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Peru: Clothing imports entered under National Customs Tariff Chapters 61 to 63 are not subject to definitive safeguard measures

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In brief

On 1 March 2023, a multisectoral committee composed of government ministries decreed that definitive safeguard measures should not be applied to imports of clothing products entered under chapters 61, 62 and 63 of the National Customs Tariff.

On 1 March 2023, a multisectoral committee issued Supreme Decree No. 008-2021-MINCETUR (“Decree“), which provides for the non-application of definitive safeguard measures on imports of clothing entered under chapters 61, 62 and 63 of the National Customs Tariff.  The multisectoral committee is composed of the Ministry of Economy and Finance, the Ministry of Production and the Ministry of Foreign Trade and Tourism (“Multisectoral Committee“) and is the final instance authority for safeguard investigations.

In depth

The Multisectoral Committee adopted its decision after concluding that the Report1 issued by the Commission on Dumping, Subsidies and Elimination of Non-Tariff Trade Barriers of INDECOPI (“Commission“) did not comply with the requirements of the World Trade Organization Agreement on Safeguards or with Supreme Decree No. 020-98-ITINCI for the application of definitive safeguard measures.

The Multisectoral Committee found that the Commission had not taken into consideration the breadth and heterogeneity of the investigated products, the existence of a group of tariff subheadings that did not show an increase in the amount of imported product or other conditions that could cause serious injury to national production, or the lack of such serious injury.

This pronouncement sets a precedent in safeguard matters. The methodology to initiate an investigation should not be arbitrary and it should specifically identify that the increased amount of investigated product in the local market has directly affected the local industry.

We hope that this information will be of relevance to you and your company.

Estudio Echecopar represented several importing companies in this investigation, participating directly in the oral report where it was stated that the application of this measure was contrary to trade and national and international standards (WTO and Andean Community).

Click here to access the Spanish version.

1 Report No. 042-2022/CDB-INDECOPI

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Author

A specialist in foreign trade and customs, Gonzalo has a broad experience in advisory, preventive audits and litigation related with sophisticated trade operations, trade facilitation and investment. His professional expertise includes legal advisory provided to either domestic or international enterprises, specifically related to import and export regimes, customs valuation, tariff classification, rules of origin, trade barriers (sanitary and phytosanitary measures, technical barriers to trade), investment and infrastructure, supply chain management, transport, Free Trade Agreements (FTAs), Regional and Plurilateral Agreements (CAN, MERCOSUR, among others) compliance and WTO law.
Estudio Echecopar is a member firm of Baker & McKenzie International, a Swiss Verein

Author

Alvaro Gutierrez is a partner in Estudio Echecopar. He acted as secretary of the Commission of the Andean Community at the General Secretariat of the Andean Community and the Cartagena Agreement Board. Alvaro was part of the Andean Community's team that negotiated an association agreement with the EU's Intellectual Property Chapter and for the Chapter on Intellectual Property in ALCA (America's Free Trade). He was adviser to the vice minister on foreign trade in negotiations for the free trade agreement with the US. Alvaro is also a former vice president of the Peruvian Copyright Office.
Estudio Echecopar is a member firm of Baker & McKenzie International, a Swiss Verein

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