Exporting to Algeria

Algeria, the largest country in Africa by area, is an Arab country with a population of 45 million. It is one of the richest countries in Africa, thanks to its abundant natural gas and oil resources. Due to its rich culture and large market, it has a very high commercial potential. A significant portion of the country’s land (80%) is located in the desert, resulting in a large area being composed of desert. Due to the limited amount of arable land, Algeria imports significant amounts of food products from Turkey.

Algeria, a country that has positive business experiences for the business culture and the Turkish people, is warm and welcoming towards Turks. Although this increases the ease of doing business, it is prudent to be cautious given the size of the market and competitive factors. Let’s take a closer look at the details of your journey to export from Turkey to Algeria.

How to Export to Algeria?

Recently, some situations have arisen that need to be considered in the import-export situations that have been interrupted. Following Algeria's announcement in September 2022 to halt exports of 24 products from Turkey, many exporters have found themselves in a difficult situation and have become cautious in their future plans. The delay in official announcements has made it difficult to obtain information, causing commercial relations in the country to be disrupted. The unexpected timing of the announcements of protectionist policies complicates matters for business people as well. For these reasons, it is essential to closely monitor changing regulations and decisions, understand the market, and make the right decisions in product selections.

In such situations where decision-making becomes difficult, the ODS Consulting Group is ready to assist you with a second opinion about your general planning and company performance. We would like to provide you with a new perspective with our long-standing success and experience.

What Companies Export to Algeria?

Algeria also uses shopping sites similar to the UAE and Morocco. Most users of these e-commerce sites focus their shopping on phones, televisions, electronics, and household goods. These e-commerce sites can be listed as places like Jumia and Amazon. The country, with an internet penetration rate of 57.5%, shows fewer internet users compared to other countries. Beyond e-commerce, various sectors are prominent in our exports from Turkey to Algeria, where intensive exports occur. Food products (milk, cream, dry legumes) and chemical oils are at the top of the list, while many machinery parts and iron-steel products are also reaching Algeria from our country. It will be the best option for exporting companies to conduct product research and thoroughly understand their target market and act accordingly.

What Documents Are Needed to Export to Algeria?

• To export to Algeria, you must have a company. You can carry out the export of the products you choose within your company.
• In some instances, a license may be required in the Algerian export practice. It is recommended to obtain the necessary information from the relevant authorities in Algeria.
• All import and export operations are subject to foreign exchange control within Algeria. This control can be defined as currency exchange rate supervision.
• Algeria, which is not a member of the WTO, is free to change its foreign trade practices and taxes, therefore exporting companies may be subjected to unexpected large increases at any time. These news items must be closely monitored.
• If you wish to send products under micro export, you must possess a micro export document called ETGB (Electronic Commerce Customs Declaration). With this document, you can quickly send your products with authorized express courier companies and you may encounter VAT rates up to 18% on products valued within the limits of 7,500 Euros and 150 kg.
• You must prepare a commercial invoice. These invoices detail various information and are requested by the relevant authorities.
• You must prepare international shipping and delivery documents.
• Authorized institutions may request a certificate of origin in some cases. This document proves that your product is produced in the country from which it was sent.
• You are required to meet the required standards for your food and chemical products and to have the necessary certifications. In Algeria, where strict controls are conducted, security inspections are carried out based on compliance with ethical standards.

What are the Export Taxes to Algeria?

It has been revealed that tax amounts can show significant increases under the rules applicable to Import and Export Transactions dated 2003 in Algeria. Algeria, which applies a tax rate between 30% and 120% on nearly 1,000 products for which restrictions have been lifted, proceeds solely according to its own rules regarding customs duties. It would not be incorrect to say that most products are subject to a 70% tax. In addition, customs duties of 5%, 15%, and 30% are applied to raw materials and unprocessed products, and VAT is applied at a rate of 19%.

According to the 2022 regulations, some individual exemption changes have been made. Products valued up to 10,000 Algerian dinars have been exempted from import taxes. For new and unused goods between 10,000 Algerian dinars and 200,000 Algerian dinars, it has been stated that taxes will be paid between 70% and 160%. For items between 50,000 and 300,000 Algerian dinars, it has been stated that a tax will be decided based on a rate of 70% to 160% in relation to the item’s own tax. According to the latest regulation, a tax of 75% will be applied to unused items sent by express mail that cannot be commercialized and do not exceed a value of 100,000 Algerian dinars.

What Products Are Exported to Algeria?

• Soybean oil and fractions (chemically unmodified) = 112,503 (showed a change of +212.2% compared to the previous year.)
• Milk, cream (concentrated, containing added sugar or other sweeteners) = 53,980 (+636.5%)
• Parts and components for road vehicles = 51,506 (+19.4%)
• Stoves, kitchen stoves, and cooking appliances made of iron or steel, barbecues, grills, gas stoves, etc., along with their parts and components = 48,693 (+13.4%)
• Iron ores and concentrates = 39,363 (+8.7%)
• Plastic monofilaments, thin and thick rods and profiles (width of the largest cross-section > 1mm) = 35,935 (-1.2%)
• Non-woven textiles (whether treated, plastered, coated, or laminated) = 33,920 (+34.7%)
• Flat rolled products of iron or non-alloy steel (width >= 600 mm) = 29,290 (+31%)
• Dried legumes (without shells) (split seeds) = 24,022 (+53.3%)
• Profiles of iron or non-alloy steel = 23,329 (+57.6%)
• Yeast = 23,236 (+36.9%)
• Flat rolled products of iron or non-alloy steel, width ≥600 mm (coated) = 21,089 (+40.4%)
• Acrylic polymers (in primary forms) = 19,093 (+78.1%)
• Fiberboards made from wood or other woody materials = 18,603 (+15.6%)
• Suits, sets, jackets, blazers, trousers, overalls, and shorts (excluding swimwear) for men and boys = 18,023 (-15.5%)

(Source: Data taken from Trademap TR for the year 2021, values are in amounts of x1000USD.)

What is the Trade Volume Between Turkey and Algeria?

The growth of our foreign trade activities towards African countries is a goal, and both investors and state leaders have started to take steps in this regard. We can say that our relations with Algeria are also strengthening progressively, and both our export and import activities are increasing. In the last 10 years, the foreign trade balance in favor of Turkey in our economic relations with Algeria resulted in a trade surplus of about 1.2 billion in 2021. Today, the trade volume between Algeria and Turkey is 4.2, and it is expected that this figure will exceed 5 billion by 2025.