G/SCM/N/284/PER  
31 July 2015  
(15-3964)  Page: 1/11  
Committee on Subsidies and Countervailing Measures  Original: Spanish  
 
  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 24 July 2015, is being circulated at the request of the 
delegation of Peru. 
 
_______________ 
 
 
Peru hereby submits this new and full notification in accordance with 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 Agreem ent, notification of these subsidies does not 
prejudge their legal status, effects or nature under the GATT 1994 or the SCM Agreement.  G/SCM/N/284/PER 
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  I. CETICOS OF ILO, MATARANI, PAITA AND TUMBES 
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, Paita 
and Tumbes. 
 2. Period covered by the notification. The period to be covered by the notification 
should be the most recently completed cale ndar or fiscal year. In the latter case, 
the start and end dates of the fiscal year should be specified. 
2013-2014. 
 
In the period covered by the notification, the Tu mbes CETICOS was in the process of being set up 
and was not operational.  
3. Policy objective and/or purpose of the subsidy. 
To develop the southern (Ilo and Matarani) and northern (Paita and Tumbes) 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 serv ices (CETICOS) in Ilo, Matarani and Tacna; 
 
 Legislative Decree No. 864 declaring the developmen t 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 th e Centres for export, processing, industry, 
marketing and services (CETICOS) of Ilo, Matarani, Paita and Tacna; 
 
 Law No. 28569 granting autonomy to the CETICOS, as amended by Law No. 28854; 
 
 Law No. 29479 extending the exemption period for the CETICOS; 
  Law No. 29704 creating the Centre for export, processing, industry, marketing and services 
in the department of Tumbes (Tumbes CETICOS) and the amending regulations thereto; 
 
 Law No. 29710 strengthening the Centres for export, processing, industry, marketing 
and services (CETICOS); 
 
 Supreme Decree No. 023-96-ITINCI (and amendm ents 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 the CETICOS; 
 
 Supreme Decree No. 010-2013-PRODUCE: Negative list of goods falling under national tariff 
subheadings for which manufacturing and production activities may not be carried out within 
the CETICOS. 
 5. Form of the subsidy (i.e., grant, loan, tax concession, etc.). 
Tax waivers/exemptions. 
 G/SCM/N/284/PER 
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  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.1 
 
(Activity completed on 31 December 2014) 
 
  2013 2014 
S/. thousand 51,725 962 
US$ thousand 19,157 339 
Exchange rate 2.70 2.84 
 
 Source: Multiannual macroeconomic framework 2013-2015 and 2014-2016, Ministry of the Economy 
and Finance. 
Prepared by the Ministry of Fore ign Trade and Tourism (MINCETUR). 
 
8. Duration of the subsidy and/or any other time-limits attached to it, including date 
of inception/commencement. 
CETICOS of Ilo, Matarani and Paita: Until 31 December 2022. 
CETICOS of Tumbes: Until 31 December 2042.  
9. Statistical data permitting an assessm ent 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 
 
(Activity completed on 31 December 2014) 
 
 2013 2014 
% of GDP 0.01 0.00 
 
Source: Multiannual macroeconomic framework 2013-2015 and 2014-2016, Ministry of the Economy 
and Finance. 
Prepared by the Ministry of Fore ign Trade and Tourism (MINCETUR). 
 
                                               
1 Used vehicle repair and reconditioning activiti es in the CETICOS terminated on 31 December 2012. 
Such vehicles were, however, still imported in 2013 and 2014 when in possession of the necessary legal 
documentation. The tax expenditure ge nerated by the importation of these reconditioned vehicles subsequent 
to 2012 has been declining, as shown in the table. G/SCM/N/284/PER 
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  Exports and imports of the CETICOS 
 
 2013 2014 
 Exports Imports Exports Imports 
S/. thousand 65,221 75,452 89,887 136,231 
US$ thousand 24,156 27,945 39,355 59,646 
Exchange rate 2.70 2.70 2.84 2.84 
 
Source: The CETICOS of Ilo, Matarani and Paita an d the Tacna Free Zone and Trade Zone (ZOFRATACNA). 
Prepared by the Ministry of Fore ign Trade and Tourism (MINCETUR). 
 
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 Ma rch 2002), established on the premises of the 
Tacna CETICOS (created in 1996). 
 2. Period covered by the notification. The period to be covered by the notification 
should be the most recently completed cale ndar or fiscal year. In the latter case, 
the start and end dates of the fiscal year should be specified. 
2013-2014. 
 
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 Zo ne and Trade Zone and the amending 
regulations thereto;  
 Law No. 28599 amending Law No. 27688 governing the Tacna Free Zone and Trade Zone 
and the amending regulations thereto; 
 
 Law No. 29739 on the promotion of investment in  the Tacna Free Zone and Trade Zone and 
amending Law No. 27688 governing the Tacna Free Zone and Trade Zone and the amending 
regulations thereto;  
 Supreme Decree No. 002-2006-MINCETUR approving the single harmonized text of the 
Regulations implementing the Law governing the Tacna Free Zone and Trade Zone and the 
amending regulations thereto; 
 
 Supreme Decree No. 253-2013-EF approving the extension of the list of goods permitted to 
enter the Tacna Trade Zone.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.). 
Tax waivers/exemptions. 
 G/SCM/N/284/PER 
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  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 available for: 
 
Tax expenditure: Income tax exemption for companies incorporated or established in the 
ZOFRATACNA and engaged in industrial, agro-industr ial, in-bond processing and services activities 
 
  2013 2014 
S/. thousand 7,512 6,525 
US$ thousand 2,782 2,298 
Exchange rate 2.70 2.84 
 
Source: Multiannual macroeconomic framework 2013-2015 and 2014-2016, Ministry of the Economy 
and Finance. 
Prepared by the Ministry of Fore ign Trade and Tourism (MINCETUR). 
 
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 assessm ent of the trade effects of the subsidy. 
Information available for: 
 
Tax expenditure: Income tax exemption for companies incorporated or established in the 
ZOFRATACNA and engaged in industrial, agro-industr ial, in-bond processing and services activities 
 
 2013 2014 
% of GDP 0.00 0.00 
 
Source: Multiannual macroeconomic framework 2013-2015 and 2014-2016, Ministry of the Economy 
and Finance. 
Prepared by the Ministry of Fore ign Trade and Tourism (MINCETUR). 
 
Exports and imports of the ZOFRATACNA 
 
 2013 2014 
 Exports Imports Exports Imports 
S/. thousand 9,666 386,780 8,074 184,707 
US$ thousand 3,580 143,252 3,535 80,870 
Exchange rate 2.70 2.70 2.84 2.84 
 
Source: The CETICOS of Ilo, Matarani and Paita an d the Tacna Free Zone and Trade Zone (ZOFRATACNA). 
Prepared by the Ministry of Fore ign Trade and Tourism (MINCETUR). G/SCM/N/284/PER 
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  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 cale ndar or fiscal year. In the latter case, 
the start and end dates of the fiscal year should be specified. 
2013-2014. 
 3. Policy objective and/or purpose of the subsidy. 
Promotion of the sustained and comprehensive de velopment 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 and the amending 
regulations thereto; 
 Law No. 29742 repealing Legislative Decrees Nos. 977 and 978; 
 Supreme Decree No. 103-99-EF (and amendmen ts thereto) approving the Implementing 
Regulations for the tax provisions contained in the Law on the promotion of investment in the Amazon region; 
 Third additional provision of Legislative Decree No. 1120 amending the Income Tax Law. 
 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, Cuzc o, Huánuco, Junín, Pasco, Puno, Huancavelica, 
La Libertad and Piura regions.  
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  2013 2014 
Exemption from the general sales tax S/. thousand 2,253,341 2,557,675 
US$ thousand 834,571 900,590 
Differentiated income tax rates S/. thousand 87,876 121,763 
US$ thousand 32,547 42,874 
Exemption from the general sales tax and the 
selective consumption tax on the sale of fuel by oil companies to marketers or end consumers S/. thousand 233,362 447,458 
US$ thousand 86,430 157,556 
  Exchange rate 2.70 2.84 
Source: Multiannual macroeconomic framework 20 13-2015 and 2014-2016, Ministry of the Economy and 
Finance. 
Prepared by the Ministry of Fore ign Trade and Tourism (MINCETUR). G/SCM/N/284/PER 
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  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 assessm ent of the trade effects of the subsidy. 
Tax expenditure for the "Amazon region" geographical area (% of GDP) 
 
Description of tax benefit 2013 2014 
Exemption from the general sales tax 0.49 0.55 
Differentiated income tax rates 0.02 0.03 
Exemption from the general sales tax and the 
selective consumption tax on the sale of fuel by oil companies to marketers or end consumers 0.05 0.10 
 
Source: Multiannual macroeconomic framework 2013-2015 and 2014-2016, Ministry of the Economy 
and Finance. 
Prepared by the Ministry of Fore ign Trade and Tourism (MINCETUR). 
 
IV. PROMOTION OF AQUACULTURE 
1. Title of the subsidy programme, if relevant , or brief description or identification of 
the subsidy. 
Promotion and development of aquaculture. 
 
2. Period covered by the notification. The period to be covered by the notification 
should be the most recently completed cale ndar or fiscal year. In the latter case, 
the start and end dates of the fiscal year should be specified. 
2013-2014. 
 3. Policy objective and/or purpose of the subsidy. 
Promotion of aquaculture activities in marine, cont inental and brackish waters as a source of food, 
employment and revenue, maximizing the economic benefits while ensuring environmental and biodiversity conservation.  
4. Background and authority for the subsidy (including identification of the 
legislation under which it is granted). 
 Law No. 27460 on the promotion and development of aquaculture; 
 
 Supreme Decree No. 030-2001-PE, Regulations im plementing the Law on the promotion and 
development of aquaculture; 
 
 Law No. 28326 amending Law No. 27460 on the pr omotion and development of aquaculture; 
 
 Law No. 29644 of 1 January 2011 establishing measures to promote aquaculture activities. 
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.). 
Tax benefits. 
 G/SCM/N/284/PER 
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  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). 
Natural or legal persons engaged in aquaculture activities, which include the farming of 
hydrobiological species in an organized and technology-oriented manner in selected, controlled, 
natural, conditioned or artificial environments, duri ng all or part of their life cycle, in marine, 
continental or brackish waters. Likewise, persons engaged in research or the primary processing of 
aquaculture products, including those who undertake, either directly or through third parties, 
the subsequent primary processing, freezing, pr ocessing or packaging of the hydrobiological 
products of their aquaculture activities with a view to their marketing in Peru or abroad.  
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: Income tax rate of 15% on aquaculture activities 
  2013 
S/. thousand 2,027 
US$ thousand  751 
Exchange rate 2.70 
 
Source: Multiannual macroeconomic framework 2013-2015 and 2014-2016, Ministry of the Economy 
and Finance. 
Prepared by the Ministry of Fore ign Trade and Tourism (MINCETUR). 
 
8. Duration of the subsidy and/or any other time-limits attached to it, including date 
of inception/commencement. 
Until 31 December 2021 with regard to income ta x depreciation and the suspension of payments 
for aquaculture rights.2 
9. Statistical data permitting an assessm ent of the trade effects of the subsidy. 
Tax expenditure: Income tax rate of 15% on aquaculture activities 
 2013 
% of GDP 0.00 
 
Source: Multiannual macroeconomic framework 2013-2015 and 2014-2016, Ministry of the Economy 
and Finance. 
Prepared by the Ministry of Fore ign Trade and Tourism (MINCETUR). 
 
                                               
2 The tax benefits provided for in Article 4.1 and Article 6 of Law No. 27360 (Law adopting the rules for 
the promotion of the agricultural sector), which were a pplicable to aquaculture acti vities in accordance with 
Law No. 29644 (Law establishing measures to promote aquaculture activities), remained in effect until 31 December 2013. G/SCM/N/284/PER 
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  V. PROMOTION OF HIGH-ANDEAN AREAS 
1. Title of the subsidy programme, if relevant , or brief description or identification of 
the subsidy. 
Promotion of the development of production activities in high-Andean areas. 
 
2. Period covered by the notification. The period to be covered by the notification 
should be the most recently completed cale ndar or fiscal year. In the latter case, 
the start and end dates of the fiscal year should be specified. 
2013-2014. 
 3. Policy objective and/or purpose of the subsidy. 
To promote and encourage the development of prod uction and services activities that generate 
value-added and use of local labour in high-Andean areas with a view to alleviating poverty.  
4. Background and authority for the subsidy (including identification of the 
legislation under which it is granted). 
 Law No. 29482 promoting the development of prod uction activities in high-Andean areas; 
 
 Supreme Decree No. 051-2010-EF, Regulation s implementing the Law promoting the 
development of production activities in high-Andean areas. 
 
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). 
Physical persons, micro-enterprises and small businesses, cooperatives, communal and 
intercommunal companies which have their tax domicile, place of business and production centre in the Andean regions (with the exception of the ca pital cities of the departments) at an altitude 
of 2,500 metres or more, and enterprises in general which, as well as meeting the 
above-mentioned location requirements, are estab lished at an altitude of 3,200 metres or more 
and engaged in one of the following activities: fish farming, aquaculture, general meat processing, forestry plantations for commercial or industrial purposes, milk production, breeding 
of South American camelids and bovids and processing of their fleeces and hides, agribusiness, 
crafts and textiles.  
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: Income tax exemption for pr oduction activities in high-Andean areas 
  2013 2014 
S/. thousand 731 4,284 
US$ thousand  271 1,508 
Exchange rate 2.70  2.84 
 
Source: Multiannual macroeconomic framework 2013-2015 and 2014-2016, Ministry of the Economy 
and Finance. 
Prepared by the Ministry of Fore ign Trade and Tourism (MINCETUR). 
 G/SCM/N/284/PER 
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  8. Duration of the subsidy and/or any other time-limits attached to it, including date 
of inception/commencement. 
Benefits under this Law apply until 31 December 2021. 
 
9. Statistical data permitting an assessm ent of the trade effects of the subsidy. 
Tax expenditure: Income tax exemption for pr oduction activities in high-Andean areas 
 2013 2014 
% of GDP 0.00 0.00  
 
Source: Multiannual macroeconomic framework 2013-2015 and 2014-2016, Ministry of the Economy 
and Finance. 
Prepared by the Ministry of Fore ign Trade and Tourism (MINCETUR). 
 
VI. FONDEPES 
1. Title of the subsidy programme, if relevant , or brief description or identification of 
the subsidy. 
National Fisheries Development Fund (FONDEPES). 
 
2. Period covered by the notification. The period to be covered by the notification 
should be the most recently completed cale ndar or fiscal year. In the latter case, 
the start and end dates of the fiscal year should be specified. 
2013-2014. 
 
3. Policy objective and/or purpose of the subsidy. 
To foster, implement and provide technical, econom ic and financial support for the development of 
small-scale maritime and continental fishing and of fisheries and aquaculture activities, particularly in terms of basic infrastructure for the development and distribution of fisheries resources. 
 
4. Background and authority for the subsidy (including identification of the 
legislation under which it is granted). 
Supreme Decree No. 010-92-PE establishing the National Fisheries Development Fund 
(FONDEPES). 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.). 
 financing of credit programmes and financial support at preferential rates; 
  support services for the small-scale fisheries sector in relation to the use of infrastructure 
and equipment; 
 
 education, training, research, technology tr ansfer and business consultancy programmes. 
 
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). 
Natural or legal persons engaged in aquaculture and small-scale maritime and continental fishing. 
 G/SCM/N/284/PER 
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  7. Subsidy per unit or, in cases where this is not possible, the total amount or the 
annual amount budgeted for that subsidy. 
Only certain FONDEPES activities and projects ha ve a subsidy component. Given that no specific 
information is available on the amount of these subsidy components, the general execution of 
expenditure in accordance with the FONDEPES budget is provided below. 
 It should be noted that this expenditure includes (i) payroll expenditure; (ii) expenditure related to 
the purchase of goods and services; (iii) project expenditure; (iv) financial investment 
expenditure; and (v) other current and capital ex penditure; and is financed by: (i) ordinary 
resources (income from tax revenue and other sources) and (ii) direct resources (income generated and administered directly by FONDEPES itself, such as property revenue, fees, 
provision of services, inter alia ). 
 
Execution of expenditure in accordance with the FONDEPES budget 
 2013 2014 
Total (S/.) 52,922,213 71,006,948 
Total (US$) 19,600,820 25,002,446 
Exchange rate 2.70 2.84  
 
Source: Economic transparency website of the Ministry of the Economy and Finance. 
Prepared by the Ministry of Fore ign Trade and Tourism (MINCETUR). 
 
8. Duration of the subsidy and/or any other time-limits attached to it, including date 
of inception/commencement. 
Indefinite. 
 
9. Statistical data permitting an assessm ent of the trade effects of the subsidy. 
Information not available. 
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