RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/DZA/15/Add.1
25 March 2002
(02-1532)
Working Party on the Accession of Algeria Original:  French
ACCESSION OF ALGERIA
Additional Questions and Replies
Addendum
The Permanent Mission of the Republic of Algeria has communicated to the Secretariat the
replies to the additional questions put by Members.  The questions and replies are reproduced below.WT/ACC/DZA/15/Add.1
Page ii
II. ECONOMY, ECONOMIC POLI CIES AND FORE IGN T RADE ......................................1
2. Economic policies............................................................................................................ ..........1
(a) Main directions of the current economic polic ies and their tactical and strategic goals.............1
(b) Monetary and fi scal policies ................................................................................................ .......2
(c) Foreign exchange regime and lib eralization of fo reign trade .....................................................3
(e) Price and comp etition pol icies.............................................................................................. ......6
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................8
1. Import re gulation............................................................................................................ ..........8
(a) Registration requirements for engaging in  importing.................................................................8
(d) Other duties and charges, including any charges for serv ices rendered ...................................15
(e) Quantitative import restricti ons, including prohibitions...........................................................16
(f) Import licensing  procedures................................................................................................. .....17
(h) Customs valuation........................................................................................................... ..........18
2. Export regulation............................................................................................................ ........18
(a) Registration requirements fo r engaging in exporting ...............................................................18
(e) Other measures .............................................................................................................. ...........19
3. Internal policies affectin g foreign trade in goods.................................................................21
(c) Sanitary and phytos anitary m easures........................................................................................2 1
(e) State-tradi ng prac tices..................................................................................................... ..........22
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................22
4. Policies affecting trade in agricultura l products..................................................................22
(b) Exports..................................................................................................................... .................22
(e) Internal agricu ltural pol icies .............................................................................................. .......23
VI. TRADE-RELATED SE RVICES RE GIME .........................................................................24
1. General...................................................................................................................... ...............24
(b) Posts and te lecommuni cations ................................................................................................ ..24
ANNEX .......................................................................................................................... .......................29WT/ACC/DZA/15/Add.1
Page 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic policies
(a) Main directions of the current economic policies and their tactical and strategic goals
(vi) Programme of privatization of State-owned enterprises
Question 1
With regard to the reply to question 86 addressed to the WTO in 1997, could you
provide details on progress in ending the monopoly?
Reply
In recent decades, Algeria has undertaken far-reaching reforms in order to put in place the
mechanisms of a market economy.
The main features of these remarkable developments consist of a series of measures related
primarily to price liberalization, abolition of the monopoly of foreign trade and opening up of Statefirms to private investment.
The new ordinance on privatization issued in August 2001 extends the scope of privatization
to all State firms, whatever their field of activity.  It makes the procedures for privatization and the
control measures more flexible and sets out rules on transparency in the conduct of privatizationprocedures, especially fair competition.  It provides full guarantees for investment in privatization
operations, in particular the right to transfer income, and offers substantial advantages to bidders who
undertake to preserve jobs and activities.
The regulations in application of the new ordinance have been adopted and published and the
measure is now in force.
Parallel to this, the opening up of the telecommunications sector to domestic and foreign
private capital began in 2001.  The sector is being progressively liberalized and Algeria has set up a
Regulatory Authority ( Autorité de Régulation de la Poste et des Télécommunications  (ARPT), whose
main responsibility is to ensure transparency and guarantee fair competition among operators.
In mobile telephony, the second GSM licence was awarded to a foreign operator and the
potential for the future is considerable:  some 2 million GSM lines.
Algeria passed a new mining law on 3 July 2001 to encourage domestic and foreign
investment in this sector, without any discrimination.
The various measures to tackle the virtual monopoly enjoyed by State firms in the mining
sector apply to geological infrastructure, prospection and extraction of mineral and fossil substances.
A law to open up the electricity market was also passed by the Government in October 2001.Distribution could therefore be opened up to the private sector under a public service
concession.WT/ACC/DZA/15/Add.1
Page 2
The withdrawal of the State from this sector, in which it had held a monopoly for 35 years
through the State-owned SONELGAZ, will be reflected in the creation of an independent regulatory
body whose main task will be to ensure transparency in the electricity market.
(b) Monetary and fiscal policies
Question 2
Algeria has stated that its internal taxes apply both to imports and domestic products
(page 48 of WT/ACC/DZA/1;  page 50 of WT/ACC/DZA/14/Add.1).  However Algeria has
elsewhere stated that "Investments in durum wheat and common wheat are exempt from VAT"
(page 68 of WT/ACC/DZA/1), implying that the treatment of imported and domestically
produced wheat under its VAT regime may not be the same if imported wheat is subject toVAT.
Are VAT rates the same for imported and domestically produced wheat?Is the reduced rate of VAT (7 per cent) for producers of corn, rice in the husk, grain
sorghum, insecticides, fungicides, herbicides, fertilizers and agricultural equipment applicable
to imports of the same products?
Are the warranty fees on gold and precious metals applied only at the point of entry of
gold and precious metals into Algeria?  If such fees do not provide remuneration for a serviceassociated with importation, then  they are of the nature of a tax that does not meet the national
treatment obligations of Article III of the GATT, and their elimination by the date of accession
is expected.  If this is the case, when will these "fees" be eliminated?
A slaughter tax applicable to imported live animals will not be applicable to live animals
of Algerian origin and will therefore also not meet Algeria's future national treatment
obligations under Article III of the GATT.  The elimination of this tax by the date of accession is
expected.  When will this tax be eliminated?
Algeria undertook in 1998 to abolish both the warranty fees and the slaughter tax and
bring the products affected by those taxes under the VAT regime (page 28 of WT/ACC/DZA/2).
Have all these steps been taken?
Are the rates of VAT applicable to gold, prec ious metals and live animals identical for
imported and domestically produced like products?
Reply
With the exception of wheat, which is exempt on importation and internally, the same rate of
VAT applies to like imported and domestic products.
It should be noted that the agricultural sector is outside the scope of VAT, except in the
special case of an agricultural activity carried on commercially.
In addition, cereals used for the manufacture of bread flour and semolina from milled cereal
grain are exempt from VAT.
The lower rate of VAT (7 per cent) applies equally to the following imported or domestic
products:WT/ACC/DZA/15/Add.1
Page 3
- Barley, oats, maize (corn), rice, grain sorghum;
- insecticides, fungicides, nematicides and herbicides for agriculture.For agricultural machinery and equipment, however, the applicable rate of VAT is 17 per
cent.
Fertilizers are exempt from VAT.Warranty fees on gold and precious metals are exactly the same for imported and domestic
products.
They are thus consistent with national treatment obligations under the GATT.
The slaughter tax does not apply to imported live animals, which are subject to VAT at the
lower rate of 7 per cent.
The slaughter tax applies to the meat of slaughtered animals, both imported and domestic,
under the same conditions.
This tax is also consistent with the national treatment obligations under the GATT.
No measures have been taken to abolish the warranty fees and the slaughter tax.
The rates of VAT applied to gold, precious metals and live animals are the same for imported
and domestic like products.
(c) Foreign exchange regime and liberalization of foreign trade
Banking domiciliation
Question 3
Could Algeria provide more information on the need for banking domiciliation?
Reply
Prior domiciliation of imports is necessary because it allows better monitoring of foreign
trade statistics and the associated financial flows.  The balance of payments is thus prepared on a
more reliable basis.
Question 4
Could Algeria explain exactly how domiciliation assists in reducing informal sector
activities?
Reply
Banking domiciliation means that for every physical movement, there is a financial flow
through the banking sector.  The justification for the physical movement on clearance through
customs comes from the registration number issued and the domiciliation stamp which must be shown
on the contract or invoice.  The idea of this measur e is to bring and/or force any informal activity into
official channels.WT/ACC/DZA/15/Add.1
Page 4
Question 5
What are the fees and formalities involved in banking domiciliation?
Reply
The fees for banking domiciliation vary from one bank to another.   Banks are free to set the
terms applied to banking transactions, which are notified to their clients.
In the case of banking domiciliation, the importer must present either a contract, pro forma
invoice, bill or firm order, or an exchange of correspondence containing full details of the commercialcontract.
The bank checks the legal and regulatory conditions relating to the importation before
opening the domiciliation account.
Question 6
Are legal and natural persons, domestic or foreign, treated equally in relation to
domiciliation?  Are there any restrictions?  Are foreign legal and natural persons subject to the
same requirements and do they have the same ri ghts in respect of domiciliation as domestic
legal and natural persons?
Reply
Only domestic and/or foreign legal persons registered in the commercial register are eligible
to domicile their imports.  National treatment is applied to foreign legal persons established in
Algeria.
Question 7
Are measures of any kind (e.g. foreign exchange controls, controls on borrowing by
intending traders or lending by financial intermediaries) applied by any government bodythrough the process of prior domiciliation?
Reply
There are no measures that make any distinction among importers.  The importer domiciles
his contract with the bank of his choice and the bank checks the legal and regulatory conditions
covering the transaction (e.g. solvency of the importer, permitted goods).  A contract that is in order
will automatically be domiciled.
Question 8
Are any financial charges, restrictions or co nditions placed on importers to guarantee
banking domiciliation?
Reply
Please see replies above.WT/ACC/DZA/15/Add.1
Page 5
Question 9
What is an approved banking intermediary for the domiciliation of importations?
Reply
Approval of a bank or financial institution to handle foreign trade transactions is the
responsibility of the Bank of Algeria.  Any newly established local or foreign bank wishing to handle
foreign trade and/or currency transactions must  apply to the foreign exchange department ( Direction
Génerale des Changes ) of the Bank of Algeria, which will assign it a registration number.   Existing
banks that wish one of their branches to handle foreign trade and/or currency transactions submit their
application to the Bank of Algeria, specifying the branch concerned and stating that it has thenecessary human and material resources for the proper conduct of such business.
The Bank of Algeria assigns it a registration number not later than two months after the
submission of the application.  All authorizations are permanent but may be revoked in the event of
irregularities.
Question 10
Which banking intermediaries in Algeria ar e approved banking intermediaries?  Please
supply more details of who owns these approved banking intermediaries.  What commercialinterests do the owners of these banking intermediaries have in importation or any domestic
activities where there is import competition?
Reply
At present, all the banks are approved intermediaries for handling foreign trade transactions.
For reasons of statistical monitoring and analysis, a registration number is assigned to them as an
identifier.  For further details, please see the reply to the previous question.
Question 11
How do banking intermediaries gain approval for granting prior domiciliation of
imports?  What bodies oversee this process?
Reply
Only approval to handle foreign trade and/or currency transactions may be requested, and this
applies to any newly established bank or to a bank for the activities of a particular branch.  No
approval is required to guarantee prior domiciliation of imports.
Question 12
Are there any approval processes of any kind involving a body or bodies for the prior
domiciliation of imports with the approved banking intermediaries?
Reply
Only the bank approved to handle foreign trade is qualified to evaluate documents presented
by the importer in relation to prior domiciliation of his importation.  No official body is involved in
this process for the very reason that domiciliation is a mere formality as described above.
Nevertheless, in the event of refusal of domiciliati on, the importer may appeal to the Bank of Algeria.WT/ACC/DZA/15/Add.1
Page 6
(e) Price and competition policies
Question 13
In 1998, price controls were applied to packaged pasteurized milk, common wheat,
ordinary flour, ordinary and improved bread, dr inking water and water for agricultural use, a
range of petroleum products, electricity and a range of medicinal products (reply to question 11
of WT/ACC/DZA/4 of 22 January 1998).  Algeria's revised Memorandum
(WT/ACC/DZA/14/Add.1 of 24 August 2001) however provides little new information on the
products subject to price controls and has few relevant details of applicable price control
measures.  We ask that a table be supplied listing:
- The tariff code and description of all products subject to domestic price
measures,
- stating for each product:
- details of the type of price control maintained (e.g. price cap, price floor,
profitability control);
- the rationale for applying the measure (e.g. consumer price support, producer
price support, price stabilization);
- the body (including any sub-central authority) applying the measure;
- the legal basis for the measure.
Algeria indicated in 1998 that the prices of certain specific goods and services
considered to be of strategic importance could be fixed pursuant to advice provided by the
Competition Council (reply to question 13 of WT/ACC/DZA/4).  Is this still the case?  What
specific goods and services are considered to be of strategic importance and may be subject to
such price control measures?  In relation to what goods and services has advice been provided
by the Competition Council leading to the imposi tion of price control measures?  Could details
of such measures be supplied?
On page 13 of WT/ACC/DZA/14/Add.1, Algeria states that "Free pricing is the general
rule and the determination of prices by the State is an exception applicable only in unusual
situations or special circumstances".  What does Algeria consider an unusual situation or
special circumstance?
On page 13 of WT/ACC/DZA/14/Add.1, Algeria mentions milk, semolina and flour, as
products not covered by the free price regime, me aning that they are subject to price regulation.
Could Algeria provide details of the criteria for determining which products are not covered by
the free price regime "because of their considerable social importance"?
Reply
Semolina has not been included in the products subject to price regulation since
February 1997.
The following food products are subject to price regulation:
- Ordinary flour (price to bakers:  DA2,000/Q1);
- ordinary bread (price: DA7.50/unit of 250grs);
- improved bread (price: DA8.50DA/unit of 250grs);- pasteurized milk (DA25/litre).  The prices for other packs were freed in
February 2001.WT/ACC/DZA/15/Add.1
Page 7
Price regulation is a domestic regulation consistent with the provisions of Article III of the
GATT "National treatment on internal taxation and regulation".  It affects sales and does not apply to
imported or domestic products in such a way as to protect domestic production.
The fixing of the prices of flour, pasteurized milk in and bread is consistent with the
provisions of Article III of the GATT.  It is applied for social reasons and has no harmful effects for
WTO members supplying such products.
In all sectors of the economy,  prices of goods are freely determined by market forces with the
exception of the following products and services:
Products subject to price regulation:
Product Stage at which price is fixed
Pasteurized milk Producer price
Wholesale margin
Retail margin
Common wheat Producer price
Common bread flour Price to bakers
Price to retailers
Price to consumers
Ordinary bread Selling price to consumers
Improved bread Selling price to consumers
Drinking water and water for agricultural use Price to users
Regular petrol Price to resellers
Premium petrol Price to bulk user
Diesel Pump price
Heating oil Price to users
Domestic natural gas Price to users
LPG in bulk Price to resellers
Price to users
Propane Price ex filling centre
Price to retailers
Price to users
Butane gas Price ex filling centre
Price to retailersPrice to users
Electricity Price to users
Medicines Production margins
Packaging marginsWholesale margins
Retail margins
Services subject to price regulation:
- Rail transport;
- taxi transport;
- transport of oil by pipeline.
The prices of these goods and services are fixed by Executive Decree following inter-
ministerial consultation.WT/ACC/DZA/15/Add.1
Page 8
Algeria will apply price regulation in a manner compatible with the WTO and will take
account of the interest of exporting Members in accordance with Article III.9 of the GATT 1994.
Algeria will announce the goods and services subject to price regulation, as well as any changes to
current price controls,  in the Official Journal.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import regulation
(a) Registration requirements for engaging in importing
We note that the trade authorities do not is sue authorizations of general application to
engage in importing (reply to question 21 of WT/ACC/DZA/4).  However, Algeria requires:
- The registration of all natural and legal persons engaged in commercial activities
(under the Commercial Code) including, inter alia , the activities of importation
and exportation;
- compliance with provisions on government procurement applicable to central
and sub-central government bodies and authorities;
- prior domiciliation (i.e. registration) of import transactions with one of Algeria's
approved banking intermediaries;
- all "foreign traders" registered to be engaged in commercial activity must also
have a "trader's card" in order to engage in foreign trade.
In principle, we see no difficulty with intending importers and exporters being subject to
commercial registration requirements that apply generally to all natural and legal persons who
wish to engage in commercial activities in Algeria, as long as those requirements are reasonable,
non-discriminatory, do not create any unjustifiable barriers to trade and are consistent with the
WTO's guarantees of the right to trade under Articles III.4 and XI.1 of the GATT and with
other WTO rules.  A number of points however appear to be in need of clarification.
Question 14
Are all natural and legal persons, domestic or foreign, equally eligible for inclusion in
the commercial register?
Reply
All natural and legal persons are subject to the same requirements with respect to inclusion in
the commercial register.
Any industrial or commercial concern with its headquarters abroad that establishes an agency
or branch or any other establishment is likewise to be registered in the commercial register.
Question 15
On what grounds may an applicant be considered ineligible to apply for commercial
registration or, if eligible to apply, be refused registration?
Reply
Inclusion in the commercial register is a notarized act which certifies full legal capacity to
engage in trade.  It gives the right to freely exercise a commercial activity.WT/ACC/DZA/15/Add.1
Page 9
The following are subject to the requirement for 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 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 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 authority before they can be established (listed establishment).
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 nom collectif (SNC);
- limited liability companies (SARL, EURL);
- joint-stock companies (SPA).
Procedure for obtaining commercial registration
- Commercial firms
A person who is required to obtain commercial registration submits the firm's statutes, the
minutes of the constituent general assemblies, the results of the election of the administrative andmanagement bodies, the powers of the directors and any other deeds specifically provided in the
current legislation.
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
amount of statutory capital has been paid up and that the firm has established a proper head office.
- Natural persons
Any natural person possessing civil capacity and civil rights who expresses a wish to engage
in an activity covered by commercial law must ma ke a declaration before a duly authorized public
official stating specifically that he wishes to enga ge in that activity, in accordance with the law and
normal commercial practice, and that he has not been the subject of any measure prohibiting him from
carrying out that particular activity.WT/ACC/DZA/15/Add.1
Page 10
Registration may only be refused in cases where the above requirements are not satisfied by
the applicant.
Question 16
Apart from differences in the documentation requirements for legal and natural persons
mentioned in Algeria's reply to question 23 of WT/ACC/DZA/4, are there any other differences
in fees, charges, formalities or other requi rements applicable to different categories of
applicants for inclusion in the commercial register?
Reply
There are no formalities other than those mentioned in the previous replies
Question 17
What are the fees, charges, formalities or other requirements associated with the
inclusion of an eligible natural or legal person, domestic or foreign, in the commercial register?
Reply
The fees, which make no distinction, are as follows:
- Applicable charges:
The fees charged by the National Centre for the Commercial Register (CNRC), for keeping
the local and central commercial registers and for legal notices are as follows:
- Natural persons:
 Registration category Fee (DA)
Registration
-  Itinerant trades
-  Retailers-  Supermarkets-  Wholesalers-  Import/export (wholesalers)
-  Supplies of services
-  Production/processing1,300.00
1,800.002,700.002,700.002,700.00
2,200.00
2,700.00
Changes 1,350.00
Cancellation 750.00
- Legal persons:
Registration category Fees (DA)
Main registration
Capital < DA30,000
Capital DA30,000  to DA100,000DA100,001 to DA300,000
Capital DA300,001 and over5,600.00
5,700.005,950.00
6,100.00
Secondary registration
Without increase in capital
Capital increase of  DA10,000 to DA50,000Capital increase of  DA50,001 to DA100,000Capital increase of  DA100,001 or more5,600.00
2,100.002,200.002,450.002,600.00WT/ACC/DZA/15/Add.1
Page 11
Registration category Fees (DA)
Cancellation + Dissolution 1,300.00
Deposit of statutes or deeds (other than dissolution) 500.00
Deposit of deed of dissolution 400.00
Question 18
How may any natural or legal person, domestic or foreign, find out about the whole
range of applicable fees, charges, formalities and requirements?  Is this information published
in a  place where any person may have ready access to it?
Reply
All information concerning inclusion in the commercial register can be obtained from the
National Centre for the Commercial Register ( Centre National du Registre de Commerce), Route
Nationale n° 24 – Bordj-El-Kiffan – Algies  - Telephone: (213) (21) 20 57 48/49.
Question 19
Will commercial registration be granted automatically and promptly in all cases subject
to an applicant's discharge of his/her obligatio ns in relation to all relevant fees, charges,
formalities and requirements?
Reply
The commercial register is kept by the official in charge of the branch of the National Centre
for the Commercial Register, who is a public official representing the law.
The official is responsible, under his direct authority, for entries in the commercial register,
subject to control by a judge responsible for supervision of the commercial register.
Entries are made after checking the documents in the dossier submitted by the applicant.
Incomplete or incorrect dossiers are systematically refused.
For all registrations, a receipt for the submission of the registration dossier is issued to each
applicant.  The receipt serves as an extract from the commercial register and allows the 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 who have an interest to lodge any opposition following publication of the
registration in the Official Gazette of Legal Notices.  Disputes are brought before the judge
responsible for supervising the commercial register.
Question 20
Is there any part of the approval process for commercial registration where discretion
may be exercised by any government minister, official or body, whether at central or sub-
central level, that may result in the refusal of re gistration, delays in the registration process, or
the imposition of any additional fees, charges, formalities and requirements?WT/ACC/DZA/15/Add.1
Page 12
Reply
Any objections by third parties are submitted to the judge responsible for supervising the
commercial register for examination and he alone is empowered to decide.
Question 21
Apart from "foreign traders" (for whom there seem to be additional requirements),
does any natural or legal person on the comm ercial register have the unrestricted right to
engage in importation or exportation when they are on the register?
Reply
All natural and legal persons in the commercial re gister have an unrestricted right to engage
in exportation.  Importation is restricted to legal persons only.
Question 22
Are natural or legal persons on the commerci al register required to meet any particular
requirements under the registration process in order to engage in importation or exportation,
over and above the requirements for engaging in other commercial activities?
Reply
Apart from registration in the commercial register, banking domiciliation is required to
engage in importation and exportation
Question 23
On what grounds may third parties appeal against a decision on inclusion in the
commercial register?
Reply
The law provides for appeal against inclusi on in the commercial register to the judge
responsible for supervising the commercial register , who decides by order, or summary ruling.  Such
an appeal is the consequence of disputes that may occur as to the capacity to engage in a commercial
activity or the registration proper in the commercial register.
The capacity of the person means his legal capacity to exercise his rights and commit his
assets.  Persons eligible to appeal are those who have  an interest, i.e. those to whom inclusion in the
commercial register may cause harm.
Question 24
Except in the case of substantial administrative errors, how can third party rights of
appeal be reconciled with automaticity and promptness of the registration process and the
security and predictability of commercial registration?
Reply
Third party appeal is consistent with automaticity and promptness of registration in the
commercial register, because the procedure in such cases is a summary legal procedure, in which the
judge gives an immediate ruling.WT/ACC/DZA/15/Add.1
Page 13
The security of the commercial register is guaran teed by the legal nature of this ruling, which
is an official act by a public official and subject to legal notice.
Question 25
In the case of administrative error, why are the rights of third parties not simply
restricted to rectification of the error?
Reply
In Algerian law, appeal by third parties, in the case of administrative error, is restricted to
matters which might cause them injury.
Question 26
How long does the appeal take?
Reply
In summary proceedings, the time limits are reduced.  However, the proceedings are
dependent on the actions of the parties to the proceedings.
Question 27
Can Algeria confirm that commercial registr ation remains a condition for the issuance
of a "trader's card"?  Are there any other conditions?
Are all natural and legal persons which have commercial registration, apart from
foreign traders, required to have a "trader's card" in order to  engage in trade?  Or is this a
requirement applicable only to "foreign traders"?
What precisely is meant by a "trader's card", and what is the rationale for imposing
this requirement?
What body issues "trader's cards"?What precisely is  meant by a "foreign trader"?  Is a foreign trader simply any
intending trader who is a foreign natural or legal person resident in Algeria?  Or somethingelse?  In relation to foreign legal persons, how is the origin of the capital determined?
Are all natural and legal persons, domestic or foreign, equally eligible to apply for a
"trader's card"?
What are the rights of holders of "trader's cards"?  For how long do "trader's cards"
remain valid?  Do they entitle holders to import any product, or only specified products?  Is it
possible for a legal or natural person to be requi red to hold more than one card at the same time
in order to import more than one kind of product?
Could Algeria provide full details of all fees, charges, formalities and requirements
associated with the issuance of "trader's card s", and of how any intending trader may find out
about them?
Are "trader's cards" issued automatically and promptly if such requirements are met?WT/ACC/DZA/15/Add.1
Page 14
On what grounds may an application for a "trader's card" be refused?  Which bodies
may refuse applications, and how are such decisions taken?  Are unsuccessful applicants
advised in writing of the grounds for refusal of issuance of a "trader's card" and of their rights
of appeal?  What are the avenues of appeal  that are open to unsuccessful applicants?
On what grounds may a "trader's card" that has been issued be revoked?  What are the
rights of holders of "trader's cards" which ar e revoked in respect of:  notice of intention of
revocation;  the provision in writing of reasons for revocation;  information about avenues of
appeal;  and the process for appeals against revocation decisions?
Reply
This series of questions shows that there is a misunderstanding as to the nature and effect of
the "trader's card".  The card is issued to foreign natural persons representing commercial firms solely
for statistical purposes relating to the residence of foreigners.
The card therefore has nothing to do with the formalities related to importation and
exportation.
With respect to the requirements for obtainin g a trader's card, its validity, issuance and
revocation, the following should be noted:
A trader's card is issued only to foreign representatives of commercial firms.  These are
foreign members of administrative and management boards of commercial firms and of the
administrative and executive organs for which they are responsible under the statutes.
It is issued to such persons on registration of the legal person for whose administration and
management they are officially responsible by the regulatory authorities in the wilaya  (department)
concerned where the application is submitted.
The application for a trader's card must be accompanied by the following documents:- A photocopy of the entry for the legal person in the commercial register;
- a notarized copy of the statutes of the firm represented;
- a notarized copy of the passport;
- five passport size identity photos.
The trader's card is issued automatically and promptly on request by the person concerned.The duration of validity of a trader's card is two years and it may be renewed for a further
two years by endorsement of the original card, with a note and stamp showing the extension of the
duration by the regulatory authorities in the wilaya  concerned.  The request for extension must be
made by the person concerned not less than two months before the date of expiry of the trader's card.
The foreign trader's card may be revoked in the following circumstances:- Death of the holder;
- cessation of activities of the firm in respect of which the foreign trader's card was
issued;
- termination of service or resignation of administrators or managers of firms;
- loss of status of trader.WT/ACC/DZA/15/Add.1
Page 15
The requirement of a foreign trader's card is imposed for statistical purposes.  A register,
numbered and initialled by the president of the competent local court, listing in chronological order
the foreign natural persons representing commercial firms and the firms they represent, is maintained
by the responsible department in each wilaya .
(d) Other duties and charges, including any charges for services rendered
Question 28
The latest information supplied by Algeria on customs fees and charges and measures
which appear to be internal taxes suggests that Algeria does not apply any other duties and
charges within the meaning of the Article II .1(b) of the GATT.  Accordingly, it is our
expectation that other duties and charges will be bound at zero across the board in Algeria'sgoods schedule.
Reply
Algeria does not apply any other import duties or charges apart from those mentioned in the
Memorandum.
Question 29
The fee for customs formalities is 2 per cent (page 49 of WT/ACC/DZA/14/Add.1).  This
fee is ostensibly applicable to imports and not to exports.  Is this correct?
There is also a customs fee that is applicable only to exports (page 49 of
WT/ACC/DZA/14/Add.1).  Is this fee applied at a rate of 4 per cent or 0.4 per cent ("4 per
thousand")?  This also is not clear.
Algeria has claimed that both the fee for customs formalities and the customs fee
applicable to exports satisfy the requirements Article VIII of the GATT (page 24 of
WT/ACC/DZA/2).  However, the cost of providing services rendered in each case does not
depend on the value of the goods, and it is difficult to see how the requirements of the
Article VIII of the GATT could be met by fees levied at any ad valorem  rate (other than zero).
Appropriate changes to the fee schedules eliminating the ad valorem  form of these levies will be
needed in order to achieve appropriate WTO conformity.
It is not clear what service is remunerated by warranty fees on gold and precious metals
(page 49 of WT/ACC/DZA/14/Add.1).  Could Algeri a please indicate the service that has been
rendered?  Are such "fees" imposed only on imports at the point of entry of gold and preciousmetals into Algeria?
Reply
It is correct that the fee for customs formalities of 2 per cent is only levied on import
declarations.
The customs fee is levied at a rate of 4 per mil (4 per cent).Before the end of 2003, Algeria will bring these fees into conformity with the relevant
provisions of Article VIII of the GATT.
As indicated above, warranty fees are indirect duties applicable both on imports and
internally.   Moreover, it was never stated that the warranty fees were in return for services rendered.WT/ACC/DZA/15/Add.1
Page 16
This interpretation seems to have been inferred fr om the fact that they were mentioned under the
heading IV.1(d) of the Memorandum  "Other duties  and charges, including any charges for services
rendered".
(e) Quantitative import restrictions, including prohibitions
Question 30
Algeria has claimed that it does not impose quantitative restrictions that do not have a
valid WTO justification (replies to questions 49 to 52 of WT/ACC/DZA/2).  Such a claim will,
however, need to be examined more closely, particularly in view of the very considerable
number of non-tariff measures that appear to be applied.
Algeria should submit a document identifying the code and description for all products
subject to non-tariff measures that describes, in relation to each product, all of the non-tariff
measures applicable, their rationale, the body or  bodies that apply them, their legislative basis
and their WTO justification.  The non-tariff meas ures should cover measures of all kinds other
than tariffs that apply to  imported goods including inter alia :  bans, quotas and other
quantitative restrictions;  any measures by means of which a trader may be denied foreign
currency to pay for imports;  price control measures, whether applicable at the border or
internally;  imposts (other than customs fees and charges) in relation to which domestic goods
are exempt or otherwise treated more favourably;  restrictions on internal sale, offering for sale,
purchase, transportation, distribution or use;  sanitary and phytosanitary measures;  otherapplicable technical regulations;  other conformity assessment procedures, including inspection,
testing and certification requirements;  any measures of the nature of import  licensing (within
the meaning of Article 1.1 of the Agreement on Import Licensing Procedures and footnote 1 to
that Article), and any import approval procedures;  exclusive or special rights or privileges to
engage in importation granted to any enterprise;  trade-related investment measures;  subsidiescontingent upon the use of domestic over im ported goods or contingent upon exportation.
Reply
The requested document is annexed.
Question 31
The following products are subject to export bans:
- Palm tree seedlings;
- breeding sheep and cattle;- national treasures of artistic, historic or archaeological value (page 49 of
WT/ACC/DZA/1;  reply to question 20 of document WT/ACC/DZA/4;  page 51
of document WT/ACC/DZA/14/Add.1).
Algeria has sought to justify these bans under paragraphs (b), (f) and (g) of Article XX
of the GATT.  We have no concerns to raise in relation to the justifications sought under
Article XX(f) of the GATT in relation to the ban on  the export of national treasures of artistic,
historic or archaeological value.  However, we do not see how restrictions on exportation of
palm tree seedlings and breeding sheep and cattle could be justified under the exceptions of
paragraphs (b) and (g) of Article XX of the GATT.WT/ACC/DZA/15/Add.1
Page 17
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 archaeological standpoint.
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.
(f) Import licensing procedures
Question 32
Algeria has indicated that the importation of products such as medicinal products,
hunting weapons, bookshop articles, animals, plants and products of animal or plant origin is
conditional on the issue of a prior authorization or technical certificate (reply to question 55 of
WT/ACC/DZA/2).  Closer examination may revea l a wider range of products subject to
procedures of a kind covered by the Agreement on Import Licensing Procedures.  For example,
commercial registration requirements, trader's card requirements, requirements associated
with the administration of the prior domiciliatio n of import transactions with approved banking
intermediaries may broaden the range of products covered by such procedures, possibly to
include all products.  There will need to be a de tailed assessment of the conformity of those
procedures with WTO rules.
The tabulated information on non-tariff measures we have requested could provide a
most useful starting point for this area of the examination.  It would be particularly helpful if
there were row entries for each product on an y prior authorization and/or certification
requirements applied.  These should be kept separate from the row entry for the product
concerned on the measures that thos e requirements are used to implement.
It would also be helpful if Algeria could indicate as appropriate in the tabulated
information on its non-tariff measures whether the import licensing and similar administrative
procedures (see footnote 1 to Article 1 of the Agreement on Import Licensing Procedures) are
automatic within the meaning of the provisions of Article 2 of the Agreement on Import
Licensing Procedures, or whether they are non-automatic.
Import licensing and similar administrative procedures that are not automatic within
the meaning of the provisions of Article 2 of the Agreement on Import Licensing Procedures
will need to conform in particular with the provisions of Article 3 of that Agreement (as well as
other WTO provisions).  The non-tariff measures that those procedures are used to implementwill also need to have valid  WTO justification and conf orm with relevant WTO rules.
Where non-tariff measures implemented by means of import licensing or similar
administrative procedures have no valid WTO justification and are required to be eliminated,WT/ACC/DZA/15/Add.1
Page 18
WTO conformity will also require the elimination of the import licensing and similar
administrative procedures used to implement those measures.
Reply
Annex 3 to document WT/ACC/1 "Information on import licensing procedures " is in course
of preparation and will be communicated in due course.
(h) Customs valuation
Question 33
We would like to see more progress in this area and we would appreciate details of the
steps being taken by Algeria to bring its customs valuation procedures into conformity with the
WTO rules.
Reply
Law No. 98.10 of 22 August 1998, amending and supplementing the Customs Code,  Law
No. 79.07 of 21 July 1979, introduced the provisions contained in the WTO Agreement on customs
valuation.  These provisions are contained in Articles 16 et seq of the Code.
A paper copy of the Customs Code will be available for consultation at the WTO Secretariat.
2. Export regulation
(a) Registration requirements for engaging in exporting
Question 34
Algeria requires exporters:
- To be registered in the commercial register;
- to arrange for the domiciliation of pro forma invoices drawn up on behalf of
foreign clients;
- mandatorily to repatriate the proceeds of  export transactions within a time limit
laid down by the Bank of Algeria, which is four months (page 49 ofWT/ACC/DZA/1;  page 13 of WT/ACC/DZA/2;  page 51 of
WT/ACC/DZA/14/Add.1).
The subject of commercial registration for exporters has been covered by our questions
on trading rights, and we expect that Algeria's replies to those questions will cover commercialregistration for exporters as well as commercial registration for importers.  It would be useful if
Algeria, in its replies, could however draw attention to any differences that may exist between
commercial registration formalities and requirements for exporters and those for importers.
Reply
Inclusion in the commercial register is a notorized act which certifies full legal capacity to
engage in trade and gives the right to freely exercise a commercial activity.  It concerns:
- Traders, whether natural or legal persons;
- commercial firms or enterprises of an industrial or commercial nature;WT/ACC/DZA/15/Add.1
Page 19
- 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 to the commercial activity,
the place where it is carried and the person.  They do not concern import or export.
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 oftrader, 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 priorverification by the local authority before they can be established (listed establishment).
Lastly, the following are requirements relating to the person concerned:- Natural persons must possess legal capacity and civil rights;  and
- legal persons must be established in accordance with the law: general partnership
(sociétiés en nom collectif (SNC); limited partnerships (sociétiés en commandite
simple); limited liability companies (SARL, EURL); joint-stock companies (SPA).
Question 35
Algeria has indicated that it is open to the idea of eliminating the obligation to repatriate
export proceeds, but has not proposed to take this step (reply to question 75 of
WT/ACC/DZA/2).  When will this obligation be eliminated?
Reply
The obligation to repatriate is still in effect.  There is no specific date for its elimination.
However, as already indicated in WT/ACC/DZA/2, the development and diversification of exports
and the performance of the Algerian economy are crucial to any consideration of easing this measure.
(e) Other measures
Question 36
The Ministry of Trade establishes minimum export prices for dates, wool and raw hides
and skins, ostensibly to prevent capital flight (page 49 of WT/ACC/DZA/1;  replies to
questions 71 to 74 of WT/ACC/DZA/2;  page 52 of WT/ACC/DZA/14/Add.1).  Such minimumexport prices are unjustifiable export restrictions  that will need to be  eliminated in order to
ensure conformity with Article XI of the GATT.  We are also unable to discern any relationship
between the risk of capital flight and refraining from making the exportation of such produce of
Algerian origin contingent on a certain minimum price being paid by foreign buyers.  When will
these minimum export prices be eliminated?WT/ACC/DZA/15/Add.1
Page 20
Reply
The minimum prices have been established 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 partof the revenue derived from their exports and keep it abroad.  This under-invoicing also has 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:
Minimum Reference Price for Exports of Dates
Price per KG/FOB Algerian ports Variety
FF €
DEGLET NOUR/DATE ON BRANCHES
In boxes
Branches of 500 gBranches of 01 KgBranches of 02 KgBranches of 03 Kg and 05 Kg
Deglet nour date covered by  two branches (1Kg)14.50
14.00
13.5013.0012.5010.502.21
2.13
2.061.981.911.60
DEGLET NOUR DATES NOT ON BRANCHESCommercial dates 1 KgCommercial dates 1 to 5 KgCommercial dates 6 to 12 KgPitted dates not exceeding 10 Kg9.50
9.009.00
free1.45
1.371.37
free
DEGLET NOUR PACKAGED250 gr trays
500 gr trays
1 Kg container10 Kg pack8.00
7.50
7.257.001.22
1.14
1.111.07
DEGLET FREZZA & NOIRE (black dates)10 to 15 Kg pack 6.00 0.91
DEGLET NOUR STANDARD1 to 12 Kg pack 7.00 1.07
COMMON DATESNatural Tafezouine (1 to 5 Kg)Natural Tafezouine (6 to 15 Kg)
Packaged Tafezouine (250 and 500grs)
Degla beida ( 10 to 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
Skins Minimum reference price (FOB-ex Algeria)
Sheep 35 FF/each
Cattle US$/2.20 Kg
Wool US$/1.60 KgWT/ACC/DZA/15/Add.1
Page 21
Minimum Export Reference Price for Exports of Ferrous and Non-Ferrous Scrap
Product Reference price
FERROUS SCRAP
- Solid scrap metal
- Compacted scrap
- Unsorted scrap
- Broken cast iron-T i n  s c r a pPrice in  US$/tonne (FOB/ Algerian ports)
66
70
68
6040
NON FERROUS SCRAP
- Unsorted and compacted aluminium- Aluminium filings- Aluminium ingots 2nd smelting
- Aluminium casing
- Copper filings- Unsorted and compacted copper
- Re-smelted copper
-B r a s s
-B r o n z e
- Radiators- Non-ferrous stainless steel- Zinc matte- Zinc powder- LeadPrice in FF/kg (FOB/ Algerian ports
6
77
9.5
8.208.20
11
6
6
43
4.50
22
3. Internal policies affecting foreign trade in goods
(c) Sanitary and phytosanitary measures
Question 37
With respect to Algerian veterinary regulations, in particular bans on importation and
exportation of animals and animal products and the systems of sanitary waivers.
Reply
Law No. 88.08 of 20 January 1988 on veterinary medicine and protection of animal health, is
wholly consistent with the Agreement on Sanitary and Phytosanitary Measures, (SPS Agreement)Article 2 in particular.
Specifically, Articles 75, 76 and 77 of this Law do not in any way prevent trade in animals
and animal products, but simply allow prior verification of the sanitary situation in the country which
wishes to export to Algeria.
This is not only in conformity with the principles laid down in the SPS Agreement, but is also
based on the International Animal Health Code of the International Office of Epizootics, of which
Algeria is a member.
This procedure also concerns exported animal products of Algerian origin, which must satisfy
all sanitary requirements to leave the national territory.
Consequently, any country with at least the same sanitary situation as Algeria can freely
export to Algeria, especially as the sanitary waiver for exports and imports is issued within 24 hoursand is in no way a barrier to trade.WT/ACC/DZA/15/Add.1
Page 22
It should be noted that Algeria imports, inter alia , poultry products, bovine meat and breeding
animals from many countries in the world and thus shows that the only restrictions to trade that may
arise are of a sanitary nature.
In this respect, Australia is a traditional supplier of bovine meat to the Algerian market and no
serious impediment to trade has been indicated by the Australian Veterinary Authority.
The Algerian veterinary regulations are thus whol ly in conformity with the rules laid down by
the WTO and especially the SPS Agreement.
(e) State-trading practices
Question 38
Algeria does not rule out the possibility of  submitting notifications on State-trading
enterprises under Article XVII of the GATT or Article VIII of the GATS (reply to question 87
of WT/ACC/DZA/2), even though there are no State-owned enterprises with exclusive or specialrights or privileges in relation to importation or exportation (reply to question 86 of
WT/ACC/DZA/2).  This might be taken as implying that, in the area of trade in goods, there
may be privately-owned State-trading enterprises that Algeria could notify.  This situation of
course might have changed since 1998.
We ask Algeria to formally notify all enterprises (whether or not State-owned, and
whether or not these constitute a monopoly) that have exclusive or special rights of privileges of
any kind in relation to importation or exportation, including by indicating the products in
relation to which they have such rights or privile ges and by describing the nature of those rights
and privileges.
On page 68 of WT/ACC/DZA/14/Add.1, it is explained that de facto trading monopolies
continue to exist but that they are being broken up.   It is also stated that:  "For the most part,
such monopolies are exercised by firms importing strategic foodstuffs and raw materials and
semi-manufactures required for the production pr ocess".  How is Algeria attempting to break
up such monopolies?  Could details be provided of the progress that has been made to date and
of Algeria's future plans for the activities and si tuation of these firms in relation to the markets
in which they have been operating?
Reply
The reply to this question will be dealt with in  the context of the questionnaire:  "Illustrative
List of Relationships between Governments and State-trading Enterprises and the kinds of activities
engaged in by these enterprises" (G/STR/4).
IV. POLICIES AFFECTING TRADE IN GOODS
4. Policies affecting trade in agricultural products
(b) Exports
Question 39
Considering that the members of the WTO have agreed to phase out all forms of export
subsidies, we do not consider it appropriat e for a country to accede with export subsidy
commitments.  We therefore urge Algeria to bind their export subsidies at zero.  There areWT/ACC/DZA/15/Add.1
Page 23
WTO consistent means available for pursuing economic diversification and reduced dependence
on hydrocarbons (e.g. green box and de minimis support).
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 WT/ACC/4 format will be
transmitted to the WTO Secretariat as soon as they are finalized.
(e) Internal agricultural policies
Question 40
What is the role of the Algerian Inter-Trade Cereals Board (OAIC) now that any
enterprise, public or private, is entitled to import the same products (page 68 of
WT/ACC/DZA/14/Add.1)? What is the relationship between the activities of the OAIC and
price controls maintained for products under HS Chapters 10 and 11?
Reply
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 of
domestic production and continuing to ensure payment in cash for their crops;
- financing and executing specific action programmes for the development of cereal
farming;
- on behalf of the State, implementing a nd managing the various price equalization,
stabilization and harmonization mechanisms for cereals and cereal products;
- ensuring the constitution and management of stocks;  and
- through its inter-trade bodies, defining and proposing the mechanisms for fixing the
price of cereals and cereal products.
The relationship between the Board and its clients is governed by market forces.  It therefore
does not intervene in price control and support mechanisms.
Question 41
It would be helpful if Algeria could make available a complete set of domestic support
tables which are consistent with WT/ACC/4 for examination by members of the Working Party.
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).WT/ACC/DZA/15/Add.1
Page 24
Its presentation, using the ACC/4 "domestic s upport" format, has been prepared and will be
transmitted to the WTO Secretariat as soon as it has been finalized.
Question 42
With regard to the proposed National Agricultural Development Plan (PNDA),
(pages 73-74 of WT/ACC/DZA/14/Add.1), Australia would suggest that many of the aims and
much of the implementation can be accommodated under the green box and would encourage
Algeria to tailor its programmes to make them consistent with Annex 2 criteria.  Could figures
be provided on the cost of the PNDA, ideally as part of WT/ACC/4 consistent domestic support
tables?
Reply
In the main, the subsidies are consistent with those envisaged in the Green Box and consistent
with the articles of Annex 2 to the Agreement on Agriculture (general services).  The costs of the
various types of subsidies are listed in WT/ACC/ 4, in particular the DS1 valuation (green box) and
account for 90 per cent of the cost of the PNDA. The calculation of domestic support is now finalized.
The reference period used for its calculation is the average of the past three years (1999-2001).
Its presentation, using the ACC/4 "domestic s upport" format, has been prepared and will be
transmitted to the WTO Secretariat as soon as it has been finalized.
VI. TRADE-RELATED SERVICES REGIME
1. General
(b) Posts and telecommunications
Question 43
Algerian legislation on telecommunications provides that the State has exclusive rights
over the radio frequency spectrum.  How is the assignment of frequencies to
telecommunications operators managed?
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, and ensures application of the conventions, regulations
and arrangements of the International Telecommunication Union;
etc. …".Article 13 of 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.WT/ACC/DZA/15/Add.1
Page 25
The management of the frequency spectrum in general 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, 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 Post and Telecommunications is assigned frequency bands, on
the same basis as other assignees (Ministry of Foreign Affairs, Ministry of Transport, Ministry of the
Interior) which it then assigns to various telecommunications operators and other radiocommunications users.
Question 44
Does Algerian telecommunications legislation incorporate the principles and rules laid
down in the reference document adopted by the member countries?
Reply
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 Organization
concerning the independence of regulatory bodies, safeguarding competition, interconnection of
telecommunications networks, 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;
- 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.WT/ACC/DZA/15/Add.1
Page 26
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 (state) operator is assured.  Pending the establishment of a list of interconnections by the
dominant operator(s), new operators can connect 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 pr ovides for the principle of a 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.
It should be noted that the universal service is managed by the Regulatory Authority.
Assignment to operators in the area covered by the universal service will be made transparent 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.WT/ACC/DZA/15/Add.1
Page 27
Concerning 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 impartiality;
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. 20.00.03 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.
Question 45
What is the status of progress in reform of the telecommunications sector, especially the
introduction of a new regulatory framework?
Reply
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 and
Telecommunications 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 Telecom"  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 operating
regimes:
- Licences (awarded by Executive Decree after adjudication following an open
invitation to tender);
- authorizations (issued by the Regulatory Authority);  and
- simple declarations (issued by the Regulatory Authority).WT/ACC/DZA/15/Add.1
Page 28
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 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 operate 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 licence for the
establishment and operation of a public GSM mobile telephone network and 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. 02.44 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;
- 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/Add.1
Page 29ANNEX
List of products subject to non-tariff measures
Product Measure Grounds Body responsible
for applicationLegal basis Justification under
WTO rules
Pharmaceutical products Prior
authorizationProtection of
public healthMinistry of Health
and Population/Department ofPharmacyLaw No. 85.05 of 16 February 1985 on the Protection and
Promotion of Health.Decree No. 92-284 of 6 July 1992 on registration ofpharmaceutical products for use in human medicine;Decree No. 24/MSP of 24 February 1997 setting out the
technical requirements for the sale of imported
pharmaceutical products for use in human medicine.Necessary to protect
human life or health(GATT, Article XX(b)
Medical supplies, medical materials,equipment and apparatusPrior
authorizationProtection of
public healthMinistry of Health
and Population/Department ofPharmacyLaw No. 85.05 of 16 February 1985 on the protection and
promotion of health.Necessary to protect
human life or health(GATT, Article XX(b)
Blood products, narcotics, vaccinesand radiopharmaceutical medicinesMonopoly of
importation andwholesale
distribution
reserved to stateenterprisesProtection of
public healthMinistry of Health
and PopulationDecree No. 29/MSP of 6 May 1996 setting out the list of
medicines imported and distributed wholesale reserved toState enterprises.Necessary to protect
human life or health(GATT, Article XX(b)
Second-hand clothing Certificate of
disinfectionProtection of
public healthMinistry of Health
and PopulationLaw No. 85.05 of 16 February 1985 on the Protection and
Promotion of Health.Necessary to protect
human life or health(GATT, Article XX(b)
Hunting weapons Prior
authorizationSecurity Ministry of the
Interior and Local
AuthoritiesArticle XXI of the
GATT (Security
exceptions)
Bookshop articles Prior
authorizationProtection of
public moralsMinistry of Culture Necessary to protect
public morals (GATT,
Article XX(a)WT/ACC/DZA/15/Add.1
Page 30Product Measure Grounds Body responsible
for applicationLegal basis Justification under
WTO rules
Animal products and products of
animal origin:
- Solipedal species: cattle, goats,
sheep, camels and pigs;  pets,
animals, including dogs and cats;
- domestic fowl (chickens, turkeys,
geese, ducks, guinea fowl, etc.)and rabbits and similar animals;
- exotic birds and animals, such as
canaries, parrots, pheasants,partridges, quail and zoo animals;
- bees, fish, crayfish, snails,
tortoises, frogs, snakes;
- rodents;
- game;
- treated or processed animal
products irrespective of theirdestination;Sanitary
inspection onentry and exitfrom the
national
territoryProtection of
human, animalor plant life orhealthMinistry of
AgricultureLaw No. 88.08 of 26 January 1988;
Executive Decree No. 93.286 of 23 November 1993.Necessary to protect
human, animal or plantlife or health (GATT,Article XX(b)
- meat, milk and milk products,
eggs, honey, wool, untreated skins,
semen for artificial insemination,
zygotes;
- intestines;
- fodder and feeds for animal
consumption.
All plants, plant products and plant
material.Sanitary
inspection on
entry and exit
from thenationalterritory.Phytosanitarycontrol.Protection of
human, animal
and plant life
and healthProtection ofhuman, animaland plant lifeand healthMinistry of
Agriculture
Ministry of
AgricultureLaw No. 88.08 of 26 January 1988;
Executive Decree No. 93.286 of 23 November 1993.
Law No. 88.08 of 26 January 1988;
Executive Decree No. 93.286 of 23 November 1993.Necessary to protect
human, animal or plant
life or health (GATT,
Article XX(b)
Toys imitating hand guns Importation
prohibitedSecurity Ministry of the
Interior and LocalAuthoritiesArticle XXI of the
GATT (Securityexceptions)WT/ACC/DZA/15/Add.1
Page 31Product Measure Grounds Body responsible
for applicationLegal basis Justification under
WTO rules
Toxic or particularly hazardous
products
- bleaching agents (in liquid or
powder form) containing chlorine;
- cleaning and/or disinfecting
agents, including cleaning productsfor enamel surfaces, floors,windows, ovens and toilets, carpet
shampoo and washing products
(washing and dishwashingpreparations).Prior
authorizationProtection of
public healthMinistry of Trade. Law No. 85.05 of 16 February 1985, on the Protection
and Promotion of Health, as amended and supplemented;Law No. 89.02 of 7 February 1989 on the general rules
for consumer protection;
Executive Decree No. 97.254 of 8 July 1997 on priorauthorization for the manufacture and import of toxic orparticularly hazardous products;Interministerial Decree of 28 December 1997 setting out
the list of toxic or particularly hazardous consumer
products and lists of chemicals whose use is prohibited orregulated for the manufacture of such products.Necessary to protect
human life or health(GATT, Article XX(b).
- cleaning solvents (stain removers,
etc.);
- wax polishes:  wax preparations
and turpentine or white spirit forpolishing furniture and floors;
- products used to polish, clean or
plate metal;
- antifungal products:  pesticides for
domestic use, includingweedkillers, insecticides, rat
poison, fungicides, moth-proofing;
- MatchesPrior
authorizationProtection of
public healthMinistry of Trade Law No. 85.05 of 16 February 1985, on the Protection
and Promotion of Health, as amended and supplemented;Law No. 89.02 of 7 February 1989 on the general rulesfor consumer protection;Executive Decree No. 97.254 of 8 July 1997 on prior
authorization for the manufacture and import of toxic or
particularly hazardous products;Interministerial Decree of 28 December 1997 setting outthe list of toxic or particularly hazardous consumerproducts and lists of chemicals whose use is prohibited or
regulated for the manufacture of such products.Necessary to protect
human life or health(GATT, Article XX(b)WT/ACC/DZA/15/Add.1
Page 32Product Measure Grounds Body responsible
for applicationLegal basis Justification under
WTO rules
Prior
authorizationProtection of
public healthMinistry of Trade Law No. 85.05 of 16 February 1985, on the Protection
and Promotion of Health, as amended and supplemented;Law No. 89.02 of 7 February 1989 on the general rulesfor consumer protection;
Executive Decree No. 97.254 of 8 July 1997 on prior
authorization for the manufacture and import of toxic orparticularly hazardous products;Interministerial Decree of 28 December 1997 setting outthe list of toxic or particularly hazardous consumer
products and lists of chemicals whose use is prohibited or
regulated for the manufacture of such products.Necessary to protect
human life or health(GATT, Article XX(b)
- Products containing methyl
alcohol;
- Paint and varnish strippers;
- 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(formaldehydes, acetaldehydes),epoxides and phenols;
- Anti-mist 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 andmodelling clay;
- Protective coatings, including
- paints, varnishes, woodworm
protection, polishes and water-
proofings; paints, varnishes,
woodworm protection, cigarettesand water-proofings;Prior Protection of
public healthMinistry of Trade. Law No. 85.05 of 16 February 1985, on the Protection
and Promotion of Health, as amended and supplemented;
Law No. 89.02 of 7 February 1989 on the general rules
for consumer protection;Executive Decree No. 97.254 of 8 July 1997 on priorauthorization for the manufacture and import of toxic orparticularly hazardous products;
Interministerial Decree of 28 December 1997 setting out
the list of toxic or particularly hazardous consumerproducts and lists of chemicals whose use is prohibited orregulated for the manufacture of such products.Necessary to protect
human life or health
(GATT, Article XX(b).WT/ACC/DZA/15/Add.1
Page 33Product Measure Grounds Body responsible
for applicationLegal basis Justification under
WTO rules
- Glues and adhesives;  foods
containing concentratedsweeteners;
- Products for children's education
and recreation such as toys,
children's drawing instruments,coloured materials (plastics), paperand boxes sold as toys, dyed cloth;
- Children's articles, especially
dummies, prams, pushchairs,
folding prams, fixed or foldingchildren's beds, carry-cots (cradlesand cots), nappy-changing tables,children's chairs, baby-walkers,playpens, feeding-bottles;
- Ceramic containers and other
plastic kitchen utensils;
- Batteries; and
- Thermometers.Prior
authorizationProtection of
healthMinistry of Trade. Law No. 85.05 of 16 February 1985, on the Protection
and Promotion of Health, as amended and supplemented;Law No. 89.02 of 7 February 1989 on the general rulesfor consumer protection;
Executive Decree No. 97.254 of 8 July 1997 on prior
authorization for the manufacture and import of toxic orparticularly hazardous products;Interministerial Decree of 28 December 1997 setting outthe list of toxic or particularly hazardous consumer
products and lists of chemicals whose use is prohibited or
regulated for the manufacture of such products.Necessary to protect
human life or health(GATT, Article XX(b).WT/ACC/DZA/15/Add.1
Page 34Product Measure Grounds Body responsible
for applicationLegal basis Justification under
WTO rules
Toxic or particularly hazardous
products:
- Cleaning solvents containing:
acetone, dimethyl ketone,(2-propanol);
- Toys, materials and other products
for children's education orrecreation containing:  boric acidand boric salts, orthoboric acid,boracic acid;
- Cleaning agents containing
hydrocyanic acid and its salts;
- Glues and adhesives containing
benzene;
- Toys and other products for
children's education or recreation
containing benzene;
- Toys and other products for
children's education or recreationcontaining ethyl bromoacetateProhibition on
importation andmanufactureProtection of
healthMinistry of Trade Law No. 85.05 of 16 February 1985, on the Protection
and Promotion of Health, as amended and supplemented;Law No. 89.02 of 7 February 1989 on the general rules
for consumer protection;
Executive Decree No. 97.254 of 8 July 1997 on priorauthorization for the manufacture and import of toxic orparticularly hazardous products;Interministerial Decree of 28 December 1997 setting out
the list of toxic or particularly hazardous consumer
products and lists of chemicals whose use is prohibited orregulated for the manufacture of such products.Protection of healthWT/ACC/DZA/15/Add.1
Page 35Product Measure Grounds Body responsible
for applicationLegal basis Justification under
WTO rules
- Cleaning agents and polishes
containing 1,2 dichloroethane,ethylene chloride;
- Cleaning agents containing
cyanogen chloride;
-  Cleaning agents containing:
monochloromethane, methyl
chloride;
- Cleaning agents containing
titanium chloride;
- Plastic articles containing
vinylidene chloride;
- Glues and adhesives containing
alkyl cyanocrylate;
- Aerosols and containers for
alcohols containing vinyl chlorideor chloroethylene;
- Toys, materials and other
children's educational productscontaining ethyl ether, ethylalcohol, diethyl oxide;Prohibition on
importation andmanufacture.Protection of
healthMinistry of Trade Law No. 85.05 of 16 February 1985, on the Protection
and Promotion of Health, as amended and supplemented;Law No. 89.02 of 7 February 1989 on the general rules
for consumer protection;
Executive Decree No. 97.254 of 8 July 1997 on priorauthorization for the manufacture and import of toxic orparticularly hazardous products;Interministerial Decree of 28 December 1997 setting out
the list of toxic or particularly hazardous consumer
products and lists of chemicals whose use is prohibited orregulated for the manufacture of such products.Necessary to protect
human life or health(GATT, Article XX(b)WT/ACC/DZA/15/Add.1
Page 36Product Measure Grounds Body responsible
for applicationLegal basis Justification under
WTO rules
- Fire-extinguishing liquids
containing aliphatic hydrocarbons;
- Toys, materials and other
children's educational products
made entirely of or impregnated
with cellulose nitrate;
- Toys, materials and other
children's educational productscontaining lead pigments;
- Matches and toys containing white
phosphorus;
- Cleaning solvents, diluents and
dyes containing toluene,methylbenzene;
- Any consumer product containing
the following chemicals:  carbon
tetrachloride, tetrachloromethane,arsenic and its compounds, aminodibenzyl, amino diphenyl, aminobiphenyl;   parbiphenylamine,   Prohibition on
importation andmanufacture.Protection of
healthMinistry of Trade Law No. 85.05 of 16 February 1985, on the Protection
and Promotion of Health, as amended and supplemented;Law No. 89.02 of 7 February 1989 on the general rulesfor consumer protection;
Executive Decree No. 97.254 of 8 July 1997 on prior
authorization for the manufacture and import of toxic orparticularly hazardous products;Interministerial Decree of 28 December 1997 setting outthe list of toxic or particularly hazardous consumer
products and lists of chemicals whose use is prohibited or
regulated for the manufacture of such products.Necessary to protect
human life or health(GATT, Article XX(b)
- Blue asbestos, benzidine, N, N-bis
(2-chloro ethyl-2), naphthylamine-
2, dichloromethyl ether (BCME),chloromethyl ether,betanaphthylamine (2-naphthylamine), lindane, captane,methyl parathion, DDT, bis 2
chloro ethyl sulphide or mustard
gas, 1-3 sulphonated propane,diethylstilboestrol, strychnine.Prohibition on
importation and
manufactureProtection of
healthMinistry of Trade Law No. 85.05 of 16 February 1985, on the Protection
and Promotion of Health, as amended and supplemented;
Law No. 89.02 of 7 February 1989 on the general rulesfor consumer protection;Executive Decree No. 97.254 of 8 July 1997 on priorauthorization for the manufacture and import of toxic orparticularly hazardous products;
Interministerial Decree of 28 December 1997 setting out
the list of toxic or particularly hazardous consumerproducts and lists of chemicals whose use is prohibited orregulated for the manufacture of such products.Necessary to protect
human life or health
(GATT, Article XX(b)
Measuring instruments to measuresize.Approval of
conformity withthe approved
model in
AlgeriaThe legal
metrologyorganizationLaw No. 90.18 of 31 July 1990 on the national legal
metrology system;Executive Decree No. 91.538 of 25 December 1991 on
control and verification of conformity of measuring
instruments.WT/ACC/DZA/15/Add.1
Page 37Product Measure Grounds Body responsible
for applicationLegal basis Justification under
WTO rules
Ordinary bread-making flour,
ordinary bread, improved bread,pasteurized milk in packs, commonwheat, drinking water and water for
agricultural use.  Regular petrol,
premium petrol, diesel, heating oil,domestic natural gas, LPG fuel inbulk, propane, butane gas, electricityand medicines.Regulated prices
Regulated pricesSocial
measureMonopolyGovernment Order No. 95.06 of 25 January  1995 on competition Article III of the GATT
"National treatment oninternal taxation andregulation"
__________