Guatemala Challenges Peruvian Import Duty

Guatemala has requested consultations with Peru to better establish whether to challenge, at World Trade Organization-level, an additional duty being imposed by Peru on imports of certain agricultural goods.

In a filing to the World Trade Organization on April 16, 2013, Guatemala said it seeks to obtain information from Peru on the "additional duty" it is imposing on imports of rice, sugar, maize, milk and certain dairy products.

According to Guatemalan authorities, the levy consists of a specific fee "additional" to the ordinary customs duty on imports of the affected products; and is payable upon importation of the affected products, together with the ordinary customs duty. The duty applies "when the international reference prices of such products are below certain floor price levels, and tariff rebates [apply] when these reference prices are above certain ceiling price levels," it said.

In its filing, Guatemala said the measure appears to be inconsistent with Peru's obligations under the Agreement Establishing the World Trade Organization, highlighting that the levy appears to have the effect of enforcing a "minimum import price."

April 23, 2013

Source: Tax News