Peru: INDECOPI eliminates the ban on the use of octagon adhesives in imported processed foods as a non-tariff trade barrier

24 Apr 2023    2 minute read

In brief

The International Trade team of Estudio Echecopar, associated with Baker & McKenzie International, obtained an important decision in favor of several importers of processed food and non-alcoholic beverages, members of the Lima Chamber of Commerce (CCL), after the Court for the Defense of Competition and Protection of Intellectual Property (INDECOPI) ratified that the prohibition on the use of octagon adhesives in imported processed food constitutes a non-tariff trade barrier.

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In depth

With this important decision, only the complainants will be able to implement the system of advertising warnings of the regulatory framework for healthy food ("octagon adhesives"), through the use of stickers on their imported products.

The INDECOPI Court determined that the Ministry of Health (MINSA):

  1. Did not recognize — prior to the establishment of said prohibition — the existence of a problem that the referred measure intended to solve, nor its suitability to do so.
  2. Has not demonstrated that, prior to the imposition of the denounced prohibition, it had carried out a cost-benefit analysis of the positive and negative impacts that the denounced measure would generate for the economic agents obliged to comply with it, as well as for other affected parties and/or for the competition in the market.
  3. Has not supported that the measure in question is the least burdensome in comparison with other alternative measures.

INDECOPI reached these conclusions by dismissing the reports submitted by MINSA, including those of the Pan American Health Organization (PAHO), as untimely and unrelated to protecting public health through the prohibition of adhesives.

Thus, MINSA will not be able to require the direct printing of octagon adhesives on the products imported by the complainants when the extension of the use of adhesives comes to an end on 30 June 2023.

We commend the Commission on Dumping, Subsidies and Non-Tariff Trade Barriers and the INDECOPI Court for its decision that allows proper regulation of healthy food (octagons), avoiding cost overruns and restrictions to companies to the detriment of Peruvian consumers.

In case your company has not denounced this measure and needs to comply with INDECOPI's decision, you may contact the team in charge of this matter.

We hope that this information will be of relevance to you and your company. If you require any further information, do not hesitate to contact us.

Click here to access the Spanish version.

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Gonzalo Bernal
Partner
Lima
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gonzalo.bernal@bakermckenzie.com

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