Free Trade Agreement between the Republic of Peru and Australia is ratified
By Executive Order 009-2019-RE, the Free Trade Agreement between the Republic of Peru and Australia was ratified, which was signed on February 12, 2018 in Canberra, Australia.
According to the provisions of this regulation, the Ministry of Foreign Affairs will proceed to publish the effective date of this Free Trade Agreement. The texts may be reviewed at:
According to information published by the Ministry of Foreign Trade and Tourism (MINCETUR), when this Agreement becomes effective, 96% of the tariff universe may be exported to Australia with a tariff of 0%; and, in the case of the imports, 93.3% of the tariff universe may be imported from Australia with a tariff of 0%.
Investigations are ordered to be initiated due to alleged dumping practices in the imports of poplin fabrics originating from the People’s Republic of China
Resolution 012-2019/CDB-INDECOPI, published on February 15, 2019, ordered, at the request of the National Production Branch, to initiate an investigation procedure due to alleged dumping practices in the imports of poplin fabrics originating from the People’s Republic of China.
According to this Resolution, these fabrics are defined as follows: white or bleached greige fabric, mix of polyester with cotton, where polyester is predominant by weight (more than 50%), of taffeta-type weave, with a width narrower than 1.80 meters, which unit weight ranges between 90 g/m2 and 200 g/m2.
The decision to initiate this procedure is based, on one hand, on the fact that there would be reasonable signs of the existence of dumping practices in shipments to Peru of poplin fabrics from China in the analyzed period (August 2017 – July 2018).
On the other hand, it has been established that there would be evidence of the existence of threat of foreseeable and imminent damage to the National Production Branch caused by the imports of such native product from the United States in the period of February 2015 to July 2018.
The interested parties may submit evidence or allegations within six (6) months after the publication of this Resolution in El Peruano Official Gazette. This term may be extended for three (3) additional months.
Resolutions that ordered: (i) to maintain the effectiveness of anti-dumping rights on imports of chalas and sandals originating from the People’s Republic of China; and (ii) to modify the application method of these antidumping rights, are confirmed
On February 14, 2019, Resolutions 0281-2018/SDC-INDECOPI and 0282-2018/SDC-INDECOPI were published, where the Free Competition Defense Division of the Court for Defense of Free Competition and Intellectual Property of the National Institute for the Defense of Free Competition and Intellectual Property (INDECOPI) confirmed:
(i) By Resolution 047-2016/CDB-INDECOPI, issued by the Commission for Dumping, Subsidies and Elimination of Non-Tariff Commercial Barriers of this institution, it was decided to maintain for a period of three (3) additional years the effectiveness of anti-dumping rights imposed on the imports of chalas and sandals with the upper portion made of rubber and plastic and soles made of different materials, which originate from the People’s Republic of China.
The abovementioned anti-dumping rights were imposed through Resolution 001-2000/CDS-INDECOPI, which application has been extended by the Commission for Dumping, Subsidies and Elimination of Non-Tariff Commercial Barriers of INDECOPI.
(ii) By Resolution 113-2016/CDB-INDECOPI, issued by the Commission for Dumping, Subsidies and Elimination of Non-Tariff Commercial Barriers of this institution, it was decided to modify the application method of definitive anti-dumping rights imposed by Resolution 001-2000/CDS-INDECOPI, on the imports of chalas and sandals with the upper portion made of rubber or plastic and soles made of different materials, which originate from the People’s Republic of China.
In accordance thereto, the exclusion has been confirmed of the application scope of anti-dumping rights to those imports of chalas and sandals with the upper portion made of rubber or plastic and soles made of different materials, which originate from the People’s Republic of China, which have import FOB prices higher than US$ 3.00 per pair in the case of chalas and US$ 3.10 per pair in the case of sandals.
Important precision is established surrounding the duly subscription to the standard scale system for the discounted payment of fines
On February 1, 2019, the Resolution 00665-A-2019 issued by the Tax Court was published in El Peruano Official Gazette, where a binding criteria has been established, which is related to due compliance with requirements for subscription to the standard scale system for the discounted payment of fines, approved by the Resolution of the National Deputy Superintendency for Strategic Development 002-2015-SUNAT/500000.
According to this criteria, it is specified that for the purposes of having access to the standard scale system, it is necessary to provide proof, among other requirements, of the complete payment of the outstanding debt established by the offender or the Customs Authority, plus the interest generated until the payment date.
Pursuant to this resolution, that means that regardless of who has the obligation to pay the debt (importer or customs agent), it will be necessary to provide proof of the complete payment of said debt for the purposes of having access to the discounted payment of the fine according to the standard scale system.
The assumption analyzed in Resolution 00665-A-2019 is related to the incorrect report of the National Tariff Subheading (SPN) of imported products, which will require that, for the purposes that the customs agent can have access to the referred standard scale system: (i) the importer pays the omitted taxes plus default interest; and (ii) the customs agent pays (with the respective discount) the fine for assigning a SPN incorrectly, plus default interest.
On this basis, the subscription by the customs agent to the reduction of fines according to the standard scale system will depend on the fact that the importer had previously paid the total amount of the omitted taxes plus the pertinent default interest. Thus, should the importer refuse to proceed with this payment (for example, if the importer decides to challenge the debt) would not allow the subscription of the customs agent to this benefit.
Internal regulations Free Economic Zone and Tacna Free Zone for the are approved
On February 4, 2019, Ministerial Resolution 038-2019-MINCETUR was published, which approves the internal regulations for the Free Economic Zone and Tacna Free Zone.
The complete text of these regulations can be found in the following link of the website of the Ministry of Foreign Trade and Tourism (MINCETUR): https://cdn.www.gob.pe/uploads/document/file/288754/RM_N__038-2019-MINCETUR.pdf
Based on the recurring legal advice that we provide different clients with in inspections conducted by the Customs Administration, we suggest taking into account the following aspects to face successfully this type of procedure:
(i) Review and know the scope of the inspection, i.e. customs tax declarations and/or specific operations that are to be reviewed within the controlled period.
(ii) Keep a documented register of all the acts performed within the framework of the inspection (certificates of delivery of documents, formal requirements notified in writing by the Customs Authority, etc.)
(iii) Be on the lookout for the terms granted by the Customs Authority to fulfill its requirements, and the need to issue requests for the extension of such terms in a timely manner.
(iv) Evaluate aspects related to the prescription of the power that the Customs Authority has, whether it is to determine taxes, apply fines and collect them.
It is very important to tend to and carry out an inspection in a proper manner to mitigate to a maximum degree eventual contingencies that may be determined by the Customs Authority and to have access to systems for reduction of fines that are applicable.
If you wish, you can contact the lawyers of the Foreign Trade and Customs department.
This bulletin contains the objective description of legal provisions and news related to foreign trade and customs matters. It does not contain the opinion of Rodrigo, Elías & Medrano Law Firm on the matter, thus it cannot be considered as a source of interpretation or response to consultations.
