The provisions of this Chapter shall apply to products originating in the Community and Algeria falling within Chapters 25 to 97 of the Combined Nomenclature and of the Algerian Customs tariff with the exception of the products listed in Annex 1.
Products originating in Algeria shall be imported into the Community free of customs duties and charges having equivalent effect.
1. Customs duties and charges having equivalent effect applicable on import into Algeria of products originating in the Community listed in Annex 2 shall be abolished upon the entry into force of this Agreement.
2. Customs duties and charges having equivalent effect applicable on import into Algeria of the products originating in the Community listed in Annex 3 shall be progressively abolished in accordance with the following timetable:
—
two years after the date of entry into force of this Agreement each duty and charge shall be reduced to 80 % of the basic duty,
—
three years after the date of entry into force of this Agreement each duty and charge shall be reduced to 70 % of the basic duty,
—
four years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60 % of the basic duty,
—
five years after the date of entry into force of this Agreement each duty and charge shall be reduced to 40 % of the basic duty,
—
six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 20 % of the basic duty.
—
seven years after the date of entry into force of this Agreement the remaining duties shall be abolished.
3. Customs duties and charges having equivalent effect applicable on import into Algeria of the products originating in the Community other than those listed in Annexes 2 and 3 shall be progressively abolished in accordance with the following timetable:
—
two years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90 % of the basic duty,
—
three years after the date of entry into force of this Agreement each duty and charge shall be reduced to 80 % of the basic duty,
—
four years after the date of entry into force of this Agreement each duty and charge shall be reduced to 70 % of the basic duty,
—
five years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60 % of the basic duty,
—
six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 50 % of the basic duty,
—
seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 40 % of the basic duty,
—
eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30 % of the basic duty,
—
nine years after the date of entry into force of this Agreement each duty and charge shall be reduced to 20 % of the basic duty,
—
10 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 10 % of the basic duty,
—
11 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 5 % of the basic duty,
—
12 years after the date of entry into force of this Agreement the remaining duties shall be abolished.
4. In the event of serious difficulties for a given product, the timetables established in accordance with paragraphs 2 and 3 may be reviewed by the Association Committee by common accord on the understanding that the schedule for which the review has been requested may not be extended in respect of the product concerned beyond the maximum transitional period referred to in Article 6. If the Association Committee has not taken a decision within 30 days of its application to review the timetable, Algeria may suspend the timetable provisionally for a period which may not exceed one year.
5. For each product concerned, the basic duty to be gradually reduced as provided in paragraphs 2 and 3 shall be the rates referred to in Article 18.
The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.
1. Exceptional measures of limited duration which derogate from the provisions of Article 9 may be taken by Algeria in the form of an increase or reintroduction of customs duties.
These measures may concern only infant industries, or certain sectors undergoing restructuring or facing serious difficulties, particularly where these difficulties produce major social problems.
Customs duties on imports applicable in Algeria to products originating in the Community introduced by these measures may not exceed 25 % ad valorem and shall maintain an element of preference for products originating in the Community. The total value of imports of the products subjected to such measures may not exceed 15 % of total imports of industrial products from the Community during the last year for which statistics are available.
These measures shall be applied for a period not exceeding five years unless a longer duration is authorised by the Association Committee. They shall cease to apply at the latest on expiry of the maximum transitional period referred to in Article 6.
No such measures may be introduced in respect of a product if more than three years have elapsed since the elimination of all duties and quantitative restrictions or charges or measures having equivalent effect concerning that product.
Algeria shall inform the Association Committee of any exceptional measures it intends to take and, at the request of the Community, consultations shall be held on such measures and the sectors to which they apply before they are implemented. When adopting such measures, Algeria shall provide the Association Committee with a schedule for the abolition of the customs duties introduced pursuant to this Article. Such schedule shall provide for the phasing-out of the duties concerned by equal annual instalments, starting no later than the end of the second year following their introduction. The Association Committee may decide on a different schedule.
2. By way of derogation from the fourth subparagraph of paragraph 1, the Association Committee may exceptionally, in order to take account of the difficulties involved in setting up a new industry, authorise Algeria to maintain the measures already taken pursuant to paragraph 1 for a maximum period of three years beyond the transitional period referred to in Article 6.