RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/DZA/12
22 July 1998
(98-2890)
Working Party on the Accession of Algeria Original:  French
ACCESSION OF ALGERIA
Customs Valuation
The Permanent Mission of Algeria has submitted the following in connection with the
information on the implementation and administration of the Customs Valuation Agreement.
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1. Questions concerning Article 1:
(a) Sales between related persons:(i) Are sales between related persons subject to special provisions?
Reply
Sales between related persons are governed by the provisions of Article 16, paragraph 3, of
the Algerian Customs Code, which set out the cond itions in which the buyer and the seller may be
regarded as related persons.
(ii) Is the fact of inter-company prices prima facie  considered as grounds for regarding the
respective prices as being influenced?
Reply
The fact of inter-company prices is considered as valid but insufficient grounds for regarding
the price as being influenced, except where it is demonstrated that the latter price is far from the prices
found for identical or similar goods in operations between unrelated persons.
(iii) What is the provision for giving the communication of the aforementioned grounds in
writing if the importer so requests?  (Article 1:2(a))
Reply
While the present regulations contain no express provision requiring the administration to
communicate to the importer the grounds that have led it to regard the price as being influenced, the
reasons are in practice disclosed to an importer who so requests.
(iv) How has Article 1:2(b) been implemented?WT/ACC/DZA/12
Page 2
Reply
The Customs Code in force at the present time does not contain any provisions similar to
those set out in Article 1:2(b).  However, the administration generally allows explanations by an
importer who demonstrates that the price approximates to those found in operations involvingidentical or similar goods under the same conditions or circumstances.
(b) Price of lost or damaged goods:
Are there any special provisions or practi cal arrangements concerning the valuation of
lost or damaged goods?
Reply
Apart from the special cases of goods placed under conditional release procedures, the
general principle is that goods are cleared as they are at the time the customs declaration is registered.
Duties and taxes are not payable when the goods are lost or destroyed as a result of force
majeure.
2. How has the provision of Article 4 to allow the importer an option to reverse the order
of application of Articles 5 and 6 been implemented?
Reply
Since Algeria does not use the value determination methods contained in Article VII,
naturally this option has not been available in the value provisions of the present Customs Code.
3. How has Article 5:2 been implemented?
Reply
The Algerian Customs Code does not contain any explicit provisions on this matter.
However, in practice the administration may use this method of processed goods valuation for controlpurposes, whether or not the importer so requests.  In that case, general profits and charges are
deducted for customs value determination.
4. How has Article 6.2 been implemented?
Reply
The administration may, under mutual assistance conventions, ask for the assistance of the
customs authorities of the exporting country to ve rify information provided for value determination
purposes.
5. Questions concerning Article 7:
(a) What provisions have been made for making value determinations pursuant to
Article 7?WT/ACC/DZA/12
Page 3
Reply
The value determination provisions in the Customs Code do not include methods prohibited
under Article 7 of the WTO Agreement.  The fact remains that all methods used by the Customs
Administration remain subject to assessment  by the Nomenclature and Tariff Committee and, wherenecessary, to the authority of the court in the event of an appeal by the importer.
(b) What is the provision for informing the importer of the customs value determined under
Article 7?
Reply
Although not expressly provided for in the Code, all the necessary justification for the value
declaration method used by the Customs Administration is, in practice, provided to the declarant as
well as to the Committee and to the court in the event of an appeal.
(c) Are   the prohibitions found in Article 7.2 delineated?
Reply
The prohibited methods found in Article 7 are not delineated, as they are not expressly
provided for.
6. How have the options found in Article 8.2 been handled?  In the case of f.o.b.
application, are ex-factory prices also accepted?
Reply
Under Algerian law, goods are valued for customs taxation purposes on the basis of their c.i.f.
value.
7. Where is the rate of exchange published, as required by Article 9.1?
Reply
The rate of exchange is published regularly by the Bank of Algeria;  it is fed into the
computer system, where it can be consulted by importers and customs declarants.
8. What steps have been taken to ensure confidentiality, as required by Article 10?
Reply
Confidentiality is guaranteed under the laws and regulations in force, in particular those
governing statistical and professional confidentiality.
9. Questions concerning Article 11:
(a) What rights of appeal are open to the  importer or to any other person?
Reply
Where the customs value is contested, the importer may appeal to the Nomenclature and
Tariff Committee established under Article 13 of the Customs Code.WT/ACC/DZA/12
Page 4
The membership and functioning of this independent committee, in which the Customs
provides only the Secretariat services, are set out in Decree No. 88-132 of 12 July 1988.
The importer may also have recourse to the courts, either directly or following the decision of
the Committee, which must act within a maximum period of 45 days after the appeal is lodged.
Appeals do not involve any penalty other than a penalty due to a possible infringement.
(b) How is he to be informed of his right to further appeal?
Reply
The Committee's decision is communicated in writing to the complainant, who is also
informed of his right to resort to the courts.
10. Provide information on the publication, as required by Article 12, of:
(a) (i) The relevant national laws;
(ii) the regulations concerning the application of  the Agreement;
(iii) the judicial decisions and administrative rulings of general application relating
to the Agreement;
(iv) general or specific laws being referr ed to in the rules of implementation or
application.
(b) Is the publication of further rules anticipated?  Which topics would they cover?
Reply
The laws and regulations concerning customs value are  published in the Official Journal of
the Algerian Republic.
Administrative decisions of general application are communicated to declarants and are
posted  up at all customs offices.
The present system, which draws on the definition in the Brussels Convention, will remain in
force until the WTO Valuation Agreement is implemented.
11. Questions concerning Article 13:
(a) How is the obligation of Article 13 (last sentence) being dealt with in the respective
legislation?
Reply
Article 100 of the Customs Code establishes, in the event of a challenge of the value, an
obligation to grant release of the goods once the appeal has been notified, provided the release does
not prejudice consideration of the appeal and a sufficient amount is deposited as a guarantee to cover
duties and taxes and any penalties to which the goods may ultimately be liable.
(b) Have additional explanations been laid down?WT/ACC/DZA/12
Page 5
Reply
Regardless of the obligation laid down in Article 100 of the Code, Decree 88-132, which
establishes the terms and conditions for appeals, reiterates this option to release in Article 11.
12. Questions concerning Article 16:
(a) Does the respective national legislation contain a provision requiring customs
authorities to give an explanation in writin g as to how the customs value was determined?
(b) Are there any further regulations co ncerning the above-mentioned request?
Reply
The present regulations do not contain any express provision similar to the one in Article16 of
the Agreement.  The administration may nonetheless explain the method used to the Committee or to
the competent court.
13. How have the Interpretative Note s of the Agreement been included?
Reply
The Interpretative Notes will be incorporated in Algerian law or will form the subject of
special texts when the Agreement enters into force in Algeria.
14. How have the provisions of the Decision of 26 April 1984 on the Treatment of Interest
Charges in the Customs Value of Imported Goods (VAL/6/Rev.1) been implemented?
Reply
Algeria does not yet apply the WTO Customs Valuation Agreement;  accordingly, the
provisions of the Decision of 26 April 1984 on th e Treatment of Interest Charges have not been
incorporated in Algerian law.
15. For those countries applying paragraph 2 of  the Decision of 24 September 1984 on the
Valuation of Carrier Media Bearing Software fo r Data Processing Equipment (VAL/8), how
have the provisions of this paragraph been implemented?
Reply
The provisions of the Decision have not been reproduced in the Algerian regulations on value,
as Algeria does not apply the value determin ation methods set out in GATT Article VII.
In the context of the negotiations, Algeria is studying the possibility of adopting these two
Decisions after its accession to the WTO.
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