Customs Delays and Payment Challenges — Signs of Progress, Risks Persist
This update is being shared following recent customs clearance delays and payment disruptions in Algeria. While government measures implemented in early August are beginning to ease the backlog, challenges remain, and businesses should continue to monitor developments closely.
Recent Developments in Algeria
Algeria recently faced a significant backlog of goods awaiting customs clearance at ports, airports, and bonded zones. At its peak, as many as 15 vessels were anchored offshore, incurring demurrage costs estimated at $5,000 per day per vessel (after the third day of delay).
These delays have resulted in disrupted supply chains, extended payment cycles and exporters experiencing longer receivables timelines.
The root causes of the delays include:
- Tightened controls on bank transfers: Cross-border payments were subject to increased scrutiny, slowing financial settlements.
- Import program compliance: Importers without approved forecast import programs faced shipment seizures and clearance delays.
- Administrative and financial constraints: Delays in customs and domiciliation procedures affected importers’ ability to pay on time.
- Central bank procedures: Additional controls introduced further friction in the clearance and payment process.
Government response and current outlook
On 4 August 2025, the Ministry of Foreign Trade and Export Promotion launched an accelerated clearance initiative, prioritizing essential industrial inputs. Customs authorities can now permit goods to be released without a fully approved import program, provided importers submit a written commitment and comply with reporting obligations.
Banks have also been instructed to facilitate payments based on endorsed forecast programs. These steps are helping to reduce congestion, particularly for compliant shipments. However, exporters should anticipate that delays and payment difficulties may persist in the near term.
Implications for cross-border trade and credit risk
The recent disruptions in Algeria will impact exporters – particularly those involved in open account transactions – and trade credit insurers alike. Extended payment timelines, administrative hurdles, and financial constraints have increased the overall risk of late or non-payment.
Recovery Advisers has observed a rise in claims activity this year compared to 2024, reflecting the broader challenges faced by businesses trading with Algeria. While recent government measures are beginning to ease clearance bottlenecks, challenges remain, and stakeholders should continue to monitor counterparties and contractual protections closely.
Key takeaways
- Review contract terms: Ensure clauses address demurrage, payment delays, regulatory disruptions and dispute resolution.
- Monitor buyer creditworthiness: Stay informed about importers’ financial health and compliance capacity.
- Stay updated: Track official announcements and procedural changes.
- Engage early: Proactive communication can help manage claims and explore mitigation options.
Need Support?
If you need help assessing credit risk or drafting secure contracts, please email info@expofin.com for tailored support.
Should you require assistance with non-payment issues please visit http://www.recoveryadvisers.com.
