ALGERIA

Based on information collected up to August 2002


1      TARIFF MEASURES
Structure of the tariff schedule

Algeria applies the 2002 version of the Harmonized Commodity Description and Coding System.  In addition to the six-digit subheadings of the Harmonized System, a seventh digit is used for the purpose of the Arab Maghreb Union and an eighth for national requirements.

Tariff publications

Current information on customs-related matters is available from:
Direction Générale des Douanes
Rue du Docteur Saadane
Alger

The on-line tariff edition provided on the homepage http:www.douanes-cris.dz/ contains information about all ad valorem rates, specific taxes, and special import procedures.

Tariff rates 

 
12 Order No. 01.02 of 20 August 2001 established a new customs tariff in force since 1 January 2002.  The customs tariff contains one column of MFN rates granted to the GATT contracting parties.  MFN duty rates have four levels (0%, 5%, 15%, and 30%) applied on the c.i.f. value.  Low rates apply to unprocessed products, energy and lubricants.  High rates are set on food, beverages, tobacco, and consumer goods.
16 Exemption for imported capital goods, products and materials intended for oil activities is provided by Art. 58 of law No. 86-14 of 19 August 1986, as amended.

Under the 2001 Finance Law (law No. 2000-06 of 23 December 2000), organic and chemical products used for the production of pharmaceutical products enter duty-free.

Inputs used for the manufacture of goods intended for export are admitted free of customs duty in accordance with the 2001 Finance Law (law No. 2000-06 of 23 December 2000).

The new Investment Code (the Order of 20 August 2001 on the development of investment) allows for capital goods to be imported at reduced rates of customs duty.

19.1 On 19 February 1997, the Economic Council of the Arab League decided to establish an Arab free-trade area over a period of ten years starting from 1 January 1998.  During the ten year period, member countries ought to reduce their respective tariffs by 10% annually.  As from 1 January 2007, the free-trade area was scheduled to be fully operational.  Algeria, Comoros, Djibouti and Mauritania did not join the Agreement.  Lebanon, Libya, Palestine, Somalia, Sudan and Yemen did not start the implementation.
19.2 The treaty of 17 February 1989 setting up the Arab Maghreb Union provides for the eventual introduction of the free movement of goods between the five countries (Algeria, Libya, Mauritania, Morocco, and Tunisia) which are members of the Union.  Two conventions have been signed in connection with the implementation of this objective: (1) the Trade and Tariff Convention concluded in 1991, which confers exemption from customs duties, taxes and charges of equivalent effect on all imported products originating in member countries, and (2) the Convention of 23 July 1990 specifically covering trade in agricultural products.  However, a start has yet not been made on applying these two conventions.
19.3 Bilateral trade agreements with Tunisia, Morocco and Libya provide for total customs duty exemption for all products originating in these countries.  The Trade and Tariff Convention with Tunisia signed on 9 January 1981 was supplemented by an Additional Protocol of 17 May 1984.  Algeria's trade relations with Morocco are governed by the Trade and Tariff Convention concluded on 14 March 1989, amending the Convention of 17 March 1973.  The Trade and Tariff Convention with Libya was signed on 1 December 1987.

The Trade and Tariff Convention with Mauritania signed on 23 April 1996 provides for the lifting of non-tariff barriers and progressive elimination of customs duties for originating products on the basis of jointly agreed lists.

The Tariff Convention with Jordan was signed in 1997.  This convention provides for customs duty exemption for originating products and is being ratified.

Bilateral trade conventions with Syria, Egypt and Iraq provide for reciprocal tariff preferences applicable on the basis of lists of import and export products.  Despite the fact that they are still in force, these three conventions have never been put into effect.

The Trade and Tariff Agreement with Mali signed on 11 July 1996 replaces the Trade and Tariff Convention of 4 December 1981.  However, this agreement has not yet been ratified.

The Trade Agreement of 7 October 1981 with Senegal has not been applied as the nature of the products which should enjoy the exemption concerned has not yet been decided on.


 2     PARA-TARIFF MEASURES

Additional charges
 
22.8 A "droit additionel provisoir" (DAP) was introduced under the 2001 Supplementary Finance Law of 19 July 2001 due to be phased out over a period of five years.  A rate of 60% was charged on 300 products for the year 2001 and will be reduced annually by 12%.

A "taxe à l'abattage" of DA 1 kg is levied on fresh, chilled, frozen, salted and prepared meat of slaughtered animals.  It is paid into a special fund for the protection of animals.

"Droits de garantie et d'essai" at specific rates are set on articles of platinum, gold and silver.

A "redevance douanière" is charged at 4 per mill.

A "redevance pour formalités douanières" of 2% of the customs value is levied on import declarations except those destined for the Ministry of National Defence, and primary goods which enter duty free.

A "redevance sur l'utilisation de l'infrastructure routière" applies to foreign registered motor vehicles which  transport goods or persons over national territory.  This fee consists of a fixed and a variable component depending on the type and total laden weight of the vehicles and the distance to be covered.

23.2 The "taxe intérieure de consommation" (TIC) at specific rates is charged on beer, matches, tobacco and tobacco products.  Ad valorem rates between 10% and 90% apply to salmon, caviar, fruits, coffee, liquors, worn clothing, off-road and other motor vehicles.

A "taxe sur les produits pétroliers" (TPP) at specific rates is set on petroleum oils and petroleum gases.

"Droits de circulation sur les alcools" are levied on wines and spirits at specific rates.

A "taxe additionnelle sur les produits tabagiques" of DA 1 kg has been introduced by the 2002 Finance Law of 22 December 2001.

Internal taxes and charges levied on imports
 
23.1 A value added tax is charged at a rate of 17%.  Art. 23 of the turnover Code provides for a reduced rate of 7% applicable to the following products listed in the 2001 Finance Law of 23 December 2000: live animals, crustaceans and molluscs, vegetables, dates, cereals, flours, yeast, pharmaceutical products for veterinary use, insecticides as well as fungicides and herbicides for agricultural use, newsprint and printed matters, turbines, radar apparatus, and railway or tramway track fixtures.  Special promoted projects are also liable to the reduced rate of 7%.  These include imports on behalf of SONELGAZ in the energy sector, products for the manufacture of traditional handicraft, raw or manufactured articles used for construction and repair of ships and aircraft, and imports in CKD and SKD condition intended for industries assembling motor vehicles.  Exemption from VAT is provided for non concentrated milk and cream, pharmaceutical products, fertilizers, capital goods, goods allowed duty-free entry under special provisions, cereals used for the manufacture of bread flour and semolina from milled cereal grain, supplies intended for ships or aircraft which accomplish international shipping or flights, products and materials destined for the exploitation of hydrocarbons by SONATRACH, special designed motor vehicles or wheelchairs imported on behalf of disabled people, inputs used for the manufacture of goods intended for export, barter imports, and products liable to the "taxe à l'abattage".


  4     FINANCE MEASURES

Finance measures n.e.s.
 
49 All imports must be domiciled at a bank in order that trade statistics and flows of fund may be monitored in accordance with regulation No. 95-07 of 23 December 1995.

Banking domiciliation is the procedure required for access to foreign exchange.

Proceeds must be repatriated within 120 days.  Petroleum companies are subject to the same rule, but proceeds may be deposited in a guaranteed account with a foreign correspondent bank of the BOA.

All export proceeds from crude and refined hydrocarbons, by-products from gas, and mineral products must be surrendered to the BOA.  Exporters of other products must surrender 50 per cent of the proceeds to the interbank market;  the remaining portion may be retained in a foreign currency account.  Exporters may use the funds in these accounts for imports or other payments pertaining to their business, or they may transfer the funds to another foreign currency account.  Proceeds from exports of non-hydrocarbons, and non-minerals may be surrendered to commercial banks and other authorized participants in the interbank foreign exchange market.

An interbank foreign exchange market was established in the beginning of January 1996.  Under current regulations, export proceeds will be held entirely in Dinar (i.e. hydrocarbons) or else half in Dinar and half in foreign exchange (i.e. non-hydrocarbons products).


   6       QUANTITY CONTROL MEASURES
Licensing under the authority of:
Ministère du Commerce
Rue Dr. Saadane
Alger

Non-automatic licensing

Algeria does not at present have an import licensing system, but the importation of certain products is made subject to the issue of a prior authorization by the competent authority.  Algeria intends to establish an import licensing regime during the first quarter of 2003.

 
61.2 The 2001 Finance Act and Executive Decree No. 01-397 of 9 December 2001 provides for cigars, cigarettes and other tobacco products to be imported by legal persons approved as tobacco manufacturers subject to prior authorization.
61.43 The Interministerial Order of 14 December 1994 lays down the rules for barter transactions on the borders with Niger and Mali.  The list of traders responsible for carrying out barter transactions is fixed annually.  There is an established list of goods authorized for barter trade comprising equipment, raw materials, semi-finished products, spare parts and tools.
61.71 Under law No. 85.05 of 16 February 1985 on the Protection and Promotion of Health, imports of pharmaceutical products, medical supplies, medical materials, equipment and apparatus require prior authorization from the Ministry of Public Health and Population.

Consumer goods of a toxic nature or particularly hazardous products are subject to prior import authorization from the Ministry of Trade.  Details are available in Executive Decree No. 97.254 of 8 July 1997 in application of Art. 16 of the Consumer Protection (General Provisions) Act, law No. 89.02 of 7 February 1989 providing a list of toxic and hazardous products (i.e. cleaning agents and cleaning solvents, polish and products used for polishing, antifungal products, pesticides for domestic use, matches, products containing methyl alcohol, fire-extinguishing products, anti-freeze preparations, caustic products, anti-mist products for linen, sprays (other than cosmetics), products for children's education and play containing chemicals or chemistry sets, children's paints and modelling clay, paints and varnishes, glues and adhesives, and food products containing concentrated sweeteners).

Algeria has ratified the Washington convention (Convention on International Trade in Endangered Species of Wild Fauna and Flora; CITES).  As a party, Algeria maintains import controls on a number of animals and plants, including their parts and derivatives.

61.78 Arms and ammunition not considered to be war material may be imported subject to prior authorization from the Ministry of Interior after consulting the Ministry of Defence.  Details are available in the order No. 97.06 of 21 January 1997, amended by Executive Decree No. 98.96 of 18 March 1998.

Imports of sensitive equipment such as telescopes, binoculars, and certain telecommunication require prior authorization in conformity with the Interministerial Decree of 18 June 1996.  Depending on the category of products, prior authorization is issued by the Ministry of Interior and Local Authorities, the Ministry of Post and Telecommunication or the Ministry of Transport.  Sensitive chemical products require a prior authorization from the Ministry of Energy and Mining.

61.79 With regard to foreign periodical publications containing various areas of information, the importation of these products is subject to prior authorization from the Ministry of Communication and Culture, essentially for religious reasons, particularly public morals pursuant to the Information Act, law No. 90.07 of 3 April 1990.

Authorization to operate cinematographic films imported from the USA, France, Egypt, and India is required pursuant to decree No. 88 of 10 October 1988.

Quotas
 
62.74 The release into free circulation of substances (CFCs, halons - alone or in mixtures) controlled by the Montreal Protocol on Substances that Deplete the Ozone Layer  (1987) and its later amendments and imported from a State that is a party to the Protocol, is subject to quantitative limits.
Prohibitions

Prohibitions are introduced on grounds of public morality, public order, public safety and protection of the health and life of persons and animals. 

 
63.4 The Algerian government may impose temporary prohibitions on animals or products of animal origin intended for human consumption in order to protect consumers' health.
63.71 Toxic or particular hazardous products importable subject to prior approval from the competent authority are prohibited if they contain harmful chemical substances listed in the above legislation.
63.74 As a party to the Montreal Protocol on Substances that Deplete the Ozone Layer (1987) and its following amendments, Algeria operates a ban on the import of controlled substances listed in Annex A to the Protocol (chlorofluorocarbons and halons) from any State not party to this convention.
63.77 Motor vehicles must not be older than 3 years at the date of importation.  Under the 2002 Finance Law, this measure was prolongated for another year.
63.78 For security reasons, the import of toys imitating handguns is prohibited.

Imports of used tyres are prohibited.

63.8 As a member of the League of Arab States, Algeria applies the different degrees of the embargo decreed by this institution in 1954 with regard to products originating in Israel.


 7       MONOPOLISTIC MEASURES

Single channel for imports
 
71.1 Under decree No. 29/MSP of 6 May, the Ministry of Health reserved the monopoly to import blood products, narcotics, vaccines and radio pharmaceutical medicines to state enterprises.

   8      TECHNICAL MEASURES
Technical regulations

Standards are formulated and enforced by:
Institut Algérien de Normalisation
5, Rue Abou Hamou Moussa
1600 Alger

 
81.1 Art. 3 of law No. 89.02 on consumer protection provides that any product to be consumed must meet the approved standards and the legal and regulatory specifications applicable to it.  Law No. 89.23 on standards provides that Algerian standards include approved standards and registered standards.  Approved standards are compulsory whereas registered standards are voluntary.  The Algerian standardization system is largely based on international practice.

Under the National Metrology Act, law No. 90-18 of 31 July 1990, instruments of measurement must conform with a design approved in Algeria.

Pharmaceutical products for use in human medicine must be registered with the Ministry of Health and Population.

Health derogation from the Ministry of Agriculture is required for animals, animal products, and products of animal origin.  The derogation is a document certifying that no notifiable disease has been reported in the exporting country.  Details are available in the Veterinary Medicine and Protection of Animal Health Act, law No. 88-08 of 20 January 1988.

A prior technical authorization is required for seeds and plants.  A prior technical authorization is a document certifying that the plant material originates in a country officially declared free of harmful organisms subject to quarantine.  Details are available in the Phytosanitary Protection Act, law No. 87-17 of 1 August 1987.

Industrial products intended for household equipment must be accompanied by conformity and guarantee certificates, the model and period of validity of which are laid down in the Order of 10 May 1994.

Algeria applies the principle of equivalence of sanitary and phytosanitary measures and has a number of bilateral sanitary agreements.

Imports of second-hand clothing require a certificate of disinfection in conformity with law No. 85.05 of 16 February 1985 on the protection and promotion of health.

A list of authorized sweeteners in food products is available in the order of 15 December 1999.

Technical specification requirements are set on milk-powder in conformity with the order of 27 October 1999, amended by the order of 2 April 2000.

81.2 The marking of shelf-life date is mandatory under Executive Decree No. 96-354.
81.3 All imported goods must comply with labelling requirements established in the decree Nos. 90-366, 90-367, and 90-354.

Tobacco products are subject to labelling requirements indicating the name of the importer and the country of origin in accordance with the 2001 Finance Law.

81.3/4 Pursuant to the order of 26 May 2002, labelling and packaging requirements are set on poultry imported to be consumed.
81.5 Any products with an expiry date must, on the date of inspection, posses a durability exceeding 80 per cent of its life.

The list of products subject to systematic inspection is annexed to the Order of 3 January 1998 supplementing that of 3 March 1997.  Priority is given to food, cosmetics and personal hygiene products in view of their risk for consumer health and safety.

The importation of live animals and products of animal origin is governed by law No. 88-08 of 26 January 1988 and Executive Decree No. 95-363 of 11 November 1995 on veterinary inspections at border posts.

Phytosanitary and agricultural pesticide controls are based on law No. 87-17 of 1 August 1987 on phytosanitary protection, amended by decree No. 93-139 of 14 June 1993.

All plant products included in the schedule attached to Annex II of decree No. 93-283 of 23 November 1993 are subject to compulsory phytosanitary inspection.

Order No. 306 SPM of 18 November 1995 lays down specific phytosanitary requirements for imports of potato tubers.

Plant Protection Law No. 87-17 and decree No. 93-286 institute and fix official points for the entry of plants and plant products.

Food products are subject to food health safety requirements in respect of pesticide residues, heavy metals and other contaminants.

81.6 Pursuant to law No. 88.08 of 26 January 1988, Algeria established a list of animal diseases subject to compulsory declaration and the general measures applicable to them.

Pursuant to Executive Decree No. 95-387 of 28 November 1995, Algeria established a list of plant pests and the surveillance and control measures applicable to them.  The list comprises two categories: 
- List A of harmful organisms that must be combated, and 
- List B of agricultural diseases.

The implementation is covered by Phytosanitary Directive No. 388 of 27 May 1996.