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World Trade Organization WORLD TRADE G/SCM/N/95/PER G/SCM/N/123/PER ORGANIZATION 20 December 2012 (12-6995) Committee on Subsidies and Original: Spanish Countervailing Measures SUBSIDIES New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing Measures PERU The following communication, dated 10 December 2012, is being circulated at the request of the delegation of Peru. _______________ Peru hereby submits this new and full notification in accordance with its obligations under Article XVI:1 of the General Agreement on Tariffs and Trade 1994 ("GATT 1994") and Article 25 of the Agreement on Subsidies and Countervailing Measures ("SCM Agreement"). The information in this notification is provided for purposes of transparency. It should be noted that, pursuant to Article 25.7 of the SCM Agreement, notification of these subsidies does not prejudge their legal status, effects or nature under the GATT 1994 or the SCM Agreement. G/SCM/N/95/PER G/SCM/N/123/PER Page 2 I. CETICOS OF ILO, MATARANI, TACNA AND PAITA 1. Title of the subsidy programme, if relevant, or brief description or identification of the subsidy. Centres for export, processing, industry, marketing and services (CETICOS) of Ilo, Matarani, Tacna and Paita. 2. Period covered by the notification. The period to be covered by the notification should be the most recently completed calendar or fiscal year. In the latter case, the start and end dates of the fiscal year should be specified. 2001-2004 (CETICOS of Ilo, Matarani and Paita) 2001 (CETICOS of Tacna) 3. Policy objective and/or purpose of the subsidy. To develop the southern (Ilo, Matarani and Tacna) and northern (Paita) zones of Peru by promoting private investment in infrastructure for goods production and services activities. 4. Background and authority for the subsidy (including identification of the legislation under which it is granted). Legislative Decree No. 842 (as amended by Legislative Decree No. 865) declaring the development of the southern zone of Peru to be of priority interest and creating Centres for export, processing, industry, marketing and services (CETICOS) in Ilo, Matarani and Tacna; Legislative Decree No. 864 declaring the development of the northern zone of Peru to be of priority interest and creating the Centre for export, processing, industry, marketing and services (CETICOS) in Paita; Law No. 26831 amending certain Articles of Legislative Decrees Nos. 842 and 864 on tax exemption for enterprises established in the Centres for export, processing, industry, marketing and services (CETICOS) of Ilo, Matarani, Paita and Tacna; Supreme Decree No. 023-96-ITINCI (and amendments thereto) approving the Regulation governing the Centres for export, processing, industry, marketing and services (CETICOS), as amended by Supreme Decree No. 005/97/ITINCI; Supreme Decree No. 112-97-EF (and amendments thereto) approving the single harmonized text of the rules with force of law issued in relation to CETICOS. 5. Form of the subsidy (i.e., grant, loan, tax concession, etc.). Tax waivers/exemptions. G/SCM/N/95/PER G/SCM/N/123/PER Page 3 6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how determined). Any Peruvian or foreign natural or legal person with the status of a user authorized to engage in the permitted activities who enters into a contract for the assignment for consideration of physical space (land) with the general management of the CETICOS or who acquires such property through a purchase-sale contract. 7. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount budgeted for that subsidy. Tax expenditure: General sales tax and selective consumption tax of 0% on used vehicles reconditioned or repaired in the CETICOS. 2001 2002 2003 2004 S/. thousand n/a n/a n/a 213,545 US$ thousand - - - 62,550 Exchange rate - - - 3.414 n/a: Information not available. Source: Multiannual macroeconomic framework 2004-2006, Ministry of the Economy and Finance. Prepared by the Ministry of Foreign Trade and Tourism. 8. Duration of the subsidy and/or any other time-limits attached to it, including date of inception/commencement. Until 31 December 2012. 9. Statistical data permitting an assessment of the trade effects of the subsidy. Information available for: Tax expenditure: General sales tax and selective consumption tax of 0% on used vehicles reconditioned or repaired in the CETICOS 2001 2002 2003 2004 % of GDP n/a n/a n/a 0.09 n/a: Information not available. Source: Multiannual macroeconomic framework 2004-2006, Ministry of the Economy and Finance. Prepared by the Ministry of Foreign Trade and Tourism. II. TACNA FREE ZONE AND TRADE ZONE - ZOFRATACNA 1. Title of the subsidy programme, if relevant, or brief description or identification of the subsidy. Tacna Free Zone and Trade Zone (created in March 2002), established on the premises of the Tacna CETICOS. G/SCM/N/95/PER G/SCM/N/123/PER Page 4 2. Period covered by the notification. The period to be covered by the notification should be the most recently completed calendar or fiscal year. In the latter case, the start and end dates of the fiscal year should be specified. 2002-2004 3. Policy objective and/or purpose of the subsidy. To develop the southern zone of Peru (Tacna) by promoting private investment in infrastructure for goods production and services activities. 4. Background and authority for the subsidy (including identification of the legislation under which it is granted). Law No. 27688 governing the Tacna Free Zone and Trade Zone; Supreme Decree No. 011-2002-MINCETUR approving the Regulations implementing the Law governing the Tacna Free Zone and Trade Zone. 5. Form of the subsidy (i.e., grant, loan, tax concession, etc.). Tax waivers/exemptions. 6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how determined). Any Peruvian or foreign natural or legal person with the status of a user authorized to engage in the permitted activities who enters into a contract for the assignment for consideration of physical space with the general management of the ZOFRATACNA or who acquires such property through a purchase-sale contract. 7. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount budgeted for that subsidy. Information not available. 8. Duration of the subsidy and/or any other time-limits attached to it, including date of inception/commencement. Until 31 December 2042. 9. Statistical data permitting an assessment of the trade effects of the subsidy. Information not available. G/SCM/N/95/PER G/SCM/N/123/PER Page 5 III. PROMOTION OF THE AMAZON REGION 1. Title of the subsidy programme, if relevant, or brief description or identification of the subsidy. Promotion of investment in the Amazon region. 2. Period covered by the notification. The period to be covered by the notification should be the most recently completed calendar or fiscal year. In the latter case, the start and end dates of the fiscal year should be specified. 2001-2004 3. Policy objective and/or purpose of the subsidy. Promotion of the sustained and overall development of the Amazon region, establishing the conditions for public investment and the promotion of private investment. 4. Background and authority for the subsidy (including identification of the legislation under which it is granted). Law No. 27037 on the promotion of investment in the Amazon region; Supreme Decree No. 103-99-EF (and amendments thereto) approving the Implementing Regulations for the tax provisions contained in the Law on the promotion of investment in the Amazon region. 5. Form of the subsidy (i.e., grant, loan, tax concession, etc.). Tax waivers/exemptions and application of differentiated rates. 6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how determined). The programme applies solely to enterprises located in the Amazon region, i.e. in the Loreto, Madre de Dios, Ucayali, Amazonas and San Martín regions, as well as in the Amazonian provinces and districts of the Ayacucho, Cajamarca, Cuzco, Huánuco, Junín, Pasco, Puno, Huancavelica, La Libertad and Piura regions. G/SCM/N/95/PER G/SCM/N/123/PER Page 6 7. Subsidy per unit or, in cases where this is not possible, the total amount or the annual amount budgeted for that subsidy. Information available for: Tax expenditure for the "Amazon region" geographical area Description of tax benefit 2001 2002 2003 2004 Exemption from the general sales tax S/. thousand n/a n/a n/a 1,374,560 US$ thousand - - - 402,624 Differentiated income tax rates S/. thousand n/a n/a n/a 20,799 US$ thousand - - - 6,092 Exemption from the general sales tax and the S/. thousand n/a n/a n/a 239,095 selective consumption tax on the sale of fuel US$ thousand - - - 70,034 by oil companies to marketers or end consumers Exchange rate - - - 3.414 n/a: Information not available. Source: Multiannual macroeconomic framework 2004-2006, Ministry of the Economy and Finance. Prepared by the Ministry of Foreign Trade and Tourism. 8. Duration of the subsidy and/or any other time-limits attached to it, including date of inception/commencement. The tax benefits are applicable for a period of 50 (fifty) years as of their entry into effect (1 January 1999). 9. Statistical data permitting an assessment of the trade effects of the subsidy.
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