Getting your product into market
New Zealand can be perceived as a small, distant country dedicated to livestock and the dairy industry. Many Peruvians know nothing about New Zealand’s high-tech sectors.
Market entry tips include:
- thorough investigation and selection of local partners is a key element in a successful entry
- long credit terms are common, especially from foreign suppliers - 60-90 days is a normal request
- provide success stories showing successful entry into similar markets in the region to overcome risk aversion
- keep in mind that you will be compared against competition from the United States
- bank charges and letters of credit are costly. As relationships develop, the local partner will generally ask to pay by direct transfers with commercial credit terms.
There are generally no restrictions on imports and exports. Regulatory issues include:
- food and beverage and pharmaceutical goods registration documentation should be in Spanish
- custom duties are imposed on an ad-valorem basis (0 to 20 percent). Capital goods are subject to zero percent.
Tax
Tax rates include:
- corporate – 30 percent
- income tax – 0 to 30 percent. Non-residents are taxed only on Peruvian-sourced income
- value added tax – 19 percent
- withholding tax – dividends 4.1 percent.
New Zealand does not have a double tax agreement with Peru.
Logistics
Qantas and Lan Chile fly five times a week from Lima via Santiago to Auckland. Lan Chile and Air New Zealand fly from Lima via Santiago and Papeete.
There are no direct shipping services from New Zealand to Callao, the largest Peruvian port.
Opportunities:
- Peru wants to be the new South American leader of the value-added food sector.
- Consumption of dairy products is growing. More purchasing power, strong marketing campaigns and government programmes are promoting dairy consumption (from a low per capita base).
Challenges:
- Peruvian business people often do not promptly acknowledge communications such as emails.
- Business strategies are often dominated by short-term considerations.
- The business environment is competitive with price dominant.
- Over-promising and under-delivering are frequent.
Cultural and business tips
Spanish is the national language. Middle managers and engineers in large companies generally speak English, although English is less frequent in medium and small companies and in government agencies.
Other tips include:
- the dress code is generally formal and conservative
- punctuality is expected for business visitors for social and business functions.
Download the full Peru Country Brief for more detail, including economic and political information, key contacts and useful websites.
