Living in Peru : your everyday companion

Info provided by the
American Chamber of Commerce of Peru (AmCham Peru)

In this context the question to ask is: what opportunities lie for those Peruvians who wish to be importers, distributors or representatives of American brands?

On one hand, in line with industrial equipment and machinery, up to 90% of the U.S. capital goods exported to Peru will be tax free as soon as the agreement enters into force. Hence, clear opportunities for importing equipment of all sorts like for food processing, packaging, construction, medical, as well as technological products directed toward the information highway as in the case of computers, radios, televisions and remanufactured equipment, motors, car parts, heavy machinery amongst others.

Similarly, custom taxes will be immediately eliminated from 70% of imports on equipment for generating and distributing electrical energy. And we emphasize this particularly, dear reader, because it is important to bear in mind, that the Peruvian government has been looking for a change in the energy matrix of the country. This will offer a higher demand for equipments that generate energy, especially those based in cleaner energies like natural gas and ethanol.

On the other hand, opportunities for chemical products also exist. Nowadays they represent the 20% of the industrial exports from the U.S. to Peru and they enter the country under a duty tax of 12%. Under the PTPA, however, such duties will be reduced to cero almost immediately in 70% of the imported chemical goods that are brought from the U.S. Being the goods that have a higher potential in this department: polyethylene, oils, lubricants, additives, acrylics, fertilizers and agrochemicals.

In this sense, the PTPA not only creates new and better opportunities to a more diverse and creative business for exporters, but it also allows us to take better advantage of our internal market’s potential through imports that are available at extremely attractive prices for the consumer.



*Translated by Joceline Frank

Frankly Speaking Inc.