Official Gazette of Algeria No. 68 regarding vehicles Assembly activity in Algeria
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Official Gazette No. 68
Dated 28 November 2017
Executive Decree No. 17-344 of 9 Rabie El Aouel 1439 corresponding to 28 November 2017 fixing the conditions and procedures for carrying out the activity production and assembly of vehicles.
The Prime Minister,
On the report of the Minister of Industry and Mines;
Given the Constitution, especially Articles 99-4 and 143 (paragraph 2);
Given the Ordinance No. 75-58 of 26 September 1975, amended and supplemented, on Civil Code ;
Given the Ordinance No. 75-59 of 26 September 1975, amended and supplemented, on the code of commerce;
Given the Law No 79-07 of 21 July 1979, as amended and completed, on the customs code;
Given the law n ° 99-11 of 15 corresponding Ramadhan 1420 as of 23 December 1999 on the Finance Law for 2000;
Given the law n ° 01-14 of 29 Joumada El Oula 1422 corresponding to 19 August 2001, as amended and supplemented, on the organization, security and police of the traffic ;
Given Ordinance No. 03-03 of 19 Joumada El Oula 1424 corresponding to 19 July 2003, as amended and supplemented, on competition;
Given the law n ° 04-02 of the 5 Joumada El Oula 1425 corresponding to 23 June 2004, as amended and supplemented, setting the rules applicable to commercial practices;
Given the law n ° 04-04 of the 5 Joumada El Oula 1425 corresponding to 23 June 2004, as amended and supplemented, on standardization;
Given the law n ° 04-08 of 27 JoumadaEthania 1425 corresponding to 14 August 2004, as amended, relating toconditions of exercise of commercial activities;
Given the law n ° 09-03 of 29 Safar 1430 corresponding to the 25 February 2009 on consumer protection and the repression of fraud;
Geiven the Law 13-08 of 27 Safar 1435 corresponding to the December 30, 2013 carrying the Finance Act for 2014;
Given the law n ° 16-09 of 29 Chaoual 1437 corresponding August 3, 2016 relating to the promotion of investment;
Given the law n ° 16-14 of 28 Rabie El Aouel1438 corresponding to December 28, 2016 on the law of finances for 2017;
Given Presidential Decree No. 17-242 of 23 Dhou El Kaâda 1438 corresponding to August 15, 2017 on appointment of the Prime Minister;
Given Presidential Decree No. 17-243 of 25 Dhou El Kaâda 1438 corresponding to August 17, 2017 on appointment of members of the Government;
Considering Executive Decree No. 2000-74 of 27 DhouEl Hidja 1420 corresponding to 2 April 2000, amended and completed, laying down the conditions for the identification of production activities from collections intended to assembly industries and so-called CKD collections;
Given the  Executive Decree No. 04-381 of 15 Chaoual 1425 corresponding to 28 November 2004, as amended and supplemented, fixing the rules of the road traffic;
Having regard to Executive Decree No. 06-198 of 4 JoumadaEl Oula 1427 corresponding May 31, 2006 defining the regulations applicable to establishments classified as Environmental protection ;
Having regard to Executive Decree No. 07-144 of 2 JoumadaEl Oula 1428 corresponding May 19, 2007 laying down the nomenclature of classified installations for protection of the environment ;
Given Executive Decree No. 14-241 of AouelDhouEl Kaâda 1435 corresponding to August 27, 2014 fixing the attributions of the Minister of Industry and Mines;
Given Executive Decree No. 15-234 of 14 Dhou El Kaâda1436 corresponding to 29 August 2015 setting the conditions and methods of carrying on activities and professions regulated entities subject to registration in the Register of trade
Decreed
CHAPTER 1
PURPOSE AND SCOPE
Article 1. - In accordance with the provisions of Articles 24 and 25 of Law No. 04-08 of 27 JoumadaEthania1425 corresponding to 14 August 2004 relating to the the conditions of exercise of commercial activities, and in accordance with Article 5 of Executive Decree No. 15-234 of 14 Dhou El Kaâda 1436 corresponding to August 29, 2015 laying down the conditions and procedures for carrying out the activities regulated professions subject to registration at the Register of Commerce, the purpose of this Decree is to set the conditions and procedures for exercising the production and assembly of vehicles.
Art. 2. - Within the meaning of the provisions of this decree, it is heard by:
Vehicle: Any means of ground transportation provided or not a propulsion engine and traveling on the road by his own means, pushed or towed: automobile, trailer, semi-trailer and rolling stock.
Automobile:  Any vehicle intended for the transportation of persons or goods and provided with a device Propulsion mechanics, traveling on the road: vehicle particular, van, truck, tractor unit, coach,bus, cycle, motorcycle and moped.
Trailer and semitrailer: Transport vehicle goods whose total permissible laden weight is equal to or greater than 3500 kg, coupled to a tractor unit.
Rolling machine:All mobile machinery, equipment industrial transportable or transported, bodywork or not, no intended for the road transport of passengers or goods, equipped with an internal combustion engine: agricultural, forestry and public works vehicles, handling, lifting, hydraulics, hydrocarbons, electric and special purpose vehicles.
Vehicle production or assembly activity:
Vehicle manufacturing activities fromcollections, components, parts and components imported fromone or more suppliers in a single batch or in batchesseparated, forming a complete assembly kit by addition to previous or future shipments and / or a supplement manufactured by the company for itself, or by subcontracting or acquiring from local producers.
Investor: Any entity incorporated under Algerian law, created in the framework of the laws and regulations in force, between a party Algerian and a foreign partner.
Manufacturer: Motor Vehicle Manufacturer associated through a stake in the capital of the Algerian entity, trademark holder world-renowned and with production sites in, at least, two countries.
Integration: Activities carried out in Algeria concurrent to car production either in the factory or by the local subcontracting and export of parts resulting automobiles.
Art. 3. - The production and assembly activity of vehicles is open to operators incorporated under the form of commercial companies, in accordance with the legislation in force, attesting to a minimum of three (3) years of experience in the automotive sector and holders of a definitive approval of a dealer issued by the Minister of Industry.
CHAPTER 2
CONDITIONS OF ACCESS OF THE ACTIVITY
Art. 4. - The exercise of the activity of production and vehicle assembly is conditioned by the subscription the specifications, annexed to this decree.
Art. 5. - Before being entered in the register of the trade, the applicant for the activity of production and vehicle assembly is subject to obtaining a provisional authorization issued by the Minister in charge of industry.
Art. 6. - The file required to obtain the provisional authorization provided for in Article 5 above,
includes:
- the application for obtaining the provisional authorization specifying the types of vehicles to be produced;
- theinitialed, dated specifications signed by the duly authorized person and bearing the words' read and approved "on the commitment form attached;
- the decision of the national investment council;
- a copy of the statutes of the company, highlighting the production and assembly of vehicles, as well as the participation of the manufacturer-partner in the capital of the vehicle production company;
- a technical and economic study of the project;
-a production license agreement manufacturer-partner and use of the mark of which the scope of the duties covers the export;
- the commitment of the partner manufacturer for the non-competition and export support;
- the commitment of the partner manufacturer the sale of collections and other items from the project company, same "ex-works price" as that applied to its own units, factories and subsidiaries.
The file is filed with the relevant departments of the Ministry of Industry against the issuance of a
deposit receipt.
Art. 7. - The provisional authorization is issued by the Minister for Industry within a period not exceeding fifteen (15) working days following the date of the issue of the deposit receipt.
Any adverse response, motivated, must be notified to concerned by the relevant departments of the Ministry responsible of the industry within the same period.
Art. 8. - The provisional authorization allows the applicant to register in the commercial register and to fulfill the steps for the realization of its investment. She does not constitute an authorization to carry on the activity or operating.
The period of validity of this provisional authorization is fixed for a period not exceeding twenty-four (24)months, from the date of issue.
This period may be extended at the request of the concerned, supported by the supporting documents.
Beyond the validity periods of the authorization and, in the absence of a request for extension, the
Industry Minister refers the Minister in charge of the trade to initiate the procedure for removing the register of the operator.
Art. 9. - The actual exercise of the production activity and vehicle assembly is conditioned by obtaining definitive approval.
The file required to obtain accreditation definitive, must include:
- a request for final approval
- a copy of the commercial register;
- a copy of the tax identification card;
- documents proving the existence of infrastructure and equipment necessary for production and assembly of vehicles;
- documents relating to the qualification of the staff ;
- the proof of the global identification number of the manufacturer "WMI" specific to the factory installed in Algeria issued by the authorized body;
- documents relating to the qualification program local subcontractors and support staff new subcontractor investors;
- the list of manufacturers of the manufacturer who accompany the project through investments in
Algeria.
Art. 10. - The issue of the final approval is subject to prior inspection visits, on-site, by
Authorized departments of the Ministry of Industry to ensure compliance with the commitments entered into by the applicant.
Art. 11. - The final approval shall be issued by the
Minister for Industry within a period not exceeding one (1) month from the filing date of the application.
Any possible reservation must be notified to the applicantto remedy it within the deadlines set in the notification.
Art. 12. - The exercise of the activity of production and vehicle assembly by the authorized operator, is subject to the arrangements provided for in the provisions of the charges, annexed to this Decree.
CHAPTER 3
TRANSITIONAL AND FINAL PROVISIONS
Art. 13. - Projects entered into production before the publication of this Decree, have a deadline of twelve (12) months to bring them in line with the provisions it provides.
Art. 14. - The services of the Ministry responsible for industry, communicate regularly and by all means appropriate means, including electronically, the list of authorized operators to the different organizations and administrations, including the ministries responsible for trade, transport and finance (management General Tax Office, Directorate General of Customs).
Art. 15. - The services of the ministries responsible for Trade and Finance (Directorate General of Customs and the Directorate-General for Taxes) are regularly informed by the relevant departments of the Ministry responsible for industry, measures taken in the context of the implementation of Articles 16 and 17 of the annexed specifications to this decree.
Art. 16. - The provisions of this decree are specified, as necessary, by order of the Minister responsible for the industry.
Art. 17. - The provisions of this decree are not not applicable to vehicle production operators associated with public institutions in industrial and commercial character of the Ministry of National Defense.
Art. 18. - This decree will be published in the Journal Official of the Algerian Democratic Republic and popular.
Done at Algiers, the 9th Rabie El Aouel 1439 corresponding to November 28, 2017.
Ahmed OUYAHIA.
Annexure
Cahier de Charges (specifications) relating to conditions andprocedures for the exercise of the activity of production and vehicle assembly
Article 1. - The present specification has for purpose of laying down the conditions and procedures for exercising the production and assembly of vehicles.
CHAPTER 1
COMMITMENTS AND OBLIGATIONS
Art. 2. - The production and assembly activity of vehicles, is exercised in accordance with the provisions applicable laws and regulations, in particular competition, commercial practices, consumer protection, safety, hygiene, safety, work, insurance and the environment.
Art. 3. - The applicant for the activity of production and vehicle assembly, must present a study detailed technical and economic analysis covering a periodminimum of five (5) years, including, but not limited to:
- the infrastructure plan to house the activity;
- the investment and financing plan;
- projection of production levels by type;
- the projection of financial aggregates;
- the jobs planned;
- the evolution of integration;
- the export levels envisaged, where appropriate.
The benefits of the investment and Preferential tax regime for collections intended for the assembly and CKD industries, is subject to compliance with integration rates such as provided by the regulations in force.
Art. 4. - The production and assembly company, undertakes to achieve a minimum integration rate of 15% after the third year of activity, starting from publication of these specifications, and of 40% to
60% after the fifth year, and to respect the details of the gradual integration rates by category, as fixed by the regulations in force.
The detail of progressive integration rates by category, is set by joint order of the ministers responsible finance and industry and mining.
The integration rate is calculated according to the following formula :
Integration rate = local rate + export rate PDR (spare part) + PDR employment rate.
Each rate, entering the calculation formula, participates in the overall integration rate. The contribution of local rate cannot exceed 50% of the integration rate.
PDR and employment export rates add up to them two the remaining 50%; the PDR employment rate being capped at 12.5%.


Rate

Part

Ceiling

Local rate

50%

Limit to 50 %

Exportation rate PDR

 

Open

Employment rate PDR

12.5%

Limit to 12.5 %

Each component is respectively calculated according to the formulas below:
Local rate = local costs + local purchases + exports of vehicles
local costs + local purchases + import purchases
It is understood by:
- local costs: All local costs (wages and training);
- Local purchases: Local purchases of coins spare parts produced locally, as well as all services provided in Algeria directly related to production activity;
- Vehicle exports: The export valuevehicles produced in Algeria by the investor;
- import purchases: The purchase costs of imported collections.
                                                                Value of the automobile part
exported                                10       
Exportation rate PDR = ----------------------------------------------------- X -----
                                                                Purchase at imports                            5
It is understood by:
- exported auto part value: The value exported to the partner manufacturer of the parts locally made;
- import purchases: The purchase costs of imported collections.
                                                Number of direct employments of
Subcontracting PDR
Employment rate = ---------------------------------------------------------
                                                                                100
It is understood by:
- number of direct jobs in PDR outsourcing = the number of direct jobs generated by the activity of
manufacturing of components, equipment and parts parts.
Art. 5. - The production and assembly company, must have a cost accounting at your disposal justify the levels of integration achieved.
Art. 6. - In addition to the conditions laid down in Article 3 above, the applicant must provide the supporting documents the technical and financial capacities needed to implementation and operation of the project.
The project must be carried out in partnership with a world class manufacturer. The applicant agrees to:
- produce under the brand (s) of the manufacturer-partner;
- qualify and mobilize the equipment manufacturers and subcontractors for the local manufacture of components, parts and parts;
- present safety certifications and environment;
- provide technical assistance, transfer of know-how and advice;
- specify the operating conditions of the license.
Art. 7. - The authorized operator must have infrastructure, facilities and equipment production and assembly of suitable vehicles and conform to standards and technical specifications required by the regulations in force relating to industrial activities.
Art. 8. - The authorized operator is required to have a staff with the required qualifications and / or
sufficient professional experience in the field.
Art. 9. - The authorized operator must implement a staff qualification training plan local management, in industrial management and production line management, and personnel from mastery and execution in industrial techniques.
The authorized operator also contributes to the promotion innovation and research & development applied to the national vehicle industry.
Art. 10. - The vehicles produced must meet the standards of safety and environmental protection provided for by the legislation and regulations in force, in particular those provided for by the decree of 23 March 2015, amended, laying down the terms of reference for conditions and procedures for the exercise of new vehicle dealers.
Fuel consumption levels of produced models must meet the standards and conditions required in this respect.
Art. 11. - The vehicles produced are subject to the conformity check by the mining services, In accordance with the regulations.
Art. 12. - The authorized operator must respond by his production on demand of the market in vehicles operating on LPG / C or CNG.
The authorized operator is encouraged to produce hybrid and electric vehicles.
Art. 13. - Vehicles produced must be guaranteed against defects in construction, apparent defects
and / or hidden.
The authorized operator shall be obliged, at its own expense, to recall campaigns in the event of design defects and security detected on a type or lot of vehicles.
Art. 14. - The operator is required to produce competitive vehicles by reference to imported products same model and is committed to achieving this result from  third year. To this end, he must produce according to full capacity of its units and export the surplus of the production not yet sold on the national market.
Art. 15. - The operator undertakes not to increase the prices of vehicles manufactured in Algeria during the periods where the local market is protected by decision of the authorities public authorities, that, subject to the possible impact of aincreased production costs or costs of structure.
Art. 16. - The authorized operator undertakes to ensure the availability of spare parts and accessories to through its distributors.
In case of cessation of activity, the authorized operator is obliged to ensure the availability of the spare part and the accessories of origin or equivalent quality approved for a minimum period of ten (10) years.
Art. 17. - The distribution of vehicles produced locally under the same conditions by the regulations in force governing the activity of dealers of new vehicles, including provisions of Chapter 4 of Executive Decree No 15-58 of 18 RabieEthani 1436 corresponding to February 8, 2015 laying down the conditions and procedures for the exercise of the activity of new vehicle dealers.
Art. 18. - Implementation of planned commitments in Articles 16 and 17 above, is subject to control
of the relevant departments of the Ministry responsible forindustry.
CHAPTER 2
SANCTIONS
Art. 19. - The authorized operator is bound by provisions of these specifications and to submit to the control of the authorized services.
Art. 20. - Any breach of the provisions of the decree Executive No 17-344 of 9 Rabie El Aouel 1439
corresponding to 28 November 2017 setting the conditions and the procedures for exercising the production activity and vehicle assembly, and the commitments provided for by the specifications, gives rise to the establishment, by the authorized inspection services, of a report ordering the the offender to remedy it within the deadline set in the remains notified to the person concerned.
Art. 21. - At the end of the deadline set in the remains, and if the offender does not regularize his situation, it is pronounced, to the fault of the authorized operator, the following sanctions, combined, partially or totally or separately, depending on the severity of the failure:
- withdrawal of benefits related to the tax system preferential allowance for collections intended for assembly industries and CKD collections;
- withdrawal and / or reimbursement of the benefits of investment granted under the scheme
ANDI;
- the revision of the conditions of the concession of ground ;
- the implementation of the planned financial penalties by the finance law for 2018;
- definitive withdrawal of approval by the services concerned by the Ministry of Industry.
The Ministry in charge of Industry, requests the Ministry in charge of trade to initiate the withdrawal procedure of the commercial register.
COMMITMENT FORM
I, the undersigned (first and last name)
Acting as
Company name
Trade Registration No.
Tax Identification No.

  1. Declares:

Having read the regulations in force and the terms of the specifications setting out the conditions and procedures for carrying out the vehicle production and assembly activity.

  1. Attests:

- all information contained in my application for approval is accurate;
- that I am informed that any misrepresentation will result in the rejection of my application;
- agree with all the conditions and procedures for carrying out the production and assembly activity of vehicles.
3- I Commit to :
- ensure compliance with the provisions of the regulations in force relating to the exercise of the activity of production and vehicle assembly;
- inform, as soon as possible, the services of the Ministry responsible for industry of any changes in information contained in the application file;
- to transmit, quarterly, to the aforementioned services, statistics relating to the evolution of investments, employment, production volume and sales.

In… , on ….
Signature
(Designation of the signatory)



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