Peru is one of South America’s most dynamic economies, with significant trade relations globally. As an active member of the World Trade Organization (WTO), the Pacific Alliance (PA), and the Andean Community, Peru’s import tariff system is influenced by international trade agreements and regulations. The country’s customs policies aim to facilitate imports, attract foreign investment, and maintain competitive trade relationships, especially with neighboring countries and key global players.
Overview of Peru’s Customs Tariff System
Peru applies a harmonized tariff system based on the World Customs Organization’s (WCO) Harmonized System (HS), which classifies goods into sections and subcategories. As a member of the WTO and the Andean Community, Peru has adopted several agreements that influence its customs tariff structure, including agreements under the Andean Community Customs Code and the Pacific Alliance trade agreements.
- Andean Community (CAN): This is a regional trade bloc comprising Bolivia, Colombia, Ecuador, and Peru. The Andean Community Agreement seeks to establish common customs procedures and lower tariffs among its members. However, when importing from non-member countries, Peru applies the WTO rules, which means goods from third-party countries are subject to national tariffs.
- Pacific Alliance (PA): Peru’s participation in the Pacific Alliance (with Mexico, Chile, and Colombia) has further enhanced trade relations, promoting the reduction of tariffs for goods imported within the alliance.
- World Trade Organization (WTO): As a member of the WTO, Peru’s tariff structure complies with the organization’s trade rules, ensuring the country follows international standards in tariff applications.
- Free Trade Agreements (FTAs): Peru has signed free trade agreements with several countries and regions, including the United States, China, European Union, and Japan, which provide preferential tariff rates for specific products.
General Tariff Structure in Peru
Peru applies a General Tariff System based on the Customs Tariff Law (Ley General de Aduanas), which sets out the duty rates for imported goods. The rates are determined by the product’s classification under the Harmonized System (HS), and tariffs vary depending on the type of product and its origin. The tariff system consists of various categories, with the duties being expressed as a percentage of the customs value of the goods.
1. Basic Tariff Structure
Peru’s tariffs generally range from 0% to 30%, though some products may be subject to higher rates. Key tariff classifications include:
- 0%: Many goods are subject to a 0% import duty, such as basic raw materials and intermediate goods that support industrial production.
- 6%: A significant portion of manufactured goods, such as textiles, consumer electronics, and machinery, is taxed at this rate.
- 11%: Agricultural products like cereals, some fruits, and certain vegetables.
- 17%: Luxury items, high-end electronics, and appliances.
- 20-30%: Certain consumer goods, textiles, clothing, and vehicles.
2. Tariff Classification System (HS)
Peru’s customs duties are applied based on a 10-digit Harmonized System (HS) code for each imported product. The system is organized into 21 sections with multiple chapters under each section, each corresponding to different types of products.
Key Sections in Peru’s Customs Tariff System
- Section 1: Live Animals and Animal Products (HS 01-05)
- Tariffs on live animals and animal products like meat, eggs, and dairy products typically range from 0% to 15%, with certain exceptions for highly regulated imports.
- Section 2: Vegetable Products (HS 06-14)
- Includes imports of plants, seeds, and edible vegetables. Tariffs can range from 0% to 10% for basic vegetables, while more processed items may face higher rates.
- Section 3: Animal or Vegetable Fats (HS 15)
- Import duties typically fall within 5% to 12%, depending on the specific product (e.g., oils, fats, margarine).
- Section 4: Prepared Foodstuffs (HS 16-21)
- Processed food products such as canned vegetables, processed meat, and ready-to-eat foods are subject to tariffs from 6% to 17%, with some tariffs as high as 25% for luxury processed foods.
- Section 5: Mineral Products (HS 25-27)
- Mineral products, including crude oil, natural gas, and coal, generally face 0% to 5% tariffs, although refined petroleum products may face higher duties.
- Section 6: Chemicals and Allied Industries (HS 28-38)
- Chemicals, pharmaceuticals, fertilizers, and related products typically face tariffs between 6% and 15%.
- Section 7: Plastics and Rubber (HS 39-40)
- Plastic products and rubber goods have tariffs typically ranging from 6% to 10%, with certain industrial goods falling within the lower end of this range.
- Section 8: Textiles and Clothing (HS 61-63)
- Clothing and textiles usually face 11% to 30% tariffs, with high-end or luxury clothing having the highest tariff rates.
- Section 9: Footwear and Headgear (HS 64-67)
- Footwear generally faces import duties between 6% and 20%.
- Section 10: Vehicles and Aircraft (HS 87-89)
- Motor vehicles, motorcycles, and parts typically incur duties between 10% and 30%, with luxury cars facing the highest rates.
- Section 11: Optical and Medical Instruments (HS 90-92)
- Medical equipment and instruments have 6% to 10% tariffs.
Special Import Duties from Certain Countries
Peru’s trade agreements with various countries impact the import duties for specific products, offering preferential treatment to products originating from partner countries.
1. United States and the U.S.-Peru Free Trade Agreement (FTA)
Under the U.S.-Peru Trade Promotion Agreement (TPA), which came into effect in 2009, many products from the United States are subject to reduced or eliminated import duties. Key benefits include:
- Industrial Equipment and Machinery: Reduced tariffs for manufacturing equipment, computers, and electronics.
- Agricultural Products: Certain U.S. agricultural products, such as wheat, corn, and grains, may benefit from tariff reductions.
- Textiles and Apparel: Specific textile products from the U.S. may be eligible for reduced duties under the agreement.
2. China and the Peru-China Free Trade Agreement (FTA)
Since the Peru-China Free Trade Agreement was signed in 2009, China has become one of Peru’s largest trade partners. Imports from China benefit from preferential treatment, with significant tariff reductions across a range of products, including:
- Electronics and Machinery: Products like smartphones, laptops, and household electronics benefit from reduced duties, often dropping from 15% to 0%.
- Textiles: Apparel imports from China are typically taxed at 0% to 6%.
3. European Union and the Peru-EU Free Trade Agreement
Under the Peru-EU Free Trade Agreement, which came into force in 2013, many products from the European Union are granted preferential tariffs, including:
- Automobiles and Vehicles: European vehicles benefit from lower tariffs, often reduced to 10% or less.
- Pharmaceuticals and Medical Equipment: Import duties on EU-origin medical devices and pharmaceuticals are typically reduced or eliminated.
4. MERCOSUR Countries
As Peru maintains a partial trade agreement with MERCOSUR (Mercado Común del Sur, which includes Argentina, Brazil, Uruguay, and Paraguay), goods imported from these countries may receive preferential treatment. The trade agreement results in lower tariffs for many products, particularly agricultural goods, textiles, and some industrial equipment.
Additional Import Taxes and Charges in Peru
Apart from the basic import tariffs, other taxes and charges may apply to imported goods in Peru, including:
- Value Added Tax (VAT): A 18% VAT is applied to most goods imported into Peru. This is in addition to the basic customs duty and is charged on the customs value of the goods.
- Customs Processing Fee: Importers are typically required to pay a fee for processing the goods through customs, which can vary based on the size of the shipment.
- Selective Consumption Tax (ISC): Certain goods, particularly those considered luxury or non-essential (such as alcoholic beverages, tobacco, and high-end electronics), may be subject to an additional Selective Consumption Tax (ISC), which can range from 10% to 50% of the product’s value.
Country Facts and Overview of Peru
- Formal Name: Republic of Peru
- Capital: Lima
- Largest Cities:
- Lima
- Arequipa
- Trujillo
- Per Capita Income: Approximately USD 6,500 (2023 estimate)
- Population: Around 34 million
- Official Language: Spanish (with Quechua and Aymara also recognized in some regions)
- Currency: Nuevo Sol (PEN)
- Location: Peru is located in the western part of South America, bordered by Ecuador, Colombia, Brazil, Bolivia, Chile, and the Pacific Ocean.
Geography
Peru is characterized by three major geographic regions:
- Coastal Region: The narrow coastal strip along the Pacific Ocean, which includes the capital Lima, and is home to Peru’s largest cities and industrial areas.
- Andean Mountain Range: The high-altitude region that runs through the center of the country, including the famous Incan city of Cusco.
- Amazon Rainforest: The eastern portion of the country, which is covered by dense tropical forests, part of the world’s largest rainforest.
Economy
Peru has a mixed economy with strong agricultural, mining, and manufacturing sectors. The country has shown consistent economic growth over the past decades, driven by the export of natural resources such as copper, gold, and silver, as well as agricultural products like coffee, asparagus, and grapes.
- Key Sectors:
- Mining: Peru is one of the world’s largest producers of copper, gold, and silver.
- Agriculture: Coffee, grapes, asparagus, and fishmeal are significant export products.
- Manufacturing: Food processing, textiles, and chemicals are the leading industries.
Major Industries
- Mining: Peru is a global leader in mineral extraction, particularly copper, silver, and gold.
- Agriculture: The country is a major exporter of agricultural products, particularly to the U.S. and Europe.
- Manufacturing and Textiles: Peru is also known for its textiles, including alpaca wool, which is highly valued in global markets.
