Jordan's Regulatory Framework for Importing Used Cars from China

Due to its strategic location and growing economy, the Hashemite Kingdom of Jordan has become an important market for used car imports, including many from China. Jordan has refined the regulatory framework for importing used cars to ensure quality, safety, and environmental concerns as it continues to develop its automotive sector. This article presents a holistic view of how China’s used cars may be imported into Jordan by considering import policies, documentation, taxation, and market insights.

Automotive Market Overview in Jordan

The demand for personal vehicles and country’s economic progress have propelled Jordan’s automobile market to grow steadily. The market is characterized by a preference for SUVs and crossover vehicles, which account for over half of the new car sales due to their suitability for Jordan's diverse terrain and family needs.

•       Sales of new cars hit a 5-year high in 2022 at 37,000 units with a 12% year-on-year increase in the first ten months of 2023.

•       Kia, Hyundai and Toyota are dominating new car markets while Chinese MG has also made presence.

•       Used cars make up approximately 70% of total car imports within Jordan hence representing a comparatively strong used car market.

Import Policies for Used Cars from China

In order to regulate the age and condition of used vehicles coming into its market, Jordan has established particular policy guidelines:

•       Age of used cars must not exceed ten years from the year of manufacture.

•       Only left-hand drive vehicles are allowed to match Jordan driving rules.

•       Vehicles can be granted temporary entry with a temporary entry permit which can be extended up to a total of 8 months.

•       To achieve permanent entry, Qualified Industrial Zones (QIZ) would receive the vehicles and have them checked before carrying out payment of duties.

Taxation Policy for Used Car Imports

The purpose of Jordan’s taxation policy is to promote the importation of environmentally friendly cars:

•       The customs duties on electric vehicles of up to 250 kW have been reduced from 25% to 10% and for electric vehicles of over 250 kW, customs duties have been reduced from 25% to 15%, indicating a signal of encouraging the uptake of electric cars.

•       The government has also taken steps to reduce the overall tax burden on electric vehicles by replacing the weight tax with a 4% tax on the vehicle's sale price, in addition to a 25% sales tax.

Documentation Required for Used Car Imports

The following documents must be provided as minimum requirements during importation:

•       Original certificate of ownership and registration

•       Original commercial/purchase invoice

•       Import customs declaration form

•       Original Bill of Lading (OBL)

Market Dynamics and Future Outlook

The automobile sector will keep on growing in Jordan with an emphasis on sustainability and modernization. The market is set to expand as Jordan's economy grows and the demand for personal vehicles increases. This indicates that future policies might even more show support for eco-friendly imports through an emphasis on electric or hybrid vehicles. The regulatory framework is anticipated to evolve to accommodate new technologies and global environmental standards.

Summary

Jordan’s importation policy for used cars from China strives to balance between economic requirement and environmental concerns. By understanding import policies, tax rates as well as documentations needed Chinese exporters can effectively penetrate or navigate in the Jordan’s market. As the market matures and new opportunities arise, these regulations will play a crucial role in shaping the future of Jordan's automotive industry.

Please note that used car import tax rates and policies may change over time or be adjusted according to the latest regulations from the government. Therefore, it is advisable to confirm the most current tax information with relevant tax and customs authorities before importing.