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Canada-Peru Free Trade Agreement

Annex 1

Schedule of Peru

Sector:
All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation:
National Treatment (Article 803)

Measures:
Constituci6n Politica del Peru (1993), articulo 71
Decreta Legislativo N° 757, Diario Oficial "El Peruano" dell3 de noviembre de 1991, Ley Marco para el Crecimiento de la Inversion Privada, articulo 13

Description:
Investment

No foreign national, enterprise constituted under foreign law or enterprise constituted under Peruvian law, and owned in whole or part, directly or indirectly, by foreign nationals may acquire or own, directly or indirectly, by any title, land or water (including mines, forest or energy sources) located within 50 kilometers of the Peruvian border. Exceptions may be authorized by Supreme Decree approved by the Council of Ministers in conformity with law in cases of expressly declared public necessity.

For each case of acquisition or possession within the referred area, the investor shall hand in the correspondent request to the relevant Ministry, pursuant to laws in force. For example, authorizations of this kind have been given in the mining sector.

Sector:
Fishing and Services related to Fishing

Sub-Sector:

Industry Classification:

Type of Reservation:
National Treatment (Article 903)

Measures:
Decreta Supremo N° 012-2001-PE, Diario Oficial "El Peruano" del14 de marzo de 2001, Reglamento de la Ley General de Pesca, articulos 67, 68, 69 y 70

Description:
Cross-Border Trade in Services

Before commencing operations, shipowners of foreign­ flagged fishing vessels must present an unconditional, irrevocable, letter of guarantee with automatic execution and joint liability, which will be valid for no more than 30 calendar days after the expiry of the fishing permit, issued for the benefit and to the satisfaction of the Ministry of Production by a fmancial, banking or insurance institution recognized by the "Superintendencia de Banca y Seguros". Such letter shall be issued in an amount equal to 25 per cent of the amount that must be paid for fishing rights.

A shipowner of a foreign-flagged fishing vessel that is not of large scale (according to the regulation mentioned above) and that operates in Peruvian jurisdictional waters must rely on the Satellite Tracking System in its vessel, except for shipowners operating in highly migratory fisheries who are excepted from this obligation by a Ministerial Resolution.

Foreign-flagged fishing vessels with a fishing permit must have on board a scientific technical observer appointed by the Sea Institute of Peru (Instituto del Mar del Peru - IMARPE). The shipowner must provide accommodation on board for that representative and a daily stipend, which must be deposited in a special account to be administered by IMARPE.

Shipowners of foreign-flagged fishing vessels that operate in Peruvian jurisdictional waters must hire a minimum of 30 per cent of Peruvian crew, subject to applicable domestic legislation.

Sector:
All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation:
National Treatment (Article 903)
Senior Management and Boards of Directors (Article 806)

Measures:
Decreta Legislativo N° 689, Diario Oficial "El Peruano" del 05 de noviembre de 1991, Ley para la Contrataci6n de Trabajadores Extranjeros, articulos 1, 3, 4, 5 (modificado por Ley N° 26196) y 6

Description:
Investment and Cross-Border Trade in Services

All employers in Peru, independently of their activity or nationality, shall give preferential treatment to nationals when hiring its employees.

Foreign natural persons who are service providers and who are employed by a service-providing enterprise may provide services in Peru under a written and time­ limited employment contract, which may not exceed 3 years. The contract may be subsequently extended for like periods of time. Service-providing enterprises must show proof of the company's commitment to train national personnel in the same occupation.

Foreign natural persons may not represent more than 20 per cent of the total number of employees of an enterprise, and their pay may not exceed 30 per cent of the total payroll for wages and salaries. These percentages will not apply in the following cases:

Employers may request waivers for the percentages related to the number of foreign employees and their share of the company's payroll in those cases involving:

Sector:
Professional Services

Sub-Sector:
Legal services

Industry Classification:
CPC 8613
CPC 8619

Type of Reservation:
National Treatment (Articles 803, 903)

Measures:
Decreta Ley N° 26002, Diario Oficial El Peruano del 27 de diciembre de 1992, Ley del Notariado. Articulo 5 (modificado por Ley N° 26741) y articulo 10 (modificado por Ley N° 27094)

Description:
Investment and Cross-Border Trade in Services

Only a Peruvian national by birth may supply notary services.

Sector:
Professional Services

Sub-Sector:
Architectural Services

Industry Classification:
CPC 8671
CPC 8674

Type of Reservation:
National Treatment (Articles 803, 903)

Measures:
Ley N° 14085, Diario Oficial "El Peruano" de 30 de junio de 1962, Ley de Creaci6n del Colegio de Arquitectos del Peru
Ley N° 16053, Diario Oficial "El Peruano" del 14 de febrero de 1966, Ley del Ejercicio Profesional, Autoriza a los Colegios de Arquitectos e Ingenieros del Peru para supervisar a los profesionales de Ingenieria y Arquitectura de la Republica, articulo 1
Acuerdo del Consejo de Arquitectos, del6 de octubre de 1987

Description:
Investment and Cross-Border Trade in Services

To practice as an architect in Peru, an individual must join the "Colegio de Arquitectos" and pay a fee in accordance with the following schedule:

Also, to obtain temporary registration, non-resident foreign architects must have a contract of association with a Peruvian architect residing in Peru.

Sector:
Professional Services

Sub-Sector:
Auditing Services

Industry Classification:
CPC 862

Type of Reservation:
National Treatment (Articles 803, 903)
Local Presence (Article 907)

Measures:
Reglamento Interno del Colegio de Contadores Publicos de Lima, articulos 145 y 146

Description:
Investment and Cross-Border Trade in Services

Auditing societies shall be constituted only and exclusively by public accountants licensed and resident in the country and duly qualified
by the "Colegio de Contadores Publicos de Lima". No partner may be a member of another auditory society in Peru.

Sector:
Security Services

Sub-Sector:

Industry Classification:
CPC 873

Type of Reservation:
National Treatment (Article 903)
Senior Management and Boards of Directors (Article 806)

Measures:
Decreta Supremo N° 005-94-IN, Diario Oficial "El Peruano" del12 de mayo de 1994, Reglamento de Servicios de Seguridad Privada, articulos 81 y 83

Description:
Investment and Cross-Border Trade in Services

Persons hired as security guards must be Peruvian by birth.

Senior managers of enterprises that supply security services must be Peruvian by birth and residents of Peru.

Sector:
Recreational, cultural and sporting services

Sub-Sector:
National artistic production services

Industry Classification:
CPC 96

Type of Reservation:
National Treatment (Article 903)

Measures:
Ley N° 28131, Diario Oficial "El Peruano" del 18 de diciembre de 2003, Ley del Artista, Interprete y Ejecutante, articulos 23 y 25

Description:
Cross-Border Trade in Services

Any domestic artistic live performances must be comprised at least of 80 per cent of national artists.

National artists shall receive no less than 60 per cent of the total payroll for wages and salaries paid to artists.

The same percentages established in the preceding paragraphs shall govern the work of technical personnel involved in artistic activities.

Sector:
Recreational, cultural and sporting services

Sub-Sector:
Circus services

Industry Classification:
CPC 96194

Type of Reservation:
National Treatment (Article 903)

Measures:
Ley No. 28131, Diario Oficial "El Peruano" del 18 de diciembre de 2003, Ley del Artista, Interprete y Ejecutante, articulo 26

Description:
Cross-Border Trade in Services

A foreign circus may stay in Peru with its original cast for a maximum of 90 days. This period may be extended for the same period of time. If it is extended, the foreign circus will include a minimum of 30 per cent Peruvian nationals as artists and 15 per cent Peruvian nationals as technicians. The same percentages shall apply to the payroll of salaries and wages.

Sector:
Commercial Advertising Services

Sub-Sector:

Industry Classification:

Type of Reservation:
National Treatment (Article 903)

Measures:
Ley No. 28131, Diario Oficial "El Peruano" del 18 de diciembre de 2003, Ley del Artista, Interprete y Ejecutante, articulos 25 y 27.2

Description:
Cross-Border Trade in Services

Commercial advertising produced in Peru, must have at least 80 per cent of national artists.

National artists shall receive no less than 60 per cent of the total payroll for wages and salaries paid to artists.

The same percentages established in the preceding paragraphs shall govern the work of technical personnel involved in commercial advertising.

Sector:
Recreational, cultural and sporting services

Sub-Sector:
Bullfighting

Industry Classification:

Type of Reservation:
National Treatment (Article 903)

Measures:
Ley N° 28131, Diario Oficial "El Peruano" del 18 de diciembre de 2003, Ley del Artista, Interprete y Ejecutante, articulo 28

Description:
Cross-Border Trade in Services

At least one bullfighter of Peruvian nationality must participate in any bullfighting event. At least one apprentice bullfighter of Peruvian nationality must participate in fights involving young bulls.

Sector:
Customs Warehouses Services

Sub-Sector:

Industry Classification:

Type of Reservation:
Local Presence (Article 907)

Measures:
Decreta Supremo N° 08-95-EF, Diario Oficial "El Peruano" del5 de febrero de 1995, Aprueban el Reglamento de Almacenes Aduaneros, articulo 7

Description:
Cross-Border Trade in Services

Only natural or juridical persons domiciled in Peru may apply for an authorization to operate a customs warehouse.

Sector:
Telecommunications

Sub-Sector:

Industry Classification:

Type of Reservation:
National Treatment (Article 903)

Measures:
Decreta Supremo N° 027-2004-MTC, Diario Oficial "El Peruano" de 15 de julio de 2004, Texto Unico Ordenado del Reglamento General de la Ley de Telecomunicaciones, articulo 269

Description:
Cross-Border Trade in Services

Call-back, understood as being the offer of telephone services for the realization of attempts to make calls originating in the country with the objective of obtaining a return call with an invitation to dial, coming from a basic telecommunications network located outside the national territory, is prohibited.

Sector:
Transport

Sub-Sector:
Air Transport

Industry Classification:

Type of Reservation:
National Treatment (Article 803)
Senior Management and Boards of Directors (Article 806)

Measures:
Ley N° 27261, Diario Oficial "El Peruano" del10 de mayo de 2000, Ley de Aeromiutica Civil, articulos 75 y 79

Decreta Supremo N° 050-2001-MTC, Diario Oficial "El Peruano" del 26 de diciembre de 2001, Reglamento de la Ley de Aeromiutica Civil, articulos 147, 159, 160 y VI Disposici6n Complementaria

Description:
Investment

National Commercial Aviation is reserved to a Peruvian natural or juridical person.

For purposes of this entry, a Peruvian juridical person is an enterprise that fulfils the following requirements:

In those operations conducted by Peruvian service providers ("explotadores nacionales"), personnel performing aeronautical functions on board must be Peruvian nationals. The Directorate General of Civil Aviation may, for technical reasons, authorize foreign personnel to perform these functions for a period not to exceed six months from the date on which the authorization was granted. This time period may be extended if there is proof of a shortage of trained personnel.

The General Directorate of Civil Aviation, upon providing proof of a shortage of Peruvian aviation personnel, may authorize non-resident foreign personnel to pilot airplanes and to train Peruvian aviation personnel for a period of up to six months, which may be extended if there is proof of a shortage of Peruvian personnel.

Sector:
Transport

Sub-Sector:
Aquatic Transport

Industry Classification:
CPC 72

Type of Reservation:
National Treatment (Articles 803, 903)
Local Presence (Article 907)
Senior Management and Boards of Directors (Article 806)

Measures:
Ley N° 28583, Ley de Reactivaci6n y Promoci6n de la Marina Mercante Nacional, Diario Oficial "EL Peruano" del22 de julio de 2005, articulos 4.1, 6.1, 7.1, 7.2. 7.4,13.6

Decreta Supremo N° 028 DE/MGP, Diario Oficial "El Peruano" del 25 de mayo de 2001, Reglamento de la Ley N° 26620, articulo 1-010106, literal a)

Description:
Investment and Cross-Border Trade in Services

1. A "National shipowner" or "National Ship Enterprise" is understood as a natural person of Peruvian nationality or juridical person constituted in Peru, with its principal domicile and real and effective headquarters in Peru, whose business is to provide water transportation services in national traffic or cabotageFootnote 2 and/or international traffic and who is the owner or lessee under a financial lease or a bareboat charter, with an obligatory purchase option, of at least one Peruvian flag merchant vessel and that has obtained the relevant Operation Permit from the General Aquatic Transport Directorate.

2. At least 51 per cent of the subscribed and paid-in capital stock must be owned by Peruvian citizens.

3. The chairman of the board of directors, the majority of the directors, and the General Manager must be Peruvian nationals and residents in Peru.

4. Peruvian-flagged vessels must have a Peruvian captain and the crew must have at least 80 per cent of Peruvian nationals authorized by the "Direcci6n General de Capitanias y Guardacostas". In exceptional cases and after ascertaining that there is no Peruvian qualified captain with experience in that type of vessel available, a foreign national may be authorized to serve as captain.

5. Only a Peruvian national may be a licensed harbor pilot.

6. Cabotage is exclusively reserved to Peruvian flagged merchant vessels owned by a National Shipowner or National Ship Enterprise or leased under a financial lease or a bareboat charter, with an obligatory purchase option, except that:

Sector:
Transport

Sub-Sector:
Aquatic Transport

Industry Classification:
CPC 72

Type of Reservation:
National Treatment (Articles 803, 903) Local Presence (Article 907)

Measures:
Decreta Supremo N° 056-2000-MTC, Diario Oficial "El Peruano" del31 de diciembre de 2000. Disponen que servicios de transporte maritima y conexos realizados en bahias y areas portuarias deberan ser prestados por personas naturales y juridicas autorizadas, con embarcaciones y artefactos de bandera nacional,
articulo 1

Resolucion Ministerial N° 259-2003-MTC/02, Diario Oficial "El Peruano" del 4 de abril de 2003. Aprueban Reglamento de los servicios de Transporte Acuatico y Conexos Prestados en Trafico de Bahia y Areas Portuarias, articulos 5 y 7

Description:
Investment and Cross-Border Trade in Services

The following water transport and related services supplied in bay and port areas must be supplied by natural persons domiciled in Peru, and juridical persons constituted and domiciled in Peru, properly authorized with Peruvian flag vessels and equipment:

Sector:
Transport

Sub-Sector:
Aquatic Transport

Industry Classification:
CPC 72

Type of Reservation:
Local Presence (Article 907)

Measures:
Resoluci6n Suprema N° 011-78-TC-DS, del 6 de febrero de 1978, Reglamento de Empresas de Transporte Turistico

Description:
Cross-Border Trade in Services

Only natural persons domiciled in Peru or juridical persons constituted and domiciled in Peru may provide tourist water transportation services.

Sector:
Transport

Sub-Sector:
Aquatic Transport

Industry Classification:
CPC 72

Type of Reservation:
National Treatment (Article 903)

Measures:
Ley N° 27866, Diario Oficial "El Peruano" del 16 de noviembre de 2002, Ley del Trabajo Portuario, articulos 3y7

Description:
Cross-Border Trade in Services

Only Peruvian citizens may register in the Registry of Port Workers.

Sector:
Transport

Sub-Sector:
Land Transport of Passengers

Industry Classification:
C PC 71

Type of Reservation:
Local Presence (Article 907)

Measures:
Decreta Supremo N° 009-2004-MTC, Diario Oficial "El Peruano" del 27 de febrero de 2004, Reglamento Nacional de Administraci6n de Transportes, articulos 47 y48

Description:
Cross-Border Trade in Services

A supplier of land transport services in Peru must certify in writing that it maintains ground terminals, route stations, stops, and administrative offices in the territory of Peru, according to the corresponding transport services.

The transport enterprise must have its own installations, or those of third parties, properly maintained for the management of the enterprise, which will constitute its legal domicile, where the competent authority can conduct the inspections and verifications it deems necessary.

Sector:
Transport

Sub-Sector:
Land transport

Industry Classification:
CPC 71

Type of Reservation:
National Treatment (Article 903)

Measures:
The "Acuerdo sobre Transporte Intemacional Terrestre", signed between the Governments of the Republic of Chile, the Republic of Argentina, la Republica de Bolivia, la Republica Federativa de Brasil, la Republica del Paraguay, la Republica del Peru y la Republica Oriental del Uruguay- ATIT, signed in Montevideo January 1, 1990

Description:
Cross-Border Trade in Services

Foreign vehicles allowed by Peru, in conformity with the ATIT, which carry out international transportation by road, will not be able to provide local transport (cabotage) in the Peruvian territory.

Sector:
Research and Development Services

Sub-Sector:
Archaeological Services

Industry Classification:
CPC 852
CPC 853

Type of Reservation:
National Treatment (Article 903)

Measures:
Resoluci6n Suprema No. 004-2000-ED, Diario Oficial "El Peruano" del25 de Enero de 2000, Reglamento de Investigaciones Arqueol6gicas, articulo 30

Description:
Cross-Border Trade in Services

Archaeological research projects headed by foreign archaeologists must count on a Peruvian archaeologist registered in the National Registry of Archaeologists for the scientific co-direction or sub-direction of the project. The co-director and sub-director shall participate in the integral execution of the project (field and office work).

Sector:
Services Related to Energy Services

Sub-Sector:

Industry Classification:

Type of Reservation:
National Treatment (Article 903)
Local Presence (Article 907)

Measures:
Ley N° 26221, Diario Oficial "El Peruano" del 19 de agosto de 1993, Ley General de Hidrocarburos, articulo 15

Description:
Cross-Border Trade in Services

In order to enter into an exploration contract in Peru, foreign natural persons must register in the Public Registry and provide a power of attorney to a Peruvian national resident in the capital of the Republic of Peru.

Foreign enterprises must establish a branch or constitute a society under the Ley General de Sociedades, be domiciled in the capital of the Republic of Peru, and appoint a Peruvian national as an executive agent.

Date Modified: