Description
Doing Business in Peru 2015 Country Commercial Guide for U.S. Companies
Doing Business in Peru: 2015 Country Commercial
Guide for U.S. Companies
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 2015. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED
STATES.
• Chapter 1: Doing Business In Peru
• Chapter 2: Political and Economic Environment
• Chapter 3: Selling U.S. Products and Services
• Chapter 4: Leading Sectors for U.S. Export and Investment
• Chapter 5: Trade Regulations, Customs and Standards
• Chapter 6: Investment Climate
• Chapter 7: Trade and Project Financing
• Chapter 8: Business Travel
• Chapter 9: Contacts, Market Research and Trade Events
• Chapter 10: Guide to Our Services
Return to table of contents
Chapter 1: Doing Business in Peru
• Market Overview
• Market Challenges
• Market Opportunities
• Market Entry Strategy
Market Overview Return to top
Peru has been one of the fastest growing Latin American economies over the past
decade. Between 2003 and 2013 the Peruvian economy grew an average of 6% per
year. Though the trend did not continue in 2014, Peru’s 2.35% growth was still higher
than the 2.0% average growth in Latin America. The government’s counter-cyclical
stimulus spending, consumption, and private investment are the main driving forces of
this growth. Investment grew by 8.3% year-on-year to a value of USD 33.5 billion in
2014. The Ministry of Economy and Finance set a target of 30% growth in public
investment, and pledged a total of USD 30 billion over the next five years to address
Peru’s infrastructure gap, estimated at USD 80 billion. As the economy has grown,
poverty in Peru has steadily decreased, falling by half from 56% in 2005 to 23.9% in
2013 according to the World Bank.
Peru’s steady economic growth began with the pro-market policies enacted by former
President Alberto Fujimori in the 1990’s. All subsequent governments have continued
these policies, including the current administration inaugurated in J uly 2011 for a five-
year term. President Ollanta Humala pledged to encourage private and public
investment in infrastructure projects in transportation, telecommunications, energy,
sanitation, airports, and maritime ports. Congruent with his other campaign goals to
reduce poverty and narrow the nation’s socioeconomic gap, President Humala has
increased social spending and raised taxes on mining companies.
Peru’s currency, the “Nuevo Sol” (PEN), has been among the least volatile of all Latin
American currencies in the past few years, but has depreciated by almost 10% against
the USD over 2014. Since the mid-1990’s, the PEN’s exchange rate with the USD has
fluctuated between 1.25 and 3.55 per USD. The exchange rate, as of J une 24, 2015,
was 3.15 PEN per USD.
The Government of Peru (GOP) has encouraged integration with the global economy by
signing 17 free trade agreements with 52 economies, including the United States-Peru
Trade Promotion Agreement (PTPA), which entered into force in February 2009. In
2014, trade between the United States and Peru totaled USD 16.1 billion, up from USD
9.1 billion in 2009 the first year of entry into force. From 2009 to 2014, Peruvian exports
to the United States jumped from USD 4.2 billion to USD 6.1 billion (a 45% increase)
while U.S. exports to Peru jumped from USD 4.9 billion to USD 10.1 billion (a 106%
increase). Peru has preferential trade agreements with 52 countries and unions,
including Argentina, Brazil, Bolivia, Chile, China, Colombia, Ecuador, the European
Union, Iceland, J apan, South Korea, Lichtenstein, Mexico, Norway, Panama, Paraguay,
Singapore, Switzerland, Thailand, the United States, and Uruguay.
In its Doing Business 2015 publication, the World Bank ranked Peru 35th among 189
countries surveyed in terms of ease of doing business. The report rates the ease of
processes like starting a business, dealing with construction permits, registering
property, and obtaining credit
(http://www.doingbusiness.org/data/exploreeconomies/peru/).
Market Challenges Return to top
Over the past couple of years, Embassy Lima has received multiple complaints from
U.S. firms on cumbersome and inconvenient government procurement processes.
Furthermore, some ministers within the GOP are more frequently using a government-
to-government (G2G) procurement method in both non-defense and defense-related
procurements. This presents a challenge for U.S. exporters trying to comply with all of
the tender requirements.
Dispute settlement generally remains problematic in Peru. In 2004, the Peruvian
Government established commercial courts to rule on business disputes. With their
specialized judges, these courts have reduced the amount of time to resolve a case from
an average of two years to just two months. The appeals process resolves most of these
cases. However, with the exception of the commercial courts, the judicial system is often
extremely slow to hear cases and to issue decisions. A large backlog of cases further
complicates businesses’ operations.
Court rulings and the degree of enforcement are often inconsistent and highly
unpredictable. Allegations of political corruption and outside interference in the judicial
system are common, a situation that analysts think leads to the judiciary receiving low
approval rates in public opinion polls. Frequent use of appellate processes as a delay
tactic leads to the belief among foreign investors that contracts can be difficult to enforce
in Peru.
While the legal framework for protection of intellectual property (IP) in Peru has
improved over the past decade, enforcement mechanisms remain weak. Despite PTPA
implementation and recent changes in laws, which created stricter penalties for some
types of IP theft, the judicial branch still has yet to vigorously pursue investigations,
convictions and stiff penalties for IP violations.
Both domestic and foreign firms continue to identify cumbersome bureaucratic
procedures as impediments to doing business in Peru. For example, shipments are
regularly held up for various reasons, including typographical errors on shipping
documents. Firms operating in Peru also note difficulties in securing legal solutions to
commercial disputes or enforcing arbitration awards.
Market Opportunities Return to top
The best prospects for U.S. exports of non-agricultural products to Peru include the
following sectors:
• Construction Equipment
• Electronic Commerce
• Food Processing & Packaging
Equipment
• Industrial Chemicals
• Medical Equipment
• Mining Industry Equipment
• Plastic Resins
• Security & Safety Equipment
The best prospects for U.S. agricultural products include:
• Beef and Offal
• Biofuels (Ethanol)
• Cotton
• Dairy Products (Whey, Cheese)
• Forest Products
• Hard Wheat
• Pet Food
• Soybean Meal
• Yellow Corn
Market Entry Strategy Return to top
U.S. companies often find it convenient to appoint local representatives to investigate
market opportunities and establish sales networks. Retention of local legal counsel is
often required to successfully navigate Peru’s business practices and bureaucracy. U.S.
exporters, especially those targeting government agencies, are encouraged to contact
the Commercial Service (U.S. Department of Commerce) at the U.S. Embassy in Lima
to obtain a market briefing and assistance in arranging appointments during a business
trip to Peru, and to learn how the Advocacy Center can support their efforts competing in
government tenders. For more information on these services, please refer tohttp://export.gov/peru/.
The Foreign Agricultural Service (FAS) (http://www.usdaperu.org.pe/ ) and U.S.
Department of State Economic Section (http://lima.usembassy.gov/econ.html/) can also
provide briefings on the economic, financial, and investment climate in Peru.
Return to table of contents
Return to table of contents
Chapter 2: Political and Economic Environment
The United States began diplomatic relations with Peru in 1827. Since the start of the
21
st
century, Peru has undergone consistent economic growth, poverty reduction, and
broad support for democracy. The U.S – Peru Trade Promotion Agreement (PTPA) went
into force on February 1, 2009, increasing incentives for economic and social
cooperation between the two countries.
Current bilateral programs include efforts to limit the production and export of illegal
narcotics, primarily cocaine, to reduce poverty and to strengthen the rule of law within
Peru. The US offers direct support to the Peruvian National Police (PNP) and Customs
Agency (SUNAT) as well as funding to build the capacity of judicial actors.
On J uly 28, 2011, President Ollanta Humala Tasso began his five-year term on a
platform of social and economic inclusion for all Peruvians. While the country has
experienced impressive growth rates, low inflation, and a dramatic poverty drop, many
challenges remain. J ust under one-quarter of all Peruvians live in poverty and illegal
coca and cocaine production continue to rise. Balancing poverty reduction with
environmental stewardship and economic growth will be an ongoing challenge for years
to come.
For more background information on the political and economic environment of the
country, please click on the link below to the U.S. Department of State Background
Notes.
http://www.state.gov/r/pa/ei/bgn/
Return to table of contents
Return to table of contents
Chapter 3: Selling U.S. Products and Services
• Using an Agent or Distributor
• Establishing an Office
• Franchising
• Direct Marketing
• J oint Ventures/Licensing
• Selling to the Government
• Distribution and Sales Channels
• Selling Factors/Techniques
• Electronic Commerce
• Trade Promotion and Advertising
• Pricing
• Sales Service/Customer Support
• Protecting Your Intellectual Property
• Due Diligence
• Local Professional Services
• Web Resources
Using an Agent or Distributor Return to top
Peruvian law does not require the use of local distributors for private sector commercial
sales. However, for sales to the government, it is recommended that U.S. companies
contract and register a local agent. (See "Selling to the Government" later in this
chapter.) Exporters to Peru often find it advantageous to have a representative on the
ground to stay abreast of the latest opportunities and developments in the company’s
area of interest.
The Commercial Service in Lima recommends companies to be thorough when selecting
an agent or representative in Peru. U.S. companies are encouraged to take advantage
of U.S. Department of Commerce services by contacting the local Export Assistance
Center (EAC) located in major cities throughout the United States, including Alaska and
Hawaii. Services include the International Partner Search (IPS), which helps to pinpoint
interested agents and distributors, the Gold Key Service (GKS), which arranges
meetings in-country with potential company representatives (agents or distributors), and
the International Company Profile (ICP), which reports on the credit and business history
of individual local companies. For detailed information, refer to Chapter 10: Guide to Our
Services.
Establishing an Office Return to top
It is essential for companies planning to operate in Peru to retain reputable legal
counsel. Law firms are referred to as “Estudios” and attorneys as “Doctor” or “Doctora”
followed by their last name. An attorney should be proficient in matters concerning taxes
on corporate and branch income, corporate residence, value-added taxes, income
determination, capital gains, inter-company dividends/pricing, stock dividends,
depreciation and depletion, net operating losses (tax losses), and payments to foreign
affiliates. Other significant issues to consider include workers’ benefits, payroll and
withholding taxes, municipal operating permits, and labor laws that will impact the
business when it starts operations. Many U.S. companies retain the local representative
of their U.S.-based auditor. A partial list of local lawyers and/or tax and audit firms can
be found in this chapter.
Foreign corporations interested in doing business in Peru on a permanent basis must be
formally incorporated and registered in the Peruvian Mercantile Registry (Registro
Mercantil del Perú). Real estate may be acquired by any foreign entity without the need
to establish an office. There are two main types of business organizations that can be
used for these purposes: branch offices and incorporated subsidiaries. It is only
necessary to vest a local individual with sufficient powers to conduct and close the sale.
Office space suitable for international companies has substantially increased in the last
ten years in several neighborhoods of Lima. The price of rent for newly built offices has
increased, partly the consequence of numerous foreign companies setting up shop in
Peru. Because of the still ongoing housing boom, with fine dwellings built in Lima’s
residential areas, it is easier for foreign managerial staff to relocate to Peru. The
situation in several other cities outside of the capital is more and more similar to that of
Lima.
Industrial space is scarce in or close to Lima. New operations have thus had to accept
areas in the southern and eastern outskirts of Lima.
Establishing a Branch
To establish a branch, the following documents will be required:
• Copy of the articles of incorporation of the parent company.
• Certificate of incorporation and good standing or other official document certifying
the existence and continuous operation of the parent company. This certificate
must state that the parent company is not prohibited, either by law or by its own
by-laws, from establishing branches abroad. If such a statement cannot be
included in the certificate, then a Notary Public may do so in a separate
document.
• Copy of the minutes of the board of directors' meeting where the resolution to
establish a branch in Peru appears. This resolution should specify:
o The domicile in Peru.
o Duration of the branch (may be indefinite) and the commencement of
operations.
o The purpose of the branch, clearly specifying the business and operations
that will be conducted in Peru, stating that said purpose is comprised in
the parent company’s purpose.
o Name of person(s) authorized to act in the registration of the branch and
in its representation, and powers vested in him/her, which must include
powers to resolve any issue related to the branch activities; to hold the
corporation liable for its operations; to appear in court; and to respond to
suits brought against it. The holder of the parent corporation’s power of
attorney, duly registered, directs the branch. The parent corporation can
revoke such power anytime.
o There is no requirement for the parent company to submit its financial
statements to Peruvian authorities.
A Notary Public or appropriate government official in the country of incorporation must
legalize all documents granted abroad. A local Peruvian Consul must then authenticate
the signatures of the Notary or the government official. The documents should be in
Spanish, and if not, must be translated by an authorized translator. Upon receipt, the
signature of the Peruvian consul must be legalized in the Ministry of Foreign Affairs
(MFA).
Registration fees are as follows:
• Registration fee: approximately 0.3% of the assigned capital with a maximum of
approximately US$1,400.
• Translation fees: between US$10 and US$12 per page.
• Legalization at the MFA: US$20 per document.
• Notary and legal fees: widely variable rates.
Once residence or domicile can be demonstrated, the foreign company must obtain a
taxpayer number (Registro Unico del Contribuyente, “RUC”). The taxpayer will use its (or
his or her personal) RUC number in all commercial transactions, similar to the federal
tax identification number (EIN) in the United States.
Incorporating a Subsidiary
The corporation is the most common form for establishing a business entity in Peru. A
minimum of two shareholders is required. One hundred percent foreign ownership of an
investment is allowed, except for a limited number of restricted activities (see “Chapter 6:
Investment Climate, Openness to Foreign Investment”).
To comply with the rules of incorporation of a subsidiary, various documents will be
required.
If participating shareholders are foreign individuals, they need only present valid
identification (passport), but for corporations participating as shareholders the following
documents must be filed:
• Certificate of Good Standing
• Copy of the minutes of the board of directors' meeting where the resolution to
participate in the incorporation of a Peruvian company appears. This resolution
should indicate the name of the person appointed as representative to act on
behalf of the shareholders in all the incorporation procedures.
No minimum capital is required.
The Business Corporation Law regulates three forms of corporation:
• Common corporation (SA: Sociedad Anónima)
• Closed corporation (SAC: Sociedad Anónima Cerrada)
• Open corporation (SAA: Sociedad Anónima Abierta)
Closed Corporation
The closed corporation (SAC) must have a minimum of two and a maximum of 20
shareholders. The shareholders and chief executive officer manage the SAC. Unlike a
common corporation (SA), an SAC board of directors is optional. In case of transfer of
shares, the law stipulates a right of first refusal for the existing shareholders, but
company by-laws may eliminate this right.
Open Corporation
The open corporation (SAA) does not limit the maximum number of shareholders and is
intended for companies making public offerings. No limitations are allowed for the
transfer of shares. Peru’s Exchange and Securities Supervisory agency
(Superintendencia del Mercado de Valores, SMV) supervises open corporations.
The above types are limited liability corporations (LLC). Another LLC business structure
is the Sociedad Comercial de Responsabilidad Limitada: a legal entity different from its
owners, who can be either individuals or corporations. The liability of the partners is
limited to the amount of their contribution. As with a typical closed corporation, the
minimum number of partners is two and the maximum is 20. However, in this
organization a transfer of shares to third parties is subject to approval by the existing
partners—right of first refusal is mandatory—and must be registered in the Public
Records Office. The name of the company must include the abbreviation "S.R. Ltda."
For more information on setting up a company in Peru, visit the following web pages of
the Private Investment Promotion Agency of Peru (ProInversión) and the MFA.
http://www.investinperu.pe/modulos/J ER/PlantillaStandard.aspx?are=1&prf=0&jer=5761
&sec=17
http://www.rree.gob.pe/promocioneconomica/invierta/Paginas/Comience_a_Invertir.aspx
(in Spanish)
http://www.rree.gob.pe/promocioneconomica/invierta/Documents/Peru_Business_and_I
nvestment_Guide_2015_2016.pdf
All potential investors should contact an attorney and/or an accounting firm to
understand the legal framework for investment protection established by the Foreign
Investment Promotion Law, the Framework Law for Private Investment, the Law for the
Promotion of Private Investment in State-Owned Companies, and the Law for the
Promotion of Private Investment in Public Utility Facilities.
In the event of a commercial dispute, national or international arbitration may be used,
but only if this is agreed to by the parties in an agreement or contract before the dispute
arises. Arbitration cannot be imposed unilaterally after the fact as a means to resolve
controversies or disputes. Please contact FCS Lima to discuss arbitration venue options.
The American Chamber of Commerce in Peru (AmCham) and Lima Chamber of
Commerce (CCL) maintain a fully staffed arbitration center open to members and non-
members.
Franchising Return to top
The franchise sector in Peru encompasses approximately 375 companies, primarily
concentrated in food services. About 52% are foreign owned, mostly by U.S. companies
(22%), and 48% are Peruvian. Experts report that the sector is growing and presently
moves USD$ 1.2 million in one year.
There is no specific legislation to govern franchising, although franchises in Peru are
subject to general commercial law, general antitrust law, and Decisions 486, 608, and
291 of the Andean Community. According to articles 162 through 164 of Decision 486, a
written license agreement must be registered at the patents and trademarks office
(INDECOPI: www.indecopi.gob.pe). Prospective franchisers need to be aware of a 30%
income tax on royalties, 18% value added tax (paid by the local company), and import
tariffs depending on the type of goods. Countries that have signed double taxation
agreements with Peru have separate regimes for royalties and withholding income tax
(the U.S. is not included).
Promising sectors apart from food services are:
• Aesthetics, beauty and health (beauty salons, spas, gyms)
• Clothing and accessories (clothing, footwear, jewelry, costume jewelry, gifts)
• Specialized services (entertainment, playgrounds, etc.)
• Education (high schools, universities)
Direct Marketing Return to top
Direct marketing is well established in Peru in the services sector, especially among
financial institutions and seminar organizers. A common practice is to hire personnel or
to contract a company for telemarketing and mailing campaigns. Databases for direct
marketing are kept private by its owners and thus are not freely available. Nevertheless,
commercial information can be obtained through Peru’s Chambers of Commerce and
trade associations (See Chapter 10: Contacts, Market Research and Trade Events).
Several call centers providing support to the U.S. or other Latin countries are operating
in Peru as well.
Catalog sales for consumer goods in Peru remain small because consumers prefer to
personally visit the retail location to determine the quality of the product and ease of
obtaining warranty support. Additionally, consumers find parcel delivery through Peru’s
postal system unsatisfactory. Courier companies are taking advantage of this
opportunity to promote their services.
Joint Ventures/Licensing Return to top
Peruvian law allows for joint ventures and licensing agreements with a legally
established local partner who will be accountable for all legal matters. The textile
manufacturing industry in particular has attracted a great deal of licensing and joint
venture activity.
Selling to the Government Return to top
To sell to the Peruvian government, interested suppliers have to participate in a tender
process, for which they must register with the National Registry of Suppliers (Registro
Nacional de Proveedores, or RNP:http://portal.osce.gob.pe/osce/node/386, in Spanish
only). The RNP consists of the following chapters: construction firms, construction
consultants, suppliers of goods and services, and unqualified suppliers to the
government. An individual or a company can register in any of the first three chapters
and can choose to register jointly as a goods and services provider.
To register, a company must follow several steps (Spanish,http://portal.osce.gob.pe/osce/content/guia-de-como-venderle-al-estado):
• Pay a fee (which is revised annually) at the Government Procurement
Supervisory Agency (Organismo Supervisor de las Contrataciones del Estado,
OSCE) of about $79 for suppliers of goods and/or services or about $124 for
construction firms or construction consultants.
• After obtaining the User Kit provided by OSCE once the fee is paid, file the
official form (available at www.osce.gob.pe) signed by the legal representative.
• The legal representative must have its powers registered with the Peruvian
Public Registry. If the powers of the legal representative are not registered, this
can be done within 15 working days. Provide a copy of the incorporation deed or
documents that demonstrate the company’s legal establishment/status, duly
apostilled. The documents need to be translated into Spanish by an official
Peruvian interpreter.
Peruvian law permits an independent distributor to pay commissions or fees to third
parties in connection with sales to the government. For example, a company in Peru can
purchase products from a company in the United States and then pay a third party fee to
resell them to the Peruvian government. There are no Peruvian restrictions on
commissions or mark-ups on sales to the government by either agents or distributors
and the rates vary widely depending on product, client, and competition.
Government agencies must publish tender notices for all major purchases in the official
gazette, while sometimes they also publish tenders in main local newspapers. The
government, in an effort to ensure transparency for some government tenders, has been
using the United Nations Office for Project Service (http://www.unops.org/) to notify
potential suppliers or to handle some bids, but this method apparently does not allow
screening by the General Controller Agency and has thus fielded criticism. Peru is not a
signatory to the World Trade Organization (WTO) Agreement on Government
Procurement. The United States-Peru Trade Promotion Agreement (PTPA) includes a
specific chapter on Government Procurement (“Contratación Pública” in Spanish).
Selling to government agencies remains problematic in spite of PTPA’s stipulations. In
December 2007, the Garcia Administration requested Congressional authority to pass
legislation on various matters in order to implement PTPA so that Peru could make the
most of it, expressly including government purchases among those matters. Congress
quickly consented to the request and Peru’s Government passed Legislative Decree No.
1017 (LD 1017), Government Procurement Law (Ley de Contrataciones del Estado).
This law requires public tenders for major purchases of goods, supplies and works by
government agencies (including the Armed Forces and the National Police). On the
other hand, the Peruvian armed forces and national police have long shown a
preference to make deals directly, shunning open tenders. In J uly 2012, the Defense
Ministry enlisted the support of OSCE which, with an implausible opinion, left out private
companies from bidding for major purchases through a so called “government to
government” procurement (i.e., purchases by a Peruvian government agency from a
foreign government agency or government-owned company). The Defense and Interior
Ministries used OSCE’s opinion to pass a number of legal precepts on which they based
several of their main procurement contracts since then. Further, an article hidden in the
2013 Budget Law (Thirty Final Supplementary Provision) specified that procurements of
the Peruvian State from another State are not under the scope of LD 1017.
Among the reasons for its opinion (see Web Resources below), OSCE stated that
government to government contracts due to their own character and the nature of the
contracting parties (sovereign states) are different from the “administrative contracts”
(those in which the parties are a government and a private party). OSCE implausibly
argued that the government entity, acting in exercise of the administrative function and
protecting public interest, can unilaterally modify contracts. This is in blatant
contradiction with Peru’s 1993 Constitution, Article 62, which establishes that
“Contractual terms may not be modified by laws or any other provision whatsoever”.
Furthermore, even though the parties are sovereign states, OSCE acknowledged that
“government-to-government procurement” is at least subject to each contracting State’s
public law rules, the rules of international law and the international trade rules.
In the last few years, local media have reported denunciations of overvalued prices in
the case of several government-to-government purchases of goods for the police or the
armed forces. Cases include purchases of a satellite, planes, and helicopters.
Overvaluation has apparently occurred even in the case of open tenders as in the
notorious recent case of the purchase of 591 binoculars by the Interior Ministry for the
National Police in December 2013. The main local daily El Comercio denounced that the
Interior Ministry bought the 591 binoculars at the grossly overvalued price of about
$1,736 each, whereas the daily found similar binoculars at about $121 each. In early
February 2014, the Interior Ministry announced it had annulled the purchase, implying
that it annulled the purchase before the daily’s denouncement, but the daily proved that
that was not the case. The preference of the Ministry of Defense and Ministry of Interior
to pursue government-to-government deals continues to today, however the
establishment of a new centralized procurement system by the Ministry of Defense for
the Armed Forces should lead to positive changes in their purchasing practices.
Distribution and Sales Channels Return to top
The population of Peru is highly centralized, with 30% of all inhabitants living in the
capital city of Lima, 50% of GDP generated in and around Lima, and the national
government being the main government buyer. As a result, a large portion of the sales
activities of U.S. firms occurs in Lima. Sales opportunities do exist and are growing in
other major population centers such as Arequipa, Chiclayo, and Trujillo. This could be a
consideration for a U.S. company’s overall marketing strategy. Representatives in Lima
typically have sales agents in these cities, covering sales opportunities in the provinces.
Sending letters via express delivery can take up to two weeks and for packages longer
due to lengthy holding procedures by Peruvian customs.
The most common method of distribution is the appointment of a representative.
Appointing an agent or distributor is advisable for companies seeking to develop a
market on a sustained basis.
The Government of Peru has embarked upon an initiative to decentralize some elements
of government authority and decision-making, including implementation of spending
programs utilizing the “canon,” a revenue-sharing scheme of taxes imposed on some
extractive industries. This increase in regional authority is an important consideration
when contemplating a local representative outside of Lima. Decentralization of
government budgeting and spending authority can also make completing sales more
challenging, especially in municipalities or provinces where government agencies may
have limited experience in designing and implementing major projects or lack of financial
and procurement expertise.
An alternative approach to distribution is to establish a local subsidiary or branch office.
Companies with a complicated product or service use this method because it allows for
effective after-sales service and more aggressive promotion of a product. Costs of
commercial and industrial space are relatively high in the Lima area and in several main
cities.
Selling Factors/Techniques Return to top
Product pricing is a key selling factor in the Peruvian market. Products from Asian
economies such as China, Taiwan, and Korea often outsell more expensive European or
North American consumer products in the realm of consumer electronics, appliances
and automobiles. Knockoffs and pirated goods are problematic as well. However, with
investment in sales promotion and post-sales service infrastructure, U.S. goods can be
competitive.
Equipment performance and efficiency influence the decision-maker when purchasing
capital goods, notably advanced electronics and construction machinery. The customer
often prefers more expensive U.S. or European products, which are highly rated for
quality, durability, technology, customer support, and regional service.
Many of the larger representatives have regional offices in other cities outside of Lima.
The rest of Peru is largely under-populated and underdeveloped and does not offer an
attractive market for technical equipment, with certain exceptions, such as the large-
scale mining operations located along Peru’s Andes mountain range and petroleum
operations in the Amazon jungle.
Payment for major purchases is generally on a net 30-day basis. For new market
entrants or when dealing with new customers, it is advisable to request up-front payment
or work on a confirmed, irrevocable letter of credit basis. Over the counter purchases are
done in cash (U.S. dollars are widely accepted), wire transfer, or credit card. Most
retailers use credit terms as a sales technique and major department stores issue their
own credit cards. U.S. exporters are encouraged to explore the programs and services
offered by the Export-Import Bank of the U.S. (www.exim.gov) to enhance the credit
terms offered to Peruvian buyers.
Electronic Commerce Return to top
The Peruvian E-commerce market is small and developing slowly compared to
international standards. Business-to-Business (B2B) commerce is mostly conducted
between large enterprises with the percentage of transactions growing modestly. These
companies use B2B as a commercial practice to cut operational costs. Many medium-
size firms do not clearly understand the real importance of electronic B2B and Business-
to-Consumers (B2C) solutions. They focus mostly on cost reduction instead of
enhancing their distribution channels or developing new products or services that
improve their overall reach.
The following is a list of successful firms considered to be local benchmarks in Peruvian
E-commerce solutions:
a)http://peru.com/ A popular web portal.
b)http://www.rosatel.com/ Rosatel allows online orders of flowers and gift baskets.
c) All banks (e.g.,http://www.viabcp.com,http://www.bbvabancocontinental.com) and
most financial institutions have websites to provide clients with services such as
paying utility bills, obtaining insurance coverage, internet shopping and information.
Transactions are made with debit or credit cards such as Visa, Mastercard or
American Express (Amex).
d)http://www.wong.com.pe Wong is Peru’s largest supermarket chain. This website
allows the company to receive and pay for orders via the internet from local and
foreign-based consumers for local delivery.
e) Telecommunications industry firms have websites and portals to interact with the
market in a variety of services, ranging from refilling pre-paid telephone cards to
sending direct marketing SMS messages to target market segments (e.g.,http://www.movistar.com.pe,http://www.claro.com.pe).
There have been interesting advances in the use of the internet in several Peruvian
government institutions such as the tax collecting agency, SUNAT
(http://www.sunat.gob.pe); the public registry, SUNARP (http://www.sunarp.gob.pe); and
the Peruvian state-owned bank, Banco de la Nación, which handles the Treasury
accounts (http://www.bn.com.pe). The National Elections Bureau, ONPE
(http://www.onpe.gob.pe) is testing electronic voting and has also improved internet
usage.
The Peruvian government has established a special task force under the name of E-Gob
Peru managed by the National Office of E-Government and Information Technology
(ONGEI:http://www.ongei.gob.pe/), under the President of the Council of Ministers. This
office is seeking to continuously develop Gov2Citizens solutions for tax payment and
information on customs and foreign trade (http://www.sunat.gob.pe/) as well as
Gov2Gov transactions as a means to reduce expenses within the different agencies.
Operational services include a citizens’ IDs service portal (http://www.reniec.gob.pe/),
and business-assistance services for small and medium-size companies
(http://www.crecemype.pe/). The Peruvian government is also implementing an
Electronic Procurement System (SEACE: Sistema Electrónico de Adquisiciones y
Contrataciones del Estado). The principal stated objectives of this electronic system are
to improve the transparency and the efficient operation of government purchases.
There is no Public Key Infrastructure (PKI) in Peru yet, but digital signatures are widely
used for tax declarations (more than one million users). Transactions are made through
electronic funds transfer and Banco de la Nación has created a secure platform for
online transactions. The Antitrust, Unfair Competition, Intellectual Property Protection,
Consumer Protection, Dumping, Standards and Elimination of Bureaucratic Barriers
Agency (INDECOPI,http://www.indecopi.gob.pe/) is working to implement a PKI under
the E-Gob Peru project. Peru is expected to use the U.S. PKI business model.
Development of the legal framework has proceeded as follows:
a) Protection of Personal Information: Complete.
b) Electronic Signature: Complete, but will be modified.
c) Electronic Commerce: Not explicit, but there is a bill that refers to concessions
done electronically (Civil Code 141 and 141A.)
d) Validity for Procedures related to E-Gob Peru: Under development.
e) Electronic Governmental Hiring Process: Under development.
Trade Promotion and Advertising Return to top
In 2014 Peruvian advertising expenditures are expected to reach USD$ 751 million. As
in previous years, television advertisements account for the biggest expenditures, with
USD$415 million. Newspapers and radio will claim an estimated USD$115 million and
USD$83 million. Internet advertisements are expected to reach USD$ 40 million, up
14.3% from 2013.
Lima boasts 30 daily newspapers, a few of which strive for national coverage. Locally
oriented newspapers can be found in most provincial capitals. First in terms of influence
is El Comercio, the nation's second oldest paper with 175 years of continuous
publication. Three major dailies, Peru.21, Trome, and business daily Gestión, belong to
El Comercio Group. Other major dailies are Correo, La República, La Razón, La
Primera, Expreso, tabloids Ojo, and El Popular, and the official gazette El Peruano,
founded in 1825, which acts as the official newspaper of record. All laws passed in Peru
must be published in this daily. Additionally, Caretas, a weekly magazine founded in
1950, is one of Lima’s most influential news publications.
In August 2013, El Comercio Group acquired from the EPENSA Group the control over
printing, circulation and publicity of Correo, Ojo and El Bocón. EPENSA retained control
over the editorial line.
According to the Ministry of Transportation and Communications (MTC), as of February
2015 there were 5,325 radio and television stations in Peru. Lima boasts the most
television stations (127), followed by Puno (121) and J unín (95). The Cajamarca region
is the leader in radio stations (320), followed by Ancash (313) and Lima (304).
Radio reaches the largest audience of all communications media, reaching even the
most isolated populations in Peru. It is often the first source of current news and is the
principal vehicle in the regions outside Lima for transmitting information about local
issues and events.
There are thousands of radio stations in Peru broadcasting on AM, FM, and short wave
frequencies. Many of these stations are small storefront operations that serve relatively
limited audiences. Radio's most influential source of news and information is “Radio
Programas del Peru” (RPP). RPP is the only network with a national reach with
transmitters and correspondents in virtually every important city in Peru. In most major
cities, including Lima, RPP leads most AM and FM ratings and it boasts an influential
listening audience, as well as a TV station for simulcast.
Television permeates the urban environment in Peru and has become increasingly
available to rural audiences as well. As in the United States, television is often the
primary source of news for a majority of those who have access to it.
The most important players in TV are the six major Lima-based television networks,
along with a government-owned service, which for years was the only station available in
many parts of Peru. These seven broadcasters use affiliates in the provinces much like
their counterparts in the United States. In addition, there are numerous smaller
independent stations that serve particular cities and regions.
Cable television is also a powerful player in the Peruvian market. A National Urban
Study of Radio and TV Coverage conducted in May/J uly 2014 reported that as of 2014
57.7% of households use cable television (72.5% in Lima and 47.5% in the rest of the
country). Canal N, a 24-hour cable news channel owned by El Comercio, is highly
influential. The main cable service companies are Telefónica del Perú (Spain), offering
“Movistar TV”; the America Móvil Group (Mexico), with its product “Claro TV”; the
Caracol Group (Colombia), with its local product “Cablevision”; and the DirecTV Group
(USA), offering its cable service "DirecTv.” Their packages include CNN and
programming from other Latin American, Asian and European countries. The remaining
cable companies are small firms offering their services in concentrated areas
surrounding Lima or in the provinces.
Major Lima-based networks maintain news websites that correspond to their print and
broadcast outlets. The most popular are RPP, El Comercio, Andina, Peru.21, and La
Republica news service.
According to a May 2015 poll reported in the daily Gestión, 30% of urban Peruvians use
the Internet every day between one and three hours. The Penetration role of the Internet
is 53% in Lima and 46% in the rest of Peru. Among youth between 18 and 24 years old,
favorite internet tools are Facebook (96%), YouTube (63%), and Twitter (25%). The
most popular websites include Google and YouTube. At the same time, 94% of internet
users access news sites. Blogging is still not popular enough to be a source of
independent income and most bloggers are affiliated journalists or academics. Although
social media has not yet been used successfully in Peru to organize a large scale
political movement, it has played a role in mobilizing public opinion and rallies on specific
issues. The U.S. Embassy Lima Facebook page has over 205,000 fans and the Twitter
account has over 40,000 followers including many of Peru’s leading opinion makers.
Pricing Return to top
In general, Peru is an open market, with minimal trade restrictions. The imports-weighted
average tariff is 1.8% and the simple average is 3.2%. Distributor mark-up varies
according to type of product, but usually ranges between 12% and 25%. All imports are
subject to an 18% value-added local sales tax, which can be used as a tax credit by the
importer. There are some exceptions: enterprises established in industrial free zones
and special treatment zones; companies that have their operations in the jungle regions
of Loreto, Ucayali, Madre de Dios, Amazonas, and San Martin, in accordance with the
Peruvian-Colombian Amazon Cooperation Treaty. Some luxury items have higher tariffs
and some specific goods such as cigarettes, beer, wine, and liquors pay an excise tax
according to the lists and rates included in Appendixes III and IV of Legislative Decree
No. 821 (passed on April 23, 1996). In December 2007, the 10% excise tax for new
automobiles was eliminated, and the excise tax applied to used cars was left at 30%.
Imports from countries with which Peru has bilateral or regional agreements are covered
by different, preferential tariff schedules.
Sales Service/Customer Support Return to top
Peruvians consider service and support a critical factor in making the final purchasing
decision, especially for products that require periodic servicing. It is important for the
product to be sold through a reliable distributor that offers the quality and services that
the client requires. For example, servicing and availability are currently the two
perceived advantages that new Asian autos enjoy over their U.S. competitors in the
Peruvian market. Another example would be mining equipment, where U.S. after-sales
service enjoys a superior reputation to that of third-country competitors.
Protecting Your Intellectual Property Return to top
IP Rights Climate in Peru
While the legal framework for protection of intellectual property (IP) in Peru has
improved over the past decade, enforcement mechanisms remain weak. Piracy remains
a significant and endemic problem for legitimate owners of trademarks, copyrights, and
patents in Peru. Peru has remained on USTR's Section 301 "Watch List" since 2001 due
to continued high piracy rates and inadequate enforcement of IP laws. Weak or
unenforced penalties for IP violators also contributed to the Watch List determination.
Under the U.S.-Peru Trade Promotion Agreement (PTPA), Peruvian law must provide
the same protection for U.S. companies as Peruvian companies in all IP categories. The
PTPA provides for improved IP protection on a broad range of IP rights. Such
improvements include: protections for digital products (e.g., U.S. software, music, text,
and video); protection for U.S. patents, trademarks and pharmaceutical and
agrochemical test data; legal penalties to deter piracy; and an electronic system to
register and maintain trademarks.
Despite PTPA implementation and recent changes in laws which create stricter penalties
for some types of IP theft, egregious IP rights infringement persists. The judicial branch
continues to fail in imposing sentences that adequately deter future IP theft. Prosecutors
are not increasing the number of piracy cases they pursue through the entire process to
final judgment. Furthermore, the Peruvian public knowingly and openly continues to
purchase pirated software, CDs, DVDs, pharmaceutical products, books, and other
products. Peruvians purchase pirated and counterfeit products from vendors who
operate in the open, as neither party fears punishment by their government which has
shown little will to prosecute these illegal actions. The Peruvian government has
occasionally carried out raids against individual vendors of pirated goods, but few
against criminal gangs that control the supply and distribution chains.
Peruvian government institutions, often with the support of the U.S. Embassy in Lima,
sponsor public awareness campaigns about the damage that IP theft causes the
Peruvian economy and personal health risks from counterfeit medicines to individuals.
Peruvian newspapers highlight stories how piracy harms Peruvians, including
counterfeited books by Peru’s Nobel Laureate Mario Vargas Llosa.
The International Intellectual Property Alliance (IIPA) estimates that 98% of recorded
music in Peru is pirated. The Business Software Alliance and the International Data
Corporation (IDC) estimate that software piracy levels decreased from 71% in 2009 to
68% in 2012. While larger U.S. and foreign software companies have been able to
provide heavily discounted or free cloud-based versions of their products, smaller
software companies continue to struggle to prevent their products from being pirated.
The majority of individually-owned motion pictures in Peru are pirated. Peru’s piracy rate
remains higher than the regional (61%) and global (42%) averages for software piracy.
U.S. pharmaceutical and agro-chemical industries claim that the Peruvian government
fails to provide data exclusivity protection for their products. For instance, the Peruvian
government does not provide patent linkage or “second use” medical patents. The
pharmaceutical industry also claims the Peruvian government does not offer any
extension of the patent term for pharmaceutical products to compensate for delays at the
patent office. The agro-chemical industry has complained of government mechanisms
that allow for the importation of generic copies that infringe on their registered patents.
The Peruvian government agency charged with promoting and defending intellectual
property rights is the Institute for the Defense of Competition and Protection of
Intellectual Property (INDECOPI,http://www.indecopi.gob.pe/), established in 1992.
Peru belongs to the World Trade Organization (WTO) and the World Intellectual
Property Organization (WIPO). Peru’s legal framework provides for registration of
trademarks, and inventors have been able to patent their inventions since 1994. Peru’s
1996 Industrial Property Rights Law provides an effective term of protection for patents
and prohibits devices that decode encrypted satellite signals. Peruvian law does not
provide pipeline protection for patents or protection from parallel imports. Peru’s
Copyright Law is generally consistent with the World Trade Organization’s Agreement on
Trade-Related Aspects of Intellectual Property (TRIPS).
Protecting Your Intellectual Property in Peru:
Several general principles are important for effective management of intellectual
property (“IP”) rights in Peru. First, it is important to have an overall strategy to protect
your IP. Second, IP may be protected differently in Peru than in the United States. Third,
rights must be registered and enforced in Peru, under local laws. For example, your U.S.
trademark and patent registrations will not protect you in Peru. There is no such thing as
an “international copyright” that will automatically protect an author’s writings throughout
the entire world. Protection against unauthorized use in a particular country depends,
basically, on the national laws of that country. However, most countries do offer
copyright protection to foreign works under certain conditions, and these conditions have
been greatly simplified by international copyright treaties and conventions.
Registration of patents and trademarks is on a first-in-time, first-in-right basis, so you
should consider applying for trademark and patent protection even before selling your
products or services in the Peru market. It is vital that companies understand that
intellectual property is primarily a private right and that the U.S. government cannot
enforce rights for private individuals in Peru. It is the responsibility of the rights' holders
to register, protect, and enforce their rights where relevant, retaining their own counsel
and advisors. Companies may wish to seek advice from local attorneys or IP consultants
who are experts in Peruvian law. The U.S. Commercial Service can provide a list of local
lawyers upon request.
While the U.S. Government stands ready to assist, there is little we can do if the rights
holders have not taken these fundamental steps necessary to securing and enforcing
their IP in a timely fashion. Moreover, in many countries, rights holders who delay
enforcing their rights on a mistaken belief that the USG can provide a political resolution
to a legal problem may find that their rights have been eroded or abrogated due to legal
doctrines such as statutes of limitations, laches, estoppel, or unreasonable delay in
prosecuting a law suit. In no instance should U.S. Government advice be seen as a
substitute for the responsibility of a rights holder to promptly pursue its case.
It is always advisable to conduct due diligence on potential partners. A good partner is
an important ally in protecting IP rights. Consider carefully, however, whether to permit
your partner to register your IP rights on your behalf. Doing so may create a risk that
your partner will list itself as the IP owner and fail to transfer the rights should the
partnership end. Keep an eye on your cost structure and reduce the margins (and the
incentive) of would-be bad actors. Projects and sales in Peru require constant attention.
Work with legal counsel familiar with Peruvian laws to create a solid contract that
includes non-compete clauses, and confidentiality/non-disclosure provisions.
It is also recommended that small and medium-size companies understand the
importance of working together with trade associations and organizations to support
efforts to protect IP and stop counterfeiting. There are a number of these organizations,
both Peruvian or U.S.-based. These include:
• The U.S. Chamber and local American Chambers of Commerce
• National Association of Manufacturers (NAM)
• International Intellectual Property Alliance (IIPA)
• International Trademark Association (INTA)
• The Coalition Against Counterfeiting and Piracy
• International Anti-Counterfeiting Coalition (IACC)
• Pharmaceutical Research and Manufacturers of America (PhRMA)
• Biotechnology Industry Organization (BIO)
IP Resources
A wealth of information on protecting IP is freely available to U.S. rights holders. Some
excellent resources for companies regarding intellectual property include the following:
• For information about patent, trademark, or copyright issues -- including
enforcement issues in the US and other countries -- call the STOP! Hotline: 1-
866-999-HALT or visit www.STOPfakes.gov.
• For more information about registering trademarks and patents (both in the U.S.
as well as in foreign countries), contact the U.S. Patent and Trademark Office
(USPTO) at: 1-800-786-9199, or visithttp://www.uspto.gov/.
• For more information about registering for copyright protection in the United
States, contact the U.S. Copyright Office at: 1-202-707-5959, or visithttp://www.copyright.gov/.
• For more information about how to evaluate, protect, and enforce intellectual
property rights and how these rights may be important for businesses, please
visit the “Resources” section of the STOP fakes website athttp://www.stopfakes.gov/resources.
• For information on obtaining and enforcing intellectual property rights and
market-specific IP Toolkits visit: www.stopfakes.gov/businesss-tools/country-ipr-
toolkits. The toolkits contain detailed information on protecting and enforcing IP in
specific markets and also contain contact information for local IPR offices abroad
and U.S. government officials available to assist SMEs.
• The U.S. Department of Commerce has positioned IP attachés in key markets
around the world. The IP attaché who covers Peru is: Albert Keyack (based in
Brazil) [email protected].
Due Diligence Return to top
U.S. businesses considering exporting to or investing in Peru should perform due
diligence on their potential clients, associates, or partners. As a first step, the
International Company Profile (ICP) program of the U.S. Commercial Service can
provide a background check on the reliability of potential clients or partners. The ICP
report includes information on a company’s owners, year established, size, sales,
financial information and reputation in the market. The Commercial Service and the
Economic Section of the U.S. Embassy in Peru are also available to provide commercial
and economic briefings to U.S. businesspersons traveling to Peru.
Local Professional Services Return to top
Private Banks
Banco Azteca:http://www.bancoazteca.com.pe
Banco Cencosud:http://www.bancocencosud.com.pe
Banco de Comercio:http://www.bancomercio.com.pe
Banco de Crédito:http://www.viabcp.com
Banco Falabella:http://www.bancofalabella.com.pe
Banco Financiero:http://financiero.com.pe
Banco GNB Peru:http://bancognb.com.pe
Banco Interamericano de Finanzas:http://www.bif.com.pe
Banco Internacional del Peru – Interbank:http://www.interbank.com.pe
Banco Ripley:http://www.bancoripley.com.pe
Banco Santander:http://www.santander.com.pe
BBVA Banco Continental:http://www.bbvabancocontinental.com.pe
Deutsche Bank:http://www.db.com.pe
Mibanco:http://www.mibanco.com.pe
Scotiabank:http://scotiabank.com.pe
Accounting/Business Consultants
Apoyo S.A.: economic studies, business consulting, market research, opinion surveys,
multi-customer studies, strategic communication:http://www.apoyo.com/default_eng.asp
(Bilingual)
ConsultAndes: executive advisory, business development, public relations, community
relations and public responsibility, crisis management, corporate communications,
security:http://www.consultandes.com.pe (Bilingual)
DBM: outplacement consultant and career transition services:http://www.dbmperu.com
ERM: environmental consulting services:http://www.erm.com/en/Locations/Peru
Ernst & Young: accounting, auditing and tax advisory:http://www.ey.com
KPMG Caipo y Asociados: auditing, tax and financial advisory:http://www.pe.kpmg.com
LB&C Logistics Business & Consulting: supply chain security, international trade, legal
services:http://www.lbcperu.com
Macroconsult: economic studies, business consulting, market research, infrastructure,
regulation and competition, investment banking:http://www.macroconsult.com.pe
(Bilingual)
Malaga - Webb & Asociados: business restructuring, continuous improvement, corporate
finance:http://www.malaga-webb.com
Organizacion Cuanto: economic studies, social studies, polls, market research:http://www.cuanto.org
Pricewaterhouse Coopers SCRL: auditing, accounting, tax and legal services:http://www.pwc.com
Credit Rating Agencies
Coface Peru:http://www.coface.com.pe
Dun & Bradstreet S.A.C.:http://www.dnbperu.com.pe/eng_default.asp
Informa Peru S.A.:http://www.informadelperu.com
Credit Reporting Agencies
Experian Peru:http://www.datacredito.com.pe
Infocorp/Equifax:http://www.equifax.com/home/es_pe
Sentinel:http://www.sentinelperu.com
Xchange Peru:http://www.xchange.com.pe
Executive Search
Amrop Hever:http://www.amrop.com
Boyden International:http://www.boyden.com/offices/lima
Korn/Ferry International:http://www.kornferry.com
Tasa Worldwide:http://www.tasaworldwide.com/index_en.html
Law Firms
Barreda Moller:http://www.barredamoller.com/en (Bilingual)
Barrios, Fuentes, Urquiaga Abogados:http://www.bafur.com.pe (Bilingual)
Estudio Aurelio Garcia Sayan Abogados:http://www.garciasayan.com (Bilingual)
Estudio Echecopar:http://www.echecopar.com.pe (Bilingual)
Estudio Ferrero Abogados:http://www.ferrero.com.pe
Estudio Grau Abogados:http://www.estudiograu.com (Bilingual)
Estudio Olaechea:http://www.esola.com.pe (Bilingual)
Muniz, Ramirez, Perez-Taiman & Luna Victoria Abogados:http://www.munizlaw.com
(Bilingual)
Payet, Rey, Cauvi Abogados:http://www.prc.com.pe (Bilingual)
Rey & de los Rios Abogados:http://www.reyrios.com/indexeng.htm (Bilingual)
Logistics
Maersk Sealand, ocean carrier:http://www.maerskline.com/peru (Multilingual)
Neptunia S.A.:http://www.neptunia.com.pe (Bilingual)
Ransa, logistics operator:http://www.agenciasransa.net (Spanish)
Scharff Logistica Integrada S.A.:http://www.scharff.com.pe (Bilingual)
Moving
Atlas International Service S.A.:http://www.atlasperucorp.com (Bilingual)
Express Transports S.A.:http://www.express.com.pe (Bilingual)
Security International Moving S.A.C., national and international moving:http://www.simoving.com.pe (Bilingual)
Risk-Rating Agencies
Apoyo & Asociados Internacionales S.A.C. Clasificadora de Riesgo:http://www.aai.com.pe
Clasificadora de Riesgo Pacific Credit Rating S.A.C.:http://www.ratingspcr.com
Class & Asociados S.A. Clasificadora de Riesgo:http://www.classrating.com
Equilibrium Clasificadora de Riesgo S.A.:http://www.equilibrium.com.pe
Telecommunications
Claro (Telmex Perú S.A.), telecommunications services:http://www.claro.com.pe
Movistar (Telefonica S.A.), telecommunications services:http://www.movistar.com.pe
Entel (Entel S.A.), telecommunications services:http://www.entel.pe/
Bitel (Bitel S.A.), telecommunications services:http://www.bitel.com.pe/
Web Resources Return to top
Antitrust, Unfair Competition Intellectual Property Protection, Consumer Protection,
Dumping, Standards and Elimination of Bureaucratic Barriers Agency (INDECOPI):http://www.indecopi.gob.pe (Bilingual)
Central Bank:http://www.bcrp.com.pe (Bilingual reports and statistics)
Government Procurement Supervisory Agency:http://www.osce.gob.pe (Spanish)
InPERU, non-profit organization set up by Peru’s main business organizations to
promote foreign investments to Peru:http://inperu.pe (English)
Ministry of Energy and Mines:http://www.minem.gob.pe (Spanish with limited bilingual
content)
Ministry of Foreign Affairs:http://rree.gob.pe/SitePages/home.aspx
National Interconnected System Operation (Comité de Operación Económica del
Sistema Interconectado Nacional, COES-SINAC):http://www.coes.org.pe (Spanish)
OSCE’s opinion on “government to government” procurement:http://portal.osce.gob.pe/osce/sites/default/files/Documentos/legislacion/Legislacion
y%20Documentos%20Elaborados%20por%20el%20OSCE/Opiniones-2012/078-
12%20-%20PRE%20-%20MINDEF%20-
%20Ambito%20aplic.LCE%20contrat.gob.%20a%20gob.%20ver.final.doc (Spanish)
Peru Export and Tourism Promotion Board, PromPeru:http://www.promperu.gob.pe
(Spanish)
Peru Travel, Peru Travel Information and Vacations Guide:http://www.peru.travel
Private Investment Promotion Agency – ProInversión:http://www.proinversion.gob.pe
(Bilingual)
Public Registry (SUNARP):http://www.sunarp.gob.pe (Spanish)
Securities and Exchange Supervisory Agency (SMV):http://www.smv.gob.pe (Spanish)
SUNAT – Peruvian foreign trade statistics:http://www.aduanet.gob.pe/aduanas/informae/boleindi.htm
SUNAT - Information for Foreign Investors:http://inversionistaextranjero.sunat.gob.pe
Tax and Customs National Superintendence (SUNAT):http://www.sunat.gob.pe
(Spanish)
United Nations Office for Project Service:http://www.unops.org (Bilingual)
U.S. Trade Representative (USTR):http://www.ustr.gov
Return to table of contents
Return to table of contents
Chapter 4: Leading Sectors for U.S. Export and Investment
Commercial Sectors
• Construction Equipment
• Electronic Commerce
• Food Processing & Packaging Equipment
• Industrial Chemicals
• Medical Equipment
• Mining Industry Equipment
• Plastic Resins
• Security & Safety Equipment
Agricultural Sectors
• Beef and Offal
• Biofuels (Ethanol)
• Cotton
• Dairy Products (Whey, Cheese)
• Forest Products
• Hard Wheat
• Pet Food
• Soybean Meal
• Yellow Corn
Construction Equipment
Overview Return to top
Unit: USD millions
2013 2014
2015
(estimated)
2016
(estimated)
Total Market Size 2,338 2,222 2,288.6 2,345.2
Total Local Production N/A N/A N/A N/A
Total Exports 111 98 100.9 103.5
Total Imports 2,449 2,320 2,389.6 2,449.6
Imports from the U.S. 520 565 582 601
Exchange Rate: 1 USD 2.80 2.85 3.20 3.30
Total Market Size =(Total Local Production +Total Imports) – (Total Exports)
Data Sources: Global Trade Atlas
2014 Import Market Share (percent for U.S. and major competitors): United States 20.3;
Brazil 18.2; China 14.1; J apan 10.6; Germany 5.4; South Korea 4.2.
The Peruvian construction sector has substantially upgraded itself by importing modern
construction equipment like mixers, cranes, excavators, dump trucks, and other
equipment, which led to a drastic reduction in construction times. This allowed the
construction sector to begin work on several large mines, power generation plants,
natural gas production facilities and transportation projects creating extensive growth.
Modernizing the construction industry also aided the residential and office building
boom, which increased overall infrastructure development.
Peru’s past rapid economic growth created a large infrastructure gap, which some
experts estimate surpasses USD$80 billion. The need for roads, ports, airports, water,
sewage, telecommunications, and electrical lines is apparent. The Peruvian government
has ambitious plans to bridge the infrastructure gap with massive projects that will
contribute to the majority of the growth within the construction sector. Planned
investments include the development of regional school infrastructure (USD$223.0
million), road projects in the J unín and Huallaga regions (USD$953.0 million), and
infrastructure development of Huallaga region (USD$285.0 million). Business Monitor
International estimates that the Peruvian construction sector will see a 2% real growth
with a total industry value of USD$12.7 billion in 2015. The construction sector accounts
for 5.0% of Peru’s overall GDP.
Another significant change in the construction sector is the emergence of the Peruvian
government as a partner to the private sector. In May of 2008, the government passed
the Public-Private Partnerships (PPPs) legislative decree, which aims at facilitating the
private investment promotion process through the creation, development, improvement,
operation and maintenance of public infrastructure or the provision of public services,
such as the Works for Taxes law (Obras por Impuestos). Under this initiative, a private
company or a consortium is able to fund and execute government-approved public
projects in lieu of the taxes they would have originally paid. The Works for Taxes law is a
way to leverage the efficiency of private sector, while tackling Peru’s infrastructure
needs.
Sub-Sector Best Prospects Return to top
The figures below represent each product’s share of Peru’s 2014 total imports in this
sector.
HTS Code Description %
842952 Mech Shovels Excavators Etc W 360 Degree Sprstruc 22.3
842951 Mech Front-End Shovel Loaders, Self-Propelled 15.4
843149 Parts And Attachments Nesoi For Derricks Etc. 9.2
847490 Parts Of Mach For Sorting Etc Earth Stone Ores Etc 6.1
847420 Crushing/Grinding Mach For Earth Stone Mnerl Subs 5.6
843049 Boring Or Sinking Mach Nesoi, Not Self-Propelled 5.4
843041 Boring Or Sinking Machinery, Nesoi, Self-Propelled 5.1
842959 Mech Shovels, Excavators And Shovel Loaders Nesoi 4.9
842911 Bulldozers And Angeldozers, Self-Prop, Track Lay 4.7
843139 Pts For Lifting, Hndlng, Loading/Unldng Mach Nesoi 3.8
Opportunities Return to top
Growth in the construction sector will be spurred by high demand in several areas. The
need for transportation and communications infrastructure will contribute to growth of the
construction sector, while the start/continuation of mining and energy projects and the
continued demand for housing and office facilities will further boost the market.
Peru’s housing deficit is estimated at 4 million homes and the government’s plans to
address this will contribute to the construction sector’s growth. According to government
estimates, only one third of all houses were built with a legal building permit. The
Ministry of Housing, Construction and Sanitation is attempting to formalize the housing
sector by creating affordable housing. According to a study released in April 2014 by the
government’s Fondo MiVivienda (MyHome Fund), over the next two years some
196,000 households plan to buy a home and approximately 276,000 families will
improve or expand their homes. MiVivienda will promote 219,462 housing projects by
offering favorable interest rates for 2016.
Peru’s growing construction sector provides a wide variety of investment and business
opportunities. While growth has slowed industry experts predict the sector to continue to
grow around 4% per annum for the next couple of years. The need for construction
equipment and materials will remain in demand because of ongoing and future projects.
Important projects requiring substantial capital investment include:
• Lima and Callao Metro line 2 and Av. Gambeta Branch, with an estimated
investment of USD$5.7 billion and a construction period of just over five years.
(Awarded April 2014)
• Cusco’s Chinchero International Airport with an estimated investment of USD$
658.0 million and the possibility of further expenditures on expansion. (Awarded
April 2014)
• Southern Gas Pipeline, with an estimated investment of USD$4.0 billion.
(Awarded J uly 2014)
Web Resources Return to top
Association for the Promotion of National Infrastructure - AFIN:http://www.afin.org.pe
(Spanish)
Business Monitor International - Industry Trend Analysis - Ambitious Infrastructure
Agenda To Fall Short
Fondo MiVivienda (MyHome Fund):http://www.mivivienda.com.pe/ (Spanish)
Global Trade Atlas:http://www.gtis.com/gta/
Peruvian Chamber of Construction – CAPECO:http://www.capeco.org/ (Spanish)
Private Investment Promotion Agency – ProInversión:http://www.proinversion.gob.pe/
(bilingual)
ProInversión Project Presentation - Projects portfolio 2014-2015 (April 2014, in English):http://www.proinversion.gob.pe/RepositorioAPS/1/2/J ER/PROJ ECT_PRESENTATION/p
pt%20de%20proyectos%20ingles_pptx%20.pdf
Ministry of Transportation and Communications:http://www.mtc.gob.pe/ (Spanish)
National Institute of Statistics and Informatics – INEI:http://www.inei.gob.pe/ (Spanish)
Electronic Commerce
Overview Return to top
Even though e-commerce transactions in Peru are still low, the growth in the last two
years is meaningful. The number of credit card transactions in virtual stores grew from
2.2 million in 2012 to 4.1 million in 2014, representing an 89% increase in two years.
Simultaneously, the dollar amount traded has increased 179%, growing from USD$
668.0 million in 2012 to USD$ 1.868 billion in 2014.
By the end of 2014, the number of Internet users in Peru was estimated at 12,584,000
with a market penetration rate of 38%. This figure is still well below countries like
Panama, Chile, Argentina, Mexico, Brazil, and Colombia, all of which exceed 50%
market penetration. Furthermore, access to financing barely reached 30% (in other
words, 30% of the population has at least one bank account), which is below the
regional average of 50%.
However, internet access is expected to grow in the future through the deployment of
cellular phones and broadband networks. In 2014, the mobile market expanded to 31.9
million lines, representing a high national density of 107% (more lines than population).
In addition, the project of the “Red Dorsal de Fibra Optica” (Fiber optic network) is
currently in execution. This project aims to reduce the cost of Internet access and is
scheduled to begin operations in mid-2016.
Sub-Sector Best Prospects Return to top
Peruvian users spend 18.2 hours per month on the Internet, the second highest average
in Latin America and surpassed only by Argentina. The vast majority of Internet users
are men between the ages of 15-24 who account for 56% of total internet users. A
Peruvian newspaper, El Comercio, reported that 19 million Peruvians will be able to
access the Internet in 2019. Regarding the Business to Consumer (B2C) market,
Peruvian consumers account for 7% of total online purchases and 2% (USD$ 1.250
billion) of the total Latin American market of online purchases. This is largely explained
by the low penetration rates, lack of confidence in online security, lack of financial
means, and lack of education.
Out of Peru’s 200 top private companies only 72% conducted electronic transactions
through their own website or through a third party. On the regulatory side, SUNAT
(Peru’s tax authority) uses electronic means to exercise the detailed control of tax
collection. Therefore, SUNAT has issued a regulation to establish the electronic invoice,
“norma de la Factura Electronica” (Resolution No. 188-2010-SUNAT). However, in Peru
there is no comprehensive state policy to promote the widespread growth of ICT
including e-commerce, as in other countries.
In the case of B2B, businesses are beginning to use their own custom email domain
servers instead of using an informal personal email address (like Hotmail or Gmail) to
conduct business. The new trend of owning your own email domain allows Peruvian
businesses to legitimize their companies and is becoming standard amongst Peruvian
companies.
Since 2012, the Lima Chamber of Commerce of Lima has promoted Cyber Monday,
which takes place on the Monday following the U.S. holiday “Thanksgiving.” Cyber
Monday usually occurs in late November or early December. Also since 2014, the Lima
Chamber promotes CyberMami which was held on April 29 and 30 in 2015 right before
the Peruvian mother’s day holiday, which is traditionally held the second Sunday of May.
Some companies, like the Saga Falabella department store, have also launched their
own seasonal offers like Madrugo, which takes place when a new season arrives.
Opportunities Return to top
The Lima Chamber of Commerce predicts that in 2015 there will be a 50% increase in e-
commerce sales. This favorable outlook is due to the expected number of sales related
to food and entertainment industries. Lima continues to be the country’s main economic
hub, and other cities like Cusco, Trujillo, and Chiclayo are starting to make a positive
economic impact.
A 2014 survey showed that 75% of the population owned a cellphone, with 16% being
smartphone users. In addition, smartphones accounted for 49% (6.7 million units) of
mobile equipment sold nationwide. The growth of smartphone users allows for better
access to internet, which allows users to make purchases via mobile applications. It is
estimated that food products, apparel, and utility bills (home phones) are the payments
most conducted via mobile applications by consumers.
Web Resources Return to top
Peruvian Chamber of Electronic Commerce (CAPECE)http://www.capece.org.pe
(Spanish only)
Lima Chamber of Commerce (CCL)http://www.camaralima.org.pe (Spanish only)
Peruvian Banks Association (ASBANC)http://www.asbanc.pe/contenidoweb/Default.aspx?ref=8&cont=83 (Spanish only)
Food Processing & Packaging Equipment
Overview Return to top
Unit: USD millions
2013
2014
2015
(estimated)
2016
(estimated)
Total Market Size 359.3 438.1 451.2 462.5
Total Local Production N/A N/A N/A
Total Exports 16.6 15.8 16.3 16.7
Total Imports 375.9 453.9 467.5 479.2
Imports from the U.S. 55.4 111.9 115.3 118.2
Exchange Rate: 1 USD 2.80 2.85 3.20 3.30
Total Market Size =(Total Local Production +Total Imports) – (Total Exports)
Data Sources: Global Trade Atlas
2014 Import Market Share (percent for U.S. and major competitors): United States 24.7;
Germany 22.0; Italy 14.9; China 7.2; Spain 4.2; Belgium 4.2; Brazil 3.4.
The ever-growing reputation of Peru’s culinary culture has brought about a marked
increase in locally produced packaged and non-perishable foods. This new trend is
expanding the use of native Peruvian ingredients, such as fruits, peppers and Andean
cereals, which increases the attraction and marketability of products for a variety of
reasons. Consumers are slowly shifting towards packaged and prepared foods because
of the items’ decreased risk of contamination and increased lifespan. Peru’s growing
middle class is now willing to pay slightly higher prices for peace of mind. Products such
as cheese, oils, fats, spreads, and baked goods are benefiting from the shift in
consumers’ preferences.
Sub-Sector Best Prospects Return to top
The figures below represent each product’s share of Peru’s 2014 total imports in this
sector.
HTS Code Description %
843830 Machinery For Sugar Manufacture
44.36
842129 Filter/Purify Machine & Apparatus For Liquid Nesoi
11.98
841950 Heat Exchange Units, Industrial Type
7.96
841869 Refrigerating/Freezing Equipment, Nesoi
7.29
841989 Machine Etc For Mat'L Treatment By Temp Cont Nesoi
5.95
841940 Distilling Or Rectifying Plant
4.44
842230 Machinery For Filling, Closing Bottles, Etc
2.77
842290 Parts For Machines For Dishwashing, Packing, Etc
2.12
842240 Packing Or Wrapping Machinery, Nesoi
2.06
841981 Machinery Etc For Making Hot Drinks Cooking Heatng
1.51
Best prospects include fully integrated high technology equipment and machinery for
processing and packaging purposes. This includes machinery for sugar manufacture;
machinery for filling, closing, sealing, and labeling bottles, cans, bags or other
containers; machinery for encapsulating bottles, jars, tubes and similar containers;
machinery for aerating beverages; dairy machinery, heat exchange units; other packing
or wrapping machinery. Peruvians prefer U.S. technologies for closing, sealing labeling
equipment, and rigid containers
Opportunities Return to top
EXPOALIMENTARIA PERU 2015 – International tradeshow of goods and services
related to the food and beverages industry.
August 26 to 28, 2015 – J ockey Exhibitions Center, Lima
http://www.expoalimentariaperu.com/en/
Web Resources Return to top
Global Trade Atlas:http://www.gtis.com/gta/
Ministry of Production (Industry & Fisheries):http://www.produce.gob.pe (Spanish)
National Society of Industries:http://www.sni.org.pe/ (Spanish)
Industrial Chemicals
Overview Return to top
Unit: USD millions
2013 2014
2015
(estimated)
2016
(estimated)
Total Market Size 937.8 958.5 838.0 1,021.8
Total Local Production N/A N/A N/A N/A
Total Exports 424.3 408.7 434.1 328.1
Total Imports 1,362.1 1,337.2 1,272.1 1,338.1
Imports from the U.S. 368.0 359.0 308.56 316.3
Exchange Rate: 1 USD 2.80 2.85 3.20 3.30
Total Market Size =(Total Local Production +Total Imports) – (Total Exports)
Data Source: Global Trade Atlas
2014 Import Market Share (percent for U.S. and major competitors): United States 24.6;
China 20.2; South Korea 8.5; Mexico 5.4; Brazil 4.8; Germany 4.7; Chile 4.1; India 3.4.
Peru has consistently depended on industrial chemical imports, owing to an increase in
public and private investment in infrastructure development. The local demand for
industrial chemicals is exceeding what can be produced locally, which is limited to
acetylene, sulfuric acid, nitrogen, and oxygen. Plastics in primary forms such as
polyethylene, polystyrene, polypropylene are imported from abroad.
Main U.S. exports to Peru are nitrile-function compounds, mixed alkybenzenes,
saturated acyclic nonocarbox acid and anhydrous, halogon, coloring matter and
carbonates. Industrial chemicals are an essential part in the following industries: textiles,
cosmetics, plastics, paints, paper, detergents, and pharmaceuticals.
Sub-Sector Best Prospects Return to top
The figures below represent each product’s share of Peru’s 2014 total imports in this
sector.
HTS Code Description %
2837 Cyanides, Cyanide Oxides And Complex Cyanides 6.33
3204 Syn Org Coloring Matter & Prep; Syn Org Brit Agent 5.76
3402 Organic Surf-Act Agents, Preps & Cleaning Preps 5.48
2926 Nitrile-Function Compounds 4.65
3817 Mixed Alkylbenzenes & Mixed Alklnaphthalenes, Nes 4.24
2835 Phosphinates, Phosphonates, Phosphates & Polyphosp 3.83
3206 Coloring Matter Nesoi; Coloring Prep Nesoi, Etc. 3.66
3506 Prepared Glues & Adhesives Nesoi; Glue Retail Pack 3.64
2915 Sat Acyclic Nonocarbox Acid & Anhyd, Halogon Etc 3.52
2905 Acyclic Alcohols & Halogenat, Sulfonatd Etc Derivs 3.48
Opportunities Return to top
Peru’s decade-long strong economic performance in the construction and mining sectors
continues to increase demand for a variety of industrial chemicals. U.S. exporters would
be smart to identify local representatives that can help them seize the opportunities of
the increased demand.
Web Resources Return to top
Global Trade Atlas:http://www.gtis.com/gta/
Manufacturer’s Society – Chemical Industry Committee:http://comitedelaindustriaquimica-sni.com/l/ (Spanish)
National Institute of Statistics and Informatics – INEI:http://www.inei.gob.pe/ (Spanish)
Private Investment Promotion Agency – ProInversión:http://www.proinversion.gob.pe/
(bilingual)
Medical Equipment
Overview Return to top
Unit: USD millions
2013
2014
2015
(estimated)
2016
(estimated)
Total Market Size 330.1 312.1 321.5 329.5
Total Local Production N/A N/A N/A N/A
Total Exports 9.7 10.8 11.1 11.4
Total Imports 339.8 322.9 332.6 340.9
Imports from the U.S. 76.8 69.0 71.1 72.9
Exchange Rate: 1 USD 2.80 2.76 3.20 3.30
Total Market Size =(Total Local Production +Total Imports) – (Total Exports)
Data Sources: Global Trade Atlas
2015 Import Market Share (percent for U.S. and major competitors): United States 21.4;
China 17.8 Germany 13.5; J apan 7.2; South Korea 4.7; Brazil 3.5.
The Peruvian healthcare sector is composed of public sector entities such as Seguro
Integral de Salud (government health insurance), Ministry of Health, EsSalud (social
security), and military hospitals. The private healthcare sector is primarily composed of
civil society organizations and insurance companies known as Entidades Prestadores de
Salud (EPS) that have expanded their services to include the administration of private
clinics and emergency centers in order to reduce their operating costs. A recent study
shows that approximately 67% of the population has some type of health insurance, and
Peruvians are becoming more conscious of their healthcare and the costs associated
with maintaining it.
Peru is the eighth most populous country in the region with an average life expectancy of
75 years. According to the World Bank, Peru’s annual health care expenditures in 2013
were 5.1% of the GDP, which points towards a promising future for the Peruvian
healthcare sector. In J uly 2014, President Humala announced a USD$2.6 billion
investment plan over the next two years (2015-2016) to build and improve a variety of
infrastructure projects, including upgrading and equipping several hospitals and
healthcare centers with new equipment. Another initiative is the Works for Taxes law
(Obras por Impuestos), which allows a private company or a consortium to fund and
execute government approved public projects in lieu of the taxes they would have
originally owed. The Works for Taxes law is a way to tackle Peru’s infrastructure
development with the quicker and more efficient response time that the private sector
can offer.
The purchasing of medical equipment and devices is regulated under the Ministry of
Health through the Direccion General de Medicamentos, Drogas e Insumos (DIGEMID).
Under current regulations, the importation of preowned medical equipment is limited to
individual physicians for their own personal use.
To become a medical equipment supplier, Peruvian law requires the local representative
to register with the Peruvian Sanitary Registry, which is the list of government approved
medical equipment and devices suppliers.
Sub-Sector Best Prospects Return to top
The figures below represent each product’s share of Peru’s 2014 total imports in this
sector.
HTS Code Description %
901890 Instrument and appliances for medical, surgical, dental
22.42
901839 Needles, caterers and others
8.42
902139 Artificial J oints, parts and accessories
7.34
901850 Other ophthalmic instruments and appliances, parts
6.6
902214 Apparatus base on X-ray, medical, surgical, veterinary
5.23
901819 Electro-diagnostic apparatus and parts.
4.55
902131 Other artificial joints and parts and accessories thereof
4.27
300510 0Adhesive dressings and other articles having adhesive
3.77
902110 Orthopedic or fracture appliances, parts and accessories
3.44
901920 Ozone, oxygen, therapy, respiration apparatus and parts
3.42
Best prospects include diagnostic imaging equipment as the country invests in its
radiology infrastructure. Other prospects are emergency room equipment and products,
orthopedics, patient aids, and dental products.
Opportunities Return to top
Peru’s rising middle class and growth in disposable income is fueling the demand for
improved healthcare services in and around Lima. Peruvians are spending more money
on quality elderly care and treatment for cancer, cardiovascular diseases, and diabetes.
Approximately 6.5% (2 million) of Peru’s total population are 65 years old or older.
The government's forward approach on prioritizing and enhancing the country's
healthcare system will yield opportunities for foreign medical equipment and device
suppliers. The government announced it would invest in the health sector with plans
including the construction of ten hospitals, 200 healthcare centers, blood banks, and a
telemedicine system.
Peru’s local healthcare-related manufacturing is limited to consumables, basic electro
diagnostics and hospital furniture, which explains Peru’s low export volumes. Regional
governments and private companies look towards foreign medical equipment and device
suppliers to fulfill the demand. This market trend creates vast opportunities for U.S.
businesses that specialize in state of the art equipment such as computed tomography
(CT) scanners, robotic radiosurgery system, and gamma knives.
Key Industry Events
Tecnosalud 2015 – International tradeshow of goods and services related to the
healthcare sector
September 9-11, 2015, J ockey Exhibition Center, Limahttp://www.tecnosalud.com.pe
Web Resources Return to top
BMI-https://bmo.bmiresearch.com/article/view?article=1054839&iso=PE&active_pillar=Daily Views
The Report – Peru 2015 by the Oxford Business Group
ProInversion - www.proinversion.gob.pe
DIGEMID - www.minsa.digemid.gob.pe
Mining Industry Equipment
Overview Return to top
Unit: USD millions
2013 2014
2015
(estimated)
2016
(estimated)
Total Market Size 3,029.9 2,621.5 1,911.0 1,958.8
Total Local Production N/A N/A N/A N/A
Total Exports 172.7 192.6 215.7 221.1
Total Imports 3,202.6 2,814.1 2,126.7 2179.9
Imports from the U.S. 1,053.6 867.2 862.0 883.6
Exchange Rate: 1 USD 2.80 2.85 3.20 3.30
Total Market Size =(Total Local Production +Total Imports) – (Total Exports)
Data Sources: Global Trade Atlas
2014 Import Market Share (percent for U.S. and major competitors): United States 30.8;
Brazil 11.4; Germany 10.9; China 10.8; J apan 5.0; Mexico 4.5; United Kingdom 2.8;
Chile 2.5.
The mining industry has always been an essential part of the history and development of
Peru and continues to play an important role in the Peruvian economy. The mining
sector accounts for 52% of total exports making it Peru’s top export sector. Much of this
growth is driven by 54 Greenfield and expansion projects with a total investment value of
USD$45.0 billion, accounting for most of the country’s private investment.
In recent years, the mining industry has had to overcome many challenges, such as the
negative press associated with increased illegal gold mining operations destroying the
Amazon, causing the industry to become unfavorable in the public eye. As a result,
regions like Piura, Cajamarca, Arequipa, Cuzco, Moquegua, and Puno experienced
social conflicts and mass demonstrations. In some cases, protestors were motivated by
legitimate fears of environmental degradation while others were motivated by false
information. However, progress has been made to create peace amongst the local
people by both the public and private sectors investing in community development and
relations. The Peruvian government has been working to expand major anti-poverty
initiatives bringing social programs to isolated poor communities that overlap mineral-
rich land.
Sub-Sector Best Prospects Return to top
The figures below represent each product’s share of Peru’s 2014 total imports in this
sector.
HTS Code Description %
847490 Parts Of Mach For Sorting Etc Earth Stone Ores Etc 12.0
842952 Mech Shovels Excavators Etc W 360 Degree Sprstruc 11.3
870423 Truck, Diesel Eng, Gvw >20 Metric Tons 7.8
870410 Dumpers Designed For Off-Highway Use 5.4
842951 Mech Front-End Shovel Loaders, Self-Propelled 5.4
843149 Parts And Attachments Nesoi For Derricks Etc. 4.0
392690 Articles Of Plastics, Nesoi 3.8
841480 Air/Gas Pumps, Compressors And Fans Etc, Nesoi 3.7
842959 Mech Shovels, Excavators And Shovel Loaders Nesoi 3.0
843041 Boring Or Sinking Machinery, Nesoi, Self-Propelled 2.9
842911 Bulldozers And Angeldozers, Self-Prop, Track Lay 2.8
When selling mining equipment to Peru it is important to offer post-sale services. Mining
companies require assembly, maintenance, parts, and operational training.
Peru is ranked amongst the world’s top producers of silver, copper, tin, and zinc thanks
to the country’s abundance in natural resources and a steady flow of private
investments. Currently, 15% of the territory is designated to mining concessions with
less than 2% under mining exploration or production. As of 2014, copper (42.4%) and
gold (33.9%) represent the most profitable of the mining exports.
Opportunities Return to top
Peru is an attractive destination for mining investments due to its large mineral and
metal reserves with major undiscovered deposits. The nation’s legal framework is
designed to attract private investment due to the availability of cadastral and geological
information and the country’s economic stability, which explains the presence of
investors from the U.S., Canada, UK, Australia, Mexico, Brazil, and China. Investments
in the sector have grown exponentially since 1992, reaching a record high of USD$9.7
billion in 2013.
Local officials predict Peru’s mining sector will attract USD$43.9 billion in investments
starting in 2014, a trend that will continue for the next five to ten years. The breakdown
of the estimated expenditures include: expansion (USD$8.8 billion), Environmental
Impact Assessments (USD$21.0 billion) evaluation and construction (USD$2.1 billion),
and exploration (USD$24.1 billion).
Key Industry Events
Peruvian Mining Convention and Trade Show: Perumin, September 21-25, 2015,
Arequipa. Held every two years, this is the most important industry event in Peru.http://www.convencionminera.com/perumin32/
U.S. Pavilion organizer: Kallman Worldwide, Inc.:http://www.kallman.com/exhibitor-zone/forms.php?tradeshowID=182
MINPRO - V Meeting of Miners and Suppliers, November 25-26, 2015, Lima
Grupo DIGAMMA - Rumbo Minerohttp://minproperu.com/index.html
Web Resources Return to top
Global Trade Atlas:http://www.gtis.com/gta/
Ministry of Energy and Mines:http://www.minem.gob.pe/ (limited English content)
Ministry of the Environment:http://www.minam.gob.pe (Spanish)
Ministry of Production:http://www.www.produce.gob.pe/ (Spanish)
National Institute of Statistics and Informatics – INEI:http://www.inei.gob.pe / (Spanish)
National Mining, Petroleum, and Energy Society:http://www.snmpe.org.pe/ (Spanish)
Private Investment Promotion Agency – ProInversión:http://www.proinversion.gob.pe/
(Bilingual)
Environmental Assessment and Control Agency – OEFA:http://www.oefa.gob.pe
(Spanish)
Energy and Mining Regulatory Agency - Osinergmin:http://www.osinergmin.gob.pe
(Spanish)
Plastic Resins
Overview Return to top
Unit: USD millions
2013 2014
2015
(estimated)
2016
(estimated)
Total Market Size 1,423.5 1,454.5 1,380.0 1,414.5
Total Local Production N/A N/A N/A N/A
Total Exports 312.5 372.6 352.1 360.9
Total Imports 1,736.2 1,827.2 1,732.1 1775.40
Imports from the U.S. 486.3 466.2 451.2 462.5
Exchange Rate: 1 USD 2.80 2.85 3.20 3.30
Total Market Size =(Total Local Production +Total Imports) – (Total Exports)
Data Source: Global Trade Atlas
2014 Import Market Share (percent for U.S. and major competitors): United States
25.52; China 12.6; South Korea 9.9; Brazil 8.9; Saudi Arabia 8.5; Colombia 6.1; Taiwan
5.8; Mexico 3.8.
Peru does not have a domestic petrochemical industry; therefore, it relies on imported
resins to support the recent surge in domestic manufacturers of pipes, bags, bottles,
home and office articles, flexible packaging, containers, and toys. Plastic production has
grown 5% in recent years. The industry’s continued success is dependent on a steady
stream of imported resins from foreign suppliers. The agro-export, food and beverages,
textile, leather products, footwear, and chemical sectors rely on imported resins to
continue to increase production and meet the local demand for finished plastic products.
Sub-Sector Best Prospects Return to top
The figures below represent each product’s share of Peru’s 2014 total imports in this
sector.
HTS Code Description %
3901 Polymers Of Ethylene, In Primary Forms 26.1
3902 Polymers Of Propylene Or Other Olefins, Prim Forms 22.9
3907 Polyethers, Expoxides & Polyesters, Primary Forms 13.7
3904 Polymers Of Vinyl Chloride Etc., In Primary Forms 9.5
3920 Plates, Sheets, Film Etc No Ad, Non-Cel Etc, Plast 5.9
3906 Acrylic Polymers In Primary Forms 4.5
3921 Self-Adhesive Plates, Sheets, Film Etc Of Plastics 3.8
3903 Polymers Of Styrene, In Primary Forms 3.6
3919 Polymers Of Vinyl Acetate & Oth Vinyl Polym, Pr Fm 3.6
3909 Amino-Resins, Phenolics & Polyurethanes, Prim Form 1.9
The main sources of consumption and investments of plastic materials are from the
following industries: packaging, beverages (bottles and containers), construction, food,
home and office operations. Local demand continues to be attractive since consumption
and investments continue to grow at promising rates.
Opportunities Return to top
The U.S. is the main supplier of PVC resins for Peru, which are a key element in the
production of PVC pipes. The demand for PVC resins is driven by the increase in use of
PVC pipes in the local construction industry.
Web Resources Return to top
Global Trade Atlas:http://www.gtis.com/gta/
Manufacturer’s Society – SNI; “Institute of Economic and Social Studies” Sector Report
2014:http://www.sni.org.pe/wp-content/uploads/2014/03/RE_Industria_Plasticos_Feb2014.pdf
(Spanish)
National Institute of Statistics and Informatics – INEI:http://www.inei.gob.pe/ (Spanish)
Security & Safety Equipment
Overview Return to top
Unit: USD millions
2013 2014
2015
(estimated)
2016
(estimated)
Total Market Size 269.7 281.5 296.0 303.4
Total Local Production N/A N/A N/A N/A
Total Exports 32.0 30.6 28.1 28.8
Total Imports 299.7 312.1 324.1 332.2
Imports from the U.S. 68.1 70.4 67.4 69.1
Exchange Rate: 1 USD 2.80 2.85 3.20 3.30
Total Market Size =(Total Local Production +Total Imports) – (Total Exports)
Data Sources: Global Trade Atlas
2014 Import Market Share (percent for U.S. and major competitors): China 36.8; United
States 22.6; Germany 4.3; Mexico 4.0; Brazil Taiwan 3.8; Spain 3.2; Italy 2.4.
Demand for residential, industrial and office security equipment remains strong in Peru.
Public opinion polls in Lima and other large Peruvian cities consistently find that
inhabitants have a high sense of insecurity, with many people having been a victim of
robberies or home break-ins.
Companies (headquarters and operation sites), government agencies, and households
continuously invest in a wide range of security equipment designed to prevent break-ins
and to aid security guards. Such instruments include surveillance cameras, alarms,
lights, mesh netting, and barbed wire.
Pistols and revolvers are the most common self-defense weapons used in Peru. The
Ministry of Interior’s National Superintendence of Control of Security Services and
Weapons, Ammunition and Explosives for Civilian Use (SUCAMEC) are in charge of
regulating and enforcing applicable legislation, including issuing licenses to carry
weapons.
In February 1997, the National Society of Mining, Petroleum and Energy (SNMPE)
created an organization called SARCC. The objective of this organization is to support
and coordinate security activities among its corporate members in the mining and energy
sectors. SARCC provides emergency training resources and assist with emergency
situations that threaten the safety of their corporate member’s employees who are
working in remote areas by providing services such as search and rescue operations,
medical evacuation, etc.
Sub-Sector Best Prospects Return to top
The figures below represent each product’s share of Peru’s 2014 total imports in this
sector.
HTS Code Description %
392690 Articles Of Plastics, Nesoi 34.5
630790 Made-Up Textile Articles, Nesoi 6.6
902000 Breathing Appliances & Gas Masks Nesoi; Parts Etc 5.7
830140 Locks Except Motor Vehicle Or Furniture, Base Metl 5.1
853110 Burglar Or Fire Alarms And Similar Apparatus 3.3
842489 Mechanical Appliance For Projecting Liquids Nesoi 3.2
853190 Parts Of Electric Sound Or Visual Signaling Aprts 2.8
842410 Fire Extinguishers, Whether Or Not Charged 2.2
650610 Safety (Incl Sports) Hdgr,Whether/Not Lined/Trimmed 2.2
730830 Drs, Wndws A Frms A Thrshlds Fr Drs, Iron Or Steel 3.6
Peruvian companies and organizations are beginning to develop strategies and
procedures to protect critical information in the event of natural disaster or cyberattacks.
Peruvian companies invest a large percentage of their budgets in physical security
services and technologies, yet little is spent in cybersecurity.
Opportunities Return to top
Companies and homeowners are demanding security equipment making the security
and safety equipment sector in Peru very promising for U.S. exporters. Companies and
private citizens continuously seek preventative equipment such as alarms, surveillance
cameras, and lights. Steady growth in residential and corporate construction indicates
that these products will continue to be in high demand.
Seguritec Peru – International trade show
May 26-28, 2016http://www.thaiscorp.com/seguritec
Web Resources Return to top
Global Trade Atlas:http://www.gtis.com/gta/
Ministry of the Interior:http://www.mininter.gob.pe/
National Security Association:http://sociedadnacionaldeseguridad.org/
Agricultural Sectors Return to top
Product Statistics & Data (PS&D) Code: Hard Wheat (1000 MT—not US$)
2012 2013 2014
Total Market Size 1,927 2,038 1,879
Total Local Production 230 233 240
Total Exports 0 0 0
Total Imports 1,697 1,805 1,879
Total Imports from U.S. 246 648 351
Comments: Peru produces about 240,000 metric tons (MT) of soft wheat annually, which
is used locally for traditional foods, and is not sold into processing channels. Most wheat
is processed into flour for bread and pasta. The U.S. market share in 2014 was 19
percent. Other important suppliers are Argentina and Canada. Wheat imports into Peru
are duty-free. An 18% value-added tax remains in place.
Product Statistics & Data (PS&D) Code: Cotton (1000 MT)
2012 2013 2014
Total Market Size 85 90 94
Total Local Production 38 32 35
Total Exports 2 0 1
Total Imports 49 58 60
Total Imports from U.S. 48 57 57
Comments: Peruvian textile and apparel exports are undergoing a severe crisis due to
competition from other origins such as Vietnam. Exports are expected at US$2 billion in
2015. The U.S.-Peru Trade Promotion Agreement (PTPA) grants duty-free access to
Peruvian textiles.
Product Statistics & Data (PS&D) Code: Yellow Corn (1000 MT)
2012 2013 2014
Total Market Size 3,163 3,386 3,558
Total Local Production 1,324 1,365 1,225
Total Exports 0 0 0
Total Imports 1, 839 2,021 2,333
Total Imports from U.S. 1 220 1,699
Comments: Peru imports corn from Argentina and the United States. Corn from all
origins is imported into Peru duty-free. However, due to the PTPA, Peru cannot assess
the price band levy within our tariff-rate-quota (TRQ) U.S. corn. Yellow corn in Peru is
used mainly for poultry production. At about 42 kilograms per capita, the consumption
rate of poultry is one of the highest in the region. Another good export prospect is Dried
Distillers Grain.
Product Statistics & Data (PS&D) Code: Soybean Meal (1000 MT)
2012 2013 2014
Total Market Size 1,055 1,022 1,100
Total Local Production 0 0 0
Total Exports 0 0 0
Total Imports 1,055 1,022 1,100
Total Imports from U.S. 80 37 12
Comments: Peru imports soybean meal primarily for poultry feed. Bolivia was the
leading soybean meal exporter to Peru in calendar year (CY) 2014 with a 68% market
share. Soybean meal from all origins enters Peru duty-free.
Dairy Products
Whey (MT)
2012 2013 2014
Total Market Size 8,566 9,418 9,063
Total Local Production 0 0 0
Total Exports 0 0 0
Total Imports 8,566 9,418 9,063
Total Imports from U.S. 2,013 3,822 1,727
Comments: Total whey imports into Peru slightly decreased (3.8 percent) in 2014,
mainly driven by price advantage of substitute products. Imports from the United States
decreased 55 percent compared to 2013 due to better prices from other competitors as
Chile and Poland. The U.S. imports market share dropped to second position accounting
for 19 percent of total imports in 2014.
Cheese (MT)
2012 2013 2014
Total Market Size 30,446 33,085 35,898
Total Local Production 26,790 28,613 31,516
Total Exports 38 50 12
Total Imports 3,694 4,522 4,394
Total Imports from U.S. 2,130 2,375 2,416
Comments: In 2014, imports from the United States accounted for 55 percent of the
market. Argentina and Netherlands account for 24 and 5 percent, respectively, of Peru’s
cheese imports. The food processing and food service industries are two main
destinations for this product. The PTPA provides a TRQ of 2,500 MT with a 12 percent
increase per year. Currently the quota is 4,935 MT.
Beef and Offal (MT)
2012 2013 2014
Total Market Size 248,717 250,872 253,208
Total Local Production 229,785 231,299 235,450
Total Exports 74 47 260
Total Imports 19,006 19,620 18,018
Total Imports from U.S. 5,609 8,082 5,541
Comments: Peru´s beef and offal market size slightly increased 1 percent in 2014 with
respect to previous year. An increment of local production supported the market growth.
Nevertheless, U.S. beef and offal imports posted a 31 percent decrease during the same
period. Higher prices forced importers to reduce orders, especially on the offal side. The
U.S. Meat Export Federation has been actively involved in promotional activities within
the region. Peru’s stellar economic performance in years has been instrumental in
driving consumer preferences towards high-quality products.
Pet Food (MT)
2012 2013 2014
Total Market Size 40,336 44,722 49,310
Total Local Production 31,284 33,493
35,500
Total Exports 5,672 5,268 2,434
Total Imports 14,724 16,497 16,244
Total Imports from U.S.
2,972 3,260 3,008
Comments: An emerging middle-class, growing incomes and increasing urbanization all
drive growth of Peruvian household pet owners. Four companies dominate the pet food
sector, leading the category in order of appearance: RintiSA, Nestlé, Molitalia and
Mars. Veterinary clinics and pet shops are important channels for premium, therapeutic
and wet products that register interesting growing rates. In 2014, Argentina (51%),
United States (22%) and Colombia (15%) dominated Peru’s imported pet food market.
Forest Products (US$ Millions)
2012 2013 2014
Total Exports 160 154 165
Total Imports 193 238 264
Total Imports from U.S. 24 17 20
Comments: Mining projects slowing down and construction sector keeping its
performance are driving the forest product market sustained growth. Peruvian imports
are focused on coniferous - softwoods and engineered woods for furniture and structural
purposes. We foresee and opportunity for poles, softwood lumber, OSB and engineered
wood. In 2014, Chile (45%), Ecuador (39%), China (11%) and United States (8%)
dominated Peru’s imported forest products market.
Biofuel (Ethanol) (Liters-Millions)
2012 2013 2014
Total Market Size
Total Local Production
223.7
235
217.5
240
165.4
245
Total Exports 126 148 143
Comments: Ethanol production for calendar year (CY) 2016 is forecast at 160 million
liters, a 33% reduction from our CY 2015 estimate. This sharp decrease is attributable to
the decommissioning of the Maple plant. We forecast domestic ethanol consumption at
172 million liters in CY 2016, up 7 million liters compared to our 2015 estimate. Peru is
currently mandating a 7.8% ethanol blend rate with gasoline. We foresee Peruvian CY
2016 ethanol exports at about 69 million liters, a significant reduction from the 156
million liters estimated for 2015, up by 5 million liters or over 3% compared to our CY
2015 estimate of 160 million liters. Ethanol imports in 2016 are forecast at 80 million
liters.
Return to table of contents
Total Imports 114.7 125.5 63.4
Total Imports from U.S. 114.7 113.0 57.1
Return to table of contents
Chapter 5: Trade Regulations, Customs and Standards
• Import Tariffs
• Trade Barriers
• Import Requirements and Documentation
• U.S. Export Controls
• Temporary Entry
• Labeling and Marking Requirements
• Prohibited and Restricted Imports
• Customs Regulations and Contact Information
• Standards
• Trade Agreements
• Web Resources
Import Tariffs Return to top
The entering into force of the Peru Trade Promotion Agreement eliminated duties on
80% of qualifying capital goods since February 1, 2009. The remaining dutiable items
have a phase out schedule from 6 to 17 years. Peru imposes no duties on 56% of the
items in its tariff schedule (4,224 codes covering some agricultural and intermediate
goods, capital goods not produced locally, drip irrigation systems, some vehicles, books,
some information technology items, cement, liquefied petroleum gas, some fuels, energy
saving bulbs, and bank notes); 6% duties on 34% of the items (2,538 codes mainly
regarding consumer goods and some intermediate goods); and 11% duties on 10% of
the items (792 codes including rice, sugar, vegetables, dairy products, beef and beef
products, chocolate, textiles, apparel, footwear, and other agricultural products). The
non-weighted average tariff is 3.2% (including surcharge), down from over 60% in the
mid-1990s.
Most imports (93% of codes) are also subject to an 18% value added tax (VAT), as are
domestically produced goods. In addition, an excise tax (ISC) is applied to certain
products such as tobacco and alcoholic beverages. There are no quantitative import
restrictions.
Trade Barriers Return to top
In March 1991, Peru introduced an import surcharge on a number of basic agricultural
commodities; rice, corn, sugar and dairy products are still subject to potential
surcharges. The government argues that the surcharges are necessary to offset
exporting countries’ subsidies. The surcharges were calculated on a weekly basis,
according to prevailing international prices for each commodity. The government
however began reducing the surcharges in increments in April 1994. In J uly 2001 this
system was replaced by a "price band system" similar to that of the Andean Community.
Thanks to the PTPA, U.S. agricultural goods are no longer subject to this price band
system. Due to decreasing international prices, the surcharge on agricultural imports to
Peru under the price band system is currently in effect for non U.S. exporters. This
situation benefits U.S.-origin agricultural exports, providing American exporters with an
advantage over international competitors in the Peruvian market.
The Peruvian tax and customs agency, Superintendencia Nacional de Administracion
Tributaria (SUNAT), implemented in recent years new systems for collecting taxes (VAT
and income) in advance as a means to assure tax collection throughout the distribution
channel and to increase revenues. This system may not cause much trouble to some
sectors but others are being hurt because their margins are smaller than the advanced
payments.
Import Requirements and Documentation Return to top
For imports, Customs (SUNAT) requires a Customs Merchandise Declaration (DAM – in
Spanish), a commercial invoice, an airway bill or bill of lading, a packing list, and an
insurance letter. If the product is imported from other Andean Community members
(Colombia, Ecuador and Bolivia), a certificate of origin is required to qualify for tariff
preferences. Several imports are subject to antidumping and countervailing duties. The
list of products and countries is available at www.aladi.org. A certificate of origin is
required for these products coming from other countries to avoid these duties. U.S. firms
have experienced delays clearing products through Customs as a result of this
requirement.
A food sanitary registry is required for processed food products (issued by DIGESA’s
Food and Environmental Health Bureau or a Sanitary Certificate for animal, plants, or
their by-products issued by SENASA).
Goods can be brought into the country and kept in a bonded warehouse without paying
import duties for up to twelve months. During that period the importer can pay the duties
on the goods kept in the warehouse and clear customs, or re-export them. This can be
done for the entire shipment or it can be broken down according to the importer’s needs.
Sanitary and Phytosanitary Regulations are drafted, implemented and enforced by
SENASA. U.S. exporters are encouraged to request from SENASA an updated list of
SPS requirements through the importer before shipping products to Peru.
For food and beverages, the importer must submit a sworn application to DIGESA
accompanied by a Certificate of Free Trade and Use issued by the health authority of
the country of origin, the future label, and the registration receipt. If the certificate is not
available, the importer should present a document issued by the Peruvian Consulate in
the country of origin. The sworn application includes the contact information of the
importer’s company and the manufacturer, taxpayer’s identification (RUC), the list of
products requested and for each product its content, the results of physical-chemical and
microbiological analysis, lot code system, expiration date, packaging material, and
storage conditions.
For imports of pharmaceuticals, cosmetics, biological and bio-chemical preparations as
well as medical equipment and devices, a prior registration from the Direccion General
de Medicamentos y Drogas-DIGEMID of the Ministry of Health is required. This sanitary
registry must be obtained before exporting the products to Peru. This procedure could
take between six months to one year and must be performed by the local distributor or
representative registered with DIGEMID. Imported products will appear under the name
of the local registered company who fulfill the registration process as the representative
of the U.S. company. Sanitary registrations must be renewed every five years. For more
information contact: DIGEMID www.digemid.minsa.gob.pe
Business travelers who bring along a rather big quantity of samples; brochures; gifts
(pens, desk weights, etc.), or similar articles, should be aware that SUNAT may deem
those goods as merchandise and thus require the traveler to pay import duties upon
entry or otherwise to re-export the goods.
For exports, a Customs Merchandise Declaration (DAM), a commercial invoice and an
airway bill or bill of lading are required. Export licenses are required for cultural relics
and antiques. In addition, end-user certificates are required for the export or re-export of
items on the international munitions list, the international chemical/biological warfare
(CBW) list and the missile technology control regime (MTCR) list. Such licenses cover a
marginal portion of total Peruvian exports—less than 1%.
U.S. Export Controls Return to top
The U.S. government controls the export of weapons, ammunition, high technology
machinery and equipment (e.g., certain high performance computers, precision industrial
machinery, latest generation night vision equipment, polygraphs, etc.) and some
chemicals (e.g., sodium cyanide).
A list that consolidates eleven export screening lists of the Departments of Commerce,
State and the Treasury into a single search as an aid to industry in conducting electronic
screens of potential parties to regulated transactions is available here:http://export.gov/ecr/eg_main_023148.asp.
Temporary Entry Return to top
Some goods can be admitted into Peru temporarily for re-export within a year with a
bond that guarantees the duties and taxes. The list with the 23 types of goods, Annex 1
to Resolucion Ministerial 287-98-EF/10 y modificatorias, is available athttp://www.sunat.gob.pe/. Other documentation requirements are the same as those
listed above.
Labeling and Marking Requirements Return to top
Before reaching the point of sale, imported packaged foods must carry a separate
adhesive label with a Spanish translation, including the importer/distributor’s contact
information and RUC (taxpayer number). Law 28405 (November 30, 2004) requires
labeling for value-added products other than foods. If imported products do not comply
with these requirements for customs clearance, importers are allowed to properly label
them in private warehouses.
For food products, labeling requirements are relatively simple. Products normally retain
their original labels, and the name and (RUC) of the manufacturer, importer, or
distributor must be added to the packaging. The Ministry of Health, through its DIGESA
bureau, is in charge of issuing the sanitary registration numbers for food products. The
Consumer Protection Office of Peru’s Consumer Defense Agency, INDECOPI is
responsible for food and beverage labeling and advertising.
Food label contents must include the name of the product and country of manufacture.
For perishable products, the following information must be included: expiration date,
conservation instructions and warnings, ingredients, and net content of the product (by
weight or volume). The label must also include information on dangerous ingredients. It
is mandatory to include the name, address in Peru of the manufacturer, importer or
distributor as well as the taxpayer number (RUC), sanitary registration number obtained
from DIGESA, risk warning, and emergency treatment, when applicable. Perishable
products must have the information clearly and visibly in Spanish.
On March 7, 2011, INDECOPI published a draft regulation to Article 37 of the Consumer
Protection and Defense Code – Law 29571 (approved by Congress on September 2,
2010). The regulation entered into force through a Supreme Decree later that year and
details the procedures and requirements for implementing mandatory labeling for
genetically modified (GM) products.
Food packaging must be made of harmless material, free of substances that could affect
food safety. Likewise, packages must be manufactured so as to preserve the product’s
sanitary quality and composition throughout its useful life according to the Ministry of
Health’s sanitary standards. Packaging with recycled paper, cardboard, or plastic is
forbidden.
Materials and food additives for food and beverage manufacturing must meet the health
quality requirements established in the sanitary standards issued by DIGESA. The use
of food additives not included in the list of additives permitted by the Codex alimentarius
is forbidden. Flavorings accepted by the U.S. Food and Drug Administration (FDA) and
the Flavor and Extractive Manufacturing Association (FEMA) are permissible.
Prohibited and Restricted Imports Return to top
The list of prohibited/restricted items from importation can be found on the following
website:http://www.sunat.gob.pe/orientacionaduanera/mercanciasrestringidas includes
flour potassium bromate, mercuric oxide, carbon tetrachloride, among other chemical
products. Used tires, clothing and shoes are also prohibited. Only donations of used
clothing and shoes are exempt from the prohibition. Donations provided to the private
sector must obtain an authorization from the “Agencia Peruana de Cooperación
Internacional”, APCI (http://www.apci.gob.pe) before they arrive to Peru while donations
to the public sector will require an authorization from the Peruvian Council of Ministers.
Failure to meet these requirements may result in the shipper’s or consignee’s being
assessed duties, fines, warehousing or other expenses before the donated goods can
clear customs. Other products that are prohibited for import are some insecticides and
fireworks. Toxic waste is also restricted. Imports of used cars older than five years and
used buses and trucks older than two years old are prohibited, as are used tires.
U.S. imports of live cattle face technical barriers to trade; in 2013 the United States was
declared at negligible risk for Bovine spongiform encephalopathy (BSE) by the OIE
(World Organization for Animal Health). The Peruvian agency, SENASA, established
strict regulations regarding BSE and other diseases. However, a deal was announced in
April 2015 that SENASA approved the USDA Veterinary Health Certificate for the import
of U.S. live cattle. This export certificate should be officially enacted in J uly of 2015.
Customs Regulations and Contact Information Return to top
Imports with an FOB value in 2014 higher than about US$ 4,070 (11,400 Nuevos Soles
at the 2.80 exchange rate to the dollar, of three so-called tax reference units, Unidad
Impositiva Tributaria-UIT) pay 89.30 Nuevos Soles fee (2.35% of one UIT) for the
“valuation service”. For 2014 one UIT is 3,800 Nuevos Soles (approx. US$1,360). In
practice, Customs applies a US$34 flat valuation fee. Items imported under the U.S.-
Peru Trade Promotion Act – PTPA, are exempt from this fee.
As stated above in the “Import Requirements and Documentation” section, Customs’
priority is revenue generation rather than trade facilitation. Despite having signed the
WTO customs valuation procedure, Peruvian customs uses a referential price
verification system (Sistema de Verificación de Precios, SIVEP). Peru’s custom agency
Superintendence Nacional de Administración Tributaria(SUNAT), has a data base for
price consultation of goods from each country, and from different suppliers. This allows
for viewing and comparing declared values in commercial invoices and to make
adjustments to identical or similar merchandise’s prices that are less expensive than the
average file.
SUNAT does accept discounts, as long as it appears on the bill and is unincorporated
from the normal sales value, but the reason for the discount should be indicated to see if
it is acceptable.
SUNNAT often request that the importer provide a Manufacturer’s Price List. This
document must be certified by Peru consulate in the country of purchase. This price list
should not be addressed to the importer, but just with general information. This is very
important in order to be accepted by SUNAT.
This system has prompted several complaints from local importers that SUNAT is
assessing values above the real ones. One U.S. exporter has complained that SUNAT
does not accept its invoices, valuing instead imports using price lists that do not consider
distributor discounts. For SUNAT to accept the invoice value, it must be accompanied by
a price list, and the discount must be described and detailed in the invoice. Payment
terms must also be detailed. The SUNAT chapter of the US-PTPA addresses the
referential pricing issue and is consistent with Peru’s WTO obligations.
Contact Information for Peruvian Customs:
Superintendencia Nacional de Administración Tributaria
Av. Garcilaso de la Vega 1472, Lima, Peru
(511) 315-0730
Website:http://www.sunat.gob.pe/
Mr. Victor Martin Ramos, National Intendant of Tax Compliance (Intendente Nacional de
Cumplimiento Tributario); [email protected]
Mr. Luis Enrique Narro, National Intendant of Taxpayer Service (Intendente Nacional de
Servicios al Contribuyente); [email protected]
Ms. Maria Ysabel Frassinetti, National Intendant of Customs Procedures (Intendente
Nacional Tecnica Aduanera); [email protected]
Standards Return to top
• Overview
• Standards Organizations
• Conformity Assessment
• Product Certification
• Accreditation
• Publication of Technical Regulations
• Labeling and Marking
• Contacts
Overview Return to top
INDECOPI, the Defense of Competition and the Protection of Intellectual Property
Agency (http://www.indecopi.gob.pe/) is the Peruvian standards development
organization. Its Commission of Technical Regulations (CTR), created in 1992,
addresses standards matters. The Commission has three functions:
• Approve technical standards and metrology regulations.
• Accreditation of the public or private institutions that may provide conformity
assessments.
• Defense of free trade under World Trade Organization Technical Barriers to
Trade (TBT) Agreement.
Standards Organizations Return to top
The following is a list of the committees and directories inside the CTR working with
standards issues:
• Committee for Testing Methodology
• Committee for Water Meters Testing
• Committee for Testing Laboratories
• Committee for Product Certifying Organizations
• Committee for Metrology Services
• Committee for Quality Management Accreditation
• Committee for International Standards Norms
NIST Notify U.S. Service
Member countries of the World Trade Organization (WTO) are required under the
Agreement on Technical Barriers to Trade (TBT Agreement) to report to the
WTO all proposed technical regulations that could affect trade with other Member
countries. Notify U.S. is a free, web-based e-mail subscription service that offers
an opportunity to review and comment on proposed foreign technical regulations
that can affect your access to international markets. Register online athttp://www.nist.gov/notifyus/.
Conformity Assessment Return to top
The following firms are certified by CTR to provide Conformity Assessment services:
• INASA- Phone: (511) 616-5200,http://www.inassagroup.com.pe/
• SGS del Perú: (511) 517-1900,http://www.pe.sgs.com/
• BSI Inspectorate Perú: (511) 613-8080,http://www.inspectorate.com/peru/
• EQUAS S.A.: (511) 349-4050,http://equas.com.pe/
• SG Nortek: (metrology services) (511) 572-2630, [email protected]
Product Certification Return to top
Products coming from the U.S. will not have problems entering Peru if importers receive
information in advance regarding the products’ composition and/or ingredients. The
Peruvian standards body’s (CTR) regulatory framework is similar to that of the U.S. It is
common to hold seminars sponsored by ANSI, ASTM, NEMA and others to encourage
conformity with global standards.
Accreditation Return to top
There are accreditation bodies for different industries.http://www.digesa.sld.pe/
The laboratories that can provide assistance to U.S exporters can be found at:http://www.indecopi.gob.pe/repositorioaps/0/0/jer/acre01/Direct_Organ_Eva_Conf/LabD
eEnsayo/RelacionLab(165).pdf
Publication of Technical Regulations Return to top
The office responsible for publishing standards and notifying private and public
organizations is the National Information Service (SNI-CRT) under CTR. This office is
also responsible for notifying the WTO-TBT Committee about changes related to
standards issues in Peru. It is under that scheme that the U.S. and other countries may
comment on modifications and propose new standards.
Labeling and Marking Return to top
In November 2004 Peru issued a new regulation on labeling and marking (Ley del
Rotulado - Law 28405). This new law establishes that products exported to Peru should
have a label with the following information:
• name of product
• country of origin
• address of exporter, importer, or distributor
• expiration date
• conservation method
• weight in metric system
• risks, if any, to use
International quality marks should be visible and easy to identify.
Contacts Return to top
The contact information at INDECOPI and CTR in Lima is:
(511) 224-7800 ext. 1261, fax (511) 224-7800 ext.1296.
The points of contact regarding standards issues at the U.S. Foreign Commercial
Service in the Embassy Lima are:
Ricardo J. Peláez, Commercial Counselor
Gustavo Romero, Commercial Specialist
Phone: (511) 618-2442.
Trade Agreements Return to top
Peruvians and Americans benefit from the PTPA, which entered into force on February
1, 2009.
Peru has been a member of the Andean Community (and its predecessor, the Andean
Pact) since 1969. The Andean Community is currently comprised of Peru, Ecuador,
Colombia, and Bolivia. In J anuary 2002, the member countries of the Andean
Community agreed to establish an Andean free trade zone, a common external tariff
(CET), and a customs harmonization policy by J anuary 2004. However, Andean
Community members have not implemented these measures.
Peru is a member of the WTO and became a full member of the Asia-Pacific Economic
Cooperation (APEC) forum in November 1998. Peru also has free trade agreements with
the United States, Canada, Chile, the European Union, China, the European Free Trade
Association (which includes Iceland, Liechtenstein, Norway and Switzerland), Honduras,
J apan, Mexico, Panama, Singapore, South Korea, and Thailand. It has Framework
Agreements with MERCOSUR countries (Argentina, Brazil, Uruguay, and Paraguay), the
Andean Community of Nations (Bolivia, Ecuador, and Colombia), and a partial
preferential agreement with Cuba. Agreements have been signed and are awaiting
implementation with Costa Rica, Guatemala, and Venezuela.
Peru is participating in the negotiations of the Trans-Pacific Partnership (TPP), which
aims to create a regional free trade agreement involving Australia, Brunei Darussalam,
Chile, Canada, J apan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United
States, and Vietnam. The Peruvian government also is finalizing free trade agreements
with El Salvador and negotiating free trade agreements with Turkey and India. Peru is a
founding member of the Pacific Alliance, a new regional economic block with Mexico,
Colombia, and Chile. It seeks the integration of the member countries and accounts for
more than one third of Latin America’s GDP.
Peru is currently the 32
nd
largest export market for U.S. goods. U.S. exports to Peru
amounted to US$10.07 billion in 2014.
Web Resources Return to tophttp://www.ustr.gov/trade-agreements/free-trade-agreements/peru-tpa/
Return to table of contents
Return to table of contents
Chapter 6: Investment Climate
• Openness to Foreign Investment
• Conversion and Transfer Policies
• Expropriation and Compensation
• Dispute Settlement
• Performance Requirements and Incentives
• Right to Private Ownership and Establishment
• Protection of Property Rights
• Transparency of Regulatory System
• Efficient Capital Markets and Portfolio Investment
• Competition from State Owned Enterprises
• Corporate Social Responsibility
• Political Violence
• Corruption
• Bilateral Investment Agreements
• OPIC and Other Investment Insurance Programs
• Labor
• Foreign-Trade Zones/Free Ports
• Foreign Direct Investment Statistics
• Web Resources
Openness to Foreign Investment Return to top
The GOP seeks to attract investment -- both foreign and domestic -- in nearly all sectors
of the economy. Several high level Peruvian officials, including President Ollanta
Humala, the Minister of Economy and Finance, and the Central Bank President,
attended global business conferences and toured several countries in 2014 in an effort
to attract foreign investment. Some of these tours were organized and sponsored by
“inPeru,” a private industry organization (http://inperu.pe). Peruvians and Americans
benefit from the United States-Peru Trade Promotion Agreement (PTPA) which entered
into force on February 1, 2009. Since entry into force, total trade (exports and imports)
between Peru and the United States expanded significantly from USD 9.1 billion to USD
16.1 billion. The PTPA establishes a secure, predictable legal framework for U.S.
investors operating in Peru. The PTPA protects all forms of investment. U.S. investors
enjoy in almost all circumstances the right to establish, acquire and operate investments
in Peru on an equal footing with local investors.
Peru aspires to membership into the Organization for Economic Cooperation and
Development (OECD). On February 5, 2015 the GOP announced the start of an 18-
month study to identify economic, social, and political “bottle necks” that could hamper
Peru’s OECD membership aspirations. The government noted that the study would act
as a “roadmap” for Peru’s goal to achieve membership by 2021 and highlighted
education as an example of a key area that Peru must improve. According to the OECD,
Peru dedicates only 2.8% of GDP towards education compared to the OECD average of
5.6% of GDP. As a result, Peruvian 15 year olds achieve education results equivalent to
12 year olds in OECD member countries. The result of this lack of investment in
education is a chronic shortage of skilled labor in Peru.
The 1993 Constitution grants national treatment for foreign investors and permits foreign
investment in almost all economic sectors. Under the Constitution, foreign investors
have the same rights as national investors to benefit from any investment incentives,
such as tax exemptions. In addition to the 1993 Constitution, Peru has several laws
governing foreign direct investment (FDI) including the Foreign Investment Promotion
Law (Legislative Decree (DL) 662 of September 1991) and the Framework Law for
Private Investment Growth (DL 757 of November 1991). Other important laws include
the Private Investment in State-Owned Enterprises Promotion Law (DL 674), the Private
Investment in Public Services Infrastructure Promotion Law (DL 758), and specific laws
related to agriculture, fisheries and aquaculture, forestry, mining, oil and gas, and
electricity. Article 6 of Supreme Decree No. 162-92-EF (the implementing regulations of
DLs 662 and 757) authorizes private investors to enter all industries except investments
in natural protected areas and manufacturing of weapons.
The GOP has passed several laws and related implementing regulations aimed at
encouraging more private investment, such as two important decrees in 2008. The first
was a legislative decree containing the Law on Public-Private Partnerships (PPPs). The
second decree presents a priority list of projects for PPPs. Congress passed a law to
reform regulations that would make PPPs less bureaucratic and more transparent, thus
more attractive to foreign companies, in March 2014. Among these public-private
partnerships are major infrastructure projects of national importance and upgrades to
existing projects: Salaverry maritime port project, Quillabamba thermal power plant
(Cusco region), liquid petroleum gas (LPG) transport system (from Pisco to Callao), lines
three and four of the Lima and Callao Metro system, water supply to Lima and related
headwater works, distribution system of natural gas via pipeline networks (Apurimac,
Ayacucho, Huancavelica, J unin, Cusco, Puno, and Ucayali regions), rural broadband
installation (optical fiber transportation networks and access networks), and connections
to three existing 220 kV power transmission lines. Project opportunities are available on
ProInversion’s Project Portfolio page, available at:http://www.proyectosapp.pe/modulos/J ER/PlantillaProyectoEstadoSector.aspx?are=1&p
rf=2&jer=5892&sec=30.
Although all Peruvian administrations since the 1990s have vowed to support private
investment and abide by Peruvian laws, the GOP occasionally has passed measures
that some observers have regarded as contravening legal principles. For example, the
Garcia Administration in 2011 rescinded a Canadian company's rights to operate a silver
mining project in Puno after violent protests opposing the project. The Canadian
company delivered to the Peruvian Minister of Economy and Finance a Notice of Intent
to submit a claim to arbitration under the terms of the Canada-Peru Free Trade
Agreement in February 2014. Furthermore, President Ollanta Humala signed into law a
10-year moratorium on the entry into Peru of live genetically-modified organisms
(GMOs) to be used for cultivation in December 2011. Peru also has implemented two
inconsistent sets of rules for importing pesticides, one for “regular” importers, which is
extremely restrictive and requires importers to file a full dossier with technical
information, and another for farmers, which is rather loose and only requires a written
affidavit.
The GOP created the Private Investment Promotion Agency, ProInversion, in 2002,
based on an existing similar agency. ProInversion has completed both privatizations and
concessions of state-owned enterprises and natural resource-based industries. Major
recent concession areas include ports, power generation facilities, electrical
transmission lines, oil and gas distribution, and telecommunications. In J uly 2014 the
Peruvian Congress passed legislation to reform the public-private concessions process
and requires more oversight by the Ministry of Economy and Finance. The Ministry of
Economy and Finance is working on the implementing regulations, and expects a final
draft before the end of 2015.
ProInversion also aims to attract investment in the following sectors: agricultural,
construction, ground transportation, energy and mining, finance, health technologies,
telecommunications, and travel. Information can be found on ProInversion’s website:http://www.proyectosapp.pe/modulos/J ER/PlantillaProyectoEstadoSector.aspx?are=0&p
rf=2&jer=5351&sec=22.
The Constitution (Article 6 under Supreme Decree No. 162-92-EF) authorizes foreign
investors to carry out any economic activity provided investors comply with all
constitutional precepts, laws and treaties. Exceptions exist, including exclusion on
foreign investment activities in natural protected reserves and manufacturing of war
weapons, pursuant to Article 6 of Legislative Decree No. 757. While long-term
concessions are granted, the law states Peruvians must maintain majority ownership in
certain strategic sectors: media; air, land and maritime transportation infrastructure; and
private security surveillance services.
Prior approval is required in the banking (for regulatory reasons, and also applies to
domestic investment) and defense-related sectors. Foreigners are also legally prohibited
from owning a majority interest in radio and television stations in Peru; nevertheless,
foreigners have in practice owned controlling interests in such companies. Under the
Constitution, foreign interests cannot "acquire or possess under any title, mines, lands,
forests, waters, or fuel or energy sources" within 50 kilometers of Peru's international
borders. However, foreigners can obtain concessions and rights within the restricted
areas with the authorization of a supreme resolution approved by the Cabinet and the
J oint Command of the Armed Forces.
The GOP initiated an extensive, but not yet complete, privatization program in 1991 in
which foreign investors were encouraged to participate. Since 2000, the GOP has
promoted multi-year concessions as a means of attracting investment in major projects.
In 2000, the government granted a 30-year concession to a private group (Lima Airport
Partners) to operate the Lima airport. In 2006, the government granted a 30-year
concession to Dubai Ports to build and operate a new container terminal in the Port of
Callao. The terminal’s first phase became operational in May 2010. In 2006, the Swiss-
Spanish-Peruvian consortium Swissport received a 25-year concession to manage nine
of Peru's northern airports. In 2011, the GOP awarded the Argentine-Peruvian
consortium Aeropuertos Andinos a 25-year concession to manage six of Peru’s southern
airports. Also in 2011, the government granted a 30-year concession to a Danish-
Peruvian consortium led by the Danish-based A.P. Moller-Maersk Group to operate and
modernize the multipurpose northern terminal at the Port of Callao. On J une 30, 2014
the GOP awarded a multi-billion USD concession for the Southern Gas Pipeline to a
consortium led by Brazilian company Odebrecht. The GOP continues to award multi-
year concessions for various energy, natural gas, hydro-energy and irrigation,
telecommunications, ports, sanitation, roads, and tourism projects.
The concessions process is challenging for U.S. and other international companies
interested in bidding on projects. ProInversion, the government agency responsible for
drawing up and competing PPP concession projects, has come under considerable
criticism for its bidding process, deadlines, and ambitious timetables. As a result, U.S.
and other international companies have shown limited interest in Peruvian PPP projects.
The GOP does not screen, review, or approve foreign direct investment outside of those
sectors that require a governmental waiver (see Limits on Foreign Control).
The Institute for the Protection of Intellectual Property, Consumer Protection, and
Competition (INDECOPI) is the GOP agency responsible for reviewing competition-
related concerns of a domestic nature.
Peru has made significant strides in various areas measured in The World Bank’s “Doing
Business” reports, including reformed procedures on starting a business, securing
construction permits, registering property, and closing a business. Although Peru’s
efforts to reform business start-up procedures made significant advances according to
the 2011 report, Peru declined by three places in the World Bank’s business start-up
ranking from 60th in 2013 to 63rd in 2014. At the same time, Peru lowered the average
amount of time it takes to start a business from 41 days (in 2010) to 25 days (in 2014).
Although the 2013 report noted Peru’s efforts to strengthen investor protections through
a new law regulating the approval of related-party transactions and making it easier to
sue directors when such transactions are prejudicial, the 2014 does not show any
relevant legal modifications for Peru.
Table 1: Well-Regarded International Indices and Rankings
Measure
Year Rank or
value
Website Address
Transparency International
Corruption Perceptions
Index
2014 85 of 175http://cpi.transparency.org/cpi20
13/results/
Heritage Foundation Index of
Economic Freedom
2014 47 of 178http://www.heritage.org/index/ab
out
World Bank Ease of Doing
Business Rank
2014 42 of 189http://doingbusiness.org/rankings
Global Innovation Index
2014 73 of 143http://www.globalinnovationinde
x.org/content.aspx?page=gii-
full-report-2013#pdfopener
World Bank GNI per capita
2013 USD 6,270http://data.worldbank.org/countr
y/peru
Peru received USD 35.6 million from the Millennium Challenge Corporation for threshold
funding in 2008 for health and anti-corruption programs. In 2009 Peru reached upper-
middle income country status and is officially ineligible for further Millennium Challenge
Corporation assistance.
Conversion and Transfer Policies Return to top
There are no reported difficulties in obtaining foreign exchange. Under Article 64 of the
1993 Constitution, the GOP guarantees the freedom to hold and dispose of foreign
currency. The GOP has eliminated all restrictions on remittances of profits, dividends,
royalties, and capital, although foreign investors are advised to register their investments
with ProInversion to ensure these guarantees. Exporters and importers are not required
to channel foreign exchange transactions through the Central Reserve Bank of Peru
(BCR) and can conduct transactions freely on the open market. Anyone may open and
maintain foreign currency accounts in Peruvian commercial banks. U.S. firms have
reported no problems or delays in transferring funds or remitting capital, earnings, loan
repayments or lease payments since Peru's economic reforms of the early 1990s. Under
the PTPA, portfolio managers in the United States are able to provide portfolio
management services to both mutual funds and pension funds in Peru, including funds
that manage Peru’s privatized social security accounts.
The 1993 Constitution guarantees free convertibility of currency. However, limited capital
controls still exist as private pension fund managers (AFPs) are constrained by how
much of their portfolio can be invested in foreign securities. The maximum limit is set by
law (currently 50% since J uly 2011), but the BCR sets the operating limit AFPs can
invest abroad. Over the years, the BCR has gradually increased the operating limit,
which reached 40% in J uly 2014. Several additional increases were made between
October 2014 and J anuary 2015, bringing the current operating limit up to 42 percent.
The BCR is an independent institution, free to manage monetary policy to maintain
financial stability. The BCR’s primary goal is to maintain price stability, via inflation
targeting. Inflation at year-end in Peru reached 3.9% in 2007, 6.7% in 2008, 0.3% in
2009, 2.1% in 2010, 4.7% in 2011, 2.7% in 2012, 2.8% in 2013, and 3.2% in 2014.
The GOP has implemented policies to de-dollarize the economy, but in the last few
years market forces have been more effective in reducing dollarization as the Peruvian
Nuevo Sol had trended (until 2014) to appreciate vis-à-vis the U.S. dollar. U.S. dollars
account for a decreasing share of banking system transactions, according to the
Peruvian Banking Superintendence (SBS). In 2001, U.S. dollars accounted for 82% of
loans and 73% of deposits. As of February 2015, U.S. dollars accounted for 42.6% of
loans.
The foreign exchange market operates freely, for the most part. To quell “extreme
variations” of the exchange rate, the BCR intervenes through purchases and sales in the
open market without imposing controls on exchange rates or transactions. In the last few
years, the BCR has consistently purchased U.S. dollars to mitigate the risk that spillover
from expansionary U.S. monetary policy might result in over-valuation of the Peruvian
Nuevo Sol relative to the U.S. dollar. In 2014, ahead of an announced tapering of
expansionary U.S. monetary policy, the BCR has sold dollars to manage the
depreciation of the Peruvian Nuevo Sol ahead of U.S. economic recovery and tightening
of credit conditions.
Peru is neither a major regional financial center nor an offshore financial center.
Currently, businesses involved in the transfer of funds only need prior authorization by
the Peruvian Banking Authority (SBS) while cash couriers need a signed agreement with
the Ministry of Transportation and Communication. The GOP’s Financial Intelligence
Unit (FIU) is an independent agency that monitors and investigates financial institutions
and cash transfers (physical and electronic) for money laundering and other financial
crimes.
Peru’s cash-based and heavily-dollarized economy, large informal sector (estimated to
be 70% of GDP), and deficient regulatory supervision of designated non-financial
businesses and professions (DNFBPs), such as informal money exchanges and wire
transfer services, make the economy vulnerable to money laundering and other financial
crimes. The informal remittance businesses remain unsupervised and vulnerable to
money laundering, including travel agencies and small wire transfer businesses. Peru
would benefit from expanded supervision and regulation of financial institutions and
DNFBPs. Progress was made in monitoring and regulating notaries, pawn shops, and
exchange houses. Peru is a member of the Financial Action Task Force on Money
Laundering in South America (GAFILAT).
A U.S. company complained to the Embassy that their pension plans, issued in the
United States and registered under the Texas Commissioner, have been excluded by
the SBS from being used by their clients to demonstrate provisional coverage within the
funds transfer abroad procedure, despite the company having certified compliance with
the coverage requirements. This is notwithstanding the AFPs (pension funds) accepting
private voluntary plans from other countries.
Expropriation and Compensation Return to top
According to the Peruvian Constitution, the GOP can only expropriate private property
on public interest grounds such as public works projects or for national security. An
expropriation requires the Congress to pass a specific act. The Government of Peru has
expressed its intention to comply with international standards concerning expropriations.
On J anuary 12, 2012, Congress approved legislation to expropriate a number of homes
and other real estate adjacent to the Lima Airport for an airport expansion project.
Compensation for expropriations is based on fair market value. Notably, concessionaires
have complained that the government has been extremely slow in implementing
expropriations, which have caused delays to their investment commitments.
Dispute Settlement Return to top
The PTPA includes a chapter on dispute settlement, which applies to implementation of
the Agreement’s core obligations, including labor and environment provisions. Dispute
panel procedures set high standards of openness and transparency through the
following measures: open public hearings, public release of legal submissions by parties,
enlisting special labor or environment expertise for disputes in these areas, and
opportunities for interested third parties to submit views. The Agreement emphasizes
compliance through consultation and trade-enhancing remedies. The Agreement also
encourages arbitration and other alternative dispute resolution measures for disputes
between private parties.
Peru is a party to the Convention on the Recognition and Enforcement of Foreign
Arbitral Awards (the New York Convention of 1958) and to the International Center for
the Settlement of Investment Disputes (the Washington Convention of 1965). Disputes
between foreign investors and the GOP regarding pre-existing contracts must still enter
national courts, unless otherwise permitted, such as through provisions found in the
PTPA. In addition, investors who enter into a juridical stability agreement may submit
disputes with the government to national or international arbitration if stipulated in the
agreement. Several private organizations -- including the American Chamber of
Commerce, the Lima Chamber of Commerce, and Universidad Catolica – operate
private arbitration centers. The quality of such centers varies, however, and investors
should choose arbitration venues carefully.
Peru has a creditor rights hierarchy similar to that established under U.S. bankruptcy
law, and monetary judgments are usually made in the currency stipulated in the contract.
However, administrative bankruptcy procedures under INDECOPI (the Antitrust, Unfair
Competition, Intellectual Property Protection, Consumer Protection, Dumping, Standards
and Elimination of Bureaucratic Barriers Agency) have proven to be slow and subject to
judicial intervention. Compounding this difficulty are occasional laws passed to protect
specific debtors from action by creditors that would force them into bankruptcy or
liquidation.
The 1993 Constitution permits international arbitration of disputes between foreign
investors and the government or state-controlled firms. Previously, the Government of
Peru appealed arbitration cases to the judiciary, where they were typically delayed until
the international companies conceded the cases. To reinforce Peruvian law, the
Supreme Court ruled that effective J uly 2005, all arbitration findings and awards are final
and not subject to appeal.
The Constitution permits international arbitration of disputes between foreign investors
and the government or state-controlled firms. Although Peruvian law stipulates the GOP
must accept binding arbitration, parastatal companies and government ministries
disregarded unfavorable judgments several times over the past three years. Previously,
the Government of Peru turned these arbitration cases over to the judiciary, where they
were bureaucratically delayed until the companies conceded the cases. Peru’s Supreme
Court ruled that effective J uly 2005 all arbitration findings and awards are final and not
subject to appeal.
Peru is a party to the Convention on the Recognition and Enforcement of Foreign
Arbitral Awards (the New York Convention of 1958), and to the International Center for
the Settlement of Investment Disputes (the Washington Convention of 1965). Disputes
between foreign investors and the GOP regarding pre-existing contracts must still enter
national courts. However, investors who conclude a juridical stability agreement for
additional investments may submit disputes with the government to national or
international arbitration if stipulated in the agreement. Several private organizations --
including the Universidad Catolica, the Lima Chamber of Commerce and the American
Chamber of Commerce -- operate private arbitration centers. The quality of these
centers varies, and investors should choose arbitration venues carefully.
Dispute settlement remains problematic in Peru; although in 2004 the GOP took steps to
improve the dispute settlement process by establishing commercial courts to rule on
investment disputes, including two courts of appeal. Prior to the existence of the
commercial courts, it took an average of two years to resolve a commercial case through
the civil court system. With their specialized judges, these courts have reduced the
amount of time to resolve a case to just two months. The appeals level resolves most of
these cases.
The criminal and civil courts of first instance and appeal are heard at the provincial level.
The Supreme Court is located in Lima. In principle, Peruvian law recognizes secured
interests in property, both movable and immovable. With the exception of the
commercial courts, the judicial system is extremely slow to hear cases and to issue
decisions. A large backlog of cases further complicates decision-making. Court rulings
and the degree of enforcement have been difficult to predict. The competence of
individual judges varies, and allegations of corruption, political interference, and outside
interference in the judicial system are common. Frequent use of appellate processes as
a delay tactic leads to the belief among foreign investors that contracts can be difficult to
enforce in Peru. The 1997 Law of Conciliation (DL 26872) requires disputants in many
types of civil and commercial matters to consider conciliation before a judge can accept
a dispute for litigation. Private parties often resort to arbitration to resolve business
disputes, avoiding involvement in judicial processes.
Peru has a creditor rights hierarchy similar to that established under U.S. bankruptcy
law, and monetary judgments are usually made in the currency stipulated in the contract.
However, administrative bankruptcy procedures under INDECOPI (the National Institute
for the Defense of Free Competition and the Protection of Intellectual Property) have
proven to be slow and subject to judicial intervention. Compounding this difficulty are
occasional laws passed to protect specific debtors from action by creditors that would
force them into bankruptcy or liquidation.
The 1993 Constitution permits international arbitration of disputes between foreign
investors and the government or state-controlled firms. Previously, the Government of
Peru appealed arbitration cases to the judiciary, where they were typically delayed until
the international companies conceded the cases. To reinforce Peruvian law, the
Supreme Court ruled that effective J uly 2005, all arbitration findings and awards are final
and not subject to appeal.
Performance Requirements and Incentives Return to top
The PTPA has resulted in benefits to U.S. enterprises seeking to invest in Peru. Under
the PTPA, Peru has made concessions beyond its commitments to the WTO and has
dismantled significant investment barriers, such as measures that required U.S. firms to
hire nationals rather than U.S. professionals, and measures requiring the purchase of
local goods.
Peru offers both foreign and national investors legal and tax stability agreements to
stimulate private investment. These agreements guarantee that the statutes on income
taxes, remittances, export promotion regimes (such as drawbacks, or refunds of duties),
administrative procedures, and labor hiring regimes in effect at the time of the
investment contract will remain unchanged for that investment for 10 years. To qualify,
an investment must exceed USD 10 million in the mining and hydrocarbons sectors or
USD 5 million within two years in other sectors. An agreement to acquire more than 50%
of a company's shares in the privatization process may also qualify an investor for a
legal or tax stability agreement, provided that the added investment will expand the
installed capacity of the company or enhance its technological development.
Promoting science, innovation, and technology and improving Peru’s education system
remain priorities for the Humala Administration. Peru ranked last out of 65 surveyed
countries in the OECD’s 2013 Program for International Student Assessment (PISA).
The OECD noted the high inequity of quality between urban and rural schools and low
levels of Peruvian students meeting PISA standards in mathematics, science, and
reading. The Humala Administration increased spending on education for 2015,
including USD 1 billion to build and renovate schools and USD 450 million to hire more
teachers. In 2014, the GOP launched an ambitious national plan to promote innovation,
science, and technology jobs.
There are no performance requirements that apply exclusively to foreign investors.
Peruvian civil law applies to legal stability agreements, which means the GOP cannot
unilaterally alter agreements. Notwithstanding these protections, investors should be
aware that government officials have delivered negative remarks to the press regarding
companies exercising their contractual rights and obligations.
Laws specific to investment in the petroleum and mining sectors provide assurances to
investors in those sectors. However, a history of tightening of benefits has occurred in
these industries. In 2000, the government modified the General Mining Law, reducing
some benefits to investors in that sector. Among the changes were reductions in the
term concessionaires are granted to achieve the minimum annual production, increases
in fees for holding non-productive concessions, increases in fines for not achieving
minimum production within the allotted time, reductions in the maximum allowable
annual accelerated depreciation, and revocation of the income tax exemption for
reinvested profits.
After a growing number of local communities demanded a share of mining profits from
operations in their areas, the incoming Garcia Administration and mining companies
agreed in 2006 to a "voluntary contribution" system whereby companies agreed to
provide funding to the government (in addition to the regular corporate income tax) for
community infrastructure projects. This voluntary contribution averted adoption of
exacting taxes. The agreement allowed mining companies to control where their
contributions were invested and did not apply if the prices of metals or minerals drop
below certain levels. As the voluntary contribution agreement was to expire at the end of
2011 during a period of windfall profits for extractive industries, the incoming Humala
Administration and mining companies agreed in August 2011 to replace it with a new tax
regime on mining profits called the “gravamen minero.” It produced tax revenues
(including the royalty tax) of USD 1.54 billion in 2014; with declining metals prices the
contribution in 2014 was USD 1.15 billion.
With regard to licensing arrangements, private parties may freely negotiate contractual
conditions related to licensing arrangements and other aspects of technology transfer,
needing no prior governmental authorization. Registration of a technology transfer
agreement with INDECOPI is required for a payment of royalties to be counted against
taxes.
Current law limits foreign employees to 20% of the total number of employees in a local
company (whether owned by foreign or national interests). The combined salaries of
foreign employees are limited to no more than 30% of the total company payroll.
However, DL 689 from November 1991 provides a variety of exceptions to these limits.
For example, a foreigner is not counted against a company's total if he or she holds an
immigrant visa, has a certain amount invested in the company (currently about USD
4,000), or is a national of a country that has a reciprocal labor or dual nationality
agreement with Peru. The United States and Peru tolerate dual nationality, but do not
have a formal agreement. Furthermore, the law exempts foreign banks, and international
transportation companies from these hiring limits, as well as all firms located in free
trade zones. Companies may apply for exemption from the limitations for managerial or
technical personnel.
The GOP does not maintain any measures that are inconsistent with Trade-Related
Investment Measure (TRIM) requirements, according to a WTO Committee on Trade-
Related Investment Measure notification dated August 19, 2010.
Although there are no discriminatory or onerous visa, residence, or work permit
requirements that inhibit foreign investors' mobility, the application and approval process
can be cumbersome and lengthy.
Peru adopted the Personal Data Protection Law (N° 29733) in J uly 2011 and went into
effect on March 22, 2013. The Law is available here in English:http://web.ita.doc.gov/ITI/itiHome.nsf/1dd3c7c4faeeff0585256ccb00657bab/112a1a2f4d
01989c
85257a78004dd2ec/$FILE/Peru%20Data%20Protection%20Law%20J uly%2028_EN.pdf
The implementing regulations are available in Spanish here:http://spij.minjus.gob.pe/normas/textos/220313T.pdf 2.
A data controller who processes personal data must notify the National Authority for
Personal Data Protection (ANPDP for its Spanish acronym), which keeps a public
register of data processors and the type of data they collect. Personal data is defined by
the Law as any information on an individual which identifies or makes him/her
identifiable through means that may be reasonably used. Sensitive personal data means
any of the following: biometric data, data concerning the racial and ethnic origin; political,
religion, philosophical or moral opinions or convictions, personal habits, union
membership and information related to health or sexual life. Unless otherwise exempted
by statute, data controllers are generally required to obtain the consent of data subjects
for the processing of their personal data. Consent must be prior, informed, expressed,
and unequivocal. In the case of sensitive personal data, consent must also be given in
writing, which may be done digitally. Even without the consent of the subject, sensitive
data may be processed when authorized by law, provided that it in in the public interest.
Data controllers may process personal data without consent:
• when the personal data are compiled or transferred for public entities in control of
the personal data and in the performance of its duties;
• when personal data is accessible to the public or is intended to be accessible to
the public;
• to comply with other laws related to financial solvency and credit;
• in the case of a law for the promotion of competition in regulated markets under
certain circumstances;
• when necessary to perform a contract to which the data subject is a party;
• for personal data related to health, under certain circumstances;
• when processing is carried out by non-profit organizations with political, religious
or union purposes, under certain circumstances; or
• in an anonymization or disassociation procedure.
A data controller may transfer personal data to places outside of Peru only if the
recipients have adequate protection measures. The ANPDP supervises compliance with
this requirement. That provision does not apply in the following cases:
• when the data subject has given his/her prior, informed, express and unequivocal
consent;
• agreements under international treaties to which Peru is a party;
• international judicial cooperation;
• international cooperation between intelligence agencies for the fight against
terrorism, illegal drug trafficking, money laundering, corruption, human trafficking
and other forms of organized crime;
• when necessary to implement a contract to which the data subject is a party;
• to comply with laws concerning the transfer of bank or stock exchanges; or
• when the transfer is for the prevention, diagnosis or medical or surgical treatment
of the data subject; or when necessary to carry out epidemiological or similar
studies (provided that adequate disassociation procedures are applied).
Data controllers must adopt technical, organization and legal measures to guarantee the
security of personal data and avoid their alteration, loss, unauthorized processing or
access. Peru’s law does not require any notifications to any data subject or any other
entity upon a breach. Peru does not mandate special regulations be enacted for the
processing of personal data of minors. The ANPDP is responsible for enforcement and
can issue the following administrative sanctions/fines based upon whether the violation
is mild, serious or very serious. The law provides a “Principle for availability of recourse
for the data subject” stating that any data subject must have the administrative and/or
jurisdictional channel necessary to claim and enforce his rights when they are violated
by the processing of his personal data.
Right to Private Ownership and Establishment Return to top
Peruvian law generally grants foreign and domestic entities the right to establish and
own business enterprises and to engage in most forms of remunerative activity. Subject
to the restrictions listed earlier in this document, both foreign and domestic entities may
invest in any legal economic activity -- including foreign direct investment, portfolio
investment, and in real estate. Private entities may generally freely establish, acquire,
and dispose of interests in business enterprises. In the case of some privatized
companies deemed important by the government, the privatization agency ProInversion
has included a so-called "golden share" clause in the sales contract, which allows the
government to veto a potential future purchaser of the privatized assets.
Protection of Property Rights Return to top
The GOP recognizes and enforces secured interests in property, both movable and
immovable. The GOP is working on improving the registry of those rights, which will
further enable the government’s enforcement capabilities.
Peru’s legal framework provides for easy registration of trademarks, and inventors have
been able to patent their inventions since 1994. Peru’s 1996 Industrial Property Rights
Law provides an effective term of protection for patents and prohibits devices that
decode encrypted satellite signals, along with other improvements. Peruvian law does
not provide pipeline protection for patents or protection from parallel imports. Peru’s
Copyright Law is generally consistent with the TRIPS Agreement.
While the legal framework for protection of intellectual property (IP) in Peru has
improved over the past decade, including the law enacted in 2011 to criminalize the sale
of counterfeit medicines, enforcement mechanisms remain weak. However, Peru has
remained on USTR's Section 301 "Watch List" since 1992 because of continued high
piracy rates, inadequate enforcement of IP laws, and weak or unenforced penalties for
IP violators.
Under the PTPA, Peruvian law should treat U.S. companies at least as well as Peruvian
companies in all IP categories. The PTPA provides for improved IP protection on a
broad range of intellectual property rights. Such improvements include protections for
digital products such as U.S. software, music, text, and video; protection for U.S.
patents, trademarks and pharmaceutical and agrochemical test data; legal penalties to
deter piracy; and an electronic system to register and maintain trademarks.
Despite PTPA implementation and recent legal code amendments creating stricter
penalties for some types of IP theft, the judicial branch has failed to impose sentences
that adequately deter future IP theft. Prosecutors do not pursue piracy cases through the
entire process to final judgment. Furthermore, the Peruvian public lacks motivation to
change perceptions regarding IP theft. The public continues to purchase pirated
software, CDs, DVDs, pharmaceutical products, and books from vendors in public. The
purchases continue openly since most Peruvians realize their government will not
prosecute this theft.
Some GOP institutions, sometimes with the support of the U.S. Embassy in Lima,
sponsor public awareness campaigns to raise awareness about the damage that IP theft
causes the Peruvian economy and Peruvians consumers. Peruvian newspapers
complain about piracy, including pirated versions of Peru’s Nobel Laureate Mario Vargas
Llosa’s books. While the GOP occasionally has carried out raids against small-time
vendors of pirated goods, piracy remains a significant problem for legitimate owners of
copyrights in Peru.
The International Intellectual Property Alliance (IIPA) estimates that the piracy level in
Peru for recorded music is at 98% and 100% for video content and books. The Business
Software Alliance estimates that software piracy level is at 65%, costing the industry
USD 60 million in 2014.
The U.S. pharmaceutical industry advises that the GOP fails to provide data exclusivity
protection for all pharmaceutical products and does not provide patent linkage or
“second use” medical patents. The pharmaceutical industry also advises that the GOP
does not offer any extension of the patent term for pharmaceutical products to
compensate for processing delays at the patent office. There has also been at least one
instance of GOP initiatives creating a backdoor for domestic companies to avoid
complying with IP laws. This backdoor can be seen in the pharmaceutical sector in the
registration of biosimilar products of biologics, drugs made from organic material that
infringe upon patented U.S. biological products.
The GOP agency charged with promoting and defending intellectual property rights is
the Antitrust, Unfair Competition, Intellectual Property Protection, Consumer Protection,
Dumping, Standards and Elimination of Bureaucratic Barriers Agency (INDECOPI,
www.indecopi.gob.pe), established in 1992. Peru belongs to the World Trade
Organization (WTO) and the World Intellectual Property Organization (WIPO). It is also a
signatory to the Paris Convention on Industrial Property, Geneva Convention for the
Protection of Sound Recordings, Bern Convention for the Protection of Literary and
Artistic Works, Brussels Convention on the Distribution of Satellite Signals, Phonograms
Convention, Satellites Convention, Universal Copyright Convention, the World Copyright
Treaty, and the World Performances and Phonographs Treaty and the Film Register
Treaty. In December 1994, the Peruvian Congress ratified the World Trade
Organization's Agreement on Trade-Related Aspects of Intellectual Property (TRIPs).
Pursuant to the terms of the PTPA, Peru has ratified or acceded to the following
agreements: the Convention Relating to the Distribution of Program-Carrying Signals
Transmitted by Satellite; the Budapest Treaty on the International Recognition of the
Deposit of Microorganisms for the Purposes of Patent Procedure; the WIPO Copyright
Treaty; the WIPO Performances and Phonograms Treaty; the Patent Cooperation
Treaty; the Trademark Law Treaty; and, the International Convention for the Protection
of New Varieties of Plants (UPOV Convention). Although Peru has ratified or acceded to
several of the above agreements as part of its implementation of the PTPA, it has not yet
fulfilled its PTPA commitments by ratifying or acceding to the following agreements: the
Patent Law Treaty; the Hague Agreement Concerning the International Registration of
Industrial Designs; and, the Protocol Relating to the Madrid Agreement Concerning the
International Registration of Marks.
Contact at Mission:
Benjamin Yates
Economic Officer
+51-1-618-2414
[email protected]
Country/Economy resources:
The American Chamber of Commerce in Peru can be contacted via this link:http://www.amcham.org.pe/contactenos/escribanos.php.
Transparency of Regulatory System Return to top
Regulatory transparency and independence have become central issues for foreign
investors in Peru. Although many of the central government regulators related to foreign
investment have relatively transparent and predictable procedures, delays and the lack
of predictability in the rulings of these institutions, have been impediments to doing
business in Peru.
The Securities Market Superintendence (SMV) maintains the company registry and
supervises the securities market. ProInversion handles privatization and most
concessions. INDECOPI handles competition policy, bankruptcy, and intellectual
property matters. The Superintendence of Banking and Insurance (SBS) regulates
banks, insurance companies, and private pension funds, including determination of
whether potential market entrants qualify to operate in Peru.
When the GOP privatized state-owned monopolies in the areas of telecommunications,
energy, and the hydrocarbons sector in the late 1990s, it also established regulatory
institutions to oversee the new private sectors – among them OSIPTEL for telecom, and
OSINERGMIN for energy, mining and hydrocarbons – the GOP created the
Environmental Enforcement Organism (OEFA) in 2008 which is progressively taking
over the environmental enforcement functions previously held by OSINERGMIN and
other agencies.
In 2010, OSIPTEL established a “glide path” plan to continuously lower the mobile
termination rates for all carriers by October 2013. This created a more favorable and
competitive environment for the smaller carriers. In J uly 2014, OSIPTEL introduced
number portability—which allows consumers to keep their mobile phone number despite
changing service providers—and cut interconnection fees by 68% to spur competition
and facilitate new entrants into the market. OSIPTEL also lowered costs for rural
operators to facilitate mobile penetration. Since these changes, over 200,000 Peruvian
consumers have switched providers.
U.S. and other non-Peruvian firms and investors have complained about the
reinterpretation of rules and the imposition of disproportionate fines coupled with
usurious interest charges on unpaid taxes or fines by the Peruvian tax agency, SUNAT.
U.S. firms and other investors allege SUNAT's capricious behavior and reinterpretation
of tax laws are often contrary to the spirit of the law and intent of government policies,
thereby complicating and making normal business operations costlier. This situation may
be at least be partly explained by the fact that the remuneration of SUNAT employees is
partially determined by the theoretical tax liability they assess in audits. The U.S.
Embassy continues to hear that this perverse incentive leads to overzealous tax
collection practices.
Businesses point out that SUNAT's retroactive reinterpretation of regulations and laws,
levying of disproportionate fines, usurious interest rates on the alleged assessments and
below market interest rates on payable tax rebates, lengthy resolution processes, and
initiation of full company audits when companies request a refund or legal revaluation of
assets for depreciation purposes, create additional investment and trade barriers. In one
case, a U.S. firm requested, by clerical mistake, an improper drawback of USD 1,345,
only to face SUNAT fines of USD 645,000. Although the case was resolved, legislation
now allows for an independent tax tribunal to serve as a check on alleged abuses by
SUNAT. However, when SUNAT exercises its right of appeal against unfavorable tax
tribunal rulings, the disputed assessments and liabilities on companies’ balance sheets
are prolonged. As a balance to this tendency, a tax ombudsman must approve SUNAT's
request to appeal adverse tax tribunal decisions. At times, the ombudsman has also
acted to end unwarranted litigation of disputed assessments. For example, in 2005, a
U.S. company won long-standing tax cases against SUNAT as a result of these
improvements. Nevertheless, the U.S. Embassy has heard of cases of companies
deciding to pay long-disputed assessments in order to eliminate liabilities from their
books. A conspicuous case was that of a Canadian bank, which in late-February 2014
decided to pay under protest approximately USD 170 million in tax liabilities, most of it
accumulated interest. In recent years a number of companies have opened international
arbitration cases against the GOP.
Businesses also complain about high health insurance and pension tax rates and a
number of labor laws. Businesses state these tax and labor policies increase labor costs
and hinder investment capital flows. The lack of a U.S.-Peru treaty on double taxation is
also a disincentive to foreign investment.
Efficient Capital Markets and Portfolio Investment Return to top
Credit is allocated on market terms and the banking industry in Peru is generally
considered competitive in offering services to business customers. Private pension funds
have keenly competed in recent years with financial companies for bonds issued locally
by companies and the GOP. These entities compete because the supply of local
securities is insufficient given the small size of the market. Under the PTPA, U.S.
financial service suppliers have full rights to establish subsidiaries or branches for banks
and insurance companies.
The private sector has access to a variety of credit instruments. In 2013, firms placed
USD 1.75 billion on the local bond market, 3.7% below the year earlier. Mutual funds
managed USD 5.9 billion in December 2013, a large 16.3% decrease from the
December 2013 level. Private pension funds managed a total of USD 36.2 billion in
December 2013. (Full 2014 Statistics are not yet available.)
The Securities Market Superintendence (SMV) is the GOP entity charged with regulating
the securities and commodities markets. Following the IMF’s recommendations, the
GOP passed a law reforming the SMV’s predecessor, CONASEV (the National
Commission for the Supervision of Companies, Securities and Exchanges). SMV’s
mandate includes controlling securities market participants, maintaining a transparent
and orderly market, setting accounting standards, and publishing financial information
about covered companies. SMV requires stock issuers to report events that may affect
the stock, the company, or any public offerings. This requirement promotes market
transparency, and aims to prevent fraud. Trading on insider information is a crime, with
some reported prosecutions in past years. One case at the end of 2010 involved three
(government-owned health care provider) ESSALUD employees, a stock brokerage firm
and an employee of the stock brokerage firm. CONASEV fined these individuals and the
stock brokerage firm, and their cases are moving through the Peruvian court system.
SMV must vet all firms listed on the Lima Stock Exchange (Bolsa de Valores de Lima) or
the Public Registry of Securities. SMV also maintains the Public Registry of Securities
and Stock Brokers. SMV is studying ways to improve the regulatory system to
encourage and facilitate portfolio investment.
The banking system is considered generally sound, thanks to lessons learned during the
1997-1998 Asian crisis, and continues to revamp operations, increase capitalization, and
reduce costs. Under the SBS's conservative criteria, non-performing loans rose in the
last two years, to 2.14% of total loans as of December 2013, yet down from a high of
11% in early 2001. Able bank supervision and strong GDP growth over the last decade
through 2014 also helped banks weather the 2008-2009 global financial crisis with little
trouble.
Economic opening since the 1990s, coupled with competition, has led to banking sector
consolidation. Seventeen commercial banks comprise the system, with assets
accounting for 89.9% of Peru’s financial system. Three banks account for 72.5% of local
loans and deposits among commercial banks. Of USD 108.9 billion in total banking
assets at the end of December 2014, assets of the three largest commercial banks
amounted to USD 62.6 billion. As of December 2013, foreigners had significant shares in
thirteen banks, of which they were majority owners of eleven (including one of the
country's largest ones) and operator of one of the largest commercial banks. Notably,
two of the four banks that are majority-owned by residents account for 45.1% of
commercial banks’ assets.
Peru’s financial system has 12 specialized institutions ("financieras"), 33 thriving micro-
lenders and savings banks (although several large banks also lend to small enterprises),
two leasing institutions, two state-owned banks, and one state-owned development
bank. In 2014, the Economist Intelligence Unit again ranked Peru number one worldwide
on microfinance business environment for the sixth consecutive year because of its
sophisticated legal and regulatory framework and competitive microfinance sector.
Nevertheless, Peru’s over 150 savings and loan cooperatives operate in an environment
almost devoid of government oversight.
Peruvian law and regulations do not authorize or encourage private firms to adopt
articles of incorporation or association to limit or restrict foreign participation. There are
no private or public sector efforts to restrict foreign participation in industry standards-
setting organizations. However, larger private firms often use "cross-shareholding" and
"stable shareholder" arrangements to restrict investment by outsiders -- not necessarily
foreigners -- in their firms. As close families or associates generally control ownership of
Peruvian corporations, hostile takeovers are practically non-existent. In the past few
years, several companies from the region, China, North America, and Europe have
actively been buying local companies in power transmission, retail trade, fishmeal
production, and other industries.
Competition from State Owned Enterprises Return to top
Several electricity, water and sewage, bank, and oil companies remain state-owned and
state-operated. The most notable area of SOE activity pertains to the petroleum sector,
where the state-owned petroleum company PetroPeru is an oil refiner and operator of an
underutilized oil pipeline. Congress passed several laws since which purport to
strengthen PetroPeru and free it from bureaucratic controls, so that it can enter into all
stages of the petroleum and petrochemical sectors, especially upstream. In 2008,
PetroPeru took center stage in a corruption scandal related to oil and gas concessions.
The scandal led to the resignation of the Minister of Energy and Mines and the
PetroPeru President and forced the GOP to implement a number of changes in
PetroPeru’s management. Over the last two decades, PetroPeru has experienced
significant attrition in managerial and technical expertise. This, coupled with its limited
financial resources, cast into doubt the company’s ability to implement its long-held
plans to expand and upgrade its aging Talara refinery – which continues to produce dirty
gasoline and diesel fuel, a situation the government permits by not enforcing regulatory
standards. Limited resources and expertise also downplay expectations following
repeated announcements from its leadership regarding entrance to upstream, and
participation in a proposed gas pipeline and petrochemical complex in southern Peru.
PetroPeru’s planned return to oil production through participation in tenders of oil
producing blocks that the GOP was set to auction, with a requirement to partner with
PetroPeru, remains uncertain. Limited or no interest shown by oil companies in these
auctions and in several exploration blocs’ pending auctions, coupled with changes at the
Ministry of Energy and Mines, have left those plans undefined.
Significant SOEs have audited accounts that are made public. In addition, the accounts
are monitored by a board of directors. The majority of the country’s SOEs is corporately
managed by FONAFE and is listed on FONAFE’s website along with their audited
accounts
(http://www.fonafe.gob.pe/portal/empresas?accion=transparenciaNew&m=6&Contenidoi
d=32). Petroperu, which is managed independently from FONAFE, publishes a report
that includes the audited financial statements of the company, such as those of
comprehensive income, changes in equity, and cash flows, as well as a summary of
significant accounting policies and other explanatory notes included in Petroperu’s
financial statements. The report is produced annually and is publicly available on
Petroperu’s website (http://www.petroperu.com.pe/transparencia/ley27806.asp).
Corporate Social Responsibility Return to top
Peruvian businesses participate in Corporate Social Responsibility (CSR) programs,
primarily on a voluntary basis. For the energy and mining sector, certain regulations do
exist to promote social responsibility. Supreme Decree No. 042-2003-EM promotes
social responsibility within the mining sector, encouraging local employment
opportunities, support to communities’ projects, development activities, and purchase of
local goods and services. The decree requires mining companies to publish an annual
report on sustainable development activities. The Ministry of Energy and Mines has
prepared a guidebook for community relations, as well as public information on social
measures related to the mining and energy sectors. In February 2011, INDECOPI
adopted the Peruvian Technical Regulation of Social Responsibility ISO 26000 that
serves as a voluntary guide to CSR activities.
On February 15, 2012, Peru was listed as a compliant country under the Extractive
Industries Transparency Initiative (EITI), as the GOP and extractive industries openly
publish all company payments and government revenues from oil, gas, and mining. Peru
is the only EITI-compliant country in Latin America.
Peru continues to be recognized for its 2013-2017 National Strategy to Combat Forced
Labor. Its plan emphasizes the state’s role to protect and promote labor rights.
Simultaneously, it strives to build capacity and empower vulnerable groups to transform
their environment and enforce their rights. The plan addresses both medium and long-
term multi-sector plans to eliminate or reduce conditions that enable forced labor.
Despite these efforts, the government did not effectively enforce labor laws in all cases.
The exploitation of child labor, particularly in informal sectors; forced labor; and
employers engaging in antiunion practices remain significant problems.
Political Violence Return to top
Although political violence against investors is rare, protests, sometimes violent, have
taken place in or near communities with extractive industry operations. Environmental
concerns were often the cited pretext. Protestors often object to the fact that
environmental impact assessments are reviewed by the Ministry of Energy and Mines,
rather than the Ministry of Environment, when in fact, the Ministry of Environment along
with other national agencies do participate in assessment reviews. In many cases,
protestors sought public services not provided by the government. Ideological opposition
to foreign mining firms, not opposition to mining itself, often leads to protest in
communities incited by NGOs. In some cases, organizers from outside the local
community are brought in to foment protests against the companies. Groups blocked
roads and an airport in 2014 to protest extractive industry operations; hydroelectric
projects; restrictions on informal gold mining, gas exports, and the Government's coca
eradication policies. In several of these protests, police and civilians were injured or
killed. As of May 2015, the Ombudsperson’s Office reported 629 conflicts in Peru in
2015; 67% of these conflicts involve socio-economic concerns, usually linked to
extractive industries.
Politically motivated movements at times have opposed large extractive projects. In
some cases, these movements have been successful in delaying large investments, as
occurred in the USD 4.8 billion Conga mine project in Cajamarca in August 2012. In
other cases, protests have stopped such investments entirely.
The National Office of Dialogue and Sustainability is actively engaged in mitigating social
conflict connected to the extractive industry in Peru. This office addresses conflict in a
broader community development context, rather than only responding to social conflicts
after they have already erupted. To this end, the government is providing more
education, infrastructure, and health care services in areas where extractive industry
projects are planned or under development, which will increase government presence
and reduce potential for conflict in those (historically underserved and often remote)
areas. Peru’s Prior Consultation Law was signed in 2011, and its implementing
regulations were approved in 2012. The law requires the GOP to consult with indigenous
communities before enacting any legislation, administrative measures, or development
projects that could affect communities’ rights of territorial demarcation. There have been
several successful prior consultation processes related to the extractive industry, but the
law remains controversial. Critics believe it creates burdensome processes and results
in delays. The industry association Peruvian Society of Hydrocarbons alleges that work
on 30 oil exploration blocks is paralyzed due to lengthy permit processing. The National
Society of Mining, Electricity and Petroleum (SNMPE) and the government have become
involved in assisting local governments to access the extractive industry “canon” (tax
revenue-sharing scheme with funding for public works projects) as a way to both
stimulate local development and prevent conflicts. Although these efforts have been
effective in some mining regions, in others, conflicts have continued or expanded.
Violence remains a concern in coca-growing regions. The government reported that
through October 2014, the Shining Path conducted 18 terrorist acts, resulting in the
death of two soldiers and two civilians, as well as injuries to six soldiers, seven civilians,
and one police officer in the Apurimac, Ene, and Mantaro River Valleys (VRAEM)
emergency zone, which includes parts of Ayacucho, Cusco, Huancavelica, Huanuco,
and J unin regions. A separate emergency zone in the Upper Huallaga Valley (UHV)
includes parts of San Martin and Ucayali regions. There were reports that the Shining
Path abducted children to work for the terrorist organization during the year. The Humala
government continues the longstanding practice of authorizing separate 60-day states of
emergency in two areas where the Shining Path operates – the Apurimac, Ene, and
Mantaro River Valleys (VRAEM) and the Upper Huallaga Valley. On September 11,
2014 the GOP declared a new emergency zone in the Loreto region due to drug
trafficking activity. The state of emergency authorization suspends some civil liberties
and gives the security forces additional authority to maintain public order.
There is little government presence in the remote coca-growing zones of the VRAEM
and Upper Huallaga Valley, although significant ramp-up of government presence and
programs is underway. The U.S. Embassy in Lima restricts visits by official personnel to
these areas because of the threat of violence by narcotics traffickers and columns of the
Shining Path. Information about insecure areas and recommended personal security
practices can be found athttp://www.osac.gov orhttp://travel.state.gov.
Corruption Return to top
Corruption, including bribery, raises the costs and risks of doing business. Corruption
has a corrosive impact on both market opportunities overseas for U.S. companies and
the broader business climate. It also deters international investment, stifles economic
growth and development, distorts prices, and undermines the rule of law.
It is important for U.S. companies, irrespective of their size, to assess the business
climate in the relevant market in which they will be operating or investing, and to have an
effective compliance program or measures to prevent and detect corruption, including
foreign bribery. U.S. individuals and firms operating or investing in foreign markets
should take the time to become familiar with the relevant anticorruption laws of both the
foreign country and the United States in order to properly comply with them, and where
appropriate, they should seek the advice of legal counsel.
The U.S. Government seeks to level the global playing field for U.S. businesses by
encouraging other countries to take steps to criminalize their own companies’ acts of
corruption, including bribery of foreign public officials, by requiring them to uphold their
obligations under relevant international conventions. A U. S. firm that believes a
competitor is seeking to use bribery of a foreign public official in international business,
for example to secure a contract, should bring this to the attention of appropriate U.S.
agencies, as noted below.
U.S. Foreign Corrupt Practices Act: In 1977, the United States enacted the Foreign
Corrupt Practices Act (FCPA), which generally makes it unlawful for U.S. persons and
businesses (domestic concerns), and U.S. and foreign public companies listed on stock
exchanges in the United States or which must file periodic reports with the Securities
and Exchange Commission (issuers), to offer, promise or make a corrupt payment or
anything of value to foreign officials to obtain or retain business. The FCPA also applies
to foreign firms and persons who take any act in furtherance of such a corrupt payment
while in the United States. In addition to the anti-bribery provisions, the FCPA contains
accounting provisions applicable to public companies. The accounting provisions require
issuers to make and keep accurate books and records and to devise and maintain an
adequate system of internal accounting controls. The accounting provisions also prohibit
individuals and businesses from knowingly falsifying books or records or knowingly
circumventing or failing to implement a system of internal controls. In order to provide
more information and guidance on the statute, the Department of J ustice and the
Securities and Exchange Commission published A Resource Guide to the U.S. Foreign
Corrupt Practices Act, available in PDF at:http://www.justice.gov/criminal/fraud/fcpa/guidance/. For more detailed information on
the FCPA generally, see the Department of J ustice FCPA website at:http://www.justice.gov/criminal/fraud/fcpa/.
Other Instruments: It is U.S. Government policy to promote good governance, including
host country implementation and enforcement of anti-corruption laws and policies
pursuant to their obligations under international agreements. Since enactment of the
FCPA, the United States has been instrumental to the expansion of the international
framework to fight corruption. Several significant components of this framework are the
Convention on Combating Bribery of Foreign Public Officials in International Business
Transactions (negotiated under the auspices of the OECD), the United Nations
Convention against Corruption (UN Convention), the Inter-American Convention against
Corruption (OAS Convention), the Council of Europe Criminal and Civil Law
Conventions, and a growing list of U.S. free trade agreements. This country is party to
[add instrument to which this country is party].
OECD Antibribery Convention: The Antibribery Convention entered into force in
February 1999. As of J anuary 2015, there are 41 parties to the Convention, including the
United States (seehttp://www.oecd.org/corruption/oecdantibriberyconvention.htm).
Major exporters China and India are not parties, although the U.S. Government strongly
endorses their eventual accession to the Antibribery Convention. The Antibribery
Convention obligates the Parties to criminalize bribery of foreign public officials in
international business transactions, which the United States has done under U.S. FCPA.
Peru is not party to this convention.
UN Convention: The UN Convention entered into force on December 14, 2005, and
there are 174 parties to it as of March 2015 (seehttp://www.unodc.org/unodc/en/treaties/CAC/signatories.html). The UN Convention
requires countries to establish criminal and other offences to cover a wide range of acts
of corruption, from basic forms of corruption such as bribery and solicitation,
embezzlement, and trading in influence to the concealment and laundering of the
proceeds of corruption. The Convention contains transnational business bribery
provisions that are functionally similar to those in the OECD Antibribery Convention and
contains provisions on private sector auditing and books and records requirements.
Other provisions address matters such as prevention, international cooperation, and
asset recovery. Peru signed this convention on December 10, 2003, and ratified the
convention on November 16, 2004.
OAS Convention: In 1996, the Member States of the Organization of American States
(OAS) adopted the first international anticorruption legal instrument, the Inter-American
Convention against Corruption (OAS Convention), which entered into force in March
1997. The OAS Convention, among other things, establishes a set of preventive
measures against corruption, provides for the criminalization of certain acts of
corruption, including transnational bribery and illicit enrichment, and contains a series of
provisions to strengthen the cooperation between its States Parties in areas such as
mutual legal assistance and technical cooperation. As of J anuary 2015, the OAS
Convention has 34 parties (seehttp://www.oas.org/juridico/english/Sigs/b-58.html) and
the follow-up mechanism created in 2001 (MESICIC) has 31 members (seehttp://www.oas.org/juridico/english/mesicic_intro_en.htm). Peru signed this convention
on March 23, 1996, and ratified the convention April 4, 1997.
Council of Europe Criminal Law and Civil Law Conventions on Corruption: Many
European countries are parties to either the Council of Europe (CoE) Criminal Law
Convention on Corruption, the Civil Law Convention on Corruption, or both. The Criminal
Law Convention requires criminalization of a wide range of national and transnational
conduct, including bribery, money-laundering, and accounting offenses. It also
incorporates provisions on liability of legal persons and witness protection. The Civil Law
Convention includes provisions on whistleblower protection, compensation for damage
relating to corrupt acts, and nullification of a contract providing for or influenced by
corruption, inter alia. The Group of States against Corruption (GRECO) was established
in 1999 by the CoE to monitor compliance with these and related anti-corruption
standards. Currently, GRECO comprises 49 member States (48 European countries and
the United States). Seehttp://www.coe.int/t/dghl/monitoring/greco/general/about_en.asp.
As of J anuary 2015, the Criminal Law Convention has 44 parties and the Civil Law
Convention has 35 (seehttp://conventions.coe.int/Treaty/Commun/QueVoulezVous.asp?CL=ENG&NT=173;http://conventions.coe.int/Treaty/Commun/QueVoulezVous.asp?CL=ENG&NT=174).
Peru is not party to this convention.
Free Trade Agreements: While it is U.S. Government policy to include anticorruption
provisions in free trade agreements (FTAs) that it negotiates with its trading partners, the
anticorruption provisions have evolved over time. The most recent FTAs negotiated now
require trading partners to criminalize “active bribery” of public officials (offering bribes to
any public official must be made a criminal offense, both domestically and trans-
nationally) as well as domestic “passive bribery” (solicitation of a bribe by a domestic
official). All U.S. FTAs may be found at the U.S. Trade Representative Website:http://www.ustr.gov/trade-agreements/free-trade-agreements. Peru has a free trade
agreement (FTA) in place with the United States, the United States-Peru Trade
Promotion Agreement (PTPA), which came into force on February 1, 2009.
Local Laws: U.S. firms should familiarize themselves with local anticorruption laws, and,
where appropriate, seek legal counsel. While the U.S. Department of Commerce cannot
provide legal advice on local laws, the Department’s U.S. and Foreign Commercial
Service can provide assistance with navigating the host country’s legal system and
obtaining a list of local legal counsel.
Assistance for U.S. Businesses: The U.S. Department of Commerce offers several
services to aid U.S. businesses seeking to address business-related corruption issues.
For example, the U.S. and Foreign Commercial Service can provide services that may
assist U.S. companies in conducting their due diligence as part of the company’s
overarching compliance program when choosing business partners or agents overseas.
The U.S. and Foreign Commercial Service can be reached directly through its offices in
every major U.S. and foreign city, or through its website at www.trade.gov/cs.
The United States provides commercial advocacy on behalf of exporters of U.S. goods
and services bidding on public sector contracts with foreign governments and
government agencies. An applicant for advocacy must complete a questionnaire
concerning its background, the relevant contract, and the requested U.S. Government
assistance. The applicant must also certify that it is in compliance with applicable U.S.
law, that it and its affiliates have not and will not engage in bribery of foreign public
officials in connection with the foreign project, and that it and its affiliates maintain and
enforce a policy that prohibits bribery of foreign public officials. Problems, including
alleged corruption by foreign governments or competitors, encountered by U.S.
companies in seeking such foreign business opportunities can be brought to the
attention of appropriate U.S. government officials, including local embassy personnel,
and reported through the Department of Commerce Trade Compliance Center “Report a
Trade Barrier” Website at tcc.export.gov/Report_a_Barrier/index.asp. Potential violations
of the FCPA can be reported to the Department of J ustice via email to
[email protected].
Guidance on the U.S. FCPA: The Department of J ustice’s (DOJ ) FCPA Opinion
Procedure enables U.S. firms and individuals and issuers to request a statement of the
J ustice Department’s present enforcement intentions under the anti-bribery provisions of
the FCPA regarding actual, prospective business conduct. The details of the opinion
procedure are available on DOJ ’s Fraud Section Website at
www.justice.gov/criminal/fraud/fcpa and general information is contained in Chapter 9 of
the publication A Resource Guide to the U.S. Foreign Corrupt Practices Act, athttp://www.justice.gov/criminal/fraud/fcpa/guidance/. Although the Department of
Commerce has no enforcement role with respect to the FCPA, it supplies general
information to U.S. exporters who have questions about the FCPA and about
international developments concerning the FCPA. For further information, see the Office
of the General Counsel, U.S. Department of Commerce, website, athttp://www.commerce.gov/os/ogc/transparency-and-anti-bribery-initiatives. More general
information on the FCPA is available at the websites listed below.
Exporters and investors should be aware that generally all countries prohibit the bribery
of their public officials, and prohibit their officials from soliciting bribes under domestic
laws. Most countries are required to criminalize such bribery and other acts of
corruption by virtue of being parties to various international conventions discussed
above.
Public sector corruption, including bribery of public officials, remains a challenge for U.S.
firms operating in Peru. It is illegal in Peru for a public official or employee to accept any
type of outside remuneration for the performance of his or her official duties. Peru has
ratified both the UN Convention Against Corruption and the Organization of American
States Inter-American Convention Against Corruption. Peru is not a member of the
Organization of Economic Cooperation and Development (OECD). It has not signed the
OECD Convention on Combating Bribery, although it has participated as an observer in
the Working Group. The Contraloría General is the responsible government agency for
combating corruption.
U.S. firms have reported problems directly resulting from corruption, usually in
government procurement processes and in the judicial sector, with defense and police
procurement generally considered among the most problematic. This is in spite of
PTPA’s stipulations and of Peru’s Government Procurement Law (Legislative Decree
No. 1017, DL 1017, one of several laws passed with the specific intention to implement
PTPA). Transparency International ranked Peru 85th out of 177 countries in its 2014
Corruption Perceptions Index, down from 83rd in 2013. While anti-corruption efforts have
been a stated priority of both the Garcia and Humala governments, in practice most
resources to date have been directed at investigating extensive corruption during the
Fujimori era (1990-2000). Former Presidents Garcia and Toledo and several sitting
members of Congress are also under investigation for corrupt practices. The Peruvian
armed forces and national police continue to prefer to execute government-to-
government procurements (i.e., purchases by a GOP agency from a foreign government
agency or government-owned company). In J uly 2012, the Government Procurement
Supervisory Agency ruled that government-to-government procurements do not fall
under the government procurement law (DL 1017). An article in the 2013 Budget Law
also specified that procurements by the GOP from another state are not under the scope
of DL 1017. Since then, there have been a number of local media reports of overvalued
prices in several government-to-government purchases, of goods or services for the
police or the armed forces. Cases include purchases of a satellite, planes, helicopters,
and technical assistance training. Overvaluation has apparently occurred even in the
case of open tenders, as in the notorious recent case of the purchase of 591 binoculars
by the Interior Ministry for the National Police in December 2013. El Comercio, Peru’s
paper-of-record, published a report in J anuary 2014 alleging the Interior Ministry bought
591 binoculars at a price more than ten times the market rate. In early-March 2014, local
media reported that the Public Prosecutor’s Office will investigate a technical assistance-
training procurement made in 2009 by the Armed Forces J oint Command. This probe
comes after the Comptroller General found irregularities and circumstantial evidence of
collusion, embezzlement and other crimes.
Anti-Corruption Resources
Some useful resources for individuals and companies regarding combating corruption in
global markets include the following:
• Information about the U.S. Foreign Corrupt Practices Act (FCPA), including A
Resource Guide to the U.S. Foreign Corrupt Practices Act, translations of the
statute into numerous languages, documents from FCPA related prosecutions and
resolutions, and press release/1are available at the U.S. Department of J ustice’s
Website at:http://www.justice.gov/criminal/fraud/fcpa andhttp://www.justice.gov/criminal/fraud/fcpa/guidance/
• The U.S. Securities and Exchange Commission FCPA Unit also maintains an FCPA
website, at:https://www.sec.gov/spotlight/fcpa.shtml. The website, which is updated
regularly, provides general information about the FCPA, links to all SEC
enforcement actions involving the FCPA, and contains other useful information.
• General information about anticorruption and transparency initiatives, relevant
convention/1and the FCPA, is available at the Department of Commerce Office of
the General Counsel website:http://www.commerce.gov/os/ogc/transparency-and-
anti-bribery-initiatives
• The Trade Compliance Center hosts a website with anti-bribery resources, athttp://tcc.export.gov/Bribery. This website contains an online form through which
U.S. companies can report allegations of foreign bribery by foreign competitors in
international business transactions
• Additional country information related to corruption can be found in the U.S. State
Department’s annual Human Rights Report available athttp://www.state.gov/g/drl/rls/hrrpt/.
• Information about the OECD Antibribery Convention including links to national
implementing legislation and country monitoring reports is available
at:http://www.oecd.org/corruption/oecdantibriberyconvention.ht/1See also
Antibribery Recommendationhttp://www.oecd.org/daf/anti-
bribery/oecdantibriberyrecommendation2009.htm and Good Practice Guidance
Annex for companies:http://www.oecd.org/daf/anti-bribery/44884389.pdf.
• GRECO monitoring reports can be found at:http://www.coe.int/t/dghl/monitoring/greco/evaluations/index_en.asp
• MESICIC monitoring reports can be found at:http://www.oas.org/juridico/english/mesicic_intro_en.htm
• The Asia Pacific Economic Cooperation (APEC) Leaders have also recognized the
problem of corruption and APEC Member Economies have developed
anticorruption and ethics resources in several working groups, including the Small
and Medium Enterprises Working Group, athttp://businessethics.apec.org/, and the
APEC Anti-Corruption and Transparency Working Group, athttp://www.apec.org/Groups/SOM-Steering-Committee-on-Economic-and-
Technical-Cooperation/Working-Groups/Anti-Corruption-and-Transparency.aspx.
For more information on APEC generally,http://www.apec.org/.
There are many other publicly available anticorruption resources which may be
useful, some of which are listed below without prejudice to other sources of
information that have not been included. (The listing of resources below does not
necessarily constitute U.S. Government endorsement of their findings.)
• Transparency International (TI) publishes an annual Corruption Perceptions Index
(CPI). The CPI measures the perceived level of public-sector corruption in
approximately 180 countries and territories around the world. The CPI is available
at:http://www.transparency.org/research/cpi/overview. TI also publishes an annual
Global Corruption Report which provides a systematic evaluation of the state of
corruption around the world. It includes an in-depth analysis of a focal theme, a
series of country reports that document major corruption related events and
developments from all continents, and an overview of the latest research findings
on anti-corruption diagnostics and tools. Seehttp://www.transparency.org/research/gcr.
• The World Bank Institute’s Worldwide Governance Indicators (WGI) project reports
aggregate and individual governance indicators for 215 economies over the period
1996-2013, for six dimensions of governance (Voice and Accountability, Political
Stability and Absence of Violence, Government Effectiveness, Regulatory Quality,
Rule of Law, and Control of Corruption). See httphttp://info.worldbank.org.World
Bank Business Environment and Enterprise Performance Surveys may also be of
interest and are available at:http://data.worldbank.org/data-catalog/BEEPS. See
also the World Bank Group Doing Business reports, a series of annual reports
measuring regulations affecting business activity, available at:http://www.doingbusiness.org/
• The World Economic Forum publishes every two years the Global Enabling Trade
Report, which assesses the quality of institutions, policies and services facilitating
the free flow of goods over borders and to their destinations. At the core of the
report, the Enabling Trade Index benchmarks the performance of 138 economies in
four areas: market access; border administration; transport and communications
infrastructure; and regulatory and business environment. Seehttp://www.weforum.org/reports/global-enabling-trade-report-2014.
• Global Integrity, a nonprofit organization, publishes its annual Global Integrity
Report, which typically assesses anti-corruption and good governance mechanisms
in diverse countries. (The 2012 and 2013 reports covered a small number of
countries as the organization focused on re-launching a modernized methodology
in mid-2014.) For more information on the report, seehttps://www.globalintegrity.org/global-report/what-is-gi-report/.
Bilateral Investment Agreements Return to top
The PTPA eliminated the need for a bilateral investment agreement between the United
States and Peru. Peru also has free trade agreements with Canada, Chile, China,
Colombia, Costa Rica, the European Free Trade Association (which includes Iceland,
Liechtenstein, Norway and Switzerland), Honduras, J apan, Mexico, Panama, Singapore,
South Korea, and Thailand. It has Framework Agreements with MERCOSUR countries
(Argentina, Brazil, Paraguay, Uruguay, and Venezuela). It has a partial preferential
agreement with Cuba. More agreements have been signed and are awaiting full
implementation, including with Guatemala, and the Pacific Alliance (with Mexico,
Colombia, and Chile).
Peru has bilateral investment agreements in force with Argentina, Bolivia, Canada,
Chile, China, Colombia, Costa Rica, Czech Republic, Denmark, Ecuador, El Salvador,
Finland, Italy, Korea, Netherlands, Norway, Paraguay, Portugal, Romania, Spain,
Sweden, Switzerland, Thailand, United Kingdom, Venezuela, and the European Union.
OPIC and Other Investment Insurance Programs Return to top
The Overseas Private Investment Corporation (OPIC), an independent U.S. Government
agency, offers medium-to-long-term financing and political risk insurance. From 2010
thru 2014, OPIC supported solar power plants, consumer lending, operation and
expansion of retail stores, microfinance, installation/operation of stereotactic
radiosurgery equipment, consulting services, export services, import-export logistical
services, and portfolio expansion of SME, micro-credit and consumer loans, in the form
of commitments totaling more than USD 21 million.
Because of the free convertibility of currency, the U.S. Embassy purchases Peruvian
currency for expenses on an as-needed basis at the market exchange rate. The USD
averaged PEN 2.84/USD in 2014, up from 2.75 per dollar in 2013. Peru is a member of
the Multilateral Investment Guarantee Agency.
It is unlikely that the GOP would either devalue or revalue the Nuevo Sol. The foreign
exchange market mostly operates freely. However, the Peruvian BCR intervenes in the
foreign exchange market to prevent significant exchange rate variations – at times day
after day. To many observers, this regime has succeeded in avoiding traumatic foreign
exchange adjustments to the economy.
Labor Return to top
Labor is abundant, although several large investment projects in recent years led to
localized shortages of highly skilled workers in some fields. While the legal framework to
uphold international labor standards is well-defined, the GOP did not effectively enforce
the law in all cases. Mining sector contacts praise the technical knowledge and
professional dedication of Peruvian engineering graduates. Since the 1960s, the number
of jobs created by the Peruvian economy was consistently below the number of new
entrants to the labor market. The situation meant underemployment or seeking work in
the informal economy. According to the National Bureau for Statistics (INEI), 74.3% of
the labor force is informal:http://www.nytimes.com/aponline/2015/03/18/us/politics/ap-lt-
oas-secretary-general.html?_r=0.
The statutory monthly minimum wage is PEN 750/month (approximately USD 242). INEI
estimated the poverty line to be PEN 292/month (USD 92) per person, although it varied
by region due to different living costs. The Ministry of Labor (MOL) enforces the
minimum wage only in the formal sector. Many workers in the unregulated informal
sector, most of them self-employed, make less than the minimum wage. Wages are
sometimes higher than U.S. wages in the mining sector for management positions and
consulting services. Workers in Peru are paid by the month, not by the year. Some
workers, like formal miners, are highly paid and also (per statute) receive a share of
company profits up to a maximum total annual amount of 18 times their base monthly
salary. Current labor law provides for a 48-hour work week and one day of rest, and
requires companies to pay overtime for more than eight hours of work per day and
additional compensation for work at night. Noncompliance with the law is a punishable
infraction. There is no prohibition on excessive compulsory overtime.
A 2008 law reduced severance pay and bonuses by 50%, and paid annual vacation to
15 days for small business workers. Workers readily sacrifice these and other benefits in
exchange for regular employment. Another 2008 law gave micro-enterprise workers
social security and pensions.
Peruvian labor law requires that employees provide advance notice to the MOL before
holding a strike, with the new legislation not being as permissive as before. According to
the MOL, 95 strikes took place in the private sector in 2014, just 1.1% above 2013, but
person-hours lost almost doubled, for a total of 3.153 million work hours. Unions in what
the government determines are “essential public services” are permitted to call a strike
but must provide 10 working days’ notice, receive the approval of the MOL, be approved
by a simple majority of workers, and provide a sufficient number of workers during a
strike to maintain operations, as jointly determined by the union and labor authorities on
an annual basis. As of September 2014, the MOL registered 53 total strikes, 48 of which
were declared illegal. According to labor leaders permission to strike was difficult to
obtain, in part because the MOL feared harming the economy. The MOL justified its
decisions by citing failure of unions to fulfill the legal requirements necessary to strike.
On J anuary 15, 2010, Congress adopted a new labor procedure law (No. 29497) to
improve the efficiency of resolving labor disputes. The law requires that labor conflicts be
resolved in less than six months, allows unions or their representatives to appear in
court on behalf of workers, requires proceedings to be conducted orally and video-
recorded, and relieves the employee from the burden of proving an employer-employee
relationship. On November 5, 2012, the Lima J udicial District began implementing the
labor procedure law. At year’s end, it was in effect in at least 25 of the 31 judicial districts
in Peru.
In J uly 2014 President Humala signed labor reforms to the Occupational Safety and
Health (OSH) Law and inspection law. These changes allow employers to outsource the
management of health and safety to third-party service providers. Employers are now
responsible for conducting one health exam every two years, rather than every year,
which labor NGOs and unions were concerned leaves short-term contracted workers
exposed to industrial illness. These reforms narrow the justification for a criminal penalty
to only those cases where employers have “deliberately” violated safety and health laws
and where labor authorities have previously notified employers who have chosen not to
adopt measures in response to a repeated infraction. Labor experts and NGOs
expressed concern about what they considered an unreasonably high threshold for
holding employers accountable for workplace injuries and for not maintaining health and
safety standards. The law reduces the sentence for employers found guilty of health and
safety violations from four-to-eight years’ to one-to-four years’ imprisonment. In the case
of a serious or fatal accident where a worker is found to be solely responsible for
noncompliance with OSH rules, the employer is exempted from responsibility.
Six percent of the labor force in the private sector was organized in 2014, with
unionization highest in electricity, water, construction, and mining (from 39% to 22%)
and generally low in the rest of economy. Unemployment in Lima officially stood at
6.9%% during the first quarter of 2014. A 2012 GOP survey showed that 41.1% of
Lima's labor force was underemployed in the same period (versus 58.3% in the same
period of 2011). The average nominal monthly salary increased 8.0% year-on-year in the
fourth quarter of 2013, INEI reported. The ILO’s Global Wage Report 2012/2013
released in December 2012 stated that average real wages in Peru grew at over 3% per
annum between 2004 and 2011.
Labor laws have become more inflexible in the last ten years, making labor relatively
more expensive. A law passed in 2008 created more restrictions on outsourcing and
subcontracting, made the contracting company more responsible for the actions of its
subcontracted company, and created a national registry of contracting companies. The
PTPA requires Peru to respect the ILO-defined core labor rights of its workers. In
J anuary 2010, the GOP and U.S. Government established the bilateral Labor Affairs
Council as mandated in Article 17.5 of the PTPA.
According to labor leaders, the current labor law has weakened unions in part because
companies create competing unions that are seen as more favorable to management.
Workers in probation status or on short-term contracts are not eligible for union
membership. Bargaining agreements are considered contractual agreements, valid only
for the life of the contract. Productivity provisions must be included in any collective
bargaining agreement. The amount of time union officials may devote to union work is
limited to 30 days per year. Unless there is a pre-existing labor contract covering an
occupation or industry as a whole, unions must negotiate with each company
individually. The government did not effectively enforce the law in all cases. Penalties
for violations of freedom of association and collective bargaining exist, but were rarely
enforced. Workers faced prolonged judicial processes and lack of enforcement following
trade union activity-related dismissals. For instance, NGOs reported that emblematic
cases of labor arbitration dating from 2013 remained in limbo, with the implementation of
arbitrators’ decisions delayed by ongoing judicial appeals processes.
In practice, workers faced some challenges in exercising their rights of freedom of
association and collective bargaining. Unions were generally independent of government
and political parties. Employers continued to dismiss workers for exercising the right to
strike. Dismissal of striking workers and delays in reinstatement of these workers, in both
legal and illegal strikes, was the main tactic used by employers to dissuade workers from
going on strike. Labor leaders and the ILO argue that current labor laws erode labor
protections and encourage outsourcing in ways that undercut union activity.
Either unions or management can request binding arbitration in contract negotiations.
Strikes can be called only after approval by a majority of all workers (union and non-
union), voting by secret ballot, and only in defense of labor rights. Unions in essential
public services, as determined by the government, must provide a sufficient number of
workers during a strike to maintain operations.
The GOP created in April 2014 the National Labor Superintendence (SUNAFIL, for its
Spanish acronym) and opened nine regional offices to represent the labor inspectorate
nationally.
All labor in the (very small) export processing zones (EPZs) is subcontracted. With the
exception of enjoying greater flexibility in hiring temporary labor, there are no special
laws or exemptions from regular labor laws in EPZs.
Foreign employees may not comprise more than 20% of the total number of employees
of a local company (whether owned by foreign or Peruvian persons) or more than 30%
of the total company payroll. However, under the PTPA, Peru has agreed not to apply
most of its nationality-based hiring requirements to U.S. professionals and specialty
personnel. Peru also has bilateral agreements with Spain and Argentina, for example, so
that Spaniards and Argentines working in Peru do not count as foreigners and vice
versa.
Foreign-Trade Zones/Free Ports Return to top
Peruvian law currently covers two types of trade zones: export, transformation, industry,
trade and services zones (CETICOS), and a free trade zone (ZOFRATACNA) in Tacna.
The rules and tax benefits applying to these zones are the same for foreign and national
investors. These zones have failed to attract any sizeable investment, and their
importance for Peru’s economy is negligible.
CETICOS exist at Ilo, Matarani and Paita. One CETICO is authorized in Loreto
department, but is not operational. There is concern that the GOP does not have the
proper WTO waivers to validate the CETICOS export requirement. The U.S. automotive
industry has expressed a specific concern that U.S. brands are unable to compete with
used J apanese vehicles that enter the Peruvian market duty-free through the CETICOS.
The Ministry of Transportation and Communications banned the importation of right-
hand drive vehicles in 2013, citing environmental and safety concerns. Imports of used
cars more than five years old and used buses and trucks more than two years old are
prohibited.
Foreign Direct Investment Statistics Return to top
The stock of foreign direct investment in Peru stood at USD 79.7 billion in December
2014 according to the BCR, up from USD 71.9 billion at the end of 2013. According to
the most recent data from the BCR, the largest investors in Peru are the United States,
Canada, Spain, and Chile. By industry, the main investment destinations are mining
(29%), services (24%), oil and gas (17%), manufacturing (10%), finance (13%), and
energy (6%).
U.S. foreign direct investment in Peru amounted to USD 10.9 billion in 2012, a 21.4%
increase from 2011, according to the U.S. Department of Commerce Bureau of
Economic Analysis. Of that sum, USD 4.1 billion was invested in mining, USD 1 billion in
manufacturing, and USD 319 million in wholesale trade.
Major foreign direct investments included China Minmetals Corp., Hunt Oil (U.S.),
Newmont Mining Corporation (U.S.), BHP Billiton (Australia), Cencosud Internacional
Limitada (Chile), Endesa Latinoamericana (Spain), Freeport-McMoRan (U.S.), Golds
Fields Corona (South Africa), SN Power Peru (Norway), Compania Minera Latino-
Americana (Chile), Sempra Energy (U.S.), Citibank (U.S.), Southern Peru Copper
(Mexico), Pluspetrol (Argentina), Scotiabank (Canada), Telefonica (Spain), Repsol
(Spain), Gerdau (Brazil), Anglo American (United Kingdom), Invercale (Chile), Asa
Iberoamerica (Spain), Fraport AG Frankfurt Airport Services Worldwide (Germany),
Aeropuertos Andinos del Peru (Argentina), Odebrecht (Brazil), and the Falabella Group
(Chile). When completed, China Minmetal (formerly Glencore-Xstrata)’s USD 5.2 billion
Las Bambas copper mine project in Apurimac will rank as Peru’s largest foreign direct
investment. The multi-year Hunt Oil-led investment is part of a consortium that invested
USD 3.8 billion to develop a natural gas liquefaction plant, maritime terminal, and
pipeline in southern Peru.
Peru’s direct investment abroad amounts to USD 3.9 billion, according to the CIA.
Peruvian investment in Chile, Brazil, the United States, and Bolivia comprised the vast
majority of Peru’s direct investment abroad.
Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy
Host Country
Statistical
source*
USG or international
statistical source
USG or international
Source of data
(Source of Data: BEA; IMF;
Eurostat; UNCTAD, Other)
Economic
Data
Year Amount Year Amount
Host
Country
Gross
Domestic
Product
(GDP)
(Millions
U.S.
Dollars)
2014
2013
2012
2011
2010
No data
193,214
199,608
176,727
153,710
2014
2013
2012
2011
2010
No data
202,350
203,790
181,011
157,609
http://www.worldbank.org/en/c
ountry
Foreign
Direct
Investmen
t
Host Country
Statistical
source*
USG or international
statistical source
USG or international
Source of data: BEA; IMF;
Eurostat; UNCTAD, Other
U.S. FDI in
partner
country
(Millions
U.S.
Dollars,
stock
positions)
2014
2013
2012
2011
2010
No data
No data
No data
No data
9,199
2014
2013
2012
2011
2010
No data
10,061
10,918
8,993
7,196
(BEA) click selections to
reach.
• Bureau of Economic
Analysis
• Balance of Payments
and Direct Investment
Position Data
• U.S. Direct Investment
Position Abroad on a
Historical-Cost Basis
• By Country only (all
countries) (Millions of
Dollars)
Host
country’s
FDI in the
United
States
(Millions
U.S.
Dollars,
stock
positions)
No
national
data
available
2014
2013
2012
2011
2010
No data
100
121
238
182
(BEA) click selections to reach
• Balance of Payments
and Direct Investment
Position Data
• Foreign Direct
Investment Position in
the United States on a
Historical-Cost Basis
• By Country only (all
countries) (Millions of
Dollars)
Total
inbound
stock of
FDI as %
Year
2014
2013
2012
Amount
No data
No data
No data
Year
2014
2013
2012
Amount
No data
0.356
0.310
United Nations Conference on
Trade and Development
host GDP
(calculate)
2011
2010
No data
0.253
2011
2010
0.273
0.246
* Peruvian (host country) statistical sources:http://www.mef.gob.pe/index.php?option=com_content&view=article&id=1116&Itemid=1
00233&lang=eshttp://elibrary-data.imf.org/DataReport.aspx?c=11666795&d=33061&e=171392http://www.bea.gov/international/di1usdbal.htm
Table 3: Sources and Destination of FDI
Peru, 2013
(The chart does not reflect committed investment yet to be executed, for example China
Minmetals’ Las Bambas project.)
Direct Investment from/in Counterpart Economy Data
From Top Five Sources/To Top Five Destinations (US Dollars, Millions)
Inward Direct Investment Outward Direct Investment
Total Inward 38,841 100% Total Outward 1,239 100%
United States 9,199 24% Chile 367 30%
Canada 4,710 12% United States 267 22%
Spain 3,700 10% Panama 212 17%
Panama 2,803 7% J amaica 194 16%
Cayman Islands 2,590 7% Bolivia 116 9
"0" reflects amounts rounded to +/- USD 500,000.
Source: International Monetary Fund,http://cdis.imf.org/
N/A
Contact Point at Post Return to top
Benjamin A. Yates
Economic Officer
U.S. Embassy, Av. La Encalada Cdra. 17 s/n, Monterrico, Lima 33, Peru
(51-1) 618-2410
[email protected]
Return to table of contents
Return to table of contents
Chapter 7: Trade and Project Financing
• How Do I Get Paid (Methods of Payment)
• How Does the Banking System Operate
• Foreign-Exchange Controls
• U.S. Banks and Local Correspondent Banks
• Project Financing
• Web Resources
How Do I Get Paid (Methods of Payment) Return to top
According to Banco de Crédito del Perú, Peru’s largest bank, 60% of payments for
exports to Peru are via open accounts. Open account use has increased dramatically as
Peru’s economy has strengthened since 1990. Documentary collections are the second
most common payment method, involving over 20% of total transactions. Letters of
credit account for about 16% of transactions (down from close to 100% before 1990).
Traders use other payment methods, including factoring, banker’s acceptances, and
cash in advance. Banks are the usual collectors for exports to Peru. Most credit cards
are widely accepted with American Express, MasterCard, Visa and Diners Club being
the most preferred.
The leading credit-rating agency in Peru is Dun & Bradstreet S.A.C.
(www.dnbperu.com.pe [email protected]), followed by Coface Peru
(www.coface.com.pe; [email protected]) and Informa Peru
(www.informadelperu.com/english/index.html; [email protected])
There are two credit-reporting agencies in Peru, Infocorp/Equifax (www.infocorp.com.pe;
[email protected]), and CERTICOM (www.certicom.com.pe;
[email protected]).
The Securities and Exchange Supervisory Agency (SMV, www.smv.gob.pe) lists the
following four risk-rating agencies:
- Apoyo & Asociados Internacionales S.A.C. Clasificadora de Riesgo (www.aai.com.pe)
- Clasificadora de Riesgo Pacific Credit Rating SAC (www.ratingspcr.com)
- Class & Asociados S.A. Clasificadora de Riesgo (www.classrating.com)
- Equilibrium Clasificadora de Riesgo S.A. (www.equilibrium.com.pe).
How Does the Banking System Operate Return to top
Peru’s adherence to sound fiscal and monetary policies helped the country withstand the
2008-2009 global financial crisis, China’s economic slowdown, and the ongoing situation
in Europe. Peru’s current economic situation is a far cry from that in the mid-to-late-
1990s when its banks were heavily dependent on foreign credit lines (59% of the banks’
credit sources in the first half of 1998 came from foreign credit lines). Before the 1990s
Peru suffered from chronic balance of payments and fiscal deficits, and from extremely
low foreign reserves.
As of December 2014, Peru had over US$62.31 billion of net foreign reserves. Most
banks’ funding comes from domestic deposits. The local branches of foreign banks are
strong. Private pension funds control large and growing assets. The financial system
enjoys a low delinquency ratio. Additionally, the Ministry of Economy and Finance saved
close to US$6 billion from fiscal surpluses in the 2006-2008 period. The Peruvian
government used part of these savings to address the effects of the global financial
crisis in 2008-2009 when Peru had a US$2.4 billion fiscal deficit. From 2009 to 2013,
Peru again ran a fiscal surplus because of domestic demand, high commodity prices,
exports, and foreign investment.
Trade financing is available to the Peruvian purchasers of U.S. goods and services
through their local banks. The Export-Import Bank of the United States (Ex-Im Bank)
offers loans and loan guarantees to U.S. exporters of goods and services and foreign
purchasers. The Ex-Im Bank also provides credit insurance to U.S. businesses against
non-payment by foreign buyers in the case of political or commercial risk. The Overseas
Private Investment Corporation (OPIC), an independent U.S. government agency, offers
medium- to long-term financing and political risk insurance.
Peru's financial system consists of 17 commercial banks, 33 municipal and rural savings
banks and microfinance institutions, twelve specialized institutions ("financieras"), two
leasing institutions, and four government-owned entities: the Central Bank (Banco
Central de Reserva del Peru, or BCRP), the government's financial agent (Banco de la
Nacion), development banks, the Corporación Financiera de Desarrollo (COFIDE) and
Agrarian Bank. These institutions, along with five private pension fund administrators, 14
insurance companies, and 20 miscellaneous companies, are regulated by the
Superintendence of Banks, Insurance, and Pension Funds Administrators,
(Superintendencia de Banca y Seguros, SBS). SBS policy generally follows regulatory
guidelines set by the Switzerland-based Bank for International Settlements (BIS). For
example, regulators must audit bank financial statements in compliance with
internationally accepted auditing standards. In cases not covered by BIS guidelines,
regulators use standards set by the International Financial Reporting Standards (IFRS).
In addition, SBS regulations require that at least two independent credit rating agencies,
accredited by the SBS, conduct periodic compulsory assessments for all deposit-taking
institutions. However, another 150 savings and loan corporations operate in an
environment almost devoid of government oversight.
Financial institutions allocate credit on market terms. Observers consider the banking
industry in Peru as competitive in serving customers. Private pension funds have
competed in recent years for both private and public bonds issued locally by companies
and the Peruvian government. These entities compete actively because the supply of
domestic securities is insufficient given the small size of the local market. Foreign
investors can obtain credit and float bonds on the local market. Several of them have
done so in the last few years while terms remain more competitive than terms of usual
international centers. Under the U.S.-Peru Trade Promotion Agreement (PTPA), U.S.
financial service suppliers have full rights to establish subsidiaries or branches for banks
and insurance companies.
The private sector has access to a variety of credit instruments. In 2014, primary
issuance of bonds reached $1.17 billion, 33% below the previous year. Mutual funds
managed US$6.29 billion in December 2014, a 6.5% increase from the December 2013
level. By December 2014, private pension funds managed a total of US$38.1 billion.
The banking system is considered generally sound, thanks to lessons learned during the
1997-1998 Asian Crisis. Since then, the SBS has progressively revamped operations,
increased capitalization, and reduced costs. Using conservative criteria, SBS assessed
that 2.4% of total loans were non-performing as of December 2014, down from a high of
11% in early 2001.
Customer deposits carry insurance financed by commercial bank contributions to an
insurance fund (www.fsd.org.pe). The amount changes quarterly on the basis of the
wholesale price index. For the December 2011-February 2012 period, the insurance
fund insures accounts up to US$33,930. Peruvian law empowers the BCR to act as a
"lender of last resort" in the case of a run on any commercial bank only up to the limit of
the bank's net worth, since the SBS has set liquidity requirements on deposits and other
short-term liabilities at relatively high levels. Banks must also meet liquidity requirements
on all short-term liabilities, including amounts due to banks outside of Peru. Should the
need arise (in cases of currency stress), the Central Bank has immediate access to
US$662 million in credits from the Latin American Reserves Fund (Fondo
Latinoamericano de Reservas, or FLAR), for up to one month or US$828 million for up to
three years. The Central Bank can also access other credits for longer terms. U.S.
Treasury instruments back FLAR’s assets.
Foreign-Exchange Controls Return to top
The Peruvian government eliminated foreign-exchange controls in 1990. The BCR,
however, has kept a tight lid on the amount that local private pension funds (AFP) can
invest in foreign securities. In J uly 2011 a law increased this limit to 50%, but the BCR
only raised the “operative” limit to 32% at the end of 2012. In recent years AFPs have
protested this limit on grounds that the local securities market is still small and unable to
absorb the increasing funds the AFPs manage. The BCR has signaled its readiness to
increase the ceiling in response to these concerns. Companies and individuals are free
to maintain and operate accounts in domestic and foreign currencies at local or foreign
banks.
U.S. Banks and Local Correspondent Banks Return to top
Citibank is the only U.S. bank operating in Peru. In May 2015, Citibank sold its consumer
retail division to Scotiabank and remains in Peru strictly working on commercial matters.
Most U.S. companies select a correspondent bank by soliciting a recommendation from
their U.S. bank. Most Peruvian banks have correspondent banking relationships with a
U.S. bank or banks. As of J une 2011, the commercial banks in Peru that had
correspondent banking relationships with U.S. banks include (in alphabetical order):
Banco BBVA-Continental (http://www.bbvabancocontinental.com)
Banco de Comercio (http://www.bancomercio.com)
Banco de Crédito del Perú (http://www.viabcp.com)
Banco Financiero del Peru (http://www.financiero.com.pe)
Banco Interamericano de Finanzas (http://www.bif.com.pe)
Banco Santander (http://www.santander.com.pe
Citibank (http://www.citibank.com/peru)
HSBC Bank Peru (http://www.hsbc.com.pe)
Interbank (http://www.interbank.com.pe)
Scotiabank Peru (http://www.scotiabank.com.pe)
Project Financing Return to top
Since the market reforms of the early 1990s, the private sector has carried out all major
projects, though sometimes in a Public-Private Partnership with the government. Foreign
companies have undertaken large projects with financing obtained in their countries of
registration, from multilateral development banks, and/or from local lenders. In recent
years, due to the Central Bank limit on the amount that Peruvian pension funds can
invest abroad, there has been intense local competition for lending, interest rates have
fallen below those in New York and London for creditworthy companies, and local banks
have increased their sophistication. The number of projects totally or partly financed
locally has grown since 1999. The three major banks involved in this area are Banco de
Crédito del Peru, Banco BBVA-Continental, and Citibank. Some projects, such as the
Camisea natural gas pipeline, have been partly financed by multilateral development
banks, including the IDB, World Bank, and Andean Finance Corporation (CAF). Some
projects have been structured with simultaneous or subsequent financing from the local
capital market (e.g., corporate bonds). The U.S. Ex-Im Bank is an active market
participant. There are 12 active Ex-Im Bank lenders/brokers operating in Peru. The U.S.
Commercial Service Lima office offers a list of these companies.
Web Resources Return to top
Trade Finance Guide: A Quick Reference for U.S. Exporters, published by the
International Trade Administration’s Industry & Analysis team:http://www.export.gov/tradefinanceguide/index.asp
Export-Import Bank of the United States:http://www.exim.gov
Country Limitation Schedule:http://www.exim.gov/tools/country/country_limits.html
OPIC:http://www.opic.gov
Trade and Development Agency:http://www.tda.gov/
SBA's Office of International Trade:http://www.sba.gov/oit/
USDA Commodity Credit Corporation:http://www.fsa.usda.gov/ccc/default.htm
U.S. Agency for International Development:http://www.usaid.gov
Inter-American Development Bank:http://www.iadb.org
The World Bank Group:http://www.worldbank.org
Return to table of contents
Return to table of contents
Chapter 8: Business Travel
• Business Customs
• Travel Advisory
• Visa Requirements
• Telecommunications
• Transportation
• Language
• Health
• Local Time, Business Hours and Holidays
• Temporary Entry of Materials and Personal Belongings
• Web Resources
Business Customs Return to top
In Peru business dress is conservative, meaning suits and ties for men and dresses or
suits for women are the norm. It is customary to exchange business cards at the outset
of a meeting.
Business travelers to Peru seeking appointments with U.S. Embassy Lima officials
should contact the Commercial Service in advance. The Commercial Service can be
reached by telephone at (511) 618-2442 or 434-3040; by fax at (511) 434-3041, by email
at: [email protected], or see the website athttp://export.gov/peru/.
Travel Advisory Return to top
International business travelers increasingly find a sufficient number of rooms in local
hotels, several built in recent years. General travel information, including travel warnings
and alerts, can be found at U.S. Department of State’s webpage athttp://travel.state.gov/ .
The Department of State issues Country Specific Information for all foreign countries,
including Peru, with information including the location of the U.S. embassy or consulate,
immigration requirements, health conditions, minor political disturbances, unusual
currency and entry regulations, crime and security information, and drug penalties.
Peru’s Country Specific Information can be found athttp://travel.state.gov/content/passports/english/country/peru.html/.
The U.S. Embassy in Lima also maintains a website with a wealth of information for U.S.
business travelers athttp://lima.usembassy.gov/ .
The Department of State recommends that all U.S. citizens traveling overseas enroll
their trip with the Smart Traveler Enrollment Program. Travelers may register their stay
in Peru online athttp://travel.state.gov/content/passports/english/go/step.html/.
Visa Requirements Return to top
A valid U.S. passport is required to enter Peru. Tourists staying less than 90 days do not
require a visa. It is recommended that business travelers to Peru enter as tourists
provided they are not reimbursed for their services while in Peru. However, if any
compensation is earned and paid while in Peru, a business visa is required and an
income tax declaration must be processed before departing Peru. This process takes
approximately three days.
Travelers needing a business visa should contact the Peruvian Consulate General Office
in Washington, D.C located at 1625 Massachusetts Avenue, N.W., 6th Floor,
Washington, D.C. 20036; telephone number: (202) 462-1081; website:http://www.embassyofperu.org/. There are also Peruvian consulates in Atlanta, Boston,
Chicago, Dallas, Denver, Hartford, Houston, Los Angeles, Miami, New York, Paterson,
and San Francisco.
U.S. Companies that require travel of foreign businesspersons to the United States
should be advised that security evaluations are handled via an interagency process.
Visa applicants should go to the following links.
State Department Visa Website:http://travel.state.gov/visa/
U.S. Embassy Lima Non-Immigrant and Immigrant Visas Section:http://lima.usembassy.gov/visas.html
Telecommunications Return to top
The telecommunications industry in Peru has been steadily modernized following the
privatization of the national telephone company, which was bought by Telef?nica de
España (http://www.telefonica.com.pe) in 1994. Wireless internet access is available at
many restaurants and cafes, as well as internet cafes. Telefónica has 55% of the mobile
market and 81% of the landline market. Some companies and individuals have
complained about Telefónica’s customer service and slow installation rate. Competitors
in the mobile market include Claro (http://http://www.claro.com.pe) and Chilean-owned
Entel, which acquired Nextel in April 2013. A new competitor that entered the market in
2014 is Viettel, a Vietnamese mobile operator. However, customers may use their U.S.
providers while in Peru, since most U.S. providers offer international roaming services.
For travelers to Peru, a smartphone will function if it has GSM/GPRS service. For long
distance calling there are a variety of pre-paid calling services. Long distance Direct
Access through credit card numbers for AT&T, Sprint, and MCI WorldCom is also
available. International calls can be made through Voice over Internet Protocol (VoIP)
services such as Skype or Google Talk. Major U.S. long distance calling cards can be
used at major hotels.
Transportation Return to top
Airlines
There are eighteen international passenger airlines and six companies serving routes
within Peru. Currently five U.S. airline companies offer 98 non-stop flights between the
U.S. and Peru. American Airlines offers fourteen weekly flights Lima-Miami and seven
weekly flights Lima-Dallas; Delta Airlines provides seven weekly flights Lima-Atlanta;
United Airlines services seven weekly flights Lima-Newark and seven Lima-Houston.
The low fare companies, Spirit Airlines and J et Blue, provide seven weekly flights each
Lima-Ft. Lauderdale. In addition, Avianca offers seven weekly flights to Miami while LAN
Airlines services fourteen weekly non-stop flights from Lima to Miami, seven to New
York, and fourteen to Los Angeles. Ninety-five percent of the international flights arrive
at “J orge Chavez International Airport” in Lima. Most of these airline companies also
provide cargo transportation services.
Domestic flights between Lima and larger cities in Peru are provided by LAN Peru,
Avianca, L.C. Peru, Star Peru, Peruvian Airlines, and ATSA (charter service.) Cusco is
the second busiest commercial airport within Peru with more than twenty daily flights
from Lima. Other international companies serving Peru and serving other countries are:
Aerolineas Argentinas, Aeromexico, Air Canada, Air Europa, Air France, Copa Airlines,
Iberia, KLM, LAN Airlines, Sky Airlines, Avianca, and TAM providing passenger and
cargo services through the “J orge Chavez International Airport” run by Lima Airport
Partners (LAP).
Railways
The railway system in Peru is not well-developed and is limited to 1,928.8 kilometers
formed by:
- Ferrocarril del Centro of 489.6 Km. Given in concession to Ferrovias Central Andina
and operated by Ferrocarril Central Andino (FCCA). FCCA offers cargo services of
minerals Huancayo-La Oroya-Callao and Cerro de Pasco-La Oroya-Callao and seasonal
passenger services Lima-Huancayo.
- Ferrocarril Huancayo-Huancavelica of 128.7 Km. Run by the Ministry of Transport and
Communications providing cargo and passenger services.
- Ferrocarril del Sur of 989.7 Km. Given in concession to Ferrocarril Transandino,
operates Matarani-Arequipa-Puno, J uliaca-Cusco, Cusco-Machu Picchu, and Pacha-
Urubamba. PeruRail and Inca Rai/1provide passenger roundtrip services from Cusco or
the Sacred Valley to Machu Picchu in Aguas Calientes. PeruRail also offers passenger
services between Cusco and Puno.
-Ferrocarril Tacna-Arica of 60 Km. Run and operated by the Regional Government of
Tacna providing cargo and passenger services.
- Ferrocarril Toquepala-Ilo of 217.7 Km. Operated by the private mining company,
Southern Peru Copper Corp. carries concentrates from the copper mines of Toquepala
and Cuajone to the Ilo smelter, and the Ilo refinery to the port of Ilo.
-Ferrocarril Caripa-Condorcoha of 13.6 Km. Operated by the private cement company,
Cemento Andino.
-Ferrocarril Santa-Clara-Cajamarquilla of 7.3 Km. Operated by the Brazilian company
Votorantim Metais carries concentrates from the Cajamarquilla zinc plant.
Supreme Decree No. 059-2010-MTC approved Lima’s basic metro system, the electric
system of massive transportation of Lima and Callao, which includes 5 lines. Line 1,
already in operation, consists of two routes. The first one with a length of 22.2 Km.,
connecting Villa El Salvador with Estación Grau in Cercado de Lima (downtown Lima),
and the second route recently inaugurated with 12.40 Km. long with ten stations,
connecting Cercado de Lima to El Agustino and San J uan de Lurigancho.
The second Lima Metro line of 35 Km running east to west from Ate to Callao was
recently awarded to the consortia Nuevo Metro de Lima formed by COSAPI (Peru), and
European companies Impregilo, Iridium, Vialia, Ansaldo Breda and Ansaldo STS.
Dragados, FCC and Iridium. This USD$5.6 billion investment will start its operation in
J une, 2014 and should be concluded in J une 2019. It will have 35 stations and will travel
underground through nine districts in Lima and three in Callao. Additionally a branch of 8
Km. will be built from Gambetta and Faucett avenues towards the Lima’s J orge Chavez
International Airport.
Ground transportation
Public bus and mini-bus (“combi”) ground urban and inter-city transportation is not
recommended due to a high incidence of traffic accidents in Peru and, in the case of
inter-city transportation, due to the high rate of highway bus robberies. Taxis are not
metered, so fares must be negotiated before getting into the cab, with the caveat that
few taxi drivers speak English. Taxis are plentiful and provide an inexpensive way to get
around Lima and in major cities; however it is recommended to arrange these services
with the hotels or call a radio taxi company. Non-contracted taxi services should only be
used when other options are unavailable given numerous safety concerns related to the
security and legitimacy of Peruvian taxi travel. Furthermore, given the increasingly
congested traffic conditions and security concerns, it is advisable that business travelers
contract hourly taxi service or hire cars with drivers instead of renting a vehicle. Tips are
not expected on short rides. If you lease a car with a driver, a tip is common.
Airport Taxis
Transportation to and from the airport by radio taxi or taxi service is approximately
US$25. The traveler can make transportation arrangements with the hotel before arrival
or use one of the taxi services at the Lima International airport. The two taxi services that
are considered safe and reliable are: MITSUI and CMV. These taxi services counters
can be located in the baggage and customs area of the airport. The service counter is
located on the left side before exiting the terminal glass doors. The domestic wing has
similar taxi services.
Language Return to top
Business is conducted in Spanish. Although a large number of executives in the
Peruvian business community speak English, promotional literature should be translated
into Spanish. Quechua and Aymara are spoken in the Andean highlands. High-tech
companies like Microsoft and Claro promote their products in the traditional languages.
Health Return to top
Peruvian medical facilities do not generally meet U.S. standards, although some private
clinics do. If visitors take certain precautions about food and drink, the level of risk is
manageable. Cholera, dengue, chikungunya and other infectious diseases such as
hepatitis A, B and C are present in Peru. Travelers in Peru should always consume
bottled beverages instead of potentially contaminated water. Avoid ice cubes. Fish,
shellfish, and vegetables should not be eaten unless well cooked, and all food should be
eaten while still hot. Peeled fruits are generally safe. Travelers to the jungle areas of
Peru should have up-to-date yellow fever vaccinations and malaria prophylaxis. There
are several clinics in the Lima area which have U.S.-trained personnel and up-to-date
medical equipment. Since U.S. medical insurance is not always valid outside the United
States, supplemental insurance is useful, especially to provide coverage for medical
evacuation.
Local Time, Business Hours, and Holidays Return to top
Lima is situated directly south of New York and is in the Eastern Standard time zone
(UTC minus 5), but Peru does not follow daylight savings time. Dates are written starting
with the day of the month, followed by the month and finishing with the year.
Business hours in Peru are generally from 9:00 a.m. to 6:00 p.m. Breakfast meetings are
becoming more common, and business lunches are normally scheduled between the
hours of 1:00 to 3:30 p.m. Some shops and businesses operate from 10:00 a.m. to 1:00
p.m. and from 4:00 p.m. to 8:00 p.m., although continuous operation is increasingly
common. Business offices, excluding banks, are closed on Saturdays. In the provinces,
business hours are usually from 9:00 a.m. to 1:00 p.m. and from 4:00 p.m. to 7:00 p.m.
“Peruvian time” refers to the fact that it is acceptable to arrive a half an hour late for
social functions. However, punctuality is generally expected for business visitors for
social and business functions.
Upcoming Peruvian official holidays are:
Saints Peter and Paul J une 29, 2015
Independence Day J uly 28-29, 2015
Saint Rose of Lima August 30, 2015
Battle of Angamos October 8, 2015
All Saints’ Day November 1, 2015
Immaculate Conception December 8, 2015
Christmas Day December 25, 2015
New Year’s Day J anuary 1, 2016
Holy Thursday March 24, 2016
Good Friday March 26, 2016
Labor Day May 1, 2016
The U.S. Embassy is closed on these holidays and the following U.S. holidays:
Independence Day J uly 3, 2015
Labor Day September 7, 2015
Columbus Day October 12, 2015
Veterans Day November 11, 2015
Thanksgiving November 26, 2015
Martin Luther King Day J anuary 18, 2016
President’s Day February 15, 2016
Memorial Day May 30, 2016
Temporary Entry of Materials and Personal Belongings Return to top
Goods for registered trade fairs may temporarily enter Peru by paying a bond, but
without paying duties, and following the normal documentation requirements mentioned
in Chapter 5, Section “Import Requirements and Documentation.” In addition to normal
passenger baggage, a cellular phone (and its accessories) and a laptop are allowed
without paying duties.
To access Peruvian customs information in English, refer to:http://www.sunat.gob.pe/customsinformation/index.html
Customs Guide for Travelers:http://www.sunat.gob.pe/customsinformation/passengerinformation/index.html
Customs Baggage Declaration Form, with the list of items that travelers can bring duty-
free:http://www.sunat.gob.pe/orientacionaduanera/viajeros/formatos/DDJ J -Ingles.pdf
Web Resources Return to top
U.S. Department of State’s Travel Website:http://travel.state.gov/
U.S. Department of State’s Country Specific Information for Peru:http://travel.state.gov/content/passports/english/country/peru.html
U.S. Department of State’s Consular Information Sheet for Peru:http://travel.state.gov/content/passports/english/country/peru.html
U.S. Embassy in Lima:http://lima.usembassy.gov/
U.S. Department of State’s Smart Traveler Enrollment Program (STEP):http://travel.state.gov/content/passports/english/go/step.html/
Embassy of Peru in Washington D.C.:http://www.embassyofperu.org/
U.S. Embassy in Lima, Lost and Stolen Passports:http://lima.usembassy.gov/lostpass.html/
U.S. Department of State, Visas:http://travel.state.gov/content/visas/english.html
U.S. Embassy in Lima, Visas:http://lima.usembassy.gov/visas.html/
Peruvian Customs Information in English:http://www.sunat.gob.pe/customsinformation/index.html
Return to table of contents
Return to table of contents
Chapter 9: Contacts, Market Research and Trade Events
• Contacts
• Market Research
• Trade Events
Contacts Return to top
U.S. Government
U.S. Department of Commerce (U.S. Embassy Lima, Peru)
U.S. Commercial Service Lima
3230 Lima Place
Washington, DC 20521
Ricardo J . Peláez, Commercial Counselor
Rachel Kreissl, Commercial Officer
Cesar J ochamowitz, Senior Commercial Specialist
Flora Muroi, Commercial Specialist
Gustavo Romero, Commercial Specialist
J orge Prado, Commercial Specialist
Tel.: (511) 618-2442, 434-3040 Fax: (511) 434-3041
E-mail: [email protected]
Website:http://export.gov/peru/
Trade Information Center in Washington: 1-800-USA-TRADE
www.ita.doc.gov/td/tic/
U.S. Department of Commerce (Washington, D.C.)
14th & Constitution Avenue, N.W. Room Nr. C-300
Washington, D.C. 20230
Matthew Gaisford, Peru Desk Officer
Email: [email protected]
Tel.: (202) 482-0052 Fax: (202) 482-1972
Website:http://www.commerce.gov/
U.S. Department of State (U.S. Embassy Lima, Peru)
Unit 3230
DPO AA 34031 - USA
Ambassador Brian A. Nichols
Mark Cullinane, Economic Counselor
Ernest Abisellan, Deputy Economic Counselor
Benjamin Yates, Economic Officer
Esteban Sandoval, Economic Specialist
Tel.: (511) 618-2410
Website:http://lima.usembassy.gov/econ.html
U.S. Department of State (Washington, D.C.)
2201 C Street N.W., Room 4915.
Washington, D.C. 20520
Shane Hough, Peru Desk Officer
Tel.: (202) 647-4177
Email: [email protected]
Website:http://www.state.gov
U.S Department of Agriculture/ Foreign Agricultural Service (FAS)
(U.S. Embassy Lima, Peru)
Unit 3230, Box 381
DPO AA 34031
Tel: (511) 618-2491, 434-3042 ? Fax: (511) 434-3043
Casey Bean, Regional Agricultural Counselor
Mariano J . Beillard, Regional Agricultural Attaché
Gaspar Nolte, Senior Agricultural Specialist
Alvaro Loza, Agricultural Marketing Specialist
Email: [email protected]
Websites:http://www.usda.gov andhttp://www.fas.usda.gov
Animal and Plant Health Inspection Service (APHIS)
Tel.: (511) 434-4202 Fax: (511) 434-0958
George “Andy” Ball, Senior Attaché for Chile, Ecuador, and Peru (resident in Lima)
Gladys Solano, APHIS Program Specialist
Email: [email protected]
Tel: (511) 434-4202 ? Fax: (511) 434-0958
Website:http://www.aphis.usda.gov
U.S. Department of Agriculture
1401 Independence Avenue, S.W. - MS 1071
Washington, D.C. 20250
Lisa Anderson, Western Hemisphere Area Director, Office of Foreign Service Operations
Email: [email protected]
Tel: (202) 720-3221 ? Fax: (202) 720-5183
Website:http://www.usda.gov andhttp://www.fas.usda.gov
U.S. Department of Agriculture/ Foreign Agricultural Service
Trade Assistance and Promotion Office
Tel: (202) 720-7420
Fax: (703) 875-4009
Export-Import Bank of the United States (Ex-Im Bank)
811 Vermont Avenue, N.W.
Washington D.C. 20571
Tel.: Toll Free (800) 565-EXIM (3946), Business Development (202) 565-3900
Fax: (202) 565-3931
Email: [email protected]
Website:http://www.exim.gov
Xiomara Creque, Acting Regional Director-Americas
Email: [email protected]
Tel.: (202) 565-3477 Fax: (202) 565-3931
Overseas Private Investment Corporation (OPIC)
1100 New York Avenue, N.W.
Washington, D.C. 20527
Tel.: InfoLine: (202) 336-8799 Fax: (202) 408-8959
Email: [email protected]
Website:http://www.opic.gov/
U.S. Trade and Development Agency (TDA)
1000 Wilson Boulevard, Suite 1600
Arlington, VA 22209-3901
Tel.: (703) 875-4357 Fax: (703) 875-4009
Email: [email protected]
Website:http://www.tda.gov
Isabel Sepulveda, Country Manager, Latin America and the Caribbean
Government of Peru
Presidencia del Consejo de Ministros
(Presidency of the Council of Ministers)
J r. Carabaya cdra 1, Lima
Lima – 1, Peru
Tel.: (511) 219-7000, 219-7012 Fax: (511) 219-7015
Website:http://www.pcm.gob.pe
Pedro Cateriano, President of the Council of Ministers
Ministry of Agriculture and Irrigation
Av. La Universidad 200, La Molina
Lima 12, Peru
Tel.: (511) 613-5800 Fax: (511) 432-0990, 431-0109
Website:http://www.minag.gob.pe
J uan Manuel Benites, Minister of Agriculture
Ministry of Agriculture/ Servicio Nacional de Sanidad Agraria (SENASA)
(Equivalent to APHIS)
Av. La Molina 1915, La Molina
Lima – 12, Peru
Tel.: (511) 313-3300, ext. 1800/1801 ? Fax: (511) 313-3315
Website:http://www.senasa.gob.pe
J orge Barrenechea, Director General
Ministerio de Comercio Exterior y Turismo
(Ministry of Foreign Trade and Tourism)
Calle Uno Oeste s/n Piso 17, Urb. Corpac, San Isidro
Lima 27, Peru
Tel.: (511) 513-6100 Fax: (511) 224-3362
Website:http://www.mincetur.gob.pe
Magali Silva, Minister
Ministerio de Economia y Finanzas
(Ministry of Economy and Finance)
J r. J unin 319, Piso 4
Lima 1, Peru
Tel.: (511) 311-5930 Fax: (511) 311-9906
Website:http://www.mef.gob.pe
Alonso Segura, Minister
Ministerio de Energia y Minas
(Ministry of Energy and Mines)
Av. Las Artes 260
San Borja
Lima 41, Peru
Tel.: (511) 411-1100 Fax: (511) 224-4441
Website:http://www.minem.gob.pe
Rosa Maria Ortiz, Minister
Ministerio del Ambiente
(Ministry of the Environment)
Av. J avier Prado Oeste 1140, San Isidro
Lima 27, Peru
Tel.: (511) 611-6000
Fax: (511) 611-6000 Anx 1634
Website:http://www.minam.gob.pe
Manuel Pulgar-Vidal, Minister
Ministerio de la Producción
(Ministry of Production)
Calle Uno Oeste s/n, Piso 7
Urb. Corpac, San Isidro
Lima 27, Peru
Tel.: (511) 616-2222 Fax: (511) 616-2200 x705
Website:http://www.produce.gob.pe
Piero Ghezzi Solis, Minister
Ministerio del Interior
(Ministry of the Interior)
Plaza 30 de Agosto s/n - Piso 4, San Isidro
Lima 27, Peru
Tel.: (511) 225-0202 Fax: 224-2405
Website:http://www.mininter.gob.pe
J ose Luis Perez, Minister
Ministerio de Relaciones Exteriores
(Ministry of Foreign Affairs)
Palacio Torre Tagle, Ucayali 363
Lima 1, Peru
Tel.: (511) 623-2402 Fax: (511) 623-2410
Website:http://www.rree.gob.pe
Ana María Sánchez, Minister
Ministerio de Salud
(Ministry of Health)
Av. Salaverry Cdra. 8, Piso 4
Lima 1, Peru
Tel.: (511) 315-6649 Fax: (511) 431-0093
Website:http://www.minsa.gob.pe
Aníbal Velásquez, Minister
Dirección General de Salud Ambiental (DIGESA)
Las Amapolas 350, Urb. San Eugenio, Lince
Lima 14, Peru
Tel.: (511) 442-8353 Fax: (511) 422-6404
Website:http://www.digesa.sld.pe
Monica Saavedra, Director General
Ministerio de Transportes y Comunicaciones
(Ministry of Transport and Communications)
Calle Zorritos 1301
Lima 1, Peru
Tel.: (511) 615-7603 Fax: (511) 615-7578
Website:http://www.mtc.gob.pe
J osé Gallardo Ku, Minister
Ministerio de Vivienda, Construcción y Saneamiento
(Ministry of Housing, Construction and Sanitation)
Av. Paseo de la Republica 3661, San Isidro
Lima – 27, Peru
Tel.: (511) 211-7930, 211-7934 Fax: (511) 441-7761
Website:http://www.vivienda.gob.pe
Milton Von Hesse, Minister
ProInversión
(Private Investment Promotion Agency)
Av. Paseo de la Republica 3661, Piso 9
Lima – 27, Peru
Tel.: (511) 612-1200 Fax: (511) 221-2941, 221-2942
Website:http://www.proinversion.gob.pe/english
Carlos Herrera, Executive Director
Instituto Nacional de Defensa de la Competencia y de la Protección de la Propiedad
Intelectual (INDECOPI)
(National Institute for the Defense of Competition and Protection of Intellectual Property)
La Prosa 138, San Borja
Lima – 41, Peru
Tel.: (511) 224-7800 / (511) 224 7777
Fax: (511) 224-0347 / (511) 224 7800 ext. 1715, Atención al Ciudadano
Website:http://www.indecopi.gob.pe
Hebert Tassano, President
Dirección General de Innovación, Transferencia Tecnológica y Servicios Empresariales
Calle Uno Oeste 060, Urb. Corpac, San Isidro
Tel: 616-2222 (x2484)
E-mail: [email protected]
Website:http://www.crecemype.pe
Alejandro Bernaola, Officer-in-Charge
Organismo Supervisor de la Inversión en Energía y Minería – OSINERGMIN
(Supervising Agency for Investment in Energy and Mining)
Bernardo Monteagudo 222, Magdalena
Lima – 17, Peru
Tel.: (511) 219-3400, 219-3410, 219-3411 Fax: (511) 264-0450 x.350
E-mail: [email protected]
Website:http://www.osinerg.gob.pe
J esús Tamayo, President
Organismo Supervisor de la Inversión en Infraestructura de Transporte de Uso Público –
OSITRAN
(Supervising Agency for Investment in Public Use Transport Infrastructure)
Av. Republica de Panama 3659, San Isidro
Lima – 27, Peru
Tel.: (511) 440-5115 Fax: (511) 421-4739
E-mail: [email protected]
Website:http://www.ositran.gob.pe
Patricia Benavente, President
Organismo Supervisor de la Inversión Privada en Telecomunicaciones – OSIPTEL
(Supervising Agency for Private Investment in Telecommunications)
La Prosa 136 , San Borja
Lima – 41, Peru
Tel.: (511) 225-1313, 225-2145 Fax: (511) 475-1816
Website:http://www.osiptel.gob.pe
Ruiz Gonzalo, President
Superintendencia Nacional de Servicios de Saneamiento - SUNASS
(National Superintendence of Sanitation Services)
Av. Bernardo Monteagudo 210 – 216 Magdalena del Mar
Lima – 17, Peru
Tel.: (511) 614-3180 Fax: (511) 614-3140
Website:http://www.sunass.gob.pe
Fernando Momiy Hada, President
Private Sector Associations
American Chamber of Commerce of Peru (AmCham)
Av. Victor Andres Belaunde 177, San Isidro
Lima – 27, Peru
Tel.: (511) 705-8000 Fax: (511) 705-8026
E-mail: [email protected]
Website:http://www.amcham.org.pe
Federico Cuneo, President
Aldo Defilippi, Executive Director
Confederación Nacional de Instituciones Empresariales (CONFIEP)
(Confederation of Private Enterprise Institutions)
Av. Victor Andres Belaunde 147, Edificio Real 3, Piso 4 San Isidro
Lima – 27, Peru
Tel.: (511) 415-2555 Fax: (511) 415-2566
E-mail: [email protected]
Website:http://www.confiep.org.pe
Martin Pérez, President
Gabriel Amaro, General Manager
Sociedad Nacional de Industrias (SNI)
(National Society of Industries)
Los Laureles 365, San Isidro
Lima – 27, Peru
Tel.: (511) 616-4444 Fax: (511) 442-2573 / (511) 442-2570 / (511) 616-4433
E-mail: [email protected]
Website:http://www.sni.org.pe
Andreas von Wedemeyer, President
Sociedad Nacional de Minería, Petróleo y Energía
(National Mining, Petroleum and Energy Society)
Francisco Graña 671, Magdalena del Mar
Lima - 17, Peru
Tel.: (511) 460-1600 Fax: (511) 460-1616
E-mail: [email protected]
Website:http://www.snmpe.org.pe
Eva Arias, President
Caterina Podesta, General Manager
Asociación de Exportadores (ADEX)
(Exporters' Association)
Av. J avier Prado Este 2875 San Borja
Lima – 41, Peru
Tel.: (511) 618-3333, 346-2530 Fax: (511) 346-1879
Email: [email protected], [email protected]
Website:http://www.adexperu.org.pe
Eduardo Amorrortu, President
Cámara de Comercio de Lima
(Lima Chamber of Commerce)
Gregorio Escobedo 398 J esus Maria
Lima – 11, Peru
Tel.: (511) 463-3434, 261-4400 Fax: (511) 463-9864
E-mail: [email protected]
Website:http://www.camaralima.org.pe
J orge von Wedemeyer Knigge, President
J osé Rosas Bernedo, General Manager
Cámara de Comercio de Arequipa
(Arequipa Chamber of Commerce)
Quesada 102-104, Yanahuara
Arequipa, Peru
Tel: (5154) 380-505
E-mail: [email protected]
Website:http://www.camara-arequipa.org.pe
Diego Muñoz-Najar, President
Cámara de Comercio y Producción de Lambayeque
(Lambayeque Chamber of Commerce)
Av. Balta 504-506
Chiclayo, Peru
Tel: (51-74) 23-8081, Fax: (51-74) 23-3040
E-mail: [email protected]
Website:http://www.cclam.org.pe
Otto Zoeger Navarro, President
Cámara Peruana de la Construcción (CAPECO)
(Chamber of Engineering and Construction Firms)
Víctor Andrés Belaúnde 147, Edificio Real 3, Of. 402,
San Isidro, Lima 27, Peru
Tel.: (511) 230-2700 / Fax: (511) 441-7028
E-mail: [email protected]
Website:http://www.capeco.org
Carlos Vegas Quintana, General Manager
Asociación de Bancos
(Association of Banks)
Calle 41 #975, Urb. Corpac San Isidro
Lima – 27, Peru
Tel.: Direct: (511) 612-3303 / Switchboard: (511) 612-3333
Fax: (511) 612-3300
Email: [email protected]
Website:http://www.asbanc.com.pe
Oscar Rivera, President
J ulio Figueroa, General Manager
Asociación de Industriales Lácteos
(Dairy Product Producers Association)
Sociedad Nacional de Industrias
Los Laureles 365 San Isidro
Lima 27 - Peru
Tel.: (511) 616 4444, ext. 165 ? Fax: (511) 441-1639
E-mail: [email protected]
Rolando Piskulich, President
Asociación Peruana de Porcicultores
(Pork Producers Association)
Pomalca 327 Urb. Centro Comercial Monterrico, Surco
Lima – 33, Peru
Tel.: (511) 436-3729, 436-4168 ? Fax: (511) 436-3729
E-mail: [email protected]
Website:http://www.asoporci.org.pe
Guillermo Vidal, President
Ana Maria Trelles, General Manager
Asociación Peruana de Avicultura
(Poultry Producers Association)
Esmeralda 255 Chacarilla del Estanque
Lima – 33, Peru
Tel.: (511) 372-1551, 372-1540 ? Fax: (511) 372-1538
E-mail: [email protected]
Website:http://www.apa.org.pe
J ose Vera, President
Mario Berrocal, General Manager
Sociedad de Comercio Exterior del Perú (COMEXPERU)
Bartolomé Herrera 254, Miraflores
Lima-18, Peru
Tel (511) 625-7700 Fax: (511) 625-7701
E-mail: [email protected]
Website:http://www.comexperu.org.pe
Guillermo Ferreyros, President
J essica Luna, General Manager
Fongal Lima
(Dairy Producers Association)
Pumacahua No. 877, Of. 306 J esus Maria
Lima – 11, Peru
Tel: (511) 431-0549 ? Fax: (511) 423-4642
E-mail: [email protected]
J avier Valera, President
Comité de Molinos de Trigo
(Wheat Millers Committee)
Los Laureles 365 San Isidro
Lima – 27, Peru
Tel.: (511) 616 4444, ext. 131 and (511) 442-2460 ? Fax: (511) 442-4351
E-mail: [email protected]
Alejandro Daly, President
Market Research Return to top
To view market research reports produced by the U.S. Commercial Service please go to
the following website:http://www.export.gov/mrktresearch/index.asp and click on
Country and Industry Market Reports.
Please note that these reports are only available to U.S. citizens and U.S. companies.
Registration to the site is required, and is free.
Trade Events Return to top
Please click on the link below for information on upcoming trade events.
http://www.export.gov/tradeevents/index.asp
http://export.gov/peru/tradeevents/perutradeevents/index.asp
Return to table of contents
Return to table of contents
Chapter 10: Guide to Our Services
SelectUSA:
SelectUSA was created by President Obama in J une 2011, through Executive Order
13577, as the U.S. government-wide program to promote and facilitate business
investment into the United States, including foreign direct investment (FDI) and
reshoring.
The program is housed within the Commerce Department and coordinates investment-
related resources across more than 20 federal agencies through the Interagency
Investment Working Group (IIWG).
SelectUSA provides services to two types of clients: investors and U.S. economic
development organizations at the state and local level. Services include:
Information Assistance:
•SelectUSA provides information to investors on the benefits of establishing operations
in the United States, as well as the information needed to move investments forward.
Investors can access facts, data and local contacts for the U.S. market.
•SelectUSA also works closely with state, local and regional economic developers to
provide counseling on strategy, best practices, and on-the-ground intelligence from the
Foreign Commercial Service network across more than 70 foreign markets.
Ombudsman Services: SelectUSA coordinates federal agencies to address investor
concerns relating to a wide range of federal regulatory issues – helping them to navigate
an unfamiliar system.
Investment Advocacy: U.S. state and local governments often find themselves
competing with a foreign location for a project. SelectUSA can coordinate with senior
U.S. government officials to advocate to the investor to bring those jobs to the United
States.
Promotional Platform: SelectUSA brings the power of the “USA” brand to high-profile
events, such as the upcoming 2015 Investment Summit, to attract investors to learn
about our nation’s investment opportunities. SelectUSA organizes international Road
Shows and missions to trade fairs, while also offering tailored on-the-ground assistance
in more than 70 markets.
Note: SelectUSA exercises strict geographic neutrality, and represents the entire United
States. The program does not promote one U.S. location over another.
For more information on SelectUSA and services provided for investors and economic
development organizations, please click on the following link:http://selectusa.commerce.gov/
National Export Initiative:
The President’s National Export Initiative/NEXT marshals Federal agencies to provide
customer service-driven services and actionable information resources that ensure
American businesses are able to capitalize on expanded opportunities to sell their goods
and services abroad.
The U.S. Commercial Service offers customized solutions to help U.S. exporters,
particularly small and medium sized businesses, successfully expand exports to new
markets. Our global network of trade specialists will work one-on-one with you through
every step of the exporting process, helping you to:
• Target the best markets with our world-class research
• Promote your products and services to qualified buyers
• Meet the best distributors and agents for your products and services
• Overcome potential challenges or trade barriers
• Gain access to the full range of U.S. government trade promotion agencies and
their services, including export training and potential trade financing sources
To learn more about the Federal Government’s trade promotion resources for new and
experienced exporters, please click on the following link: www.export.gov
For more information on the services the U.S. Commercial Service offers to U.S.
exporters, please click on the following linkhttp://export.gov/peru/servicesforu.s.companies/index.asp
U.S. exporters seeking general export information/assistance or country-specific
commercial information can also contact (800) USA-TRADE.
To the best of our knowledge, the information contained in this report is accurate as of
the date published. However, The Department of Commerce does not take
responsibility for actions readers may take based on the information contained herein.
Readers should always conduct their own due diligence before entering into business
ventures or other commercial arrangements. The Department of Commerce can assist
companies in these endeavors.
Return to table of contents
doc_778366746.pdf
Doing Business in Peru 2015 Country Commercial Guide for U.S. Companies
Doing Business in Peru: 2015 Country Commercial
Guide for U.S. Companies
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 2015. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED
STATES.
• Chapter 1: Doing Business In Peru
• Chapter 2: Political and Economic Environment
• Chapter 3: Selling U.S. Products and Services
• Chapter 4: Leading Sectors for U.S. Export and Investment
• Chapter 5: Trade Regulations, Customs and Standards
• Chapter 6: Investment Climate
• Chapter 7: Trade and Project Financing
• Chapter 8: Business Travel
• Chapter 9: Contacts, Market Research and Trade Events
• Chapter 10: Guide to Our Services
Return to table of contents
Chapter 1: Doing Business in Peru
• Market Overview
• Market Challenges
• Market Opportunities
• Market Entry Strategy
Market Overview Return to top
Peru has been one of the fastest growing Latin American economies over the past
decade. Between 2003 and 2013 the Peruvian economy grew an average of 6% per
year. Though the trend did not continue in 2014, Peru’s 2.35% growth was still higher
than the 2.0% average growth in Latin America. The government’s counter-cyclical
stimulus spending, consumption, and private investment are the main driving forces of
this growth. Investment grew by 8.3% year-on-year to a value of USD 33.5 billion in
2014. The Ministry of Economy and Finance set a target of 30% growth in public
investment, and pledged a total of USD 30 billion over the next five years to address
Peru’s infrastructure gap, estimated at USD 80 billion. As the economy has grown,
poverty in Peru has steadily decreased, falling by half from 56% in 2005 to 23.9% in
2013 according to the World Bank.
Peru’s steady economic growth began with the pro-market policies enacted by former
President Alberto Fujimori in the 1990’s. All subsequent governments have continued
these policies, including the current administration inaugurated in J uly 2011 for a five-
year term. President Ollanta Humala pledged to encourage private and public
investment in infrastructure projects in transportation, telecommunications, energy,
sanitation, airports, and maritime ports. Congruent with his other campaign goals to
reduce poverty and narrow the nation’s socioeconomic gap, President Humala has
increased social spending and raised taxes on mining companies.
Peru’s currency, the “Nuevo Sol” (PEN), has been among the least volatile of all Latin
American currencies in the past few years, but has depreciated by almost 10% against
the USD over 2014. Since the mid-1990’s, the PEN’s exchange rate with the USD has
fluctuated between 1.25 and 3.55 per USD. The exchange rate, as of J une 24, 2015,
was 3.15 PEN per USD.
The Government of Peru (GOP) has encouraged integration with the global economy by
signing 17 free trade agreements with 52 economies, including the United States-Peru
Trade Promotion Agreement (PTPA), which entered into force in February 2009. In
2014, trade between the United States and Peru totaled USD 16.1 billion, up from USD
9.1 billion in 2009 the first year of entry into force. From 2009 to 2014, Peruvian exports
to the United States jumped from USD 4.2 billion to USD 6.1 billion (a 45% increase)
while U.S. exports to Peru jumped from USD 4.9 billion to USD 10.1 billion (a 106%
increase). Peru has preferential trade agreements with 52 countries and unions,
including Argentina, Brazil, Bolivia, Chile, China, Colombia, Ecuador, the European
Union, Iceland, J apan, South Korea, Lichtenstein, Mexico, Norway, Panama, Paraguay,
Singapore, Switzerland, Thailand, the United States, and Uruguay.
In its Doing Business 2015 publication, the World Bank ranked Peru 35th among 189
countries surveyed in terms of ease of doing business. The report rates the ease of
processes like starting a business, dealing with construction permits, registering
property, and obtaining credit
(http://www.doingbusiness.org/data/exploreeconomies/peru/).
Market Challenges Return to top
Over the past couple of years, Embassy Lima has received multiple complaints from
U.S. firms on cumbersome and inconvenient government procurement processes.
Furthermore, some ministers within the GOP are more frequently using a government-
to-government (G2G) procurement method in both non-defense and defense-related
procurements. This presents a challenge for U.S. exporters trying to comply with all of
the tender requirements.
Dispute settlement generally remains problematic in Peru. In 2004, the Peruvian
Government established commercial courts to rule on business disputes. With their
specialized judges, these courts have reduced the amount of time to resolve a case from
an average of two years to just two months. The appeals process resolves most of these
cases. However, with the exception of the commercial courts, the judicial system is often
extremely slow to hear cases and to issue decisions. A large backlog of cases further
complicates businesses’ operations.
Court rulings and the degree of enforcement are often inconsistent and highly
unpredictable. Allegations of political corruption and outside interference in the judicial
system are common, a situation that analysts think leads to the judiciary receiving low
approval rates in public opinion polls. Frequent use of appellate processes as a delay
tactic leads to the belief among foreign investors that contracts can be difficult to enforce
in Peru.
While the legal framework for protection of intellectual property (IP) in Peru has
improved over the past decade, enforcement mechanisms remain weak. Despite PTPA
implementation and recent changes in laws, which created stricter penalties for some
types of IP theft, the judicial branch still has yet to vigorously pursue investigations,
convictions and stiff penalties for IP violations.
Both domestic and foreign firms continue to identify cumbersome bureaucratic
procedures as impediments to doing business in Peru. For example, shipments are
regularly held up for various reasons, including typographical errors on shipping
documents. Firms operating in Peru also note difficulties in securing legal solutions to
commercial disputes or enforcing arbitration awards.
Market Opportunities Return to top
The best prospects for U.S. exports of non-agricultural products to Peru include the
following sectors:
• Construction Equipment
• Electronic Commerce
• Food Processing & Packaging
Equipment
• Industrial Chemicals
• Medical Equipment
• Mining Industry Equipment
• Plastic Resins
• Security & Safety Equipment
The best prospects for U.S. agricultural products include:
• Beef and Offal
• Biofuels (Ethanol)
• Cotton
• Dairy Products (Whey, Cheese)
• Forest Products
• Hard Wheat
• Pet Food
• Soybean Meal
• Yellow Corn
Market Entry Strategy Return to top
U.S. companies often find it convenient to appoint local representatives to investigate
market opportunities and establish sales networks. Retention of local legal counsel is
often required to successfully navigate Peru’s business practices and bureaucracy. U.S.
exporters, especially those targeting government agencies, are encouraged to contact
the Commercial Service (U.S. Department of Commerce) at the U.S. Embassy in Lima
to obtain a market briefing and assistance in arranging appointments during a business
trip to Peru, and to learn how the Advocacy Center can support their efforts competing in
government tenders. For more information on these services, please refer tohttp://export.gov/peru/.
The Foreign Agricultural Service (FAS) (http://www.usdaperu.org.pe/ ) and U.S.
Department of State Economic Section (http://lima.usembassy.gov/econ.html/) can also
provide briefings on the economic, financial, and investment climate in Peru.
Return to table of contents
Return to table of contents
Chapter 2: Political and Economic Environment
The United States began diplomatic relations with Peru in 1827. Since the start of the
21
st
century, Peru has undergone consistent economic growth, poverty reduction, and
broad support for democracy. The U.S – Peru Trade Promotion Agreement (PTPA) went
into force on February 1, 2009, increasing incentives for economic and social
cooperation between the two countries.
Current bilateral programs include efforts to limit the production and export of illegal
narcotics, primarily cocaine, to reduce poverty and to strengthen the rule of law within
Peru. The US offers direct support to the Peruvian National Police (PNP) and Customs
Agency (SUNAT) as well as funding to build the capacity of judicial actors.
On J uly 28, 2011, President Ollanta Humala Tasso began his five-year term on a
platform of social and economic inclusion for all Peruvians. While the country has
experienced impressive growth rates, low inflation, and a dramatic poverty drop, many
challenges remain. J ust under one-quarter of all Peruvians live in poverty and illegal
coca and cocaine production continue to rise. Balancing poverty reduction with
environmental stewardship and economic growth will be an ongoing challenge for years
to come.
For more background information on the political and economic environment of the
country, please click on the link below to the U.S. Department of State Background
Notes.
http://www.state.gov/r/pa/ei/bgn/
Return to table of contents
Return to table of contents
Chapter 3: Selling U.S. Products and Services
• Using an Agent or Distributor
• Establishing an Office
• Franchising
• Direct Marketing
• J oint Ventures/Licensing
• Selling to the Government
• Distribution and Sales Channels
• Selling Factors/Techniques
• Electronic Commerce
• Trade Promotion and Advertising
• Pricing
• Sales Service/Customer Support
• Protecting Your Intellectual Property
• Due Diligence
• Local Professional Services
• Web Resources
Using an Agent or Distributor Return to top
Peruvian law does not require the use of local distributors for private sector commercial
sales. However, for sales to the government, it is recommended that U.S. companies
contract and register a local agent. (See "Selling to the Government" later in this
chapter.) Exporters to Peru often find it advantageous to have a representative on the
ground to stay abreast of the latest opportunities and developments in the company’s
area of interest.
The Commercial Service in Lima recommends companies to be thorough when selecting
an agent or representative in Peru. U.S. companies are encouraged to take advantage
of U.S. Department of Commerce services by contacting the local Export Assistance
Center (EAC) located in major cities throughout the United States, including Alaska and
Hawaii. Services include the International Partner Search (IPS), which helps to pinpoint
interested agents and distributors, the Gold Key Service (GKS), which arranges
meetings in-country with potential company representatives (agents or distributors), and
the International Company Profile (ICP), which reports on the credit and business history
of individual local companies. For detailed information, refer to Chapter 10: Guide to Our
Services.
Establishing an Office Return to top
It is essential for companies planning to operate in Peru to retain reputable legal
counsel. Law firms are referred to as “Estudios” and attorneys as “Doctor” or “Doctora”
followed by their last name. An attorney should be proficient in matters concerning taxes
on corporate and branch income, corporate residence, value-added taxes, income
determination, capital gains, inter-company dividends/pricing, stock dividends,
depreciation and depletion, net operating losses (tax losses), and payments to foreign
affiliates. Other significant issues to consider include workers’ benefits, payroll and
withholding taxes, municipal operating permits, and labor laws that will impact the
business when it starts operations. Many U.S. companies retain the local representative
of their U.S.-based auditor. A partial list of local lawyers and/or tax and audit firms can
be found in this chapter.
Foreign corporations interested in doing business in Peru on a permanent basis must be
formally incorporated and registered in the Peruvian Mercantile Registry (Registro
Mercantil del Perú). Real estate may be acquired by any foreign entity without the need
to establish an office. There are two main types of business organizations that can be
used for these purposes: branch offices and incorporated subsidiaries. It is only
necessary to vest a local individual with sufficient powers to conduct and close the sale.
Office space suitable for international companies has substantially increased in the last
ten years in several neighborhoods of Lima. The price of rent for newly built offices has
increased, partly the consequence of numerous foreign companies setting up shop in
Peru. Because of the still ongoing housing boom, with fine dwellings built in Lima’s
residential areas, it is easier for foreign managerial staff to relocate to Peru. The
situation in several other cities outside of the capital is more and more similar to that of
Lima.
Industrial space is scarce in or close to Lima. New operations have thus had to accept
areas in the southern and eastern outskirts of Lima.
Establishing a Branch
To establish a branch, the following documents will be required:
• Copy of the articles of incorporation of the parent company.
• Certificate of incorporation and good standing or other official document certifying
the existence and continuous operation of the parent company. This certificate
must state that the parent company is not prohibited, either by law or by its own
by-laws, from establishing branches abroad. If such a statement cannot be
included in the certificate, then a Notary Public may do so in a separate
document.
• Copy of the minutes of the board of directors' meeting where the resolution to
establish a branch in Peru appears. This resolution should specify:
o The domicile in Peru.
o Duration of the branch (may be indefinite) and the commencement of
operations.
o The purpose of the branch, clearly specifying the business and operations
that will be conducted in Peru, stating that said purpose is comprised in
the parent company’s purpose.
o Name of person(s) authorized to act in the registration of the branch and
in its representation, and powers vested in him/her, which must include
powers to resolve any issue related to the branch activities; to hold the
corporation liable for its operations; to appear in court; and to respond to
suits brought against it. The holder of the parent corporation’s power of
attorney, duly registered, directs the branch. The parent corporation can
revoke such power anytime.
o There is no requirement for the parent company to submit its financial
statements to Peruvian authorities.
A Notary Public or appropriate government official in the country of incorporation must
legalize all documents granted abroad. A local Peruvian Consul must then authenticate
the signatures of the Notary or the government official. The documents should be in
Spanish, and if not, must be translated by an authorized translator. Upon receipt, the
signature of the Peruvian consul must be legalized in the Ministry of Foreign Affairs
(MFA).
Registration fees are as follows:
• Registration fee: approximately 0.3% of the assigned capital with a maximum of
approximately US$1,400.
• Translation fees: between US$10 and US$12 per page.
• Legalization at the MFA: US$20 per document.
• Notary and legal fees: widely variable rates.
Once residence or domicile can be demonstrated, the foreign company must obtain a
taxpayer number (Registro Unico del Contribuyente, “RUC”). The taxpayer will use its (or
his or her personal) RUC number in all commercial transactions, similar to the federal
tax identification number (EIN) in the United States.
Incorporating a Subsidiary
The corporation is the most common form for establishing a business entity in Peru. A
minimum of two shareholders is required. One hundred percent foreign ownership of an
investment is allowed, except for a limited number of restricted activities (see “Chapter 6:
Investment Climate, Openness to Foreign Investment”).
To comply with the rules of incorporation of a subsidiary, various documents will be
required.
If participating shareholders are foreign individuals, they need only present valid
identification (passport), but for corporations participating as shareholders the following
documents must be filed:
• Certificate of Good Standing
• Copy of the minutes of the board of directors' meeting where the resolution to
participate in the incorporation of a Peruvian company appears. This resolution
should indicate the name of the person appointed as representative to act on
behalf of the shareholders in all the incorporation procedures.
No minimum capital is required.
The Business Corporation Law regulates three forms of corporation:
• Common corporation (SA: Sociedad Anónima)
• Closed corporation (SAC: Sociedad Anónima Cerrada)
• Open corporation (SAA: Sociedad Anónima Abierta)
Closed Corporation
The closed corporation (SAC) must have a minimum of two and a maximum of 20
shareholders. The shareholders and chief executive officer manage the SAC. Unlike a
common corporation (SA), an SAC board of directors is optional. In case of transfer of
shares, the law stipulates a right of first refusal for the existing shareholders, but
company by-laws may eliminate this right.
Open Corporation
The open corporation (SAA) does not limit the maximum number of shareholders and is
intended for companies making public offerings. No limitations are allowed for the
transfer of shares. Peru’s Exchange and Securities Supervisory agency
(Superintendencia del Mercado de Valores, SMV) supervises open corporations.
The above types are limited liability corporations (LLC). Another LLC business structure
is the Sociedad Comercial de Responsabilidad Limitada: a legal entity different from its
owners, who can be either individuals or corporations. The liability of the partners is
limited to the amount of their contribution. As with a typical closed corporation, the
minimum number of partners is two and the maximum is 20. However, in this
organization a transfer of shares to third parties is subject to approval by the existing
partners—right of first refusal is mandatory—and must be registered in the Public
Records Office. The name of the company must include the abbreviation "S.R. Ltda."
For more information on setting up a company in Peru, visit the following web pages of
the Private Investment Promotion Agency of Peru (ProInversión) and the MFA.
http://www.investinperu.pe/modulos/J ER/PlantillaStandard.aspx?are=1&prf=0&jer=5761
&sec=17
http://www.rree.gob.pe/promocioneconomica/invierta/Paginas/Comience_a_Invertir.aspx
(in Spanish)
http://www.rree.gob.pe/promocioneconomica/invierta/Documents/Peru_Business_and_I
nvestment_Guide_2015_2016.pdf
All potential investors should contact an attorney and/or an accounting firm to
understand the legal framework for investment protection established by the Foreign
Investment Promotion Law, the Framework Law for Private Investment, the Law for the
Promotion of Private Investment in State-Owned Companies, and the Law for the
Promotion of Private Investment in Public Utility Facilities.
In the event of a commercial dispute, national or international arbitration may be used,
but only if this is agreed to by the parties in an agreement or contract before the dispute
arises. Arbitration cannot be imposed unilaterally after the fact as a means to resolve
controversies or disputes. Please contact FCS Lima to discuss arbitration venue options.
The American Chamber of Commerce in Peru (AmCham) and Lima Chamber of
Commerce (CCL) maintain a fully staffed arbitration center open to members and non-
members.
Franchising Return to top
The franchise sector in Peru encompasses approximately 375 companies, primarily
concentrated in food services. About 52% are foreign owned, mostly by U.S. companies
(22%), and 48% are Peruvian. Experts report that the sector is growing and presently
moves USD$ 1.2 million in one year.
There is no specific legislation to govern franchising, although franchises in Peru are
subject to general commercial law, general antitrust law, and Decisions 486, 608, and
291 of the Andean Community. According to articles 162 through 164 of Decision 486, a
written license agreement must be registered at the patents and trademarks office
(INDECOPI: www.indecopi.gob.pe). Prospective franchisers need to be aware of a 30%
income tax on royalties, 18% value added tax (paid by the local company), and import
tariffs depending on the type of goods. Countries that have signed double taxation
agreements with Peru have separate regimes for royalties and withholding income tax
(the U.S. is not included).
Promising sectors apart from food services are:
• Aesthetics, beauty and health (beauty salons, spas, gyms)
• Clothing and accessories (clothing, footwear, jewelry, costume jewelry, gifts)
• Specialized services (entertainment, playgrounds, etc.)
• Education (high schools, universities)
Direct Marketing Return to top
Direct marketing is well established in Peru in the services sector, especially among
financial institutions and seminar organizers. A common practice is to hire personnel or
to contract a company for telemarketing and mailing campaigns. Databases for direct
marketing are kept private by its owners and thus are not freely available. Nevertheless,
commercial information can be obtained through Peru’s Chambers of Commerce and
trade associations (See Chapter 10: Contacts, Market Research and Trade Events).
Several call centers providing support to the U.S. or other Latin countries are operating
in Peru as well.
Catalog sales for consumer goods in Peru remain small because consumers prefer to
personally visit the retail location to determine the quality of the product and ease of
obtaining warranty support. Additionally, consumers find parcel delivery through Peru’s
postal system unsatisfactory. Courier companies are taking advantage of this
opportunity to promote their services.
Joint Ventures/Licensing Return to top
Peruvian law allows for joint ventures and licensing agreements with a legally
established local partner who will be accountable for all legal matters. The textile
manufacturing industry in particular has attracted a great deal of licensing and joint
venture activity.
Selling to the Government Return to top
To sell to the Peruvian government, interested suppliers have to participate in a tender
process, for which they must register with the National Registry of Suppliers (Registro
Nacional de Proveedores, or RNP:http://portal.osce.gob.pe/osce/node/386, in Spanish
only). The RNP consists of the following chapters: construction firms, construction
consultants, suppliers of goods and services, and unqualified suppliers to the
government. An individual or a company can register in any of the first three chapters
and can choose to register jointly as a goods and services provider.
To register, a company must follow several steps (Spanish,http://portal.osce.gob.pe/osce/content/guia-de-como-venderle-al-estado):
• Pay a fee (which is revised annually) at the Government Procurement
Supervisory Agency (Organismo Supervisor de las Contrataciones del Estado,
OSCE) of about $79 for suppliers of goods and/or services or about $124 for
construction firms or construction consultants.
• After obtaining the User Kit provided by OSCE once the fee is paid, file the
official form (available at www.osce.gob.pe) signed by the legal representative.
• The legal representative must have its powers registered with the Peruvian
Public Registry. If the powers of the legal representative are not registered, this
can be done within 15 working days. Provide a copy of the incorporation deed or
documents that demonstrate the company’s legal establishment/status, duly
apostilled. The documents need to be translated into Spanish by an official
Peruvian interpreter.
Peruvian law permits an independent distributor to pay commissions or fees to third
parties in connection with sales to the government. For example, a company in Peru can
purchase products from a company in the United States and then pay a third party fee to
resell them to the Peruvian government. There are no Peruvian restrictions on
commissions or mark-ups on sales to the government by either agents or distributors
and the rates vary widely depending on product, client, and competition.
Government agencies must publish tender notices for all major purchases in the official
gazette, while sometimes they also publish tenders in main local newspapers. The
government, in an effort to ensure transparency for some government tenders, has been
using the United Nations Office for Project Service (http://www.unops.org/) to notify
potential suppliers or to handle some bids, but this method apparently does not allow
screening by the General Controller Agency and has thus fielded criticism. Peru is not a
signatory to the World Trade Organization (WTO) Agreement on Government
Procurement. The United States-Peru Trade Promotion Agreement (PTPA) includes a
specific chapter on Government Procurement (“Contratación Pública” in Spanish).
Selling to government agencies remains problematic in spite of PTPA’s stipulations. In
December 2007, the Garcia Administration requested Congressional authority to pass
legislation on various matters in order to implement PTPA so that Peru could make the
most of it, expressly including government purchases among those matters. Congress
quickly consented to the request and Peru’s Government passed Legislative Decree No.
1017 (LD 1017), Government Procurement Law (Ley de Contrataciones del Estado).
This law requires public tenders for major purchases of goods, supplies and works by
government agencies (including the Armed Forces and the National Police). On the
other hand, the Peruvian armed forces and national police have long shown a
preference to make deals directly, shunning open tenders. In J uly 2012, the Defense
Ministry enlisted the support of OSCE which, with an implausible opinion, left out private
companies from bidding for major purchases through a so called “government to
government” procurement (i.e., purchases by a Peruvian government agency from a
foreign government agency or government-owned company). The Defense and Interior
Ministries used OSCE’s opinion to pass a number of legal precepts on which they based
several of their main procurement contracts since then. Further, an article hidden in the
2013 Budget Law (Thirty Final Supplementary Provision) specified that procurements of
the Peruvian State from another State are not under the scope of LD 1017.
Among the reasons for its opinion (see Web Resources below), OSCE stated that
government to government contracts due to their own character and the nature of the
contracting parties (sovereign states) are different from the “administrative contracts”
(those in which the parties are a government and a private party). OSCE implausibly
argued that the government entity, acting in exercise of the administrative function and
protecting public interest, can unilaterally modify contracts. This is in blatant
contradiction with Peru’s 1993 Constitution, Article 62, which establishes that
“Contractual terms may not be modified by laws or any other provision whatsoever”.
Furthermore, even though the parties are sovereign states, OSCE acknowledged that
“government-to-government procurement” is at least subject to each contracting State’s
public law rules, the rules of international law and the international trade rules.
In the last few years, local media have reported denunciations of overvalued prices in
the case of several government-to-government purchases of goods for the police or the
armed forces. Cases include purchases of a satellite, planes, and helicopters.
Overvaluation has apparently occurred even in the case of open tenders as in the
notorious recent case of the purchase of 591 binoculars by the Interior Ministry for the
National Police in December 2013. The main local daily El Comercio denounced that the
Interior Ministry bought the 591 binoculars at the grossly overvalued price of about
$1,736 each, whereas the daily found similar binoculars at about $121 each. In early
February 2014, the Interior Ministry announced it had annulled the purchase, implying
that it annulled the purchase before the daily’s denouncement, but the daily proved that
that was not the case. The preference of the Ministry of Defense and Ministry of Interior
to pursue government-to-government deals continues to today, however the
establishment of a new centralized procurement system by the Ministry of Defense for
the Armed Forces should lead to positive changes in their purchasing practices.
Distribution and Sales Channels Return to top
The population of Peru is highly centralized, with 30% of all inhabitants living in the
capital city of Lima, 50% of GDP generated in and around Lima, and the national
government being the main government buyer. As a result, a large portion of the sales
activities of U.S. firms occurs in Lima. Sales opportunities do exist and are growing in
other major population centers such as Arequipa, Chiclayo, and Trujillo. This could be a
consideration for a U.S. company’s overall marketing strategy. Representatives in Lima
typically have sales agents in these cities, covering sales opportunities in the provinces.
Sending letters via express delivery can take up to two weeks and for packages longer
due to lengthy holding procedures by Peruvian customs.
The most common method of distribution is the appointment of a representative.
Appointing an agent or distributor is advisable for companies seeking to develop a
market on a sustained basis.
The Government of Peru has embarked upon an initiative to decentralize some elements
of government authority and decision-making, including implementation of spending
programs utilizing the “canon,” a revenue-sharing scheme of taxes imposed on some
extractive industries. This increase in regional authority is an important consideration
when contemplating a local representative outside of Lima. Decentralization of
government budgeting and spending authority can also make completing sales more
challenging, especially in municipalities or provinces where government agencies may
have limited experience in designing and implementing major projects or lack of financial
and procurement expertise.
An alternative approach to distribution is to establish a local subsidiary or branch office.
Companies with a complicated product or service use this method because it allows for
effective after-sales service and more aggressive promotion of a product. Costs of
commercial and industrial space are relatively high in the Lima area and in several main
cities.
Selling Factors/Techniques Return to top
Product pricing is a key selling factor in the Peruvian market. Products from Asian
economies such as China, Taiwan, and Korea often outsell more expensive European or
North American consumer products in the realm of consumer electronics, appliances
and automobiles. Knockoffs and pirated goods are problematic as well. However, with
investment in sales promotion and post-sales service infrastructure, U.S. goods can be
competitive.
Equipment performance and efficiency influence the decision-maker when purchasing
capital goods, notably advanced electronics and construction machinery. The customer
often prefers more expensive U.S. or European products, which are highly rated for
quality, durability, technology, customer support, and regional service.
Many of the larger representatives have regional offices in other cities outside of Lima.
The rest of Peru is largely under-populated and underdeveloped and does not offer an
attractive market for technical equipment, with certain exceptions, such as the large-
scale mining operations located along Peru’s Andes mountain range and petroleum
operations in the Amazon jungle.
Payment for major purchases is generally on a net 30-day basis. For new market
entrants or when dealing with new customers, it is advisable to request up-front payment
or work on a confirmed, irrevocable letter of credit basis. Over the counter purchases are
done in cash (U.S. dollars are widely accepted), wire transfer, or credit card. Most
retailers use credit terms as a sales technique and major department stores issue their
own credit cards. U.S. exporters are encouraged to explore the programs and services
offered by the Export-Import Bank of the U.S. (www.exim.gov) to enhance the credit
terms offered to Peruvian buyers.
Electronic Commerce Return to top
The Peruvian E-commerce market is small and developing slowly compared to
international standards. Business-to-Business (B2B) commerce is mostly conducted
between large enterprises with the percentage of transactions growing modestly. These
companies use B2B as a commercial practice to cut operational costs. Many medium-
size firms do not clearly understand the real importance of electronic B2B and Business-
to-Consumers (B2C) solutions. They focus mostly on cost reduction instead of
enhancing their distribution channels or developing new products or services that
improve their overall reach.
The following is a list of successful firms considered to be local benchmarks in Peruvian
E-commerce solutions:
a)http://peru.com/ A popular web portal.
b)http://www.rosatel.com/ Rosatel allows online orders of flowers and gift baskets.
c) All banks (e.g.,http://www.viabcp.com,http://www.bbvabancocontinental.com) and
most financial institutions have websites to provide clients with services such as
paying utility bills, obtaining insurance coverage, internet shopping and information.
Transactions are made with debit or credit cards such as Visa, Mastercard or
American Express (Amex).
d)http://www.wong.com.pe Wong is Peru’s largest supermarket chain. This website
allows the company to receive and pay for orders via the internet from local and
foreign-based consumers for local delivery.
e) Telecommunications industry firms have websites and portals to interact with the
market in a variety of services, ranging from refilling pre-paid telephone cards to
sending direct marketing SMS messages to target market segments (e.g.,http://www.movistar.com.pe,http://www.claro.com.pe).
There have been interesting advances in the use of the internet in several Peruvian
government institutions such as the tax collecting agency, SUNAT
(http://www.sunat.gob.pe); the public registry, SUNARP (http://www.sunarp.gob.pe); and
the Peruvian state-owned bank, Banco de la Nación, which handles the Treasury
accounts (http://www.bn.com.pe). The National Elections Bureau, ONPE
(http://www.onpe.gob.pe) is testing electronic voting and has also improved internet
usage.
The Peruvian government has established a special task force under the name of E-Gob
Peru managed by the National Office of E-Government and Information Technology
(ONGEI:http://www.ongei.gob.pe/), under the President of the Council of Ministers. This
office is seeking to continuously develop Gov2Citizens solutions for tax payment and
information on customs and foreign trade (http://www.sunat.gob.pe/) as well as
Gov2Gov transactions as a means to reduce expenses within the different agencies.
Operational services include a citizens’ IDs service portal (http://www.reniec.gob.pe/),
and business-assistance services for small and medium-size companies
(http://www.crecemype.pe/). The Peruvian government is also implementing an
Electronic Procurement System (SEACE: Sistema Electrónico de Adquisiciones y
Contrataciones del Estado). The principal stated objectives of this electronic system are
to improve the transparency and the efficient operation of government purchases.
There is no Public Key Infrastructure (PKI) in Peru yet, but digital signatures are widely
used for tax declarations (more than one million users). Transactions are made through
electronic funds transfer and Banco de la Nación has created a secure platform for
online transactions. The Antitrust, Unfair Competition, Intellectual Property Protection,
Consumer Protection, Dumping, Standards and Elimination of Bureaucratic Barriers
Agency (INDECOPI,http://www.indecopi.gob.pe/) is working to implement a PKI under
the E-Gob Peru project. Peru is expected to use the U.S. PKI business model.
Development of the legal framework has proceeded as follows:
a) Protection of Personal Information: Complete.
b) Electronic Signature: Complete, but will be modified.
c) Electronic Commerce: Not explicit, but there is a bill that refers to concessions
done electronically (Civil Code 141 and 141A.)
d) Validity for Procedures related to E-Gob Peru: Under development.
e) Electronic Governmental Hiring Process: Under development.
Trade Promotion and Advertising Return to top
In 2014 Peruvian advertising expenditures are expected to reach USD$ 751 million. As
in previous years, television advertisements account for the biggest expenditures, with
USD$415 million. Newspapers and radio will claim an estimated USD$115 million and
USD$83 million. Internet advertisements are expected to reach USD$ 40 million, up
14.3% from 2013.
Lima boasts 30 daily newspapers, a few of which strive for national coverage. Locally
oriented newspapers can be found in most provincial capitals. First in terms of influence
is El Comercio, the nation's second oldest paper with 175 years of continuous
publication. Three major dailies, Peru.21, Trome, and business daily Gestión, belong to
El Comercio Group. Other major dailies are Correo, La República, La Razón, La
Primera, Expreso, tabloids Ojo, and El Popular, and the official gazette El Peruano,
founded in 1825, which acts as the official newspaper of record. All laws passed in Peru
must be published in this daily. Additionally, Caretas, a weekly magazine founded in
1950, is one of Lima’s most influential news publications.
In August 2013, El Comercio Group acquired from the EPENSA Group the control over
printing, circulation and publicity of Correo, Ojo and El Bocón. EPENSA retained control
over the editorial line.
According to the Ministry of Transportation and Communications (MTC), as of February
2015 there were 5,325 radio and television stations in Peru. Lima boasts the most
television stations (127), followed by Puno (121) and J unín (95). The Cajamarca region
is the leader in radio stations (320), followed by Ancash (313) and Lima (304).
Radio reaches the largest audience of all communications media, reaching even the
most isolated populations in Peru. It is often the first source of current news and is the
principal vehicle in the regions outside Lima for transmitting information about local
issues and events.
There are thousands of radio stations in Peru broadcasting on AM, FM, and short wave
frequencies. Many of these stations are small storefront operations that serve relatively
limited audiences. Radio's most influential source of news and information is “Radio
Programas del Peru” (RPP). RPP is the only network with a national reach with
transmitters and correspondents in virtually every important city in Peru. In most major
cities, including Lima, RPP leads most AM and FM ratings and it boasts an influential
listening audience, as well as a TV station for simulcast.
Television permeates the urban environment in Peru and has become increasingly
available to rural audiences as well. As in the United States, television is often the
primary source of news for a majority of those who have access to it.
The most important players in TV are the six major Lima-based television networks,
along with a government-owned service, which for years was the only station available in
many parts of Peru. These seven broadcasters use affiliates in the provinces much like
their counterparts in the United States. In addition, there are numerous smaller
independent stations that serve particular cities and regions.
Cable television is also a powerful player in the Peruvian market. A National Urban
Study of Radio and TV Coverage conducted in May/J uly 2014 reported that as of 2014
57.7% of households use cable television (72.5% in Lima and 47.5% in the rest of the
country). Canal N, a 24-hour cable news channel owned by El Comercio, is highly
influential. The main cable service companies are Telefónica del Perú (Spain), offering
“Movistar TV”; the America Móvil Group (Mexico), with its product “Claro TV”; the
Caracol Group (Colombia), with its local product “Cablevision”; and the DirecTV Group
(USA), offering its cable service "DirecTv.” Their packages include CNN and
programming from other Latin American, Asian and European countries. The remaining
cable companies are small firms offering their services in concentrated areas
surrounding Lima or in the provinces.
Major Lima-based networks maintain news websites that correspond to their print and
broadcast outlets. The most popular are RPP, El Comercio, Andina, Peru.21, and La
Republica news service.
According to a May 2015 poll reported in the daily Gestión, 30% of urban Peruvians use
the Internet every day between one and three hours. The Penetration role of the Internet
is 53% in Lima and 46% in the rest of Peru. Among youth between 18 and 24 years old,
favorite internet tools are Facebook (96%), YouTube (63%), and Twitter (25%). The
most popular websites include Google and YouTube. At the same time, 94% of internet
users access news sites. Blogging is still not popular enough to be a source of
independent income and most bloggers are affiliated journalists or academics. Although
social media has not yet been used successfully in Peru to organize a large scale
political movement, it has played a role in mobilizing public opinion and rallies on specific
issues. The U.S. Embassy Lima Facebook page has over 205,000 fans and the Twitter
account has over 40,000 followers including many of Peru’s leading opinion makers.
Pricing Return to top
In general, Peru is an open market, with minimal trade restrictions. The imports-weighted
average tariff is 1.8% and the simple average is 3.2%. Distributor mark-up varies
according to type of product, but usually ranges between 12% and 25%. All imports are
subject to an 18% value-added local sales tax, which can be used as a tax credit by the
importer. There are some exceptions: enterprises established in industrial free zones
and special treatment zones; companies that have their operations in the jungle regions
of Loreto, Ucayali, Madre de Dios, Amazonas, and San Martin, in accordance with the
Peruvian-Colombian Amazon Cooperation Treaty. Some luxury items have higher tariffs
and some specific goods such as cigarettes, beer, wine, and liquors pay an excise tax
according to the lists and rates included in Appendixes III and IV of Legislative Decree
No. 821 (passed on April 23, 1996). In December 2007, the 10% excise tax for new
automobiles was eliminated, and the excise tax applied to used cars was left at 30%.
Imports from countries with which Peru has bilateral or regional agreements are covered
by different, preferential tariff schedules.
Sales Service/Customer Support Return to top
Peruvians consider service and support a critical factor in making the final purchasing
decision, especially for products that require periodic servicing. It is important for the
product to be sold through a reliable distributor that offers the quality and services that
the client requires. For example, servicing and availability are currently the two
perceived advantages that new Asian autos enjoy over their U.S. competitors in the
Peruvian market. Another example would be mining equipment, where U.S. after-sales
service enjoys a superior reputation to that of third-country competitors.
Protecting Your Intellectual Property Return to top
IP Rights Climate in Peru
While the legal framework for protection of intellectual property (IP) in Peru has
improved over the past decade, enforcement mechanisms remain weak. Piracy remains
a significant and endemic problem for legitimate owners of trademarks, copyrights, and
patents in Peru. Peru has remained on USTR's Section 301 "Watch List" since 2001 due
to continued high piracy rates and inadequate enforcement of IP laws. Weak or
unenforced penalties for IP violators also contributed to the Watch List determination.
Under the U.S.-Peru Trade Promotion Agreement (PTPA), Peruvian law must provide
the same protection for U.S. companies as Peruvian companies in all IP categories. The
PTPA provides for improved IP protection on a broad range of IP rights. Such
improvements include: protections for digital products (e.g., U.S. software, music, text,
and video); protection for U.S. patents, trademarks and pharmaceutical and
agrochemical test data; legal penalties to deter piracy; and an electronic system to
register and maintain trademarks.
Despite PTPA implementation and recent changes in laws which create stricter penalties
for some types of IP theft, egregious IP rights infringement persists. The judicial branch
continues to fail in imposing sentences that adequately deter future IP theft. Prosecutors
are not increasing the number of piracy cases they pursue through the entire process to
final judgment. Furthermore, the Peruvian public knowingly and openly continues to
purchase pirated software, CDs, DVDs, pharmaceutical products, books, and other
products. Peruvians purchase pirated and counterfeit products from vendors who
operate in the open, as neither party fears punishment by their government which has
shown little will to prosecute these illegal actions. The Peruvian government has
occasionally carried out raids against individual vendors of pirated goods, but few
against criminal gangs that control the supply and distribution chains.
Peruvian government institutions, often with the support of the U.S. Embassy in Lima,
sponsor public awareness campaigns about the damage that IP theft causes the
Peruvian economy and personal health risks from counterfeit medicines to individuals.
Peruvian newspapers highlight stories how piracy harms Peruvians, including
counterfeited books by Peru’s Nobel Laureate Mario Vargas Llosa.
The International Intellectual Property Alliance (IIPA) estimates that 98% of recorded
music in Peru is pirated. The Business Software Alliance and the International Data
Corporation (IDC) estimate that software piracy levels decreased from 71% in 2009 to
68% in 2012. While larger U.S. and foreign software companies have been able to
provide heavily discounted or free cloud-based versions of their products, smaller
software companies continue to struggle to prevent their products from being pirated.
The majority of individually-owned motion pictures in Peru are pirated. Peru’s piracy rate
remains higher than the regional (61%) and global (42%) averages for software piracy.
U.S. pharmaceutical and agro-chemical industries claim that the Peruvian government
fails to provide data exclusivity protection for their products. For instance, the Peruvian
government does not provide patent linkage or “second use” medical patents. The
pharmaceutical industry also claims the Peruvian government does not offer any
extension of the patent term for pharmaceutical products to compensate for delays at the
patent office. The agro-chemical industry has complained of government mechanisms
that allow for the importation of generic copies that infringe on their registered patents.
The Peruvian government agency charged with promoting and defending intellectual
property rights is the Institute for the Defense of Competition and Protection of
Intellectual Property (INDECOPI,http://www.indecopi.gob.pe/), established in 1992.
Peru belongs to the World Trade Organization (WTO) and the World Intellectual
Property Organization (WIPO). Peru’s legal framework provides for registration of
trademarks, and inventors have been able to patent their inventions since 1994. Peru’s
1996 Industrial Property Rights Law provides an effective term of protection for patents
and prohibits devices that decode encrypted satellite signals. Peruvian law does not
provide pipeline protection for patents or protection from parallel imports. Peru’s
Copyright Law is generally consistent with the World Trade Organization’s Agreement on
Trade-Related Aspects of Intellectual Property (TRIPS).
Protecting Your Intellectual Property in Peru:
Several general principles are important for effective management of intellectual
property (“IP”) rights in Peru. First, it is important to have an overall strategy to protect
your IP. Second, IP may be protected differently in Peru than in the United States. Third,
rights must be registered and enforced in Peru, under local laws. For example, your U.S.
trademark and patent registrations will not protect you in Peru. There is no such thing as
an “international copyright” that will automatically protect an author’s writings throughout
the entire world. Protection against unauthorized use in a particular country depends,
basically, on the national laws of that country. However, most countries do offer
copyright protection to foreign works under certain conditions, and these conditions have
been greatly simplified by international copyright treaties and conventions.
Registration of patents and trademarks is on a first-in-time, first-in-right basis, so you
should consider applying for trademark and patent protection even before selling your
products or services in the Peru market. It is vital that companies understand that
intellectual property is primarily a private right and that the U.S. government cannot
enforce rights for private individuals in Peru. It is the responsibility of the rights' holders
to register, protect, and enforce their rights where relevant, retaining their own counsel
and advisors. Companies may wish to seek advice from local attorneys or IP consultants
who are experts in Peruvian law. The U.S. Commercial Service can provide a list of local
lawyers upon request.
While the U.S. Government stands ready to assist, there is little we can do if the rights
holders have not taken these fundamental steps necessary to securing and enforcing
their IP in a timely fashion. Moreover, in many countries, rights holders who delay
enforcing their rights on a mistaken belief that the USG can provide a political resolution
to a legal problem may find that their rights have been eroded or abrogated due to legal
doctrines such as statutes of limitations, laches, estoppel, or unreasonable delay in
prosecuting a law suit. In no instance should U.S. Government advice be seen as a
substitute for the responsibility of a rights holder to promptly pursue its case.
It is always advisable to conduct due diligence on potential partners. A good partner is
an important ally in protecting IP rights. Consider carefully, however, whether to permit
your partner to register your IP rights on your behalf. Doing so may create a risk that
your partner will list itself as the IP owner and fail to transfer the rights should the
partnership end. Keep an eye on your cost structure and reduce the margins (and the
incentive) of would-be bad actors. Projects and sales in Peru require constant attention.
Work with legal counsel familiar with Peruvian laws to create a solid contract that
includes non-compete clauses, and confidentiality/non-disclosure provisions.
It is also recommended that small and medium-size companies understand the
importance of working together with trade associations and organizations to support
efforts to protect IP and stop counterfeiting. There are a number of these organizations,
both Peruvian or U.S.-based. These include:
• The U.S. Chamber and local American Chambers of Commerce
• National Association of Manufacturers (NAM)
• International Intellectual Property Alliance (IIPA)
• International Trademark Association (INTA)
• The Coalition Against Counterfeiting and Piracy
• International Anti-Counterfeiting Coalition (IACC)
• Pharmaceutical Research and Manufacturers of America (PhRMA)
• Biotechnology Industry Organization (BIO)
IP Resources
A wealth of information on protecting IP is freely available to U.S. rights holders. Some
excellent resources for companies regarding intellectual property include the following:
• For information about patent, trademark, or copyright issues -- including
enforcement issues in the US and other countries -- call the STOP! Hotline: 1-
866-999-HALT or visit www.STOPfakes.gov.
• For more information about registering trademarks and patents (both in the U.S.
as well as in foreign countries), contact the U.S. Patent and Trademark Office
(USPTO) at: 1-800-786-9199, or visithttp://www.uspto.gov/.
• For more information about registering for copyright protection in the United
States, contact the U.S. Copyright Office at: 1-202-707-5959, or visithttp://www.copyright.gov/.
• For more information about how to evaluate, protect, and enforce intellectual
property rights and how these rights may be important for businesses, please
visit the “Resources” section of the STOP fakes website athttp://www.stopfakes.gov/resources.
• For information on obtaining and enforcing intellectual property rights and
market-specific IP Toolkits visit: www.stopfakes.gov/businesss-tools/country-ipr-
toolkits. The toolkits contain detailed information on protecting and enforcing IP in
specific markets and also contain contact information for local IPR offices abroad
and U.S. government officials available to assist SMEs.
• The U.S. Department of Commerce has positioned IP attachés in key markets
around the world. The IP attaché who covers Peru is: Albert Keyack (based in
Brazil) [email protected].
Due Diligence Return to top
U.S. businesses considering exporting to or investing in Peru should perform due
diligence on their potential clients, associates, or partners. As a first step, the
International Company Profile (ICP) program of the U.S. Commercial Service can
provide a background check on the reliability of potential clients or partners. The ICP
report includes information on a company’s owners, year established, size, sales,
financial information and reputation in the market. The Commercial Service and the
Economic Section of the U.S. Embassy in Peru are also available to provide commercial
and economic briefings to U.S. businesspersons traveling to Peru.
Local Professional Services Return to top
Private Banks
Banco Azteca:http://www.bancoazteca.com.pe
Banco Cencosud:http://www.bancocencosud.com.pe
Banco de Comercio:http://www.bancomercio.com.pe
Banco de Crédito:http://www.viabcp.com
Banco Falabella:http://www.bancofalabella.com.pe
Banco Financiero:http://financiero.com.pe
Banco GNB Peru:http://bancognb.com.pe
Banco Interamericano de Finanzas:http://www.bif.com.pe
Banco Internacional del Peru – Interbank:http://www.interbank.com.pe
Banco Ripley:http://www.bancoripley.com.pe
Banco Santander:http://www.santander.com.pe
BBVA Banco Continental:http://www.bbvabancocontinental.com.pe
Deutsche Bank:http://www.db.com.pe
Mibanco:http://www.mibanco.com.pe
Scotiabank:http://scotiabank.com.pe
Accounting/Business Consultants
Apoyo S.A.: economic studies, business consulting, market research, opinion surveys,
multi-customer studies, strategic communication:http://www.apoyo.com/default_eng.asp
(Bilingual)
ConsultAndes: executive advisory, business development, public relations, community
relations and public responsibility, crisis management, corporate communications,
security:http://www.consultandes.com.pe (Bilingual)
DBM: outplacement consultant and career transition services:http://www.dbmperu.com
ERM: environmental consulting services:http://www.erm.com/en/Locations/Peru
Ernst & Young: accounting, auditing and tax advisory:http://www.ey.com
KPMG Caipo y Asociados: auditing, tax and financial advisory:http://www.pe.kpmg.com
LB&C Logistics Business & Consulting: supply chain security, international trade, legal
services:http://www.lbcperu.com
Macroconsult: economic studies, business consulting, market research, infrastructure,
regulation and competition, investment banking:http://www.macroconsult.com.pe
(Bilingual)
Malaga - Webb & Asociados: business restructuring, continuous improvement, corporate
finance:http://www.malaga-webb.com
Organizacion Cuanto: economic studies, social studies, polls, market research:http://www.cuanto.org
Pricewaterhouse Coopers SCRL: auditing, accounting, tax and legal services:http://www.pwc.com
Credit Rating Agencies
Coface Peru:http://www.coface.com.pe
Dun & Bradstreet S.A.C.:http://www.dnbperu.com.pe/eng_default.asp
Informa Peru S.A.:http://www.informadelperu.com
Credit Reporting Agencies
Experian Peru:http://www.datacredito.com.pe
Infocorp/Equifax:http://www.equifax.com/home/es_pe
Sentinel:http://www.sentinelperu.com
Xchange Peru:http://www.xchange.com.pe
Executive Search
Amrop Hever:http://www.amrop.com
Boyden International:http://www.boyden.com/offices/lima
Korn/Ferry International:http://www.kornferry.com
Tasa Worldwide:http://www.tasaworldwide.com/index_en.html
Law Firms
Barreda Moller:http://www.barredamoller.com/en (Bilingual)
Barrios, Fuentes, Urquiaga Abogados:http://www.bafur.com.pe (Bilingual)
Estudio Aurelio Garcia Sayan Abogados:http://www.garciasayan.com (Bilingual)
Estudio Echecopar:http://www.echecopar.com.pe (Bilingual)
Estudio Ferrero Abogados:http://www.ferrero.com.pe
Estudio Grau Abogados:http://www.estudiograu.com (Bilingual)
Estudio Olaechea:http://www.esola.com.pe (Bilingual)
Muniz, Ramirez, Perez-Taiman & Luna Victoria Abogados:http://www.munizlaw.com
(Bilingual)
Payet, Rey, Cauvi Abogados:http://www.prc.com.pe (Bilingual)
Rey & de los Rios Abogados:http://www.reyrios.com/indexeng.htm (Bilingual)
Logistics
Maersk Sealand, ocean carrier:http://www.maerskline.com/peru (Multilingual)
Neptunia S.A.:http://www.neptunia.com.pe (Bilingual)
Ransa, logistics operator:http://www.agenciasransa.net (Spanish)
Scharff Logistica Integrada S.A.:http://www.scharff.com.pe (Bilingual)
Moving
Atlas International Service S.A.:http://www.atlasperucorp.com (Bilingual)
Express Transports S.A.:http://www.express.com.pe (Bilingual)
Security International Moving S.A.C., national and international moving:http://www.simoving.com.pe (Bilingual)
Risk-Rating Agencies
Apoyo & Asociados Internacionales S.A.C. Clasificadora de Riesgo:http://www.aai.com.pe
Clasificadora de Riesgo Pacific Credit Rating S.A.C.:http://www.ratingspcr.com
Class & Asociados S.A. Clasificadora de Riesgo:http://www.classrating.com
Equilibrium Clasificadora de Riesgo S.A.:http://www.equilibrium.com.pe
Telecommunications
Claro (Telmex Perú S.A.), telecommunications services:http://www.claro.com.pe
Movistar (Telefonica S.A.), telecommunications services:http://www.movistar.com.pe
Entel (Entel S.A.), telecommunications services:http://www.entel.pe/
Bitel (Bitel S.A.), telecommunications services:http://www.bitel.com.pe/
Web Resources Return to top
Antitrust, Unfair Competition Intellectual Property Protection, Consumer Protection,
Dumping, Standards and Elimination of Bureaucratic Barriers Agency (INDECOPI):http://www.indecopi.gob.pe (Bilingual)
Central Bank:http://www.bcrp.com.pe (Bilingual reports and statistics)
Government Procurement Supervisory Agency:http://www.osce.gob.pe (Spanish)
InPERU, non-profit organization set up by Peru’s main business organizations to
promote foreign investments to Peru:http://inperu.pe (English)
Ministry of Energy and Mines:http://www.minem.gob.pe (Spanish with limited bilingual
content)
Ministry of Foreign Affairs:http://rree.gob.pe/SitePages/home.aspx
National Interconnected System Operation (Comité de Operación Económica del
Sistema Interconectado Nacional, COES-SINAC):http://www.coes.org.pe (Spanish)
OSCE’s opinion on “government to government” procurement:http://portal.osce.gob.pe/osce/sites/default/files/Documentos/legislacion/Legislacion
y%20Documentos%20Elaborados%20por%20el%20OSCE/Opiniones-2012/078-
12%20-%20PRE%20-%20MINDEF%20-
%20Ambito%20aplic.LCE%20contrat.gob.%20a%20gob.%20ver.final.doc (Spanish)
Peru Export and Tourism Promotion Board, PromPeru:http://www.promperu.gob.pe
(Spanish)
Peru Travel, Peru Travel Information and Vacations Guide:http://www.peru.travel
Private Investment Promotion Agency – ProInversión:http://www.proinversion.gob.pe
(Bilingual)
Public Registry (SUNARP):http://www.sunarp.gob.pe (Spanish)
Securities and Exchange Supervisory Agency (SMV):http://www.smv.gob.pe (Spanish)
SUNAT – Peruvian foreign trade statistics:http://www.aduanet.gob.pe/aduanas/informae/boleindi.htm
SUNAT - Information for Foreign Investors:http://inversionistaextranjero.sunat.gob.pe
Tax and Customs National Superintendence (SUNAT):http://www.sunat.gob.pe
(Spanish)
United Nations Office for Project Service:http://www.unops.org (Bilingual)
U.S. Trade Representative (USTR):http://www.ustr.gov
Return to table of contents
Return to table of contents
Chapter 4: Leading Sectors for U.S. Export and Investment
Commercial Sectors
• Construction Equipment
• Electronic Commerce
• Food Processing & Packaging Equipment
• Industrial Chemicals
• Medical Equipment
• Mining Industry Equipment
• Plastic Resins
• Security & Safety Equipment
Agricultural Sectors
• Beef and Offal
• Biofuels (Ethanol)
• Cotton
• Dairy Products (Whey, Cheese)
• Forest Products
• Hard Wheat
• Pet Food
• Soybean Meal
• Yellow Corn
Construction Equipment
Overview Return to top
Unit: USD millions
2013 2014
2015
(estimated)
2016
(estimated)
Total Market Size 2,338 2,222 2,288.6 2,345.2
Total Local Production N/A N/A N/A N/A
Total Exports 111 98 100.9 103.5
Total Imports 2,449 2,320 2,389.6 2,449.6
Imports from the U.S. 520 565 582 601
Exchange Rate: 1 USD 2.80 2.85 3.20 3.30
Total Market Size =(Total Local Production +Total Imports) – (Total Exports)
Data Sources: Global Trade Atlas
2014 Import Market Share (percent for U.S. and major competitors): United States 20.3;
Brazil 18.2; China 14.1; J apan 10.6; Germany 5.4; South Korea 4.2.
The Peruvian construction sector has substantially upgraded itself by importing modern
construction equipment like mixers, cranes, excavators, dump trucks, and other
equipment, which led to a drastic reduction in construction times. This allowed the
construction sector to begin work on several large mines, power generation plants,
natural gas production facilities and transportation projects creating extensive growth.
Modernizing the construction industry also aided the residential and office building
boom, which increased overall infrastructure development.
Peru’s past rapid economic growth created a large infrastructure gap, which some
experts estimate surpasses USD$80 billion. The need for roads, ports, airports, water,
sewage, telecommunications, and electrical lines is apparent. The Peruvian government
has ambitious plans to bridge the infrastructure gap with massive projects that will
contribute to the majority of the growth within the construction sector. Planned
investments include the development of regional school infrastructure (USD$223.0
million), road projects in the J unín and Huallaga regions (USD$953.0 million), and
infrastructure development of Huallaga region (USD$285.0 million). Business Monitor
International estimates that the Peruvian construction sector will see a 2% real growth
with a total industry value of USD$12.7 billion in 2015. The construction sector accounts
for 5.0% of Peru’s overall GDP.
Another significant change in the construction sector is the emergence of the Peruvian
government as a partner to the private sector. In May of 2008, the government passed
the Public-Private Partnerships (PPPs) legislative decree, which aims at facilitating the
private investment promotion process through the creation, development, improvement,
operation and maintenance of public infrastructure or the provision of public services,
such as the Works for Taxes law (Obras por Impuestos). Under this initiative, a private
company or a consortium is able to fund and execute government-approved public
projects in lieu of the taxes they would have originally paid. The Works for Taxes law is a
way to leverage the efficiency of private sector, while tackling Peru’s infrastructure
needs.
Sub-Sector Best Prospects Return to top
The figures below represent each product’s share of Peru’s 2014 total imports in this
sector.
HTS Code Description %
842952 Mech Shovels Excavators Etc W 360 Degree Sprstruc 22.3
842951 Mech Front-End Shovel Loaders, Self-Propelled 15.4
843149 Parts And Attachments Nesoi For Derricks Etc. 9.2
847490 Parts Of Mach For Sorting Etc Earth Stone Ores Etc 6.1
847420 Crushing/Grinding Mach For Earth Stone Mnerl Subs 5.6
843049 Boring Or Sinking Mach Nesoi, Not Self-Propelled 5.4
843041 Boring Or Sinking Machinery, Nesoi, Self-Propelled 5.1
842959 Mech Shovels, Excavators And Shovel Loaders Nesoi 4.9
842911 Bulldozers And Angeldozers, Self-Prop, Track Lay 4.7
843139 Pts For Lifting, Hndlng, Loading/Unldng Mach Nesoi 3.8
Opportunities Return to top
Growth in the construction sector will be spurred by high demand in several areas. The
need for transportation and communications infrastructure will contribute to growth of the
construction sector, while the start/continuation of mining and energy projects and the
continued demand for housing and office facilities will further boost the market.
Peru’s housing deficit is estimated at 4 million homes and the government’s plans to
address this will contribute to the construction sector’s growth. According to government
estimates, only one third of all houses were built with a legal building permit. The
Ministry of Housing, Construction and Sanitation is attempting to formalize the housing
sector by creating affordable housing. According to a study released in April 2014 by the
government’s Fondo MiVivienda (MyHome Fund), over the next two years some
196,000 households plan to buy a home and approximately 276,000 families will
improve or expand their homes. MiVivienda will promote 219,462 housing projects by
offering favorable interest rates for 2016.
Peru’s growing construction sector provides a wide variety of investment and business
opportunities. While growth has slowed industry experts predict the sector to continue to
grow around 4% per annum for the next couple of years. The need for construction
equipment and materials will remain in demand because of ongoing and future projects.
Important projects requiring substantial capital investment include:
• Lima and Callao Metro line 2 and Av. Gambeta Branch, with an estimated
investment of USD$5.7 billion and a construction period of just over five years.
(Awarded April 2014)
• Cusco’s Chinchero International Airport with an estimated investment of USD$
658.0 million and the possibility of further expenditures on expansion. (Awarded
April 2014)
• Southern Gas Pipeline, with an estimated investment of USD$4.0 billion.
(Awarded J uly 2014)
Web Resources Return to top
Association for the Promotion of National Infrastructure - AFIN:http://www.afin.org.pe
(Spanish)
Business Monitor International - Industry Trend Analysis - Ambitious Infrastructure
Agenda To Fall Short
Fondo MiVivienda (MyHome Fund):http://www.mivivienda.com.pe/ (Spanish)
Global Trade Atlas:http://www.gtis.com/gta/
Peruvian Chamber of Construction – CAPECO:http://www.capeco.org/ (Spanish)
Private Investment Promotion Agency – ProInversión:http://www.proinversion.gob.pe/
(bilingual)
ProInversión Project Presentation - Projects portfolio 2014-2015 (April 2014, in English):http://www.proinversion.gob.pe/RepositorioAPS/1/2/J ER/PROJ ECT_PRESENTATION/p
pt%20de%20proyectos%20ingles_pptx%20.pdf
Ministry of Transportation and Communications:http://www.mtc.gob.pe/ (Spanish)
National Institute of Statistics and Informatics – INEI:http://www.inei.gob.pe/ (Spanish)
Electronic Commerce
Overview Return to top
Even though e-commerce transactions in Peru are still low, the growth in the last two
years is meaningful. The number of credit card transactions in virtual stores grew from
2.2 million in 2012 to 4.1 million in 2014, representing an 89% increase in two years.
Simultaneously, the dollar amount traded has increased 179%, growing from USD$
668.0 million in 2012 to USD$ 1.868 billion in 2014.
By the end of 2014, the number of Internet users in Peru was estimated at 12,584,000
with a market penetration rate of 38%. This figure is still well below countries like
Panama, Chile, Argentina, Mexico, Brazil, and Colombia, all of which exceed 50%
market penetration. Furthermore, access to financing barely reached 30% (in other
words, 30% of the population has at least one bank account), which is below the
regional average of 50%.
However, internet access is expected to grow in the future through the deployment of
cellular phones and broadband networks. In 2014, the mobile market expanded to 31.9
million lines, representing a high national density of 107% (more lines than population).
In addition, the project of the “Red Dorsal de Fibra Optica” (Fiber optic network) is
currently in execution. This project aims to reduce the cost of Internet access and is
scheduled to begin operations in mid-2016.
Sub-Sector Best Prospects Return to top
Peruvian users spend 18.2 hours per month on the Internet, the second highest average
in Latin America and surpassed only by Argentina. The vast majority of Internet users
are men between the ages of 15-24 who account for 56% of total internet users. A
Peruvian newspaper, El Comercio, reported that 19 million Peruvians will be able to
access the Internet in 2019. Regarding the Business to Consumer (B2C) market,
Peruvian consumers account for 7% of total online purchases and 2% (USD$ 1.250
billion) of the total Latin American market of online purchases. This is largely explained
by the low penetration rates, lack of confidence in online security, lack of financial
means, and lack of education.
Out of Peru’s 200 top private companies only 72% conducted electronic transactions
through their own website or through a third party. On the regulatory side, SUNAT
(Peru’s tax authority) uses electronic means to exercise the detailed control of tax
collection. Therefore, SUNAT has issued a regulation to establish the electronic invoice,
“norma de la Factura Electronica” (Resolution No. 188-2010-SUNAT). However, in Peru
there is no comprehensive state policy to promote the widespread growth of ICT
including e-commerce, as in other countries.
In the case of B2B, businesses are beginning to use their own custom email domain
servers instead of using an informal personal email address (like Hotmail or Gmail) to
conduct business. The new trend of owning your own email domain allows Peruvian
businesses to legitimize their companies and is becoming standard amongst Peruvian
companies.
Since 2012, the Lima Chamber of Commerce of Lima has promoted Cyber Monday,
which takes place on the Monday following the U.S. holiday “Thanksgiving.” Cyber
Monday usually occurs in late November or early December. Also since 2014, the Lima
Chamber promotes CyberMami which was held on April 29 and 30 in 2015 right before
the Peruvian mother’s day holiday, which is traditionally held the second Sunday of May.
Some companies, like the Saga Falabella department store, have also launched their
own seasonal offers like Madrugo, which takes place when a new season arrives.
Opportunities Return to top
The Lima Chamber of Commerce predicts that in 2015 there will be a 50% increase in e-
commerce sales. This favorable outlook is due to the expected number of sales related
to food and entertainment industries. Lima continues to be the country’s main economic
hub, and other cities like Cusco, Trujillo, and Chiclayo are starting to make a positive
economic impact.
A 2014 survey showed that 75% of the population owned a cellphone, with 16% being
smartphone users. In addition, smartphones accounted for 49% (6.7 million units) of
mobile equipment sold nationwide. The growth of smartphone users allows for better
access to internet, which allows users to make purchases via mobile applications. It is
estimated that food products, apparel, and utility bills (home phones) are the payments
most conducted via mobile applications by consumers.
Web Resources Return to top
Peruvian Chamber of Electronic Commerce (CAPECE)http://www.capece.org.pe
(Spanish only)
Lima Chamber of Commerce (CCL)http://www.camaralima.org.pe (Spanish only)
Peruvian Banks Association (ASBANC)http://www.asbanc.pe/contenidoweb/Default.aspx?ref=8&cont=83 (Spanish only)
Food Processing & Packaging Equipment
Overview Return to top
Unit: USD millions
2013
2014
2015
(estimated)
2016
(estimated)
Total Market Size 359.3 438.1 451.2 462.5
Total Local Production N/A N/A N/A
Total Exports 16.6 15.8 16.3 16.7
Total Imports 375.9 453.9 467.5 479.2
Imports from the U.S. 55.4 111.9 115.3 118.2
Exchange Rate: 1 USD 2.80 2.85 3.20 3.30
Total Market Size =(Total Local Production +Total Imports) – (Total Exports)
Data Sources: Global Trade Atlas
2014 Import Market Share (percent for U.S. and major competitors): United States 24.7;
Germany 22.0; Italy 14.9; China 7.2; Spain 4.2; Belgium 4.2; Brazil 3.4.
The ever-growing reputation of Peru’s culinary culture has brought about a marked
increase in locally produced packaged and non-perishable foods. This new trend is
expanding the use of native Peruvian ingredients, such as fruits, peppers and Andean
cereals, which increases the attraction and marketability of products for a variety of
reasons. Consumers are slowly shifting towards packaged and prepared foods because
of the items’ decreased risk of contamination and increased lifespan. Peru’s growing
middle class is now willing to pay slightly higher prices for peace of mind. Products such
as cheese, oils, fats, spreads, and baked goods are benefiting from the shift in
consumers’ preferences.
Sub-Sector Best Prospects Return to top
The figures below represent each product’s share of Peru’s 2014 total imports in this
sector.
HTS Code Description %
843830 Machinery For Sugar Manufacture
44.36
842129 Filter/Purify Machine & Apparatus For Liquid Nesoi
11.98
841950 Heat Exchange Units, Industrial Type
7.96
841869 Refrigerating/Freezing Equipment, Nesoi
7.29
841989 Machine Etc For Mat'L Treatment By Temp Cont Nesoi
5.95
841940 Distilling Or Rectifying Plant
4.44
842230 Machinery For Filling, Closing Bottles, Etc
2.77
842290 Parts For Machines For Dishwashing, Packing, Etc
2.12
842240 Packing Or Wrapping Machinery, Nesoi
2.06
841981 Machinery Etc For Making Hot Drinks Cooking Heatng
1.51
Best prospects include fully integrated high technology equipment and machinery for
processing and packaging purposes. This includes machinery for sugar manufacture;
machinery for filling, closing, sealing, and labeling bottles, cans, bags or other
containers; machinery for encapsulating bottles, jars, tubes and similar containers;
machinery for aerating beverages; dairy machinery, heat exchange units; other packing
or wrapping machinery. Peruvians prefer U.S. technologies for closing, sealing labeling
equipment, and rigid containers
Opportunities Return to top
EXPOALIMENTARIA PERU 2015 – International tradeshow of goods and services
related to the food and beverages industry.
August 26 to 28, 2015 – J ockey Exhibitions Center, Lima
http://www.expoalimentariaperu.com/en/
Web Resources Return to top
Global Trade Atlas:http://www.gtis.com/gta/
Ministry of Production (Industry & Fisheries):http://www.produce.gob.pe (Spanish)
National Society of Industries:http://www.sni.org.pe/ (Spanish)
Industrial Chemicals
Overview Return to top
Unit: USD millions
2013 2014
2015
(estimated)
2016
(estimated)
Total Market Size 937.8 958.5 838.0 1,021.8
Total Local Production N/A N/A N/A N/A
Total Exports 424.3 408.7 434.1 328.1
Total Imports 1,362.1 1,337.2 1,272.1 1,338.1
Imports from the U.S. 368.0 359.0 308.56 316.3
Exchange Rate: 1 USD 2.80 2.85 3.20 3.30
Total Market Size =(Total Local Production +Total Imports) – (Total Exports)
Data Source: Global Trade Atlas
2014 Import Market Share (percent for U.S. and major competitors): United States 24.6;
China 20.2; South Korea 8.5; Mexico 5.4; Brazil 4.8; Germany 4.7; Chile 4.1; India 3.4.
Peru has consistently depended on industrial chemical imports, owing to an increase in
public and private investment in infrastructure development. The local demand for
industrial chemicals is exceeding what can be produced locally, which is limited to
acetylene, sulfuric acid, nitrogen, and oxygen. Plastics in primary forms such as
polyethylene, polystyrene, polypropylene are imported from abroad.
Main U.S. exports to Peru are nitrile-function compounds, mixed alkybenzenes,
saturated acyclic nonocarbox acid and anhydrous, halogon, coloring matter and
carbonates. Industrial chemicals are an essential part in the following industries: textiles,
cosmetics, plastics, paints, paper, detergents, and pharmaceuticals.
Sub-Sector Best Prospects Return to top
The figures below represent each product’s share of Peru’s 2014 total imports in this
sector.
HTS Code Description %
2837 Cyanides, Cyanide Oxides And Complex Cyanides 6.33
3204 Syn Org Coloring Matter & Prep; Syn Org Brit Agent 5.76
3402 Organic Surf-Act Agents, Preps & Cleaning Preps 5.48
2926 Nitrile-Function Compounds 4.65
3817 Mixed Alkylbenzenes & Mixed Alklnaphthalenes, Nes 4.24
2835 Phosphinates, Phosphonates, Phosphates & Polyphosp 3.83
3206 Coloring Matter Nesoi; Coloring Prep Nesoi, Etc. 3.66
3506 Prepared Glues & Adhesives Nesoi; Glue Retail Pack 3.64
2915 Sat Acyclic Nonocarbox Acid & Anhyd, Halogon Etc 3.52
2905 Acyclic Alcohols & Halogenat, Sulfonatd Etc Derivs 3.48
Opportunities Return to top
Peru’s decade-long strong economic performance in the construction and mining sectors
continues to increase demand for a variety of industrial chemicals. U.S. exporters would
be smart to identify local representatives that can help them seize the opportunities of
the increased demand.
Web Resources Return to top
Global Trade Atlas:http://www.gtis.com/gta/
Manufacturer’s Society – Chemical Industry Committee:http://comitedelaindustriaquimica-sni.com/l/ (Spanish)
National Institute of Statistics and Informatics – INEI:http://www.inei.gob.pe/ (Spanish)
Private Investment Promotion Agency – ProInversión:http://www.proinversion.gob.pe/
(bilingual)
Medical Equipment
Overview Return to top
Unit: USD millions
2013
2014
2015
(estimated)
2016
(estimated)
Total Market Size 330.1 312.1 321.5 329.5
Total Local Production N/A N/A N/A N/A
Total Exports 9.7 10.8 11.1 11.4
Total Imports 339.8 322.9 332.6 340.9
Imports from the U.S. 76.8 69.0 71.1 72.9
Exchange Rate: 1 USD 2.80 2.76 3.20 3.30
Total Market Size =(Total Local Production +Total Imports) – (Total Exports)
Data Sources: Global Trade Atlas
2015 Import Market Share (percent for U.S. and major competitors): United States 21.4;
China 17.8 Germany 13.5; J apan 7.2; South Korea 4.7; Brazil 3.5.
The Peruvian healthcare sector is composed of public sector entities such as Seguro
Integral de Salud (government health insurance), Ministry of Health, EsSalud (social
security), and military hospitals. The private healthcare sector is primarily composed of
civil society organizations and insurance companies known as Entidades Prestadores de
Salud (EPS) that have expanded their services to include the administration of private
clinics and emergency centers in order to reduce their operating costs. A recent study
shows that approximately 67% of the population has some type of health insurance, and
Peruvians are becoming more conscious of their healthcare and the costs associated
with maintaining it.
Peru is the eighth most populous country in the region with an average life expectancy of
75 years. According to the World Bank, Peru’s annual health care expenditures in 2013
were 5.1% of the GDP, which points towards a promising future for the Peruvian
healthcare sector. In J uly 2014, President Humala announced a USD$2.6 billion
investment plan over the next two years (2015-2016) to build and improve a variety of
infrastructure projects, including upgrading and equipping several hospitals and
healthcare centers with new equipment. Another initiative is the Works for Taxes law
(Obras por Impuestos), which allows a private company or a consortium to fund and
execute government approved public projects in lieu of the taxes they would have
originally owed. The Works for Taxes law is a way to tackle Peru’s infrastructure
development with the quicker and more efficient response time that the private sector
can offer.
The purchasing of medical equipment and devices is regulated under the Ministry of
Health through the Direccion General de Medicamentos, Drogas e Insumos (DIGEMID).
Under current regulations, the importation of preowned medical equipment is limited to
individual physicians for their own personal use.
To become a medical equipment supplier, Peruvian law requires the local representative
to register with the Peruvian Sanitary Registry, which is the list of government approved
medical equipment and devices suppliers.
Sub-Sector Best Prospects Return to top
The figures below represent each product’s share of Peru’s 2014 total imports in this
sector.
HTS Code Description %
901890 Instrument and appliances for medical, surgical, dental
22.42
901839 Needles, caterers and others
8.42
902139 Artificial J oints, parts and accessories
7.34
901850 Other ophthalmic instruments and appliances, parts
6.6
902214 Apparatus base on X-ray, medical, surgical, veterinary
5.23
901819 Electro-diagnostic apparatus and parts.
4.55
902131 Other artificial joints and parts and accessories thereof
4.27
300510 0Adhesive dressings and other articles having adhesive
3.77
902110 Orthopedic or fracture appliances, parts and accessories
3.44
901920 Ozone, oxygen, therapy, respiration apparatus and parts
3.42
Best prospects include diagnostic imaging equipment as the country invests in its
radiology infrastructure. Other prospects are emergency room equipment and products,
orthopedics, patient aids, and dental products.
Opportunities Return to top
Peru’s rising middle class and growth in disposable income is fueling the demand for
improved healthcare services in and around Lima. Peruvians are spending more money
on quality elderly care and treatment for cancer, cardiovascular diseases, and diabetes.
Approximately 6.5% (2 million) of Peru’s total population are 65 years old or older.
The government's forward approach on prioritizing and enhancing the country's
healthcare system will yield opportunities for foreign medical equipment and device
suppliers. The government announced it would invest in the health sector with plans
including the construction of ten hospitals, 200 healthcare centers, blood banks, and a
telemedicine system.
Peru’s local healthcare-related manufacturing is limited to consumables, basic electro
diagnostics and hospital furniture, which explains Peru’s low export volumes. Regional
governments and private companies look towards foreign medical equipment and device
suppliers to fulfill the demand. This market trend creates vast opportunities for U.S.
businesses that specialize in state of the art equipment such as computed tomography
(CT) scanners, robotic radiosurgery system, and gamma knives.
Key Industry Events
Tecnosalud 2015 – International tradeshow of goods and services related to the
healthcare sector
September 9-11, 2015, J ockey Exhibition Center, Limahttp://www.tecnosalud.com.pe
Web Resources Return to top
BMI-https://bmo.bmiresearch.com/article/view?article=1054839&iso=PE&active_pillar=Daily Views
The Report – Peru 2015 by the Oxford Business Group
ProInversion - www.proinversion.gob.pe
DIGEMID - www.minsa.digemid.gob.pe
Mining Industry Equipment
Overview Return to top
Unit: USD millions
2013 2014
2015
(estimated)
2016
(estimated)
Total Market Size 3,029.9 2,621.5 1,911.0 1,958.8
Total Local Production N/A N/A N/A N/A
Total Exports 172.7 192.6 215.7 221.1
Total Imports 3,202.6 2,814.1 2,126.7 2179.9
Imports from the U.S. 1,053.6 867.2 862.0 883.6
Exchange Rate: 1 USD 2.80 2.85 3.20 3.30
Total Market Size =(Total Local Production +Total Imports) – (Total Exports)
Data Sources: Global Trade Atlas
2014 Import Market Share (percent for U.S. and major competitors): United States 30.8;
Brazil 11.4; Germany 10.9; China 10.8; J apan 5.0; Mexico 4.5; United Kingdom 2.8;
Chile 2.5.
The mining industry has always been an essential part of the history and development of
Peru and continues to play an important role in the Peruvian economy. The mining
sector accounts for 52% of total exports making it Peru’s top export sector. Much of this
growth is driven by 54 Greenfield and expansion projects with a total investment value of
USD$45.0 billion, accounting for most of the country’s private investment.
In recent years, the mining industry has had to overcome many challenges, such as the
negative press associated with increased illegal gold mining operations destroying the
Amazon, causing the industry to become unfavorable in the public eye. As a result,
regions like Piura, Cajamarca, Arequipa, Cuzco, Moquegua, and Puno experienced
social conflicts and mass demonstrations. In some cases, protestors were motivated by
legitimate fears of environmental degradation while others were motivated by false
information. However, progress has been made to create peace amongst the local
people by both the public and private sectors investing in community development and
relations. The Peruvian government has been working to expand major anti-poverty
initiatives bringing social programs to isolated poor communities that overlap mineral-
rich land.
Sub-Sector Best Prospects Return to top
The figures below represent each product’s share of Peru’s 2014 total imports in this
sector.
HTS Code Description %
847490 Parts Of Mach For Sorting Etc Earth Stone Ores Etc 12.0
842952 Mech Shovels Excavators Etc W 360 Degree Sprstruc 11.3
870423 Truck, Diesel Eng, Gvw >20 Metric Tons 7.8
870410 Dumpers Designed For Off-Highway Use 5.4
842951 Mech Front-End Shovel Loaders, Self-Propelled 5.4
843149 Parts And Attachments Nesoi For Derricks Etc. 4.0
392690 Articles Of Plastics, Nesoi 3.8
841480 Air/Gas Pumps, Compressors And Fans Etc, Nesoi 3.7
842959 Mech Shovels, Excavators And Shovel Loaders Nesoi 3.0
843041 Boring Or Sinking Machinery, Nesoi, Self-Propelled 2.9
842911 Bulldozers And Angeldozers, Self-Prop, Track Lay 2.8
When selling mining equipment to Peru it is important to offer post-sale services. Mining
companies require assembly, maintenance, parts, and operational training.
Peru is ranked amongst the world’s top producers of silver, copper, tin, and zinc thanks
to the country’s abundance in natural resources and a steady flow of private
investments. Currently, 15% of the territory is designated to mining concessions with
less than 2% under mining exploration or production. As of 2014, copper (42.4%) and
gold (33.9%) represent the most profitable of the mining exports.
Opportunities Return to top
Peru is an attractive destination for mining investments due to its large mineral and
metal reserves with major undiscovered deposits. The nation’s legal framework is
designed to attract private investment due to the availability of cadastral and geological
information and the country’s economic stability, which explains the presence of
investors from the U.S., Canada, UK, Australia, Mexico, Brazil, and China. Investments
in the sector have grown exponentially since 1992, reaching a record high of USD$9.7
billion in 2013.
Local officials predict Peru’s mining sector will attract USD$43.9 billion in investments
starting in 2014, a trend that will continue for the next five to ten years. The breakdown
of the estimated expenditures include: expansion (USD$8.8 billion), Environmental
Impact Assessments (USD$21.0 billion) evaluation and construction (USD$2.1 billion),
and exploration (USD$24.1 billion).
Key Industry Events
Peruvian Mining Convention and Trade Show: Perumin, September 21-25, 2015,
Arequipa. Held every two years, this is the most important industry event in Peru.http://www.convencionminera.com/perumin32/
U.S. Pavilion organizer: Kallman Worldwide, Inc.:http://www.kallman.com/exhibitor-zone/forms.php?tradeshowID=182
MINPRO - V Meeting of Miners and Suppliers, November 25-26, 2015, Lima
Grupo DIGAMMA - Rumbo Minerohttp://minproperu.com/index.html
Web Resources Return to top
Global Trade Atlas:http://www.gtis.com/gta/
Ministry of Energy and Mines:http://www.minem.gob.pe/ (limited English content)
Ministry of the Environment:http://www.minam.gob.pe (Spanish)
Ministry of Production:http://www.www.produce.gob.pe/ (Spanish)
National Institute of Statistics and Informatics – INEI:http://www.inei.gob.pe / (Spanish)
National Mining, Petroleum, and Energy Society:http://www.snmpe.org.pe/ (Spanish)
Private Investment Promotion Agency – ProInversión:http://www.proinversion.gob.pe/
(Bilingual)
Environmental Assessment and Control Agency – OEFA:http://www.oefa.gob.pe
(Spanish)
Energy and Mining Regulatory Agency - Osinergmin:http://www.osinergmin.gob.pe
(Spanish)
Plastic Resins
Overview Return to top
Unit: USD millions
2013 2014
2015
(estimated)
2016
(estimated)
Total Market Size 1,423.5 1,454.5 1,380.0 1,414.5
Total Local Production N/A N/A N/A N/A
Total Exports 312.5 372.6 352.1 360.9
Total Imports 1,736.2 1,827.2 1,732.1 1775.40
Imports from the U.S. 486.3 466.2 451.2 462.5
Exchange Rate: 1 USD 2.80 2.85 3.20 3.30
Total Market Size =(Total Local Production +Total Imports) – (Total Exports)
Data Source: Global Trade Atlas
2014 Import Market Share (percent for U.S. and major competitors): United States
25.52; China 12.6; South Korea 9.9; Brazil 8.9; Saudi Arabia 8.5; Colombia 6.1; Taiwan
5.8; Mexico 3.8.
Peru does not have a domestic petrochemical industry; therefore, it relies on imported
resins to support the recent surge in domestic manufacturers of pipes, bags, bottles,
home and office articles, flexible packaging, containers, and toys. Plastic production has
grown 5% in recent years. The industry’s continued success is dependent on a steady
stream of imported resins from foreign suppliers. The agro-export, food and beverages,
textile, leather products, footwear, and chemical sectors rely on imported resins to
continue to increase production and meet the local demand for finished plastic products.
Sub-Sector Best Prospects Return to top
The figures below represent each product’s share of Peru’s 2014 total imports in this
sector.
HTS Code Description %
3901 Polymers Of Ethylene, In Primary Forms 26.1
3902 Polymers Of Propylene Or Other Olefins, Prim Forms 22.9
3907 Polyethers, Expoxides & Polyesters, Primary Forms 13.7
3904 Polymers Of Vinyl Chloride Etc., In Primary Forms 9.5
3920 Plates, Sheets, Film Etc No Ad, Non-Cel Etc, Plast 5.9
3906 Acrylic Polymers In Primary Forms 4.5
3921 Self-Adhesive Plates, Sheets, Film Etc Of Plastics 3.8
3903 Polymers Of Styrene, In Primary Forms 3.6
3919 Polymers Of Vinyl Acetate & Oth Vinyl Polym, Pr Fm 3.6
3909 Amino-Resins, Phenolics & Polyurethanes, Prim Form 1.9
The main sources of consumption and investments of plastic materials are from the
following industries: packaging, beverages (bottles and containers), construction, food,
home and office operations. Local demand continues to be attractive since consumption
and investments continue to grow at promising rates.
Opportunities Return to top
The U.S. is the main supplier of PVC resins for Peru, which are a key element in the
production of PVC pipes. The demand for PVC resins is driven by the increase in use of
PVC pipes in the local construction industry.
Web Resources Return to top
Global Trade Atlas:http://www.gtis.com/gta/
Manufacturer’s Society – SNI; “Institute of Economic and Social Studies” Sector Report
2014:http://www.sni.org.pe/wp-content/uploads/2014/03/RE_Industria_Plasticos_Feb2014.pdf
(Spanish)
National Institute of Statistics and Informatics – INEI:http://www.inei.gob.pe/ (Spanish)
Security & Safety Equipment
Overview Return to top
Unit: USD millions
2013 2014
2015
(estimated)
2016
(estimated)
Total Market Size 269.7 281.5 296.0 303.4
Total Local Production N/A N/A N/A N/A
Total Exports 32.0 30.6 28.1 28.8
Total Imports 299.7 312.1 324.1 332.2
Imports from the U.S. 68.1 70.4 67.4 69.1
Exchange Rate: 1 USD 2.80 2.85 3.20 3.30
Total Market Size =(Total Local Production +Total Imports) – (Total Exports)
Data Sources: Global Trade Atlas
2014 Import Market Share (percent for U.S. and major competitors): China 36.8; United
States 22.6; Germany 4.3; Mexico 4.0; Brazil Taiwan 3.8; Spain 3.2; Italy 2.4.
Demand for residential, industrial and office security equipment remains strong in Peru.
Public opinion polls in Lima and other large Peruvian cities consistently find that
inhabitants have a high sense of insecurity, with many people having been a victim of
robberies or home break-ins.
Companies (headquarters and operation sites), government agencies, and households
continuously invest in a wide range of security equipment designed to prevent break-ins
and to aid security guards. Such instruments include surveillance cameras, alarms,
lights, mesh netting, and barbed wire.
Pistols and revolvers are the most common self-defense weapons used in Peru. The
Ministry of Interior’s National Superintendence of Control of Security Services and
Weapons, Ammunition and Explosives for Civilian Use (SUCAMEC) are in charge of
regulating and enforcing applicable legislation, including issuing licenses to carry
weapons.
In February 1997, the National Society of Mining, Petroleum and Energy (SNMPE)
created an organization called SARCC. The objective of this organization is to support
and coordinate security activities among its corporate members in the mining and energy
sectors. SARCC provides emergency training resources and assist with emergency
situations that threaten the safety of their corporate member’s employees who are
working in remote areas by providing services such as search and rescue operations,
medical evacuation, etc.
Sub-Sector Best Prospects Return to top
The figures below represent each product’s share of Peru’s 2014 total imports in this
sector.
HTS Code Description %
392690 Articles Of Plastics, Nesoi 34.5
630790 Made-Up Textile Articles, Nesoi 6.6
902000 Breathing Appliances & Gas Masks Nesoi; Parts Etc 5.7
830140 Locks Except Motor Vehicle Or Furniture, Base Metl 5.1
853110 Burglar Or Fire Alarms And Similar Apparatus 3.3
842489 Mechanical Appliance For Projecting Liquids Nesoi 3.2
853190 Parts Of Electric Sound Or Visual Signaling Aprts 2.8
842410 Fire Extinguishers, Whether Or Not Charged 2.2
650610 Safety (Incl Sports) Hdgr,Whether/Not Lined/Trimmed 2.2
730830 Drs, Wndws A Frms A Thrshlds Fr Drs, Iron Or Steel 3.6
Peruvian companies and organizations are beginning to develop strategies and
procedures to protect critical information in the event of natural disaster or cyberattacks.
Peruvian companies invest a large percentage of their budgets in physical security
services and technologies, yet little is spent in cybersecurity.
Opportunities Return to top
Companies and homeowners are demanding security equipment making the security
and safety equipment sector in Peru very promising for U.S. exporters. Companies and
private citizens continuously seek preventative equipment such as alarms, surveillance
cameras, and lights. Steady growth in residential and corporate construction indicates
that these products will continue to be in high demand.
Seguritec Peru – International trade show
May 26-28, 2016http://www.thaiscorp.com/seguritec
Web Resources Return to top
Global Trade Atlas:http://www.gtis.com/gta/
Ministry of the Interior:http://www.mininter.gob.pe/
National Security Association:http://sociedadnacionaldeseguridad.org/
Agricultural Sectors Return to top
Product Statistics & Data (PS&D) Code: Hard Wheat (1000 MT—not US$)
2012 2013 2014
Total Market Size 1,927 2,038 1,879
Total Local Production 230 233 240
Total Exports 0 0 0
Total Imports 1,697 1,805 1,879
Total Imports from U.S. 246 648 351
Comments: Peru produces about 240,000 metric tons (MT) of soft wheat annually, which
is used locally for traditional foods, and is not sold into processing channels. Most wheat
is processed into flour for bread and pasta. The U.S. market share in 2014 was 19
percent. Other important suppliers are Argentina and Canada. Wheat imports into Peru
are duty-free. An 18% value-added tax remains in place.
Product Statistics & Data (PS&D) Code: Cotton (1000 MT)
2012 2013 2014
Total Market Size 85 90 94
Total Local Production 38 32 35
Total Exports 2 0 1
Total Imports 49 58 60
Total Imports from U.S. 48 57 57
Comments: Peruvian textile and apparel exports are undergoing a severe crisis due to
competition from other origins such as Vietnam. Exports are expected at US$2 billion in
2015. The U.S.-Peru Trade Promotion Agreement (PTPA) grants duty-free access to
Peruvian textiles.
Product Statistics & Data (PS&D) Code: Yellow Corn (1000 MT)
2012 2013 2014
Total Market Size 3,163 3,386 3,558
Total Local Production 1,324 1,365 1,225
Total Exports 0 0 0
Total Imports 1, 839 2,021 2,333
Total Imports from U.S. 1 220 1,699
Comments: Peru imports corn from Argentina and the United States. Corn from all
origins is imported into Peru duty-free. However, due to the PTPA, Peru cannot assess
the price band levy within our tariff-rate-quota (TRQ) U.S. corn. Yellow corn in Peru is
used mainly for poultry production. At about 42 kilograms per capita, the consumption
rate of poultry is one of the highest in the region. Another good export prospect is Dried
Distillers Grain.
Product Statistics & Data (PS&D) Code: Soybean Meal (1000 MT)
2012 2013 2014
Total Market Size 1,055 1,022 1,100
Total Local Production 0 0 0
Total Exports 0 0 0
Total Imports 1,055 1,022 1,100
Total Imports from U.S. 80 37 12
Comments: Peru imports soybean meal primarily for poultry feed. Bolivia was the
leading soybean meal exporter to Peru in calendar year (CY) 2014 with a 68% market
share. Soybean meal from all origins enters Peru duty-free.
Dairy Products
Whey (MT)
2012 2013 2014
Total Market Size 8,566 9,418 9,063
Total Local Production 0 0 0
Total Exports 0 0 0
Total Imports 8,566 9,418 9,063
Total Imports from U.S. 2,013 3,822 1,727
Comments: Total whey imports into Peru slightly decreased (3.8 percent) in 2014,
mainly driven by price advantage of substitute products. Imports from the United States
decreased 55 percent compared to 2013 due to better prices from other competitors as
Chile and Poland. The U.S. imports market share dropped to second position accounting
for 19 percent of total imports in 2014.
Cheese (MT)
2012 2013 2014
Total Market Size 30,446 33,085 35,898
Total Local Production 26,790 28,613 31,516
Total Exports 38 50 12
Total Imports 3,694 4,522 4,394
Total Imports from U.S. 2,130 2,375 2,416
Comments: In 2014, imports from the United States accounted for 55 percent of the
market. Argentina and Netherlands account for 24 and 5 percent, respectively, of Peru’s
cheese imports. The food processing and food service industries are two main
destinations for this product. The PTPA provides a TRQ of 2,500 MT with a 12 percent
increase per year. Currently the quota is 4,935 MT.
Beef and Offal (MT)
2012 2013 2014
Total Market Size 248,717 250,872 253,208
Total Local Production 229,785 231,299 235,450
Total Exports 74 47 260
Total Imports 19,006 19,620 18,018
Total Imports from U.S. 5,609 8,082 5,541
Comments: Peru´s beef and offal market size slightly increased 1 percent in 2014 with
respect to previous year. An increment of local production supported the market growth.
Nevertheless, U.S. beef and offal imports posted a 31 percent decrease during the same
period. Higher prices forced importers to reduce orders, especially on the offal side. The
U.S. Meat Export Federation has been actively involved in promotional activities within
the region. Peru’s stellar economic performance in years has been instrumental in
driving consumer preferences towards high-quality products.
Pet Food (MT)
2012 2013 2014
Total Market Size 40,336 44,722 49,310
Total Local Production 31,284 33,493
35,500
Total Exports 5,672 5,268 2,434
Total Imports 14,724 16,497 16,244
Total Imports from U.S.
2,972 3,260 3,008
Comments: An emerging middle-class, growing incomes and increasing urbanization all
drive growth of Peruvian household pet owners. Four companies dominate the pet food
sector, leading the category in order of appearance: RintiSA, Nestlé, Molitalia and
Mars. Veterinary clinics and pet shops are important channels for premium, therapeutic
and wet products that register interesting growing rates. In 2014, Argentina (51%),
United States (22%) and Colombia (15%) dominated Peru’s imported pet food market.
Forest Products (US$ Millions)
2012 2013 2014
Total Exports 160 154 165
Total Imports 193 238 264
Total Imports from U.S. 24 17 20
Comments: Mining projects slowing down and construction sector keeping its
performance are driving the forest product market sustained growth. Peruvian imports
are focused on coniferous - softwoods and engineered woods for furniture and structural
purposes. We foresee and opportunity for poles, softwood lumber, OSB and engineered
wood. In 2014, Chile (45%), Ecuador (39%), China (11%) and United States (8%)
dominated Peru’s imported forest products market.
Biofuel (Ethanol) (Liters-Millions)
2012 2013 2014
Total Market Size
Total Local Production
223.7
235
217.5
240
165.4
245
Total Exports 126 148 143
Comments: Ethanol production for calendar year (CY) 2016 is forecast at 160 million
liters, a 33% reduction from our CY 2015 estimate. This sharp decrease is attributable to
the decommissioning of the Maple plant. We forecast domestic ethanol consumption at
172 million liters in CY 2016, up 7 million liters compared to our 2015 estimate. Peru is
currently mandating a 7.8% ethanol blend rate with gasoline. We foresee Peruvian CY
2016 ethanol exports at about 69 million liters, a significant reduction from the 156
million liters estimated for 2015, up by 5 million liters or over 3% compared to our CY
2015 estimate of 160 million liters. Ethanol imports in 2016 are forecast at 80 million
liters.
Return to table of contents
Total Imports 114.7 125.5 63.4
Total Imports from U.S. 114.7 113.0 57.1
Return to table of contents
Chapter 5: Trade Regulations, Customs and Standards
• Import Tariffs
• Trade Barriers
• Import Requirements and Documentation
• U.S. Export Controls
• Temporary Entry
• Labeling and Marking Requirements
• Prohibited and Restricted Imports
• Customs Regulations and Contact Information
• Standards
• Trade Agreements
• Web Resources
Import Tariffs Return to top
The entering into force of the Peru Trade Promotion Agreement eliminated duties on
80% of qualifying capital goods since February 1, 2009. The remaining dutiable items
have a phase out schedule from 6 to 17 years. Peru imposes no duties on 56% of the
items in its tariff schedule (4,224 codes covering some agricultural and intermediate
goods, capital goods not produced locally, drip irrigation systems, some vehicles, books,
some information technology items, cement, liquefied petroleum gas, some fuels, energy
saving bulbs, and bank notes); 6% duties on 34% of the items (2,538 codes mainly
regarding consumer goods and some intermediate goods); and 11% duties on 10% of
the items (792 codes including rice, sugar, vegetables, dairy products, beef and beef
products, chocolate, textiles, apparel, footwear, and other agricultural products). The
non-weighted average tariff is 3.2% (including surcharge), down from over 60% in the
mid-1990s.
Most imports (93% of codes) are also subject to an 18% value added tax (VAT), as are
domestically produced goods. In addition, an excise tax (ISC) is applied to certain
products such as tobacco and alcoholic beverages. There are no quantitative import
restrictions.
Trade Barriers Return to top
In March 1991, Peru introduced an import surcharge on a number of basic agricultural
commodities; rice, corn, sugar and dairy products are still subject to potential
surcharges. The government argues that the surcharges are necessary to offset
exporting countries’ subsidies. The surcharges were calculated on a weekly basis,
according to prevailing international prices for each commodity. The government
however began reducing the surcharges in increments in April 1994. In J uly 2001 this
system was replaced by a "price band system" similar to that of the Andean Community.
Thanks to the PTPA, U.S. agricultural goods are no longer subject to this price band
system. Due to decreasing international prices, the surcharge on agricultural imports to
Peru under the price band system is currently in effect for non U.S. exporters. This
situation benefits U.S.-origin agricultural exports, providing American exporters with an
advantage over international competitors in the Peruvian market.
The Peruvian tax and customs agency, Superintendencia Nacional de Administracion
Tributaria (SUNAT), implemented in recent years new systems for collecting taxes (VAT
and income) in advance as a means to assure tax collection throughout the distribution
channel and to increase revenues. This system may not cause much trouble to some
sectors but others are being hurt because their margins are smaller than the advanced
payments.
Import Requirements and Documentation Return to top
For imports, Customs (SUNAT) requires a Customs Merchandise Declaration (DAM – in
Spanish), a commercial invoice, an airway bill or bill of lading, a packing list, and an
insurance letter. If the product is imported from other Andean Community members
(Colombia, Ecuador and Bolivia), a certificate of origin is required to qualify for tariff
preferences. Several imports are subject to antidumping and countervailing duties. The
list of products and countries is available at www.aladi.org. A certificate of origin is
required for these products coming from other countries to avoid these duties. U.S. firms
have experienced delays clearing products through Customs as a result of this
requirement.
A food sanitary registry is required for processed food products (issued by DIGESA’s
Food and Environmental Health Bureau or a Sanitary Certificate for animal, plants, or
their by-products issued by SENASA).
Goods can be brought into the country and kept in a bonded warehouse without paying
import duties for up to twelve months. During that period the importer can pay the duties
on the goods kept in the warehouse and clear customs, or re-export them. This can be
done for the entire shipment or it can be broken down according to the importer’s needs.
Sanitary and Phytosanitary Regulations are drafted, implemented and enforced by
SENASA. U.S. exporters are encouraged to request from SENASA an updated list of
SPS requirements through the importer before shipping products to Peru.
For food and beverages, the importer must submit a sworn application to DIGESA
accompanied by a Certificate of Free Trade and Use issued by the health authority of
the country of origin, the future label, and the registration receipt. If the certificate is not
available, the importer should present a document issued by the Peruvian Consulate in
the country of origin. The sworn application includes the contact information of the
importer’s company and the manufacturer, taxpayer’s identification (RUC), the list of
products requested and for each product its content, the results of physical-chemical and
microbiological analysis, lot code system, expiration date, packaging material, and
storage conditions.
For imports of pharmaceuticals, cosmetics, biological and bio-chemical preparations as
well as medical equipment and devices, a prior registration from the Direccion General
de Medicamentos y Drogas-DIGEMID of the Ministry of Health is required. This sanitary
registry must be obtained before exporting the products to Peru. This procedure could
take between six months to one year and must be performed by the local distributor or
representative registered with DIGEMID. Imported products will appear under the name
of the local registered company who fulfill the registration process as the representative
of the U.S. company. Sanitary registrations must be renewed every five years. For more
information contact: DIGEMID www.digemid.minsa.gob.pe
Business travelers who bring along a rather big quantity of samples; brochures; gifts
(pens, desk weights, etc.), or similar articles, should be aware that SUNAT may deem
those goods as merchandise and thus require the traveler to pay import duties upon
entry or otherwise to re-export the goods.
For exports, a Customs Merchandise Declaration (DAM), a commercial invoice and an
airway bill or bill of lading are required. Export licenses are required for cultural relics
and antiques. In addition, end-user certificates are required for the export or re-export of
items on the international munitions list, the international chemical/biological warfare
(CBW) list and the missile technology control regime (MTCR) list. Such licenses cover a
marginal portion of total Peruvian exports—less than 1%.
U.S. Export Controls Return to top
The U.S. government controls the export of weapons, ammunition, high technology
machinery and equipment (e.g., certain high performance computers, precision industrial
machinery, latest generation night vision equipment, polygraphs, etc.) and some
chemicals (e.g., sodium cyanide).
A list that consolidates eleven export screening lists of the Departments of Commerce,
State and the Treasury into a single search as an aid to industry in conducting electronic
screens of potential parties to regulated transactions is available here:http://export.gov/ecr/eg_main_023148.asp.
Temporary Entry Return to top
Some goods can be admitted into Peru temporarily for re-export within a year with a
bond that guarantees the duties and taxes. The list with the 23 types of goods, Annex 1
to Resolucion Ministerial 287-98-EF/10 y modificatorias, is available athttp://www.sunat.gob.pe/. Other documentation requirements are the same as those
listed above.
Labeling and Marking Requirements Return to top
Before reaching the point of sale, imported packaged foods must carry a separate
adhesive label with a Spanish translation, including the importer/distributor’s contact
information and RUC (taxpayer number). Law 28405 (November 30, 2004) requires
labeling for value-added products other than foods. If imported products do not comply
with these requirements for customs clearance, importers are allowed to properly label
them in private warehouses.
For food products, labeling requirements are relatively simple. Products normally retain
their original labels, and the name and (RUC) of the manufacturer, importer, or
distributor must be added to the packaging. The Ministry of Health, through its DIGESA
bureau, is in charge of issuing the sanitary registration numbers for food products. The
Consumer Protection Office of Peru’s Consumer Defense Agency, INDECOPI is
responsible for food and beverage labeling and advertising.
Food label contents must include the name of the product and country of manufacture.
For perishable products, the following information must be included: expiration date,
conservation instructions and warnings, ingredients, and net content of the product (by
weight or volume). The label must also include information on dangerous ingredients. It
is mandatory to include the name, address in Peru of the manufacturer, importer or
distributor as well as the taxpayer number (RUC), sanitary registration number obtained
from DIGESA, risk warning, and emergency treatment, when applicable. Perishable
products must have the information clearly and visibly in Spanish.
On March 7, 2011, INDECOPI published a draft regulation to Article 37 of the Consumer
Protection and Defense Code – Law 29571 (approved by Congress on September 2,
2010). The regulation entered into force through a Supreme Decree later that year and
details the procedures and requirements for implementing mandatory labeling for
genetically modified (GM) products.
Food packaging must be made of harmless material, free of substances that could affect
food safety. Likewise, packages must be manufactured so as to preserve the product’s
sanitary quality and composition throughout its useful life according to the Ministry of
Health’s sanitary standards. Packaging with recycled paper, cardboard, or plastic is
forbidden.
Materials and food additives for food and beverage manufacturing must meet the health
quality requirements established in the sanitary standards issued by DIGESA. The use
of food additives not included in the list of additives permitted by the Codex alimentarius
is forbidden. Flavorings accepted by the U.S. Food and Drug Administration (FDA) and
the Flavor and Extractive Manufacturing Association (FEMA) are permissible.
Prohibited and Restricted Imports Return to top
The list of prohibited/restricted items from importation can be found on the following
website:http://www.sunat.gob.pe/orientacionaduanera/mercanciasrestringidas includes
flour potassium bromate, mercuric oxide, carbon tetrachloride, among other chemical
products. Used tires, clothing and shoes are also prohibited. Only donations of used
clothing and shoes are exempt from the prohibition. Donations provided to the private
sector must obtain an authorization from the “Agencia Peruana de Cooperación
Internacional”, APCI (http://www.apci.gob.pe) before they arrive to Peru while donations
to the public sector will require an authorization from the Peruvian Council of Ministers.
Failure to meet these requirements may result in the shipper’s or consignee’s being
assessed duties, fines, warehousing or other expenses before the donated goods can
clear customs. Other products that are prohibited for import are some insecticides and
fireworks. Toxic waste is also restricted. Imports of used cars older than five years and
used buses and trucks older than two years old are prohibited, as are used tires.
U.S. imports of live cattle face technical barriers to trade; in 2013 the United States was
declared at negligible risk for Bovine spongiform encephalopathy (BSE) by the OIE
(World Organization for Animal Health). The Peruvian agency, SENASA, established
strict regulations regarding BSE and other diseases. However, a deal was announced in
April 2015 that SENASA approved the USDA Veterinary Health Certificate for the import
of U.S. live cattle. This export certificate should be officially enacted in J uly of 2015.
Customs Regulations and Contact Information Return to top
Imports with an FOB value in 2014 higher than about US$ 4,070 (11,400 Nuevos Soles
at the 2.80 exchange rate to the dollar, of three so-called tax reference units, Unidad
Impositiva Tributaria-UIT) pay 89.30 Nuevos Soles fee (2.35% of one UIT) for the
“valuation service”. For 2014 one UIT is 3,800 Nuevos Soles (approx. US$1,360). In
practice, Customs applies a US$34 flat valuation fee. Items imported under the U.S.-
Peru Trade Promotion Act – PTPA, are exempt from this fee.
As stated above in the “Import Requirements and Documentation” section, Customs’
priority is revenue generation rather than trade facilitation. Despite having signed the
WTO customs valuation procedure, Peruvian customs uses a referential price
verification system (Sistema de Verificación de Precios, SIVEP). Peru’s custom agency
Superintendence Nacional de Administración Tributaria(SUNAT), has a data base for
price consultation of goods from each country, and from different suppliers. This allows
for viewing and comparing declared values in commercial invoices and to make
adjustments to identical or similar merchandise’s prices that are less expensive than the
average file.
SUNAT does accept discounts, as long as it appears on the bill and is unincorporated
from the normal sales value, but the reason for the discount should be indicated to see if
it is acceptable.
SUNNAT often request that the importer provide a Manufacturer’s Price List. This
document must be certified by Peru consulate in the country of purchase. This price list
should not be addressed to the importer, but just with general information. This is very
important in order to be accepted by SUNAT.
This system has prompted several complaints from local importers that SUNAT is
assessing values above the real ones. One U.S. exporter has complained that SUNAT
does not accept its invoices, valuing instead imports using price lists that do not consider
distributor discounts. For SUNAT to accept the invoice value, it must be accompanied by
a price list, and the discount must be described and detailed in the invoice. Payment
terms must also be detailed. The SUNAT chapter of the US-PTPA addresses the
referential pricing issue and is consistent with Peru’s WTO obligations.
Contact Information for Peruvian Customs:
Superintendencia Nacional de Administración Tributaria
Av. Garcilaso de la Vega 1472, Lima, Peru
(511) 315-0730
Website:http://www.sunat.gob.pe/
Mr. Victor Martin Ramos, National Intendant of Tax Compliance (Intendente Nacional de
Cumplimiento Tributario); [email protected]
Mr. Luis Enrique Narro, National Intendant of Taxpayer Service (Intendente Nacional de
Servicios al Contribuyente); [email protected]
Ms. Maria Ysabel Frassinetti, National Intendant of Customs Procedures (Intendente
Nacional Tecnica Aduanera); [email protected]
Standards Return to top
• Overview
• Standards Organizations
• Conformity Assessment
• Product Certification
• Accreditation
• Publication of Technical Regulations
• Labeling and Marking
• Contacts
Overview Return to top
INDECOPI, the Defense of Competition and the Protection of Intellectual Property
Agency (http://www.indecopi.gob.pe/) is the Peruvian standards development
organization. Its Commission of Technical Regulations (CTR), created in 1992,
addresses standards matters. The Commission has three functions:
• Approve technical standards and metrology regulations.
• Accreditation of the public or private institutions that may provide conformity
assessments.
• Defense of free trade under World Trade Organization Technical Barriers to
Trade (TBT) Agreement.
Standards Organizations Return to top
The following is a list of the committees and directories inside the CTR working with
standards issues:
• Committee for Testing Methodology
• Committee for Water Meters Testing
• Committee for Testing Laboratories
• Committee for Product Certifying Organizations
• Committee for Metrology Services
• Committee for Quality Management Accreditation
• Committee for International Standards Norms
NIST Notify U.S. Service
Member countries of the World Trade Organization (WTO) are required under the
Agreement on Technical Barriers to Trade (TBT Agreement) to report to the
WTO all proposed technical regulations that could affect trade with other Member
countries. Notify U.S. is a free, web-based e-mail subscription service that offers
an opportunity to review and comment on proposed foreign technical regulations
that can affect your access to international markets. Register online athttp://www.nist.gov/notifyus/.
Conformity Assessment Return to top
The following firms are certified by CTR to provide Conformity Assessment services:
• INASA- Phone: (511) 616-5200,http://www.inassagroup.com.pe/
• SGS del Perú: (511) 517-1900,http://www.pe.sgs.com/
• BSI Inspectorate Perú: (511) 613-8080,http://www.inspectorate.com/peru/
• EQUAS S.A.: (511) 349-4050,http://equas.com.pe/
• SG Nortek: (metrology services) (511) 572-2630, [email protected]
Product Certification Return to top
Products coming from the U.S. will not have problems entering Peru if importers receive
information in advance regarding the products’ composition and/or ingredients. The
Peruvian standards body’s (CTR) regulatory framework is similar to that of the U.S. It is
common to hold seminars sponsored by ANSI, ASTM, NEMA and others to encourage
conformity with global standards.
Accreditation Return to top
There are accreditation bodies for different industries.http://www.digesa.sld.pe/
The laboratories that can provide assistance to U.S exporters can be found at:http://www.indecopi.gob.pe/repositorioaps/0/0/jer/acre01/Direct_Organ_Eva_Conf/LabD
eEnsayo/RelacionLab(165).pdf
Publication of Technical Regulations Return to top
The office responsible for publishing standards and notifying private and public
organizations is the National Information Service (SNI-CRT) under CTR. This office is
also responsible for notifying the WTO-TBT Committee about changes related to
standards issues in Peru. It is under that scheme that the U.S. and other countries may
comment on modifications and propose new standards.
Labeling and Marking Return to top
In November 2004 Peru issued a new regulation on labeling and marking (Ley del
Rotulado - Law 28405). This new law establishes that products exported to Peru should
have a label with the following information:
• name of product
• country of origin
• address of exporter, importer, or distributor
• expiration date
• conservation method
• weight in metric system
• risks, if any, to use
International quality marks should be visible and easy to identify.
Contacts Return to top
The contact information at INDECOPI and CTR in Lima is:
(511) 224-7800 ext. 1261, fax (511) 224-7800 ext.1296.
The points of contact regarding standards issues at the U.S. Foreign Commercial
Service in the Embassy Lima are:
Ricardo J. Peláez, Commercial Counselor
Gustavo Romero, Commercial Specialist
Phone: (511) 618-2442.
Trade Agreements Return to top
Peruvians and Americans benefit from the PTPA, which entered into force on February
1, 2009.
Peru has been a member of the Andean Community (and its predecessor, the Andean
Pact) since 1969. The Andean Community is currently comprised of Peru, Ecuador,
Colombia, and Bolivia. In J anuary 2002, the member countries of the Andean
Community agreed to establish an Andean free trade zone, a common external tariff
(CET), and a customs harmonization policy by J anuary 2004. However, Andean
Community members have not implemented these measures.
Peru is a member of the WTO and became a full member of the Asia-Pacific Economic
Cooperation (APEC) forum in November 1998. Peru also has free trade agreements with
the United States, Canada, Chile, the European Union, China, the European Free Trade
Association (which includes Iceland, Liechtenstein, Norway and Switzerland), Honduras,
J apan, Mexico, Panama, Singapore, South Korea, and Thailand. It has Framework
Agreements with MERCOSUR countries (Argentina, Brazil, Uruguay, and Paraguay), the
Andean Community of Nations (Bolivia, Ecuador, and Colombia), and a partial
preferential agreement with Cuba. Agreements have been signed and are awaiting
implementation with Costa Rica, Guatemala, and Venezuela.
Peru is participating in the negotiations of the Trans-Pacific Partnership (TPP), which
aims to create a regional free trade agreement involving Australia, Brunei Darussalam,
Chile, Canada, J apan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United
States, and Vietnam. The Peruvian government also is finalizing free trade agreements
with El Salvador and negotiating free trade agreements with Turkey and India. Peru is a
founding member of the Pacific Alliance, a new regional economic block with Mexico,
Colombia, and Chile. It seeks the integration of the member countries and accounts for
more than one third of Latin America’s GDP.
Peru is currently the 32
nd
largest export market for U.S. goods. U.S. exports to Peru
amounted to US$10.07 billion in 2014.
Web Resources Return to tophttp://www.ustr.gov/trade-agreements/free-trade-agreements/peru-tpa/
Return to table of contents
Return to table of contents
Chapter 6: Investment Climate
• Openness to Foreign Investment
• Conversion and Transfer Policies
• Expropriation and Compensation
• Dispute Settlement
• Performance Requirements and Incentives
• Right to Private Ownership and Establishment
• Protection of Property Rights
• Transparency of Regulatory System
• Efficient Capital Markets and Portfolio Investment
• Competition from State Owned Enterprises
• Corporate Social Responsibility
• Political Violence
• Corruption
• Bilateral Investment Agreements
• OPIC and Other Investment Insurance Programs
• Labor
• Foreign-Trade Zones/Free Ports
• Foreign Direct Investment Statistics
• Web Resources
Openness to Foreign Investment Return to top
The GOP seeks to attract investment -- both foreign and domestic -- in nearly all sectors
of the economy. Several high level Peruvian officials, including President Ollanta
Humala, the Minister of Economy and Finance, and the Central Bank President,
attended global business conferences and toured several countries in 2014 in an effort
to attract foreign investment. Some of these tours were organized and sponsored by
“inPeru,” a private industry organization (http://inperu.pe). Peruvians and Americans
benefit from the United States-Peru Trade Promotion Agreement (PTPA) which entered
into force on February 1, 2009. Since entry into force, total trade (exports and imports)
between Peru and the United States expanded significantly from USD 9.1 billion to USD
16.1 billion. The PTPA establishes a secure, predictable legal framework for U.S.
investors operating in Peru. The PTPA protects all forms of investment. U.S. investors
enjoy in almost all circumstances the right to establish, acquire and operate investments
in Peru on an equal footing with local investors.
Peru aspires to membership into the Organization for Economic Cooperation and
Development (OECD). On February 5, 2015 the GOP announced the start of an 18-
month study to identify economic, social, and political “bottle necks” that could hamper
Peru’s OECD membership aspirations. The government noted that the study would act
as a “roadmap” for Peru’s goal to achieve membership by 2021 and highlighted
education as an example of a key area that Peru must improve. According to the OECD,
Peru dedicates only 2.8% of GDP towards education compared to the OECD average of
5.6% of GDP. As a result, Peruvian 15 year olds achieve education results equivalent to
12 year olds in OECD member countries. The result of this lack of investment in
education is a chronic shortage of skilled labor in Peru.
The 1993 Constitution grants national treatment for foreign investors and permits foreign
investment in almost all economic sectors. Under the Constitution, foreign investors
have the same rights as national investors to benefit from any investment incentives,
such as tax exemptions. In addition to the 1993 Constitution, Peru has several laws
governing foreign direct investment (FDI) including the Foreign Investment Promotion
Law (Legislative Decree (DL) 662 of September 1991) and the Framework Law for
Private Investment Growth (DL 757 of November 1991). Other important laws include
the Private Investment in State-Owned Enterprises Promotion Law (DL 674), the Private
Investment in Public Services Infrastructure Promotion Law (DL 758), and specific laws
related to agriculture, fisheries and aquaculture, forestry, mining, oil and gas, and
electricity. Article 6 of Supreme Decree No. 162-92-EF (the implementing regulations of
DLs 662 and 757) authorizes private investors to enter all industries except investments
in natural protected areas and manufacturing of weapons.
The GOP has passed several laws and related implementing regulations aimed at
encouraging more private investment, such as two important decrees in 2008. The first
was a legislative decree containing the Law on Public-Private Partnerships (PPPs). The
second decree presents a priority list of projects for PPPs. Congress passed a law to
reform regulations that would make PPPs less bureaucratic and more transparent, thus
more attractive to foreign companies, in March 2014. Among these public-private
partnerships are major infrastructure projects of national importance and upgrades to
existing projects: Salaverry maritime port project, Quillabamba thermal power plant
(Cusco region), liquid petroleum gas (LPG) transport system (from Pisco to Callao), lines
three and four of the Lima and Callao Metro system, water supply to Lima and related
headwater works, distribution system of natural gas via pipeline networks (Apurimac,
Ayacucho, Huancavelica, J unin, Cusco, Puno, and Ucayali regions), rural broadband
installation (optical fiber transportation networks and access networks), and connections
to three existing 220 kV power transmission lines. Project opportunities are available on
ProInversion’s Project Portfolio page, available at:http://www.proyectosapp.pe/modulos/J ER/PlantillaProyectoEstadoSector.aspx?are=1&p
rf=2&jer=5892&sec=30.
Although all Peruvian administrations since the 1990s have vowed to support private
investment and abide by Peruvian laws, the GOP occasionally has passed measures
that some observers have regarded as contravening legal principles. For example, the
Garcia Administration in 2011 rescinded a Canadian company's rights to operate a silver
mining project in Puno after violent protests opposing the project. The Canadian
company delivered to the Peruvian Minister of Economy and Finance a Notice of Intent
to submit a claim to arbitration under the terms of the Canada-Peru Free Trade
Agreement in February 2014. Furthermore, President Ollanta Humala signed into law a
10-year moratorium on the entry into Peru of live genetically-modified organisms
(GMOs) to be used for cultivation in December 2011. Peru also has implemented two
inconsistent sets of rules for importing pesticides, one for “regular” importers, which is
extremely restrictive and requires importers to file a full dossier with technical
information, and another for farmers, which is rather loose and only requires a written
affidavit.
The GOP created the Private Investment Promotion Agency, ProInversion, in 2002,
based on an existing similar agency. ProInversion has completed both privatizations and
concessions of state-owned enterprises and natural resource-based industries. Major
recent concession areas include ports, power generation facilities, electrical
transmission lines, oil and gas distribution, and telecommunications. In J uly 2014 the
Peruvian Congress passed legislation to reform the public-private concessions process
and requires more oversight by the Ministry of Economy and Finance. The Ministry of
Economy and Finance is working on the implementing regulations, and expects a final
draft before the end of 2015.
ProInversion also aims to attract investment in the following sectors: agricultural,
construction, ground transportation, energy and mining, finance, health technologies,
telecommunications, and travel. Information can be found on ProInversion’s website:http://www.proyectosapp.pe/modulos/J ER/PlantillaProyectoEstadoSector.aspx?are=0&p
rf=2&jer=5351&sec=22.
The Constitution (Article 6 under Supreme Decree No. 162-92-EF) authorizes foreign
investors to carry out any economic activity provided investors comply with all
constitutional precepts, laws and treaties. Exceptions exist, including exclusion on
foreign investment activities in natural protected reserves and manufacturing of war
weapons, pursuant to Article 6 of Legislative Decree No. 757. While long-term
concessions are granted, the law states Peruvians must maintain majority ownership in
certain strategic sectors: media; air, land and maritime transportation infrastructure; and
private security surveillance services.
Prior approval is required in the banking (for regulatory reasons, and also applies to
domestic investment) and defense-related sectors. Foreigners are also legally prohibited
from owning a majority interest in radio and television stations in Peru; nevertheless,
foreigners have in practice owned controlling interests in such companies. Under the
Constitution, foreign interests cannot "acquire or possess under any title, mines, lands,
forests, waters, or fuel or energy sources" within 50 kilometers of Peru's international
borders. However, foreigners can obtain concessions and rights within the restricted
areas with the authorization of a supreme resolution approved by the Cabinet and the
J oint Command of the Armed Forces.
The GOP initiated an extensive, but not yet complete, privatization program in 1991 in
which foreign investors were encouraged to participate. Since 2000, the GOP has
promoted multi-year concessions as a means of attracting investment in major projects.
In 2000, the government granted a 30-year concession to a private group (Lima Airport
Partners) to operate the Lima airport. In 2006, the government granted a 30-year
concession to Dubai Ports to build and operate a new container terminal in the Port of
Callao. The terminal’s first phase became operational in May 2010. In 2006, the Swiss-
Spanish-Peruvian consortium Swissport received a 25-year concession to manage nine
of Peru's northern airports. In 2011, the GOP awarded the Argentine-Peruvian
consortium Aeropuertos Andinos a 25-year concession to manage six of Peru’s southern
airports. Also in 2011, the government granted a 30-year concession to a Danish-
Peruvian consortium led by the Danish-based A.P. Moller-Maersk Group to operate and
modernize the multipurpose northern terminal at the Port of Callao. On J une 30, 2014
the GOP awarded a multi-billion USD concession for the Southern Gas Pipeline to a
consortium led by Brazilian company Odebrecht. The GOP continues to award multi-
year concessions for various energy, natural gas, hydro-energy and irrigation,
telecommunications, ports, sanitation, roads, and tourism projects.
The concessions process is challenging for U.S. and other international companies
interested in bidding on projects. ProInversion, the government agency responsible for
drawing up and competing PPP concession projects, has come under considerable
criticism for its bidding process, deadlines, and ambitious timetables. As a result, U.S.
and other international companies have shown limited interest in Peruvian PPP projects.
The GOP does not screen, review, or approve foreign direct investment outside of those
sectors that require a governmental waiver (see Limits on Foreign Control).
The Institute for the Protection of Intellectual Property, Consumer Protection, and
Competition (INDECOPI) is the GOP agency responsible for reviewing competition-
related concerns of a domestic nature.
Peru has made significant strides in various areas measured in The World Bank’s “Doing
Business” reports, including reformed procedures on starting a business, securing
construction permits, registering property, and closing a business. Although Peru’s
efforts to reform business start-up procedures made significant advances according to
the 2011 report, Peru declined by three places in the World Bank’s business start-up
ranking from 60th in 2013 to 63rd in 2014. At the same time, Peru lowered the average
amount of time it takes to start a business from 41 days (in 2010) to 25 days (in 2014).
Although the 2013 report noted Peru’s efforts to strengthen investor protections through
a new law regulating the approval of related-party transactions and making it easier to
sue directors when such transactions are prejudicial, the 2014 does not show any
relevant legal modifications for Peru.
Table 1: Well-Regarded International Indices and Rankings
Measure
Year Rank or
value
Website Address
Transparency International
Corruption Perceptions
Index
2014 85 of 175http://cpi.transparency.org/cpi20
13/results/
Heritage Foundation Index of
Economic Freedom
2014 47 of 178http://www.heritage.org/index/ab
out
World Bank Ease of Doing
Business Rank
2014 42 of 189http://doingbusiness.org/rankings
Global Innovation Index
2014 73 of 143http://www.globalinnovationinde
x.org/content.aspx?page=gii-
full-report-2013#pdfopener
World Bank GNI per capita
2013 USD 6,270http://data.worldbank.org/countr
y/peru
Peru received USD 35.6 million from the Millennium Challenge Corporation for threshold
funding in 2008 for health and anti-corruption programs. In 2009 Peru reached upper-
middle income country status and is officially ineligible for further Millennium Challenge
Corporation assistance.
Conversion and Transfer Policies Return to top
There are no reported difficulties in obtaining foreign exchange. Under Article 64 of the
1993 Constitution, the GOP guarantees the freedom to hold and dispose of foreign
currency. The GOP has eliminated all restrictions on remittances of profits, dividends,
royalties, and capital, although foreign investors are advised to register their investments
with ProInversion to ensure these guarantees. Exporters and importers are not required
to channel foreign exchange transactions through the Central Reserve Bank of Peru
(BCR) and can conduct transactions freely on the open market. Anyone may open and
maintain foreign currency accounts in Peruvian commercial banks. U.S. firms have
reported no problems or delays in transferring funds or remitting capital, earnings, loan
repayments or lease payments since Peru's economic reforms of the early 1990s. Under
the PTPA, portfolio managers in the United States are able to provide portfolio
management services to both mutual funds and pension funds in Peru, including funds
that manage Peru’s privatized social security accounts.
The 1993 Constitution guarantees free convertibility of currency. However, limited capital
controls still exist as private pension fund managers (AFPs) are constrained by how
much of their portfolio can be invested in foreign securities. The maximum limit is set by
law (currently 50% since J uly 2011), but the BCR sets the operating limit AFPs can
invest abroad. Over the years, the BCR has gradually increased the operating limit,
which reached 40% in J uly 2014. Several additional increases were made between
October 2014 and J anuary 2015, bringing the current operating limit up to 42 percent.
The BCR is an independent institution, free to manage monetary policy to maintain
financial stability. The BCR’s primary goal is to maintain price stability, via inflation
targeting. Inflation at year-end in Peru reached 3.9% in 2007, 6.7% in 2008, 0.3% in
2009, 2.1% in 2010, 4.7% in 2011, 2.7% in 2012, 2.8% in 2013, and 3.2% in 2014.
The GOP has implemented policies to de-dollarize the economy, but in the last few
years market forces have been more effective in reducing dollarization as the Peruvian
Nuevo Sol had trended (until 2014) to appreciate vis-à-vis the U.S. dollar. U.S. dollars
account for a decreasing share of banking system transactions, according to the
Peruvian Banking Superintendence (SBS). In 2001, U.S. dollars accounted for 82% of
loans and 73% of deposits. As of February 2015, U.S. dollars accounted for 42.6% of
loans.
The foreign exchange market operates freely, for the most part. To quell “extreme
variations” of the exchange rate, the BCR intervenes through purchases and sales in the
open market without imposing controls on exchange rates or transactions. In the last few
years, the BCR has consistently purchased U.S. dollars to mitigate the risk that spillover
from expansionary U.S. monetary policy might result in over-valuation of the Peruvian
Nuevo Sol relative to the U.S. dollar. In 2014, ahead of an announced tapering of
expansionary U.S. monetary policy, the BCR has sold dollars to manage the
depreciation of the Peruvian Nuevo Sol ahead of U.S. economic recovery and tightening
of credit conditions.
Peru is neither a major regional financial center nor an offshore financial center.
Currently, businesses involved in the transfer of funds only need prior authorization by
the Peruvian Banking Authority (SBS) while cash couriers need a signed agreement with
the Ministry of Transportation and Communication. The GOP’s Financial Intelligence
Unit (FIU) is an independent agency that monitors and investigates financial institutions
and cash transfers (physical and electronic) for money laundering and other financial
crimes.
Peru’s cash-based and heavily-dollarized economy, large informal sector (estimated to
be 70% of GDP), and deficient regulatory supervision of designated non-financial
businesses and professions (DNFBPs), such as informal money exchanges and wire
transfer services, make the economy vulnerable to money laundering and other financial
crimes. The informal remittance businesses remain unsupervised and vulnerable to
money laundering, including travel agencies and small wire transfer businesses. Peru
would benefit from expanded supervision and regulation of financial institutions and
DNFBPs. Progress was made in monitoring and regulating notaries, pawn shops, and
exchange houses. Peru is a member of the Financial Action Task Force on Money
Laundering in South America (GAFILAT).
A U.S. company complained to the Embassy that their pension plans, issued in the
United States and registered under the Texas Commissioner, have been excluded by
the SBS from being used by their clients to demonstrate provisional coverage within the
funds transfer abroad procedure, despite the company having certified compliance with
the coverage requirements. This is notwithstanding the AFPs (pension funds) accepting
private voluntary plans from other countries.
Expropriation and Compensation Return to top
According to the Peruvian Constitution, the GOP can only expropriate private property
on public interest grounds such as public works projects or for national security. An
expropriation requires the Congress to pass a specific act. The Government of Peru has
expressed its intention to comply with international standards concerning expropriations.
On J anuary 12, 2012, Congress approved legislation to expropriate a number of homes
and other real estate adjacent to the Lima Airport for an airport expansion project.
Compensation for expropriations is based on fair market value. Notably, concessionaires
have complained that the government has been extremely slow in implementing
expropriations, which have caused delays to their investment commitments.
Dispute Settlement Return to top
The PTPA includes a chapter on dispute settlement, which applies to implementation of
the Agreement’s core obligations, including labor and environment provisions. Dispute
panel procedures set high standards of openness and transparency through the
following measures: open public hearings, public release of legal submissions by parties,
enlisting special labor or environment expertise for disputes in these areas, and
opportunities for interested third parties to submit views. The Agreement emphasizes
compliance through consultation and trade-enhancing remedies. The Agreement also
encourages arbitration and other alternative dispute resolution measures for disputes
between private parties.
Peru is a party to the Convention on the Recognition and Enforcement of Foreign
Arbitral Awards (the New York Convention of 1958) and to the International Center for
the Settlement of Investment Disputes (the Washington Convention of 1965). Disputes
between foreign investors and the GOP regarding pre-existing contracts must still enter
national courts, unless otherwise permitted, such as through provisions found in the
PTPA. In addition, investors who enter into a juridical stability agreement may submit
disputes with the government to national or international arbitration if stipulated in the
agreement. Several private organizations -- including the American Chamber of
Commerce, the Lima Chamber of Commerce, and Universidad Catolica – operate
private arbitration centers. The quality of such centers varies, however, and investors
should choose arbitration venues carefully.
Peru has a creditor rights hierarchy similar to that established under U.S. bankruptcy
law, and monetary judgments are usually made in the currency stipulated in the contract.
However, administrative bankruptcy procedures under INDECOPI (the Antitrust, Unfair
Competition, Intellectual Property Protection, Consumer Protection, Dumping, Standards
and Elimination of Bureaucratic Barriers Agency) have proven to be slow and subject to
judicial intervention. Compounding this difficulty are occasional laws passed to protect
specific debtors from action by creditors that would force them into bankruptcy or
liquidation.
The 1993 Constitution permits international arbitration of disputes between foreign
investors and the government or state-controlled firms. Previously, the Government of
Peru appealed arbitration cases to the judiciary, where they were typically delayed until
the international companies conceded the cases. To reinforce Peruvian law, the
Supreme Court ruled that effective J uly 2005, all arbitration findings and awards are final
and not subject to appeal.
The Constitution permits international arbitration of disputes between foreign investors
and the government or state-controlled firms. Although Peruvian law stipulates the GOP
must accept binding arbitration, parastatal companies and government ministries
disregarded unfavorable judgments several times over the past three years. Previously,
the Government of Peru turned these arbitration cases over to the judiciary, where they
were bureaucratically delayed until the companies conceded the cases. Peru’s Supreme
Court ruled that effective J uly 2005 all arbitration findings and awards are final and not
subject to appeal.
Peru is a party to the Convention on the Recognition and Enforcement of Foreign
Arbitral Awards (the New York Convention of 1958), and to the International Center for
the Settlement of Investment Disputes (the Washington Convention of 1965). Disputes
between foreign investors and the GOP regarding pre-existing contracts must still enter
national courts. However, investors who conclude a juridical stability agreement for
additional investments may submit disputes with the government to national or
international arbitration if stipulated in the agreement. Several private organizations --
including the Universidad Catolica, the Lima Chamber of Commerce and the American
Chamber of Commerce -- operate private arbitration centers. The quality of these
centers varies, and investors should choose arbitration venues carefully.
Dispute settlement remains problematic in Peru; although in 2004 the GOP took steps to
improve the dispute settlement process by establishing commercial courts to rule on
investment disputes, including two courts of appeal. Prior to the existence of the
commercial courts, it took an average of two years to resolve a commercial case through
the civil court system. With their specialized judges, these courts have reduced the
amount of time to resolve a case to just two months. The appeals level resolves most of
these cases.
The criminal and civil courts of first instance and appeal are heard at the provincial level.
The Supreme Court is located in Lima. In principle, Peruvian law recognizes secured
interests in property, both movable and immovable. With the exception of the
commercial courts, the judicial system is extremely slow to hear cases and to issue
decisions. A large backlog of cases further complicates decision-making. Court rulings
and the degree of enforcement have been difficult to predict. The competence of
individual judges varies, and allegations of corruption, political interference, and outside
interference in the judicial system are common. Frequent use of appellate processes as
a delay tactic leads to the belief among foreign investors that contracts can be difficult to
enforce in Peru. The 1997 Law of Conciliation (DL 26872) requires disputants in many
types of civil and commercial matters to consider conciliation before a judge can accept
a dispute for litigation. Private parties often resort to arbitration to resolve business
disputes, avoiding involvement in judicial processes.
Peru has a creditor rights hierarchy similar to that established under U.S. bankruptcy
law, and monetary judgments are usually made in the currency stipulated in the contract.
However, administrative bankruptcy procedures under INDECOPI (the National Institute
for the Defense of Free Competition and the Protection of Intellectual Property) have
proven to be slow and subject to judicial intervention. Compounding this difficulty are
occasional laws passed to protect specific debtors from action by creditors that would
force them into bankruptcy or liquidation.
The 1993 Constitution permits international arbitration of disputes between foreign
investors and the government or state-controlled firms. Previously, the Government of
Peru appealed arbitration cases to the judiciary, where they were typically delayed until
the international companies conceded the cases. To reinforce Peruvian law, the
Supreme Court ruled that effective J uly 2005, all arbitration findings and awards are final
and not subject to appeal.
Performance Requirements and Incentives Return to top
The PTPA has resulted in benefits to U.S. enterprises seeking to invest in Peru. Under
the PTPA, Peru has made concessions beyond its commitments to the WTO and has
dismantled significant investment barriers, such as measures that required U.S. firms to
hire nationals rather than U.S. professionals, and measures requiring the purchase of
local goods.
Peru offers both foreign and national investors legal and tax stability agreements to
stimulate private investment. These agreements guarantee that the statutes on income
taxes, remittances, export promotion regimes (such as drawbacks, or refunds of duties),
administrative procedures, and labor hiring regimes in effect at the time of the
investment contract will remain unchanged for that investment for 10 years. To qualify,
an investment must exceed USD 10 million in the mining and hydrocarbons sectors or
USD 5 million within two years in other sectors. An agreement to acquire more than 50%
of a company's shares in the privatization process may also qualify an investor for a
legal or tax stability agreement, provided that the added investment will expand the
installed capacity of the company or enhance its technological development.
Promoting science, innovation, and technology and improving Peru’s education system
remain priorities for the Humala Administration. Peru ranked last out of 65 surveyed
countries in the OECD’s 2013 Program for International Student Assessment (PISA).
The OECD noted the high inequity of quality between urban and rural schools and low
levels of Peruvian students meeting PISA standards in mathematics, science, and
reading. The Humala Administration increased spending on education for 2015,
including USD 1 billion to build and renovate schools and USD 450 million to hire more
teachers. In 2014, the GOP launched an ambitious national plan to promote innovation,
science, and technology jobs.
There are no performance requirements that apply exclusively to foreign investors.
Peruvian civil law applies to legal stability agreements, which means the GOP cannot
unilaterally alter agreements. Notwithstanding these protections, investors should be
aware that government officials have delivered negative remarks to the press regarding
companies exercising their contractual rights and obligations.
Laws specific to investment in the petroleum and mining sectors provide assurances to
investors in those sectors. However, a history of tightening of benefits has occurred in
these industries. In 2000, the government modified the General Mining Law, reducing
some benefits to investors in that sector. Among the changes were reductions in the
term concessionaires are granted to achieve the minimum annual production, increases
in fees for holding non-productive concessions, increases in fines for not achieving
minimum production within the allotted time, reductions in the maximum allowable
annual accelerated depreciation, and revocation of the income tax exemption for
reinvested profits.
After a growing number of local communities demanded a share of mining profits from
operations in their areas, the incoming Garcia Administration and mining companies
agreed in 2006 to a "voluntary contribution" system whereby companies agreed to
provide funding to the government (in addition to the regular corporate income tax) for
community infrastructure projects. This voluntary contribution averted adoption of
exacting taxes. The agreement allowed mining companies to control where their
contributions were invested and did not apply if the prices of metals or minerals drop
below certain levels. As the voluntary contribution agreement was to expire at the end of
2011 during a period of windfall profits for extractive industries, the incoming Humala
Administration and mining companies agreed in August 2011 to replace it with a new tax
regime on mining profits called the “gravamen minero.” It produced tax revenues
(including the royalty tax) of USD 1.54 billion in 2014; with declining metals prices the
contribution in 2014 was USD 1.15 billion.
With regard to licensing arrangements, private parties may freely negotiate contractual
conditions related to licensing arrangements and other aspects of technology transfer,
needing no prior governmental authorization. Registration of a technology transfer
agreement with INDECOPI is required for a payment of royalties to be counted against
taxes.
Current law limits foreign employees to 20% of the total number of employees in a local
company (whether owned by foreign or national interests). The combined salaries of
foreign employees are limited to no more than 30% of the total company payroll.
However, DL 689 from November 1991 provides a variety of exceptions to these limits.
For example, a foreigner is not counted against a company's total if he or she holds an
immigrant visa, has a certain amount invested in the company (currently about USD
4,000), or is a national of a country that has a reciprocal labor or dual nationality
agreement with Peru. The United States and Peru tolerate dual nationality, but do not
have a formal agreement. Furthermore, the law exempts foreign banks, and international
transportation companies from these hiring limits, as well as all firms located in free
trade zones. Companies may apply for exemption from the limitations for managerial or
technical personnel.
The GOP does not maintain any measures that are inconsistent with Trade-Related
Investment Measure (TRIM) requirements, according to a WTO Committee on Trade-
Related Investment Measure notification dated August 19, 2010.
Although there are no discriminatory or onerous visa, residence, or work permit
requirements that inhibit foreign investors' mobility, the application and approval process
can be cumbersome and lengthy.
Peru adopted the Personal Data Protection Law (N° 29733) in J uly 2011 and went into
effect on March 22, 2013. The Law is available here in English:http://web.ita.doc.gov/ITI/itiHome.nsf/1dd3c7c4faeeff0585256ccb00657bab/112a1a2f4d
01989c
85257a78004dd2ec/$FILE/Peru%20Data%20Protection%20Law%20J uly%2028_EN.pdf
The implementing regulations are available in Spanish here:http://spij.minjus.gob.pe/normas/textos/220313T.pdf 2.
A data controller who processes personal data must notify the National Authority for
Personal Data Protection (ANPDP for its Spanish acronym), which keeps a public
register of data processors and the type of data they collect. Personal data is defined by
the Law as any information on an individual which identifies or makes him/her
identifiable through means that may be reasonably used. Sensitive personal data means
any of the following: biometric data, data concerning the racial and ethnic origin; political,
religion, philosophical or moral opinions or convictions, personal habits, union
membership and information related to health or sexual life. Unless otherwise exempted
by statute, data controllers are generally required to obtain the consent of data subjects
for the processing of their personal data. Consent must be prior, informed, expressed,
and unequivocal. In the case of sensitive personal data, consent must also be given in
writing, which may be done digitally. Even without the consent of the subject, sensitive
data may be processed when authorized by law, provided that it in in the public interest.
Data controllers may process personal data without consent:
• when the personal data are compiled or transferred for public entities in control of
the personal data and in the performance of its duties;
• when personal data is accessible to the public or is intended to be accessible to
the public;
• to comply with other laws related to financial solvency and credit;
• in the case of a law for the promotion of competition in regulated markets under
certain circumstances;
• when necessary to perform a contract to which the data subject is a party;
• for personal data related to health, under certain circumstances;
• when processing is carried out by non-profit organizations with political, religious
or union purposes, under certain circumstances; or
• in an anonymization or disassociation procedure.
A data controller may transfer personal data to places outside of Peru only if the
recipients have adequate protection measures. The ANPDP supervises compliance with
this requirement. That provision does not apply in the following cases:
• when the data subject has given his/her prior, informed, express and unequivocal
consent;
• agreements under international treaties to which Peru is a party;
• international judicial cooperation;
• international cooperation between intelligence agencies for the fight against
terrorism, illegal drug trafficking, money laundering, corruption, human trafficking
and other forms of organized crime;
• when necessary to implement a contract to which the data subject is a party;
• to comply with laws concerning the transfer of bank or stock exchanges; or
• when the transfer is for the prevention, diagnosis or medical or surgical treatment
of the data subject; or when necessary to carry out epidemiological or similar
studies (provided that adequate disassociation procedures are applied).
Data controllers must adopt technical, organization and legal measures to guarantee the
security of personal data and avoid their alteration, loss, unauthorized processing or
access. Peru’s law does not require any notifications to any data subject or any other
entity upon a breach. Peru does not mandate special regulations be enacted for the
processing of personal data of minors. The ANPDP is responsible for enforcement and
can issue the following administrative sanctions/fines based upon whether the violation
is mild, serious or very serious. The law provides a “Principle for availability of recourse
for the data subject” stating that any data subject must have the administrative and/or
jurisdictional channel necessary to claim and enforce his rights when they are violated
by the processing of his personal data.
Right to Private Ownership and Establishment Return to top
Peruvian law generally grants foreign and domestic entities the right to establish and
own business enterprises and to engage in most forms of remunerative activity. Subject
to the restrictions listed earlier in this document, both foreign and domestic entities may
invest in any legal economic activity -- including foreign direct investment, portfolio
investment, and in real estate. Private entities may generally freely establish, acquire,
and dispose of interests in business enterprises. In the case of some privatized
companies deemed important by the government, the privatization agency ProInversion
has included a so-called "golden share" clause in the sales contract, which allows the
government to veto a potential future purchaser of the privatized assets.
Protection of Property Rights Return to top
The GOP recognizes and enforces secured interests in property, both movable and
immovable. The GOP is working on improving the registry of those rights, which will
further enable the government’s enforcement capabilities.
Peru’s legal framework provides for easy registration of trademarks, and inventors have
been able to patent their inventions since 1994. Peru’s 1996 Industrial Property Rights
Law provides an effective term of protection for patents and prohibits devices that
decode encrypted satellite signals, along with other improvements. Peruvian law does
not provide pipeline protection for patents or protection from parallel imports. Peru’s
Copyright Law is generally consistent with the TRIPS Agreement.
While the legal framework for protection of intellectual property (IP) in Peru has
improved over the past decade, including the law enacted in 2011 to criminalize the sale
of counterfeit medicines, enforcement mechanisms remain weak. However, Peru has
remained on USTR's Section 301 "Watch List" since 1992 because of continued high
piracy rates, inadequate enforcement of IP laws, and weak or unenforced penalties for
IP violators.
Under the PTPA, Peruvian law should treat U.S. companies at least as well as Peruvian
companies in all IP categories. The PTPA provides for improved IP protection on a
broad range of intellectual property rights. Such improvements include protections for
digital products such as U.S. software, music, text, and video; protection for U.S.
patents, trademarks and pharmaceutical and agrochemical test data; legal penalties to
deter piracy; and an electronic system to register and maintain trademarks.
Despite PTPA implementation and recent legal code amendments creating stricter
penalties for some types of IP theft, the judicial branch has failed to impose sentences
that adequately deter future IP theft. Prosecutors do not pursue piracy cases through the
entire process to final judgment. Furthermore, the Peruvian public lacks motivation to
change perceptions regarding IP theft. The public continues to purchase pirated
software, CDs, DVDs, pharmaceutical products, and books from vendors in public. The
purchases continue openly since most Peruvians realize their government will not
prosecute this theft.
Some GOP institutions, sometimes with the support of the U.S. Embassy in Lima,
sponsor public awareness campaigns to raise awareness about the damage that IP theft
causes the Peruvian economy and Peruvians consumers. Peruvian newspapers
complain about piracy, including pirated versions of Peru’s Nobel Laureate Mario Vargas
Llosa’s books. While the GOP occasionally has carried out raids against small-time
vendors of pirated goods, piracy remains a significant problem for legitimate owners of
copyrights in Peru.
The International Intellectual Property Alliance (IIPA) estimates that the piracy level in
Peru for recorded music is at 98% and 100% for video content and books. The Business
Software Alliance estimates that software piracy level is at 65%, costing the industry
USD 60 million in 2014.
The U.S. pharmaceutical industry advises that the GOP fails to provide data exclusivity
protection for all pharmaceutical products and does not provide patent linkage or
“second use” medical patents. The pharmaceutical industry also advises that the GOP
does not offer any extension of the patent term for pharmaceutical products to
compensate for processing delays at the patent office. There has also been at least one
instance of GOP initiatives creating a backdoor for domestic companies to avoid
complying with IP laws. This backdoor can be seen in the pharmaceutical sector in the
registration of biosimilar products of biologics, drugs made from organic material that
infringe upon patented U.S. biological products.
The GOP agency charged with promoting and defending intellectual property rights is
the Antitrust, Unfair Competition, Intellectual Property Protection, Consumer Protection,
Dumping, Standards and Elimination of Bureaucratic Barriers Agency (INDECOPI,
www.indecopi.gob.pe), established in 1992. Peru belongs to the World Trade
Organization (WTO) and the World Intellectual Property Organization (WIPO). It is also a
signatory to the Paris Convention on Industrial Property, Geneva Convention for the
Protection of Sound Recordings, Bern Convention for the Protection of Literary and
Artistic Works, Brussels Convention on the Distribution of Satellite Signals, Phonograms
Convention, Satellites Convention, Universal Copyright Convention, the World Copyright
Treaty, and the World Performances and Phonographs Treaty and the Film Register
Treaty. In December 1994, the Peruvian Congress ratified the World Trade
Organization's Agreement on Trade-Related Aspects of Intellectual Property (TRIPs).
Pursuant to the terms of the PTPA, Peru has ratified or acceded to the following
agreements: the Convention Relating to the Distribution of Program-Carrying Signals
Transmitted by Satellite; the Budapest Treaty on the International Recognition of the
Deposit of Microorganisms for the Purposes of Patent Procedure; the WIPO Copyright
Treaty; the WIPO Performances and Phonograms Treaty; the Patent Cooperation
Treaty; the Trademark Law Treaty; and, the International Convention for the Protection
of New Varieties of Plants (UPOV Convention). Although Peru has ratified or acceded to
several of the above agreements as part of its implementation of the PTPA, it has not yet
fulfilled its PTPA commitments by ratifying or acceding to the following agreements: the
Patent Law Treaty; the Hague Agreement Concerning the International Registration of
Industrial Designs; and, the Protocol Relating to the Madrid Agreement Concerning the
International Registration of Marks.
Contact at Mission:
Benjamin Yates
Economic Officer
+51-1-618-2414
[email protected]
Country/Economy resources:
The American Chamber of Commerce in Peru can be contacted via this link:http://www.amcham.org.pe/contactenos/escribanos.php.
Transparency of Regulatory System Return to top
Regulatory transparency and independence have become central issues for foreign
investors in Peru. Although many of the central government regulators related to foreign
investment have relatively transparent and predictable procedures, delays and the lack
of predictability in the rulings of these institutions, have been impediments to doing
business in Peru.
The Securities Market Superintendence (SMV) maintains the company registry and
supervises the securities market. ProInversion handles privatization and most
concessions. INDECOPI handles competition policy, bankruptcy, and intellectual
property matters. The Superintendence of Banking and Insurance (SBS) regulates
banks, insurance companies, and private pension funds, including determination of
whether potential market entrants qualify to operate in Peru.
When the GOP privatized state-owned monopolies in the areas of telecommunications,
energy, and the hydrocarbons sector in the late 1990s, it also established regulatory
institutions to oversee the new private sectors – among them OSIPTEL for telecom, and
OSINERGMIN for energy, mining and hydrocarbons – the GOP created the
Environmental Enforcement Organism (OEFA) in 2008 which is progressively taking
over the environmental enforcement functions previously held by OSINERGMIN and
other agencies.
In 2010, OSIPTEL established a “glide path” plan to continuously lower the mobile
termination rates for all carriers by October 2013. This created a more favorable and
competitive environment for the smaller carriers. In J uly 2014, OSIPTEL introduced
number portability—which allows consumers to keep their mobile phone number despite
changing service providers—and cut interconnection fees by 68% to spur competition
and facilitate new entrants into the market. OSIPTEL also lowered costs for rural
operators to facilitate mobile penetration. Since these changes, over 200,000 Peruvian
consumers have switched providers.
U.S. and other non-Peruvian firms and investors have complained about the
reinterpretation of rules and the imposition of disproportionate fines coupled with
usurious interest charges on unpaid taxes or fines by the Peruvian tax agency, SUNAT.
U.S. firms and other investors allege SUNAT's capricious behavior and reinterpretation
of tax laws are often contrary to the spirit of the law and intent of government policies,
thereby complicating and making normal business operations costlier. This situation may
be at least be partly explained by the fact that the remuneration of SUNAT employees is
partially determined by the theoretical tax liability they assess in audits. The U.S.
Embassy continues to hear that this perverse incentive leads to overzealous tax
collection practices.
Businesses point out that SUNAT's retroactive reinterpretation of regulations and laws,
levying of disproportionate fines, usurious interest rates on the alleged assessments and
below market interest rates on payable tax rebates, lengthy resolution processes, and
initiation of full company audits when companies request a refund or legal revaluation of
assets for depreciation purposes, create additional investment and trade barriers. In one
case, a U.S. firm requested, by clerical mistake, an improper drawback of USD 1,345,
only to face SUNAT fines of USD 645,000. Although the case was resolved, legislation
now allows for an independent tax tribunal to serve as a check on alleged abuses by
SUNAT. However, when SUNAT exercises its right of appeal against unfavorable tax
tribunal rulings, the disputed assessments and liabilities on companies’ balance sheets
are prolonged. As a balance to this tendency, a tax ombudsman must approve SUNAT's
request to appeal adverse tax tribunal decisions. At times, the ombudsman has also
acted to end unwarranted litigation of disputed assessments. For example, in 2005, a
U.S. company won long-standing tax cases against SUNAT as a result of these
improvements. Nevertheless, the U.S. Embassy has heard of cases of companies
deciding to pay long-disputed assessments in order to eliminate liabilities from their
books. A conspicuous case was that of a Canadian bank, which in late-February 2014
decided to pay under protest approximately USD 170 million in tax liabilities, most of it
accumulated interest. In recent years a number of companies have opened international
arbitration cases against the GOP.
Businesses also complain about high health insurance and pension tax rates and a
number of labor laws. Businesses state these tax and labor policies increase labor costs
and hinder investment capital flows. The lack of a U.S.-Peru treaty on double taxation is
also a disincentive to foreign investment.
Efficient Capital Markets and Portfolio Investment Return to top
Credit is allocated on market terms and the banking industry in Peru is generally
considered competitive in offering services to business customers. Private pension funds
have keenly competed in recent years with financial companies for bonds issued locally
by companies and the GOP. These entities compete because the supply of local
securities is insufficient given the small size of the market. Under the PTPA, U.S.
financial service suppliers have full rights to establish subsidiaries or branches for banks
and insurance companies.
The private sector has access to a variety of credit instruments. In 2013, firms placed
USD 1.75 billion on the local bond market, 3.7% below the year earlier. Mutual funds
managed USD 5.9 billion in December 2013, a large 16.3% decrease from the
December 2013 level. Private pension funds managed a total of USD 36.2 billion in
December 2013. (Full 2014 Statistics are not yet available.)
The Securities Market Superintendence (SMV) is the GOP entity charged with regulating
the securities and commodities markets. Following the IMF’s recommendations, the
GOP passed a law reforming the SMV’s predecessor, CONASEV (the National
Commission for the Supervision of Companies, Securities and Exchanges). SMV’s
mandate includes controlling securities market participants, maintaining a transparent
and orderly market, setting accounting standards, and publishing financial information
about covered companies. SMV requires stock issuers to report events that may affect
the stock, the company, or any public offerings. This requirement promotes market
transparency, and aims to prevent fraud. Trading on insider information is a crime, with
some reported prosecutions in past years. One case at the end of 2010 involved three
(government-owned health care provider) ESSALUD employees, a stock brokerage firm
and an employee of the stock brokerage firm. CONASEV fined these individuals and the
stock brokerage firm, and their cases are moving through the Peruvian court system.
SMV must vet all firms listed on the Lima Stock Exchange (Bolsa de Valores de Lima) or
the Public Registry of Securities. SMV also maintains the Public Registry of Securities
and Stock Brokers. SMV is studying ways to improve the regulatory system to
encourage and facilitate portfolio investment.
The banking system is considered generally sound, thanks to lessons learned during the
1997-1998 Asian crisis, and continues to revamp operations, increase capitalization, and
reduce costs. Under the SBS's conservative criteria, non-performing loans rose in the
last two years, to 2.14% of total loans as of December 2013, yet down from a high of
11% in early 2001. Able bank supervision and strong GDP growth over the last decade
through 2014 also helped banks weather the 2008-2009 global financial crisis with little
trouble.
Economic opening since the 1990s, coupled with competition, has led to banking sector
consolidation. Seventeen commercial banks comprise the system, with assets
accounting for 89.9% of Peru’s financial system. Three banks account for 72.5% of local
loans and deposits among commercial banks. Of USD 108.9 billion in total banking
assets at the end of December 2014, assets of the three largest commercial banks
amounted to USD 62.6 billion. As of December 2013, foreigners had significant shares in
thirteen banks, of which they were majority owners of eleven (including one of the
country's largest ones) and operator of one of the largest commercial banks. Notably,
two of the four banks that are majority-owned by residents account for 45.1% of
commercial banks’ assets.
Peru’s financial system has 12 specialized institutions ("financieras"), 33 thriving micro-
lenders and savings banks (although several large banks also lend to small enterprises),
two leasing institutions, two state-owned banks, and one state-owned development
bank. In 2014, the Economist Intelligence Unit again ranked Peru number one worldwide
on microfinance business environment for the sixth consecutive year because of its
sophisticated legal and regulatory framework and competitive microfinance sector.
Nevertheless, Peru’s over 150 savings and loan cooperatives operate in an environment
almost devoid of government oversight.
Peruvian law and regulations do not authorize or encourage private firms to adopt
articles of incorporation or association to limit or restrict foreign participation. There are
no private or public sector efforts to restrict foreign participation in industry standards-
setting organizations. However, larger private firms often use "cross-shareholding" and
"stable shareholder" arrangements to restrict investment by outsiders -- not necessarily
foreigners -- in their firms. As close families or associates generally control ownership of
Peruvian corporations, hostile takeovers are practically non-existent. In the past few
years, several companies from the region, China, North America, and Europe have
actively been buying local companies in power transmission, retail trade, fishmeal
production, and other industries.
Competition from State Owned Enterprises Return to top
Several electricity, water and sewage, bank, and oil companies remain state-owned and
state-operated. The most notable area of SOE activity pertains to the petroleum sector,
where the state-owned petroleum company PetroPeru is an oil refiner and operator of an
underutilized oil pipeline. Congress passed several laws since which purport to
strengthen PetroPeru and free it from bureaucratic controls, so that it can enter into all
stages of the petroleum and petrochemical sectors, especially upstream. In 2008,
PetroPeru took center stage in a corruption scandal related to oil and gas concessions.
The scandal led to the resignation of the Minister of Energy and Mines and the
PetroPeru President and forced the GOP to implement a number of changes in
PetroPeru’s management. Over the last two decades, PetroPeru has experienced
significant attrition in managerial and technical expertise. This, coupled with its limited
financial resources, cast into doubt the company’s ability to implement its long-held
plans to expand and upgrade its aging Talara refinery – which continues to produce dirty
gasoline and diesel fuel, a situation the government permits by not enforcing regulatory
standards. Limited resources and expertise also downplay expectations following
repeated announcements from its leadership regarding entrance to upstream, and
participation in a proposed gas pipeline and petrochemical complex in southern Peru.
PetroPeru’s planned return to oil production through participation in tenders of oil
producing blocks that the GOP was set to auction, with a requirement to partner with
PetroPeru, remains uncertain. Limited or no interest shown by oil companies in these
auctions and in several exploration blocs’ pending auctions, coupled with changes at the
Ministry of Energy and Mines, have left those plans undefined.
Significant SOEs have audited accounts that are made public. In addition, the accounts
are monitored by a board of directors. The majority of the country’s SOEs is corporately
managed by FONAFE and is listed on FONAFE’s website along with their audited
accounts
(http://www.fonafe.gob.pe/portal/empresas?accion=transparenciaNew&m=6&Contenidoi
d=32). Petroperu, which is managed independently from FONAFE, publishes a report
that includes the audited financial statements of the company, such as those of
comprehensive income, changes in equity, and cash flows, as well as a summary of
significant accounting policies and other explanatory notes included in Petroperu’s
financial statements. The report is produced annually and is publicly available on
Petroperu’s website (http://www.petroperu.com.pe/transparencia/ley27806.asp).
Corporate Social Responsibility Return to top
Peruvian businesses participate in Corporate Social Responsibility (CSR) programs,
primarily on a voluntary basis. For the energy and mining sector, certain regulations do
exist to promote social responsibility. Supreme Decree No. 042-2003-EM promotes
social responsibility within the mining sector, encouraging local employment
opportunities, support to communities’ projects, development activities, and purchase of
local goods and services. The decree requires mining companies to publish an annual
report on sustainable development activities. The Ministry of Energy and Mines has
prepared a guidebook for community relations, as well as public information on social
measures related to the mining and energy sectors. In February 2011, INDECOPI
adopted the Peruvian Technical Regulation of Social Responsibility ISO 26000 that
serves as a voluntary guide to CSR activities.
On February 15, 2012, Peru was listed as a compliant country under the Extractive
Industries Transparency Initiative (EITI), as the GOP and extractive industries openly
publish all company payments and government revenues from oil, gas, and mining. Peru
is the only EITI-compliant country in Latin America.
Peru continues to be recognized for its 2013-2017 National Strategy to Combat Forced
Labor. Its plan emphasizes the state’s role to protect and promote labor rights.
Simultaneously, it strives to build capacity and empower vulnerable groups to transform
their environment and enforce their rights. The plan addresses both medium and long-
term multi-sector plans to eliminate or reduce conditions that enable forced labor.
Despite these efforts, the government did not effectively enforce labor laws in all cases.
The exploitation of child labor, particularly in informal sectors; forced labor; and
employers engaging in antiunion practices remain significant problems.
Political Violence Return to top
Although political violence against investors is rare, protests, sometimes violent, have
taken place in or near communities with extractive industry operations. Environmental
concerns were often the cited pretext. Protestors often object to the fact that
environmental impact assessments are reviewed by the Ministry of Energy and Mines,
rather than the Ministry of Environment, when in fact, the Ministry of Environment along
with other national agencies do participate in assessment reviews. In many cases,
protestors sought public services not provided by the government. Ideological opposition
to foreign mining firms, not opposition to mining itself, often leads to protest in
communities incited by NGOs. In some cases, organizers from outside the local
community are brought in to foment protests against the companies. Groups blocked
roads and an airport in 2014 to protest extractive industry operations; hydroelectric
projects; restrictions on informal gold mining, gas exports, and the Government's coca
eradication policies. In several of these protests, police and civilians were injured or
killed. As of May 2015, the Ombudsperson’s Office reported 629 conflicts in Peru in
2015; 67% of these conflicts involve socio-economic concerns, usually linked to
extractive industries.
Politically motivated movements at times have opposed large extractive projects. In
some cases, these movements have been successful in delaying large investments, as
occurred in the USD 4.8 billion Conga mine project in Cajamarca in August 2012. In
other cases, protests have stopped such investments entirely.
The National Office of Dialogue and Sustainability is actively engaged in mitigating social
conflict connected to the extractive industry in Peru. This office addresses conflict in a
broader community development context, rather than only responding to social conflicts
after they have already erupted. To this end, the government is providing more
education, infrastructure, and health care services in areas where extractive industry
projects are planned or under development, which will increase government presence
and reduce potential for conflict in those (historically underserved and often remote)
areas. Peru’s Prior Consultation Law was signed in 2011, and its implementing
regulations were approved in 2012. The law requires the GOP to consult with indigenous
communities before enacting any legislation, administrative measures, or development
projects that could affect communities’ rights of territorial demarcation. There have been
several successful prior consultation processes related to the extractive industry, but the
law remains controversial. Critics believe it creates burdensome processes and results
in delays. The industry association Peruvian Society of Hydrocarbons alleges that work
on 30 oil exploration blocks is paralyzed due to lengthy permit processing. The National
Society of Mining, Electricity and Petroleum (SNMPE) and the government have become
involved in assisting local governments to access the extractive industry “canon” (tax
revenue-sharing scheme with funding for public works projects) as a way to both
stimulate local development and prevent conflicts. Although these efforts have been
effective in some mining regions, in others, conflicts have continued or expanded.
Violence remains a concern in coca-growing regions. The government reported that
through October 2014, the Shining Path conducted 18 terrorist acts, resulting in the
death of two soldiers and two civilians, as well as injuries to six soldiers, seven civilians,
and one police officer in the Apurimac, Ene, and Mantaro River Valleys (VRAEM)
emergency zone, which includes parts of Ayacucho, Cusco, Huancavelica, Huanuco,
and J unin regions. A separate emergency zone in the Upper Huallaga Valley (UHV)
includes parts of San Martin and Ucayali regions. There were reports that the Shining
Path abducted children to work for the terrorist organization during the year. The Humala
government continues the longstanding practice of authorizing separate 60-day states of
emergency in two areas where the Shining Path operates – the Apurimac, Ene, and
Mantaro River Valleys (VRAEM) and the Upper Huallaga Valley. On September 11,
2014 the GOP declared a new emergency zone in the Loreto region due to drug
trafficking activity. The state of emergency authorization suspends some civil liberties
and gives the security forces additional authority to maintain public order.
There is little government presence in the remote coca-growing zones of the VRAEM
and Upper Huallaga Valley, although significant ramp-up of government presence and
programs is underway. The U.S. Embassy in Lima restricts visits by official personnel to
these areas because of the threat of violence by narcotics traffickers and columns of the
Shining Path. Information about insecure areas and recommended personal security
practices can be found athttp://www.osac.gov orhttp://travel.state.gov.
Corruption Return to top
Corruption, including bribery, raises the costs and risks of doing business. Corruption
has a corrosive impact on both market opportunities overseas for U.S. companies and
the broader business climate. It also deters international investment, stifles economic
growth and development, distorts prices, and undermines the rule of law.
It is important for U.S. companies, irrespective of their size, to assess the business
climate in the relevant market in which they will be operating or investing, and to have an
effective compliance program or measures to prevent and detect corruption, including
foreign bribery. U.S. individuals and firms operating or investing in foreign markets
should take the time to become familiar with the relevant anticorruption laws of both the
foreign country and the United States in order to properly comply with them, and where
appropriate, they should seek the advice of legal counsel.
The U.S. Government seeks to level the global playing field for U.S. businesses by
encouraging other countries to take steps to criminalize their own companies’ acts of
corruption, including bribery of foreign public officials, by requiring them to uphold their
obligations under relevant international conventions. A U. S. firm that believes a
competitor is seeking to use bribery of a foreign public official in international business,
for example to secure a contract, should bring this to the attention of appropriate U.S.
agencies, as noted below.
U.S. Foreign Corrupt Practices Act: In 1977, the United States enacted the Foreign
Corrupt Practices Act (FCPA), which generally makes it unlawful for U.S. persons and
businesses (domestic concerns), and U.S. and foreign public companies listed on stock
exchanges in the United States or which must file periodic reports with the Securities
and Exchange Commission (issuers), to offer, promise or make a corrupt payment or
anything of value to foreign officials to obtain or retain business. The FCPA also applies
to foreign firms and persons who take any act in furtherance of such a corrupt payment
while in the United States. In addition to the anti-bribery provisions, the FCPA contains
accounting provisions applicable to public companies. The accounting provisions require
issuers to make and keep accurate books and records and to devise and maintain an
adequate system of internal accounting controls. The accounting provisions also prohibit
individuals and businesses from knowingly falsifying books or records or knowingly
circumventing or failing to implement a system of internal controls. In order to provide
more information and guidance on the statute, the Department of J ustice and the
Securities and Exchange Commission published A Resource Guide to the U.S. Foreign
Corrupt Practices Act, available in PDF at:http://www.justice.gov/criminal/fraud/fcpa/guidance/. For more detailed information on
the FCPA generally, see the Department of J ustice FCPA website at:http://www.justice.gov/criminal/fraud/fcpa/.
Other Instruments: It is U.S. Government policy to promote good governance, including
host country implementation and enforcement of anti-corruption laws and policies
pursuant to their obligations under international agreements. Since enactment of the
FCPA, the United States has been instrumental to the expansion of the international
framework to fight corruption. Several significant components of this framework are the
Convention on Combating Bribery of Foreign Public Officials in International Business
Transactions (negotiated under the auspices of the OECD), the United Nations
Convention against Corruption (UN Convention), the Inter-American Convention against
Corruption (OAS Convention), the Council of Europe Criminal and Civil Law
Conventions, and a growing list of U.S. free trade agreements. This country is party to
[add instrument to which this country is party].
OECD Antibribery Convention: The Antibribery Convention entered into force in
February 1999. As of J anuary 2015, there are 41 parties to the Convention, including the
United States (seehttp://www.oecd.org/corruption/oecdantibriberyconvention.htm).
Major exporters China and India are not parties, although the U.S. Government strongly
endorses their eventual accession to the Antibribery Convention. The Antibribery
Convention obligates the Parties to criminalize bribery of foreign public officials in
international business transactions, which the United States has done under U.S. FCPA.
Peru is not party to this convention.
UN Convention: The UN Convention entered into force on December 14, 2005, and
there are 174 parties to it as of March 2015 (seehttp://www.unodc.org/unodc/en/treaties/CAC/signatories.html). The UN Convention
requires countries to establish criminal and other offences to cover a wide range of acts
of corruption, from basic forms of corruption such as bribery and solicitation,
embezzlement, and trading in influence to the concealment and laundering of the
proceeds of corruption. The Convention contains transnational business bribery
provisions that are functionally similar to those in the OECD Antibribery Convention and
contains provisions on private sector auditing and books and records requirements.
Other provisions address matters such as prevention, international cooperation, and
asset recovery. Peru signed this convention on December 10, 2003, and ratified the
convention on November 16, 2004.
OAS Convention: In 1996, the Member States of the Organization of American States
(OAS) adopted the first international anticorruption legal instrument, the Inter-American
Convention against Corruption (OAS Convention), which entered into force in March
1997. The OAS Convention, among other things, establishes a set of preventive
measures against corruption, provides for the criminalization of certain acts of
corruption, including transnational bribery and illicit enrichment, and contains a series of
provisions to strengthen the cooperation between its States Parties in areas such as
mutual legal assistance and technical cooperation. As of J anuary 2015, the OAS
Convention has 34 parties (seehttp://www.oas.org/juridico/english/Sigs/b-58.html) and
the follow-up mechanism created in 2001 (MESICIC) has 31 members (seehttp://www.oas.org/juridico/english/mesicic_intro_en.htm). Peru signed this convention
on March 23, 1996, and ratified the convention April 4, 1997.
Council of Europe Criminal Law and Civil Law Conventions on Corruption: Many
European countries are parties to either the Council of Europe (CoE) Criminal Law
Convention on Corruption, the Civil Law Convention on Corruption, or both. The Criminal
Law Convention requires criminalization of a wide range of national and transnational
conduct, including bribery, money-laundering, and accounting offenses. It also
incorporates provisions on liability of legal persons and witness protection. The Civil Law
Convention includes provisions on whistleblower protection, compensation for damage
relating to corrupt acts, and nullification of a contract providing for or influenced by
corruption, inter alia. The Group of States against Corruption (GRECO) was established
in 1999 by the CoE to monitor compliance with these and related anti-corruption
standards. Currently, GRECO comprises 49 member States (48 European countries and
the United States). Seehttp://www.coe.int/t/dghl/monitoring/greco/general/about_en.asp.
As of J anuary 2015, the Criminal Law Convention has 44 parties and the Civil Law
Convention has 35 (seehttp://conventions.coe.int/Treaty/Commun/QueVoulezVous.asp?CL=ENG&NT=173;http://conventions.coe.int/Treaty/Commun/QueVoulezVous.asp?CL=ENG&NT=174).
Peru is not party to this convention.
Free Trade Agreements: While it is U.S. Government policy to include anticorruption
provisions in free trade agreements (FTAs) that it negotiates with its trading partners, the
anticorruption provisions have evolved over time. The most recent FTAs negotiated now
require trading partners to criminalize “active bribery” of public officials (offering bribes to
any public official must be made a criminal offense, both domestically and trans-
nationally) as well as domestic “passive bribery” (solicitation of a bribe by a domestic
official). All U.S. FTAs may be found at the U.S. Trade Representative Website:http://www.ustr.gov/trade-agreements/free-trade-agreements. Peru has a free trade
agreement (FTA) in place with the United States, the United States-Peru Trade
Promotion Agreement (PTPA), which came into force on February 1, 2009.
Local Laws: U.S. firms should familiarize themselves with local anticorruption laws, and,
where appropriate, seek legal counsel. While the U.S. Department of Commerce cannot
provide legal advice on local laws, the Department’s U.S. and Foreign Commercial
Service can provide assistance with navigating the host country’s legal system and
obtaining a list of local legal counsel.
Assistance for U.S. Businesses: The U.S. Department of Commerce offers several
services to aid U.S. businesses seeking to address business-related corruption issues.
For example, the U.S. and Foreign Commercial Service can provide services that may
assist U.S. companies in conducting their due diligence as part of the company’s
overarching compliance program when choosing business partners or agents overseas.
The U.S. and Foreign Commercial Service can be reached directly through its offices in
every major U.S. and foreign city, or through its website at www.trade.gov/cs.
The United States provides commercial advocacy on behalf of exporters of U.S. goods
and services bidding on public sector contracts with foreign governments and
government agencies. An applicant for advocacy must complete a questionnaire
concerning its background, the relevant contract, and the requested U.S. Government
assistance. The applicant must also certify that it is in compliance with applicable U.S.
law, that it and its affiliates have not and will not engage in bribery of foreign public
officials in connection with the foreign project, and that it and its affiliates maintain and
enforce a policy that prohibits bribery of foreign public officials. Problems, including
alleged corruption by foreign governments or competitors, encountered by U.S.
companies in seeking such foreign business opportunities can be brought to the
attention of appropriate U.S. government officials, including local embassy personnel,
and reported through the Department of Commerce Trade Compliance Center “Report a
Trade Barrier” Website at tcc.export.gov/Report_a_Barrier/index.asp. Potential violations
of the FCPA can be reported to the Department of J ustice via email to
[email protected].
Guidance on the U.S. FCPA: The Department of J ustice’s (DOJ ) FCPA Opinion
Procedure enables U.S. firms and individuals and issuers to request a statement of the
J ustice Department’s present enforcement intentions under the anti-bribery provisions of
the FCPA regarding actual, prospective business conduct. The details of the opinion
procedure are available on DOJ ’s Fraud Section Website at
www.justice.gov/criminal/fraud/fcpa and general information is contained in Chapter 9 of
the publication A Resource Guide to the U.S. Foreign Corrupt Practices Act, athttp://www.justice.gov/criminal/fraud/fcpa/guidance/. Although the Department of
Commerce has no enforcement role with respect to the FCPA, it supplies general
information to U.S. exporters who have questions about the FCPA and about
international developments concerning the FCPA. For further information, see the Office
of the General Counsel, U.S. Department of Commerce, website, athttp://www.commerce.gov/os/ogc/transparency-and-anti-bribery-initiatives. More general
information on the FCPA is available at the websites listed below.
Exporters and investors should be aware that generally all countries prohibit the bribery
of their public officials, and prohibit their officials from soliciting bribes under domestic
laws. Most countries are required to criminalize such bribery and other acts of
corruption by virtue of being parties to various international conventions discussed
above.
Public sector corruption, including bribery of public officials, remains a challenge for U.S.
firms operating in Peru. It is illegal in Peru for a public official or employee to accept any
type of outside remuneration for the performance of his or her official duties. Peru has
ratified both the UN Convention Against Corruption and the Organization of American
States Inter-American Convention Against Corruption. Peru is not a member of the
Organization of Economic Cooperation and Development (OECD). It has not signed the
OECD Convention on Combating Bribery, although it has participated as an observer in
the Working Group. The Contraloría General is the responsible government agency for
combating corruption.
U.S. firms have reported problems directly resulting from corruption, usually in
government procurement processes and in the judicial sector, with defense and police
procurement generally considered among the most problematic. This is in spite of
PTPA’s stipulations and of Peru’s Government Procurement Law (Legislative Decree
No. 1017, DL 1017, one of several laws passed with the specific intention to implement
PTPA). Transparency International ranked Peru 85th out of 177 countries in its 2014
Corruption Perceptions Index, down from 83rd in 2013. While anti-corruption efforts have
been a stated priority of both the Garcia and Humala governments, in practice most
resources to date have been directed at investigating extensive corruption during the
Fujimori era (1990-2000). Former Presidents Garcia and Toledo and several sitting
members of Congress are also under investigation for corrupt practices. The Peruvian
armed forces and national police continue to prefer to execute government-to-
government procurements (i.e., purchases by a GOP agency from a foreign government
agency or government-owned company). In J uly 2012, the Government Procurement
Supervisory Agency ruled that government-to-government procurements do not fall
under the government procurement law (DL 1017). An article in the 2013 Budget Law
also specified that procurements by the GOP from another state are not under the scope
of DL 1017. Since then, there have been a number of local media reports of overvalued
prices in several government-to-government purchases, of goods or services for the
police or the armed forces. Cases include purchases of a satellite, planes, helicopters,
and technical assistance training. Overvaluation has apparently occurred even in the
case of open tenders, as in the notorious recent case of the purchase of 591 binoculars
by the Interior Ministry for the National Police in December 2013. El Comercio, Peru’s
paper-of-record, published a report in J anuary 2014 alleging the Interior Ministry bought
591 binoculars at a price more than ten times the market rate. In early-March 2014, local
media reported that the Public Prosecutor’s Office will investigate a technical assistance-
training procurement made in 2009 by the Armed Forces J oint Command. This probe
comes after the Comptroller General found irregularities and circumstantial evidence of
collusion, embezzlement and other crimes.
Anti-Corruption Resources
Some useful resources for individuals and companies regarding combating corruption in
global markets include the following:
• Information about the U.S. Foreign Corrupt Practices Act (FCPA), including A
Resource Guide to the U.S. Foreign Corrupt Practices Act, translations of the
statute into numerous languages, documents from FCPA related prosecutions and
resolutions, and press release/1are available at the U.S. Department of J ustice’s
Website at:http://www.justice.gov/criminal/fraud/fcpa andhttp://www.justice.gov/criminal/fraud/fcpa/guidance/
• The U.S. Securities and Exchange Commission FCPA Unit also maintains an FCPA
website, at:https://www.sec.gov/spotlight/fcpa.shtml. The website, which is updated
regularly, provides general information about the FCPA, links to all SEC
enforcement actions involving the FCPA, and contains other useful information.
• General information about anticorruption and transparency initiatives, relevant
convention/1and the FCPA, is available at the Department of Commerce Office of
the General Counsel website:http://www.commerce.gov/os/ogc/transparency-and-
anti-bribery-initiatives
• The Trade Compliance Center hosts a website with anti-bribery resources, athttp://tcc.export.gov/Bribery. This website contains an online form through which
U.S. companies can report allegations of foreign bribery by foreign competitors in
international business transactions
• Additional country information related to corruption can be found in the U.S. State
Department’s annual Human Rights Report available athttp://www.state.gov/g/drl/rls/hrrpt/.
• Information about the OECD Antibribery Convention including links to national
implementing legislation and country monitoring reports is available
at:http://www.oecd.org/corruption/oecdantibriberyconvention.ht/1See also
Antibribery Recommendationhttp://www.oecd.org/daf/anti-
bribery/oecdantibriberyrecommendation2009.htm and Good Practice Guidance
Annex for companies:http://www.oecd.org/daf/anti-bribery/44884389.pdf.
• GRECO monitoring reports can be found at:http://www.coe.int/t/dghl/monitoring/greco/evaluations/index_en.asp
• MESICIC monitoring reports can be found at:http://www.oas.org/juridico/english/mesicic_intro_en.htm
• The Asia Pacific Economic Cooperation (APEC) Leaders have also recognized the
problem of corruption and APEC Member Economies have developed
anticorruption and ethics resources in several working groups, including the Small
and Medium Enterprises Working Group, athttp://businessethics.apec.org/, and the
APEC Anti-Corruption and Transparency Working Group, athttp://www.apec.org/Groups/SOM-Steering-Committee-on-Economic-and-
Technical-Cooperation/Working-Groups/Anti-Corruption-and-Transparency.aspx.
For more information on APEC generally,http://www.apec.org/.
There are many other publicly available anticorruption resources which may be
useful, some of which are listed below without prejudice to other sources of
information that have not been included. (The listing of resources below does not
necessarily constitute U.S. Government endorsement of their findings.)
• Transparency International (TI) publishes an annual Corruption Perceptions Index
(CPI). The CPI measures the perceived level of public-sector corruption in
approximately 180 countries and territories around the world. The CPI is available
at:http://www.transparency.org/research/cpi/overview. TI also publishes an annual
Global Corruption Report which provides a systematic evaluation of the state of
corruption around the world. It includes an in-depth analysis of a focal theme, a
series of country reports that document major corruption related events and
developments from all continents, and an overview of the latest research findings
on anti-corruption diagnostics and tools. Seehttp://www.transparency.org/research/gcr.
• The World Bank Institute’s Worldwide Governance Indicators (WGI) project reports
aggregate and individual governance indicators for 215 economies over the period
1996-2013, for six dimensions of governance (Voice and Accountability, Political
Stability and Absence of Violence, Government Effectiveness, Regulatory Quality,
Rule of Law, and Control of Corruption). See httphttp://info.worldbank.org.World
Bank Business Environment and Enterprise Performance Surveys may also be of
interest and are available at:http://data.worldbank.org/data-catalog/BEEPS. See
also the World Bank Group Doing Business reports, a series of annual reports
measuring regulations affecting business activity, available at:http://www.doingbusiness.org/
• The World Economic Forum publishes every two years the Global Enabling Trade
Report, which assesses the quality of institutions, policies and services facilitating
the free flow of goods over borders and to their destinations. At the core of the
report, the Enabling Trade Index benchmarks the performance of 138 economies in
four areas: market access; border administration; transport and communications
infrastructure; and regulatory and business environment. Seehttp://www.weforum.org/reports/global-enabling-trade-report-2014.
• Global Integrity, a nonprofit organization, publishes its annual Global Integrity
Report, which typically assesses anti-corruption and good governance mechanisms
in diverse countries. (The 2012 and 2013 reports covered a small number of
countries as the organization focused on re-launching a modernized methodology
in mid-2014.) For more information on the report, seehttps://www.globalintegrity.org/global-report/what-is-gi-report/.
Bilateral Investment Agreements Return to top
The PTPA eliminated the need for a bilateral investment agreement between the United
States and Peru. Peru also has free trade agreements with Canada, Chile, China,
Colombia, Costa Rica, the European Free Trade Association (which includes Iceland,
Liechtenstein, Norway and Switzerland), Honduras, J apan, Mexico, Panama, Singapore,
South Korea, and Thailand. It has Framework Agreements with MERCOSUR countries
(Argentina, Brazil, Paraguay, Uruguay, and Venezuela). It has a partial preferential
agreement with Cuba. More agreements have been signed and are awaiting full
implementation, including with Guatemala, and the Pacific Alliance (with Mexico,
Colombia, and Chile).
Peru has bilateral investment agreements in force with Argentina, Bolivia, Canada,
Chile, China, Colombia, Costa Rica, Czech Republic, Denmark, Ecuador, El Salvador,
Finland, Italy, Korea, Netherlands, Norway, Paraguay, Portugal, Romania, Spain,
Sweden, Switzerland, Thailand, United Kingdom, Venezuela, and the European Union.
OPIC and Other Investment Insurance Programs Return to top
The Overseas Private Investment Corporation (OPIC), an independent U.S. Government
agency, offers medium-to-long-term financing and political risk insurance. From 2010
thru 2014, OPIC supported solar power plants, consumer lending, operation and
expansion of retail stores, microfinance, installation/operation of stereotactic
radiosurgery equipment, consulting services, export services, import-export logistical
services, and portfolio expansion of SME, micro-credit and consumer loans, in the form
of commitments totaling more than USD 21 million.
Because of the free convertibility of currency, the U.S. Embassy purchases Peruvian
currency for expenses on an as-needed basis at the market exchange rate. The USD
averaged PEN 2.84/USD in 2014, up from 2.75 per dollar in 2013. Peru is a member of
the Multilateral Investment Guarantee Agency.
It is unlikely that the GOP would either devalue or revalue the Nuevo Sol. The foreign
exchange market mostly operates freely. However, the Peruvian BCR intervenes in the
foreign exchange market to prevent significant exchange rate variations – at times day
after day. To many observers, this regime has succeeded in avoiding traumatic foreign
exchange adjustments to the economy.
Labor Return to top
Labor is abundant, although several large investment projects in recent years led to
localized shortages of highly skilled workers in some fields. While the legal framework to
uphold international labor standards is well-defined, the GOP did not effectively enforce
the law in all cases. Mining sector contacts praise the technical knowledge and
professional dedication of Peruvian engineering graduates. Since the 1960s, the number
of jobs created by the Peruvian economy was consistently below the number of new
entrants to the labor market. The situation meant underemployment or seeking work in
the informal economy. According to the National Bureau for Statistics (INEI), 74.3% of
the labor force is informal:http://www.nytimes.com/aponline/2015/03/18/us/politics/ap-lt-
oas-secretary-general.html?_r=0.
The statutory monthly minimum wage is PEN 750/month (approximately USD 242). INEI
estimated the poverty line to be PEN 292/month (USD 92) per person, although it varied
by region due to different living costs. The Ministry of Labor (MOL) enforces the
minimum wage only in the formal sector. Many workers in the unregulated informal
sector, most of them self-employed, make less than the minimum wage. Wages are
sometimes higher than U.S. wages in the mining sector for management positions and
consulting services. Workers in Peru are paid by the month, not by the year. Some
workers, like formal miners, are highly paid and also (per statute) receive a share of
company profits up to a maximum total annual amount of 18 times their base monthly
salary. Current labor law provides for a 48-hour work week and one day of rest, and
requires companies to pay overtime for more than eight hours of work per day and
additional compensation for work at night. Noncompliance with the law is a punishable
infraction. There is no prohibition on excessive compulsory overtime.
A 2008 law reduced severance pay and bonuses by 50%, and paid annual vacation to
15 days for small business workers. Workers readily sacrifice these and other benefits in
exchange for regular employment. Another 2008 law gave micro-enterprise workers
social security and pensions.
Peruvian labor law requires that employees provide advance notice to the MOL before
holding a strike, with the new legislation not being as permissive as before. According to
the MOL, 95 strikes took place in the private sector in 2014, just 1.1% above 2013, but
person-hours lost almost doubled, for a total of 3.153 million work hours. Unions in what
the government determines are “essential public services” are permitted to call a strike
but must provide 10 working days’ notice, receive the approval of the MOL, be approved
by a simple majority of workers, and provide a sufficient number of workers during a
strike to maintain operations, as jointly determined by the union and labor authorities on
an annual basis. As of September 2014, the MOL registered 53 total strikes, 48 of which
were declared illegal. According to labor leaders permission to strike was difficult to
obtain, in part because the MOL feared harming the economy. The MOL justified its
decisions by citing failure of unions to fulfill the legal requirements necessary to strike.
On J anuary 15, 2010, Congress adopted a new labor procedure law (No. 29497) to
improve the efficiency of resolving labor disputes. The law requires that labor conflicts be
resolved in less than six months, allows unions or their representatives to appear in
court on behalf of workers, requires proceedings to be conducted orally and video-
recorded, and relieves the employee from the burden of proving an employer-employee
relationship. On November 5, 2012, the Lima J udicial District began implementing the
labor procedure law. At year’s end, it was in effect in at least 25 of the 31 judicial districts
in Peru.
In J uly 2014 President Humala signed labor reforms to the Occupational Safety and
Health (OSH) Law and inspection law. These changes allow employers to outsource the
management of health and safety to third-party service providers. Employers are now
responsible for conducting one health exam every two years, rather than every year,
which labor NGOs and unions were concerned leaves short-term contracted workers
exposed to industrial illness. These reforms narrow the justification for a criminal penalty
to only those cases where employers have “deliberately” violated safety and health laws
and where labor authorities have previously notified employers who have chosen not to
adopt measures in response to a repeated infraction. Labor experts and NGOs
expressed concern about what they considered an unreasonably high threshold for
holding employers accountable for workplace injuries and for not maintaining health and
safety standards. The law reduces the sentence for employers found guilty of health and
safety violations from four-to-eight years’ to one-to-four years’ imprisonment. In the case
of a serious or fatal accident where a worker is found to be solely responsible for
noncompliance with OSH rules, the employer is exempted from responsibility.
Six percent of the labor force in the private sector was organized in 2014, with
unionization highest in electricity, water, construction, and mining (from 39% to 22%)
and generally low in the rest of economy. Unemployment in Lima officially stood at
6.9%% during the first quarter of 2014. A 2012 GOP survey showed that 41.1% of
Lima's labor force was underemployed in the same period (versus 58.3% in the same
period of 2011). The average nominal monthly salary increased 8.0% year-on-year in the
fourth quarter of 2013, INEI reported. The ILO’s Global Wage Report 2012/2013
released in December 2012 stated that average real wages in Peru grew at over 3% per
annum between 2004 and 2011.
Labor laws have become more inflexible in the last ten years, making labor relatively
more expensive. A law passed in 2008 created more restrictions on outsourcing and
subcontracting, made the contracting company more responsible for the actions of its
subcontracted company, and created a national registry of contracting companies. The
PTPA requires Peru to respect the ILO-defined core labor rights of its workers. In
J anuary 2010, the GOP and U.S. Government established the bilateral Labor Affairs
Council as mandated in Article 17.5 of the PTPA.
According to labor leaders, the current labor law has weakened unions in part because
companies create competing unions that are seen as more favorable to management.
Workers in probation status or on short-term contracts are not eligible for union
membership. Bargaining agreements are considered contractual agreements, valid only
for the life of the contract. Productivity provisions must be included in any collective
bargaining agreement. The amount of time union officials may devote to union work is
limited to 30 days per year. Unless there is a pre-existing labor contract covering an
occupation or industry as a whole, unions must negotiate with each company
individually. The government did not effectively enforce the law in all cases. Penalties
for violations of freedom of association and collective bargaining exist, but were rarely
enforced. Workers faced prolonged judicial processes and lack of enforcement following
trade union activity-related dismissals. For instance, NGOs reported that emblematic
cases of labor arbitration dating from 2013 remained in limbo, with the implementation of
arbitrators’ decisions delayed by ongoing judicial appeals processes.
In practice, workers faced some challenges in exercising their rights of freedom of
association and collective bargaining. Unions were generally independent of government
and political parties. Employers continued to dismiss workers for exercising the right to
strike. Dismissal of striking workers and delays in reinstatement of these workers, in both
legal and illegal strikes, was the main tactic used by employers to dissuade workers from
going on strike. Labor leaders and the ILO argue that current labor laws erode labor
protections and encourage outsourcing in ways that undercut union activity.
Either unions or management can request binding arbitration in contract negotiations.
Strikes can be called only after approval by a majority of all workers (union and non-
union), voting by secret ballot, and only in defense of labor rights. Unions in essential
public services, as determined by the government, must provide a sufficient number of
workers during a strike to maintain operations.
The GOP created in April 2014 the National Labor Superintendence (SUNAFIL, for its
Spanish acronym) and opened nine regional offices to represent the labor inspectorate
nationally.
All labor in the (very small) export processing zones (EPZs) is subcontracted. With the
exception of enjoying greater flexibility in hiring temporary labor, there are no special
laws or exemptions from regular labor laws in EPZs.
Foreign employees may not comprise more than 20% of the total number of employees
of a local company (whether owned by foreign or Peruvian persons) or more than 30%
of the total company payroll. However, under the PTPA, Peru has agreed not to apply
most of its nationality-based hiring requirements to U.S. professionals and specialty
personnel. Peru also has bilateral agreements with Spain and Argentina, for example, so
that Spaniards and Argentines working in Peru do not count as foreigners and vice
versa.
Foreign-Trade Zones/Free Ports Return to top
Peruvian law currently covers two types of trade zones: export, transformation, industry,
trade and services zones (CETICOS), and a free trade zone (ZOFRATACNA) in Tacna.
The rules and tax benefits applying to these zones are the same for foreign and national
investors. These zones have failed to attract any sizeable investment, and their
importance for Peru’s economy is negligible.
CETICOS exist at Ilo, Matarani and Paita. One CETICO is authorized in Loreto
department, but is not operational. There is concern that the GOP does not have the
proper WTO waivers to validate the CETICOS export requirement. The U.S. automotive
industry has expressed a specific concern that U.S. brands are unable to compete with
used J apanese vehicles that enter the Peruvian market duty-free through the CETICOS.
The Ministry of Transportation and Communications banned the importation of right-
hand drive vehicles in 2013, citing environmental and safety concerns. Imports of used
cars more than five years old and used buses and trucks more than two years old are
prohibited.
Foreign Direct Investment Statistics Return to top
The stock of foreign direct investment in Peru stood at USD 79.7 billion in December
2014 according to the BCR, up from USD 71.9 billion at the end of 2013. According to
the most recent data from the BCR, the largest investors in Peru are the United States,
Canada, Spain, and Chile. By industry, the main investment destinations are mining
(29%), services (24%), oil and gas (17%), manufacturing (10%), finance (13%), and
energy (6%).
U.S. foreign direct investment in Peru amounted to USD 10.9 billion in 2012, a 21.4%
increase from 2011, according to the U.S. Department of Commerce Bureau of
Economic Analysis. Of that sum, USD 4.1 billion was invested in mining, USD 1 billion in
manufacturing, and USD 319 million in wholesale trade.
Major foreign direct investments included China Minmetals Corp., Hunt Oil (U.S.),
Newmont Mining Corporation (U.S.), BHP Billiton (Australia), Cencosud Internacional
Limitada (Chile), Endesa Latinoamericana (Spain), Freeport-McMoRan (U.S.), Golds
Fields Corona (South Africa), SN Power Peru (Norway), Compania Minera Latino-
Americana (Chile), Sempra Energy (U.S.), Citibank (U.S.), Southern Peru Copper
(Mexico), Pluspetrol (Argentina), Scotiabank (Canada), Telefonica (Spain), Repsol
(Spain), Gerdau (Brazil), Anglo American (United Kingdom), Invercale (Chile), Asa
Iberoamerica (Spain), Fraport AG Frankfurt Airport Services Worldwide (Germany),
Aeropuertos Andinos del Peru (Argentina), Odebrecht (Brazil), and the Falabella Group
(Chile). When completed, China Minmetal (formerly Glencore-Xstrata)’s USD 5.2 billion
Las Bambas copper mine project in Apurimac will rank as Peru’s largest foreign direct
investment. The multi-year Hunt Oil-led investment is part of a consortium that invested
USD 3.8 billion to develop a natural gas liquefaction plant, maritime terminal, and
pipeline in southern Peru.
Peru’s direct investment abroad amounts to USD 3.9 billion, according to the CIA.
Peruvian investment in Chile, Brazil, the United States, and Bolivia comprised the vast
majority of Peru’s direct investment abroad.
Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy
Host Country
Statistical
source*
USG or international
statistical source
USG or international
Source of data
(Source of Data: BEA; IMF;
Eurostat; UNCTAD, Other)
Economic
Data
Year Amount Year Amount
Host
Country
Gross
Domestic
Product
(GDP)
(Millions
U.S.
Dollars)
2014
2013
2012
2011
2010
No data
193,214
199,608
176,727
153,710
2014
2013
2012
2011
2010
No data
202,350
203,790
181,011
157,609
http://www.worldbank.org/en/c
ountry
Foreign
Direct
Investmen
t
Host Country
Statistical
source*
USG or international
statistical source
USG or international
Source of data: BEA; IMF;
Eurostat; UNCTAD, Other
U.S. FDI in
partner
country
(Millions
U.S.
Dollars,
stock
positions)
2014
2013
2012
2011
2010
No data
No data
No data
No data
9,199
2014
2013
2012
2011
2010
No data
10,061
10,918
8,993
7,196
(BEA) click selections to
reach.
• Bureau of Economic
Analysis
• Balance of Payments
and Direct Investment
Position Data
• U.S. Direct Investment
Position Abroad on a
Historical-Cost Basis
• By Country only (all
countries) (Millions of
Dollars)
Host
country’s
FDI in the
United
States
(Millions
U.S.
Dollars,
stock
positions)
No
national
data
available
2014
2013
2012
2011
2010
No data
100
121
238
182
(BEA) click selections to reach
• Balance of Payments
and Direct Investment
Position Data
• Foreign Direct
Investment Position in
the United States on a
Historical-Cost Basis
• By Country only (all
countries) (Millions of
Dollars)
Total
inbound
stock of
FDI as %
Year
2014
2013
2012
Amount
No data
No data
No data
Year
2014
2013
2012
Amount
No data
0.356
0.310
United Nations Conference on
Trade and Development
host GDP
(calculate)
2011
2010
No data
0.253
2011
2010
0.273
0.246
* Peruvian (host country) statistical sources:http://www.mef.gob.pe/index.php?option=com_content&view=article&id=1116&Itemid=1
00233&lang=eshttp://elibrary-data.imf.org/DataReport.aspx?c=11666795&d=33061&e=171392http://www.bea.gov/international/di1usdbal.htm
Table 3: Sources and Destination of FDI
Peru, 2013
(The chart does not reflect committed investment yet to be executed, for example China
Minmetals’ Las Bambas project.)
Direct Investment from/in Counterpart Economy Data
From Top Five Sources/To Top Five Destinations (US Dollars, Millions)
Inward Direct Investment Outward Direct Investment
Total Inward 38,841 100% Total Outward 1,239 100%
United States 9,199 24% Chile 367 30%
Canada 4,710 12% United States 267 22%
Spain 3,700 10% Panama 212 17%
Panama 2,803 7% J amaica 194 16%
Cayman Islands 2,590 7% Bolivia 116 9
"0" reflects amounts rounded to +/- USD 500,000.
Source: International Monetary Fund,http://cdis.imf.org/
N/A
Contact Point at Post Return to top
Benjamin A. Yates
Economic Officer
U.S. Embassy, Av. La Encalada Cdra. 17 s/n, Monterrico, Lima 33, Peru
(51-1) 618-2410
[email protected]
Return to table of contents
Return to table of contents
Chapter 7: Trade and Project Financing
• How Do I Get Paid (Methods of Payment)
• How Does the Banking System Operate
• Foreign-Exchange Controls
• U.S. Banks and Local Correspondent Banks
• Project Financing
• Web Resources
How Do I Get Paid (Methods of Payment) Return to top
According to Banco de Crédito del Perú, Peru’s largest bank, 60% of payments for
exports to Peru are via open accounts. Open account use has increased dramatically as
Peru’s economy has strengthened since 1990. Documentary collections are the second
most common payment method, involving over 20% of total transactions. Letters of
credit account for about 16% of transactions (down from close to 100% before 1990).
Traders use other payment methods, including factoring, banker’s acceptances, and
cash in advance. Banks are the usual collectors for exports to Peru. Most credit cards
are widely accepted with American Express, MasterCard, Visa and Diners Club being
the most preferred.
The leading credit-rating agency in Peru is Dun & Bradstreet S.A.C.
(www.dnbperu.com.pe [email protected]), followed by Coface Peru
(www.coface.com.pe; [email protected]) and Informa Peru
(www.informadelperu.com/english/index.html; [email protected])
There are two credit-reporting agencies in Peru, Infocorp/Equifax (www.infocorp.com.pe;
[email protected]), and CERTICOM (www.certicom.com.pe;
[email protected]).
The Securities and Exchange Supervisory Agency (SMV, www.smv.gob.pe) lists the
following four risk-rating agencies:
- Apoyo & Asociados Internacionales S.A.C. Clasificadora de Riesgo (www.aai.com.pe)
- Clasificadora de Riesgo Pacific Credit Rating SAC (www.ratingspcr.com)
- Class & Asociados S.A. Clasificadora de Riesgo (www.classrating.com)
- Equilibrium Clasificadora de Riesgo S.A. (www.equilibrium.com.pe).
How Does the Banking System Operate Return to top
Peru’s adherence to sound fiscal and monetary policies helped the country withstand the
2008-2009 global financial crisis, China’s economic slowdown, and the ongoing situation
in Europe. Peru’s current economic situation is a far cry from that in the mid-to-late-
1990s when its banks were heavily dependent on foreign credit lines (59% of the banks’
credit sources in the first half of 1998 came from foreign credit lines). Before the 1990s
Peru suffered from chronic balance of payments and fiscal deficits, and from extremely
low foreign reserves.
As of December 2014, Peru had over US$62.31 billion of net foreign reserves. Most
banks’ funding comes from domestic deposits. The local branches of foreign banks are
strong. Private pension funds control large and growing assets. The financial system
enjoys a low delinquency ratio. Additionally, the Ministry of Economy and Finance saved
close to US$6 billion from fiscal surpluses in the 2006-2008 period. The Peruvian
government used part of these savings to address the effects of the global financial
crisis in 2008-2009 when Peru had a US$2.4 billion fiscal deficit. From 2009 to 2013,
Peru again ran a fiscal surplus because of domestic demand, high commodity prices,
exports, and foreign investment.
Trade financing is available to the Peruvian purchasers of U.S. goods and services
through their local banks. The Export-Import Bank of the United States (Ex-Im Bank)
offers loans and loan guarantees to U.S. exporters of goods and services and foreign
purchasers. The Ex-Im Bank also provides credit insurance to U.S. businesses against
non-payment by foreign buyers in the case of political or commercial risk. The Overseas
Private Investment Corporation (OPIC), an independent U.S. government agency, offers
medium- to long-term financing and political risk insurance.
Peru's financial system consists of 17 commercial banks, 33 municipal and rural savings
banks and microfinance institutions, twelve specialized institutions ("financieras"), two
leasing institutions, and four government-owned entities: the Central Bank (Banco
Central de Reserva del Peru, or BCRP), the government's financial agent (Banco de la
Nacion), development banks, the Corporación Financiera de Desarrollo (COFIDE) and
Agrarian Bank. These institutions, along with five private pension fund administrators, 14
insurance companies, and 20 miscellaneous companies, are regulated by the
Superintendence of Banks, Insurance, and Pension Funds Administrators,
(Superintendencia de Banca y Seguros, SBS). SBS policy generally follows regulatory
guidelines set by the Switzerland-based Bank for International Settlements (BIS). For
example, regulators must audit bank financial statements in compliance with
internationally accepted auditing standards. In cases not covered by BIS guidelines,
regulators use standards set by the International Financial Reporting Standards (IFRS).
In addition, SBS regulations require that at least two independent credit rating agencies,
accredited by the SBS, conduct periodic compulsory assessments for all deposit-taking
institutions. However, another 150 savings and loan corporations operate in an
environment almost devoid of government oversight.
Financial institutions allocate credit on market terms. Observers consider the banking
industry in Peru as competitive in serving customers. Private pension funds have
competed in recent years for both private and public bonds issued locally by companies
and the Peruvian government. These entities compete actively because the supply of
domestic securities is insufficient given the small size of the local market. Foreign
investors can obtain credit and float bonds on the local market. Several of them have
done so in the last few years while terms remain more competitive than terms of usual
international centers. Under the U.S.-Peru Trade Promotion Agreement (PTPA), U.S.
financial service suppliers have full rights to establish subsidiaries or branches for banks
and insurance companies.
The private sector has access to a variety of credit instruments. In 2014, primary
issuance of bonds reached $1.17 billion, 33% below the previous year. Mutual funds
managed US$6.29 billion in December 2014, a 6.5% increase from the December 2013
level. By December 2014, private pension funds managed a total of US$38.1 billion.
The banking system is considered generally sound, thanks to lessons learned during the
1997-1998 Asian Crisis. Since then, the SBS has progressively revamped operations,
increased capitalization, and reduced costs. Using conservative criteria, SBS assessed
that 2.4% of total loans were non-performing as of December 2014, down from a high of
11% in early 2001.
Customer deposits carry insurance financed by commercial bank contributions to an
insurance fund (www.fsd.org.pe). The amount changes quarterly on the basis of the
wholesale price index. For the December 2011-February 2012 period, the insurance
fund insures accounts up to US$33,930. Peruvian law empowers the BCR to act as a
"lender of last resort" in the case of a run on any commercial bank only up to the limit of
the bank's net worth, since the SBS has set liquidity requirements on deposits and other
short-term liabilities at relatively high levels. Banks must also meet liquidity requirements
on all short-term liabilities, including amounts due to banks outside of Peru. Should the
need arise (in cases of currency stress), the Central Bank has immediate access to
US$662 million in credits from the Latin American Reserves Fund (Fondo
Latinoamericano de Reservas, or FLAR), for up to one month or US$828 million for up to
three years. The Central Bank can also access other credits for longer terms. U.S.
Treasury instruments back FLAR’s assets.
Foreign-Exchange Controls Return to top
The Peruvian government eliminated foreign-exchange controls in 1990. The BCR,
however, has kept a tight lid on the amount that local private pension funds (AFP) can
invest in foreign securities. In J uly 2011 a law increased this limit to 50%, but the BCR
only raised the “operative” limit to 32% at the end of 2012. In recent years AFPs have
protested this limit on grounds that the local securities market is still small and unable to
absorb the increasing funds the AFPs manage. The BCR has signaled its readiness to
increase the ceiling in response to these concerns. Companies and individuals are free
to maintain and operate accounts in domestic and foreign currencies at local or foreign
banks.
U.S. Banks and Local Correspondent Banks Return to top
Citibank is the only U.S. bank operating in Peru. In May 2015, Citibank sold its consumer
retail division to Scotiabank and remains in Peru strictly working on commercial matters.
Most U.S. companies select a correspondent bank by soliciting a recommendation from
their U.S. bank. Most Peruvian banks have correspondent banking relationships with a
U.S. bank or banks. As of J une 2011, the commercial banks in Peru that had
correspondent banking relationships with U.S. banks include (in alphabetical order):
Banco BBVA-Continental (http://www.bbvabancocontinental.com)
Banco de Comercio (http://www.bancomercio.com)
Banco de Crédito del Perú (http://www.viabcp.com)
Banco Financiero del Peru (http://www.financiero.com.pe)
Banco Interamericano de Finanzas (http://www.bif.com.pe)
Banco Santander (http://www.santander.com.pe
Citibank (http://www.citibank.com/peru)
HSBC Bank Peru (http://www.hsbc.com.pe)
Interbank (http://www.interbank.com.pe)
Scotiabank Peru (http://www.scotiabank.com.pe)
Project Financing Return to top
Since the market reforms of the early 1990s, the private sector has carried out all major
projects, though sometimes in a Public-Private Partnership with the government. Foreign
companies have undertaken large projects with financing obtained in their countries of
registration, from multilateral development banks, and/or from local lenders. In recent
years, due to the Central Bank limit on the amount that Peruvian pension funds can
invest abroad, there has been intense local competition for lending, interest rates have
fallen below those in New York and London for creditworthy companies, and local banks
have increased their sophistication. The number of projects totally or partly financed
locally has grown since 1999. The three major banks involved in this area are Banco de
Crédito del Peru, Banco BBVA-Continental, and Citibank. Some projects, such as the
Camisea natural gas pipeline, have been partly financed by multilateral development
banks, including the IDB, World Bank, and Andean Finance Corporation (CAF). Some
projects have been structured with simultaneous or subsequent financing from the local
capital market (e.g., corporate bonds). The U.S. Ex-Im Bank is an active market
participant. There are 12 active Ex-Im Bank lenders/brokers operating in Peru. The U.S.
Commercial Service Lima office offers a list of these companies.
Web Resources Return to top
Trade Finance Guide: A Quick Reference for U.S. Exporters, published by the
International Trade Administration’s Industry & Analysis team:http://www.export.gov/tradefinanceguide/index.asp
Export-Import Bank of the United States:http://www.exim.gov
Country Limitation Schedule:http://www.exim.gov/tools/country/country_limits.html
OPIC:http://www.opic.gov
Trade and Development Agency:http://www.tda.gov/
SBA's Office of International Trade:http://www.sba.gov/oit/
USDA Commodity Credit Corporation:http://www.fsa.usda.gov/ccc/default.htm
U.S. Agency for International Development:http://www.usaid.gov
Inter-American Development Bank:http://www.iadb.org
The World Bank Group:http://www.worldbank.org
Return to table of contents
Return to table of contents
Chapter 8: Business Travel
• Business Customs
• Travel Advisory
• Visa Requirements
• Telecommunications
• Transportation
• Language
• Health
• Local Time, Business Hours and Holidays
• Temporary Entry of Materials and Personal Belongings
• Web Resources
Business Customs Return to top
In Peru business dress is conservative, meaning suits and ties for men and dresses or
suits for women are the norm. It is customary to exchange business cards at the outset
of a meeting.
Business travelers to Peru seeking appointments with U.S. Embassy Lima officials
should contact the Commercial Service in advance. The Commercial Service can be
reached by telephone at (511) 618-2442 or 434-3040; by fax at (511) 434-3041, by email
at: [email protected], or see the website athttp://export.gov/peru/.
Travel Advisory Return to top
International business travelers increasingly find a sufficient number of rooms in local
hotels, several built in recent years. General travel information, including travel warnings
and alerts, can be found at U.S. Department of State’s webpage athttp://travel.state.gov/ .
The Department of State issues Country Specific Information for all foreign countries,
including Peru, with information including the location of the U.S. embassy or consulate,
immigration requirements, health conditions, minor political disturbances, unusual
currency and entry regulations, crime and security information, and drug penalties.
Peru’s Country Specific Information can be found athttp://travel.state.gov/content/passports/english/country/peru.html/.
The U.S. Embassy in Lima also maintains a website with a wealth of information for U.S.
business travelers athttp://lima.usembassy.gov/ .
The Department of State recommends that all U.S. citizens traveling overseas enroll
their trip with the Smart Traveler Enrollment Program. Travelers may register their stay
in Peru online athttp://travel.state.gov/content/passports/english/go/step.html/.
Visa Requirements Return to top
A valid U.S. passport is required to enter Peru. Tourists staying less than 90 days do not
require a visa. It is recommended that business travelers to Peru enter as tourists
provided they are not reimbursed for their services while in Peru. However, if any
compensation is earned and paid while in Peru, a business visa is required and an
income tax declaration must be processed before departing Peru. This process takes
approximately three days.
Travelers needing a business visa should contact the Peruvian Consulate General Office
in Washington, D.C located at 1625 Massachusetts Avenue, N.W., 6th Floor,
Washington, D.C. 20036; telephone number: (202) 462-1081; website:http://www.embassyofperu.org/. There are also Peruvian consulates in Atlanta, Boston,
Chicago, Dallas, Denver, Hartford, Houston, Los Angeles, Miami, New York, Paterson,
and San Francisco.
U.S. Companies that require travel of foreign businesspersons to the United States
should be advised that security evaluations are handled via an interagency process.
Visa applicants should go to the following links.
State Department Visa Website:http://travel.state.gov/visa/
U.S. Embassy Lima Non-Immigrant and Immigrant Visas Section:http://lima.usembassy.gov/visas.html
Telecommunications Return to top
The telecommunications industry in Peru has been steadily modernized following the
privatization of the national telephone company, which was bought by Telef?nica de
España (http://www.telefonica.com.pe) in 1994. Wireless internet access is available at
many restaurants and cafes, as well as internet cafes. Telefónica has 55% of the mobile
market and 81% of the landline market. Some companies and individuals have
complained about Telefónica’s customer service and slow installation rate. Competitors
in the mobile market include Claro (http://http://www.claro.com.pe) and Chilean-owned
Entel, which acquired Nextel in April 2013. A new competitor that entered the market in
2014 is Viettel, a Vietnamese mobile operator. However, customers may use their U.S.
providers while in Peru, since most U.S. providers offer international roaming services.
For travelers to Peru, a smartphone will function if it has GSM/GPRS service. For long
distance calling there are a variety of pre-paid calling services. Long distance Direct
Access through credit card numbers for AT&T, Sprint, and MCI WorldCom is also
available. International calls can be made through Voice over Internet Protocol (VoIP)
services such as Skype or Google Talk. Major U.S. long distance calling cards can be
used at major hotels.
Transportation Return to top
Airlines
There are eighteen international passenger airlines and six companies serving routes
within Peru. Currently five U.S. airline companies offer 98 non-stop flights between the
U.S. and Peru. American Airlines offers fourteen weekly flights Lima-Miami and seven
weekly flights Lima-Dallas; Delta Airlines provides seven weekly flights Lima-Atlanta;
United Airlines services seven weekly flights Lima-Newark and seven Lima-Houston.
The low fare companies, Spirit Airlines and J et Blue, provide seven weekly flights each
Lima-Ft. Lauderdale. In addition, Avianca offers seven weekly flights to Miami while LAN
Airlines services fourteen weekly non-stop flights from Lima to Miami, seven to New
York, and fourteen to Los Angeles. Ninety-five percent of the international flights arrive
at “J orge Chavez International Airport” in Lima. Most of these airline companies also
provide cargo transportation services.
Domestic flights between Lima and larger cities in Peru are provided by LAN Peru,
Avianca, L.C. Peru, Star Peru, Peruvian Airlines, and ATSA (charter service.) Cusco is
the second busiest commercial airport within Peru with more than twenty daily flights
from Lima. Other international companies serving Peru and serving other countries are:
Aerolineas Argentinas, Aeromexico, Air Canada, Air Europa, Air France, Copa Airlines,
Iberia, KLM, LAN Airlines, Sky Airlines, Avianca, and TAM providing passenger and
cargo services through the “J orge Chavez International Airport” run by Lima Airport
Partners (LAP).
Railways
The railway system in Peru is not well-developed and is limited to 1,928.8 kilometers
formed by:
- Ferrocarril del Centro of 489.6 Km. Given in concession to Ferrovias Central Andina
and operated by Ferrocarril Central Andino (FCCA). FCCA offers cargo services of
minerals Huancayo-La Oroya-Callao and Cerro de Pasco-La Oroya-Callao and seasonal
passenger services Lima-Huancayo.
- Ferrocarril Huancayo-Huancavelica of 128.7 Km. Run by the Ministry of Transport and
Communications providing cargo and passenger services.
- Ferrocarril del Sur of 989.7 Km. Given in concession to Ferrocarril Transandino,
operates Matarani-Arequipa-Puno, J uliaca-Cusco, Cusco-Machu Picchu, and Pacha-
Urubamba. PeruRail and Inca Rai/1provide passenger roundtrip services from Cusco or
the Sacred Valley to Machu Picchu in Aguas Calientes. PeruRail also offers passenger
services between Cusco and Puno.
-Ferrocarril Tacna-Arica of 60 Km. Run and operated by the Regional Government of
Tacna providing cargo and passenger services.
- Ferrocarril Toquepala-Ilo of 217.7 Km. Operated by the private mining company,
Southern Peru Copper Corp. carries concentrates from the copper mines of Toquepala
and Cuajone to the Ilo smelter, and the Ilo refinery to the port of Ilo.
-Ferrocarril Caripa-Condorcoha of 13.6 Km. Operated by the private cement company,
Cemento Andino.
-Ferrocarril Santa-Clara-Cajamarquilla of 7.3 Km. Operated by the Brazilian company
Votorantim Metais carries concentrates from the Cajamarquilla zinc plant.
Supreme Decree No. 059-2010-MTC approved Lima’s basic metro system, the electric
system of massive transportation of Lima and Callao, which includes 5 lines. Line 1,
already in operation, consists of two routes. The first one with a length of 22.2 Km.,
connecting Villa El Salvador with Estación Grau in Cercado de Lima (downtown Lima),
and the second route recently inaugurated with 12.40 Km. long with ten stations,
connecting Cercado de Lima to El Agustino and San J uan de Lurigancho.
The second Lima Metro line of 35 Km running east to west from Ate to Callao was
recently awarded to the consortia Nuevo Metro de Lima formed by COSAPI (Peru), and
European companies Impregilo, Iridium, Vialia, Ansaldo Breda and Ansaldo STS.
Dragados, FCC and Iridium. This USD$5.6 billion investment will start its operation in
J une, 2014 and should be concluded in J une 2019. It will have 35 stations and will travel
underground through nine districts in Lima and three in Callao. Additionally a branch of 8
Km. will be built from Gambetta and Faucett avenues towards the Lima’s J orge Chavez
International Airport.
Ground transportation
Public bus and mini-bus (“combi”) ground urban and inter-city transportation is not
recommended due to a high incidence of traffic accidents in Peru and, in the case of
inter-city transportation, due to the high rate of highway bus robberies. Taxis are not
metered, so fares must be negotiated before getting into the cab, with the caveat that
few taxi drivers speak English. Taxis are plentiful and provide an inexpensive way to get
around Lima and in major cities; however it is recommended to arrange these services
with the hotels or call a radio taxi company. Non-contracted taxi services should only be
used when other options are unavailable given numerous safety concerns related to the
security and legitimacy of Peruvian taxi travel. Furthermore, given the increasingly
congested traffic conditions and security concerns, it is advisable that business travelers
contract hourly taxi service or hire cars with drivers instead of renting a vehicle. Tips are
not expected on short rides. If you lease a car with a driver, a tip is common.
Airport Taxis
Transportation to and from the airport by radio taxi or taxi service is approximately
US$25. The traveler can make transportation arrangements with the hotel before arrival
or use one of the taxi services at the Lima International airport. The two taxi services that
are considered safe and reliable are: MITSUI and CMV. These taxi services counters
can be located in the baggage and customs area of the airport. The service counter is
located on the left side before exiting the terminal glass doors. The domestic wing has
similar taxi services.
Language Return to top
Business is conducted in Spanish. Although a large number of executives in the
Peruvian business community speak English, promotional literature should be translated
into Spanish. Quechua and Aymara are spoken in the Andean highlands. High-tech
companies like Microsoft and Claro promote their products in the traditional languages.
Health Return to top
Peruvian medical facilities do not generally meet U.S. standards, although some private
clinics do. If visitors take certain precautions about food and drink, the level of risk is
manageable. Cholera, dengue, chikungunya and other infectious diseases such as
hepatitis A, B and C are present in Peru. Travelers in Peru should always consume
bottled beverages instead of potentially contaminated water. Avoid ice cubes. Fish,
shellfish, and vegetables should not be eaten unless well cooked, and all food should be
eaten while still hot. Peeled fruits are generally safe. Travelers to the jungle areas of
Peru should have up-to-date yellow fever vaccinations and malaria prophylaxis. There
are several clinics in the Lima area which have U.S.-trained personnel and up-to-date
medical equipment. Since U.S. medical insurance is not always valid outside the United
States, supplemental insurance is useful, especially to provide coverage for medical
evacuation.
Local Time, Business Hours, and Holidays Return to top
Lima is situated directly south of New York and is in the Eastern Standard time zone
(UTC minus 5), but Peru does not follow daylight savings time. Dates are written starting
with the day of the month, followed by the month and finishing with the year.
Business hours in Peru are generally from 9:00 a.m. to 6:00 p.m. Breakfast meetings are
becoming more common, and business lunches are normally scheduled between the
hours of 1:00 to 3:30 p.m. Some shops and businesses operate from 10:00 a.m. to 1:00
p.m. and from 4:00 p.m. to 8:00 p.m., although continuous operation is increasingly
common. Business offices, excluding banks, are closed on Saturdays. In the provinces,
business hours are usually from 9:00 a.m. to 1:00 p.m. and from 4:00 p.m. to 7:00 p.m.
“Peruvian time” refers to the fact that it is acceptable to arrive a half an hour late for
social functions. However, punctuality is generally expected for business visitors for
social and business functions.
Upcoming Peruvian official holidays are:
Saints Peter and Paul J une 29, 2015
Independence Day J uly 28-29, 2015
Saint Rose of Lima August 30, 2015
Battle of Angamos October 8, 2015
All Saints’ Day November 1, 2015
Immaculate Conception December 8, 2015
Christmas Day December 25, 2015
New Year’s Day J anuary 1, 2016
Holy Thursday March 24, 2016
Good Friday March 26, 2016
Labor Day May 1, 2016
The U.S. Embassy is closed on these holidays and the following U.S. holidays:
Independence Day J uly 3, 2015
Labor Day September 7, 2015
Columbus Day October 12, 2015
Veterans Day November 11, 2015
Thanksgiving November 26, 2015
Martin Luther King Day J anuary 18, 2016
President’s Day February 15, 2016
Memorial Day May 30, 2016
Temporary Entry of Materials and Personal Belongings Return to top
Goods for registered trade fairs may temporarily enter Peru by paying a bond, but
without paying duties, and following the normal documentation requirements mentioned
in Chapter 5, Section “Import Requirements and Documentation.” In addition to normal
passenger baggage, a cellular phone (and its accessories) and a laptop are allowed
without paying duties.
To access Peruvian customs information in English, refer to:http://www.sunat.gob.pe/customsinformation/index.html
Customs Guide for Travelers:http://www.sunat.gob.pe/customsinformation/passengerinformation/index.html
Customs Baggage Declaration Form, with the list of items that travelers can bring duty-
free:http://www.sunat.gob.pe/orientacionaduanera/viajeros/formatos/DDJ J -Ingles.pdf
Web Resources Return to top
U.S. Department of State’s Travel Website:http://travel.state.gov/
U.S. Department of State’s Country Specific Information for Peru:http://travel.state.gov/content/passports/english/country/peru.html
U.S. Department of State’s Consular Information Sheet for Peru:http://travel.state.gov/content/passports/english/country/peru.html
U.S. Embassy in Lima:http://lima.usembassy.gov/
U.S. Department of State’s Smart Traveler Enrollment Program (STEP):http://travel.state.gov/content/passports/english/go/step.html/
Embassy of Peru in Washington D.C.:http://www.embassyofperu.org/
U.S. Embassy in Lima, Lost and Stolen Passports:http://lima.usembassy.gov/lostpass.html/
U.S. Department of State, Visas:http://travel.state.gov/content/visas/english.html
U.S. Embassy in Lima, Visas:http://lima.usembassy.gov/visas.html/
Peruvian Customs Information in English:http://www.sunat.gob.pe/customsinformation/index.html
Return to table of contents
Return to table of contents
Chapter 9: Contacts, Market Research and Trade Events
• Contacts
• Market Research
• Trade Events
Contacts Return to top
U.S. Government
U.S. Department of Commerce (U.S. Embassy Lima, Peru)
U.S. Commercial Service Lima
3230 Lima Place
Washington, DC 20521
Ricardo J . Peláez, Commercial Counselor
Rachel Kreissl, Commercial Officer
Cesar J ochamowitz, Senior Commercial Specialist
Flora Muroi, Commercial Specialist
Gustavo Romero, Commercial Specialist
J orge Prado, Commercial Specialist
Tel.: (511) 618-2442, 434-3040 Fax: (511) 434-3041
E-mail: [email protected]
Website:http://export.gov/peru/
Trade Information Center in Washington: 1-800-USA-TRADE
www.ita.doc.gov/td/tic/
U.S. Department of Commerce (Washington, D.C.)
14th & Constitution Avenue, N.W. Room Nr. C-300
Washington, D.C. 20230
Matthew Gaisford, Peru Desk Officer
Email: [email protected]
Tel.: (202) 482-0052 Fax: (202) 482-1972
Website:http://www.commerce.gov/
U.S. Department of State (U.S. Embassy Lima, Peru)
Unit 3230
DPO AA 34031 - USA
Ambassador Brian A. Nichols
Mark Cullinane, Economic Counselor
Ernest Abisellan, Deputy Economic Counselor
Benjamin Yates, Economic Officer
Esteban Sandoval, Economic Specialist
Tel.: (511) 618-2410
Website:http://lima.usembassy.gov/econ.html
U.S. Department of State (Washington, D.C.)
2201 C Street N.W., Room 4915.
Washington, D.C. 20520
Shane Hough, Peru Desk Officer
Tel.: (202) 647-4177
Email: [email protected]
Website:http://www.state.gov
U.S Department of Agriculture/ Foreign Agricultural Service (FAS)
(U.S. Embassy Lima, Peru)
Unit 3230, Box 381
DPO AA 34031
Tel: (511) 618-2491, 434-3042 ? Fax: (511) 434-3043
Casey Bean, Regional Agricultural Counselor
Mariano J . Beillard, Regional Agricultural Attaché
Gaspar Nolte, Senior Agricultural Specialist
Alvaro Loza, Agricultural Marketing Specialist
Email: [email protected]
Websites:http://www.usda.gov andhttp://www.fas.usda.gov
Animal and Plant Health Inspection Service (APHIS)
Tel.: (511) 434-4202 Fax: (511) 434-0958
George “Andy” Ball, Senior Attaché for Chile, Ecuador, and Peru (resident in Lima)
Gladys Solano, APHIS Program Specialist
Email: [email protected]
Tel: (511) 434-4202 ? Fax: (511) 434-0958
Website:http://www.aphis.usda.gov
U.S. Department of Agriculture
1401 Independence Avenue, S.W. - MS 1071
Washington, D.C. 20250
Lisa Anderson, Western Hemisphere Area Director, Office of Foreign Service Operations
Email: [email protected]
Tel: (202) 720-3221 ? Fax: (202) 720-5183
Website:http://www.usda.gov andhttp://www.fas.usda.gov
U.S. Department of Agriculture/ Foreign Agricultural Service
Trade Assistance and Promotion Office
Tel: (202) 720-7420
Fax: (703) 875-4009
Export-Import Bank of the United States (Ex-Im Bank)
811 Vermont Avenue, N.W.
Washington D.C. 20571
Tel.: Toll Free (800) 565-EXIM (3946), Business Development (202) 565-3900
Fax: (202) 565-3931
Email: [email protected]
Website:http://www.exim.gov
Xiomara Creque, Acting Regional Director-Americas
Email: [email protected]
Tel.: (202) 565-3477 Fax: (202) 565-3931
Overseas Private Investment Corporation (OPIC)
1100 New York Avenue, N.W.
Washington, D.C. 20527
Tel.: InfoLine: (202) 336-8799 Fax: (202) 408-8959
Email: [email protected]
Website:http://www.opic.gov/
U.S. Trade and Development Agency (TDA)
1000 Wilson Boulevard, Suite 1600
Arlington, VA 22209-3901
Tel.: (703) 875-4357 Fax: (703) 875-4009
Email: [email protected]
Website:http://www.tda.gov
Isabel Sepulveda, Country Manager, Latin America and the Caribbean
Government of Peru
Presidencia del Consejo de Ministros
(Presidency of the Council of Ministers)
J r. Carabaya cdra 1, Lima
Lima – 1, Peru
Tel.: (511) 219-7000, 219-7012 Fax: (511) 219-7015
Website:http://www.pcm.gob.pe
Pedro Cateriano, President of the Council of Ministers
Ministry of Agriculture and Irrigation
Av. La Universidad 200, La Molina
Lima 12, Peru
Tel.: (511) 613-5800 Fax: (511) 432-0990, 431-0109
Website:http://www.minag.gob.pe
J uan Manuel Benites, Minister of Agriculture
Ministry of Agriculture/ Servicio Nacional de Sanidad Agraria (SENASA)
(Equivalent to APHIS)
Av. La Molina 1915, La Molina
Lima – 12, Peru
Tel.: (511) 313-3300, ext. 1800/1801 ? Fax: (511) 313-3315
Website:http://www.senasa.gob.pe
J orge Barrenechea, Director General
Ministerio de Comercio Exterior y Turismo
(Ministry of Foreign Trade and Tourism)
Calle Uno Oeste s/n Piso 17, Urb. Corpac, San Isidro
Lima 27, Peru
Tel.: (511) 513-6100 Fax: (511) 224-3362
Website:http://www.mincetur.gob.pe
Magali Silva, Minister
Ministerio de Economia y Finanzas
(Ministry of Economy and Finance)
J r. J unin 319, Piso 4
Lima 1, Peru
Tel.: (511) 311-5930 Fax: (511) 311-9906
Website:http://www.mef.gob.pe
Alonso Segura, Minister
Ministerio de Energia y Minas
(Ministry of Energy and Mines)
Av. Las Artes 260
San Borja
Lima 41, Peru
Tel.: (511) 411-1100 Fax: (511) 224-4441
Website:http://www.minem.gob.pe
Rosa Maria Ortiz, Minister
Ministerio del Ambiente
(Ministry of the Environment)
Av. J avier Prado Oeste 1140, San Isidro
Lima 27, Peru
Tel.: (511) 611-6000
Fax: (511) 611-6000 Anx 1634
Website:http://www.minam.gob.pe
Manuel Pulgar-Vidal, Minister
Ministerio de la Producción
(Ministry of Production)
Calle Uno Oeste s/n, Piso 7
Urb. Corpac, San Isidro
Lima 27, Peru
Tel.: (511) 616-2222 Fax: (511) 616-2200 x705
Website:http://www.produce.gob.pe
Piero Ghezzi Solis, Minister
Ministerio del Interior
(Ministry of the Interior)
Plaza 30 de Agosto s/n - Piso 4, San Isidro
Lima 27, Peru
Tel.: (511) 225-0202 Fax: 224-2405
Website:http://www.mininter.gob.pe
J ose Luis Perez, Minister
Ministerio de Relaciones Exteriores
(Ministry of Foreign Affairs)
Palacio Torre Tagle, Ucayali 363
Lima 1, Peru
Tel.: (511) 623-2402 Fax: (511) 623-2410
Website:http://www.rree.gob.pe
Ana María Sánchez, Minister
Ministerio de Salud
(Ministry of Health)
Av. Salaverry Cdra. 8, Piso 4
Lima 1, Peru
Tel.: (511) 315-6649 Fax: (511) 431-0093
Website:http://www.minsa.gob.pe
Aníbal Velásquez, Minister
Dirección General de Salud Ambiental (DIGESA)
Las Amapolas 350, Urb. San Eugenio, Lince
Lima 14, Peru
Tel.: (511) 442-8353 Fax: (511) 422-6404
Website:http://www.digesa.sld.pe
Monica Saavedra, Director General
Ministerio de Transportes y Comunicaciones
(Ministry of Transport and Communications)
Calle Zorritos 1301
Lima 1, Peru
Tel.: (511) 615-7603 Fax: (511) 615-7578
Website:http://www.mtc.gob.pe
J osé Gallardo Ku, Minister
Ministerio de Vivienda, Construcción y Saneamiento
(Ministry of Housing, Construction and Sanitation)
Av. Paseo de la Republica 3661, San Isidro
Lima – 27, Peru
Tel.: (511) 211-7930, 211-7934 Fax: (511) 441-7761
Website:http://www.vivienda.gob.pe
Milton Von Hesse, Minister
ProInversión
(Private Investment Promotion Agency)
Av. Paseo de la Republica 3661, Piso 9
Lima – 27, Peru
Tel.: (511) 612-1200 Fax: (511) 221-2941, 221-2942
Website:http://www.proinversion.gob.pe/english
Carlos Herrera, Executive Director
Instituto Nacional de Defensa de la Competencia y de la Protección de la Propiedad
Intelectual (INDECOPI)
(National Institute for the Defense of Competition and Protection of Intellectual Property)
La Prosa 138, San Borja
Lima – 41, Peru
Tel.: (511) 224-7800 / (511) 224 7777
Fax: (511) 224-0347 / (511) 224 7800 ext. 1715, Atención al Ciudadano
Website:http://www.indecopi.gob.pe
Hebert Tassano, President
Dirección General de Innovación, Transferencia Tecnológica y Servicios Empresariales
Calle Uno Oeste 060, Urb. Corpac, San Isidro
Tel: 616-2222 (x2484)
E-mail: [email protected]
Website:http://www.crecemype.pe
Alejandro Bernaola, Officer-in-Charge
Organismo Supervisor de la Inversión en Energía y Minería – OSINERGMIN
(Supervising Agency for Investment in Energy and Mining)
Bernardo Monteagudo 222, Magdalena
Lima – 17, Peru
Tel.: (511) 219-3400, 219-3410, 219-3411 Fax: (511) 264-0450 x.350
E-mail: [email protected]
Website:http://www.osinerg.gob.pe
J esús Tamayo, President
Organismo Supervisor de la Inversión en Infraestructura de Transporte de Uso Público –
OSITRAN
(Supervising Agency for Investment in Public Use Transport Infrastructure)
Av. Republica de Panama 3659, San Isidro
Lima – 27, Peru
Tel.: (511) 440-5115 Fax: (511) 421-4739
E-mail: [email protected]
Website:http://www.ositran.gob.pe
Patricia Benavente, President
Organismo Supervisor de la Inversión Privada en Telecomunicaciones – OSIPTEL
(Supervising Agency for Private Investment in Telecommunications)
La Prosa 136 , San Borja
Lima – 41, Peru
Tel.: (511) 225-1313, 225-2145 Fax: (511) 475-1816
Website:http://www.osiptel.gob.pe
Ruiz Gonzalo, President
Superintendencia Nacional de Servicios de Saneamiento - SUNASS
(National Superintendence of Sanitation Services)
Av. Bernardo Monteagudo 210 – 216 Magdalena del Mar
Lima – 17, Peru
Tel.: (511) 614-3180 Fax: (511) 614-3140
Website:http://www.sunass.gob.pe
Fernando Momiy Hada, President
Private Sector Associations
American Chamber of Commerce of Peru (AmCham)
Av. Victor Andres Belaunde 177, San Isidro
Lima – 27, Peru
Tel.: (511) 705-8000 Fax: (511) 705-8026
E-mail: [email protected]
Website:http://www.amcham.org.pe
Federico Cuneo, President
Aldo Defilippi, Executive Director
Confederación Nacional de Instituciones Empresariales (CONFIEP)
(Confederation of Private Enterprise Institutions)
Av. Victor Andres Belaunde 147, Edificio Real 3, Piso 4 San Isidro
Lima – 27, Peru
Tel.: (511) 415-2555 Fax: (511) 415-2566
E-mail: [email protected]
Website:http://www.confiep.org.pe
Martin Pérez, President
Gabriel Amaro, General Manager
Sociedad Nacional de Industrias (SNI)
(National Society of Industries)
Los Laureles 365, San Isidro
Lima – 27, Peru
Tel.: (511) 616-4444 Fax: (511) 442-2573 / (511) 442-2570 / (511) 616-4433
E-mail: [email protected]
Website:http://www.sni.org.pe
Andreas von Wedemeyer, President
Sociedad Nacional de Minería, Petróleo y Energía
(National Mining, Petroleum and Energy Society)
Francisco Graña 671, Magdalena del Mar
Lima - 17, Peru
Tel.: (511) 460-1600 Fax: (511) 460-1616
E-mail: [email protected]
Website:http://www.snmpe.org.pe
Eva Arias, President
Caterina Podesta, General Manager
Asociación de Exportadores (ADEX)
(Exporters' Association)
Av. J avier Prado Este 2875 San Borja
Lima – 41, Peru
Tel.: (511) 618-3333, 346-2530 Fax: (511) 346-1879
Email: [email protected], [email protected]
Website:http://www.adexperu.org.pe
Eduardo Amorrortu, President
Cámara de Comercio de Lima
(Lima Chamber of Commerce)
Gregorio Escobedo 398 J esus Maria
Lima – 11, Peru
Tel.: (511) 463-3434, 261-4400 Fax: (511) 463-9864
E-mail: [email protected]
Website:http://www.camaralima.org.pe
J orge von Wedemeyer Knigge, President
J osé Rosas Bernedo, General Manager
Cámara de Comercio de Arequipa
(Arequipa Chamber of Commerce)
Quesada 102-104, Yanahuara
Arequipa, Peru
Tel: (5154) 380-505
E-mail: [email protected]
Website:http://www.camara-arequipa.org.pe
Diego Muñoz-Najar, President
Cámara de Comercio y Producción de Lambayeque
(Lambayeque Chamber of Commerce)
Av. Balta 504-506
Chiclayo, Peru
Tel: (51-74) 23-8081, Fax: (51-74) 23-3040
E-mail: [email protected]
Website:http://www.cclam.org.pe
Otto Zoeger Navarro, President
Cámara Peruana de la Construcción (CAPECO)
(Chamber of Engineering and Construction Firms)
Víctor Andrés Belaúnde 147, Edificio Real 3, Of. 402,
San Isidro, Lima 27, Peru
Tel.: (511) 230-2700 / Fax: (511) 441-7028
E-mail: [email protected]
Website:http://www.capeco.org
Carlos Vegas Quintana, General Manager
Asociación de Bancos
(Association of Banks)
Calle 41 #975, Urb. Corpac San Isidro
Lima – 27, Peru
Tel.: Direct: (511) 612-3303 / Switchboard: (511) 612-3333
Fax: (511) 612-3300
Email: [email protected]
Website:http://www.asbanc.com.pe
Oscar Rivera, President
J ulio Figueroa, General Manager
Asociación de Industriales Lácteos
(Dairy Product Producers Association)
Sociedad Nacional de Industrias
Los Laureles 365 San Isidro
Lima 27 - Peru
Tel.: (511) 616 4444, ext. 165 ? Fax: (511) 441-1639
E-mail: [email protected]
Rolando Piskulich, President
Asociación Peruana de Porcicultores
(Pork Producers Association)
Pomalca 327 Urb. Centro Comercial Monterrico, Surco
Lima – 33, Peru
Tel.: (511) 436-3729, 436-4168 ? Fax: (511) 436-3729
E-mail: [email protected]
Website:http://www.asoporci.org.pe
Guillermo Vidal, President
Ana Maria Trelles, General Manager
Asociación Peruana de Avicultura
(Poultry Producers Association)
Esmeralda 255 Chacarilla del Estanque
Lima – 33, Peru
Tel.: (511) 372-1551, 372-1540 ? Fax: (511) 372-1538
E-mail: [email protected]
Website:http://www.apa.org.pe
J ose Vera, President
Mario Berrocal, General Manager
Sociedad de Comercio Exterior del Perú (COMEXPERU)
Bartolomé Herrera 254, Miraflores
Lima-18, Peru
Tel (511) 625-7700 Fax: (511) 625-7701
E-mail: [email protected]
Website:http://www.comexperu.org.pe
Guillermo Ferreyros, President
J essica Luna, General Manager
Fongal Lima
(Dairy Producers Association)
Pumacahua No. 877, Of. 306 J esus Maria
Lima – 11, Peru
Tel: (511) 431-0549 ? Fax: (511) 423-4642
E-mail: [email protected]
J avier Valera, President
Comité de Molinos de Trigo
(Wheat Millers Committee)
Los Laureles 365 San Isidro
Lima – 27, Peru
Tel.: (511) 616 4444, ext. 131 and (511) 442-2460 ? Fax: (511) 442-4351
E-mail: [email protected]
Alejandro Daly, President
Market Research Return to top
To view market research reports produced by the U.S. Commercial Service please go to
the following website:http://www.export.gov/mrktresearch/index.asp and click on
Country and Industry Market Reports.
Please note that these reports are only available to U.S. citizens and U.S. companies.
Registration to the site is required, and is free.
Trade Events Return to top
Please click on the link below for information on upcoming trade events.
http://www.export.gov/tradeevents/index.asp
http://export.gov/peru/tradeevents/perutradeevents/index.asp
Return to table of contents
Return to table of contents
Chapter 10: Guide to Our Services
SelectUSA:
SelectUSA was created by President Obama in J une 2011, through Executive Order
13577, as the U.S. government-wide program to promote and facilitate business
investment into the United States, including foreign direct investment (FDI) and
reshoring.
The program is housed within the Commerce Department and coordinates investment-
related resources across more than 20 federal agencies through the Interagency
Investment Working Group (IIWG).
SelectUSA provides services to two types of clients: investors and U.S. economic
development organizations at the state and local level. Services include:
Information Assistance:
•SelectUSA provides information to investors on the benefits of establishing operations
in the United States, as well as the information needed to move investments forward.
Investors can access facts, data and local contacts for the U.S. market.
•SelectUSA also works closely with state, local and regional economic developers to
provide counseling on strategy, best practices, and on-the-ground intelligence from the
Foreign Commercial Service network across more than 70 foreign markets.
Ombudsman Services: SelectUSA coordinates federal agencies to address investor
concerns relating to a wide range of federal regulatory issues – helping them to navigate
an unfamiliar system.
Investment Advocacy: U.S. state and local governments often find themselves
competing with a foreign location for a project. SelectUSA can coordinate with senior
U.S. government officials to advocate to the investor to bring those jobs to the United
States.
Promotional Platform: SelectUSA brings the power of the “USA” brand to high-profile
events, such as the upcoming 2015 Investment Summit, to attract investors to learn
about our nation’s investment opportunities. SelectUSA organizes international Road
Shows and missions to trade fairs, while also offering tailored on-the-ground assistance
in more than 70 markets.
Note: SelectUSA exercises strict geographic neutrality, and represents the entire United
States. The program does not promote one U.S. location over another.
For more information on SelectUSA and services provided for investors and economic
development organizations, please click on the following link:http://selectusa.commerce.gov/
National Export Initiative:
The President’s National Export Initiative/NEXT marshals Federal agencies to provide
customer service-driven services and actionable information resources that ensure
American businesses are able to capitalize on expanded opportunities to sell their goods
and services abroad.
The U.S. Commercial Service offers customized solutions to help U.S. exporters,
particularly small and medium sized businesses, successfully expand exports to new
markets. Our global network of trade specialists will work one-on-one with you through
every step of the exporting process, helping you to:
• Target the best markets with our world-class research
• Promote your products and services to qualified buyers
• Meet the best distributors and agents for your products and services
• Overcome potential challenges or trade barriers
• Gain access to the full range of U.S. government trade promotion agencies and
their services, including export training and potential trade financing sources
To learn more about the Federal Government’s trade promotion resources for new and
experienced exporters, please click on the following link: www.export.gov
For more information on the services the U.S. Commercial Service offers to U.S.
exporters, please click on the following linkhttp://export.gov/peru/servicesforu.s.companies/index.asp
U.S. exporters seeking general export information/assistance or country-specific
commercial information can also contact (800) USA-TRADE.
To the best of our knowledge, the information contained in this report is accurate as of
the date published. However, The Department of Commerce does not take
responsibility for actions readers may take based on the information contained herein.
Readers should always conduct their own due diligence before entering into business
ventures or other commercial arrangements. The Department of Commerce can assist
companies in these endeavors.
Return to table of contents
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