Peru

PERU - ONE OF THE POTENTIAL MARKETS FOR INDIAN MAN-MADE FIBRE TEXTILES IN THE LATIN AMERICAN REGION

Peru is a growing market for Man-made fibre textiles with around 29 million population. Peruvian textile industry is primarily Cotton based. It has a developed garmenting sector which exports nearly US$ 2 billion of garments annually. Most of these garments are of Cotton and are directed to the North Americas. However, garments of blended fabrics are growing popularity in Peru both locally and for exports. Though Peru is having a flourishing garment industry, currently it is not producing sufficient textile raw materials including fibres, yarns, fabrics, etc. 

Market Potential

Peru imported US$ 1.22 billion of textiles products from the world during 2012 in which around US$ 800 million was of Man-made fibre textiles.

Peruvian Tariff Schedule

Tariffs (percent ad valorem) on Textiles and Apparel

Additional Import Taxes and Fees

Most imports are subject to an additional 16 percent general sales tax (IGV) and a municipal promotion tax (IPM) of 2%. The VAT is calculated on the c.i.f. value plus import tariff.

Temporary Entry/Samples

Goods for registered trade fairs/Exhibitions may temporarily enter Peru by paying a bond.

Import of Manmade filaments by Peru covered under chapter 54

Import of Textiles made out of Manmade Staple Fibres by Peru covered under chapter 54

Export of Indian MMF textiles to Peru during last five years

Value in USD Mn

During 2012-13 the following main MMF Textiles were being exported from India to Peru

Anti Dumping Duties imposed by Peru

Peru has imposed Anti dumping duty on the import of fabrics made out of Polyester Staple Fibre and Viscose Staple Fibre originating from India covered under HS Classification No. 5515.11.00 from 2011. The duties range from US $ 1.12 to US$ 2.76 per kg and was imposed on 25^th March 2011 for duration for five years.

Strategically Located

Peru has an extensive and mega-diverse territory strategically located in the central zone of South America over one of the largest oceans on the Planet. Through the Pacific Ocean, Peru connects with APEC member countries – of which Peru is a member - one of the most important, rich, and growing markets in the world.

Growing Economy

In Latin America, Peru is the 5th largest country by GDP and also by population. The Peruvian economy has been growing by an average of 6.4% per year since 2002 with a stable/slightly appreciating exchange rate and low inflation. Growth has been in the 6-9% range for the last three years, due partly to a leap in private investment, including the textiles sector, which contributes significantly in Peru's total exports.

The economic outlook for Peru remains favorable for the coming years. Based on announcements of new projects and investments, the expectation is of high growing rates of domestic consumption. The implementation of a stable and responsible economic policy, which has maintained continuity through the succession of governments has generated confidence in the various economic agents.

Widening Trading Network

Peru's free trade policy has continued since 2006. Peru has signed trade agreements with the US, Canada, Singapore, China, Korea, Mexico, Japan, the European Free Trade Association, and Chile. It also has concluded negotiations with Venezuela, Costa Rica, and Guatemala; and begun trade talks with two other Central American countries and the Trans-Pacific Partnership. Peru also has signed a trade pact with Chile, Colombia, and Mexico called the Pacific Alliance. The US-Peru Trade Promotion Agreement entered into force 1^st February 2009, opening the way to greater trade and investment between the two economies.

Textile Industry

The textile industry in Peru has its legacy in ancient pre-Columbian cultures. Ancient Peruvians, pre-Incan cultures like Paracas and Chancay, and even the Incas, knew how to cultivate cotton and take advantage of Andean camelidae fibers, developing extraordinary textile dyeing and weaving techniques that amazed the world. These traditions have in many ways survived, now as part of current industrialized processes.

Currently, textile industry has 13% stake in total manufacturing production,  U.S. $ 3 billion in foreign exchange from exports, employs around 1 million people directly and nearly 2 million Peruvian families depend on the textile industry.

Peruvian pima cotton is one of the finest cottons in the world and provides the industry with an exceptionally long fiber famous for its strength, luster and softness. The Alpaca fiber is classified as one of the most exquisite types of fine hair in the world, together with cashmere, mohair and angora. Peru accounts for more than 85 percent of world production of these fibers.

The stunning growth of textile infrastructure in Peru is primarily due to textile production being recognized as a strategic business for the country. Currently, textiles and garment manufacturers account for more than 30 percent of the non-traditional exports in Peru. In the garment sector alone, sales to foreign markets exceed $2 billion dollars per year. Because of the high quality of the raw materials used, Peruvian textile products are demanded by the most exclusive markets.

Over the past 10 years, factories have invested in state-of-the-art technology. Automatic sewing machines, centralized dyestuff dispensing units, modern dyeing machines, hydroextractors, compacting machines, foulards and other finishing equipment ensure the highest quality textiles.