WORLD TRADE
ORGANIZATIONG/SG/N/1/PER/2/Suppl.1
3 November 2003
(03-5844)
Committee on Safeguards Original:  Spanish
NOTIFICATIONS OF LAWS, REGULATIONS AND ADMINISTRATIVE
PROCEDURES RELATING TO SAFEGUARDS
PERU
Supplement
The following communication, dated 21 October 2003, has been received from the Permanent
Mission of Peru.
_______________
Pursuant to the notification requirements of the Agreement on Safeguards and the Agreement
on Textiles and Clothing, the Permanent Mission of Peru hereby notifies Supreme Decree
No. 023-2003-MINCETUR of 9 October 2003, regulating "transitional safeguards under the rules and
commitments accepted by the Members of the World Trade Organization".
In this connection, it would be greatly appreciated if the Secretariat of the World Trade
Organization could circulate copies of this communication to the Members.
_______________G/SG/N/1/PER/2/Suppl.1
Page 2
MINCETUR
Regulations on transitional safeguards under the rules and commitments accepted by the
Members of the World Trade Organization.
SUPREME DECREE NO. 023-2003-MINCETUR
THE PRESIDENT OF THE REPUBLIC
CONSIDERING:
That by virtue of Legislative Decision No. 26407, published in the Official Journal
"El Peruano" on 18 December 1994 and in force since 1 January 1995, the Democratic Constituent
Congress approved the Agreement Establishing the World Trade Organization (WTO) and the
Multilateral Trade Agreements contained in the Final Act of the Uruguay Round, signed inMarrakesh, Morocco, on 15 April 1994;
That the Agreement on Textiles and Clothing of the World Trade Organization provides for a
transitional safeguard mechanism, which may be applied when it is demonstrated that a particular
product is being imported in such increased quantities as to cause or threaten to cause serious damageto the domestic industry producing like or directly competitive products, with the exception of those
that have been integrated into the GATT 1994;
That the Accession Protocol of the People's Republic of China provides for a transitional
safeguard mechanism which requires regulation;
That supplementary provisions exist, within the WTO framework, for the application of
transitional safeguards that require regulation;
That it is necessary to devise a special procedure for the application of transitional safeguard
measures, which should be framed in conformity with the rules and commitments accepted by the
Members of the World Trade Organization;
Pursuant to the provisions of Article 118(8) of Peru's Political Constitution;
DECREES:
Article 1 – Purpose
The purpose of this Supreme Decree is to establish regulations to govern transitional
safeguards on the basis of the rules and commitments accepted by the Members of the World Trade
Organization.
Article 2 – Investigating authority
The Dumping and Subsidies Commission of the National Institute for the Defence of
Competition and the Protection of Intellectual Property (INDECOPI) shall be the investigatingauthority responsible for preparing the technical report evaluating the existence of market
disorganization, injury or threat of serious injury, as the case may be, for the purpose of applying a
transitional safeguard.G/SG/N/1/PER/2/Suppl.1
Page 3
Article 3 – Competent authority for the application of safeguards
A Multisectoral Commission shall be established to apply the transitional safeguard measures
referred to in Article 1 of this Supreme Decree.  Its membership shall comprise the Minister of
Foreign Trade and Tourism, the Minister of the Economy and Finance and the Minister for theaffected sector.  Decisions taken by the Multisectoral Commission shall be made official by Supreme
Decree of the Ministry of Foreign Trade and Tour ism, endorsed by the Ministries that make up the
membership of the Multisectoral Commission.
Article 4 – Procedure
The procedure leading to a determination as to the application of a transitional safeguard
measure shall be initiated ex officio or following a request to the investigating authority by a party
having a legitimate interest.
Any necessary notifications or consultations in volving the competent organs of the WTO and
the Member or Members affected shall come under the responsibility of the Ministry of Foreign Tradeand Tourism.
Article 5 – Time-limits and requirements for application
The technical report prepared by the investigat ing authority shall be submitted immediately to
the members of the Multisectoral Commission referred to in Article 3 of this Decree, which shall
convene within a maximum of five (5) working days following receipt of the report.
Once convened, the Multisectoral Commission shall have a maximum of ten (10) working
days to evaluate the technical report and determine whether the volume of imports has increased insuch quantities as to cause or threaten to cause market disorganization or serious injury.  For the
purposes of such determination, objective factors shall be taken into account, such as the volume of
imports, the effect of such imports on prices for like or directly competitive products and their effect
on the domestic industry producing like or directly competitive products.
The Multisectoral Commission may extend the time-limit indicated in the preceding
paragraph, once only, for ten (10) additional working days, if more information is required by theinvestigating authority.
Article 6 – Provisional transitional safeguard
In critical circumstances where delay would cause damage to the domestic industry which it
would be difficult to repair, the investigating authority may recommend that the Multisectoral
Commission adopt a provisional transitional safeguard measure, based on a preliminary determination
that the imports have caused or threaten to cause market disorganization or serious injury to the
domestic industry.
In the event that the Multisectoral Commission decides to apply a provisional transitional
safeguard, the Ministry of Foreign Trade and Tourism shall submit to the Member or Members
affected and to the competent organs of the WTO the request for consultations and the corresponding
notification within the time limits established in the WTO rules.G/SG/N/1/PER/2/Suppl.1
Page 4
Article 7 – Publicity and transparency
Decisions concerning the imposition, modification or termination of measures shall be
published in the Official Journal "El Peruano".
The procedure governed by this regulation shal l provide the interested parties with adequate
opportunities to express their opinions and adduce evidence as to the appropriateness of the proposed
measure and whether it will serve the public interest.
FINAL PROVISIONS
One.  – Article 1 and the third final provision of Supreme Decree No. 020-98-ITINCI shall be
amended to exclude from the procedure established under that Supreme Decree the application of the
transitional safeguard referred to in Article 6 of the WTO Agreement on Textiles and Clothing.
Two.  – The transitional provisions of Supreme Decree No. 020-98-ITINCI are hereby
repealed.
Three. – The negotiations which take place during consultations held with WTO Members on
the basis of the application of this Supreme Decree shall be under the responsibility of the Ministry of
Foreign Trade and Tourism and the investigating authority.
Four.  – This Supreme Decree shall be endorsed by the Chairperson of the Council of
Ministers, the Minister of the Economy and Finance, the Minister of Foreign Trade and Tourism and
the Minister of Production.
Done at Government House, Lima, on the seve nth day of the month of October of the year
two thousand and three.
ALEJANDRO TOLEDO
Constitutional President of the Republic
BEATRIZ MERINO LUCERO
Chairperson of the Council of Ministers
JAIME QUIJANDRIA SALMÓN
Minister of the Economy and Finance
RAÚL DIEZ CANSECO TERRY
Minister of Foreign Trade and Tourism
JAVIER REATEGUI ROSSELLÓ
Minister of Production
__________