Algeria's New Payment Transfer Regulations

 Algeria’s 2021 Finance Law introduced new, unprecedented payment transfer delays for finished products destined for import into Algeria. Article 118 of the law stipulates that payment transfers are subject to a term of 45 days, starting from the day of shipment. This term does not apply to imported goods that are “strategic,” consumer food products, “of emergency nature for the national economy,” or destined for state institutions or administrations will be exempt. Government officials argue that the new legislation is necessary to provide customs officers with additional time to verify and perform their duties.
 
The new payment delay rule will likely translate into stringent import practices and will inevitably slow down the pace of imports to Algeria. Low oil and gas prices, which have reduced government revenues and forced the Algerian government to slash spending in a state-dominated economy, are undoubtedly the driving force behind Article 118.  Slowing the pace of imports will likely curtail the depletion of the country’s foreign currency reserves going forward. 
 
In addition to reducing Algeria’s attractiveness as a trade destination, these payment delays will also increase Algerian firms’ risk should the central bank devalue the Algerian dinar.

For more information contact our office in Algiers, office.algiers@trade.gov.