On 1 March 2023, a multisectoral committee issued Supreme Decree No. 008-2021-MINCETUR ("Decree"), which provides for the non-application of definitive safeguard measures on imports of clothing entered under chapters 61, 62 and 63 of the National Customs Tariff. The multisectoral committee is composed of the Ministry of Economy and Finance, the Ministry of Production and the Ministry of Foreign Trade and Tourism ("Multisectoral Committee") and is the final instance authority for safeguard investigations.
The Multisectoral Committee adopted its decision after concluding that the Report1 issued by the Commission on Dumping, Subsidies and Elimination of Non-Tariff Trade Barriers of INDECOPI ("Commission") did not comply with the requirements of the World Trade Organization Agreement on Safeguards or with Supreme Decree No. 020-98-ITINCI for the application of definitive safeguard measures.
The Multisectoral Committee found that the Commission had not taken into consideration the breadth and heterogeneity of the investigated products, the existence of a group of tariff subheadings that did not show an increase in the amount of imported product or other conditions that could cause serious injury to national production, or the lack of such serious injury.
This pronouncement sets a precedent in safeguard matters. The methodology to initiate an investigation should not be arbitrary and it should specifically identify that the increased amount of investigated product in the local market has directly affected the local industry.
We hope that this information will be of relevance to you and your company.
Estudio Echecopar represented several importing companies in this investigation, participating directly in the oral report where it was stated that the application of this measure was contrary to trade and national and international standards (WTO and Andean Community).
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1 Report No. 042-2022/CDB-INDECOPI
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