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Custom clearance of renovated production lines

Customs clearance for home use of renovated production lines

Given the changing international context characterized by recession and a crisis inducing the closure of many production units, public authorities have decided to set up a legal framework allowing our investors to seize the opportunities

This decision resulted in granting customs clearance, by special derogation of the Minister in charge of Investment, for home use of renovated production lines (Article 54 of the 2010 Supplementary Finance Law)

 

Covered equipment

Renovated production lines: what is meant by renovated production lines is equipment representing a homogenous, renovated  production unit in operable condition.

By renovated production lines, it is meant production lines involving the extraction, manufacture or packaging of products.

The production line as defined in the present instruction, must have undergone a renovation confirmed by an independent authorized inspection and control body

The production line should be made for home use by the operator for his activity own needs, in the strict time necessary to its actual operating.

 

Recipients
Are eligible for this authorization, economic operators duly registered in the trade and company register, whose business is directly related to that for which the production line is intended, and subject of the present instruction.

Recipients must also prove they possess an infrastructure appropriate to the imported line operation. It is understood by economic operators the Algerian law companies.

 

Rules for granting custom clearance authorization

The clearance authorization of renovated production lines can be granted by special derogation of the Minister in charge of Investment, on the basis of a detailed report prepared by the Technical Committee. The Technical Committee is hereby established technical committee for "renovated production chains" to the Minister in charge of Investment. This committee is responsible for appraising applications for granting customs clearance authorization for renovated production chains, based on the record provided in support of the application. This committee delivers a technical judgment and any other appropriate recommendation. The committee may have recourse, if necessary, to experts or any other person that can usefully advise it. When issuing its opinion, the committee must be based on the list of activities that are not eligible for incentives under Ordinance n° 01-03 on20/08/2001 as mentioned in the Executive Decree n° 07-08 11/01/2007 amended and supplemented. Chaired by the Minister in charge of Investment or his representative, the committee consists of representatives of the following structures within the same ministry:
  • Directorate General of Investment;
  • Directorate General of Industrial development;
  • Directorate General of SME

The committee also includes representatives from:

  • Ministry of Finance (Directorate General of Customs);
  • The Bank of Algeria;
  • Algerian Chamber of Commerce and Industry
  • ANDI-National Agency of Investment Development

 

Committee members are appointed by their respective administrations

Source: April 2012 Ministerial Direction of the Ministry of Industry, Small and Medium Enterprise and Investment Promotion

NB: The 2014 Finance law has introduced a customs provision (article 123, Legislative Decree No. 9318 of December 31, 2013) establishing the authorization granted to entrepreneurs and producers until 31 December 2015, import and clear customs, to their needs, equipment used for a period of less than two (2) years, the range of which being not produced or manufactured in Algeria. This used equipment will be imported by contractors and producers to their own needs and must remain in their assets for at least five (5) years.

 

Dossier for « renovated production lines» Import authorization

It must consist if the following:
  • A clearance authorization application
  • A certified copy of trade and company register
  • A certified copy of the tax registration card
  • A pro-forma invoice (with equipment serial numbers of the chain)
  • A detailed description of the chain and its positioning in the global production process (data sheet)
  • A certificate issued by the independent body having validated the renovation.

 

The clearance authorization must specify the following details:

  • The applicant's current activity
  • Company details and manager
  • Head-office and production units locations
  • Overall size of the production units
  • Area of activity
  • Manufactured products
  • Turnover and physical production over the last three years
  • Workforce
  • Renovated production line to be imported;
  • Location and planned area
  • Area of activity
  • Intended product to manufacture

 

A detailed description of the renovated production line must precisely indicate:

  • Layout of the line
  • Line operating
  • Various products manufactured by the line
  • Production capacities
  • Line equipment technical features
  • country where the chain has been made
  • Operation area of this line
 

Certificate issued by the independent body having validated the renovation

The body issuing this certificate should be an inspection body and should check that the renovation operation has been done and perform a no-load test (expertise sheet).

Only complete applications filled in accordance with the information mentioned above will be accepted by the Committee Secretariat.

                                                                                                          Source: www.mincommerce.gov.dz

Non-transferability and follow-up

Imported renovated lines are non-transferable for a period of three (03) years from their entry into operation.

The renovated line commissioning should be confirmed by a judicial officer statement of facts set up at the derogation recipient's initiative within a maximum of six months from the clearance of the import file.

The above-mentioned statement of facts is sent back by the operator to the services of the Ministry in charge of investment, within the month following its setting-up.

The services of the Ministry in charge of Investment may perform any check on the actual destination and release for consumption of the imported production line and, if necessary, take any appropriate measures

 

Notification of the decision

The decision granting the clearance authorisation to release the imported renovated lines for consumption shall be addressed to the Directorate of Customs for implementation. A certified copy of the above-mentioned decision is given to the recipient

 

Contact

Department of Animation and Company Development (DADE)

Section of Support and Consultancy to businesses

Phone: 021.96.66.66/ 021.96.77.77

Fax: 021.96.46.31 /  021.96.70.70

E-mail: dade@caci.dz