Note: the information on this page can be time
sensitive. Rules, regulations, and government policies often
change. This page was published on Apparel Search in
February 2015. This
information will be left for historical reference and we will make
updates periodically if possible. However, please do NOT rely
strictly on the information listed on this page. Please contact
the appropriate government resources to determine the most accurate and
current details regarding the Qualifying Industry Zones.
In 1996, the U.S. Congress established the
Qualifying Industrial Zone (QIZ) initiative to support the peace process
in the Middle East. The QIZ initiative allows
to export products to the United States duty-free, as long as
these products contain inputs from
The QIZ legislation authorizes the President to proclaim elimination of
duties on articles produced in the West Bank, Gaza Strip, and
qualifying industrial zones in Jordan and Egypt. The
Office of the
United States Trade Representative (USTR), in consultation with
other U.S. Government agencies, designates QIZs. Until December 2004,
all QIZs had been established in Jordan.
In order for QIZ products to be eligible for
duty-free entry into the United States, the article must be a new and
different article of commerce that has been grown, produced or
manufactured in the zone, and at least 35 percent of the appraised value
of a product at the time it enters into the U.S. must consist of the
cost or value of materials produced and direct cost of producing
operations performed in the QIZ.
Generally speaking, U.S. tariffs on textile and
apparel goods are relatively high, which makes production of these goods
in QIZs especially attractive.
For general importing information, see the U.S.
Customs and Border Protection guide, Importing into the United States.
Technical questions can be addressed in writing to:
U.S. Customs and Border Protection (CBP)
Office of Regulations and Rulings
Special Classifications and Markings Branch
1300 Pennsylvania Ave. N.W.
Washington, D.C. 20229
Note: Include complete information about
manufacturing processes, the origin of inputs and other details relevant
to determining whether the product qualifies for duty-free treatment.
Presidential Proclamation 6955 established QIZs in
Jordan, the West Bank, and the Gaza Strip on November 21, 1996. For a
list of the QIZ locations see the Jordan Investment Board (JIB) website.
Products manufactured in QIZs must comply with
strict rules of origin:
1) 35% Jordanian content, of which 11.7% must come
from a Jordan QIZ. 8% from Israel (7% for high tech goods). the
remainder of the minimum may be fulfilled by content from a Jordan QIZ,
Israel, USA or West Bank / Gaza.
2) 20% Jordanian content + 15% U.S. content
Furthermore, the U.S.-Jordan FTA rules of Origin
require that Jordanian exports to the United States must have 35 percent
Jordanian content in order to receive FTA duty benefits.
The duty free benefits provided by QIZs remain
particularly important for Jordanian products for which duty free
treatment has not yet been phased-in under the United States-Jordan FTA.
Under the FTA, tariffs on the majority of apparel, textile made-up
goods, footwear and travel goods are being phased out in stages and will
not become duty-free until January 1, 2010. Under the QIZ initiative,
these goods would enjoy immediate elimination of tariffs and quotas, and
would require a lower level of Jordanian inputs. Thus for some
high-tariff goods, QIZ-produced products enjoy a comparative advantage.
The first Jordan QIZ, Irbid Qualifying
Industrial Zone, was created in November 1997. Subsequently, the
following zones have been designated in Jordan, by agreement between the
Government of Israel and the Government of Jordan: the Gateway Projects
Industrial Zone, and the expansion of the Irbid QIZ in November 1998;
the Al-Kerak Industrial Estate, the Ad-Dulayi Industrial Park, and the
Al-Tajamouat Industrial City in September 1999; the Industry and
Information Technology Park Development Company (Jordan Cyber City Co.),
and the Aqaba Industrial Estate in August 2000; the Mushatta
International Complex, and the Al Qastal Industrial Zone in November
2000; the Hillwood-Hashemite University LLC (“Zarqa Industrial Zone"),
and the expansion of the Ad-Dulayi Industrial Park in March 2001; the Al
Hallabat Industrial Park, and the expansion of the Al Tajamouat
Industrial Park in July 2003; and Shoubak, Shouneh Wistah, Madaba/Dalilet,
Irbid/Al-Westieyn, and Al-Tafileh in January 2009.
For more information on Jordan QIZs:
Jordan Investment Board (JIB) website
In December 2004, three QIZs were designated in
Egypt: the Greater Cairo zone, the Alexandria zone and the Suez Canal
Zone zone. Subsequently, the following QIZs have been designated in
Egypt, established in Egypt by agreement between the Government of
Israel and the Government of Egypt: the Central Delta Zone, and the
expansion of the Greater Cairo and Suez Canal zones in August 2005; and
the Beni Suief and Al Minya zones in January 2009. For a current list of
the QIZ locations, see the Egyptian Ministry of Trade and Industry QIZ
The Egyptian Government has reported that the
textile and apparel industry, which is the oldest and largest domestic
industry, has benefited the most from the QIZ initiative. Ready-made
textile and apparel products make up the largest volume of exports to
the U.S. under the QIZ initiative. Specific apparel items include
jackets, pants, shirts, tops, T-shirts, shorts, jackets, twin-sets and
pullovers. Textile products include towels and bed sheets. The leather
products and athletic footwear industries are also expected to gain from
the QIZ initiative. Egyptian companies working under the QIZ initiative
primarily import fabrics. These imports are followed by chemicals,
zippers, threads, packaging material and other apparel accessories.
In order for an Egypt QIZ article to be eligible
for duty-free entry into the United States, QIZ factories must add at
least 35% to the value of the article. The 35% minimum content can
include costs incurred in Israel, Egypt, or the United States. Egypt and
Israel have agreed that each must contribute at least one-third (11.7%)
of the 35% minimum content requirement. However, the Israeli content
requirement was lowered to 10.5% in October 2007.
For more information on Egypt QIZs:
Egyptian Ministry of Trade and Industry QIZ website
If you have any questions about this program,
please contact the U.S. Department of Commerce Office of Textiles and
Learn more from the following:
International Trade Administration
Office of Textiles and Apparel (OTEXA)
U.S. Department of Commerce
Washington, DC 20230
Phone: (202) 482-5078 | Fax: (202)
You may also find the
apparel industry government resources section here on Apparel Search
to be helpful to you.