RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/DZA/13
15 December 1998
(98-5044)
Working Party on the Accession of Algeria Original:  French
ACCESSION OF ALGERIA
Additional Questions and Replies to the Memorandum
on the Foreign Trade Regime
(Document WT/ACC/DZA/1)
The Permanent Mission of the Republic of Algeria has communicated to the Secretariat the
replies to the additional questions put by Members.  The questions and replies are reproduced below.
The Annexes can be consulted at the Secretariat (Accessions Division, Office 1126).
_______________
TABLE OF CONTENTS
Page Questions
I. INTRODUCTION 11
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE 1
2. Economic policies 1
(a) Main directions of existing economic policies and
their tactical and strategic goals 1(iii) The Standby Programme (April 1994-March 1995) 1 2-3
(vi) Programme on privatization of State-owned firms 3 4-12
(c) Foreign exchange regime and system of payments 10 13-15
(d) Foreign and domestic investment policies 11 16
(e) Competition policies 12 17-20
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE 15
4. Any legislative programmes 15 21
IV. POLICIES AFFECTING TRADE IN GOODS 16
1. Import regulations 16
(b) Characteristics of the national customs tariff 16 22-24
(c) Tariff quotas, tariff exemptions 17 25-26
(d) Other duties and charges, including charges for services rendered 18 27-30(e) Quantitative import restrictions, including prohibitions, quotas
and licensing 19 31-38
(f) Import licensing procedures 22 39-40
(h) Customs valuation 23 41-42WT/ACC/DZA/13
Page ii
Page Questions
(k) Application of internal taxes on imports 23 43-47
(l) Rules of origin 26 48
(m) Anti-dumping regime 26 49-55(n) Countervailing duty regime 26
(o) Safeguard regime 26
2. Export regulation 28
(c) Quantitative export restrictions, including prohibitions,
quotas and licensing systems 28 56-60
(e) Other measures 30 61
(f) Export financing, subsidy and promotion policies 31 62-64(g) Export performance requirements 33 65-69
(h) Import duty drawback schemes 35 70-74
3. Internal policies affecting foreign trade in goods 36
(a) Industrial policy 36 75-77
(b) Technical regulations and standards, including
import measures at the border 38 78-84
(c) Sanitary and phytosanitary measures 40 85-86
4. Policies affecting foreign trade in agricultural products 42 87-89
V. TRADE-RELATED  INTELLECTUAL PROPERTY REGIME 43
1. General 43 90-91
(c) Membership of international conventions and regional or
bilateral agreements on intellectual property 53 92
2. Substantive standards of protection, including procedures
for the acquisition, maintenance and exercise of intellectualproperty rights 54 93-96
(b) Trademarks, including service marks 55 97
(c) Geographical indications, including appellations of origin 56 98
(d) Patents 56 99
(g) Layout designs of integrated circuits 56 100-102
(h) Requirements concerning undisclosed information, including
trade secrets and test data 56
4. Enforcement 57 103
VI. TRADE-RELATED SERVICES REGIME 58
1. General 58
(i) Insurance services 58 104-106(ii) Health services 60 107
(iii) Telecommunications services 61 108-110
(iv) Tourism and handicrafts 61 111-112
(v) Legal services 62 113
(vi) Professional services 63 114-115
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES 64
1. Bilateral or plurilateral agreements relating to foreign trade
in goods and trade in services 64
(b) Trade conventions with third countries 64 116-121WT/ACC/DZA/13
Page iii
ANNEXES
1. Annex 3 to document WT/ACC/1:  Information on import licensing procedures
2. "Privatization" Annex
- Order No. 95-22 of 26 August 1995 on the privatization of State-owned firms
- Order No. 97-12 of 19 March 1997 amending and supplementing Order No. 95-22 of
26 August 1995 on the privatization of State-owned firms
- Executive Decree No. 96-104 of 11 March 1996 setting out the procedures for the
organization and functioning of the Privatization Council
- Executive Decree No.  96-105 of 11 March 1996 setting out the procedures for the
organization and functioning of the Commission supervising privatization operations
- Executive Decree No. 96-133 of 13 April 1996 setting out the terms and conditions
for golden shares
- Executive Decree No. 96-134 of 13 April 1996 on the terms and conditions for
purchase by the public of shares and other securities of State-owned firms to be
privatized
- Executive Decree No. 97-329 of 10 September 1997 defining the terms for the
granting of special privileges and deferred payment to buyers of firms to be privatized
- Executive Decree No. 98-194 of 7 June 1998 identifying the institution responsible
for privatization
- Executive Decree No. 98-195 of 7 June 1998 listing first lot of firms to be privatized
3. "Standardization" Annex
- List of approved Algerian standards
- Executive Decree No. 98-69 of 21 February 1998 on the establishment and
constitution of the Institut Algérien de la Normalisation (IANOR) (Algerian
Standardization Institute)
4. "Customs Code" Annex
- Law No. 98-10 of 22 August 1998 amendi ng and supplementing Law No. 79-07 of
21 July 1979 on the Customs Code
5. Extract from the Turnover Tax Code regarding exemption from VAT
6. Executive Decree No. 98-265 of 29 August 1998 fixing the price for the domestic sale of
natural gas
7. Executive Decree No. 95-417 of 16 December 1995 on the criteria for reducing the level of
fees and taxes on performance in regard to prospecting, exploration, exploitation and pipeline
transport of hydrocarbons
8. Executive Decree No. 98-107 of 4 April 1998 fixi ng the refinery entrance selling price and
the gross distribution margin for refined products intended for the national market.
9. Executive Decree No. 91-141 of 11 May 1991 defining the criteria for the establishment and
monitoring of approved vocational training establishments
10. French translation of the "Declaration on the Main Outline of a Maghreb Development
Strategy".
_______________WT/ACC/DZA/13
Page 1
I. INTRODUCTION
Question 1
Algeria has declared that it is revising some of its laws, regulations and practices in
order to bring them into line with WTO obligations (for example, questions 18 and 19, provision
on reciprocity in the draft Foreign Trade Bill and the use of licensing to restrict imports).
Please provide an update on developments that have already taken place.
Reply
Algeria considers that, acceding to the WTO, it will de jure  undertake to observe the WTO's
rules on national treatment and most-favoured-nation treatment in its foreign trade policy.  It does not
therefore intend to introduce into its legislation provisions allowing unilateral measures of reciprocitybecause these would be inconsistent with the multil ateral disciplines governing the functioning of the
WTO.  It should also be noted that there are no such provisions in the current trade legislation.
With regard to restrictive measures such as licences, quotas or other trade restrictions, these
are being discussed by the Working Party on the Accession of Algeria to the WTO.  Ultimately, theoutcome of these discussions will be embodied in domestic legislation.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic policies
(a) Main directions of existing economic policies and their tactical and strategic goals
(iii) The Standby Programme (April 1994-March 1995)
Question 2
According to the Memorandum on the Foreign Trade Regime, Algeria decided to extend
the IMF structural adjustment programme for a further three years (until 1998):
(a) Please provide a status report on the current structural adjustment programme;
(b) does Algeria plan to extend the programme?
Reply
(a) Results of the Agreements with the IMF
For four successive years, Algeria undertook an economic stabilization programme, with IMF
support, based on a stand-by arrangement (April 1994-March 1995) and followed by an extendedfinancing facility agreement (April 1995-Marc h 1998), with the following major objectives:
- Sustained economic growth that would boost employment;- continued financial stabilization, inter alia  by lowering the rate of inflation to the
level of Algeria's major partners and by achieving a budget surplus;
- medium-term viability of the balance-of-payments (reduction of the current deficit,
easing the debt servicing burden);
- support to improve the living standards of the most disadvantaged sectors of society.WT/ACC/DZA/13
Page 2
These macroeconomic adjustment efforts have led to a substantial reduction in the economy's
imbalances.  After several years of recession, in 1995 a process of growth was initiated.  At the same
time, inflation decreased significantly, inter alia  due to far-reaching budget adjustment and stringent
implementation of monetary policy together with a substantial devaluation of the dinar.
The following details show the strenuous efforts undertaken in this context:
- After the recession was halted in 1994, the fall in the GDP in real terms having been
limited to -1 per cent, the economy once again experienced growth and real GDP
showed a sustained positive rise at an annual rate of 4 per cent for 1995 and 1996 and
1.2 per cent for 1997;
- the adjustment in the US$/dinar exchange rate, which depreciated by 116 per cent
between the end of 1993 and the end of 1995, together with price liberalization,
resulted in an inflationist trend in 1994 and 1995 (29 per cent and 29.8 per cent
respectively), but this fell to 18.7 per cent in 1996 and below 5 per cent in 1997;
- the global balance of Treasury transactions expressed as a percentage of GDP
improved noticeably in 1994.  In 1993, the global deficit was -8.7 per cent, but it was
reduced to -4.4 per cent in 1994 and -1.4 per cent in 1995 and culminated in a surplus
in 1996 and 1997 (3 per cent and 2.3 per cent respectively);
- the build-up of foreign exchange reserves was positive during the programme:  in
1997, they amounted to the US$8 billion, equivalent to nine months of imports,
compared with US$2.5 billion in 1994.
It should be noted that, in January 1998, the Executive Board of the IMF approved the fifth and last
revision of the programme.
(b) The authorities have decided not to renew the agreement.  Nevertheless, like other members
of the IMF, Algeria will maintain its traditional cooperation with the Fund in conformity with the
latter's Articles of Agreement.
The Algerian authorities remain resolutely determined to pursue the reforms so as to
consolidate these macroeconomic results.  Restrictive monetary and budgetary policies were therefore
applied in 1998 and will be continued in 1999.
Question 3
Please outline the trade aspects of these programmes that have implications for the
accession negotiations.
Reply
Some aspects of the foreign trade regime have been covered under the structural adjustment
programme agreed and implemented with IMF support, including, for example, aspects related to the
liberalization of imports, subsidy programmes, tariff policies, etc.
Although it is clear to Algeria that the maintenance of a liberal and open trading system is an
option it intends to pursue and develop at the level of principles, it does not consider that there is any
direct link between the negotiation of a structural  adjustment programme with the IMF for a fixed
period and negotiations on accession to the WTO, which will imply heavy commitments for Algeria
over a very long term with the 132 Members of the Organization.WT/ACC/DZA/13
Page 3
(vi) Programme on privatization of State-owned firms
Question 4
What share of Algeria's GDP comes from the local and national State-owned firms?
Please provide an update of the status of Algeria's privatization programme.  Please provide
further information on the scope and progress of the privatization programme and on residual
government involvement in the manageme nt of large privatized enterprises.
Reply
(a) The share of national and local State-owned firms is calculated in comparison with the total
value added of the various sectors, which is slightly different from GDP (duties and taxes are not
included).
In 1995 and 1996, national and local State-owned firms accounted for the following shares (as
a percentage of total value added).
1995 1996
National State-owned 56.2 51.1
Local State-owned 3.9 2.1
Total State-owned 60.1 53.2
Private 39.9 46.8
Total 100.0 100.0
(b) For an update of the status of the Algerian privatization programme, please see the reply
given to the same question (reply to question 9 in this document).
(c) Concerning residual government involvement in the management of large privatized
companies, Articles 6 and 7 of Order No. 95-22 of 26 August 1995 allow the State to remain involved
if the national interest so requires by means of a go lden share.  The rights under the golden share are
the following:
- The right to appoint one or two government representatives to the firm's board of
directors, although they are not given voting powers;
- the right to oppose certain decisions, for example, any change in the company's
object, the cessation of its activities or its dissolution.
The terms and conditions governing golden sh ares are set out in Executive Decree No. 96-133
of 13 April 1996;  the main provisions of this Decree can be summarized as follows:
- A golden share is a share in the capital of the company set up as a result of
privatization and it gives the State the right to intervene for reasons of national
interest;
- the institution responsible for privatization (the National Council for State
Participation) decides whether a golden share should be assigned;
- the existence of a golden share is specifically recorded in the articles of agreement of
the newly-privatized company.  The terms of the sale must include provisions onassigning the golden share and define the rights which it confers;WT/ACC/DZA/13
Page 4
- a golden share allows the State to appoint one or two representatives, depending on
the size of the enterprise or the amount of its capital, and these participate without
voting powers in the board of directors or governing body of the firm;
- the time-limit of a golden share is five years;  it may at any time be changed into
ordinary shares before the expiry of this time-limit following a decision by the
institution responsible for privatization.
Question 5
According to the reply to questions 6 and 7 of WT/ACC/DZA/2, the Government of
Algeria intends to maintain a governmental pres ence only in mining activities, public service
activities and activities under the heading of natural monopolies.  According to
WT/ACC/SPEC/DZA/1, public enterprises have a State monopoly of hydrocarbon prospecting,
exploration and exploitation.  Does the Government of Algeria intend to maintain a State
monopoly of the prospecting, exploration and exploitation of petroleum and natural gas?  Please
describe Algeria's privatization activities in the hydrocarbon sector.
Reply
The Government intends to maintain its monopoly of the prospecting, exploration,
exploitation and transportation by pipeline of petroleum and natural gas.
Pursuant to Article 3 of Law No. 86-14 of 19 August 1986, as amended and supplemented,
this monopoly is given to domestic firms.
Foreign companies may prospect, explore and exploit hydrocarbons under special provisions
governing the contractual relations between domestic firms and foreign legal persons.
Article 20 of Law No. 86-14 of 19 August 1986 on hydrocarbons provides that foreign
companies wishing to operate in the petroleum sect or must first conclude an association agreement
with the Algerian petroleum enterprise.  The agreement defines the conditions governing the
association, including the following:
- The investment programme;
- the production-sharing arrangements;- reimbursement of costs paid by the foreign company;- the period of the contract.The form of contracts is also defined in Article 22 of Law No. 86-14 of 19 August 1986 on
hydrocarbons.
Downstream activities in the petroleum sector (refining, petrochemicals and distribution of
petroleum products) are governed by ordinary law.  They must comply with the Commercial Code.
The development of these sectors through partnerships with private investors is strongly
encouraged by the Algerian Government notably by the provisions of Legislative Decree No. 93-12 of
5 October 1993 on the promotion of investment.
Algerian companies operating in these sectors must comply with the Commercial Code and
are liable to bankruptcy proceedings and judicial settlement.WT/ACC/DZA/13
Page 5
Question 6
Please identify the national enterprises that have special or exclusive rights or privileges
(e.g. the ability to enter into joint ventures with  foreign participation) in the hydrocarbon and
mining sectors.  For each national enterprise, please describe the special rights and privileges indetail.
Reply
Natural resources in the soil and subsoil belong to the Algerian State.  They come under the
legal regime of State-owned resources.  According to the law, the exercise of activities for the
exploration and exploitation of these resources (hydrocarbons and mineral substances) is a Statemonopoly.  State-owned firms exercise this monopoly on behalf of the State.
The firms are the following:
In the hydrocarbons sector:
The Société National pour la Recherche, la Production, la Transformation et la
Commercialisation des Hydrocarbures (SONATRACH), a joint-stock company whose capital is held
exclusively by the Treasury.
The State has given this company a monopoly of prospection, exploration, exploitation and
transportation by pipeline of hydrocarbons (Article 3 of Law No. 86 of 19 August 1986).
For the purpose of undertaking these activities, it has been given mining rights (Article 9 of
the aforementioned Law).
Foreign legal persons seeking to carry out hydrocarbon prospection, exploration and
exploitation must have an association agreement with SONATRACH.  The association takes the form
of joint venture or production-sharing agreements.
Mining sector:
Mineral substances are subject to the same legal regime as hydrocarbons.
A larger number of enterprises operate in this sector, but on a smaller scale than
SONATRACH.  Although the possibility of associating foreign legal persons is recognized by Law
No. 84-06 of 7 January 1984, as amended and supplemented, no foreign company is yet operating inAlgeria.
Question 7
Please identify all firms and activities coming under the heading of natural monopolies.
Reply
Article 5 of Law No. 95-06 of 25 January 1995 on competition defines a natural monopoly as
follows:  "A natural monopoly means market situations or activities characterized by the existence of
a single economic operator exploiting the market or sector of activity".
Algeria still has natural monopolies;  remnants of the former organizational and management
structure of the national economy based on non-competitive mechanisms;  they are graduallyWT/ACC/DZA/13
Page 6
disappearing with the development of the entrepreneurial spirit fostered by a liberal economic regime
based on market principles, which is the basic approach of the Government's economic policy.
It is essential to note that these are de facto and not de jure  situations, the concept of a natural
monopoly being the opposite of a monopoly specifically conferred under a law (as is the case, forexample, in the hydrocarbons sector).
There is thus no list of enterprises currently in this situation.
Question 8
With regard to the reply to question 11 of WT/ACC/DZA/2:
(a) What is the present status of Algeria's balance-of-payments?(b) Has Algeria had to resort to taking any safeguard measures in order to protect
its balance-of-payments?
(c) Please describe any such measures that have been taken since July 1997.
Reply
(a) Status of the balance of payments
At the end of 1997, Algeria's balance of payments showed a net positive trend with the
following features:
- A trade balance of around US$3.8 billion, corresponding to a rate of import coverage
of almost 140 per cent;
- a current balance of US$2.6 billion, or 5.5 per cent of GDP;- foreign exchange reserves exceeding US$8 billion, corresponding to over nine
months of imports.
It should be noted that this performance was made possible through the rescheduling of the
external debt in 1994 and 1995, leading to a significan t reduction in the ratio of debt servicing, which
fell from 86 per cent in 1993 to 30 per cent in 1997.
At the end of June 1998, despite a marked drop in the petroleum prices, Algeria's external
balances were in a satisfactory position.  For the first half of 1998, the trade balance showed a positive
figure of US$800 million;  foreign exchange reserves were at US$8.3 billion, equivalent to
9.6 months of imports.
(b) Since 1994, external balances have improved considerably and Algeria has not had to resort
to any safeguard measures to protect its balance of payments.
(c) See the reply to (b) above.
Question 9
Please provide updated information on the privatization process.WT/ACC/DZA/13
Page 7
Reply
The privatization process is well under way, as can be seen from the following:
1. The legal framework governing privatization is being finalized and is gradually taking shape.
1.1 The main text, Order No. 95-22 of 26 August 1995, which defines and regulates privatization
operations, has been amended and supplemented by Order No. 97-12 of 19 March 1997.
The latter text introduces changes designed to remove certain obstacles noted in the course of
implementation and due inter alia  to the cumbersome procedures, the terms of payment, the
involvement of employees in the privatization of enterprises, and profit sharing with buyers.
1.2 In addition, the following texts implementing Order No. 95-22 of 26 August 1995, as
amended and supplemented, have been adopted:
- Executive Decree No. 96-104 of 11 March 1996 setting out the procedures for the
organization and functioning of the Privatization Council;
- Executive Decree No. 96-105 of 11 March 1996 setting out the procedures for the
organization and functioning of the Commission supervising privatization operations;
- Executive Decree No. 96-133 of 13 April 1996 defining the terms and conditions for
golden shares;
- Executive Decree No. 96-134 of 13 April 1996 on the terms and conditions for
purchase by the public of shares and other securities of State-owned firms to beprivatized;
- Executive Decree No. 97-329 of 10 September 1997 defining the terms for the
granting of special privileges and deferred payment to buyers of firms to be
privatized;
- Executive Decree No. 98-194 of 7 June 1994 identifying the institution responsible
for privatization;
- Executive Decree No. 98-195 listing the first lot of State-owned firms to be
privatized.
All these texts can be found in the "Privatization" Annex to this document and may be consulted by
Members of the WTO.
2. The institutions responsible for privatization have been set up:
2.1 The institutional framework for privatization is based on three bodies;
- The authority responsible for privatization:  according to Executive Decree
No. 98-194 of 7 June 1998, the responsibilities of this institution have been entrusted
to the Conseil National des Participations  de l'Etat (CNPE) (National Council for
State Participation), established by Order No. 95-25 of 25 September 1995 on the
management of the State's market capital;  the Council is chaired by the Head of the
Government;WT/ACC/DZA/13
Page 8
- the Privatization Council:  this comprises seven to nine members, including a
Chairman, selected because of their particular competence in privatization operations.
The Council is responsible for carrying out the privatization programme;
- the Monitoring Commission for Privatization Operations:  this comprises five
members and is chaired by a magistrate proposed by the Ministry of Justice;  its role
is to ensure respect for transparency, good faith and equity in the course of
privatization operations.
2.2 The legislative and regulatory provisions, contained in Order No. 95-22 of 26 August 1995, as
amended and supplemented, and the implementing texts, apply to all State-owned firms carrying out
one of the activities listed in Article 2 of the Order.
Pursuant to Order No. 95-25 of 25 September 1995 on the management of the State's market
capital, a resolution of the National Council for State Participation gave the State's holdings the partial
privatization rights (transfer of shares, opening up of capital) granted to State-owned companies under
the rules of commercial law.
All the legislative and regulatory texts mentioned above are available at the WTO Secretariat.
2.3 In addition, other legislative and regulatory provisions and special procedures supplement the
above provisions in respect of the following:
- The arrangements for the dissolution or liquidation of national or local State-owned
firms, the privatization of local activities, transfer of the shares of local State-owned
firms dissolved to their employees.
3. The third important element in considering th e progress of the privatization policy is the
creation of the Algiers Stock Exchange.  This institution marks an important step in the development
of the financial environment necessary for privatization.
4. Lastly, the steps taken to implement privatization show how it is progressing:4.1 The privatization of State-owned companies covered by Order No. 95-22 of 26 August 1995,
as amended and supplemented, is being put into effect:  an initial list of 89 national enterprises to be
privatized has been published in the Journal Offi ciel (Executive Decree No. 98-195 of 7 June 1998
listing the first lot of State-owned firms to be privatized).
The Privatization Council responsible for implementing this programme has begun to
evaluate the enterprises and has called for the first bids.
The aforementioned text is available at the WTO Secretariat.
4.2 As regards partial privatization, it has been decided that 20 per cent of the capital of SAIDAL
(pharmaceutical products), ERIAD Sétif (agri-food sector) and the EL-AURASSI hotel should be
quoted on the stock exchange as part of the public offer of sale.
4.3 The following results have been obtained in privatization operations governed by other texts:
- Local activities:  at 31 December 1997, 116 operations had been carried out (50 in the
form of sales and 66 as concessions);
- local State-owned companies:  at 30 June 1998, 696 companies had been dissolved.WT/ACC/DZA/13
Page 9
Following consultations with the employees, the assets of 331 enterprises dissolved were used
to set up 596 private companies employing a total labour force of 8,989.
The assets of other enterprises dissolved were sold in the course of the liquidation
proceedings.
The privatization of other local State-owned firms is continuing.
Question 10
Is it intended to reduce the amount of export  earnings repatriated directly through the
interbank exchange market?
Reply
No such reduction has yet been planned.
Question 11
How is the commercial use of funds drawn by exporters from their "foreign currency
accounts" assessed?  What are the requirement s for obtaining an authorization from the
Central Bank for non-trade-related  needs?
Reply
Trade-related use is assessed in relation to th e exporting company's needs for operations and
investment.
As a measure to promote exports, a recent directive from the Bank of Algeria (March 1998)
allows free use of export earnings, with the ex ception of those from hydrocarbons and mining
products, up to a maximum of 10 per cent of the amount of the exports.
For non-trade-related activities, applications by exporters are considered by the services of the
Bank of Algeria on the basis of supporting documents (examination on a case-by-case basis).
Question 12
The response on the privatization programme  lists the sectors that are not open to
foreign participation.  It would be useful to know whether minority participation is allowed inthese sectors and also whether other sectors, ir respective of whether or not they are included in
the privatization programme, are subject to proh ibitions or limitations regarding the control of
their capital by foreign participation.
Reply
The sectors affected by privatization are listed in Article 2 of Order No. 95-22 of
26 August 1995;  according to Article 5 of this Order, preparation of the list of enterprises to be
privatized, as well as the arrangements for putting this into effect, are the prerogative and
responsibility of the Government and are defined in Executive Decree following a proposal by theinstitution responsible for privatization (in effect, the National Council for State Participation).
Article 6 of the Order prescribes that the terms for the transfer of ownership or the
privatization of the management of State-owned firms be set out in the contract specifications, which
define the rights and obligations of the seller and buyer.WT/ACC/DZA/13
Page 10
In addition, Article 20 of Order No. 95-25 of 25 September 1995 on the management of the
State's market capital prescribes that the National Council for State Participation shall define the
objectives of the policy for the management of State holdings and, where necessary, fix the terms for
investing State capital, buying and selling shares and other securities.
It should also be emphasized that Algerian legislation does not discriminate against foreign
investors:  all sectors open to national private investment are also open to foreign investment.  This
rule applies to all foreign investment whether it is new or concerns the privatization of State-owned
companies.
Under Algeria's existing legislation, the special cases in which participation by private capital
is legally limited are the hydrocarbons, energy, mining, rail transport and post andtelecommunications sectors in particular;  these are all governed by special legislation (available at
the WTO Secretariat).
(c) Foreign exchange regime and system of payments
Question 13
The reply to question 3 of WT/ACC/DZA/4 states that exporters are not subject to any
restrictions on the use of the forei gn exchange in their possession.  However, it is stated that it
must be "for the purposes of their commercial activities".  What restrictions can be impliedfrom this condition?
Reply
The commercial use mentioned is assessed in relation to the operating and investment needs
of the exporting company, bearing in mind its corporate purpose.
As a measure to promote exports, a recent directive from the Bank of Algeria (March 1998)
allows free use of export earnings, with the ex ception of those from hydrocarbons and mining
products, up to a maximum of ten per cent of the export revenue.
For non-trade-related activities, applications by exporters are considered by the services of the
Bank of Algeria on the basis of supporting documents (examination on a case by case basis).
Question 14
It is stated that there is full convertibility  for foreign investors.  Does this statement
mean that all forms of foreign investment (direc t, portfolio, purchase of real estate) in Algeria
are free?
Reply
Full convertibility means covering the import needs of enterprises for goods and services and
guaranteeing the transfer of the capital invested and dividends related to non-resident investment.
Covering import needs for goods and services is one of Algeria's commitments on current
convertibility of the Dinar pursuant to Article VIII of the IMF's Articles of Agreement.
Guaranteed transfer applies to investment by non-residents in the form set out in the
Investment Code:  investment in the creation, improvement of capacity, rehabilitation or restructuring
of enterprises in the form of capital inflow or in kind.WT/ACC/DZA/13
Page 11
Legal persons may invest directly in real estate.
Question 15
Do the tax concessions granted by the Investment Promotion, Support and Monitoring
Agency (APSI) apply in the whole of Algeria or  only to projects in the six incentive zones
defined in the Investment Code?  What is the duration of the incentives?
Reply
The tax concessions in the Investment Code apply to projects in the whole of Algeria.  The
concessions are graduated in accordance with the incentive regimes defined in the Investment Code.
The duration of the incentives is as follows:
- General Regime 2 to 5 years;
- Special Zones 5 to 10 years;
- Second "Couronne" (the High Plains) 7 to 10 years
- the Deep South (Sahara) 10 years
- Free Zones duration of the zone's existence;
- Agreement Regime duration agreed between the State
and the promoter
The permanent concessions for all these regimes are the following:
- reduced rate of tax on company profits (IBS) for profits reinvested;
- exemption from the tax on company profits (IBS), the standing payment (VF),
and the business tax (TAP).
(d) Foreign and domestic investment policies
Question 16
In the reply to question 88 of WT/ACC/DZA/2, it is stated that investments in the
(industrial) free zones are reserved for export-oriented activities.
In the replies to questions 91 and 117 of WT/ ACG/DZA/4, it is also stated that exports
from these zones and export-related activities enjoy special advantages.
Activities in these zones are exempt from profits tax and other income taxes, may be
given an interest rate reduction, payment by the State of part of the employer's contribution to
the State social security scheme, special foreign exchange regulations applicable to free zones
for imports of goods and services used for the investment and needed for exploitation;  these
concessions are therefore subsidies with in the meaning of the SCM Agreement.
We suggest that Algeria recognize that the concessions granted for activities in free
zones constitute export subsidies and that, conse quently, it should review the situation of these
zones in order to comply with the WTO Agreements.WT/ACC/DZA/13
Page 12
Reply
Free zones are economic areas set up under Algerian law to promote investment.
Operators in these zones export and import services and goods to meet the needs of their
establishment and its operation under a fiscal, customs and foreign exchange regime defined by the
law and the regulations in force.  This special re gime suspends payment of duties and taxes, which
means that the activities carried out in free zones are considered activities carried out abroad.
Commercial transactions between enterprises in free zones and those in the rest of Algerian
customs territory are therefore deemed to be foreig n trade transactions according to the legislation in
effect.
Investment in free zones is in export-oriented activities.Goods produced in a free zone and marketed in Algerian customs territory are deemed to be
imported and are therefore subject to all the rules governing imports.
In relation to the WTO Agreement on Subsidies and Countervailing Measures (SCM), it
should be noted that under the free zone regime:
- The concessions granted are not restricted to certain enterprises;- the benefits of these concessions are granted automatically subject to the
requirements clearly defined in the legislation;
- the concessions are not subject to export performance nor to the use of domestic
products rather than imported products.
We would therefore point out that simply granting a subsidy to exporting enterprises cannot
in itself be considered an export subsidy within  the meaning of Part II (Prohibited Subsidies),
Article 3 (Prohibition), of the SCM Agreement.
This is why we believe that the status of the free zones is perfectly consistent with the WTO
Agreements.
(e) Competition policies
Question 17
According to the reply to question 11 of WT/ACC/DZA/4, several products, including
milk, common wheat, flour, bread, water, petrol, diesel fuel, fuel oil, domestic natural gas, LPG,
propane, butane, electricity and pharmaceutical products are subject to price controls.
According to the reply to question 12 of WT/ACC/DZA/2, Algeria planned to speed up totalliberalization of all prices under its IMF obligations.  We note that Algeria has liberalized the
prices for semolina and flour.  Are semolina and flour now covered by the free price regime?
Have price controls been abolished for pasteurized milk and hydrocarbons?
Reply
Semolina, flour and pasteurized milk are indeed now covered by the free price regime.
Hydrocarbons are still subject to the price control regime.WT/ACC/DZA/13
Page 13
Question 18
What is the rationale for maintaining price controls on hydrocarbons?  Are the price
controls set at levels above or below current international market rates?
Reply
Order No. 95-06 of 25 January 1995 on competition, available at the WTO Secretariat,
provides for two price regimes:
- Free prices determined by market forces (Article 4);
- the prices of certain goods and services deemed by the Government to be strategic are
fixed by decree after hearing the opinion of the Competition Council.
Until now, energy products came under the second category, but the Government decided to
transfer certain energy products gradually from the second to the first category.  This is the case forlubricants, bitumen and kerosene.
Regarding the reasons for keeping price controls  for energy, three essential elements should
be borne in mind:
(i) The Algerian market only has one supplier, Sonatrach, which supplies the following major
clients, all of them State-owned companies:
- SONELGAZ:  producer, transporter and distributor of electricity and distributor of
gas;
- ENIP:  national petrochemical industry enterprise;- ASMIDAL:  fertilizer production enterprise;- NAFTEC:  refinery;
(ii) Hydrocarbons are the property of the Algerian State.  Because of their strategic nature, the
Government fixes energy tariffs taking into account the economic costs so that they are the same
throughout Algeria.
(iii) Energy products play a very important role in the State's budget because of the revenue they
provide (close to 60 per cent of the overall budget).
Price levels are as follows:- Unrefined petroleum prices are above the international market price, particularly now
when there is a downward trend in global prices;
- natural gas prices are below the international market price in order to encourage the
use of this cleaner and more plentiful source of energy. Inciting greater use of gas at
the domestic level is a question of the size of the reserves.  Algeria's gas deposits arelarger than those of petroleum.WT/ACC/DZA/13
Page 14
Question 19
We noticed that medicinal products for human medicine were included in the list of
products subject to price controls in the reply to question 11 of WT/ACC/DZA/2, but not in the
list in the reply to question 21 of WT/ACC/DZA/4.  Has the Government of Algeria institutedprice controls for these products since July 1997?  If yes, what was the rationale for instituting
the price controls?
Reply
Pharmaceutical products were omitted from the list of products subject to price controls in the
reply to question 21 from the Eu ropean Union (WT/ACC/DZA/2).
Nevertheless, it should be noted that these products are not subject to a fixed price regime but
simply to a ceiling on their margin because of the important role they play in meeting the population's
health needs.
Question 20
Please specify how many times price liberalization has been limited under Order
No. 95-06.
Reply
The principle of price liberalization was affirmed in Order No. 95-06 on competition.  As we
emphasized in our Memorandum, this Order is the culminating point of a gradual process which has
seen Algeria move from a situation in which the prices of almost all products were fixed by theGovernment to a situation where prices or margins only remain fixed for a limited number of
products.
The full list was communicated to the Members of the WTO, together with the HS numbers,
in reply to question 11, page 6, of the English text of WT/ACC/DZA/4.
There have been no additions to this list since Order No. 95-06 was issued, on the contrary,
the authorities' policy is to provide the conditions  for a gradual transition to competitive mechanisms
in the various markets on a case-by-case basis.
The following table shows the list of products subject to price controls in 1995 and 1998 and
illustrates this policy:WT/ACC/DZA/13
Page 15
January 1995 January 1998
- Durum and common wheat
- Electricity and natural gas
- Ordinary and improved bread
- Ordinary semolina
- Flour of bread-making quality
- Household flour- Milk for infants
- Drinking water, water for industrial,
agricultural and sanitation use
- Pharmaceutical products
- "Whole" powdered milk
- Petroleum products
- School supplies- Textbooks
- Exercise books- Bread
- Medicinal products (human health)
- Drinking water, water for industrial and
agricultural use
- Petroleum products
- Electricity and natural gas
Guaranteed producer prices
- Durum and common wheat
- Seed potatoes
Outside the context described above, since 1995 the economic authorities have not found
themselves in a position where they needed to apply the restrictive provisions in the Order on
competition in order to limit price liberalization.
Lastly, it should be noted that all the domestic price control measures in force are fully
consistent with the provisions of Article III of the GATT 1994, more particularly paragraph 9, as they
have no prejudicial effect on the interests of exporting contracting parties.
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE
4. Any legislative programmes
Question 21
Can Algeria submit the draft Order on Foreign Trade to the Working Party once it has
been finalized?
Reply
The draft Order on Foreign Trade will be submitted to the Working Party as soon as it has
been finalized.WT/ACC/DZA/13
Page 16
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import regulations
(b) Characteristics of the national customs tariff
Question 22
According to the Memorandum on the Fore ign Trade Regime, the national customs
tariff comprises only one column of customs duties.  Unfortunately, for technical reasons, we
have not yet been able to review Algeria's tariff schedule.  If you have not already done so,
please add columns showing the preferential rates currently being applied by Algeria to
products originating in other Maghreb countries  and to products covered by the Arab League
Common Market.
Reply
The Trade and Tariff Convention has not yet been applied but it provides for duty-free entry
for all products originating in one of the countries of the Arab Maghreb Union.  All the products in
the customs tariff are therefore entitled to benefit from this exemption provided that they meet thecriteria on origin set out this Maghreb Convention.
Algeria has not yet acceded to the Arab League Trade Convention.
Question 23
According to the reply to question 166 of WT/ACC/DZA/4, Algeria applies a 17.5 per
cent countervailing charge to imported products of Maghreb origin which contain raw
materials benefiting from economic customs regimes.  Does Algeria intend to retain this
countervailing charge after accession to the WT O?  How does the countervailing charge apply
when the 17.5 per cent rate exceeds the cu stoms duty on the product concerned?
Reply
The AMU Trade and Tariff Convention has not yet entered into force.
The application of the 17.5 countervailing charge provided in the AMU Trade and Tariff
Convention is subject to two conditions:
- The product of Maghreb origin imported free of duty must compete with a domestic
product;
- the imported product of Maghreb origin must include raw materials from non-AMU
countries that benefit from economic customs regimes.
In the economic context prevailing at the time the Convention was signed, the purpose of
introducing this charge was to remedy any distortions that might arise through the granting of animportant tariff concession.  It therefore only concerned products subject to a higher customs duty in
the importing country.WT/ACC/DZA/13
Page 17
Question 24
How does the countervailing charge apply when the 17.5 per cent rate exceeds the
customs duty on the raw material used to manufacture the product concerned?  How does
Algeria intend to deal with this question in the context of its concessions.
Reply
In the economic context prevailing at the time the Convention was signed, the purpose of
introducing this charge was to remedy any distortions that might arise through the granting of an
important tariff concession.  It therefore only concerned products subject to a higher customs duty in
the importing country.
(c) Tariff quotas, tariff exemptions
Question 25
According to the reply to question 43 of WT/ACC/DZA/2, 38 subheadings in chapters 27
and 34 relating to oil products enjoy specia l treatment under the customs arrangements for
exempted factories.  How do factories qualify for these tariff exemptions?  Are these exemptions
available only to certain importers or to all?
Reply
The arrangements for exempted factories are restricted to factories which, under customs
control, process or use goods subject to a special customs or tax regime, and in particular to the
following operations:
- The production and manufacture of petrochemical, chemical and similar products
made from petroleum;
- the treatment and refining of petroleum oils or bituminous minerals, petroleum gases
and other gaseous hydrocarbons, as well as their liquefaction.
The goods imported for treatment or refining are exempt from duties and charges and
economic prohibitions.
The 38 subheadings mentioned are products exempt from customs duties ex-exempted
factories.
Question 26
If the exemptions are only available to partic ular factories, please identify the eligible
factories and describe the criteria used to dete rmine which factories are entitled to the tariff
exemptions.
Reply
The exemptions are not granted to particular factories but apply to the activities defined.WT/ACC/DZA/13
Page 18
(d) Other duties and charges, including charges for services rendered
Question 27
In the reply to question 32 of WT/ACC/DZA/4, it is stated that the Algerian customs
administration is undertaking a study on how to  estimate the costs actually borne and the
services rendered on a more accurate basis.  What  is the current status of this study?  Has the
Algerian customs administration issued a schedu le of fees based upon the approximate cost of
services rendered?  Please provide a copy of th e schedule, if possible, to the WTO Secretariat
for review by the Working Party.
Reply
The study is currently being finalized.  Preliminary indications, however, show the need to
review the level and form of payment of customs duties so as to ensure greater consistency with the
relevant provisions in the WTO Agreements.
Question 28
Are any imports or exports exempted from application of these fees?
Reply
The 4 per thousand (0.4 per cent) fee is imposed on all operations involving a customs
declaration.  Decree No. 81-279 of 17 October 1998 lists the operations not subject to payment of this
fee.
These include the following:- Operations eligible for total exemption from duties and fees;- regimes suspending payment of duties;- operations up to a maximum of DA 100.
The 2 per cent fee for customs formalities is payable on the customs value of the goods
imported.  The exemptions allowed mainly concern suspensive regimes and operations by certain
government authorities.
Question 29
Must all imported gold, silver and platin um articles be warranted, tested and
hallmarked?  What are the procedures for ensuri ng that domestically produced articles are
similarly warranted, tested and hallmarked?
Reply
All imports of gold, silver and platinum articles are warranted, tested and hallmarked.
Similar articles produced locally are subject to the same regime before being placed on sale in
accordance with legal procedures (Tax Code), which oblige producers to declare their production in
order to obtain the warrant and carry out the obligatory testing and hallmarking.  The necessary
controls and verification are carried out by services belonging to the General Directorate of Taxes of
the Ministry of Finance.WT/ACC/DZA/13
Page 19
Question 30
What is the status of the study on customs fees?  Do the test and warrant duties apply to
the finished products or the raw materials?
Reply
The study is currently being finalized.  Preliminary indications, however, show the need to
review the level and form of payment of customs duties so as to ensure greater consistency with the
relevant provisions in the WTO Agreements.
The test and warrant duties apply to all gold, silver and platinum articles (finished products).
(e) Quantitative import restrictions, including prohibitions, quotas and licensing
Question 31
According to the reply to question 35 of WT/ACC/DZA/4, Algeria will identify,
including HS numbers, all products that are prohibited from being imported and the rationale
for the import prohibition, in the replies to the questionnaire in Annex 3 to WT/ACC/1.
We also note in the reply to question 39 of WT/ACC/DZA/4 that the procedures for
obtaining a prior authorization or technical certificate for the importation of medicinalproducts, hunting weapons and bookshop articles will be provided in that same Annex.
Has this information been provided to th e WTO Secretariat for review by the Working
Party?  If not, what is the current status of the preparation of this document?
Reply
This information has not yet been submitted to the WTO Secretariat for review by the
Working Party.
The reply to the questionnaire in Annex 3 to WT/ACC/1, attached, provides this information
(Annex 1).
Question 32
In reply to question 37 (WT/ACC/DZA/4), Algeria refers to itself as a net importer of
food products with inadequate agricultural pro duction and food security considerations, but it
is examining the possibility of limiting these im ports.  What is the rationale behind possibly
limiting food imports in response to inadequate agricultural production?
Reply
The objective outlined in the reply to question 37 in WT/ACC/DZA/4 is not to limit imports
of food products but to afford the possibility of regulating these imports so as not to penalize the
development of domestic agricultural production.
The Members of the WTO will note that the measures to be undertaken in this regard fully
comply with the provisions of the WTO Agreement on Agriculture.WT/ACC/DZA/13
Page 20
Question 33
Please provide a list of the products whose import is limited or prohibited, giving the
HS number, the reasons for each measure and the relevant provisions of the GATT.
Reply
This information is given in the reply to the questionnaire in Annex 3 to WT/ACC/1
(Annex 1).
Question 34
When does Algeria intend to impose special administrative measures on the import of
certain specific products?
Reply
Algeria currently applies the special administrative measures indicated in the reply in
Annex 3 to WT/ACC/1 (Annex 1).
Question 35
Can Algeria indicate what is meant in the reply to question 37 (page 18 of
WT/ACC/DZA/4), where it is stated that "for the future, [Algeria] expects to be able to use all
the measures allowed by the WTO Agriculture Agreement"?
Reply
In accordance with the Agreement on Agriculture, as an example these measures will relate to
the following:
- The rates of customs duty within the limits of the rates bound;- tariff quotas;- possible quantitative restrictions if there is a disequilibrium in the balance-of-
payments, applying the relevant provisions of Article XII of the GATT 1994;
- the domestic support measures allowed under Article 6;- all other measures not specifically prohibited by the Agreement.
Question 36
Are the same quality control measures applicable both to imported products and
locally-produced products?
Reply
The quality control measures adopted and applied are the same for domestic products and
imported products.WT/ACC/DZA/13
Page 21
Question 37
Please give further details on the ration ale for the 80 per cent requirement for the
guarantee duration applied to imported products.
Reply
The requirement that an imported product should possess a durability of more than 80 per
cent has been made necessary for the following reasons in particular:
- The authorities' desire to draw importers' attention to the need to ensure the quality of
the products they buy;
- the inexperience of many importers who embarked on international trade transactions
without any preparation following the adoption of measures on the rapid
liberalization of foreign trade in 1995 (for information, the number of companies
dealing in imports rose from 1,000 to 27,000 between 1994 and 1997);
- the lack of experience of Government officials responsible for monitoring quality and
for consumer protection;
- the inflexibility of local distribution chains, with products sometimes remaining for
long periods in the ports or in the commercial network.
For the foregoing reasons, the trade authorities preferred to adopt high standards for the
expiry date of products in order to prevent as far as possible the risks that consumers might face at the
end of the distribution chain.  It is, however, possible that this measure may be gradually andselectively reviewed in order to adapt it to the specific market requirements for each product and so
avoid any unnecessary technical obstacle to trade in the spirit of the relevant WTO Agreements.
Question 38
What are the objectives of the 100 standards approved in Algeria?
Reply
Algerian standards (NA) are listed in Annex 3 ("Standardization") attached and they are
approved on the basis of the following criteria:
Basic standards (17):
These standards have been approved in order to establish and encourage orderly socio-
economic activities and avoid uncontrolled uses.  They are the following - NA 01/ 0, 1, 2, 3, 4, 7, 8, 9,
10, NA 38, NA 1421, NA 2015, NA 2016 , NA 2020, NA 2021 and NA 2029.
Safety and maintenance (17):
These standards have been approved on the basis of criteria for the protection of persons and
goods.  They have the following reference numbers:  NA 214, NA 474, NA 2139, NA 1367, NA 221,NA 481, NA 218, NA 471, NA 473, NA 867, NA 1368, NA 2138, NA 2131, NA 2510, NA 2663,
NA 2665, NA 2666.WT/ACC/DZA/13
Page 22
Chemicals and petrochemicals (13):
These standards have been approved on the basis of criteria for environmental conservation
and safety.  They have the following reference numbers:  NA 561, NA 2148, NA 2149, NA 1990,
NA 8108, NA 8109, NA 8110, NA 8111, NA 8112, NA 8146, NA 8147, NA 8148 and NA 8149.
Concrete and concrete adjuvants (14):
These standards have been approved on the basis of criteria on safety in the building industry.
They are the following:  NA 777, NA 815, NA 817, NA 819, NA 820, NA 821, NA 1940, NA 2602,
NA 429, NA 775, NA 776, NA 816, NA 2832  and NA 2833.
Electrical installations (3):
These standards have been approved on the basis of criteria for the protection of persons and
goods.  Their reference numbers are as follows:  NA 1809, NA 1813 and NA 1842.
Agri-food sector (31):
These standards have been approved on the basis of criteria for the protection of consumers'
health.  They are the following:  NA 701, NA 703, NA 2692, NA 2840, NA 6351, NA 1164,
NA 1168, NA 1169, NA 2749, NA 297, NA 301, NA 310, NA 690, NA 1290, NA 2167, NA 2168,
NA 2169, NA 2170, NA 2171, NA 2821, NA 2826, NA 2841, NA 5687, NA 5690, NA 5751,
NA 299, NA 310 / 2, NA 719, NA 721, NA 722 and NA 1166.
The list of approved Algerian standards is attached as Annex 3 "Standardization".
(f) Import licensing procedures
Question 39
The replies provided on import licensing and import procedures in WT/ACC/DZA/1,
WT/ACC/DZA/2 and WT/ACC/DZA/4 indicate that draft legislation, a draft Order on ForeignTrade, is being prepared to define a licensing regime.  Algeria has also indicated in the reply to
question 21 of WT/ACC/DZA/4 that "for the importation of certain specific products subject to
special administrative measures, the procedures  will be set out in the reply to Annex 3 to
WT/ACC/1.  This reply is still under study and will be communicated to the WTO Secretariat as
soon as it has been finalized".  We would appreciate receiving (a) a description and (b) a text ofthe draft Order on Foreign Trade.  Can Algeria supply these to the Working Party?  What is
the status of the review of the provisions of th e draft Order?  Is there a probable timetable for
its enactment?
Reply
We confirm that the draft Order on Foreign Trade will be communicated to the WTO
Secretariat as soon as it has been finalized.  At the current stage of preparation, it is still premature toput it before the Working Party.
No timetable has been set for finalization of the text.As far as the licensing regime is concerned, the Members of the WTO will find attached the
replies to the questionnaire contained in Annex 3 to document WT/ACC/1 (Annex 1).WT/ACC/DZA/13
Page 23
Question 40
When does Algeria think it might be ready to circulate its response to Annex 3 of
WT/ACC/1?
Reply
The reply to Annex 3 to document WT/ACC/1 is attached (Annex 1).
(h) Customs valuation
Question 41
Could Algeria update the Working Party on the status of implementation of the
Customs Valuation Agreement?
Reply
In the process of revising its Customs Code, Algeria has recently incorporated the general
principles of the Customs Valuation Agreement in its domestic legislation.
The text of the new legislation is communicated to the WTO Secretariat below (Annex 4).
Question 42
Does Algeria intend to apply the Customs Valuation Agreement as of the date of its
accession?  If so, what will the implementation stages be?  Is Algeria seeking technicalassistance?
Reply
The provisions of the Agreement on Implementation of Article VII of the GATT 1994 have
been incorporated into Algerian legislation in the course of the revision of the Customs Code.  The
text of this Code is attached (Annex 4).
To ensure effective and gradual implementation, Algeria would like to receive technical
assistance at the bilateral or multilateral level in order to benefit from the experience of those Member
countries of the WTO that have already implemented the new valuation methodology.
(k) Application of internal taxes on imports
Question 43
Algeria has stated (page 49 of the English text of WT/ACC/DZA/1) that the VAT is
applied to both import trade and local processing of the same products.  This appears to suggestnational treatment.  Can Algeri a explain how the VAT is being applied on a national treatment
basis?
Reply
The VAT system comprises three rates (7 per cent, 14 per cent and 21 per cent) and is applied
in the same way to products manufactured locally and imported products.  National treatment is
therefore the rule as far as this tax is concerned.WT/ACC/DZA/13
Page 24
For imported products, the tax is paid to the customs administration at the border during
customs clearance.  For local products, producers bill their customers at the point of sale.  In other
words, the customs administration, in the case of imports, and local producers, in the case of domestic
production, collect this tax for the benefit of the State's budget.
Question 44
According to the replies to questions 52 and 53 of WT/ACC/DZA/4, certain products or
operations are exempted from the VAT, in accord ance with Articles 8,  9, 10 and 11 of the
Turnover Tax Code.  We also note in the replies to these questions that Algeria's road user fee
applies only to foreign-registered vehicles which transport goods or persons over national
territory.  Please describe the "operations" that are exempt from VAT.
Reply
Chapter 1, section IV, of the Turnover Tax Code specifies the exemptions from VAT for
business within Algeria, import and export transactions.
An extract from the Turnover Tax Code concerning exemption from VAT is attached
(Annex 5).
In addition to the exemptions permitted under the Turnover Tax Code, goods and services are
exempt from VAT if they are used directly for inve stment eligible for the privileges granted by the
Investment, Promotion, Support and Monitoring Agency (APSI), whether the goods and services are
imported or bought on the local market.  It should be noted, however, that the exemption only applies
for a period of three years (unless the APSI decides to fix a period exceeding three years for the
investment) from the date of notification of the bene fits by the APSI.  (See Investment Code, Title II,
Article 17, and Title III, Article 20, available at the WTO Secretariat.)
Question 45
The application of road user charges raises the cost of importation in a manner
inconsistent with Articles III, V and VIII of the GATT.  How does Algeria intend to bring its
road user fee into conformity with  WTO national treatment requirements?
Reply
With regard to the road-user fee for foreign-registered vehicles which transport goods or
persons over national territory, it must be pointed out that this is a fee payable in exchange for usingthe national road network.  It should also be emphasized that:
(i) This fee does not alter the conditions of competition in trade in goods;  it does not
apply to any type of goods transported.   It does not therefore affect the national
treatment rule contained in Article III of the GATT 1994;
(ii) this fee is paid in exchange for a service rendered, is calculated fairly, and is thus
fully consistent with the requirements of paragraphs 3 and 4 of Article V and
paragraph 1 of  Article VIII of the GATT 1994;
(iii) it does not constitute indirect protection of domestic products because it concerns the
transport service, both for goods and passengers.WT/ACC/DZA/13
Page 25
Question 46
How does Algeria ensure collection of the slaughter tax on local products?
Reply
The slaughter tax is collected by local officials by means of bills or coupons under the
supervision of tax officials who are authorized to carry out any necessary checks, both in abattoirs and
in the municipal services, pursuant to the provisi ons of Article 462 of the Code of Indirect Taxes.
Question 47
Please explain how the tobacco tax is discri minatory.  Please give the list of goods
subject to the domestic consumption tax and the rates applied to imported and local products.
Reply
The products subject to the domestic consumption tax (TIC) are beer, tobacco and matches.
The following are the rates for each product:1. Beer:  DA 3,152/hectolitre both for imports and domestic products;2. Locally manufactured tobacco products and matches:2.1 Cigarettes:
dark tobacco:  DA 819/kg.;
light tobacco:  DA 1,017/kg.;
2.2 Cigars:  DA 1,165/kg.;2.3 Smoking tobacco:  DA 465/kg.;2.4 Snuff and chewing tobacco:  DA 525/kg.;2.5 Matches:  DA 15/kg. per 100 boxes containing at least 40 matches per box;
3. Imported tobacco products and matches:
3.1 Cigarettes:
dark tobacco:  DA 2,237/kg.;
light tobacco:  DA 2,237/kg.;
3.2 Cigars:  DA 2,425/kg.;3.3 Smoking tobacco:  DA 1,185/kg.;3.4 Snuff and chewing tobacco:  DA 1,185/kg.;3.5 Matches:  DA 60 per 100 boxes containing at least 40 matches per box.WT/ACC/DZA/13
Page 26
(l) Rules of origin
Question 48
Is the system in effect consistent with the WTO Agreement on Rules of Origin?  If not,
does Algeria intend to amend its legislation before accession to the WTO?
Reply
Algeria's existing system of rules of origin is consistent with the relevant WTO Agreement.
With a view to its accession to the WTO, Algeria would like to receive technical assistance in this
regard.
(m) Anti-dumping regime
(n) Countervailing duty regime
(o) Safeguard regime
Question 49
The reply to question 64 of WT/ACC/DZA/2 states that anti-dumping and
countervailing duties may not exceed the margin of dumping or the subsidy.  What does this
margin refer to?
Reply
The reference to this margin is a legal reference based on Article 9 of the Customs Code,
which states that anti-dumping and countervailing duties must not exceed the margin of dumping or
the subsidy.
In practice, this margin is not in any way determined on the basis of economic criteria for the
evaluation of dumping or subsidies.  The reason being, as we have already stated (see the reply to
question 61 of WT/ACC/DZA/4) that in the former economic context, namely an economy in whichaccess to foreign trade was highly restricted, the only elements taken into account in order to
determine the level of additional customs duties to be paid was the injury that domestic manufacturers
might have suffered.  There was no investigation to determine whether exporters to Algerian markets
had practised dumping or subsidies.
This is why we have indicated that in practice anti-dumping or countervailing duties are
assimilated to safeguard measures.
It should also be noted that, in the former economic situation, recourse to administrative
restrictions on trade was much easier and made protection through anti-dumping or countervailingduties virtually pointless.
Question 50
What legislation and regulations will be necessary to bring Algeria's anti-dumping and
countervailing regime into conformity with the WTO Agreements on Anti-Dumping, Subsidies
and Countervailing Measures?WT/ACC/DZA/13
Page 27
Reply
In its new Customs Code, Algeria has already started to make the necessary adjustments to
bring its legislation and regulations on anti-dumping, subsidies and countervailing measures into
conformity by reaffirming the principles to be found in the relevant WTO Agreements.
Algeria intends to complete this work before acceding to the WTO.
Question 51
How does Algeria intend to implement Articles 5, 4, 6, 12 and 13 and Articles 11, 4, 12,
22 and 23 of the Agreements on Dumping, and on Subsidies and Countervailing Measuresrespectively?
Reply
Algeria will strictly observe all the provisions contained in these Articles once they have been
incorporated into domestic legislation.  Assistance in this area will be needed and is requested from
the WTO.
Question 52
Can Algeria inform the Members of the WTO when it will bring its legislation into line
with the WTO rules and disciplines on anti-d umping, countervailing and safeguard measures?
Reply
Before acceding to the WTO, Algeria will bring the relevant legislation into conformity with
the WTO's rules.  The question is already being studied.  The Member countries of the WTO will be
informed immediately the legislative amendment process has been completed.
Question 53
Can Algeria confirm that, upon accession, it will only apply anti-dumping and
countervailing duties and safeguard measures on the basis of the WTO's rules?
Reply
Upon accession, Algeria will apply the rules and disciplines on anti-dumping and
countervailing duties and the safeguard regime contained in the WTO Agreements.
Question 54
According to the reply to question 63 of WT/ACC7DZA/4, the Interministerial
Commission "decides whether the increase in impo rts is causing or threatens to cause serious
injury to domestic production".  Please explain the criteria that determine the seriousness of the
injury or threat of injury.  Please define domestic production.
Reply
The safeguard regulations in force (Executive Decree No. 92-122 of March 1992) were
designed for the former economic situation in which Government control of foreign trade was the
rule.WT/ACC/DZA/13
Page 28
Consequently, the assessment of the seriousness of  injury due to an increase in imports was
also a purely administrative decision and was not subject to any particular criteria.  As indicated
above, Algeria intends to bring its legislation into line with the relevant WTO rules and disciplines.
Definition of domestic production:
Domestic production means any activity creating goods or services and carried out within
Algeria.
Question 55
We appreciate Algeria's intention to introduce a legislative and regulatory framework in
this regard in conformity with the rules of the WTO.  Can Algeria give a timetable for bringing
them into conformity?
Reply
It is not possible to provide an exact timetable.  They will be brought into conformity before
the conclusion of the process of Algeria's accession to the WTO.
2. Export regulation
(c) Quantitative export restrictions, including prohibitions, quotas and licensing systems
Question 56
According to the reply to question 67 of WT/ACC/DZA/4, palm tree seedlings, breeding
sheep and cattle are subject to a temporary export ban.  Algeria states that these exportrestrictions are maintained in conformity wi th Article XX of the GATT 1994, in particular,
paragraph (b) on preservation of the life of animals and plant conservation.  We also note that
raw and semi-finished coral are listed in the reply to question 70 of WT/ACC/DZA/2 as being
subject to export restrictions.
These restrictions would not appear to be related to conservation if domestic trade in
these products continues without similar protective restrictions in place on like domesticproducts.
Algeria should explain in more detail how these restrictions meet the requirements of
Articles III and XI of the GATT in order to justify their application under Article XX.
Please describe the domestic restrictions on trade in palm tree seedlings, breeding sheep
and cattle parallel to those applied to exports that ensure the preservation of the life of animals
and plant conservation.  If no such parallel measures exist, please explain why not and what
steps Algeria will take to bring this export barrier into conformity with Article XI of the GATT.
Reply
With regard to breeding sheep and cattle, measures such as a ban on slaughter could
constitute measures parallel to the suspension of their export in order to conserve domestic herds.
Concerning palm tree seedlings, which are essential and needed for the replanting of palm
groves, export restrictions can be explained by the disasters and diseases that have affected palm
groves and the seemingly natural restriction that nurseries for date palm seedlings are not possible.WT/ACC/DZA/13
Page 29
These measures are consistent with the provisions of Article XI.2(a) of the GATT 1994.
Question 57
Are raw and semi-finished coral still subject to export restrictions?  Paragraph (b) of
Article XX allows restrictions that are necessary to protect human, animal or plant life.  Please
explain why these export prohibitions are necessa ry and how they protect animal and plant life.
Reply
The export of raw coral is suspended in order to conserve this resource.
The measure is applied in order to prevent the exhaustion of this natural resource.  It is
consistent with the provisions of Article XX, paragraph (g).  It has been taken in parallel with
restrictions on domestic production which only allow the use of raw coral for artistic and handicrafts
activities and the transfer of exploitation of national reserves to government authorities which fix the
quantities and method of exploitation.
Question 58
Please describe the domestic restrictions on trade in these products applied for the same
purposes.  If such domestic restrictions are la cking, please indicate why and how the measures
in place on trade are not a disguised barrier to trade.
Reply
Similar restrictions apply to domestic trade and consist of the following:
- A ban on slaughtering breeding sheep and cattle;- the use of raw coral solely for handicrafts activities, regulation and limitation of the
exploitation of resources and restrictions on the areas of exploitation.
Question 59
According to the reply to question 67 of WT/ACC/DZA/4, objects of national interest
from the historical, artistic or archaeological standpoint, including vintage automobiles, are
temporarily barred from export.  We note that there are HS numbers but no product
descriptions in the list of objects of nation al interest from the historical, artistic and
archaeological standpoint, provided in the reply to question 70 of WT/ACC/DZA/2.
Paragraph (f) of Article XX allows restrictions imposed for the protection of national
treasures of artistic, historic or archaeological value.  Please describe more fully the nature of
the objects, other than vintage automobiles, which the Government of Algeria considers to beobjects of national interest from the historical, artistic or archaeological standpoint, e.g. age,
composition, value, etc.
Reply
The following objects other than vintage autom obiles are deemed to be of interest from the
historical, artistic and archaeological standpoint:WT/ACC/DZA/13
Page 30
Tariff heading Description
97.01 Paintings, drawings and pastels
97.02 Original engravings, prints and lithographs
97.03 Original sculptures and statuary, in any material
97.05 Collections and collectors' pieces of  zoological, anatomical, historical,
archaeological, ethnological, palaeontological, ethnographical, or
numismatic interest
97.06 Antiquities of an age exceeding 100 years
These objects are defined in Chapter 97 of the current Customs Tariff, which is available at the WTOSecretariat.
Question 60
Please describe the criteria applied by the Government of Algeria in determining which
vintage automobiles are subject to the export ban and explain why they should be considered
"national treasures" of historical or artistic value.
Reply
The main criteria applied by the Government of Algeria in determining which automobiles
are subject to the export ban are their age (over 60 years), the rarity of the model and the fact that it is
no longer manufactured.  A model is considered to be a national treasure if it has been used in an
important event that has marked Algeria's history.
(e) Other measures
Question 61
There are descriptions of the minimum export pricing system for sheep and cattle, hides
and skins, wool, tomato paste and dates, in the replies to question 70 of WT/ACC/DZA/4 and
questions 71-74 of WT/ACC/DZA/2.
We note that date paste and packaged Deglet Nour are subject to minimum export
prices.  According to the reply to question 72 of WT/ACC/DZA/4, the minimum export pricing
measures are aimed at discouraging capital flight, facilitating control of the marketing system
or preserving a product's international reputation.  We also note in the reply to question 74 of
WT/ACC/DZA/2 that the Government of Algeria does not have any plan to dismantle the
minimum export price measures.
What is the WTO rationale for maintaining these export price measures, which appear
to be measures violating Article XI of the GATT?  Why does the Government of Algeria subject
Deglet Nour dates but not processed products such as date paste to minimum export prices?
Reply
Algeria has a temporary system of minimum export prices for the reasons given in the reply
to question 72 of WT/ACC/DZA/4.  This is a re strictive measure allowed as an exception under
Article XI.2 (b) of the GATT 1994.
An assessment is under way to determine the regulatory measures to be taken, in conjunction
with producers' associations, particularly with regard to the classification and quality control of theWT/ACC/DZA/13
Page 31
products, in order to meet the objectives of these restrictions, in strict compliance with Article XI of
the GATT 1994.
The Government imposes minimum export prices for Deglet Nour dates because they are the
best known variety and are subject to the most fraud, especially lower export prices (the declaredexport price is well below the price actually paid by importers), resulting in capital flight and tax
evasion.
(f) Export financing subsidy and promotion policies
Question 62
Have eligibility requirements been developed for any categories other than participation
in foreign affairs and exhibitions?  If so, which categories and what are the criteria?  What is
the total amount currently in the Special Export Promotion Fund?
Reply
No eligibility requirements have recently been developed for any categories other than
participation in foreign affairs and exhibitions.
The total amount in the Special Export Promotion Fund at the end of September 1998 was
DA 1.1 billion.
Question 63
Have any funds been assigned from the Special Export Promotion Fund to the Algerian
Insurance and Guarantee Fund (CAGEX)?  If so, how much and for what purpose?
Reply
CAGEX does not receive any support from the Special Export Promotion Fund excluding
hydrocarbons.
Question 64
The reply to question 95 of WT/ACC/DZA/4 indicates that, in the view of Algeria, the
exemption from profits tax (IBS) given to exporters is the only Algerian subsidy programme
inconsistent with the WTO Agreement on Subsidies and Countervailing Measures (SCM).
We believe that there are additional programmes that have similar inconsistencies with
the WTO subsidy provisions.
The Special Export Promotion Fund finances product quality upgrades, the cost of
adapting products to foreign markets, and the cost of international transport and handling for
exports.  We believe that these measures consti tute export subsidies within the meaning of the
SCM Agreement, as do the professional activity tax (TAP) deduction and the wage bill tax
exemption (VF) given to exporters.
We suggest that Algeria review these programmes and note their status as export
subsidies.  We seek a presentation from Algeria on how it intends to bring these programmes
into conformity with the WTO Agreement on subsidies.WT/ACC/DZA/13
Page 32
Reply
Our evaluation of the consistency of the subsidy programmes applied with the Agreement on
Subsidies and Countervailing Measures (SCM) was based on the following provisions of the
Agreement in particular:
- Article 1.1(ii) of the SCM Agreement (definition of a subsidy);- the footnote to Article 1.1(ii) of the SC M Agreement (exemption from duties or taxes
on like products destined for domestic consumption);
- Article 2.1(b) of the SCM Agreement (automatic nature of the subsidy);- Article 3 of the SCM Agreement (prohibition);- Article 5 of the SCM Agreement (adverse effects);
- subparagraphs (e), (g) and (i) of the illustrative list of export subsidies annexed to the
SCM Agreement (exemption from direct taxes, indirect taxes and remission of import
charges on imported inputs);
- Article 27 of the SCM Agreement (special and differential treatment of developing
country Members).
Our understanding and analysis of all these provisions have already led us to confirm that
exemption from profits tax might in fact be inco nsistent with the SCM Agreement, whereas the
deductions from the professional activities tax and the wage bill tax are not inconsistent.
With regard to support from the Special E xport Promotion Fund, the following should be
noted:
- The support for quality upgrades is only available for studies carried out for this
purpose and not for the actual upgrading of quality;
- the financial aid for the cost of adapting products to foreign markets, like the aid for
studies on upgrading quality, is not subject to export performance; it is given at the
pre-competition stage and is available to all production enterprises irrespective of
their export operations;
- support for the cost of international transport of goods for export other than
agricultural products may be considered prohibited under the SCM Agreement.
In general, it should be emphasized that eligibility for the current subsidy programmes is not
subject to achievement of a level of exports fixed by the Government;  the subsidies are intended topromote the export of goods and services which are now being exported in very small quantities.
Algerian exports of goods and services are at a pre-competition stage;  their progress will be
decisive for the successful integration of the Algerian economy in the global economy.
Lastly, it should be recalled that Algeria has formally asked to benefit from the provisions of
the WTO Agreements in favour of developing country Members, especially those contained in
Article 27 of the SCM Agreement.WT/ACC/DZA/13
Page 33
(g) Export performance requirements
Question 65
Does Algeria agree that it is possible to achieve the objective of discouraging capital
flight,  controlling markets and maintaining th e reputation of Algerian products on foreign
markets through fiscality, i.e. taxes?
Reply
In the Algerian economy's current situation and because of the special nature of the market
shares of the three products in question, the introduction of fiscal measures could not wholly andeffectively replace export restrictions without seriously upsetting the balance in these production
sectors.
Algeria does not intend to extend these restrictions to other products.
Question 66
The Algerian Special Export Promotion Fund appears to be contrary to Article 3 on
prohibited subsidies.  Can Algeria inform the Members of the WTO when it envisages
terminating these export subsidies?
Reply
With the exception of financial aid for part of the cost of international transport of goods for
export, all the other costs authorized by the law under the Special Export Promotion Fund are notcontrary to Article 3 of the Agreement on Subsidies and Countervailing Measures because eligibility
is not subject to export performance nor to the use of domestic products rather than imported
products.
Regarding the payment of part of the cost of international transport of goods for export,
Algeria hopes to abolish this measure at the end of the period allowed for developing country
Members under Article 27.2 of the WTO Agreement on Subsidies and Countervailing Measures.
Question 67
This reply does not appear consistent with question 73, which states that subsidies are
granted to exporting enterprises.  Does Algeri a mean that these subsidies are only granted to
exporters?  Are producers eligible for these subsidies if their products are for domestic
consumption?  If the subsidies are only granted to exporters, this implies that the subsidies are
used to improve export performance.  Please clarify this.
Reply
With the exception of financial aid for part of the cost of international transport of goods for
export, producers are eligible for other aid under the Fund, whether or not they are exporters.
It should be noted that the aid:
- Is available to all producers whether or not they have exported;
- is available to producers who are simply interested in exporting;WT/ACC/DZA/13
Page 34
- is always subject to sharing of costs between the Fund and the producer concerned,
with the latter paying at least 50 per cent of the relevant cost;
- does not in any way depend on carrying out an export transaction;
- does not come under the prohibitions set out in Article 3 of the WTO Agreement on
Subsidies and Countervailing Measures.
Question 68
Please provide further details showing that  CAGEX is consistent with the subsidies
agreements.
Reply
The Algerian Export Insurance and Guarantee Fund (CAGEX) was set up by Notarial Deed
on 13 December 1995 and is a joint stock company founded by five banks and five insurance
companies.
It is subject to the rules of the Commercial Code and its purpose is to cover exporters against
the risk of non-payment of their claims by defaulting or insolvent debtors, pursuant to
Order No. 96-06 of 10 January 1996 on exports.*
The procedures for managing risks covered by CAGEX are defined in Decree No. 96-235 of
2 July 1996.*
Like other insurance companies, CAGEX provides guarantees in return for the payment of
premiums which are determined according to the tariffs defined in Articles 232-234 of
Order No. 95-07* of 15 January 1995 on insurance and Articles 2 and 3 of Implementing Decree
No. 96-47 of 17 January 1996.
CAGEX is also subject to Articles 209-213 and 220-227 of the aforementioned Order
concerning the monitoring and functioning of insurance companies.*
Consequently, CAGEX does not enjoy any privileges or subsidies and is not allowed to grant
any.
 Its legal status is in conformity with the Agreement on Subsidies and Countervailing
Measures, in particular subparagraph (j) of the illustrative list attached to the Agreement.
Question 69
How are the subsidies granted by the Special Export Promotion Fund consistent with
the relevant WTO Agreement?
                                                     
*All the aforementioned texts are available at the WTO Secretariat (WT/ACC/DZA/4)
*Ibid.
*Ibid.
*Ibid.WT/ACC/DZA/13
Page 35
Reply
With regard to the Special Export Promotion Fund, our understanding of the relevant WTO
Agreements is that only the aid towards the cost of international transport of goods for export other
than agricultural products may be deemed prohib ited within the meaning of the SCM Agreement.
For further details, see the reply to question 64 above.
(h) Import duty drawback schemes
Question 70
Except for the goods that are subject to spec ial restrictions, are all other goods eligible
for the temporary admission scheme?  If not, please identify any other products, including HS
numbers, that are not eligible for the temporary admission scheme.
Reply
All goods (with the exception of those on which there is a total import ban) are eligible for the
temporary admission scheme for inward processing, provided that they are to be processed or require
additional labour.
Question 71
Are imports from all countries eligible for importation under the temporary admission
scheme without discrimination?
Reply
There is no discrimination regarding the origin or source of goods when authorizing or
applying the temporary admission scheme.
In practice, temporary admission authorizations are automatically given when the necessary
information has been provided.  No request has yet been refused.
Question 72
For each of the past three years, what is the total value of products admitted under this
scheme?
Reply
Over the last three years, around US$50 million of goods have been imported for inward
processing under the temporary admission scheme.
Question 73
Are temporary admission authorizations auto matically granted to all applicants who
provide the requested information, or are they  issued at the discretion of the customs
administration?  Please describe the criteria for granting a temporary admission authorization.
Are these criteria published, if so where?WT/ACC/DZA/13
Page 36
Reply
Temporary admission authorizations are automatically granted to all applicants who provide
the necessary information.
Any enterprise established in Algeria which imports goods to be incorporated in the
compensating products or to be used to manufacture such products is eligible for this scheme.
The goods eligible for this scheme are raw materials, semi-finished products, components,
production aids, materials and tools used to manufacture products for export.
Granting of temporary admission by the customs service is subject to an application
accompanied by a copy of the export contract or any other document constituting a firm export order,
as well as technical specifications for the manufacture of the compensating product.
An authorization under this scheme is subject to a declaration of temporary admission and
deposit of  security whose amount is fixed by the customs-tax collector.  The declaration must be inthe name of the importer who will use the importe d goods or an agent approved by the customs
service.
Question 74
Is the drawback regime applicable to all goods and materials?
Reply
According to Articles 190-192 of the current Cu stoms Code, the drawback regime allows the
repayment of duties and taxes on imported goods used to manufacture products exported.
Consequently, only materials, inputs and other intermediate goods used during the manufacturing
process are eligible for the reimbursement of the duties and taxes paid at the time of import.
3. Internal policies affecting foreign trade in goods
(a) Industrial policyQuestion 75
The reply to question 82 of WT/ACC/DZA/4 states that Algeria intends to modify its gas
pricing so that the price will be negotiated between the producer and the user.  What is thetimetable for modification?  What is the relationship between (1) the domestic price of natural
gas and petrochemical feedstocks produced in Algeria and (2) the export or world price of such
products?
Reply
The policy on fixing the price of gas (either the raw material or in its final form) on the
domestic market is determined by the Government.
The prices applicable are fixed in an Executive Decree published in the Journal Officiel and
applied to all users without any discrimination.
Executive Decree No. 98-265 of 29 August 199 8 (Annex 6) recently introduced changes in
the tariff structure and these became effective on 1 September 1998.  They concern the following:WT/ACC/DZA/13
Page 37
- Gas used for the production and public distribution of electricity.  The current price
will be increased by three per cent per year as from September 1999 (Article 2 of the
above-mentioned Decree);
- gas used to supply liquefaction and gas treatment facilities, as well as for transport by
pipeline and refining (Article 3 of the Decree);
- supply of petrochemical and fertilizer industries.  The price will be increased by 25
per cent per year as from 1 September 1999 up until 1 September 2002 (Article 7 of
the Decree).
The text of the aforementioned Decree is annexed for consultation by the Members of the WTO.
Petrochemical products are sold on the domestic market at prices fixed freely by the
producers without any intervention from the Government.
When these products are exported, their prices are governed by international market forces.
Question 76
The reply to question 88 regarding fiscal in centives in the hydrocarbon sector states that
the fees and taxes in (a) and (b) are based in part  on technical criteria.  Please describe these
technical criteria.
Reply
Article 11 of Law No. 91-92 of 4 December 1991 on reform of the legal structure of the
hydrocarbon sector allows for reductions in the charges and profits tax when prospecting and
exploitation call for special efforts.  The scale of these efforts is assessed on the basis of technical
criteria.
These technical criteria are defined in Executive Decree No. 95-417 of 16 December 1995,
published in the Journal Officiel (Annex 7).  They can be summarized as follows:
1. Geographical criteria
The exploitation of deposits situated in zones characterized by the following are eligible for
reduction under these criteria:
- Topographical problems and extremely complex geology;
- a low level of knowledge of the mining sector;
- long distance between the deposits and the starting point of the transport
infrastructure.
2. Economic criteria
Petroleum operators who utilize the following procedures meet these criteria:
- Enhanced recovery under tertiary conditions;  or
- recovery in compact hydrocarbon reservoirs;  orWT/ACC/DZA/13
Page 38
- extraction and treatment of solid hydrocarbons;  or
- exploitation of very deep reservoirs.Decree No.  95-417 of 16 December 1995 on technical criteria is annexed.
Question 77
What are the current prices of butane and propane intended for the domestic market?
How are they determined?
Reply
The prices of butane and propane are currently fixed by Executive Decree No. 97-407 of
3 November 1997.  According to this Decree, the current prices are the following:
Butane:  DA 2,362/metric tonne, excluding tax;
Propane:  DA 2,362/metric tonne, excluding tax.
These prices apply indiscriminately to the domestic market.  They are fixed according to the
following procedure:
- Interested operators present studies or revised prices to the Ministry of Energy for its
consideration and opinion;
- the report of the relevant services of the Ministry of Energy is put before an
interministerial committee comprising experts from the Ministries of Energy, Financeand Trade, so that they can give an opinion;
- the prices proposed by this committee are communicated to the Competition Council
for its endorsement;
- if the Council endorses the proposals, the Government adopts the new prices in the
form of an Executive Decree.
The text of the above-mentioned Decree No. 98-107, is annexed for consultation by the Members of
the WTO (Annex 8).
(b) Technical regulations and standards, including import measures at the border
Question 78
According to the reply to question 41 of WT/ACC/DZA/4, Executive Decree No. 96-354
of 19 October 1996 provides that any product with an expiry date must, on the date ofinspection, possess a durability exceeding 80 per cent  of its life.  Is marking the shelf-life date a
mandatory requirement in Algeria or is it applied on a voluntary basis?
Reply
In Algeria, marking the shelf-life date is mandatory (Article 7 of Executive Decree
No. 96-354, on procedures for monitoring the conformity and quality of imported products, available
at the WTO Secretariat).WT/ACC/DZA/13
Page 39
Question 79
Do manufacturers determine the "use by" or  "sell by" dates?  Is a distinction made
between highly perishable products and shelf-stable food products?
Reply
It is the responsibility of the manufacturers to determine the "use by" and "sell by" dates.  At
present, there is no distinction between highly  perishable products and shelf-stable products.
Question 80
What is the rationale for requiring produc ts bearing an expiry date to possess a
durability of more than 80 per cent of their life on the date of inspection?
Reply
The requirement that an imported product should possess a durability of more than 80 per
cent of its life has been made necessary for the following reasons in particular:
- The authorities' desire to draw importers' attention to the need to ensure the quality of
the products they buy;
- the inexperience of many importers who embarked on international trade transactions
without any preparation following the adoption of the measures on the rapid
liberalization of foreign trade in 1995;
- the lack of experience of Government officials responsible for monitoring quality and
for consumer protection;
- the inflexibility of local distribution chains, with products remaining for long periods
in the ports or in the commercial distribution network.
For the foregoing reasons, the trade authorities preferred to adopt high standards for the expiry date of
products in order to prevent as far as possible the risks that consumers might face at the end of the
distribution chain.  It is, however, possible that this measure may be gradually and selectively
reviewed in order to adapt it to the specific ma rket requirements for each product and so avoid any
unnecessary technical obstacle to trade.
Question 81
When does Algeria plan to harmonize its date marking requirements with the date
marking guidelines in the manuals or guides to the Codex Alimentarius?
Reply
Algeria will harmonize its date marking requirements with those in the manuals or guides to
the Codex Alimentarius as the constraints justifying the current measure are eliminated.
Algeria fully agrees that the most stringent standards must be imposed on many aspects of
trade in food products (packaging, marking, transport, presentation, etc.) and not only on the expiry
dates.WT/ACC/DZA/13
Page 40
Question 82
How does Algeria intend to remedy the deficiencies described in the reply to
question 101 of WT/ACC/DZA/4, page 52?
Question 83
In the replies to questions 100 and 101 (WT/ACC/DZA/4), Algeria indicates that the
Standardization Law does not provide for publication of voluntary standards in draft.  Will
Algeria amend its law in order to comply with the WTO obligations to publish proposed
standards for public comment and take those comments into consideration before final
adoption?  If so, when will Algeria undertake this amendment?
Question 84
On what basis is it determined that a standard is going to be published as an approved
(compulsory) standard or as a registered (volun tary) standard?  Are there general guidelines
used by agencies or ministries in this regard?  If so, please identify.
Reply (to questions 82, 83 and 84)
The Algerian Standardization Institute (IANOR) was recently set up by Executive Decree
No. 98-69 of 21 February 1998 (on the creation and constitution of the IANOR).  This Decree is
attached to Annex 3 (Standardization).
The Institute is the result of the restructuring of the Algerian Standardization and Intellectual
Property Institute (INAPI).
Part of IANOR's work programme is to remedy the deficiencies in the Algerian
standardization system in comparison with international practices, in particular the following:
- Adaptation of legislative and regulatory texts to meet the requirement on making
draft standards proposed for registration subject to an enquiry (point L in the reply to
question 101 of WT/ACC/DZA/4, page 52);
- adoption of ISO Directives on the functioni ng and organization of standardization
work;
- the establishment of procedures to allow the exchange and dissemination of work
programmes within the time-limits;
- preparation of an application for membership of ISONET;- the provision of adequate means to allow publication time-limits to be respected.
(c) Sanitary and phytosanitary measures
Question 85
According to the replies to question 45 of WT/ACC/DZA/4, animal products and
products of animal origin are subject to sanitary inspection on entry to or departure from
Algeria.  Please describe the procedures used for the sanitary inspection of these imported
products.WT/ACC/DZA/13
Page 41
Reply
Health inspection procedures at the border for imported live animals, animal products and
products of animal origin include the following:
- Checking veterinary documents required by the existing rules;
- monitoring of health quality in the case of animal products or products of animal
origin, supplemented by laboratory analysis of samples as deemed necessary;
- impoundment of dubious products by the customs;
- where necessary, quarantine of live animals;
- monitoring compliance with the requirem ents on prior disinfection of transport
facilities for live animals, animal products and products of animal origin.
Details of the veterinary inspection procedures on entry to or departure from Algeria are set
out on pages 19 and 20 of WT/ACC/DZA/4 in reply to question 41.
The relevant texts (Law No. 88-08 on veterina ry medicine and the protection of animal
health, and Decree No. 91-452 of 16 November 1991 on veterinary inspection at border posts) areavailable at the WTO Secretariat.
Question 86
Does Algeria have a system of sanitary inspection for domestically produced animal
products or products of animal origin for sale within Algeria?  If so, please describe these
procedures.
Reply
As is the case for imported live animals and products of animal origin, Algeria has a
veterinary inspection system for locally-produced live animals, animal foodstuffs or foodstuffs ofanimal origin intended for human consumption and so ld within Algeria.  This system is governed by
Law No. 88-08 and Executive Decree No. 95-363 of 11 November 1995 (these texts are available at
the WTO Secretariat).
The following are subject to veterinary inspection:
- Animals sent to abattoirs, fairs, markets and exhibitions;  animals to be used for
human consumption, namely:
- poultry and domesticated birds;
- domesticated rabbits;
- game;
- products of the sea and fresh water;
- animal foodstuffs from the aforementioned animals intended for sale for human
consumption, as well as their skin, hair, feathers and appendages of the skin;WT/ACC/DZA/13
Page 42
- foodstuffs of animal origin, including food products produced naturally by animals,
such as milk, eggs and honey, or processed, as well as animal foodstuffs put up for
sale after treatment or processing, whether or not mixed with other products;
- abattoirs, cattle markets and fish shops;
- premises for the processing, packaging, conservation and distribution of animals or
animal foodstuffs or foodstuffs of animal origin;
- food outlets of any type which utilize animal foodstuffs or foodstuffs of animal origin.
Veterinary inspection of live animals, animal foodstuffs or foodstuffs of animal origin is
carried out by the veterinary inspector or an agent duly authorized by the Algerian veterinary
authorities.
Animals for slaughter and poultry sent to abattoirs, with the exception of game, must be
presented by their owners for control of conformity  with health standards, both before and after
slaughter.
All the texts concerning the control and inspection mechanism apply without discrimination
to all products irrespective or origin, whether imported or locally produced.
4. Polices affecting foreign trade in agricultural products
Supporting Table DS:1
Question 87
Could Algeria please describe in further detail how the domestic support schemes under
each description heading are operated and implemented?  Could Algeria specify what
department is responsible for administering each domestic support scheme?
Reply
The description of the measures in Table DS:1, which is available at the WTO Secretariat
under the symbol WT/ACC/SPEC/DZ A/2, covers all the aspects of measures not subject to
commitments on binding or reduction (green box measures set out in Part IV, Article 6, of the
Agreement on Agriculture).
The information given in the table covers all the headings in the agricultural authorities'
operating budget (payment of salaries and maintenance) and spending on infrastructure.
The breakdown by areas of intervention is based on the government spending allotted to each
department so as to be consistent with the explanatory table DS:1, attached to Technical
Note WT/ACC/DZA/4.
The operating budget of the Ministry of Agriculture and Fisheries is administered by the
Directorate of Administration and Resources and the infrastructure budget by the Planning Directorateof the Ministry of Agriculture and Fisheries.WT/ACC/DZA/13
Page 43
Question 88
How long will Algeria require to communicate detailed information on domestic support
and export subsidies?  (See DS:2, DS:8, ES:1)
Reply
The evaluation of domestic support and export subsidies, covered by Article 6 in Part IV and
Article 9 in Part V of the Agreement on Agriculture, is under way.  The detailed information will be
transmitted as soon as this evaluation has been concluded.
Question 89
Algeria has reported in WT/ACC/DZA/1, on the one hand, that only a few products
(milk, semolina and flour) are not covered by th e free price regime and, on the other, that it
plans total liberalization of prices before the end of 1998 under its IMF obligations
(WT/ACC/DZA/2).
Has this occurred?  Can Algeria make a comm itment to the WTO on total liberalization
of the prices of all products if this has not already occurred?
Reply
Algeria has made great progress in liberalizing the prices of food products in accordance with
the commitments undertaken under the structural adjustment programme carried out with the support
of the International Monetary Fund (IMF).
It does not, however, intend to make a commitment to the WTO on liberalization of the prices
of all products.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
Question 90
Could Algeria produce, prior to the next meeting of the Working Party, a text listing
intellectual property obligations contained in the TRIPS Agreement and indicate, in a parallel
list, what provisions of Algerian law satisfy the requirements.WT/ACC/DZA/13
Page 44
Reply
Copyright and Related Rights
Provisions of the
TRIPS AgreementCorresponding provisions in
Algerian legislationComments on the conformity of Algerian
legislation with the provisions of the TRIPS
Agreement
Article 9.1 Order No. 97-10 of
6 March 1997 on copyright and
related rightsThe provisions in this Order are in
conformity with those in the Berne
Convention, to which Algeria acceded in
1997.
Article 9.2 Article 7 of Order N o. 97-10 Provisions in conformity
Article 10.1 Article 4(a) of Order No. 97-10 Provisions in conformity
Article 10.2 Article 5 of Order N o. 97-10 Provisions in conformity
Article 11 Article 27 (paragraph 2) of
Order No. 97-10The principle of granting an exclusive rental
right to the authors of computer programs
and audiovisual works is contained in
Algerian legislation without the restrictions
allowed under the TRIPS Agreement.
Article 13 Articles 29-54 of Order
No. 97-10Provisions in conformity
Article 14.1 Article 109 of Order No. 97-10 Provisions in conformity
Article 14.2 Article 114 of Order No. 97-10 Provisions in conformity
Article 14.3 Article 118 of Order No. 97-10 Provisions in conformity
Article 14.5 Articles 122 and 123 of Order
No. 97-10Provisions in conformity with regard to the
term of protection for performers and
producers of phonograms.
For broadcasting organizations, the term of
protection under Algerian legislation islonger than that provided in the TRIPS
Agreement (50 years).
Article 14.6 Article 121 of Order No. 97-10 P rovisions in conformity except for
application of Article 18 of the Berne
Convention on the rights of performers and
producers of phonograms (see the reply to
question 94).
Article 41 Order No. 97-10 of
6 March 1997 on copyright andrelated rights;  Code of Civil
ProcedureThese texts include procedures to ensure
respect for intellectual property rights.
Articles 42 and 43 Articles 32-39 of the Code of
Civil Procedure and Article 143
of Order No. 97-10 on copyright
and related rights.
Article 44 Article 144 of Order No. 97-10 Provisions in conformity
Article 45 Articles 143 and 157 Provisions in conformity
Article 46 Article 147 Provisions in conformity
Article 47 Not provided under Algerian
legislationWT/ACC/DZA/13
Page 45
Provisions of the
TRIPS AgreementCorresponding provisions in
Algerian legislationComments on the conformity of Algerian
legislation with the provisions of the TRIPS
Agreement
Article 48 Article 41 of the Civil Code If rights have been infringed, the courts
may, at the request of the injured party,
award compensation for the injury suffered
as a result of the abusive use of theprocedures.
Article 49 Not provided under Algerian
legislation
Article 50 Articles 144 and 146 of Order
No. 97-10Provisions in conformity
Articles 51-60 Not provided under Algerian
Legislation
Article 61 Articles 149-158 of Order No.
97-10Provisions in conformity
Marks, Industrial Designs and Appellations of Origin
Area Provisions of the
TRIPS AgreementCorresponding
Algerian legislationConformity with the TRIPS
Agreement
Part I:  General provisions and basic principles
Articles 1-8 Order No. 66-48 of
25 February 1996 on
accession to the Paris
Convention
Order No. 72-10 of
22 March 1972 on
accession to certain
Arrangements
Decree No. 84-85 of
21 April 1984 on
accession to theNairobi TreatyAlgeria applies the following
agreements:
- Paris Convention for the
Protection of Industrial
Property;
- Madrid Agreement
concerning the International
Registration of Marks;
- Nice Agreement concerning
the International
Classification of Goods and
Services;
- Madrid Agreement for the
Repression of False or
Deceptive Indications of
Source on Goods;
- Lisbon Agreement for the
Protection of Appellations
of Origin;
- Nairobi Treaty on the
Protection of the Olympic
Symbol.WT/ACC/DZA/13
Page 46
Area Provisions of the
TRIPS AgreementCorresponding
Algerian legislationConformity with the TRIPS
Agreement
Part II:  Standards concerning the availability, scope and use of intellectual property rights
Algerian legislation is in
conformity with the
requirements in section 2 as far
as the following are concerned:
Section 2:  Trademarks
Articles 15-21 Order No. 66-57 of
19 March 1966 and
Decree No. 66-63 of
26 March 1966
implementing theaforementioned Order
No. 66-57- Definitions;
- use not obligatory before
registration
Subject matter ofprotectionArticle 15
Article 15Articles 1 and 2 of
Order No. 66-57
Article 17 of Order
No. 66-57- The nature of products and
services which do not
present an obstacle to
registration;
- obligation to publish marks
registered;
Article 6 of Order
No. 66-57- possibility of demanding
the cancellation of a mark
after registration
Rights conferred Article 16 Article 5.1 of Order
No. 66-57- The right of ownership
conferred by the registration
of a mark;
Article 16 Article 6 of Order
No. 66-57- right to bring proceedings
for infringement and
unlawful imitation;
Exceptions Article 17 Article 3 of Order
No. 66-57- Use of a patronymic by a
person with the same name
does not infringe the rights
of the owner of the mark if
it is used in a such a way asnot to cause confusion.
Term ofprotectionArticle 18 Article 20 of Order
No. 66-57- Requirement on a minimum
term of protection (7 years).
The mark is protected for a
term of 10 years with the
possibility of indefinite
renewal.
OtherrequirementsArticle 20 There is no other requirement for
the use of a mark.WT/ACC/DZA/13
Page 47
Area Provisions of the
TRIPS AgreementCorresponding
Algerian legislationConformity with the TRIPS
Agreement
Licensing andassignmentArticle 21 Articles 24 and 25 of
Order No. 66.57In conformity:  a mark may be
assigned without any obligation
to transfer the enterprise that
owns it.
Section 3:  Geographical indications
Articles 22-24 Order No. 76-65 of
16 July 1976 on
appellations of originIn conformity:  Algerian
legislation contains measures to
prevent the unlawful use of an
appellation of origin or its use insuch a way as to mislead the
public regarding the true origin
of a product.
Article 22 Article 1 of Order
No. 76-65The definitions are in
conformity.
Article 22 Articles 21-23 of
Order No. 76-65The legal measures allowing
interested parties to prevent the
use of misleading expressionsregarding the origin of a product
are in conformity.
Refusal to register a mark
containing a geographical originis allowed under the legislation
on  marks, pursuant to Article 4
of Order No. 66-57.  The
legislation on marks gives the
possibility of bringing
proceedings to cancel the
registration of a mark containingindications likely to mislead the
public regarding the origin of a
product (Article 22).
Additionalprotection for
wines and spiritsArticle 23 Articles 21 and 28 Algerian legislation provides
legal means to allow interested
parties to prevent use of a
geographical indication forwines not originating in the place
indicated.
The legislation on marks gives
possibility of bringingproceedings to cancel the
registration of a mark containing
indications likely to mislead the
public regarding  the origin of a
product (Article 22).WT/ACC/DZA/13
Page 48
Area Provisions of the
TRIPS AgreementCorresponding
Algerian legislationConformity with the TRIPS
Agreement
InternationalnegotiationsThe protection of geographical
indications could be
strengthened through a
multilateral system for the
notification and registration ofgeographical indications for
wines and spirits.
Section 4:Industrial designsArticles 25-26 Order No. 66.86 of
28 April 1966 on
industrial designs,
Article 1In conformity with the
Agreement:  only new industrial
designs benefit from protection.
Requirements for
protectionArticle 25 Industrial designs that have
technical or operational elements
are not protected under thisframework (refer to the
legislation on patents).
Industrial designs for textiles
enjoy the protection granted;
additional protection for
clothing, fashion and articles of
personal adornment is grantedunder the legislation on
copyright and related rights
(Article 4, paragraph (i) of Order
No. 97-10 of 6 March 1997).
Protection Article 26
Article 26
Article 26
Article 26Article 2 of Order
No. 66-86 on industrial
designs
Article 23 of Order
No. 66-86 on industrial
designs
Article 25 of Order
No. 66-86 on industrial
designs
Article 13 of Order
No. 66-86 on industrial
designsForeigners and nationals are
given the same rights (foreigners
must be represented by an agentin Algeria).
Any infringement of the rights of
the owner of an industrial design
constitutes the offence ofinfringement and is punished by
the law (fine and imprisonment
for repeat offences).
The exceptions concerning
events prior to filing do not give
the right to bring any criminal or
civil proceedings.
The duration of protection is the
same as that under the
Agreement (10 years).WT/ACC/DZA/13
Page 49
Area Provisions of the
TRIPS AgreementCorresponding
Algerian legislationConformity with the TRIPS
Agreement
Part III:  Enforcement of Intellectual Property Rights
Section 1:  General obligations
Articles 41 and 61
Articles 23-28(ODM)
Articles 28-30
(OAO)Articles 28-37 (OM) In conformity:  Algerian
legislation includes measures toprevent the illegal use of rights
conferred by registration;  the
rights are guaranteed through
legal and administrative
proceedings (written andsubstantiated rulings by the
courts, imprisonment and fines,
appeals mechanism open to all
parties, destruction of counterfeit
goods and implements used tomake the infringing goods).
Section 2:  Civil and administrative procedures and remedies
Articles 42-49 Articles 23, 34-39
(OM)Articles 24-28 (ODM)
Code of Civil
ProcedureIn conformity:  procedures
allowing representation bycounsel, communication of
information between the parties,
evidence, injunctions, damages,
indemnification of the defendant,
all apply in Algeria.
Sections 3 and 4:  Provisional measures and border measures
Article 50 Article 38 (OM)
Articles 26-27 (ODM)
Code of CivilProcedure and
Customs CodeIn conformity:  preventive
seizure and referral to a judge in
chambers are applied inconformity with the provisions
of the Agreement;  the time
given to the owner of the right to
bring proceedings before the
competent judicial authorities isone month, in conformity with
that fixed in the Agreement.
Part IV:  Acquisition and maintenance of intellectual property rights
Article 62 Articles 13-20 of
Order No. 66-57 on
marksProcedures and formalities for
the acquisition and maintenance
of rights are in conformity with
those defined in this Article.
Articles 9-16 of OrderNo. 66-86 on industrial
designsAdministrative decisions on the
acquisition and maintenance of
rights may be the subject of an
appeal before the administrativetribunal or the Council of State.
Articles 8-17 ofOrder No.76-65 on
appellations of origin
Note:
*O.M.:  Order on marks
*O.DM.:  Order on industrial designs
*O.A.O.: Order on appellations of originWT/ACC/DZA/13
Page 50
Patents
Requirements and provisions
of the TRIPS AgreementAlgerian intellectual property
legislationComments
Part 1:  General Provisions and Basic Principles
Article 2:  Intellectual property
conventionsAlgeria has been a member of
the Paris Convention since
1 March 1966.
With the exception of somelacunae due to the legislative
and regulatory structure in place
since 1993, there is no
inconsistency with the
corresponding provisions in theTRIPS.
Article 3:  National treatment In conformity.
Article 4:  Most-favoured-nation treatmentLegislative Decree No. 93-17
of 7 December 1993 on theprotection of inventions.
Article 8:  Principles Articles 24-26
Part II:  Standards concerningthe availability, scope and useof intellectual property rightsDecree No. 93-17:
Article 12(1), (2), (3);Article 13;
Article 14.
Article 30: Exceptions to rightsconferredArticle 9 of Legislative Decree
No. 93-17, in conformity.
Article 33:  Term of protection Article 24, paragraph 2.
Part II, Section 8:  Control of
anti-competitive practices in
contractual licences, Article 40.
Part III:  Enforcement ofintellectual property rights,
Civil and administrative
procedures and remedies.Articles 31-36 of Decree
No. 93-17 are in conformity
with the TRIPS provisions.
Code of Civil Procedure and
Criminal Code.
Question 91
Please provide a table showing for each part and section of the TRIPS Agreement the
differences between Algerian legislation and the obligations in the TRIPS Agreement together
with the timetable for bringing the legislation into conformity with these obligations.WT/ACC/DZA/13
Page 51
Reply
Copyright and Related Rights
Provisions of the
TRIPS AgreementCorresponding
provisions in Algerian
legislationComments on the
compatibility of
Order No. 97-10
of 6 March 1997 on
copyright and related
rights with the
obligations in the
TRIPS AgreementMeasures planned
Article 14.4 Article 113 Algerian legislation
does not recognize a
rental right to
producers of
phonograms nor to
other owners of rightsin the phonograms.Algeria will bring its
legislation into
conformity with the
relevant provisions of
the TRIPS Agreement.
Article 48 Article 41 of the Civil
CodeIf rights have been
infringed, the courts
may, at the request of
the injured party,
award compensation
for the injury sufferedas a result of the
abusive use of the
procedures.
Articles 51-60 Algerian legislation
does not contain any
special provisions on
imported goods thatinfringe copyright or
related rights.WT/ACC/DZA/13
Page 52
Trademarks, Industrial Designs and Appellations of Origin
Area Provision of the TRIPS
AgreementCorresponding
Algerian legislationConformity with the
provisions of the
TRIPS Agreement
Requirement of use Article 19 Ar ticle 5(2) Algerian legislation
does not provide forthe minimum period of
three years during
which cancellation of a
mark may not be
requested for non-use,
as called for by
Article 19 of theAgreement.  The
period is currently
one year but will be
extended to 3 years
before Algeria accedesto the WTO.
Other requirements Article 20 There is no other
requirement for use of
a mark.
Patents
Requirements and provisions of
the TRIPS AgreementAlgerian intellectual property
legislationMeasures planned
Part I:  General provisions and basic principles
Article 1:  Nature and scope of
obligationsThe protection conferred under
Algeria's existing legislation
does not cover sections 6 and 7of the TRIPS Agreement.Algeria will adopt special
legislation
Part II:  Standards concerning the availability, scope and use of intellectual property rights
Section 5:  Patents (Articles 27-34)Legislative Decree No. 93-17 of
7 December 1993 on the
protection of inventionsAlgeria will adapt its legislation
Article 27:  Patentable subject
matterArticles 3-6 on the criteria for
patentabilityIdem
Article 7 on exclusions from
patentability
Article 8:  exclusion of plantvarieties and pharmaceutical
products from patentabilityIdem
Article 28:  Rights conferred Algerian legislation (Article 11
of Decree No. 93-17) does not
give the right to prevent a thirdparty from importing the
product patentedAlgeria will adapt its legislation
to the TRIPS Agreement
Article 29:  Conditions onpatent applicantsIdemWT/ACC/DZA/13
Page 53
Requirements and provisions of
the TRIPS AgreementAlgerian intellectual property
legislationMeasures planned
Article 31:  Other use without
authorization of the right holderSection 2 of Decree No. 93-17:
Articles 25 and 26 are in
conformity.  Nevertheless,
control by the judicialauthorities is not provided as
Algerian legislation is based on
the Paris Convention and it will
have to be addedIdem
Idem
Article 32:
Revocation/forfeitureArticles 29 and 30 are not in
conformityIdem
Article 34:  Process patents:
burden of proofThere is no such provision in
Algerian legislationIdem
Part II/Section 6:  Layout
designs (topographies) of
integrated circuits (Articles 35-38)Algeria does not have any
legislation on legal protection in
this particular areaAlgeria will adopt special
legislation
Part II/Section 7:  Protection of
undisclosed information
(Article 39)Idem Idem
Part III:  Enforcement of
intellectual property rightsArticles 31-36 of Decree
No. 93-17 are in conformity,
but need to be supplemented in
order to adapt them to the
TRIPS AgreementAlgeria will adapt its legislation
(c) Membership of international conventions and regional or bilateral agreements on
intellectual property
Question 92
Algeria is member of a limited number of in ternational conventions on the protection of
intellectual property.  Does Algeria intend to accede to international intellectual property
conventions such as the Berne Co nvention for the protection of literary and artistic works, the
Rome Convention on the protection of performers, producers of phonograms and broadcasting
organizations, etc.?  Does Algeria intend acceding to international conventions (on intellectual
property) of which it is not a member wi th a view to its accession to the WTO?
Reply
Algeria is currently considering accession to several international conventions of which it is
not yet a member.
It should be noted in relation to copyright that  Algeria ratified the Berne Convention for the
protection of literary and artistic works (Paris Act in 1997).  This accession entered into force on
19 April 1998.
The Rome Convention has not yet been ratified.  Nevertheless, related rights are already
protected in Algeria under Order No. 97-10 of 6 March 1997 on copyright and related rights
(available at the WTO Secretariat).WT/ACC/DZA/13
Page 54
2. Substantive standards of protection, in cluding procedures for the acquisition,
maintenance and exercise of intellectual property rights
Question 93
Please provide information on the status of application of national treatment and most-
favoured-nation treatment to foreigners in the ar ea of copyright and related rights.  According
to Article 9 of the TRIPS  Agreement, Members must comply with Articles 1 through 21 and the
Appendix to the Berne Convention;  accession to the WTO would necessarily imply that
protection be extended to the works of nationals of countries members of the Berne Convention
and the works of the nationals of countries that are not members of the Berne Convention
according to the terms set out in Ar ticles 3-6 of the Berne Convention.
Reply
Algeria has been a member of the Berne Convention since 19 April 1998, consequently
nationals of countries members of the Berne Union enjoy the same protection granted to Algerian
nationals according to the terms of Articles 3-6 of the Berne Convention.
On Algeria's accession to the WTO, this protection will of course be extended to nationals of
countries Members of the WTO that are not members of the Berne Convention, in accordance with
Article 9 of the TRIPS Agreement.
Question 94
Has the Order on copyright and related rights  referred to in the replies, which appears
to modify Order No. 73-14 of 3 April 1973 in respect of many aspects (term of protection,
categories of works protected, sanctions, …) already been adopted or is it still awaitingadoption?  This is not clear from the replies gi ven in the document where it is sometimes stated
that it will shortly be adopted and, as in the reply to question 142, that it has already been
adopted or that the new legislation is fully in  conformity with the Berne Convention.  Please
provide further details on the status of application and the substance of the new Order on
copyright and related rights mentioned above.
Reply
Order No. 73-14 of 3 April 1973 has been repealed and replaced by Order No. 97-10 of
6 March 1997 on copyright and related rights and the latter is now in force.
With regard to copyright, this Order came into effect immediately it was enacted.  The
provisions on related rights came into effect on 1 January 1998.
Question 95
Is Algerian legislation in conformity with Article 4 of the TRIPS Agreement protecting
performers, producers of phonograms and broadcasting organizations?
Reply
Order No. 97-10 of 6 March 1997 on copyright and related rights protects the rights of
performers, producers of phonograms and videograms, and broadcasting organizations
(Articles 109-123).WT/ACC/DZA/13
Page 55
The differences between Algerian legislation and Article 14 of the TRIPS Agreement are the
following:
- Protection under related rights is also given to producers of videograms;
- in Algeria, the rights recognized to performers apply irrespective of the support used;
- performers and producers of phonograms are given a right to remuneration for
broadcasting and public communication, performances and phonograms;
- Algerian legislation fixes the term of protection for the rights of broadcasting
organizations at 50 years.
We believe that our legislation is in conformity on all these points.  Algerian legislation does
not, however, give producers of phonograms or other holders of rights in phonograms a rental right.
The first four points are not inconsistent with the relevant provisions of the TRIPS Agreement
because the protection granted in Algeria is broader.
On the other hand, when Algeria accedes to the WTO, it is proposed to include a right of
rental for producers of phonograms in the legislation on copyright and related rights, as called for by
Article 14 of the TRIPS Agreement.
Question 96
Does Algerian legislation grant retroactive protection for foreign phonograms and other
works benefiting from other protection in accordance with Article 14.6 of the TRIPSAgreement?
Reply
Algeria's accession to the Berne Convention became effective on 19 April 1998.
Consequently, all foreign works that did not come under the public domain in their country of origin
on that date are given retroactive protection in Algeria according to the provisions of the BerneConvention.
Protection of the rights of producers of phonograms is not yet guaranteed because Algeria has
not acceded to the relevant international conventions.
(b) Trademarks, including service marks
Question 97
Please provide further information on what is meant by "left to the judgement of the
competent authority".  Do the public authoritie s have discretionary powers?  What are the
limits of these?  What legislation is in force:  Algerian or international?WT/ACC/DZA/13
Page 56
Reply
The exceptional cases that might justify non-use of a mark by its owner within the period laid
down in Algerian legislation are general cases such as import restrictions or force majeure ;  the public
authorities do not have any discretionary powers.
Competent authority means the court, which is the only authority entitled to decide on the
cancellation of registration (see Article 23 of Order No. 66-57 of 19 March 1996 on marks).
(c) Geographical indications, including appellations of origin
Question 98
Does Algeria intend to enhance the protection of wines and spirits as called for by
Article 23 of the TRIPS Agreement, which provides for additional protection that does not
appear to be the case in Algerian legislation?
Reply
Algerian legislation gives interested parties le gal means to prevent the use of a geographical
indication for wines that do not originate in the place indicated.
The possibility of bringing proceedings for cancellation of registration of a mark that contains
indications likely to mislead the public on the origin of wines and spirits is given in the legislation on
marks (see Article 22).
The protection of geographical indications for wines and spirits could be reinforced by a
multilateral system of notification and registration.
(d) Patents
Question 99
Does Algeria recognize that the exclusion of pharmaceutical products from patentability
is inconsistent with Article 27 of the TRIPS Agreement?
Reply
The exclusion of pharmaceutical products from patentability is contrary to Article 27 of the
TRIPS Agreement.  It is planned to bring the rele vant Algerian legislation into conformity after
accession to the WTO.
(g) Layout designs of integrated circuits
(h) Requirements concerning undisclosed information, including trade secrets and test data
Question 100
The reply to question 135 of WT/ACC/DZA/2 states that in Algeria integrated circuits
do not enjoy any protection.  The WTO texts provide for protection of integrated circuits under
Article 35 of the TRIPS Agreement.WT/ACC/DZA/13
Page 57
The reply to question 137 of WT/ACC/DZA/2 states that Algerian law currently does
not provide for the protection of undisclosed information or other data in the context of the
authorization to place pharmaceutical products  and agricultural chemicals on the market.
Does Algeria intend to provide such protecti on in order to comply with international
practices?  Article 39 of the TRIPS Agreement will require such protection upon accession to
the WTO.
Please describe what Algeria has done in the past year to address the deficiencies
identified by the WTO members vis-à-vis  Algeria's conformity with the TRIPS Agreement.
Question 101
Does Algeria intend to protect integrated circuits?
Reply:  (to questions 100 and 101)
Algeria will adopt special legislation on undisclosed information and integrated circuits so as
to give them protection consistent with the requirements of the TRIPS Agreement.
Question 102
Does Algeria agree that undisclosed information should be protected in the context of
the TRIPS Agreement?
Reply
Algeria intends to adopt special legislation in conformity with the relevant provisions of the
TRIPS Agreement.
4. Enforcement
Question 103
It is stated that Article 50 of the TRIPS Agreement is respected in practice.  Please
provide further information on these provisions in Algerian law.
Reply
Order No. 97-10 of 6 March 1997 on copyright and related rights includes provisions
allowing the judicial authorities to order prompt and effective provisional measures against the
infringement of copyright and related rights as called for by Article 50 of the TRIPS Agreement.
Article 144 of the Order provides that the owne r of a right suffering injury may request the
courts to take preventive measures to counter any imminent infringement of his rights or to cease the
infringement.
The right holder may also turn to police officers or sworn agents of the National Office of
Copyright and Related Rights, who are empowered to  seize the infringing copies as a preventive
measure.  If this is done, proceedings must be broug ht before the judicial authorities immediately and
the latter must make a ruling on the seizure within three days from the date on which the matter was
referred to them (Article 146).WT/ACC/DZA/13
Page 58
VI TRADE-RELATED SERVICES REGIME
1. General(i) Insurance servicesQuestion 104
What level of cessions for reinsurance of are required?  Does the Algerian Government
plan to eliminate such cessions?
Reply
The mandatory cession rates and the beneficiary are defined in Articles 3 and 4 of Decree
No. 95-409 of 9 December 1992 as follows:
(i) The following are obligatorily ceded:At 80 per cent:
- Industrial risks related to the chemicals, petrochemicals, iron and steel, mechanical
and electronics industries;
- transport risks related to ships and aircraft.
At 40 per cent:
- Transport risks at maritime and air facilities.
At 25 per cent:
-O t h e r  r i s k s
(ii) Cession shall be to the Central Reinsurance Company (CCR)
The Government does not plan to eliminate the mandatory cession.
Question 105
Does the Government allow cross-border insurance cover, for maritime, air, transport
or travel insurance in particular?
Reply
Order No. 95-07 of 25 January 1995 on insurance states that the activity may only be carried
out by companies under Algerian law which are duly authorized (see Articles 204, 215 and 218).
In addition, Article 207 makes insurance obligatory in Algeria and prescribes that:  "persons
resident in Algeria, goods and risks in Algeria may only be insured by authorized companies".
Air, maritime or transport risks must be insured with authorized companies according to
Articles 192-198 of the Order.WT/ACC/DZA/13
Page 59
Because of the commercial presence provisions, the legal status of companies and the
obligation to insure in Algeria, Algerian legislation does not authorize the exercise of insurance
activities on a cross-border basis.
Travel insurance for non-residents is, however, allowed.
Question 106
What is required to receive authorization to act as an insurance broker or agent?
Reply
The requirements for exercise of the provision of broker or general agent are laid down in
Articles 252-268 of Order No. 95-07 of 25 January  1995 on insurance and Articles 4-21 of Decree
No. 95-340 of 30 October 1995.
Approval to act as a broker is subject to a decision by the Minister for Finance, whereas
insurance agents are authorized by the company they represent.
(i) Brokers
Under Articles 4-7 of the aforementioned Decree, applicants must fulfil the following
conditions inter alia :
- Be of Algerian nationality;- be at least 25 years of age;- possess the required professional qualifications (Articles 18 and 19 of the
aforementioned Decree);
- be able to show financial guarantees (DA 1,150,000 according to Article 20 of the
aforementioned Decree).
For legal persons, the requirements relate to the status of manager or partner and to the
company itself:
- The former (managers) must be of Algerian nationality, of at least 25 years of age and
possess the required qualifications (Articles 18 and 19 of the aforementioned Decree);
- the latter (partners) must:
- be of Algerian nationality;
- be resident in Algeria;
- be able to show the required financial guarantees (DA 1,500,000 each
according to Article 20 of the aforementioned Decree);
- for companies, applications for approval must contain the following inter alia :
- a copy of the articles of association;- a document proving that the capital has been paid up;WT/ACC/DZA/13
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- the professional certificates of the manager(s);
- documents showing the financial guarantees required of partners.
(ii) Insurance agents
The approval conditions are laid down in Articles 15-21 of the above Decree.  Like brokers,
insurance agents must meet the following conditions:
- Nationality;-a g e ;- financial guarantees (DA 500,000);- professional qualifications.
(iii) Impediments and incompatibilities
Article 263 of Order No. 95-07 of 25 January 1995 on insurance lists the impediments to the
practice of the profession of insurance intermediary.
Article 264 considers the profession of insurance intermediary to be incompatible with any
commercial activity or activity regarded as such by the law.
(ii) Health services
Question 107
Are foreign firms permitted to either own, operate or manage a medical facility?  If so,
what are the conditions/restrictions?
Are there any governmental restrictions on te lemedicine treatment by a foreign medical
organization (e.g. satellite transmission of an Algerian patient's X-rays or imaging photos fordiagnosis in the United States)?
Are there any restrictions on foreign oper ation of an ambulatory healthcare service?
Reply
In the context of investment by foreign firms in Algeria, there is no restriction on firms
possessing medical facilities for their own use, which they may manage and operate provided that
they are in conformity with Algerian legislation on public health and respect the standards applicable
to any infrastructure providing health services (hospi tals, clinics, health centres).  They must receive
the prior authorization of the Ministry of Health and the consent of the population.
As regards telemedicine, this type of health service is at an experimental stage in Algeria
among Algerian hospitals.  To date, the only tests with foreign organizations have been on the
occasion of seminars attended by specialists from the medical and academic worlds.
The Ministry of Health, in cooperation with th e Ministry of Posts and Telecommunications, is
studying how to regulate this activity and promote its development.WT/ACC/DZA/13
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With regard to allowing foreigners to provide ambulance services related to medical services,
the current practice is only to authorize health facilities (hospitals, clinics) to carry out this activity.
(iii) Telecommunications services
Question 108
In what service sectors may a private firm operate a basic telecommunications services
infrastructure?  Are there discriminatory limits on foreign investment?
Reply
In accordance with the relevant provisions of Order No. 97-89 of 30 December 1975
containing the Posts and Telecommunications Code, the public telecommunications infrastructure is
operated by the Posts and Telecommunications Administration.  There is no discrimination against
foreign investment.
Question 109
What, if any, institutions and regulations are in place to promote competition in basic
and value-added telecommunications sectors which are open to competition?  If none, are such
institutions and regulations under study at the present time?
Reply
For the moment, there are no institutions or regulations authorizing or organizing competition
in the operation of basic and value-added services.  A draft revision of the aforementioned Order,opening up certain telecommunications activities, is currently being prepared.  In addition, a decree on
the organization and regulation of Internet-type value-added services is being published.
Question 110
When does Algeria intend to allow unlimited private investment and competition in the
supply of basic and value-added telecommunications services?
Reply
The revision of the aforementioned Order will first be discussed in depth by the Government,
then put before the National Assembly after the Council of the Government has adopted it.
(iv) Tourism and handicrafts
Question 111
Has the law abolishing the nationality require ment for practising as a travel agent been
adopted and, if not, when is it planned to adop t it?  What category of service provider does the
abolishing of this requirement concern:  the direc tor of the travel agency?   The administrators?
Does the proposal also concern tourism faciliti es providing accommodation and tourist guides?
Reply
The nationality requirement for directors of travel agencies (holders of the operating licence)
under Law No. 90-50 on tourist and travel agencies is still in effect.WT/ACC/DZA/13
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Possible revision to eliminate the nationality requirement is being considered.
The post of director of an establishment providing accommodation is not subject to the
nationality requirement but needs an authorization issued by the Minister for Tourism in accordance
with Article 9 of Executive Decree No. 92-101 of 3 March 1992 amending and supplementingDecree No. 85-12 of 26 February 1985, which defines and regulates hotel and tourism activities.
The practice of the profession of tourist gu ide is regulated by Executive Decree No. 92-121
of 14 March 1992 on this profession and is subject to the nationality requirement.
Question 112
Are there any special and/or discriminatory approval requirements for these activities?
Reply
There are no other special or discriminatory approval requirements for these activities.
(v) Legal services
Question 113
Is it necessary to be  a lawyer member of the Bar in Algeria in order to provide legal
services or is it possible to become established as a legal adviser?
Reply
The profession of legal adviser does not at present exist in Algeria.  On the other hand,
lawyers ("avocats") and solicitors ("notaires") are authorized by law to give legal advice and opinions.
Article 4 of Law No. 91-04 of 8 January 1991 on the structure of the legal profession states
that "lawyers are empowered to give legal advice and opinions, and to assist, represent and defend the
parties".
Article 8 of Law No. 88-27 of 12 July 1998 on the structure of the profession of solicitor
states that, when carrying out the acts within their competence, solicitors advise the parties, inform
them of the scope of their rights and obligations, explain all the implications and commitments and
also indicate the precautions they should take.
Article 9 of the aforementioned Law states that, within the limits of their competence,
solicitors may, when requested, give advice and opinions without necessarily preparing or drawing up
any act.
In the case of foreigners, it should be pointed out that a foreign lawyer of any nationality may
practise his profession in Algeria in a case on which he has been duly briefed.
In this connection, according to Article 6 of Law No. 91-04 of 18 January 1991 on the
organization of the legal profession, a lawyer belonging to a foreign Bar may assist, defend or
represent the parties before an Algerian court after receiving special authorization from the Presidentof the local Bar and after choosing as domicile the office of a fellow lawyer.
Under legal conventions concluded between Algeria and several other countries, foreign
lawyers who are nationals of a State party to the convention may be enrolled in one of the AlgerianWT/ACC/DZA/13
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Bars with a view to practising their profession.  The foreign lawyer is then authorized not only to
represent and assist a party before the Algerian courts but also to give legal advice.
The profession of solicitor is only open to persons of Algerian nationality.
(vi) Professional services
Question 114
What is meant by the profession of "letter writer"?  What profession or supply of
service does this activity involve?
Reply
The practice of the profession of letter writer is completely free.  This is a traditional activity
that consists of helping illiterate persons to de al with their mail and with any other administrative
formalities (filling in forms, making applications ), against payment of fees that are usually very
modest.
The practice of this activity, which is of public utility and assists the people, is not regulated
and does not require any registration in the Commercial Register nor any other form of administrative
control.
Question 115
Do the Algerian regulations on vocational  training allow foreign establishments to
provide services and, if so, what are the requirements for obtaining a licence?
Reply
Algerian legislation in this respect is based on Executive Decree No. 91-141 of 11 May 1991
setting out the criteria for the establishment and monitoring of approved vocational training
establishments (annexed).
Although the existing legislation does not refer to foreign establishments, their participation
or the possibility of providing services is not excluded.
Article 2 of the aforementioned Decree (Annex 9) states that "approved vocational training
establishments within the meaning of this Decree are establishments set up by a natural or legalperson under private law".
One of the mandatory criteria is that the director of an approved vocational training
establishment must be of Algerian nationality (Article 14).
The creation of such establishments is subject to approval by the Wilayat (Territorial
Department) where the establishment is situated.  If this is refused, an appeal may be made to the
Minister responsible for vocational training.
Since Decree No. 91-141 was enacted, around 380 private vocational training centres have
been approved.  To date, no application to set up such an establishment has been received from
foreigners.WT/ACC/DZA/13
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VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
1. Bilateral or plurilateral agreements relating to foreign trade in goods and trade in
services
(b) Trade conventions with third countries
Question 116
Please provide further details on the Conv entions with Syria, Egypt and Iraq, which
exclude from their scope a "list to be agreed jo intly" and the Convention within the framework
of the AMU under which only a limited number of products are exempt from non-tariff
barriers.
Reply
1.1 With Syria
The Trade Convention signed on 26 May 1979 allows duty-free entry of products originating
in the two countries (local specialities or manufactured products with value added of at least 40 per
cent).  The products concerned are contained in two lists (A and B) annexed to the Convention.
1.2 With Egypt
The Trade Convention of 15 October 1991 (ratified by Decree No. 92-317 of 7 August 1992)
provides for exemption from customs duties for originating products, defined as those containing a
minimum original input level of 40 per cent or natural products originating in the soil or subsoil,
without any processing.
Article 11 of this Convention provides for lists of products and goods eligible to benefit from
customs duty exemption to be drawn up by a join t trade and customs commission.  These lists have
not yet been compiled.  The customs duty exemption is therefore not applied.
1.3 With Iraq
This was signed on 17 March 1982 at a time when the foreign trade of the two countries was
characterized by monopolies.  The Trade Convention with Iraq allows duty-free trade in local and
manufactured products with a minimum original input level of 50 per cent contained in two lists.  This
Convention is not being applied.
1.4 In general, despite the fact that they are still in force, these three Conventions have not had
any impact on Algeria's trade with these countries because they have never been put into effect.  This
is due to the following reasons:
(a) Material and practical difficulties (low level of trade with Syria, failure to draw up the
lists with Egypt, and lapsing of the agreement with Iraq, with which trade has been
subject to a special procedure implemented and monitored by the United Nations
Sanctions Committee since 1991;
(b) the determination to bring Algeria's cooperation instruments with these countries into
line with the new and more liberal rules governing the foreign trade of Algeria and its
partners.WT/ACC/DZA/13
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2. With regard to the second part of the question on the Trade and Tarriff Convention with the
AMU, please refer to the reply already give n to question 165 in document WT/ACC/DZA/4.
Question 117
Please give further details concerning the 17.5 per cent countervailing charge on
products incorporating inputs of foreign origin.  Is this tax levied on the total value of the
product without taking into account the proportion of the total cost of inputs of foreign origin?
Reply
The unified countervailing charge of 17.5 per cent on products incorporating inputs of foreign
origin applies to the total value of the goods concerned (see the reply to question 166 of
WT/ACC/DZA/4).
The purpose of this charge is to prevent the unfair competition that might be suffered by a
producer in the importing country whose production pro cess is similar to that for the product imported
when the latter incorporates foreign inputs that have already benefited from favourable treatment
under economic customs regimes.
Question 118
The reply to question 162 of WT/ACC/DZA/4 states that the Trade and Tariff
Convention with the AMU has not yet been ratified by all members and is thus not yet in effect.
Compared with the AMU, what is the relationship with the bilateral trade agreements with
Tunisia, Morocco and Mauritania, which provide for duty-free treatment for trade with
Algeria?  Will the measures taken under the AMU exceed the scope of these agreements, replace
them or incorporate them?
Reply
The bilateral agreements with each of the Maghreb countries preceded those signed at a
multilateral level such as the Trade and Tariff Convention of the AMU.
This led the negotiators of the latter to view the bilateral agreements as already constituting a
basis on which the provisions of the Trade and Tariff Convention of the AMU should be elaborated.
This explains the adoption of a number of measures provided in these agreements (customs
exemption, elimination of non-tariff obstacles for a certain number of products, provisions on rules of
origin etc.).
The Trade and Tariff Convention of the AMU does not contain any provisions dealing
specifically with bilateral agreements among Maghreb countries, with the exception of Article 25
which states that the Convention's provisions prevail if there is any dispute regarding the application
of bilateral agreements among member countries of the AMU.
The objective of the AMU is to achieve an economic union, respecting a clearly defined
timetable (Annex 10 contains a copy of the Declaration of the General Principles for the Common
Maghreb Development Strategy adopted at the third AMU summit, Ras Lanouf, Libya, 9 and
10 March 1991).  It is therefore obvious that th e measures taken under the framework of the AMU,
once they have been implemented, will go beyond those adopted under bilateral agreements among
countries of the Union both as regards their scope and substance.WT/ACC/DZA/13
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Question 119
When do you anticipate that the AMU Conventi on will come into effect?  Will there be a
staging period for full liberalization?
Reply
The implementation of the Maghreb Trade and Tariff Convention depends on its ratification
by all the member countries and the deposit of the ratification instruments at AMU Headquarters.  The
Convention does not provide any timetable for full liberalization.
This aspect is dealt with in another AMU instrument entitled "Declaration on the Main
Outline of a Maghreb Development Strategy", which provides for the following four major phases:
- First phase:  gradual liberalization of trade;- second phase:  customs union;- third phase:  common market;- fourth phase:  economic union.
A French translation of this Declaration is annexed (Annex 10).
Question 120
What fees or charges having the same effect as tariffs and what non-tariff measures will
the AMU Convention eliminate between Algeria and other participants once it is applied?  Are
these measures currently in place or are they already exempted under existing agreements?
Reply
In Algeria, there are not at present any fees or charges having the same effect as the customs
tariff.  At the time the Convention was signed, non-tariff measures meant administrativeauthorizations prior to carrying out foreign trade transactions, which were still required.  Algeria has
since abolished these measures following the economic and trade reforms launched in 1994.
Question 121
The reply to question 165 states that the Commission for monitoring implementation of
the Trade and Tariff Convention of the AMU has not yet drawn up the list of products which
will not be exempted from customs duties, taxes, other charges imposed upon import.  When
will this list of non-exempt products be available?
Reply
It is not possible at the present stage to fix a timetable for drawing up the list of non-exempt
products.  The list will be transmitted to the WTO Secretariat as soon as it is available.
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