RESTRICTED
WORLD TRADE WT/ACC/DZA/2
14July1997
ORGANIZATION(97-2929)
Original: French Working Party ontheAccession ofAlgeria
ACCESSION OFALGERIA
Questions andReplies totheMemorandum
ontheForeign Trade Regime
(Document WT/ACC/DZA/1)
TheGovernment ofthePeople 'sDemocratic Republic ofAlgeria hasapplied foraccession
totheGeneral Agreement onTariffs andTrade onthebasisofArticle XXXIII oftheGeneral Agreement.
Having regard tothedecision adopted bytheGeneral Council on31January 1995, theWorking Party
ontheAccession ofAlgeria toGATT 1947 hasbeentransformed intoaWTO Accession Working
Party. Theterms ofreference oftheWorking Party arereproduced indocument WT/L/23. Indocument
WT/ACC/DZA/1 Members wereinvited tosubmit questions inwriting concerning theforeign-trade
regimeofAlgeria.ThequestionssubmittedbyMembersandtherepliestheretoprovidedbytheAlgerian
authorities arereproduced below.
Delegations wishing toraiseadditional questions concerning theforeign-trade regime ofAlgeria
caninform theAlgerian delegation (with acopy totheSecretariat) ofsuchquestions inadvance of
thenextmeeting oftheWorking Party, sothatconsidered replies canbemade available byAlgeria
toMembers atthetimeoftheWorking Party meeting.WT/ACC/DZA/2
Page2
TABLE OFCONTENTS
Page Question
No.
I. GENERAL .............................. 5 1-2
II. ECONOMY, ECONOMIC POLICIES AND
FOREIGN TRADE ......................... 6
1. Economy .......................... 6
(a) General description ............... 6 3
2. Economic policies ..................... 6
(a) Main directions andgoals ofeconomic policy 6 4-8
(b) Monetary andfiscal policies .........10 9-13
(c) Foreign exchange regime and
liberalization offoreign trade .........12 14-16
(d) Investment promotion policies ........13 17-20
(e) Price andcompetition policies ........15 21-24
III. FRAMEWORK FOR MAKING AND ENFORCING
POLICIES AFFECTING FOREIGN TRADE ........17
1. Powers ofexecutive, legislative
andjudicial branches ofgovernment .........17 25-27
2. Government entities responsible for
theelaboration andimplementation
offoreign trade policy ..................19 28
4. Anylegislative programmes orplans
tomodify theregulatory regime ............19
(a) Theregime applicable toimport and
export operations .....................19 29-30
(d) Supervision offoreign trade ..............20 31-32
5. Laws andlegalacts....................20
(a) Listoflawsandlegalactsregulating
theactivity ofthecustoms authorities ....20 33-34
(b) Laws andlegalactsrelating to:.......21
(a) non-tariff regulation ofimports ...21 35-37
IV. POLICIES AFFECTING TRADE INGOODS .......22
1. Import regulation .....................22
(b) Characteristics ofthenational customs tariff 22 38-42WT/ACC/DZA/2
Page3
Page Question
No.
(c) Tariff quotas, tariff exemptions ....... 24 43-44
(d) Other duties andcharges, including
charges forservices rendered ......... 27 45-48
(e) Quantitative import restrictions,
including prohibitions, quotas and
licensing systems ................ 28 49-52
(f) Import licensing procedures .......... 28 53-54
(g) Other border measures ............. 29 55-57
(h) Customs valuation ................ 30 58
(j) Preshipment inspection ............. 30 59-60
(k) Application ofinternal taxes onimports .. 31 61
(l) Rules oforigin .................. 31 62
(m) Anti-dumping regime .............. 32 66
(n) Countervailing dutyregime .......... 33 63-65
(o) Safeguard regime ................ 34 67-68
2. Export regulation ..................... 34
(b) Customs tariff nomenclature, types of
duties, dutyrates, weighted averages of
rates ........................ 34 69
(c) Quantitative export restrictions, including
prohibitions, quotas andlicensing systems . 34 70
(e) Other measures ................. 35 71-75
(f) Export financing, subsidy andpromotion
policies ...................... 37 76-77
(h) Import dutydrawback schemes ........ 38 78
3. Internal policies affecting foreign trade
ingoods ........................... 38
(a) Industrial policy ................. 38 79
(b) Quality control policy, technical
regulations andstandards ........... 41 80-81
(c) Sanitary andphytosanitary measures .... 42 82-84
(d) Trade-related investment measures ..... 42 85
(e) State-trading practices ............. 43 86-87
(f) Freezones .................... 43 88
(j) Government-mandated counter-trade and
barter ........................ 44 89-90
(l) Government procurement practices ..... 45 91-104
4. Policies affecting trade inagricultural
products ........................... 52
(a) Imports ...................... 52 105-107
(b) Exports ...................... 54 108-110
(e) Internal agricultural policies ......... 55 111-112WT/ACC/DZA/2
Page4
Page Question
No.
5. Policies affecting foreign trade inother
important sectors ..................... 56
(b) Fishandfisheries ................ 56 113-114
V. TRADE-RELATED INTELLECTUAL PROPERTY
REGIME ............................... 57
1. General ........................... 57 115-116
2. Basic standards ofprotection .............. 62
(a) Copyright andrelated rights ......... 62 117-121
(b) Trademarks, including service marks ... 65 122-124
(c) Geographical indications, including
appellations oforigin ............. 67 125-127
(d) Industrial designs andmodels ........ 68 128-130
(e) Patents ...................... 71 131-132
(f) Protection ofplant varieties ......... 73 133-134
(g) Layout designs ofintegrated circuits .... 74 135
(h) Requirements concerning undisclosed information,
including trade secrets andtestdata .... 74 136-138
4. Means ofenforcing observance ofrights ...... 75 139-142
VI. TRADE-RELATED SERVICES REGIME .......... 80
1. General ........................... 80
Transport sector ...................... 80 143-144
Telecommunications ................... 82 145-149
Tourism ........................... 84 150-151
Financial services/banking operations ........ 85 152-158
Insurance .......................... 89 159-162
Legal services ....................... 91 163
Business services ..................... 91 164-166
2. Policies affecting trade inservices .......... 94 167-172
3. Market access andnational treatment ......... 96 173
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES ......... 97
(b) Trade andtariff conventions .............. 97 174-175WT/ACC/DZA/2
Page5
I. GENERAL
Question 1
Please notify usofthelegislation relating tothememorandum inalanguage oftheWTO.
Reply
Themainlegislative andregulatory textsreferred tointhememorandum willbecommunicated
totheWTO Secretariat.
Question 2
Thepolicy ofremoval oftrade barriers will,according tothememorandum, becontinued
"with theprogressive reductions intariff protection being correlated withtheimprovements in
theperformance ofthedomestic manufacturers" (page 1,WT/ACC/DZA/1). Could theAlgerian
authorities explain thecriteria adopted forevaluating these "improvements" and"correlating"
them withtariff reductions?
Reply
Theliberalization ofAlgerian foreign trade hasbeenextremely swift. Ithasbeencarried out
under thestructural adjustment programme negotiated withtheInternational Monetary Fundandstrictly
applied since April 1994. Under thisliberalization, allnon-tariff barriers havedisappeared asaresult
ofimmediate measures.
Theresult ofthis,overandabove thenewattitudes noticeable inbusinesses andtheAlgerian
market, hasbeeninparticular toshow upthemajor inadequacies ofnational tariff policy.
Asinallcountries withmanaged economies, non-tariff tradebarriers areofdecisive importance,
whereas forhighly understandable reasons theroleofcustoms duties canonlybesecondary (even when
ratesarehighinthemselves).
Thegradual bringing oforder intotariffpolicy istherefore apriority task,thecurrent problem
facing theAlgerian economic authorities being increasingly toestablish aproper relationship between
trade-policy goals inthedifferent branches ofagricultural and/or industrial production.
Apreliminarystudyusingstandardindicatorssuchascoefficientsofnominalprotection,effective
protection oreffective incentive hasalready shown theeffects oftariff protection onproducers.
Forcertainactivitiesitisplannedtotaketheanalysisforwardtoasecondphaseatmicroeconomic
level, bycomparing global indicators (protection coefficients) withindicators ofcomparative advantage
(domestic-resource costefficiency oreconomic return oncapital) andcompetitiveness indicators (cost
permonetary unitofproduction).
Thissecond phase isaimed atacquisition oftheskills necessary forevaluating tariff policies
andshould supply thedataneeded toshedgreater lightonthefiscal roleofcustoms duty.WT/ACC/DZA/2
Page6
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. Economy
(a) General description
Question 3
Please supply further details onhow Algeria intends toachieve thefirst andthird
medium-term objectives (increased production, reduced current-account deficit).
Reply
Theobjectivesoftheeconomicprogrammesupportedbyafinancingfacilityagreementconcluded
withtheIMFfortheperiod 1995-98 arepartofamedium-term plantorevive growth. Reform of
themechanisms forregulating andorganizing theeconomy under thestabilization programme is
practically complete. Considerable progress hasbeenmade inreforming thepricing system andin
liberalizing foreign tradeandtheexchange regime, aswellasinrestructuring theeconomy, aprocess
which includes theprivatization ofpublic enterprises incompetitive sectors.
Themedium-term programme isaimed atpursuing anddeveloping theefforts already made
tostabilize themacroeconomic environment andcarryoutstructural reforms. Non-hydrocarbon growth
willbebased ontheexploitation ofexisting potential intheagricultural, industrial andbuilding and
public works sectors butalsoontheproductivity gains expected from thecurrent reforms.
Thereturn toequilibrium oncurrent account willbesupported byanexport-promotion policy
based onincreasing thecomparative advantages andperformance criteria (cost, quality) ofnational
manufactures. Thisexport-promotion policy isbased, initsturn, onthecurrent restructuring of
production sectors (agriculture, industry), andonencouraging thedevelopment ofsmall andmedium
enterprises (SME).
Regarding thedetail ofthesectoral policies which willbefollowed inorder toachieve the
objectives ofboosting growth andbalancing thecurrent account, thereply toquestion No.79supplies
theinformation needed toassess theconduct ofthemedium-term programme, atleastfortheindustrial
sector.
2. Economic policies
(a) Main directions andgoals ofeconomic policy
Question 4
Indicate thenumber oflocal andnational public enterprises.
Reply
Number oflocalpublic enterprises: 1209
Number ofnational enterprises: 447
Thenumber ofnational andlocalpublic enterprises willfallinthecoming years asaresult
oftheprivatization programme.WT/ACC/DZA/2
Page7
Question 5
Isforeign participation intheprivatization programme allowed? Ifso,please supply a
listofthesectors from which suchparticipation isexcluded. What aretheconditions where these
exist?
Reply
Theprivatization programme contained intheOrder privatizing public enterprises, particularly
Article 2,doesnotdiscriminate against foreign capital.
Thearrangements forforeign participation aresetoutintheOrder of5October 1993 on
investment promotion. Thisorder:
- Guarantees thetransfer ofinvested capital, aswellasofallearnings, dividends and
interest produced;
- regulates thegranting ofincentives onthebasis ofasimple declaration ofinvestment
andofapplication fortherelevant advantages;
- treats foreign investors inexactly thesame wayasdomestic investors;
- establishes thebasic rules forcompensation intheevent ofexpropriation;
- allows appeal tointernational arbitration intheevent ofdisputes.
Apart from aerial-navigation andair-traffic control, railtransport andmaritime pilotage and
dockage, allactivities areopentoforeign participation.
Questions 6and7
What aretheplans fordisengagement bytheState? Inwhich sectors willtheState remain
active?
Please indicate thestages whereby theState hasalmost totally withdrawn from the
management ofpublic enterprises. How arethemanagers ofenterprises appointed?
Reply
Statewithdrawal fromthemanagement ofenterprises isincluded inthestrategic approach aimed
atanin-depth change intheorganization andsystem ofmanagement oftheeconomy, withaviewto
switching from amanaged economy toaneconomy based onthefreeplayofmarket forces, opento
theoutside andintegrated intotheworld market.
After aslowstart, theprogramme ofchange putonastrong spurt after1994.
Thefirstphase ofthechange consisted essentially inrelieving theState ofresponsibility for
themanagement ofpublic enterprises bygiving thelatter fulllegalandfinancial autonomy. Afeature
ofthisfirstphase wastheprogressive introduction ofregulatory mechanisms relating toprices, taxation,
theexchange andcredit regime, foreign tradeandtheallocation ofresources, thusenabling thegeneral
functioning oftheeconomy tobeorganised according tomarket logic.WT/ACC/DZA/2
Page8
Thisprocess hasitsjuridical andlegal anchor-point inthe1988 lawsontheautonomy of
enterprises,thelawonmoneyandcredit,thelawoncommercial-capitalmanagementandtheCommercial
Code.
Ingeneral,Algerianpublicenterprisesarenowmanagedonthesamebasisasprivateenterprises.
They operate inaccordance withprivate lawandaresubject totheordinary rulesoftheCommercial
Code. They allhavethestatus ofjoint-stock companies; theirmanagement iscurrently inthehands
ofholding companies.
Themanagers ofthese enterprises areappointed byboards ofdirectors onthebasis ofpublic
tender; theState takes nodirect partintheprocess ofselecting managers.
Thesecond phase ofState withdrawal wasessentially initiated bytheprivatization Order.
Article 2oftheOrder identifies thefollowing sectors which maybeprivatized immediately:
- Hotels andtourism;
- trade anddistribution;
- mechanical, electrical andelectronic engineering;
- wood andwood products;
- paper;
- chemicals;
- plastics;
- leather;
- roadtransport;
- insurance;
- portandairport services;
- building design andconstruction.
Ingeneral, theStateisendeavouring towithdraw immediately fromcompetitive sectors, while
retaining atemporary presence inactivities which arenotyetadequately regulated bymarket forces.
Itaimstorevert toitsnatural roleofregulator andorganiser oftheprocess ofeconomic andsocial
change.
Thechange process isdesigned tobring about anAlgerian economy inwhich private initiative
willpredominate andwhere theStatewillmaintain apresence onlyinmining activities, public-service
activities andactivities coming under theheading ofnatural monopolies.
TheState'scontinued presence intheseactivities willnot,however, beofamonopolistic nature.
Investment inthemwillremain openbothtothenational private sector andtotheforeign private sectors.
Algerian public enterprises arecurrently managed onthesamebasisasprivate enterprises. Theyoperate
inaccordance withprivate lawandaresubject totheordinary rules oftheCommercial Code.WT/ACC/DZA/2
Page9
Question 8
What stage hasbeenreached intheprivatization programme whose implementation was
planned for1996 (page 9,WT/ACC/DZA/1)?
Reply
Theprivatization programme whose implementation started in1996 hasbeencarried outas
follows (situation at31December 1996):
- Local enterprises sold: nine;
- localenterprises toberunasconcessions: ten;
- national public enterprises privatised: five;
- hotel structures privatised: four;
- localenterprises wound up:242.
Assessment oftheprivatization process started in1996 reveals:
- Alowrateoftenders compared withthenumber ofinvitations; thissituation is
explainedparticularlybytheinadequacyofdomesticsavingsandtheabsenceofpayment
facilities orbankcredits from current legislation;
- thecumbersome nature oftheprocedures, which tended toputtenderers off.
Amendments tothe1995 privatization Order haveaccordingly beenproposed.
These amendments consist ofadditions toorclarifications oftheexisting provisions, designed
toadapt them totherealstateofthepublic economic sector, tonational-savings capacity andtothe
interests ofpotential investors andoftheeconomic andsocial partners.
Themain goals ofthese amendments areto:
- Cutthetimes needed forprivatisation operations;
- reduce theburden ofcertain obligations placed onbuyers byLawNo.95.22 of
26August 1995 andrelating tothemodernization andrehabilitation ofprivatized
enterprises andthemaintenance ofemployment andactivity;
- permit andpromote theacquisition ofshares bythepopulation wherever possible, in
order toboost national savings;
- facilitate thetakeover ofassets bytheemployees ofprivatized enterprises;
- introduce thepossibility ofdeferred payments bothforemployees andforbuyers.WT/ACC/DZA/2
Page10
(b) Monetary andfiscal policies
Question 9
When isitplanned tointroduce thetotal convertibility ofthedinar (page 9,
WT/ACC/DZA/1)?
Reply
Total convertibility, understood astotalconvertibility ofthedinar forbothcurrent andcapital
transactions, istheoutcome oftheconclusion ofthereform process initiated bythepublic authorities.
Current convertibility hasalready beenintroduced forallitems onthecurrent balance, apart
from expenditure forforeign travel, forwhich there willbepartial convertibility in1997.
Capital transactions havealready beenmade convertible fornon-residents asregards capital
invested inAlgeria andtherelated income.
Funds heldbyresidents andnon-residents inforeign currency accounts canbetransferred freely.
Theconvertibility ofcapital transactions forresidents implies alevelofeconomic development
suchthatAlgeria would havesurplus capital available forpossible investment intherestoftheworld.
However, theextension ofconvertibility tocapital transactions forresidents isnotontheagenda
atpresent.
Question 10
With aview tothetotal convertibility ofthedinar, rules fortheprudential monitoring
ofexchange positions aretobeintroduced (page 10,WT/ACC/DZA/1). What criteria willbe
adopted fordefining them?
Reply
Theflexibility introduced intothedetermination oftheexchange rate,combined withthe
increased foreign-exchange resources made available tothebanks, iscontributing totheestablishment
ofaninterbank foreign exchange market.
Inthefirststage ofdeveloping thismarket, concerns about prudential monitoring limitthe
exchange positions (allcurrencies) which thebanks areauthorized toadopt tofourtimes thevolume
oftheirequity.
Question 11
DotheAlgerian authorities intend toinvoke theirbalance-of-payments difficulties inorder
tojustify tariff protection?
Reply
Giventhepresentbalance-of-paymentssituation,therearenomajordifficultiesjustifyingrecourse
totariff protection.WT/ACC/DZA/2
Page11
Itmust beremembered, however, thattheAlgerian economy isstillover-dependent onthe
hydrocarbons sector (95percentofthecountry 'sforeign-currency reserves). Thelikely trends of
thebalance ofpayments havebeenworked outonthebasis ofreasonable price-fluctuation scenarios
fortheinternational oilmarket.
Acollapse inthese prices would clearly haveaserious effect onthebalance ofpayments.
Insuchacase, safeguard measures would beapplied inaccordance withWTO rules, inparticular,
GATT 1994 Article XVIII.
Question 12
Wenotethatasmall number ofagricultural products (milk, semolina andflour) remain
uncovered bythefree-price regime (page 13,WT/ACC/DZA/1). Could Algeria provide details
onwhythese products arenotcovered bythefree-price regime? Howaretheprices determined?
How doesthissupport relate totheprice support policies which areapplied on"only milk"?
Algeria notes thatthepractice ofsubsidization hasbeen sharply curtailed andthesystem has
beengradually dismantled andthatin1996 onlypasteurized milkisstillsubsidized toalimited
extent. Does Algeria foresee removing thisdomestic subsidy support inthefuture?
Reply
Agricultural products suchasmilk, semolina andflourfelloutside thefree-price regime because
theyarepopular basic foodstuffs.
Theprogramme forprogressive price liberalization tookthedate1January 1997 forending
theregulated-price regime particularly forpasteurized milk, since semolina andflour prices were
liberalized asfrom 1January 1996.
Theprices oftheseproducts werefixed bydecree atbelow theircost. Under thecurrent rules,
theimporting enterprises concerned submit asubsidy request eachmonth showing theregulated price,
thedetermined equilibrium price, thequantities marketed andthetotalamount ofprice support for
theperiod considered.
Theequilibrium price combines the"material" costwiththerealcost(theimport price -at
theexchange rateforthecustoms clearance period inquestion -oftherawmaterial andtheprevailing
duties andtaxes), thestandard operating costandthefixedproduction margin. Thestandard operating
costisdetermined onthebasisofthedataforacomplete financial year(e.g.balance sheet andimport
vouchers relating tothecharges foreachkindofproduct).
Furthermore, thelevel ofoperating charges isdetermined onastandard basis, which is
periodically adjusted whenever newdataorcostincreases arerecorded.
Theprice-support policy wasidentical forthethreeproducts mentioned inthattheyallreceived
budgetary subsidies.
Algeria plans tospeed upthetotalliberalisation ofallprices before 1998 under itsIMF
obligations. Domestic budgetary support forimports willtherefore beabolished.WT/ACC/DZA/2
Page12
Question 13
Algeria indicates thatfreepricing isthegeneral ruleandthedetermination ofprices by
theState isanexception applicable onlyinunusual situations orspecial circumstances. What
doesAlgeria consider anunusual situation orspecial circumstance? CanAlgeria confirm that
theonlyagricultural products subject todetermination ofprices bytheState arethose listed above?
Reply
Byunusual situation orspecial circumstance Algeria means situations ofserious crisis resulting
insevere market disturbance, forexample drought, natural disasters orsudden andsubstantial increases
inprice levels ontheinternational market forimported basic agricultural inputs.
Inthistypeofsituation andasanexception, theStatemaydetermine theprice ofanyproduct
regarded asastrategic element insupplying thepopulation, particularly widely consumed products
(food, medicines).
(c) Foreign-exchange regime andliberalization offoreign trade
Question 14
Itisnoted inthesixth paragraph thattheproceeds from exports ofallproducts other
thanoil,gasandoresarebeing repatriated directly ontheinterbank exchange market. Isthis
compulsory? Isrepatriation acondition fortheproceeds from oil,gasandoreaswell?
Reply
Theexchange rulesoblige allexporters torepatriate theproceeds fromtheirexports regardless
ofthenature oftheproduct exported (oil,gas,oresorother products) within amaximum period of
fourmonths which maybeextended bytheBank ofAlgeria.
Question 15
Does Algeria plantorespect thecommitments under Article VIIIoftheAgreement on
theInternational Monetary Fund infuture?
Reply
TheeconomicstabilizationandstructuraladjustmentprogrammesconcludedwiththeInternational
Monetary Fund in1994 and1995 have considerably strengthened Algeria 'scooperation withthat
institution.
Algeria 'saimis,infact,torespect theArticle VIIIcommitments.
Under theaction programme nowbeing implemented, thedatecould wellbebrought forward
to1997. Itshould benoted herethatforeign-travel expenses, theonlyitemnotyetmade convertible,
willbecome partly convertible (with aceiling foreachtraveller) in1997.
Question 16
Please describe indetail theregime governing capital transactions between Algeria and
abroad applicable toforeigners andAlgerian residents respectively?WT/ACC/DZA/2
Page13
Reply
Capital transactions fornon-residents areunequivocally convertible; transferability ofinvested
capital andrelated proceeds isguaranteed bytwosetsoflegislation andbytheaccession ofAlgeria
tointernational conventions.
Non-resident capital canbefreely invested inAlgeria.
Transfer procedures aregoverned byrecognized practices. Inanycase, thelawlaysdown
amaximum of60daysforcapital transfers inrespect ofanydividends andrealizations.
Themovement offunds heldbyprivate parties andlegalpersons incurrency accounts istotally
unimpeded bothforinflows andforoutflows.
(d) Investment promotion policies
Question 17
Canyouconfirm thatthere isnosector ofyour economy inwhich theAlgerian investor
possesses greater rights toinvest thanaforeign investor?
Reply
Article 38,TitleV,oftheInvestment Code states: "Foreign natural andlegalpersons shall
receive treatment identical withthatgiven toAlgerian natural orlegalpersons, bearing inmind the
obligations relating toinvestment."
Accordingly, national investors arenotbetter placed thanforeign investors. Thisalsoapplies
toactivities classified asbeing ofapriority nature, which automatically enjoy theadvantages ofthe
legislation onpriority activities (Article 42ofTitleVI).
Question 18
Canyouspecify theadministrative steps which aforeign investor must taketotransfer
hiscapital orincome? How longwilltheprocess take?
Reply
Investments made withcapital inflows using freely available foreign exchange regularly quoted
bytheCentral Bank ofAlgeria, which dulycertifies thattheexchange hasbeenimported, enjoy the
guarantee thatinvested capital andtheresulting income canbetransferred.
Thisguarantee alsocovers therealnetproceeds ofthetransfer orrealization, eveniftheamount
exceeds theoriginal capital invested.
Transfer requests bytheinvestor aredealtwithinaperiod notexceeding 60daysinaccordance
withArticle 12ofTitleIoftheInvestment Code.
TransferproceduresaregovernedbyBankofAlgeriaRegulationNo.90.03of8September1990
laying down theconditions forcapital transfer inAlgeria tofinance economic activities andforthe
repatriation ofsuchcapital andtheincome therefrom.WT/ACC/DZA/2
Page14
Transfer requests aremade through thepaying bankandmustbeaccompanied bythefollowing
documents:
(i) Transfer ofdividends:
- Balancesheetandprofitandlossaccount(properlycertifiedoperatingandprofit
andlossaccount);
- minutes ofthegeneral meeting.
(ii) Transfer ofcapital:
- Transfer contract orrealization statement oranyother similar document.
Anytransfer request mustbeaccompanied byanadequate discharge. Royalties, interest and
salaries aretransferred according totherules inforce.
Question 19
Please describe thebasic rules forcompensation intheevent ofexpropriation?
Reply
Theguarantees provided forinvestments bytheLegislative Decree onInvestment Promotion,
orInvestment Code, concern cases which maybesubject toadministrative requisition.
Investments made (byforeign investors) canbethesubject ofadministrative requisition only
inthecases laiddown inexisting legislation.
Requisition confers entitlement tojustcompensation aslaiddown inArticle 40,TitleV,of
theInvestment Code.
Settlement ofthedispute between theAlgerian Stateandtheforeign investor issubject tothe
arbitration ofthecompetent courts except inthecaseofbilateral ormultilateral conventions concluded
bytheAlgerian Stateinrelation toconciliation andarbitration, orofaspecific agreement containing
anarbitration clause orallowing theparties toagree onanadhoccompromise inaccordance with
Article 41ofTitleV.
ItshouldbementionedthatAlgeriahassignedtheSeoul,WashingtonandNewYorkmultilateral
andbilateral investment-protection conventions.
Intheevent ofexpropriation, LawNo.91-11 of27April 1991 establishing therules on
compensation forreasons ofpublic utility provides thatprior equitable compensation isaright in
accordance withArticle 20oftheConstitution.
Expropriation isanexceptional procedure employed onlywhere other means havebeentried
andfound wanting. Thedeclaration ofpublic utility ispreceded byanenquiry aimed atestablishing
thegenuineness ofthealleged public utility.
Theamount ofcompensation must cover thewhole ofthedamage caused byexpropriation.
Itisfixed inaccordance withtherealvalue ofthegoods asshown bytheirnature orsubstance and
theiractual usebytheowners orother holders ofrealrights orbyindustrial andsmall-scale traders.WT/ACC/DZA/2
Page15
Theamount ofthecompensation tobeallocated totheinterested parties isdeposited withtheproper
body.
Anexpropriation procedure canbestarted onlyifthecredits needed forprior compensation
oftheexpropriated goods andrights areavailable.
Anyinterested party mayenter anappeal against thedeclaration ofpublic utility before the
appropriate court.
Anyexpropriation carried outinviolation ofthecases andconditions laiddown bylawisnull
andvoidandconstitutes anabuse which maygiverisetocompensation viathecourts, apart fromany
other sanctions required byexisting legislation.
Question 20
Canyouconfirm thatdirect foreign investment ispossible initstwoforms:
- Legally established subsidiary;
- branch?
Reply
TheLegislative Decree oninvestment promotion doesnotlaydown anyspecial provisions
contrary todirect foreign investment, inanylegal form whatsoever, inoneormore sectors ofan
industry, except where oneoftheeconomic activities fortheproduction ofgoods orservices bythat
industry isexplicitly reserved byalegislative text(Article I,TitleI).
Theactivities explicitly reserved bylegislation (Water Code, Transport Code, Mine Code etc.),
excluding thetraditional Statemonopolies (tobacco andmatches, alcohol, gunpowder andexplosives),
arebecoming increasingly opentoprivate investment.
(e) Price andcompetition policies
Question 21
PleasesupplyuswithacompleteHS6-digitlist(includingatariffdescription)ofallproducts
stillsubject toprice control.
Reply
Thelistofproducts theprices ofwhich arefixed andcontrolled for1997 isasfollows:
- 27.10.00.13 "normal" grade petrol
- 27.10.00.12 "super" grade petrol
- 27.11.12.20 LPGfuel
- 27.11.12.20 LPGbulk
- 27.10.00.41 diesel
- 27.10.00.44 fueloil
- 27.11.13.20 butane
- 27.11.12.20 propane
- 27.16.00.00 electricityWT/ACC/DZA/2
Page16
- 27.11.11.00 domestic natural gas
- 11.01.00.00 common flour
- 19.05.10.00 ordinary andimproved bread
- 04.01.20.10 packaged pasteurized milk
- 22.01.90.00 drinking water
- 10.01.10.90 durum wheat
- 10.01.90.90 common wheat
Question 22
Please explain how"controlled prices" aredetermined?
Reply
When thepriceofagoodorservice issubject tothefixed-price regime, prices aredetermined
onthebasis ofproposals forreviewing orupdating prices ortariffs submitted bytheenterprise(s)
concerned tothetrade administration.
Theproposals areaccompanied byremarks anddetailed notes andbytheenterprise 'ssummary
accounts andother useful information justifying therequest.
Theproposals arediscussed withtheadministration withaviewtoembodying themeasures
inaregulation.
Question 23
Please supply details about allprice restrictions likely tobemaintained until theendof
1998.
Reply
Theprice restrictions likely tobemaintained untiltheendof1998concern theproducts listed
inthereply toquestion No.22.However, thislistisliable tobereduced in1998 inthelightofthe
stateofthemarket andcompetition.
Order No.95-06 of15January 1995 oncompetition setouttheprinciple ofprice freedom
except forcertain products which theState considers tobestrategic andtheprice ofwhich maybe
fixed. Thisexception applies onlyinserious situations (severe andlasting disturbance ofthemarket,
natural disasters etc.).
Question 24
Pleasesupplyalldetailsconcerningthesubsidyplanforpasteurizedmilk.Whowillbenefit?
Reply
Thepasteurized milksubsidy wasabolished on1January 1997 inaccordance withthe1997
provisions oftheFinance Law.
Since thisproduct wassubsidized, thebeneficiaries ofthesubsidy havebeenthepublic regional
milkauthorities (centre, westandeast).WT/ACC/DZA/2
Page17
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING FOREIGN
TRADE
1. Powers oftheexecutive, legislative andjudicial branches ofgovernment
Question 25
Article 74oftheConstitution provides thatthePresident oftheRepublic asHead ofState
concludes andratifies treaties. Does theGovernment orParliament playapartinchoosing
legislation orconcluding atreaty?
Reply
Theprinciple isthatthePresident oftheRepublic decides andconducts theforeign policy of
thenation according toArticle 77A13oftheConstitution. Inthiscapacity, heconcludes andratifies
international treaties.
However, thepower ofthePresident oftheRepublic toconclude andratify international treaties
issubject totheprior approval ofParliament incertain matters exhaustively listed inArticle 131of
theConstitution. ThisArticle provides that"Armistice agreements, peace, alliance andunion treaties,
treaties relating toStatefrontiers, treaties onthestatus ofpersons andtreaties involving expenditure
notprovided forintheState budget shallberatified bythePresident oftheRepublic afterexpress
approval byeachofthetwoChambers ofParliament."
Inaddition tothecases mentioned intheabove Article, thePresident oftheRepublic possesses
supreme power toratify international treaties without theapproval ofParliament.
With regard totheHead ofGovernment, thelatter doesnothaveanydecision-making role
intheconclusion ofinternational treaties. However, inpractice, negotiations fortheconclusion of
suchtreaties arehandled bythegovernment through theMinistry ofForeign Affairs andthetechnical
ministries concerned.
Question 26
TheroleoftheHead ofGovernment includes thesigning ofexecutive decrees. Does the
Constitution fixlimits asregards thecontent ofsuchdecrees? Does thisrequire theprior consent
ofParliament and/or thePresident? What happens ifParliament and/or thePresident donot
agree onanexecutive decree which theHead ofGovernment proposes forsigning?
Reply
Asregards individual executive decrees, Article 85oftheConstitution empowers theHead
ofGovernment tomake appointments toStateposts without prejudice totheprovisions ofArticles 77
and78oftheConstitution onthepowers andprerogatives ofthePresident oftheRepublic. Itshould
benoted thatthese decrees areliable toalegality check bytheadministrative chamber oftheSupreme
Court onappeal bytheinjured person.
Theprerogatives sofarallocated totheadministrative chamber oftheSupreme Court are,from
thepoint ofviewoftheprovisions oftheConstitution asamended on28November 1996, guaranteed
bytheCouncil ofState, thebody regulating theactivity oftheadministrative courts.WT/ACC/DZA/2
Page18
Asregards regulatory executive decrees, these relate tomatters other thanthose reserved for
thelawandother thanthose coming under therule-making power ofthePresident oftheRepublic.
TheHead ofGovernment derives hisrule-making power from paragraph 2ofArticle 125of
theConstitution, which provides that"Theapplication ofthelawscomes within theregulatory domain
oftheHead ofGovernment."
Regarding thesecond partofthequestion, thesigning ofexecutive decrees doesnotrequire
theapproval ofthePresident oftheRepublic orofParliament since these decisions arepartofthe
domain reserved fortheHead ofGovernment.
Itisessential, however, thatthese decrees should becarried outinstrict observance ofthe
legalprovisions theyaredesigned toimplement.
Because heisappointed bythePresident oftheRepublic, itisclearthattheHead ofGovernment
maynottakedecisionsrunningcountertotheguidelinesandprogrammeofthePresidentoftheRepublic,
whoisalone responsible tothepeople.
Actions bytheHead ofGovernment must likewise becompatible withtheexecution ofa
programme adopted byParliament butalsowiththestrict application oflawspassed bythelatter.
AlltheselimitationsthereforeconstitutesignpostsenablingthepowersoftheHeadofGovernment
tobeexercised within aconsistent framework.
Nevertheless, where anexecutive decree conflicts withalaw,anyperson injured thereby is
entitled toappeal totheadministrative chamber oftheSupreme Court withaviewtohaving theeffects
ofthedecision inquestion onhisperson declared nullandvoid. Theadministrative chamber ofthe
Supreme Court doesnot,however, possess thepower torescind anexecutive decree. Under thenew
Constitution adopted, suchappeals willhavetobemade totheCouncil ofStateonceithasbeeninstalled.
Ontheother hand, onreferral tothePresident oftheRepublic, thePresident ofParliament
orthePresident oftheCouncil ofState, theConstitutional Council hasthepower torescind anexecutive
decree judged tobeunconstitutional. Thisrepresents anextreme caseinasmuch asthePresident of
theRepublic, whoexercises hierarchical power overtheHead ofGovernment, canaskthelatter to
revoke hisexecutive decree, withnoneedforarbitration bytheConstitutional Council.
Question 27
What process isnecessary tocomplete thenational procedures foraccession totheWTO?
Willtheaccession protocol ofAlgeria prevail overnational legislation?
Reply
Algeria hasnospecial procedure requiring aninternational convention tobeincorporated into
thelegalsystem.
Such aconvention isanintegral partofnational legislation assoonasitisratified bythe
President oftheRepublic. Under Article 132oftheConstitution, itacquires alegalauthenticity greater
thanthelaw.WT/ACC/DZA/2
Page19
Accordingly, dulyratified international treaties areplaced second inthehierarchy oflegaltexts,
aftertheConstitution andbefore thelaw. Alawcontrary tothetreaty cannot beimplemented asthe
provisions ofthetreaty takeprecedence.
TheConstitutional Council clearly stated inDecision No.1/DLCC/89 of20August 1989the
constitutional principle thattreaties takeprecedence overthelaw,inferring from thisthatanybody
could relyonthem before thecourts.
"Whereas afteritsratification andupon itspublication anyconvention shallbeincorporated
intonational lawand,pursuant toArticle 132oftheConstitution, acquires anauthority exceeding the
law..." (extract from theaforementioned decision).
2. Government entities responsible fortheelaboration andimplementation offoreign tradepolicy
Question 28
How arepowers divided between theMinistry responsible fortrade andtheMinistry
responsible forforeign trade (page 22,WT/ACC/DZA/1)?
Reply
TheTrade Ministry istheholder ofallpowers relating todomestic andforeign trade. There
isnoforeign trade ministry.
4. Possible legislative programmes orplans tomodify theregulatory regime
(a) Regime applicable toimport andexport operations
Question 29
Arethere anyagricultural products affected bythedraft Order onforeign trade concerning
prohibited products, because theyprejudice safety, public order, health, morality, environment,
national heritage andprotection ofcertain animal andplant species (page 25,WT/ACC/DZA/1)?
Reply
ThedraftOrder onforeign tradedoesnotcover anyprohibition affecting agricultural products.
Theexisting export restrictions will,ofcourse, bemaintained.
Question 30
Asubstantial increase inforeign trade ingoods isforecast forthefiveyears ahead
amounting to60percentforexports and50percentforimports (page 19,WT/ACC/DZA/1).
What assumptions arethese forecasts based on?
Reply
Theforecasts ofanincrease intheforeign tradeofAlgeria amounting to60percentforexports
and50percentforimports arebased onthefollowing assumptions:
Asregards hydrocarbon exports, theaverage reference price perbarrel ofoilisestimated at
US$19 fortheyear2000. Exported quantities willriseby50percentforcrude oilandnatural gas.WT/ACC/DZA/2
Page20
These riseswillbeduemainly tonewoilstrikes coming on-stream andtothedevelopment ofthe
natural-gas network between Algeria andEurope (doubling oftheeastern gaspipeline andaphased
increase inthewestern gaspipeline).
Non-hydrocarbon exports areforecast toreach alevelofaround US$2 billion intheyear2000.
Thisforecast isinlinewiththegoals setforrestructuring oftheindustrial production system.
Asregards imports, theincrease inphysical flows isdueparticularly totherevival inindustrial
activity andininvestment andtotheincrease inforeseeable demand forpopular basicconsumer products
asaresult ofpopulation growth.
(d) Supervision offoreign trade
Question 31
Please supply details about thepresent position regarding theadoption and/or
implementation ofthedraft Order onforeign trade mentioned inthissection.
Reply
Theforeign trade billisstillinthestudy stage.
Question 32
Please sendacopy ofthedraft Order onforeign trade andoftheCustoms Code tothe
Working Party inalanguage oftheWTO.
Reply
TheCustoms Code isbeing submitted totheWTO Secretariat. Theforeign trade billisnot
yetinitsfinalform.
5. Laws andlegalacts
(a) Listoflawsandlegalactsregulating theactivity ofthecustoms authorities
Question 33
Reference ismade totheforeign trade bill.Isthisthesame asthedraft Order onforeign
trade? Ifnot,please sendusacopy.
Reply
There isnodifference between theforeign trade billandtheOrder. They bothrefertothe
same draftlegislation.
Question 34
Asregards arbitration, itisstated thattheCode ofCivil Procedure hasbeen expanded
tomake international arbitration possible (page 44). What changes doesthisimply asregards
theprocedureforrequestingcompensationforforeignerssufferingprejudicefollowingtheinstances
ofnationalization which occurred atthetimeofAlgerian independence?WT/ACC/DZA/2
Page21
Reply
International arbitration wasintroduced inAlgeria byLegislative Decree No.93-09 of
25April 1993amending andsupplementing Order No.66/154 of8January 1966ontheCode ofCivil
Procedure inachapter headed "Measures relating tointernational trade arbitration".
InternationalarbitrationasprovidedforinArticle458bisoftheabovetextconcernsthesettlement
ofdisputes relating tointernational trade interests between twotrading parties ofwhich atleastone
hasitsheadquarters ordomicile abroad andwhich haveconcluded anarbitration agreement.
Thearbitration provided forintheCode ofCivil Procedure therefore doesnotconcern the
situation offoreigners whose property wasnationalized following independence.
(b) Laws andlegalactsrelating to:
(a) Non-tariff regulation ofimports
Question 35
This billmakes itpossible toapply import licensing measures andtemporary quotas.
What conditions willresult intheapplication ofsuchmeasures?
Reply
Theforeign trade billprovides forthepossibility ofrecourse toimport licensing andthe
introduction oftemporary quotas.
Animport licence willbeissued automatically inconformity withtheWTO import licensing
agreement.
Withregard totemporary quotas, thesecanbeimplemented particularly inthefollowing cases:
- Toprotect aspecific branch ofnational production against anunforeseen increase in
imports which damages orthreatens todamage itseriously (safeguard measures);
- Anupset inthebalance ofpayments (Article XVIII ofGATT 1994) incompatible with
theStructural Adjustment Agreement concluded withinternational financial institutions
(IMF-IBRD).
Inanycase, recourse tothistypeoftemporary measure willtakeplace inconformity with
therelevant rules laiddown bytheWTO Agreements.
Question 36
Does Algeria undertake toapply themeasures onimport quotas andlicences inaway
which isfully compatible withWTO rules?
Reply
Yes.WT/ACC/DZA/2
Page22
Question 37
Algeria indicates thatnonon-tariff import regulations arecurrently inplace, butthat
theforeign trade billprovides forthepossibility ofjustified recourse toimport licensing andthe
temporary limitation ofimports (quotas) (pages 29,48and68ofWT/ACC/DZA/1). WillAlgeria
bring itsforeign trade billintoconformity withtheprovisions oftheAgriculture Agreement?
What doesAlgeria consider "justified recourse"? HowwillAlgeria administer import licensing?
Reply
Algeria willbring itsforeign trade billintolinewithallWTO rules anddisciplines and,of
course,withtheprovisionsoftheAgricultureAgreement."Justifiedrecourse"referstoalltheprovisions
oftheWTOAgreementswhichlaydownthatinparticularsituations,especiallywhenunforeseenimports
threaten national industries (safeguard measures), acountry mayresort toanumber oftemporary
measures aimed atrestricting imports inorder tocopewithserious balance-of-payments difficulties
ortocombat, interalia,dumping practices.
Thelicensing regime which Algeria isplanning toimplement foritsstatistical information
purposes willbeadministered inaccordance withtheappropriate WTO Agreement. Licences will
beissued automatically toallforeign-trade operators onrequest totheforeign-trade administration.
IV. POLICIES AFFECTING TRADE INGOODS
1. Import regulation
(b) Characteristics ofthenational customs tariff
Question 38
Please supply copies ofthecustoms tariff, preferably inelectronic form, andalistofcurrent
import duties.
Reply
Thecustoms tariff including thecurrent ratesforimport taxes, customs duties andVAT is
available inelectronic form.
Question 39
HasAlgeria gone overtothe1996 harmonized nomenclature system. Ifnot,when will
itdoso?
Reply
Theamendments totheharmonized system nomenclature adopted under theauspices ofthe
World Customs Organization came intoforce on1January 1996.
Question 40
Please confirm thatAlgeria hasnospecific orcombined customs duties?WT/ACC/DZA/2
Page23
Reply
Algeria doesnotpossess anyspecific orcombined customs duties. Allcustoms duties aread
valorem .However, itdoesnotruleouttheuseofsuchcustoms duties inthefuture.
Question 41
Could Algeria please provide abreakdown ofwhich agricultural products aresubject to
each ofthecustoms duty rates: exemption, 3,7,15,25,40and60percent (page 46,
WT/ACC/DZA/1)? Could Algeria confirm thatthemaximum current applied tariff rateis50per
cent? What isthemaximum applied tariff rateforagricultural products? Could Algeria provide
details ofapplied tariffs bytariff chapter?
Reply
Themaximum current rateofcustoms dutyfellfrom 60percentin1995 to50percentin
1996 andto45percentin1997, i.e.areduction of25percentovertwoyears. Thismaximum rate
applies toallimports and,ofcourse, toimports ofagricultural products.
Thisbeing thecase, itshould benoted thatthemajor proportion ofimports ofagricultural
products issubject toverylowcustoms duties.
Regarding thebreakdown oftheapplied ratesforagricultural products, thewhole ofthecurrent
Algerian customs tariff isattached ondiskette.
Question 42
How doesAlgeria consider thecustoms fee,thefeeforcustoms formalities aswellasthe
basic rules which aretobeobserved forcarrying outimport transactions (page 45,
WT/ACC/DZA/1) tobeconsistent withArticle VIIIofGATT 1994?
Reply
Thecustoms feeandthefeeforcustoms formalities were introduced onlyinorder tocover
theapproximate costoftheservices provided bythecustoms administration.
Allforms andother services, including those involved inusing thedata-processing system,
arecompletely freeofcharge forallusers.
Thequestion whether these feesareinconformity withtheprovisions ofArticle VIIIof
GATT 1994 iscurrently being assessed.
Asregards customs formalities, Algeria, which hasbeenamember oftheWorld Customs
Organization since 1966, hasadopted themajority oftheconventions andrecommendations drawn
upbythatorganization. Theexisting formalities arebased asawhole oncurrent rulesandpractices
onthesubject atinternational level.WT/ACC/DZA/2
Page24
(c) Tariff quotas, tariff exemptions
Question 43
Please supply more detailed information ontariff exemption, comprising asix-digit HS
listofallarticles qualifying forexemption, andonthecriteria adopted indeciding togrant
exemption.
Reply
Thenumber oftariffsubheadings exempted fromcustoms duties (zero rate)currently amounts
to100(seediskettes onthe1997 customs tariff).
These consist mainly of:
- Four subheadings inChapter 10relating tocereals foruseasseed;
- 38subheadings inChapters 27and34relating tooilproducts enjoying special treatment
under thecustoms arrangements forexempted factories;
- eight subheadings formilitary equipment;
- 21subheadings forcertain airandseatransport equipment;
- 13subheadingsrelatingtomedicalorparamedicalequipmentandcontraceptiveproducts;
- 12subheadings concerning artobjects orantiques;
- foursubheadings relating tocertain specific goods (monetary gold, banknotes, stamps
etc.).
Question 44
AsaWTO Member, would Algeria continue tomaintain tariff preferences andexemptions
forimportsfromcountriesoftheArabMaghrebUnion(page47,WT/ACC/DZA/1)?CouldAlgeria
provide alistofproducts towhich suchpreferences would apply?
Reply
TheTreaty setting uptheArab Maghreb Union (17February 1989) provides fortheeventual
introduction ofthefreemovement ofpersons, services, goods andcapital between thefivecountries
which aremembers oftheUnion.
TwoConventions havebeensigned inconnection withtheimplementation oftheseobjectives:
- TheTrade andTariff Convention concluded in1991, which confers exemption from
customs duties, taxes andcharges ofequivalent effect onallimported products
originating inmember countries; and
- theConvention of23July1990 specifically covering trade inagricultural products.
However, astarthasnotyetbeenmade onapplying these twoConventions.WT/ACC/DZA/2
Page25
Withregardtothepreferencesandexemptionsgrantedonimportscomingfromcertaincountries
oftheregion under preferential bilateral tradeagreements, itshould berecalled that,despite theirlong-
standing nature, thelevelofintra-Maghreb trade which theygenerate accounts forscarcely 3percent
oftheregion 'sforeign trade.
These same agreements areduetobewound upinthemore comprehensive framework ofthe
proposed free-trade zonecurrently under discussion between theAMU member countries.
Regarding thelistsofproducts towhich tariffpreferences would apply, itshould bementioned
that,under thetrade andtariff convention of1991 which isnotyetinforce, AMU member countries
havealsodrawn upthelist(below) ofproducts which willbecompletely freed from alltariff and
non-tariff barriers:
25.02 ironore;
ex.25.07 clay, kaolin andbentonite;
ex.25.11 baryta;
ex.25.15 uncut marble;
ex.25.20 crude gypsum;
ex.25.23 white cement;
ex.26.01 copper ore;
ex.27.04 cokeandsemi-coke;
ex.28.01 chlorine;
ex.28.05 mercury;
28.16 ammonia;
ex.28.40 super triple polyphosphate (STTP);
ex.29.01 ethylene;
ex.29.35 furfural;
ch.30 medicines;
ch.31 fertilizers;
33.01 essential oils;
ex.38.11 agricultural pesticides;
ex.39.02 polyvinyl chloride;
41.01 untreated skins;
ch.45 corkandcorkarticles;
47.01 paper paste;
53.01 rawwool;
55.01 rawcotton;
68.01 articles ofmarble;
68.06 abrasives;
ex.70.19 glass pearls;
73.01 pigiron;
73.02 ironalloy;
73.08 ironblanks;
73.12 bandironorsteel;
73.13 ironsheets andplates;
ex.73.18 steeltubes andpipes excluding welded tubes;
73.20 pigiron, ironorsteelaccessories andpiping, (connectors, elbow
joints);
ex.73.21 metal frameworks;
ex.73.37 steam boilers forcentral heating;
ex.73.37 radiators forcentral heating;
ex.76.10 aluminium packing;WT/ACC/DZA/2
Page26
78.01 rawleadexcluding leadwaste;
82.01 agricultural, horticultural andforestry tools;
84.06 motors;
ex.84.10 hydraulic pumps;
ex.84.22 lifting machines andequipment;
84.23 public works equipment;
ex.84.28 machines andequipment foragriculture;
84.45 machine tools forstoneworking;
84.47 machine tools forworking other materials;
84.53 micro-computers;
ex.85.01 electric motors;
ex.85.11 electric welding machines andequipment;
ex.85.13 telephone switches;
85.25 electric insulators;
86.07 vansandwagons;
90.17 disposable syringes;
90.02 medical furniture.
TheConvention ontrade inagricultural products provides inArticle 2that"The Contracting
Parties undertake toexempt agricultural products oflocalsource andorigin andtraded directly between
them from customs duties, taxes andcharges ofequivalent effect imposed onimportation."
Article 3refers totheundertaking bytheContracting Parties to"exempt agricultural products
ofMaghreb origin traded directly between theparties from non-tariff measures. Thelistofthesaid
products isestablished bytheFood Security Commission".
On30October 1990theaforementioned Commission adopted thefollowing listofagricultural
products from which non-tariff barriers havebeenremoved:
- Dried pulses;
- vegetables;
- fruit;
- seeds;
- plants;
- redmeat;
- fish;
- preserves (tomatoes andfish).
Finally, itshould bestated thatthereisnotyetanylistofagricultural products exempted from
customs duties, taxes andcharges having equivalent effect.WT/ACC/DZA/2
Page27
(d) Other duties andcharges, including charges forservices rendered
Question 45
GATT 1994drew adistinction between taxes levied onimports butnotonnational products
(which aresubject toGATT provisions oncustoms duties which mayapproach zero(subject to
Article VIIIandlimited totheapproximate costoftheservices)). What isthelevelofwarranty
feesongoldandprecious metals andoftheslaughter tax? Arethese notinconsistent withthe
provisions ofArticle VIIIofGATT 1994?
Reply
Taxes ongoldandprecious metals andtheslaughter taxareinfactdomestic taxes which are
levied bothonimported products andonproducts made locally.
These charges aretherefore notcovered bytheprovisions ofArticle VIIIofGATT 1994.
Question 46
Does Algeria intend toeliminate these additional taxes?
Reply
Asregards domestic taxes(excise duties), thesecharges willshortly beabolished soastobring
theproducts concerned within thescope ofVAT, aswasdonein1996 foroilproducts andalcohol.
Question 47
Does Algeria agree that,asadvalorem duties, thefeeof2percentforcustoms formalities
andthefeeof0.4percent(four per1,000) forcustoms feesareinconsistent withArticle VIII
ofGATT 1994?
Reply
Algeria considers thatthetwocustoms fees(2percentand4per1,000) reflect theapproximate
costoftheservices rendered. However, thisquestion isstillunder close examination.
Question 48
What areAlgeria 'splans toconvert import feesintoataxreflecting thecostoftheservices?
How isitproposed tocarry outthese changes?
Reply
These twofeesaredesigned exclusively tocover theapproximate costofthecustoms services
received byforeign trade operators whotakeadvantage ofthese services without paying other fees
orcharges. Allforms andother services, including those involved inusing thedata-processing system,
arefreeofcharge.WT/ACC/DZA/2
Page28
(e) Quantitative import restrictions, including prohibitions, quotas andlicensing systems
Question 49
Pleasesupplyacompletelist(eight-digitHS)ofallimportrestrictionsmaintained,indicating
thetypeofrestriction applied andgiving reasons.
Reply
There isnoeconomic restriction atpresent onimports.
Question 50
Thepossibility ofintroducing import control, including quotas, isexplicitly mentioned.
Have anyspecific measures already beenstudied? Ifso,please givedetails andtheWTO provisions
relating thereto.
Reply
There areatpresent nospecific control measures apart from quality control andcontrol on
theconformity ofproducts withcurrent rules.
Question 51
Isittobeunderstood thatAlgeria doesnotmaintain anyquantitative restrictions except
forthose onproducts suchasnarcotic drugs andweapons?
Reply
Algeria doesnotcurrently maintain anyquantitative restrictions apartfromthose onproducts
suchasnarcotic drugs andweapons.
However, Algeria doesnotruleouttheuseofsuchquantitative restrictions intheevent of
serious difficulties, incompliance withtherelevant requirements oftheWTO Agreements.
Question 52
Could Algeria supply alistofallproducts whose import iscurrently prohibited?
Reply
There isnoabsolute prohibition ofaneconomic nature atpresent. Theonlyprohibitions are
those brought inforreasons ofpublic morality, public order, public safety, protection ofhuman life
andhealth andanimal protection andobjects ofartistic, historical orarchaeological value orindustrial
andcommercial property, inaccordance withtheprovisions ofArticle XXofGATT 1994.
(f) Import licensing procedures
Question 53
Does Algeria have plans todevelop animport licensing system?WT/ACC/DZA/2
Page29
Reply
Astudy iscurrently inprogress onthedevelopment ofasystem ofautomatically issued licences,
forstatistical purposes.
Question 54
Does Algeria intend toestablish animport licensing system intheforeseeable future
(page 48,WT/ACC/DZA/1)?
Reply
Algeria planstointroduce anautomatic licensing procedure forstatistical information purposes.
Inanycase, Algeria intends toapply inthisconnection alltheprovisions laiddown inthe
WTO Agreement onImport Licensing Procedures.
(g) Other border measures
Question 55
Itisnoticed thattheimport ofcertain products issubject toprior authorization. Please
explain whythisisnotregarded asanimport licence. Please supply acomplete listofallproducts
(eight-digit HS)which aresubject toprior authorization andthereason forthisrequirement.
Please explain, instages, theprocess whereby prior authorization isgranted, indicating thetime
needed andthecriteria adopted forgranting orrefusing authorization.
Reply
Theimportation ofcertain products (medicinal products, hunting weapons, bookshop articles
andanimal andplant products) issubject toprior authorization bythedepartments concerned.
Thisauthorization canberegarded asanon-automatic import licence from thepoint ofviewofthe
provisions oftheWTO Agreement onImport Licences.
Prior authorization bytheappropriate department isrequired before importation.
Forimported medicinal products, thesemustappear ontheMinistry ofHealth andPopulation
listofmedicines which maybeimported (inaccordance withArticle XXofGATT 1994).
Asregards firearms, theholding ofthese isstrictly prohibited inAlgeria withtheexception
ofhunting weapons which maybeimported freely, subject tothetechnical agreement oftheauthorities
concerned andforobvious reasons ofsecurity.
Withregard tobookshop articles (newspapers, periodicals, literary andcinematographic works),
theimportation oftheseproducts isalsosubject tothepriorauthorization oftheMinistry ofInformation
andCulture, essentially forreligious reasons, particularly public morals (inaccordance withArticle XX
ofGATT 1994). Foranimal andplant products, importation issubject toprior authorization bythe
departments oftheMinistry ofAgriculture andFisheries.
These authorizations areissued onrequest totheissuing authority, subject tojustification being
provided ofthestatus oftheimporter andtoadescription (orlisting) oftheproduct (orproducts) to
beimported.WT/ACC/DZA/2
Page30
Question 56
Could Algeria provide alistofproducts which arecurrently subject tonon-tariff trade
restrictions andother border measures (page 48,WT/ACC/DZA/1)?
Reply
Noproduct iscurrently subject tonon-tariff restrictions orother external measures, apartfrom
those forproducts suchasnarcotic drugs andweapons.
However, Algeria doesnotruleoutrecourse tonon-tariff trade restrictions orother border
measures intheevent ofserious difficulties, withdueobservance oftherelevant requirements ofthe
WTO Agreements.
Question 57
DoesAlgeria apply theArab League boycott against Israel, aMember oftheWTO? Please
specify thetrade regime inforce inAlgeria vis-à-vis Israel.
Reply
Asamember oftheLeague ofArabStates, Algeria applies thedifferent degrees oftheembargo
decreed bythisinstitution in1954 withregard toproducts originating inIsrael. Thismeasure isof
apolitical andnon-commercial nature.
Theboycott isapplied forreasons ofnational security inaccordance withtheprovisions of
Article XXIofGATT andofArticle XIVoftheGeneral Agreement onTrade inServices relating to
general exceptions.
(h) Customs valuation
Question 58
Please complete thequestionnaire oncustoms valuation.
Reply
Thequestionnaire oncustoms valuation isbeing formalized andwillbesenttothe
WTO Secretariat upon completion.
(j) Preshipment inspection
Question 59
Does Algeria intend tointroduce preshipment inspection inthefuture?
Reply
Algeria doesnotpropose toemploy preshipment inspection companies. However, Algerian
enterprises mayresort totheservices ofthese companies onacontractual basis.WT/ACC/DZA/2
Page31
Question 60
WillAlgeria undertake toensure thatallpreshipment inspection activities takeplace in
fullconformity withWTO rules?
Reply
IfAlgeria introduces preshipment inspection, itundertakes toensure thatthisactivity willtake
place instrict observance oftheappropriate WTO rules.
(k) Application ofinternal taxes onimports
Question 61
What isthelevelofeachofthetaxes listed inthissection? Ineachcase, isthebasis of
taxation forimported products thesame asthatfornational products?
Reply
Theleveloftaxes listed isthefollowing (inAlgerian Dinars):
- Slaughter tax:DA5perkg.ofimported orlocally produced meat, ofwhich
DA1.50areallocated totheanimal-health protection fund;
- warranty feesongoldandprecious metals:
- DA1,000 perkg.ofgold;
- DA500perhectogramme forplatinum articles;
- DA50perhectogramme forsilver articles.
These warranty feesarelevied when thearticles concerned, whether imported orlocally
produced, arehallmarked.
Goldandplatinum articles arealsoliable toVAT attherateof21percent,while silver articles
aretaxed at7percent.
(l) Rules oforigin
Question 62
Itisstated thatAlgeria doesnotapply thesame rules oforigin among countries. The
Agreement onRules ofOrigin stipulates thattherules areadministered inaconsistent, uniform,
impartial andreasonable manner. Could Algeria explain howitintends tomake itsrulesconsistent
withtheAgreement onRules ofOrigin?
Reply
Algeria applies thegeneral rulesonthedetermination oforigin. Under common lawonlyone
definition oforigin isapplied. Algerian rules areperfectly consistent withtherequirements oftheWT/ACC/DZA/2
Page32
Agreement onorigin since theydonotconstitute barriers totrade andlikewise arenotlikely tocause
deflection oftrade.
Algeria applies particular definitions oforigin under thetradeandtariffagreements concluded
withcertain countries. These particular rules arenotactually covered bytheAgreement onRules
ofOrigin, which isaimed atthelong-term harmonization ofrulesoforigin other thanthose concerning
thegrant oftariff preferences. Itshould bepointed outthatAlgeria participates intheproceedings
ofthecommittee responsible fordrafting common-law rulesoforigin under theauspices oftheWorld
Customs Organization.
However, anassessment hasbeenstarted inorder todetermine thekindofactions needed for
adaptation totheWTO Agreement onRules ofOrigin.
(m) Anti-dumping regime
Question 63
Itappears thattheAlgerian legislation described inthissection ofthememorandum takes
retaliatory measures (onabasis ofreciprocity) against thepractices ofthird countries which take
discriminatory measures against Algeria.
Give details about Algeria 'srequirements andabout theprocedures fortaking such
measures.
What aretheWTO rules governing theapplication ofthese measures?
Reply
When Algeria issubjected todiscriminatory measures byapartner country, itcanapply the
same measures. These arenotretaliatory measures butsimply amatching oftheconditions towhich
itissubjected.
Theapplication ofsuchreciprocal measures islaiddown byexecutive decree inaccordance
withArticle 8oftheNational Customs Code.
However, afteritsaccession Algeria willadapt itslegislation inthematter tobring itintoline
withWTO rules.
Question 64
Please confirm thatnoanti-dumping legislation ofthetypeprovided forinArticle VIof
theGATT 1994 andoftheWTO Anti-Dumping Agreement isinforce.
Reply
TheCustoms Code covers anti-dumping. Executive Decree No.92-122 of23March 1992
laysdown theprocedures forapplying theprovisions onanti-dumping andcountervailing duties, the
amount ofwhich maynot,however, exceed thedumping margin, thepremium orsubsidy.WT/ACC/DZA/2
Page33
Question 65
Could Algeria explain more specifically therulesontheinvoking ofanti-dumping measures
andgiveexamples ofanti-dumping measures previously taken?
Reply
TheCustoms Code (Law No.79-07 of21July1979) introduced thepossibility ofrecourse
toanti-dumping measures.
Inthisconnection, Executive Decree No.92-122 of23March 1992wasadopted. Itspurpose
wastolaydown theprocedures forimplementing theprovisions ontheanti-dumping orcountervailing
duties provided forinArticle 8ofLawNo.79-07 of21July1979 ontheCustoms Code.
TheDecree defines anti-dumping andcountervailing duties asbeing increases incustoms duties
introduced inorder toprotect national production from unfair commercial competition practices.
Themeasures aretriggered afterconsultations initiated attherequest oftheMinister concerned
orofaproduction enterprise orsector ofactivity whose production isbeing harmed.
Acommission setupunder theMinister fortheEconomy isresponsible forexamining requests
andreporting totheMinister.
Anti-dumpingorcountervailingmeasuresweretakenin1992underExecutiveDecreeNo.92-123
of23March 1992.
(n) Countervailing dutyregime
Question 66
Provide further details about thecountervailing dutyregime. Forexample, what subsidy
practices isthecountervailing dutyregime designed toblock?
What degree ofdamage enables suchaction tobetaken?
What aretheprocedures foradopting suchmeasures?
Reply
Countervailing duties areincreased custom duties which canbeintroduced toprotect national
productionfromunfaircommercialcompetitionpracticesresultingfromthesubsidiesprovidedbycertain
countries.
Theexistence ofinjury isbased onestablished factsorondossiers containing anassessment
oftheinjury based onexamination ofallfactors influencing theproduction situation concerned.
These duties havebeenapplied onlyonce, in1992, andlasted ayear.
Ingeneral, from thepoint ofviewofadeveloping country, thisquestion ofinjury caused to
thedomestic economy bysubsidies intheexporting countries (orbydumping practices) isquite new
inasmuch astrade waspreviously subject tosubstantial non-tariff restrictions.WT/ACC/DZA/2
Page34
Forthefuture, Algeria expects totakeappropriate stepstousealltheresources permitted by
therelevant WTO Agreements.
(o) Safeguard regime
Question 67
Please supply details about thesafeguard regime, thesubstantive conditions andthe
procedures foradopting safeguard measures.
Reply
Safeguard measures maybetaken asprovided forintheWTO Agreement.
Question 68
Could Algeria explain about theconditions under which safeguard measures areinvoked,
aswellasabout lawsandregulations onsafeguard measures?
Reply
Inanticipation ofitsaccession totheWTO, theconditions under which Algeria might have
recourse tosafeguard measures arethose laiddown intheGATT 1994Safeguards Agreement pursuant
toArticle XIXofGATT 1994, which allows aWTO Member country totakesafeguard measures in
order toprotect aspecific branch ofnational production against anunforeseen increase inimports which
inflicts orthreatens toinflict serious harm onit.
2. Export regulation
(b) Customs tariff nomenclature, types ofduties, dutyrates, weighted averages ofrates
Question 69
Confirm thatnodutyortaxisimposed onexports.
Reply
There arenocustoms duties onexports atpresent. Theonlycharge affecting exports amounts
tofourper1,000 inthesame wayasforimports, inrespect ofthecustoms feedueatthetimeofthe
declaration.
(c) Quantitative export restrictions, including prohibitions, quotas andlicensing systems
Question 70
Please supply acomplete list(eight-digit HS)ofallrestrictions maintained onexports,
indicating thetypeofrestriction applied andthejustification forthemeasure.WT/ACC/DZA/2
Page35
Reply
Theeight-digit HStariff headings forexport restrictions arethefollowing:
- 0102 1000: livebreeding animals ofthebovine species;
- 0104 1010: livebreeding animals oftheovine species;
- 0508 0000: rawandsemi-finished coral;
- 0602 9990: palm-tree seedlings;
- 97011000,97019000,97020000,970300000,97050000,97060000:
objects ofnational interest fromthehistorical, artistic orarchaeological standpoints.
Allthese headings arecurrently thesubject ofexport restrictions. Thismeasure isaimed at
preservation ofthenational heritage.
Allthese export restrictions areconsistent withArticle XXofGATT 1994, inparticular
paragraphs (b)onconservation ofanimal lifeandplant conservation and(f)protection ofnational
treasures.
(e) Other measures
Question 71
What criteria areusedfortheestablishment ofminimum prices?
Reply
Thecriteria usedtoworkoutaminimum export pricefortheproducts inthereplytoquestion 72
are:
- Production cost;
- levelofnational production (supply);
- prices ontheinternational market.
Question 72
What aretheminimum price levels forexports ofdates andrawhides orskins.WT/ACC/DZA/2
Page36
Reply
Theminimum reference price fortheproducts inquestion are:
Forrawhides andskins:
Category Minimum reference price
(f.o.b. -Departure Algeria)
- Sheep F35each
- Cattle US$2.20/kg.
- Wool US$1.60/kg .
Fordates:
Variety Minimum reference price
(inF/f.o.b./kg.)
Deglet Nour/bunches 15.00
- Hand (boxed) 14.00
- 1kg. 13.50
- 3to5kg. 13.00
Deglet Nour/commercial
- 1kg. 9.50
- 5to10kg. 9.00
Deglet Nour/packaged
- Boxes 252kg. Free
- Boxes 500kg. Free
- 1to10kg. Free
Deglet Nour/standard
- 10kg. 6.00
Deglet Nour frezza (black dates)
- 10kg. 6.00
Common dates 6.00
- Tafezouine, natural (1kg.) Free
- Tafezouine, packaged (250kg.to
500kg.)6.00
Datepaste Free
Theabove-mentioned minimum reference prices arevalid for1996.WT/ACC/DZA/2
Page37
Question 73
Istheuseoftheminimum export price compulsory? What happens iftheproducts
tobeexported arevalued below theminimum price?
Reply
Application oftheminimum reference price iscompulsory. Eachmarketing year, asregards
dates generally inOctober atthetimeofthedateharvest, theMinistry ofTrade reviews theminimum
reference prices afterconsultation withthetrade associations concerned (producers andexporters).
Aproduct whose price fallsbelow thefixed minimum reference price maynotbeexported.
Question 74
Isdismantling oftheminimum prices required orplanned? How soon?
Reply
There isnoplanatpresent todismantle theminimum export price measures.
Question 75
Does Algeria intend torelax theconditions forrepatriating theproceeds ofexport
transactions within aforeseeable time-limit? (Seesection IV.2.a)
Reply
Theobligation torepatriate export proceeds remains abasis oftheexchange regulations at
thisstage ofthereforms. Nevertheless, inorder totakeaccount ofexport promotion requirements
inahighly competitive world context, thetimelimits forrepatriation arerelaxed under thefinancing
terms granted tocustomers.
(f) Export financing, subsidy andpromotion policies
Question 76
What measures aretaken "toimpose product quality" which arefinanced bytheexport
promotion fund? What conditions regarding export financing arementioned in....
Reply
TheFinance Law for1996 setupaspecial export promotion fund (Special Account
No.302.084).
Thisfundcanindeedassumeresponsibilityforfinancingthecostsofadaptingproductstoforeign
markets from thepoint ofviewofquality andpresentation.
Theresources ofthisfundcome from theallocation of10percentoftheproceeds ofthe
Additional Specific Tax(AST), which islevied equally onimported andnationally produced products.WT/ACC/DZA/2
Page38
Question 77
Does theCAGEX operate within thelimits andcriteria ofparagraphs (j)and(k)ofthe
illustrative listofexport subsidies (Annex 1totheAgreement onSubsidies andCountervailing
Measures)?
Reply
CAGEX isanexport insurance andcredit-guarantee company. Itdoesnotgiveanysubsidies
toexporters. Thelatter paythewhole amount ofaninsurance premium when aninsurance contract
issigned withCAGEX.
CAGEXisnotaStateinstitutionresponsibleforpromotingexportsandencouragingthemthrough
incentives. Itsimply insures thoseexporters which sodesire against therisksofforeign-trade operations
(various commercial risks).
(h) Import dutydrawback schemes
Question 78
Please confirm that"thereimbursement ofimport duties ...under thedrawback scheme
doesnotexceed theamount oftheduties levied oninputs incorporated inthegoods exported ...".
Reply
Although provided forbytheCustoms Code, thedrawback hasnever beenused. Inother
words, exporters havenever recovered theduties andtaxes paidinthepre-production stages oninputs
incorporated inthegoods exported.
3. Internal policies affecting foreign trade ingoods
(a) Industrial policy
Question 79
Please supply details about themeans which Algeria intends touseinorder toincrease
export activity andreduce itsdependence onimports, bothofwhich areobjectives ofitsindustrial
restructuring policy.
Forexample, canAlgeria explain whether thepromotion of(import) substitution activities
producing inputs means thatinternal localpurchasing requirements willbeimposed onfactories
using suchinputs.
CanAlgeria alsoexplain whether theincentive measures intended fortheSMEs are
applicable across theboard orwhether theyaretargeted atparticular sectors orregions ofthe
country?
Reply
Restructuring ofAlgerian industry isanecessity which hasalready become evident, andnow
increasingly so,asacondition foritssurvival. Thishasbecome particularly clearsincetheliberalization
oftheeconomy andforeign trade andthereform ofthemacroeconomic framework ledtothetotalWT/ACC/DZA/2
Page39
abolition ofsystematic protection ofthedomestic market against competition fromforeign manufactures,
aswellasofthesubsidies which certain localmanufactures previously enjoyed.
Inthisgeneral context, theprime objective ofrestructuring policy istobring domestic industrial
manufacturing activities uptoaleveloforganization andperformance which willbetter enable them
tofaceuptoforeign competition bothondomestic markets andonthemarkets ofourforeign trading
partners. Asinthehydrocarbons sector, these activities must beorganized insuchawaythatthey
canprogressively helptogenerate theresources needed forthefunctioning anddevelopment ofthe
country 'seconomy.
Thisobjective isbased ontwoessential facts:
- Theinability ofthehydrocarbons sector onitsowntocontinue tofinance economic
development;
- theuncompetitiveness oftheAlgerian economy ingeneral andoftheindustrial sector
inparticular, which results inanabnormal situation inwhich exports, apart from
hydrocarbons, areextremely small.
Thecomponents oftheAlgerian balance oftradegiven below illustrate thisabnormal situation
(base 1996):
- Total exports came to:US$13,375 billion;
- share ofhydrocarbon andgasexports: US$12,494 billion, i.e.93.4percent;
- share ofexports ofindustrial products: US$202 million, i.e.1.5percentoftotal
exports.
Export policy isaimed atincreasing theshare ofexports ofproducts andservices inorder
eventually tobring about amore balanced structure inwhich hydrocarbons andgasdonotrepresent
suchanoverwhelming share.
Theways andmeans ofcarrying outthispolicy essentially involve adapting theinstitutional
environment soastoorganize therelationship between theexporting enterprise andtheforeign market
more effectively byproviding thenecessary incentives andassistance. Forthispurpose alegalbasis
mustbegiven toStateintervention inthefieldofexport promotion byproviding intermediate support
areas suchastheForeign Trade Office andtheExport Credit Insurance andGuarantee Fund andby
theregulation andstandardization offairsandexhibitions.
Thedevelopment ofexports innowaysignifies, ofcourse, areduction inimports. Onthe
contrary, thegrowth inexport activities willnecessarily imply amatching growth inimports. Algerian
industrial policy accordingly entails agrowth intheoverall volume ofitstradeandthusamore sizeable
participation byAlgeria, under WTO auspices, inthegrowth inthevolume ofworld trade.
There isnaturally noplantolaydown internal requirements ofanytypeforfactories using
inputs.
Asregards investment incentive measures, theseareaimed atallenterprises without distinction
andconcern alltypes ofinvestment. These measures benefit residents andnon-residents without
discrimination. Depending onthelocation andnature oftheinvestment, advantages aregranted for
aspecific period either formaking theinvestment orforexploiting it.WT/ACC/DZA/2
Page40
Tothisend,theInvestment Code provides foranumber ofregimes:
- General regime: granting oftaxandcustoms advantages;
- special regime: thisissplitupinto:
- Specific-zone regime: granting offiscal, parafiscal andcustoms advantages
suchasthetotalorpartial State financing oftheprovision ofutilities for
investments made inlegally specified zones;
- free-zone regime: suspension ofduties andtaxesandother specific advantages
such asfreedom ofimportation andstorage andexemption from bank
domiciliation;
- theconvention regime: thiscovers thecontractual terms decided onbetween theinvestor
andtheAlgerian State;
- thesouth regime: thisconcerns thegranting ofadditional advantages overandabove
themeasures laiddown bytheCode fortwomajor "couronnes" intheAlgerian south:
- thefirst"Couronne" regime which concerns theAlgerian deepsouth: with
thewilayat(departments)ofTindouf,Adrar,TamanrassetandIllizithegranting
ofadvantages regarding:
- Registration duties;
- turnover taxes;
- customs duties;
- direct taxes;
- reinvested profits;
- exemptions;
- interest raterebates of50percent;
- 50percentrebate forincomes.
- thesecond "Couronne" regime, which affects thezoneofthehighAlgerian plateaux
(with thewilayat ofBéchar, Biskra, Djelfa, El-Bayadh, Ghardaia, Laghouat, Naama
andOuargla), granting ofadvantages regarding:
- Land tax;
- financing of50percentofinfrastructure expenses;
- concessions: 50percentreduction;
- 25percentinterest raterebate;WT/ACC/DZA/2
Page41
- exemptions;
- reinvested profits.
Inaddition totheadvantages granted bytheInvestment Code, theagriculture, tourism and
small-industry sectors enjoy supplementary financial, fiscal andparafiscal measures.
(b) Quality control policy, technical regulations andstandards
Question 80
Could Algeria explain howitharmonizes itsdomestic technical regulations andstandards
withinternational standards andregulations suchasthose oftheISO?
Reply
Algeria hasmade agoodstartonharmonizing itsdomestic technical regulations andstandards
withinternational standards andregulations likethose oftheISO.
Asregardsstandardization,theadoptionofdomesticstandardsistheresponsibilityoftheAlgerian
Institute forStandardization andIndustrial Property (INAPI), which oversees thework ofanational
technicalcommitteewhichtakestheproceedingsofspecialisedinternationalorganizationsasitsreference.
There arenow4,848 Algerian standards, including 95approved standards which arecomparable
totechnical regulations, and4,753 business standards 90percentofwhich follow theISOpattern.
Asregards technical regulations, rule-making power inregard toquality, product safety and
quality assurance istheresponsibility oftheMinistry ofTrade.
Inthisfieldaswell, national technical regulations arebased ontheinternational legislation
towhich Algeria isaparty asamember, interalia,ofFAO (application oftheCODEX Alimentarius
standards), ISOandIEC.
Question 81
Does Algeria haveanenquiry point which deals withconformity assessment procedures?
Reply
TheAlgerian bodies responsible forthese procedures are:
- TheAlgerian Standardization andIndustrial Property Institute (INAPI) under the
supervision oftheMinistry ofIndustry andRestructuring;
- theQuality Control Laboratory (CAQUE) under thesupervision oftheMinistry of
Trade.WT/ACC/DZA/2
Page42
(c) Sanitary andphytosanitary measures
Question 82
DoesAlgeriaforeseeproblemsinimplementingtheAgreementonsanitaryandphytosanitary
measures?
Reply
TheSPSAgreement oftheWTO raises noparticular problems. Itpermits strengthening of
thebasic principles ofphytosanitary prevention applied totrade inplants andplant products.
Algeria, which participates regularly inIOEproceedings, applies therecommendations ofthe
Animal Health Code (IOE).
Question 83
Does Algeria have anyenquiry point onSPS?
Reply
Algeria hastwoenquiry points concerning SPS:
- TheDirectorate ofVeterinary Services (DSV);
- theNational Plant Protection Institute (INPV).
These twoinstitutions come under theauthority oftheMinistry ofAgriculture andFisheries.
Question 84
Inthisconnection,thereisnomentionconcerningsanitarymeasuresonfood.CouldAlgeria
explain about this?
Reply
Foodstuffs arethesubject oftwochecks when theycross theborders:
- Ahealth andplant-health check;
- acheck onproduct quality andconformity bytheborder control unitsoftheMinistry
ofTrade.
Theexact procedures formaking checks onfoodstuff imports atborder posts aregiven inthe
reply toquestion No.106.
(d) Trade-related investment measures
Question 85
Please confirm thatAlgeria doesnotsupport measures which areinconsistent withthe
Agreement onTrade-Related Investment Measures.WT/ACC/DZA/2
Page43
Reply
Inaccordance withthegeneral principles ofitsinvestment-promotion policy intheInvestment
Promotion Code, Algeria does notsupport anymeasures which areinconsistent with the
TRIM Agreement.
(e) State-trading practices
Question 86
Arethere state-owned enterprises orjoint-stock companies included inthesection onstate
enterprises which possess special orexclusive trade rights? Arethere other enterprises withsuch
rights?
Reply
There arecurrently nostate-owned commercial enterprises orjoint-stock companies included
intheState commercial enterprise section which possess anyrightconferring onthem amonopoly
oranexclusive rightinrespect ofimport orexport.
Question 87
DoesAlgeria intend tonotify enterprises under Article XVII ofGATT 1994orArticle VIII
oftheGeneral Agreement onTrade inServices (GATS).
Reply
Algeria doesnotruleouthaving tonotify enterprises under Article XVII ofGATT 1994 or
Article VIIIofGATS. Anassessment ofthispoint isinprogress.
(f) Freezones
Question 88
Please confirm that, ifandwhen freezones orzones offreeeconomic activity are
established, theywillbefullysubject tothecommitments entered intobyAlgeria inconnection
withitsaccession totheWTO andthatAlgeria willensure theapplication ofthese future obligations
concerning thezones, including thecommitments arising from theTRIPS Agreement.
Pleasealsoconfirmthat,whenproductsmanufacturedorimportedintoanyzoneestablished
infuture under aspecial taxandtariff regime existing inzones outside those mentioned, normal
customs formalities, tariffs andtaxes areapplied.
Reply
Investments inthefreezones arereserved forexport-oriented activities, i.e.themarketing
outside thenational customs territory, thefreezones included, ofgoods andservices produced bythese
investments.
Trade relations between enterprises setupinthefreezoneandthose onnational territory are
regarded asforeign-trade operations from thepoint ofviewofcurrent legislation.WT/ACC/DZA/2
Page44
Authorization tomake salesinAlgeria inrespect ofapartofproduction isalsosubject tocurrent
lawsandregulations, particularly those governing foreign trade.
Investments "made onthebasisofcapital contributions bymeans offreely convertible currency
regularly quoted bytheCentral Bank ofAlgeria, theimport ofwhich isdulyrecorded bytheBank
andwhich canbeputtouseinthezones known as"free zones" where import, export, stockpiling,
processing orreshipment operations arecarried outunder simplified customs procedures", arenot
subject toanyadministrative preliminaries fortheadvantages laiddown intheInvestment Code to
beobtained.
Furthermore, Article 31(Title III)oftheInvestment Code stipulates that"Goods andservices
usedinmaking theinvestment andthose needed forexploiting itarefreely imported".
(j) Government-mandated counter-trade andbarter
Question 89
Explain howAlgeria canensure thatproducts imported under anexchange transaction
willnotbemarketed outside theterritorial borders ofthewilayat ofthesouth ofAlgeria.
Reply
Article 11oftheInterministerial Order of14December 1994laying down theprocedures for
frontier barter trade withNiger andMalistipulates thatgoods imported under thisheadmaynotbe
marketed outside theterritorial limits ofthewilayat ofAdrar, IliziandTamanrasset.
Inorder toensure thatimported products arenotmarketed outside theborders ofthethree
wilayat (departments) indicated, Algeria hasestablished acustoms beltinside which thelocalcustoms,
trading andtaxation services carry outusechecks. There arealsoanumber ofmeasures which include:
- Barter transactions ontheborders withNiger andMali concern aspecific listof
products;
- thequantities ofimported products maybefixed, where necessary, bytheauthorities
ofthewilayat concerned inaccordance withlocalmarket requirements;
- barter transactions atborders maybecarried outbyanylegalornatural person residing
inthewilayat concerned;
- thelistoftraders responsible forcarrying outbarter transactions attheborders isfixed
annually byorder ofthewali;
- import andexport transactions within thisframework must passthrough aspecial
"barter" bankaccount opened forthispurpose. Theamount ofproducts bought for
export maynotexceed thatdeclared onentry atthetimeofimportation;
- export transactions aresubject toacustoms declaration towhich areappended acopy
ofthecertificate ofrelease oftheimported goods forconsumption andthepurchasing
invoices concerning theproducts tobeexported. These documents mustaccompany
thetrader asfarastheborder.
Goods authorized forbarter transactions attheborders between Algeria, Niger andMaliare:WT/ACC/DZA/2
Page45
- Algerian products:
- common dates;
- Frezza dates, excluding theother varieties ofDeglet Nour dates;
- domestic salt;
- domestic objects ofplastic, aluminium, pigiron, iron, steel;
- blankets;
- localcraftobjects, excluding wool rugs.
- products from MaliandNiger:
- livestock;
- henna;
- green tea;
- spices;
- drymeats;
- turban andsaricloth;
- millet;
- rancid butter forlocalconsumption;
- dried pulses;
- rice;
- mangos.
Question 90
Please supply alluseful information relating tothispartoftheBill.
Reply
TheForeign Trade Billlaysdown theprinciples ofbarter tradeattheborders between Algeria,
Niger andMali.
(l) Government procurement practices
Question 91
Does Algeria intend toaccede totheGPA? Ifnot,why?WT/ACC/DZA/2
Page46
Reply
During itscurrent transition phase, Algeria ishaving todealwithanin-depth restructuring
ofitsenterprises andofthewhole ofitsforeign trade organization andsimultaneously withsevere
domestic social tensions. Forallthese reasons, itdoesnotwishtoaccede totheGPA atthisstage.
Such accession would introduce adisturbing element inthedomestic production system without in
anycontributing togreater openness withrespect toourforeign suppliers.
Question 92
CantheAlgerian Government givedetails ofcases offruitless invitations totender, with
what contracting parties andconcerning what products? What isthetotal value ofpublic
procurement?
What arethemain entities? What statistics does theAlgerian Government possess
concerning government procurement? Canyoumake these statistics known totheCommission
andsupply itwithacopy ofthelatest lawongovernment procurement?
Reply
Itappears difficult togiveaprecise answer tothevarious elements ofthisquestion. Forthis
there aretworeasons:
- First, theveryconcept ofgovernment procurement hasundergone asubstantial change
since 1991 inasmuch aspreviously italsocovered contracts concluded bypublic
enterprises;
- second, themanagement ofgovernment procurement ishighly decentralized. With
theexception ofcontracts which exceed aregulatory threshold andwhich come within
theresponsibility oftheNational Procurement Commission attached totheMinister
fortheBudget, allothers arethedirect responsibility oftheappropriate authorizing
officers.
Forthese reasons:
- There isnosystem forcentrally regulating themanagement ofgovernment procurement
andtherefore nosystem formonitoring themanagement ofinvitations totender and
theirresults. Overandbeyond theprocurement commissions attached tothemanagers
ofpublic funds andissuing "apriori" agreements concerning award ofthecontracts
which theyexamine, there are"aposteriori" controls carried outeither bytheCourt
ofAudit, theGeneral Finance Inspectorate (attheMinistry ofFinance) or,ofcourse
where appropriate, thecourts;
- theprincipal bodies managing government procurement areministerial departments
ortheirspecialised agencies, regional administrations (wilayat andcommunes) and
public institutions supported outofthebudget;
- onthestatistical level, theavailable figures concern contracts dealtwithdirectly by
theNational Procurement Commission. In1996thelatter examined contracts costing
agrand totalofDA31,480 million broken down asfollows:WT/ACC/DZA/2
Page47
- Algerian suppliers: DA1,990 million;
- foreign suppliers: 29,490 million.
Decree No.91.434 ofNovember 1991, which regulates government procurement, isattached.
Question 93
What isthemanagement structure oftheAlgerian government procurement system?
Isthere acentral agency which purchases onbehalf ofallcentral government agencies
ordothedepartments keep thebudgets?
Howisprocurement managed forlocal-government agencies andforother state-controlled
bodies?
Howdothepublic services (oil,gas,electricity, transport andwater undertakings) manage
public contracts?
Reply
There arenocentral purchasing authorities operating onbehalf ofthedifferent government
departments.
Every government department andevery public-service enterprise (electricity, gas,railtransport
etc.)actsforitself inpurchasing goods andservices foritsoperation andequipment.
Public commercial enterprises aregoverned bymarketing rules. Procurement forthenational
market isnolonger amonopoly. Every public orprivate operator cantakepart.
Question 94
Isthere acentral agency which monitors theapplication ofthelegal system, supervises
thedecisions ofthecommittees andsanctions infringements ofpublic law?
Reply
Purchases byadministrations andpublic enterprises ofanadministrative nature gothrough
theNational Procurement Commission when theyexceed acertain amount (currently DA3million).
Control ofpublic expenditure iscarried out"aposteriori" byauditing bodies suchastheGeneral
Finance Inspectorate andtheCourt ofAudit.
Question 95
Cansuppliers whodispute theaward ofacontract seekredress before anational court
orthrough alegal system?
What remedies areavailable?WT/ACC/DZA/2
Page48
Reply
Asregards principle, anynatural orlegalperson maygotolawtodefend hisrights. However,
asfarascompensation isconcerned, there arenolegal precedents onthesubject because Algerian
courts havenotyetdealtwiththistypeofdispute.
Question 96
Arethere detailed rules about thecondition thatnotice must bepublished oftenders and
contracts? What information must suchnotices contain andwhere aretheypublished?
Reply
Aninvitation totender islaunched viathepress oralegalnotice. Theinvitation mustcontain
thefollowing details:
- Company name andaddress ofthecontractor;
- typeofinvitation totender (open orselective, national and/or international, adjudication
orcompetition);
- purpose oftheoperation;
- documents required ofcandidates bythecontracting service;
- deadline andplace forsubmitting tenders;
- requirements astosecurity, ifappropriate;
- submission intheform ofadouble sealed envelope marked "nottobeopened" and
references relating totheinvitation totender;
- price ofthedocumentation.
Thenotice ispublished intheofficial language andinatleastoneforeign language. Itmust
becirculated aswidely aspossible soastoreach allpotential tenderers.
Question 97
Doestheexisting lawongovernment procurement stipulate conditions forthepreselection
ofwould besuppliers?
What arethese conditions?
Does thelawlaydown procedures andconditions forthedifferent forms ofadjudication
contract? What arethese procedures?WT/ACC/DZA/2
Page49
Reply
Public contracts areconcluded according tothefollowing methods:
- Single tendering, subdivided into:
- simple direct agreement;
- mutual agreement afterconsultation;
- invitations totender, subdivided into:
- openinvitations totender;
- selective invitations totender;
- selective consultation;
- adjudication;
- competition.
Simple direct agreement isaprocedure whereby thecontracting service awards thecontract
toasupplier withwhich ithaschosen toenter intodirect negotiation subject toaprior competition.
Useofthesimple direct agreement islimited tothefollowing cases:
- When theservices canbeperformed onlybyasingle co-contracting partner whoenjoys
either amonopoly of,oranexclusive rightto,thetechnological process decided on
bythecontractor;
- when theinvitation totender proves fruitless;
- incases ofgreat urgency arising from athreat ofimminent danger toagood or
investment which excludes anydelay inthetendering process;
- inthecaseofurgent procurement designed tosafeguard thefunctioning oftheeconomy
ortomeetthepopulation 'sessential needs.
Mutual agreement afterconsultation isaprocedure whereby thecontractor awards thecontract
toasupplier orentrepreneur chosen afteraprior competition.
Thecontractor initiates acompetition between several partners chosen from aspecified list
onthebasis ofcriteria relating particularly totheirqualifications.
Thecompetition arrangements must bemade inwriting (fax,telex, letter) addressed tothe
partner concerned without prior publicity.
Selectiveinvitationstotenderareaddressedonlytocandidateswhomeetcertainspecialconditions
previously defined bythecontractor.WT/ACC/DZA/2
Page50
Aselective invitation totender afterpreselection isaselective consultation. Thepreselection
notice issentoutviathepress inthesame wayasforaninvitation totender. Thechoice ofthe
candidates tobepreselected mustbemade fromalltenderers whomeettheconditions andqualification
criteria defined bythecontractor.
Preselected candidates areconsulted directly bythecontracting service which, indoing so,
must follow theprocedure foraninvitation totender, namely:
- Preparation oftheconsultation dossier;
- reception oftenders;
- opening oftheenvelopes;
- assessment ofthetenders andaward ofthecontract.
Adjudication involves acompetition between suppliers orentrepreneurs inorder toaward the
contract tothelowest tenderer (i.e.theonequoting thelowest price, provided thisdoesnotexceed
themaximum threshold fixed bythecontractor).
Adjudication covers simple common operations andisaimed onlyatinternational orforeign
candidates installed inAlgeria.
Thecompetition isaprocedure forgetting professionals tocompete against eachother forthe
execution ofanoperation which possesses specific technical, economic, aesthetic and/or artistic features.
Question 98
Howaretenders evaluated? Isprice thesolecriterion orarecontracts assessed byreference
toaneconomically more advantageous approach? How arethedifferent assessment methods
employed?
Reply
Tenders arenotassessed onlyonthebasisofprice. Thecomparative analysis ofthedifferent
offers hasregard tovarious criteria laiddown inArticle 49ofDecree No.91-434 of9November 1991.
These criteria are:
- Thetechnical andfinancial guarantees;
- theprice, quality andperiod ofexecution;
- integration intothenational economy;
- thefinancing terms offered byforeign enterprises;
- thecommercial guarantees andproduct-support conditions (after-sales service,
maintenance andtraining).WT/ACC/DZA/2
Page51
Question 99
Does theAlgerian lawongovernment procurement laydown provisions foraprice and
country preference system? Issuchasystem compulsory oroptional? How doesthepreference
system work? How isitmanaged?
Reply
ExecutiveDecreeNo.91-434of9November1991ontheregulationofgovernmentprocurement
stipulates inArticle 20that"The contracting service mustresort, asamatter ofpriority, toavailable
national production."
Article 21provides that"The partner/co-contractor must undertake toresort asamatter of
priority tonational production."
Question 100
Does theAlgerian lawongovernment procurement provide forcompensation (transfer
oftechnology orbuy-back arrangements)? How often aresucharrangements negotiated ona
case-by-case basis?
Reply
Algerian rules make noreference toanyobligation toprovide compensation.
Question 101
Does Algeria possess asystem ofelectronic tendering forpublic contracts? Ifso,how
doesthissystem operate? Ifnot,arethere areanyplans toinstall suchasystem?
Reply
Algeria doesnotpossess anyelectronic tendering system forpublic contracts andhasno
immediate plans toinstall suchasystem.
Question 102
Does Algeria have purchasing agreements withthird countries? Ifso,which countries?
Canyousupply uswithcopies ofthese agreements?
Reply
Algeria hasnoshort ormedium termpurchasing contracts withthirdcountries, evenforbasic
foodstuffs. Contracts areconcluded asandwhen necessary, without anycommitment tomulti-annual
purchases orother forms ofphased commitment.
Question 103
Does theAlgerian lawcontain discriminatory provisions concerning participation by
foreigners ingovernment procurement?WT/ACC/DZA/2
Page52
Reply
Apart fromtheadjudication process, there isnodiscrimination regarding theparticipation of
foreigners ingovernment procurement.
Adjudication within themeaning ofExecutive Decree No.91-434 of9November 1996 on
theregulation ofgovernment procurement isaprocedure whereby thecontract isawarded tothetenderer
whosubmitsthebestoffer.ItrelatestosimplecommonoperationsandconcernsonlyAlgerianapplicants
andforeigners settled inAlgeria.
Question 104
Could Algeria explain thetreatment applied toforeign products, foreign services andtheir
suppliers under theprocedures setoutinDecree No.91-434 ofNovember 1991, andunder the
other regulations, procedures andcustomary practices relating togovernment procurement?
Reply
Asregards theorganization ofgovernment procurement, Algerian regulations giveprecedence
todomestic producers andsuppliers. Thisprecedence takes theform of:
- Reserving contracts forlocalsuppliers;
- authorizing theletting ofcontracts tolocalsuppliers when theiroffers areslightly less
competitive thanthose offoreign competitors;
- givingpreferenceininternationalinvitationstotendertoforeignsupplierswhoemphasise
intheiroffers thattheyintend tomake greater useoflocalproducts.
Ingeneral, foreign suppliers areusedonlyforgoods andservices notavailable locally orwhen
thesupplies inquestion aredependent oninternational financing. However, foreign tenderers and
suppliers must bylawbetreated onabasis ofstrict equality.
4. Policies affecting trade inagricultural products
(a) Imports
Question 105
Thememorandum mentions three keyobjectives ofAlgeria 'strade policy. Oneofthem
istoestablish control overimports ofagricultural products andfoodstuffs. Does "control" in
thiscontext mean more thanthelegalpossibility ofauthorising thetemporary limitation ofimports,
asinthememorandum?
Reply
Control ontheimport andexport ofagricultural products andfoodstuffs complies withalegal
framework compatible withSPSrules andwithcurrent laws, namely:
- LawNo.88-08 of26January 1988 onveterinary health controls attheborders;
- LawNo.87-17 of1August 1987 onphytosanitary border controls;WT/ACC/DZA/2
Page53
- Executive Decree No.96-354 of19October 1996 onprocedures forassessing the
conformity andquality ofimported products.
Question 106
Please provide clarification oftheimport control systems inrespect ofproduct quality.
Reply
1. Checks bythedepartments oftheMinistry ofAgriculture andFisheries
(a) Animals andanimal products
ForthecontrolofproductqualityAlgeriaappliestherecommendationsoftheCodexAlimentarius
(FAO-WHO) andthose oftheIOEandbases itselfonnational regulations, inparticular LawNo.88-08
governing veterinary medicine andanimal-health protection andDecree No.91-452 onborder controls.
Samples areforwarded toapproved laboratories forroutine analyses, e.g.microbiological,
physico-chemical, isotopic analyses etc.
Health inspection atborder posts comprises:
- Checking ofveterinary health documents required bycurrent regulations;
- health andquality checks inthecaseofanimal products orproducts ofanimal origin,
supplemented byanysamples considered necessary forlaboratory analyses;
- placing inbond when theproducts areofadoubtful nature;
- quarantining ofliveanimals where necessary;
- checks onconformity withrequirements relating todisinfecting ingeneral andtoprior
disinfecting ofthemeans usedtotransport animals, animal products andproducts of
animal origin.
(b) Plants andproducts ofplant origin
Plant Health LawNo.87-17 andDecree No.93-286 institute andestablish official points of
entry anddeparture forplants andplant products. Atpresent these number 24,ofwhich tenareat
ports, sixonlandandeight atairports.
Border controls consist in:
- Verifyingthedocumentsaccompanyingthegoods,inparticularplant-healthcertificates;
- inspecting thegoods forthepresence ofprohibited organisms;
- making surethattolerated animal orplant organisms, ifpresent, donotexceed the
limits;
- where necessary, taking samples forlaboratory analyses;
- taking thedecision toreject orauthorise products attheborders.WT/ACC/DZA/2
Page54
2. Quality control ofimported products byMinistry ofTrade departments
Executive Decree No.96-354 of19October 1996 establishes newprocedures forassessing
theconformity andquality ofimported products. TheDecree provides for:
- Systematicpriorcontrol,onadmissiontonationalterritory,ofthequalityandconformity
ofimported products;
- thelistofproducts subject tocontrol islaiddown byinterministerial order;
- anyimported product notcomplying withthelawsandregulations willbethesubject
of"adecision torefuse admission ofaproduct intoAlgeria";
- anyperishable products must, onthedateofinspection, haveadurability exceeding
80percentoftheirshelflife.
Before anyrelease forconsumption onnational territory, theimporter isrequired tocarry out,
orarrange for,aquality control oftheimported goods.
Moreover, anyimported product notmeeting alltheprovisions ofExecutive Decree No.90-367
of10November 1990 onthelabelling andpresentation offoodstuffs willberefused admission into
Algeria.
Also, anyimporter whohasimported products notcomplying withtheregulations orunfit
forconsumption isliable tolegalproceedings inaccordance withLawNo.89.02 of7February 1989
onthegeneral rules forconsumer protection.
Question 107
Algeria indicates thatthesupply ofagricultural inputs, which wasformany years the
preserve ofpublic enterprises under monopolies granted bytheState, hasalsobeenfreed ofall
restrictions, andthishasfostered theemergence ofawiderange ofprivate companies specializing
inthisfield(WT/ACC/DZA/1, page71).CanAlgeria confirm thatthere isnolonger anymonopoly
ontheimportation ofagricultural products? Dostate enterprises continue totakepartinthe
trade inagricultural products?
Reply
Algeria confirms thatthereisnolonger anylegalmonopoly onimports ofagricultural products.
Public enterprises continue totakepartintrade inagricultural products justlikeprivate
enterprises.
(b) Exports
Question 108
Explain theexisting suspension ruleregarding theexport ofpalm seeds andlivestock.WT/ACC/DZA/2
Page55
Reply
Thesuspension ofexports ofthese products isduetothedesire toprotect animal andplant
species (seereply toquestion No.70).
Question 109
What criteria areusedtodetermine theminimum export price levelofdates andrawhides
andskins?
Reply
Theinformation needed forareply tothisquestion iscontained inthereplies toquestions
Nos. 71and72.Thecriteria inquestion areobjective criteria linked tothelevel ofprices onthe
international market anddetermined inconsultation withthetrade associations concerned.
Question 110
Algeria indicates thatthere isnoscheme ofexport subsidies applied atthepresent time
(WT/ACC/DZA/1, page68).IsAlgeria willing tobinditsexport subsidy commitments atzero?
Reply
ThebulkofAlgeria 'sexport income comes from thehydrocarbons sector, which represents
anon-renewable resource characterized byextreme price instability ontheinternational market, thus
exposing thelevelofexport income needed tofinance thewhole economy tounforeseeable fluctuations.
Inthelightofitsexisting export structure which is95percentdominated byhydrocarbon
products, Algeria asadeveloping country doesnotvisualise entering intoanyimmediate commitments
which might bindexport subsidies atzero,given themany andvarious risksinherent insuchasituation
andtheGovernment 'sdesire toproduce afundamental change initsapproach totheinternational market
from theintegration standpoint.
Ourposition isstrengthened bytheprovisions on"special differentiated treatment ofmember
developing countries" laiddown inArticle 27(Part VIII) oftheWTO Agreement onsubsidies and
countervailing measures.
(e) Internal agricultural policies
Question 111
Give further details about thesubsidy system forpasteurized milk. Clarify theexisting
pricing system formilk, semolina andflour.
Reply
Since 1January 1997 there havebeennosubsidised imported products. Asaresult, there
isnolonger anyprice-subsidy system.WT/ACC/DZA/2
Page56
Question 112
WenotethatAlgeria hasanumber ofdomestic subsidies thatarecovered under "green
box" measures intheAgriculture Agreement (WT/ACC/DZA/11, page 69). What isthelevel
offunding foreachoftheprogrammes? Onwhich agricultural products doesAlgeria haveany
product-specific report?
Reply
Thefunding ofprogrammes covered bybudgetary measures amounted tooverDA11billion
(about US$220 million) foreachofthe1995 and1996 financial years.
Theinternal subsidies covered bythe"green box" category arebroken down byheading as
follows:
- Research, training andextension, technical support, plantandanimal health protection:
20percent;
- localdevelopment: 60percent;
- central administration anddirectorates oftheagricultural services ofthewilayat: 20per
cent.
Theagriculturalproductsenjoyingproduct-specificsupportaredurumwheatandcommonwheat
intended forconsumption.
5. Policies affecting foreign trade inother important sectors
(b) Fishandfisheries
Question 113
Give details about anycurrent policy affecting headings HSO3,1604 and/or 1605.
Reply
Thedevelopment strategy planned forthefisheries sector isbased notonlyonexisting potential
butalsoontherecent trend inworld policies, which arenowmoving inexorably towards therational
management andconservation offishery resources withaviewtooptimum sustainable exploitation.
Thedevelopment strategy forthissector isstructured around:
- Good knowledge oftheresource;
- rational organization offishery exploitation;
- continuous monitoring offishing effort;
- development ofnewalternatives (aquaculture, inland fishing, specialized fishing).
Themain aimsofthisstrategy aretobring about asubstantial increase inthecontribution by
thefishery sector tonational foodsecurity and,onthesocio-economic level, tohelpcreate jobs.WT/ACC/DZA/2
Page57
Asregards foreign trade, fishery products aregoverned bythesameconditions asthose applied
toagricultural products andfoodstuffs, namely thereisnorestriction ontheimportation orexportation
ofthese products.
Asregards taxation andcustoms duties, Chapter 3products aresubject toVAT of7percent
andcustoms duties of45percent.
Theproducts covered bytariffheadings 16-04 and16-05 areliable onimport tocustoms duties
of45percentandtoVAT of21percentforinternal salestransactions.
Question 114
Doyouplancontrols onthese products? Doyouplantointroduce temporary safeguard
measures forthese products?
Reply
Algeria carries outhealth checks onfishandfishproducts inthesame wayasforproducts
ofanimal origin (seereply toquestions Nos. 105and106).
Theintroduction oftemporary safeguard measures would beconsidered onlyifthere werea
threat tonational production within themeaning ofArticle XIXofGATT 1994andtheWTO Agreement
onsafeguard measures.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME (TRIPS)
1. General
Question 115
What types ofcostsandcharges existwhich must bepaidtoobtain theright tointellectual
property?
Reply
1. Regarding patents forinventions
The1996Finance Lawlaiddown inArticle 81thatthetariffs fortaxes levied bytheAlgerian
Standardisation andIndustrial Property Institute (INAPI) andprovided forinArticle 124ofLegislative
Decree No.93-01 of19January 1993 concerning thefinance lawfor1993areamended andreplaced
bythetariffs laiddown inTable No.1below.
2. Registration ofmarks, designs, models andappellations oforigin
Applications toregister marks, designs andmodels andappellations oforigin arevalidly lodged
attheNational Commercial Register Centre (CMRC) when accompanied byavoucher proving that
therequired taxes havebeenpaid.
These taxes arelaiddown inthelegislative textsrelating tothethree aforementioned fields,
andthetariffs arefixed bythefinance laws.WT/ACC/DZA/2
Page58
Thus, thetaxtariffs for:
- Marks, designs andmodels were fixed byLawNo.85-09 of26December 1986 on
theFinance Lawfor1986; and
- forappellations oforigin werefixedbyFinance LawNo.77-02 of31December 1977.
Theten-year duration ofprotection iscalculated fromthedateofpayment oftherequired taxes,
andnofeeisdueaftertheformalities connected withlodging theapplication forregistration havebeen
completed.
Table No.2below gives thetariffs forthese taxes.
Table No.1
Parafiscal Taxes Levied bytheINAPI forIndustrial Property Activities
Code Nature oftaxes Unittariff
(DA)
762-01 Filing ofapplication forinvention patent 5,000
-02 Filing ofaddition certificate 3,000
-03 Claim ofpriority 800
-04 Publication ofinvention patents, addition certificates 2,400
Taxes onannual payments
-11 From 2ndto5thannual payment 3,000
-12 From 6thto10thannual payment 4,000
-13 From 11thto15thannual payment 6,000
-14 From 16thto20thannual payment 9,000
Supplementary taxes
-21 Publication ofinvention patents andaddition certificates, persetof
5pages afterthefirst10600
-22 Publication ofdesigns:
Small sizepersheet afterthethird 200
Large sizepersheet afterthesecond 500
Taxes onauthorized correction ofmaterial errors
-23 Forthefirst DA500
Foreachofthefollowing DA900
-24 Conversion intoanapplication forinvention patents ofan
application foracertificate ofaddition notyetissuedDA800WT/ACC/DZA/2
Page59
Code Nature oftaxes Unittariff
(DA)
-25 Registration taxes ofanykind concerning apatent application ora
patent600
-26 Registration taxes concerning thetransfer orgrant ofanapplication
forapatent, anapplication foranaddition certificate oranaddition
certificate1,200
-27 Surcharge fordelayed payment ofannual payments forinvention
patents within thesix-month grace periodEqual tothe
amount of
theunpaid
annual
payment
Taxes onprovision ofinformation
-33 Issue ofanofficial copyofadesign, perpageorsheet 200
-32 Authentication ofaprinted section ofaninvention patent orofan
addition certificate200
-33 Issue ofastatement ofannual payments foraninvention patent 240
-34 Issue ofcertified copyofregistration inthespecial patent register 300
-35 Investigation ofprior art,perpatent 2,400
Table No.2
Taxes Applicable toTrade Marks orService Marks
(Finance Law1997)
Code Nature oftaxes Unittariff
(DA)
Filing orrenewal taxes
746-01 Filing 5,000
Renewal 7,000
746-02 Registration byclassofproduct orservice 1,000
746-03 Claim topriority 1,000
Post-filing taxes
746-04 Issue ofanidentity certificate 400
746-05 Abandonment ofuseofamark 200
746-06 Surcharge fordelay inrenewal ofamark 200
746-07 Investigation ofprior art,permark 400
746-08 Correction ofmaterial error, permark 200WT/ACC/DZA/2
Page60
Code Nature oftaxes Unittariff
(DA)
746-09 Issue ofacertified truecopyofamark document 200
746-10 Issue ofauseregulation copyofacollective mark, perpage 200
Taxes concerning themark
register
746-11 Registration ofanacttransferring orgranting amark ortransferring
bysuccession800
- Foreachofthefollowing marks referred tointhesame
schedule100
746-12 Registration ofanyother kindrelating toamark. Foreachofthe
following marks referred tointhesame schedule100
746-13 Issue ofacertified copyofentry inthemark register orcertificate
stating thatnoneexists200
Taxonthefiling ofanapplication forinternational registration
746-14 National taxontheapplication forinternational registration ofamark 2,000
Filing taxes
747-00 Fixed taxindependent ofthenumber ofdesigns ormodels filed 5,000
747-01 Taxperdesign ormodel 200
Taxonclaim topriority
747-02 Claim, perpriority 800
Post-filing taxes
Advertising tax,perobject:
747-03 - filedintheform ofaspecimen 2,000
747-04 - filedintheform ofaphotograph 400
747-05 Maintenance forsecond nine-year protection period, perdesign or
model1,000
747-06 Issue ofidentity certificate, perdesign ormodel 400
747-07 Issue ofacopyofaregistration ofdesign ormodel 200
Taxes relating totheregister ofdesigns andmodels
Registration taxofanykind 400
747-08 - foreachdesign ormodel referred tointhesame schedule 100
747-09 Taxoncommunication ofinformation orcopyofdetails appearing in
theregister ofdesigns andmodels200WT/ACC/DZA/2
Page61
Code Nature oftaxes Unittariff
(DA)
Filing andrenewal taxes
748-00 Filing andregistration 3,000
748-01 Renewal 3,000
748-02 National taxonfiling ofanapplication forinternational registration 2,000
Taxes onprovision ofinformation
748-03 Issue ofanofficial copyofanapplication forregistration 200
748-04 Issue ofacopyoforextract from anydocument constituting the
application dossier, perpage200
748-05 Investigation ofprior art,perappellation 400
Taxes relating totheregister ofappellations oforigin
748-06 Registration taxofanynature, perregistered appellation oforigin 400
748-07 Surrender, perappellation oforigin 200
3. Copyright
Theprotection ofcopyright bytheNational Copyright Office (ONDA) isnotsubject tothe
payment ofduties andtaxes since noformalities areinvolved inobtaining suchprotection.
However, when works arethesubject ofpublic exploitation andthebody responsible forthe
collective management ofcopyright andneighbouring rights accordingly receives feesforthebenefit
ofitsmembers, management expenses arededucted inorder tooffset thecosts oftheservices which
itprovides.
Under therecommended practices oftheInternational Confederation ofSocieties ofAuthors
andComposers (CISAC) ofwhich theONDA isamember, these management expenses should not
normally exceed 30percentofthesums levied bythecollective-management body.
Question 116
IntheCivil Code theAlgerian government describes three cases inwhich theintellectual
property right isexercised inanunreasonable way. Give examples.
Reply
Under Legislative Decree No.93-17 of7December 1993 oninventions, certain provisions
ofwhich concern therights conferred bytheinvention patent onitsholder, thelatter hastheright
tomanufacture, useandmarket theproduct protected bythepatent and,depending onthecase, to
employ andmarket theprocess covered bytheinvention intheknowledge thatthelatter mayrefer
either toaproduct ortoaprocess. Thepatent holder mayalsoforbid anyperson toexploit theinvention
covered bythepatent forindustrial purposes without hisauthorization.
Therights ofthepatent holder extend onlytoactscarried outforindustrial orcommercial
purposes.WT/ACC/DZA/2
Page62
INAPI activity inregard tolicensing contracts, which wasintroduced andregulated under the
industrial-property legislation andtheoldexchange-control ruleshasrevealed tous,among thelicensing
contracts submitted totheinstitute forregistration, examination andopinion, certain contracts which
contained restrictive (i.e.unfair) clauses ofseveral types:
1. Commercial restrictions
Themost commonly encountered restrictions areonexport.
These are,inthemain:
- Anabsolute banonexporting;
- export permitted subject toprior approval bythepartner;
- abanonexporting tocertain countries orauthorization toexport toothers.
2. Non-competition clause
Some contracts include abanonmanufacturing andselling similar products orproducts of
thesame nature asthose covered bythecontract.
Thistypeofclause often includes abanongranting sub-licences evenonnational territory.
Such abanisaserious obstacle toattempts todisseminate techniques within thecountry in
order toboost national research anddevelopment andhelpnational economic operators toadapt to
andabsorb these techniques.
3. Tied-purchasing clauses
These clauses oblige thelicensee toobtain hisrawmaterials, spares andintermediate products
etc.exclusively from apartner previously chosen bythegrantor.
Specific cases maybecitedformarks:
- Filing ofamark inrespect ofallclasses ofproducts andservices eventhough themark
isusedonlyforcertain classes;
- territorial limitation inlicensing contracts ontheexport ofproducts tocertain countries.
2. Basic standards ofprotection
(a) Copyright andrelated rights
Question 117
InAlgeria 'snewlegislation, theeconomic rights ofauthors areprotected throughout their
lifetime andfor25years after their death. Isthiscompatible withtheTRIPS Agreement?WT/ACC/DZA/2
Page63
Reply
The25-year period islaiddown inOrder No.73-14 of3April 1973 concerning copyright.
Thistexthasbeenrecast andhasresulted inanewOrder oncopyright andneighbouring rights. This
Order hasbeenfinalized andisbeing examined bytheParliamentary body concerned withaviewto
itsadoption.
Thenewtextprovides foraprotection period forthebenefit oftheauthor 'sdependants of
50years from thebeginning ofthecalendar yearfollowing hisdeath.
Forjointworks the50-year protection period runsfrom thedeath ofthelastsurvivor ofthe
jointauthors.
Foraudiovisual, collective, pseudonymous oranonymous andphotographic works andwork
belonging totheapplied arts,the50-year protection period runsfrom publication ofthework.
With regard toaudiovisual works, theprotection period iscalculated fromthedateonwhich
thework wasmade lawfully accessible tothepublic.
These provisions areinlinewiththose oftheBerne Convention fortheprotection ofliterary
andartistic works, which WTO Member countries arerequired torespect under Article 9ofthe
TRIPS Agreement.
Question 118
How arecomputer programs anddatacompilations protected under Algerian law?
Reply
Theprotection ofcomputer programs anddatabases isexpressly provided forbythenewOrder
oncopyright andneighbouring rights.
Computer programs areprotected asliterary works.
Databases enjoy protection inthesame wayascollections oranthologies ofworks which are
original bythechoice, coordination orlayout ofthematerial.
Question 119
What provision ismade byAlgerian lawforrental rights?
Reply
Algerian legislation gives anauthor anexclusive rental rightovercopies ororiginals inthe
caseofaudiovisual works andcomputer programs.WT/ACC/DZA/2
Page64
Question 120
Arethere anyrestrictions onorexceptions totheright ofexclusivity? Canyouexplain
them?
Reply
Theexclusive right conferred onanauthor byAlgerian legislation regarding copyright is
accompanied bylimitations andexceptions.
1. Limitations permitting theunimpeded useofworks freeofcharge mainly concern thefollowing
cases:
- Private andfamily useoftheworks;
- useforthecreation ofother works suchaspastiches, parodies, caricatures, quotations,
borrowings andillustrations;
- useforteaching andtraining purposes bylibraries, documentation centres and
radio-broadcasting bodies fortheiroperating needs andbyinformation bodies inthe
exercise oftheiractivities.
2. Exceptions arecodified intheform oflegallicences andcompulsory licences.
(a) Inthecaseoflegallicences, Algerian legislation covers situations inwhich thepublic useof
aprotected work does notrequire theauthor 'spermission butresults inhisreceiving a
remuneration.
Therights covered bythistypeoflicence are:
- Therighttoreproduce awork licitly recorded onasound medium;
- therightofsound ortelevision broadcasting orcable distribution ofbroadcast works;
- theright ofcommunication tothepublic viacable distribution ofbroadcast works
performed simultaneously withbroadcasting andwithout modification tothebroadcast
programme.
These legal licences apply onlyincases where theholders oftherights arenot
represented bytheNational Copyright Office.
(b) Compulsory licences arecovered bytheprovisions favourable todeveloping countries
included intheUniversal Convention onCopyright asrevised inParis in1971 and
intheannex totheBerne Convention ontheProtection ofLiterary andArtistic Works.
Under Algerian legislation, anywork intended forschool oruniversity teaching or
forresearch maybesubject to:WT/ACC/DZA/2
Page65
- Acompulsory translation licence ifithasnotbeentranslated intotheofficial
language andpublished inAlgeria oneyearafteritsfirstpublication;
- acompulsory reproduction licence ifithasnotbeenpublished inAlgeria three
years afteritsfirstpublication inthecaseofascientific work, seven years
afteritsfirstpublication inthecaseofawork offiction andfiveyears after
firstpublication forother categories ofworks.
TheNational Copyright Office isempowered toissue these licences, withdueregard forthe
conditions andformalities laiddown intheinternational conventions ratified byAlgeria.
Compulsory translation andreproduction licences areneither transferable norexclusive. They
aregranted solely forexploitation ofthework onnational territory.
They cease tobevalid iftherights holder publishes thework concerned inAlgeria.
Question 121
DoesAlgeria grant protection ("rental rights") forcomputer software andcinematographic
works asrequired under Article 11oftheTRIPS Agreement (page 75,WT/ACC/DZA/1)?
Reply
Algerian legislation grants theauthor anexclusive righttoauthorise orprohibit theuseofhis
work, particularly intheformofrental oftheoriginal orcopies oftheaudiovisual work andcomputer
software forpersonal use.
Contrary toArticle 11oftheTRIPS Agreement, theprinciple ofexclusive rental rightconferred
ontheauthor ofanaudiovisual work orcomputer software isnotsubject toexception.
(b) Trade marks, including service marks
Question 122
Article 19.1oftheTRIPS Agreement provides that, iftheuseofamark isrequired to
maintain aregistration, theregistration maybecancelled onlyafter anuninterrupted period of
atleastthree years ofnon-use. TheAlgerian government states that"inorder toremain valid,
themark filedmust beusedduring theyearfollowing filing". Does theAlgerian government
intend tochange itslawinaccordance withtheabove-mentioned article after itjoins theWTO?
Ifnot,why?
Reply
Article 5ofOrder No.66-57 of19March 1966 onmarks wasframed inconformity withthe
provisions ofArticle 5.CoftheParis Convention fortheProtection ofIndustrial Property.
Thislatter Article doesnotinfactlaydown theduration ofnon-use ofthemark andleaves
States completely freetodetermine thisperiod, which must be"equitable".WT/ACC/DZA/2
Page66
However, anewBillonmarks hasalready beenframed totakeaccount oftherequirements
ofArticle 19oftheTRIPS Agreement andwillshortly besubmitted tothegovernment; theperiod
hasbeenextended tothree years, which brings itintolinewithWTO requirements.
Question 123
Asregards theconditions forusing trade marks, doesAlgerian legislation provide valid
reasons whyatrade mark maynotbeusedbytheowner ofthemark (e.g.import restrictions
orother conditions)?
Reply
Article 5ofOrder No.66-57 of19March 1966 ontrade marks provides that"The applicant
isrequired tousehistrade mark intheyearfollowing theapplication, except inexceptional cases and
onjustified grounds; intheevent ofnon-use ofthemark andaftertheabove period, theapplication
shallnolonger beeffective."
Exceptional cases arenotdefined andarelefttothejudgement ofthecompetent authority in
accordance withcurrent legislation.
Under Article 10oftheCustoms Code, "Aninterministerial order issued jointly bytheMinister
forFinance andMinister forTrade mayregulate orsuspend theimport orexport ofcertain goods from
ortooneormore countries."
Question 124
Article 19.1oftheTRIPS Agreement provides that, iftheuseofamark isrequired to
maintain aregistration, theregistration maybecancelled onlyafter anuninterrupted period of
atleastthree years ofnon-use. Why doesAlgeria require usewithin aperiod ofonlyoneyear
forittoremain valid (page 76)?
Reply
Article 5ofOrder No.66-57 of19March 1966onmarks wasdrafted inconformity withthe
provisions ofArticle 5.CoftheParis Convention fortheProtection ofIndustrial Property.
ThisArticle doesnotinfactfixtheduration ofnon-use ofthemarkandleaves States completely
freetodetermine thisperiod, which must be"equitable".
However, taking account oftherequirements ofArticle 19oftheTRIPS Agreement, thenew
Billonmarks which hasbeendrafted andwillbesubmitted shortly foradoption bytheappropriate
parliamentary body hasalready extended thisperiod tothree years, which willthusbring itintoline
withtherequirements oftherelevant WTO Agreement.WT/ACC/DZA/2
Page67
(c) Geographical indications, including appellations oforigin
Question 125
CantheAlgerian Government explain ingreater detail howgeographical indications are
protected?
Reply
Appellations oforigin, which must beregulated, areregistered pursuant either toAlgerian
legislation onappellations oforigin ortotheLisbon Arrangement ontheinternational registration of
appellations oforigin. They areprotected inAlgeria against anyusurpation orimitation.
Withregard tonon-regulated geographical indications, namely indications ofsource allocated
toproducts inorder toshow where theycome from, theseareprotected under thefollowing provisions:
- TheMadrid Agreement fortheRepression ofFalse orDeceptive Indications ofSource
onGoods applicable toAlgeria permits theseizure onimportation ofproducts bearing
afalseordeceptive indication ofsource;
- PenalCode:Article429ofOrderNo.75-47of17June1975containsspecificprovisions
onfraud regarding kindororigin inthesaleofgoods;
- LawNo.89-02 of7February 1989 onthegeneral rules forconsumer protection:
Article 3provides that"The product must meet thelegitimate expectations ofthe
consumer regarding particularly itsnature, kindandorigin, etc...."andrefers tothe
Penal Code asregards thesanctions applicable tothose whoviolate thisprovision;
- Article 24oftheCustoms Code onprohibitions relating tofalsedeclarations oforigin.
Question 126
DoesAlgerian legislation provide foradditional protection forwines andspirits asprovided
forinArticle 23oftheTRIPS Agreement?
Reply
Noparticular legislation exists fortheprotection ofwines andspirits; geographical indications
concerning these products areprotected inthesame wayasthose forother products under Order
No.76-65 of16July1976 onappellations oforigin.
Question 127
DoesAlgeria alsoprotect geographical indications oforigin ofagoodwhere itsreputation
(orsomeothercharacteristics)isattributabletoitsgeographicalorigin(page71,WT/ACC/DZA/1)?WT/ACC/DZA/2
Page68
Reply
Regulated appellations oforigin which areregistered pursuant either toAlgerian legislation
onappellations oforigin ortotheLisbon Arrangement applicable toAlgeria areprotected inAlgeria
against anyusurpation orimitation.
Withregard tonon-regulated geographical indications, namely indications ofsource allocated
toproducts inorder toshow where theycome from, these arethesubject ofprotection under the
following provisions:
- TheMadrid Agreement fortheRepression ofFalse orDeceptive Indications ofSource
onGoods, which permits theseizure onimportation ofproducts bearing afalseor
deceptive indication ofsource;
- thePenal Code, which contains, inArticle 429ofOrder No.75-47 of17June1975,
specific provisions onfraud withrespect tokindororigin inthesaleofgoods;
- LawNo.89-02 of7February 1989onthegeneral rulesforconsumer protection, which
provides inArticle 3that"The product mustmeetthelegitimate expectations ofthe
consumer regarding particularly itsnature, kindandorigin etc."andrefers tothePenal
Code asregards thesanctions applicable tothose whoviolate thisprovision;
- Article 24oftheCustoms Code onfalsedeclarations oforigin.
(d) Industrial designs andmodels
Question 128
Reorganize thissection byseparating theinformation.
Reply
Protection canbeextended bymeans ofapatent tonewinventions resulting fromaninventive
activity andcapable ofbeing applied attheindustrial level(Article 3ofLegislative Decree No.93-17
of7December 1993 ontheprotection ofinventions).
Aninvention mayrelate toaproduct oraprocess.
Apatent maynotbevalidly beobtained for:
- Plant varieties oranimal breeds, ortheessentially biological processes forproducing
plants oranimals (andnot"andprocesses forproducing them" asgiven onpage77
ofthememorandum onAlgeria 'sforeign trade regime);
- strains ofmicro-organisms (thereasons forexcluding themfrompatent protection are
given inthereply toquestion 131);
- foodstuffs, pharmaceuticals, cosmetics andchemicals, excluding theprocesses for
producing them.WT/ACC/DZA/2
Page69
After examination (assessment ofconformity withlegislative requirements) showing whether
theapplication forapatent conforms tointernationally recognized procedures/formalities, thepatent
(oraddition certificate possibly attached toit)isissued. Titles (forpatents andaddition certificates)
aresubsequently published intheOfficial Industrial Property Bulletin (BOPI) bytheINAPI.
TheBOPIiswidelycirculatedforconsultationpurposesamongenterprises,universities,research
centres andevenabroad.
TheBOPI isregularly sentto:
- Industrial-property bodies inthecountries oftheArab Maghreb Union (UMA);
- certain industrial-property offices ofEuropean countries, which sendustheirbulletins;
- WIPO andtheEPO.
Thevalidity ofapatent is20years, subject topayment bytheholder oftheannual taxes on
maintenance ofthepatent, theamounts ofwhich arelaiddown intheFinance Law.
Question 129
CantheAlgerian Government describe itspatent legislation?
Reply
Texts governing inventions inAlgeria -Order No.66-54 of3March 1966 on
inventor certificates andpatents;
-Legislative Decree No.93.17 of
7December 1993 ontheprotection of
inventions, repealing theprevious order;
-textsimplementing theaforementioned
Legislative Decree: inthedraftstage atthe
supervisory (MIR) leveloftheINAPI.
Titles issued -Patent ofinvention;
-addition certificate.
Duration ofprotection -20years forthepatent, from thedateof
filing oftheprotection application;
-thevalidity oftheaddition certificate ends
withthemain patent(s) towhich itrefers;
-thevalidity ofthetitles isdependent on
payment oftherelevant charges.
Subject oftheinvention -Aninvention mayrelate either toaproduct
ortoaprocess.WT/ACC/DZA/2
Page70
Patentability criteria -Novelty;
-non-obviousness (inventive activity);
-industrial applicability oftheinvention.
Patent protection doesnotcover inventions
relating to:-Plant varieties oranimal breeds, andthe
essentially biological processes for
producing plants oranimals;
-strains ofmicro-organisms;
-foodstuffs, pharmaceuticals, cosmetics and
chemicals, excluding theprocesses by
which theyareproduced.
Transfer ofrights -Bycontractual licence: anyholder ofan
application forapatent, apatent and/or an
addition certificate mayvoluntarily andby
contract waive partorallofhisrights for
thebenefit ofathirdparty.
-bycompulsory licence: from thethirdyear
afterissue ofthepatent orfrom thefourth
yearafterfiling oftheapplication, any
person mayobtain from thecompetent
court a(compulsory) exploitation licence
byreason ofthetotalorpartial failure to
exploit theinvention patented.
Acompulsory licence mayalsobeissued
when required bythepublic interest, in
accordance withregulation procedures.
Question 130
Arethere anyrestrictions onorexceptions topatents ofinvention? What arethese
exceptions andwhat aretheir legal bases?
Reply
Algerian legislation onpatents, inthiscaseLegislative Decree No.93-17 of7December 1993
ontheprotection ofinventions, hasbeenusedforthefirsttimesince 1966torepeal Order No.66-54
of1March 1966 oninventor certificates andpatents ofinventions.
Thus, patents, which were formerly reserved forforeign applicants, arehenceforth granted
toallapplicantsfortheprotectionofinventions.Moreover,previousapplicationsforinventorcertificates
filedunder the1966 legislation bynationals andforeign residents can,through theimplementation
ofArticle 37oftheaforementioned Legislative Decree No.93-17, beconverted intoapplications for
patents andbeconsidered assuch.
Anyone wishing tohaveaninvention protected inAlgeria must make aspecific application
forthispurpose totheINAPI (Article 19).WT/ACC/DZA/2
Page71
Onlyinventions which arenew,which result fromaninventive activity andwhich canbeapplied
industrially canbeprotected byapatent.
Patent protection excludes:
- Plant varieties oranimal breeds, andtheessentially biological processes forproducing
plants oranimals (andnot..."and theprocesses forproducing them" (page 77ofthe
memorandum);
- strains ofmicro-organisms;
- foodstuffs, pharmaceuticals, cosmetics andchemicals, excluding theprocesses bywhich
theyareproduced.
Theformalities forfiling applications fortheprotection ofinventions andtheprocedures for
examining theform inwhich patents andaddition certificates should beissued andprotection titles
published arecarried outinaccordance withinternational standards applied bytheWorld Intellectual
Property Organization (WIPO).
Thepatents andaddition certificates issued arepublished intheOfficial Industrial Property
Bulletin (BOPI). TheBOPI ispublished bytheINAPI andiswidely circulated forconsultation and
researchpurposestouniversities,researchcentres,publicandprivateenterprisesandinforeigncountries.
(e) Patents
Question 131
Itseems thatpart(thebeginning) ofthesection concerning patents ismissing (page 76,
WT/ACC/DZA/1).
Reply
Algerian legislation onpatents, inthiscaseLegislative Decree No.93-17 of7December 1993
ontheprotection ofinventions, hasbeenusedforthefirsttimesince 1966torepeal Order No.66-54
of1March 1966 oninventor certificates andpatents.
Thus, patents, which were formerly reserved forforeign applicants, arehenceforth granted
toallapplicantsfortheprotectionofinventions.Moreover,previousapplicationsforinventorcertificates
filedunder the1966 legislation bynationals andforeign residents can,through theimplementation
ofArticle 37oftheaforementioned Legislative Decree No.93-17, beconverted intoapplications for
patents andbeconsidered assuch.
Anyone wishing tohaveaninvention protected inAlgeria must make aspecific application
forthispurpose totheINAPI (Article 19).
Onlyinventions which arenew,which result fromaninventive activity andwhich canbeapplied
industrially canbeprotected byapatent.WT/ACC/DZA/2
Page72
Patent protection excludes:
- Plantvarieties oranimal breeds, andtheessentially biological processes forproducing
plants oranimals (andnot..."andtheprocesses forproducing them" (page 77ofthe
memorandum);
- strains ofmicro-organisms;
- foodstuffs, pharmaceuticals, cosmetics andchemicals, excluding theprocesses bywhich
theyareproduced.
Theformalities forfiling applications fortheprotection ofinventions andtheprocedures for
examining theform inwhich patents andaddition certificates should beissued andprotection titles
published arecarried outinaccordance withinternational standard applied bytheWorld Intellectual
Property Organization (WIPO).
Thepatents andaddition certificates issued arepublished intheOfficial Industrial Property
Bulletin (BOPI). TheBOPI ispublished bytheINAPI andiswidely circulated forconsultation and
researchpurposestouniversities,researchcentres,publicandprivateenterprisesandinforeigncountries.
Question 132
WhydoesAlgeriaexcludefrompatentability,micro-organisms,foodstuffs,pharmaceuticals,
cosmetics andchemicals, allofwhich cannot, under Article 27,paragraphs 2and3,ofthe
TRIPS Agreement, beexcluded (page 77,WT/ACC/DZA/1)?
Reply
1. Micro-organisms
Thereference treaty inthisconnection isthe1977 Budapest Treaty (24member States) on
theinternational recognition ofthedeposit ofmicro-organisms forthepurposes ofthepatent procedure.
ThisTreaty isopentotheStates party totheParisConvention. Theinstruments ofratification
oraccession must belodged withtheWIPO Director-General.
ThisTreatystipulatesthat"Thedisclosureoftheinventionisaconditionfortheissueofpatents."
Aninvention isnormally disclosed bymeans ofawritten description. When aninvention involves
amicro-organism, disclosure isnotpossible inwritten formbutcanbeeffected bydepositing asample
ofthemicro-organism withaspecialised institution opentothepublic.
Itissufficient toeffect adeposit ononeoccasion onlywithan"international deposit authority"
toclaim tobeprotected inallcontracting States (iftheauthority concerned states thatitrecognizes
theTreaty).
Inarecent statement, theEuropean Patents Office (EPO) stated, "The international deposit
authority isascientific institution -likea"culture collection" -capable ofconserving micro-organisms."
In1993, there were25international deposit authorities, seven intheUnited Kingdom, three
intheRussian Federation, twointheUnited States andintheRepublic ofKorea andoneinGermany,
Australia, Belgium, Bulgaria, Spain, France, Hungary, Japan, Holland, Czech Republic andSlovakia.WT/ACC/DZA/2
Page73
TheTreaty isofadvantage mainly tothedepositor:
- Whohassubmitted patent applications inseveral contracting States;
- deposit willsavehimexpense andprovide himwithgreater security.
2. Exclusion offoodstuffs, pharmaceuticals, cosmetics andchemicals from patentability
However strategic forthenational economy, sometechniques mustbeexcluded frommonopoly,
particularly when theyareheldbyforeign holders (their exclusion from patent protection canoften
beexplained inthecaseofsome ofthem, suchasplant and/or animal products, bytheirfailure to
comply withpatentability requirements).
Forfoodstuffs andpharmaceuticals, non-patentability isjustified onpublic safety andhealth
grounds, although theprocedure isnotextended totheprocesses forproducing them.
Moreover, because ofoursometimes pronounced dependence onforeign countries inthese
particulardomains,anygrantofapatentconferringaquasi-monopolyonitsholderinthedomaincovered
bytheinvention inevitably results inaconsiderable limitation intherange ofsupply inregard to
importation oftheproduct concerned.
Granting patents protecting foodstuffs andpharmaceuticals would seriously hamper thefreedom
toimport them eveniftheywere offered onconditions advantageous tothecountry.
Nevertheless, other (legal) arrangements willbeintroduced laterinorder toregulate specific
fields, suchastheutility model forpharmaceuticals andtheproducer 'scertificate forplant varieties
orproducts.
(f) Protection ofplant varieties
Question 133
TheAlgerian Government hasmentioned alistof"uncultivated plants".
- What isthelegal effect ofthislist?
- What sorts ofplants appear onthelist?
Reply
Uncultivated plant species areprotected throughout thenational territory. Preserving them
inthenatural stateisofnational importance.
Uncultivated plants include plant species which havenotbeenmodified byhuman selection
andwhich are:
- Threatened withextinction;
- areofgeneral interest inthefields ofgenetics, agronomy, economics, culture and
science.WT/ACC/DZA/2
Page74
Question 134
Who isinaposition todraw upthelistofuncultivated plant species?
Reply
Inaccordance withLawNo.83-13 onprotection oftheenvironment, thistaskdevolves on
theMinistry ofEnvironmental Protection, which currently comes under theMinistry oftheInterior,
andontheMinistry ofAgriculture andFisheries.
(g) Layout designs ofintegrated circuits
Question 135
How aretheyprotected?
Reply
Under existing Algerian legislation, integrated circuits donotenjoy protection under copyright
andneighbouring rights because theyarenotregarded asliterary andartistic works.
(h) Requirements concerning undisclosed information, including trade secrets andtestdata
Question 136
Who authorizes anemployee tocommunicate information ontrade secrets?
Reply
Under nocircumstances isanemployee empowered tocommunicate information relating to
anenterprise 'strade secrets. Thisresponsibility belongs solely totheheadoftheenterprise.
TheAlgerian Penal Code provides forpenalties against anyperson committing thisoffence
under itsprovisions onthedisclosure oftrade secrets.
Question 137
Doesprotection existforundisclosed testsorother datainthecontext oftheauthorization
toplacepharmaceuticalproductsandagriculturalchemicalsonthemarket?Howissuchprotection
provided andonwhat legal basis?
Reply
Noprotection relating toundisclosed testsexists atpresent. Thisinnowayprecludes such
protection being introduced inthefuture ifnecessary, inaccordance withtherelevant international
practices.
Question 138
Algeriaappearstoimposeablanketprohibitiononthedisclosureofconfidentialinformation
(page 77,WT/ACC/DZA/1). Would itbepossible tohavedetails onhowitisintended tocomply
withtheobligations ofArticle 39oftheTRIPS Agreement?WT/ACC/DZA/2
Page75
Reply
Confidential information suchasmanufacturing ortrade secrets arenotexpressly protected
bytheParis Convention; legislation onindustrial-property protection hastherefore notmade any
particular provision inthisrespect.
However,underArticle10bisofthisconvention,anyactofcompetitioncontrarytofairindustrial
orcommercial practice must beprohibited.
Article 302oftheAlgerian Penal Code provides thatanyperson whoworks inanenterprise
andwhodiscloses orattempts todisclose theenterprise 'ssecrets toforeigners orAlgerians shallbe
punished by,interalia,imprisonment orafine.
Suchconfidentialinformationisthesubjectofspecificclausesinthecontractsbindingthenatural
orlegalpersons concerned ontheoccasion oftransfers oftechnology.
Ingeneral, thecompetent services recommend thepersons concerned towriteextremely precise
clauses intotheirlicensing contracts ortechnology-transfer agreements inorder toprevent thedisclosure
ofsuchinformation.
4. Means ofenforcing observance ofrights
Question 139
What procedures andsanctions areapplied under criminal lawintheevent ofanoffence
orofviolation ofintellectual property rights?
Reply
(a) Regarding copyright andneighbouring rights:
Algerian legislation provides forcriminal sanctions intheevent ofcounterfeiting ofawork
protected bycopyright orofaservice protected under neighbouring rights (Articles 147-151 ofthe
draftOrder oncopyright andneighbouring rights).
Acounterfeiter, aperson whoassists withcounterfeiting andaperson whodeliberately refuses
topaythefeeduetotheowner oftherights areliable toaprison sentence offromsixmonths tothree
years andafineranging from DA100,000 toDA500,000.
Forasecond offence, these penalties aredoubled andtheestablishments operated bythe
counterfeiter andhisaccomplices maybetemporarily closed foronetosixmonths orpermanently
closed.
Inalltheabove-mentionedcasesofcounterfeiting,theguiltypartiesaresentencedtoconfiscation
oftheproceeds resulting fromtheillicit exploitation oftheworks andoftheequipment specially installed
forsuchexploitation, aswellasofallcounterfeit objects andcopies.
Thecourt mayalsoorder thatthejudgement should bepublished innewspapers andthatthese
should bedisplayed attheexpense oftheoffenders.
Thecriminal procedures applicable intheevent ofviolation ofcopyright orneighbouring rights
fallunder theappropriate common law.WT/ACC/DZA/2
Page76
Theowner oftherights harmed byacounterfeit orhisrepresentatives mayreferthematter
tothecriminal court andfileacivilaction inaccordance withtheprovisions ofthesupplemented and
amended Order No.66-155 of8June1966 ontheCode ofCriminal Procedure.
(b) Regarding marks:
Algerian legislation gives theowner ofanindustrial-property righttheopportunity oftaking
action either before thecivilcourt orbefore thecriminal court inorder tobring about anendtothe
infringements ofhisright; "civil actions relating tomarks shallbebrought before thecourts. Inthe
event ofcriminal proceedings, thecompetent court shallruleontheplearelating toownership ofthe
mark" (Article 38ofOrder No.66-57 onmarks).
Article 28states that"The following persons shall bepunished byafineofDA1,000 to
DA20,000 andbyimprisonment ofthreemonths tothreeyears, orbyonlyoneofthese twopenalties:
- Those whohavecounterfeited amark orusedacounterfeit mark;
- those whohavefraudulently affixed amark belonging tosomeone elsetotheirproducts
ortoproducts traded bythem;
- those whohaveknowingly soldorputupforsaleoneormore products bearing a
counterfeit orfraudulently affixed mark".
Article 29states that"The following persons shall bepunished byafineofDA1,000 to
DA15,000 andbyimprisonment ofonemonth tooneyear, orbyonlyoneofthetwopenalties:
- Those who, although notcounterfeiting amark, haveimitated itinafraudulent way
soastodeceive thebuyer orhavemade useofafraudulently imitated mark;
- those whohavemade useofamark bearing information likely todeceive thebuyer
astothenature oftheproduct;
- those whohaveknowingly soldorputupforsaleoneormore products bearing amark
thathasbeenfraudulently imitated orthatcarries information likely todeceive thebuyer
astothenature oftheproduct".
Article30providesthat"ThefollowingpersonsshallbepunishedbyafinerangingfromDA500
toDA7,500 andimprisonment ranging from15daystosixmonths, orbyonlyoneofthetwopenalties:
- Those whohave notaffixed totheir products amark which hasbeen declared
compulsory;
- those whohaveknowingly soldorputupforsaleoneormore products notbearing
themark which hasbeendeclared compulsory forthistypeofproduct;
- those whohaveinfringed theprovisions ofArticles 9and10".
Article 32provides forthepenalties tobedoubled intheevent ofsubsequent offences orwhen
therights ofState sectors havebeenharmed.
Article 35states that"Inaddition tothepenalties laiddown inArticles 28,29and30,thecourt
mayorder:WT/ACC/DZA/2
Page77
- Display ofthejudgement anditspublication inthepress attheexpense oftheguilty
parties;
- confiscation oftheproducts andinstruments involved intheoffence;
- destruction oftheplates andmodels ofthemark concerned, inallcases".
Criminal sanctions suchasfines orimprisonment maybesupplemented bycivilpenalties
(deprivation ofelectoral rights, award ofdamages pursuant toArticles 34and39).
With regard toestablishment ofproof ofthedifferent factsconnected withusurpation ofthe
mark, thelegislation onmarks provides foraspecial procedure inArticle 38,asfollows:
"Under anorder ofthepresident ofthecourt, theowner ofamark mayarrange, withthe
possible assistance ofanexpert, foradetailed description, withorwithout seizure, ofthe
products which healleges havebeenmarked tohisdetriment."
TheOrder isissued onrequest andfollowing proof thatthemark hasbeenregistered.
When seizure isrequired, thecourt maydemand thatthepetitioner provide security. Such
security isalways required offoreigners, whoarerequired todeposit it.
Theholdersoftheobjectsdescribedorseizedaregivenacopyoftheorderand,wherenecessary,
oftheactrecording deposit ofthesecurity onpainofvoidance oftheclaim andthepayment ofdamages.
(c) Regarding designs andmodels
Similar provisions havebeenadopted inorder tosanction anyinfringement oftheowner 's
rights (Article 23-28 ofOrder No.66-86 ondesigns).
(d) Regarding appellations oforigin
Articles 28and29ofOrder No.76-65 onappellations oforigin determine theoffence and
permit anyperson giving proof ofalegitimate interest toobtain alegalorder tobring anendtothe
illicit useofaregistered appellation oforigin ortohaveitsuseforbidden ifthisisimminent.
Thepenalties arelaiddown inArticle 30without prejudice tothesanctions provided bythe
lawsandregulations onthepunishment offraud.
Furthermore, attheexpense oftheguilty party, thecourt mayorder thejudgement tobe
displayed insuchplaces asitwilldecide andtobewholly orpartly included inthose newspapers which
itselects.
Question 140
Algeria hassupplied very little information onprovisional measures (page 79,
WT/ACC/DZA/1). Would itbepossible tohave further details ontheimplementation (actual
orplanned) oftheobligations provided forinArticle 50oftheTRIPS Agreement?
Reply
1. Regarding marks andmodels:WT/ACC/DZA/2
Page78
Order No.66-57 of19March 1996onmarks provides inArticles 38and39forthefollowing
measures:
"Under anorder ofthepresident ofthecourt, theowner ofamark mayarrange forthecarrying
out,withthepossible assistance ofanexpert, ofadetailed description, withorwithout seizure,
oftheproducts which healleges havebeenmarked tohisdetriment.
TheOrder isissued onrequest andafterproof thatthemark hasbeenregistered.
When seizure isrequired, thecourt maydemand thatthepetitioner provide security. Such
security isalways required offoreigners, whoarerequired todeposit it.
Acopy oftheOrder isgiven totheholders oftheobjects described orseized, onpainof
voidance andpayment ofdamages." (Article 38).
"Should thepetitioner failtoappeal through either thecivilorcriminal courts within aperiod
ofamonth, thedescription orseizure shallbeautomatically nullandvoid, without prejudice
toanydamages thatmaybeclaimed." (Article 39).
Withregardtomodels,similarprovisionsarelaiddowninArticles26and27ofOrderNo.66-86
of28April 1966 ondesigns andmodels, asfollows:
"The injured party mayarrange foranysworn agent tocarry outadetailed description, with
orwithout seizure, oftheobjects orinstruments mentioned inArticle 24under anorder issued
bythepresident ofthecourt within whose jurisdiction theoperations mustbeperformed. The
Order isissued onrequest andafterproof ofdeposit hasbeenprovided.
ThePresident isempowered todemand thatthepetitioner provide security, which thepetitioner
must deposit before seizure.
Acopy oftheorder must beprovided oftheholders totheobjects described orseized, on
painofvoidance andpayment ofdamages" (Article 26).
"Should thepetitioner failtorefer thematter tothecompetent court within amonth, the
description andseizure shallbecome nullandvoid. Damages maybeclaimed andtheobjects
seized must bereturned" (Article 27).
Theprovisions ofArticle 50oftheTRIPS Agreement arethusobserved inpractice asregards
theprocedure andmaximum time-period of31calendar days.
2. Regarding copyright andneighbouring rights:
Algerianlegislationoncopyrightandneighbouringrightsprovidesforinterimprotectivemeasures
forthesame objectives asthose covered byArticle 50oftheTRIPS Agreement.
Theinjured owner oftherights mayrequest thecourt toimplement interim protective measures
designed toimpede theimminent infringement ofhisrights ortobring anendtotheinfringement noted.
Inaddition, when theinfringement ofrights isofficially noted byofficers oftheCriminal
InvestigationDepartmentorswornagentsoftheNationalOfficeforCopyrightandNeighbouringRights,
thesepersons areempowered towithdraw thecounterfeit copies orexamples asaprecautionary measure.WT/ACC/DZA/2
Page79
Insuchacase, thematter mustbeimmediately referred totheappropriate court, which must
giveitsjudgement within three daysfrom referral.
Question 141
There isnomention ofanyprovision oncompulsory licensing. Doesthismean thatAlgeria
doesnotintend tointroduce compulsory licensing initslaw,orisitmerely thatthisiscovered
bythemissing partofthedocument? Ifcompulsory licensing were introduced, would itcomply
withtheobligations ofArticle 31oftheTRIPS Agreement?
Reply
Further totheproposed replies toquestions 116,128and129ontheindustrial-property aspects
ofpatents ofinvention, itshould bemade clearthatunder Article 12ofLegislative Decree No.93-17
of7December 1993therights resulting fromapatent extend onlytoactsaccomplished forindustrial
orcommercial purposes.
Noprohibition (resulting fromtherights ofthepatentee) maybeapplied toaperson whouses
thepatented invention forscientific research.
Ontheother hand, therights conferred byanyoneofthetitles (patent, addition certificate)
maybewholly orpartly transferred forthebenefit ofthirdparties.
Moreover, anyholder ofapatent may, bymeans ofacontract, authorize another person to
exploit hisinvention.
However, acompulsory licence, which fallsoutside thecontrol ofthepatentee, maybegranted
iftheinvention isnotexploited orinsufficiently exploited within theprescribed periods andparticularly
inthefollowing cases:
- Thepatentedinventionwhichcouldbeexploitedinthecountryisinadequatelyexploited;
- demand forthepatented product isnotsatisfied inthecountry onequitable terms;
- exploitation oftheinvention inAlgeria isimpeded orprevented bythefactthatthe
patented product isimported;
- refusal bythepatent holder togrant licences onequitable terms;
- asubstantial market forexport ofthepatented product manufactured inthecountry
isnotsupplied;
- theestablishment ordevelopment ofcommercial orindustrial activities inthecountry
issubstantially impeded.
Acompulsory licence mayalsobegranted when required bythepublic interest.
Nevertheless, inallcases theapplicant foracompulsory licence must provide proof thathe
haspreviously applied tothepatent holder andhasbeenunable toobtain acontractual licence from
himonequitable terms.
Acompulsory licence canbegranted onlyonapaying basis.WT/ACC/DZA/2
Page80
Some oftheseprovisions andmeasures arestillunder study orinthedraftstageandaretherefore
liable toamendment and/or addition.
Question 142
Many ofthelawslisted insection 5(pages 80-82, WT/ACC/DZA/1) came intoforce some
years ago(in1966 or1973, forexample). Subsequent amendment oradditions arementioned
forsome ofthem. Where noamendment oraddition ismentioned, doesthismean thattheyhave
remained intheir original form, andifso,howaretheycompatible withtheTRIPS Agreement?
Reply
1. Regarding marks, designs andmodels:
Algerianlegislationonmarks,designsandmodelsdatesbackto1966whereasthatonappellations
oforigin dates backto1976.
These three setsoflegislation tookaccount oftheobligations oftheParis Convention forthe
Protection ofIndustrial Property, which itself hasremained virtually unchanged since 1967, thedate
ofthelastAct(Stockholm Act)towhich Algeria isparty.
TheTRIPS Agreement isalsobased onthese same provisions oftheParis Convention and
clarifies them where necessary.
However, itshould bementioned thatabillanditsimplementing decree havealready been
drafted asregards marks andwillbeadopted bytheAlgerian Government wellbefore thefive-year
period laiddown bytheWTO expires.
With regard tomodels andappellations ororigin, these textsrequire updating, eventhough
intheirpresent form theyarenotcontrary toWTO requirements.
There isthusnobasic obstacle toalltheabove-mentioned textsbeing adapted andharmonized
within thefiveyears laiddown bytheWTO.
2. Regarding copyright:
Order No.73-14 of3April 1973oncopyright hasundergone recasting, which resulted inthe
adoption early in1997 ofnewlegalarrangements governing copyright andneighbouring rights.
Theprovisions ofthisnewlegislation areinconformity withthose oftheBerne Convention
fortheprotection ofliterary andartistic works which WTO Member countries arerequired toobserve.
VI. TRADE-RELATED SERVICES REGIME
1. General
Transport sector
Question 143
State monopolies currently existinthemaritime, airandrailtransport sectors anditis
noted onpage 84(WT/ACC/DZA/1) thatthenetwork concessions already made inthese sectors
have gone toState enterprises.WT/ACC/DZA/2
Page81
- What typeoflegislation isplanned withaviewtocompetition inthese sectors and
inassociated activities?
- What istheplanforadopting itandbringing itintoforce?
Reply
Theprovisions establishing competition inthemaritime, portandairtransport sectors andtheir
related activities arelegislative innature.
These provisions, which apply theprinciple ofliberalization, define thegeneral rules and
framework concerning demonopolization, theopening upofactivities tonational and/or foreign
individuals andcorporations governed byAlgerian lawand,consequently, competition between air,
maritime andportactivities andservices ofacommercial nature. Itshould benoted thatair,maritime
andportservices willbeoperated onthebasisofconcessions andwithproper heedfortheconditions
setoutinthecontract specifications.
Withregard torailway activity, thissubsector iscurrently excluded fromcompetition because
itisstillaState monopoly.
Thedeadline foradopting andimplementing these provisions isthebeginning of1997.
With regard toAlgeria 'scommitments toputtransport liberalization intopractice, these can
besummarized asfollows:
- Theliberalization ofpassenger andgoods transport byroaddates backto1988 (Law
No.88-17 of10May1988);
- theamendedair-transportlegislationwasadoptedinNovember1996bytheGovernment
andsubmitted toParliament foradoption;
- bilateral maritime agreements establishing unimpeded freedom ofaccess tomaritime
traffic.
Question 144
Itismentioned thatAlgeria acceded totheTIRConvention in1989. What conditions
areapplied toforeign hauliers whoseekafoothold intheAlgerian road transport market -
independently orinassociation withnational operators? Aretheyallowed tooperate onthesame
conditions asAlgerian operators?
Reply
TheTIRConvention isacustoms agreement designed tofacilitate thetransit operations of
road-haulage vehicles atborder posts.
Themovement andtransit offoreign vehicles inAlgeria aregoverned bybilateral conventions.
Intheabsence ofthese, national legislation applies onAlgerian territory (e.g.transit and/or movement
authorization).WT/ACC/DZA/2
Page82
Foreigners areallowed tocarry outroad-haulage operations onthesameconditions asAlgerian
nationals provided theirbusinesses areconsidered tobegoverned byAlgerian law(registered office
inAlgeria, vehicles registered inAlgeria).
Asregards thepossibility offoreigners establishing themselves ontheAlgerian market for
roadhaulage andrelated activities, foreigners mustcomply withthefollowing conditions andprovisions:
- TheInvestment Code;
- LawNo.88-17 of10May1988ontheorientation andorganization ofsurface transport;
and
- Executive Decree No.94-231 of17July1994 laying down theconditions and
procedures forexercising theprofessions offreight broker androad-haulage agent and
DecreeNo.91-195of1June1991layingdowntheconditionsforcarryingoutpassenger
andgoods road-transport activities.
Telecommunications
Question 145
Whattelecommunicationsservicesareopentotheprivatesectorandunderwhatconditions?
What isthesituation regarding telephony, mobile telecommunications andadded-value
services?
Reply
Value-added services areopenandarenotsubject toanyrestriction.
Commercial voice telephony, bothfixedandmobile, isareserved service andisthusoperated
exclusively bytheState.
Question 146
What exactly doesthetelephone installation include?
Reply
Theprivate sector participates intheconstruction oflong-distance andlocallinks, including
thedistribution andconnection oftelephone subscribers.
Question 147
What aspects ofthepostal service areopen totheprivate sector? Does postal transport
include thecourier services?
Reply
Theprivate sector isauthorized tocollect, carry anddeliver international high-speed mailto
andfrom foreign countries.WT/ACC/DZA/2
Page83
Thecarriage oftelegrams includes themailservices.
Question 148
Canmailbecollected anddelivered directly attheclients 'premises?
Reply
Direct collection anddelivery isauthorized forusers ofhigh-speed international mail(seereply
toquestion 147).
Question 149
Telecommunications (page 84,WT/ACC/DZA/1); arethere plans toopen the
telecommunications market totheprivate sector, andifso,what would bethetimetable?
Reply
1. Asregards installation:
Theprivate sector already takes partinthework:
- Oflaying wiring andlong-distance andlocalcable networks, including thedistribution
andconnection ofsubscribers;
- installing public telephone exchanges;
- installing andmaintaining private telephone exchanges.
2. Atcommercial level:
Theprivate sector markets:
- Private telephone exchanges (PABX);
- telephone terminals, including themobile radio telephone network.
3. Atindustrial level:
Intheframework ofamixed company withforeign capital, theprivate sector takes partin
themanufacture ofpublic digital telephone exchanges ofallcapacities.
4. Atoperating level:
ThePostal andTelecommunications Administration authorizes "private law"persons tooperate
terminal points inthepublic telecommunications network.
Added-value services areopenandarenotsubject toanyrestriction.WT/ACC/DZA/2
Page84
Tourism
Question 150
Itisnoted thatcertain tourist businesses andactivities areregulated, travel andtourist
agencies included.
Canyousupply acomplete listofthese businesses andactivities andindicate foreach
business thenature oftheconditions forobtaining authorization.
Reply
Regulated activities inthetourism sector concern:
1. Travel agencies: approval toexercise thisactivity mustbeobtained bothbynationals
andbyforeigners.
Approval isissued bycentral government under LawNo.90-05 ontourism andtravel
agencies which introduces, interalia,anationality precondition fortheexercise of
thisactivity.
However, ithasbeenproposed thatthisprecondition belifted under alaw,nowbeing
finalized, amending andsupplementing theabove LawNo.90-05.
2. Exercise oftheactivity ofmanager ofatourist establishment supplying accommodation
services.
Thisactivity issubject toapproval issued bycentral government under theMinisterial
Order of7September 1992 ontheapproval ofmanagers oftourism establishments
supplying accommodation services, which states inArticle 1:
"Theapprovalofmanagersoftourismestablishmentssupplyingaccommodationservices
introduced byArticle 9ofExecutive Decree No.92.101 of3March 1992 amending
andsupplementing Decree No.85-12 of26February 1985 defining andorganizing
hotelandtourist activities isissued bytheMinistry forTourism andCraft Industries."
3. Profession oftourist guide. Theexercise ofthisprofession isgoverned byExecutive
Decree No.92-121 of14March 1992 regulating theprofession oftourist guide.
Question 151
Inwhat fieldisprofessional competence tested inthissector, andisauthorization granted
toforeigners onthesame conditions asAlgerian nationals?
Reply
Professional competence istested inthehotel field, inwhich authorizations havebeenissued
toforeigners tocarry outthefunction of"manager" onthesame conditions asforAlgerian nationals.WT/ACC/DZA/2
Page85
Financial services/banking operations
Question 152
Giveinformation about legislation concerning market access inthissector. Canyougive
further details about Regulations 91-19, 92-05 and93-01 andforward them totheWTO?
Reply
Thesetting upofbanks, financial institutions andbranches offoreign banks inAlgeria is
governed byLawNo.90-10 of10April 1990 onmoney andcredit, aswellasbyregulations issued
bytheMoney andCredit Council further tothatlaw.
Thesetting-up inAlgeria oftheabove-mentioned financial institutions is,infact,subject to
twoimportant conditions relating to:
- Theminimum subscribed capital ofthese institutions (Regulation No.90-01 of
4July1990);
- thegood repute, good character andprofessionalism ofthefounder members and
managerial staffofthese institutions (Regulation No.92-05 of22March 1992).
Inthisconnection, Regulation No.93-01 of3January 1993 andInstruction No.06-96 of
22October 1996laydown theconditions forestablishing banks andfinancial institutions andforsetting
upbranches offoreign financial institutions.
Banks andfinancial institutions governed byAlgerian lawmustbeincorporated intheform
ofjoint-stock companies. There isnoceiling ontheparticipation ofnon-residents inthecapital of
financial institutions. Thelatter maybewholly composed ofnon-residents ormaybeformed in
association between residents andnon-residents inaratiofreely decided onbythepartners.
Theminimum authorized capital which mustbesubscribed bybanks andfinancial institutions
issetat:
- DA500million forbanks;
- DA100million forfinancial institutions.
Theminimum authorized capital thussetmust bereleased uptoatleast25percenton
incorporation ofthecompany andwholly released notlaterthantheendofthefifthyearafterapproval
wasgranted.
Inthelightofexisting prudential rules(Regulations No.91-09 of14August 1991andNo.95-04
of20April 1995), theminimum capital should beconsidered inconjunction withtheprospects for
growth intheactivity ofthebankorfinancial institution. Bywayofillustration, ownfunds should
represent alevelofriskcoverage ofnotlessthan8percent.
Banks andfinancial institutions whose registered office isinaforeign country arerequired
toallocate asumtotheirbranches inAlgeria atleastequal totheminimum capital required ofsimilar
banks andfinancial institutions coming under Algerian law.
Abankorfinancial institution maystartitsactivities provided itobtains:WT/ACC/DZA/2
Page86
- Anincorporation authorization issued bytheMoney andCredit Council;
- andapproval given bytheGovernor oftheBank ofAlgeria.
Thesetting upofbranches offoreign financial institutions issubject tothesame procedure
asforAlgerian financial institutions. Therequest forauthorization toestablish abank orfinancial
institution andtosetupabranch ofaforeign bankorfinancial institution mustbesupported byadossier
containing information on:
- Thework programme;
- thefinancial andtechnical means proposed;
- theoccupation andgood repute ofshareholders andtheirpossible guarantors;
- thelistoftheprincipal managers;
- thedraftstatutes ifabankorfinancial institution isbeing setup;
- thestatutes ofthebankandfinancial institution ifitisproposed toopenabranch of
aforeign bankorfinancial institution;
- theinternal organization.
Thedecision concerning therequest forauthorization ismade known totheapplicant nolater
thantwomonths afterreception ofaproperly completed dossier. Anappeal canbemade against a
refusal togrant authorization.
Abankorfinancial institution andabranch ofabankorfinancial institution which hasobtained
authorization isrequired torequest theabove-mentioned approval oftheGovernor oftheBankofAlgeria
within aperiod notexceeding 12months. Allbanking transactions areprohibited untilapproval is
obtained.
Approval isgranted bydecision oftheGovernor oftheBank ofAlgeria iftheapplicant has
fulfilled alltheconditions required forincorporation orestablishment depending onthecase, as
determined byexisting lawsandregulations andanyspecial conditions attached totheauthorization.
Approval doesnotqualify therecipient toactasanapproved intermediary fortransactions
withforeign countries. Obtaining thiscapacity isgoverned bytheprovisions ofRegulation No.92-04
of22March 1992 mentioned above.
TheLawonMoney andCredit anditsimplementing textsthusestablish:
- Freedom forbanks andfinancial institutions tobesetupbyresident andnon-resident
promoters alone orinassociation within mixed enterprises;
- freedom tosetupbranches offoreign financial institutions;
- equality oftreatment between nationals andforeigners.
Thelawinfactaccords equal treatment toresidents andnon-residents regardless oftheir
nationality.WT/ACC/DZA/2
Page87
BytheendofDecember 1996authorization hadbeenissued fortheincorporation ofonlyone
financial institution, theUnion Bank, onthebasis ofoneresident andonenon-resident partner.
Withregard tooperations byforeign banks inAlgeria, noopening ofabranch hasbeenrecorded
todate.Nevertheless, certain foreign financial institutions haveopened representation offices inAlgiers.
These aretheNational Bank ofParis, Crédit Lyonnais, Société Générale, City Bank andthe
Arab Banking Corporation.
Theopening ofrepresentation offices isalsosubject toauthorization bytheMoney andCredit
Council (Regulation No.91-10 of14August 1991).
Regulations Nos.90-01, 92-05 and93-01 andtheinstructions onimplementing thelast-named
areattached hereto.
Question 153
Itisunderstood thatforeign banks wishing toestablish themselves inAlgeria have not
noted theexistence ofanydiscriminatory measures. CanAlgeria confirm thatthisisactually
thecaseandthatnoother condition (e.g.capitalization) islaiddown?
Reply
Thelegalandregulatory framework governing theconditions ofestablishment ofbanks and
financial institutions (BFI) orofforeign BFIisbased onthenon-discriminatory treatment offoreign
banks, which enjoy thesame conditions asthose applied toAlgerian banks.
Algerian legislation makes nodistinction astotheorigin offunds: banks authorized tooperate
inAlgeria become Algerian inthattheyaresubject toAlgerian common law.
Inother words, theexisting legalandregulatory framework innocasemakes theoperations
offoreign banks more difficult orcostly thanforAlgerian banks.
Separate capitalization isnecessary forbranches ofabankorfinancial institution. Thelaw
putsbranches ofnon-resident financial institutions onthesamefooting asresident financial institutions.
Question 154
What criteria aretaken intoaccount bytheMoney andCredit Council when itexamines
arequest byaforeign bank wishing toestablish itself inAlgeria?
Reply
Theinformation required ofaresident ornon-resident fortheassessment ofabankproject
isthesame. Itconcerns, among other things, theoccupation andgood repute oftheinitiators and
managerial staffandtheparameters resulting from thefeasibility study.
Question 155
Banks (page 85,WT/ACC/DZA/1). Isitalsopossible toestablish subsidiaries?WT/ACC/DZA/2
Page88
Reply
Theestablishment ofsubsidiaries isalsopermitted bythelaw.Thebanking regulations relating
toapproval make nodistinction between branches andsubsidiaries.
Question 156
Canbanking services besupplied onacross-border basis? Ifso,which?
Reply
Asthecross-border basis isunderstood asasituation inwhich thesupplier isnotpresent on
theterritory ofthemember where theservice isprovided, certain banking services maybeprovided
according tothismethod.
Theservices concerned relate tointernational banking activity: foreign financing, opening
ofdocumentary transactions (documentary credit, documentary rebate), guarantee operations (sureties,
guarantees) inaddition tocash-management transactions forAlgerian commercial banks.
Question 157
Inthecaseofbank branch offices, isthecapital oftheparent establishment recognized
ormust thebranch office have itsownseparate capitalization?
Reply
Separate capitalization isnecessary forthebranch office ofabank orfinancial institution.
Thelawplaces branch offices ofnon-resident financial institutions onthesame footing asresident
financial institutions.
Inthisconnection, theminimum authorized capital tobesubscribed issetat:
- DA500million forforeign banks andbranch offices; and
- DA100million forforeign financial institutions andtheirbranch offices.
Question 158
Dolegislative orother measures make theactivities offoreign banks more difficult or
costly thanforAlgerian banks?
Reply
Thelegalandregulatory arrangements governing theconditions fortheestablishment offoreign
banksandfinancialinstitutions(BFI)orbranchesofforeignBFIisbasedonnon-discriminatorytreatment
offoreign banks. These enjoy thesame conditions asthose applied toAlgerian banks.
Algerian lawmakes nodistinction astotheorigin offunds: banks authorized toexercise their
activities inAlgeria become Algerian inthattheyaresubject toAlgerian common law.
Inother words, theexisting legalandregulatory arrangements innocasemake theactivities
offoreign banks more difficult orcostly thanforAlgerian banks.WT/ACC/DZA/2
Page89
Insurance
Question 159
Explain thecriteria followed bytheMinistry ofFinance inapproving insurance companies.
Arethese criteria applied tonationals andforeigners inanidentical manner?
Reply
Theconditions forestablishing insurance companies arelaiddown by:
- LawNo.95-07 of25January 1995 (Articles 204,215etseq.);
- Decree No.95-344 of3August 1996 determining theconditions andprocedures for
granting approval toinsurance and/or reinsurance companies.
Essentially these conditions relate to:
- Theform ofthecompany;
- theformation fundorauthorized capital;
- approval.
(a) Form ofcompany:
Article 215ofLawNo.95-07 provides fortwoforms:
- joint-stock company;
- mutual company.
(b) Authorized capital:
Decree No.95-344 fixesthecapital according totheform ofthecompany andthebranches
ofactivity chosen.
(c) Approval:
Theconditions arelaiddown inArticles 2-10ofDecree No.96-267 of3August 1996.
TheDecree makes nodistinction between national andforeign companies. There areno
discriminatory provisions inanyofthelegislation orregulations.
Theonlyexception appears inArticle 12ofDecree No.96-267 above, which concerns foreign
companies which operated inAlgeria prior toOrder No.66-127 of27May1996. Before receiving
approval, these arerequired tobalance theircommitments.
Question 160
Insurance (page 85). Caninsurance services (inparticular, reinsurance) beoffered on
across-border basis?WT/ACC/DZA/2
Page90
Reply
Reinsurance services canbeoffered onacross-border basis onthefollowing conditions:
- Observance ofthelegal cession provided forinArticle 208ofOrder No.95.07 of
25January 1995 oninsurance andDecree No.95.409 of9December 1995 fixing
minimum ratesandthebeneficiary ofcompulsory cession (Articles 1-4);
- Approved insurance and/or reinsurance companies maycarryoutcession oracceptance
transactions onlywithspecified enterprises orenterprises belonging toaparticular
country, onthebasis ofalistdrawn upbythecompetent Algerian administration
(Article 211ofOrder No.95.07 of25January 1995).
Question 161
Does thefactthatcompanies "may befreely established" include thepossibility of
establishing branches, orareonlysubsidiaries allowed?
Reply
Article 215ofOrder No.95.07 of25January 1995 states thatinsurance and/or reinsurance
companies must begoverned byAlgerian lawandtakeoneofthetwofollowing forms:
- Joint-stock company;
- mutual company.
Abranch isacommercial establishment setupbyanenterprise orcompany which enjoys
autonomy withrespect tothemain enterprise orcompany without being legally distinct from it.
Abranch cantherefore onlybesetupbyaproperly approved Algerian company having one
oftheabove-mentioned forms.
Subsidiaries areallowed.
Question 162
Dolegislative orother measures make theactivities offoreign insurance companies more
difficult orcostly thanforAlgerian insurance companies?
Reply
Foreign andAlgerian enterprises aresubject tosimilar obligations.
Theactivities ofonecategory aretherefore nomore difficult orcostly thantheactivities of
theother.
There arenodiscriminatory provisions inanylawsorregulations.WT/ACC/DZA/2
Page91
Legal services
Question 163
Isthere asystem inAlgeria inwhich foreign lawyers areallowed toprovide legalservices?
Ifthere issuchasystem, could Algeria explain therequirements forforeign lawyers toprovide
legalservices, thescope ofthelegalservices allowed andthelimitations onforeign lawyers 'legal
activities?
Reply
Aforeign lawyer ofanynationality isallowed toexercise hisprofession inAlgeria inconnection
withacasetowhich hehasbeenproperly appointed. Inthiscapacity hecanrepresent, assist anddefend
hisclient inanyAlgerian court.
Theprocedureconcernedisquitesimple,amountingtoobtainingauthorizationfromthePresident
ofthelocalBarandchoosingdomicileonthepremisesofacolleaguewhopractiseswithinthejurisdiction
ofthecourt. Thisauthorization canbewithdrawn onlyinthesame way.
Theconditions under which aforeign lawyer maypractise inAlgeria arelaiddown inArticle 6
ofLawNo.91/04 of18January 1991 onorganization oftheprofession oflawyer.
ThatArticle states that"Except where otherwise provided byinternational conventions and
professional customs, alawyer belonging toaforeign Barmayassist, defend orrepresent theparties
before anAlgerian court afterreceiving special authorization forthispurpose from thePresident of
thelocalBarandafterchoosing asdomicile theoffice ofalawyer practising within thejurisdiction
ofthecourt. Thisauthorization mayberevoked inthesame wayatanypoint intheprocedure."
Itshould benoted thatunder legalconventions concluded between Algeria andcertain ofits
partners, forexample Tunisia andFrance, Tunisian orFrench lawyers maypractise freely inAlgeria
provided onlythattheychoose asdomicile theoffice ofalawyer practising within thejurisdiction of
thecompetent court.
Furthermore, under suchbilateral agreements aforeign lawyer mayasktobeenrolled inone
oftheAlgerian Barswithaviewtopractising hisprofession therein.
Business services
Question 164
Inthecontext ofbusiness services, canyouspecify theservices which aresubject to
restrictions andexplain theconditions applied inorder toguarantee standards ofqualification
andprofessional competence?
Reply
Inthefieldofinsurance:
Theactivities subject torestrictions concern:
- lossadjusters;
- insurance intermediaries.WT/ACC/DZA/2
Page92
I. PROFESSION OFLOSS ADJUSTER
Thepractice oftheprofession oflossadjuster isprovided forinArticles 269-273 ofOrder
No.95-07 of25January 1995andissubject toapproval inaccordance withDecree No.96-46 which
laysdown theconditions forgranting suchapproval.
Theprofession isopentonatural andlegalpersons. Inorder toreceive approval, theapplicant
must fulfil thefollowing conditions:
- Nationality (Algerian);
- age;
- professional qualification.
Hemust attach thefollowing documents tohisapplication:
- Nationality certificate;
- birthcertificate;
- copies ofqualifications, diplomas oranyother document relating totheproposed
speciality andhisprofessional experience.
With regard tolegalpersons, these must begoverned byAlgerian lawandsubmit adossier
containing interaliathestaffrules, qualifications anddiplomas proving thequalifications ofthestaff
involved.
II. INSURANCE INTERMEDIARIES
Theprofessions ofbroker andgeneral agent arecovered byArticles 252-268 ofOrder No.95-07
of25January 1995 oninsurance andaresubject tothegranting ofprior approval inaccordance with
Decree No.95-340 of30October 1995 (Articles 4-21).
While abroker isapproved byorder oftheMinister forFinance, aninsurance agent isapproved
bytheinsurance company.
1. Broker
Under Articles 4-7oftheDecree, theapplicant mustfulfilthefollowing conditions, interalia:
- Algerian nationality;
- beatleast25years ofage;
- possess therequired professional qualifications aslaiddown inArticles 18and19of
theabove Decree;
- beabletoshow financial guarantees (DA150,000 ondeposit withtheTreasury or
abankguarantee forthesame amount).WT/ACC/DZA/2
Page93
Legal persons aresubject tothefollowing conditions:
- Managers must: beofgood character;
- beatleast25years ofage;
- beofAlgerian nationality;
- possess therequired professional qualifications (Articles 18and19).
Partners must:
- beofgood character;
- beofAlgerian nationality;
- beresident inAlgeria;
- beabletoshow therequired financial guarantees (DA1,500,000 each);
- havereleased theauthorized capital asprovided forbycurrent legislation.
2. Insurance agent
Theapproval conditions arelaiddown inArticles 15-21 oftheabove Decree. Likebrokers,
insurance agents must meetthefollowing conditions:
- Nationality;
- age;
- good character;
- financial guarantees (DA500,000);
- professional qualifications (Articles 18and19).
3. Impediments andincompatibilities
Article263oftheOrderof27January1995liststheimpedimentstothepracticeoftheprofession
ofinsurance intermediary.
Article 264considers theprofession ofinsurance intermediary tobeincompatible withany
commercial activity oractivity regarded assuchbythelaw.
Question 165
Inthefields where these conditions areapplied, towhat criteria must foreign suppliers
conform inorder tomeet those conditions?WT/ACC/DZA/2
Page94
Reply
Foreign suppliers notmeeting thecriteria listed inthereply toquestion No.164areexcluded.
Question 166
CanAlgeria enter intocommitments inthose sectors which arecompletely liberalized?
Reply
Algeria canenter intocommitments inthose sectors which ithascompletely liberalized.
2. Policies affecting trade inservices
Question 167
Canyouidentify alltheservices mentioned insection VI.2(a) -Services restricted forsafety
orpublic order reasons.
Reply
Theservices mentioned insection VI.2(a) inconnection withservices which arerestricted for
safety orpublic-order reasons arethefollowing:
- Classified installations;
- security activities andthetransport offunds andsensitive products;
- bars;
- gaming rooms;
- theactivity ofpublic writer.
Question 168
Areforeign service providers wishing toprovide aservice involving recourse toaState
industry, public property orpublic lands (asmentioned insection IV.2(a) treated inthesame
wayasnational providers inthesame sector?
Reply
Under LawNo.93-12 of5October 1993 oninvestment promotion, thesame treatment is
accorded toforeign service providers without anydiscrimination compared withAlgerian nationals.
Question 169
Can Algeria specify which services concerned with public health, education orthe
environment aresubject toauthorization orconcession? Areauthorizations applied toforeign
andnational companies inthesame way?WT/ACC/DZA/2
Page95
Reply
Inthehealth sector, activities carried outonaprivate basis bydoctors, pharmacists, general
andspecialistdentalsurgeonsandmedicalauxiliaries(paramedics)areregardedashealth-sectorregulated
activities.
Alltheseactivities aresubject topriorauthorization. Theyarecarried outunder theconditions
laiddown byArticle 208ofLawNo.85-05 of16February 1985onhealth protection andpromotion,
amended andsupplemented byLawNo.88-15 of3May1988 andLawNo.90-17 of31July1990.
Intheeducation sector, alllevels ofeducation areprovided forbytheState, except forcertain
regulated services connected withvocational training.
Intheenvironmental sector, sanitation, highways maintenance andrefuse-disposal services
areforthemostpartthesubject ofpublic-service concessions granted byresponsible localauthorities.
Local authorities aregradually reducing theirinvolvement inthese services, inthelightinter
aliaofthelevel ofcontrol exercised byprivate entrepreneurs overtheterms andconditions of
concessions, aswellastheircapabilities andpowers ofinitiative inthisfield.
Question 170
Policies affecting trade inservices (pages 86-89): howisthegeneral preference infavour
ofresident service supplies regulated? What arethepreferential measures granted? Isthe
publication ofgovernment procurement orders guaranteed?
Reply
Thepublication ofinvitations totender isguaranteed. Itiscarried outviathepress orlegal
notice. Anopeninvitation totender allows anycandidate tosubmit anoffer. Assessment ofthetenders
isbased ondifferent criteria laiddown inArticle 49ofDecree No.91-434 of9November 1991.
These criteria are:
- Technical andfinancial guarantees;
- price, quality andperiod ofimplementation;
- integration intothenational economy;
- financing terms offered byforeign enterprises;
- commercial guarantees andproduct-support conditions (after-sales service, maintenance
andtraining).
Itmustbestressed thatArticles 20and21ofExecutive Decree No.91-434 of9November 1991
ontheregulation ofgovernment procurement givepriority tonational production. Theprinciple of
giving preference tonational production isaccepted bytheinternational financial institutions which
provide funding forprojects inAlgeria.WT/ACC/DZA/2
Page96
Questions 171
What aretheother taxexemptions orrebates granted under thefinance actsinthecontext
ofthepromotion ofexports ofservices?
Reply
The1996 Finance Lawallows taxexemption oncompany profits forfiveyears inrespect of
salestransactions andexport services, withtheexception ofsurface, seaandairtransport, reinsurance
andbanks (Article 12ofthe1996 Finance Law).
Thisexemption alsocovers, forthree years, tourist andtravel agencies andhotels inrespect
oftheforeign-exchange proportion oftheturnover.
The1996Finance Lawconfirmed thetaxadvantages provided foronthispointintheInvestment
Promotion Law.
Question 172
Please indicate theestablished number andrequired qualifications under thelabour
legislation inthecaseofmovement ofnatural persons supplying services.
Reply
Algerian legislation ontheconditions ofemployment offoreign workers (Law No.81-10 of
11July1981) places nolimitonthenumber offoreign workers whomaybecovered bytherightof
movement ofnatural persons supplying goods orservices.
Ontheother hand, asregards therequired qualifications, Article 3oftheabove Lawstipulates
thatthequalification level must beatleastequivalent tothatof"technician", withtheexception of
nationals ofaState withwhich Algeria hasconcluded atreaty orconvention onthesubject, aswell
aspersons enjoying thestatus ofpolitical refugees.
ThesameArticle provides, however, thattheemployment administration maygrantexceptional
derogations onthebasis ofadetailed report bytheemploying body.
Anyforeigner duetocarry outapaidactivity inAlgeria mustholdawork permit ortemporary
work authorization issued bytheappropriate office oftheauthority responsible forthework.
3. Market access andnational treatment
Question 173
Itisnoted thatnolimitation exists onthenumber ofservice suppliers butitisalsonoted
thatlabourlegislationuniformlymakesthenumberofnaturalpersonssubjecttopriorauthorization
forallservices. How isthenumber ofnatural persons supplying aservice assessed?
Reply
Algerian legislation ontheconditions ofemployment offoreign workers (Law No.81-10 of
11July1981) contains nospecial provision forassessing thenumber ofnatural persons supplying a
service.WT/ACC/DZA/2
Page97
Article 1oftheabove-mentioned Lawleaves theemployer completely freeinthisrespect
inasmuchastheonlyquantitativereferencementionedis:"...dependingonnational-developmentneeds".
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
(b) Trade andtariff conventions
Question 174
Please make alist(HS6-digit) ofallproducts enjoying tariff exemptions under Arab
Maghreb Union agreements.
Reply
There isnolistofproducts enjoying tariffexemptions under ArabMaghreb Union agreements.
Theproducts towhich thetariff exemption regime applies arethose meeting theorigin and
source conditions.
Question 175
Does Algeria plan toconclude other preferential trade agreements infuture (next
three years)?
Reply
Algeria doesnotruleoutthepossibility ofconcluding other preferential trade agreements in
theyears tocome.