Customs clearance for home use of renovated production
linesGiven 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
