FE521 A Primer on Exporting to Peru1 Christina D. Storz, Timothy G. Taylor, and Gary F. Fairchild2 1. This is EDIS document FE521, a publication of the Department of Food and Resource Economics, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL. Published February 2005. Please visit the EDIS website at http://edis.ifas.ufl.edu. 2. Christina D. Storz, Research Assistant; Timothy G. Taylor, Professor; and Gary F. Fairchild, Professor, Department of Food and Resource Economics, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL. The Institute of Food and Agricultural Sciences is an equal opportunity/affirmative action employer authorized to provide research, educational information and other services only to individuals and institutions that function without regard to race, color, sex, age, handicap, or national origin. For information on obtaining other extension publications, contact your county Cooperative Extension Service office. Florida Cooperative Extension Service/Institute of Food and Agricultural Sciences/University of Florida/Christine Taylor Waddill, Dean. Introduction Every year the U.S. Department of State publishes extensive Country Commercial Guides for a large number of countries. These guides provide a great deal of information useful to individuals interested in developing export markets either through direct exports or through direct foreign investment. This paper provides an abridged version of the Country Commercial Guide for Peru as well as supplemental information of direct relevance to agribusiness firms. It is hoped that the information contained in this report provides a useful starting point for individuals interested in exploring export or investment opportunities in Peru. Note: County Commercial Guides are available for U.S. exporters from the National Trade Data Bank's CD-ROM or via the Internet. Please contact Stat-USA by telephone (1-800) STAT-USA for more information. Country Commercial Guides can be accessed via the World Wide Web at http://www.stat-usa.gov, http://www.state.gov, and http://www.mac.doc.gov. They can also be ordered as a hard copy or on diskette from the National Technical Information Service (NTIS) by telephone (1-800) 553-NTIS. American exporters seeking general export information/assistance and country-specific commercial information should contact the U.S. Department of Commerce, Trade Information Center by telephone (1-800) USA-TRADE; or by fax (202) 482-4473. Economic and Political Overview President Toledo has sought to place the country on the path to economic recovery, strengthen democratic institutions, and restore its image in the international community. Progress has been mixed: strong macroeconomic growth has yet to trickle down to the poorer classes and, while democratic institutions are being strengthened, much remains to be done, particularly with respect to the judiciary. Toledo's greatest successes have been on the international stage, where Peru is lauded for its economic performance, championing of democracy, respect for human rights and firm stance against international terrorism. Peru's dynamic economic performance in 2002 contrasted sharply with turmoil elsewhere in South America. The country led the Southern Hemisphere with 5.3% real growth, driven by investment, domestic demand, and exports. The GDP (Gross Domestic Product) reached US$56.9 billion. Inflation was low at 1.5%, the currency slid 2.3% over the year, and Lima's unemployment fell to 8.5%. Fiscal
A Primer on Exporting to Peru 2 accounts stayed under control, although the deficit hit 2.2% of GDP (above the original target of 1.9%). Foreign reserves grew by over US$1 billion to close the year at US$9.6 billion. External debt equaled 49.2% of GDP. Over the past decade, Peru has been transformed by market-oriented economic reforms and privatizations, and has met many of the conditions for long-term growth. Banking and retail services, agriculture, mining, manufacturing, and fishing are key economic sectors. After bad weather conditions and the emerging market's financial crisis battered the economy in 1999, growth reached 3.1% in 2000. The collapse of the Fujimori government and ensuing political instability discouraged investment, however, and GDP grew only 0.2% in 2001. In 2003, however, growth slowed slightly, with GDP expanding at a 4.5% annual rate. Consensus estimates for GDP growth for the year dropped to 3.7%, with mining, energy, and construction growth slowing to 4% due to low domestic demand. Trade increased about 4%. The government of Peru expected growth to accelerate to 5% in 2004, dependent on a recovery in investment and continued strong export growth. Peruvian exports reached US$7.69 billion in 2002, with imports of US$7.43 billion, producing the country's first trade surplus in 11 years. The U.S.-Andean Trade Promotion and Drug Eradication Act (ATPDEA) benefits may propel exports above US$8.1 billion in 2003. Peru's major trading partners are the United States, the European Union, Japan, Colombia, Brazil, China, and Venezuela. Over 25% of Peruvian exports are destined for the United States, while 30% of Peruvian imports come from the United States. Exports include fish, copper, zinc, gold, petroleum, coffee, sugar, and textiles and apparel. Imports include machinery, vehicles, processed food, petroleum, and steel. Peru belongs to APEC and the (World Trade Organization (WTO) and actively participates in Free Trade Area in the Americas (FTAA) negotiations. Peru's registered stock of foreign direct investment (FDI) is over US$11 billion, with the United States, the United Kingdom, and Spain the leading investors. FDI is concentrated in privatized sectors (e.g., mining, electricity, and telecommunications). The agricultural sector shows great promise. Best prospects for agricultural products are hard red wheat, yellow corn, soybean meal, dairy products (whey and cheese), and pet food. Exporting fresh asparagus (a recently developed export item) has been a principal reason for Peru's explosion in non-traditional exports since 1997. Nevertheless, the agricultural sector is plagued with uncertainty stemming from poor progress on land titling, lack of credit, and inefficiencies that make competition on a world scale difficult. Legislation on land and water rights has been pending for a number of years. Consequently, the sector lacks sufficient domestic and foreign investment to develop properly. Marketing U.S. Products and Services There are a number of factors that should be considered in exporting products to Peru. This section provides a brief overview of many critical factors that must be considered. Establishing a Business Foreign corporations interested in doing business in Peru on a permanent basis must be formally incorporated and registered in the Peruvian Mercantile Registry. Real estate may be acquired by any foreign entity without the need to establish an office. It is only necessary to vest a local individual with sufficient powers to conduct and close the sale. There are two main forms of business organization that can be used for these purposes: branch offices or incorporated subsidiaries. Closed corporations (SAC), open corporations (SAA), and limited liability companies (sociedad comercial de responsabilidad limitada) are other forms of business organization that can be used. For more information on setting up a company in Peru visit the web pages of the American Chamber of Peru (AmCham), Proinversion, and the Ministry of Foreign Affairs. Distribution / Sales Channels The population of Peru is extremely centralized, with 30% of all inhabitants living in the capital city of Lima. Therefore, most sales occur in Lima, but opportunities exist in other major population centers,
A Primer on Exporting to Peru 3 which should be part of an overall marketing strategy. Representatives in Lima typically have sales agents in these cities, covering sales opportunities in the provinces. The most common method of distribution is the appointment of a qualified representative. Appointing an agent or distributor is advisable if your company is serious about developing the market on a sustained basis. At present, U.S. companies are having good success in locating qualified local agents. An alternative approach to distribution is to establish a local subsidiary or branch office. This method allows for effective service and more aggressive promotion of your product. Expenses for commercial and industrial space are relatively high in the Lima area, however, making this an expensive option. Agents / Distributors: Finding a Partner Peruvian law does not require the use of local distributors for private sector commercial sales. However, for sales to the government, you should contract and register a local agent. It is also advisable to have a representative on the ground to keep up with the latest opportunities and developments. You should be thorough in the selection of an agent or a representative. You may wish to take advantage of relevant U.S. Department of Commerce services by contacting your local Commercial Service Export Assistance Center (EAC) in the United States.Services include the International Partner search (IPS), which helps identify interested agents and distributors; the Gold Key Service (GKS), which identifies potential distributors and arranges meetings for you with them; and the International Company Profile (ICP), which reports on the credit and business history of individual companies. Direct Marketing Direct marketing is fairly well established in Peru in the service sector, especially among financial institutions and seminar organizers. One common practice is to hire personnel for telemarketing and mailing campaigns, or to contract these services from specialized firms. Databases for direct marketing are zealously guarded and thus are not freely available. Nevertheless, commercial information can be obtained through Peru's chambers of commerce and trade associations. Catalog sales for consumer goods in Peru are limited because of the high degree of mistrust in the quality of the product, difficulty in obtaining warranty support, and less than universal acceptance of credit card orders. Franchising Franchising operations experienced significant growth from 1997 to 1999, which has moderated in recent years. Approximately 70 Peruvian and foreign franchise businesses now operate in Peru. This industry generates an estimated 3,250 direct jobs and accounts for sales reaching US$375 million. The United States is the leading franchiser, with more than 70% of the market, mostly in food services. There is no special legislation for franchising. Franchises in Peru are subject to general commercial law, Decision 486, Decision 291 of the Andean Community, and the general antitrust law.to Articles 162 through 164 of Decision 486 a written license agreement must be registered at the patents and trademarks office (INDECOPI). Prospective franchisers need to be aware of a withholding income tax on royalties (30%), value-added tax of 19% (paid by the local company), and import tariffs (average 11%). Joint Ventures / Licensing Peruvian law allows for joint ventures and licensing agreements with a legally established local partner who is accountable for all legal matters. Peru has largely integrated itself into the global commercial network, making it an attractive destination for joint ventures and licensing agreements. This is especially true in activities where there is local manufacturing or finishing assembly capacity and the U.S. product's market price is strongly affected by shipping costs.
A Primer on Exporting to Peru 4 Selling Factors / Techniques One of the most important selling factors in Peru is price. Price competitive products from Asian countries (e.g., Taiwan and Korea) far outsell more expensive European or North American consumer products such as consumer electronics, appliances and automobiles. However, with investment in sales promotion and service infrastructure, U.S. goods can be competitive. Dependability becomes more influential in purchases of capital goods, notably advanced electronics and construction machinery. Consumers often prefer more expensive U.S. or European products based on quality, durability, technology, customer support, and regional service. Advertising / Trade Promotion Lima boasts 30 daily newspapers, a few of which strive for national coverage. First in influence and national readership is El Comercio (Peru's oldest paper), with more than 160 years of continuous publication. Radio enjoys the largest audience of all communications media, reaching even the most isolated populations in Peru. It is often the first source of current news, and is the principal vehicle for transmitting information about local issues and events outside of Lima. In all, there are close to 1,000 radio stations in Peru, broadcasting on AM, FM, and short-wave frequencies. Radio's most influential source of news and information is Radio Programas del Peru (RPP). With transmitters and correspondents in virtually every important city in Peru, RPP constitutes Peru's only true national radio network. Television permeates the urban environment in Peru and has become increasingly available to rural audiences as well. As in the United States, television is often the primary source of news for a majority of those who have access to it. The most important players in Television are the six Lima-based television networks, along with a government-owned service. Cable television has also begun to make inroads into the Peruvian market, with 65 cable TV and MMDS companies serving approximately 400,000 homes in different areas of Peru. The main cable service companies are Telefonica del Peru (350,000 subscribers) and Corporacion Vicmar S.A., Panama (less than 20,000 subscribers). Sales Service / Customer Support Peruvians consider service and support a critical factor in making the final purchasing decision, especially for products that require periodic servicing. It is important for the product to be sold through a reliable distributor that offers quality and services the client requires. For example servicing and availability are currently the two perceived advantages that new Asian automobiles enjoy over their U.S. competitors in the Peruvian market. Another example is mining equipment, where the U.S. equipment after-sale service enjoys a superior reputation to that of third-country competitors. Product Pricing In general, Peru enjoys a very open market, with trade restrictions at a minimum. The weighted average tariff is 10.7%. Distributor mark-up varies according to type of product, but usually ranges between 12% and 25%. All imports are subject to a 19% value-added local sales tax, which can be used as a tax credit by the importer. Imports of US$5,000 or more are also subject to pre-shipment inspection (PSI), which must be performed by one of the three certified PSI companies. Selling to the Government To sell to the government of Peru, U.S. companies may participate in a bid process, but if awarded, need to be registered locally in order to sign a contract. This can be done by establishing a local office or through a representative. If the latter, the local representative has to provide credentials indicating it is a legitimate representative of the U.S. company. This can be done by a letter, notarized by the Peruvian Consulate in the United States and then registered with the Peruvian Foreign Affairs Ministry and at the Peruvian Mercantile Registry.
A Primer on Exporting to Peru 5 IPR Infringement Protection Protection of intellectual property rights (IPR) in Peru has improved over the past decade, but still falls short of U.S. and international standards in several areas. After two years on the U.S. government's Priority Watch List under the Special 301 provisions of the 1988 Trade Act, Peru was lowered to the Watch List in 2001, following steps on the part of Peru's government to address IPR piracy. Peru remains on the Watch List due to concerns about continued high rates of copyright piracy and inadequate enforcement of IPR laws, particularly with respect to the relatively weak penalties that have been imposed on IPR violators. Other factors contributing to continued placement on the Watch List include Peru's revocation of second-use patent protection for pharmaceuticals and a lack of protection for confidential test data that is submitted for the marketing approval of pharmaceutical and agrochemical products. Need for a Local Attorney Obtaining local legal counsel is highly recommended for doing business in Peru. Potential investors should contact an attorney to understand the legal framework for investments found in the Foreign Investment Promotion Law, the Framework Law for Private Investment, the Law for the Promotion of Private Investment in State-Owned Companies, and the Law for the Promotion of Private Investment in Public Utility Facilities. In the event of a dispute, national or international arbitration may be used, but only if agreed to by the parties in an agreement or contract before the dispute arises. Arbitration cannot be imposed unilaterally after the fact as a means to resolve controversies or disputes. Please contact CS Lima to discuss arbitration venue options, as one of the leading centers has had some complaints. Performing Due Diligence / Checking Bona Fides American businesses considering exporting to or investing in Peru should perform due diligence in dealing with potential clients, associates, or partners. As a first step, the International Company Profile (ICP) program of the U.S. Commercial Service can provide a background check on the reliability of potential clients or partners. The ICP report includes information on a company's owners, year established, size, sales, financial information, and reputation in the market. The Commercial Service and the Economic Section of the Embassy in Peru are also available to provide commercial and economic briefings to U.S. businesspersons traveling to Peru. Agribusiness Industry Prospects Hard Wheat Peru produces about 170,000 metric tonnes (MT) of soft wheat, which is used locally for traditional foods, and is not sold into processing channels. Most wheat is processed into flour for bread and pasta. American wheat holds about 40% of the market. Wheat imports are assessed 25% duties plus 18% value-added tax. Yellow Corn Consumption of yellow corn is mainly for poultry production. At about 24 kilograms per capita, consumption of poultry meat is one of the highest in the region. A small market for high oil corn exists, which should grow in the near term. Peru imports corn from Argentina and the United States. Corn imports will probably fall some in the near future as a result of governmental efforts to encourage local production. Corn imports are assessed 12% duties plus a variable levy, depending on the international price. Soybean Meal Peru imports soybean meal for poultry feed. Peru's main soybean meal suppliers are Argentina, Brazil, Paraguay, and the United States. Peru has recently reduced import tariffs for soybean meal from 12% to 4%, effectively reducing the effects of tariff preferences agreements with countries in the region. Whey Peru whey supply, which is mainly used as a food ingredient, is mostly imported. Though the use of whey in government feeding program has been banned since May of 2002, imports are still growing
A Primer on Exporting to Peru 6 at about 3% per year. Major imports come from France, especially demineralized whey, and the United States, with market shares of 35% and 29%, respectively. Cheese Per capita cheese consumption is only 360 grams per annum. Market size was forecasted to increase about 2% in 2003. The target market for imported cheese is the middle and high income segments. In 2002, the United States accounted for 27% of total cheese imports to Peru, followed by Argentina at 23% and the Netherlands at 11%. Pet Food Pet food main suppliers in 2002 were Brazil and the United States, at 45% and 33%, respectively. Brazil increased its market share by 5%, while the United States lost 17% of its market share due to imports from Argentina. Although Brazil and Argentina have a comparative advantage because of their proximity, U.S. foods are regarded as better quality. Trade Regulations and Standards Trade Barriers Peru imposes 4% duties on 23% of the items on its tariff schedule; 7% duties on 15% of the items; 12% duties on 45% of the items; 20% duties on 11% of importable items (some agricultural products); and 25% duties on 5% of the items (mainly agricultural products). The non-weighted average tariff is 10.9% (including surcharge), down from over 60% in mid-1990. Most imports are also subject to a 19% value-added tax, as are domestically produced goods. In addition, an excise tax (ISC) is applied to certain products (e.g., automobiles). There are no quantitative import restrictions. Customs Valuation The Peruvian Customs Authority has been reformed and modernized over recent years with help from the World Bank and the United Nations' Development Program. As a result, Customs procedures are almost completely automated. However, some U.S. exporters continue to encounter problems with Peruvian Customs. For Customs information, contact the Superintendencia Nacional de Administracion Tributaria; nAv. Garcilaso de la Vega 1472; Lima, Peru (telephone 511-315-3300; fax 511-315-3318) or nMs. Nahil Hirsch, National Superintendent, or nClara Loza, General SecretarySuperintendencia Nacional Adjunta de Aduanas; nAv. Gamarra 680,;Chucuito, Callao, Peru (telephone 511465-5885, or 511-469-0058; fax 511-465-3221) nPedro Zavaleta is the Deputy Superintendent of Customs. Standards The government has no specific standards required for imports. Some industry standards are being developed in the private electronics and construction industries. Peru's consumer watchdog agency, INDECOPI, has a small standards office to develop and enforce Peruvian product standards. Labeling Requirements Labeling requirements are relatively simple. Products normally retain their original labels and the name and taxpayer identification number (RUC) of the importer/distributor must be added to the packaging. The Consumer Protection Office within INDECOPI is responsible for food and beverage labeling inspection and advertising. Food label contents must include at least the name of the product; food additives and ingredients; manufacturer's name and address; number of sanitary registration; expiration date and lot code or key; net weight or volume of the content; country of origin; and use instructions, if applicable. Imported packed foods must carry a separate adhesive label with the correspondent Spanish translation that includes the importer's name, commercial name and address, telephone number, and RUC.
A Primer on Exporting to Peru 7 Temporary Entry Provisions Goods can be admitted into Peru temporarily for re-export within a year with a bond that guarantees the duties and taxes. Other documentation requirements are the same as those listed above. Import Controls There are no import license requirements for agricultural products, except ammonium nitrate fertilizer, which has been used as a blast enhancer for terrorist car bombs. For imports, Customs (ADUANAS) requires a Customs Unique Declaration (DUA); a commercial invoice; an airway bill or bill of lading; a packing list; an insurance letter; and for items worth more than US$5,000, a certificate of inspection done prior to shipment. If the product is imported from the Andean Community (Colombia, Venezuela, Ecuador, and Bolivia), a certificate of origin is required to qualify for tariff preferences. A food sanitary registry is required for food processed products (issued by DIGESA), or a Sanitary Certificate for animal, plants, or their by-products (issued by SENASA). Very few items have been prohibited from importation in recent years. Membership in Free Trade Agreements Peru has been a member of the Andean Community since 1969. In January of 2002, the five member countries of the Andean Community agreed to establish an Andean free trade zone, a common external tariff (CET), and a Customs harmonization policy by 2004. As part of the Andean Community, Peru has participated in negations to establish a free trade area with MERCOSUR. Bilateral trade agreements have been signed with Argentina, Brazil, Chile, Cuba, Mexico, Paraguay, and Uruguay. Peru is a member of the Asia Pacific Economic Cooperation (APEC) forum. Peru is also an active participant in the preparations to establish a FTAA by 2005 and currently serves as chair of the FTAA Negotiating Group on Competition Policy and vice-chair of the Committee of Government Representatives on Civil Society. Investment Climate in Brief The Peruvian government seeks to attract investment in nearly all sectors of the economy. As a sign of this commitment, in April of 2002 the government created a single agency (ProInversion) aimed at promoting investment and creating a one-stop shop for current and potential investors. The Peruvian government does not screen foreign direct investment, but foreign investors must register with ProInversion (Peru's investment agency) to obtain the guarantee that they will be able to repatriate capital, profits, and royalties. Under Peru's Constitution, foreign interests cannot acquire or possess, under any title, mines, lands, forests, waters, or fuel or energy sources within 50 kilometers of Peru's international borders. However, foreigners can obtain concessions and rights within the restricted areas with the authorization of a supreme resolution approved by the Cabinet. In 1991, the Peruvian government began an extensive privatization program, encouraging foreign investors to participate. From 1991 through 2002, privatization revenues totaled US$9.8 billion, of which foreign investors were responsible for the vast majority. Foreign investors have the same rights as national investors to benefit from any investment incentives (e.g., tax exemptions). Under Article 64 of the 1993 Constitution, the Peruvian government guarantees the freedom to hold and dispose of foreign currency; hence, there are no foreign exchange controls in Peru. According to the Constitution, the Peruvian government can only expropriate private property on public interest or national security grounds. Any expropriation requires the passage of a specific act of Congress. Dispute settlement continues to be problematic in Peru. In principle, secured interests in property, both chattel and real, are recognized. However, the judicial system is often extremely
A Primer on Exporting to Peru 8 slow to hear cases and to issue decisions. In addition, court rulings and the degree of enforcement have been difficult to predict. Peru offers both foreign and national investors legal and tax stability agreements to stimulate private investment. These agreements guarantee that current statutes on income taxes, remittances, export promotion regimes (e.g., drawback), administrative procedures, and labor hiring regimes will remain unchanged for that investment for 10 years. There are no performance requirements that apply exclusively to foreign investors. Foreign and domestic entities are generally permitted the right to establish and own business enterprises and to engage in most forms of remunerative activity. Peru remains on the Watch List due to concerns about continued high rates of copyright piracy and inadequate enforcement of IPR laws, particularly with respect to the relatively weak penalties that have been imposed on IPR violators. The transparency and independence of regulatory processes has become a central issue for foreign investors in Peru. Many of the central government entities with which foreign firms must deal have procedures that are relatively transparent and predictable. Credit is allocated on market terms and the banking industry in Peru is generally considered to be competitive in offering services to business customers. Foreign investors can obtain credit on the local market. The level of political violence has declined dramatically since 1992, in large part due to the arrest of key terrorist leaders and the government's ongoing counterinsurgency efforts. It is illegal in Peru for a public official or employee to accept any type of outside remuneration for the performance of his or her official duties. Although Peru has not yet negotiated a bilateral investment treaty with the United States, it has signed bilateral investment agreements with 29 countries. Labor is abundant and trainable, although there are shortages of highly skilled workers in some fields, and wages for professional staff are high (sometimes higher than U.S. wages for the same category). Business Customs Travel Advisory and Visas The U.S. Department of State issues Consular Information Sheets for all foreign countries, including Peru. General travel information is also available (telephone 202-647-5225; fax 202-647-3000). Useful information on guarding valuables and protecting personal security while traveling abroad is provided in the U.S. Department of State pamphlet titled A Safe Trip Abroad. This publication and Tips for Travelers to Central and South America are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 20402. A valid U.S. passport is required to enter Peru. It is recommended that business travelers to Peru travel on a tourist visa provided they are not reimbursed for their services while in Peru. However, if any compensation is earned and paid while in Peru, a business visa is required and a tax declaration must be processed before departing Peru. This process takes approximately three days. Travelers should contact the U.S. Consulate General Office; 1625 Massachusetts Avenue, N.W., 6th Floor; Washington, D.C. 20036 (telephone 202-462-1081), or the nearest Peruvian consulate, for visa information. There are Peruvian consulates in Boston, Chicago, Denver, Hartford, Houston, Los Angeles, Miami, New York, Patterson, San Francisco, and Washington D.C. In general, the U.S. Department of State recommends that all U.S. citizens traveling overseas register with the American Citizen Services Unit, Consular Section, of the U.S. Embassy upon arrival. The U.S. Embassy in Peru is located on Avenida La Encalada, Block 17, Monterrico, Lima. The American
A Primer on Exporting to Peru 9 Citizen Services Unit is open from 8:00 a.m. to 12 p.m. on weekdays, except on U.S. and Peruvian holidays. Registrants should bring their U.S. passport plus one photo. There is no fee for this service. Prior registration will facilitate the replacement of a lost or stolen U.S. passport. The loss or theft of a U.S. passport overseas should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. The Embassy has different telephone numbers for business hours and after-business hours (telephone 511-618-2000 during business hours, or 511-618-2936 after business hours). Business Infrastructure Business is conducted in Spanish. Although a great number of executives in the Peruvian business community speak English, it is advisable to have all promotional literature translated into Spanish. Peruvians are formal when engaging in business relations; business suits and ties are the norm. Business hours in Peru are generally from 8:00 a.m. to 5:00 p.m. Breakfast meetings are becoming more common, and business lunches are normally scheduled between the hours of 1:00 p.m. and 3:30 p.m. Some shops and some businesses operate 10:00 a.m. to 1:00 p.m. and 4:00 p.m. to 8:00 p.m., although continuous operation is increasingly common. Business offices are closed on Saturdays. In the provinces, business hours are usually 9:00 a.m. to 1:00 p.m. and 4:00 p.m. to 7:00 p.m. Lima is situated directly south of New York and is in the Eastern Standard time zone; Peru does not follow daylight savings time. Dates are written starting with the day of the month, followed by the month and then the year. The currency is the Nuevo Sol (3.50 soles = US$1). The metric system is used for weights, measures, and mathematical expression. Although the main roads have been rehabilitated after long neglect, traffic accidents occur frequently in Peru, often involving mini-buses and buses. Public ground transportation is not recommended. Taxis are abundant and not metered, so fares should be negotiated before getting in the cab. More reliable radio taxis are highly recommended. In 1999, the railroad system was given in concession for 30 years to two companies: Ferrovias Central Andina S.A. (central railway) and Ferrocarril Trasandino S.A. (south and south-east railways. There are a number of Peruvian airlines serving routes within Peru. Currently Peru's international airlines include LanPeru (serving to Miami, Punta Cana, and Santiago) and AeroContinente (serving Bogota, Guayaquil, Quito, Miami, Buenos Aires, and Caracas). Lima is served by three U.S. airlines: American, Continental, and Delta Airlines. The communication system is being modernized following the privatization of the telephone company in 1994. Peruvian medical facilities do not generally meet U.S. standards, although some private clinics do. If visitors take certain precautions about food and drink, the level of risk is manageable. For further information, business travelers should note that the Foreign Service Posts: Guide for Business Representatives is available for sale from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 (telephone 202-512-1800; fax 202-512-2250). Business travelers to Peru seeking appointments with U.S. Embassy Lima officials should contact the Commercial Service in advance (telephone 511-434-3040 or 511-618-2442; fax 511-434-3041; e-mail Lima.Office.Box@mail.doc.gov; internet http://www.BuyUSA.com.pe). Useful Web Sites PERU: American Chamber of Commerce (Peru) http://www.amcham.org.pe Lanic Peru http://lanic.utexas.edu/la/peru Foreign Investment in Peru http://www.mef.gob.pe/peruinv/ingles/ peruinv1.htm Ministry of Agriculture http://minag.gob.pe/blanco.htm Ministry of Economy and Finance http://www.mef.gob.pe
A Primer on Exporting to Peru 10 UNITED STATES: USDA Foreign Agricultural Service http://www.fas.usda.gov US Export Programs Guide http://infoserv2.ita.doc.gov/ticwebsite/tic.nsf/ AF34FA880278BDD5825690D00656C6F/ F69FDCF72B7713B58525691900746F18?Open Document Internet Guide to Trade Leads http://infoserv2.ita.doc/gov/ticwebsite/tic.nsf/ 504ca249c786e20f85256284006da7ab/ ef7db94aef24919885266470049c1cd?OpenDocu ment US Trade Finance Resources http://infoserv2.ita.doc.gov/ticwebsite/tic.nsf/ AF34FA880278BDD5825690D00656C6F/ F69FDCF72B7713B58525691900746F18?Open Document Basic Guide to Exporting http://www.unzco.com/basicguide/index.html HEMISPHERIC: Hemispheric Guide on Customs Procedures http://alca-ftaa.iadb.org/hgcp_eng.htm Hemispheric Trade and Tariff Database http://alca-ftaa.iadb.org/eng/ngmadb_e.htm