Representatives of industrial sectors affirmed that the decision to cancel the manufacturing equation is a step in the right direction, and an opportunity to develop and support some national industries.

They told the Jordan News Agency (Petra) that this decision reduces the obstacles facing the work of industrial facilities and facilitates their work, and reduces the bureaucratic procedures for issuing them, which saves time, effort and costs for the facilities. The manufacturing equation is defined as an equation provided by industrial establishments for each product that they produce, provided that it includes all the inputs necessary for its production and their proportions, including the percentage of losses for this product. The manufacturing equation regulates the entry of imports of raw materials and their use in factories inside and outside the development areas, and it is issued and approved by the relevant authorities, such as the Customs Department, the Ministry of Industry and Trade, the income and sales tax, and the Ministry of Investment.

The head of the Jordan and Amman Chambers of Industry, Eng. Fathi Al-Jaghbir, said that the industrial facilities were already suffering from the complications that accompany their issuance and the fees imposed on them, as the length of time required to obtain approval of manufacturing equations for new products and the procedures for determining the Jordanian origin of them with the concerned authorities extends for a period of 3 months.Approximately. Jaghbir added, one of the obstacles is also the inflexibility of the mechanism for adopting manufacturing and origin equations, as it is not possible to add, cancel or modify any manufacturing equation unless the old equations are completely deleted and new equations are added, stressing that this constitutes many obstacles for Jordanian factories in terms of time, effort and costs. It is directly related to the business environment.He stressed that the decision to cancel the equation has several positive dimensions, most notably easing the bureaucratic procedures for its issuance, in a way that reduces time, effort and costs on industrial establishments, pointing to the importance of canceling the industrialization equation in removing some distortions that accompany the import of dual-use production inputs and constitute a burden for a number of related industries. Jaghbir expressed his hope that the decision would be an opportunity to develop some industries and introduce new products, without the previous trouble to review manufacturing equations or introduce new equations, and this increases the chances of the national industry in competition and searching for new markets in an easier way.Jaghbir explained that the decision to cancel the manufacturing equations could conflict with the privileges granted by the Ministry of Investment to companies within the development areas, and therefore it is necessary to clarify the decision mechanism, especially for these factories, in a way that requires preserving their gains and encouraging the current companies investing in these areas to stay within the development areas and to attract new investments. He stressed the need to move forward in the process of economic reform, which requires a great effort to enable the industrial sector to utilize its capabilities optimally, and enable it to promote the desired economic and social development, as it is most capable of advancing economic growth and effectively addressing the problems of poverty and unemployment.He stressed the need to move forward in the process of economic reform, which requires a great effort to enable the industrial sector to utilize its capabilities optimally, and enable it to promote the desired economic and social development, as it is most capable of advancing economic growth and effectively addressing the problems of poverty and unemployment.He stressed the need to move forward in the process of economic reform, which requires a great effort to enable the industrial sector to utilize its capabilities optimally, and enable it to promote the desired economic and social development, as it is most capable of advancing economic growth and effectively addressing the problems of poverty and unemployment.

For his part, the head of the “Made in Jordan” campaign system, Dr. Iyad Abu Haltam, confirmed that the decision to cancel the manufacturing equation is a step in the right direction, because it greatly facilitates the factory’s work, pointing out that the responsibility for making the manufacturing equation now rests with the factory itself, which is Who will bear its responsibility without being approved by the four government agencies, in addition to that this decision was a requirement of the Chambers of Industry previously. He stressed not to confuse the manufacturing equation with value-added conditions, as every Jordanian factory that wants to declare itself a Jordanian industry must meet the value-added conditions stipulated in the law, which are subject to the supervision of the Ministry of Industry and Trade and the Department of Industrial Development in it, indicating that the added value of the local product You must achieve a minimum of 30% to be considered a Jordanian industry.Abu Haltam pointed out that the added value rises according to the conditions of origin when exporting to some countries, for example, when exporting to Arab countries, it must achieve a minimum of 40 percent value added, which is a completely different issue from the manufacturing equation and must be paid attention to. In turn, a member of the Board of Directors of the Businessmen Association, Engineer Yousry Tahboub, said that canceling the manufacturing equation means that all materials needed for production are exempted as a result of reducing customs duties, and this contributes to supporting the industry, noting that this decision helps the production line to operate more items and products, and does not prove Manufacturing equation within the Ministry of Industry, Trade and Supply. He pointed out that this decision contributes to supporting the industry, but today it is facing a challenge in the customs laws that granted foreign goods entry to the Jordanian market and compete with its industry.Eng.Tahboub pointed to the need to change the way manufacturing or industry works in Jordan, by finding innovative and new ways, indicating that the technological development taking place in the world of industry will compete with products that will enter the Jordanian market with low customs duties. And he indicated that the challenge facing the Jordanian factory today is globalization, as after canceling the manufacturing equation, all its inputs will be exempt from customs, but they will enter into competition with large companies in the world supported by major industrial countries, stressing the need to work in innovative ways, and reduce costs in order to compete and keep pace with globalization. .For his part, a member of the administrative body of the Jordanian-Palestinian Businessmen Forum, Rasmi Al-Mallah, said that this decision has a significant impact if it is linked to the presence of the factory in industrial development areas, such as coffee and nuts factories, explaining that these materials were entered into the areas without customs duties and sales tax and after being re-manufactured. And applying it to the manufacturing equation and taking it out to the market, customs duties and sales tax are paid, which increases the cost, and now after its abolition, these fees will disappear and only 5% will be paid, as the extent of their impact on the industry is measured.Al-Mallah added that the factory located outside the development areas will have an impact of this decision on the income tax, explaining that the raw materials that go into the manufacture of a specific material consisting of four or five materials have a manufacturing equation, where the cost of raw materials or sales is calculated and may reach from 35 to 45 percent according to the factory and their formula, and in this case, the income tax becomes open and they must adhere to this formula in the inventory at the end of the year.

He pointed out that the effect of canceling the industrialization equation is related to the factory and its location if it is in the industrial development areas or outside it. (Petra) - Rabaa'a Promise

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