Kirschenbaum Israel-based, is qualified supplier standing with the rolls of the QIZ agreement.
The goal of establishing qualifying industrial zones was to attract investment and strengthen economic integration in the region, while providing economic incentives for further cooperation between Jordan and Israel, Egypt and Israel thus helping promote peace and stability in the region.
Products produced in a QIZ can enter the United States duty free and quota free, provided that they meet certain minimal standards. In many cases this means that products produced in these zones can enter the U.S. at lower, more competitive prices than similar products from other countries. The granting of duty and quota free access through the QIZ is a unilateral act of the United States and does not require reciprocity or trade concessions from Jordan or Egypt.
In order for QIZ products to gain duty and quota free entry in the U.S., certain requirements set by U.S. law and a Jordanian-Israeli agreement and an Egyptian-Israeli must be met. U.S. law requires that the article be a new and different article of commerce that has been grown, produced or manufactured in the zone, and that at least 35 percent of the appraised value of a product at the time it enters the U.S. must consist of the cost or value of materials produced and direct cost of producing operations performed in the QIZ.
Of the 35 percent minimum QIZ content, at least one third (or 11.7%) must be added by the Jordanian manufacturer or Egyptian manufacturer, another third must be added by Israeli manufacturers, and the remaining third may be fulfilled by production in the QIZ, the West Bank, Gaza, Israel, or the U.S. At the request of the Jordanian government, the requirement of one third (11.7%) Israeli inputs was temporarily lowered to 8% for the first five years of the implementation of the agreement.
Only Israeli companies operating in areas under Israel's customs' control shall be recognized for the purposes of applying the Israeli contribution
Q.I.Z - Qualifying Industrial Zones