Algeria eliminates taxes, duties on U.S. corn and co-products
After a three and a half year effort, the U.S. Grains Council, in cooperation with USDA's Foreign Agricultural Service—Algeria, has successfully influenced the removal of the value added tax (VAT) and custom tax on all feed imports in Algeria, including corn, distiller's dried grains with solubles (DDGS) and corn gluten feed (CGF). Previously, the VAT and custom tax for DDGS and CGF had been set at 17 percent and 30 percent respectively, resulting in no U.S. DDGS or CGF exports to Algeria. The VAT and custom tax for corn was previously set at 7 percent and 5 percent.
"Without the Council's continuous efforts and support from our allies in the Algerian feed industry, there is no way that products like DDGS and CGF would have been included in the list of feed ingredients that have had their duty and VAT reduced to zero," said Cary Sifferath, USGC regional director based in Tunisia.
The Council first became active in Algeria in 1986 and has conducted programs whenever the political situation has allowed. In May of 2009, the Council partnered with ONAB, Algeria's quasi-governmental national poultry program, to conduct feeding trials on the inclusion of DDGS in broiler diets. The Council also has worked with ONAB in providing technical training and buying and pricing courses on corn use. With the recent success the Council had in Morocco by reducing the VAT on DDGS, it brought Algerian government officials and key dairy and poultry industry players to Morocco to see how their use of DDGS and CGF has developed over the years.
Because of these and other Council programs in Algeria, Algeria has maintained its position as one of the top export markets for U.S. corn. While the period for this reduction ends Dec. 31, 2012, the council is working to secure the zero import duties and taxes and VAT will be extended into 2013. This will influence increased U.S. market share and lead to a greater future of U.S. DDGS and CGF in the Algerian market.