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International Trade and Customs Newsletter – February 2020

INTERNATIONAL TRADE AND CUSTOMS NEWSLETTER

COMMENTS TO MOST IMPORTANT REGULATIONS

Operating procedure for access to tariff preferences, provided for in the Free Trade Agreement between the Republic of Peru and Australia, is approved.

By Superintendency Resolution No. 037-2020/SUNAT, published on February 11, 2020, the Specific Procedure “Application of Tariff Preferences under the Free Trade Agreement between the Republic of Peru and Australia” – DESPA-PE.01.36 (version 1) was approved.

The objective of this procedure is to establish guidelines for the import of goods with tariff preferences under the Free Trade Agreement between Peru and Australia whose text was published in full on February 10, 2020.

It should be noted that, in order to qualify for said tariff preferences, each and every one of the requirements of the Free Trade Agreement between Peru and Australia must be met, where the goods are found to be originating in Australia, negotiated and dispatched directly from Australia to Peru (subject to exceptions).

This regulation entered into force on February 11, 2020 when the Free Trade Agreement between Peru and Australia also entered into force.

INDECOPI provided for the initiation of an investigation into alleged dumping practices on imports of fabrics originating in the People’s Republic of China.

Through Resolution No. 010-2020/CDB-INDECOPI, published on February 6, 2020, provided, at the request of the Domestic Industry, for the initiation of an investigation procedure for alleged dumping practices on fabrics imports 100% polyester, raw, white or dyed, plain weave, with a width of less than 1.80 meters, weighing between 80 gr./sq.m and 200 gr./sq.m, originating in the People’s Republic of China.

The decision to initiate this procedure is based, on the one hand, in the fact that in INDECOPI’s opinion, there would be prima facie evidence of dumping practices in shipments to Peru of the aforementioned fabrics originating in China, during the period analyzed (January – December 2019).

On the other hand, it has been established that there would be prima facie evidence of a significant material injury to the Domestic Industry due to imports of said product originating in China from January 2016 to August 2019.

Interested parties may submit evidence or allegations within six (6) months after the publication of the Resolution subject to comment in the official gazette “El Peruano”. This term may be extended for a further 3 months.

INDECOPI provided for the initiation of review procedures for the expiration of anti-dumping/countervailing measures.

On February 6, 2020 and February 13, 2020, Resolutions No. 011-2020/CDB-INDECOPI and 013-2020/CDB-INDECOPI under which the Commission on Dumping, Subsidies and Elimination of Non-Tariff Trade Barriers of INDECOPI made the following provisions respectively:

  • To initiate the procedure for the examination of the definitive anti-dumping duties (Sunset Reviews) imposed by Resolutions No.116-2010/CFD-INDECOPI and 218-2016/CDB-INDECOPI, on imports of pure diesel (B100) and mixtures containing more than 50% biodiesel (B50) in their composition originating in the United States of America.

The reason for initiating this procedure, which was requested by one interested party, is the fact that prima facie evidence would have been found to infer that dumping is likely to continue or to recur, in the event that the anti-dumping duties currently in force are removed.

It should be noted that, pursuant to Resolution No. 011-2020/CBD-INDECOPI, the aforementioned anti-dumping duties will continue to apply for the duration of this investigation.

Interested parties may submit evidence or allegations within six (6) months after the publication of said Resolution in the official gazette “El Peruano”. This term may be extended for a further 3 months.

  • To initiate the procedure for the examination of the definitive countervailing duties (Sunset Reviews) imposed by Resolutions No. 151-2010/CFD-INDECOPI and 012-2017/CDB-INDECOPI, on imports of pure biodiesel (B100) and mixtures containing more than 50% biodiesel (B50) in their composition originating in the United States of America.

The reason for initiating this procedure, which was requested by one interested party, is that: (i) it would have been noted that the regulations governing the subsidy of biodiesel produced in the United States have recently been renewed; and (ii) the fact that prima facie evidence would have been found to infer that damage to the Domestic Industry is likely to continue or to recur, in the event that the countervailing duties currently in force are removed.

It should be noted that, pursuant to the Resolution No. 013-2020 / CDB-INDECOPI, the countervailing duties imposed will continue to apply for the duration of this investigation.

Interested parties may submit evidence or allegations within six (6) months after the publication of said Resolution in the official gazette “El Peruano”. This term may be extended for a further 3 months.

OTHER CURRENT NEWS

The scope of the delegation granted to the Chinchana Chamber of Commerce, Industry, Tourism, Services and Agriculture is extended. On February 21, 2020, Ministerial Resolution No. 049-2020-MINCETUR was published, which extended the scope of delegation granted to the Chinchana Chamber of Commerce, Industry, Tourism, Services and Agriculture (“the Chamber”) to issue certificates of origin to goods produced throughout the national territory. Previously, the aforementioned entity only had the power to issue Certificates of Origin to exporting companies in the department of Ica. The Chamber itself requested the Ministry of Foreign Trade and Tourism to be granted the power to issue Certificates of Origin at the national level. This request was accepted by the Directorate of the Origin Unit of the General Directorate for Foreign Trade Facilitation of the Vice Ministry of Foreign Trade. It was deemed feasible to grant the extension of the scope of delegation of the power to issue Certificates of Origin to the Chamber. Accordingly, the Deputy Minister for Foreign Trade has signed the addendum to the Agreement on Delegation of Authority signed with the Chamber with a view to facilitating the extension requested by the Chamber.

RECOMMENDATION 

Implementation of mechanisms to reduce customs fines

On January 1, 2020, the new Penalties Table applicable to the infringements provided for in the General Customs Law, approved by Supreme Decree No. 418-2019-EF, entered into force. This, in order to adapt the sanctioning framework in accordance with the General Customs Law, as amended by Legislative Decree No. 1433.  In this context, it is important to duly take into account that the infringements referred in said Penalties Table, which have been committed from January 1, 2020 onwards, do not yet have a mechanism (Standard Scale System) reducing onerous fines such as, for example, the fine for incorrect declaration of the customs value amounting to twice the amount of taxes not paid. With this, currently, and under this example, the self-liquidations generated by importers would not be able to access the benefit of 95% discount for voluntary payment.  On the other hand, and since the Standard Scale System applicable to the previous Penalties Table (approved by Resolution of the Deputy National Superintendency of Strategic Development No. 002-2015-SUNAT/500000) has not, to date, been repealed, Customs has accepted its application in respect of infringements committed until December 31, 2019.