RESTRICTED
WORLD TRADE G/TRIMS/N/1/PER/1
18April 1995
ORGANIZATION(95-0926)
Original: Spanish Committee onTrade-Related Investment Measures
NOTIFICATION UNDER ARTICLE 5.1OFTHE AGREEMENT
ONTRADE-RELATED INVESTMENT MEASURES
Peru
Thefollowing communication, dated 3March 1995, hasbeenreceived from thePermanent
Mission ofPeru.1
_______________
(i) Description ofthemeasure andofitsmain features
Product: Milk powders, anhydrous fatandother milkproducts.
Measure: With aviewtopromoting anddeveloping dairy farming inPeruaswellasprotecting
consumers, thefreeimportation ofmilkpowders, anhydrous fatandothermilkproducts
issubjected tothesingle restriction thattheabove products maynotbeused in
reconstitution andremixing processes fortheproduction ofliquid milk products,
cheeses, butter andsimilar products fordirect human consumption.
Thisrestriction issetoutinregulations applying onlytoenterprises producing evaporated milk,
inaccordance withthefollowing timetable:
Period Useofnationally-produced fresh milkasan
input byproducers ofevaporated milk
30.09.1993 to31.12.1993 Notlessthan70%
01.01.1994 to31.07.1994 Notlessthan80%
01.08.1994 to31.03.1995 Notlessthan90%
Asof01.04.1995 100%
Characteristics ofthemeasure:
1. Themeasure fallsunder paragraph 1(a)oftheIllustrative List. Themeasure isenforceable
under national legislation establishing theobligation foranenterprise topurchase orusecertain products
ofnational origin inproportion tothevolume required foritslocalproduction.
1Thereplies inthisnotification follow theorder oftheagreed format fornotifications under Article 5.1,
contained indocument G/TRIMS/1.G/TRIMS/N/1/PER/1
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2. Themeasure ismandatory under theterms ofnational legislation. Theprovisions are:
Legislative Decree No.653-Fifteenth Supplementary Provision, published on01.08.1991;
Supreme Decree No.009-92-AG, published on14.04.1992;
Supreme Decree No.008-93-AG, published on24.03.1993;
Supreme Decree No.017-92-AG, published on27.05.1992.
3. TheTRIM thatisbeing notified isgeneral innature. Inpractice, regulations haveestablished
atimetable onlyinthecaseofenterprises producing evaporated milk.
Enterprises producing evaporated milk: Gloria S.A.
Nestlé PerúS.A.
4. Themeasure thatisbeing notified isexplicitly notofmandatory application tonewenterprises
orinvestments; nevertheless, itisunderstood thatitcovers economic agents producing theabove
products whether theyareestablished ortobeestablished.
5. Themeasure ismandatory andenforceable byvirtue ofthenational legislation mentioned under
point 2.
6. Thespecific products towhich themeasure relates arethefollowing:
Milk powders, anhydrous fatandother milkproducts.
Scope: Thetimetables governing theTRIM onlycover enterprises producing evaporated milk;
there arenolimitations ontheproduction ofbutter, cheeses andother milkproducts.
7. Themeasurewhichisbeingnotifiedhasbeenimplementedsince15April1992,undertimetables
established intheSupreme Decrees thatarementioned above withtheirreferences.
8. Provision isnotmade forthephasing-down orelimination oftheTRIM. Nevertheless, in
practice, theTRIM hasnotbeenimplemented andtheenterprises covered bythemandatory measure
havenotbeensubject toanycontrol. Enterprises producing evaporated milkcurrently use40percent
nationally-produced fresh milkand60percentimported milkpowders intheirlocalproduction.
Withregard tothephasing-down orelimination ofthemeasure, although noprovision ismade
inthelegislation thatisinforce, apolitical decision hasbeentaken toexamine thematter overthe
coming weeks withaviewtotheelimination ofthemeasure onthegrounds ofitsnon-application and
itsincompatibility withthebroad opening upofourcountry since 1990.
9. Thelegislationmentionedunderpoint2,byvirtueofwhichtheTRIMisimplemented,isattached
tothisnotification.*
10. TheGovernment agency controlling theapplication oftheTRIM istheMinistry ofAgriculture.
Thiscontrol takesplacethrough aCommission responsible forsupervising compliance withthemeasure
andimposing sanctions intheevent ofviolations, suchasfines, seizure, closure orthetemporary
stoppage oftheestablishment. Supreme Decree No.017-92-AG establishes theabove supervision and
control measures andcreates theCommission referred tointheabove paragraph.
*CopiesofthesedocumentsareavailableintheSecretariatforinspectionbyinteresteddelegations(Intellectual
Property andInvestment Division).G/TRIMS/N/1/PER/1
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Itshould berecalled thatinpractice enterprises producing evaporated milkhavenotbeensubject
toanycontrol forcompliance withtheTRIM.
(ii) General information ontheprogramme under which themeasure istaken
Foreseeing serious problems resulting fromthedrought which afflicted dairyproduction regions
inprevious years, theeffects ofwhich arestillevident inthedeep-rooted depression intheabove sector
inPeru, theMinistry ofAgriculture introduced themeasure withaviewtopromoting anddeveloping
dairy farming andprotecting consumers.
Asnotedrepeatedlyinthisnotification,themeasurehasnotbeenimplementedandthetimetables
established forevaporated milkhavenotbeencomplied with; norhasanyinspection beenmade by
theauthorities tosanction suchnoncompliance. Thepossibility ofeliminating themeasure iscurrently
being evaluated.