The official gazette No. 33 has published an executive decree amending and supplementing the 2022 executive decree that outlines the conditions and methods for engaging in vehicle manufacturing activities.
This is Executive Decree No. 24-159, signed by Prime Minister Nadir Larbaoui on May 12. It modifies and supplements Executive Decree No. 22-384 dated November 2022, which specifies the conditions and methods for engaging in vehicle manufacturing activities.
Article 7 of the decree stipulates that the file required to obtain prior authorization must include, in addition to the authorization request, specifications, a declaration of integrity, a copy of the company’s bylaws, a tax identification number, a copy of the electronic commercial register, or the submission of a protocol or partnership agreement. The protocol or partnership agreement must be provided if applicable.
The partnership agreement should demonstrate that the expected investment falls within an industrial partnership framework between one or more Algerian investors and one or more foreign partners, including the manufacturer owning the brand(s). It should outline the expected production levels for each model and phase concerning production volume, and list the groups, subgroups, and accessories to be gradually imported and manufactured locally.
According to Article 30, if the integration rates are not achieved for each phase, the manufacturer is granted an additional 12 months for each phase with a 25% reduction in the annual supply program based on the approved program for the previous year. This reduction includes the deduction of the number of remaining imported, unassembled groups, subgroups, and accessories.
If the manufacturer fails to meet the specified integration rate after the additional period, their supply program for the concerned vehicle category will be frozen until the integration rate is achieved, as per the decree.
Additionally, the relevant ministry’s competent services will conduct field visits to the manufacturers’ production sites and, if necessary, to the subcontractors’ sites to verify compliance with the required integration rates for each phase.
Operators who hold approval under previous related regulatory provisions and those who have already undertaken investments, whether operational or not before the issuance of this decree, and operators with ongoing investments before the issuance of this decree possessing the necessary infrastructure and equipment for vehicle manufacturing activities, are exempt from obtaining prior authorization.
According to Article 33 of the decree, the required file from operators holding approval includes a request for approval, the specification book attached to this decree, and a dated, signed, and endorsed commitment document by the subscribing investor. It should include the phrase “Read and Approved” and a declaration of integrity prepared by the natural person manager, a copy of the company’s bylaws and any amendments, if applicable, a tax identification number, and a copy of the electronic commercial register.
Additionally, it requires a document specifying the brand(s) of vehicles to be produced, issued by the competent authority or the foreign manufacturer owning the brand(s), a technical-economic study of the updated project, and a partnership agreement or any other partnership document, if applicable, concluded between the Algerian investor(s) and the foreign partner(s), including the manufacturer owning the brand(s). It should specify the commitments made by the parties involved in the investment, as well as documents proving the start of the investment process or its completion, or its operational status before the issuance of this decree, and documents proving the existence of the necessary infrastructure and equipment dedicated to vehicle manufacturing.
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