• CCI AD FROM 5th April 2021

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.

Chapter

PRODUCT DESCRIPTION

IMPORT DURING 2012

(In US$ thousand)

50

Silk

1,529

51

Wool, animal hair, horsehair yarn and fabric thereof

22,912

52

Cotton

371,586

53

Vegetable textile fibres nes, paper yarn, woven fabric

1,645

54

Manmade filaments

199,180

55

Manmade staple fibres

154,988

56

Wadding, felt, nonwovens, yarns, twine, cordage, etc

111,234

57

Carpets and other textile floor coverings

21,882

58

Special woven or tufted fabric, lace, tapestry etc

23,713

59

Impregnated, coated or laminated textile fabric

87,872

60

Knitted or crocheted fabric

131,420

61

Articles of apparel, accessories, knit or crochet

250,382

62

Articles of apparel, accessories, not knit or crochet

268,415

63

Other made textile articles, sets, worn clothing etc

88,559

TOTAL

 

1,735,317

Peruvian Tariff Schedule

Tariffs (percent ad valorem) on Textiles and Apparel

HS Chapter/Subheading

Tariff Rate Range (%)

FIBRE/YARN

Silk

5003-5006

0 - 6

Wool

5105-5110

0 - 11

Cotton

5204-5207

6 - 11

Other vegetable fiber

5306-5308

0 - 11

Man-made fiber/Yarn

5401-5406/5501-5511

0 - 11

WOVEN FABRIC

Silk

5007

11

Wool

5111-5113

11

Cotton

5208-5212

11

Oother vegetable fiber

5309-5311

0 - 11

Man-made fiber

5407-5408/5512-5516

0 - 11

KNIT FABRIC

60

11

NON WOVEN FABRIC

5603

0 - 6

INDUSTRIAL FABRIC

59

0 - 11

APPAREL

61-62

6 - 11

HOME FURNISHINGS
INCLUDING: BED, BATH, KITCHEN LINENS, ETC.

63

6 - 11

CARPET

57

6

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

Chapter

PRODUCT DESCRIPTION

IMPORT DURING 2012

(In US$ thousand)

540110

Sewing thread of synthetic filaments

1,846

540219

High-tenacity filament yarn of nylon or other polyamides (excl. sewing

20,090

540220

High tenacity yarn (o/t sewg thread),of polyester filaments,not put up

6,710

540231

Texturd yarn nes,of nylon/oth polyamides fi,</=50tex/s.y.,not put up

9,206

540233

Textured yarn nes,of polyester filaments,not put up for retail sale

56,460

540244

Synthetic filament elastomeric yarn, single, untwisted or with a twist

10,551

540245

Filament yarn of nylon or other polyamides, incl. monofilament of < 67

1,092

540247

Filament yarn of polyester, incl. monofilament of < 67 decitex, single

2,877

540248

Filament yarn of polypropylene, incl. monofilament of < 67 decitex, si

1,986

540249

Yarn of synthetic filaments, single, untwisted, nes, not put up

3,309

540262

Yarn of polyester filaments, multiple, nes, not put up

1,387

540411

Elastomeric monofilament of >= 67 decitex and with a cross sectional d

1,550

540412

Polypropylene monofilament of >= 67 decitex and with a cross sectional

2,937

540419

Synthetic monofilament of >= 67 decitex and with a cross sectional dim

2,564

540720

Woven fab obtaind from strip/the like of synthetic textile materials

2,804

540742

Woven fabrics,>/=85% of nylon/other polyamides filaments, dyed, nes

1,298

540752

Woven fabrics,>/=85% of textured polyester filaments, dyed, nes

12,510

540753

Woven fabrics,>/=85% of textured polyester filaments, yarn dyed, nes

3,718

540754

Woven fabrics,>/=85% of textured polyester filaments, printed, nes

4,982

540761

Woven fabric >85% non-textured polyester filaments

11,187

540769

Woven fabric >85% polyester filaments, nes

18,103

540771

Woven fab,>/=85% of synthetic filaments,unbleached or bleached,nes

2,586

540773

Woven fabrics,>/=85% of synthetic filaments, yarn dyed, nes

3,907

540783

Woven fabrics of synthetic filaments,<85% mixd w cotton,yarn dyd,nes

1,425

540793

Woven fabrics of synthetic filaments, yarn dyed, nes

2,466

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

Chapter

PRODUCT DESCRIPTION

IMPORT DURING 2012

(In US$ thousand)

550320

Staple fibres of polyesters, not carded or combed

40,937

550410

Staple fibres of viscose, not carded or combed

14,481

550810

Sewing thread of synthetic staple fibres

11,142

551511

Woven fab of polyester staple fib mixd w viscose rayon staple fib,nes

10,008

550130

Filament tow of acrylic or modacrylic

8,723

550953

Yarn of polyester staple fibres mixed with cotton, not put up, nes

8,191

550921

Yarn,>/=85% of polyester staple fibres, single, not put up

7,730

551011

Yarn,>/=85% of artificial staple fibres, single, not put up

5,653

551341

Plain weave polyester stapl fib fab,<85%,mixd w/cot,</=170g/m2,printd

4,947

550390

Synthetic staple fibres, not carded or combed, nes

4,781

550490

Artificial staple fibres, o/t viscose, not carded or combed

4,029

551211

Woven fabrics, containing>/=85% of polyester staple fibres, unbl or bl

3,600

551219

Woven fabrics,containg>/=85% of polyester staple fibres,o/t unbl or bl

3,375

551512

Woven fabrics of polyester staple fibres mixd w man-made filaments,nes

3,336

551614

Woven fabrics, containing>/=85% of artificial staple fibres, printed

2,295

551622

Woven fabrics of artificial staple fib,<85%,mixd with man-made fi,dyd

2,124

550340

Staple fibres of polypropylene, not carded or combed

1,961

551321

Plain weave polyester staple fib fab,<85%,mixd w/cotton,</=170g/m2,dyd

1,878

550951

Yarn of polyester staple fibres mixd w/ arti staple fib,not put up,nes

1,750

551311

Plain weave polyest stapl fib fab,<85%,mixd w/cottn,</=170g/m2,unbl/bl

1,743

Export of Indian MMF textiles to Peru during last five years

Value in USD Mn

 

Fabrics

Made-ups

Yarn

Fibre

Total

%Gr/Dec

2008-09

7.76

0.27

10.68

1.04

19.75

18.69%

2009-10

6.81

0.64

11.78

1.05

20.28

2.68%

2010-11

12.78

0.74

38.19

2.61

54.32

167.85%

2011-12

13.45

0.46

46.18

5.71

65.80

21.13%

2012-13

8.54

0.93

44.50

8.05

62.02

-5.74%

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

Fabrics

Polyester-Viscose Fabrics

 

Synthetic-Cotton Fabrics

Made-ups

Shawls/scarves

 

Muffler

Yarn

Polyester Textured Yarn

 

Polyester-Cotton Yarn

 

Viscose Spun Yarn

Fibre

Polyester Staple Fibre

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 25th 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 1st 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.