I. Introduction to the Algeria Coffee Market:
Algeria is a country that does not grow coffee, so they have to import 100% to meet domestic demand. Coffee is the most popular beverage in Algeria, with an average per capita consumption of over 3kg of coffee per year. Each year, Algeria imports around 130,000 tons of coffee beans with a value of about $300 million. Coffee is usually imported in the form of green beans and then processed at factories according to the preferences of Algeria people.
Robusta coffee varieties account for the majority of Algeria's total coffee imports (over 85%). The total import duties and fees into Algeria are 61%, including import duties of 30%, value-added tax of 19%, domestic consumption tax of 10%, and solidarity tax of 2%.
Vietnam, Ivory Coast, Indonesia, Brazil, Italy, and Uganda are the main countries that supply coffee to Algeria.
According to assessments, the coffee market in Algeria still has potential for Vietnamese coffee, and in the near future, coffee can become Vietnam's number one export item to this market. Vietnamese businesses can focus on producing and exporting processed or instant coffee with higher added value to take advantage of this opportunity.
II. Necessary procedures for exporting coffee to Algeria:
1. Policies for coffee exports:
According to current regulations, coffee is not included in the list of prohibited or restricted exports. Therefore, coffee exporters can proceed without applying for a license.
The HS Code for coffee belongs to group 0901, and depending on the processing method, the appropriate HS code will be classified. The export duty on coffee is 0%, and the VAT is 0%.
2. Customs procedures for export: a. Export dossier for coffee: The export dossier required for exporting to Algeria includes:
C/O form B (Certificate of Origin from Vietnam)
C/O form ICO (Certificate of Origin specifically for coffee)
Certificate of Quality, Quantity, Weight
Other documents (depending on the buyer's requirements)
b. Export procedure: Step 1: The customer provides shipment information to H-Cargo to arrange booking with the shipping line.
Step 2: The customer provides necessary documents for customs declaration.
Step 3: After booking is confirmed, the customer will take an empty container and bring it to the warehouse for loading. At this time, the customer also performs phytosanitary inspection, fumigation, and quality checks at the warehouse or port.
Step 4: After the cargo is properly packed according to the contract requirements, the customer moves the container to the port and waits for export.
Step 5: Perform customs clearance at the export port. After the shipment is cleared, the shipping staff will enter the vessel's logbook.
Step 6: After the vessel departs, the document officer will apply for the Certificate of Origin, fumigation certificate, phytosanitary certificate, and other necessary documents.
Step 7: After all documents are finalized, H-Cargo will send the original documents to the customer.
Note: Typically, two types of fumigants are used, Methyl Bromide (CH3Br) and Phosphine (PH3). However, the use of Methyl Bromide is prohibited in the Algeria market. Therefore, customers need to request the use of Phosphine for fumigation when exporting their products to Algeria.
III. Risks and limitations when exporting coffee to Algeria:
1. Market policy risks:
Businesses need to understand and comply with the regulations and laws related to coffee imports into Algeria to avoid legal violations and being prohibited from entering this market.
Companies can contact the Vietnamese Trade Office in Algeria to update the latest legal and policy information:
2. Payment risks:
Although the Algeria market has potential, there are also inherent payment risks. Therefore, it is recommended to use secure payment methods such as an irrevocable letter of credit (L/C) or documentary collection with confirmation (DP, CAD at sight) while requesting a deposit from customers of at least 20%. However, since Algeria banks do not allow domestic deposit transfers, businesses can propose that customers make the deposit from abroad.
When the cargo arrive at the port, if the customer or the Algeria bank delays payment for a week, the exporter should immediately notify the Trade Office, Embassy, and relevant authorities such as the Asia-Africa Market Department (Ministry of Industry and Trade) for timely advice and assistance. This helps avoid prolonged storage at the port, which can lead to warehouse costs, fines, and the Algeria customs auctioning off the cargo from the public fund (according to regulations, if the cargo remains at the port for 4.5 months after being unloaded from the ship, Algeria customs will proceed with the auction).
The above is all important information that exporters to Algeria need to take note of. H-Cargo is a company specializing in customs procedures and transportation of cargo to the Algeria market. If you want to learn more and stay updated with the latest information from this market, please feel free to contact us for free consultation.
Hotline: +84 377 080567 ( Mr. Thien )