PERU – TAX TREATMENT ON CERTAIN IMPORTED PRODUCTS
Document: Request for the Establishment of a Panel by Chile
Date: 14 June 2002
Document codes: WT/DS255/3
Complainant: Chile
Respondent: Peru
Dispute stage: Mutually Agreed Solution
Agreements cited: Art. III  GATT 1994

PERU – TAX TREATMENT ON CERTAIN IMPORTED PRODUCTS
Request for the Establishment of a Panel by Chile
The following communication, dated 13 June 2002, from the Permanent Mission of Chile to
the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.
I am writing to request the establishment of a panel, in accordance with Articles 4 and 6 of the
Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), concerning the
tax treatment of imports of fresh fruit, vegetables, fish, milk, tea and other natural products into Peru.
Law 27.614 amending the Single Codified Text of the Law on the General Sales Tax and
Selective Consumption Tax (TUO), approved by Supreme Decree No. 055-99-EF, was published in
the Official Journal of Peru, El Peruano, on 29 December 2001. Article 5 of the TUO used to exempt
from the General Sales Tax (IGV) sales within the country and imports of a list of products –
contained in Appendix I of the TUO – which included fish, milk, fruit and vegetables, tea, cereals for
sowing and other products. Pursuant to Law 27.614 the TUO was amended with the result that the
goods listed in the above-mentioned Appendix I will be exempted from the IGV only in the case of
domestic sale. Accordingly, the importation of th ese goods became subject to the IGV, with the
exception of a small group of products – cereals for sowing, books and some others – imports (and
domestic sales) of which are still exempt from the IGV.
On 22 April 2002, pursuant to Articles XXII of the GATT 1994 (GATT 94) and 4 of the
DSU, Chile requested consultations with Peru; this request was circulated in document
, While the consultations, which were held in Lima, Peru, on 9 May, allowed
the parties to gain a better understanding of their respective positions, they unfortunately did not lead
to a mutually satisfactory settlement of the matter.
The Government of Chile considers that the measure in question, Law 27.614, by establishing
that the exemption from IGV provided for in the Single Codified Text of the Law on the General
Sales Tax and Selective Consumption Tax (TUO) (Supreme Decree No. 055-99-EF) applies only to
sales within Peru and not to imports, is inconsistent with Article III of the General Agreement on
Tariffs and Trade 1994. Since 29 December 2001, the importation of a large number of products is
subject to the IGV (at a rate of 18 per cent), whereas the sale within Peru of the same products is
exempt from the IGV. This is a violation of the national treatment commitments entered into by Peru
both bilaterally and under the WTO, specifically the above-mentioned Article III of the GATT 1994.
This discrimination affects Chilean exports of a number of products, in particular, but not exclusively,
apples, table grapes and peaches, harming their competitiveness on the Peruvian market.
 It should be borne in mind that in the request for consultations and during the consultations
Chile invoked the provisions relating to cases of urgency in Article 4:8 of the DSU, and does so again
in this request, as the measure affects natural, and hence perishable, products. It will therefore invoke

its rights relating to time-limits provided for in that paragraph as well as in paragraph 9 of the same
Article 4.
In view of the above, the Republic of Chile requests the establishment of a panel with the
standard terms of reference set out in Article 7 of the DSU. To that end, I should be grateful if this
request could be included in the agenda for the forthcoming meeting of the Dispute Settlement Body
on 24 June 2002.