There had been persistent rumors about a possible easing of the conditions imposed by E.D. 21-94 on import and resale activities, in the face of complaints from the sector and the mediation of bodies such as the EU delegation in Algeria, for the problems that this was going to cause.
The new decree, of March 9 of this year, prohibitsthe importation under the same number of Mercantile Registry, of different families of products,requiring a secondary registration for the second product and, when there are more than 2, since no more secondary registrations can be had, new companies will have to be created, one per family of products: this means for some importers the creation of multiple companies, more than 10 in some cases.
This, with the application of the new coding system, means that in practice some importers should create up to 9 companies to continue guaranteeing the supply of their products.
In a note issued on August 26, it is reported that the Algerian government has taken a radical measure to force importers to comply with the new regulations. In an internal note from the General Directorate of Customs to its services, it recalls the maintenance of the approved regulations; In addition, the Ministry of Finance is requested to instruct the Association of Banks (ABEF) on the application of the Interministerial Instruction of July 27, which establishes the suspension of direct debit of import operations of products intended for resale, as of October 31, 2021.
This provision affects importers with a valid Certificate of Conformity, who have not modified their commercial registrations in accordance with D.E. 21-94 of 9 March 2021, which modified and extended D.E. 05-458 of 30 November 2005.
This implies the suspension of imports and a serious obstacle to their future development, which will affect both the availability of product for consumption, as well as many local manufacturers who could not make direct imports, were supplied in the domestic distribution market. The expected consequence, chaos, shortages, price increases and increased fraud.