RESTRICTED
WORLD TRADE G/SCM/N/3/PER
10July1996
ORGANIZATION(96-2685)
Original: Spanish Committee onSubsidies andCountervailing Measures
SUBSIDIES
NOTIFICATIONS PURSUANT TOARTICLE XVI.1 OFTHE GATT 1994
AND ARTICLE 25OFTHE AGREEMENT ONSUBSIDIES AND
COUNTERVAILING MEASURES
Peru
Thefollowing communication, dated 28June1996, hasbeenreceived from thePermanent
Mission ofPeru.
_______________
1. Perudoesnotgrant direct oranyother typeofexport subsidies, asspecified inGATT 1994
andtheWTO Agreement onSubsidies andCountervailing Measures.
2. Inaccordance withfootnote 1totheAgreement onSubsidies andCountervailing Measures
andArticle XVIoftheGATT, Peruconsiders thatdrawback should notbedeemed tobeasubsidy.
However, forreasons oftransparency, Peruconsiders itdesirable tonotify Supreme Decree 104-95-EF
ondrawback-detailsattached-whichconcernstheremissionofcustomsdutiespaiddirectlyorindirectly
bysmall exporters uptotheequivalent of5percentofthef.o.b. value oftheexports inquestion.G/SCM/N/3/PER
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Supreme Decree No.104-95-EF: Drawback Procedure
Thenotification ofthismeasure doesnotprejudge itscompatibility, nature orlegalstatus or
itseffects under GATT 1994 ortheWTO Agreement onSubsidies andCountervailing Measures, in
accordance withArticle 25.7oftheAgreement.
1. Description ofthemeasure
Drawback isacustoms procedure which, atthetimeofexportation ofthegoods, makes it
possible toobtain totalorpartial remission ofthecustoms duties payable onimportation ofproducts
andinputs contained intheexported goods orconsumed during theirmanufacture.
2. Period covered bythenotification
Theperiod covered bythenotification isthethree-year period beginning on30June1996.
3. Policy objective and/or purpose ofthemeasure
Theobjective ofthemeasure istoimplement asimplified remission procedure intended to
promotesmallexportsbyreducingtheadditionalcostsimposedonsmallenterprisesbytheadministration
ofconventional relief orexemption procedures.
4. Legislative basis
Thedrawback procedure islaiddown inSupreme Decree No.104-95-EF published on23June
1995. Thistextimplements TitleFive, Chapter Six,Section IIondrawback oftheConsolidated Sole
TextoftheGeneral Customs Actapproved bySupreme Decree No.45-94-EF.
Inorder toenable simplified procedure operations tocommence, thelistoftariff headings
excluded from simplified drawback, required bySupreme Decree No.104-95-EF, waspublished on
3September 1995inMinisterial Resolution No.135-95-EF. Thesimplified drawback procedure was
putintoeffect inNovember ofthatyear.
5. Beneficiaries, quantities andmode ofapplication ofthemeasure
Thebeneficiaries aresmall-scale producing-exporting enterprises whose production costshave
beenincreased bythecustoms duties ontheimportation ofrawmaterials, inputs, intermediates orparts
andcomponents incorporated inorconsumed inthemanufacture ofthegoods exported, subject to
thefollowing requirements:
(a) Theproducts eligible fortheprocedure arethose exports ofwhich, bytariff heading,
didnotexceed US$10 million (tenmillion USdollars) in1994. Thisamount maybe
adjusted inaccordance withevaluations made bytheMinistry oftheEconomy and
Finance.
(b) Thec.i.f. value oftherawmaterials, inputs, intermediates orparts andcomponents
incorporated inorconsumed inthemanufacture ofthegoods exported maynotexceed
50percentofthef.o.b. value oftheexported product.G/SCM/N/3/PER
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(c) Exports incorporating foreign inputs whose entry involved theuseofdutyrelief or
exemption mechanisms orduty-free admission maynotbenefit from thesimplified
procedure.
(d) Thesimplified procedure isnotavailable toexporters whoindividually during the
previous 12months haveshipped goods eligible fordrawback inrespect ofthepart
which exceeds US$8 million (eight million USdollars).
Thedrawback onproducts which meetthese requirements isequivalent to5percentofthe
f.o.b. export value ofthegoods.
Thecustoms duties arerefunded bymeans ofcredit notes issued bycustoms. Theexporters
mustlodge adrawback application intheform ofasworn statement accompanied byasimple copy
oftheexport declarations.
6. Duration ofthemeasure
Themeasure wasready forapplication fromthemonth ofSeptember 1995, notwithstanding
thefactthat,asmentioned inSection 4ofthisnotification, drawback wasfirstpaidinNovember 1995.
Themeasure doesnothaveadefinite expiration date.
7. Statistical datapermitting anassessment ofthetrade effects ofthemeasure
Asthemeasure hasonlyrecently beenapplied, nostatistical information onitstrade effects
isyetavailable.