G/SCM/N/315/PER  
6 July 2017 
(17-3625) Page: 1/10 
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 3 0 June 2 017, is being circulated at the request of the 
delegati on of Peru . 
 
_______________  
 
 
Peru hereby submits this new and full notification i n 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 ("S CM 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/315/PER  
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  I. ZEDS OF ILO, MATARANI, PAITA AND TUMBES  
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy  
Special Development Zones (ZEDs), previously known as  Centres for e xport, 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 calendar or fiscal year . In the latt er case, the start and end dates 
of the fiscal year should be specified.  
2015-2016.  
In the period covered by the notification, the Tumbes ZED was in the process of being set up and 
was not operational . 
3. Policy objective and/or purpose of the subsidy  
To foster investment stability , stimulate employment , contribute to sustainable socio -economic 
development and promote competitiveness and innovation in the  regions  concerned.  
4. Background and authority for the subsidy (including identification of the legisla tion 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 ser vices (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 a 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;  
 Law No. 28569 gran ting 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 Tumbes  CETICOS in the department of Tumbes and the 
amending regulations thereto , as amended by  Law No. 29902 ; 
 Law No. 29710 strengthening the  CETICOS;  
 Supreme Decree No. 023-96-ITINCI (and amendments thereto) approving the 
Regulation governing the CETICOS, as amended by Supreme Decree No. 005/97/ITINCI;  
 Supreme Decree No. 112-97-EF (and amendments thereto) appro ving 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 no t be carried 
out within the CETICOS;  
 Law No. 30446 establishing the complementary  legal framework for the  Special 
Development Zones (ZEDs) and the Tacna Free Zone and Trade Zone (ZOFRATACNA) . 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc .) 
Tax waivers/exemptions . G/SCM/N/315/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 le gal 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 ZED 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 repa ired in the ZEDs1. 
 
(Activity completed on 3 1 December 2 016)  
 2015  2016  
S/. thousand  37 0 
US$ thousand  11.64  0 
Exchange rate  3.18 3.38 
Source : Multiannual macroeconomic framework 2015 -2017 and  2016-2018, Ministry of the Economy and 
Finance . 
Prepared by  the Ministry of Foreign Trade and Tourism (MINCETUR).  
8. Duration of the subsidy and/or any other time -limits attached to it, including date of 
inception/commencement  
ZEDs of Ilo, Matarani, Paita and Tumbes : until 31 December 2 042. 
9. Statistical data per mitting 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 ZEDs. 
 
(Activity completed on 3 1 December 2 016)  
 2015 2016  
% of GDP  0.00 0.00 
Source : Multiannual macroeconomic framework 2015-2017 and 2016-2018, Ministry of the Economy and 
Finance . 
Prepared by the  Ministry of Foreign Trade and Tourism (MINCETUR).  
Exports and imports of the ZEDs 
 2015  2016  
 Exports  Imports  Exports  Imports  
S/. thousand  112,223 33,857 119,146 39,582 
US$ thousand  35,290 10,647 35,250 11,711 
Exchange rate  3.18 3.18 3.38 3.38 
Source : ZEDs of Ilo, Matarani and Paita, and the Tacna Free Zone and Trade Zone ( ZOFRATACNA ). 
Prepared by the M inistry of Foreign Trade and Tourism ( MINCETUR).  
                                                
1 Used vehicle repair and reconditioning activities in th e ZEDs terminated on 31 December 2012. Such 
vehicles were, however, still imported in subsequent years when in possession of the necessary legal 
documentation. The tax expenditure generated by the importation of these reconditioned vehicles subsequent 
to 2012 has been declining, as shown in the table.  G/SCM/N/315/PER  
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  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 2 002), e stablished 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 calendar or fiscal year . In the latter case, the start and end date s 
of the fiscal year should be specified.  
2015-2016.  
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. Backgroun d 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  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 Zon e; 
 Supreme Decree No. 022-2015-PRODUCE approving  the list of  goods falling under 
national tariff subheadings corresponding to  extraction  and/or manufacturing activities 
that may not be carried out by  industrial and agro -industrial enterprises established in 
the ZOFRATACNA ; 
 Law No. 30446 establishing the complementary legal framework for the Special 
Development Zones (ZEDs) and the Tacna Free Zone and Trade Zone (ZOFRATACNA).  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc .) 
Tax waivers/exempt ions. 
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 contrac t. G/SCM/N/315/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  
Information available for : 
Tax expenditure : Income tax exemption for companies incorporated or established in the 
ZOFRATACNA and  engaged in industrial, agro -industrial, in -bond processing and services activities . 
 2015  2016  
S/. thousand  8,673 11,764 
US$ thousand  2,727 3,480 
Exchange rate  3.18 3.38 
Source : Multiannual macroeconomic framework 2015-2017 and 2016-2018, Ministry of the Economy and 
Finance . 
Prepared by the Ministry of Foreign Trade and Tourism ( MINCETUR).  
8. Duration of the subsidy and/or any other time -limits attached to it, including date of 
inception/commencement  
Until 3 1 December 2 042. 
9. Statistical data permitti ng an assessment 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 -industrial, in -bond processing and services ac tivities . 
 
 2015  2016  
% of GDP  0.00 0.00 
Source : Multiannual macroeconomic framework 2015-2017 and 2016 -2018, Ministry of the Economy and 
Finance . 
Prepared by the Ministry of Foreign Trade and Tourism ( MINCETUR).  
Exports and imports of the ZOFRATACNA  
 2015 2016  
 Exports  Imports  Exports  Imports  
S/. thousand  7,484 718,317 3,830 704,645 
US$ thousand  2,353 225,886 1,133 208,475 
Exchange rate  3.18 3.18 3.38 3.38 
Source : Tacna Free Zone and Trade Zone (ZOFRATACNA) . 
Prepared by the Ministry of Foreign Trad e and Tourism ( MINCETUR).  
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 . G/SCM/N/315/PER  
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  2. Period covered by the notification . The per iod 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 . 
2015-2016.  
3. Policy objective and/or purpose of the subsidy  
Promotion of the sustainable  and comprehensive 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 and the amending 
regulations thereto ; 
 Law No. 29742 repealing Legislative Decrees Nos. 977 and 978;  
 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 ; 
 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 latt er, 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 . 
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 "Ama zon region" geographical area  
Description of tax benefit   2015  2016  
Exemption from the general sales tax  S/. thousand  2,749,844  2,843,268  
US$ thousand  864,731  841,204  
Differentiated income tax rates  S/. thousand  102,341  97,756  
US$ thousand  32,183  28,922 
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  483,750  416,452  
US$ thousand  152,123 123,211 
 Exchange rate  3.18 3.38 
Source : Multiannual macroe conomic framework 2015-2017 and 2016 -2018, Ministry of the Economy and 
Finance . 
Prepared by the Ministry of Foreign Trade and Tourism ( MINCETUR).  G/SCM/N/315/PER  
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  8. Duration of the subsidy and/or any other time -limits attached to it, including date of 
inception/commenceme nt 
The tax benefits are applicable for a period of 50 (fifty) years as of their entry into effect 
(1 January 1 999). 
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Tax expenditure for the "Amazon region" geographical area (% of GDP ) 
Description of tax benefit  2015  2016  
Exemption from the general sales tax  0.45 0.43 
Differentiated income tax rates  0.02 0.01 
Exemption from the general sales tax and the selective 
consumption tax on the sale of fuel by oil companies to 
market ers or end consumers  0.08 0.06 
Source : Multiannual macroeconomic framework 2015-2017 and 2016 -2018, Ministry of the Economy and 
Finance . 
Prepared by the Ministry of Foreign Trade and Tourism ( MINCETUR).  
IV. PROMOTION OF HIGH -ANDEAN AREAS  
1. Title of the s ubsidy 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 t he 
most recently completed calendar or fiscal year . In the latter case, the start and end dates 
of the fiscal year should be specified . 
2015-2016.  
3. Policy objective and/or purpose of the subsidy  
To promote and encourage the development of production 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 production activities in high -Andean 
areas ; 
 Supreme Decree No. 051-2010-EF, Regulations implementing the Law promoting the 
development of production activities in high -Andean areas ; 
 Supreme Decree No. 139-2010-EF approving the  production/sales ratios for the 
development of production activities in high -Andean areas  for the 2011 financial year ; 
 Supreme Decree No. 014-2012-EF approving the production/sales ratios for the 
development of production activities in high -Andean areas  for the 2012 financial year ; 
 Supreme Decree No. 010-2013-EF approving the production/sales ratios for the 
development of production activities in high -Andean areas  for the 2013 financial year ; 
 Supreme Decree No. 013-2014-EF approving the production/sales ra tios for the 
development of production activities in high -Andean areas  for the 2014 financial year ; 
 Supreme Decree No. 009-2015-EF approving the production/sales ratios for the 
development of production activities in high -Andean areas  for the 2015 financia l year ; G/SCM/N/315/PER  
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   Supreme Decree No. 011-2016-EF approving the production/sales ratios for the 
development of production activities in high -Andean areas  for the 2016 financial year ; 
 Supreme Decree No. 014-2017-EF approving the production/sales ratios for the 
develop ment of production activities in high -Andean areas  for the 2017 financial year . 
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 othe rs; 
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 capital 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 e stablished at an altitude of 3,200 metres or more and engaged i n one 
of the following activities : fish farming, aquaculture, general meat proce ssing, forestry plantations 
for commercial or industrial purposes, milk production, breeding of South  American ca melids 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 exempti on for production activities in high -Andean areas . 
 2015  2016  
S/. thousand  4,762 5,651 
US$ thousand  1,497 1,672 
Exchange rate  3.18 3.38 
Source : Multiannual macroeconomic framework 2015-2017 and 2016 -2018, Ministry of the Economy and 
Finance  
Prepared by  the Ministry of Foreign Trade and Tourism ( MINCETUR).  
8. Duration of the subsidy and/or any other time -limits attached to it, including date of 
inception/commencement  
The benefits under Law No. 29482 are applicable for  ten (10) years  as of 19 December 2 009, its 
date of publication . 
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Tax expenditure : Income tax exemption for production activities in high -Andean areas . 
 2015  2016  
% of GDP  0.00 0.00 
Source : Multiannual macroecon omic framework 2015-2017 and 2016 -2018, Ministry of the Economy and 
Finance . 
Prepared by the Ministry of Foreign Trade and Tourism ( MINCETUR).  
V. FONDEPES  
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy  
National Fisheries Development Fund (FONDEPES ). G/SCM/N/315/PER  
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  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 ye ar should be specified . 
2015-2016.  
3. Policy objective and/or purpose of the subsidy  
To foster, implement and provide technical, economic and financial support for the development of 
small -scale maritime and continental fishing and of fisheries and aquacul ture 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 ) 
 Decree -Law No. 25977, General Law on Fisheries ; 
 Supreme Decree No. 010-92-PE establishing the National Fisheries Development Fund 
(FONDEPES ); 
 Legislat ive Decree No. 1195, General Law on Aquaculture . 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc .) 
 financin g of credit programmes for the small -scale fisheries and  aquaculture  sector , 
aimed at  infrastructure development , business consultancy  and supply of materials, 
equipment , gear and tackle ; 
 education, training, research and technology transfer 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 . 
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 have 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 rel ated to 
the purchase of goods and services ; (iii) project expenditure ; (iv) financial investment 
expenditure ; and (v) other current and capital expenditure ; and is financed by : (i) ordinary 
resources (income from tax revenue and other sources) and (ii) dir ect 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  
Year 2015  2016  
Total S/.  100,323,845 47,357,893 
Total US$  31,548,379 14,011,211 
Exchange rate  3.18 3.38 
Source : Economic transparency website of the Ministry of the Economy and Finance . 
Prepared by the Ministry of Foreign Trade and Tourism ( MINCETUR).  G/SCM/N/315/PER  
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  8. Duration of the subsidy and/or any other ti me-limits attached to it, including date of 
inception/commencement  
Indefinite . 
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Information not available . 
 
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