New import restrictions for wire rods in Algeria

The Italian Trade Agency (ICE) has issued an important update regarding new regulations for importing steel products into Algeria, based on communications from ABEF (Association of Banks and Financial Institutions of Algeria). This measure could significantly impact all companies doing business with Algeria.

Import ban overview

Effective October 1, 2024, the Algerian government banned importing certain steel products intended for resale without any changes. These products are identified by specific customs codes, and the purpose of the ban is to protect local production by limiting imports that do not add value. 

However, this ban does not apply to transactions initiated before October 1, 2024, as long as they are properly documented, such as with bank paperwork or valid shipping documents. This ensures that companies with ongoing transactions before the deadline can continue without disruption.

Clarification on customs code 7227 90 00 00

On October 6, 2024, a follow-up communication clarified that the ban on products under customs code 7227 90 00 00 applies only to "fil machine en autres aciers alliés" (wire rod in other alloy steels). Other products under this same code are not affected, which is important for importers to understand to remain compliant.

Impact on the industry

These new regulations are likely to affect companies trading steel with Algeria, particularly those that import for resale without making any modifications to the product. Such companies will need to reassess their operations and supply chains to adapt to these changes. 

The emphasis on restricting imports that are not processed in any way is consistent with policies in other countries, such as India and Turkey, which seek to boost their own industries and become more self-sufficient. This trend means international traders, especially those in the metals sector, need to adjust their strategies to navigate these protectionist policies, such as by diversifying supply chains or developing value-added services.

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In the picture, the Algiers harbour. Image by Ludovic Courtès, CC BY-SA 3.0, via Wikimedia Commons