Breaking News
finance & economy

Rationalization Of Imports To Reduce The Annual Import Bill

October 11, 2021

The Professional Association of Banks and Financial Institutions issued an instruction to financial and banking institutions, ordering them to postpone the bank domiciliation of products classified under the “other” category, which is an accounting term that means goods that are not strongly demanded by the market and devour huge amounts of hard currency, intending to rationalize imports, reduce the annual import bill and saving large amounts in the treasury, bearing in mind that this procedure excludes goods destined for sale in the case, such as food products, medicines and medical equipment.

According to an instruction n° 832 issued on October 7 by the Professional Association of Banks and Financial Institutions, signed by the General Commissioner Rachid Belaid, which copy was received by Echorouk, under the title “Framework for the rationalization of imports”, based on a correspondence from the Finance Minister under the n° 2290, dated October 6, obligating the Commerce Minister, according to orders from the Prime Minister, the Finance Minister, Ayman bin Abdelrahman, to take several measures to control and rationalize the import process and prevent wasting large financial amounts.

The same instruction clarified that these procedures relate to the imports of products and goods bearing the tariff category “other goods”, which is an accounting word, which includes products that are not classified within a certain category. The instruction affirms, “Accordingly, your services must be noted that all imports related to the “Other Goods” section have been postponed, with the obligation to implement this decision strictly”.

“The institutions, public offices and companies active in the field of import destined for sale on the case, and commercial companies importing medicines and medical equipment are not concerned with this procedure”.

The “other” category mentioned in the instruction, as confirmed by a source from the banking sector, means the products and goods with a classification that is not specified by name, and is not included in the category of other products authorized for import, such as white products, leather and foodstuffs, as in the “other” classification lists there are all the products that the market does not need, knowing that the decision aims to reduce the import bill, especially since it is known that these products whose importation was postponed drain a large amount of hard currency, without constituting a need for the market.

Previously, President Abdelmadjid Tebboune ordered, during the appointment of the members of the National Social, Economic and Environmental Council weeks ago, to reduce the import bill and put an end to all forms of waste, asserting that import is essential and no country can abandon it, but it must be conducted within reasonable limits, without exaggeration.

The President added that there is no funding for imports anymore from foreign exchange reserves, but all import operations will be financed from oil revenues, from what we produce locally, and from non-hydrocarbon export income, which today amounted to 3.2 billion dollars, and is expected to reach 5 billion dollars by the end of the year, while he confirmed that it will not be less than $4.2 billion, pointing to a reduction in the value of imports, which was equivalent to $60 billion years ago, to $31 billion this year, “but the process was carried out in an organized and structured manner”, according to Abdelmadjid Tebboune.