Permits To Continue Assembling Stacked Vehicles Inside Factories

March 17, 2021

• The Ministry of Industry is studying the possibility of granting the owners of production chains for cars active in Algeria, licenses to continue assembling cars that are stacked in factories, following measures to stop activities that affected production units starting from 2019, as a result of the corruption scandals that were unveiled, a step that was taken before the amendment conducted by the last government.

• The head of the National Consultative Council for the Promotion of Small and Medium-sized Enterprises, Adel Bensaci, who previously headed the conglomerate of fine mechanics, says that the vision has not yet been clear regarding the car production and assembling sector in Algeria, adding that the file is currently available to study with the possibility of granting licenses to owners of production chains to continue assembling cars that are stacked inside the factories, similar to the vehicles of the Renault factory under a French partnership in the Tlilet locality of Oran, with the obligation for auto dealers to respect the contents of the new book of conditions governing the activity and stopping all the privileges of “SKD” and “CCD” that they used to benefit from in the past.

• Adel Bensaci told “Echorouk” that his recent meeting with the current Minister of Industry, Mohamed Bacha, designed to pinpoint proposals regarding the revitalization of the industrial sector, dealt with the handling file, which should be of great importance during the next stage, he said, as the handling is not limited to auto spare parts, especially since such an industry is still absent in Algeria, because it should include the most demanded areas, such as handling fuels that annually drain $ 5 billion, while stressing the importance of releasing the decree regulating the privileges of the handling activity, which includes importing raw materials without incurring fees in the near future.

• Mr. Bensaci counted the presence of 250 handling companies in Algeria, while their number before the start of the Covid 19 pandemic was about 300 companies, stressing that the number of dealers decreased due to the crisis in the mechanical sector, which was most affected by the repercussions of the quarantine measures, as production slumped to the point of 54 percent.

• Our interlocutor criticized the ministers’ abolishing programs for their predecessors each time, starting new policies in Algeria and adopting modern laws, which would intimidate the foreign investors as to the absence of stability of national legislation, calling for clarification of the long-term economic vision and not changing trends with a change of people, stressing that the Minister of Industry was clear, as he said during the meeting that he would hasten to fold the most urgent files during the current period – that is, before the legislative polls of next June 12th 2021 – while stressing – that the handling file is the most important in the next stage.

• This comes at a time when the Minister of Industry has not yet detailed the car import file, which is expected to be referred to the Ministry of Trade, with on focus the file of re-importing cars less than 3 years old.

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