New Conditions For Importing Production Equipment … And End Of Concessions Era
The Government has revoked all the concessions granted at the customs office of the production lines and equipment that were renewed within the framework of the activities for the production of goods and services, provided that the importer finances the process by not less than 30 percent.
Less than 6 months after the entry into force of the executive decree that included the conditions and modalities for granting a customs license for production lines and equipment that were renewed within the framework of the activities for the production of goods and services, the government hastened to cancel this decree, which was drafted during the era of the former industry Minister Farhat Ait Ali, by introducing broad amendments to this type of import operation.
The decree that was presented at the latest cabinet meeting, / not yet issued in the official gazette, of which “Echorouk” possesses a copy, stipulates that it refers to the customs operations of production lines and equipment as production is the every element that allows a unit to produce a good or service or may be incorporated into the production line.
The decree defined production lines and equipment that have been refurbished as “production equipment or equipment that has undergone a renewal process that is certified to be usable”.
The decree also limits the persons eligible to apply for a customs license to the economic dealers registered at the National Center for the Commercial Registry, whose activity is directly related to the activity directed to the renewed production lines or equipment, provided that the economic dealers justify their investments that are made in the renewal of production lines or equipment or expansion of production capabilities for goods and services, and their possession of adequate infrastructure to exploit imported lines or equipment.
The decree affirmed that the operations that it enumerated “do not benefit from any national organization granting concessions, whatever their nature,” and that the holder of the import and customs license is required to prove his “ability to self-finance the cost of the operation at a rate of no less than 30 percent”.
The text also stipulated that “no additional work for the renewed lines and production equipment, subject of the company’s license application, runs not less than 10 years after the renewal.
It was also decided to expand the circle of those involved in this type of import, by establishing a committee with the Minister of Industry, also including representatives from the Ministries of Interior, Finance, Trade, Pharmaceutical Industry, Energy and the Environment, and from the Bank of Algeria, as well as the Algerian Accreditation Authority, and the National Agency for Investment Development, and this relevant committee duly “undertakes proper verification”.