RESTRICTED
WORLD TRADE WT/ACC/DZA/4
22January 1998
ORGANIZATION(98-0206)
Original: French Working Party ontheAccession ofAlgeria
ACCESSION OFALGERIA
Additional Questions andReplies totheMemorandum
ontheForeign Trade Regime
(Document WT/ACC/DZA/1)
ThePermanent Mission oftheRepublic ofAlgeria hascommunicated totheSecretariat the
replies totheadditional questions putbyMembers. Thequestions andreplies arereproduced below.
TheAnnexes canbeconsulted attheSecretariat (Accessions Division, Office 1126).
_______________
TABLE OFCONTENTS
Question Page
I. INTRODUCTION 1
II. ECONOMY, ECONOMIC POLICIES AND 1
FOREIGN TRADE
2. Economic policies 1
(c) Foreign exchange regime and 1-3 1
liberalization offoreign trade
(d) Investment promotion policies 4-10 2
(e) Price andcompetition policy 11-15 5
III. FRAMEWORK FOR MAKING AND 7
ENFORCING POLICIES AFFECTING FOREIGN
TRADE
2. Government entities responsible for 16 7
theelaboration andimplementation
offoreign trade policy
4. Anylegislative programmes orplans 17-18 8
tochange theregulatory regime
5. Laws andlegalacts 19-20 8WT/ACC/DZA/4
Pageii
Question Page
IV. POLICIES AFFECTING TRADE INGOODS 9
1. Import regulations 9
(a) Registration requirements forengaging inimporting 21-24 9
(b) Characteristics ofthecustoms tariff 25-30 13
(c) Tariff quotas, tariff exemptions 31 16
(d) Other duties andcharges, including charges 32-35 16
forservices rendered
(e) Quantitative import restrictions, 36-37 17
including prohibitions, quotas andlicensing
(f) Import licensing procedures 38-40 18
(g) Other border measures 41-46 19
(h) Customs valuation 47-49 23
(j) Preshipment inspection 50 24
(k) Application ofinternal taxes onimports 51-53 24
(l) Rules oforigin 54-61 26
(o) Safeguard regime 62-64 28
2. Export regulation 29
(a) Registration requirements forengaging inexporting 65-66 29
(c) Quantitative export restrictions, 67-69 30
including prohibitions, quotas andlicensing
(e) Other measures 70-72 30
(f) Export financing, subsidy andpromotion policies 73-77 31
(g) Import dutydrawback schemes 78-81 35
3. Internal policies affecting foreign trade ingoods 37
(a) Industrial policy 82-95 37
(b) Quality control policy, technical regulations and 96-103 50
standards
(c) Sanitary andphytosanitary measures 104-110 53
(e) State trading 111-115 57
(f)(g)Freezones, freeeconomic zones 116-118 61
(i) Mixing regulations 119-123 62
(k) Trade agreements leading to 124 64
country-specific quota allocation
(l) Government procurement practices, including the 125-126 64
legalregime andprocedures fortendering, dealing
withtenders andaward ofcontracts
4. Policies affecting trade inagricultural products 64
(a) Imports 127 64
(e) Internal agricultural policies 128-129 65
V. TRADE-RELATED INTELLECTUAL PROPERTY 66
REGIME
1. General 66
(c) Membership ofinternational conventions andregional 130 66
orbilateral agreements onintellectual property
(d) Application ofnational andmost-favoured-nation 131 67
(MFN) treatment toforeign nationals
(e) Feesandtaxes 132 67WT/ACC/DZA/4
Pageiii
Question Page
2. Substantive standards ofprotection, 69
including procedures fortheacquisition
andmaintenance ofintellectual property rights
(a) Copyright andrelated rights, 133-138 69
including rights ofperformers,
producers ofphonograms and
broadcasting organizations
(b) Trademarks, including service marks 139-141 70
(c) Geographical indications, including appellations oforigin 142 72
(d) Industrial designs andmodels 143 72
(e) Patents andprotection ofplant varieties 144-148 72
(g) Layout designs ofintegrated circuits 149-152 77
4. Enforcement 78
(c) Civil procedures andremedies 153-155 78
(e) Criminal procedures 156 80
VI. TRADE-RELATED SERVICES REGIME 81
1. General 157-158 81
3. Market access andnational 159 82
treatment
VII. INSTITUTIONAL BASE FOR TRADE 82
AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
1. Bilateral orplurilateral agreements 82
relating toforeign trade ingoods
andtrade inservices
(b) Trade andtariff conventions 160-161 82
2. Economic integration, customs union 162-170 84
andfree-trade areaagreements
ANNEXES
I. Energy 88
II. Quality 89
III. Investment 89
IV. Agriculture 90
V. Imports andExports 90
VI. Commercial Register, Marks, Designs, Models 90
andAppellations ofOrigin
VII. Reply toAnnex 3toWT/ACC/1 onthe 91
Implementation andAdministration ofthe
Customs Valuation Agreement
VIII. Services 92WT/ACC/DZA/4
Pageiv
Question Page
XI. Prices andCountervailing Duties 92
X. Trade andTariff Conventions 92
XI. Legislative Texts andExtracts 93
XII. Statistics onGovernment Procurement 93
XIII. Information onDomestic Support and 93
Export Subsidies inAgriculture (WT/ACC/4)
XIV. Information onTrade inServices (WT/ACC/5) 93
XV. Customs Code 93WT/ACC/DZA/4
Page1
I. INTRODUCTION
(a) Therelevantlawsandregulationsrequestedinsupportofthequestionsaskedareattachedhereto,
where theyhavenotalready beencommunicated totheWTO Secretariat.
(b) These lawsareavailable, generally speaking, onlyinFrench. Where theEnglish version is
available itisnaturally forwarded totheWTO Secretariat.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic policies
(c) Foreign exchange regime andliberalization offoreign trade
According totheMemorandum, theproceeds fromexports ofproducts other thanoil,gasand
oresarerepatriated directly ontheinterbank exchange market, and50percentissoldonthatmarket.
Question 1
What happens tothe50percentoftheproceeds thatisnotsoldontheinterbank exchange
market?
Reply
Under theliberalization oftheexchange regime, operators havebeenallowed tohold50per
centoftheproceeds oftheirnon-hydrocarbon exports inforeign exchange accounts opened inthename
oftheexporting firms.
These proceeds arethusleftfreely available toeconomic operators fortheiroperating and
investment requirements.
Question 2
How aretheproceeds from exports ofoil,gasandoresrepatriated?
Reply
Theproceeds ofhydrocarbon exports arerepatriated within 30daysandpaidinfullintothe
Central Bank. National enterprises operating inthisfieldareguaranteed coverage oftheirconvertible
foreign exchange requirements from theexchange reserves oftheCentral Bank.
Theproceeds ofhydrocarbon exports byforeign firms under production-sharing partnerships
withSONATRACH arenotsubject totherepatriation obligation, inaccordance withamended and
supplemented LawNo.86-14 of19August 1986 onhydrocarbons.
Theexport proceeds from oresarerepatriated under thesame rules asfornon-hydrocarbon
exports.WT/ACC/DZA/4
Page2
Question 3
What restrictions existonexporters intheuseanddisposal oftheforeign exchange they
receive?
What restrictions existontheavailability, quantity, price ornature ofimports forwhich
importers canpurchase foreign exchange?
Reply
Exporters areunder norestrictions provided theforeign exchange intheirpossession isused
forthepurposes oftheircommercial activities. Forother purposes outside thiseconomic framework,
theCentral Bank'sprior authorization isrequired.
AstheDinar isnowconvertible forallcommercial imports ofgoods orservices, there isno
restriction onthepurchase offoreign exchange provided thattheimporter iscreditworthy inDinars
orpossesses acredit standing (bankability) freely assessed byacommercial bank.
Itremains understood thatallimports ofgoods orservices mustbedomiciled atabankinorder
thattrade statistics andflows offunds maybemonitored.
(d) Investment promotion policies
Under theLawoninvestment promotion (Order of5October 1995) thedetermination ofthe
exemption periods andtheprecise range ofbenefits granted depend onconsiderations relating to
employment, thedevelopment oftechnology andlocal resources, regional balance andnational
development.
Question 4
Please identify anddescribe anyWTO-inconsistent trade-related investment measures
(TRIMs) intheLawoninvestment promotion.
Reply
Under theLawoninvestment promotion, Algeria doesnotsupport anytrade-related investment
measures(TRIMs)incompatiblewithGATTrulesinrespecteitherofnationaltreatmentortheapplication
ofquantitative import orexport restrictions.
Question 5
Please forward atranslated copy oftheLaw oninvestment promotion totheWTO
Secretariat forreview bytheWorking Party.
Reply
TheAlgerian Lawrepresented bytheinvestment Code, together withallthesubsequent
implementing texts, appears inthe"Investment" Annex tothisdocument.WT/ACC/DZA/4
Page3
General principles
Agovernment agency, theInvestment Promotion, Support andMonitoring Agency (APSI),
hasbeengiven special prerogatives forthegranting oftaxconcessions.
Question 6
PleaseprovideatranslatedcopyofthelegislationauthorizingAPSItogranttaxconcessions.
Reply
Executive Decree No.94-319 of17October 1994ontheduties, organization andfunctioning
oftheAPSI appears below inthe"Investment" Annex.
Question 7
Please describe thespecial prerogatives granted toAPSI. What types oftaxconcessions
mayAPSI grant toinvestors? May APSI impose conditions, such asexport-performance or
import-substitution requirements, onthetaxconcessions granted toinvestors?
Reply
TheAPSI isagovernment agency possessing amixed public andprivate board ofdirectors
(Article 7,TitleII,ofDecree No.94-319) andanauxiliary structure called the"Guichet unique" (Single
Window) which hasthepractical taskofguiding investors intheir approaches tothevarious
administrative services.
Theprerogatives oftheAPSI laiddown inExecutive Decree No.94-319 make theagency
theinvestor 'spartner responsible mainly forhelping tofacilitate investment andimprove itsgeneral
andinstitutional environment.
Thetaxconcessions under thearrangements introduced bytheInvestment Code tohelpthe
APSI doitsjobare:
- Exemption from transfer feesforreal-estate purchases;
- application ofthefixedregistration feeatthereduced rateof0.5percentforinstruments
ofcompany incorporation;
- exemption from landtax;
- exemption fromVAT forgoods andservices forming adirect partoftheinvestment;
- application ofthereduced rate(3percent)inrespect ofcustoms duties forimported
equipment;
- exemption from profit tax;
- exemption from thetaxonindustrial andcommercial activity (TAIC);
- reduction (to7percent) oftheemployer 'scontribution totheState social security
scheme;WT/ACC/DZA/4
Page4
- application ofthereduced rateof,orexemption from, thetaxoncompany profits (IBS).
Aninvestment cannowbemade freely onamere declaration attheSingle Window. The
investment approach isnon-discriminatory andexcludes anydifferentiated orselective treatment as
between resident andnon-resident investor. Thearrangements introduced toencourage investors are
based onaclear range ofbenefits depending ontheregime.
Incentive regimes
TheLawoninvestment promotion andsubsequent textsprovide forsixinvestor incentive zones.
Question 8
Please describe fully allincentives available toinvestors operating ineach ofthese six
incentive zones.
Reply
Twokinds ofconcessions areprovided forintheInvestment Code: those granted forexecution
andthose granted foroperation.
(a) During theexecution phase thepurpose oftheincentive regime istocutinvestment
costs byreducing charges when theinvestment isstillunproductive. Theduration
oftheconcessions isthesame regardless oftheproject 'snature andlocation;
(b) during theoperation phase theregime 'smainpurposes concern land-use planning and
thefairgeographical distribution ofindustrial projects. Sixregimes arelaiddown
inDecree No.93-12 of5October 1993:
(i) thegeneral regime allows fiscal, parafiscal andcustoms concessions tobe
granted foraperiod ofbetween twoandfiveyears;
(ii) thespecific-zone regime provides thesame concessions asabove butwiththe
addition ofgrants ofState landonfavourable terms foraperiod ofbetween
fiveandtenyears;
(iii) thefree-zone regime: these zones aredefined areas where industrial and
commercial activities arecarried out:
- With duties andtaxes being suspended;
- using currencies listed bytheBank ofAlgeria;
- under orthrough simplified procedures;
(iv) theregime forthesecond "Couronne" (thehighplainandsteppe regions and
approaches totheSaharan south) forwhich thefollowing facilities aregranted
foraperiod offrom fivetotenyears inaddition tothefiscal, parafiscal and
customs concessions:
- State financing of50percentofthecostofinfrastructure work;WT/ACC/DZA/4
Page5
- interest-rate rebates onbankloans;
- 50percentreduction intheprice oftheState landgranted;
(v) theregime forthe"deep south", anareaformed bytheadministrative
boundaries ofthefourwilayat ofAdrar, Illiza, Tamanrasset, Tindouf. In
addition tothefiscal, parafiscal andcustoms concessions granted foraten-year
period, theStatebears alltheexpenditure oninfrastructure work, makes grants
ofState landforatoken 1Dinar andfinances 50percentoftheinterest on
bankloans;
(vi) theconvention regime; inArticle 15theInvestment Code empowers theState
touseconventions togrant additional concessions forinvestments ofparticular
value tothenational economy, regardless ofthepromoter 'sorigin oridentity.
Eligibility forthisregime depends onthesizeoftheinvestment anditssocio-
economic impact.
Question 9
Please elaborate onthecriteria thatfirms must meet toestablish themselves inthe
investment-incentive zones. Doanyofthese criteria include export performance, local content
ortrade-balancing elements?
Reply
TheInvestment Code doesnotlaydown anyspecial criteria orconditions forestablishment
inthedifferent investment-incentive zones.
Question 10
Will normal taxes, tariffs andother trade restrictions beapplied onsales from the
investment-incentive zones intotherestofAlgeria?
Reply
Theinvestment-incentive principle andrelated concessions apply tothewhole country with
theexception ofthefreezones, which operate onabasisofextra-territoriality. Inthiscase,salesremain
subject totheduties andother restrictions applied toimports.
(e) Price andcompetition policy
According totheMemorandum, anextremely small number ofproducts (milk, semolina, flour
andmedicines) stillremains subject toprice control.
Question 11
Please identify allproducts, including HSnumbers, thatarestillsubject toprice regulation.
Does Algeria require minimum ormaximum import orexport prices foranyofthese products?
Reply
Thelistofproducts whose prices areregulated isthefollowing:WT/ACC/DZA/4
Page6
04.01.20.10 packaged pasteurized milk
10.01.90.90 common wheat
11.01.00.00 common flour ofbreadmaking quality
19.05.10.00 ordinary andimproved bread
22.01.90.00 drinking water andwater foragricultural use
27.10.00.12 4-star petrol
27.10.00.13 2-star petrol
27.10.00.41 diesel
27.10.00.44 fueloil
27.11.11.00 domestic natural gas
27.11.12.20 LPGfuel
27.11.12.20 LPGbulk
27.11.12.20 propane
27.11.13.20 butane
27.16.00.00 electricity
Chapter 30 medicinal products forhuman medicine.
Nominimum ormaximum import orexport prices arerequired foranyofthese products.
Question 12
Please identify allproducts, including HSnumbers, which receive implicit subsidies. How
aretheimplicit subsidies provided fortheproducts?
Reply
Implicit subsidies existed untiltheendof1996 andconcerned electricity, domestic gasand
railtransport tariffs.
Duringthe1997financialyeartheimplementationofanadjustmentplanforelectricity,domestic
gasandrailtransport tariffs enabled economic coststobereached andconsequently allimplicit subsidies
tobeabolished.
Question 13
TheMemorandum states thatfreepricing isthegeneral ruleandthatthedetermination
ofprices bytheState isanexception applicable onlyinunusual situations orspecial circumstances.
Please describe theunusual situations orspecial circumstances thatcould trigger there-institution
ofprice controls.
Reply
Order No.95.06 of25January 1995oncompetition states inArticle 4thattheprices ofgoods
andservices arefreely determined through freecompetition. Itisspecified, however, thattheState
canlimitthisgeneral free-pricing principle.
Article 5oftheOrder defines theconditions forlimiting thisgeneral principle asfollows:
- Theprices ofcertain specific goods andservices considered bytheState tobeof
strategic importance canbefixed following anopinion bytheCompetition Council;WT/ACC/DZA/4
Page7
- exceptional measures tolimitprice risesorsetprices mayalsobetaken intheevent
ofexcessive priceincreases resulting fromacrisis situation, adisaster orlasting supply
difficulties inaparticular economic sector orgeographical areaorfromsituations of
natural monopolies.
These exceptional measures aretaken bydecree foramaximum period ofsixmonths following
anopinion bytheCompetition Council.
Question 14
Please provide atranslated copyoftheLawonCompetition promulgated inJanuary 1995
totheWTO Secretariat forreview bytheWorking Party.
Reply
TheLawonCompetition isavailable attheWTO Secretariat.
Question 15
According toparagraph IV.3(a) oftheMemorandum (restructuring ofAlgerian industry),
theAlgerian Government iscontinuing tostreamline theinstitutional environment through the
abolition ofindustrial monopolies, freedom ofaccess toforeign trade anddevelopment of
competition.
Please identify theremaining industrial monopolies anddescribe fullythesectors inwhich
theyoperate. Isaccess toforeign trade limited inthesectors inwhich there areindustrial
monopolies? Areforeign entities allowed tocompete directly against theindustrial monopolies?
Reply
Industrial monopolies existinthetobacco andexplosives manufacturing sectors. There are
alsorestrictions onimports ofthese products.
However, access toforeign tradeisopenwithout distinction toalllegally established national
orforeign commercial firms.
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING FOREIGN
TRADE
2. Government entities responsible fortheelaboration andimplementation offoreign tradepolicy
Question 16
Please describe thelegislative process thatAlgeria willfollow toimplement theProtocol
ofWTO Accession andthemarket access commitments inAlgeria 'saccession package.
Reply
TheAlgerian Constitution, thetextofwhich isavailable attheWTO Secretariat, provides in
Articles 77(paragraph 9)and131fortwoprocedures forratifying international treaties.WT/ACC/DZA/4
Page8
Thefirstprocedurecomeswithintheregulatorydomain(Article77,paragraph9).ThePresident
oftheRepublic isempowered toconclude andratify international treaties under thepower conferred
onhimbytheConstitution.
Thesecond procedure fallswithin thelegislative domain (Article 131). ThePresident ratifies
international agreements aftertheyhavebeenexpressly approved byeachChamber ofParliament.
Thesecond procedure above willbeemployed fortheimplementation oftheWTO Accession
Protocol andtheassociated commitments.
4. Anylegislative programmes orplans tochange theregulatory regime
Question 17
What isthecurrent status ofthedraft order onforeign trade? Please provide atranslated
copy forreview bytheWorking Party.
Reply
Thedraftorder onforeign tradeisstillinthestudy stage. Itwillbecommunicated totheWTO
Secretariat assoonasithasbeenadopted bythelegislative authority andpromulgated.
Question 18
According totheMemorandum, thedraft order onforeign trade isbased onthecustomary
principles andrules ofinternational trade, with three exceptions. Oneapplies onabasis of
reciprocity tooperations relating toproducts originating incountries which apply restrictive or
discriminatory measures inrespect ofAlgerian products.
Please describe what ismeant by"operations relating toproducts". Please explain how
theapplication ofareciprocity principle isconsistent withWTO rules providing fornational
treatment andmost-favoured-nation treatment. Please describe anyinstances inwhich operations
relating toproducts have been implemented.
Reply
Theinitial version ofthedraftorder onforeign tradewasdrawn upbefore theprocess ofWTO
accession wasstarted. Itiscurrently being studied inorder, interalia,toensure thatallitsprovisions
arefullycompatible withAlgeria 'sfuture commitments within theWTO.
5. Laws andlegalacts
(b) Laws andlegalactsrelating tothenon-tariff regulation ofimports
According totheMemorandum, thedraftorder onforeign trade provides forthepossibility
ofjustified recourse, interalia,toimport licensing andthetemporary limitation ofimports (quotas).
Question 19
Isthepotential useofimport licensing andquotas limited tounfair trade practices? Please
describe alltheconditions thatcould trigger theuseofthese non-tariff measures.WT/ACC/DZA/4
Page9
Reply
Theinitial version ofthedraftorder onforeign tradewasdrawn upbefore theprocess ofWTO
accession wasstarted. Itiscurrently under study inorder, interalia,toensure thatnoneofitsprovisions
isincompatible withAlgeria 'sfuture commitments within theWTO.
Question 20
Whatismeantbythe"exportsuspensionrule"withrespecttoexportsofpalm-treeseedlings,
breedingsheepandcattleandworksofart,objectsofhistoricalorarchaeologicalvalueandnational
cultural assets?
Reply
Theexport suspension rulerelating totheproducts mentioned isaimed atprohibiting theexport
ofthose products. Theperiod ofsuspension hasnotime-limit.
These export restrictions conform toArticle XXofGATT 1994, particularly paragraphs (b)
preservation ofthelifeofanimals andplant conservation and(f)protection ofnational treasures.
IV. POLICIES AFFECTING TRADE INGOODS
1. Import regulations
(a) Registration requirements forengaging inimporting
Question 21
Please describe theprocess forobtaining authorization toengage inthebusiness of
importing. What criteria doGovernment authorities consider ingranting authorization? Are
there anyrestrictions ontheability offoreign enterprises toengage inthebusiness ofimporting?
Areexport performance, localcontent requirements orimport substitution policies included among
thefactors considered indeciding whether anenterprise willbeapproved forimport licensing?
Reply
Importing andexporting takeplace inAlgeria without anyforeign tradeformalities. Thetrade
administration doesnotissue authorizations toengage inimporting.
However, fortheimportation ofcertain specific products subject tospecial administrative
measures, theprocedures willbesetoutinthereply toAnnex 3toWT/ACC/1. Thisreply isstill
under study andwillbecommunicated totheWTO Secretariat assoonasithasbeenfinalized.
Among thebasic rules observed forimporting orexporting, firms arerequired tokeepa
commercial register andarrange forprior domiciliation oftheoperation withanapproved banking
intermediary.
There isnoconnection between importing andfactors suchasexport performance, localcontent
orimport substitution.WT/ACC/DZA/4
Page10
Question 22
Please provide translated copies ofthefollowing laws, decrees andregulations concerning
import registration totheWorking Party forreview: LawNo.90-22 of18August 1990, amended
andsupplemented, onthecommercial register; Executive Decree No.91-434 of9November 1991,
amended andsupplemented, ontheregulation ofpublic procurement; andRegulation No.92-04
of22March 1990, amended andsupplemented byRegulation No.95-05 of23December 1995,
onexchange controls (particularly astheyapply toimports andexports ofgoods).
Reply
Executive Decree No.91-434 of9November 1991 ontheregulation ofpublic procurement
isavailable attheWTO Secretariat.
LawNo.90-22 of18August 1990, amended andsupplemented, onthecommercial register
isgiven inthe"Commercial register, marks andappellations oforigin" Annex tothisdocument.
Theregulations requested willbefound inthe"Services" Annex hereto.
Question 23
Please describe theinformation contained inthecommercial register andhowitis
maintained. What isthedefinition of"economic undertaking"? Canindividuals whowish to
import, whether ornotcitizens ofAlgeria, beconsidered aneconomic undertaking?
Reply
(a) Information contained inthecommercial register
Theinformation inthecommercial register particularly concerns:
- Theidentification ofthetrader: natural person (name, firstname, dateandplace of
birth, family details, private address, etc.)orlegalperson (name andformofcompany,
identification ofmanagers, registered place ofbusiness, etc.);
- addressofthecommercialpremisesorregisteredplaceofbusinessandtherightsenjoyed
overthose premises (ownership, commercial lease, etc.)onbehalf oftheowner or
lessor ofthepremises orplace ofbusiness;
- identification oftheeconomic activity chosen bythenatural person orrecorded inthe
company 'sArticles ofAssociation;
- thisactivity isdefined andcodified byreference tothedetails intheNomenclature
ofEconomic Activities submitted forinclusion inthecommercial register;
- identification ofsecondary establishments which arethesubject ofbriefentries inthe
commercial register.
Allthese items ofinformation arementioned inthe"extract from thecommercial register"
issued tothetrader (natural orlegalperson) bytheLocal Annexes Services oftheNational Commercial
Register Centre (CNRC).WT/ACC/DZA/4
Page11
Thecentrally classified commercial register filecontains allthestatutory supporting documents
required forinclusion, modification orremoval from thecommercial register, namely:
Fornatural persons
- Request forinclusion inthecommercial register, using forms supplied bytheCNRC;
- birthcertificate andextract from thejudicial record;
- lease ofthecommercial premises orcopyoftheownership title;
- tax-situation certificate;
- approval conferring authorization topractise inthecaseofaregulated occupation;
Forlegalpersons
- Request forinclusion inthecommercial register, using forms supplied bytheCNRC;
- Articles ofAssociation attested bynotarial act;
- publication ofextracts from theArticles ofAssociation intheOfficial Legal
Announcements Bulletin (BOAL) andinanational daily;
- birthcertificates andjudicial records ofthemanagers;
- evidence oftheexistence oftheregistered office;
- tax-situation certificate;
- licence topractise (approval) inthecaseofaregulated activity; statement ofsecondary
establishments ifappropriate.
Forchanges inactivity andremovals from thecommercial register
- Request forchange orremoval onforms supplied forcompanies bytheCNRC;
- inaddition tothisrequest, thenotarial actrecording thechange orremoval;
- report bythegeneral meeting ofshareholders changing ordissolving thecompany;
- copyofofficial notices;
- original ofthecommercial register forremovals requested bytraders (both natural
andlegalpersons).
(ii) Procedures forkeeping thecommercial register
Management ofthecommercial register isoneofthefunctions oftheCNRC (which under
theterms ofthelawisanAutonomous Administrative Institution coming under theTrade Minister);
foreachofthe48Wilayat (departments) itistheresponsibility oflocalCNRC Annexes setupfor
thispurpose.WT/ACC/DZA/4
Page12
Thecommercial register iskeptbytheannex official whohasthestatus ofapublic officer
representing thelawandwhose activities aregoverned byspecial ruleslaiddown byexecutive decree.
Under thedirect authority oftheannex official, entries aremade inthecommercial register
(registrations, modifications, removals) under thecontrol ofajudge appointed tosupervise theregister.
Hemakesentriesinananalyticalregisterexaminedandinitialledbythelocalpresidingmagistrate
afterverification ofthedocuments inthefilesubmitted bytheapplicant; incomplete orincorrect files
aresystematically rejected.
Theannex official assigns toeachtrader (natural orlegalperson) anational registration number
onthecommercial register, using acentrally computerized block ofchronological numbers allocated
toeachannex bytheDirectorate-General forEstablishment.
Ontheoccasion ofregistration, areceipt acknowledging thelodging ofaregistration fileis
issued toeachperson; thisreceipt isequivalent toanextract fromthecommercial register andallows
thedeclared economic activity tobestarted immediately.
Theextract fromthecommercial register isissued within aperiod notexceeding twomonths.
Through publication intheBOAL oftheentries made, thisperiod allows anyinterested thirdparties
tofileobjections. Such disputes aresubmitted tothejudge appointed tosupervise thecommercial
register.
Thefileforeachperson, whether natural orlegal, together withallthedocuments composing
it,issenttotheCNRC headoffice forverification, filing, storage, retrieval andprocessing ofthe
statistical dataandissue toanyparty requesting copies ofthefiledocuments.
TheCNRC Annexes andtheheadoffice areequipped withacomputerized system allowing
thecreation ofacommercial register database. Thedataconcerned aremade available toeconomic
operators, professional bodies, institutions andpublic authorities onrequest.
Maintenance ofthecommercial register isregulated byalaw(LawNo.90-22 of18August 1990
onthecommercial register) which laysdown thatthere mustbeasingle register (oneregister forthe
whole lifeofthecompany orofthenatural person 'sactivities) andcomplies strictly withArticle 37
oftheConstitution which states: "Thefreedom oftradeandindustry isguaranteed. Itshallbeexercised
within theframework ofthelaw."
(iii) Theconcept of"economic undertaking"
"Economic undertaking" isaneconomic termnotbased onanyexact legaldefinition. Itis
more appropriate totalkof"commercial company" asdefined bythecommercial code, regardless of
thecompany 'slegalstatus (e.g.limited liability company, etc.).
Commercial company status isgranted toanynatural orlegalperson, whether ornotanAlgerian
citizen, wishing topursue animport activity.
However, inaddition tothecommercial register forthepursuit ofacommercial, industrial
ortraditional activity, foreigners residing inAlgeria arerequired toholdacardidentifying them as
foreign traders, industrialists orcraftsmen andissued bythewali(prefect) ofthewilaya (department)
ofresidence, inaccordance withDecree No.75-111 of20December 1975onthecommercial, industrial,
craftandprofessional occupations pursued byforeigners inAlgeria.WT/ACC/DZA/4
Page13
Since thepromulgation ofExecutive Decree No.97-38 of18January 1997ontheprocedures
forissuing thetrader 'scardtoforeign representatives ofcommercial companies, theaforesaid card
hasinfactbeenmade available tosuchrepresentatives.
Inlinewiththeprovisions ofExecutive Decree No.97-38, thetrader 'scardisthusissued
toforeign members ofthegoverning andsupervising boards ofthecommercial companies andthe
management andadministrative bodies forwhose administration andmanagement theyareresponsible
bystatute. Thepersons concerned acquire thestatus oftrader onthebasisofthelegalperson forwhose
administration andmanagement theyarestatutorily responsible (Article 2).
Thetrader 'scardisissued onlyafterthelegalperson hasbeenregistered inthecommercial
register.
Decrees No.75-111 of20September 1975 andNo.97-38 of18January 1997 mentioned in
theforegoing paragraphs appear inthe"Commercial Register" Annex tothisdocument.
Question 24
Howdoforeign enterprises establish adomicile withanapproved banking intermediary?
Please explain therationale forthisrequirement.
Reply
Domiciliation ofanimport withabank isastraightforward operation ofregistering theact
ofimporting. Itiseffected bylodging withthebanktheorder oradministrative instruction followed
bytheproforma invoice. Foreign enterprises established inAlgeria aresubject tothesameconditions
aslocalenterprises.
Bankdomiciliation ofanimport operation shows thattheimporter possesses thefinancial assets
needed topayfortheorders hehasgiven.
Domiciliation alsomakes itpossible tomonitor thefinancial statistics forcommercial activities.
These statistics arefundamental tothepreparation bytheBankofAlgeria ofglobal andbilateral balances
ofpayments.
Itisalsouseful formonitoring therelated flows offunds: inconjunction withthecustoms
services itenables flows offunds andofgoods tobecompared foroneandthesame import operation
withaviewtolimiting flights ofcapital.
(b) Characteristics ofthenational customs tariff
According totheMemorandum, Algeria initiated areform ofthenational customs tariff in
1992, withtheintroduction ofacustoms tariff based ontheHarmonized Commodity Description and
Coding System.
Question 25
Could Algeria describe infurther detail howthetariff(s) isapplied? Please explain in
more detail howthetariff rates were determined?WT/ACC/DZA/4
Page14
Question 26
What isthetrade-weighted tariff rateineffect inAlgeria?
Question 27
Please provide atranslated copyofthetariff schedule, inelectronic format, totheWTO
Secretariat forreview bytheWorking Party.
Replies (25,26and27)
TheAlgerian customs tariff isbased onthenomenclature oftheHarmonized Commodity
Description andCoding System. Itcontains onecolumn withasingle-rate customs dutyapplicable
toallgoods regardless oftheirorigin ormostrecent source. Customs dutyratesaregenerally varied
according tothedegree ofprocessing oftheproducts.
Weighted bythenumber oftaxable tariff headings foreachrate,theaverage customs duty
slightly exceeds 24percent, buttherealrateofcustoms dutyismuch lower, i.e.scarcely 12.5per
centin1996 (proceeds from duties versus volume ofimports).
Forfurther details, seetheAlgerian customs tariffannexed hereto inelectronic form(thiscan
beconsulted attheSecretariat, Accessions Division, Office 1126 -WT/ACC/DZA/3).
Tariff preferences
Algeria reports thattariff preferences areprovided forinthecontext ofthetrade andtariff
conventions between Algeria andthecountries oftheArab Maghreb Union (AMU).
Question 28
Pleasedescribeingreaterdetailhowtheconventionsareapplied.Pleaseidentifyallimports,
including HSnumbers, from AMU States thatarenotentitled todutyexemption. Please identify
allproducts, including HSnumbers, from AMU States thatarenotentitled totariff preferences.
Reply
Bilateral andmultilateral conventions (agricultural andcommercial) existbetween Algeria and
theMaghreb countries.
Thebilateral trade conventions withTunisia, Morocco andLibya provide fortotalcustoms
dutyexemption foralloriginating products (40or50percentadded value according tocountry).
Theconvention signed withMauritania in1996andnowbeing ratified provides fortheabolition
ofnon-tariff barriers andtheprogressive abandonment ofcustoms duties fororiginating products.
Thelistoforiginating products initially concerned withrespect toduty-free importation intoAlgeria
isthefollowing:WT/ACC/DZA/4
Page15
Tariff heading Product description
01-02, 01-04 and01-06
02-01
From 03-01- to03-03
13-01
15-06
23-01
26-01
41-01
72-14Liveanimals
Redmeat
Fish
Gum Arabic
Fishoil
Fishmeal
Ironore
Untreated skins
Concrete reinforcing bars
Themultilateralconventionsprovidefortotalexemptionfromcustomsdutiesandchargeshaving
equivalent effect foralloriginating products (added value of40percent)andtheprogressive abolition
oftariff barriers onthebasis oflists. These conventions havenotyetcome intoforce because the
processes ofratification orfinalization ofimplementing protocols arenotyetcomplete.
Exemption from customs duties under these different conventions isopentoallcommercial
products which meettheorigin criterion.
Question 29
Does Algeria currently provide anytariff ortrade preferences toproducts originating
intheEuropean Union? Ifyes,please identify theproducts, including HSnumbers, anddescribe
thepreferences.
Reply
Algeria grants notariff ortrade preferences forproducts originating intheEuropean Union.
Question 30
DoesAlgeria provide tariff ortrade preferences foranyproducts imported from countries
other thantheEUandAMU States? Please identify theproducts anddescribe thepreferences.
Reply
Inaddition totheEuropean Union andtheAMU, tradeandtariffconventions havebeensigned
andratified withSenegal, Niger andEgypt. These conventions provide forreciprocal tariffpreferences
applicable onthebasisoflistsofimport andexport products. They havenotbeenputintoeffect either
becauseofreluctanceexpressedbythepartners(NigerandSenegal)inconnectionwiththeircommitments
within certain regional economic groupings (CDEAO) orbecause ofnon-adoption ofthelistsofproducts
tobeadmitted dutyfree.
Atariffconvention wasalsosigned in1997withJordan. Thisconvention provides forcustoms
dutyexemption fororiginating products andisbeing ratified.WT/ACC/DZA/4
Page16
(c) Tariff quotas, tariff exemptions
Question 31
Please identify allcountries with which Algeria hasanagreement toprovide tariff
exemptions. Foreachsuchcountry, please identify theproducts, including HSnumbers, that
benefit from thetariff exemptions.
Reply
Algeria hasnotconcluded anyagreements providing fortariff exemptions other thanthose
stated inthereply toQuestions Nos. 28and30above.
(d) Other duties andcharges, including charges forservices rendered
Question 32
Please describe indetail theservices rendered andapproximate costofservices foreach
customs fee(warranty feeongoldandprecious metals, slaughter tax,customs formalities fee
andcustoms fee).
Question 33
Please identify theprecious metals, including HSnumbers, other thangoldthataresubject
tothewarranty fees. Foreachproduct, what istheamount ofthewarranty fee?Aredomestically
produced precious metals subject tothewarranty feesatthesame rate? Areimports from all
countries subject tothewarranty feesatthesame rate?
Question 34
What istherateoftheslaughter taxapplied toimports ofliveanimals andwhyisit
assessed? Isasimilar taxapplied totheslaughter ofanimals ofdomestic origin? Isthistaxapplied
toimports ofliveanimals from allcountries atthesame rate?
Replies (32,33and34)
Apart fromthetwocustoms fees,theother charges (warranty fee,slaughter tax)areactually
domestic charges which apply across theboard bothtoimported products whatever theircountry of
origin andtolocally manufactured products.
Customs fees
Services rendered include allservices provided attheborder during customs clearance, aswell
asinformation services. They include theoperating costs oftheservices responsible forcontrol and
forproducing declarations andother customs documents, thecostsofhandling theclearance file,the
costsofusingthecomputersystemtogetherwithpaymentofexpensesforinformationandthepublication
ofcustoms statistics.
Inordertocovertheamountcorrespondingtotheservicesrendered,theratesforthetwocustoms
feeshavebeenfixed approximately. Nevertheless, theAlgerian Customs Administration intends to
undertake astudy onhowtoestimate thecosts actually borne andtheservices rendered onamore
accurate basis.WT/ACC/DZA/4
Page17
Warranty andtesting fees
Warrantyandtestingfeesapplyunderthesameconditionstoallgold,platinumandsilverarticles
whether imported orlocal.
These specific feescanbepaidatthewarranty office nearest totheplace ofintroduction into
Algeria, where theobjects arehallmarked iftheypossess oneofthelegalprecious-metal contents.
Warranty andtesting feesarefixed perhectogramme at:
- 1,000 Dinars forplatinum articles;
- 500Dinars forgoldarticles;
- 50Dinars forsilver articles.
Theproducts concerned havebeenbrought within thescope ofVAT since 1January 1997
atthenormal rateof21percentforgoldandplatinum articles and7percentforsilver articles, in
place ofthe20percentadvalorem taxpreviously levied onthem.
Slaughter tax
Theslaughter taxapplies onlytonetquantities oflocally produced orimported meat, regardless
ofthecountry oforigin, intended forhuman oranimal consumption.
Liveanimals, which remain subject toVAT, arenotliable fortheslaughter tax,which has
beenintroduced inplace ofVAT from which meatisexempted.
Thepresent rateofslaughter taxissetat5Dinars perkg.ofmeat, ofwhich 1.50Dinars are
allocated totheSpecial Animal Health Protection Fund.
(e) Quantitative import restrictions, including prohibitions, quotas andlicensing
Question 35
Pleaseidentify,includingHSnumbers,allproductsthatareprohibitedfrombeingimported
andtherationale fortheimport prohibition.
Reply
Noprohibition ofaneconomic nature exists atpresent.
Theonlyprohibitions arethose introduced ongrounds ofpublic morality, public order, public
safety andprotection ofthehealth andlifeofpersons andanimals.
Lists oftheproducts concerned willbegiven inthereplies totheQuestionnaire inAnnex 3
toWT/ACC/1.WT/ACC/DZA/4
Page18
Question 36
Please identify allproducts, including HStariff numbers, thataresubject toquantitative
import restrictions andthesizeoftheimport quota. Foreachsuchitem, please provide theamount
ofthequota andhowitisdetermined.
Reply
Algeria currently applies noquantitative import restrictions.
Question 37
According totheMemorandum, theupward spiral ofinternational prices isareason for
these quotas. Does theGovernment ofAlgeria consider international prices ormaximum import
prices indetermining thesizeoftheimport quotas?
Reply
Algeria, which isa"netimporter" offoodproducts, applies noquotas ontheimportation of
agricultural products. However, given thecurrent inadequacies ofitsagricultural production andfood
securityconsiderations,itisexaminingthepossibilityoflimitingtheseimports.Forthefuture,itexpects
tobeabletouseallthemeasures allowed bytheWTO Agriculture Agreement.
(f) Import licensing procedures
Question 38
Foreachproduct subject toaquantitative restriction ortariff quota, please describe the
administration ofthequota intheform ofaresponse totheQuestionnaire onimport licensing
procedures (seeAnnex 3toWT/ACC/1).
Reply
Noproducts arecurrently subject totariff quotas orquantitative restrictions.
Question 39
Please describe theprocedures forobtaining aprior authorization ortechnical certificate
fortheimportation ofmedicinal products, hunting weapons andbookshop articles, intheform
ofaresponse totheQuestionnaire onimport licensing procedures.
Reply
Thereply tothisquestion willbegiven inAnnex 3toWT/ACC/1.
Question 40
What isthecurrent status ofAlgeria 'suseofimport licensing toregulate trade?
Reply
Algeria makes nouseatthemoment ofimport licensing toregulate trade.WT/ACC/DZA/4
Page19
(g) Other border measures
According totheMemorandum, border measures applied toimports intoAlgeria concern
product quality andsanitary andveterinary controls.
Question 41
Please identify, including HSnumbers, allproducts subject toproduct quality measures
anddescribe therestrictions. What istheGATT rationale forimposing border measures onthe
basis ofproduct quality? How isproduct quality evaluated? Arethere published standards and
norms?
Reply
(a) Controls bytheservices oftheMinistry ofAgriculture andFisheries
(i) Animals andproducts ofanimal origin
Asregards product quality control, Algeria applies therecommendations oftheCodex
Alimentarius (FAO-WHO) andthose oftheIEO(International Epizooties Organization), andmakes
useofnational legislation andrules, inparticular LawNo.88-08 onveterinary medicine andanimal
healthprotectiontogetherwithDecreeNo.91-452oncontrolatborderposts.Inthisconnection,samples
areforwarded toapproved laboratories forsystematic microbiological, physical/chemical andisotopic
analysis.
Health inspection atborder posts comprises:
- Checking ofveterinary health documents required bytheexisting rules;
- health andquality inspection inthecaseofanimal products orproducts ofanimal origin,
supplemented byanysamples considered necessary forlaboratory analysis;
- placing inbond fordoubtful products;
- quarantining ofliveanimals where appropriate;
- checking oncompliance withtherequirements regarding priordisinfecting oftransport
facilities foranimals, animal products andproducts ofanimal origin.
(ii) Plants andproducts ofplant origin
Plant Protection LawNo.87-17 andDecree No.93-286 institute andfixofficial points for
theentry anddeparture ofplants andplantproducts. These arecurrently 24innumber, ofwhich ten
areatports, sixonlandandeight atairports.
Control atborder posts consists in:
- Checking thedocuments accompanying thegoods, e.g.plant health certificates;
- inspecting thegoods tomake surethere arenoprohibited organisms;WT/ACC/DZA/4
Page20
- ensuring thatanytolerated animal orplant organisms present donotexceed the
standards;
- where appropriate, taking samples forlaboratory analysis;
- deciding toturnbackorauthorize products attheborders.
(b) Quality control ofimported products bytheservices oftheMinistry ofTrade
Executive Decree No.96-354 of19October 1996 laysdown newprocedures forchecking
theconformity andquality ofimported products. TheDecree states:
- Theprinciple ofsystematic prior control ofthequality andconformity ofimported
products onadmission intoAlgeria;
- thelistofproducts subject toroutine control isdetermined byinterministerial order;
- anyimported product notcomplying withthelawsandregulations willbethesubject
ofadecision known as"refusal toadmit aproduct intoAlgeria";
- anyproduct withanexpiry datemust, onthedateofinspection, possess adurability
exceeding 80percentofitslife.
Furthermore, pursuant toExecutive Decree No.92-42 of12February 1992ontheconformity
oflocally manufactured orimported products, themanufacturer orimporter isrequired toperform
ortohaveperformed aquality andconformity control oftheproducts before theyarereleased for
general use.
Theabove-mentioned listsofproducts subject toroutine quality control attheborders in
accordance withExecutive Decree No.96-354 of19October 1996 arebeing prepared.
Aninitial listofimported products subject toconformity andquality control inthefieldof
foodwasdecided onandpublished inanInterministerial Order of3March 1997. ThisOrder isattached
hereto inthe"Quality" Annex.
Product quality isassessed afterexamination byasworn inspector coming under thequality
control authority (Ministry ofTrade) andissupplemented where necessary bysamples sentfor
microbiological analysis tothepublic laboratories responsible forquality control andsuppression of
fraud.
Around 5,000 standards have currently been published, ofwhich approximately 100are
compulsoryunderanorderoftheMinisterforIndustryandRestructuringresponsibleforstandardization.
Inthecaseofimported foodproducts, theCodex Alimentarius constitutes theproduct-quality
reference where noAlgerian standards exist.
Asregards industrial products intended forhousehold equipment (electronic, electrical and
mechanical equipment), where nospecific rulesexisttheseproducts mustbeaccompanied byconformity
andguarantee certificates themodel andperiod ofvalidity ofwhich arelaiddown intheOrder of
10May1994 onprocedures forimplementing guarantees onproducts andservices. ThisOrder is
attached hereto inthe"Quality" Annex.WT/ACC/DZA/4
Page21
ThequalitycontrolmeasuresthusdefinedconformtotheprovisionsofArticleXXofGATT1994
andcomply withtherequirements oftheAgreements ontechnical barriers totrade andsanitary and
phytosanitary measures.
Question 42
Arethere border measures forsanitary andveterinary controls other thanthose described
inparagraph IV.3.(c) oftheMemorandum? Ifyes,please describe themeasure andtherationale
foritsuse.
Reply
Onlythesanitary andveterinary control measures described intheMemorandum arecurrently
applied.
Question 43
How doesAlgeria implement thissystem without theuseofimport licensing?
Reply
Algeria doesnotuseimport licences, inorder toavoid unnecessary obstacles totrade.
However, imports ofcertain products aresubject tospecial administrative measures. These
measures willbedealtwithinthereplies toAnnex 3toWT/ACC/1 nowbeing formalized.
Question 44
Please identify allproducts, including HSnumbers, which require Ministry authorization
ortechnical certification forimportation. What medicinal products arecovered bythis
requirement? What factors areconsidered indetermining whether ornottheauthorization or
technical certification willbegranted?
Reply
Thelistofalltheproducts, including medicinal products forhuman orveterinary use,whose
importation requires Ministry authorization ortechnical certification isthesameasforproducts subject
tospecial administrative procedures forauthorizations. Thislistwillbecommunicated inthereplies
toAnnex 3toWT/ACC/1 nowinpreparation.
Question 45
Please identify allagricultural products subject toborder measures, describe thenature
ofthemeasures andtheMinistry responsible forissuing theauthorizations orcertificates.
Reply
(a) Theanimal products andproducts ofanimal origin subject tosanitary inspection onentry to
ordeparture from Algeria arethefollowing:
- Solipeds ofthecattle, goat, sheep, camel andpigspecies;WT/ACC/DZA/4
Page22
- domestic animals, e.g.catsanddogs;
- domestic poultry (chickens, turkeys, geese, ducks, guinea fowl, etc.)aswellasrabbits
andthelike;
- exotic animals andbirds suchascanaries, parrots, pheasants, partridges, quails and
zooanimals;
- bees, fish,crayfish, snails, tortoises, frogs, snakes;
- rodents;
- game;
- meat, milkandderivatives, eggs, honey, wool, untreated skins, semen intended for
artificial insemination, zygotes;
- entrails;
- treated orprocessed animal products regardless ofdestination;
- fodder andanimal feed.
With theexception ofdomestic animals, treated orprocessed animal products whatever their
destination andconcentrated feedforanimal consumption, alltheproducts referred toabove aresubject
tothehealth derogation regime inArticle 76ofLawNo.88-08 of26January 1988.
Obligatory planthealth control hasalsobeenintroduced atAlgerian borders forallplants, plant
products andplant material asdefined inExecutive Decree No.93-286 of23November 1993.
(b) Thelistofagricultural products ofplantorigin subject toborder measures inaccordance with
current plant health rules isgiven intheAnnex.
(c) Themeasures dictated bythecurrent rules aretaken bytheappropriate departments ofthe
Ministry ofAgriculture. Foranimported product theymayconsist of:
- admission;
- admission afterdisinfecting;
- rejection;
- destruction.
Question 46
How doesa"Ministry certificate" differ from animport licence?
Reply
AMinistry certificate isanofficial opinion concerning aproduct 'stechnical conformity. The
required authorization therefore applies tothenature oftheproduct andnot,asinthecaseofalicence,
totrading init.WT/ACC/DZA/4
Page23
(h) Customs valuation
Question 47
Please submit aresponse totheQuestionnaire onCustoms Valuation (seeAnnex 4to
WT/ACC/1).
Reply
Thereplies totheQuestionnaire onCustoms Valuation contained inAnnex 4toWT/ACC/1
aregiven inthe"Customs valuation" Annex (WT/ACC/DZA/4).
Question 48
Please describe fully anyprovisions oftheAlgerian customs valuation regime thatare
notinconformity withtheWTO Customs Valuation Agreement.
Reply
Thecustoms valuation system currently inforce inAlgeria isbased onthedefinition ofvalue
intheBrussels Convention, thelogic ofwhich differs materially fromtherules andprinciples ofthe
Agreement implementing GATT Article VII.
There iscurrently asystem ofminimum values inrespect ofsome 200tariffsubheadings whose
relative share intheoverall volume ofAlgerian imports doesnotexceed 10percent.
Aside from these products whose value isdetermined administratively, thegeneral practice
istoaccept thedeclared price asabasis forcalculating theduties andtaxes levied.
Intheevent ofdispute, thedeclarer canappeal totheNomenclature andTariff Commission
setupunder Article 13oftheCustoms Code. Thecomposition, organization, operation andfunctions
ofthisindependent commission, onwhich thecustoms administration isresponsible onlyforthe
secretariat, arelaiddown inDecree No.88-32 of12July1988.
Assoonasanappeal isannounced, theAdministration mustallow withdrawal ofthedisputed
goods provided that:
- Withdrawal doesnotprejudice examination oftheappeal;
- thegoodsarenotregardedasprohibitedorsubjecttoentryorexitrestrictionspreventing
theirwithdrawal;
- anadequate sumisdeposited oraguarantee provided tocover theamount oftheduties,
taxes andpenalties dueonthebasis ofacknowledgment bythecustoms service
(Article 100oftheCustoms Code).
TheNomenclature andTariff Commission must rulewithin 45daysoftheappeal andmust
notify bothsides ofitsopinion inwriting.
Where theCommission 'sdecision proves unsatisfactory, thedeclarer hastherighttoapply
tothecourts. Thisrightcanbeexercised directly without going through theCommission.WT/ACC/DZA/4
Page24
With aneyetoitsaccession totheWTO, Algeria hasarranged toincorporate theagreement
implementing GATT Article VIIinitsnational legislation andapply itunder themost favourable
conditions.
Question 49
Please submit atranslated copy oftheCustoms Code totheWorking Party forreview.
Reply
TheCustoms Code isannexed hereto inelectronic form.
(j) Preshipment inspection
According totheMemorandum, Algerian imports arenotcurrently subject topreshipment
inspection. There arenoregulations governing thisactivity inAlgeria.
Question 50
Does Algeria require certification ofimports, e.g.forstandards orsanitary purposes,
where aforeign entity isauthorized toprovide theinspection andcertification services required
prior toshipment toAlgeria?
Reply
Algeria doesnotrequire anycertification ofimports when aforeign entity isauthorized to
provide inspection andcertification services prior toshipment toAlgeria.
(k) Application ofinternal taxes onimports
According totheMemorandum, Algeria assesses avalue-added tax,aspecific surcharge,
aroad userfeeandinternal consumption dutyonhydrocarbons, alcohol andtobacco.
Question 51
Please provide translated copies ofthelaws governing these taxes andcharges tothe
Working Party forreview.
Reply
Thelawsgoverning thesetaxesandcharges appear intheAnnexes tothedocument "Customary
Tariff" already available attheWTO Secretariat.
Question 52
Please describe each oftheinternal taxes onimports indetail, including identification
oftheprojects subject tothetax(including HSnumber), themechanism forassessing thetaxes
andtheapplicable taxrates. Please identify alldifferences intheapplication oftheinternal taxes
onimported products anddomestically produced goods.WT/ACC/DZA/4
Page25
Question 53
Does Algeria impose anexcise taxonanyimported products? Ifyes,please identify the
products, including HSnumbers, andtheamount oftheexcise tax. Aretheexcise taxrates
identical forimported anddomestically produced goods? Please describe fully anydifferences
inthetaxrates orhowtheyareapplied.
Replies 52and53
Apart fromtheroaduserfee,alltheothertaxesmentioned (VAT, specific surcharge andinternal
consumption dutyonhydrocarbons, alcohol andtobacco) areinternal charges which apply tolocal
products orproducts imported from allother countries onthesame terms andatthesame rates.
Value-added taxwasintroduced in1991 when thetaxsystem wasreformed; itisageneral
taxonconsumption which affects virtually allproducts andservices. Itsscope isbeing continually
extended tocover:
- Banking andinsurance operations in1995 inplace ofataxspecific tothatsector;
- theprofessions asof1996;
- beer, tobacco andmatches;
- oilproducts in1996 inplace ofinternal consumption duties;
- wineandalcohol in1996 inplace ofthese indirect duties;
- precious metals in1997 inplace oftheadvalorem tax.
Tomaintain thesame leveloftaxation aftertheextension ofVAT tothelastfourcategories
ofproducts, internal taxes which areincluded intheVAT basis havebeenintroduced.
These taxes arethetaxonoilproducts (seeAnnex IVtothetariff), movement dutyonwine
andalcohol (Annex VIItothetariff), theinternal consumption taxonbeer, tobacco andmatches
(Annex III)andthewarranty andtesting feesforgold, platinum andsilver articles (Annex IXtothe
tariff).
These internal taxes, which maybeadvalorem orspecific duties (excise) areinnoway
discriminatory against imported products except fortheinternal taxontobacco.
There arecurrently three VAT rates: anormal rateof21percent, areduced rateof14per
centonservices, materials andequipment andaspecial reduced rateof7percentforwidely consumed
products andhousing provision.
Certain products oroperations arelikewise exempted fromVATinaccordance withArticles 8,
9,10and11oftheTurnover Code (seeAnnex IItothetariff).
Thespecific surcharge isanadditional consumption taxaffecting certain imported orlocally
manufactured finished products. Itislevied:
- Onthec.i.f. price oftheimported products;WT/ACC/DZA/4
Page26
- ontheex-works price before taxforlocalproducts (seeAnnex Vtothetariff).
Theroaduserfeeapplies toforeign-registered motor vehicles which transport goods orpersons
overnational territory.
Thisfeeconsists ofafixed andavariable partdepending onthetypeandtotalladen weight
ofthevehicles andthedistance tobecovered (seeAnnex Xtothetariff).
(l) Rules oforigin
According totheMemorandum, therules oforigin areprovided inArticle 14etseq.of
theCustoms Code, which stipulates thatthecountry oforigin ofgoods isthecountry where they
were mined, harvested ormanufactured.
Question 54
Please provide atranslated copy ofArticle 14etseq.oftheCustoms Code totheWTO
Secretariat forreview bytheWorking Party.
Question 55
Aretherules oforigin provided bytheAlgerian Customs Code infullconformity with
therequirements oftheWTO Agreement onrules oforigin?
Question 56
WillAlgeria commit itself totheadoption oftheharmonized rules oforigin thatarebeing
developed bytheWorld Trade Organization?
Replies (54,55and56)
TheCustoms Code isattached hereto inelectronic form.
Thecustomary definition oforigin given inArticles 14etseq.oftheAlgerian Customs Code
isapplied without discrimination; asthetariff contains onlyonecustoms-duty column, there isno
reason fordiscriminatory application.
Algeria isfollowing theprogress ofthematter within WTO andundertakes toadopt the
harmonized rules oforigin assoonastheyhavebeendrawn upandformally adopted byWTO.
Question 57
Please provide atranslated copy ofArticle 8bisoftheCustoms Code.
Reply
TheCustoms Code issupplied intheannex inelectronic form.
Question 58
Please identify theproducts thatcould besubject tothesurcharge andtheapplicable
surcharge rates. Please explain indetail howthesurcharges areapplied.WT/ACC/DZA/4
Page27
Reply
Algeria hasresorted onlyoncetotheprovisional andlimited application ofsurcharges onthe
importation ofcertain textile products, hides andskins, footwear andmiscellaneous articles.
Executive Decree No.92-122 of23March 1992determined theratesapplicable tothesegoods
uptoalevelnotexceeding 40percentonanadvalorem basis.
TheInterministerial Order of7July1992 extended thelistofproducts subject tosurcharges
torefined oils,mineral water, aerated drinks, beer, wineandalcohol.
These surcharges were applied foroneyear.
Theaforementioned Decree andOrder willbefound inthe"Taxation, Prices andCountervailing
Duties" Annex tothisdocument.
Question 59
Please describe indetail theprocedures thatmust befollowed toapply theincreases in
customs duties. What governmental organization isresponsible forimplementing thecustoms
duties increases?
Reply
Executive Decree No.92-122 of23March 1992states inArticle 5thattheincreasing ofcustoms
duties asasafeguard measure fallswithin thecompetence ofacommission chaired bytheMinister
responsible forthebudget andcomposed of:
- TheDirector-General ofCompetition andPrices orhisrepresentative;
- theDirector-General ofCustoms orhisrepresentative;
- arepresentative oftheMinister responsible forIndustry;
- arepresentative oftheNational Planning Council;
- arepresentative oftheNational Chamber ofCommerce.
ThisCommission examines applications andreports totheMinister responsible forFinance.
Thebodyresponsible forapplying theincreases incustoms duties istheMinistry forFinance
viatheCustoms Administration.
Question 60
Please provide atranslated copyofArticle 8teroftheCustoms Code, ofExecutive Decree
No.92-123 of23March 1992 andtheInterministerial Order of7July1992 supplementing the
listofproducts subject tocountervailing duties totheWTO Secretariat forreview bytheWorking
Party.
Reply
TheCustoms Code isattached inelectronic form. Decree No.92-123 andtheInterministerial
Order requested aregiven inthe"Taxation, Prices andCountervailing Duties" Annex.WT/ACC/DZA/4
Page28
Question 61
Please outline howAlgeria 'scountervailing dutyregime complies withtheprovisions of
theWTO Agreement onSubsidies andCountervailing Measures. Please identify anydiscrepancies
withrespect totheAgreement andhowthese deficiencies willberemedied prior tothedateof
accession totheWTO.
Reply
There isnocountervailing dutyregime asestablished bytheWTO Agreement onSubsidies
andCountervailing Measures. Thecountervailing duties mentioned intheMemorandum areinfact
additional customs duties which intheWTO framework canberegarded assafeguard measures.
Algeria plans tobring itslegislation onthesubject intolinewithWTO rulesanddisciplines.
(o) Safeguard regime
According totheMemorandum, measures prescribed under thesafeguard regime have
never been implemented inpractice.
Question 62
Please provide atranslated copytotheWTO Secretariat, forreview bytheWorking Party,
ofthelegislation establishing theAlgerian safeguard regime.
Reply
Algeria possesses nospecific legislation establishing asafeguard regime within themeaning
ofArticle XIXandoftheWTO Agreement onSafeguards.
Thefieldofsafeguards isgoverned byArticle 8teroftheCustoms Code. TheCustoms Code
isgiven intheannex inelectronic form(andcanbeconsulted attheSecretariat, Accessions Division,
Office 1126).
Question 63
Please describe indetail theprocedures thatmust befollowed inorder toimplement
safeguard measures andthesubstantive requirements thatmust bemetforthemeasures tobe
imposed. What governmental organization isresponsible fordetermining whether there isaserious
injury orthreat ofserious injury todomestic industry caused byincreased imports?
Reply
There arenoprocedures (rules) orsubstantive requirements tobeobserved forimplementing
safeguard measures. These measures, insofar astheyrepresent anincrease incustoms duties, area
matter forthecommission chaired bytheMinister responsible forthebudget andreferred tointhe
reply toQuestion No.59.Thiscommission decides whether theincrease inimports iscausing or
threatens tocause serious injury todomestic production.WT/ACC/DZA/4
Page29
Question 64
Please describe howAlgeria 'ssafeguard regime complies fully withGATT Article XIX
andtheWTO Agreement onSafeguards. Please indicate howanydeficiencies willberemedied
prior toWTO accession.
Reply
Algeriadoesnotpossessanylegislationestablishingsafeguarddisciplineandproposestoprovide
itself withaspecific legislative andregulatory framework conforming toWTO rulesanddisciplines.
2. Export regulation
(a) Registration requirements forengaging inexporting
Algeria declares thatoperators involved inexport transactions inAlgeria arerequired to
mandatorily repatriate theproceeds ofexport transactions within atime-limit laiddown bytheBank
ofAlgeria.
Question 65
Please provide atranslated copyofthelegislation establishing therulesfortherepatriation
programme totheWTO Secretariat forreview bytheWorking Party.
Reply
Thelegislation establishing therulesfortherepatriation programme isattached hereto inthe
"Services" Annex.
Question 66
Please describe ingreater detail theoperation oftherepatriation programme. Whoreceives
theproceeds from theexport transactions? What arethetime-limits fortherepatriation ofthe
proceeds? Arethere different time-limits fordifferent products? IstheBank ofAlgeria solely
responsible fortheadministration oftherepatriation programme?
Reply
Repatriation oftheproceeds ofexport transactions mainly involves theexporter 'sandimporter 's
banks through thepayment totheexporting enterprise ofanamount inconvertible currency agreeing
withthatindicated onthecommercial documents (invoice, billoflading, etc.).
Theexport proceeds return totheexporting enterprises inallcases. Under current regulations,
proceeds willbeheldentirely inDinars (e.g.hydrocarbons) orelseasindicated inthereply toQuestion
No.1,halfinDinars andhalfinforeign exchange (non-hydrocarbon products).
Thetime-limits forrepatriation varyfrom30daysforhydrocarbons to120forother products,
thetreatment being thesame whatever thenature oftheproduct.
TheBank ofAlgeria istheonlyinstitution which administers theexchange arrangements and
canauthorize these limits tobeexceeded according tothecase.WT/ACC/DZA/4
Page30
(c) Quantitative export restrictions, including prohibitions, quotas andlicensing
"Palm treeseedlings, breeding sheep andcattle andobjects ofnational interest from the
historical, artistic orarchaeological standpoint, including vintage vehicles aretemporarily barred
from export andaresubject toexport restrictions."
Question 67
Arethese products stillsubject tothetemporary export banoranytrade restrictions?
Please describe thenature oftheexport restrictions andtherationale forusing them.
Reply
These products arestillsubject toatemporary export ban.These export restrictions areaimed
atpreservation ofthenational heritage. They areinlinewithArticle XXofGATT 1994, inparticular
paragraph (b)onpreservation ofthelifeofanimals andplant conservation and(f)onprotection of
national treasures.
Question 68
Please provide atranslated copy oftheInterministerial Order which establishes thelist
ofgoods temporarily barred from export totheWTO Secretariat forreview bytheWorking Party.
Please identify anddescribe anyadditional items subject toanexport banortrade restrictions.
Reply
Theinterministerial orders establishing thelistofgoods onwhich there isatemporary export
banwillbefound inthe"Imports-Exports" Annex tothisdocument.
Question 69
Does Algeria have anyagreements withother countries limiting theexportation ofany
products, such astextiles? Ifso,please describe fully andprovide atranslated copy ofthe
Agreement totheWTO Secretariat forreview bytheWorking Party.
Reply
Algeria isnotasignatory toanyvoluntary restraint agreement forexports either fortextiles
orforother products.
(e) Other measures
Algeria states thatminimum prices areestablished fortheexport ofdates andrawhides or
skins.
Question 70
Could Algeria explain infurther detail how theminimum price isdetermined and
implemented forthese products? What istherationale forusing minimum export prices forthese
products? Please provide adetailed description oftheprocedures applied anddatabase usedfor
theformulation oftheminimum prices.WT/ACC/DZA/4
Page31
Reply
Minimum prices arefixed onthebasis ofproposals drawn upbyassociations ofproducers,
exporters andother professionals concerned.
Theintroduction ofaminimum-price system isameasure dictated bythedesire to:
- Discourage capital flight (under-assessment ofproceeds toberepatriated);
- facilitate control ofthemarketing system;
- preserve theproduct 'sinternational reputation inthecaseofdates.
Theintroduction ofminimum export prices concerns three products, namely dates, tomato
concentrate anduntreated hides andskins.
Question 71
Please provide atranslated copytotheWTO Secretariat, forreview bytheWorking Party,
oftheMinistry ofTrade rules fortheuseofminimum export prices.
Reply
Minimum export prices arefixed byOrders oftheMinistry ofTrade. These Orders willbe
found inthe"Import-Export" Annex tothisdocument.
Question 72
How doesAlgeria intend tobring itsrules forminimum export pricing intoconformity
withGATT Article XI,which provides that"other measures" maynotbeusedtoprohibit orrestrict
theexportation ofproducts tomember countries?
Reply
Theintroduction ofminimum export prices isameasure brought infollowing theliberalization
offoreign trade, which wasaimed variously atdiscouraging capital flight, facilitating control ofthe
marketing system orpreserving aproduct 'sinternational reputation. There isnointention ofenlarging
thepresent listofproducts concerned apart fromthethree products referred toinquestion 70above.
(f) Export financing, subsidy andpromotion policies
Algeria maintains thatunder aspecial export promotion fundresources aremobilized tocover
partoftheexpenditure entailed bysurveys ofexternal markets, information forexporters, improving
thequality ofgoods andservices, participation inforeign fairsandexhibitions, andspecific requirements
withregard toexport financing andthefacilitation ofinternational transport andhandling operations
inAlgerian ports.WT/ACC/DZA/4
Page32
Question 73
Please describe indetail theoperation ofthespecial export promotion fund. What
government organization isresponsible foradministering thisfund? Please describe theeligibility
requirements forparticipating inthefund andtheprocedures toobtain agrant from it.What
criteria areconsidered inawarding grants pursuant tothefund?
Reply
Thefund wassetupunder the1996 Finance Law(Article 195), supplemented in1997
(Article 129). Decree No.96-205 of5June1996 defined thedetailed operation ofSpecial Fund
No.302-084 entitled "Special Fund forExport Promotion".
- Thesubsidy isgranted toallenterprises which export and/or produce goods orservices
ortoanytrader enrolled onthecommercial register;
- thebody responsible foradministering thisfundistheMinistry ofTrade. Requests
areaddressed directly tothisbody;
- anassessment commission examines thefilesandissues rulings ontherequests
submitted;
- therequests areexamined inaccordance withcriteria specified foreachtypeoffund
expenditureintechnicalguidancenotes.Thesenotesmustbepublishedandmadeknown
inadvance toallenterprises;
- atthepresent stage, thecriteria forobtaining afundsubsidy arespecified onlyfor
participation inforeign fairsandexhibitions (theguidance notewillbefound inthe
Annex). Thecriteria arestillunder study forother expenditure headings;
- theonlysubsidies from thisfundsofarhavetherefore beenawarded inthecategory
"participation inforeign fairsandexhibitions" andonthebasisof50percentcoverage
ofthefollowing costs: costsoftransport andinternational transit oftheproduct samples
tobeexhibited, rental costs ofexhibition areas.
Question 74
Areanyofthegrants from thespecial export promotion fund conditional onexport
performance orimport substitution? Areanyofthegrants from thefundotherwise incompatible
withtherequirements oftheWTO Agreement onSubsidies? Foreachofthepastthree years,
please provide theamount offunds awarded toeach ofthespecial export promotion fund's
categories.
Reply
Subsidies fromthespecial export-promotion fundarenotsubject torequirements astoexport
performance orimport substitution.
Thespecial export-promotion fundwassetuponlyin1996 anddidnotcome intoforce until
the1997 financial year.WT/ACC/DZA/4
Page33
Thepresentleveloffundexpenditureincurredattheendof1997amountstonearlyUS$233,644.
There hasnotyetbeenanyactual payment.
Subsidies granted under thisfundarenotincompatible withtheWTO Agreement onSubsidies
andCountervailing Measures.
TheAlgerian Export Insurance andGuarantee Fund (CAGEX) covers partoftheguarantees,
particularly those ofapolitical nature infavour ofenterprises which embark ontheorganization of
export-credit operations.
Question 75
Please describe theoperations currently covered byCAGEX; aretheylimited toaspecific
industrial sector ortooperations ofacertain size? Foreachofthepastthree years, what was
thetotalvalue ofexport operations covered byCAGEX export credit guarantees? Foreachof
thepastthree years, please provide thevalue ofoperations byexport category guaranteed by
CAGEX.
Reply
Theguarantees provided byCAGEX arethose connected withexport operations andcover
thecommercial andpolitical risksofnon-transfer anddisaster (Articles 1,3and4ofOrder No.96-06
of10January 1996). Theabove guarantees concern allnon-hydrocarbon operations whatever their
size.
Owing toitsrecent creation, CAGEX hasnostatistics prior totheyear1996.
(i) Value oftheoperations covered
(Millions ofDA)
Risks covered 1996 6/1997 Totals
Commercial risks
Political risks
Totals168
2,548
2,716527
127
654695
2,675
3,370
(ii) Value byindustrial sector
(Millions ofDA)
Activity 1996 1997 Totals
Agri-food
Industry
Rawmaterials
Services
Totals135
2,498
33
50
2,716354
50
250
/
654489
2,548
283
50
3,370WT/ACC/DZA/4
Page34
Question 76
Please describe theorganizational make upofCAGEX, i.e.whoparticipates onits
board? What enterprises areeligible toreceive CAGEX export credit guarantees? What ismeant
byguarantees thatareof"apolitical nature"?
Reply
CAGEX, withacapital ofDA250million, isajoint-stock company governed byOrder No.
96-06 of10January 1996 andDecree No.96-235 of2July1996. These twotextswillbefound in
the"Services" Annex tothisdocument.
Itwasfounded byfivebanks (theBADR orBank ofAgriculture andRural Development, the
BDL orLocal Development Bank, theBNA orNational Bank ofAlgeria, theBEAorExternal Bank
ofAlgeria andtheCPA orPopular Credit ofAlgeria) andfiveinsurance companies (theCAAR or
Algerian Insurance Company, theCAAT orAlgerian Company forInsurance, theCCR orCentral
Reinsurance Company, theSAAorNational Insurance Company andfinally theSNMA orNational
Mutual Agricultural Insurance Fund).
Arepresentative ofeachshareholder plustworepresentatives oftheState sitontheboard.
Export credit insurance maybetaken outbyanyresident natural orlegalperson engaging in
exporting from Algeria (Article 3ofOrder No.96-06).
Political riskisdefined byArticle 6ofOrder No.96-06 of10January 1996 asfollows:
- Apolitical riskoccurs when thebuyer hasnotsettled hisdebt, when non-payment is
notduetofailure toexecute thecontract clauses andconditions andwhen:
(i) thepurchaser isapublic administration oracompany responsible forapublic
service orwhen theexport operation gives risetoanobligation onthepart
ofapublic administration oracompany responsible forapublic service;
(ii) asaresult ofthefollowing causes:
- Civil orforeign war,revolution, riotsandother similar occurrences
inthepurchaser 'scountry ofresidence;
- amoratorium declared bytheauthorities ofthepurchaser 'scountry
ofresidence.
Question 77
Please describe fully anyinconsistencies between CAGEX export credit guarantees and
theWTO Agreement onSubsidies, inparticular inthelight ofprovisions ofparagraph (J)of
theillustrative listprovided inAnnex ItotheAgreement.
Reply
TheguaranteesprovidedbyCAGEXarenotincompatiblewiththeWTOAgreement,inparticular
inthelightofparagraph (J)oftheillustrative listmentioned inAnnex ItotheAgreement.WT/ACC/DZA/4
Page35
(g) Import dutydrawback schemes
There aretwoimport dutydrawback schemes, atemporary admission scheme forthere-export
ofgoods afterprocessing, andadrawback scheme proper, which allows firms torecover some ofthe
duties imposed onproducts incorporated inexport merchandise.
Question 78
Please provide atranslated copytotheWTO Secretariat, forreview bytheWorking Party,
ofArticle 190oftheCustoms Code, which provides therules fortheimport duty drawback
schemes.
Question 79
Please describe indetail theoperation ofthetemporary admission scheme. Please identify
allproducts, including HSnumbers, thatareeligible forthetemporary admission scheme. Are
imports from allcountries eligible forimportation under thetemporary admission scheme? For
each ofthepastthree years, what isthetotal value ofproducts thathasreceived temporary
admission pursuant tothisscheme? What governmental organization isresponsible forthe
administration ofthisscheme?
Question 80
How doestheGovernment ofAlgeria ensure thatallproducts which temporarily enter
Algeria arere-exported afterprocessing? Howarecustoms duties andother trade measures applied
toproducts thatenter temporarily pursuant tothisscheme, butwhich arenotsubsequently
re-exported from Algerian customs territory?
Question 81
Please describe indetail theoperation ofthedrawback scheme proper. Foreachofthe
pastthree years, what hasbeen thevalue ofgoods imported pursuant tothedrawback scheme
proper? What Government organization isresponsible fortheadministration ofthescheme?
HowdoesAlgeria ensure thattheoperation ofthedrawback scheme proper isinconformity with
theWTO Agreement onSubsidies, inparticular paragraph (i)oftheillustrative listprovided
inAnnex ItotheAgreement?
Replies (78,79,80and81)
Temporary admission
Temporary admission forinward processing isthecustoms regime which allows theadmission
intothecustom area,withatemporary lifting ofduties andtaxes andwithout application ofeconomic
restrictions, ofgoods imported foraspecified purpose andintended tobere-exported within adefinite
time-limit afterundergoing processing, additional labour orrepair.
Theregime excludes goods which arerestricted ongrounds ofpublic order, public safety,
hygiene andpublic health, forveterinary orplant-pathology reasons orforreasons connected with
theprotection ofpatents, trademarks, copyright andreproduction rights irrespective oftheirquantity
orcountry oforigin, lastexport ordestination.WT/ACC/DZA/4
Page36
Temporary admission authorizations, which aregranted bythecustoms administration, must
identify theadmissible goods interms oftheir destination, thenature oftheadditional labour or
processing which thegoods mustundergo, theproducts admitted incompensation forthetemporary
admission accounts andtheconditions forsuchcompensation.
Thetemporary-admission authorization alsostates theperiod ofstayofthegoods according
tothetimeneeded toperform theoperations forwhich theyhavebeenimported.
Atthetimeoftheirimportation, thegoods tobecovered bythetemporary admission regime
mustbethesubject ofadetailed declaration accompanied byanundertaking bythedeclarer, whodoes
nothavetogiveadeposit, tomeettheobligations under theregime andtobearanypenalties applicable
intheevent ofinfringement ornon-observance oftheundertakings.
Theproducts resulting fromtheprocessing oftemporarily admitted goods mustbere-exported
within theperiod laiddown, which mayhowever beextended forvalid reasons.
Thetemporary admission accounts mayberegularized by:
(i) Therelease forgeneral useofthecompensating products, intermediate products or
temporarily admitted goods inreturn forapplication ofthetrade measures inforce
andpayment oftheduties andtaxes relating totheimported goods onthedatewhen
thetemporary admission declaration wasregistered;
(ii) there-exportation orwarehousing intheunaltered stateofthegoods imported for
processing oradditional labour withaviewtotheirsubsequent re-exportation;
(iii) thedestruction ofthecompensating products, intermediate products orgoods imported
under thetemporary admission regime;
(iv) voluntary abandonment, bytheimporter infavour oftheTreasury.
Operations under thetemporary admission regime areclosely followed bythecustoms services
oftheoffice where thetemporarily admitted goods were imported. Atthetimeofexportation, the
goods arechecked andthefilesarecleared inaccordance withtheparticulars entered onthetemporary
admission authorization andwiththeconditions resulting from thetechnical dataconcerning the
beneficiary 'sactivity.
Drawback
Drawback isacustoms regime which, when goods areexported, permits totalorpartial
reimbursement oftheimport duties andtaxes which were imposed either onthose goods oronthe
products contained inthegoods exported orconsumed during theirproduction.
Reimbursement isprovided bythecustoms administration attherequest oftheexporter, who
mustprovide proof thatthegoods employed intheproducts exported havealready beenimported for
consumption andthataccounts havebeenkeptproving thatthedrawback request isjustified.
Noreimbursement hasbeenmade under thedrawback scheme overthepastthree years.WT/ACC/DZA/4
Page37
3. Internal policies affecting foreign trade ingoods
(a) Industrial policy
Energy sector
According totheMemorandum, theenergy sector wasforced toadapt tointernational economic
trends bydiversifying itsoutput andexports. Recent years haveseenproducts other thancrude oil
assume amuch greater importance inthehierarchy ofenergy exports. They include distillates, natural
gasandrefined products.
Question 82
What isthepolicy ofAlgeria regarding feedstock pricing inthepetrochemical sector and
particularly forpropane, butane andnaphtha? What isAlgeria 'spolicy onpricing forexport
andfordomestic deliveries offeedstocks?
Reply
Themainrawmaterial usedbytheAlgerian petrochemical industry isnatural gas.Thewhole
production ofpropane andbutane iseither exported orsoldasanendproduct onthedomestic market.
Thepricing policy forenergy products usedasrawmaterials maybeexamined forthreetypes
ofactivity:
- Electricity production andpublic gasdistribution;
- gassupplied tothepetrochemical industry;
- fertilizer production.
Regarding these three activities, Algeria proposes tomodify thepresent gas-pricing system
infuture, theintention being thatthegasprice should benegotiated between producer anduser. The
Statewillintervene onlytofixthetaxbaseforthetaxpaidbytheproducer (IDPandfee)inaccordance
withArticle 66ofthe1997 Finance Law.
Electricity andgastariffs aresetbytheState under Decree No.96-138 of15April 1996 on
abasis reflecting therealeconomic costs.
Theprices ofbutane andpropane intended forthedomestic market aredetermined centrally
byDecree. Thecurrently applicable Decree isDecree No.97-05 of4January 1997.
Asregards pricing, exports ofcrude oil,distillate, gas,refined products, propane andbutane
aregoverned byinternational market conditions atthetimeofthetransaction.
Question 83
Please provide translated copies ofanylaws, regulations ordecrees applicable tofeedstock
pricing totheWTO Secretariat forreview bytheWorking Party.WT/ACC/DZA/4
Page38
Reply
Executive Decree No.97-407 of3November 1997which sets"therefinery gatedelivery price
ofcrude oilandtheex-refinery prices andwholesale margin forrefined products intended forthe
domestic market" appears inthe"Energy" Annex tothisdocument.
Question 84
Does theAlgerian Government provide butane orother feedstocks fortheproduction of
exported MTBE atprices lower thanthose otherwise found onthedomestic market? Does the
Government ofAlgeria sellbutane tothird-party buyers forexport atprices equal tothose charged
todomestic MTBE producers?
Reply
Algeria doesnotproduce MTBE.
Question 85
Please describe Algeria 'splans forfuture policies toencourage increased production and
exports ofMTBE.
Reply
Thefuture development ofthepetrochemical sector ingeneral andtheproduction ofMTBE
inparticular constitute priorities forthehydrocarbon sector. Foreign financing andpartnership with
foreign companies possessing capital andtechnology arestrongly encouraged bytheAlgerian State.
Thepolicies forencouraging MTBE production arethose mentioned intheInvestment Code.
Investors interested inthisopening inthemarket canapply fortheconcessions laiddown inLegislative
Decree No.93-12 of5October 1993 oninvestment promotion.
Energy policy
Question 86
Please provide translated copies oftherules andregulations governing hydrocarbons.
Reply
Thelawsandregulations concerning hydrocarbons aregiven inthe"Energy" Annex tothis
document.
Question 87
Please describe theliquid hydrocarbon regime andexplain whyitisbeing extended to
gasproduction.
Reply
Hydrocarbons aregoverned byLawNo.86-14 of19August 1986, which defined:WT/ACC/DZA/4
Page39
- Thelegalregime forprospecting, exploration, exploitation andpipeline-transportation
activities together withthestructures andinstallations relating tothose activities;
- therights andobligations ofnational andforeign enterprises pursuing theabove
activities.
Thislawwasamended by:
(i) LawNo.91-12 of7September 1991 onthesupplementary Finance Lawfor1991.
Thisamendment relates toArticle 39concerning thetaxontheperformance ofthe
foreignpartnerandstressesthelatter'sobligationtopaythetaxdueonhisremuneration.
(ii) LawNo.91-21 of4December 1991, which introduced:
- Partnership withforeign companies regarding existing deposits. These were
previously reserved forexclusive exploitation byAlgerian industry;
- international arbitration asameans ofsettling disputes;
- abolition ofthemonopoly onhydrocarbon transport bypipeline;
- possibility ofpartnership withforeign companies inthefieldofgas.
(iii) LawNo.92-04 of14October 1992 onthesupplementary Finance Lawfor1992,
amending Article 22ofLawNo.86-14 of19August 1986.
Theamendments made under thislawconcern determination oftheforeign partner 's
share intheprofits inthecaseofcontracts ofassociation regarding existing deposits.
Thesame Article wasamended byLawNo.93-18 of29December 1993 concerning
the1994 Finance Law. Thisamendment enables thecashbonus paidbytheforeign
partner onconclusion ofthecontract ofassociation relating toexisting deposits tobe
recovered intheform ofareimbursement ofexpenses.
(iv) Theimplementing texts, which arebeing communicated totheWTO Secretariat, are:
- Decree No.87-157 of21July1987 ontheclassification ofzones of
hydrocarbon exploration andexploitation;
- Decree No.87-158 of21July1987 onprocedures foridentifying and
monitoringforeigncompaniesapplyingforassociationinrespectofhydrocarbon
prospecting, exploration andexploitation;
- Decree No.87-159 of21July1987onparticipation byforeign companies in
prospecting, exploration andexploitation activities concerning liquid
hydrocarbons;
- Decree No.88-34 of16February 1988 ontheconditions forgranting,
surrendering andwithdrawing mining titles forhydrocarbon prospecting,
exploration andexploitation;WT/ACC/DZA/4
Page40
- Decree No.88-35 of16February 1988 defining thenature ofthepiping and
related structures concerning hydrocarbon production andtransport andthe
procedures forrealizing them;
- Executive Decree No.94-43 of30January 1994setting outrulesforpreserving
hydrocarbon deposits andprotecting theassociated aquifers;
- Executive Decree No.95-93 of25March 1995onprocedures forauthorizing
thetransfer bytheforeign partner oftheamount ofhisamortization andnet
profits;
- Executive Decree No.96-118 of16April 1996amending andsupplementing
Decree No.87-159 of21July1987onparticipation byforeign companies in
hydrocarbon prospecting, exploration andexploitation activities.
Theliquid hydrocarbon regime hasbeenextended togasinorder torevive thesearch for
hydrocarbons inAlgeria through atechnological andfinancial input andtointerest theoilcompanies
ingasdeposits.
Question 88
Describe indetail thefiscal incentives regarding thesearch forhydrocarbons inareas of
inadequate development aswellasanyfiscal incentives which arenotinconformity withthe
agreements onsubsidies?
Reply
Thefiscal regime isaimed at:
- Encouraging theoilcompanies toinvest inthesearch forliquid andgashydrocarbons;
- ensuring revenue fortheState budget.
Theregime consists ofthefollowing elements:
(a) Thefee
- Basis ofcalculation: production bythedeposit;
- rate: bygeographical zonedetermined bythecurrent regulations, currently:
- 20percentinzoneN;16.25 percentinzoneAand12.50 percent
inzoneB;
- rebates ofupto10percentgranted onthebasis oftechnical criteria;
- payment: inkindorcash.
(b) Taxes
(i) Taxonperformance:WT/ACC/DZA/4
Page41
- Taxation base: gross performance forafinancial year;
- rate: bygeographical zone:
- 85percentinzoneN;
- 75percentinzoneA;
- 65percentinzoneB;
- rebates which canreduce therateto42percentgranted onthebasis
oftechnical criteria.
(ii) Taxonremuneration:
- taxation base: remuneration oftheforeign company asdefined bythe
contract ofassociation;
- rate: 38percent;
- payment: SONATRACH inthename andonbehalf ofthepartner.
(c) Value-added tax
Exemption.
(d) Aggregate income tax(IRG) forforeigners
Rate: 20percent.
(e) Customs duties
Exemption forallimported capital goods, products andmaterials intended foroilactivities
inaccordance withArticle 58ofLawNo.86-14 of19August 1986andtheOrder of7December 1991.
These fiscal advantages donotcontradict theAgreement onSubsidies.
(f) Other advantages
(i) Distribution ofincomes: exemption fortheforeign partner;
(ii) partner 'sshare inproduction: delivered FOBattheportofloading freeofall
charges andtaxes.
These fiscal advantages donotcontradict theAgreement onSubsidies.
Question 89
Please describe the"Association ofWorking Deposits" (AGE). Who participates inthe
AGE? Please describe theroleofAGE intheexportation ofenergy resources. Does AGE receive
anydirect governmental funding orindirect subsidies? Please describe anyexclusive orspecial
rights orprivileges granted toAGE bytheGovernment ofAlgeria.WT/ACC/DZA/4
Page42
Reply
TheAGEisacontract ofassociation oftheproduction-sharing agreement typewhich associates
theAlgeriancompanySONATRACHwithoneormoreforeignpartnersforthedevelopmentandworking
ofanoilorgasdeposit. Itisgoverned bytheprovisions ofArticle 22paragraph 2ofLawNo.86-14
of19August 1986 amended andsupplemented byLawNo.91-21 of4December 1991.
Themain characteristic ofthistypeofcontract isitspurpose andtheadvantages itgrants to
theforeign partner.
(a) Purpose
TheAGE contract covers thedevelopment andworking ofanexisting oilorgasdeposit.
(b) Advantages totheforeign company
(i) Theproduction-sharing procedures takeaccount oftheforeign partner 'stechnological
input;
(ii) thesizeofthedeposit affects thesizeoftheforeign partner 'sprofit;
(iii) there isnoexploration risk;
(iv) theforeign company enjoys alltherights andadvantages conferred bythe
production-sharing contracts allowed bytheexisting Algerian legalsystem.
(c) Obligations ontheforeign company
Theforeign company associated withSONATRACH mustpayabonus tocompensate forthe
costs incurred indiscovering thedeposit.
TheAGE receives noState subsidies anddoesnotinfluence theterms onwhich production
isexported.
Increase innatural gasexport capacity
Algeria iscompleting, increasing andconstructing natural gaspipelines toincrease export
capacity.
Question 90
IstheAlgerian Government providing anydirect orindirect subsidies fortheconstruction
ofthenatural gaspipelines?
Reply
Construction ofthepipelines isnotsubsidized bytheState. However, itisexempted from
VAT andcustoms dutyinrespect ofimported inputs under LawNo.86-14 of19August 1986 on
hydrocarbons.WT/ACC/DZA/4
Page43
Restructuring ofAlgerian industry
According totheMemorandum, oneoftheobjectives ofthenewrestructuring policy isto
improve theforeign trade balance oftheindustrial sector bygreater internal plant integration andby
amore pronounced slanttowards export activities.
Question 91
Please describe themechanisms being usedtoachieve thisobjective.
Reply
Thequest forbetter balanced foreign tradeisoneoftheobjectives oftheindustrial-restructuring
policy.
This objective isbeing pursued through, among other things, thefollowing actions and
mechanisms:
- Restructuring ofthepublic industrial sector, privatization andencouragement of
investment inthesmall andmedium enterprise field;
- adaptation oftheinstitutional, economic andsocial environment, interaliainorder
tostrengthen thecapacity tocreate factors ofproduction, develop quality-promotion
mechanisms and,ingeneral, foster thedevelopment ofbusiness support services,
modernize theeconomic andsocial infrastructure andadapt financial andadministrative
institutions totherequirements forthefunctioning ofacompetitive economy;
- theuseofexportsupportandpromotionmechanisms,especiallybycreatingintermediate
areas ofpromotion andapplying incentive measures.
Thecontent ofeachofthese linesofaction isdescribed below:
(a) Theindustrial policy isaimed ateffecting aprofound change innational industry so
astocomplete theemergence ofanindustrial fabric based mainly onprivate enterprise.
Thischange, which started some years ago,isbeing continued byrestructuring public
enterprises, privatizing them andencouraging private investment.
Therestructuring isaimed atre-establishing theprofitability, economic effectiveness
andinternal andexternal competitiveness ofindustrial enterprises, which aredecisive
conditions forcreating thecompetitive advantages necessary toboost exports.
Combined withthepromotion ofprivate investment through theInvestment Promotion
andSupport Agency (APSI), therestructuring andprivatization ofpublic industrial
enterprises should eventually leadtotheemergence ofanintegrated industrial base
where there isgreater complementarity between thebasic andprocessing industries
andgreater integration withagricultural activities.
(b) Thedevelopment ofexports intheindustrial sector isalsoclosely dependent onthe
general business environment, which mustensure thattherange ofservices available
tofirms isadapted totherequirements ofinternational competitivity. Many actions
areplanned inthisfield, e.g.:WT/ACC/DZA/4
Page44
(i) Reform ofthefinancial andbanking system; thisreform mustinclude meeting
exporters 'needs forexport financing andcredit guarantees andinsurance as
wellasother specific needs relating tothetreatment ofbanking transactions.
Inthisfield, theinitial actions taken resulted inthesetting upin1996 ofan
Export Insurance andGuarantee Fund (CAGEX) andofanexport-promotion
fund;
(ii) development ofbusiness support services. Aprogramme based onastudy
incooperation withUNIDO isbeing prepared. Thisprogramme focuses on
thedevelopment offactors suchasresearch/development, standardization,
product design, marketing andindustrial andcommercial information, quality
control, product certification andsupport andadvisory services tobusinesses
inthefields ofmanagement, operation, maintenance andtraining.
Certain actions included inthisprogramme arealready starting tobe
implemented: establishment in1996ofanetwork ofquality testing andanalysis
laboratories; study inprogress todraw upaproduct-certification system;
(iii) development andmodernization ofporttransport andhandling facilities and
portinfrastructure.
Inthisconnection numerous actions havebeenstarted aimed at:
- adaptingtheshippinglawsandtheregulationsgoverningportoperation,
soastoenable certain portactivities tobethrown opentocompetition;
- modernizing andadapting portinfrastructure byintroducing new
transport methods andrenewing handling andnavigation equipment;
(iv) creation offreezones inorder topromote investment inmainly export-oriented
activities; theInvestment Code defines thenature andconditions forsuch
investment andallows special advantages forexports from those zones.
Aninitial sitehasbeenselected forthefirstfreezone; asregards regulations,
thetextsgoverning theoperation ofthesezones havebeenpromulgated (Decree
No.94-320 of17December 1994 amended byDecree No.95-439 of
23December 1995determining theprocedures andconditions fordemarcating,
awarding andmanaging thefreezones; regulations andinstructions ofthe
Bank ofAlgeria concerning theexchange rulesspecific tothefreezones, the
conditions forcollecting theproceeds fromthese zones andtheconditions for
paying andtaxing thewages ofAlgerian residents working inthose zones).
(c) Theexport-development objective isalsobeing dealtwithbysetting upasupport system
involving incentive measures ofafiscal andcustoms nature, back-up instruments and
institutions inthefieldofinformation andpromotion, andmechanisms forguiding
theactivities ofenterprises inprospecting forforeign markets.WT/ACC/DZA/4
Page45
Question 92
What industrial sectors have sofarbeen identified asindecline? Inwhat sectors or
branches ofactivity hastheGovernment ofAlgeria decided tomaintain apresence asapermanent
ortemporary shareholder?
Reply
After achieving positive growth ratesuntil1986, Algerian industrial production hasdipped
overall since thatperiod andcontinues uptothismoment toshow adownward trend.
Therecessionary process hasbecome particularly marked since1991; forexample, theoverall
industrial production index moved between 1989 and1995 asfollows:
Year 1989 1990 1991 1992 1993 1994 1995
Index 100.0 101.1 96.9 1.9 91.1 83.4 80
In1996 industrial production fellagain byabout 10percentcompared with1995.
Thestrongest drops inproduction occurred intheironandsteel, mechanical andelectrical
industries, thetextile andleather industries andthewood andpaper industries; overtheperiod
concerned, theproduction index forthese sectors showed thefollowing trend:
Year
Sector1989 1990 1991 1992 1993 1994 1995
ISMEE* 100.0 100.0 93.7 85.5 82.0 68.2 74.5
Textiles, made-up
goods, knitwear100.0 105.1 102.7 102.4 95.7 82.5 73.1
Leather andfootwear 100.0 107.1 82.9 61.8 52.4 53.5 42.6
Wood, cork, paper 100.0 107.4 82.4 70.1 77.5 67.1 60.2
*ISMEE: Ironandsteel, metallurgical, electrical andelectronic industries.
Statewithdrawal frombusiness management forms partofthestrategic approach designed to
transform radically theorganization oftheeconomy anditssystem ofmanagement inorder tochange
from amanaged economy toaneconomy based onthefreeplayofmarket forces andintegrated into
theworld market.
Thetransformation programme started offslowly buthasspeeded upgreatly since 1994.
Thefirstphase ofthese transformations hasbasically consisted inremoving theState from
involvement inthemanagement ofpublic enterprises bygiving them complete legal andfinancial
autonomy.
Thisfirstphase hasalsowitnessed thegradual introduction ofregulating mechanisms forprices,
taxation, foreign exchange andcredit arrangements, foreign tradeandresource allocation, thusenabling
thegeneral operation oftheeconomy tobeorganized according tomarket logic.WT/ACC/DZA/4
Page46
Thisprocess hasitsjuridical andlegalanchor point inthelawonmoney andcredit, thelaw
onthemanagement ofmarket capital andtheCommercial Code.
Ingeneral,Algerianpublicenterprisesarenowmanagedonthesamebasisasprivateenterprises;
theyoperate under therules ofprivate lawandaresubject tothecommon rules oftheCommercial
Code. They allhavethestatus ofjoint-stock companies; theirmanagement isnowinthehands of
holding companies possessing ownership characteristics.
Thesecond phase ofStatedisengagement really started withtheprivatization order; Article 2
ofthatorder identifies thefollowing sectors which canbeprivatized straightaway:
- Hotel industry andtourism;
- trade anddistribution;
- mechanical, electrical andelectronic processing industries;
- wood anditsderivatives;
- paper;
- chemical industries;
- plastics;
- leather;
- roadtransport;
- insurance;
- portandairport services;
- building design andconstruction.
Ingeneral, theStateisworking onitsimmediate withdrawal fromcompeting sectors. Itremains
temporarily present inactivities which arenotyetadequately regulated bymarket forces. Itaimsat
reverting toitsnatural roleofregulating andencouraging theprocess ofeconomic andsocial
transformation.
Thelatter process isdesigned toleadtoanAlgerian economy inwhich private enterprise will
bethedominant force andwhere theState willmaintain apresence onlyinmining, public services
andservices which form natural monopolies.
However, theStatewillnotremain present inamonopolistic way. Investment intheseactivities
isopentotheprivate sector, bothnational andforeign.WT/ACC/DZA/4
Page47
Question 93
Please describe thepolicies being usedbytheGovernment ofAlgeria tolessen dependence
onimported inputs through thepromotion ofsubstitute facilities andresources. IstheGovernment
using anyfiscal incentives orindirect subsidies toaccomplish thisimport substitution objective?
What ismeant bythephrase "liberalization ofstocks" forthepurpose ofimport substitution?
Reply
Itisaimed toreduce dependence onimported inputs because oftheinefficiency oftheindustrial
sector, whose production capacity isnotfully exploited, partly because ofthissector 'sexcessive
dependence onimported inputs.
Thisaimisnotbeing pursued through fiscal incentives oranyother types ofsubsidy granted
specifically forinput production.
Thewaysandmeans envisaged forincreasing inputproduction arecovered bygeneral economic
development actions andconsist in:
(i) Promoting theproduction oflocal facilities andtheexploitation ofavailable but
underutilized natural resources usedtomanufacture industrial products;
(ii) promotingthesectorsinvolvedintheproductionoffoodstuffsandofequipmentintended
fortheconstruction, public works andwater engineering sectors;
(iii) developing subcontracting activities inorder, interalia,tofurnish thelocalmarket
withcertain parts, components andrawmaterials necessary forthemanufacture of
industrial products;
(iv) encouraging jointventures withforeign firms inthefieldofinput production andin
allfields ofproduction ingeneral;
(v) supporting theemergence ofsmall andmedium enterprises andinthisconnection
continuingtheactionstostreamlinetheinstitutionalenvironmentinordertofreeexisting
productivity reserves andpromote production byfacilitating thepursuit ofindustrial
activities, freeaccess toforeign trade andthedevelopment ofcompetition ingeneral.
Theabsence ofadense industrial fabric isoneofthemaincauses oftheinefficiency ofexisting
production, which results inaconsiderable tying upoftheavailable production resources.
Thefreeing ofthese reserves (i.e."liberalization ofstocks") isconsistent withthelogic of
theindustrial-restructuring andprivatization process. Thepurpose ofthisprocess istospurthe
development ofanSME/SMI sector which willformthebasisforthehorizontal integration necessary
fortheemergence ofatrulyintegrated industrial fabric; considerable opportunities arethusopento
theprivate sector inallfields ofproduction ingeneral andinthefields ofsubcontracting andindustry-
support services inparticular.WT/ACC/DZA/4
Page48
Question 94
TheGovernment ofAlgeria isseeking tolessen the"current heavy dependence onimported
inputs through thepromotion ofsubstitute facilities andresources ...particularly through efforts
toteamupwithforeignindustrialpartners".Pleasedescribeanytrade-relatedinvestmentmeasures
(TRIMs) thatarebeing usedbytheGovernment ofAlgeria toaccomplish theobjective ofimport
substitution.
Reply
TheLawonInvestment Promotion doesnotprovide foranymeasures incompatible withthe
Agreement onTrade-Related Investment Measures.
Question 95
IstheGovernment ofAlgeria using anydirect orindirect subsidies topromote newexport
activities outside thetraditional hydrocarbon sector? Please describe thesubsidies andidentify
anyinconsistencies withtheWTO Agreement onSubsidies.
Reply
Thenon-hydrocarbon export support arrangements areasfollows:
(i) Exportoperationsenjoyexemptionfromprofitstaxinproportiontotheexportturnover;
thismeasure wasintroduced bythe1996 Finance Lawforafive-year period; the
possibility ofrenewing itwillbereviewed attheendofthatperiod;
(ii) export operations arealsoexempted from thefollowing taxes:
- value added tax(VAT);
- domestic consumption duty(DIC);
- movement duty;
(iii) since 1996 exporters havealsoenjoyed theright todeduct theexport sales amount
fromthebasisofthetaxonprofessional activity (TAV); theyarealsoexempted from
theflat-rate payment (taxontheenterprise 'swage bill); these taxes areentered in
theaccounts ascosts;
(iv) inaddition, imports ofinputs usedinthemanufacture ofgoods intended forexport
areexempted fromVATandadmitted freeofcustoms duty; thecustoms-duty measure
isapplied through thecustoms procedures fortemporary admission orduty-free
resupply;
(v) theexport support andincentive arrangements alsoinclude support measures applied
through theexport-promotion fundintroduced bythe1996Finance Law, theresources
ofwhich come from ashare (10percent) oftheproceeds oftheSpecific Additional
Tax(TSA) imposed oncertain localorimported products.
Theexpenditure ofthisfundisdesigned tocover partofthefollowing expenses:WT/ACC/DZA/4
Page49
- Costs ofstudies offoreign markets, ofinformation toexporters andofstudies
onhowtoimprove thequality ofproducts andservices intended forexport;
- costs ofattending foreign fairsandexhibitions;
- costs ofadapting products toforeign markets;
- costs ofresearching foreign markets;
- costs ofinternational transport andhandling.
(vi) 1996 sawthecreation oftheAlgerian Foreign Trade Promotion Office (PROMEX)
whose function istopromote foreign trade byproviding necessary assistance to
enterprises, particularly inthefollowing fields:
- Information onforeign markets;
- market studies andforeign-market research;
- actions topromote export products;
- support fortrade representatives;
- anyactions which guide andstimulate business strategies inthefieldofforeign
trade;
(vii) TheAlgiers Trade Point which wassetupin1990buthassofarremained inoperative
hasbeen reactivated; action isbeing taken tobreathe newlifeintothis"Single
Window", which willenable foreign trade operators tobeorganized intoanetwork
which should facilitate theestablishment ofbusiness relations;
(viii) Furthermore, therehasbeenanoverhaul ofthestatutes ofchambers ofcommerce and
industry,whichareimportantforumswhichcanhelptoorganizetheinterestsofbusiness
circles andforwhich foreign trade isabasic concern.
Such, roughly, arethevarious mechanisms employed topromote anexport dynamic. The
process hasonlyjustcommenced: non-hydrocarbon exports arestillataverylowebb.
Theweakness ofexports ofgoods andservices isasignificant obstacle tothesuccessful inclusion
ofAlgeria inworld trade andtotheattainment ofhighgrowth rateswhich willsimultaneously bring
thebalance ofpayments intoequilibrium. Asexport development isanessential roadtoboosting the
growth process, itisfundamental forAlgeria tocontinue supporting andpromoting thisdevelopment.
Algeria accordingly hopes toenjoy theprovisions ofArticle 27oftheWTO Agreement on
SubsidiesandCountervailingMeasuresasregardsspecialdifferentiatedtreatmentfordevelopingcountries
inthefieldofexport subsidies. From thepoint ofview oftheWTO Agreement onSubsidies, the
measure intheexisting export support arrangements which isinconsistent withthatagreement isthe
oneconcerning exemption from profits tax.WT/ACC/DZA/4
Page50
(b) Quality control policy, technical regulations andstandards
Monitoring andpromotion ofquality
Question 96
Please submit aresponse tothequestionnaire ontechnical barriers totrade. (SeeAnnex 5
toWT/ACC/1).
Reply
Thereply totheabove questionnaire isinpreparation. Itwillbeforwarded totheWTO
Secretariat when ready.
Strengthening oflegislation governing quality
Question 97
Please provide atranslated copyofLawNo.89-02 of7February 1989ongeneral consumer
protection rules totheWTO Secretariat forreview bytheWorking Party. Please alsoprovide
translated copies ofDecree No.90-39 of30January 1990 onquality control andsuppression of
fraud, Executive Decree No.90-266 of15September 1990 onguarantees forgoods andservices,
Decrees No.90-366 and90-367 of10November 1990 onthelabelling offoodstuffs andnon-food
household purposes andDecree No.93-47 of6February 1993 oncontrol ofthequality and
conformity ofimported orexported products andoflocally manufactured products.
Reply
LawNo.89-02 of7February 1989 isavailable attheWTO Secretariat. Theother texts
requested appear inthe"Quality" Annex tothisdocument.
Question 98
According totheMemorandum, Algeria isgradually adapting tointernational standards
fornationally produced goods. Areimported goods andnationally produced goods always subject
tothesame standards inAlgeria? Ifnot,please identify theproducts forwhich different standards
apply, describe thedifferent standards andtherationale forthedifference.
Reply
Imported products andnationally produced products aresubject tothesametechnical standards
andregulations.
Standards andcertificates
Question 99
Please provide translated copies ofLawNo.89-23 of19December 1989, which laysdown
thegeneral framework forstandardization andcertification activity, totheWTO Secretariat for
reviewbytheWorkingParty.AlsopleaseprovideatranslatedcopyofExecutiveDecreeNo.90-123
ofMay1990 totheWTO Secretariat forWorking Party review.WT/ACC/DZA/4
Page51
Reply
AnINAPI brochure waspublished in1996 intheform ofacompendium ofthelegislation
andregulations concerning standardization inAlgeria. Thisdocument, which isavailable attheWTO
Secretariat, contains:
- TheOrder creating theINAPI;
- theLawonstandardization (Law No.89-23 ofDecember 1989);
- theDecree ontheorganization andfunctioning ofstandardization (Executive Decree
No.90-123 of15May1990);
- theMinisterial Order onthepreparation ofstandards;
- theMinisterial Order ontheorganization andfunctioning ofthetechnical committees;
- theOrder laying down theconditions andprocedures forawarding andwithdrawing
marks ofconformity withAlgerian standards.
Question 100
According totheMemorandum, thestandards system is"largely based oninternational
practice". Please elaborate onhowthelawsanddecrees cited (Law No.89-23, Executive Decree
No.90-132 andimplementing orders) implement theinternational practices.
Arethere regulations which explicitly provide guidance totheAlgerian Standardization
andIntellectual Property Institute (INAPI) orother agencies topublish draft standards, technical
regulations andconformity assessment procedures forpublic comment? Ifso,what istheperiod
allowed forcomment?
Reply
(a) Asthemanager ofthissystem, theINAPI hasbeenamember since 1976oftheInternational
Organization forStandardization (ISO). Thefunctioning ofthisbody isgoverned byprocedures
contained indocuments called "Directives".
Thetextsgoverning standardization activity inAlgeria arebased ontheseDirectives, especially
thesections concerning thepreparation andadoption ofstandards.
(b) LawNo.89-23 of19December 1989onstandardization gives theINAPI thetaskofpreparing
andpublishing Algerian standards, which areoftwotypes according totheirstatus:
- Voluntarily applied Algerian standards which areexempt from enquiry;
- approved Algerian standards which aresubject topublic andadministrative enquiry
lasting three months before theybecome compulsory.WT/ACC/DZA/4
Page52
Question 101
Arethepreparation, adoption andapplication ofstandards inAlgeria infullconformity
withtherequirements oftheCode ofGood Practice forthePreparation, Adoption andApplication
ofStandards found inAnnex 3totheWTO Agreement onTechnical Barriers toTrade? Please
identify anddescribe fully anydeficiencies intheAlgerian standards regime.
Reply
Thepreparation, adoption andapplication ofAlgerian standards are,apartfromthedeficiencies
mentioned below, inconformity withtheprovisions oftheCode ofPractice inAnnex 3totheWTO
Agreement onTechnical Barriers toTrade. These deficiencies concern thefollowing points:
Point H:
Theprovisions preventing theduplication oroverlapping ofstandardization work at
regional orinternational level arenotincluded.
Point J:
Theprovision obliging thenational standardising bodytocirculate itsworkprogramme
every sixmonths isnotobserved. Thetextsgoverning standardization inAlgeria laydown
notime-limits forthispurpose.
Point K:
TheAlgerian body (INAPI) isnotamember ofISONET.
Point L:
Thestandardization lawdoesnotprovide foranenquiry inthecaseofdraftstandards
proposed forregistration.
Point O:
Thetime-limitsforthepublicationofAlgerianstandardsarenotyettotallyundercontrol.
Question 102
What isthestatus ofAlgeria 'sproject toestablish asystem forcertification ofconformity?
HowwillAlgeria ensure thatthecertificate ofconformity system isdeveloped inconformity with
WTO rules andinternational standards?
Reply
Thecertification project inAlgeria started in1992. Thiscertification system hasbeendesigned
according togenerally accepted frames ofreference, inthiscasetheISO9000 standards (quality
management) andtherefore involves noform ofdiscrimination.
Certification isvoluntary inAlgeria. Thisactivity, which fallswithin ageneral framework,
namely thenational standardization system, isgoverned byaMinisterial Order which laysdown general
product-certification rules.WT/ACC/DZA/4
Page53
Theimplementation ofthenational certification project hasalready enabled theINAPI toreach
thestages involving thetraining ofauditors abroad andintroduction ofthequality system. Inthis
connection, twoproducts havereceived "blank" certification andcertain testlaboratories havereceived
"blank" accreditation. Aninitial product-conformity certificate wasrecently issued toanAlgerian
enterprise andaninitial accreditation certificate wassimilarly issued toanational laboratory.
Theeventual aimofthisproject isto:
- SetuptheAlgerianAccreditationCouncil(CAA)whichwillberesponsibleforassessing
thecompetence ofallparties concerned withconformity, including foreign certifying
bodies, inaccordance withISOstandards (ISO/IEC 58);
- replace theexisting approval (anadministrative act)bytransparent certification based
oninternational standards;
- make theCAA amember oftheQSAR (Quality System Assessment Recognition);
- place the"test" function inAlgeria onanorganized basis, tobefollowed gradually
bytheaccreditation oftestlaboratories.
Question 103
Please provide atranslated copytotheWTO Secretariat, forreview bytheWorking Party,
oftherules establishing asystem forcertification ofconformity.
Reply
TheMinisterialOrderof10March1991layingdowntheconditionsandproceduresforawarding
andwithdrawing marks ofconformity toAlgerian standards willbefound intheINAPI brochure
available attheWTO Secretariat.
(c) Sanitary andphytosanitary measures
Sanitary measures
Imports ofliveanimals andanimal products
Question 104
Please provide atranslated copy ofLaw No.88-08 of26January 1988 onveterinary
medicine andtheprotection ofanimal health, totheWTO Secretariat forreview bytheWorking
Party. Also please provide totheWTO Secretariat atranslated copy ofExecutive Decree
No.91-452 of16November 1991 onveterinary inspections atborder posts.
Reply
LawNo.88-08 of26January 1988 isavailable attheWTO Secretariat. Executive Decree
No.91-452 of16November 1991 isattached hereto inthe"Agriculture" Annex.WT/ACC/DZA/4
Page54
Question 105
With respect toagricultural products, howdoesAlgeria 'sevaluative process compare with
thestandards andregulations oftheCodex Alimentarius (CODEX), International Epizootics
Organization ortheEuropean Plant Protection Organization (EPPO)?
Reply
Quality control andassessment ofthecriteria ofeffectiveness ofagricultural products arebased
oncurrent standards ininternational organizations suchastheEPPO, Codex Alimentarius (FAO-WHO)
andtheIEOandarebased inparticular onLawNo.88-08 governing veterinary medicine andanimal
health protection, together withDecree No.91-452 oninspection atborder posts, andonLawNo.87-17
of1August 1987 andExecutive Decree No.93-286 of23November 1993 regulating plant health
inspection atborder posts (Article 5).
Border inspection ofplants, plantproducts andplantmaterial isapreventive operation designed
toprotect agricultural activities against theintroduction andestablishment ofdangerous croppests.
Inspection alsocovers planthealth products foragricultural useinorder toprevent unapproved
products and/or products notcomplying withcurrent international standards from entering Algerian
territory.
These measures areconsistent withtheWTO Agreement ontheApplication ofSanitary and
Phytosanitary Measures, inparticular Article 2(paragraphs 1,2,3and4).
Question 106
AccordingtotheMemorandum,forexportsofanimalproducts,essentiallyfisheryproducts,
ascheme forthelicensing ofestablishments responsible forprocessing suchproducts iscurrently
being carried outjointly with theEEC, asisascheme fortheintroduction ofpreshipment
bacteriological andtoxicological testing ofsuchproducts.
Please describe thisscheme indetail. Aretheprovisions ofthisscheme being applied to
non-EEC countries onamost-favoured-nation basis? What aretheprocedures forobtaining a
licence toprocess fishandother animal products andwhat eligibility criteria apply?
Reply
Theexportation offishery products tothecountries oftheEuropean Union isregulated by
Directive 91-493/EEC of22July1991laying down thehealth rulesfortheproduction andmarketing
offishery products.
TheAlgerian regulations conform tothestandards oftheEuropean Union countries. These
regulations consist ofthefollowing texts(see"Agriculture" Annex):
- Technical noteNo.23DSV/SD/CHSA of18September 1993 ontheidentification of
fish-product handling establishments;
- Complementary noteNo.58DSV/SD/CSHA of26December 1993;
- Executive Decree No.91-452 of16November 1991;WT/ACC/DZA/4
Page55
- LawNo.88-08 of26January 1988.
Thelistoffish-product handling establishments approved bytheAlgerian veterinary services
isforwarded regularly totheEuropean Union countries pending inspection byEuropean experts of
fishing structures andgrounds withaviewtotheirlicensing.
Before eachexporting operation thefishery products aresubjected tobacteriological and
toxicological analyses byapproved laboratories.
Licensing forthepurposes ofthehandling andprocessing offishandother animal products
isgranted attheexporter 'srequest.
Theveterinary inspector carries outon-the-spot verification thatthisestablishment conforms
asregards construction, planning andhygiene with theconditions setoutinNotes Nos. 23of
18September 1993 and58of26December 1993 DSV/SD/CSHA prepared onthebasis ofEEC
directives.
Ifthisestablishment isfound tobeinconformity, theowner isgranted alicence.
Theprovisions concerning thisoperation areapplied onanMFN basis.
Question 107
Please identify, including HSnumbers, allanimals andanimal products thataresubject
tosanitary export exemption. Please describe theprocedure forobtaining asanitary export
exemption forexports ofanimals oranimal products. What criteria areconsidered ingranting
thisexemption?
Reply
Thelistofanimals andanimal products subject tosanitary export exemption isgiven inDecree
No.91-452of16November1991concerningveterinaryinspectionsatborderposts(seereplytoQuestion
No.45above). ThisDecree willbefound inthe"Agriculture" Annex tothisdocument.
Thesanitary exemption fortheexport ofanimals andanimal products isgranted onthebasis
ofthefollowing supporting documents:
- Awritten request mentioning thenature andquantity andthecountry ofdestination;
- acertified copyofthecommercial register;
- acertificate ofapproval oftheestablishment issued bytheveterinary inspectorate of
thewilaya where itissituated;
- ahygiene certificate fortheestablishment issued notmore than30daysbefore;
- ahealth andveterinary certificate fortheproduct;
- areport ontheanalysis byanapproved veterinary laboratory;
- anidentity cardfortheanimals tobeexported.WT/ACC/DZA/4
Page56
Question 108
According totheMemorandum, exports ofveterinary products aresubject toaspecial
waiver issued bytheveterinary services oftheMinistry ofAgriculture.
What istherationale from theWTO point ofviewforrequiring awaiver bytheMinistry
ofAgriculture fortheexportation ofthese products?
Reply
Theexportation ofveterinary products manufactured inAlgeria issubject beforehand to:
- Approval ofthemanufacturing establishment;
- authorization toplace theproducts ontheAlgerian market;
- submission oftheanalysis report ontheproduct prepared bytheapproved laboratory;
- submissionofthehealthcertificatepreparedbytheveterinaryinspectorateofthewilaya.
Onthebasis ofthese documents, aveterinary health certificate forexportation isdrawn up
bytheDirectorate ofVeterinary Services guaranteeing thattheproduct satisfies existing international
standards, thattheproduct isharmless under normal conditions andthatitseffect istherapeutic.
Phytosanitary andagricultural pesticide controls
Phytosanitary border controls
Question 109
Please provide translated copies totheWTO Secretariat, forreview bytheWorking Party,
ofExecutiveDecreeNo.93-286of23November1993,andannexes,regulatingphytosanitaryborder
controls, Ministerial Order No.32of13January 1992onphytosanitary conditions fortheimport
ofplants andparts ofliving plants offruitandornamental species andMinisterial Order No.306
SPM of18November 1995 requiring technical authorization forimports ofpotato tubers and
laying down specific phytosanitary requirements.
Reply
Thetextsrequested willbefound inthe"Agriculture" Annex tothisdocument.
Question 110
Please indicate howtheborder measures provided forinAlgeria 'slegislation areconsistent
withtheWTO Agreement ontheApplication ofSanitary andPhytosanitary Measures, andhow
Algeria plans toremedy anydeficiencies.
Reply
These measures areconsistent withtheWTO Agreement ontheApplication ofSanitary and
Phytosanitary Measures, inparticular theprovisions ofitsArticle 2(paragraphs 1,2,3and4).WT/ACC/DZA/4
Page57
(e) State trading
Question 111
Please provide atranslated copyoftheGeneral Principles ActonPublic Enterprises (Law
No.88-01 of12January 1988) totheWTO Secretariat forreview bytheWorking Party.
Reply
Acopyoftherequested legislation willbefound inthe"Legislative Texts andExtracts" Annex
tothisdocument.
Question 112
Please describe theAlgerian Inter-Trade Cereals Office (OAIC) andtheNational Food
Supply Enterprise (ENAPAL) asaresponse tothequestionnaire onstate trading.
Reply
Anoutline replytothisquestion willbegiven inthequestionnaire onstatetrading (WT/ACC/1),
which willbeforwarded totheWTO Secretariat when ithasbeenfinalized.
Question 113
Please identify thedefacto monopolies engaged intheimportation ofstrategic foodstuffs,
rawmaterials andsemi-finished products required fortheproduction process, andconstruction
materials.
Reply
Thedefactomonopoliesenjoyedbyenterprisesengagedintheimportationofstrategicfoodstuffs,
rawmaterials andsemi-finished products required fortheproduction process concern thefollowing
products:
Product description Number ofproduct tariff heading
Milk 04.01; 04.02
Rawcoral 05.08
Potatoes 07.01
Pulses 07.13
Dates 08.04.10.10; 08.04.10.50; 08.04.10.90
Coffee, teaandspices Chapter 09
Cereals 10.01; 10.02; 10.03; 10.04; 10.05; 10.06
Milling products 11.01 to11.06
Edible oils 15.07 to15.15 to15.17
Sugar 17.01WT/ACC/DZA/4
Page58
Product description Number ofproduct tariff heading
Cereal preparations, macaroni, spaghetti
andsimilar products19.02
Tomato concentrate 20.02
Breadmaking yeast 21.02
Wine 22.04
Animal feed 23.09.10; 23.09.90.30;
Tobacco Chapter 24
Cement 25.23
Mineral product Chapter 26
Fertilizers Chapter 31
Paints 32.09 and32.10
Soaps andwashing powders 34.01; 34.02; 34.03
Matches 36.05
Plastic films foragricultural use 39.20
Tyres 40.11
Inner tubes 40.13
Wood andderivatives 44.03; 44.04; 44.06; 44.07; 44.08; 44.10;
44.11; 44.12; 44.13
Newsprint 48.01
Publishing products: books 49.01
Wool 51.01
Cotton 52.01
Glass 70.02; 70.03; 70.04; 70.05
Precious metals 71.06 to71.12
Concrete reinforcing bars 72.03
Tubes forgaspipes 73.04
Household equipment:
-Refrigerators
-Washing machines
-Television sets84.18
84.22
85.28
Electrical equipment fortelephony 85.17
Wires andcables 85.44
Medical equipment 90.18; 90.19; 90.20; 90.21; 90.22WT/ACC/DZA/4
Page59
Question 114
Please discuss imports bytheGovernment ofAlgeria, e.g.what sorts ofproducts does
theState import; arethese products forGovernmental consumption onlyoraretheyused in
themanufacturing process ordistributed forcommercial sale; which firms aredesignated to
dealinthistrade?
Reply
Theproducts mentioned inthereply toQuestion No.113areimported bypublic enterprises.
These enterprises donotimport exclusively tomeettheoperating needs ofthepublic authorities
butalsofortheir ownrequirements inthemanufacturing process, aswellasfordistribution for
commercial sale.
Thefirms carrying outsuch transactions arenotformally designated. ForGovernment
procurement theyareselected bycompetitive tender.
Question 115
Concerning theregime applicable totheproduction andexportation ofpetroleum, natural
gasandpetrochemicals:
Please outline thestructure ofthisindustry forproduction andtrade. DoestheGovernment
ofAlgeria ownanyenterprises which have theability toinfluence, through their purchases and
sales, thelevelofimports orexports ofoil,natural gasorpetrochemicals? HastheGovernment
conferred exclusive orspecial rights orprivileges onanyenterprises intheexercise ofwhich they
caninfluence through theirpurchases orsalesthelevelordirection ofimports orexports ofthese
products? Please identify anddescribe these enterprises asaresponse tothequestionnaire on
state trading.
Reply
Regarding theregime applicable inthisindustry, thefollowing three points should benoted:
(a) Thelawsapplicable tooilandgasproduction
Under aconstitutional principle hydrocarbons (oilandgas)belong tothenation. They are
consequently subject tothelawsonthepublic domain.
They areclassified asbelonging tothepublic domain andtherefore cannot beprivately owned.
However, theexercise ofthisrightmaybedelegated under LawNo.86-14 of19August 1986, amended
andsupplemented, governing theprospecting, exploration, working andtransport bypipeline of
hydrocarbons.
Thelegalframework introduced in1986wasreformed in1991withthefollowing aimsinmind:
- Toboost exploration byincreased resort tojointventures withforeign oilcompanies;
- todevelop known butunexploited deposits.WT/ACC/DZA/4
Page60
Thereforms concerned maybesummarized asfollows:
(i) Abolition ofthegasmonopoly byintroducing thepossibility ofjointventures with
foreign enterprises;
(ii) abolition ofthepipeline transport monopoly forhydrocarbons;
(iii) reduction intaxandfeelevels forallforms ofcontracts;
(iv) introduction ofthepossibility ofinternational arbitration asawayofsettling disputes
which mayarisebetween theAlgerian company anditsforeign partners during the
execution ofanoilexploration andproduction contract;
(v) withdrawal oftheState from contractual relationships byabolishing theprotocol;
(vi) introduction ofanewcontractual formula, theAGE, topermit theexploitation ofknown
deposits inpartnership withforeign companies.
(b) Description oftheenterprise operating intheoilandgasproduction andexport fields
Topromote itshydrocarbon resources Algeria setup,in1963, theNational Company for
Hydrocarbon Exploration, Production, Transport andProcessing. Thisisapublic limited liability
company whose authorized capital issubscribed entirely bytheState.
TheSONATRACH dimension
(i) Thenational dimension
Thenational dimension ofSONATRACH concerns hydrocarbons, inwhich gaswillgradually
occupy theleading place.
SONATRACH currently discharges strategic tasks focusing ontheexploration, production,
transport, processing andliquefaction ofnatural gas,theseparation ofLPG, supplying ofthenational
market andthemarketing ofliquid andgaseous hydrocarbons ontheinternational market.
(ii) International dimension
Owing toAlgeria 'sspecial geographical situation with respect toconsumer markets,
SONATRACH hasexpanded itscommercial activities inthedirection ofWestern Europe andtheUnited
States, while devoting particular attention tothecountries around theMediterranean withwhich ithas
supply contracts, inparticular viathetwogaspipelines:
- Transmed IandII(Algeria-Italy viaTunisia);
- West Maghreb gaspipeline (Algeria-Spain viaMorocco).
(iii) International partnerships
SONATRACH haslinks with major multinational companies inrespect ofexploration,
exploitation andengineering operations andthesetting upofproduction units.WT/ACC/DZA/4
Page61
Furthermore, asaninternational oilgroup, SONATRACH holds shares insubsidiaries setup
locally (14)andabroad (11).
(c) Petrochemicals
Petrochemicals isafieldwhich isnotsubject toanyspecific legalsystem. Itisacommercial
activity open tocompetition. TheState encourages jointventures, inter aliathrough theLawon
Investment Promotion. Atpresent therearenoenterprises which influence thelevelofexports, owing
tothemodest levelofpetrochemical production bythese enterprises.
(f) Freezones
(g) Freeeconomic zones
Question 116
Please provide atranslated copy ofLegislative Decree No.93-12 onthepromotion of
investment, which provides fortheestablishment ofindustrial freezones forexport, andExecutive
Decree No.94-32, which provides theprocedures forthemanagement andestablishment offree
zones.
Reply
Therequested textsappear inthe"Investment" Annex tothisdocument.
Question 117
Please elaborate onthecriteria thatfirms must meet toestablish themselves inthefree
customs andfreeeconomic zones. Doanyofthese criteria include export performance, local
content ortrade balancing elements?
Reply
TheInvestment Code laysdown nocriteria forestablishment inthefreezones. Itimposes
norequirements concerning localcontent. However, itstipulates thatprojects established thereshould
beexport-oriented.
Question 118
Willestablishment inthese freezones, either customs oreconomic, beconditional onexport
performance? Willnormal taxes tariffs andother trade restrictions beapplied onsales from
these zones intotherestofAlgeria.
Reply
TheInvestment Code defines thefreezoneasanadministratively separate areafromthecustoms
territory which isaimed atinvestments made from capital subscriptions inconvertible currency and
directed atexport activities without priorperformance conditions. These freezones operate according
toaspecial taxandcustoms regime. Transactions withtherestofthecountry areregarded asforeign
trade operations andaresubject tothelegislation inforce.WT/ACC/DZA/4
Page62
(i) Mixing regulations
Question 119
ArethereanylawsorregulationsinAlgeriathatrequirethatacertainpercentageorvolume
ofdomestic materials orlabour beusedintheproduction process ofgoods soldinAlgeria orthat
there should beacertain balance, involume orvalue, between thepurchase ofnational products
andimports?
Reply
There arenolawsorregulations ofthistypeinAlgeria.
Question 120
Isapproval from theGovernment ofAlgeria required toengage inbarter transactions
between residents ofthewilayat ofsouthern Algeria andNiger andMali? What criteria does
theGovernment ofAlgeria consider indetermining whether ornottoapprove these transactions?
Reply
TheGovernment determines theregulations forcontrolling barter operations between residents
ofthewilayat ofsouthern Algeria andtheborder populations ofNiger andMali.
Approval isgiven inajointOrder oftheMinistry ofTrade andMinistry ofFinance which
fixesthelistofgoods which maybebartered andways ofcarrying outthistypeofoperation.
Theproducts currently authorized forbarter intheborder areas are:
(a) Algerian products
Common dates; Frezza dates excluding theother varieties ofDeglet Nour dates;
domesticsalt;domesticarticlesofplastic,aluminium,castiron,ironandsteel;blankets
andlocalcraftgoods excluding wool carpets.
(b) Products from MaliandNiger
Livestock, henna, green tea;spices; drymeats, turban cloth, targui cloth, millet,
rancid butter forlocalconsumption, pulses, rice,mangoes.
Trading,whichtakesplaceonthebasisofdeclarationsmadewhenthegoodsarebrought
inandtaken out,isfreeofcustoms duties ontheAlgerian side. Theestimated annual
amount ofthese barter transactions, which aredesigned tomaintain theage-old links
between thepopulations oftheseregions, islessthanUS$1,000,000 forbothcountries
combined.
Question 121
Areproductsimportedthroughbartertransactionssubjecttothesametariffsandnon-tariff
measures assimilar products imported through normal channels? How doestheGovernment
ofAlgeria value forcustoms purposes imports ofproducts received inbarter transactions?WT/ACC/DZA/4
Page63
Reply
Exemption from customs duties isgranted unilaterally byAlgeria fortheproducts onthe
aforementioned lists.
Thevalue oftheproducts imported inbarter transactions isdetermined forcustoms statistics
purposesonthebasisofthedeclarationsmadeandinaccordancewiththecontrolled-declarationprinciple.
Question 122
Please describe product exchange ortechnical exchange transactions. What istherationale
forusing these producers? Areproducts imported through product exchange ortechnical exchange
transactions subject tothesame tariffs andnon-tariff measures asarelikeproducts imported
through normal channels? How arethese products valued forcustoms purposes?
Reply
Product exchange isanexport operation offsetting oneormore product-import operations,
withnofinancial transfer.
Technical exchange isanexport operation offsetting thedelivery bytheimporter oftheexported
product ofanother product ofequivalent value toaforeign customer oftheAlgerian enterprise.
These procedures areusedinorder toallow exchanges which would otherwise beimpossible
owing totheimporting countries 'inadequate means inrespect ofinternational payments.
Products imported under theproduct-exchange ortechnical-exchange procedure aresubject
tothesamecustoms duties andnon-tariff measures asproducts imported through thenormal channels.
Valuationforcustomspurposesiscarriedoutinthesamewayasfornormallyimportedproducts.
Question 123
Please identify allproducts, including HSnumbers, that areeligible forthese
product-exchange ortechnical-exchange transactions. Istheability tousethese transactions limited
tocertain trading partners orisitavailable forimports from allWTO Members ona
most-favoured-nation basis?
Reply
Theproducts currently authorized forproduct exchange ortechnical exchange andwhich are
notintended forresale intheunaltered stateare:
- Forimport: equipment, rawmaterials, semi-finished products, spare partsandtools;
- forexport: allproducts except Deglet Nour dates, petrochemical andironandsteel
products, fertilizers, ironoreandwine.
Thisprocedure applies toallcountries onanMFN basis.WT/ACC/DZA/4
Page64
(k) Trade agreements leading tocountry-specific quota allocation
Question 124
Does Algeria have anyexport quotas ontextiles withanycountries orcustoms unions?
Does Algeria havevoluntary export restraints ororderly marketing arrangements ineffect with
anycountries orcustoms unions?
Reply
Asregards textiles, Algeria hasnoexport quotas withanycountries orcustoms unions, nor
hasitanyvoluntary restraint agreements regarding exports ororderly marketing arrangements with
countries orcustoms unions.
(l) Governmentprocurementpractices,includinglegalregimeandproceduresfortendering,dealing
withtenders andaward ofcontracts
Question 125
Please provide statistical information onthevolume ofGovernment procurement, broken
down bycentral Government, sub-central Government andother entities, andwithin each of
these headings, bysupplies, construction andservices. (Seeparagraph 3(c)ofAnnex 1to
WTO/ACC/DZA/1).
Reply
Therequested statistics willbefound inthe"Government Procurement Statistics" annex to
thisdocument.
Question 126
Please provide atranslated copy ofDecree No.91-434 of9November 1991 totheWTO
Secretariat forreview bytheWorking Party.
Reply
Therequested textisavailable attheWTO Secretariat.
4. Policies affecting trade inagricultural products
(a) Imports
Question 127
According totheMemorandum, thesizeofAlgeria 'sfoodbillandanyslippage likely in
theyears ahead, given therateofpopulation growth andtheriskofupward fluctuations inthe
international prices ofthevarious products, isprompting thepossibility ofcontrolling imports
byintroducing aquota system foralimited period. However, Article 4.2oftheWTO Agreement
onAgriculture prohibits theuseofnon-tariff measures, including quantitative restrictions except
for measures maintained under balance-of-payments provisions orunder general,
non-agriculture-specific provisions ofGATT 1994 oroftheother WTO multilateral trade
agreements.
How doestheGovernment ofAlgeria rationalize itspotential useofimport quotas for
agricultural products given thatsuchmeasures areWTO-inconsistent?WT/ACC/DZA/4
Page65
Reply
Algeria, which isanetimporter offoodstuffs, doesnotapply anyquotas onimports of
agricultural products. However, given thepresent inadequacies ofitsagricultural production and
food-safety considerations, itplans tocontrol suchimports inthefuture. Once itaccedes totheWTO,
itwillcomply withtherelevant provisions oftheWTO Agreement onAgriculture.
(e) Internal agricultural policies
Budgetary matters
Question 128
Please describe thedomestic agriculture policies bysubmitting aresponse toWT/ACC/4,
"Information tobeProvided onDomestic Support andExport Subsidies inAgriculture" prior
tothenextmeeting oftheWorking Party.
Reply
Theagriculture support policy hasbeensubstantially changed inthecontext ofthereforms
started intheagricultural sector.
Price ofproduction factors
Thesupport policy forinput prices overthelastfewyears hasdemonstrated itslimitations
owing totheimpossibility ofcontrolling thefinaldestination ofthese factors. Thepublic authorities
havetherefore hadtomake thenecessary adjustments since Statesupport forproduction factors was
completely abolished in1994.
Overall theabolition ofthesubsidies hascaused anoticeable riseininput prices andthusin
production costs, leading tohigher prices ofagricultural products onthedomestic market.
Producer prices
Theauthorities endeavour toencourage production through guaranteed minimum producer
prices forcertain strategic products. Theguaranteed minimum prices, which arebased ontheproduction
costsplusanincentive premium, havebeenapplied toafairly widerange ofproducts since 1990, e.g.
cereals andpulses andtheirseeds, seedpotatoes, industrial tomatoes andunprocessed cows'milk.
Analysis oftheimpact ofguaranteed minimum prices ontheincreasing ofproduction andon
farmincomes hasshown thattheproducts tobesupported must bebetter targeted.
Consumer prices
Consumer subsidies forfoodstuffs havebeengradually phased outsince 1994.
Support forprivate investment
Theeconomicauthoritieshaveinitiatedanewdomesticsupportpolicyaimedsolelyatproductive
investment. Thepurpose ofthispolicy istobring about theactive involvement ofthefarming profession
anddirect targeting ofrecipient farmers.WT/ACC/DZA/4
Page66
Thebasic principles ofthisnewform ofsupport include:
- Phasing outofproducer pricesubsidies apartfromthoseforcommon anddurum wheat.
Forthelatter, given theobjectives offoodsecurity andmaintenance offarming inareas
which provide noalternative economic activity, support willbecontinued according
toforms andprocedures which arecurrently being studied andassessed;
- abolition ofthesubsidy forfarminputs;
- shifting ofState subsidies towards:
- direct support forproducers forspecific activities andinvestments (dairy
programme, seedprogramme, etc.);
- support forinvestments inagricultural service activities (storage, distribution,
marketing, etc.);
- principle ofinterest raterebates onagricultural loans, thelevels being adjustable to
match thegeneral trend ofthenational economy.
Taxation
Question 129
WhatproductsareeligibleforVATexemptionsasinvestmentsindurumwheatandcommon
wheat?
Reply
Inaddition todurum wheat andcommon wheat, theagricultural andanimal products which
enjoy exemption from VAT arelisted inatableinthe"Agriculture" Annex tothisdocument.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(c) Membership ofinternational conventions andregional orbilateral agreements onintellectual
property
Question 130
WillAlgeria accede totheBerne Convention fortheProtection ofLiterary andArtistic
Works andtheGeneva Convention onPhonograms prior toWTO accession? DoesAlgeria intend
tojointheBrussels Convention andtherecently concluded WIPO Treaties onCopyright and
Performances andPhonograms respectively?WT/ACC/DZA/4
Page67
Reply
Theprocedure forAlgeria 'smembership oftheBerne Convention isinprogress. Therelevant
Presidential Decree hasbeensigned andtheinstruments ofaccession willbedeposited withtheWIPO
Director-General shortly.
Thepossibility ofAlgeria 'smembership oftheConvention ontheProtection ofPhonogram
ProducersagainstunauthorizedreproductionoftheirphonogramsandtheBrusselsConventioniscurrently
under study. Itisplanned toratify thenewWIPO treaties oncopyright andrelated rights.
(d) Application ofnational andmost-favoured-nation (MFN) treatment toforeign nationals
According totheMemorandum, non-resident nationals arerequired toappoint anagent
domiciled inAlgeria inorder tosecure therecognition ofintellectual property rights.
Question 131
HowdoesAlgeria intend tobring thisprovision intoconformity withthenational treatment
provision ofArticle 3oftheTRIPS Agreement?
Reply
Theobligation imposed byAlgerian legislation tochoose domicile inAlgeria byestablishing
arepresentative there doesnotdepart fromtheprinciple ofnational treatment inthatthesame rights
aregranted toallapplicants; thisobligation isrecognized bytheParis Convention fortheProtection
ofIndustrial Property (seeArticle 2,paragraph 3oftheConvention).
Inthecontext ofAlgeria 'saccession toWTO, thisquestion willbestudied withaneyeto
conformity withtheTRIPS Agreement.
(e) Feesandtaxes
Question 132
Please provide aschedule showing thefeescharged inconnection withsubmitting patent
applications, registered trademarks, conducting patent andtrademark searches andreviewing
denials oftrademark orpatent applications.
Reply
(i) Regarding patents ofinventions, the1996 Finance Lawprovides inArticle 21thatthefees
andtaxes charged bytheINAPI andprovided forinArticle 124ofLegislative Decree No.93-01 of
19January 1993 onthe1993 Finance Lawareamended andreplaced bythefollowing fees:WT/ACC/DZA/4
Page68
Parafiscal taxes levied bytheINAPI forindustrial property activities
Code Nature oftaxes Unittariff (DA)
762-01 Filing ofapplication forinvention patent 5,000
-02 Filing ofaddition certificate 3,000
-03 Claim ofpriority 800
-04 Publication ofinvention patent, addition certificates 2,400
Taxes onannual payments
-11 From 2ndto5thannual payment 3,000
-12 From 6thto10thannual payment 4,000
-13 From 11thto15thannual payment 6,000
-14 From 16thto20thannual payment 9,000
Supplementary taxes
-21 Publication ofinvention patents andaddition certificates,
persetof5pages afterthefirst10600
-22 Publication ofdesigns
Small sizepersheet afterthe3rd
Large sizepersheet afterthe2nd200
500
-23 Taxes onauthorized correction ofmaterial errors
Forthefirst
Foreachofthefollowing500
900
-24 Conversion intoanapplication forinvention patents ofan
application foracertificate ofaddition notyetissued800
-25 Registration taxes ofanykindconcerning apatent
application orapatent600
-26 Registration taxes concerning thetransfer orgrant ofan
application forapatent, anapplication foranaddition
certificate oranaddition certificate1,200
-27 Surcharge fordelayed payment ofannual payments for
invention patents within the6-month grace periodEqual tothe
amount ofthe
unpaid annual
payment
Taxes onprovision ofinformation
-31 Issue ofanofficial copyofadesign, perpageorsheet 200
-32 Authentication ofaprinted section, ofaninvention patent
orofanaddition certificate200
-33 Issue ofastatement ofannual payments foraninvention
patent240
-34 Issue ofcertified copyofregistration inthespecial patent
register300
-35 Investigation ofprior art,perpatent 2,400WT/ACC/DZA/4
Page69
(ii) Regarding trademark registration andsearch
Thedocuments containing theschedule offeesandtaxeslevied forregistration andsearch will
befound inthe"Commercial Register, Trademarks andAppellations ofOrigin" Annex tothisdocument.
There arenofeesforappeals against rejections ofapplications forpatents ortrademarks.
2. Substantive standards ofprotection, including procedures fortheacquisition andmaintenance
ofintellectual property rights
(a) Copyright andrelated rights, including rights ofperformers, producers ofphonograms and
broadcasting organizations
Question 133
Please provide atranslated copyofthenewlegislation oncopyright totheWTO Secretariat
forreview bytheWorking Party.
Reply
Thenewcopyright legislation isavailable attheWTO Secretariat.
Question 134
Please identify allprovisions ofthenewcopyright legislation thatarenotconsistent with
therequirements oftheWTO TRIPS Agreement andArticles 1to21andArticle 6bisoftheBerne
Convention (which areincorporated byreference inArticle 9ofTRIPS). HowdoesAlgeria intend
tomodify itscopyright lawtobring itintocompliance withTRIPS obligations prior toWTO
accession?
Reply
Theprovisions ofOrder No.97-10 of6March oncopyright andrelated rights areinconformity
withtheTRIPS Agreement andArticles 1to21oftheBerne Convention. Noamendment tothis
legislation istherefore planned onthispoint inconnection withAlgeria 'saccession toWTO.
Question 135
ArecomputerprogramsandcompilationsofdataprotectedasliteraryworksunderAlgerian
copyright legislation?
Reply
Under theprovisions ofArticle 4(a)ofOrder No.97-10 of6March 1997 oncopyright and
related rights, computer programs areprotected asliterary works.
Asregards datacompilations, theseareprotected inthesamewayascollections oranthologies
ofworks which byreason oftheirchoice, coordination orarrangement areoriginal innature (see
Article 5ofOrder No.97-10).WT/ACC/DZA/4
Page70
Question 136
Please describe therental rights provided forcomputer programs andcinematographic
works bythenewcopyright legislation.
Reply
Order No.97-10 of6March 1997oncopyright andrelated rights gives theauthor anexclusive
right toauthorize therental tothepublic oftheoriginals orcopies ofaudio-visual works andthe
professional rental ofsoftware anddatabases (Article 27).
Question 137
Does thecopyright lawprovide aterm ofprotection calculated onabasis other thanthe
lifeofanatural person? Isthisterm inconformity withtherequirements ofTRIPS Article 12?
Reply
Under Order No.97-10 of6March 1997 oncopyright andrelated rights, theduration of
protection ofrights isnormally calculated according tothelifetime ofanatural person.
However, forcertain categories ofworks, the50-year protection period runsfrompublication
ofthework (collective works, pseudonymous oranonymous works andworks belonging totheapplied
arts).
Foraudio-visual works, thisperiod iscalculated from thedateonwhich thework wasmade
accessible tothepublic. Iftheaudio-visual work hasnotbeenmade accessible tothepublic, its
protection expires 50years afteritscreation.
These provisions arenotinconsistent withArticle 12oftheTRIPS Agreement.
According totheMemorandum, thetermofprotection under thenewcopyright legislation
isthelifetime oftheauthor plus25years afterdeath forthebenefit ofhissuccessors intitle.
Question 138
Does Algerian lawprovide a50-year period ofprotection forperformers andproducers
ofphonograms, asrequired byTRIPS Article 14?
Reply
Asregards performers andproducers ofphonograms, Order No.97-10 of6March 1997 on
copyright andrelated rights fixestheprotection period fortheirrights at50years from thecalendar
yearaftertheperformance orphonogram wasmade available tothepublic.
(b) Trademarks, including service marks
Question 139
Please provide acopyoftheAlgerian legislation ontrademarks andservice marks tothe
WTO Secretariat forreview bytheWorking Party.WT/ACC/DZA/4
Page71
Reply
TheAlgerian legislation ontrademarks andservice marks willbefound inthe"Commercial
Register, Trademarks andAppellations ofOrigin" Annex tothisdocument. Itshould benoted that
theWIPO makes available totheWTO, freeofcharge, alltextsrelating totheprotection ofintellectual
property, inEnglish orFrench.
Question 140
Does Algerian trademark lawprovide forthecompulsory useoftrademarks by
manufacturers?
Reply
Article 5paragraph 2ofOrder No.66-57 of19March 1966ontrademarks provides that"The
applicant isrequired tousehistrademark intheyearfollowing theapplication except inexceptional
cases andfollowing justification bytheparty concerned; where thetrademark isnotusedafterexpiry
ofthetime-limit, theapplication shallbeineffective."
Exceptional cases arenotdefined andarelefttothejudgement ofthecompetent authority in
conformity withcurrent legislation.
However, tomake Algerian legislation comply withtheprovisions ofArticle 9oftheTRIPS
Agreement,thistime-limitwillbeextendedto(3)yearswhenthecurrentrevisionoftheabove-mentioned
Order iscomplete.
Question 141
DoesAlgerian trademark lawprovide forappeals against refusals ofregistration? Isthere
aprocess foradministrative appeals regarding registration refusals, withadministrative decisions
appealable tothecivilcourt system? Please describe fully thisprocess.
Reply
Decisions torefuse registration cannot beappealed against through hierarchical channels but
canbetaken before thecourts. Article 7oftheCode ofCivil Procedure allows proceedings for
annulment against decisions taken bypublic administrations andbypublic administrative establishments
suchastheNational Commercial Register Centre.
TheAdministrative Chamber oftheSupreme Court decides, following anappeal, ondecisions
issued inthefirstinstance bytheadministrative courts inallcases where thelaworregulations do
notprovide otherwise; thetime-limit forappeal isonemonth from notification (forresidents), this
period being increased bytwomonths forforeigners (seeArticles 277and104oftheCode ofCivil
Procedure).
Appeals totheAdministrative Chamber arebrought bymeans ofawritten application tothe
Registrar oftheSupreme Court, accompanied interaliabythedecision rejecting theprior appeal (see
Articles 281and282oftheCode ofCivil Procedure).
Articles 7,104, 277,281and282oftheCode ofCivil Procedure willbefound inthe
"Legislative Texts andExtracts" Annex tothisdocument.WT/ACC/DZA/4
Page72
(c) Geographical indications, including appellations oforigin
Question 142
Please provide atranslated copytotheWTO Secretariat, forreview bytheWorking Party,
oftheAlgerian lawforprotection ofgeographical indications, including appellations oforigin.
Reply
Thelegislation onappellations oforigin isannexed hereto; withregard tounregulated
geographical indications, namely indications ofsource allotted toproducts inorder toindicate their
origin, these receive protection pursuant totheprovisions ofthefollowing texts:
- TheMadrid Agreement fortheRepression ofFalse orDeceptive Indications ofSource
onGoods, applicable toAlgeria, permits theimpounding onimportation ofproducts
bearing afalseordeceptive indication ofsource;
- theCriminal Code: Article 429ofOrder No.75-47 of17June1975contains specific
provisions onfraud asregards kind ororigin inthesaleofgoods (seeAnnex
"Legislative TextandExtracts");
- LawNo.89-02 of7February 1989 onthegeneral rules forconsumer protection;
Article 3provides that"The product must meet thelegitimate expectation ofthe
consumer concerning inparticular itsnature, kind, origin, etc...."andrefers tothe
Criminal Code asregards thepenalties applicable tothose violating thisprovision;
- Article 24oftheCustoms Code concerning theprohibitions relating tofalseindications
oforigin.
(d) Industrial designs andmodels
Question 143
Please provide atranslated copytotheWTO Secretariat, forreview bytheWorking Party,
ofthelawonprotection ofindustrial designs andmodels.
Reply
Therelevant legislation isgiven inthe"Commercial Register, Trademarks andAppellations
ofOrigin" Annex tothisdocument.
(e) Patents andprotection ofplant varieties
Question 144
Please provide atranslated copytotheWTO Secretariat, forreview bytheWorking Party,
oftheAlgerian Patent Law.WT/ACC/DZA/4
Page73
Reply
Legislative Decree No.93-17 of7December 1993ontheprotection ofinventions isavailable
attheWTO Secretariat.
N.B.
Anerror hasoccurred inArticle 19oftheabove Decree (page 6).After correction thisshould
therefore read:
Article 19:"Anyone wishing toobtain protection foraninvention mustmake anexplicit request
tothisendtotheservices responsible forindustrial property."
instead of:
"Anyone wishing tomake aninvention must ...".
Question 145
Please describe fully theAlgerian patent regime andidentify allitems thatarenotin
conformity withtherequirements ofTRIPS Section 5.
Reply
(a) Algerian patent regime
ThenewAlgerian legislation onpatents ofinvention, inthecaseinpoint Legislative Decree
No.93-17 of7December 1993 ontheprotection ofinventions, repealed Order No.66-54 of
1March 1966 oncertificates ofinventors andpatents ofinvention.
Patents ofinvention, which wereformerly reserved forforeign applicants, aretherefore granted
henceforth toallapplicants fortheprotection ofinventions. Former applications forinventor certificates
deposited under the1966 legislation bynationals andforeign residents canthus, under Article 37of
Legislative Decree No.93-17 above, beconverted intoapplications forpatents ofinvention andregarded
assuch.
Anyone wishing toobtain protection foraninvention inAlgeria mustmake anexplicit request
tothisendtotheINAPI (Article 19oftheaforementioned Decree No.93-17).
Protection bymeans ofapatent ofinvention canbegranted onlytoinventions which arenew,
result from aninventive activity andarecapable ofbeing applied onanindustrial scale.
Patent protection excludes:
- plantvarieties oranimal breeds, andtheessentially biological processes forproducing
plants oranimals andnot..."andtheprocesses forproducing them (page 77ofthe
Memorandum)";
- strains ofmicro-organisms;
- foodstuffs, pharmaceuticals, cosmetics andchemicals; however, thisprovision does
notapply totheprocesses bywhich theyareproduced.WT/ACC/DZA/4
Page74
Theformalities forfiling applications fortheprotection ofinventions andtheprocedures for
examining theform inwhich patents andaddition certificates should beissued andprotection titles
published arecarried outinaccordance withinternational standards applied bytheWorld Intellectual
Property Organization (WIPO).
Thepatents andaddition certificates issued arepublished intheOfficial Industrial Property
Bulletin (BOPI). TheBOPI ispublished bytheINAPI andiswidely circulated forconsultation and
researchpurposestouniversities,researchcentres,publicandprivateenterprisesandinforeigncountries.
(b) Description ofAlgerian patent legislation
Texts governing inventions in
Algeria-Legislative Decree No.93-17 of7December 1993 on
theprotection ofinventions, repealing Order No.
66-54 of3March 1966 onthecertificate ofinvention
andpatent ofinvention;
-Texts implementing theaforementioned legislative
decree
Titles issued -Patent ofinvention
-Addition certificate
Duration ofprotection -20years forthepatent, from thedateoffiling ofthe
protection application
-Thevalidity oftheaddition certificate endswiththe
main patent(s) towhich itrefers;
-Thevalidity ofthetitles isdependent onpayment of
therelevant charges.
Subject oftheinvention -Aninvention mayrelate either toaproduct ortoa
process
Patentability criteria -Novelty;
-Non-obviousness (inventive activity)
-Industrial applicability oftheinvention
Texts governing inventions in
Algeria-Legislative Decree No.93-17 of7December 1993 on
theprotection ofinventions, repealing Order No.
66-54 of3March 1966 onthecertificate ofinvention
andpatent ofinvention;
-Texts implementing theaforementioned legislative
decree;
Patent protection doesnotcover
inventions relating to:-Plant varieties oranimal breeds, andtheessentially
biological processes forproducing plants oranimals;
-Strains ofmicro-organisms;
-Foodstuffs, pharmaceuticals, cosmetics andchemicals,
excluding theprocesses bywhich theyareproducedWT/ACC/DZA/4
Page75
Transfer ofrights -Bycontractual licence: anyholder ofanapplication
forapatent, apatent and/or anaddition certificate may
voluntarily andbycontract waive partorallofhis
rights forthebenefit ofathirdparty;
-Bycompulsory licence: from thethirdyearafterissue
ofthepatent orfrom thefourth yearafterfiling ofthe
application, anyperson mayobtain from thecompetent
court a(compulsory) exploitation licence byreason of
thepartial ortotalfailure toexploit theinvention
patented;
Acompulsory licence mayalsobeissued when required
bythepublic interest, inaccordance withregulation
procedures.
(c) Theitems inLegislative Decree No.93-17 of7December 1993which arenotconsistent with
therequirements ofSection 5oftheTRIPS Agreement appear inthefollowing articles
Article 3
"Inventions which arenew,which result fromaninventive activity andwhich canbeapplied
industrially canbeprotected byapatent";
Article 7
Thefollowing arenotregarded asinventions:
(i) Principles, theories anddiscoveries ofascientific nature together withmathematical
methods;
(ii) plans, principles ormethods forcarrying outpurely intellectual orplay-oriented actions;
(iii) methods andsystems ofteaching, organization, administration ormanagement;
(iv) methods oftreating thehuman oranimal body bysurgery ortherapy together with
methods ofdiagnosis;
(v) mere presentations ofinformation;
(vi) creations ofanexclusively ornamental nature.
Article 8
Apatent maynotbevalidly obtained for:
(i) Plant varieties oranimal breeds, ortheessentially biological processes forproducing
plants oranimals;
(ii) strains ofmicro-organisms;WT/ACC/DZA/4
Page76
(iii) foodstuffs,pharmaceuticals,cosmeticsandchemicals;however,thisprovisionexcludes
theprocesses forproducing them;
(iv) inventionswhosepublicationorapplicationwouldbecontrarytopublicpolicyormorals.
Article 20
Theinvention mustbedescribed sufficiently clearly andcompletely forittobeevaluated and
foraprofessional tobeabletoputitintoeffect.
- anofficial copymust besupplied ofanyprevious applications.
Article 24
Theholder ofapatent ofinvention maygiveanother person alicence toexploit hisinvention
bycontract. Theclauses contained inlicensing contracts shallbeconsidered unwritten where they
impose onthelicensee limitations intheindustrial orcommercial fieldwhich donotresult from the
rights conferred bythepatent orwhich arenotnecessary inorder tosafeguard those rights.
Article 29
Asregards lapseofthepatent, thisarticle provides onlyapossibility ofrestoration ofthepatent
incompliance withagrace period ofsixmonths.
Question 146
According totheMemorandum, Algeria does notprovide protection tostrains of
micro-organisms, foodstuffs, pharmaceuticals, cosmetics andchemicals, excluding theprocesses
bywhich theywere produced. How doesAlgeria intend toprovide patent protection forthese
items inaccordance withWTO TRIPS Agreement requirements?
Reply
Strains ofmicro-organisms andtheprocesses bywhich theyareproduced areexplicitly excluded
from patentability byAlgerian legislation.
However,Algeriaisstudyingwaysofbringingitslegislationintolinewiththerelevantprovisions
oftheWTO TRIPS Agreement.
Question 147
Please provide atranslated copyoftheregulatory enactment onprotection ofplant species
totheWTO Secretariat forreview bytheWorking Party.
Reply
ExecutiveDecreeNo.93-285of23November1993determiningthelistofprotecteduncultivated
plant species willbefound inthe"Agriculture" Annex tothisdocument.WT/ACC/DZA/4
Page77
Question 148
Please describe theprocedures thatmust befollowed inorder toobtain protection ofplant
varieties andtheprotections conferred bytheregulatory enactment.
Reply
Uncultivated plantspecies aslisted intheAnnex toDecree No.93-285 areprotected overthe
whole ofnational territory pursuant toArticles 10and11ofLawNo.83-03 of5February 1983 on
protection oftheenvironment.
Theprotection conferred bytheregulatory provisions ontheseplantvarieties concern banning:
- Thedestruction, cutting, mutilation, grubbing up,gathering orremoval ofplants of
these species ortheirfruitings, transport, peddling, use,offer forsaleorpurchase;
- destruction, alteration ordegradation oftheenvironment specific totheseplantspecies.
(g) Layout designs ofintegrated circuits
According totheMemorandum, theAlgerian copyright lawextends protection toinclude
computer programs andtechnical documentation describing suchprograms. However, Section 6of
theTRIPS Agreement applies tolayout designs (topographies) ofintegrated circuits.
Question 149
How doesAlgeria intend toprovide theprotections required byTRIPS Articles 35-38 to
these products?
Reply
InOrder No.97-10 of6March 1997oncopyright andrelated rights, layout designs ofintegrated
circuits donotappear among theworks protected bycopyright since theyarenotregarded asliterary
andartistic works.
Asthings stand atpresent, there arenoplans toprotect layout designs ofintegrated circuits
bymeans ofcopyright legislation.
However, theotherpossibilities ofprotecting integrated circuits provided forbytheWashington
Treaty willbeexamined.
According totheMemorandum, thecriminal lawofAlgeria makes itapunishable offence
foraworker tocommunicate orattempt tocommunicate toforeigners orAlgerians resident inaforeign
country information concerning thesecrets oftheenterprise inwhich heworks, unless heisauthorized
todoso.
Question 150
Please provide atranslated copy oftheAlgerian criminal lawprovisions relating to
undisclosed information totheWTO Secretariat forreview bytheWorking Party.WT/ACC/DZA/4
Page78
Reply
There isatpresent noprotection forundisclosed information.
Question 151
Isthedisclosure ofenterprise secrets toanAlgerian national inAlgeria punishable asan
offence under Algerian criminal law?
Reply
Article 302oftheCriminal Code makes itapunishable offence foraworker tocommunicate
orattempt tocommunicate toforeigners orAlgerians resident inAlgeria orinaforeign country
information concerning thesecrets oftheenterprise inwhich heworks unless heisauthorized todo
so.
Question 152
Please describe indetail thecivillawprovisions pertaining totheprotection ofundisclosed
information.
Reply
Seethereply toQuestion 150above.
4. Enforcement
(c) Civil procedures andremedies
Question 153
Please provide atranslated copy oftheprovisions relating tothecivilenforcement of
intellectual property rights intheCode ofCivil Procedure, Civil Code andCommercial Code
totheWTO Secretariat forreview bytheWorking Party.
Reply
Article 687oftheCivilCode states that"Rights which haveastheirobject animmaterial thing
oranintangible element aregoverned byspecial laws"; itshould beremembered thatArticle 78of
theCommercial Code defines industrial andcommercial property asanintangible element ofthe
goodwill. These articles appear inthe"Legislative Texts andExtracts" Annex tothisdocument.
Question 154
According totheMemorandum, thelegislation oninventions provides fortheinvalidity
ofclauses imposing obligations andlimitations notderived fromtherights conferred onthelicensee
bythepatent ofinvention. What doesthismean inpractical terms?
Reply
Article 11ofLegislative Decree No.93-17 of7December 1993 defines therights conferred
byapatent ofinvention onitsholder orlegalsuccessor.WT/ACC/DZA/4
Page79
Article 24ofthesametextdeclares nullandvoidanycontractual clause which maybeimposed
byalicensor (patent holder) onalicensee andwhich isnotcovered bythescope oftheprotection
conferred onitbythepatent orpatents covered bythecontract.
Byexamining andstudying licensing contracts concerning transfers ofindustrial property rights,
thecompetent Algerian body hasinpractice observed several cases ofabuse practised byholders of
industrial property rights against licensees. Anon-exhaustive listofcasesofrestrictive practices (unfair
clauses) hasbeendrawn up.
Question 155
Inaddition, anyinterested party mayobtain acompulsory licence from thecompetent
court onthegrounds offailure towork orinsufficient working ofapatent. Does importation
satisfy theworking requirement? Please describe therequirements toobtain acompulsory licence
ingreater detail.
Reply
Under Article 12ofLegislative Decree No.93-17 of7December 1993 therights resulting
from apatent extend onlytoactsaccomplished forindustrial orcommercial purposes.
Noprohibition (resulting from therights ofthepatentee) isimposed onaperson whouses
thepatented invention forscientific research.
Ontheother hand, therights conferred byanyoneofthetitles(patent, addition certificate)
maybewholly orpartly transferred forthebenefit ofthirdparties.
Anyholder ofapatent maytherefore, bymeans ofacontract, license another person toexploit
hisinvention.
However, acompulsory licence, which fallsoutside thecontrol ofthepatentee, maybegranted
iftheinvention isnotexploited orinsufficiently exploited within theprescribed periods andparticularly
inthefollowing cases:
(i) Thepatentedinventionwhichcouldbeexploitedinthecountryisinadequatelyexploited;
(ii) demand forthepatented product isnotsatisfied inthecountry onequitable terms;
(iii) exploitation oftheinvention inAlgeria isimpeded orprevented bythefactthatthe
patented product isimported;
(iv) refusal bythepatent holder togrant licences onequitable terms;
(v) asubstantial market forexport ofthepatented product manufactured inthecountry
isnotsupplied;
(vi) theestablishment ordevelopment ofcommercial orindustrial activities inthecountry
issubstantially impeded.
Acompulsory licence maybegranted when required bythepublic interest.WT/ACC/DZA/4
Page80
Nevertheless, inallcases theapplicant foracompulsory licence mustprovide proof thathe
haspreviously applied tothepatent holder andhasbeenunable toobtain acontractual licence from
himonequitable terms.
Acompulsory licence canbegranted onlyonapaying basis.
(e) Criminal procedures
Question 156
Please describe thecriminal penalties fortrademark counterfeiting andcopyright piracy
onacommercial scale.
Reply
(a) Trademark counterfeiting
Algerian trademark legislation gives theowner ofatrademark theopportunity oftaking action
either before thecivilcourt orbefore thecriminal court inorder tobring anendtotheinfringement
ofhisright; "Civil actions relating tomarks shallbebrought before thecourts. Intheevent ofcriminal
proceedings, thecompetent court shall ruleontheplearelating toownership ofthemark." (See
Article 38ofOrder No.66-57 of19March 1966 onmarks.)
Under anOrder ofthepresiding magistrate, theowner ofamark mayarrange forthecarrying
out,withthepossible assistance ofanexpert, ofadetailed description, withorwithout seizure, of
theproducts which healleges havebeenmarked tohisdetriment; thecourt maydemand thatthe
petitioner provides security, which ishowever always required offoreigners, whoarerequired todeposit
it(Article 38above).
Thefollowing persons willbepunished byafineorimprisonment orbyonlyoneofthese
twopenalties:
- Those whohavecounterfeited amark orusedacounterfeit mark;
- those whohavefraudulently affixed amarkbelonging tosomeone elsetotheirproducts
ortoarticles traded bythem;
- those whohaveknowingly soldoroffered forsaleoneormore products bearing a
counterfeit orfraudulently affixed mark;
- those who, although notcounterfeiting amark, haveimitated itinafraudulent way
soastodeceive thebuyer orhavemade useofafraudulently imitated mark;
- those whohavemade useofamark bearing information likely todeceive thebuyer
astothenature oftheproduct;
- those whohaveknowingly soldorputupforsaleoneormore products bearing amark
thathasbeenfraudulently imitated orthatcarries information likely todeceive thebuyer
astothenature oftheproduct (Articles 28,29and30oftheOrder).
Offenders mayalsobetemporarily deprived oftheelectoral rights connected withtheir
occupation; thecourt mayorder thatthejudgement should bedisplayed intheplaces itlaysdownWT/ACC/DZA/4
Page81
andthatitshould bewholly orpartly published indesignated newspapers, allthisattheexpense of
theoffender (Article 34oftheOrder).
Inaddition tothepenalties mentioned inArticles 28,29and30(seeabove), thecourt may
order, eveninthecaseofacquittal, theconfiscation oftheproducts andinstruments which gaverise
totheoffence; inallcases itwillorder destruction oftheplates andmodels ofthemark concerned
(Article 35oftheOrder).
(b) Criminal penalties forcounterfeiting andpiracy
Thecriminal penalties laiddown forcounterfeiters byOrder No.97-10 of6March 1997
concerning copyright andrelated rights arethefollowing:
- imprisonment offromsixmonths tothreeyears andafineofDA500,000 to1,000,000;
- forasecond offence, these penalties aredoubled andtheestablishments operated by
thecounterfeiter orhisaccomplice maybetemporarily orpermanently closed;
- confiscation ofthesumsequal totheamount oftheproceeds fromtheillicit exploitation
oftheprotected work orservice andofanyequipment specially installed forsuch
exploitation aswellasofallcounterfeit objects andcopies;
- publication ofthejudgements inthenewspapers andtheirdisplay, attheexpense of
theoffenders.
VI. TRADE-RELATED SERVICES REGIME
1. General
Weappreciate thedescription oftheservices regime provided intheForeign Trade
Memorandum. However, since thesubmission oftheMemorandum, theSecretariat hasissued
atechnical note, WT/ACC/5, which provides astandard format forthecomprehensive description
ofservices information.
Question 157
Weregret anyinconvenience caused byasking foraresubmission ofservices information,
butthesubmission ofaresponse toWT/ACC/5 would greatly simplify andexpedite theWorking
Party review oftheservices regime. Please submit aresponse inthenewformat.
Reply
Theinformation onservices iscommunicated below intheformat indicated inWT/ACC/5.
Itshould benoted, however, thatamore exhaustive study including alistoftheregulations applicable
inallservices sectors andsub-sectors iscurrently inprogress. Theresults ofthisstudy willalsobe
forwarded when ready.
Question 158
Please provide references forallexisting legislation anddocuments relating toservices,
particularly relating toforeign service providers, issued bylegislative agencies andwhere they
have been published.WT/ACC/DZA/4
Page82
Reply
Allthelawsandtextsrelating toservices willbefound inthe"Services" Annex tothisdocument
orarealready available attheWTO Secretariat.
3. Market access andnational treatment
Question 159
DoesAlgeria contemplate taking anyMFN exemptions inanysector initsGATS schedule?
Please identify theservice sector anddescribe theexemption Algeria intends torequest.
Reply
Algeria iscurrently studying andevaluating thelegislation applicable totrade inservices.
Itwillbeabletogiveitsopinion onthequestion putoncethisevaluation iscomplete.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
1. Bilateral orplurilateral agreements relating toforeign trade ingoods andtrade inservices
(b) Trade andtariff conventions
According totheMemorandum, Algeria hastradeandtariffconventions withMorocco, Mali,
Senegal, Mauritania, Niger, Egypt andTunisia which areWTO members, andalsowithLibya, Syria,
Jordan andIraq, which arenot. These conventions havenotthusfarbeenthesubject ofconcrete
implementation.
Question 160
Please describe thenature ofthebenefits andobligations ofthese agreements. Is
most-favoured-nation (MFN) treatment provided toWTO members? Please describe anytrade
andtariff preferences granted byAlgeria totheimports ofeachcountry withwhich ithasatrade
andtariff convention.
Question 161
Please provide translated copies ofeachofthese conventions totheWTO Secretariat for
review bytheWorking Party.
Replies (160and161)
Algeria applies theGATT rulesdefactoandgrants MFN treatment toallcountries withwhich
ithastrade relations.
Theagreements described below donot,however, provide forthisclause tobeapplied tothird
countries.
They constitute anexception totheMFN clause; thisexception isnonetheless consistent with
theprovisions ofGATT 1947 andparticularly itsPartIV(Trade andDevelopment), Article 36
paragraph 1(f)concerning thespecial measures which canbetaken byless-developed contracting partiesWT/ACC/DZA/4
Page83
topromote their trade anddevelopment. Itisalsoconsistent withtheDecision oftheGATT
CONTRACTING PARTIES of28November 1979onthespecial differentiated treatment ofdeveloping
countries adopted following theTokyo Round (page 2,paragraph 1).
Thesmall amount oftrade thathasresulted from theimplementation ofthese different
trade-cooperation instruments isanillustration oftheirlackofimpact onAlgeria 'soverall trade.
(a) Algeria 'strade relations withMorocco aregoverned bytheTrade andTariff Convention
concluded on14March 1989 andamending theconvention of17March 1973, which provides for
thefreemovement between thetwocountries oftheirrespective localproducts withexemption from
customs duties andcharges having equivalent effect. Theproducts concerned aremanufactured products
withanadded value ofatleast40percentplusthose coming fromthetwocountries 'soilandsubsoil.
Trade inthese products issubject totheissuebythecompetent authorities ofthecertificate oforigin,
which must bestamped bytheCustoms Administration.
(b) TheTrade andTariff Agreement withMalisigned on11July1996 replaces theTrade and
Tariff Convention of4December 1981. ThisAgreement, which hasnotyetbeenratified, provides
forMFN treatment fortrade inlocalproducts, withtheexception oftheadvantages, concessions and
exemptions granted byeachparty inorder topromote border trade, orofthose resulting from a
multilateral agreement ofwhich oneofthecontracting parties isamember.
(c) TheTrade Agreement of7October 1981 withSenegal provides forproducts originating in
andcoming from thetwocountries tobeadmitted under theminimum tariff andfortheexemption
fromcustoms duties andcharges having equivalent effect ofproducts ofanadvertising nature, goods
intended forfairsandexhibitions andthepackaging ofimported objects which must bereturned at
theendofanagreed period. Itwassupplemented byaProtocol dated 16December 1985. This
agreementhasnotbeenappliedasthenatureoftheproductswhichshouldenjoytheexemptionconcerned
hasnotyetbeendecided on.
(d) TheTrade andTariff Convention withMauritania signed bythetwocountries on23April 1996
provides forthelifting ofnon-tariff barriers foralloriginating products andfortheprogressive abolition
ofcustoms duties fororiginating products onthebasis ofjointly agreed lists. Originating products
aredefined asthose containing aminimum original input levelof50percent.
(e) TheTrade andTariff Convention withNiger signed bythetwocountries on19February 1976
provides forcustoms-duty exemption onthebasisoflistsofmutually traded products. Ithasnotbeen
possible toapply thisconvention owing todifficulties mentioned byAlgeria 'spartner arising from
itscommitments within theeconomic andcustoms organizations ofWest Africa.
(f) TheTrade andTariff Convention withTunisia signed on9January 1981, supplemented by
anAdditional Protocol of17May1984, abolishes customs duties forproducts originating inandcoming
from thetwocountries. Thestatus oforiginating product exists where products areshown tohave
aleveloforiginal input of50percentormore.
(g) TheTrade andTariff Convention withLibya signed on1December 1987 abolishes customs
duties forproducts originating inandcoming fromthetwocountries when theysatisfy therequirement
ofaminimum original input levelof40percent.
(h) TheTrade Conventions withSyria, Egypt andIraqprovide forcustoms-duty exemption on
thebasis ofliststobeagreed jointly.WT/ACC/DZA/4
Page84
(i) Finally, aTrade andTariff Convention with Jordan wassigned in1997 providing for
customs-duty exemption fororiginating products ofthetwocountries, excluding alistofjointly agreed
products. Thecustoms exemption granted iscontingent ontheissue ofanimport document. This
convention hasnotyetcome intoforce asitsratification isstillinprogress.
TheFrenchtextsoftheagreementsandconventionsconcludedwiththeaforementionedcountries
willbefound inthe"Trade andTariff Conventions" Annex tothisdocument.
2. Economic integration, customs union andfree-trade areaagreements
Agreement withtheArab Maghreb Union
According totheMemorandum, theTrade andTariff Convention ratified byAlgeria on
21April 1992hadnotyetbeenimplemented because theprocess ofratification bymember States was
notcompleted.
Question 162
What isthecurrent status ofimplementation oftheTrade andTariff Convention?
Reply
ThisConvention hasnotyetcome intoforcebecause theratification process isnotyetcomplete.
Inaccordance withitsArticle 27,itsimplementation depends onratification byallthemember States
andonthedeposit bythelatter oftheratification instruments withtheGeneral Secretariat oftheArab
Maghreb Union.
Question 163
Please provide atranslated copyoftheratified Trade andTariff Convention totheWTO
Secretariat forreview bytheWorking Party. Please provide atranslated copy oftheschedule
ofproducts thatAlgeria hasexempted from non-tariff barriers.
Reply
TheFrenchlanguagetextofthisConventionwillbefoundinthe"TradeandTariffConventions"
Annex tothisdocument.
Thefollowing isthelistofproducts proposed forexemption from non-tariff barriers:
- Ironore,clay,kaolin andbentonite, baryta, uncut marble, crude gypsum, white cement,
copperore,cokeandsemi-coke,chlorine,mercury,ammonia,supertriplepolyphosphate
(STTP), ethylene, furfural, medicines, fertilizers, essential oils,agricultural pesticides,
polyvinyl chloride, untreated skins, corkandcorkarticles, paper paste, rawwool, raw
cotton, articles ofmarble, abrasives, glass pearls, pigiron, ironalloy, ironblanks,
bandironorsteel, ironsheets andplates, steeltubes andpipes excluding welded tubes,
pigiron/iron/steel/accessoriesandpiping(connectors,elbowjoints),metalframeworks,
steam boilers forcentral heating, radiators forcentral heating, aluminium packing,
rawleadexcluding leadwaste, agricultural, horticultural andforestry tools, motors,
hydraulic pumps, lifting machines andequipment, public-works equipment, machines
andequipment foragriculture, machine tools forstone working, machine tools forWT/ACC/DZA/4
Page85
working othermaterials, micro computers, electric motors, telephone switches, electric
insulators, vansandwaggons, disposable syringes andmedical furniture.
Question 164
Please describe fully therules oforigin forproducts covered bytheAMU Convention.
Reply
Under theAMU Trade andTariff Convention, therulesoforigin applicable totrade between
thecountries oftheUnion arecovered byaspecial regime based onthemarket-access privileges enjoyed
bytrade incertain products.
Overall therefore, agricultural products andproducts ofthesoilandsub-soil mined orproduced
ineachoroneofthemember countries areregarded as100percentoriginating products ofthatcountry
(local products).
Processed industrial products containing imported materials musthaveacquired anadded value
ofatleast40percentcalculated onthevalue ofthefinished product ex-works inorder toberegarded
assuch.
FortradebetweentheAMUmembercountriestheaforementionedproductsmustbeaccompanied
byacertificate oforigin prepared according toaunified model.
Itshould alsobenoted thattheprinciple ofcumulation ofrulesofMaghreb origin isallowed
bythisConvention.
Question 165
GATT Article XXIV requires thatduties andother restrictive regulations ofcommerce
areeliminated onsubstantially allthetrade between theconstituent territories inproducts
originating insuchterritories.
Please identify allproducts, including HSnumbers, thatarenotexempt from customs
duties andcharges pursuant totheTrade andTariff Convention. Please identify allproducts
thatarenotexempt from non-tariff barriers under theTrade andTariff Convention.
Reply
TheTrade andTariff Convention provides forallimported products originating intheAMU
member countries andtraded directly between them tobeexempted from customs duties andimport
taxes andcharges having equivalent effect.
Thelistofproducts notexempted from customs duties, taxes andcharges having equivalent
effect andofproducts notexempted fromnon-tariff measures pursuant tothisConvention hasnotyet
beendrawn upbytheCommission monitoring theimplementation oftheConvention.
Question 166
Please describe thecountervailing charge of17.5percentonproducts incorporating inputs
offoreign origin. Isthischarge levied onthetotal value oftheproduct imported orsolely on
thevalue oftheforeign inputs? Isthecountervailing charge levied inaddition tocustoms tariffs?
Onwhat basis wasthelevelofthecharge of17.5percentonproducts withthird-country content
chosen?WT/ACC/DZA/4
Page86
Reply
Theunified countervailing charge of17.5percentisapplied toproducts ofMaghreb origin
andlastexport which areintended foroneofthemarkets oftheAMU countries andwhose production
contains components (rawmaterials orsemi-finished materials) imported from outside theUnion in
accordance witheconomic customs regimes.
Itislevied inthelastimporting country onthebasis ofthevalue ofthegoods plustransport
andinsurance costs (c.i.f.). Itisnotlevied inaddition tocustoms duties andmaybeapplied only
where thesamelineofproduction exists intheimporting country (production similarity). The17.5per
centratewasfixed byreference totheaverage ofthefourmember countries 'average customs tariffs
when theagreements were concluded.
Question 167
TheConvention onTrade inAgricultural Products alsohadnotcome intoforce, despite
ratification byallthemember countries, because notalltheProtocols ofImplementation had
been finalized.
What isthecurrent status ofimplementation oftheConvention onTrade andAgricultural
Products? HasAlgeria finalized itsProtocol ofImplementation? Ifyes,please provide atranslated
copy oftheConvention andtheProtocol ofImplementation totheWTO Secretariat forreview
bytheWorking Party.
Reply
ThisConvention wassigned inAlgiers on23July1990byallAMU countries buthasnotbeen
applied.
Algeria hasfinalized theprocedure forratification oftheimplementing protocol.
ThetextofthisConvention willbefound inthe"Trade andTariff Conventions" Annex to
thisdocument.
Question 168
Please identify allproducts, including HSnumbers, thatareexempted from non-tariff
barriers.
Reply
Thelistofthese products, withtheHSnumbers, isasfollows:
(i) Pulses (0712and0713);
(ii) vegetables (allChapter 7);
(iii) fruit(from 0801to0813);
(iv) seed(from ex1001toex1008;from ex1201toex1207;andex1209);
(v) plants (0601;ex0602andexchapter 7);
(vi) redmeat(from 0201to0205;ex020890andex0210);
(vii) fish(from 0301to0307):
(viii) preserves (tomatoes andfish)(1604;1605;ex2001;2002;ex2004;ex2005).WT/ACC/DZA/4
Page87
Question 169
Please provide atranslated copy ofthedraft Maghreb Free-Trade Area Agreement to
theWTO Secretariat forreview bytheWorking Party.
Reply
TheMaghreb Free Trade Area (ZLE) isaproposed economic areawithin which the
aforementioned Conventions andAgreements willeventually beabolished buthasnotyetbeenthe
subject ofaspecific agreement. Instead itforms partofaDeclaration entitled "Document concerning
aMaghreb collective development strategy forthecreation ofeconomic union" adopted bytheAMU
summit inMarch 1991 inLibya.
AcopyoftheDeclaration willbefound inthe"Trade andTariff Conventions" Annex tothis
document.
Question 170
Please provide atranslated copy oftheCo-operation Agreement with theEuropean
Economic Community totheWTO Secretariat forreview bytheWorking Party. Does Algeria
provide preferential access foranyimports from theEuropean Economic Community pursuant
tothisAgreement? Ifso,please describe theproducts andthepreferences indetail.
Reply
TheFrench-language textoftheCo-operation Agreement with theEuropean Economic
Community willbefound inthe"Trade andTariff Conventions" Annex tothisdocument.
AlgeriadoesnotprovidepreferentialaccesstoimportsfromtheEuropeanEconomicCommunity
pursuant tothistreaty.WT/ACC/DZA/4
Page88
ANNEX
I. ENERGY
Law No.86-14 of19August 1986 onhydrocarbon prospecting, exploration, exploitation and
transportation bypipeline.
Decree No.87-157 of21July1987 ontheclassification ofhydrocarbon exploration andproduction
zones.
Decree No.87-158 of21July1987 onprocedures foridentifying andmonitoring foreign companies
wishing tobepartners intheprospecting, exploration andexploitation ofliquid hydrocarbons.
Decree No.87-159 of21July1987onparticipation byforeign companies intheprospecting, exploration
andexploitation ofliquid hydrocarbons.
Decree No.88-34 of16February 1988ontheconditions forgranting, waiving andwithdrawing mining
titles forhydrocarbon prospecting, exploration andexploitation.
Decree No.88-35 of16February 1988 defining thepiping andsecondary structures relating to
hydrocarbon production andtransport andtheprocedures fortheirrealization.
Executive Decree No.94-93 of30January 1994 determining therules fortheconservation of
hydrocarbon deposits andprotection ofassociated aquifers.
Executive Decree No.94-435 of12December 1994 amending andsupplementing Decree No.88-34
of21July1988ontheconditions forgranting, waiving andwithdrawing mining titlesforhydrocarbon
prospecting, exploration andexploitation.
Executive Decree No.94-436 of12December 1994amending andsupplementing Decree No.87-158
of21July1987, amended andsupplemented, concerning theprocedures foridentifying andmonitoring
foreign companies wishing tobepartners intheprospecting, exploration andexploitation ofliquid
hydrocarbons.
Executive Decree No.94-467 of25December 1994fixing themethods andprocedures fordetermining
thebasic prices ofhydrocarbons.
Decree No.95-417 of16December 1995 onthecriteria forreducing thelevel offeeandtaxon
performance inregard toprospecting, exploration, exploitation andpipeline transportation of
hydrocarbons.
Decree No.96-118 of6April 1996amending andsupplementing Decree No.87-159 of21July1987
ontheoperation offoreign companies.
Interministerial Order of6October 1992setting theratesforthepipeline transportation ofhydrocarbons.
Executive Decree No.97-407 of3November 1997fixing therefinery entrance selling prices forcrude
oilandtheex-refinery prices andgross distribution margin forrefined products intended forthenational
market.WT/ACC/DZA/4
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II. QUALITY
LawNo.89-23 of19December 1989 onStandardization.
Executive Decree No.90-39 of30January 1990 onquality control andthesuppression offraud.
Executive Decree No.90-355 of10November 1990 onthelabelling andpresentation ofnon-food
domestic products.
Executive Decree No.92-65 of12February 1992 onthemonitoring oftheconformity oflocally
manufactured orimported products.
Executive Decree No.93-47 of6February 1993 amending andsupplementing Executive Decree
No.92-65 of12February 1993onmonitoring theconformity oflocally produced orimported products.
Executive Decree No.96-354 of19October 1996 onprocedures formonitoring theconformity and
quality ofimported products.
Interministerial Order of14July1990 defining theprocedures fortaking samples andmodel forms
formonitoring quality andsuppression offraud.
Order of3November 1990 onthedrawing upofstandards.
Order of10May 1994 ontheprocedures forimplementing Executive Decree No.90-266 of
15September 1990 onwarranties forproducts andservices.
Interministerial Order of3March 1997 determining thelistofimported products subject toquality
andconformity control.
III. INVESTMENT
Legislative Decree No.93-12 of5October 1993 oninvestment promotion.
Executive Decree No.94-319 of17October 1994 ontheduties, organization andfunctioning ofthe
APSI.
Executive Decree No.94-320 of17October 1994 onthefreezones.
Executive Decree No.94-321 of17October 1994 determining theconditions fordesignating and
demarcating thespecific zones.
Executive Decree No.94-322 of17October 1994onthegrant ofStatelandsituated inspecific zones
inthecontext ofinvestment promotion.
Executive Decree No.94-323 of17October 1994 fixing theminimum threshold forownfunds in
connection withinvestments.
Extracts from legislative decrees:
- No.93-18 of29December 1993 onthe1994 Finance Law(Articles 117and123,
paragraph 2)WT/ACC/DZA/4
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- No.94-08 of26May1994 onthe1994 Complementary Finance Law(Article 25)
Regulation No.94-17 of22October 1994 defining theexchange regulations forthefreezones.
IV. AGRICULTURE
LawNo.83-03 of3February 1983 onprotection oftheenvironment.
Executive Decree No.93-285 of23November 1993establishing thelistofprotected uncultivated plant
species.
Executive Decree No.95-205 of2December 1995 onthemonitoring ofplant health products and
agricultural use.
Order of18January 1992ontheplanthealth conditions fortheimportation ofplants andpartsofliving
plants offruitspecies andspecific plant health requirements.
NoteNo.23ontheidentification andapproval ofpremises forthepreparation, processing, refrigeration,
freezing, packing andwarehousing offishery products.
Listofagricultural products subject toborder measures inaccordance withcurrent plant health
regulations.
V. IMPORTS AND EXPORTS
Decisions onfixing thereference prices fortheexportation ofdates, untreated skins andwool.
Noteonthecriteria andconditions foroperators toobtain Stateaidforthepromotion ofnon-hydrocarbon
exports through participation infairsandexhibitions abroad.
Interministerial Order of9April 1994 determining thelistofgoods temporarily barred from export.
Interministerial Order of26February 1992suspending theexportation ofraworsemi-finished coral.
VI. COMMERCIAL REGISTER, MARKS, DESIGNS, MODELS AND APPELLATIONS OF
ORIGIN
LawNo.90-22 of18August 1990supplemented byLawNo.91-14 of14September 1991andOrder
No.96-07 of10January 1996 onthecommercial register.
Commercial Code (extracts)
LawNo.86-246of18August1990amendedandsupplementedbyLawNo.91-14of14September1991
andOrder No.96-07 of10January 1996 ontheCommercial Register.
Decree No.86-246 of30September 1986onthetransfer totheNational Commercial Register Centre
(CNRC) ofthestructures, facilities, goods, activities andstaffheldormanaged bytheAlgerian
Standardization andIndustrial Property Institute (INAPI) inconnection withmarks, designs, models
andappellations oforigin.WT/ACC/DZA/4
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Executive Decree No.90-355 of10November 1990 putting anendtosupervision bytheMinister
Responsible forTrade Organization oftheNational Commercial Register Centre (CNRC) andplacing
thelatter under theMinistry ofJustice.
Executive Decree No.92-68 of18February 1992 onthestatute andorganization oftheNational
Commercial Register Centre.
Executive Decree No.92-69 of18February 1992 onthespecial status ofoperatives oftheNational
Commercial Register Centre.
Executive Decree No.92-70 of18February 1992 ontheOfficial Legal Notices Bulletin (BOAL).
Executive Decree No.97-38 of18January 1997onprocedures forgranting atrader 'scardtotheforeign
representatives ofcommercial companies.
Executive Decree No.97-39 of18January 1997ontheNomenclature oftheEconomic Activities subject
toinclusion intheCommercial Register.
Executive Decree No.97-40 of18January 1997onthecriteria fordetermining andcontrolling regulated
activities andoccupations subject toinclusion intheCommercial Register.
Executive Decree No.97-41 of18January 1997 ontheconditions forinclusion intheCommercial
Register.
Executive Decree No.97-42 of18January 1997 onthegeneral re-enrolment oftraders.
Ministerial Order of3March 1997 determining theconditions andprocedures fororganizing and
conducting theinventory oftraders andcraftsmen.
Interministerial Order of4March 1997fixing theconditions andprocedures foroperations connected
withre-enrolment intheCommercial Register.
Order No.76-65 of16January 1976 onappellations oforigin.
Order No.66-86 of28April 1966 ondesigns andmodels.
Order No.66-57 of19March 1966 ontrademarks.
Extract from the1997 Finance Law:
- taxes applicable totrademarks orservice marks;
- taxes applicable toappellations oforigin;
- taxes applicable todesigns andmodels.
VII. REPLY TOANNEX 3TOWT/ACC/1 ON THE IMPLEMENTATION AND
ADMINISTRATION OFTHE CUSTOMS VALUATION AGREEMENTWT/ACC/DZA/4
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VIII. SERVICES
Bank ofAlgeria regulations:
- No.91-12 of14August 1991 onthedomiciliation ofimports;
- No.91-13 of14August 1991 onthedomiciliation andfinancial settlement of
non-hydrocarbon exports;
- No.92-04 of22March 1992 onexchange control;
- No.95-07 of23December 1995 amending andreplacing Regulation No.92-04 of
22March 1992 onexchange control.
Order No.96-06 of10January 1996 onexport credit insurance
Executive Decree No.96-235 of2July1996 defining theconditions andprocedures formanaging
theriskscovered byexport credit insurance.
IX. PRICES AND COUNTERVAILING DUTIES
Executive Decree No.92-122 of23March 1992determining theprocedures forapplying Article 8ter
ofLawNo.79-07 of21July1979 ontheCustoms Code
Executive Decree No.92-123 of23March 1992determining theprocedures forapplying Article 8ter
ofLawNo.79-07 ofJuly1979 ontheCustoms Code
Interministerial Order of7July1992supplementing thelistofproducts subject tocountervailing duties
X. TRADE AND TARIFF CONVENTIONS
Cooperation Agreement between theEuropean Economic Community andtheDemocratic People 's
Republic ofAlgeria
Agreement between themember States oftheEuropean CoalandSteel Community andthePeople 's
Democratic Republic ofAlgeria
Trade andTariff Convention between theStates oftheArab Maghreb Union
Trade andTariff Convention between theGovernment ofthePeople 'sDemocratic Republic ofAlgeria
andtheGovernment oftheRepublic ofSenegal
Trade andTariff Agreement between theGovernment ofthePeople 'sDemocratic Republic ofAlgeria
andtheGovernment oftheRepublic ofMali
Trade andTariff Convention onaLong-Term Agreement between thePeople 'sDemocratic Republic
ofAlgeria andtheRepublic ofNiger
Trade andTariff Convention between theGovernment ofthePeople 'sDemocratic Republic ofAlgeria
andtheGovernment oftheTunisian RepublicWT/ACC/DZA/4
Page93
TheAgricultural Convention between theAMU countries andtheTrade andTariff Conventions
concluded withMorocco, Mauritania, Egypt, Syria, Jordan andIraqareinArabic andwillbeforwarded
totheWTO Secretariat aftertranslation.
XI. LEGISLATIVE TEXTS AND EXTRACTS
LawNo.88-01 of12January 1988 onaguidance lawconcerning public enterprises
Article 687oftheCivil Code
Articles 7,104,281and282oftheCode ofCivil Procedure
Article 78oftheCommercial Code
Article 429oftheCriminal Code
XII. STATISTICS ONGOVERNMENT PROCUREMENT
XIII. INFORMATIONONDOMESTICSUPPORTANDEXPORTSUBSIDIESINAGRICULTURE
(WT/ACC/4)
XIV. INFORMATION ONTRADE INSERVICES (WT/ACC/5)
XV. CUSTOMS CODE