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Peru's Cutlery Conundrum: Tariff Shield Against China's Metallic Incursion

Synopsis: Peru has imposed a definitive anti-dumping measure on standard table cutlery from China, establishing a minimum FOB price of $7.84/kg and a duty of $1.88/kg for products below this threshold, as announced by INDECOPI in a five-year measure affecting various cutlery products classified under specific HS codes.
Wednesday, April 30, 2025
PERU
Source : ContentFactory

Peru Establishes Price Floor Mechanism forChinese Cutlery Imports

The Peruvian government has taken decisive action toprotect its domestic cutlery industry by implementing a comprehensiveanti-dumping measure against Chinese imports. On April 27, 2025, Peru'sNational Institute for the Defense of Competition and Protection ofIntellectual Property, INDECOPI, announced its final determination regardingstandard table cutlery originating from China. The measure specifically targetsbasic dining implements including forks, spoons, teaspoons, and knivesmanufactured from base metals with a thickness not exceeding 1.5 millimeters.This regulatory intervention comes after a thorough investigation determinedthat Chinese manufacturers were exporting these products to Peru at pricessignificantly below fair market value, thereby causing material injury todomestic producers. The decision represents Peru's commitment to maintainingcompetitive equity in its manufacturing sector while addressing what itperceives as unfair trade practices.

 

Sophisticated Pricing Mechanism ReplacesProvisional Measures

Rather than imposing a flat-rate duty on all Chinesecutlery imports, Peru has implemented a more nuanced approach through a minimumprice threshold system. Under the new regulation, a minimum Free on Board (FOB)price of $7.84 per kilogram has been established as the benchmark for theseproducts. Any Chinese cutlery imported at or below this threshold will triggeran anti-dumping duty of $1.88 per kilogram. Conversely, imports declared atprices exceeding the minimum threshold will be exempt from additional duties.This price-contingent mechanism represents a sophisticated approach to traderemedies, allowing market forces to operate while establishing a floor pricethat protects domestic manufacturers from what Peru considers predatorypricing. The new definitive measure supersedes the provisional anti-dumpingmeasure previously established in Resolution No. 014-2025/CDB-INDECOPI, whichhas now been officially cancelled.

 

Five-Year Duration Signals Long-term MarketStabilization Intent

The anti-dumping measure has been implemented with afive-year validity period, signaling Peru's long-term commitment to addressingperceived imbalances in the cutlery market. This extended timeframe providescertainty for both domestic manufacturers and importers, allowing them to makestrategic business decisions with a clear understanding of the regulatoryenvironment. Industry analysts note that the five-year duration is standard forsuch trade remedies under World Trade Organization guidelines, providingsufficient time to evaluate the effectiveness of the measures while allowingfor periodic reviews. The extended time horizon also gives Peruvianmanufacturers an opportunity to strengthen their competitive position, investin production efficiencies, and potentially recapture market share that mayhave been lost to lower-priced imports. For Chinese exporters, this representsa significant market access challenge that will require strategic pricingadjustments to maintain their presence in the Peruvian market.

 

Broad Product Coverage Across Multiple HSClassifications

The scope of Peru's anti-dumping measure is notablycomprehensive, covering products classified under seven different HarmonizedSystem (HS) codes: 8211.10.00.00, 8211.91.00.00, 8211.93.90.00, 8215.10.00.00,8215.20.00.00, 8215.91.00.00, and 8215.99.00.00. This extensive coverageencompasses various types of table cutlery, including sets and individualpieces, regardless of their specific design or finish, provided they meet thebase metal and thickness criteria. The broad classification approach ensures thatthe measure cannot be easily circumvented through minor product modificationsor alternative customs classifications. Industry experts observe that thiscomprehensive product coverage reflects INDECOPI's thorough investigation anddetermination to address the full spectrum of potentially dumped cutleryproducts. The detailed classification also provides clarity for customsofficials responsible for implementing the measure and for importers who needto determine whether their products fall within its scope.

 

Key Takeaways:

• Peru has imposed a definitive anti-dumping measure onstandard table cutlery from China, establishing a minimum FOB price of$7.84/kg, with imports below this threshold subject to a duty of $1.88/kg,while those above the minimum price will not face additional duties.

• The measure, which replaces a provisional regulationpreviously established in Resolution No. 014-2025/CDB-INDECOPI, will remain ineffect for five years and covers products classified under seven different HScodes related to various types of base metal cutlery with thickness notexceeding 1.5 mm.

• This trade action aligns with a broader trend ofincreased trade defense measures throughout Latin America and could potentiallyimpact Peruvian consumers with higher retail prices for basic table cutlery,while Chinese manufacturers may adapt by upgrading their product offerings orredirecting exports to markets with fewer restrictions.

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