Algeria has eased its requirements on importers to open letters of credit (L/Cs) on all of the goods they purchase.

The requirement was introduced last year (DC World News, 12 August 2009) and has proved unpopular in some quarters of Algeria's business community.

Supplementary budget

Algeria's new supplementary budget law has eased the L/C requirement by exempting industries that need to import materials and spare parts essential to their production.

Such importers may purchase materials and parts of a value of up to the equivalent of around US$27,133. Services may also be exempt from the L/C requirement.

Continued requirement

Algeria had been considering ditching completely the L/C requirement (DC World News, 2 August 2010) following robust lobbying against the law by Algerian traders.

But for importers of goods and services for consumption in Algeria, the rule stating that L/Cs must be obtained before they can bring goods worth over the equivalent of around US$1,900 remains.

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