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New rules for importing mobile phone products and home appliances in CKD/SKD condition


We have learned that the Algerian authorities, (See letter of 30 September 2019 from the Professional Association for Banks and Financial Establishments sent to banks and financial institution), have recently introduced new rules to regulate the import of mobile phone products and home appliances (white and grey goods) in Complete Knock Down (CKD) / Semi Knock Down (SKD) condition.

The decision has been made to replace the cash payment currently applicable with payment deferred for nine months and for a maximum of one year. These imports will also have to be carried out according to the Incoterm FOB with priority use wherever possible of national maritime transport capacities.

It is important to note that the use of this Incoterm (FOB) is set to be expanded to all imports by 31 December 2019 at the latest.

We understand that these new measures are part of the policy to further tighten access to foreign exchange reserves in an exceedingly difficult economic context.

Nevertheless, valid concerns may be raised regarding the impact of these new rules on business relations between Algerian importers and their foreign suppliers.

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