RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/DZA/15
21 March 2002
(02-1466)
Working Party on the Accession of Algeria Original:  French
ACCESSION OF ALGERIA
Additional Questions and Replies
The Permanent Mission of the Republic of Algeria has communicated to the Secretariat the
replies to the additional questions posed by Members.  The questions and replies are reproduced
below.WT/ACC/DZA/15
Page ii
II. ECONOMY, ECONOMIC POLI CIES AND FORE IGN T RADE ......................................1
2. Economic policies............................................................................................................ ..........1
(a) Main directions of the current economi c policies.......................................................................1
(b) Monetary and fi scal policies ................................................................................................ .......3
(d) Investment and domestic  investment policy .............................................................................11
(e) Price and comp etition pol icies.............................................................................................. ....12
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE .................................................................................................................1 6
1. Powers of the executive, legislative, and judicial branches of government .......................16
(c) The Judiciary............................................................................................................... ..............16
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................17
1. Import re gulation............................................................................................................ ........17
(a) Registration requirements for engaging in  importing...............................................................17
(b) Characteristics of  the national tariff...................................................................................... ....22
(c) Tariff quotas, ta riff exemptions ............................................................................................ ....23
(d) Other duties and charges, including any charges for serv ices rendered ...................................23
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems...........23
(f) Import licensing  procedures................................................................................................. .....24
(h) Customs valuation........................................................................................................... ..........29
(l) Rules of  origin ............................................................................................................. .............30
(m) Anti-dumping, countervailing dut y, and safeguard regimes.....................................................30
(n) Anti-dumping, countervailing dut y, and safeguard regimes.....................................................30
(o) Anti-dumping, countervailing dut y, and safeguard regimes.....................................................30
2. Export regulation............................................................................................................ ........31
(c) Quantitative export restrictions, including prohibitions, quotas and licensing systems ...........31
(e) Other measures .............................................................................................................. ...........31
(f) Export financing, subsidy and promotion policies....................................................................34
3. Internal policies affectin g foreign trade in goods.................................................................36
(b) Technical regulati ons and standards ......................................................................................... 36
(c) Sanitary and phytos anitary m easures........................................................................................4 6
(e) State trad ing prac tices..................................................................................................... ..........50
(f) Free z ones .................................................................................................................. ...............51
(i) Mixing re gulatio ns.......................................................................................................... ..........51
(j) Government-mandated count er-trade and barter ......................................................................51
(l) Government procur ement pract ices ..........................................................................................52
4. Policies affecting trade in agricultura l products..................................................................65
(e) Internal agricu ltural pol icies .............................................................................................. .......65WT/ACC/DZA/15
Page iii
V. TRADE–RELATED INTELLECT UAL PROPERTY  REGIME......................................68
1. General...................................................................................................................... ...............68
(d) Application of national and most-favoured-nation (MFN) treatment to foreign
nationals...................................................................................................................... ..............68
2. Substantive standards of protection, in cluding procedures for the acquisition,
maintenance and exercise of inte llectual property  rights....................................................69
(a) Copyright and related rights................................................................................................ ......69
(b) Trademarks, includ ing service marks .......................................................................................74
(c) Geographica l indications .................................................................................................... ......75
(e) Pat ents..................................................................................................................... ..................75
(h) Requirements concerning undisclosed information, including trade secrets and test
data78
4. Enforcement .................................................................................................................. ..........78
(d) Any special bo rder measures ................................................................................................. ...78
VI. TRADE-RELATED SE RVICES RE GIME .........................................................................79
1. General...................................................................................................................... ...............79
(b) Posts and te lecommuni cations ................................................................................................ ..79
(d) Adver tising................................................................................................................. ...............88
(f) Financial services.......................................................................................................... ............88
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES ................................................................................................89
1. Economic integration, customs union and free-trade area agreements.............................89
(a) Agreement with the Arab Maghreb Union (AMU) ..................................................................89WT/ACC/DZA/15
Page 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic policies
(a) Main directions of the current economic policies
(vi) Programme of privatization of State-owned enterprises
Question 1
What is the status as regards the opening up or even the privatization of State-owned
enterprises in the energy sector?
Reply
The process of reform and opening up of the energy and mining sector entered a new phase in
2000/2001, after the previous phase implemented between 1986 and 1991.
The Government programme states that it is no longer desirable to rely solely on public
capital for the development of the energy and mining sector;  as the partnership in the hydrocarbonssector has already shown, it is essential to involve domestic and foreign private investment in the
exploitation of the vast development potential offered by this sector.
This has led to the framing of a new policy, geared towards liberalizing activities in this
sector and based on the following principles:
- Separation of the State's role as the Government from that of State-owned enterprises.
The State, which owns the country's mini ng resources (mines and hydrocarbons), is
responsible for optimizing their development and maximizing its revenue.  Through
its institutions, it plays a regulatory role.  State-owned enterprises act as economic and
commercial agents, in a competitive environment.
- Abolition of the ( de jure  or de facto) monopoly of State-owned enterprises in the
mining, electricity and hydrocarbons sectors.  All sectors of activity will be opened up
to domestic and foreign competition.  Only activities forming part of  "natural"
monopolies (electricity transmission grid and hydrocarbons transport networks,
storage of petroleum products) will be entrusted to operators responsible formanaging them in a transparent manner, while guaranteeing access to infrastructure at
non-discriminatory rates.
- Withdrawal of the State guarantee for financing investment in State-owned
enterprises.  Henceforward, these will have to rely on other financing mechanisms,including opening up their capital to domestic and/or international private investors.
So far, the ongoing liberalization and opening up of the energy and mining sector has
led to:
- The adoption and enactment of the Law on Mines;- the adoption and enactment of the Law on Electricity and Pipeline
Distribution of Gas;
- the draft law on hydrocarbons (finalized and in the process of being adopted).WT/ACC/DZA/15
Page 2
Question 2
Please update information on privatization.
Reply
Algeria has new legislation on the privatization of State-owned enterprises, to replace the
previous Order on Privatization adopted in 1995.  This was prompted by the Government’s decision
to adopt a series of measures designed to speed up the privatization process.
Order No. 01.04 on the organization, management and privatization of State-owned
enterprises, enacted in August 2001, represents the culmination of this effort to adapt the legislative
framework.
Order No. 01.04 has created a unified legal framework covering both the management of
State holdings and privatization (formerly governed by separate provisions), and extends the scope of
privatization to all State-owned enterprises, whatever their sphere of activity.  It introduces more
flexible privatization and control procedures and lays down rules to ensure transparency, and inparticular equity and competition, in the conduct of privatization operations.  The Order affords all
guarantees for investment in privatization operations, in particular the right to transfer earnings, and
gives buyers that undertake to maintain employment and activity substantial privileges.
The texts implementing the new Order have been adopted and enacted, and the legal system is
now in force.
The privatization programme, drawn up by the Minister responsible for shareholdings, in
consultation with the ministerial departments concerned, was adopted by the Council of Ministers,
following approval by the Council of State Shareholders.  The Minister responsible for shareholdingshas primary responsibility for implementing the privatization programme.
The Government has adopted a pragmatic approach in drawing up and implementing the
privatization programme.  It has decided to back the privatization process through two privatization
support programmes, undertaken with the World Bank and the European Union.  The involvement ofinvestment banks and national and international consulting firms will ensure that privatization
operations are conducted with all due professionalism.
The Government intends swiftly to disengage from enterprises operating in competitive
spheres by encouraging all opportunities to open up the capital of State-owned enterprises to domestic
or foreign buyers.  The privatization and sale of firms is demand-driven and planned according to
market absorption capacity and the firms' level of preparedness.  It is conducted through financialmarket mechanisms (public offer, stock exchange), invitations to tender or negotiated sales.
It should be noted that some progress has been registered in the transfer of State assets, with
the privatization of pharmacies, the creation of some 1,800 companies set up through the takeover by
employees of assets of dissolved enterprises, some 20 partnership operations, three operationsinvolving disposal of equity through public offers of sale on the stock exchange (SAIDAL, ERIAD-
Sétif and the EL AURASSI hotel), and the acquisi tion of foreign (HENKEL, LNM-ISPAT) majority
interests in State-owned enterprises:  ENAD (detergents) and ALFASID (iron and steel).
Under its programme for 2002, the Government launched an initial series of privatization
operations over the first half of the year, including:
- the sale of eight brick factories;WT/ACC/DZA/15
Page 3
- the opening up of the capital of three major cement factories;
- the privatization of seven chemical enterprises and four enterprises in the ISMME
(iron and steel, metal, mechanical, electricity and electronics) sector;
- the privatization of seven large city-centre hotels in operation and the sale of two
hotels under construction;
- the opening up of the capital of the State cargo shipping line;- the sale of the subsidiaries of State-owned milk and beverage production groups;- the sale of the State-owned sugar production plant;- the sale to employees of an initial lot of 70 small-sized local enterprises.The process of abolishing the monopoly on activities, liberalizing markets and strengthening
competition rules is being pursued with the re form of the legal framework regulating the
infrastructure and utilities sectors.  This is a matter of particular interest to the Government, which is
planning to promote involvement of the private sector in these areas, so as to achieve greater
efficiency and more stringent management in these key sectors.  Modern procedures such as
concessions and BOT- or BOO-type schemes will systematically be introduced.
Measures have already been taken to adapt and reform the legal and institutional framework
in the mining, electricity and health sectors (with opportunities for private investment in the hospital
sphere), as well as in the telecommunications sector, with the recent granting of the second GSM
licence to a foreign investor, selected on the basis of competitive tendering.
Other draft laws, particularly in the hydrocarbons sector, are being finalized.  In the transport
sphere, new management rules have been introduced in the ports sector, and a programme granting
concessions for port and airport infrastructures is under way.
(b) Monetary and fiscal policies
Question 3
Could Algeria provide further details on the internal consumption duties, i.e. a list of
products concerned and the value of the tax?
Reply
Algeria's internal consumption duties are as follows:
- Internal consumption tax (TIC);
- tax on petroleum products;
- warranty fee;- movement duty.
These duties are payable on both imported and domestically-produced goods, on the same
terms.
- Internal consumption tax (TIC)
This applies to the products listed below, at the following tariffs or rates:WT/ACC/DZA/15
Page 4
Product description Tariffs
Beer  3610 DA/HL
Tobacco products and matches- Cigarettes
dark tobacco  1.040 DA/Kg
light tobacco  1.260 DA/Kg
- Cigars  1.470 Da/Kg
- Smoking tobacco 620 DA/Kg
- Snuff and chewing tobacco 710 DA/Kg- Matches DA 26 per 100 boxes containing at 
least 40 matches per box
Other products (per cent)
-S a l m o n 5 0- Fresh bananas 20
- Pineapples 40
- Kiwis 50
- Not decaffeinated 10
- Decaffeinated 10- Not decaffeinated 10
- Decaffeinated 10
Other (Customs stamp (TD) No. 09.01.90.00) 10
- Caviar and caviar substitutes 50- Whiskies 90
- Gin and Geneva 90
- Vodka 90
- Other (Customs stamp (TD) No. 22.08.90.00) 90
- Worn clothes and other worn articles 20
Off-road vehicles 20
- Other, of a cylinder capacity exceeding 2,000 cc 30
but not exceeding 3,000 cc
- Off-road vehicles, of a cylinder capacity exceeding 3,000 cc 20
Other (Customs stamp (TD) No. 87.03.24.90) 30
- Off-road vehicles, of a cylinder capacity exceeding 2,500 cc 20
- Other (Customs stamp (TD) No. 87.03.33.90) 30
- Tax on petroleum products (TPP)
This applies to the petroleum products listed below, at the following tariffs:- Premium gasoline 777.50 DA/hl
- Regular gasoline 629.50 DA/hl
- Fuel oil 68.90 DA/hl- Diesel 163.80 DA/hl
- Propane 260.80 DA/hl
- Butane 35.65 DA/Kg
- LPG (fuel) 25.20 DA/13KgWT/ACC/DZA/15
Page 5
- Movement duty
Movement duty is payable on wine and spirits, at the following tariffs:
Wine 4,000 DA/hl
Spirits:
- Alcohol-based medicinal products, 10 DA/hl
not for human consumption
- Perfumery and toilet products 980 DA/hl
- Alcohol used for the production of 1,460 DA/hl
sparkling wines and natural sweet wines
- Wine-based aperitifs, vermouth, 62,000 DA/hl
reinforced wines and similar products
- Whiskies and alcohol-based aperitifs 94,000 DA/hl
(bitters, tar, gentian or aniseed-flavoured, etc.)
- Rum 62,000 DA/hl
- Warranty fee
The warranty fee is payable on the articles listed below, at the following tariffs:- Gold articles 5,000 DA/hg- Platinum articles 10,000 DA/hg- Silver articles 50 DA/hg
Question 4
How does the Algerian Government plan to use the fund financed by petroleum
earnings?
Reply
Article 10 of the supplementary Finance Law for 2000 established a trust fund entitled
"earnings regulation fund", financed by tax surpluses earned when hydrocarbons prices exceed theestimates in the Finance Law.
Earnings held in this fund are used to regulate expenditure and the budgetary balance
established by the annual Finance Law, in the event of a drop in the oil price per barrel on the
international market.
In addition, they may be expended to service the public debt.WT/ACC/DZA/15
Page 6
Question 5
What is the level of the slaughter tax applied to imports of live animals?  Is a slaughter
tax also applied to homebred animals?
Reply
Imported live animals are not subject to the slaughter tax but to VAT at a reduced rate of 7 per
cent.
Homebred animals are not subject to this tax until they are slaughtered.
Question 6
I t  i s  s t a t e d  t h a t  t h e  fee for customs formalities is fixed at 2 per cent for every import
declaration.   Could Algeria explain on which basis the fee has been determined and how it
corresponds to the cost of customs services?  In principle, as  the fee is expressed in ad valorem
rate, it cannot be considered consistent with Article VIII of the GATT.  The same holds true for
the export fee.
Reply
Before the end of 2003, Algeria will align itself with the provisions of Article VIII of the
GATT 1994, with levies of 2 and 4 per cent (four per mil).
Question 7
It is stated that a specific surcharge has been applied since 1991 and should soon
disappear as a result of its integration in the single applied customs tariff.
Reply
The specific surcharge was abolished by the supplementary Finance Law for 2001, which
came into force on 19 July 2001.
Question 8
Could Algeria provide details on the internal consumption duties, i.e. an exhaustive list
of products concerned and the value of the tax?
Reply
The following duties are collected:
- Value added tax (VAT)
The products concerned are listed in the customs tariff nomenclature.  A second column in the
tariff represents applicable VAT rates (exemption, 7 and 17 per cent).  VAT is payable on both
domestically-produced and imported goods.WT/ACC/DZA/15
Page 7
- Provisional additional duty (DAP)
The list of products subject to this duty, introduced under the supplementary Finance Law
for 2001 and, under the Law due to be phased out over a period of five years, will be made available
to the WTO Secretariat.  The rate of duty was fixed at 60 per cent for 2001 and will be reduced
according to the following timetable:
- 2001:  60 per cent;
- 2002:  48 per cent;
- 2003:  36 per cent;
- 2004:  24 per cent;
- 2005:  12 per cent;
- 2006:   0 per cent.
The DAP is payable on imports.- Internal consumption tax
The products subject to the internal consumption tax are listed below.  This duty is collected
on imports and domestically-produced goods.
Tariff Heading Product Tariff Rate
0302.1200 Salmon 50%
0803.0010 Fresh Bananas 20%
0804.3000 Pineapples 40%
0810.5000 Kiwis 50%
0901.1100 Coffee, not roasted or decaffeinated 10%
0901.1200 Coffee, not roasted, decaffeinated 10%
0901.2100 Coffee, roasted, not decaffeinated 10%
0901.2200 Coffee, roasted and decaffeinated 10%
0901.9000 Coffee, other 10%
1604.3000 Caviar and caviar substitutes 50%
2208.3000 Whiskies 90%
2208.5000 Gin and Geneva 90%
2208.6000 Vodka 90%
2208.9000 Other 90%
2203.0000 Beer made from malt 3610.00 DA/HL
2402.1000 Cigars 1470.00 DA/Kg
2402.2010 Cigarettes, light tobacco 1260.00 DA/Kg
2402.2090 Cigarettes, dark tobacco 1040.00 DA/Kg
2403.1000 Smoking tobacco 602.00 DA/Kg
2403.9900 Snuff and chewing tobacco 710.00 DA/Kg
3605.0000 Matches 26.00 DA per
100 boxes
6309.0000 Worn clothes and other worn articles 20%
8703.2380 Off-road vehicles, of a cylinder capacity exceeding 2,000 cc but not exceeding 3,000 cc
(gasoline)20%
8703.2390 Other, of a cylinder capacity exceeding 2,000 cc but not exceeding 3,000 cc (gasoline) 30%
8703.2420 Off-road vehicles, of a cylinder capacity exceeding 3,000 cc 20%
8703.2490 Other, of a cylinder capacity exceeding 3,000 cc (gasoline) 30%
8703.3320 Off-road vehicles, of a cylinder capacity exceeding 2,500 cc (diesel) 20%
8703.3390 Other, of a cylinder capacity exceeding 2,500 cc (diesel) 30%WT/ACC/DZA/15
Page 8
Domestic duties on alcohol, hydrocarbons and gold, silver or platinum articles are listed under
the reply to question 9 below.  They are payable on domestically-produced and imported goods, on the
same terms.
- Road use fee
This fee applies to road-haulage or passenger vehicles in transit through Algerian territory.The amount, per vehicle, consists of a fixed and a variable part, as described below.Road-haulage vehicles
- Fixed part, equivalent to the exchange value in foreign currency of:
- DA 2,000 for vehicles of a gross weight not exceeding 10 tonnes;- DA 3,000 for vehicles of a gross weight of more than 10 and less than
19 tonnes;
- DA 4,000 for vehicles of a gross weight of 19 tonnes or more.
- Variable part, calculated as a proportion of the vehicle's gross weight and the
distance to be covered when the vehicle is loaded, according to the following scale:
Gross Weight Variable Part DA/Km
Up to 8 tonnes
- 1 to 10 tonnes
- 10.1 to 14 tonnes
- 14.1 to 19 tonnes- 19.1 to 22 tonnes- 22.1 to 26 tonnes
- 26.1 to 30 tonnes
- 30.1 to 38 tonnes- more than 38 tonnes0.80
1.12
1.60
2.202.603.20
3.60
4.006.00
As an exemption, road-haulage vehicles of a gross weight not exceeding 5.6 tonnes
are subject only to the fixed part of the fee.
Passenger vehicles
- Fixed part, equivalent to the exchange value in foreign currency of:
- DA 1,000 for vehicles with a capacity of 9 to 25 persons;- DA 1,500 for vehicles with a capacity of 26 to 50 persons;- DA 2,000 for vehicles with a capacity exceeding 50 persons.
- Variable part, calculated as a proportion of the vehicle's capacity and the distance to
be covered when the vehicle is loaded, according to the following scale:
Capacity Variable Part DA/Km
- 9 to 25 persons
- 26 to 50 persons- more than 50 persons0.40
0.801.00WT/ACC/DZA/15
Page 9
Question 9
Please provide a comprehensive list of taxe s applied to imports, e.g. VAT (its rate,
coverage and exceptions), specific surch arges and internal consumption duties.
Reply
Import taxes, which apply on equivalent terms to domestically-produced goods, are as
follows:
- Value added tax (VAT);
- internal consumption tax (TIC);
- tax on petroleum products;- movement duty;- warranty fee.- Value added tax (VAT)
Value added tax is a general tax on consumption payable on sales, building construction work
and supply of industrial, commercial or cottage industry-type services, performed in Algeria on a
regular or occasional basis, and on import transactions.
VAT is levied on imports of products that are subject to VAT in the home market, on
equivalent terms.
Imports of products exempt from VAT on domestic sales are VAT exempt, on equivalent
terms and subject to the same reservations.
The following are likewise exempt from VAT on imports:
- Goods under one of the following regimes suspending payment of customs duties:
warehousing, temporary entry, transit, transshipment or storage, subject to the special
provisions of the Customs Code (in particular Article 178);
- goods allowed duty-free entry on an exceptional basis, under the terms of Articles
197, 202 and 213 of the Customs Code;
- sea-going vessels of tariff subheadings 89.01, 89.02, 89.04, 89.05, 89.06, 89.07 and
89.08, and aircraft for airline companies;
- raw or manufactured articles and products for the construction, rigging, fitting out,
repair or conversion of sea-going vessels and aircraft covered by paragraph 3 above;
- aircraft and aircraft engines, equipment, spare parts, materials, fuel and lubricants for
the exclusive use of aircraft and approved flight training schools and centres;
- refitting, repair and conversion of Algerian ships and aircraft abroad;- monetary gold of subheading 71.08.20.00 and gold coin of subheading 71.18.90.10;WT/ACC/DZA/15
Page 10
- barter imports under the terms and conditions stipulated by the legislation or
regulations in force.
The products subject to VAT are listed in the customs tariff nomenclature.  A second column
in the tariff represents applicable VAT rates (exemption, 7 and 17 per cent).
- Internal consumption tax (TIC)
Products subject to the TIC are listed under the reply to question 3.- Tax on petroleum products (TPP)
This applies to the petroleum products listed below, at the following tariffs:
- Premium gasoline 777.50 DA/hl
- Regular gasoline 629.50 DA/hl
-F u e l  o i l 68.90 DA/hl
-D i e s e l 163.80 DA/hl
- Propane 260.80 DA/hl
-B u t a n e 35.65 DA/35Kg
-L P G  ( f u e l ) 25.20 DA/13Kg
- Movement duty
Movement duty is payable on wine and spirits, at the following tariffs:
Wine 4,000 DA/hl
Spirits:
- Alcohol-based medicinal products, not for human consumption 10 DA/hl
- Perfumery and toilet products 980 DA/hl
- Alcohol used for the production of sparkling wines and natural sweet
wines1,460 DA/hl
- Wine-based aperitifs, vermouth, reinforced wines and similar products 62,000 DA/hl
- Whiskies and alcohol-based aperitifs bitters, tar, gentian or aniseed-
flavoured, etc.)94,000 DA/hl
-R u m 62,000 DA/hl
- Warranty fee
The warranty fee is payable on the articles listed below, at the following tariffs:
- Gold articles 5,000 DA/hg
- Platinum articles 10,000 DA/hg
- Silver articles 50 DA/hg
- Specific surcharges
There has been no surcharge of any kind since the specific surcharge was abolished by the
supplementary Finance Law for 2001.WT/ACC/DZA/15
Page 11
(d) Investment and domestic investment policy
Question 10
What is Algeria's investor incentive regime, specifically the "agreement regime" for
investments of strategic importance, which is gran ted by the State to the investor on the basis of
a specific agreement?
Reply
The Order of 20 August 2001 on the development of investment replaces Legislative Decree
No. 93.12 of 5 October 1993 on the promotion of investment, while preserving the inalienability of
acquired benefits.
The new Investment Code establishes the following three regimes.
- General regime
The general regime applies to domestic and foreign investment in economic activities relating
to the production of goods and services, and to investment in the context of concessions and/or
licences.
Investors are eligible for benefits in terms of customs duties (reduced rate on imported capital
goods), VAT (exemption for goods and services) and transfer fees (exemption for real-estate
purchases).
- Special zone regime
This regime covers zones under development.
Investors in such zones (determined by regulation) enjoy the following advantages:On investment
- The same benefits as those provided under the general regime;
- application of a reduced rate of 2 per mil (2% o) for the registration fee for
articles of incorporation and increases in capital;
- full or partial State coverage of infrastructure costs.
In the period following entry into operation
- Exemption from tax on company profits (IBS) and on overall net income
(IRG), the standing payment (VF), business tax (TAP, 10 years), and land taxon real-estate purchases (10 years);
- additional benefits (carry forward of losses, amortization periods).WT/ACC/DZA/15
Page 12
- Agreement regime
Eligibility for benefits under this regime is rest ricted to investments of particular interest to
the national economy that implement "clean" technologies, under a concession and/or a licence, and
are geared towards:
- Environmental conservation;
- conservation of natural resources;- energy conservation and sustainable development.
Exemptions and other benefits under the agreement regime are granted on equal terms to all
investors, including foreign investors, that adhere  to the "clean" technology strategy pursued by this
regime.
Article 14 of the new Investment Code stipulates the following:
"Foreign natural and legal persons shall enjoy the same treatment as Algerian natural
and legal persons in terms of the rights and obligations relating to the investment.
Foreign natural and legal persons shall all receive the same treatment, subject to the
provisions of agreements concluded by Algeria with their countries of origin
."
Lastly, the Investment Code:
- Guarantees the transfer of capital inputs, of the income generated by such
inputs and of the real net proceeds from sales or liquidations;
- stipulates that investments made may not be requisitioned through
administrative channels, except in cases provided for by legislation in force
and subject to fair and equitable compensation;
- provides that disputes shall be submitted for settlement by the competent
courts, except where Algeria has concluded bilateral or multilateral
agreements on conciliation and arbitration and where there are specific
agreements stipulating an arbitration clause or allowing the parties to reach a
compromise through ad hoc arbitration.
(e) Price and competition policies
Question 11
Has Algeria considered if regulation is the best way to ensure adequate provision of
milk, semolina and flour at reasonable prices?  Whilst we do not question the social importance
of these products, has Algeria also conside red whether there is a WTO justification for
maintaining these price controls?
Reply
Consumer price controls are applied to pasteurized milk and bread flour.
Such price "control" is in fact a form of consumer price regulation under a price cap scheme
without financial intervention by the State.WT/ACC/DZA/15
Page 13
The ceiling prices are fixed by ministerial order and implemented by the Trade Ministry's
competition and price control services.
This regulation scheme, in force since 1997, has ensured adequate market supply at reasonable
prices for such products of obvious social importance, thus increasing food security.
Question 12
Please identify all products, including HS numbers, that are still subject to price
regulation.  Does Algeria require minimum or maximum import or export prices for any of
these products?
Reply
The following products are subject to price regulation:
- 04.01.20.10 Packaged pasteurized milk
- 10.01.90.90 Common wheat
- 11.01.00.00 Common bread flour
- 19.05.10.00 Ordinary and improved bread
- 22.01.90.00 Drinking water and water for agricultural use
- 27.10.00.12 Premium gasoline- 27.10.00.13 Regular gasoline
- 27.10.00.41 Diesel
- 27.10.00.44 Fuel oil
- 27.11.11.00 Domestic natural gas
- 27.11.12.20 LPG fuel- 27.11.12.20 LPG bulk
- 27.11.12.20 Propane
- 27.11.13.20 Butane
- 27.16.00.00 Electricity
- Chapter 30 Medicines (human health).
No minimum or maximum import or export prices are fixed for any of these products.
Question 13
We note that some price controls (on milk, semolina and flour) still remain uncovered,
because of their considerable social importance.
Whilst we do not question the social importance of these products, has Algeria
considered whether there is a WTO justification for maintaining these price controls?
Reply
Semolina was withdrawn from the list of products subject to price regulation in
February 1997.
The following food products remain subject to the price regulation regime:- Common flour (selling price to bakers:  DA 2,000/100kg.);WT/ACC/DZA/15
Page 14
- ordinary bread (selling price:  DA 7.50/250-gr. unit);
- improved bread (selling price:  DA 8.50/250-gr. unit);- pasteurized milk (DA 25/1-litre carton);  free pricing was introduced for other forms
of packaging in February 2001.
Prices are fixed by internal regulation, in conformity with Article III of the GATT on National
Treatment on Internal Taxation and Regulation.  The regulation affects offer for sale and is not applied
to imports or domestic products in such a way as to protect national production.
The fixing of ceiling prices for flour and pasteurized milk is consistent with Article III of the
GATT.  It is applied for social purposes and has no effects prejudicial to the interests of WTOMembers supplying such products.
Prices of goods in all economic sectors are determined freely by market forces, with the
exception of the following products and services:
Products subject to price regulation
Product Price Fixing Stage
Pasteurized milk Production price
Wholesale margin
Retail margin
Common wheat Production price
Common bread flour Price to bakers
Price to retailersPrice to consumers
Ordinary bread Price to consumers
Improved bread Price to consumers
Drinking water and water for agricultural use Price to users
Regular gasoline Price to resellers
Premium gasoline Price to bulk users
Diesel Pump price
Fuel oil Price to users
Domestic natural gas Price to users
LPG bulk Price to resellers
Price to users
Propane Price ex-filling plants
Price to retailers
Price to users
Butane Price ex-filling plants
Price to retailers
Price to users
Electricity Price to users
Medicines Production margins
Packaging marginsWholesale marginsRetail margins
- Services subject to price regulation
- Rail transport;
- passenger transport by taxi (motor vehicle);- hydrocarbons pipeline transport tariffs.WT/ACC/DZA/15
Page 15
Pricing for the above goods and services is fi xed by executive decree, following consultation
among the various ministries concerned.
Algeria will apply price controls in a WTO-consistent manner, taking into account the
interests of exporting Members, pursuant to Article III:9 of the GATT 1994.  The list of goods and
services subject to price control and any modification to current price controls will be published in theJournal Officiel .
Question 14
Algeria reports that it is in the process of breaking up State trading monopolies, but that
some have not yet been fully reformed in this fashion.
Please indicate which State trading monopolies are still functioning, e.g. in the
hydrocarbons sector.
Reply
In the hydrocarbons sector, the State oil company SONATRACH has a monopoly on
hydrocarbons prospection, production, transport and marketing.
The new draft law currently before the Government provides for the breaking-up of such
monopolies.  Only natural monopolies will remain (hydrocarbons pipeline transport networks andstorage infrastructure) and will be governed by the regulatory authority in order to ensure, inter alia ,
unrestricted access to such networks.
Question 15
Natural monopoly pricing could constitute a subsidy under the WTO Subsidies
Agreement.  We understand that Algeria is attempting to liberalize its domestic prices for
gas, electricity and water.
Please provide a description of existing price mechanisms for natural gas, water and
electricity, and any reforms being implemented or proposed, with updates on these efforts.
Reply
Prices for electricity and natural gas in the home market are currently regulated by decree and
apply to both industrial and domestic customers.  Electricity and natural gas rates are periodically
reviewed on the basis of marginal development costs;  they were last adjusted on 1 September 2000.
The reforms provided for in the recently adopted Law on Electricity and Gas establish new
electricity and gas pricing mechanisms.
These mechanisms are based on the following principles:- The production of electricity is open to co mpetition.  Qualifying (i.e. industrial)
customers may freely negotiate electricity and gas prices and volumes with producers,
distributors or commercial agents.
- Electricity transmission and gas transport are natural monopolies in the hands of
utility companies (one for electricity and one for gas).  The principle of free third
party access to the grids is guaranteed by law.WT/ACC/DZA/15
Page 16
- The rates for use of the electricity transmission and gas transport grids are set by the
Electricity and Gas Regulatory Commission, using a methodology and parameters
established by regulation and required by law to be transparent and non-
discriminatory and to be published.
- The rates for non-qualifying (i.e. domestic) customers are set by the Electricity and
Gas Regulatory Commission, using parameters that are established by regulation and
are uniformly applied throughout Algeria.  These rates must factor in all costs
incurred by operators (electricity production or gas supply costs,
transmission/transport and distribution costs, marketing costs, permanent costs and
diversification costs).
- As regards the implementation schedule, the Law stipulates that the electricity and gas
markets shall be opened up, each in an amount of at least 30 per cent, no later than
three years after the enactment of the Law.
Question 16
Please describe Algeria’s pricing levels and policies for gas and electricity, as they relate
to domestic industry and export.
Reply
Prior to the new Law, the electricity and gas pricing policy was to gradually adjust rates to
marginal development costs.   For industrial electricity and gas customers, the rates now match the
costs.
Export prices are freely negotiated between the relevant national producer and its customers
and are governed by international market conditions.
Question 17
Does Algeria supply gas to domestic firms at different prices? If so, please describe the
policy.
Reply
Gas is supplied to domestic firms at a price regulated by decree, without discrimination and
regardless of the customer.  Gas exports are sold at a different price, which is negotiated between the
gas producer and its customers and is governed by international market conditions.
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE
1. Powers of the executive, legislative, and judicial branches of government
(c) The Judiciary
Question 18
Could Algeria specify which part of the Judiciary hears commercial cases?
ReplyWT/ACC/DZA/15
Page 17
Commercial cases are heard by the commercial chamber of the tribunal, composed of a
magistrate (who presides) and two business assessors, who play an advisory role.
Appeals against the tribunal’s decisions are heard by the court, which is a collegiate body
composed of three magistrates.
Appeals for cassation of the court’s decisions may be lodged with the Trade and Maritime
Chamber of the Supreme Court.
Question 19
Appeals against administrative actions may be lodged with the judicial authorities.  Are
ways of seeking redress directly by the administration foreseen?  If this is the case, can theplaintiff pursue the administrative way first or can he/she directly appeal to the judiciary?
Reply
Requests for annulment of decisions by the lo cal administration may be lodged with the
administrative tribunals;  in the case of decisions taken by the central administration, requests must be
lodged with the Council of State.
Requests for annulment are only admissible if they have been preceded by an appeal to a
higher administrative authority or, in its absence, by an application for review addressed to the personwho took the decision.
The prior administrative appeal must be made within two months of the notification or
publication of the decision contested.
Appeals for annulment do not suspend application of the decision.  Nevertheless, an
administrative judge may, as an exceptional measure and at the specific request of the applicant,
suspend application of the decision contested.
Annulment of administrative decisions may give rise to compensation.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import regulation
(a) Registration requirements for engaging in importing
Question 20
Despite efforts to liberalize trade since 1994, Algeria still requires that economic
undertakings keep a “commercial register” and have “domiciliation” at an approved banking
intermediary.
Please clarify what these requirements entail  for a firm or individual that wishes to
import.
Please describe the reasons for these requirements and the process that foreign and
domestic firms and individuals must comply with to import or to export.WT/ACC/DZA/15
Page 18
What are the steps for getting a commercial re gistration?  Please include information on
all fees associated with becoming registered a nd a list of the relevant ministries that must be
approached.
Reply
The following must have a commercial registration:
- Traders, whether natural or legal persons;
- commercial firms or enterprises of an industrial or commercial nature;
- industrial or commercial firms whose headquarters are abroad and which set up an
agency, branch or any other establishment in Algeria;
- small-scale enterprises, service providers, whether natural or legal persons;
- lessees or managers of businesses;
- commercial legal persons whose form or purpose is trade, with headquarters in
Algeria or which open an agency, branch or any other establishment.
The requirements for inclusion in the commercial register concern the commercial activity,
the place where it is carried out and the person.
As regards the commercial activity, a distinction has to be drawn between unregulated
activities, which are open to any applicants that meet the general conditions governing the status of
trader, and regulated activities, which require prior authorization from the competent authorities.
Concerning the conditions related to the place of the activity, commercial registration is
accorded to any person who can prove that he is legally established, through ownership or rental of
commercial premises.  In this connection, dangerous, unsanitary or harmful activities require prior
verification by the local administration before they can be established (classified establishments).
Lastly, the following are the requirements relating to the person concerned:
- Natural persons must possess legal capacity and civil rights;
- legal persons must be established in accordance with the law;
- general partnerships ( sociétés en nom collectif  (SNC));
- limited partnerships ( sociétés en commandite simple );
- limited liability companies (SARL, EURL); and
- joint stock companies (SPA).
- Fees applicable
The fees charged by the National Centre for the Commercial Register ( Centre National du
Registre de Commerce (CNRC)) for keeping the local and central commercial registers and for legal
notices are the following:WT/ACC/DZA/15
Page 19
Natural persons
Registration category Fee (DA)
Registration
Itinerant traders
RetailersSupermarkets
Wholesalers
Import/export wholesalers
Suppliers of services
Production/processing1,300.00
1,800.002,700.00
2,700.00
2,700.00
2,200.00
2,700.00
Changes 1,350.00
Cancellation 750.00
Legal persons
Registration category Fee (DA)
Principal registrationCapital < DA30,000Capital DA30,000 to 100,000
DA100,001 to 300,000
Capital DA300,001 or more5,600.00
5,700.00
5,950.00
6,100.00
Secondary registrationChange without increase in capital
Capital increase of DA10,000 to 50,000
Capital increase of DA50,001 to 100,000Capital increase of DA100,001 or more5,600.00
2,100.00
2,200.00
2,450.002,600.00
Cancellation + dissolution 1,300.00
Deposit of articles or deeds (other than dissolution) 500.00
Deposit of deed of dissolution 400.00
Importing is only open to legal persons listed in a commercial register, in other words, legal
persons must be established in accordance with the law and this applies to general or limited
partnerships, limited liability firms and joint stock companies listed in a commercial register.
An Algerian or foreign firm or an Algerian or  foreign person must be listed in a commercial
register as a “legal person” in order to import or export.WT/ACC/DZA/15
Page 20
Registration in the commercial register is an authenticated deed attesting to the full legal
capacity to engage in trade.  It gives the right to exercise a commercial activity freely.
Registration requirements
- Commercial firms
A person wishing to become listed in the commer cial register must deposit the articles of the
firm, the minutes of the constituent general assembly(ies), the results of the election of the
administrative and management bodies, the powers given to executives, and any other deeds
specifically provided in the legislation in effect.
The official at the commercial register, acting as a public official, must immediately verify
whether the commercial status of the firm complies with the legal requirements in force, that the
legally required capital has in fact been paid up and that the firm has established a proper head office.
The official hands over a receipt attesting to registration and this is valid unless any person with
an interest opposes it.
- Natural persons
Any natural person possessing civil capacity and civil rights who expresses a wish to carry out
an activity covered by commercial law must make a declaration before a duly authorized publicofficial, stating specifically that he wishes to ex ercise the activity in accordance with the law and
according to commercial custom and that he has not been the subject of any measure prohibiting him
from carrying out that particular activity.
The following are the competent authorities:
- The National Centre for the Commercial Register (CNRC), which is an autonomous
administrative body responsible inter alia  for issuing and administering commercial
registrations;
- for activities that are regulated, the competent authorities issue approvals (Ministries
of Health responsible for Tourism, Transport, the Interior, Vocational Training,
Energy and Mines, Agriculture, Finance,  the Bank of Algeria, the Customs).
Formalities for registration applications
- Natural persons
- An application for inclusion in the commercial register drawn up on the form
supplied by the CNRC;
- birth certificate and police record;- lease of the commercial premises or copy of the ownership deeds;- attestation of the fiscal situation;
- approval authorizing the exercise of the activity in the case of regulated activities.WT/ACC/DZA/15
Page 21
- Legal persons
- An application for inclusion in the commercial register drawn up on the form supplied
by the CNRC;
- the firm’s articles drawn up in a notarial deed;- Publication of extracts from the firm's articles in the Official Gazette of Legal Notices
(Bulletin officiel des annonces légales  (BOAL)) and a national newspaper;
- birth certificates and police records of the executives;- proof of the existence of the head office;- attestation of the fiscal situation;- approval authorizing the exercise of the activity in the case of regulated activities;
and
- description of branches, if any.Keeping the commercial register
The CNRC is responsible for keeping the commercial register (under the law, the CNRC is an
autonomous administrative body under the supervision of the Minister for Trade);  it is present in each
of the 48 wilayas  (departments) in Algeria in the form of local branches of the CNRC set up for this
purpose.
The register is kept by the official in charge of the branch, who is a public official representing
the law and enjoys a special status conferred by Executive Decree.
The official in charge of the branch has direct authority for entries in the commercial register
(registration, changes, cancellation), under the supervision of a judge appointed to oversee thecommercial register.
The official notes down the registration in an analytical register classified and signed by the
President of the Tribunal with territorial competence, after the contents of the file submitted by the
applicant have been verified;  applications that are incomplete or incorrect are systematically rejected.
The official then gives each business (legal or natural person) a national registration number
attesting to registration in the commercial register, using a series of chronological numbers attributed
to each branch by the Directorate General and administered centrally by computer.
A receipt for the deposit of an application is given to applicants and this is equivalent to an
entry in the commercial register, allowing th e immediate commencement of the economic activity
declared.
The extract from the commercial register is issued within a period not exceeding two months,
which allows third parties or parties with an interest to lodge any opposition following publication of
the registration in the BOAL.  Disputes are brough t before the judge responsible for supervising the
commercial register.WT/ACC/DZA/15
Page 22
Applications submitted by natural or legal persons, together with their attachments, are sent to
the head office of the CNRC for verification, filing, placing in the archives, compilation and
exploitation of the statistical data and issuance of copies of the contents of the file to any applicants.
The head office and the branches of the CNRC are equipped with a computerized system that
allows them to build up a computerized database for the commercial register and, upon request, thesedata are made available to economic operators, professional organizations, public institutions and
authorities.
Lastly, it should be noted that the commercial register is governed by a law (Law No. 90.22 of
18 August 1990 on the commercial register).  This Law provides for the unique nature of commercial
registration (a single registration throughout the life span of a company or the activities of a natural
person) and is strictly in conformity with Articl e 37 of the Constitution, which states the following:
“Freedom of trade and industry is guaranteed.  It shall be exercised in accordance with the law.”
Domiciliation of banks
Domiciliation of imports at a bank is a simple registration of the import or export transaction.
It involves the deposit of the order or service request together with the bank  pro forma  invoice.
Foreign firms established in Algeria are subject to the same requirement as local firms.
Banking domiciliation of an import transaction ensures that the importer has sufficient funds to
pay for the orders given.
Domiciliation also allows the Bank of Algeria to update the financial statistics on commercial
activities, which are essential data for the calculation of the global and bilateral balance of payments.
It is also justified by the need to control rela ted financial flows;  for the customs service, it
allows the financial flow and the flow of goods fo r the same import transaction to be compared and
thus limit the flight of capital.
(b) Characteristics of the national tariff
Algeria utilizes the 2002 version of the Harmonized System.
Order No. 01.02 of 20 August 2001 establishes a new customs tariff applicable as of
1 January 2002.  A hard copy of this tariff, as well as an electronic copy, will be available from the
WTO Secretariat.
The reform of the customs tariff has enabled the following principles to be reaffirmed:
- Harmonization and reduction of the number of rates;
- consistent structure;
- transparency;
- stability;
- impartiality.
The former tariff structure described on page s 47 and 48 of docume nt WT/ACC/DZA/14/Add.1
of 24 August 2001 has been replaced by the following:  0 per cent, 5 per cent, 15 per cent, and 30 per
cent.
The customs tariff only contains one column of duties applicable to countries that grant Algeria
most-favoured-nation (MFN) treatment (Article 2 of Order No. 01.02 of 20 August 2001 establishing
a new customs tariff).WT/ACC/DZA/15
Page 23
Algeria has been a member of the WCO since 19 December 1966.
No preference is currently given for imports originating in the European Union.  The
association agreement signed on 19 December 2001 provides for the establishment of a free-trade
zone following a transitional period of 12 years after the entry into force of the agreement.
(c) Tariff quotas, tariff exemptions
The exemptions allowed in the customs tariff are applied on an MFN basis.
(d) Other duties and charges, including any charges for services rendered
Before the end of 2003, Algeria will align itself with the provisions of Article VIII of the
GATT 1994, with levies of 2 per cent and 4 per cent (four per mil).
The economic customs regimes under the Kyoto Convention allow the total or partial
suspension of the payment of duties and taxes.  Article 4 bis of the Customs Code provides that “the
customs laws and regulations apply irrespective of the status of the persons”.  Consequently, goods
imported by the State or on its behalf do not enjoy any privilege or immunity.
Question 21
It is stated that the fee is fixed at 2 per cent for every import declaration.  Could Algeria
explain on which basis the fee has been determined and how it corresponds to the cost ofcustoms services?  In principle, as the fee is expressed in ad valorem rate, it cannot be
considered consistent with Article VIII of the GA TT.  The same holds true for the export fee.
Reply
Before the end of 2003, Algeria will align itself with the provisions of Article VIII of the
GATT 1994, with levies of 2 per cent and four per mil.
Question 22
It is stated that a specific surcharge is applied since 1991 and should soon disappear as a
result of its integration in the single applied customs tariff.
Reply
The specific surcharge has been abolished under the supplementary Finance Law of 2001,
which came into effect on 19 July 2001.
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
Question 23
The replies that Algeria has provided on import licensing and import procedures do not
provide complete information regarding import procedures and the licensing regime.
Is Annex 1 to document WT/ACC/DZA/13 (Annex 3 to WT/ACC/1) available?If not, could Algeria prepare this Annex agai n, reflecting current legal norms and trade
practices, including a list, by tariff line item number, of all imports subject to automatic andWT/ACC/DZA/15
Page 24
non-automatic import licensing procedures?  This should be issued in all three official
languages of the WTO, not just French.
In addition to formal import licences, th e information provided should cover border
measures applied to imports into Algeria concerning product quality and sanitary and
veterinary controls, as these operate as a form of non-automatic licensing.
The information should also cover the require ments for prior authorization or technical
certificate by certain Ministries, e.g. medicinal products (Ministry of Health), hunting weapons
(Ministry of the Interior), bookshop articles (M inistry of Information), and certain plants and
animals (Ministry of Agriculture).  These measures operate as a form of non-automatic
licensing.
Reply
The updated Annex 3 to document WT/ACC/1 reflects the current legal regulations and trade
practices, and a list by tariff heading, by product, and by HS number for all imports subject to
automatic or non-automatic licensing procedures is being elaborated.  It will be transmitted once it hasbeen finalized.
Question 24
Could Algeria please specify, by HS number,  the goods whose import is prohibited in
the country and the GATT justification for such prohibition?
Reply
Goods whose import into Algeria is prohibited (by HS number):
- Used tyres (40 12 20 00);- toys imitating handguns (95 03 90 00);
- these prohibitions have been established for reasons of security.
(f)  Import licensing procedures
Question 25
What is the timetable foreseen for the im plementation of the relevant WTO Agreement?
Reply
Under the provisional timetable for the enactment of domestic legislation and regulations
designed to ensure compliance with the WTO Agreements (document WT /ACC/DZA/Add.2), Algeria
intends to establish an import licensing regime during the first quarter of 2003.
Question 26
Please list all the goods that are subject to prior authorization or technical certification
in order to be imported into the country.WT/ACC/DZA/15
Page 25
Reply
The import of certain products (cosmetics and personal hygiene products;  consumer products
of a toxic or particularly hazardous nature (19 pr oducts);  sweetened foodstuffs, bleach, worn clothing
and worn textile articles, pharmaceutical products, hunting weapons, bookshop articles and animal
and plant products) is subject to prior authorization by the competent services.
The following is the list of consumer products of a toxic or particularly hazardous nature:- Bleaching agents (in liquid or powder form) containing chlorine;- cleaning and/or disinfecting agents, including cleaning products for enamel surfaces,
floors, windows, ovens and toilets, carpet shampoo and washing products (washingand dishwashing preparations);
- cleaning solvents (stain removers, etc.);- wax polishes:  wax preparations and turpentine or white spirit for polishing furniture
and floors.  (Wax polishes containing natural or synthetic waxes, solvents such as
petroleum hydrocarbons, turpentine, alcohols, glycols and acetates and colourings);
- products used to polish, clean or plate metal;
- anti-fungal products;
- pesticides for domestic use, including weedkillers, insecticides, rat poison,
fungicides, moth proofing;
- matches;
- products containing methyl alcohol;- paint and varnish stripper;- liquids, powders, foam and other fire extinguishing products;- anti-freeze preparations;- caustic products, including acids, mineral bases (sodium, potassium, ammonium,
ammonia), organic bases, oxidants (hypochlorites, peroxides, permanganates,perborates), aldehydes (formaldehyde, acetaldehyde, epoxides and phenols);
- anti-rust products for linen (including hydrofluoric acid and oxalic acid);- sprays (other than cosmetic and personal hygiene products);- products for children’s education and recreation such as chemistry sets or containing
accessible chemicals, children's paints and modelling clay;
- protective coatings, including paints, va rnishes, woodworm protection, polishes and
waterproofing products;WT/ACC/DZA/15
Page 26
- glues and adhesives;
- foodstuffs containing concentrated sweeteners.
Question 27
Please list all the agricultural products subject to measures at the border, describe the
types of measure and indicate the Ministry resp onsible for issuing authorizations or permits.
Reply
The following animal products and products of animal origin are subject to sanitary inspection
before import into or export from Algeria:
- Animals of the bovine, caprine, ovine, cameline and porcine species;- pet animals, including dogs and cats;
- domestic fowl (chickens, turkeys, geese, ducks, guinea fowl, etc.), as well as rabbits
and similar;
- exotic animals and birds such as canaries, parrots, pheasants, partridges, quails and
zoo animals;
- bees, fish, crayfish, snails, tortoises, frogs, snakes;- rodents;
-g a m e ;
- meat, milk and milk products, eggs, honey, wool, untreated skins, semen for artificial
insemination, zygotes;
- intestines;
- treated or processed animal products irrespective of their destination;- fodder and feeds for animal consumption.With the exception of pet animals, treated or processed animal products, irrespective of their
destination,  and concentrates for animal feeding, all the foregoing products are subject to the sanitary
waiver provided in Article 76 of Law No. 88.08 of 26 January 1988.
All plants, plant products and materials defined in Executive Decree No. 93.286 of
23 November 1993 are subject to mandatory phytosanitary inspection at Algeria’s borders.
The list of agricultural products of plant origin subject to measures at the border in
accordance with the phytosanitary regulations is attached.
The measures provided in the regulations currently in effect are applied by the competent
services of the Ministry of Agriculture and, for imported products, they concern the following:WT/ACC/DZA/15
Page 27
- Entry;
- import after disinfection;
- rejection;
- destruction.
Question 28
It is noted that the import of certain products is subject to prior authorization.  Explain
the reasons why this is not considered an import  licence.  Please provide a full list of all the
products (eight-digit HS) subject to prior authorization and the reason for this requirement.Please explain, by stages, the procedure for gr anting prior authorizations, indicating the time
needed and the criteria taken into account when deciding to grant or refuse an authorization.
Reply
The import of certain products (pharmaceutical products, medical equipment, hunting
weapons, bookshop articles and animal and plant products) is subject to prior authorization by the
competent services.
Such an authorization can, in fact, be assimila ted to a non-automatic licence in the context of
the WTO import licensing agreement.
Prior authorization by the competent authority is required before the import transaction.Imported pharmaceutical products must be listed in the nomenclature of pharmaceutical
products drawn up by the Ministry of Health and Population as products that may be imported (in
accordance with Article XX of the GATT 1994).
In order to preserve the safety of persons and goods and to maintain public order in general,
the public authorities have made the import of certain goods subject to prior authorization.  Thisapplies to the following in particular:
- Arms and ammunition (Order No. 97.06 of 21 January 1997 and Executive Decree
No. 98.96 of 18 March 1998);
- sensitive equipment such as binoculars and certain telecommunications equipment
(Interministerial Decree of 18 June 1996, amended and supplemented by theInterministerial Decree of 7 October 2000).
Certain chemicals, for example, nitrates (Interministerial Decrees of 2 March and
18 March 1996).
Armour plating (Interministerial Decree of 2 June 1996).
Regulations on explosives (Presidential Decree No. 90.98 of 30 June 1990).The time required to obtain an import authoriz ation varies according to the nature of the
product (the criteria taken into account concern inter alia  moral standards and specialization).
It should also be noted that in Algeria the possession of weapons is subject to certain prior
conditions (authorization).  The same procedure applies to the import of hunting weapons.WT/ACC/DZA/15
Page 28
The import of bookshop articles (newspapers, magazines, literary and cinematographic works)
is also subject to prior authorization by the Ministry responsible for information and culture,
essentially for reasons relating to respect for moral precepts, especially moral standards (in
accordance with Article X of the GATT 1994).
The import of animal and plant products is subject to prior authorization by the Ministry
responsible for agriculture and fisheries.
Authorizations are granted upon request addressed to the authority responsible for issuing them,
subject to proof of status as an importer and a description (or list) of the product (or products) to be
imported.
Question 29
Import licences for agricultural products.
Reply
There are no import licences in the commercial sense of the term.  The only conditions are
sanitary and phytosanitary requirements.  Under Law No. 88.08 of 26 January 1988 on veterinary
medicine and the protection of animal health and Law No. 87.17 of 1 August 1987 on phytosanitary
protection, importers of animals, animal products or products of animal origin, as well as importers of
seeds and seedlings for planting, must possess a sanitary waiver for animal products or a prior
technical authorization for seeds and seedlings issu ed by the competent national authorities (National
Veterinary Authority – National Phytosanitary Authority of the Ministry of Agriculture) based on the
sanitary or phytosanitary situation in the country of origin.
The import of phytosanitary products for agricultural use is subject to a prior technical
authorization issued by the National Phytosanitary  Authority upon request by the importer (Article 22
of Executive Decree No. 99.156 of 20 July 1999, amending and supplementing Executive Decree
No. 95.405 of 2 December 1995 on the control of phytosanitary products for agricultural use).  The
purpose of this measure is to ensure that the commercial specialty is approved in Algeria and that theproduct possesses the characteristics that led to its approval.
A sanitary waiver is a document issued after the sanitary situation in the country of export has
been ascertained and provided that no declarable disease has been reported in the place, area or
country of origin of the products concerned.
A prior technical authorization is a document which, after examination of the phytosanitary
situation in the country of export, certifies that the seeds and/or seedlings originate in regions
officially declared free of harmful organisms subject to quarantine, as defined in the Algerian
phytosanitary regulations, and have been produced in accordance with the certification and quarantine
procedures permitted by the specialized regional and international organizations.
This sanitary and/or phytosanitary information can be obtained from the following:
- Official services in the exporting country;
- International Office of Epizootics (OIE);
- Regional Plant Protection Organizations (RPPO) and the European and
Mediterranean Plant Protection Organization (EPPO).WT/ACC/DZA/15
Page 29
Imports of animals and/or seeds and seedlings are only authorized from countries where the
sanitary or phytosanitary situation is at least equivalent to that obtaining in Algeria.
Question 30
Please explain in detail the definition of “strategic foodstuffs”.
Reply
These are widely consumed products that constitute basic foods in Algeria (cereals, pulses,
milk, potatoes).
(h) Customs valuation
Question 31
Could Algeria provide more information on the working of the import duty drawback
scheme currently in place?  What are the require ments to obtain the refund of the import duty
or to avoid paying it?
Reply
There is no drawback scheme in the customs legislation.  The economic regime of temporary
admission for finishing allows the non-payment of import duties on products to be re-exported.
Question 32
Please specify which rules of the current sy stem of customs valuation differ from the
WTO requirements.  What is the timetable foreseen for the implementation of the relevantWTO Agreement?
Reply
The replies given in document WT/ACC/DZA/12 of 22 July 1998 have become out of date
since the entry into force of Law No. 98.10 of 22 August 1998, which amends and supplements Law
No. 79.07 of 21 July 1979 on the Customs Code.  Since then, the Customs Code has contained all the
provisions found in the WTO Customs Valuation Agreement.
A hard copy of the Customs Code will be available from the WTO Secretariat.Since the reform of the Customs Code (Law No. 79.07 of 21 July 1979, amended and
supplemented by Law No. 98.10 of 22 August 1998), the WTO Customs Valuation Agreement has
been integrally incorporated in Articles 16 et seq  of the code.
The customs valuation applied since that date is thus in conformity with the WTO text.  The
administered value, which affected some 1,200 out of 5,996 tariff sub-headings previously included inthe customs tariff, has been totally abolished since 19 July 2001.
Question 33
Algeria recently ended the administered value of products.  How does Algeria intend to
pursue its transparency policy in respect of prices?WT/ACC/DZA/15
Page 30
Reply
The administered value, which affected some 1,200 out of 5,996 tariff sub-headings previously
included in the customs tariff has been totally abolished since 19 July 2001
(l) Rules of origin
Question 34
We seek a commitment from Algeria that upon accession its laws and regulations on
rules of origin, for both MFN and preferential tr ade, would be applied in conformity with the
provisions of the WTO Agreement on Rules of Origin.
We also seek confirmation that Algeria’s laws  will be amended to incorporate the requirements
of Article 2(h) and Annex II, paragraph 3(d), i.e., that for non-preferential and preferential
rules of origin, respectively, the customs authority will provide upon the request of an exporter,
importer or any person with a justifiable cause an assessment of the origin of the import and
outline the terms under which it will be provided, and that any request for such an assessment
would be accepted even before trade in the goods concerned began.
Reply
Article 14 of the Customs Code provides that th e country of origin of a good is the country
where it was extracted from the subsoil, harvested or manufactured.
The customs tariff is determined on an MFN basis so the customs may require importers to
produce certificates of origin, although in practice this is rare.
The WTO Committee on Rules of Origin has not yet decided how to follow up the work
carried out by the WCO’s Technical Committee on Rules of Origin in respect of non-preferential rules
of origin.  The Doha Ministerial Declaration simply  called for the work to continue and be terminated
during 2001, but it has not yet been completed and Algeria states that, when the WTO instrument on
rules of origin has been finalized, the Customs Code will be amended and the relevant provisions of
the Agreement on Rules of Origin will be fully integrated into the law.
(m) Anti-dumping, countervailing duty, and safeguard regimes
(n) Anti-dumping, countervailing duty, and safeguard regimes
(o) Anti-dumping, countervailing duty, and safeguard regimes
Question 35
Does Algeria intend to develop specific WTO consistent rules to cover these regimes, or
would it rather undertake not to apply these duties, lacking such a regime?
Reply
The timetable for the enactment of domestic legislation or regulations designed to ensure
conformity with the WTO Agreements (doc ument WT/ACC/DZA/14/Add.2) includes the
establishment of anti-dumping, anti-subsidy and safeguard regimes compatible with the relevant
WTO Agreements.WT/ACC/DZA/15
Page 31
Question 36
In point (m) (page 51), Algeria indicates that  no anti-dumping regime has been applied
to date.  Does Algeria intend to introduce such a regime in the future?
Reply
The timetable for the enactment of domestic legislation or regulations designed to ensure
conformity with the WTO Agreements (doc ument WT/ACC/DZA/14/Add.2) includes the
establishment of an anti-dumping regime compatible with the relevant WTO Agreement.
2. Export regulation
(c) Quantitative export restrictions, including prohibitions, quotas and licensing systems
Question 37
Please give a more detailed explanation of the rules governing the export restriction of
palm tree seedlings and breeding sheep from Algeria.  What permits are needed?  Which
agencies are involved?
Reply
The following are the eight-digit tariff headin gs in the Harmonized System for which export
restrictions are in effect:
- 01 02 10 00: live breeding animals of the bovine species;- 01 04 10 10: live breeding animals of the ovine species;
- 05 08 00 00: unworked or partly worked coral;
- 06 02 99 90: palm tree seedlings;- 97 01 10 00, 97 01 90 00, 97 02 00 00, 97 03 00 00, 97 05 00 00, 97 06 00 00: objects
of national interest from the historical, artistic or architectural perspective.
At present, all these headings are subject to export restrictions.  The purpose of this measure
is to preserve the national heritage.
These export restrictions are in conformity with Article XX of the GATT 1994, including
paragraphs (b) on the conservation of animal or plant life and (f) on the protection of nationaltreasures.
(e) Other measures
Question 38
Why are minimum export prices established for the export of dates and raw hides or
skins (page 52)?WT/ACC/DZA/15
Page 32
Reply
Minimum export prices for dates and raw hides and skins are determined by comparison with
international prices in order to prevent the flight of capital as a result of under-invoicing by exporters
or tax fraud.  Exporters do not declare the true export value of these products in order to keep some of
the export revenue abroad.
Question 39
Please explain the procedures for fixing a minimum price for dates and ferrous waste.
Reply
Floor prices are fixed as follows:
- Dates:  the global market rate for Algerian dates;
- ferrous and non-ferrous waste:  the rate on the exchange (London Metal Exchange),
less a discount of 16 to 18 per cent;  and
- raw hides and skins:  the global market rate.
Question 40
It is explained that minimum prices are imposed on exports of dates, raw hides and
skins, and ferrous waste.  The reason given by Algeria is to prevent “capital flight”.
Could Algeria provide an exhaustive list of the products concerned, including the
amount of the minimum prices imposed?  Could Algeria explain what is meant by “prevent
capital flight”?  If the measure is imposed in order to prevent tax evasion or fraud, we consider
that there are ways other than imposing minimu m prices, which is a restrictive trade measure.
Does Algeria intend to deal with this particular question in another way?
Reply
The minimum prices have been established in order to prevent capital flight and protect the
balance of payments.  Capital flight is a result of under-invoicing.  It has been noted that the exporters
of these products declare export values that are well below the international price in order not to
repatriate part of the revenue derived from their exports and keep it abroad.  This under-invoicing alsohas another effect, namely, tax fraud.  We consider that fixing minimum prices for the export of these
products in comparison with international prices is the only way of preventing this capital flight and
tax fraud.
The following are the minimum prices imposed:WT/ACC/DZA/15
Page 33
Minimum Reference Price for Exports of Dates
Price per kg/f.o.b. Algerian port
Variety FF €
Deglet Nour dates on branches
In boxes
500 g. branches
1 kg. branches
2 kg. branches3 kg. and 5 kg. branches
Deglet Nour dates covered by two branches (1 kg.)14.50
14.00
13.50
13.0012.50
10.502.21
2.13
2.06
1.981.91
1.60
Deglet Nour dates not on branches
Commercial dates 1kg.
Commercial dates 1-5 kg.
Commercial dates 6-12 kg.
Pitted dates not exceeding 10 kg.9.50
9.00
9.00
Free1.45
1.37
1.37
Free
PackagedDeglet Nour dates
250 gr. trays
500 gr. trays
1 kg. container
10 kg. pack8.00
7.50
7.25
7.001.22
1.14
1.11
1.07
Deglet Frezza and Noire
10-15 kg. Pack 6.00 0.91
Deglet Nour Standard1-12 kg. pack 7.00 1.07
Regular dates
Natural tafezouine (1-5 kg.)
Packaged tafezouine (6-15 kg.)
Processed tafezouine (250 and 500 gr.)
Degla beida (10-25 kg.)6.00
5.00
Free
5.500.91
0.76
Free
0.84
Date paste 4.00 0.61
Minimum Reference Price for Exports of Raw Hides and Skins
Category of hides and skins Minimum reference price (f.o.b.
ex Algeria)
Sheep 35 FF/each
Cattle US$ 2.20/kg.
Wool US$ 1.60/kg.WT/ACC/DZA/15
Page 34
Minimum Reference Price for Exports of Ferrous and Non-Ferrous Scrap
Product Reference price
Ferrous scrap
  Solid iron
  Compacted scrap
  Unsorted scrap
  Broken cast iron
  Tin scrapUS$/tonne (f.o.b. Algerian port)
66
70
68
60
40
Non-ferrous waste
  Unsorted and compacted aluminium  Aluminium filings
  Aluminium ingots 2nd smelting
  Aluminum casing
  Copper filings
  Unsorted and compacted copper  Resmelted copper
  Brass
  Bronze
  Radiators
  Non-ferrous stainless steel  Zinc matte
  Zinc powder
  LeadFF/tonne (f.o.b. Algerian port)
6
7
7
9.5
8.20
8.20
11
6
6
4
3
4.50
2
2
(f) Export financing, subsidy and promotion policies
Question 41
Please describe any incentives offered by  Algeria to firms or individuals under the
Export Promotion Fund.
Reply
The following are the incentives granted under the Special Export Promotion Fund:
- Expenditure entailed by surveys of extern al markets, information for exporters and
studies on improving the quality of goods and services intended for export;
- State aid to promote exports through participation in foreign fairs and exhibitions;
- part of the cost of prospecting foreign markets, borne by exporters;
- cost of international transport and handling of export goods in Algerian ports;
- financing of costs incurred by adapting products to foreign markets.WT/ACC/DZA/15
Page 35
Any firm producing goods and/or services or any trader duly registered in the commercial
register and working in the export field may benefit from this support.
Question 42
Are there any export subsidies?
We seek a commitment by Algeria that such subsidies will no longer be granted after its
accession to the WTO.
Reply
At present, there is a mechanism for subsidizing exports other than hydrocarbons.
This mechanism is part of the national policy aimed at diversifying exports.In this connection, we should point out that Algeria is essentially an exporter of hydrocarbons
and the share of agricultural exports is insignificant, not exceeding 1 per cent of total export revenue.
The details of the subsidies for agricultural exports using the ACC/4 model will be
transmitted as soon as they are finalized.
Question 43
Please clarify whether Algeria maintains any subsidies that are prohibited, as defined by
Article 3 of the WTO Agreement on Subsidies and Countervailing Measures, for example.
Reply
In the export support mechanism described inter alia  in the replies to questions 95 in
document WT/ACC/DZA/4 and 64 in document WT/A CC/DZA/13, there are no import substitution
subsidies or export substitution policies incompatible with Article 3 of the WTO Agreement on
Subsidies and Countervailing Measures.
Question 44
On page 52 (WT/ACC/DZA/14/Add.1) under point (f) Algeria says that resources are
being mobilized to cover amongst other items “specific requirements with regard to export
financing”.  Could these requirements please be described?
Reply
The following are the requirements covered by the Special Export Promotion Fund:
- Expenditure incurred by surveys of external markets, information for exporters and
studies on improving the quality of goods and services intended for export;
- State aid to promote exports through participation in foreign fairs and exhibitions;
- part of the cost of prospecting foreign markets, borne by exporters;
- cost of international transport and handling of export goods in Algerian ports;
- financing of costs incurred by adapting products to foreign markets.WT/ACC/DZA/15
Page 36
3. Internal policies affecting foreign trade in goods
(b) Technical regulations and standards
Question 45
Does a single enquiry point exist that is operational and accessible to domestic and
foreign companies?
Reply
For sanitary and phytosanitary measures, Algeria currently has two separate enquiry points:
Food safety:
Centre Algérien du Contrôle de la Qualité et de l’Emballage  (Algerian Quality and Packaging
Control Centre)
RN No.5 Bab Ezzouar Dar El Beida
AlgiersAlgeria
Tel.: 213 21 24 30 35
Fax: 213 21 24 30 11
E-mail:  cacqe@mail.wissal.dz
Animals, plants and fisheries:
Sous Direction du Contrôle Sanitaire/Direction des Services Vétérinaires  (Sub-Directorate of
Sanitary Inspection/Veterinary Services Directorate )
12 Bd. Colonel AmiroucheAlgiers
Algeria
Tel: 213 21 71 17 12
Fax: 213 21 74 34 34
        213 21 74 63 33E-mail:  dsval@wissal.dz.
Question 46
What specific control measures does Algeria envisage (control of imports of agri-food
products)?
Reply
In the context of liberalizing foreign trade, “control of imports of agri-food products” should
be seen in the light of modernization of the Customs Administration and of the services dealing with
sanitary and phytosanitary inspection and quality control, in conformity with the relevant WTO rulesand with the principle of transparency.
At the domestic level, the organization of the local market and the development of
participatory mechanisms for consultation and re gulation of intertrade forums will allow proper
regulation of markets and consequently of imports.WT/ACC/DZA/15
Page 37
If domestic production is threatened, domestic legislation (Customs Code) permits the
application of safeguard measures (anti-dumping, countervailing duties …) and bans, in conformity
with the relevant WTO Agreements.
Question 47
Is there a clear distinction between compulsory technical regulations and voluntary
standards?
Reply
There is a clear distinction between compulsory technical regulations and voluntary
standards.
Article 3 of Law No. 89.02 on consumer protecti on provides that any product to be consumed
must meet the approved standards and the legal and regulatory specifications applicable to it.
Law No. 89.23 on standardization provides (Article 6) that Algerian standards include
approved standards and registered standards.
Approved standards (Article 7) are compulsory whereas registered standards (Article 8) are
voluntary.
Question 48
Are there any compulsory elements in the voluntary standards?
Reply
The voluntary standards do not contain any mandatory provisions.
Question 49
Are compulsory technical regulations a nd standards aligned with international
standards, if there are exception s, what is their justification?
Reply
Algeria’s technical regulations and standards are aligned with international standards.  Where
exceptions occur, they concern misrepresentation, consumer health and/or safety.
Question 50
Does Algeria participate in international standardization bodies?
Reply
Algeria is a member of the various internat ional standardization bodies, including the Codex
Alimentarius , ISO, OIE, IPPC, ITU, IEC, etc.
Question 51
Can Algeria assure openness and transparency in the drafting of technical regulations,
standards, etc.?WT/ACC/DZA/15
Page 38
Reply
The draft standardization law, which is one of the legislative modifications communicated to
the WTO Secretariat by Algeria, will include rules on transparency.
An administrative procedure will be drawn up prior to adoption of the draft law in order to put
in place the mechanisms required to implement these rules.
For this purpose, Algeria will request technical assistance from the members of the WTO.
Question 52
Does Algeria apply a modular approach to conformity assessment, including the
possibility of acceptance of the manufacturer’s declaration?
Reply
Conformity with the technical regula tions can be assessed in two ways:
- Through the operator
Any product to be consumed must first of all undergo a conformity inspection to ensure that it
meets the approved standards and technical regulatio ns applicable to it (Article 5 of Law No. 89.02).
This self-regulation obligation is governed by Decree No. 93.47 on conformity control of
locally-manufactured or imported products.
The submission of a conformity certificate attesting that the product meets the approved
standards and legal specifications suffices to meet this obligation.
The conformity certificate is drawn up under the responsibility of the economic operator at the
production unit level, upon shipment, in the port or on unloading, using the operator’s own inspectionresources, the services of a testing laboratory or any other national or foreign testing body.
- Through the administrative authority
In accordance with Article 14 of Law No. 89.02, as part of its prevention role, the
administrative authority may undertake conformity inspection at various stages when a product is put
up for consumption.
Conformity assessment in relation to voluntary standards:There is a mark called the TEDJ, which shows conformity with national standards, and use of
this mark is voluntary.
The method for assessing conformity in order to obtain this mark corresponds to ISO
system No. 5.
Question 53
Does a clear definition of the products subject to mandatory certification, aimed at
avoiding the inclusion of low-risk products and repetitive certification procedures applied to
similar products, exist?WT/ACC/DZA/15
Page 39
Reply
The purpose of inspection at the border is to verify that the imported products comply with the
technical regulations and it is governed by D ecree No. 96.354, amended and supplemented by Decree
No. 2000.306.
The technical regulations applicable to imported products are the same as those applicable to
local products.
The list of products subject to systematic inspection is determined in regulatory provisions.
Priority is given to food, cosmetic and personal hygiene products in view of their risks for consumer
health and safety.
Question 54
Does Algeria have a market surveillance sy stem coupled with appropriate horizontal
product liability legislation?
Reply
Law No. 89.02 on the general rules for consumer protection grants the right to protection
against any risks or other misrepresentation resulting from placing products or services on the market.
In order to guarantee such protection, the Law provides for the following:- The establishment of specialized bodies;  and
- the definition of a regulatory framework assuring the quality and safety of products
and services.
The specialized institutions include officials trained in quality control and the suppression of
fraud, as well as official laboratories responsible for testing samples taken by the aforementionedofficials.
The legislative and regulatory provisions contained in Law No. 89.02 govern these institutions’
activities.  The regulatory framework is composed of horizontal rules (labeling, materials in contact,
hygiene, additives, etc.) and vertical rules by product group or by product (milk, sugar, other
products).
Question 55
Does a TBT single enquiry point exist that is operational and accessible to domestic and
foreign companies?
Reply
At present, Algeria has the following special enquiry points:WT/ACC/DZA/15
Page 40
For voluntary standards:
Institut algérien de normalisation (Algerian Standardization Institute)
5 rue Abou Hamou Moussa
16000 Algiers
AlgeriaTel:  213 21 64 20 75
Fax:  213 21 64 17 61
http://www.ianor.org
E-mail:  ianor@wissal.dz
For technical regulations:
Centre Algérien du Contrôle de la Qualité et de l’Emballage  (Algerian Quality and Packaging
Control Centre)
RN No.5 Bab Ezzouar Dar El Beida
Algiers
AlgeriaTel.: 213 21 24 30 35
Fax: 213 21 24 30 11
E-mail:  cacqe@mail.wissal.dz
These newly-designated enquiry points will be given working procedures that define the ways
in which this obligation is assumed.
Domestic operators will be informed, by various means, of the establishment of these enquiry
points and of their importance in facilitating the exchange of information on target markets.
Question 56
On page 58 (WT/ACC/DZA/14/Add.1) under the title “implementing regulations”
Decree No. 93.47 (control of the quality and conformity of imported or exported products) and
Decree No. 96.354 (control of the conformity and quality of imported products) are mentioned.What is the relationship between these tw o Decrees?  Does Decree No. 96.354, which only
applies to imported products, establish rules on imports that could be prejudicial to imported
products?
Reply
Decree No. 93.47 concerns control of the conformity of products manufactured locally or
imported.  Its purpose is to implement the obligation imposed by Article 5 of Law No. 89.02 on the
general rules of consumer protection.  This obligation applies to local manufacturers and importers
and concerns the need to ensure the conformity of products put up for consumption.
Decree No. 96.354 of 19 October 1996 on procedures for controlling the conformity and
quality of imported goods, amended and supple mented by Decree No. 2000.306 of 12 October 2000,
lays down the procedures for determining the list of  products subject to systematic inspection prior to
entry into Algeria, together with the inspection procedures.
The Interministerial Decree of 3 January 1998 establishes the list of imported products subject
to the aforementioned inspection.WT/ACC/DZA/15
Page 41
Question 57
Please clarify if the term “quality” involves technical regulations applied for health and
safety purposes or if it is a standard regulating a range of possible “qualities” of imported
goods.
Reply
According to Article 3 of Law No. 89.02 on consumer protection, a product or service put up
for consumption must meet the applicable approved standards and legal and regulatory specifications.
Consequently, the concept of quality means the conformity of the product with the technical
regulations.
Question 58
Are these quality requirements mandatory?  If so, how are they enforced for both
imports and domestic products, e.g., by require ment for prior authorization, registration,
certificate, testing, etc.?
Reply
The regulatory requirements are mandatory.
They are enforced in accordance with the provisions in Law No. 89.02, in particular Articles
5, 10 and 16, which provide the following:
A self-regulation requirement for all those involved in putting products up for consumption.
Its cost is met by the seller (Decree No. 93.47 of 6 February 1993, amending Decree No. 92.65 on
control of the conformity of locally-manufactured or imported products (Article 5)).
The mandatory control of imported products to ensure that they meet the legal and regulatory
requirements.  This provision is enforced pursuant to Decree No. 2000.306 of 12 October 2000,amending and supplementing Decree No. 96.354 of 19 October 1996 on procedures for controlling
the conformity and quality of imported products (Article 10).
Toxic or particularly hazardous products must be authorized before they can first be produced
and/or put on sale on the domestic market (Article 16).
Prior authorization for the manufacture and import of toxic or particularly hazardous
products.  The list of such products is established by the legal regulations.
Prior declaration before manufacturing or importing cosmetic and personal hygiene products.
Question 59
Please give specific examples and a comprehens ive list, by HS tariff line, of the products
subject to this regime.  Does Algeria intend to go beyond the current three product categories?
Reply
The Order of 3 January 1998, supplementing that of 3 March 1997, establishes the list of
imported products subject to systematic inspection at the border.WT/ACC/DZA/15
Page 42
Products listed in the Decree of 3 March 1997
No. of customs tariff Product
04.01 Milk and cream, not concentrated nor containing added sugar or other
sweetening matter
04.02 Milk and cream, concentrated or containing added sugar or other
sweetening matter
04.03 Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented
or acidified milk and cream, whether or not concentrated or containing
added sugar or other sweetening matter or flavoured or containing added
fruit or cocoa
04.04 Whey, whether or not concentrated or containing added sugar or other
sweetening matter, products consisting of natural milk constituents,
whether or not concentrated or containing added sugar or other
sweetening matter, not elsewhere specified or included
04.05 Butter and other fats and oils derived from milk
04.06 Cheese and curd
04.09 Natural honey
04.10 Edible products of animal origin, not elsewhere specified or included
07.01 Potatoes, fresh or chilled
07.02 Tomatoes, fresh or chilled
07.03 Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or
chilled
07.13 Dried leguminous vegetables, shelled, whether or not skinned or split
09.01 Coffee, whether or not roasted, coffee husks and skins, coffee substitutes
containing coffee, in any proportion
09.02 Green tea, whether or not flavoured
09.04 Pepper (of the genus Piper);  dried or crushed or ground fruits of the
genus Capsicum, or of the genus Pimenta
10.06 Rice
11.05 Flour of cereals other than wheat flour, semolina, powder, flakes, granules
and pellets, of potatoes
12.02 Groundnuts, not roasted or otherwise cooked, whether or not shelled or
broken
12.07 Other oilseeds, whether or not broken
15.07 Soyabean oil and its fractions, whether or not refined, but not chemically
modified
15.08 Groundnut oil and its fractions, whether or not refined, but not chemically
modified
15.09 Olive oil and its fractions, whether or not refined, but not chemically
modified
15.10 Other oils and their fractions, obtained solely from olives, whether or not
refined, but not chemically modified, including blends of these oils or
fractions of heading No. 15.09
15.11 Palm oil and its fractions, whether or not refined, but not chemically
modified
15.12 Sunflower-seed, safflower or cotton-seed oils and fractions thereof,
whether or not refined, but not chemically modified
15.17 Margarine,  mixtures or preparations of animal or vegetable fats or oils or
fractions of different fats or oils of this Chapter other than edible fats or
oils or their fractions of heading No. 15.16WT/ACC/DZA/15
Page 43
No. of customs tariff Product
16.02 10-00
20-00
31-00
39-00Other prepared or preserved meat, meat offal or blood – Homogenized
preparations.  Liver of any animal – of turkeys – other
16.04 Prepared or preserved fish;  caviar and caviar substitutes prepared from
fish eggs
17.01 Cane or beet sugar and, chemically pure saccharose, in solid form
17.02 Other sugars, including chemically pure lactose, maltose, glucose and
fructose (levulose), in solid form;  sugar syrups not containing added
flavouring or colouring matter;  artificial honey, whether or not mixed
with natural honey;  caramel
17.03 Molasses resulting from the extraction or refining of sugar
17.04 Sugar confectionery (including white chocolate), not containing cocoa
18.01 Cocoa beans, whole or broken, raw or roasted
18.02 Cocoa shells, husks (skins) and other cocoa waste
18.03 Cocoa paste, whether or not defatted
18.04 Cocoa butter, fats and oil
18.05 Cocoa powder, not containing added sugar or other sweetening matter
18.06 Chocolate and other food preparations containing cocoa
19.01 Malt extract;  food preparations of flour, meal, starch or malt extract, not
containing cocoa powder or containing cocoa powder in a proportion by
weight of less that 40 per cent calculated on an entirely defatted basis, not
elsewhere specified or included;  food preparation of goods of headings
Nos. 04.01 to 04.04 not containing cocoa powder or containing cocoa
powder in a proportion by weight of less than 5 per cent calculated on an
entirely defatted basis, not elsewhere specified or included
19.02 Pasta, whether or not cooked or stuffed (with meat or other substances) or
otherwise prepared such as spaghetti, macaroni, noodles, lasagne,
gnocchi, ravioli, cannelloni;  couscous, whether or not prepared
19.03 Tapioca and tapioca substitutes prepared from starch, in flakes, grains,
pearls, siftings or in similar forms
19.04 Prepared foods obtained by the swelling or roasting of cereals or cereal
products (for example, cornflakes);  cereals, other than maize (corn), in
grain form, pre-cooked or otherwise prepared
19.05 Bread, pastry, cakes, biscuits and other bakers' wares, whether or not
containing cocoa, communion wafers, empty cachets of a kind suitable for
pharmaceutical use, sealing wafers, rice paper and similar products.
20.01 Vegetables, fruit, nuts and other edible parts of plants, prepared or
preserved by vinegar or acetic acid
20.02 Tomatoes, prepared or preserved otherwise than by vinegar or acetic acid
20.03 Mushrooms and truffles, prepared or preserved otherwise than by vinegar
or acetic acid
20.04 Other vegetables, prepared or preserved otherwise than by vinegar or
acetic acid
20.05 Other vegetables, prepared or preserved otherwise than by vinegar or
acetic acid, not frozen
20.06 Vegetables, fruit, nuts, fruit peel and parts of plants, preserved by sugar
(drained, glacé or crystallized)
20.07 Jams, fruit jellies, marmalades, fruit or nut puree and fruit or nut pastes,WT/ACC/DZA/15
Page 44
No. of customs tariff Product
being cooked preparations whether or not containing added sugar or other
sweetening matter
20.08 Fruit, nuts and other edible parts of plants, otherwise prepared or
preserved,  whether or not containing added sugar or other sweetening
matter or spirit, not elsewhere specified or included
20.09 Fruit and vegetable juices (including grape must), unfermented and not,
containing added spirit, whether or not containing added sugar or other
sweetening matter
21.01 Extracts, essences and concentrates of coffee, tea or maté and
preparations with a basis of these products or with a basis of coffee, tea or
mate;  roasted chicory and other roasted coffee substitutes and  extracts,
essences and concentrates thereof
21.02 Yeasts (active or inactive);  other single-cell microorganisms, dead (but
not including vaccines of heading No. 30.02);  prepared baking powders.
21.03 Sauces and preparations therefor;  mixed condiments and mixed
seasonings;  mustard flour and meal and prepared mustard
21.04 Soups and broths and preparations therefor;  homogenized composite
food preparations
21.05 Ice cream and other edible ices, whether or not containing cocoa
21.06 Food preparations not elsewhere specified or included
22.01 Waters, including natural or artificial mineral waters and aerated waters,
not containing added sugar, or other sweetening matter, not flavoured;
ice and snow
22.02 Waters, including mineral waters and aerated waters, containing added
sugar or other sweetening matter, not flavoured and other non-alcoholic
beverages, not including fruit or vegetable juices of heading No. 20.09
22.03 Beer made from malt
25.01 Salt (including table salt and denatured salt) and pure sodium chloride,
whether or not in aqueous solution or containing added anti-caking or
free-flowing agents;  sea water
Products listed in the Decree of 3 January 1998
No. of customs tariff Product
10.01 Wheat and meslin
10.02 Rye
10.03 Barley
10.04 Oats
10.05 Maize (corn)
10.07 Grain sorghum
11.01 Wheat or meslin flour
11.02 Cereal flours other than of wheat or meslin
11.06 Flour, and meal of the dried leguminous vegetables of heading No. 07-13,
of sago of roots or tubers of heading No. 07-14 and products of Chapter 8
22.09 Vinegar
33.03 Perfumes and toilet waters
33.04 Beauty or make-up preparations and preparations for the care of the skin
(other than medicaments), including sunscreen or sun-tan preparations;WT/ACC/DZA/15
Page 45
No. of customs tariff Product
manicure or pedicure preparations.
33.05 Preparations for use on the hair
33.06 10.00 V
33.06 90.00 RDentifrices
Other
33.07 Pre-shave, shaving or after-shave preparations, personal deodorants, bath
preparations, depilatories and other perfumery, cosmetic or toilet
preparations not elsewhere specified or included, prepared room
deodorizers;  whether or not perfumed or having disinfectant properties
34.01 11.90 K Other
The list of categories of product subject to this regime cannot be exhaustive; it may be
enlarged or reduced according to control requir ements and the existing verification potential.
Question 60
Please provide specific information on what the requirements are for these three
product categories, and whether the requirements are limited to health and safety
considerations.
Reply
The requirements are those on the need to comply with technical regulations (labeling,
composition and the absence of harmful effects).
Yes, these requirements are limited to health and safety considerations.
Question 61
Can foreign laboratories be approved for quality control?
Reply
Algerian legislation does not at present contain any provisions allowing foreign laboratories
to be approved.
Question 62
Please provide information on how the quality promotion programme launched by
IANOR in 1992 will affect foreign products in commercial transactions.
Reply
The purpose of this programme is to establish a national accreditation and certification
mechanism in accordance with international standards and guidelines (ISO).
The aim is to enhance the management of national enterprises and the competitiveness of
locally-manufactured products.
Following Decree No. 2000.111 of 10 May 2000, this mechanism led to the creation of the
Algerian National Council for the Accreditat ion of Conformity Assessment Bodies  ( Conseil algérien
d’accréditation des organismes d’évaluation de la conformité ).  The text lays down theWT/ACC/DZA/15
Page 46
responsibilities, organization and operating rules of the Council and sets out the procedure for
accrediting conformity assessment bodies.  It is not in any way intended to have a negative impact on
commercial transactions in foreign products.
(c) Sanitary and phytosanitary measures
- Animal health measures
Question 63
Could Algeria please inform about the programmes for the eradication of animal
diseases currently being implemented?  Could Algeria also please inform of its sanitary status
for various species?
Reply
Pursuant to Law No. 88.08 of 26 January 1988 and Decree No. 95.66 of 22 February 1995
establishing the list of animal diseases subject to compulsory declaration and the general measures
applicable to them, Algeria has listed 47 diseases that must be declared and are the subject of specialmeasures.
In addition, sheep and goat pox (disease on list A of the International Organization of
Epizootics) is the subject of medical treatment (vaccination) annually.
Lastly, there are programmes for detecting, diagnosing and eradicating the following diseases:
- Animal brucellosis;- animal tuberculosis;  and- animal rabies.Foot-and-mouth disease may be the subject of vaccination of bovine animals if the sanitary
situation deteriorates in neighbouring countries and the Mediterranean region.
At present, Algeria is free of this disease.  The health of ovine animals is regularly monitored.
Question 64
What disease controls and eradication plans are really carried out in Algeria?
Reply
Monitoring and combating regulated organisms that are not subject to quarantine are
governed by Executive Decree No. 95.387 of 28 November 1995.  The implementation of the
operations is covered by Phytosanitary Directive No.338 of 27 May 1996 on monitoring andcombating agricultural diseases.
The implementation of operational plans specific to categories of crop pests is regularly the
subject of ministerial orders, the latest of which concerns locusts.
To date, the ongoing programmes to monitor and combat disease concern desert locusts
(Schistocerca gregaria) , Moroccan locusts ( Dociostaurus maroccanus ), grasshoppers ( CalliptamusWT/ACC/DZA/15
Page 47
barbarus and Oedaleus decorus ), cereal beetles (A elea germary ), and Shaw’s jird ( Meriones shawi
spp-M. crassus-M. libycus ).
As regards harmful organisms subject to quarantine, operations to detect and eradicate the
following are regularly carried out:  Bayoud disease ( Fusarium oxysporum f.sp. Albedinis ), the carob
moth ( Ectomyelois ceratoniae ), citrus leaf miner ( Phyllocnistis citrella ), and potato tuber worm
(Phtorimoaea operculella ).
Question 65
Could Algeria please provide a list of plant pests and the monitoring and control
measures applicable to them?
Could Algeria please provi de a copy of Decree No.  93.286 of 23 November 1993?
Reply
The list of plant pests and the applicable monitoring and control measures are governed by the
regulatory texts.  Algeria will provide the WTO Secretariat with a copy of these texts in French,
namely:
- Executive Decree No. 95.387 of 28 November 1995, establishing a list of plant pests
and the surveillance and control measures applicable to them;  and
- Phytosanitary Directive No. 388 of 27 May 1996 on monitoring and combating
agricultural diseases.
It should be noted that this list comprises two categories:
- List A of 19 harmful organisms that must be combated (13 nematodes, 1 cryptogram
and 2 parasitic plants);  and
- List B of agricultural diseases (harmful organisms not subject to quarantine)
comprising 19 organisms (11 insects, 4 birds and 4 mammals).
Question 66
Sanitary and phytosanitary measures, including import-related measures.
Reply
All sanitary and phytosanitary measures taken during controls at the border are in compliance
with the provisions of Article 2 (paragraphs 1, 2, 3 and 4) of the Agreement on the Application of
Sanitary and Phytosanitary Measures (SPS Agreement).
They are established on the basis of the OIE’s International Animal Health Code and the
International Plant Protection Convention, as well as on the international rules on phytosanitary
measures of the Convention’s Commission.
For food products, the sanitary measures regarding the innocuity of products are incorporated
in the technical regulations drawn up on the basis of the specific rules in the Codex Alimentarius .  All
these provisions are in compliance with the SPS Agreement.
Question 67WT/ACC/DZA/15
Page 48
Algeria’s commitment to the SPS Agreement.
Reply
Algeria’s animal health and phytosanitary regulations are based on the provisions and
recommendations in the International Animal Health Code of the International Office of Epizootics,
the revised International Plant Protection Convention and the specific rules in the Codex Alimentarius .
All these provisions are in compliance with those in the SPS Agreement.Algeria bases itself on the risk assessment covered by Article 5 of the Agreement when taking
the appropriate sanitary and phytosanitary measures.
Enquiry points have been set up in accordance with the SPS Agreement and, as required by
Article 7 on transparency, all changes to sanitary or phytosanitary measures will be notified to
members.
In addition, Algeria’s trade with the member countries of the WTO in animals and animal and
plant products is important and Algeria already applies the principle of equivalence of sanitary and
phytosanitary measures, as required by Article 4.  Moreover, it already has a number of bilateral
sanitary agreements.
Question 68
Representation and responsibilities of the Government.
Reply
The Ministry responsible for Agriculture represents the Government for animal health and
phytosanitary matters pursuant to Law No. 88.08 of 26 January 1988 on veterinary medicine and the
protection of animal health and Law No. 87.17 of 1 August 1987 on phytosanitary protection.
It is represented at the central level through two central Directorates (the Veterinary Services
Directorate and the Directorate of Plant Protection and Technical Control), as well as at the local level
through veterinary and phytosanitary inspections in the wilayas  (departments) and its components
(dairas  and communes).
Question 69
Relationship between the SPS Agreement and quality control.
Reply
Quality control in the context of the SPS Agreement means the sanitary quality of a product.
The relationship between quality control and the SPS Agreement is thus seen from the point of view
of the sanitary safety of the food product.  This task is undertaken by the quality control services
belonging to the Ministry of Trade.
Question 70
Relationship with international organizationsWT/ACC/DZA/15
Page 49
Reply
Algeria is a member of the International Office of Epizootics.  It also belongs to the
administrative commission of the OIE’s intern ational committee and the commission on the
International Animal Health Code.
As regards plants, Algeria is a member of the European and Mediterranean Plant Protection
Organization and is an elected member of its executive committee.
Algeria is also a member of the Codex Alimentarius  and regularly takes part in the work of its
specialized committees.
Question 71
Relationship with the IPPC.
Reply
Algeria regularly takes part in the activities (sessions and technical meetings) of the Interim
Commission on Phytosanitary Measures (ICPM) set up under the revised International Convention on
Plant Protection.  It has also recently deposited the instruments of acceptance of the revised text, as
approved by Resolution 12/97 of the Conference of the United Nations Food and Agriculture
Organization at its twenty-ninth session.
Algeria has officially become a candidate for election to the subsidiary dispute settlement
body of the ICPM for FAO’s Africa Region.
Question 72
Quality control of foods.
Reply
See the reply to question 55.
Question 73
Concept of food health safety.
Reply
Algeria attaches great importance to food health safety, particularly through risk assessment
and management, supported by the creation of the National Toxicology Centre two years ago, whose
responsibilities concern the effects of pesticide residues, heavy metals and other contaminants.  The
microbiological and isotopic aspects have traditionally been the responsibility of existing testinglaboratories.
The health safety of food concerns both locally-produced and imported foods.
Question 74
Reference basis for risk assessment.WT/ACC/DZA/15
Page 50
Reply
Risk assessment references are essentially based on international references and standards
(Codex Alimentarius , the International Animal Health Code of the International Office of Epizootics,
the International Plant Protection Convention).
Question 75
Acceptance of international regulations.
Reply
Algeria’s animal health and phytosanitary regulations are mainly based on standardized
scientific principles founded on the rules adopted by various committees of experts in the
International Animal Health Code of the International Office of Epizootics, the International Plant
Protection Convention, the commission of the Codex Alimentarius .
In its trade relations, Algeria already applies international regulations such as those mentioned
in Article 4 of the SPS Agreement.
(e) State trading practices
Question 76
Explain the business and role of the Al gerian Inter-Trade Cereals Board (OAIC)
Reply
Trade in cereals has been fully liberalized since 1997 so the Algerian Inter-Trade Cereals
Board (OAIC) no longer has a m onopoly or any special privileges.
Since that date, the Board has been restructured and given the status of a public institution of
an industrial and commercial nature (Executive Decree No. 97.94 of 23 March 1997) whose role is to
ensure regulation of the market.
The role of the OAIC is to organize, supply, stabilize and regulate the domestic market for
cereals and cereal products for the common benefit of producers and consumers.
The Board plays a public service role and is responsible inter alia  for the following:
- Through the cereals and dried vegetables cooperatives, collecting and storing
domestic production and continuing to ensure payment in cash for their crops;
- financing and executing special action programmes for the development of cereal
farmers;
- on behalf of the State, implementing and managing the various price equalization,
stabilization and harmonization mechanisms for cereals (and their by-products);
- ensuring the constitution and management of stocks;
- through its intertrade bodies, defining and proposing the mechanisms for fixing the
price of cereals and cereal products.WT/ACC/DZA/15
Page 51
(f) Free zones
Question 77
Algeria has stated in W/T/ACC/DZA/13 that “Investment in free zones is in export-
oriented activities”.  How is it determined that the firms are engag ing in export-oriented
activities?
If the zones, and their benefits, are not available to firms that are not export-oriented,
then the benefits are prohibited subsidies.  Please explain whether Algeria intends to offer
export-related incentives to companies operating  in the free zones pursuant to Legislative
Decree No.  93.12.  If so, explain precisely what types of incentives will be offered, and whether
they will be contingent upon being an “export-oriented” firm.
Reply
Legislative Decree No. 93.12 has been repealed (Investment Code).
In this connection, Algeria is presently finalizing special regulations on free zones and these
will be transmitted when they have been finalized.
(i) Mixing regulations
Question 78
Please confirm whether the mixing regulations enforced by Executive Decree No. 92.42
of 4 February 1992 on prior authorizations for the manufacture of toxic or particularly
hazardous products require the use of domestic inputs if imports are used.
Reply
Decree No. 92.42 of 4 February 1992 was repealed in 1997 by Executive Decree No. 97.254
of 8 July 1997 on prior authorization for the manufacture and import of toxic or particularly
hazardous products.  This Executive Decree lays down the conditions and procedures for the issue or
withdrawal of prior auth orization for the manufacture and/or import of consumer products that are
toxic or particularly hazardous for consumers.  It concerns the final product to be used personally by
the consumer.  Products used in a professional activity are not considered consumer products within
the meaning of the Executive Decree.
It should be noted that Algeria does not have any regulations containing measures relating to
mixtures.
(j) Government-mandated counter-trade and barter
Question 79
Please confirm that barter imports are subject to the same taxes, tariffs and other
border measures applied to other imported goods.
Reply
Algeria confirms that the same customs duties and taxes apply to border barter transactions.WT/ACC/DZA/15
Page 52
(l) Government procurement practices
Question 80
Please list all the central Government bodies (Ministries, departments, agencies, etc.)
which procure goods, services or construction services.
Reply
According to Algeria’s government procurement legislation, buyers in the public sector who
procure goods or services or undertake construction projects are all public authorities, autonomous
national institutions, wilayas , communes, public establishments of an administrative nature under
Ministries, wilayas  or communes, and public establishments  of an industrial or commercial nature if
they are responsible for carrying out public investment projects with the support of the State budget.
Question 81
Please list all the “institutions and establishments of an administrative nature” (or the
categories of institution and establishment).
Reply
See the reply to question 80.
Question 82
What entities of the sub-central level of the Government ( wilaya, daira, commune)
procure goods, services or construction services?
Reply
See the reply to question 80.
Question 83
Are there any general exceptions to the sc ope of Decree No. 91.434 of 9 November 1991?
Please provide details.
Reply
The provisions of Executive Decree No. 91.434 of 9 November 1991 regulating government
procurement apply to procurement by the aforementioned bodies, irrespective of the nature or type of
expenditure involved.
The exceptions to the scope of the above-mentioned Decree concerning contracts for
insurance, transport, supplies, and water, electr icity or gas supply, will be repealed when the
Government Procurement Code is revised following the abolition of these sectors’ monopolies.
Question 84
Please provide statistics on government procurement by administrative bodies,
decentralized bodies and other public bodies over the past two years including, where possible,
the share for each entity and by category of product, service or works.WT/ACC/DZA/15
Page 53
Reply
The statistics available concern procurement that went directly through the National
Procurement Commission (which has competence for overseeing procurement of national importance
in view of the amount involved).  The Commissi on reviewed 129 instances of procurement in 2001,
for a total of DA 119 billion, concerning all markets and broken down as follows:
- DA 41 billion with Algerian suppliers;- DA 78 billion with foreign suppliers;- public works accounted for 54 per cent of the total;
- supplies for 27 per cent;  and
- services for 19 per cent.
Question 85
Are there any provisions in the domestic legislation giving domestic products and
suppliers more favourable treatment than that given to foreign products or suppliers from any
country?  If this is the case, please give details.
Reply
Algeria’s current government procurement legislation obliges public operators to give priority
to available domestic production.
In addition, any co-contractor selected must be able to meet demand on market terms and
undertake to give priority to domestic production.
This provision will be revised when the reform of the Government Procurement Code
currently being examined by the Government is finalized by giving Algerian firms a right ofpreference for all types of procurement, at an equivalent level of quality.
This preference will be extended to joint enterprises.The right of preference must be clearly stated in the instructions given to bidders and must be
applied when the financial terms of the bids are assessed.
The preferential percentage fixed will be reduced over time.
Furthermore, preference will be given to foreign enterprises which sub-contract shares or
products to the domestic market.
Question 86
Do some sectors of the economy, regions or specific categories of suppliers or products
receive more favourable treatment?  If this is the case, please give details.
Reply
No special (favourable) treatment is given to any particular sector or region.WT/ACC/DZA/15
Page 54
Question 87
Are there any provisions requiring or allowi ng the use of compensation mechanisms or
measures having a similar effect, for example, content of domestic origin, transfer of technology,
investment, counter-trade or similar requirement s for the qualification or the selection of
suppliers, products or services when assessing tenders and awarding contracts?
Reply
Algeria’s government procurement legislation do es not contain any provision authorizing the
use of compensation or measures having a similar effect.
Question 88
Please provide a general description of your existing procurement procedures and the
extent to which each one is used for each level of government.
Reply
Government procurement is regulated according to various methods of awarding contracts:
- The general rule is an invitation to tender, which may take different forms:
- open invitation to tender;
- selective invitation to tender;
- selective consultation;
- adjudication;
- competition.
Open invitation to tender is a procedure by which any candidate can bid.Selective invitation to tender is the procedure whereby only candidates that meet certain special
conditions defined in advance by the contracting service may bid.
Selective consultation is the procedure whereby candidates authorized to bid are specifically
invited to do so after being pre-selected.
For complex engineering works or works of special importance and/or the purchase of special
supplies on a regular basis, firms or entities that are qualified and included in a short list drawn up by
the contracting service on the basis of pre-selection renewable every three years may be consulteddirectly.
Adjudication is the procedure whereby a contract is awarded to the bidder submitting the best
bid.  This is done for straightforward every-day operations and only concerns national or foreign
candidates established in Algeria.
Competition is the procedure whereby persons skilled in the art compete with each other with a
view to carrying out an operation that has special technical, economic, aesthetic or artistic aspects.
Simple mutual agreement or agreement after consultation is an exceptional procedure that can
only be followed in special cases.
Simple mutual agreement is the procedure whereby the contracting service awards a contract to
a supplier with whom it has chosen to enter dire ctly into negotiation without prior competition.WT/ACC/DZA/15
Page 55
Simple mutual agreement is restricted to the following cases:
- When the contract can only be undertaken by a single co-contractor that either has a
monopoly of or exclusive title to a technological process decided upon by the
contracting service;
- where open competition has not been successful;
- in cases of urgent necessity due to an imminent threat to a good or investment that
means the time limit for invitations to tender cannot apply;
- where the supplies are urgently needed to safeguard the functioning of the economy
or the population’s essential needs.
Mutual agreement after consultation is the procedure whereby the contracting service awards
the contract to a supplier or entrepreneur chosen as a result of a prior  competition.
The contracting service places several partners in competition, selected from a drawn up list
on the basis of criteria, in particular, their qualifications.
The invitation to compete must be in writing (fa x, telex, letter) addressed to the competitor
without any prior publicity.
Question 89
Are there permanent lists of qualified suppliers?  If so, what are the provisions ensuring
non-discriminatory access of new suppliers to existing lists?
Reply
There is no permanent list of qualified suppliers;  there are sectoral lists.
Question 90
Are procuring entities allowed to proceed to negotiation?  If so, what are the conditions
imposed?
Reply
Negotiations are not authorized.
Question 91
What are the conditions and circumstances fo reseen in your legislation allowing the use
of the limited tendering method under Ar ticle XV of the Agreement on Government
Procurement?  What measures exist in order to ensure that this method is not used with a view
to avoiding maximum possible competition or in a manner which would constitute a means of
discriminating among foreign supplies/suppliers or in favour of domestic supplies/suppliers?WT/ACC/DZA/15
Page 56
Reply
According to Algeria’s government procurem ent legislation, selective tendering is the
procedure whereby only candidates that meet certain special conditions defined in advance by the
contracting service may bid.
This procedure is mainly used for infrastructure works or complex studies or the purchase of
special supplies that require technical expertise not available locally and often involves the choice of
an international enterprise that can rely on lo cal sub-contractors for part of the contract.
Question 92
Article XI of the Agreement on Government Procurement sets out the minimum time-
periods for tendering and delivery.  What are th e rules and practices regarding the time-periods
in your legislation?
Reply
Algeria’s procurement legislation does not set any minimum time limit for submitting bids
and this is left up to each public service, which de termines it in the light of the nature and complexity
of the contract and the time usually required for sending in bids.  This time limit should be sufficient
to allow all the bidders to study the conditions of the tender and submit a suitable bid.
Question 93
Please describe the procedures for the subm ission, receipt and opening of tenders and
awarding of contracts, in particular the proced ures and conditions guaranteeing regularity of
the opening and consistency with the non-discrimination provisions of the Agreement onGovernment Procurement
Reply
The documentation on tenders made available to bidders contains all the information needed
to allow them to submit acceptable bids (Article 44 of Executive Decree No. 91.434).
The time limit and the place for submitting of the bids must be mentioned in the invitation to
tender;  the envelopes must be anonymous and the bids submitted in two sealed envelopes with the
indication “Do not open” and the references of the invitation to tender.
The commission that opens the bids meets in public on the last day of the period allowed for
submitting bids.
The procedure for evaluating bids is that, during the first phase, the bids are classified in
technical order;  bids that are not awarded a minimu m mark, as provided in the instructions to bidders,
are eliminated.
At the conclusion of an overall technical and financial evaluation, the most economically
advantageous bid is selected according to the selection criteria and their respective weighting, which
were made known to the bidders in the conditions of the invitation to tender.WT/ACC/DZA/15
Page 57
Question 94
The Agreement on Government Procurement foresees the publication of laws,
regulations, judicial decisions, administrative rulings of general application.  Please give the
name of the publication(s) to be used for this purpose.  Please also provide, where available, the
address of an Internet site where the procurement legislation can be found.
Reply
The laws and regulations are published in the Official Journal of the Algerian Republic.
Question 95
The Agreement on Government Procurement foresees the publication of invitations to
participate for all cases of intended procurement by entities.  Please give the name of the
relevant publication(s).  Please also provide, wh ere available, the address of an Internet site
where such invitations are published.
Reply
Invitations to tender must be published in the Official Procurement Bulletin of Public Entities
(Bulletin Officiel des Marchés de l’Opérateur Public (BOMOP)), which can be read on the Internet,
and in at least two widely disseminated newspapers authorized to publish legal announcements.  Atpresent, there is no mechanism for the electronic submission of bids for government procurement.
Question 96
What are the types of information that your legislation requires to be included in notices
of invitation to tender?
Reply
Notices of invitations to tender must indicate the following:
- Official name and address of the public entity;
- form of tendering (open or limited, national and/or international), adjudication and
competition;
- purpose of the contract;
- documents to be supplied by bidders;
- time limit and place for the submission of bids;
- obligations concerning security, if any;
- submission in two sealed envelopes;
- cost of the documentation.WT/ACC/DZA/15
Page 58
Question 97
Are there provisions in your legislation enabling the provision of information to
unsuccessful tenderers regarding the reasons why a tender was not selected?
Reply
It is intended to include a provision in the new text of the Government Procurement Code
stating that the results of the invitation to tend er and the notice awarding the contract will be
published in the BOMOP, with an indication of the principal elements that prevailed when selecting
the successful bidder.
Question 98
Are there challenge procedures?  If so, what are they?
Reply
The new government procurement legislation (currently being considered by the
Government) provides for pre-contract dispute in order to take account of disputes arising out of the
award of a contract.  If a bidder challenges the choice made by the public operator, he may appeal to
the National Procurement Commission within 10 days of the publication of the notice awarding the
contract, and a decision must be taken within 15 days of lodging the complaint.  This right of appeal isoptional and does not prevent the bidder from bringing the dispute before the competent courts.
Disputes arising out of the execution of the c ontract are governed by Articles 99, 100 and 101
of Executive Decree No. 91.434 of 9 November 1991 regulating government procurement, which
provide that:
The public entity must seek an amicable solution to disputes arising out of the execution of a
contract whenever such a solution allows the following:
- Restoration of the balance of responsibilities accruing to each party;
- more rapid completion of the purpose of the contract;
- swifter and less onerous definitive settlement.
If both parties concur, the agreement will be the subject of an enforceable decision by the
Minister, the wali or president of the Communal People’s Assembly ( Assemblée Populaire
Communale  (APC)) depending on the type of expenditure involved in the contract.
Before any judicial proceedings, the co-contractor may appeal to a higher level and, within 65
days of the lodging of the appeal, an enforceable decision has to be taken by the Minister, the wali or
the president of the APC, depending on the type of expenditure involved in the contract.
In addition, in disputes relating to government procurement, the Minister, the wali or the
president of the APC can turn to a consultative committee whose task it is to seek equitable elements
that could be adopted with a view to an amicable solution.
This committee must give a ruling within a maximum period of three months as of the date of
notification to the person awarded the contract that the Minister, wali or president of the APC has
decided to put the matter before the committee.WT/ACC/DZA/15
Page 59
The two parties to the dispute must declare in writing whether they accept or reject the ruling
within a period of one month.
If both parties agree, the ruling becomes the subject of a contractual document  and
enforceable.
Question 99
Please explain to us the nature of orders in relation to the legislation and agreements on
State financing applicable to ministri es, autonomous national institutions, wilayas , communes
and public institutions of an administrative nature (Executive Decree No. 91.434 of
9 November 1991).
Bearing in mind that 60 per cent of the value added in Algeria’s economy is taken up by
the expenditure of these structures, it is impo rtant to understand whether these orders involve
discrimination against imported goods.
Reply
In accordance with Algerian government procurement legislation, government procurement
means contracts awarded by the aforementioned entities under the conditions set out in Executive
Decree No. 91.434 of 9 November 1991 on government  procurement, with a view to undertaking
works and purchasing supplies and services.
The current legislation obliges public operators to give priority to available domestic
production.
In addition, any co-contractor selected must be able to meet demand on market terms and
must undertake to give priority to domestic production.
This provision will be revised when the reform of the Government Procurement Code
currently being examined by the Government is finalized by giving Algerian firms a right of
preference for all types of procurement, at an equivalent level of quality.
This preference will be extended to joint enterprises.The right of preference must be clearly stated in the instructions given to bidders and must be
applied when the financial terms of the bids are assessed.
The preferential percentage fixed will be reduced over time.Furthermore, preference will be given to foreign enterprises which sub-contract shares or
products to the domestic market.
Question 100
If Algeria has an English translation of Executive Decree No. 91.434 of 9 November 1991
on the regulation of government procurement, we would appreciate having a copy.
Reply
The English text of Decree No. 91.434 of 9 November 1991 on government procurement is
not available, but it will be communicated to you after it has been translated.WT/ACC/DZA/15
Page 60
Question 101
Is Algeria's review of its public procurement regulations proceeding as described in the
memorandum on Algeria's foreign trade regime:  updated version (WT/ACC/DZA/14/Add.1, of
24 August 2001)?  What changes have been enacted thus far?
Reply
A draft Executive Decree amending and supplementing the aforementioned Decree
No. 91.434 has been prepared and is currently being examined by the Government.  It proposes a
series of measures based inter alia  on the UNCITRAL (United Nations Commission on International
Trade Law) model law on procurement of goods, works and services.  These measures are designed to
assure the basic principles of good governance in the administration of government procurement andrecommend the following:
- Non-discrimination;- competition;- equity and integrity;- transparency;
- efficient use of public funds.
Question 102
Please provide additional information ab out the National Procurement Commission,
describing in greater detail the responsibilities, legislative or regulatory functions, management
structure and organization of the Commission.  Is the threshold for Commission involvement in
procurement still set at DA 3 million?
Reply
Each contracting service (public operator) has a procurement commission responsible for
initial control of government procurement within the limits of its competence, which are defined in
the aforementioned Executive Decree No. 91.434.
The commission is established by its chairperson immediately the members have been
appointed.
The procurement commission provides assistance in preparing and formalizing government
procurement.
External controls are the responsibility of the monitoring bodies whose composition and
competence are defined below.
The procurement commission in ministries deals with procurement by its central
administration within the limits fixed below and is composed of the following:
- The minister concerned or his representative, chairperson:
- a representative of the contracting service;WT/ACC/DZA/15
Page 61
- a representative of the Minister responsible for trade;  and
- two representatives of the Minister responsible for finance (Minister in charge of the
budget,  Minister in charge of the treasury).
By decision of the minister the commissi on's competence may be extended to proposed
procurement by one or more public establishments of an administrative nature under the Minister's
suspension.
The procurement commission in public establishments of an administrative nature, competent
within the limits fixed below, is composed of the following:
- The director or his representative, chairperson;- a representative of the supervisory authority;- a representative of the contracting service;
- a representative of the Minister for Public Works and Land Use Planning;
- a representative of the Minister responsible for trade;- two representatives of the Minister responsible for Finance (Minister in charge of  the
budget, Minister in charge of  the treasury).
The procurement commission in wilayas  is composed of the following:
- The wali or his representative, chairperson;
- three representatives of the Wilaya People's Assembly;- the director of public works in the Wilaya;
- the director of hydraulic works;
- the director of construction;- the director in the Wilaya of the technical service concerned by the work;- the director of competition and prices in the Wilaya;- the Wilaya's treasurer;- the financial comptroller.
The Wilaya  procurement commission has responsibility for examining the following:
- Procurement by the Wilaya and its public establishments of an administrative nature
for an amount not exceeding the ceilings fixed below;
- procurement by the commune and its public establishments of an administrative
nature for an amount of 50,000,000 Algerian dinars (DA 50,000,000) or more.WT/ACC/DZA/15
Page 62
By decision of the wali, the commission's competence may be extended to proposed
procurement by one or more establishments of an administrative nature under its supervision.
The procurement commission in local public establishments of an administrative nature,
competent to consider proposed procurement with in the limits fixed above, is composed of the
following:
- The director or his representative, chairperson;- a representative of the contracting service;- an elected representative of the assembly of the local community concerned;
- a representative of the local financial administration.
The procurement commission in communes competent to consider proposed procurement
within the limits fixed above, is composed of the following:
- The president of the Communal People's Assembly or his representative, chairperson;
- a representative of the contracting service;- two representatives of the Communal People's Assembly or its tax collector;- a representative of the technical service concerned by the work.By decision of the President of the Communal People's Assembly, the commission's
competence may be extended to proposed procurement by one or more public establishments of anadministrative nature under its supervision.
With the exception of those appointed ex officio, the members of the procurement
commission of the contracting service and their alternates are appointed ad personam by their
administration for a renewable period of three years.
The members representing the contracting service and the service for which the work is being
carried out attend when necessary according the agenda.  The representative of the contracting service
is responsible for providing the procurement commission with all the information needed concerning
the procurement with which it is dealing.
The control responsibility of the procurement commission of the contracting service consists
of granting or refusing approval within 20 days of the date of submission of the full dossier with the
commission's secretariat.
Verification of the regularity of procurement of national importance is the responsibility of
the National Procurement Commission, chaired by the Minister responsible for finance and composedof a representative from each ministry.  Procurement of national importance is assessed in relation to
the amount of the procurement:
- DA 2 hundred million for procurement relating to works;
- DA 3 hundred million for procurement relating to supplies;
- DA 60 million for procurement relating to surveys and services.WT/ACC/DZA/15
Page 63
The National Procurement Commission and the procurement commission of the contracting
service, hereinafter referred to as the Commission, meet at the instigation of their chairperson.
The Commission may call on any expert capable of assisting their work for advice.The Commission's sessions are only valid if an absolute majority of the members are present.If the quorum is not reached, it meets again within the following eight days and its
deliberations are valid irrespective of the number of members present.  Decisions are always taken by
a majority of the members present.
If there is equality of votes, the chairperson has a casting vote.
The chairperson appoints a member of the Commission to prepare a report summarizing the
dossier for submission to the Commission.  For this purpose, all the documents are sent to the member
at least eight days before the date of the meeting at which the dossier is to be examined.
In the case of procurement considered by the National Procurement Commission, the report
summarizing the dossier is submitted by an official of the Ministry responsible for finance, or, if
necessary, by an expert.  The Chairperson of the National Procurement Commission appoints an
official for each dossier.
The Commission is the decision-making body as far as control of procurement within its
competence is concerned.  As such, it gives approval for the procurement to go ahead.
The Commission may decide to grant or refuse approval.If it refuses approval, it must give the grounds;  in any event, any failure  to comply with the
legislation and/or regulations in effect constitutes grounds for refusal of approval by the Commission.
Reservations, whether or not suspending executi on of the procurement, may be attached to the
approval.
Reservations are suspensive if they concern the substance of the procurement.   They are not
suspensive when they relate to the form of the procurement.
The competent authority approves the procurement after having dealt with any reservations
attached to the approval by the external control body that initially had competence and the
procurement is then transmitted to the financial entities for the purpose of committing the expenditure
before the procurement is given effect.
The procurement may be postponed while awaiting further information;  in such cases, the
time-limits are suspended and resumed when the further information requested has been provided.
In any event, at the latest within eight days after the session, the decisions mentioned in this
article must be notified to the contracting service concerned and to its supervisory body.
The procurement or the clauses approved by the competent commission must be put into
effect within six months at the latest after th e date of approval.  Following this period, the
procurement or clause is resubmitted to the competent commission for consideration.
The contracting service must request approval.  This is the responsibility of the contracting
service and all the bodies represented.  If the contracting service decides not to award a contract that
has been approved, it must inform the Commission.WT/ACC/DZA/15
Page 64
An analytical record of each procurement containing the elements needed to allow the
members of the Commission to fulfill their responsibilities is transmitted to them. This record is
drawn up by the contracting service in accordance with a model determined in the rules of procedure
and is sent out within a period not exceeding eight days before the convening of the Commission's
meeting.
If approval is not given within the period prescribed, the contracting service informs the
Chairperson, who convenes the National Procurement Commission within eight days.  The
Commission must take a decision  immediately by a simple majority of the members present.
The Commission's permanent secretariat, under the authority of its chairperson, carries out all
the material tasks inherent in its  function, including the following:
- Verifying that the dossier submitted is complete in accordance  with the provisions of
this Decree and the requirements of the rules of procedure;
- registering procurement files and clauses, as well as any additional documents, for
which a receipt is issued;
- preparing the agenda;- convening the members of the Commission, the representatives of the contracting
service and any consultants;
- transmitting the documents to the rapporteurs;- transmitting the analytical record of the procurement to members of the Commission;- preparing approvals, notes and minutes of meetings;- drawing up quarterly reports on activities;
- giving members of the Commission access to information and documents;
- monitoring observance of non-suspensive reservations mentioned in Article 144 of
this Decree.
The threshold for involvement by the procurement commission is currently is currently
DA4 million.
Question 103
What is the process for a supplier to protest a tender award?  Is this process the same
for domestic and international suppliers?  What  are the usual time periods involved for the
steps of this process?
Reply
The new government procurement legislation, (currently being considered by the
Government) provides for pre-contract dispute in order to take account of disputes arising out of the
award of a contract.  If a bidder (whether Algerian or foreign) challenges the choice made by the
public operator, he may appeal to the National Procurement Commission within 10 days of the
publication of the notice awarding the contract, and a decision must be taken within 15 days ofWT/ACC/DZA/15
Page 65
lodging the complaint.  This right of appeal is optional and does not prevent the bidder from bringing
the dispute before the competent courts.
4. Policies affecting trade in agricultural products
(e) Internal agricultural policies
Question 104
Is the privatization of land also a privileged instrument for boosting agricultural policy?
Reply
The reforms undertaken in recent years have led to the privatization of agricultural land and
have thus promoted initiatives and freedom of action by farmers.
Not only land of private status but also land be longing to the State's private domain have been
put under private management.  They are the subject of a draft law on awarding long-term
concessions for these farms.
This type of concession gives farmers total freedom of initiative and the latitude to undertake
any action to promote the best possible use of resources by seeking various forms of financing or by
undertaking activities in partnership with national or foreign private investors.
Question 105
Request for information on calculation of domestic support in conformity with the
outline in the memorandum WT/ACC/4 on domestic support.
Reply
The calculation of domestic support has been finalized.  The reference period used for its
calculation is the average of the past three years (1999-2001).
Its presentation, using WT/ACC/4 "domestic support" format, has been prepared and will be
transmitted to the WTO's Secretariat as soon as it has been finalized.
Question 106
What price support systems exist currently?  What are Algeria's plans for the future
with the support systems for wheat and dairy products?
Reply
For wheat, the support consists of a harvest premium calculated on the basis of the difference
between the international market price and the local administered price.
The amount of the premium is fixed in a decision by the Minister for Agriculture at the
beginning of each season on the basis of recommendations by the Inter-Trade Cereals Board.
For milk, there is a fixed premium for the production and collection of unprocessed milk
given to farms and the collection organizations.  The objective is to encourage the pasteurization ofdairy products so as to minimize the health risks of consuming unprocessed milk.WT/ACC/DZA/15
Page 66
As regards the subsidies schemes for wheat and dairy products, in future they will be directed
first and foremost to supporting specific investment in these products on farms.
Other production prices for agricultural products are fully liberalized.
Question 107
What is the actual status of the amendment to Decree No. 32 to 13 January 2002?
Reply
The amendment concerns an extension of the measure on prior technical authorization before
importing seeds of cereals and leguminous vegetables for food and animal feed (approved), while at
the same time lifting the restrictions on imports of all plant material.  The amendment underlines theimportance of testing and assessing the phytosanitary risk before there can be any trade in plant
material and this has become the sole criterion for a decision.   The measures provided in this text also
underline the principles of no arbitrary discrimination and transparency.
This text, which is related to the provisions in the SPS Agreement, repeals the provisions in
Decree No. 32 of 13 January 1993.
Question 108
Could Algeria provide Decree No. 93.283 of  23 November 1993 fixing entry points?
Reply
The document requested will be transmitted to the WTO Secretariat.
Question 109
Please explain in detail the definition of "strategic foodstuffs"?
Reply
These are widely consumed products that constitute the basic food in Algeria (cereals, dried
vegetables, milk and potatoes).
Question 110
Request information on calculation of the domestic support in accordance with the
outline in the Memorandum ACC/4 on domestic support.
Reply
The calculation of domestic support has been finalized.  The reference period taken into
account for its calculation is the average of the past three years (1999-2001).
Its presentation, using the model in ACC/4 "domestic support" has been prepared and will be
transmitted to the WTO Secretariat as soon as it is finalized.
Question 111
Please provide more details about Algeria's programme under the National Agricultural
Development Plan to develop production of widely consumed products.WT/ACC/DZA/15
Page 67
Reply
This programme concerns two products in particular, wheat and milk, and involves
intensifying production in order to enhance Algeria's level of food security.
In the case of wheat, State support is currently given for technical applications (certified
seeds, fertilizers, phytosanitary products for agricultural use) and the granting of a harvest premium.
For milk, the support concerns investment in farms (equipment for milking, collecting and
preserving milk), equipment for upgrading and the granting of a collection premium.
Question 112
What steps are being taken to develop pasture land and protect grassy plains?
Reply
Pasture land is estimated to be 32 millions hectares and is characterized by an arid climate
and an extremely fragile ecosystem.
The cause of overgrazing in steppe land is the reduction in grazing areas due to the
establishment of farms following privatization of agricultural land in the State's private domain.
This overgrazing has been exacerbated by the drought in recent years and has made the
environment even more fragile, leading to desertificat ion that in turn is aggravated by inappropriate
growing methods.
A programme to adapt production systems is under way as part of the sustainable
development effort.  It aims to restore the original utilization of the steppe and promote the
organization of livestock breeders to ensure the steppe's rational use and conservation.
The action undertaken includes restoring the plant cover by planting grazing species,
dispersing the seeds by air, and a ban on cropping.
Other action consists of mobilizing water resources to provide drinking water for herds and
also their sanitary protection.
The protection of grazing species is ensured by placing a ban on cropping and by surveying
and collecting indigenous species, as well as by introducing foreign species, in order to build up an
appropriate germplasm.
Question 113
Please supply more details about the types of agricultural investments that are
occurring under the National Agricultural Development Plan (PNDA) (grants offered, numberof programmes under way).
Reply
A detailed document showing the content and implementation of the programmes will be
communicated.  This could be the subject of a presentation straightaway for interested delegations of
member countries of the WTO.WT/ACC/DZA/15
Page 68
Question 114
For what products does Algeria plan to use tariff rate quotas?
In addition, tariff rate quotas are not auto matically available to acceding countries and
we therefore urge a different solution such as customs tariffs only.
Reply
At present, in the context of liberalizing of foreign trade in agricultural products, if the
domestic production of a product or group of products is threatened by imports, Algeria provides for
the application of safeguard measures, anti-dumping and countervailing duties, bans, …) and tariff
rate quotas, in accordance with the relevant WTO rules.
Products subject to the tariff rate quota will be notified in the tariff schedule.
Question 115
Please describe in detail the system of price supports for wheat and dairy products,
including information on how it is implemented.
For wheat, the support consists of a harvest premium calculated on the basis of the difference
between the international market price and the local administered price.
The amount of the premium is fixed in a decision by the Minister for Agriculture at the
beginning of each season on the basis of recommendations by the Inter-Trade Cereals Board.
For milk, there is a fixed premium for the production and collection of unprocessed milk
given to farms and the collection organizations.  The objective is to encourage the pasteurization of
dairy products so as to minimize the health risks of consuming unprocessed milk.
The details of the calculations according to the WT/ACC/4 model will be communicated to
the WTO Secretariat as soon as they have been finalized.
V. TRADE–RELATED INTELLECTUAL PROPERTY REGIME
1. General
(d) Application of national and most-favoured-nation (MFN) treatment to foreign nationals
Question 116
As Algeria has now become a member of the Berne Convention, it states that it has
extended national treatment to foreign nation als in respect of copyright (page 79 (d)).
This is an important first step.  However, it would also have to extend MFN treatment to
such nationals (Article 3 of the Agreement on Trade-related  Aspects of Intellectual Property
Rights (TRIPS)).
Furthermore, it appears that Algeria does not yet apply either national treatment and
MFN treatment to holders of related rights contained in the TRIPS Agreement.
Accession to the TRIPS Agreement would make this necessary (Article 4 of the TRIPS
Agreement).WT/ACC/DZA/15
Page 69
Reply
When Algeria accedes to the Rome Convention for the Protection of Performers, Producers of
Phonograms and Broadcasting Organizations (1961) in the near future, national treatment will be
applied to foreign nationals.
As regards MFN treatment, in intellectual property matters, no particularly favourable
treatment is given to nationals of any country whatsoever.
2. Substantive standards of protection, incl uding procedures for the acquisition,
maintenance and exercise of intellectual property rights.
(a) Copyright and related rights
Question 117
With regard to copyright and related rights, during the past years, Algeria has put in
place a comprehensive regulatory framework with the aim of complying with the TRIPS
Agreement.  This has notably been done via th e adoption of Order No. 97.10 of 6 March 1997 on
copyright and related rights.  This is to  be welcomed, but should be completed.
Membership in international conventions and regional and bilateral agreements.Algeria is a member of a limited number of international conventions ensuring
intellectual property protection (copyright and related rights).
Since the TRIPS Agreement refers to other international conventions, it would be
appropriate for Algeria to join the most impo rtant international conventions in the area of
intellectual property.
Algeria has already done so with the recent accession to the Berne Convention for the
Protection of Literary and Artistic Works (Paris Act, 1971).  However, it should also adhere in
particular to the Rome Convention for the Prot ection of Performers, Producers of Phonograms
and Broadcasting Organizations of 1961.
Reply
Algeria has already initiated the procedure for acceding to the International Convention for
the Protection of Performers, Producers of Pho nograms and Broadcasting Organizations (Rome
Convention of 1961).
Question 118
As regards exploitation of rights granted under copyright protection (pages 81 and 82),
it cannot be judged whether the rights granted under Algerian law would be in line with the
requirements set out in Article 9 of the TRIPS Agreement/Berne Convention.
The Memorandum just states that the la w "is in line with the requirements".
We would therefore welcome a more detail ed explanation of the current regime.WT/ACC/DZA/15
Page 70
Reply
According to Article 9 of the TRIPS Agreemen t, Algeria's legislation should must comply
with Articles 1-21 of the Berne Convention (with the exception of Article 6 bis) and the Appendix
thereto.
The current copyright regime is governed by Order No. 97.10 on copyright and related rights,
which is based on the fundamental rules in the Berne Convention for the Protection of Literary and
Artistic Works (Paris Act, 1971), of which Algeria has been a member since 19 April 1978.
The principle of national treatment applies by virtue of Algeria's accession to international
conventions, including the Berne Convention, consequently foreign authors from member countries of
the Berne Union benefit from the Order's protection in the same way as Algerian authors and its main
features are described below.
Protection is granted from the date of creation of the work and no formality such as the fixing
of the work or its recording is required for recognition of the rights conferred (Articles 4 and 136 of
Order No. 97.10).
Protection under copyright applies, subject to th e originality of the work, to any literary or
artistic creation regardless of its nature, form or mode of expression, merit or use (Article 3 of Order
No. 97.10).
All areas of intellectual creation are covered, including written or oral literary works, software
and computer programmes, dramatic and dramatico-musical works, choreographies, musical works,
with or without words, audiovisual works, three- dimensional works, photographic works (Article 4).
Protection is also granted to derived works such as translations, musical arrangements,
editorial revisions and other original transformations of works, as well as collections and anthologiesof works and collections of data, which, by reason of their selection, coordination or arrangement, are
original (Article 5).
Ideas, concepts, principles, systems, processes, procedures and modes of operation are
excluded from protection (Article 7).
Works by the State for non-profit making purposes, laws and regulations, decisions and
administrative acts by State bodies and local authorities, judicial decisions and the official translation
of such texts are also excluded from protection (Articles 9 and 11 of  Order No. 97.10).
The Order upholds the principle that recognition of authorship of a work belongs to the
natural person who created the work, but opens the possibility of giving legal persons ownership ofrights, under certain conditions, for example, for joint works and works created under an employment
contract (Article 12 et seq. of  Order No. 97-10).
According to Article 13 of the Order, in the absence of proof to the contrary, the owner of
copyright is deemed to be the natural or legal person under whose name the work has been disclosedor made lawfully available to the public or who has disclosed it in his own name to the National
Office of Copyright and Related Rights.
Where a work is published without mentioning the name of the author, in the absence of proof
to the contrary, the person who made the work available to the public is deemed to represent theowner of the right.WT/ACC/DZA/15
Page 71
Where an anonymous work is published without mentioning the identity of the person who
made it available to the public, the National Office of Copyright and Related Rights exercises the
rights until the owner of the rights has been identified.
Order No. 97.10 grants the author moral and economic rights (Article 21).
As regards economic rights, the author has the exclusive right to authorize or prohibit public
exploitation of his work under any form and the right to derive revenue therefrom (Article 27 of Order
No. 97.10), as well as a droit de suite  (Article 28).
The following is an indicative list of the acts of exploitation of works concerned by the above:- Reproduction of the work by any process;- rental of audiovisual works and professional leasing of software and databases;- public performance;
- sound and audiovisual broadcasting;
- communication of the broadcast work to the public by wire, optical fibre cable, or by
any other signal carrying sounds or images and sounds, or by wireless broadcasting
by an organization other than the original one, or by means of a loudspeaker, a radioor television receiver in a public place;
- communication of the work to the public by any computerized process;- translation, adaptation and other transformations of the work giving rise to derivative
works.
Under the droit de suite  recognized in Order No. 97.10, the author of a three-dimensional
work of art shares in the amounts earned from resale of the original of the work in the amount of 5 per
cent of the transaction.
The limits and exceptions to exclusive rights respect the moral and economic rights of authors
and concern certain special cases defined in Order No. 97.10.
Within the limits specified in Articles 41-54 of  the Order, works may be freely used in the
following cases:
- Reproduction or translation of the work in a single copy, as well as its adaptation for
personal or family use, with the exception of works of architecture and databases;
- reprographic reproduction of a work in a single copy or extracts from works by
libraries and archives under certain conditions;
- reproduction of a single copy or adaptation of a computer program by the lawful
owner if such acts are necessary in order to use the computer program or replace it if
it is lost or destroyed;
- use of a work in order to create new works such as pastiches, parodies, caricatures,
quotations, extracts, illustrations;WT/ACC/DZA/15
Page 72
- performance of a work in a family environment or in a teaching or training
establishment exclusively for teaching purposes;
- use of news items, current events, lectures or speeches, articles on current events
disseminated in the press;
- use of a work for the purposes of providing evidence in judicial proceedings;
- reproduction or communication to the public of a work of architecture or fine arts, a
work of applied art or a photograph on permanent display in a public place, with the
exception of art galleries, museums and classified cultural and natural sites;
- the conservation of ephemeral recordings by a broadcasting organization to the extent
that the recording is of exceptional documentary interest.
Among the exceptions, works can be used, under certain conditions, without authorization by
the authors but subject to equitable remuneration under the legal licences and compulsory licences
regime.
Legal licences cover the reproduction of a musical work lawfully fixed on a sound medium,
as well as the broadcasting and cable distribution of a work already made available to the public with
the authorization of the author and the distribution by cable of a broadcast work simultaneously with
the broadcast and without any modification to the broadcast programme (Articles 29-31 of OrderNo. 97.10).
Compulsory licences for translation and reproduction are based on the provisions in the
Appendix to the Berne Convention (Paris Act, 1971) and Articles ter and quarter  of the Universal
Copyright Convention revised at Paris in Ju ly 1971 (Articles 33-54 of Order No. 97.10).
In application of this regime, any work to be used for teaching in schools or universities may
give rise to the following, subject to equitable remuneration to the owner of the rights:
- A compulsory licence for translation for the purposes of a graphic publication or
broadcasting if the work has not been translated into a national language and put on
sale or communicated to the public in Algeria one year after its first publication;
- A compulsory licence for reproduction the work has not been published within three
years  after its first publication in the case of scientific works, or seven years in the
case of works of fiction, and five years for other works.
The granting of licences is subject to the formalities to be carried out by the National Office
for Copyright and Related Rights, lawfully empowered to grant such licences.
Compulsory licences may not be assigned and are not exclusive and they may only be granted
for the exploitation of the work in Algeria.
They cease to have effect if the owner of the rights publishes the work concerned in Algeria.The term of protection of the author's economic rights for his successors in title is 50 years as
of the beginning of the calendar year follow ing his death (Articles 55-61 of Order No. 97.10).
For works of collaboration, the term of protection is 50 years, which expire at the end of the
calendar year following the death of the last surviving collaborator.WT/ACC/DZA/15
Page 73
As regards joint, pseudonymous or anonymous works, photographic works and works of
applied art, the term of protection is 50 years as of the beginning of the calendar year following their
publication.
The term of protection for posthumous works is 50 years as of the beginning of the calendar
year following the reproduction or communication of the work to the public.
In the case of audiovisual works, the 50-year term of protection is calculated from the date
when the work was made available to the public;  if the work has not been made available to the
public, the term of protection expires 50 years after the date the work was created.
The provisions of Order No. 97.10 come into effect as of its enactment for works published
for the first time after its entry into force.
Nevertheless, works protected under the previous regime enjoy protection if they have not
fallen into the public domain upon the date of its entry into force.
Question 119
With regard to the limitations and exceptions to copyright (page 82), it is stated that
"Exclusive copyright is mitigated in some cases by limited degrees of authorization for the free
utilization of protected works and by exceptions enabling works to be used without
authorization subject to equitable remuneration".
Are these cases specifically set out in the law?Further clarification is needed on this point to verify its compatibility with Article 13 of
the TRIPS Agreement.
Reply
See the reply to question 118.
Question 120
On page 85, point 3, concerning the term of protection, the Memorandum states that the
author's rights are protected "for 25 years after his death".
Clarification is sought that this is a typogr aphical mistake and that the text should read
"50 years" as stated earlier in the Memorandum and as required by the TRIPS Agreement.
Reply
This is indeed a typographical error and it should be read in conjunction with pages 77 and 82
of the English text of the updated Memorandum.
The current term of protection for works is 50 years after the death of the author.
Question 121
On enforcement, the Memorandum states (page 86, point 4 (a)) that the parties bear the
burden of proof without any qualification.  Confirma tion should be sought that this clause is in
line with Article 43 of the TRIPS Agreement, wh ich stresses that the requirements should not be
excessive.WT/ACC/DZA/15
Page 74
Reply
In civil proceedings, the burden of proof lies with the parties but the judge may, either
ex officio or at the request of the parties, order where appropriate the production of evidence held by
one of the parties, in conformity with the provisions of Articles 43 of Order No. 66.154 of6 June 1966, amended and supplemented on the Code of Civil Procedure.
Question 122
On page 87, it is stated that rights are "unreasonably exercised" and can therefore not
be enforced if "the exercise tends to the satisfac tion of an interest of negligible importance in
relation to the resulting injury to other parties".  Clarification of this general clause would beappreciated to exclude any excessive scope of such a clause.
Reply
This overall provision contained in Article 41 of the Civil Code defines in general the concept
of abuse of rights.
This definition allows judges at their decision to assess whether or not there has been an
abuse of rights.
As regards copyright and related rights, Order No. 97.10 of 6 March 1997 on copyright and
related rights contains special provisions dealing with the case of abuse of rights in the context of
exercising either individual or collective rights.
This is the intent underlying the provisions making the assignee of an author's right or the
holder of an exclusive or non-exclusive licence responsible for permanent exploitation of the work.
Failure to exploit the work or exploitation that is suspended may lead to cancellation of the contract or
the licence and the exclusive clause then no longer has effect (Articles 69-70, 98 and 102).
In addition, as far as the collective exercise of copyright and related rights is concerned, the
National Office must make the works it administers available to users on reasonable terms and against
equitable remuneration.
It may not exercise any discrimination among users by granting an exclusive authorization to
exploit the work without the agreement of the owners of rights in the work (Article 137 of Order
No. 97.10).
(b) Trademarks, including service marks
Question 123
With regard to trademarks (page 83, point (b)), it is stated that "To remain valid, the
registered mark must be used with in a year following registration".  This provision seems to be
more restrictive than Article 19.1 of the TRIPS Ag reement, which sets out that "the registration
may be cancelled only after an uninterrupted period of at least three years of non-use…".
Further clarification is needed on this point.
Reply
The current legislation on trademarks requires that a mark be used during the year which
following its registration in order to remain valid.WT/ACC/DZA/15
Page 75
As this provision is not in conformity with the TRIPS Agreement, a draft law is being
prepared, in conformity with the updated timetable of revision of legislative and regulatory texts,
which will extend this time-limit for use to three y ears in order to ensure its conformity with the
TRIPS Agreement.
(c) Geographical indications
Your legislation on geographical indications states that registration confers ownership
of the appellation of origin for a renewable 10-year term.  Please explain how a renewable term
of protection complies with part II, section 3, of the TRIPS Agreement.
Reply
An appellation of origin is protected indefinitely provided that the reasons which led to its
protection continue to exist and that the registration is renewed every ten years.  This renewal
procedure makes it possible to check on a regular basis that the reasons for granting the protection are
still valid as Article 17, paragraph 2, of Order No. 76.65 of 16 July 1976 on appellations of origin
provides that renewal is conditional upon the applican t continuing to meet the requirements that led to
its granting.  Such a provision is not contrary to part II, section 3, of the TRIPS Agreement, which
does not lay down any requirement concerning the term of protection and in particular the regular
renewal of protection.
(e) Patents
Question 125
Your legislation on patents states that an invention may relate to a product or a process,
but does not protect foodstuffs, pharmaceuticals, cosmetics and chemicals.  Please explain in
detail how these exceptions to the patenting of products comply with Article 27 of the TRIPS
Agreement (discrimination as to the field of technology).
Reply
The current legislation in this area excludes foodstuffs, chemicals, pharmaceuticals and
cosmetics from patentability.  This provision is not in conformity with the TRIPS Agreement and it
will be remedied in a draft law on the protection of inventions, which provides that these products
should be protected in the same way as the process for obtaining them.
Question 126
Does your legislation, in accordance with Article 27.1 in combination with Article 31 of
the TRIPS Agreement, consider importation as "working" a patent (and therefore preclude
compulsory licensing if a product is being imported)?
Reply
According to the current patent legislation, import is not considered to be working the
invention.
This provision is not in conformity with the TRIPS Agreement it will be remedied in a draft
law on inventions currently being drawn up in order to  bring it into line with the TRIPS Agreement, in
accordance with the updated timetable for the revision of legislative and regulatory texts.WT/ACC/DZA/15
Page 76
Question 127
Does your legislation make the granting of  a compulsory licence subject to all the
conditions enumerated in Article 31 of the TRIPS Agreement?  Please cite the relevant
provisions of law.
Reply
The granting of a compulsory licence is governed by Article 5A of the Paris Convention and
Article 25 of Legislative Decree No. 93.17 of 7 December 1993 on the protection of inventions.  The
procedures for granting such licences, including the notification, remuneration and its limits, are not
covered.  They will be dealt with in the draft law being drawn up.
Question 128
Does your legislation provide for the reversal of the burden of proof in a process patent
litigation?  Please cite the relevant provisions of law.
Reply
The current legislation does not contain such a provision.  Nevertheless, this matter will be
taken into account in the draft law on inventions being drawn up in order to bring it into conformity
with the TRIPS Agreement, in accordance with the updated timetable for the revision of legislative
and regulatory texts.
Question 129
Regarding patents (page 84, point (e)), the provision which excludes certain elements
from patent protection (e.g. strains of micro-organisms, foodstuffs, pharmaceuticals, cosmetics,
chemicals) is clearly in contradiction with the obligations resulting from Article 27 of the TRIPS
Agreement.  These obligations also have to be  read in line with Article 70 of the TRIPS
Agreement.
Therefore, it should be recalled that:
- Patents should be available for products and processes and patent rights enjoyable
without discrimination as to the field of technology (Article 27.1 of the TRIPS
Agreement);
- plant varieties should be protected by patents or any effective sui generis  system
(Article 27.3 (b)) of the TRIPS Agreement);
- micro-organisms and non-biological an d micro-biological processes for the
production of plants and animals should be patentable (Article 27.3(b) of the TRIPS
Agreement).
Reply
The current legislation excludes micro-organisms and foodstuffs, chemicals, pharmaceuticals
and cosmetics from patentability.  This provision is not in conformity with the TRIPS Agreement andit will be remedied in a draft law on the protection of inventions, which provides that these products
should be protected in the same way as the process for obtaining them.WT/ACC/DZA/15
Page 77
In addition, the protection of plant varieties is not covered by the current patent legislation
and it will be covered by a special text on the protection of new plant varieties.  This is currently
being drawn up, and it will be adopted in accordance with the updated calendar for the revision of
legislative and regulatory texts in order to ensure conformity with the TRIPS Agreement.
Question 130
Please provide the information requested in the check-list in document WT/ACC/9, for
the current intellectual property rights regime, indicating when improvements are expected in
new legislation.
We request that Algeria provide draft legi slation for review by the working party at
some point prior to final enactment to allow the working party to understand the steps being
taken and to assess in a preliminary fashion if Algeria's approach to consistency with the TRIPS
Agreement is comprehensive.  We hope this is convenient.
The table in document WT/ACC/DZA/14/Add.2 indicates that Algeria plans to
update/develop legislation to address the patent (and related) requirements of the TRIPSAgreement.  In particular:
Patent legislation will be aligned with the TRIPS Agreement in the last quarter of 2002;Legislation for layout-designs of integrated circuits will be adopted by the second
quarter of 2003;
Legislation to protect undisclosed information will be adopted by the third quarter of
2003;
Measures to protect plant varieties will be adopted by the last quarter of 2003; and
measures to protect micro-organisms will be put in place by the last quarter of 2003.
Are the above dates still viable?  Are drafts of the various laws available for review?
We would be pleased to provide comments on current drafts, if these are available.
Why are measures to protect micro-organisms being adopted well after the date for
alignment of current patent legi slation with the TRIPS Agreement?
We seek assurances from Algeria that it in tends to adopt and implement laws for each of
these categories that fully comply with al l of the relevant requirements of the TRIPS
Agreement.
It is noted that industrial designs are protected by current law in Algeria.  For the most
part, the protection appears consistent with the requirements of Articles 25 and 26 of the TRIPS
Agreement.  However, the nature of  the right is not entirely clear.
Does the owner of a protected industrial de sign in Algeria have the right to prevent
third parties not having the owner's consent from making, selling, or importing articles bearing
or embodying a design which is a copy, or substantially a copy, of the protected design when
such acts are undertaken for commercial purposes, as required by Article 26.1 of the TRIPS
Agreement?
ReplyWT/ACC/DZA/15
Page 78
Regarding submission of the draft legislation for review, it should be noted that these texts are
still preliminary drafts and may yet be amended or modified taking into account comments and
observations thereon.
Concerning the enactment of the legislative prov isions to ensure conformity with the TRIPS
Agreement, this will take place in accordance with the updated timetable for the revision of legislativeand regulatory texts.
Micro-organisms will be protected by patents under the draft law on inventions currently
being drawn up in order to bring it into conformity  with the TRIPS Agreement, in accordance with the
updated timetable for the revision of legislative and regulatory texts.
As regards industrial designs, Order No. 66.86 of 28 April 1966, in particular Articles 23-28,
provide for a series of civil and criminal proceedings for any infringement of the rights of the owner
of a design.
(h) Requirements concerning undisclosed information, including trade secrets and test data
Question 131
Please explain in detail if your legislation ensures that undisclosed test or other data
submitted by an applicant to the responsible State agency in the procedure for market
authorization of a pharmaceutical or of an agricultural chemical product is protected against
disclosure and against unfair commercial use by a competitor, for example, by prohibiting asecond applicant from relying on or from referrin g to the original data of the first applicant
when applying subsequently for market authorization for his own product.
Does your legislation provide for exceptions to this?  If yes, under what conditions would
such exceptions apply?  Does your legislation set a specific term of protection for undisclosedtest or other data of the first applicant?
Reply
Algeria's Criminal Code punishes the disclo sure of information without exception and
without making confidentiality subject to any time- limit.  In addition, special texts govern respect for
confidentiality, in particular for veterinary  and phytosanitary products (Law No. 87.17 of
1 August 1987 on phytosanitary protection and Law No. 88.08 of 26 January 1988 on veterinary
medicine and the protection of animal health), a nd in the area of public health (Law No. 85.05 of
16 February 1985 on the protection of health, Executive Decree No. 92.276 of 6 July 1992 on the
medical code of ethics and Executive Decree No. 92.284 of 6 July 1992 on the registration of
pharmaceuticals for human medicine).
4. Enforcement
(d) Any special border measures
Question 132
The criminal procedures which are mentioned in the Memorandum (page 88, point (e))
only refer to infringements of copyright and neighbouring rights.  There are plans to adopt
further measures with a view to ensuring co nsistency with the WTO Agreements.  This will
include, amongst others, measures on border enforcement of intellectual property rights.
Further details on Algeria's plans in this respect would be welcomed.WT/ACC/DZA/15
Page 79
Confirmation is sought that similar provisions are provided for in the Algerian law as
regards infringements of trademarks, in acco rdance with Article 61 of the TRIPS Agreement.
Reply
Border measures
Law No. 98.10 of 22 August 1998, amendi ng and supplementing Law No. 79.07 of
21 July 1979 on the Customs Code, provides for a ban on the import of counterfeit foreign goods as
an element of intellectual property protection, on penalty on confiscation (Article 22).  This provision
is currently being harmonized with the TRIPS Agreement.
Algeria also takes an active part in the work going on within the World Customs Organization
(WCO) designed to improve the model legislation on intellectual property rights.
These efforts are aimed at giving greater protection than that required under the TRIPS
Agreement;  Algeria plans to introduce the recommended measures into its Customs Code.
Infringement of industrial property rights
As regards industrial property, the specific texts for each of the relevant activities contain
provisions regarding both civil and criminal action to punish any infringement of rights.
These provisions are contained in the following:
- Articles 31 to 36 of Legislative Decree No. 93.17 of 7 December 1993 on the
protection of inventions;
- Articles 28-39 of Order No. 66.57 of 19 March 1966 on trademarks;
- Articles 23-28 of Order No. 66.86 of 28 April 1966 on industrial designs;- Articles 28-30 of Order No. 76.65 of 16 July 1976 on appellations of origin.
VI. TRADE-RELATED SERVICES REGIME
1. General
(b) Posts and telecommunications
Question 133
The regulatory situation in force in sub-sectors of postal and courier services.  The
handling of written communications of all kinds (hybrid and direct mail services), the handling
of parcels and packages, the handling of press products, the handling of mail (registered or
insured), express delivery services, non-addressed items, other services.
Reply
The legislative and regulatory provisions on postal services are contained in Articles 61-66 of
Law No. 2000-03 of 5 August 2000, supplemented by Executive Decree No. 01.418 of
20 December 2001 on the exploitation regime applicable to postal services, which determine the three
regimes.WT/ACC/DZA/15
Page 80
Exclusive regime, including the following:
The establishment, exploitation and supply of:
- Postal services for letters not exceeding 2 kg. by weight;
- postal orders;
- postal cheques;- the issue of postage stamps and any other franking marks.Authorization regime
The establishment, exploitation and/or supply of international express delivery services.Simple declaration regime
The establishment and/or supply of postal services other than those covered by the preceding
regimes.
Question 134
What obligations are linked to the granti ng of authorizations?  Who grants the
authorizations and in what way?  What ar e the exact criteria on the basis of which
authorizations are granted?
Reply
Authorizations are issued to any natural or legal person who undertakes to respect the terms
under which services can be established, exploited and/or supplied.
These criteria are defined by the Regulatory Authority for Posts and Telecommunications
(ARPT) and concern the following in particular:
- Respect for confidentiality, inviolability and impartiality of the service with regard to
the messages transmitted;
- principle of respect for equal treatment of users and rules on respecting fair
competition (Article 64 of the Law);
- the establishment of a company under Algerian law.Authorizations issued by the Regulatory Authority must be notified within a maximum period
of two (2) months of the date when the application was received, confirmed by a receipt.  The groundsfor any refusal must be given and notified to the applicant (Article 65 of the Law).
Authorization is subject to the payment of a fee of DA 20 million (Decree No. 02.44 of
14 January 2002 fixing the amount of the annual fee applicable to operators possessing authorizations
to exploit postal services).
Question 135
When and how does the general declaration system apply?WT/ACC/DZA/15
Page 81
Reply
Any operator wishing to exploit a service that comes under the simple declaration regime
must deposit with the Regulatory Authority for Posts and Telecommunications a declaration stating
their intention to exploit such a service on a commercial basis.
The declaration must contain the following information inter alia :
- Detailed description of the service to be exploited;- geographical coverage;
- the charges to be paid by users.
The Regulatory Authority for Posts and Teleco mmunications has a period of two (2) months
from the date when the declaration was received, confirmed by a receipt, in which to verify that the
simple declaration regime applies to the service concerned.
The grounds for any refusal to register the service must be given.If the service is approved, the Regulatory Authority for Posts and Telecommunications issues
a registration certificate against payment of the fees due (Article 66 of Law No. 2000.03 of5 August 2000).
Question 136
Is there any appeal procedure available?  If yes, please specify.
Reply
An appeal may be lodged with the Council of State (Article 17 of the Law) against decisions
taken by the Regulatory Authority for Posts and Telecommunications.
Question 137
Can you confirm that the implementing texts specifying the regimes applicable to postal
and courier services have been circulated?
Reply
The regimes were defined in Executive Decree No. 01.418 of 20 December 2001,
supplemented by Executive Decree No. 02.44 of 14 January 2002 fixing the amount of the annual fee
applicable to operators possessing authorizations to exploit postal services.
Question 138
Explanation of  the national treatment applied to foreign operators.
Reply
The objective of the Law is in particular to develop and supply postal services of quality
under objective, transparent and non-discriminatory conditions (Article 1 of  Law No. 2000.03).WT/ACC/DZA/15
Page 82
Question 139
Do foreign operators have to comply with the universal service obligations?
Reply
An Executive Decree defining the content, charges and financing modalities both for
operators and the State is currently being drawn up in accordance with Article 7 of the Law.
Question 140
Are express services controlled by th e Regulatory Authority for Posts and
Telecommunications?
Reply
Yes, pursuant to Articles 13 and 64 of the law, the Regulatory Authority for Posts and
Telecommunications is responsible for regulating the postal services.
Question 141
Will foreign operators be able to establish their own networks?
Law No. 2000.03 of 5 August 2000 allows the establishment, exploitation and/or supply of
postal services other than those covered by the exclusive regime.
Question 142
What will be the exact role of th e Regulatory Authority for Posts and
Telecommunications mentioned on page 94?
Reply
The responsibilities of the Regulatory Authority for Posts and Telecommunications are set out
in Article 13 of the Law and include the following:
- Ensuring that there is fair and objective competition in postal services;- arbitrating disputes among operators or with users.
Question 143
Will it supervise the supply of all postal and courier services?
Reply
It will be involved in setting the criteria for granting authorizations.
It will monitor the existence of fair and effe ctive competition in the market and take all
necessary measures to promote or restore competition in postal services.WT/ACC/DZA/15
Page 83
Question 144
Which specific measures and provisions will guarantee this regulatory authority's
independence?
Reply
The members of the Council of the Regulatory Authority for Posts and Telecommunications
and the Director-General are appointed by the President of the Republic (Article 15 of the Law).
At the financial level, the Regulatory Authority for Posts and Telecommunications has its
own resources derived from the following:
- Payment for services;
- fees;- a percentage of the revenue from the financial counterpart received from the sale of
licences;
- contributions by operators to the financing of the universal service.Furthermore, if needed, the Regulatory Authority for Posts and Telecommunications may call
on credit under the State budget (Article 22 of the Law).
Question 145
During the multilateral negotiations on Algeria's accession to the World Trade
Organization, held on 7 February 2002 at the WTO headquarters in Geneva (Switzerland), a
delegate of Australia asked three oral questions concerning the telecommunications sector.
They can be summarized as follows:
Algeria's telecommunications legislation provides that the State has the exclusive right
to the spectrum of radio frequencies.  How are the frequencies managed and allocated to
telecommunications operators?
Does Algeria's telecommunications legislation take into account the principles and rules
set out in the Reference Paper adopted by Member countries?
What is the status of the reform process in  the telecommunications sector, in particular
the implementation of the new regulatory framework?
Reply
Law No. 2000.03 of 5 August 2000 defines the general conditions for postal services and
telecommunications and Article 6 states the following:
"Under its prerogatives of control of telecommunications the State enjoys:exclusive use of the radio-frequency spectrum and administers its use by operators, suppliers
of services and direct users, ensures application of the conventions, regulations and
arrangements of the International Telecommunication Union;
etc … ".WT/ACC/DZA/15
Page 84
Article 13 of the this Law nevertheless gives the Regulatory Authority for Posts and
Telecommunications (an independent administrative authority) responsibility inter alia  for planning,
managing, assigning and controlling the use of frequencies.
This responsibility is exercised by the Regulatory Authority for Posts and
Telecommunications in an objective, transparent and non-discriminatory manner.
The management of the frequency spectrum in general is entrusted to an institution called the
National Frequency Agency, for which the Executive Decree determining its organization and
functioning is currently being finalized.  For this purpose, Article 24 of Law No. 2000.03 of
5 August 2000 provides the following:
"The radio-frequency spectrum is part of the public domain of the State.
The division of the spectrum into frequency bands and their assignment to various users is the
prerogative of the State.
The assignment of radio frequencies is subject to payment of a fee determined in the
regulations."
The Regulatory Authority for Posts and Telecommunications is assigned frequency bands, on
the same basis as other assignees (Ministry of Foreign Affairs, Ministry of Transport, Ministry of theInterior) which it then assigns to various teleco mmunications operators and other radiocommunication
users.
Algeria's telecommunications legislation and regulations contain all the principles and rules
set out in the Reference Paper adopted by the Member countries of the World Trade Organizationconcerning the independence of regulatory bodies, safeguarding competition, interconnection of
telecommunications networks, the application of transparent practices for the granting of licences,
universal service obligations and the distribution of scarce resources.
Establishment of an independent regulatory authority
Article 10 of the aforementioned Law No. 2000.03 of 5 August 2000 establishes an
independent and autonomous regulatory authority.  The Article reads as follows:  "An independent
regulatory authority with legal status and financial autonomy is hereby established.  The headquarters
of the regulatory authority shall be in Algiers."
The Regulatory Authority comprises two bodies:- The Board, composed of seven members, including the chairperson appointed by the 
President of the Republic;
- the Director General also appointed by the President of the Republic.The resources of the Regulatory Authority include the following (Article 22 of Law
No. 2000.03 of 5 August 2000):
- Remuneration for services rendered;- fees;WT/ACC/DZA/15
Page 85
- a percentage of the revenue from the financial counterpart received from the sale of
licences;
- contributions by operators to the financing of the universal service;- where necessary, budgetary allocations from the State.
Measures to protect competition (in particular cross-subsidy practices):
The Law establishes the general rules concerning posts and telecommunications and prohibits
cross subsidies.  Article 27 of the Law states the following:
"Operators and suppliers of services may not use activities in which they enjoy a dominant
position within the meaning of Order No. 95.06 of 25 January 1995 on competition in order to
subsidize other activities."
The Regulatory Authority ensures that operators apply the provisions of this Article and that
there is effective and fair competition in the telecommunications market (Article 13 of theaforementioned Law).
Measures to ensure the interconnection of telecommunications networks
Interconnection between the telecommunications networks of new operators and that of the
traditional (public) operator is assured.  Pending the establishment of a list of interconnections by the
dominant operator(s), new operators can interconnect their networks through a freely negotiated
interconnection agreement.  After it has been finalized and signed by both parties, the agreement must
be approved by the Regulatory Authority, which ensures that the terms of the agreement are applied
properly and rules on any disputes related to th e interconnection (Article 13 of Law No. 2000.03 of
5 August 2000).
In addition, Article 25 of Law No. 2000.03 of  5 August 2000 obliges operators of public
telecommunications networks to accede to interconnection requests by other operators in an objective,
transparent and non-discriminatory manner.
Transparency and non-discrimination in the sale of licences
The granting of telecommunications licences must be objective, transparent and
non-discriminatory.
For this purpose, the Algerian Government ha s issued an Executive Decree defining the
procedure applicable to competitions for the award of licences in the telecommunications sector
(Executive Decree No. 01.124 of 9 May 2001).
Obligation to provide a universal service
Article 4 of Law No. 2000.03 of 5 August 2000 provides for the principle of supply of a
universal service.  Article 7 of this Law states the following: "the universal postal and
telecommunications service, the tariffs applicable and its eventual mode of financing both by the State
and by operators' contributions are defined in the regulations".
The Executive Decree defining what is contained in the universal service is being drafted.WT/ACC/DZA/15
Page 86
It should be noted that the universal service is managed by the Regulatory Authority.
Assignments to operators in the area covered by the universal service will be made transparently
through invitations to tender administered by the Regulatory Authority.
Distribution of scarce resources
In the area of telecommunications, resources deemed to be scarce are radio frequencies,
blocks of numbers and rights of way.
Concerning radio frequencies and blocks of numbers, Article 13 of Law No. 2000.03 entrusts
the Regulatory Authority with administering these resources and it must do so in an objective,
transparent and non-discriminatory manner.  This Article provides the following:
"The Regulatory Authority is responsible for:
…;planning, administering, assigning and controlling the use of frequencies in the bands
allocated to it, while observing the principle of non-discrimination;
drawing up a national plan for numbering, examining requests for numbers and allocating
them to operators;
…"
Regarding rights of way, Articles 43-56 of the aforementioned Law No. 2000.03 allow
telecommunications operators to benefit from rights of way.
The Executive Decree defining the rights of wa y relating to installation and/or operation of
telecommunications equipment is currently being finalized.
Prior to the enactment of Law No. 2000.03 of 5 August 2000, the telecommunications sector
was governed by the provisions of Order No. 75.89 of 30 December 1975 on the Posts andTelecommunications Code.  This Order gave th e State monopoly over posts and telecommunications
to the Ministry of Posts and Telecommunications.
Thus, the Ministry of Posts and Telecommunications acted, inter alia , as posts and
telecommunications operator and regulator.
The new legislation (Law No. 2000.03 of 5 August 2000) separated the functions of the
Ministry of Posts and Telecommunications.  This has resulted in the creation of a Regulatory
Authority, a public establishment of an industrial and commercial nature "Algérie Poste"  and an
operator "Algérie Télécom"  in the form of a joint stock company.
This new Law also provides that the sector should open up to competition;  during 2001, this
resulted in the sale of a second GSM mobile telephone licence.
The opening of the telecommunications sector to competition is based on three exploitation
regimes:
- Licences (awarded by Executive Decree after adjudication following an open
invitation to tender);
- authorizations (issued by the Regulatory Authority);WT/ACC/DZA/15
Page 87
- simple declarations (issued by the Regulatory Authority).
With regard to the reform of the regulatory framework for posts and telecommunications, the
following texts have been adopted and published in the Official Journal of the Republic of Algeria:
- Law No. 2000.03 of 5 August 2000 defining the general rules on postal and
telecommunications services;
- Executive Decree No. 01.123 of 9 May 2001 on the operating regime applicable to
each type of network, including radio networks and various telecommunications
services.
- Executive Decree No. 01.124 of 9 May 2001 defining the procedure applicable to
adjudication following an open invitation to tender for the grant of
telecommunications licences;
- Decree of 12 May 2001 of the Minister for Posts and Telecommunications setting the
date for the opening of the competition to establish and exploit the public GSM
mobile telephone network;
- Presidential Decree No. 01.94 of 15 April 2001, defining high points and specifying
the arrangements for their management and protection;
- Executive Decree No. 01.129 of 31 July 2001 approving the licences for the
establishment and operation of a public GSM mobile telephone network and the
supply of telecommunications services to the public;
- Executive Decree No. 01.416 of 20 December 2001 approving the investment
agreement signed between the Agency for the Promotion, Support and Monitoring of
Investment (APSI) and Orascom Télécom Algérie;
- Executive Decree No. 01.417 of 20 December 2001 authorizing the establishment
and/or operation of public telecommunications networks, including radio networks,
other than GSM, and the supply of telecommunications services by Algérie Télécom
SPA;
- Executive Decree No. 01.418 of 20 December 2001 on the operating regime
applicable to each postal service;
- Executive Decree No. 02.04 of 6 January 2002 defining the composition and
functioning of the national commission responsible for allocating the personnel and
assets of the postal and telecommunications administration;
- Executive Decree No. 02.43 of 14 January 2002 creating "Algérie Poste";- Executive Decree No. 2.44 of 14 January 2002 setting the amount of the annual fee
payable by operators holding postal service operating licences;
- Presidential Decree No. 02.48 of 16 January 2002 on the creation, organization and
functioning of the Algerian Space Agency;
- and Presidential Decree No. 02.49 of 19 January 2002 defining the composition,
responsibilities and functioning of the National High Points Commission.WT/ACC/DZA/15
Page 88
(d) Advertising
Question 146
It is stated that, in practice, competitio n remains limited, ev en though the former
monopoly of the public advertising agency (ANEP) has been abolished and private agencieshave since entered the market.  In this regard, pl ease explain in detail what is meant by the term
"limited" and what is the prospect for abolishing any such limitation?
Reply
This situation no longer applies.
ANEP's network, experience, know-how and cl ientele mean that it holds an important
position in the advertising market.  Nevertheless, over the past two years, its share of the market has
fallen from 54 per cent to only 17 per cent in favour of private advertising agencies.
(f) Financial services
(ii) Insurance
Question 147
Is the system of  branches allowed in Algeria?
Reply
Article 215 of Order No. 95.07 of 25 January 1995 provides that insurance and/or reinsurance
companies must be established under Algerian law and be in one of the following two forms:
- Joint stock company;
- mutual insurance company.A branch is a commercial establishment set up by an enterprise or company, which is
autonomous in relation to the original enterprise or company without being legally distinct.
The act of establishing a branch therefore results in a company under Algerian law in one of
the above forms and duly authorized.
Creation of a subsidiary is, however, allowed.
Question 148
What measures are the Algerian authorities taking to break up the monopoly of
Algerian insurance companies?
Reply
Since 1995, a new Order (No. 95.07 of 25 January 1995) on insurance has been enacted in
order to install mechanisms capable of establishi ng competition among insurance companies while at
the same time allowing them to carry on their profession in a harmonious competitive environment.WT/ACC/DZA/15
Page 89
Order No. 95.07 has led to the following changes:
- Liberalization of the insurance market because it allows the establishment of
insurance companies using national and/or foreign private capital;
- abolition of the reinsurance monopoly;- introduction of a commercial impetus through the entry of private intermediaries
(general agents and brokers).
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
1. Economic integration, customs union and free-trade area agreements
(a) Agreement with the Arab Maghreb Union (AMU)
Question 149
Please explain in detail the work schedule set out for notifying this Agreement to the
WTO.
Reply
The trade and tariff agreement ratified by Algeria on 21 April 1992 has not been implemented
because the ratification process by member States has not yet been completed.
__________