Car Imports Ban Lifted in Algeria

Algeria’s cabinet lifted the ban on car imports after the ban failed to reduce the import bill.

Lifting the ban, endorsed in 2014 under President Abdelaziz Bouteflika, follows a surge in the import bill that coincided with a drop in energy revenue caused by a fall in global crude oil prices.

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With the ban on car imports in place, partnerships were formed between Algerian business officials and foreign carmakers so as to set up local assembly operations. However, the measure failed to reduce the bill as most car parts were imported, and thus domestic prices for cars surged.

In a statement, the government, in a bid to encourage car plants to use local parts, exempted assemblies with high local integration from the value-added tax (VAT).

Meanwhile, in Kenya, the government, through the Kenya Bureau of Standards, appointed new inspectors of imported cars, mobile equipment, and spare parts in March this year, a move that seeks to enhance the efficiency of the Pre-Export Verification of Conformity to Standards services.

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EAC Seeks to Promote Regional Automotive Industry by Restricting Imports