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III. TRADE POLICY BY MEASURE

(1) OERIEW

1. Peru's solid economic growth since its last Trade Policy Review has been accompanied by acontinuous process of liberalization and modernization of its trade regime. Peru has substantiallyreduced applied MF tariffs! from 1".# per cent in 1$$$ to %.& per cent in pril &((). This mainlyreflects reductions in the rates applied to capital goods and inputs not produced in Peru. s a result!there has been a rise in the low level of tariff dispersion previously observed. ll tariffs aread valorem* those applied to +# tariff lines corresponding to agricultural products are sub,ect toreductions or surcharges in the form of specific duties lin-ed to international prices.

&. Peru has bound its entire tariff schedule! mostly at "( per cent. The greater predictability of the conditions of access to its mar-et resulting from this measure has been somewhat reduced by the

mar-ed difference between average applied and bound rates. n this connection! the authorities have pointed out that Peru has not increased its tariffs since 1$$1.

". n the conte/t of its participation in the ndean 0ommunity! since &((# Peru has granteddutyfree treatment to all imports originating in 2olivia! 0olombia! 3cuador and 4enezuela. t alsogrants preferential treatment to imports from 0hile! 0uba! M3R0567R and Me/ico.

+. Peru has introduced measures to facilitate trade. 0ustoms clearance times for goods sub,ectto physical or documentary inspection have been reduced by about "( per cent since &((&. round"8 per cent of imports are sub,ect to such inspections at the main customs facilities. Peru eliminatedits preshipment inspection programme in May &((+. 6ince &((+! Peru has applied a customsclearance charge! levied on a specific basis! to imports valued at more than 69. 1(!"8( :about76;"!&8. Peru prohibits the importation of beverages manufactured abroad under the name ?Pisco?! aswell as of used clothing and footwear ?for commercial purposes?! and used engines and parts for roadvehicles. mports of several products are sub,ect to authorization on health or environmental groundsor to protect the national identity.

). @uring the review period there was an increase in the number of antidumping investigations!which focused on a handful of products and e/porters. t the end of &((#! there were "+ definitiveantidumping measures in force. Peru maintains countervailing duties in ,ust one case and appliedtwo provisional safeguard measures to AT5 Members during the review period.

%. Peru has maintained an active programme of notification of sanitary and phytosanitarymeasures! all of which are based on international standards. There appears to be a limited number of technical regulations in force and! as a general rule! compliance is not verified at the border. Peru has

established a system to ensure that regulations in general are not more traderestrictive than necessary.

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$. Peru does not apply charges or ta/es on e/ports. few e/port prohibitions! mainly on woodand certain plants and plant products! are in place! for the purpose of promoting local processing and

investment! controlling access to genetic resources or protecting the environment.

1(. Peru maintains a ?simplified? duty drawbac- scheme! under which e/porters receive 8 per cent of the f.o.b. value of their e/ports or half of their production cost! whichever is the smaller. Thissimplified regime does not provide any mechanism for ensuring that the amount refunded does note/ceed the value of the duties paid. n mid&((8! Peru abolished the e/port reBuirements thatcompanies had to fulfil in order to obtain the benefits available under the 03T056 and=5FRT0 programmes. The income from 03T056 and =5FRT0 sales continues to bee/empt from income ta/.

11. There are valuable potential synergies in Peru between competition policy! intellectual property protection and trade remedies! insofar as they are all the responsibility of a single authority.

t is therefore important to build up the institutional capacity of that authority. The ambitious privatization programme generated about 76;1 billion in 6tate revenue between &((1 and &((#. tthe end of &((#! there were about 8( firms with 6tate participation! mainly in the services sector.

1&. Peru continues to maintain a number of incentive programmes to promote business activityand investment. The incentives! many in the form of ta/ e/emptions! seem to have imposed asignificant burden on the public finances. t would therefore be useful to identify those that result innet benefits for the economy and to consider rationalizing the others. Peru too- an important step inthis direction at the beginning of &(() with the establishment of a general framewor- that regulatesthe granting and renewal of ta/ incentives.

1". 8( per cent reduction in income ta/ is available to some agricultural producers providedthey use a certain number of domestic inputs. n the fisheries sector! in some cases the granting of certain ta/ benefits and reductions in the price of fishing permits are contingent upon the catch beinglanded in Peru. The authorities have pointed out that the legal limits on the use of imported dairyinputs for the production of liBuid mil- and derived products are not applied in practice.

1+. Peru is not a member of the AT5 Plurilateral greement on >overnment Procurement. 6ince&(((! the regulatory framewor- on government procurement has undergone some important changes.The Peruvian legislation grants a &( per cent preference margin to bidders that use Peruvian goods!and in some cases only domestic food products may be purchased. lthough these measures might promote national production! they also result in higher costs for ta/payers.

18. Peru has notified the AT5 of its legislation for the protection of intellectual property! whichwas reviewed by the TRP6 0ouncil in &((1. t has also provided answers on enforcement in theTRP6 conte/t. The protection of traditional -nowledge and biodiversity has been a priority for Peru.

(2) MEASURES A**ECTI+, IMPORTS

($) Cu-"- 0r"%e!ure-

1. The Ministry of 3conomy and Finance is the entity responsible for ?planning! directing andmonitoring customs policy?.1 The ational Ta/ dministration 6upervisory uthority :67T< isentrusted with the application of that policy.& The entity which performed that function up to &((&

1

rticle 8 of Cegislative @ecree o. 1%" of 18 Dune 1$%1.& rticle 18 of the Regulation on the 5rganization and Functions of 67T! approved by 6upreme@ecree o. 118&((&P0M of &% 5ctober &((&.

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was the ational 0ustoms 6upervisory uthority. n Duly &((&! for the purpose of improving customsand ta/ management! the >overnment ordered that the ational 6upervisory uthority be merged

with 67T." Peru is a member of the Aorld 0ustoms 5rganization.

&. mporters can complete import formalities without the need to employ a customs bro-er. For this! they must be authorized by 67T! which depends on their complying with the reBuirements of the Regulation to the >eneral 0ustoms Caw.+ 67T's authorization is not reBuired for imports witha value of not more than 76;&!(((. n practice! most importers do employ a customs bro-er tocomplete import formalities.

". The data on the cargo manifest for air and land transport must be transmitted to 67T nolater than the moment at which the means of transport come under the control of the competentauthorities.8 For maritime cargo the deadline is +% hours before the cargo arrives in port! or before thevessel sails for Peru if the ,ourney is going to ta-e less than +% hours. The cargo manifest must be

presented to the customs authority upon arrival of the means of transport.

+. n general! it is not possible to present the customs declaration :referred to as the 6ingle0ustoms @eclaration or @7< before the goods arrive in Peru. # n addition to the declaration! it isnecessary to produce the transport document! the invoice or an eBuivalent document and! if issued! thetransport insurance document.) For the importation of some goods additional documents are reBuired!such as certificates of origin or authorizations :sections :iii< and :vi< beloweneral 0ustoms Caw! approved by 6upreme @ecree

o. (11&((83F of Danuary &((8.8 rticle 1$ of the Regulation to the >eneral 0ustoms Caw! approved by 6upreme @ecree

o. (11&((83F of Danuary &((8.# rticle +8 of the 6ingle Earmonized Te/t of the >eneral 0ustoms Caw! approved by 6upreme @ecree

o. 1&$&((+3F of 1& 6eptember &((+.) rticle )& of the Regulation to the >eneral 0ustoms Caw! approved by 6upreme @ecree

o. (11 &((83F of Danuary &((8.% Teledespacho Aeb :http99www.aduanet.gob.pe9oladpdeneral 0ustoms Caw! approved by 6upreme @ecree

o. 1&$&((+3F of 1& 6eptember &((+. 6ee 6pecific Procedure physical identification and e/traction andanalysis of samples! TP3.((.(" of 1 February &((1.1( 6pecific Procedure control of restricted goods! TP3.((.(# of $ Duly &((+.

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location! and the availability of personnel. ccording to 67T data on the maritime and airportcustoms offices at 0allao! in &((# 1" per cent of imports were sub,ected to physical controls and a

further &+ per cent to documentary controls. The rest were not sub,ected to any control duringcustoms clearance.

%. 0ustoms duties are payable as soon as 67T has accepted and assigned a number to thecustoms declaration. t is possible to pay electronically. mporters may obtain the release of their goods even if they disagree with the amount of duty determined by 67T! sub,ect to the provisionof security eBuivalent to the difference between the duties resulting from the declaration and thosedetermined by 67T.11

$. The clearance times for goods sub,ect to control have fallen by about "( per cent since &((&.ccording to 67T! clearance ta-es between &." and 8.$ wor-ing hours for goods sub,ect todocumentary control and between 1".+ and 1$ wor-ing hours for goods sub,ect to physical control. t

ta-es around two hours to clear goods not sub,ect to control.

1(. 67T has an advance customs clearance system. To ta-e advantage of this system it isnecessary to have submitted at least ten customs declarations during the year preceding that of thefirst importation under the system! and to comply with the other reBuirements laid down in ational0ustoms 6upervisory uthority Resolution o. ()$&((#967T9 of &8 February &((#. Theadvance system enables importers to submit their customs declaration up to "( wor-ing days beforethe arrival of the goods in Peru. t also allows the goods to be transferred directly to the importers'warehouses :instead of customs warehouses< for any physical controls! sub,ect to payment of thecustoms duties. t is not possible to ma-e use of the advance customs clearance system once themeans of transport has arrived at the point of entry into Peru. mports under the advance system mustsatisfy all the documentary reBuirements imposed on other imports.

11. 5b,ections to administrative decisions must be lodged with the customs department whichissued the decision in Buestion. ppeals must be lodged with the Fiscal Tribunal.1& Aith somee/ceptions! complaints must be dealt with within si/ months of being filed. 1" n &((#! the FiscalTribunal ruled on "" appeals concerning tariff classification.

1&. 6tarting in &(1(! 67T will have to issue ?advance rulings? in response to inBuiries fromusers concerning classification or the criteria for determining the value of goods to be imported. 1+ twill also have to issue advance rulings on the importation of goods previously e/ported for repair or alteration in countries that have signed a preferential trade agreement with Peru.

1". To combat smuggling! 67T has developed various specific procedures to supplement Caw o. &%((% of 1$ Dune &((" and the Regulation thereto.18 Moreover! in ugust &(("! Peruvian and2olivian 0ustoms signed an agreement enabling ,oint antismuggling operations to be conducted onthe border between the two countries.1#

11 rticle 1$( of the Regulation to the >eneral 0ustoms Caw! approved by 6upreme @ecree o. (11&((83F of Danuary &((8.

1& rticle 111 of the 6ingle Earmonized Te/t of the >eneral 0ustoms Caw! approved by 6upreme@ecree o. 1&$&((+3F of 1& 6eptember &((+.

1" umber ) of >eneral Procedure ta/ complaints! F>RP>.(+ of + Danuary &((+.1+ rticle % of Caw o. &%$)) of $ February &(().18 6ee procedures for the prevention of smuggling and border control at http99www.sunat.gob.pe9

legislation9procedim9pcontrab9inde/.html.1#

67T! ?0ustoms of Peru and 2olivia sign agreement on a ,oint antismuggling campaign?! PressRelease o. ($$&((" of ugust &((". 0onsultated at http99www.sunat.gob.pe9noticiero6unat9 prensa9&(("9np(%(".htm.

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1+. Peru ended preshipment inspection in May &((+.1) The programme had been in operationsince 1$$&.

($$) Cu-"- 'a#ua$"4

1. Ahen preshipment inspection ended! 67T too- various measures designed to improve itsability to verify import prices in order to prevent undervaluation. For e/ample! it introduced staff training programmes and measures to strengthen its statistical analysis capacity and e/tend the use of T tools. Moreover! 67T is see-ing to optimize the customs clearance process in order toconcentrate more resources on the verification of value.

&. Peru applied the 0ustoms 4aluation greement to half the tariff universe until March &(((. tthen notified the AT5 that it would apply that greement to the entire tariff universe as frompril &(((.1% Peru has notified its customs valuation legislation to the AT5! but has not replied to the

chec-list of issues.1$ t incorporated the decisions of the AT5 0ommittee on 0ustoms 4aluation in itslegislation by adopting 6upreme @ecree o. 1%#$$3F of &$ @ecember 1$$$.

". Aith regard to the special and differential treatment provisions of the 0ustoms 4aluationgreement! Peru maintains reservations with respect to the reversal! at the reBuest of the importer! of the order of application of the deductive and computed value methods and the application of rticle 8.&! whether or not the importer so reBuests.&(

+. 67T determines the customs value on the basis of the c.i.f. value of the product! which inturn must be based on the transaction value! e/cept in specified cases. &1 The other valuation methodsmust be applied in the order prescribed in the 0ustoms 4aluation greement. && The Peruvianauthorities have pointed out that in recent years the customs value of %8 per cent of declarations has

been determined on the basis of the transaction value.

8. Aithin the conte/t of documentary and physical controls! 67T compares the declaredvalue with a price indicator based on the transaction value of ?identical or similar? goods. &" The priceindicators come from previous transaction values analyzed by 67T to show that they areconsistent with mar-et prices. f the declared value is lower! 67T notifies the importer of its?reasonable doubt?! and the latter may opt to pay the duties on the basis of the 67T price indicator!thereby terminating the reasonable doubt procedure. lternatively! the importer has five wor-ingdays! which can be e/tended by a further five! to ,ustify its declaration. 5nce this period has e/pired!67T must accept the declared value or determine the value of the goods within five wor-ingdays.&+ This period may be up to "( wor-ing days from the notification of reasonable doubt if 67T establishes a provisional value. The importer may remove its goods upon receiving the

1) Caw o. &)$)" of &) May &((".1% AT5 document >9098>94C9&1 of &8 February &(((.1$ PeruGs notifications are contained in AT5 documents >94C9919P3R91 of &8 5ctober &((1!

>94C9919P3R9& of 1# February &((+ and >94C9919P3R9" of &" May &((8.&( AT5 document >94C9A918# of &) 6eptember &((#.&1 rticles " and % of the Regulations for the 4aluation of >oods in accordance with the AT5

greement on 0ustoms 4aluation! approved by 6upreme @ecree o. 1%#$$3F of &$ @ecember 1$$$.&& rticle & of the Regulations for the 4aluation of >oods in accordance with the AT5 greement on

0ustoms 4aluation! approved by 6upreme @ecree o. 1%#$$3F of &$ @ecember 1$$$.&" 6pecific Procedure valuation of goods in accordance with the AT5 4aluation greement!

TP3.(1.1(a of 1$ @ecember &((".&+ rticle 11 of the Regulations for the 4aluation of >oods in accordance with the AT5 greement on0ustoms 4aluation! approved by 6upreme @ecree o. 1%#$$3F of &$ @ecember 1$$$.

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reasonable doubt notification! sub,ect to the provision of security eBuivalent to the difference betweenthe duties resulting from the declared value and those calculated from the price indicator.

#. The values declared by ?freBuent? importers are accepted automatically! without beingcompared with 67T's price indicators.&8 To be considered a freBuent importer! it is necessary tohave imported goods worth 76;% million or more in the previous calendar year :or 76;" million if 76;1 million or more has been e/ported< and to comply with the other reBuirements of 6upreme@ecree o. 1$"&((83F of "1 @ecember &((8. 67T is authorized to verify the value declared byfreBuent importers within the conte/t of postclearance controls. 2etween May and @ecember &((#!freBuent importers accounted for appro/imately 8" per cent of the f.o.b. value of imports.

). Aith respect to the customs valuation of computer media! 67T ta-es into considerationthe value of the medium and not that of the data it contains! provided that the commercial invoicedifferentiates between the prices of the medium and the data.&)

%. 0ustoms duties are assessed in 76 dollars and payment is made at the e/change rateannounced on the date of payment by the 2an-ing and nsurance 6upervisory uthority.

($$$) Ru#e- "5 "r$g$4

1. Peru has notified the AT5 that it applies preferential rules of origin in the framewor- of theC! the ndean 0ommunity and the >lobal 6ystem of Trade Preferences among @eveloping0ountries.&% t has also notified that it applies nonpreferential rules of origin to imports sub,ected toantidumping or countervailing duties.&$

&. Aithin the conte/t of Peru's preferential agreements! the basic criterion for determining the

origin of products that incorporate thirdcountry inputs is change of tariff heading or! alternatively! thec.i.f. value of the thirdcountry inputs! which may not e/ceed a certain limit :in general! 8( per cent of the f.o.b. value of the finished product< :Table .1

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Ta6#e III.1

Pr$4%$0a# "r$g$4 %r$er$a u4!er 7e 0re5ere4$a# agreee4- -$g4e! 6& Peru

Agreee4 C7a4ge "5%#a--$5$%a$"4 a#ue a!!e! %r$er$"4a Ma$4 0r"!u%- -u6e% " -0e%$5$%reu$ree4-

0artagena greement:@ecisions o. +1# and o. +1)of the 0ommission of thendean 0ommunity<

E6 heading:+digit<

8(H of f.o.b. value of finalgoods :#(H of f.o.b. value for products of 2olivia and3cuador<

Mineral and chemical products! metals!machinery! cloc-s and watches! plastics!te/tiles and madeup te/tile articles! productsof the automotive sector! oilseeds

Me/ico :Partial 6cope3conomic 0omplementaritygreement! P.03 %<

E6 heading:+digit<

8(H of f.o.b. value of finalgoods

Te/tiles and madeup te/tile articles!machinery and the products contained inC Resolution o. &8& b

0hile :Partial 6cope3conomic0omplementarity greement!P.03 "%<

E6 heading:+digit<


Te/tiles and madeup te/tile articles! products derived from zinc and copper! pharmaceuticals! agrichemicals! fruit ,uicesand nectars

0uba :Partial 6cope3conomic0omplementarity greement!P.03 8(<

E6 heading:+digit<


Products contained in C Resolution o. &8& b

M3R0567R :Partial 6cope3conomic 0omplementaritygreement! P.03 8%<

E6 heading:+digit<

8(H of f.o.b. value of finalgoods :+(H from seventh yearafter entry into force of thegreement<

Mil-! food preparations! te/tiles and madeupte/tile articles! footwear! manufactures ofiron or steel! and machinery

a 3/pressed as a ma/imum percentage of the c.i.f. value of the inputs from third countries. b The products contained in Resolution &8& include dairy and milling industry products* oils* fish preparations* sugar and

confectionery products* preparations of fruit and vegetables* wine* chemical products* manufactured articles of leather andwood* products or iron or steel* manufactured articles of copper! bismuth! cadmium or antimony or cast iron* and machineryand taps! coc-s and valves.

Source AT5 6ecretariat.

". The nonpreferential rules of origin are applied to prevent importers evading payment of antidumping or countervailing duties by dispatching the goods from a country different from that affected by those duties. Products sub,ect to an antidumping or countervailing measure must be accompanied by a certificate of origin! unless they originate in the country affected by the measure. For productswith nonpreferential origin criteria established by M03T7R! the certificate of origin must beissued in conformity with those criteria. s at mid&(()! M03T7R had issued nonpreferentialorigin criteria for the following products sub,ect to antidumping measures iron hinges! fabrics! zipfasteners and their parts! ceramic tableware and footwear ."( The Peruvian authorities have indicatedthat in mid&(() criteria for the other products sub,ect to antidumping and countervailing measureswere in the process of being developed.

($') Tar$55-

1. Peru applies a national tariff! although it is a member of the ndean 0ommunity which hashad a common e/ternal tariff since 1$$8. The entity responsible for formulating Peru's tariff policy isthe Ministry of 3conomy and Finance :M3F

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:a< 6tructure

". The present review is based on the 0ustoms Tariff that entered into force in pril &((). ""This Tariff is based on the 0ommon Tariff omenclature of the Member 0ountries of the ndean0ommunity :@< approved by @ecision o. #8" of the 0ommission of the ndean0ommunity. @! in turn! is based on the Earmonized 0ommodity @escription and 0oding6ystem :E6

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&!$(( tendigit tariff lines! for appro/imately $) per cent of which the tariff rate was reduced from+ per cent to zero."8

Ta6#e III.3

Suar& "5 M*+ ar$55; A0r$# 2::a

M*+A'erage

6"u4! ar$55 a

(S Se%$"4

(1 Cive animals and animal products "(8 18.& ( &8 (.8 "1.8

(& Plant products "%+ 1+.) ( &8 (.# "1."

(" Fats and oils #+ )." ( 1& (.% "(.(

(+ Food preparations! etc. &$) 1).& ( &8 (.+ "(.)

(8 Mineral products &(& 8.) ( 1& 1.1 "(.(

Ta6#e III.3 (%"4?!)

"8 6upreme @ecree o. &11&((#3F of &% @ecember &((#.

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M*+A'erage

6"u4! ar$55 a

(

:b< Tariff surcharges

1. Peru applies a tariff surcharge :called the ?additional tariff surta/? and subseBuently the?additional tariff duty?< of 8 per cent to "$& tendigit tariff lines. The products sub,ect to this measureare classified in 0hapters 1&+ of the E6! e/cept for de/trins and other modified starches! classified inE6 0hapter "8. The surta/es have been in force since 1$$)! although the amount and the coveragehave often changed."#

"# 6upreme @ecree o. ("8$)3F of 11 pril 1$$)! as amended by 6upreme @ecrees o. 111$)3F! o.1+1$$3F! o. 1&8&(((3F! o. (1#&((13F! o. 11"&((13F! o. 11+&((13F and o. 18(&((83F.

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&. 6urta/es are applied to the c.i.f. value of imports. >oods imported under the preferentialagreements signed by Peru are also sub,ect to surta/es. 7nder these agreements! the preferential

margins are applied to the sum of the basic rates and the additional surta/ rates.

:c< Tariff concessions

1. Peru maintains a duty drawbac- system :section :"eneral 0ustoms Caw! approved by6upreme @ecree o. 1&$&((+3F of 1& 6eptember &((+.

"% rticle #" of the 6ingle Earmonized Te/t of the >eneral 0ustoms Caw! approved by 6upreme @ecree o. 1&$&((+3F of 1& 6eptember &((+.

"$ rticle 8# of the 6ingle Earmonized Te/t of the >eneral Caw on Eydrocarbons.+( Caw o. &)+(( of 1% Danuary &((1.+1

n carrying out this analysis the 6ecretariat too- into account only the tariff lines contained in the fileof the 0onsolidated Tariff 6chedule corresponding to Peru which are strictly comparable with the E6 &(().+& @ecision o. +1+ of the 0ommission of the ndean 0ommunity of "( Duly 1$$).

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&. Peru also grants preferential treatment to imports from countries with which it has signedC agreements :Table .1 and 0hapter :8

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#. >4 is levied on the importation and sale of most goods and the provision of services in eachstage of mar-eting.+% The >4 rate is 1) per cent.+$ To this should be added two percentage points for

the municipal promotion ta/.8( The ta/ base for imported goods is the customs value plus the dutiesand ta/es affecting imports.81 For domestic goods! the ta/ base is the selling price! including 60.8&

). mports and domestic sales corresponding to appro/imately # per cent of the tariff universeare e/empt from >4 and municipal promotion ta/* the e/empt products include certain live animals*fish! e/cept those for meal and oil processing* whole raw mil-* garden produce! vegetables andvarious other food products! fresh or chilled* certain fresh or dried fruit* raw or green coffee and tea*unhulled rice* various seeds for sowing* seabird guano* urea and potassium sulphate for agriculturaluse* wool and cotton! unprocessed* and certain motor vehicles.

%. 4arious services are e/empt from >4 and municipal promotion ta/. 6hip certification!repair! maintenance! inspection and accident prevention and control services are e/empt from >4

and municipal promotion ta/! but only if provided to national flag vessels.8"

$. 4arious activities are also e/empt from 60 and >4 :section :+eneral 6ales Ta/ and 6elective0onsumption Ta/! approved by 6upreme @ecree o. (88$$3F of 18 pril 1$$$.

+$ rticle # of Caw o. &%$&$ of 1& @ecember &((#.8( rticle )# of Cegislative @ecree o. ))# of "1 @ecember 1$$".81 rticle 1" of the 6ingle Earmonized Te/t of the Caw on the >eneral 6ales Ta/ and 6elective

0onsumption Ta/! approved by 6upreme @ecree o. (88$$3F of 18 pril 1$$$.8& rticle 1+ of the 6ingle Earmonized Te/t of the Caw on the >eneral 6ales Ta/ and 6elective

0onsumption Ta/! approved by 6upreme @ecree o. (88$$3F of 18 pril 1$$$.8" rticle 1+." of Caw o. &%8%" of && Duly &((8.8+ E6 subheadings 1(.(#.&(.((.((! 1(.(#."(.((.((! 1(.(#.+(.((.(( and &".(&.&(.((.((. Caw o. &%&11

of && pril &((+.88 rticle # of Caw o. &%"($ of &$ Duly &((+.8# rticle 1 of Cegislative @ecree o. $1% of pril &((1.

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.. ot available.a ccording to the legislation or the Peruvian authorities. b mending legislation not included.

Source AT5 6ecretariat.

&. The importation of used engines! components and spare parts for road vehicles is also prohibited. These goods may be imported if used for offroad machinery or vehicles! provided theyhave been remanufactured and are supplied with a factory guarantee ?similar to that for new goods?.8)

". The importation of certain other products is sub,ect to authorization or registrationreBuirements! generally in the interests of national security! consumer health or environmental protection :Table ."

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('$$) A4$=!u0$4g; %"u4er'a$#$4g a4! -a5eguar! ea-ure-

:a< >eneral provisions

)8. s part of the Final ct of the 7ruguay Round! the greement on mplementation of rticle 4 of the >eneral greement on Tariffs and Trade 1$$+! the greement on 6ubsidies and0ountervailing Measures and the greement on 6afeguards were incorporated in the domestic law of Peru on 1 Danuary 1$$8.

)#. Aithin the framewor- of the ndean 0ommunity :0

o. (8&$&3F continue in force and are applied to countries that are not AT5 Members.

)#. Peru notified 6upreme @ecree o. ((#&(("P0M in March &((".#+ This notification gaverise to a number of Buestions to which Peru provided replies.#8 The Buestions related to issues such asthe refund of duties paid! public notices! liability of parties that fail to provide information or obstructan investigation! fines and penalties! cumulative assessment of imports! interim and e/pirationreviews! verifications! support for the domestic industry! opportunities for the submission of evidenceor arguments! appeals! access to information and documents! confidentiality of information! andsubsidies contingent upon e/ports and loans.

)). The Peruvian authority competent to investigate cases of dumping and subsidization is the@umping and 6ubsidies 0ommission :0F@6< of the ational nstitute for the @efence of 0ompetitionand the Protection of ntellectual Property :@305P

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)%. The number of antidumping investigations initiated increased considerably during the periodunder review :Table .8

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:c< 6afeguards

)8. Ahere AT5 safeguards are concerned! the domestic legislation consists of 6upreme @ecree o. (&($%T0 approving the regulatory provisions of the AT5 greements on 6afeguards andon Te/tiles and 0lothing! as amended by 6upreme @ecree o. (1)&((+M03T7R. n &(("!6upreme @ecree o. (&"&(("M03T7R! Transitional 6afeguard Regulations! was approved!under AT5 rules and commitments.#%

)#. The Peruvian authority responsible for applying safeguard measures is a multisectoralcommission comprising the Minister of 3conomy and Finance! the Minister of Foreign Trade andTourism and the Minister for the sector to which the domestic industry affected belongs.nvestigations are conducted by the @305P @umping and 6ubsidies 0ommission. @ecisionsta-en by the multisectoral commission are made official by a 6upreme @ecree of the Ministry of Foreign Trade and Tourism! endorsed by the ministers on the multisectoral commission.

)). @uring the review period! Peru applied provisional safeguard measures on two occasions. in@ecember &((" provisional safeguards were applied to madeup te/tile articles originating in 0hinawithin the conte/t of the transitional productspecific safeguard mechanism contained in the Protocolof ccession of the People's Republic of 0hina to the AT5. The measure was applied for a period of &(( days! after which Peru decided not to apply definitive safeguard measures.#$

)%. 5n && ugust &((+! the >overnment of Peru initiated an e/ officio investigation on theapplication of safeguards to madeup te/tile imports. The argument for initiating an investigation wasthat the domestic industry largely consisted of micro and small enterprises and was highlyfragmented. The investigation led to the application of provisional safeguards for &(( days. 5n+ May &((8! Peru terminated the application of provisional safeguard measures without imposingdefinitive safeguard measures.)(

)$. Aith regard to safeguard measures against AT5 nonMember countries in 6eptember 1$$$Peru initiated an investigation against Russia and 7-raine concerning cold and hotrolled steel plate*the final decision was not to impose a measure. The @umping and 6ubsidies 0ommission! inTechnical Report o. ((#&(((90@6@305P of &1 March &(((! determined that the applicationwas inadmissible.

%(. Aithin the conte/t of the ndean 0ommunity! since 1$$8 Peru has initiated five safeguardinvestigations! of which two were re,ected and two found to be inadmissible. n the fifth! in &((+!under rticle $) of the 0artagena greement! the >eneral 6ecretariat of the ndean 0ommunity gavea partial confirmation ruling on oilseed imports.

%1. 7nder C! Peru has included bilateral safeguard provisions in its trade agreements with0hile :30 "%

#% The notifications of the regulations can be found in AT5 documents >96>9919P3R91 of &$ March 1$$8! >96>9919P3R9& of && Danuary 1$$$! >96>9919P3R9&96uppl.1 of " ovember &((" and>96>9919P3R9&96uppl.& of "1 ugust &((+.

#$ The Peruvian >overnment notifications can be found in AT5 documents >96>9#) of 1+ Danuary &((+! >96>9#)96uppl.1 of &1 Duly &((+ and >96>9#)96uppl.19Rev.1 of &% Duly &((+.

)(

The notification appears in AT5 document >96>99#9P3R91 of "( ugust &((+! >96>99)9P3R91of 1$ 5ctober &((+! >96>99)9P3R9196uppl.1 of 1$ 5ctober &((+! >96>99)9P3R9196uppl.& of 18 @ecember &((+ and >96>99$9P3R91 of "( May &((8.

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('$$$) Te%74$%a# regu#a$"4- a4! -a4!ar!-

:a< >eneral provisions

%&. The policy on technical regulations and standards is defined in Cegislative Resolution o. +() of @ecember 1$$+ and in Cegislative @ecrees o. ##% of 6eptember 1$$1 and o. #%& of 5ctober 1$$1! as well as in @ecreeCaws o. &8#&$ of Duly 1$$& and o. &8$($ of ovember 1$$&.Moreover! @ecisions of the 0ommission of the ndean 0ommunity os. +1$! 8#&! 8(# and#18 apply.

%". @305P is responsible for developing ?technical standards? :eBuivalent to AT5standards

must be authenticated by the M3F. n practice! if some Ministry! within its sphere of competence!approves a technical regulation that uses or refers to a standard! for reasons of transparency!@305P publishes that standard on its web page under the heading ?Mandatory Technical6tandards?! with details of the technical regulation which ma-es it mandatory.

%+. Peru notified the AT5 of the entry into force! on 1 Danuary 1$$8! of Cegislative Resolution o. +() of 1% @ecember 1$$+! which incorporated the greement on Technical 2arriers to Tradeand other multilateral agreements in the Peruvian legislation.)1 t also notified the @305P0ommission on Technical and Trade Regulations :0RT< as the ational 3nBuiry Point! and the then4iceMinistry of Tourism! ntegration and nternational Trade egotiations of the Ministry of ndustry! Tourism! ntegration and nternational Trade egotiations as the entity responsible for notifications. 6ince the reorganization of the e/ecutive branch! the entity responsible for notificationsis the 4iceMinistry of Foreign Trade of the Ministry of Foreign Trade and Tourism :M03T7Rood Practice for the Preparation! doptionand pplication of 6tandards in Dune 1$$8.)&

%8. n the 0ommittee on Technical 2arriers to Trade! Buestions were raised concerning thetechnical regulations adopted by Peru in relation! for e/ample! to infant food and the informationcontained in footwear labelling.)" Peru has commented on the 3uropean 7nion labelling standard for tinned sardines.

%#. The 0RT has three main functions :i< to approve recommendable technical standards for allsectors! together with regulations on legal metrology* :ii< to evaluate and grade public and privateentities through administrative accreditation procedures in order that they may provide conformityassessment services* and :iii< to oversee the protection of the standards that govern the freedom of foreign trade in accordance with Cegislative @ecree o. ##% and @ecreeCaw o. &8#&$! whichguarantee the freedom of foreign trade.

%). The 0RT reviews :including in investigations initiated e/ officio< whether any nontariff barriers to trade adopted by some public body are ,ustified. These powers were temporarily wea-ened by Cegislative @ecree o. %() of 1% pril 1$$#! under which the 0RT could not suspend nontariff measures but only send a special report! with recommendations! to the Presidency of the 0ouncil of

)1 AT5 document >9T2T9&9dd.&$ of &" @ecember 1$$#.)&

AT5 document >9T2T90699)9Rev.1 of &" Danuary 1$$).)" The Buestions can be found in AT5 documents >9T2T9M9") of && @ecember &((8! >9T2T9M9"8 of &+ May &((8! and >9T2T9M9"+ of 8 Danuary &((+.

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Ministers. Eowever! the powers of the 0RT to suspend such measures were restored by Caw &%$$# of + pril &(()! albeit only for reviews initiated by a complaint from one of the parties.

%%. s the national standardization organization! the 0RT is responsible for approvingmetrological standards and regulations and ma-ing them available to all interested parties. Thesete/ts are the result of a dialogue between the public and private sectors! generally based on sectoraldiagnostic studies! and are prepared by technical committees composed of producers! importers!mar-eters! consumers! ministries and other technical entities! which develop a draft technical standardthat is subseBuently submitted to the 0RT for approval. There are %1 technical committees! of which## are active.

%$. The legal basis for the preparation of standards and technical regulations consists of nne/ "to the AT5 greement on Technical 2arriers to Trade* the 65 >uide 0ode of >ood Practice for 6tandardization* @ecision o. +1$ :establishing the ndean system of standardization! accreditation!

testing! certification! technical regulations and metrology$(. 6upreme @ecree o. 1+$&((83F of ovember &((8 :as amended by 6upreme @ecree o. ((1&((#3F of Danuary &((#< approved provisions regulating technical barriers to trade for goods and services. This @ecree includes transparency provisions which stipulate that the period between the publication of a technical regulation and its entry into force may not be less thansi/ months. n addition! imported goods sub,ect to compliance with technical regulations will have to be accompanied by a technical regulation compliance certificate with a period of validity of one year!granted by the ministry for the corresponding sector under transparent! clear and predictable procedures and on the basis of nondiscriminatory criteria. Finally! for the purpose of ensuringtransparency! the sector that prepares technical regulations must publish them in the 5fficial Dournal!

El Peruano! or on the sector's web page for a period of at least $( calendar days! for the receipt of comments! without pre,udice to the notifications reBuired by the AT5 and the ndean 0ommunity.)+

:b< pplication

$1. The Peruvian authorities have noted that there are +!&(# approved standards! of which+!1#" were in force in @ecember &((#. 5f these! &!+$$ were approved by the nstitute for Technological and ndustrial Research and Technical 6tandards :TT30< and 1!##+ by @305P.The standards approved by TT30 are in process of being updated. 5f the standards administered by @305P! ++% are identical to international standards and #$ are based on such standards.@uring the period &(((&((#! 1!&($ standards were approved.

$&. Aith respect to technical regulations! the authorities have indicated that they are ma-ing aninventory of the technical regulations in force! which should be completed in the second half of &(()and will be made available to the general public via a web page.

)+ 6upreme @ecree o. (#%&(()3F of % Dune &(().

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$". n general! Peruvian technical regulations are based on international standards. Ahere this isnot the case :due to differences in development conditions! technological progress! etc.

thirdcountry practices are used.

$+. ndean 0ommunity @ecisions o. 8#& and o. #18 establish transparency procedures for the process of issuing technical regulations which specify timeframes for publication in the 5fficialDournal! the receipt of comments! publication and entry into force. These @ecisions also provide for the issuing of emergency technical regulations! with a shorter timeframe.

$8. n the preparation of a technical regulation! the period for public consultation for AT5 purposes is $( calendar days from publication of the notification in the AT5. Moreover! the period between the publication of the technical regulation and its entry into force may not be less thansi/ months. third country may reBuest an e/tension of the public consultation period! before theabovementioned $( days have e/pired. 0omments received as a result of the public consultation are

evaluated by the competent ministry! which may adopt or re,ect them.

$#. 6tandards may be made mandatory if the parties so agree! or through a technical regulationissued by a regulatory entity. t the beginning of &(()! there were %1 standards that had been mademandatory! insofar as they had been referred to or incorporated in a technical regulation.

$). The 0RT is the independent authority responsible for the national administration of theaccreditation system in accordance with international criteria and standards. The 0RT accreditstesting and calibration laboratories! inspection bodies! product certification bodies and Bualitymanagement system certification bodies.

$%. ccording to information provided by the Peruvian authorities! &$ testing laboratories!

two calibration laboratories! 1" product certification bodies and two Buality management systemcertification bodies have been accredited.

$$. Peru participates in several fora concerned with conformity assessment. t regional level inntermerican ccreditation 0ooperation :0< and at subregional level in the ndeanccreditation 0ommittee. The 0RT participates in the 0's Multilateral Recognition greementfor the ccreditation of Luality Management 6ystem 0ertification 2odies.

1((. n the voluntary conte/t! conformity is officially assessed by the accredited conformityassessment bodies. n the mandatory conte/t! if there is no accredited conformity assessment body!the ministries may authorize one.

1(1. The authorities have stated that there is no generally applied procedure for verifyingcompliance with technical regulations! although under Caw o. &)+++ Caw on >eneraldministrative Procedure priority should be given to post facto controls. They have also noted thatonce the products have entered the domestic mar-et! the ministries! within their spheres of competence! implement various permanent or temporary mar-et surveillance measures! either e/ officio or at the reBuest of a party! in order to oversee compliance with their respective technicalregulations.

($) Sa4$ar& a4! 07&"-a4$ar& ea-ure-

1(&. The following are the competent Peruvian authorities for sanitary and phytosanitary :6P6<

matters for animal and plant health! the ational grarian Eealth 6ervice :636< of the Ministryof griculture* for the safety of processed food products! the @irectorate>eneral of 3nvironmentalEealth :@>36

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Technology nstitute :TP< attached to the Ministry of Production! which is the competent authority of the ational Fisheries Eealth 6ervice :6P36

)8 AT5 document >96P693L9&1of &1 February &(().)# These comments are included in AT5 documents >96P69R9+& of &8 6eptember &((#! >96P69R9+(

of May &((#! >96P69R9"# of + May &((8! >96P69R9"+ of 1# ugust &((+! >96P69R9"" of ) May &((+!>96P69R9"1 of &" @ecember &(("! >96P69R9"( of + 6eptember &(("! >96P69R9&8 of 1% Danuary &((& and>96P69R9&& of 8 5ctober &((1.

)) 3/cluding revisions! additions or corrections. The notifications are contained in AT5 documents>96P699P3R91+ to 1"$.

)% rgentina! 2olivia! 2razil! 0hile! 0hina! 0zech Republic! 3cuador! srael! Me/ico! ew =ealand!Paraguay! Poland and 7ruguay.

)$

The regulations may be consulted at the 636 nternet site http99www.senasa.gob.pe9normatividadN&9inde/.htm.%( The regulation can be consulted on the 6P36 nternet site http99www.itp.org.pe9 sanipes.htm.

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11(. The grarian Eealth Framewor- Caw defined 636 as a decentralized public agencyattached to the Ministry of griculture! having technical! economic! financial and administrative

autonomy. 636 provides phytosanitary and animal health inspection! verification andcertification services* as well as diagnosing! identifying and supplying biological controllers. naddition! it registers and inspects pesticides and livestoc- products! together with importers!manufacturers! sales outlets and practitioners in the sector* and it also issues import licences for cropand livestoc- products.

111. Pest ris- analyses :PRs< are mainly conducted by 636 and 6P36! generally either at the reBuest of importers or e/ officio. The authorities stated that PRs are cost free. They alsoindicated that a plant health ris- analysis generally ta-es a year to complete! either owing to a lac- of cooperation from the e/porting country or because the Buestionnaire does not provide the informationneeded for the analysis. n the animal health area! the average time is three months* the PRs performed during the reporting period have related to bovine spongiform encephalopathy :263< and

avian influenza.

11&. 6P36 also performs PRs on the various fishery activities. The time ta-en varies* for e/ample! sanitary studies to approve an area for harvesting bivalve molluscs should last at least a year!according to the regulations. n the case of the sanitary standard for fish meal and oil! the periodvaries between three and si/ months.

11". Aith respect to the safety of processed foods! 6upreme @ecree o. (()$%6 of 6eptember 1$$% created a framewor- standard for sanitary surveillance and control of food and beverages in the production chain. The authorities stated that this brings domestic regulations intoline with international ones! particularly those of the 0ode/ limentarius. Peru has also adoptedinternational standards for establishing food health certificates and nutritional valuations. Theauthorities stressed that the harmonization and adoption of international food safety standards has been helpful when negotiating eBuivalence agreements with other countries whose mar-ets receivePeruvian e/ports.

11+. n the period &(((&((8! 636 also approved a number of regulations on agriculturalinputs! including those relating to the national registry of chemical pesticides for agricultural use.636 has also wor-ed to control and eradicate pests and diseases! and has declared national zonesto be free of footandmouth disease! avian influenza! bovine and caprine brucellosis! among others!as well as pests such as fruit fly.

118. mports of all plants! plant products and other regulated items! as well as animals! animal

products and byproducts! reBuire the respective phytosanitary or animal health permit. The 6ingleTe/t for dministrative Procedures :T7P

11#. ll natural or legal persons underta-ing activities that involve the manufacture! formulation!importation! e/portation! pac-aging! distribution! storage and mar-eting of agricultural pesticides or livestoc- inputs :including animal feed< must be registered in the 0ompanies Registry! while thoseengaging in seed propagation are reBuired to register in the 6eed Producers Registry. 2oth registriesare operated by 636.

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11). The costs of conformity assessments and inspections in respect of plant and animal health! aswell as all other technical and laboratory analysis services! including inspection visits! are paid for by

the users. The costs in Buestion are established in the T7P issued by 636. 6anitary and phytosanitary inspections can be conducted at the border! inside the country or at the place of origin.

11%. n the case of food safety! the costs of conformity assessments and inspections! as well as allother technical and laboratory analysis services! including inspection visits! are paid for by theapplicant. Aith regard to sanitary certification! one of the reBuirements is inspection! which is also paid for by the applicant. Eealth surveillance inspection is the responsibility of the 6tate and may beconducted at the border! inside the country or at the place of origin.

11$. n the case of fisheries health! 6P36 carries out sanitary inspections and audits on thevarious fisheries and aBuaculture activities on an e/ officio basis. nspection or conformityassessment services can also be reBuested by firms who must then pay for the service.

1&(. s regards genetically modified products! Peruvian legislation includes Caw o. &)1(+ :Cawon the Prevention of Ris-s rising from the 7se of 2iotechnology< of May 1$$$! 6upreme @ecree o. 1(%&(("P0M :Regulation to Caw o. &)1(+

(3) MEASURES DIRECTLY A**ECTI+, EPORTS

($$) Reg$-ra$"4 a4! !"%ue4a$"4

)8. 3/porters may fulfil customs formalities without using a customs bro-er. To do so! however!they reBuire authorization from 67T! for which they must satisfy the reBuirements set out in theRegulation to the >eneral 0ustoms Caw.%1 67T authorization is not needed in the case of e/portsworth 76;&!((( or less.

)#. n general! the documents needed for e/ports are the customs declaration! the commercialinvoice and the transport document* although certain merchandise e/ports reBuire additionaldocuments such as authorizations :section :+eneral 0ustoms Caw! approved by 6upreme @ecree o. 1&$&((+3F of 1& 6eptember &((+.

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notional ( per cent ta/ levied on e/ports for statistical purposes was repealed by Cegislative @ecree o. $81 of " February &((+.

($') @ua4$a$'e re-r$%$"4-; %"4r"#- a4! 0er$-

)8. Peru continues to prohibit e/ports of certain specimens of 0at's 0law :Uncaria tomentosa andUncaria guianensis< ?either unprocessed or sub,ect to mechanical processing?! unless they come fromspecific areas* and it also bans the e/portation of alpacas and llamas that have won awards in officialevents.%8

)#. The e/portation of wood in log form and other forest products in their ?natural state? is prohibited! e/cept where obtained from nurseries or forestry plantations and ?not reBuiring processingfor their final consumption?.%#

)). further e/port prohibition applies to seeds! specimens and products of maca : Lepidiummeyenii, Lepidium peruvianum< ?in the natural state or having undergone primary processing.? %) The purpose of this measure is to promote maca e/ports with ?higher valueadded?.%% 3/portation of specimens of camu camu : Myrciaria dubia< is also prohibited ?in the natural state and havingundergone primary mechanical processing?! e/cept for products ?in the form of e/tracts or processed pulp.?%$ This measure reflects the need to promote private investment in response to growing demandfor camu camu on international mar-ets.

)%. 3/port bans are also applicable to seeds! fruits ?and any other botanical structure in its naturalstate! which can be used to obtain genetic material from the thornless variety of pi,uayo: Bactris gasipaes Ounth

%# rticle of the Regulation to the Forestry and Aild Fauna Caw! approved by 6upreme @ecree o. (1+&((1> of $ pril &((1.

%) rticle 1 of 6upreme @ecree o. ("$&(("> of % @ecember &((". Maca is a plant.%% rticle 1 of 6upreme @ecree o. ("$&(("> of % @ecember &((".%$ rticle 8 of 6upreme @ecree o. (+#$$> of &8 ovember1$$$. 0amu camu is a fruit.$( rticle & of Ministerial Resolution o. ()&8&(((> of && 6eptember &(((. The pi,uayo is a type

of palm tree.$1 6ee! for e/ample rticle &) of Caw o. %"$ of 1# Duly 1$$).$& 67T online information ?Tabla de relación de códigos de entidades y documentos de control:

mercancas referenciales !ue controlan las entidades? Cist of entity codes and control documents benchmar- goods under entity controlQ. 0onsulted at http99www.aduanet.gob.pe9aduanas9infoaduanas9clasifica9clasificacionarancelaria9entidad9relacioncodigos.htm 1& Duly &(()Q.

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%(. The Ministry of griculture sets annual Buotas for alpaca and llama e/ports$"! as part of aregime that see-s to promote the breeding! production! mar-eting and consumption of these species. $+

The Peruvian authorities have indicated that Peru eliminated the guano e/port Buota in &(((.

(') Su6-$!$e-; %7arge a4! a %"4%e--$"4- a4! 5ree "4e-

)8. Peru has informed the AT5 that it did not grant any e/port subsidy for agricultural products between &((( and &((&.$8 o specific subsidy was notified! within the meaning of the greement on6ubsidies and 0ountervailing Measures! for &(((&((#.

)#. Peru maintains a duty drawbac- scheme! which has been amended on numerous occasionssince its creation in 1$$8. 7nder this scheme! e/porters receive 8 per cent of the f.o.b. value of their e/ports or half of their production cost! whichever is less! but they must fulfil certain conditions inorder to Bualify$# for e/ample! the c.i.f. value of imported inputs may not e/ceed 8( per cent of the

f.o.b. value of the e/ported product. The benefits granted to a tendigit tariff line cease once anenterprise e/ports over 76;&( million of products under that line.

)). 7nder the scheme! e/ports of products classified under some &)( tendigit tariff headings arenot entitled to any duty drawbac- $)* e/amples include animal waste material! coffee! fish fats andoils! sugar! food residues! minerals! s-ins! wool! waste of te/tile fibres! and ,ewellery and gold andsilver articles.

)%. Roughly 76;18+." million was reimbursed under the duty drawbac- scheme in &((#!following repayments totalling 76;1+1.( million in &((8.

)$. n mid&((8! Peru abolished the e/port reBuirements that companies had to fulfil in order to

obtain the benefits available under the 03T056 and =5FRT0 programmes :section :+

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)#. 6ince &((& 05F@3 has operated an e/port credit insurance scheme! -nown as 63PKM3J$$!for small and mediumsized enterprises! under which firms e/porting up to 76;% million per year

may insure up to 76;1 million in preshipment credits. The premium is (."8 per cent for every$( days' insurance cover! and the policy covers half of the insured amount.

)). The ational 6trategic 3/port Plan involves the implementation of a credit programme for foreign buyers of Peruvian products.1((

)%. 3/port promotion activities are carried out by both public and private institutions. The 3/portPromotion 0ommission :PR5MP3J

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)#. PR543R6W! Peru's Private nvestment Promotion gency :see 0hapter :+eneral0ompanies Caw :Caw o. %%) of $ @ecember 1$$)< and the amendments thereto! and a resolutionissued by the Eead of the ational 6upervisory uthority for Public Records! o. &((&((167RP6 of &+ Duly &((1.1($ nvestors :whether domestic or foreign< have severallegal forms of business organization to choose from! including public limited companies! commercial partnerships! limited partnerships! limited liability companies! and civil partnerships.

)%. 6etting up a public limited company reBuires signing rticles of ssociation : Minuta de$onstitución

)$. public limited company must have at least two partners! who may be either natural or legal persons. The company's capital must be fully subscribed when it is established! and at least oneBuarter must be paid up. There is no minimum capital reBuirement. Foreign nationals not domiciledin the country may serve as directors.

%(. 3nterprises! whether or not domiciled in the country! may establish branches in Peru! whichmust be entered in the 67RP Registry. n the case of companies established abroad! the followingdocumentation must be presented certificate of current validity* certification that the company'sarticles of association do not prohibit the establishment of branches abroad* copy of the documentcontaining the articles of association or eBuivalent documents in the country of origin* and evidenceof the decision to establish the branch.

%1. et corporate income is ta/ed at a rate of "( per cent. Firms also pay an additional +.1 per cent on any distribution in cash or -ind that represents ta/able income! since this entails an indirect

distribution of profits not liable to subseBuent ta/ control! and includes amounts charged to e/pensesand undeclared incomes.

%&. The >overnment may provide a guarantee of ta/ stability to investors by signing lawcontracts :contratos%ley< with them. There is also a general legal stability regime! which includes theincometa/ regime to which investors :both domestic and foreign< and firms that receive investments

1(% PR543R6W online information. 6ee http99www.proinversion.gob.pe9orientacion9empresas9contN".htm.1($ 5ther relevant provisions include Resolution 1$8&((167RP96 of 1% Dune &((1! partially

regulated by the Regulation on 0ompany Registration! o. &((&((167RP96 of 1% Duly &((1! and byResolution of the Eead of the ational 6upervisory uthority for Public Records! o. 1$8&((167RP96of 1% Duly &((1* the 0ommercial Registry Caw :@ecree Caw o. 1$.%$" of && Danuary 1$)"! regulated by6upreme @ecree o. $8%80T905 of 1$ Duly 1$%8* Caw o. ."## of 1$#% :ational Public Records

6ystem* ational 6upervisory uthority for Public Records

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may adhere! provided they fulfil minimum investment reBuirements. There are also sectorlevelinvestment promotion schemes! e.g. in the mining and hydrocarbons sectors :see 0hapter 4:+< and

:8

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0ompetition :6@0< is the second administrative instance* its rulings may also constitute binding precedents.

%1. The Free 0ompetition 0ommission may impose monetary sanctions for violations of @ecreeCaw o. )(1 up to a ma/imum of 1!((( ta/ units :7T< for a minor or serious violation 11& :eBuivalentto about 76;1!(%+%+. n the period &(((&((#! the @305P Free 0ompetition 0ommission received$& complaints of violations of the rules on free competition. n addition! eight e/ officioinvestigations were made into possible violations of competition regulations! and 1& fines wereimposed during that period.11+

%8. The 5rganisation for 3conomic 0ooperation and @evelopment :530@< has e/pressedconcern at the limits to @305P's autonomy and neutrality.118 The study in Buestion stresses that@305P has not received any public funding since &(("! so part of its wor- on competition issuesis financed through surcharges. s a result! a central concern of @305P has been to cover its owncosts rather than oversee mar-et behaviour. t also identifies the challenge posed by opposition tocompetition policies among the ma,ority of the lowincome population! particularly in view of thelarge size of the informal sector. nother study11# also supports the adoption of measures aimed atstrengthening @305P as an institution. ccording to the A3F! Peru is ran-ed 8$th in terms of theeffectiveness of its competition policies. reas that need to be addressed include the lac- of acompetition culture and the limited independence of @305P.11)

%#. The authorities view the suggestion that @305P should use fines to finance its activitiesas lac-ing a factual and legal basis. They pointed out that @305P generated $8 per cent of its

11& n &(()! 7T 1 was eBuivalent to 69. "!+8(.11" For an e/haustive list and the cases presented! see http99www.indecopi.gob.pe9destacado

competenciacomisionesclcinforPlub.,sp.11+ nvestigations were carried out in respect of service and product manufacture activities such as

hospital activities* warehousing and storage* crop growing* publications* sugar* malt and malted beverages*nonalcoholic beverages* cocoa! chocolate and confectionery* ba-ery products* tobacco* dairy products* gas*

paper and paperboard* electric power generation and distribution* legal services* business activities*insurance* telecommunications* freight transport by road* maritime transport* rail transport* air transport*wholesale trade in food! beverages and tobacco* wholesale trade in construction materials* wholesale trade inother products.

118

530@ :&((+

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budget from fees and fines! between &((8 and &(()! while about 8 per cent of its funds came from the public budget. They stated that @305P's internal resources largely come from fees charged for

the registration of intellectual property rights and other services! with ,ust 1( per cent coming fromfines. The authorities also consider erroneous the claim that most of the poor oppose competition policies! but ac-nowledge that a competition culture is lac-ing. 5n this point they stressed that theyhave continually implemented activities to promote competition.

%). @espite the problems indicated! @305P continues to ma-e a significant contribution tothe administration and consistent integration of policy issues relating to defence of mar-etcompetition! intellectual property and technical regulations. The authorities noted that thisinstitutional proposal has been analysed and used as an e/ample for other Catin merican countries.

%%. There are ndean provisions on competition which apply to anticompetitive practices if theyoriginate and produce real effects in one or more member countries! e/cept when the origin and the

effect are both confined to a single country* and if they originate in a nonmember country and produce real effects in two or more member countries.11% n other situations! national legislationapplies. one of the complaints lodged on competition issues has been considered worthy of aninvestigation under @ecision o. #(%.

%$. Peru has not signed any cooperation agreements on competition with other countries.

($$$) Sae ra!$4g; Sae="4e! e4er0r$-e- a4! 0r$'a$a$"4

)8. n its most recent notification11$ to the AT5 concerning 6tatetrading enterprises! Perureported that it has no 6tatetrading enterprises within the meaning of >TT rticle J4.

)#. The ational 0oca 0orporation :305

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)$. ccording to information provided by the authorities! income from concessions amounted toabout 76;+$8 million over the period &(((&((#! while revenue from the privatization or sale of

6tate assets totalled 76;%+) million. The main privatizations during the period occurred in the areasof electric power transmission and distribution :&((&

($') I4%e4$'e-

:a< Traderelated investment measures and localcontent reBuirements

)8. Cegislative @ecree o. #8" of 1 ugust 1$$1 establishes that for the promotion anddevelopment of dairy farming in Peru! and in the interests of consumer protection! the free

importation of mil- powders! anhydrous fat and other mil- products! by any natural or legal person!is sub,ect to the restriction that such products may not be used in the reconstitution and remi/ing processes for the production of liBuid mil- products! cheeses! butter! and similar products for directhuman consumption. Peru notified1&1 this restriction to the 0ommittee on TradeRelated nvestmentMeasures in 1$$8. lthough these provisions still had legal force in early &(()! the authorities statedthat in practice they are not used. They also reported that the >overnment and 0ongress are wor-ingtogether on legislation to repeal these provisions.

:b< Free zones

)8. Peru offers ta/ benefits through the 3/port! Processing! ndustry! Mar-eting and 6ervice0entres :03T056< of lo! Matarani and Paita! and the Tacna Free =one :=5FRT0<

:Table .#

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CETICOSa O*RATAC+A

@ecree o. %#8 :&).1(.1$$#Manufacturing e/cept for products classified in60 Rev & categories "11+! "118! "11%! "1&&!"8"( and ")&( :apart from agribusiness productsfrom the region

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Ta/ :60< :see section :&

1&% Cegislative @ecree o. $#) The new R76 encompasses ncome Ta/! >eneral 6ales Ta/ andMunicipal Promotion Ta/. 6elective 0onsumption Ta/ is not included in the new R76.

1&$ The legal provisions governing the R76 are contained in rticles 11) to 1&+ of the ncome Ta/ Caw!the 6ingle Earmonized Te/t of which was approved by 6upreme @ecree o. 1)$&((+3F and amendingregulations* and Cegislative @ecree o. $") of 1+ ovember &(("! as amended by Cegislative @ecree o. $#)of &+ @ecember &((#. The provisions governing the R3R are contained in rticles 11) to 1&+ of the ncome

Ta/ Caw! the 6ingle Earmonized Te/t of which was approved by 6upreme @ecree o. 1)$&((+3F andamending regulations.1"( Cegislative @ecree o. $)" of 1( March &(().

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does not set interest rates for its final beneficiaries! which are freely established by the correspondingfirsttier financial institutions. The latter assume the responsibility and ris- of the credit operation.

)#. 05F@3 has set up a number of programmes and credit lines to serve the financial needs of small businesses and microenterprises. t also finances the agricultural sector through specific creditlines :see 0hapter 4:&

:e< 5ther incentives

)8. 2ecause of the limited financial resources available to the 6tate! there are few incentives for science and technology development. n &((+! e/penditure on science and technology amounted to76;1((.8 million! or appro/imately (.1# per cent of >@P 1"1! much of which is used to finance 6tatetechnological institutes and public universities. n pril &((&! the ational 0ompetitiveness 0ouncil!attached to the 5ffice of the President of the 0ouncil of Ministers! was established for the purpose of developing and implementing a ational 0ompetitiveness Plan. Caw o. &)) of May &(((created Technological nnovation 0entres :0T36

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)). Caw o. %8( sets the minimum conditions and e/ceptions that civil servants belonging toall government entities and enterprises must observe in goods! services and wor-s procurement

procedures. The Caw does not impose any restriction on participation by foreign suppliers.

)%. part from the e/emptions e/plicitly recognized by Caw o. %8(! government procurement must use one of the four following types of selection process! depending on the ob,ect:goods! services or wor-s< and the amount of the procurement :abiding by the thresholds indicated ineach annual budget law for the public sectorovernment. The Eigher 0ouncilfor >overnment 0ontracting and Procurement :056705@3< is responsible for operating the RP!which has chapters on :i< goods suppliers* :ii< services providers* :iii< wor-s consultants*:iv< wor-s contractors* and :v< persons disBualified from government contracts. foreign supplier without domicile in Peru may register in the RP! but only through its legal representative in Peru!unless they have to be engaged via a waiver of the selection process or are manufacturers of sophisticated products! in which case the contracting public agency or enterprise registers the supplier through a special procedure.

%1. Ahen awarding a contract! Caw o. &)1+" of 1$ Dune 1$$$ :Caw on Temporary Promotion of ational Productive @evelopment< reBuired a 1( per cent preference to be added to the sum of the

technical and economic points classification attained by bidders offering goods produced or servicesoriginating within the national territory. 3mergency @ecree o. (#+&((( of &" ugust &((( raisedthe bonus to the total score obtained by bidders for goods produced within the national territory to18 per cent! effective until "( Duly &((1. 5n 1# Danuary &((1! 6upreme @ecree o. (("&((1P0Mestablished what characteristics goods and services must have in order to be considered as goods produced or services supplied within the national territory. Castly! the 0ongress of the Republic passed Caw o. &)#"" of 1# Danuary &((&! raising the advantage en,oyed by domestic products to&( per cent on top of the overall points score.

1"8

056705@3! online information. 6ee http99www.consucode.gob.pe9boletYninstitucional905M70@5H&(FebreroH&(&((#. pdf.1"# ational 6uppliers Registry! online information. 6ee http99www.rnp.gob.pe9.

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%&. 6pecial laws govern procurement in certain areas and for certain 6tate agencies or enterprises.1") For e/ample! procurement and contracting by P3TR5P3RS are governed by its own

regulation! which was proposed by its board of directors and approved by [email protected] is reBuired to use the electronic government procurement and contracting system toreport all contracts and purchases and the status of the processes that it applies.

%". Caw o. &))#) of &1 Dune &((( reBuires food support and social compensation programmes!and all government agencies that use public funds! to use nationally produced food products of agricultural and hydrobiological origin. To underta-e the corresponding procurement! the purchasinginstitutions set up procurement commissions which must include a producer representative.>overnment agencies are reBuired to notify their food product reBuirements annually! indicating the possible purchase timetable as well as the annual amount reBuired.

%+. Transparency measures in government contracts essentially involve the publication of annual

procurement plans! invitations to tender and other contractual documents :&( wor-ing days before the bid submission date

%8. @isputes during the procurement procedure are resolved according to the stage at which theyarise. Those in the selection phase are settled administratively! which includes appeal to the senior officer of the contracting entity! and review by the >overnment Procurement and 0ontracts Tribunal.n the case of disputes over contract e/ecution! conciliation and arbitration procedures are available*and complaints of irregularities can be lodged with 056705@3. The latter is the finaladministrative mechanism for resolving disputes relating to the content of bidding documents or theconditions of the selection process.

%#. n the event of violation of the legal principles and provisions governing procurement! threetypes of liability can be established administrative! civil and criminal. The different liabilities areestablished by the agencies of the ational 6urveillance 6ystem! the 5ffice of the 6tate ttorney>eneral : Procuradura 'eneral del Estado< and9or the 5ffice of the Prosecutor >eneral of the ation: Ministerio P(blico o )iscala de la *ación

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services by public agencies! under nondiscriminatory conditions. The Peruvian authorities indicatedthat this issue would be solved by Caw o. &$(+&! to be published on 1+ Dune &(().

$(. lthough there were various problems with government procurement processes in Peru prior to &((11"$! the authorities pointed out that the -ey amendments to the Peruvian >overnment's procurement system had been introduced since then! following the entry into force of the 6ingleEarmonized Te/t and a new regulation on 1" March &((1.

$1. >overnment procurement in Peru uses an nternetbased instrument! -nown as the 3lectronic>overnment Procurement and 0ontracting 6ystem :6303@P

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)%. @305P's functions are regulated by @ecree Caw o. &8%#%! 6upreme @ecree o. (&8$"T0 and Cegislative @ecree o. %(). ts wor- in respect of intellectual property is

organized through the following agencies the 0opyright 5ffice for issues relating to copyright andrelated rights* the @istinctive 6igns 5ffice for issues relating to trademar-s! names! commercialslogans! certification or collective mar-s and appellations of origin* and the nventions and ewTechnologies 5ffice for issues relating to patents! utility models and industrial designs! protected plant varieties! traditional -nowledge and other new technologies. These offices represent the firstadministrative instances on intellectual property matters* their rulings can be appealed against in thentellectual Property @ivision of the @305P Tribunal! which is the second and finaladministrative instance of appeal on such matters.

Ta6#e III.

Par$%$0a$"4 $4 agreee4- "4 $4e##e%ua# 0r"0er& 0r"e%$"4; De%e6er 2::

C"4'e4$"4/Agreee4 Dae "5 a%%e--$"4

Cisbon greement! ppellations of 5rigin 1# May &((8

AP5 0opyright Treaty # March &((&

AP5 Performances and Phonograms Treaty 1% Duly &((&

Paris 0onvention for the Protection of ndustrial Property :1%%"< 11 pril 1$$8

Treaty on the registration of films &) Duly 1$$+

Ta6#e III. (%"4?!)

2erne 0onvention for the Protection of Citerary and rtistic Aor-s :1%%#< &( ugust 1$%%

Rome 0onvention for the Protection of Performers! Producers of Phonograms and 2roadcasting5rganizations

) ugust 1$%8

2russels 0onvention relating to the @istribution of Programme0arrying 6ignals Transmitted by 6atellite ) ugust 1$%8

>eneva 0onvention for the Protection of Producers of Phonograms against 7nauthorized @uplication of their Phonograms

&+ ugust 1$%8

Source AT5 6ecretariat! on the basis of information provided by the Aorld ntellectual Property 5rganization.

)$. Peru has notified the AT5 of its relevant legal instruments1++ and the ndean 0ommunity's0artagena greement.1+8 The 0ouncil for TRP6 reviewed Peru's legislation in &((1. Peru receivedand replied to Buestions put to it1+#! relating to the issue of enforcement! in particular.

%(. The Peruvian legal framewor- for the protection of intellectual property is established bydomestic legislation! the ndean 0ommunity's 0artagena greement! the Treaty establishing the0ourt of Dustice of the ndean 0ommunity! and ndean 0ommunity @ecisions. Table .# listsPeruvian laws dealing with TRP6 issues.

%1. ndean 0ommunity legislation deals with industrial property! copyright and related rights!traditional -nowledge! access to genetic resources and plant breeders' rights. The ndean 0ommon

ndustrial Property Regime :&(((< was introduced by @ecision o. +%#! which brought the ndeancommon regime into line with the TRP6 greement.

%&. @305P may grant licences for reasons of public interest! emergency or national security*and in cases involving dependent patents. 0ompulsory licences also may be granted! either e/ officioor at the reBuest of a party! in the event of practices detrimental to the e/ercise of free competition!especially where they constitute an abuse of a dominant position. 0ompulsory licences are sub,ect to

1++ AT5 documents P9919P3R9P9+ of &+ March &((+* P9919P3R99" of ) ovember &(((*P9919P3R9091 of 1( May &(((* P9919P3R909& of 1( May &(((* P9919P3R909" of 1( May &(((*P9919P3R991 of 1( May &(((* P9919P3R99& of 1( May &(((* P9919P3R9P91 of 1( May &(((*

P9919P3R9P9& of 1( May &(((* P9919P3R9P9" of 1( May &(((* P9919P3R91 of 1" pril &(((.1+8 AT5 document P99+9P3R91 of 1$ ugust 1$$).1+# AT5 documents P9L9P3R91! P9L&9P3R91! P9L"9P3R91! P9L+9P3R91 of 1& Dune &((1.

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adeBuate remuneration and must be used principally for the supply of the domestic mar-et. ocompulsory licences were granted in the period &(((&((#.

%". The system for protecting breeders of new plant varieties has been developed through6upreme @ecree o. (%$#T0 and ndean 0ommunity @ecision o. "+8. Peru is not a member of the nternational 7nion for the Protection of ew 4arieties of Plants :7P54

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