Peru, 2004
Chapter 1 : Tariffs[1] |
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Objective
APEC economies will achieve free and open trade in the Asia-Pacific region by:
a. progressive reduction of tariffs until the Bogor goals are fully achieved; and
b. ensuring the transparency of APEC economies’ respective tariff regimes.
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Guidelines
Each APEC economy will:
a. take into account, in the process of achieving the above objectives, intra-APEC trade trends, economic interests, sectors or products related to industries in which this process may have positive impact on trade and on economic growth in the Asia-Pacific region and developments in the new economy;
b. ensure that the achievement of the above objective is not undermined by the application of unjustifiable measures; and
c. consider extending, on a voluntary basis, to all APEC economies the benefits of tariff reductions and eliminations derived from sub-regional arrangements.
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Collective Actions
APEC economies will:
a. participate and ensure the expeditious supply and updates of the WTO Integrated Database and any other APEC databases;
b. arrange for seminars and/or workshops on industrial tariffs negotiations in consultation with international organisations, where appropriate, including WTO Secretariat on WTO Integrated Tariff Database;
c. study lessons from modalities for tariff reduction and elimination in regional arrangements; and
d. encourage the accession of all economies to the WTO Information Technology Agreement, including the adoption of ITA provisions by non-members of the WTO.
The current CAP relating to tariffs can be found in the Tariffs and Non-Tariff Measures Collective Action Plan
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Peru’s Approach to Tariffs in 2004
Peru, being a small economy, with a mission to increase welfare levels and promote the efficient allocation of resources, has a trade policy oriented towards increasing liberalization. Consistently with this purpose, during the last few years, Peru has unilaterally reduced both tariff levels and tariff dispersion; Peru has participated in the multilateral trade liberalization efforts within the WTO and also, Peru is taking part in a number of trade liberalization agreements with some individual and group of countries: Brazil, Cuba, Chile, Free Trade Area of the Americas (FTAA), Andean Community (CAN), MERCOSUR, among others (Please refer to Tariff Preferences for further detail). Currently, Peru is participating in Free Trade Agreements with United States of America (with countries Andeans Colombia and Ecuador, and Bolivia as observant country) and Thailand.
The President of Peru is responsible for defining Peru’s tariff policy (article number 118º of the Political Constitution of Peru). However, the Ministry of Economy and Finance (MEF) is the institution on which this task has been delegated.
Contact: Luis Monroy (lmonroy@mef.gob.pe), Ministry of Economic and Finance
Links of interest (only in Spanish)
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Case Study of a Tariff Liberalisation Initiative
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Peru’s Approach to Tariffs in 2004 |
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Section |
Improvements Implemented Since Last IAP |
Current Tariff Arrangements |
Further Improvements Planned |
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Bound Tariffs
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There have not been any changes in committed bound tariffs.
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Peru maintains in WTO a bound tariff rate at 30% for most tariff lines, except 29 agricultural tariff lines (maize, wheat, rice, sugar , sugar substitutes and some dairy products), that have higher bound tariff which will converge to a flat bound tariff of 68% in 2004.
Contact point for further details: Luis Monroy, lmonroy@mef.gob.pe. Department of International Economy and Competition, Vice-Ministry of Economy, MEF
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Applied Tariffs
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On December 24th,Peru established Safeguard of Provisional Transition to imports of original textile products from People's Republic of China, corresponding to 106 national tariff lines classified in 12 textile categories (Supreme Decree Nº 026-2003-MINCETUR).
On December 31st 2003, Peru modified tariff rates to 4% ad-valorem CIF to 1029 national tariff lines and to 7% ad-valorem CIF to 82 national tariff lines, in addition, reduced the tariff rates from 25% to 17% ad-valorem CIF to 2 wheat tariff lines. Finally, Peru prorogued the additional tariff surcharge ad-valorem CIF equivalent to 5% and consequently 220 national tariff lines will maintain 12% tariff rate ad-valorem CIF until December (Supreme Decree Nº 193-2003-EF)
On February 26th 2004, Peru reduced to 0% tariff rate ad-valorem CIF of 109 tariff lines corresponding to capital goods of agricultural sector. (Supreme Decree Nº 031-2004-EF)
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The current Peruvian tariff structure has 5 main tariff levels, 0%, 4%, 7%, 12% and 20%. However, considering additional five temporary points tariff surcharge for some agricultural items, Peru’s tariff structure has 8 levels ranging from 0% to 25%.
The following table illustrates these 7 levels:
Tariff Share Share Levels Tariff Lines 2003 import Values 0% 1,56% 1,96% 4% 37,23% 25,93% 7% 1,84% 9,09% 9% 0,01% 0,00% 12% 43,22% 53,84% 17% 0,69% 3,32% 20% 10,90% 3,88% 25% 4,55% 1,98% Total 100,00% 100,00%
Notice that the 12% rate concentrates 43% of tariff lines and 54% of the value of imports for the year 2003.
The current simple average tariff of this structure is 10,2%.
Contact point for further details:Luis Monroy, lmonroy@mef.gob.pe Direction of International Economy and Competition, Vice-Ministry of Economy MEF |
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Tariff Quotas
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Tariff Preferences
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In August 2003, Peru signed a Free Trade Agreement with MERCOSUR. http://www.mincetur.gob.pe
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Peru, simultaneously with its unilateral and multilateral efforts for the liberalization of the economy in the 90s, has signed a number of trade agreements and is currently involved in additional trade negotiations. The main participation of Peru in trade agreements and negotiations are:
Moreover, Peru benefits from a greater access to markets of several countries under the Generalized System of Preferences (United States, European Union, Canada and Japan), and from the special regime being offered by the United States for the substitution of coca leaf production and its illegal use in favor of other alternative production activities, which in 2002 was extended to apparel items under the now Andean Trade Preference and Drug Erradication Act (ATPDEA). Free market access to over 5,500 products. http://www.mincetur.gob.pe
For further information on ATPDEA please contact: atpdea@mincetur.gob.pe
Contact point for further details: Luzmila Zegarra, lzegarra@mef.gob.pe. Direction of International Economy and Competition, Vice-Ministry of Economy, MEF
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With respect to the tariff changes in the year 2003, MEF has published in its webpage a whole section about it, in order to inform the public the rationality of the measures.
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Peru’s tariff regime is transparent. The rates and modifications are published in the following WebPages: (only in Spanish):
http://www.sunat.gob.pe/http://www.mef.gob.pe/
Peru regularly updates tariff information for the APEC Tariff Database (http://www.apectariff.org/).
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Peru will update its tariff information for the APEC tariff database (http://www.apectariff.org/)
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Improvements Peru’s Approach to Tariff Measures since 1998 |
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Section |
Position at Base Year (1998) |
Cumulative Improvements Implemented to Date |
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Bound Tariffs
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In 1998, Peru maintained in WTO a bound tariff rate at 30% for most tariff lines, except 23 agricultural tariff lines (maize, wheat, rice, sugar and dairy products).
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Applied Tariffs
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In 1998 there were only two tariff levels. 20% for textiles, leather goods, processed food and some domestic electric machinery (15% of the tariff lines) and 12% for the rest (85%) of the tariff lines. The average tariff at that year was 13,1.
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Since February 2004 there are eight tariff lines. The complete tariff structure has been shown under the subject Applied Tariffs for 2003. The average tariff is 10,2.
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Tariff Quotas
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Peru was not applying tariff quotas.
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Peru does not apply tariff quotas.
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Tariff Preferences
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· Since 1997 Peru has reassumed all of its obligations within the Andean Community, although it does not apply the Common External Tariff (CET). · As part of the Andean Community, in 1998 Peru agreed with MERCOSUR to form a Free Trade Area.
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· In 2001 Peru has signed with Cuba a Partial Trade Agreement. · Peru and his Andean partners have deepen the bilateral trade preferences with Brazil and Argentina in the year 2002. · In august of 2003 Peru has signed a Free Trade Agreement with MERCOSUR.
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Transparency of Tariff Regime
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All tariff changes were required to be published in the official newspaper El Peruano.
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All tariff changes are required to be published in the official newspaper El Peruano, its website, website of the National Superintendence of Tax Administration (SUNAT) and the Ministry of Economics and Finance website
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APEC INDIVIDUAL ACTION PLAN: TARIFF SUMMARY REPORT FOR {Year} |
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(PLEASE COMPLETE BOXES) |
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All Goods |
Agriculture excluding Fish |
Fish and Fish Products |
Petroleum Oils |
Wood, Pulp, Paper and Furniture |
Textiles and Clothing |
Leather, Rubber, Footwear and Travel Goods |
Metals |
Chemical & Photographic Supplies |
Transport Equipment |
Non-Electric Machinery |
Electric Machinery |
Mineral Products, Precious Stones & Metals |
Manufactured Articles, n.e.s |
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ITEM |
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Bound tariff lines as a percentage of all lines |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
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Duty-free tariff lines as a percentage of all lines |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
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Preferential tariff lines as a percentage of all lines |
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Ratio of tariff lines with quotas to all lines |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
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Simple average bound tariff rate 1/ 2/ |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
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Simple average applied tariff rate |
10.2 |
15.2 |
11.9 |
11.0 |
10.3 |
17.7 |
10.4 |
8.6 |
7.2 |
6.7 |
5.6 |
8.1 |
8.0 |
9.0 |
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Simple average applied preferential tariff rate - indicate for each preferential arrangement 3/ |
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Average applied tariff rate for all lines subject to duty |
10.2 |
15.2 |
11.9 |
11.0 |
10.3 |
17.7 |
10.4 |
8.6 |
7.2 |
6.7 |
5.6 |
8.1 |
8.0 |
9.0 |
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Import-weighted average applied tariff rate - specify FOB or CIF 4/ |
10.0 |
12.9 |
12.0 |
12.0 |
10.6 |
16.6 |
11.6 |
8.8 |
8.1 |
9.4 |
7.3 |
8.9 |
7.5 |
8.9 |
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Import-weighted average bound tariff rate - specify FOB or CIF 2/ |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
30.0 |
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Notes |
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1/ Under the Uruguay Agreement, Peru committed to bind tariff rates at 30% for all goods except 3 agricultural items, that will reach a single rate of 60% in year 2004 2/ There exist 29 agriculture tariff lines with bounds in the range of 97% - 185% refered to maize, wheat, sugar, rice and Dairy products. In these items the bounds will be uniformed at 68% in 2004. 3/ There exist a Free Trade Agreement with Chile and a Preferential Trade Agreement with Mexico. 4/ Weighted by the 2003CIF import values.
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APEC INDIVIDUAL ACTION PLAN: TARIFF DISPERSION TABLE FOR {Year} |
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