Hello we are looking for information to start exporting goods to Algeria and will be supplying to an existing import/export company however need some guidance on the correct process
Welcome to Open to Export, hopefully between us we should be able to get you exporting to Algeria with ease.
Algeria can be a difficult market to crack for first time exporters due to the following reasons:
– EU Preferential Trade agreements – EUR1 Movement Certificate may be required
– Monetary movements controlled via Algerian Government by Documentary Letters of Credit
– Arab League Nation and therefore Arab-British Certificate of Origin required
– Pre-Shipment Inspection / Conformity Assessment Programme – Certificat de contrôle de qualité may be required
In my answer I have assumed you’re a newbie at all of this, so apologies now if that is not the case, hopefully you should be able to skip down the post(s) to the relevant sections.
First of all you should know that every single product from a biro pen to a Ferrari sports car has an allocated set of digits referred to as a HS Commodity/Tariff code. You will need to establish your products tariff codes in order to export them. You can find out your products tariff codes in two ways:
– By using the online UK Trade Tariff – https://www.gov.uk/trade-tariff
– By calling the Tariff Classification Helpline on 01702 366077 (The call handler can give a maximum of three codes per call)
It’s your responsibility to get your commodity code and licences right, even if you use an agent.
Next I would advise you to know your products, especially as you are dealing with Algeria:
– Who is the actual manufacturer of the products?
– Were the goods manufactured in the European Union? If so do they qualify for Preferential Origin?
– What is the country of origin of your products?
– What standards have your products been tested to?
Also I would read up on Incoterms 2010. Incoterms are the rules of International Trade set out by the International Chamber of Commerce and revised every ten years. Incoterms set out who is responsible for what and where the point of liability passes incase the goods are damaged in transit/held in customs. You can read up on Incoterms here:
If you have the budget available it may be worth subscribing to an International Trade procedures guide such as Tates or Croners and cross referencing your products against the relevant countries individual requirements/considerations. I know that one of these publications offers a 14 day free trial so you can get a feel for your potential markets without any immediate financial commitment.
EUR1 MOVEMENT CERTIFICATES / PREFERENTIAL TRADE
The United Kingdom is part of the European Union and as such UK businesses benefit from EU Preferential Trade Agreements. The EU’s Preferential Trade agreements are fully detailed in Customs Public Notice 827 & Customs Public Notice 828.
Customs Public Notice 827 = Procedure surrounding the trade agreements
Customs Public Notice 828 = Rules surrounding preferential origin
An EUR1 Movement Certificate will enable your consignment to pass into the beneficiary country at a lesser or nil rate of duty/levy. EUR1 movement certificates are issued on a consignment by consignment basis and can only be raised for goods that are manufactured within the European Union that meet the relevant qualifying rules for preferential origin outlined in Customs Public Notice 828.
EUR1 Movement Certificates only cover direct shipments i.e. from UK to beneficiary country and must be raised in the Country of exportation.
If your goods qualify for preference and your consignments meet the criteria above you can apply for an EUR1 Movement Certificate at your local Chamber of Commerce. You can find your local chamber here:
FINANCIAL CONTROLS IMPOSED BY ALGERIAN GOVERNMENT
In late 2009 the Algerian government ruled that no imports could enter Algeria without a corresponding Letter of Credit, as the oil rich country tried to control its ever increasing outflows of capital.
A Letter of Credit is basically a guarantee of payment from a bank that a seller/exporter will receive a payment due from a buyer/importer. The bank guarantees that the seller will receive a specified amount of money within a specified time. In return for guaranteeing the payment, the bank will require that strict terms are met and will want to receive certain documents – for example Bills of Lading – as proof of shipment and meeting of pre-specified terms.
You can read up on Letters of Credit here:
If you are new to export I would personally suggest you get help with your first Letter of Credit from an external organisation such as Business West (Bristol Chamber of Commerce) as it can be riddled with confusing terminology and errors mean delays in payment and additional charges: