Algeria Automotive New Vehicle Import Regulations Partially Eased
A new government regulation (e.g., Executive Decree No.22-383) released in November 2022 partially eased conditions for importing passenger and commercial vehicles in Algeria. New vehicle dealerships, restricted to selling partially locally manufactured autos since 2016, may now apply to import Complete Built Units (CBU). Dealers must still obtain prior authorization from the Ministry of Industry before initiating imports. This regulation applies to regular, electric, hydrogen, hybrid, and LPG-CNG-powered passenger vehicles, as well as light commercial vehicles, industrial vehicles, motorcycles, and special-use vehicles.
Seemingly good news for exporters, American companies should note that the customs duties on CBUs are significant. Therefore, it is still worth considering some level of localization to benefit from preferential tax regimes laid out in a separate regulation (e.g., Article 17 of Executive Decree 22-384) for the localization of vehicle manufacturing. American exporters should also know that dealers must have an exclusive contract with a foreign manufacturer. To receive authorization to import passenger vehicles, the Algerian dealer must be present in at least 28 Algerian provinces by the end of the first year of distribution and capable of providing after-sales service and spare parts for the duration of the dealership contract, plus five years after that.
For more information about opportunities and challenges in Algeria’s automotive sector, as well as how these new regulations are being applied in practice, please get in touch with Commercial Specialist Hadia Beghoura at Hadia.Beghoura@trade.gov.