Advisory for Indian exporters to Algeria
The Embassy of India recommends that contracts should be negotiated with the Algerian companies on the basis of confirmed and irrevocable Line of Credit through reputed International banks and not on the basis of Cash on Delivery/Cash against documents. Exporters need to exercise due diligence in ensuring that all business details are included in the written contract.
IMPORTANT:
1. The Bank of Algeria vide its Instruction No. 05-2017 dated 22 October 2017 fixed conditions relating to domiciliation of the operations of import of goods intended for resale as final product. These instructions require the Algerian importers to do the domiciliation procedures at least 30 days prior to the shipment of goods. It also requires a deposit of 120% of the total value of the import transaction by the Algerian importer. Indian companies must dispatch their consignments only after completion of banking procedures (bank domiciliation) by the Algerian company as per above instructions.
2. As per the latest instructions from the Ministry of Trade and Promotion of Exports of Algeria issued in April 2022 Algerian importers are now required to obtain a document issued by the Algerian Export Promotion Agency ALGEX that attests the unavailability of the products to be imported. This document will be submitted by Algerian importers to their banks for domiciliation procedures.
3. Without the document issued by ALGEX an importer from Algeria can not clear imported goods. The Embassy has received multiple complaints and problems faced by Indian exporters due to Algerian importers not being in possession of the above document issued by ALGEX.
4. It is strongly reiterated Indian exporters must ascertain that their clients have the documents issued by ALGEX before dispatching the goods.
Algiers, 21 December 2022
