Peru – Authorized Exporter: a new facility for exporters that will save time and reduce costs

In June 2020, Peru’s Ministry of Tourism and Foreign Trade published the Rules of Authorized Exporter by means of the Supreme Decree No. 005-2020-MINCETUR. Under these rules, exporters could obtain an administrative license that allows them to issue their own certificates of origin (COs). Thus, exporters no longer need to submit forms before the Ministry to acquire COs, thereby saving time and reducing costs.

In order to understand the impact of the authorized exporter process, it is important to remember that there are two CO arrangements. Under the first, a certifying entity authorized by the Ministry will be the one that provides the CO at the request of the exporter. In this sense, the certifying entity verifies that the goods comply with the rules of origin according to the applicable Foreign Trade Agreement (FTA). Under the second, exporters issue their own COs after obtaining the authorized exporter license.

Note: These two CO arrangements have been recognized only under five FTAs to which Peru has subscribed: those with the EFTA States, Japan, Panama, the European Union, and Costa Rica. Therefore, once exporters obtain the license, they can issue COs only with respect to these FTAs.

The main benefit offered by the Ministry since the creation of the authorized exporter license is that exporters save administrative costs and time obtaining COs, since they no longer need to go to the Ministry. Note that the CO is one of the mandatory documents required by the Customs Administration to authorize the exportation of determined products to the destinations covered by Peru’s five FTAs. Without issuing the COs, exporters cannot gain the economic benefits provided by the FTAs.

Image source: http://unsplash.com

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