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Extension of Defence Order No. 31 welcome news for local market — stakeholder

By Batool Ghaith - Jun 30,2022 - Last updated at Jun 30,2022

AMMAN — Prime Minister and Minister of Defence Bisher Al Khasawneh on Thursday issued Circular No. 59, which stipulates extending Defence Order No. 31, which would set a ceiling for the transport costs of imported goods to the Kingdom until September 30, 2022. 

This decision follows demands from the Association of Owners of Clearance and Transport Companies.

President of the Association of Owners of Clearance and Transport Companies Deifallah Abu Aqouleh called for the extension of Defence Order No. 31 as it supports the entry of goods into the Kingdom at low costs while freight prices are high.

Abu Aqouleh praised the PM’s decision to extend the defence order.

“This will reflect positively on the stability of the value of goods in the local markets, in addition to reducing costs on traders as well as customs duties,” he told The Jordan Times on Thursday.

Abu Aqouleh said that freight costs, which are four to five times more expensive after the pandemic, are paid either way, “which is why we aim to reduce any costs such as customs duties, as well as keep adopting pre-COVID prices”.

He expressed hope that prices would revert to their previous levels in the coming months.

He also encouraged the government to extend Defence Order No. 31 until the end of 2022.

Defence Order No. 31 stipulates that the ceiling of the costs of transporting imported goods is related to the place of their border entry and origin. The price ceilings are as follows: 

First: Goods originating from East Asia and the Far East: The ceiling of freight charges for a container with a capacity of 20 feet is $2,000 and for a container with a capacity of 40 feet is $4,000.

Second: Goods originating from Europe: The ceiling of freight charges for a container with a capacity of 20 feet is $1,500 and for a container with a capacity of 40 feet is $3,000.

Third: Goods originating from the Americas: The ceiling of the costs of freight for a 20-foot container stands at $1,700 and for containers with 40 feet capacity stands at $3,400.  

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