Customs procedures and matters.
8. Collecting the taxes, fees, fines and service charges stipulated in this
Law and the Regulations and Instructions issued pursuant thereto.
9. Laborers’ affairs.
10. Any powers entrusted to other official bodies accorded to the
Authority by the Council of Ministers.

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Article (11) : a. In addition to its duties in the Zone, the Authority shall be responsible for
developing the Region economically and socially and preparing the
necessary plans and programs for such. For this purpose, the Authority
shall assume any authority accorded thereto pursuant to this Law as
required for developing the Region in accordance with a Regulation issued
for this purpose.
b. The Authority shall also assume the authority of administering the State’s
property within the Region according to the provisions of the Law on
Administering the States’ Property in force and the regulations issued
pursuant thereto, provided that the following is taken into consideration:
1. Administering the antiquities and the antique sites within the Region
according to the Law on Antiquities in force.
2. The Land and Survey Department shall collect the fees resulting from
executing the transactions for registering State lands and disposing
thereof in the Region.
3. Remitting the funds resulting from leasing, delegating or disposing of
the lands to the Public Treasury.
c. The Authority shall also assume the authority of protecting the
environment in Wadi Rum according to the provisions of this Law, the
Regulations issued pursuant thereto and any pertinent legislation in force.

Administering the Authority

Article (12) : a. The Authority shall be administered and supervised by a Board known as
the “Board of Commissioners”, which shall be composed of six full-time
members, including the Chief Commissioner and the Vice-Chief
Commissioner who shall be appointed by a decision of the Council of
Ministers upon the recommendation of the Prime Minister for a renewable
four-year term, provided that such decision shall be endorsed by a Royal
Decree.
b. The membership term for the first Board shall be two years for half of its
members and four years for the other half, provided that the Chief
Commissioner and the Vice-Chief Commissioner are among the latter half.
c. Within the term of the Board, the Council of Ministers may terminate the
membership of any of its members and appoint a replacement in the same
manner provided for in Paragraph (a) of this Article.
d. Wages, allowances and all financial entitlements of the Chief
Commissioner and the Board members shall be determined by a decision
of the Council of Ministers upon the recommendation of the Prime
Minister.

Article (13) : a. Whoever is to be appointed in the Board shall:

1. Be a Jordanian national.
2. Be qualified, experienced and specialized.
3. Not be convicted of felony or a misdemeanor affecting honour.
b. 1. During their membership term, the Chief Commissioner, the Board
members, their spouses and first-degree descendents shall be
prohibited from having any benefit with the Authority in any way.
2. The Chief Commissioner and any Board member may not have any
business relationship with any Registered Enterprise or investor in the
Zone.

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 3. Upon appointment and prior to assuming his duty, the Chief
Commissioner and each Board member shall submit a written
declaration, ensuring that he has no benefit or any economic activity
as stated in Subparagraphs (1) and (2) of this Paragraph subject to
legal liability and dismissal from the Board’s membership.
c. The Chief Commissioner and the Board members shall take the following
oath before the Prime Minister prior to assuming their duties: (I swear by
Almighty Allah to be loyal to the King and the Country, to abide by the
laws and regulations in force and to perform the functions and duties
entrusted in me with honor, honesty and dedication).

Article (14) : Upon entry of this Law into force, the Council of Ministers shall issue the
necessary decrees for the establishment of the Zone and commencement of its
activities, specifically the following:
a. Appointment of the Chief Commissioner, the Vice-Chief Commissioner and
the Board members.
b. Upon the recommendation of the Board and subject to the plan prepared
for this purpose, determine the procedures and dates for the transfer of
the responsibilities and duties of the Aqaba Region Authority to the
Authority.
c. Upon the recommendation of the Board, determine the date on which the
Board shall assume the functions of the Municipality of Aqaba and any
necessary procedures for this purpose.
d. Upon the recommendation of the Board, determine the procedures by
which the employees and personnel of the Aqaba Region Authority, the
Free Zones Corporation in Aqaba and the Municipality of Aqaba shall be
transferred to the Authority.
e. Any decision deemed necessary for enabling the Authority to perform its
duties within the period prior to the date of commencing the operations in
the Zone.

Article (15) : The Board shall assume the following functions and authorities:
a. Prepare the general policy to develop the Zone with the approval of the
Council of Ministers, and approve the necessary plans and programs for
the implementation thereof.
b. Allocate investment areas in the Zone and determine land use therein on
the basis of the different sectors.
c. Approve the organizational structure of the executive body of the
Authority, the Classifier Table and the job descriptions therein.
d. Supervise the executive body of the Authority and the operation of the
Authority in a manner that ensures good performance.
e. The functions of the Municipal Council according to the provisions of the
Municipalities Law in force and the regulations issued pursuant thereto.
f. The authorities of the Higher Zoning Council and the Province and Local
Zoning Committees in accordance with the Cities, Villages and Buildings
Zoning Law in force and the regulations issued pursuant thereto. For this
purpose, the Chief Commissioner shall assume the powers of the Ministers
prescribed in accordance with these legislation.
g. Expropriate lands and property necessary for the operations of the
Authority’s activities or development of the Zone according to the
provisions of the Eminent Domain Law in force.

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 h. Approve contracts and agreements to which the Authority is a party
thereto.
i. Prepare the necessary draft legislation for the activities of the Authority
and submit such to the Council of Ministers.
j. Recommend to the Council of Ministers to appoint the certified auditor of
the Authority.
k. Approve the annual estimated budget of the Authority and submit such to
the Council of Ministers for endorsement.
l. Approve the annual report of the activities, balance sheet and year-end
accounts for the previous fiscal year of the Authority and submit such to
the Council of Ministers.
m. Issue instructions relevant to the activities and procedures of the
Authority, particularly the following:
1. Regulating and monitoring the activities of Registered Enterprises.
2. Regulating the activities of investors in the Zone.
3. Collecting the prescribed taxes, fees, fines and service charges in the
Zone.
4. Issuing certificates of origin for goods produced in the Zone and
determining the entities entitled to issue such.
5. Determining the fees, which the Authority collects in return for
services rendered to any pertinent body to the Authority’s activities.
6. Ratifying the status of economic activities violating the provisions of
vocational license legislation prior to the date of commencing
operations of the Zone.

Article (16) : a. The Board shall convene at least twice every month upon an invitation
from the Chief Commissioner or the Vice-Chief Commissioner in his
absence. The quorum of the Board meetings shall be met upon the
attendance of the majority of its members, provided that the Chief
Commissioner or the Vice-Chief Commissioner is among them.
b. The Board shall issue its resolutions by a majority vote of the attending
members, provided that it is not less than three votes. A member cannot
refrain from voting, and each opposer shall record his opposing decision in
writing in the minutes of the meeting and sign thereon. If the votes are
tied, the vote of the Chairman of the meeting shall be determinant.
c. The procedures for regulating the Board’s functions, meetings and all
other matters shall be determined by Instructions issued by the Board.

Article (17) : a. 1. The Board may contract with financially and technically qualified
entities to develop or administer the Zone. The basis and conditions of
contracting shall be determined in accordance with a Regulation
issued for this purpose.
2. Notwithstanding what is stated in any other legislation, the Authority
shall be responsible for developing the Aqaba Port, Airport and of the
public utility services inside the Zone. The Board shall be entitled,
upon the approval of the Council of Ministers, to contract with
financially and technically qualified entities, and any of the entities
referred to in Subparagraph (1) of this Paragraph for the purposes of
developing or managing any of them, provided that the relevant
bodies in accordance with the legislation in force participate in the
negotiations conducted with the qualified entities and according to
what is decided by the Council of Ministers in this regard. The

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 contracts resulting from these negotiations shall not be considered
enforced until they are ratified by the Council of Ministers.
3. The Board may establish a company in which the entities contracted
therewith according to the provisions of Subparagraphs (1) and (2) of
this Paragraph may have equity participation in order to carry out the
development or administration pursuant to the contract concluded
with the Board for this purpose.
4. The Board may pursue any method for contracting with the entities
referred to in Subparagraphs (1) and (2) of this Paragraph or with the
entity managing the company referred to in Subparagraph (3) of this
Paragraph in order to entrust therein the management of the projects
and the utilities services subject of the development. The Board may
lease these projects thereto or transfer the ownership thereof. Any
agreement in this regard shall be subject to the approval of the
Council of Ministers.
5. Any contract or agreement reached by the Authority according to the
provisions of this Paragraph shall be subject to the provisions of the
enacted Supply and Procurement Regulation of the Authority.
b. Upon the Council of Ministers approval, the Board may borrow to finance
the projects and activities of the Authority from domestic or foreign
sources, including issuing bonds for this purpose.

Article (18) : a. The Chief Commissioner, as the chief executive of the Authority, shall
assume the following functions and powers:
1. Execute the Board’s decisions.
2. Supervise the administrative, financial, supplies and works affairs of
the Authority.
3. Sign contracts and agreements concluded between the Authority and
third parties as authorized by the Board.
4. Prepare the annual estimated budget of the Authority and the
Classifier Table thereof.
5. Prepare the annual report of the activities of the Authority, its balance
sheet and year-end accounts of the previous fiscal year.
6. Any other powers accorded thereto in accordance with the Regulations
issued pursuant to this Law or delegated thereto in writing by the
Board.
7. The authorities of the Minister of Transport pursuant to the Ports
Corporation Law or any other legislation in force pertinent to the
transport sector within the Zone, excluding what is related to the
marine transport without the services.
8. The Governor’s powers in the Governate of Aqaba pursuant to the
legislation in force if the Minister of Interior, upon the approval of the
Council of Ministers, does not appoint a Governor for such, whereby in
the event of his appointment, a memorandum of understanding shall
be prepared between the Minister and the Chief of the Board of
Commissioners, which shall be approved by the Council of the
Ministers. The Governor shall, when performing his functions in
accordance with the enacted legislation, take this memorandum of
understating into consideration. In the event a dispute arises between
the two parties when implementing the memorandum, the matter
shall be referred to the Prime Minister for resolution.
b. The Chief Commissioner shall represent the Authority before others.

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 c. The Chief Commissioner may delegate any of his authorities stipulated in
this Law and the Regulations issued pursuant thereto to the Vice-Chief
Commissioner, any Board member or any employee at the Authority,
provided that such delegation shall be in writing and specific.

The Authority’s Financial Affairs

Article (19) : The revenues of the Authority shall consist of the following:
a. The annual funds allocated for the Authority in the General Budget.
b. Any fees, taxes or returns accrued to the Authority according to the
provisions of this Law and the Regulations issued pursuant thereto.
c. Any fee collected by the Authority in exchange for services rendered to
others.
d. Fines and civil compensations resulting from implementing penalties for
violating any of the provisions of this Law and the laws in force in the
Zone, including implementing the penalties stipulated in Article (39) of this
Law.
e. The loans it obtains.
f. Aids, grants and donations it receives, provided that such shall be subject
to the approval of the Council of Ministers if the source is not Jordanian.
g. Proceeds from disposition by the Authority’s of its assets according to the
prescribed legal principles.
h. Any revenue from any other source accepted by the Board and approved
by the Council of Ministers.

Article (20) : a. The Authority’s fiscal year shall start on January 1st of each year and end
on December 31st of the same year.
b. The Authority shall have an independent budget, approved by the Board
and endorsed by the Council of Ministers.
c. Any surplus in the annual budget of the Authority shall be remitted to the
Public Treasury, subject to the Authority’s obligations relating to the
expenses of its future projects.
d. The accounts of the Authority shall be post audited by the Audit Bureau.
The Authority may appoint a certified auditor who shall submit his audit
report to the Council of Ministers.

Article (21) : a. The Authority shall enjoy the exemptions and facilities granted to
Ministries and Government Departments. The Authority shall be entitled to
benefit, in the Zone, from any privileges or exemption accorded to
Registered Enterprises pursuant to this Law.
b. The property of the Authority shall be considered as public property and
shall be subject to the provisions of the Collection of Domanial Property
Law in force. The Chief Commissioner or whom he authorizes for this
purpose shall assume all powers of the Administrative Governor and the
Committee for Collection of Domanial Property accorded thereof.

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 Economic Activities in the Zone

Article (22) : a. Whoever is conducting any economic activity in the Zone and is willing to
benefit from any privileges and exemptions as stipulated in this Law, shall
apply to the Authority for registration as a Registered Enterprise.
b. Procedures and conditions of registration, and registration fees collected
by the Authority and any other related matters shall be determined in
accordance with a Regulation issued for this purpose.
c. Non-Jordanian companies registered with the Authority shall be exempted
from registering with the Companies Controller.
d. Subject to Paragraph (a) of Article (17) of this Law, the Authority shall be
prohibited from owning stocks or shares in Registered Enterprises.
e. All ministries, governmental department, official corporations and public
institutions operating within the Zone shall be treated as Registered
Enterprises in order to enjoy the facilities and privileges prescribed to
these Enterprises and on the bases of the statements relating to the
movement of the goods belonging to these entities that should be
presented to the Authority.

Article (23) : Any person not registered as a Registered Enterprise may conduct an economic
activity in the Zone, provided that they comply with the basis and conditions
determined in this Law and the regulations issued pursuant thereto in relation
to Registered Enterprises and any other conditions or basis determined by the
Board. In such case, such person shall not be entitled to benefit from the
privileges or exemptions accorded to Registered Enterprises in accordance with
the provisions of this Law.

Article (24) : Any Registered Enterprise may conduct any economic activity except what is
prohibited or restricted in the Zone in accordance with a Regulation issued for
this purpose, which shall include the necessary basis and conditions for
conducting the restricted activity and the amount of returns that the Authority
is entitled to as a result thereof.

Article (25) : a. Importation of goods into the Zone shall be allowed according to the
provisions of this Law and the regulations and Instructions issued
pursuant thereto.
b. Whomever imports goods to the Zone shall take the necessary
procedures, which guarantee that the disposition of such is not done in
violation of the provisions of this Law and the Regulations and Instructions
issued pursuant to any of them.
c. In addition to what is stated in Paragraph (b) of this Article, the goods
stipulated in that Paragraph shall be considered as being illegally admitted
to the Customs Territory unless otherwise proven, whereby the provisions
of smuggling stipulated in the Customs and Taxes legislation in the
Customs Territory shall apply thereto.
d. The Authority shall report to the relevant Customs Houses of any case to
which the provisions of Paragraph (c) of this Article apply.

Article (26) : a. Registered Enterprises shall be allowed to Admit goods into the Zone.
Others may not Admit goods into the Zone except according to the bases
and conditions determined in accordance with instructions issued by the
Board for this purpose.

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 b. Individuals may Admit their personal or household effects into the Zone.
Types and quantities of such effect shall be specified in accordance with
special Instructions issued by the Council of Ministers for this purpose.

Article (26 repeated)

As an exception from the provisions of Articles (25) and (26) of this Law,
goods may be Admitted or Imported to the Zone to the entities indicated
hereunder:
a. Items admitted in the name of His Majesty the King.
b. Gifts and donations to ministries, government departments, public
institutions, state universities.
c. The imports of the Jordanian Armed Forces and Security Forces and any
Arab forces stationed in Jordan of ammunition, weapons, equipment,
military fatigue, vehicles and spare parts thereof, and any other items
specified by the Council of Ministers upon the recommendation of the
Chief Commissioner.
d. Notwithstanding any contradicting provision stated in any other legislation,
items imported for the Military Consumer Corporation and the Civil
Consumer Corporation, in the amounts, and for the classes of goods, and
at the values set by the Council of Ministers, upon the recommendation of
the Chief Commissioner, provided that the imports have no Jordanian
counterpart approved by the Council of Ministers, upon the
recommendation of the Chief Commissioner and the Minister of Industry
and Trade.
e. The personal effects of non-Jordanian and non-honorary heads and
members of the diplomatic and consular corps who work in Jordan and
are listed with the Ministry of Foreign Affairs, and the personal effects of
spouses and underage children thereof residing in Jordan, provided that
the principle of reciprocity is met and in correspondence to their actual
needs.
f. Items imported by embassies, legations and non-honorary consulates for
official use, except food, alcoholic beverages and tobacco. Imports
exempted must correspond to actual needs, and must be in reasonable
amounts. Limits on certain imports may be set by the Chief Commissioner,
upon the recommendation of a committee of representatives from the
Ministry of Foreign Affairs and the Authority, provided that the principle of
reciprocity is met.
g. Subject to inspection, items such as personal effects, furniture and
household utensils imported for the personal use of the administrative
personnel of Diplomatic and Consular missions, who are citizens of such
missions and who do not benefit from the set exemptions, provided that
the principle of reciprocity is met. Such items shall be imported within six
months from the arrival of the beneficiary, which period may be extended
by six months by permission of the Minister of Foreign Affairs. Drivers and
house attendants shall not be considered administrative staff for the
purposes of applying the provisions of this Subparagraph.

Article (27) : a. For purposes of the Customs Law and the General Sales Tax Law, goods
admitted by a Registered Enterprise to the Zone from the Customs
Territory shall be treated as exported or re-exported goods.

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 b. For purposes of the General Sales Tax Law, services sold from the
Customs Territory to a Registered Enterprise in the Zone shall be treated
as exported services.
c. Duty and tax-paid goods may move without restriction from the Customs
Territory to the Zone, and in such instances shall not be deemed exported
or re-exported goods for the purposes of the Customs Law and the
General Sales Tax Law.
d. Goods originating in the Zone, upon being exited from the Zone to the
Customs Territory, shall receive the Most Favored Nation treatment in the
Customs Territory.
e. Individuals arriving in the Zone from outside the Kingdom and entering
the Customs Territory shall be considered as travelers as defined in the
enacted Customs Law.
f. Customs Houses established on the borders separating the Zone from the
Customs Territory shall carry out their functions and execute their powers
according to the provisions of the enacted Customs Law.

Article (28) : The Council of Ministers may, upon the recommendation of the Minister of
Finance, which is based on the request of the Board, partially exempt goods
originating in the Zone from customs duties when put into local consumption in
the Customs Territory, subject to the following conditions:
a. If the production requirements of the goods and the economic feasibility
only exist in the Zone.
b. The exemption shall be limited to the value of the local materials,
expenses and costs introduced into production in the Zone, whereby all
customs duties and other fees and taxes imposed on foreign factor inputs
shall be collected according to the relevant legislation in force in the
Customs Territory.
c. The produced goods shall satisfy the rules of origin stipulated in the
Customs Law in force.

Article (29) : a. The Zone shall be considered outside the perimeters of the Customs
Territory and shall not be subject to the Customs Legislation except as
stipulated by this Law.
b. The Authority shall assume within the perimeters of the Zone customs
powers in accordance with a Regulation issued for this purpose, which
shall specifically include the following:
1. Controlling smuggling and other illegal commercial activities.
2. Issuing Instructions relevant to the importation to the Zone and
exportation therefrom.
3. Preparing statistical data and information relating to import and export
transactions.

Taxes and Duties

Article (30) : a. The following fees and duties shall not be collected in the Zone:
1. Customs duties, importation duties and other taxes and duties on
imports into the Zone.
2. The general sales tax or any other tax that substitutes it, on imports
into the Zone or sales of goods and services therein.

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 b. Subject to what is stipulated in this Law, a Registered Enterprise, from the
date of its registration, shall be exempted from all taxes and duties,
including the following:
1. Income tax, social services tax and tax on distributing dividends of
company stocks and shares on the income of Registered Enterprises
accrued from their activities in the Zone or outside the Kingdom.
2. Land and buildings tax for any buildings and land owned thereby
within the Zone.
c. The exemption stipulated in this Article shall not include the following:
1. Fees and service charges collected by other governmental bodies from
government departments for services that do not fall under the
functions, responsibilities and authorities of the Authority.
2. Tax on sale and transfer of land and property, which shall be collected
for the account of the Treasury.
3. Any taxes or fees to be imposed or collected as stipulated in this Law.
4. Taxes and fees imposed on vehicles.
d. Notwithstanding what is stated in Paragraph (c) of this Article, vehicles
used by Registered Enterprises under temporary entry status may be
exempt from customs duties and general sales tax pursuant to a
Regulation issued by the Council of Ministers.

Article (31) : Where Registered Enterprises or established investments or operations in the

Zone enjoy pursuant to any other legislation or special agreement, upon the
enforcement of this Law, better privileges and exemptions than what is
provided in this Law, such exemptions and privileges shall continue to be
applied until the period prescribed thereto lapses.

Article (32) : a. The income of the Registered Enterprise accrued from its activities in the
Zone or directly accrued from such activity outside the Kingdom shall be
subject to a (5%) income tax on its total income, which basis of
calculation and all other related matters shall be determined in accordance
with a Regulation issued for this purpose.
b. Notwithstanding what is stated in Paragraph (a) of this Article, income
accrued for banks, financial institutions, insurance and re-insurance
companies and land transport companies operating in the Zone shall be
subject to the provisions of the Income Tax Law in force, whether or not
such entities are Registered Enterprises.
c. The income of any person, other than Registered Enterprises, accrued
from his business in the Zone shall be subject to the provisions of the
Income Tax Law, including what any natural person earns as salaries,
wages, allowances, bonuses and the like, whereby such income shall also
be subject to social services tax according to the Social Services Tax Law.
d. If the income stipulated in Paragraph (c) of this Article is jointly accrued in
the Zone and the Customs Territory, the Authority or the Income Tax
Department, as the case may be, shall assess and collect the income tax
and the social services tax from these persons. The basis for assessment
and collection, the procedures for the self-assessment returns and any
other pertinent procedures shall be determined in accordance with a
regulation issued for this purpose.
e. The exemptions stipulated in the Income Tax Law in force shall apply to
any income accrued in the Zone to the entities benefiting from such
exemptions.

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 f. The following shall be exempt from the income tax stipulated in Paragraph
(a) of this Article:
1. Capital profits gained by the Registered Enterprise, including profits
accrued from the buying and selling of lands, real estate, shares and
bonds, except for the profits accrued from sale or transfer of
ownership of assets governed by the rules of depreciation prescribed
under the enacted Income Tax Law, provided that losses arising from
the sale or transfer the ownership of such assets governed by the
rules of depreciation are deducted as soon as they are realized. This
loss shall be determined in what is equivalent to the depreciation
deducted according to the provisions of the Income Tax Law.
2. The income derived from land invested in agriculture, gardening,
afforestation or from poultry, cattle, fish or bees breeding, including
income from the transformation of their products by simple manual
labor.
3. The income gained from a concession granted from or agreement
concluded by the government and which has been explicitly exempted
from tax by the terms of the concession or the agreement.

Article (33) : Subject to the provisions of the Income Tax Law and the Social Services Law
and the regulations and instructions issued pursuant to any of them, every
person, Registered Enterprise or investor in the Zone shall abide by the
following:
a. Deduct the income tax and social services tax due on payments made to
any natural person whether salaries, wages, allowances, bonuses or
allocations and remitting such to the Authority.
b. Deduct (10%) of any amount from a payment that is not exempt from
income tax, paid to a non-resident person, except what is paid by a
Registered Enterprise to an investor who invests in not less than (20%) of
its capital and remitting such to the Authority.

Article (34) : a. The Authority shall assess and collect the income tax in the Zone
according to the provisions of this Law and the Income Tax Law in force
and the regulations and instructions issued pursuant thereto. For this
purpose, the powers accorded to the Minister and the Director General
pursuant to this legislation shall be invested with the Chief Commissioner,
as appropriate.
b. Notwithstanding was is stated in Paragraph (a) of this Article, the Income
Tax Department shall continue to assess and collect in the Zone the
income tax and the social services tax and any other amounts due on
taxpayers in the Zone prior to enactment of the provisions of this Law,
and shall follow up on all judicial and legal procedures pertaining thereto
according to the enacted taxation legislation in the Customs Territory.

Article (35) : If the Authority or the Income Tax Department becomes aware that a
Registered Enterprise is dealing with persons in the Customs Territory with
whom they have a common financial benefit that is beyond the customary
dealing between unrelated persons for the purposes of decreasing the due tax
of any of such, the Authority or the Department, as the case may be, may
assess the taxable income of the Enterprise or the related person without
regard to this dealing.

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Article (36) : a. The Authority shall provide the Income Tax Department with statements
and data related to any taxable income it collects pursuant to the
provisions of this Law.
b. The Director General of the Income Tax Department or any deputy
thereof shall have the right to examine, if necessary, the records and
documents related to income tax accrued and due in the Zone according
to the provisions of this Law.

Article (37) : a. Notwithstanding what is stated in Article (30) of this Law, a sales tax shall
be imposed on goods sold and services rendered in the Zone as follows:
1. A (7%) sales tax of the value of selling goods and services when sold
into consumption in the Zone to be determined pursuant to a
regulation, provided that this regulation shall include the provisions
and procedures related to collecting and redeeming the tax.
2. A tax on the sales of local goods originating in the Zone from the Zone
to the Customs Territory according to the provisions of the enacted
General Sales Tax Law, provided that proof of payment of the tax is
presented to the Customs House without being subject to the
procedures of filing a customs declaration at the Customs Territory if
the goods are not stipulated in Article (28) of this Law.
3. A tax on sales of services from the Zone to the rest of the Kingdom or
abroad according to the provisions of the General Sales Tax Law in
force.
b. The seller of the good or service shall collect the tax stipulated in
Paragraph (a) and shall remit it to the Authority.
c. The Council of Ministers shall impose a special tax on sales of tobacco and
its products and alcoholic beverages, liquor and beer when sold into
consumption in the Zone according to Instructions issued for this purpose.
d. For purposes of this Article, the Authority shall assume the powers of the
General Sales Tax Department. The Chief Commissioner shall assume the
powers of the Director General and the Minister stipulated in the General
Sales Tax Law, as the case may be.

Article (37 repeated)

The following shall be exempt from the tax stipulated in Subparagraph (1) of
Paragraph (a) and the tax stipulated in Paragraph (c) of Article (37) of this
Law, as the case may be:
a. The purchases and imports of goods and services for His Majesty.
b. The goods and services indicated hereunder, as required by international
agreement and protocols and provided that reciprocity is accorded:
1. Goods and services purchase in the Zone by embassies, commissions
and nonhonorary consular for its personal use.
2. Goods and services purchased in the Zone by members of the
diplomatic and consular corps assigned in the Kingdom, provided that
they are non-Jordanians and non-honorary.
3. Goods and services purchased in the Zone by international and
regional organizations operating in the Kingdom and their non-
Jordanian employees enjoying diplomatic status.
c. The goods and services stated in Paragraph (b) of this Article shall be
exempted and their quantities specified by a decision of the Chief
Commissioner upon the recommendation of the Minister of Foreign Affairs.

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 d. The Council of Ministers may, in special cases and upon the justified
recommendation of the Chief Commissioner, exempt wholly or partially
from the tax imposed on any goods, service or exempt any person or
entity from such tax.

Article (38) : Subject to the provisions of the Income Tax Law, the General Sales Tax Law,
and the regulations and instructions issued pursuant thereto:
a. The Income Tax Court of Appeal shall have jurisdiction in reviewing
appeals on tax assessment decisions and reviewing tax assessments
conducted according to the provisions of this Law, as well as reviewing the
claims relating to the fines and additional amounts due according to the
provisions of this Law and reviewing any amounts that should be rebated,
paid or deducted as a final tax or as an advance payment for the tax.
b. The Customs Court of First Instance shall have jurisdiction in reviewing
the following cases. The Customs Court of Appeal shall also have
jurisdiction in reviewing appeals submitted in this regard:
1. All customs offences and violations committed in violation of the
provisions of this Law and the regulations issued pursuant thereto.
2. The offences committed in violation of the provisions of the regulation
referred to in Sub-paragraph (1) of Paragraph (a) of Article (37) of this
Law and the import and export instructions.
3. The challenges related to decisions determining the amounts subject
to the sales tax according to the provisions of this Law.
4. Detaining and releasing persons accused of committing the crimes
stipulated in Subparagraphs (1) and (2) of this Paragraph. If a case
has not been referred to the court, the Chief Judge may ask the
accused to provide monetary or notary bail, or face detention until a
final decision is issued by the competent court or the bail is submitted.
5. Releasing any goods sequestered in the cases filed before it, in
exchange of a bank or monetary guarantee in the amount of such
goods’ value, as well as releasing sequestered transport means after
marking such with the label for sequester at the competent bodies.
c. For purposes of this Article, and upon a decision from the Judicial Council,
a panel of the Income Tax Court of Appeal, the Customs Court of First
Instance, and the Customs Court of Appeal shall be charged, to hold its
sessions in the city of Aqaba periodically, as the case may be.

Article (39) : Penalties stipulated in the Income Tax Law in force shall apply to any crime
committed in violation of the provisions of this Law and the Regulations issued
pursuant thereto related to the income tax in the Zone.

Article (39 repeated (once))

a. Whoever commits any of the following acts shall be considered evading
the tax stipulated in Subparagraph (1) of Paragraph (a) of Article (37) of
this Law and Paragraph (c) thereof:
1. Failing to submit the registration application at the Authority for a
period exceeding one month from the lapse of the period prescribed
for registration.
2. Failing to submit the tax declaration for a period exceeding one
month from the lapse of the period prescribed for submitting the tax
declaration.
3. Submitting a declaration of the sales of goods or services subject to
the tax if there is a discrepancy in the value of the taxable actual

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 sales exceeding (10%) or (3000) three thousand dinars, whichever is
less.
4. Failing to keep accounting registers or their alternatives in technical
means, whereas such results in a discrepancy in the value of the
declared or due tax exceeding (200) two hundred dinars.
5. Canceling the taxpayer’s registration upon his request if it becomes
evident to the Authority that the taxpayer is still obligated to register
according to the provisions of this Law.
6. Any person collecting undue tax, unless remitted to the Authority
within the period specified in the Law for remitting the tax or it is
actually remitted prior to its discovery.
7. Disposing of any of the of the goods exempted from the tax or used
for other than the purpose for which they were exempted and this
led to a discrepancy exceeding (200) two hundred dinars from the
value of the due tax.
8. Not enabling the Authority’s employees from performing their duties
or their powers of monitoring and inspecting according to the
provisions of this Law.
9. The taxpayer collecting tax percentages or categories for taxable
goods or services in violation of the provisions of this Law, which
resulted in a discrepancy in the vale of the due tax exceeding (200)
two hundred dinars.
10. Submitting or issuing inaccurate statements, documents or data,
which resulted in a discrepancy in the vale of the declared tax
exceeding (200) two hundred dinars.
11. Possessing taxable goods in the intention of trading therein, knowing
that they are tax evaded.
b. Whoever commits any of the acts stipulated in Paragraph (a) of this Article
shall be punished by paying a civil compensation to the Authority not less
that twice the tax and not exceeding three times the tax and a fine not
less than (200) two hundred dinars and not exceeding than (1000) one
thousand dinars. The fine shall be doubled in the event of repetition. If
the act is repeated within a period not exceeding one year, the court shall
be entitled to award of the highest limit of the fine or imprisonment for a
period not less than three months and not exceeding six months or both
of such penalties.
c. The Chief Commissioner or his delegate may conclude an amicable
settlement regarding the tax evasion offences stipulated in Paragraph (a)
of this Article before a final court judgment is reached in return of paying
the tax subject of the law suit, in addition to a fine as civil compensation
for the Authority equivalent to the value of the tax. The settlement shall
result in dropping the criminal law suit, suspending its procedures and
revoking any consequences thereof.

Article (39 repeated (twice))

a. With the exception of the cases stipulated in Paragraph (a) of Article (39
repeated (once)) of this Law, the Chief Commissioner shall be entitled to
impose a fine not less than (100) one hundred dinars and not exceeding
(500) five hundred dinars on whomever commits any of the following
violations:
1. Failing to submit the registration application at the Authority for a
period not exceeding one month from the lapse of the period
prescribed for registration.

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 2. Failing to submit the tax declaration for a period not exceeding one
month from the lapse of the period prescribed for submitting the tax
declaration.
3. Submitting a declaration of the sales of goods or services subject to
the tax if there is a discrepancy in the value of the taxable actual
sales not exceeding (10%) or (3000) three thousand dinars,
whichever is less.
4. Failing to keep accounting registers or their alternatives in technical
means, whereas such results in a discrepancy in the value of the
declared or due tax not exceeding (200) two hundred dinars.
5. Failing to inform the Authority of the amendments on the data stated
in the registration application within (30) days from the date of the
amendment.
6. Failing to respond without a justified excuse to any of the subpoenas,
notices or requests issued in writing by the Authority’s employees
during their performing their duties or responsibilities according to
the provisions of this Law.
7. Disposing of any of the of the goods exempted from the tax or used
for other than the purpose for which they were exempted and this
led to a discrepancy not exceeding (200) two hundred dinars from
the value of the due tax.
8. The taxpayer collecting tax percentages or categories for taxable
goods or services in violation of the provisions of this Law, which
resulted in a discrepancy in the vale of the due tax not exceeding
(200) two hundred dinars.
9. Submitting or issuing inaccurate statements, documents or data,
which resulted in a discrepancy in the vale of the declared tax not
exceeding (200) two hundred dinars.
b. The violator shall be notified according to the followed principles of the
fine imposed thereon. The violator must pay such within (30) days from
the date of his notification.
c. Fining decisions issued in accordance with the provisions of Paragraph (a)
of this Article may be objected to in front of the Chief Commissioner within
the period specified in Paragraph (b) thereof. The Chief Commissioner
shall be entitled to cancel, reduce or fix the fine if there is indication that
justifies such. The Chief Commissioner’s decision shall be subject to
appeal at the competent court from the date of its notification. The court
shall be entitled to confirm, amend or cancel the fine.
d. The Chief Commissioner or his delegate may conclude an amicable
settlement regarding the violations stipulated in Paragraph (a) of this
Article before a final court judgment is reached in return of paying the tax
once due, in addition to a fine not less than the half the minimum limit
and not exceeding half the maximum limit. The settlement shall result in
dropping the criminal law suit, suspending its procedures and revoking
any consequences thereof.

Article (40) : a. Each Registered Enterprise shall maintain its accounts and financial
statements in accordance with a special Regulation issued for this purpose
in conformity with the International Accounting Standards.
b. The Registered Enterprise shall undertake to reflect in its financial
statements its income accrued from its business within the Kingdom
excluding the Zone and the expenses related thereto separately from its
income accrued from its business in the Zone and outside the Kingdom.

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 c. The Authority shall audit the Registered Enterprise’s accounts, records,
books and registers pursuant to Instructions issued by the Board for this
purpose.
d. Where the Registered Enterprise fails to abide by the provisions of this
Article and the Instructions issued by the Board, the Chief Commissioner
shall have the right to cancel its registration, without any breach of the
obligations imposed on it according to the legislation in force.

Article (41) : a. The Authority shall provide the General Sales Tax Department with
statements and data related to purchases of goods and services by
Registered Enterprises from the Customs Territory and their sales thereto.
b. The Director General of the Sales Tax Department or whom he authorizes,
when necessary, may examine the records and documents related to the
sales and purchases of Registered Enterprises in the Customs Territory
according to the provisions of this Law.

Article (42) : Revenues accrued according to the provisions of this Law from income tax and
sales tax shall be apportioned as follows:
a. (75%) for the Treasury and shall be remitted to the Ministry of Finance at
the end of each month.
b. (25%) for the Authority.

Lands and Buildings Zoning and Administering Coastal Areas

Article (43) : a. The Zone and the Region shall be considered a regional zoning area
according to the provisions of the Zoning of Cities, Villages and Building
Law in force and the regulations issued pursuant thereto. For this
purpose, the Board shall assume the powers of the Higher Zoning Council
and the Province and Local Zoning Committees. The Board may delegate
the powers of these Committees to special committees formed for this
purpose. The Chief Commissioner shall also, and as the case may be,
assume the powers of the Minister stipulated in the enacted Zoning of
Cities, Villages and Buildings Law and the regulations issued pursuant
thereto. The Council of Ministers may, upon the recommendation of the
Board, issue a special regulation in which it determines the bases for
zoning and buildings in the Zone and other matters related thereto.
b. The Board shall administer the coastal areas. The basis of administering
such areas on land and in the sea shall be determined according to a
Regulation issued for this purpose.

Article (44) : a. Ownership of lands registered in the name of the Public Treasury, which
fall within the perimeters of the Zone, shall be transferred to the Authority
according to the Council of Ministers’ decision.
b. The Authority shall not in any circumstances sell any of the lands referred
to in Paragraph (a) of this Article, except for purposes of establishing
hotels, educational, health and therapeutic institutions and residential and
commercial buildings, including multi-use tourism complexes, warehouses
and public service facilities, according to the basis and conditions
determined pursuant a special Regulation issued for this purpose, taking
into account the principle of reciprocity and that the laws of the
purchaser’s country allow ownership of property by Jordanians.

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 c. The Authority shall be entitled to dispose of the State’s lands, which are
not registered with the Treasury by leasing or investing such according to
Instructions issued by the Council of Ministers.

Article (45) : Notwithstanding what is stated in any other legislation, the Authority may
conclude lease contracts with others for a period not exceeding fifty years.
Upon the recommendation of the Board, the Council of Ministers may extend
such period, as it deems appropriate, in certain circumstances if the lease is
related to an investment activity in the Zone.

Article (46) : Notwithstanding what is stated in any other legislation, Registered Enterprises
shall be entitled to hold, own and dispose of immovable properties within the
Zone necessary for its activities pursuant to the Regulation issued in
accordance with Article (44) of this Law.

Article (47) : The provisions of the laws relevant to the right of preemption and priority shall
exclusively apply to residential areas in the Zone.

Entry and Residency in the Zone

Article (48) : The Council of Ministers shall, upon the recommendation of the Board, issue
special Regulations determining the basis, conditions and procedures for the
entry of non-Jordanians into the Zone, residency and work therein, particularly
the following:
a. Entry visas for non-Jordanians into the Zone, including temporary entry
visas, which are issued directly at the crossing points.
b. Residency permits within the Zone.
c. The basis for bringing foreign labor and employing such in the Zone, work
permits for non-Jordanians and their percentage to the total workers in
Registered Enterprises.
d. The fees collected by the Authority for issuing entry visas, residency
permits and work permits according to such Regulations.

Currencies and Banking and Insurance Activities

Article (49) : a. Any Registered Enterprise, investor within the Zone or any person shall
have the right to use the Jordanian or foreign currency in any commercial
transaction or for any personal purpose, including opening bank accounts
in any currency and buying and selling foreign currencies.
b. Registered Enterprises may enter or transfer foreign currencies into or
from the Zone without restrictions.

Article (50) : The provisions of the Banks Law and the Central Bank Law shall apply to any
bank or financial company conducting banking activities in the Zone or opening
branches therein.

Article (51) : Any insurance company may conduct insurance activities in the Zone or open
branches therein in accordance with the provisions of the Monitoring of
Insurance Activities Law.

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 Environmental Protection

Article (52) : For implementation of the provisions of this Law, the Board shall be responsible
for protecting and maintaining the environment in the Zone and for ensuring
sustainable development according to the basis and standards determined
pursuant to a Regulation, provided that such shall not be below the adopted
levels in the Kingdom. For this purpose, the Authority shall assume the powers
of the Public Corporation for Environmental Protection. The Chief Commissioner
shall assume, as the case may be, the powers accorded to the Minister and the
Director General stipulated in the Environment Protection Law in force.

Article (52 repeated)

a. The Aqaba Court of First Instance shall, in addition to its authorities
granted thereto pursuant to other enacted legislation, shall adjudicate the
following:
1. All environmental offences committed in violation to the provisions of
this Law and the regulations issued pursuant thereto.
2. The imposition and collection of damages, compensations and
amounts due upon the occurrence of a maritime pollution incident
according to the provisions of this Law and the regulations issued
pursuant thereto.
3. Detaining persons accused of committing the offences provided for in
Subparagraph (1) of this Paragraph and releasing such according to
the provisions of the enacted Criminal Proceedings Law. If a case has
not been referred to the court yet, the Chief Judge may ask the
accused to provide monetary or notary bail, or face detention until the
case is settled or submit the bail.
4. Releasing any goods sequestered in the cases filed before it, in
exchange of a bank guarantee in the amount of such goods’ value, as
well as releasing sequestered transport means after adopting
appropriate procedures thereon.
b. 1. The Court may be held upon its own initiative outside official working
hours and in any place deemed appropriate by the Chief Judge.
2. In emergency cases or if required by public interest, the Court may be
held, upon the request of the Chief Commissioner and upon the bases
stipulated in Subparagraph (1) of this Paragraph, to review any case
relating to environmental offences referred to it by the Chief
Commissioner as an urgent matter that cannot be delayed.

General Provisions

Article (53) : a. For the purpose of implementing the provisions of this Law, the Chief
Commissioner, any member of the Board, and any employee authorized
thereby any of them according to his authorities shall be considered as a
judicial officer. The authorized employee shall have the right to seize any
violation to the provisions of this Law and the regulations issued pursuant
thereto and to inspect in the Zone for goods prohibited from being
entered, stored or produced therein. For this purpose, the authorized
employee may enter any place, audit documents, search persons, goods
and ships and impound or detain any of the above. This shall include
taking measures related to environmental protection.

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 b. Notwithstanding what is stated in this Law or any other legislation, the
Chief Commissioner, Board members and the Authority’s employees shall
have the right to seize any violations committed in Wadi Rum in violation
of the provisions of this Law, the regulations issued pursuant thereto and
any other legislation in force and refer the violations to the competent
court according to the provisions of this Law and the pertinent legislation,
with exception of the violations of infringing on antiquities and antique
sites in the Region, which shall be seized and the necessary measures
taken against the violators according to the enacted Antiquities Law and
with the exception of the customs violations stipulated in the enacted
Customs Law.

Article (54) : a. Whoever commits the following actions in the Zone shall be imprisoned for
a period not less than one month and not exceeding one year, or a fine
not less than (100) one hundred Dinars and not exceeding (5000) five
thousand Dinars, or both penalties:
1. Violating any of the terms and provisions of transit, internal
manufacturing, temporary admission, bail and guarantees requested
by the Authority on goods or the legal re-export or that stated in the
regulations issued pursuant to this Law.
2. Removing the customs seals or buttons from goods consigned by
transit or prepared for exit or re-export.
3. Failure by the shipper or the enterprise to maintain the records and
files obligatory thereto pursuant to the provisions of this Law and the
regulations issued pursuant thereto.
4. Non-compliance by customs clearance agents with the regulations
which specify their duties.
5. Any other violations committed by any person or noncompliance with
the provisions of the Regulation referred to in Paragraph (b) of
Article (29) of this Law.
b. Whoever commits the following actions in the Zone shall be punished with
imprisonment for not less three months and not exceeding two years, or a
fine not less than (300) three hundred Dinars and not exceeding (10.000)
ten thousand Dinars, or both penalties:
1. Loading and unloading Goods to and from any means of transport
inconsistently with the Law and the regulations issued pursuant
thereto; anchoring ships, landing planes or parking other means of
transport in other than the designated sites authorized by the
Authority, or in emergency situations, without informing the nearest
customs house about this; the departure of ships, planes or other
means of transport from the harbor or the customs premise without
the Authority’s authorization.
2. Transporting or possessing goods in manner violating the provisions
of the Law and the regulations issued pursuant thereto.
3. Admitting, exiting, possessing, or transporting any prohibited goods
or which importation is forbidden, or restricted goods without
presenting evidence that the goods are legally imported; failure for
any reason to re-import goods whose exportation is prohibited or
goods which are exported temporarily.
4. Obstructing the duties of the Authority’s officials according to the
provisions of this Law and the Regulations issued pursuant thereto
and their right to search, audit and inspect, and failing to stop upon
the Authority’s officials request.

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 5. Taking a route other than the transit route designated by the
Authority or failing to use the routes and methods designated for
admission or exit of Goods.
6. Disposing of Goods admitted into the Zone under temporary entry
status or transit in violation of the provisions of the Law and the
Regulation issued pursuant thereto which pertains to customs, or
their use outside permitted areas or for other than the purpose of
import or in other than their intended function; transporting
passengers or goods within the Kingdom by means of vehicles
admitted under temporary entry status in violation of the provisions
of Laws and regulations.
7. Submitting false, forged or fabricated documents or invoices, or
putting false marks on goods with the intent of importing or
exporting prohibited, forbidden or restricted Goods or in violation of
the provisions of the Law and the regulation issued pursuant thereto
which pertains to customs.
8. Finding undeclared goods in hideouts, holes, or spaces that are not
usually intended for such goods, or bypassing customs houses at exit
without declaring goods.
9. The unavailability of a cargo manifest, or the availability of a
manifest which is inconsistent with actual cargo. Failure to declare at
entry or exit incoming or outgoing goods which are not listed in the
manifest, including passengers belongings.
10. Unloading or loading the Goods without prior permission from the
Authority, or unloading or loading at locations other than the ones
designated by the Authority or at a location other than the offices of
arrival and exit designated by the Customs Department.
11. Overages, shortages or replacements in the parcels or contents
thereof if discovered after the goods have passed the entry point.
Unjustified overages or shortages against what is listed in the cargo
manifest or the document equivalent thereto, whether the shortage
is in the number of parcels, in the contents thereof, or in the
quantities of knocked goods.
c. In addition to what is stated in Paragraphs (a) and (b) of this Article, the
following fines shall be collected in the cases specified hereunder along
with confiscating the goods subject matter of the violation:
1. Three to six times the value of goods if the subject matter of the
violation are prohibited or forbidden goods.
2. Two to three times the value of goods if subject matter of the
violation are restricted goods.
3. One to two times the amount of value of if the subject matter of the
violation is goods that are not prohibited, forbidden or restricted.

Article (54 repeated (once))

Subject to the provisions of Articles (54) and (54 repeated (twice)) of this
Law, and without prejudice to any more stringent penalty stipulated in any
other legislation, whomever violates the provisions of this Law and the
regulations issued pursuant thereto or any other legislation enacted in the
Zone shall be penalized with imprisonment for a period not less than a week
and not exceeding one year or a fine not less than (10) ten Dinars and not
exceeding (5000) five thousand Dinars or both penalties, along with
compelling the violators to provide compensation and remove the damage
resulting from the violation.

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Article (54 repeated (twice))
a. Without prejudice to any more stringent penalty stipulated in any other
legislation, whoever violates the provisions of this Law and the regulations
issued pursuant thereto or any other legislation enacted in the Zone
relating to sea water or the environment shall be penalized with the
following, along with compelling the violators to provide compensation
and remove the damage resulting from the violation:
1. Imprisonment for a period not less than a week and not exceeding six
months or a fine not less than (50) fifty Dinars and not exceeding
(10.000) ten thousand Dinars or both penalties, for anyone polluting
the sea or inflicting any damage to the environment in any manner or
by any substance other than the ones specified in Subparagraph (2) of
this Paragraph, or violating the terms, conditions or procedures set
forth in the regulations issued pursuant to this Law and pertaining to
the protection of the environment.
2. Imprisonment for a period not less than one year and not exceeding
three years or a fine not less than (50.000) fifty thousand Dinars and
not exceeding ten million Dinars or both penalties, for anyone
substantially polluting the sea or substantially inflicting damage to the
environment by means of throwing into the environment any
substances which cause significant effects on the well being of the
environment and are impossible to remove or, although removed, are
still negatively affecting the normal course of the ecosystems, or in
any other manner impeding the soundness and stability of the
ecosystems and uses thereof. Such substances, quantities and impacts
thereof which amount to substantial damage shall be specified in a
regulation issued for this purpose, taking into account what is
internationally known in this regard.
b. The person responsible for any of the violations referred to in Paragraph
(a) of this Article shall remove the violation’s causes within the period
prescribed by the court. In cases where he fails to do so, the Authority
shall remove such violation on his expense plus 15% of the violation’s
value as administrative fines. The violator shall be fined with not less than
(100) one hundred Dinars and not more than (500) five hundred Dinars
for every day he refrains from removing such causes after the period
prescribed by the court for this purpose. The source of the violation shall
be placed under seizure until all due amounts by the persons responsible
are paid.

Article (54 repeated (thrice))

a. Fines not exceeding (500) five hundred dinars, including the amount of
fines assessed according to the provisions of Paragraph (c) of Article (54)
of this Law shall be imposed upon a decision of the relevant Commissioner
or his delegate.
b. The violator or his representative shall be notified of the fine imposed
thereon pursuant to a written notice or through the registered mail. The
violator must pay the fines within (30) days from the date of his
notification or the date of his refusal to sign the notice.

Article (5 repeated (four times))

a. Fining decisions issued in accordance with the provisions of Article (54
repeated (thrice)) of this Law may be objected to in front of the Chief
Commissioner within the period specified therein. The Chief Commissioner

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 shall be entitled, and for justified reasons, to endorse, reduce or cancel
the fining decision.
b. The Chief Commissioner’s decision issued pursuant to Paragraph (a) of
this Article shall be subject to appeal at the competent court according to
the provisions of this Law within (30) days from the date of its notification
if the fine exceeds (500) five hundred dinars, including the amounts of the
fines assessed according to the provisions of Paragraph (c) of Article (54)
of this Law. The court shall be entitled to confirm, amend or cancel the
fine.

Article (54 repeated (five times))

a. The Chief Commissioner or his delegate may, and for justified reasons,
conclude an amicable settlement in the customs cases stipulated in the
regulation issued in accordance with the provisions of Article (29) of this
Law, whether before action is instituted, or during proceedings, but before
the judgment of first instance is reached. The settlement may be
concluded with the violating entity according to the provisions and terms
stipulated in the settlement contract, provided that the settlement contract
covers all compensations and expenses that should be born by the
violator. In all cases, the settlement contract shall not be held for less
than the minimum limit of the penalty stipulated in this Law.
b. The Chief Commissioner or his delegate shall issue a guide for the
amicable settlements referred to in Paragraph (a) of this Article, which
shall be published in the Official Gazette.
c. Customs action shall abate upon amicable settlement.

Article (55) : The provisions of the Import and Export Law, and the provisions relating to
incentives and limitations on foreign capital in the Investment Promotion Law
and the regulations issued pursuant thereto shall not apply in the Zone.

Article (56) : The Council of Ministers shall issue the necessary Regulations for implementing
the provisions of this Law, including the following:
a. Determining the fees imposed for the Authority according to the provisions
of this Law.
b. The Authority’s employees and personnel affairs.
c. Supplies, procurement and works and financial affairs of the Authority.
d. Formation of coastal police in the Zone, regulating its activities and
determining its authorities.
e. Regulating and administering the Aqaba Marine Park.

Article (57) : The Aqaba Region Authority Law No. (7) for the year 1987 and any
amendments thereto shall be repealed as of the date determined by the
Council of Ministers according to the provisions of Article (8) of this Law,
provided that the Regulations and Instructions issued pursuant thereto shall
remain in force until repealed or replaced in accordance with the provisions of
this Law.

Article (58) : The Prime Minister and the Ministers shall be responsible for executing the
provisions of this Law.

Law Amending the Aqaba Special Economic Zone Law Page 24 of 25