Warning Algeria’s companies of frivolous trade transaction

Vietnam Trade in Algeria has just provided a list of Algeria’s companies related to business of agricultural products and seafood to be lack of seriousness. The list warns Vietnamese companies to be careful in dealing with them.

Vietnam Trade in Algeria has just provided a list of Algeria’s companies related to business of agricultural products and seafood to be lack of seriousness. The list warns Vietnamese companies to be careful in dealing with them.

The list includes five Algerian companies with four of them related to agricultural products and one related to seafood. The seafood company is S.A.R.L EL NADER NEGOCE addressed at Lots n° 202 Boumehrane, 18300 – El-Milia – Algeria, telephone/fax: +213 34 52 62 07; +21334 426992. Email: elnadersarl@yahoo.fr, represented by MrHafid (mobile: +33 679 55 98 19)

Vietnam Trade Algeria stated clearly that Vietnamese companies have recently encountered some issued when dealing with the Algerian customers. Particularly, Vietnamese products have been refused or forced to discount when arriving in Algeria upon some reasons that the price was much lower than that at the point of dealing or they buyer found another supplier with cheaper price. This has caused damages to Vietnam’s exporters.

On the other hand, Algeria regulates that when the shipment arrives at Algeria’s harbor it is obviously owned by the buyer regardless the payment or deposit has not been made or the original document was handed over. In this case, the seller must get the buyer’s permission if he wants to sell another customer or bring the shipment back to his country. If the shipment parks at the port more than 81 days, the Algeria Custom has the right to sell by auction or confiscate. Hiring a lawyer for bringingthe issue to the legal action is expensive, elongated, and ineffective. Some Algerian customers have taken advantage of this and caused difficulties to Vietnamese companies, especially when the cargo arrived at Algeria’s ports.

Thus, Vietnam Trade in Algeria suggests that Vietnamese exporters should require a deposit equal to 40-50% of the cargo value or negotiate the payment condition of a confirmed irrevocable L/C. There are some cases where the buyer breaches the contract all of a sudden despite smooth transactions in previous years. If necessary, Vietnam’s exporters should contact the Vietnam Trade in Algeria for support.

VFM

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