Algerian Used Equipment Regulation
For over a decade, Algerian customs officials denied importing used and second-hand equipment based on a narrow interpretation of the Supplementary Finance Law of 2009. Customs officials interpreted this law, which authorized the importation of new equipment, new raw materials, and spare parts intended for manufacturing and production in Algeria, to prohibit any imports of second-hand or used equipment and machinery.
Recent regulatory changes (e.g., Executive Decree No. 20-312, as amended by Executive Decrees No. 21-200 and No. 22-100) clarified exceptions to this prohibition to allow for the importation of refurbished production lines. Eligible types of equipment include:
- Homogeneous equipment sets used for extracting, manufacturing, or packaging products;
- Production equipment used to independently produce a good or service or production equipment integrated into a production line; and
- Refurbished production lines and equipment in working order with a minimum life span of 10 years (except refurbished agricultural lines and people moving equipment equivalent to those produced in Algeria)
U.S. exporters should note that the age of used equipment cannot exceed ten years from the date of manufacture, and the Algerian buyer’s business activity must be directly related to that of the used production line. Algerian buyers/importers must also prove that they have the appropriate infrastructure to operate the renovated production line and can self-finance at least 30 percent of the used equipment. Used and refurbished production lines are non-transferable for five years after the equipment is placed in operation. Buyers/importers must obtain prior authorization from Algeria’s Ministry of Industry.
In addition to these new regulations, U.S. companies should note that Algeria’s new investment law (Law No. 22-18) also allows U.S. companies to export used equipment as part of business relocation to Algeria. For more details on exporting used and refurbished equipment to Algeria, contact Commercial Specialist Amina Lakehal at Amina.Lakehal@trade.gov.