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Canada - Peru Free Trade Agreement

Annex 1401.1

Annex 1401.1-1

Central Level Entities

Schedule of Canada

Thresholds

$ Cdn 76,500-Goods covered in Annex 1401.1-3
$ Cdn 76,500-Services covered in Annex 1401.1-4
5,000,000 SDR’s - Construction Services covered in Annex1401.1-5

Note to Annex 1401.1-1

The General Notes in Annex 1401.1-6 apply to this Annex.

Schedule of Peru

Thresholds

Nuevo Soles 220,770-Goods covered in Annex 1401.1-3.
Nuevo Soles 220,770-Services covered in Annex 1401.1-4.
5,000,000 SDR’s - Construction Services covered in Annex 1401.1-5

Unless otherwise specified herein, this Chapter covers all agencies subordinate to the entities listed in Peru’s Schedule.

Notes to Schedule of Peru

1. Ministerio de Defensa and Ministerio del Interior: This Chapter does not cover the procurement of clothing/apparel (HS 6205) and footwear (HS 64011000) by the Army, Navy, Air Force or National Police of Peru.

2. Ministerio de Economía y Finanzas: This Chapter does not cover procurement by the Agency for the Promotion of Private Investment (PROINVERSION) of technical, legal, financial, economic, or similar consulting services, which are necessary to promote private investment through the granting of concessions or other means such as capital increase, joint ventures, service, leasing and management contracts.

3. Ministerio de Justicia: This Chapter does not cover procurement by the Comisión de Formalización de la Propiedad Informal (COFOPRI).

4. Seguro Social de Salud (ESSALUD): This Chapter does not cover the procurement of sheets (HS 6301) and blankets (HS 6302).

Annex 1401.1-2

Other Covered Entities

Schedule of Canada

Thresholds

$ Cdn 382,800 - Goods covered in Annex 1401.1-3
$ Cdn 382,800 - Services covered in Annex 1401.1-4
$ Cdn 12,200,000 - Construction Services covered in Annex 1401.1-5

Notes to Annex 1401.1-2

1. For greater certainty, Article 1411 (Disclosure of Information) applies to procurements by Via Rail Canada Inc. and the Royal Canadian Mint, respecting the protection of the commercial confidentiality of information provided.

2. This Chapter does not cover procurement by or on behalf of the Royal Canadian Mint of direct inputs for use in minting anything other than Canadian legal tender.

3. The General Notes in Annex 1401.1-6 apply to this Annex.

Schedule of Peru

Thresholds

Nuevo Soles 1,103,800 - Goods covered in Annex 1401.1-3
Nuevo Soles 1,103,800 - Services covered in Annex 1401.1-4
Nuevo Soles 35,325,000 - Construction Services covered in

Annex 1401.1-5

Note to Schedule of Peru

Unless otherwise specified herein, this Chapter covers only the entities listed in this Annex.

Annex 1401.1-3

Goods

Schedule of Canada

Section A - General Provisions

1. All goods are covered subject to paragraph 2.

2. For procurement by the Department of National Defence, the Royal Canadian Mounted Police, and the Canadian Coast Guard, the Chapter covers only the goods listed in Section B subject to paragraph 1 of Article 1402.

Section B - List of Certain Goods

Numbers refer to the Federal Supply Classification document dated May 2005.

Note to Annex 1401.1-3

The General Notes in Annex 1401.1-6 apply to this Annex.

Schedule of Peru

This Chapter covers all goods procured by the entities listed in Annex

1401.1-1 and Annex 1401.1-2, subject to the Notes to the respective Annexes, the General Notes and Annex 1401.1-7.

Annex 1401.1-4

Services

Schedule of Canada

Section A - General Provisions

1. The Chapter covers procurement of all services that are procured by the entities in Annex 1401.1-1 and Annex 1401.1-2, subject to paragraph 3 and Section B of this Annex.

2. Services are identified in accordance with the Common Classification System.

3. Annex 1401.1-5 applies to contracts for construction services.

Section B - Excluded Coverage

Services Exclusions by Major Service Category

Part I

The Chapter does not cover the following services by entities listed in

Annex 1401.1-1 and Annex 1401.1-2:

A. Research and Development

All classes

B. Special Studies and Analysis - not R&D

C. Architecture and Engineering Services

D. Information Processing and Related Telecommunications Services

D304 ADP Telecommunications and Transmission Services, except those classified as “enhanced or value-added services.” Enhanced or value added services means those telecommunications services employing computer processing applications that:

For purposes of this provision, the procurement of “ADP Telecommunications and Transmission services” does not include the ownership or furnishing of facilities for the transmission of voice or data services. This provision only extends to providers of enhanced or value- added services whose underlying telecommunications transmission facilities are leased from providers of public telecommunications transport networks.

F. Natural Resources and Conservation Services

G. Health and Social Services

All classes

H. Quality Control, Testing and Inspection and Technical Representative Services

Services for the departments and functions listed in Annex 1401.1-6 - General Notes, Note 1 (e) to this schedule respecting FSC 36 - (Special Industry Machinery), FSC 70 - (Automatic Data Processing Equipment, software supplies and support equipment) and FSC 74 - (Office machines, text processing systems and visible record equipment)

FSC 58 (Communications, Detection, and Coherent Radiation Equipment) Services with reference to transportation equipment

J. Maintenance, Repair, Modification, Rebuilding and Installation of Equipment

Services for the departments and functions listed in Annex 1401.1-6 - General Notes, Note 1 (e) to this schedule respecting FSC 36 - (Special Industry Machinery), FSC 70 - (Automatic Data Processing Equipment, software supplies and support equipment) and FSC 74 - (Office machines, text processing systems and visible record equipment)

FSC 58 (Communications, Detection, and Coherent Radiation Equipment) Services with reference to transportation equipment

J019 Maintenance, Repair, Modification, Rebuilding and Installation of Equipment related to Ships J998 Non-nuclear Ship Repair

K. Custodial Operations and Related Services

L. Financial and Related Services

All classes

M. Operation of Government Owned Facilities

All facilities operated by:

R. Professional, Administrative and Management Support Services

S. Utilities

All classes

T. Communications, Photographic, Mapping, Printing and Publications Services

All classes

U. Education and Training Services

U010 Certifications and accreditations for Educational Institutions

V. Transportation, Travel and Relocation Services

All classes (except V503 Travel Agent Services (not including Tour Guides))

W. Lease or Rental of Equipment

Services for the departments and functions listed in Annex 1401. 1-6 - General Notes, Note 1 s(e) to this schedule respecting FSC 36 - (Special Industry Machinery), FSC 70 - (Automatic Data Processing Equipment, software supplies and support equipment) and FSC 74 - (Office machines, text processing systems and visible record equipment)

FSC 58 (Communications, Detection, and Coherent Radiation Equipment) Services with reference to transportation equipment

Part II

The Chapter does not cover procurement of the following services by entities listed in Annex 1401.1-2:

D. Information Processing and Related Telecommunications Services

Buying data, the electronic equivalent of books, periodicals, newspapers, etc.
D399 Other ADP and Telecommunications Services

F. Natural Resources and Conservation Services

R. Professional, Administrative and Management Support Services

R113 Data Collection Services

Notes to Annex 1401.1-4:

1. All services, with reference to those goods purchased by the Department of National Defence, the Royal Canadian Mounted Police and the Canadian Coast Guard which are not identified as subject to coverage by this chapter (Annex 1401.1-3), will be exempt from the disciplines of the Chapter.

2. All services purchased in support of military forces located overseas will be exempt from coverage by this chapter.

3. The General Notes in Annex 1401.1-6 apply to this Annex.

Schedule of Peru

This Chapter covers all services procured by the entities listed in Annex 1401.1-1 and Annex 1401.1-2, subject to the Notes to the respective Annexes, the General Notes, Annex 1401.1-7 and the Notes to this Annex except for the services excluded below.

This Chapter covers all services except the following services, as elaborated in the Central Product Classification Version 1.l. (For complete listing of Central Product Classification Version 1.l, see : http://unstats.un.org/unsd/cr/registry/default.asp?Lg=1):

Annex 1401.1-5

Construction Services

Schedule of Canada

Section A - General Provisions

1. This Chapter covers all construction services set out in the Common Classification System, except those listed in Section B that are procured by the entities listed in Annex 1401.1-1 and Annex 1401.1-2:

2. The Common Classification System can be found at: : http://www.sice.oas.org/trade/nafta/chap-106.asp#An1001.1b-3

Section B - Excluded Coverage

Services Exclusions by Major Service Category

The following services contracts are excluded:

1. Dredging

2. Construction contracts tendered by or on behalf of the Department of Transport

3. For CPC 5115 mining of oil and gas which is classified under CCS F042.

Note to Annex 1401.1-5

The General Notes in Annex 1401.1-6 apply to this Annex.

Schedule of Peru

This Chapter covers all construction services procured by the entities listed in Annex 1401.1-1 and Annex 1401.1-2, subject to the Notes to the respective Annexes, the General Notes, Annex 1401.1-7 and the Notes to this Annex.

Annex 1401.1-6

General Notes

Schedule of Canada

1. This Chapter does not cover procurements in respect of:

2. This Chapter does not cover procurement of transportation services that form a part of, or are incidental to, a procurement contract.

3. Pursuant to Article 1402 (Security and General Exceptions), national security exceptions include oil purchases related to any strategic reserve requirements.

4. National security exceptions include procurements made in support of safeguarding nuclear materials or technology.

5. The procurement process is the process that begins after an entity has decided on its requirement and continues through to and including contract award.

Schedule of Peru

1. This Chapter does not cover procurement programs on behalf of small and micro-sized companies.

2. This Chapter does not cover procurement of goods for food assistance programs.

3. This Chapter does not cover the acquisition of weavings and clothing made with alpaca and llama fibers.

4. This Chapter does not cover procurement by the Embassies, Consulates and other missions of the foreign service of Peru, exclusively for their operation and management.

Annex 1401.1-7

Threshold Adjustment Formulas

1. The thresholds shall be adjusted at two-year intervals with each adjustment taking effect on January 1, beginning on January 1, 2010.

2. The thresholds for:

shall be adjusted in accordance with Annex 1001.1c of the North American Free Trade Agreement between the Government of Canada, the Government of the United Mexican States and the Government of the United States of America, done at Mexico, Ottawa and Washington on 17 December 1992 (“North American Free Trade Agreement”). Canada shall notify Peru in writing of the adjusted threshold values in U.S. dollars in December of the year before the adjusted thresholds take effect. Peru shall convert the notified threshold values into Nuevo Soles based on the official conversion rate of the Banco Central de Reserva of Peru (BCR), using the average of the daily values of its currency in terms of the U.S. dollar over the two year-period ending September 30 of the year in which Canada notifies the adjusted threshold.

3. Thresholds expressed in SDRs in Annex 1401.1 shall be adjusted in accordance with the formula in the WTO Agreement on Government Procurement, GPA/1, Annex 3. Canada shall notify Peru in writing of the adjusted threshold values in Canadian dollars in December of the year before the adjusted thresholds take effect. Peru shall convert the notified threshold values into Nuevo Soles based on the official conversion rate of the Superintendencia de Banca y Seguros using the average of the daily values of its currency in terms of the Canadian dollar, over the two year period ending September 30 of the year in which Canada notifies the adjusted threshold.

4. Peru shall promptly notify Canada in writing of the value in its currency of the adjusted thresholds.

5. Where a major change in a national currency of either Party during a year creates a significant problem with regard to the application of the Chapter, the Parties shall consult as to whether an interim adjustment is appropriate.

6. In the event that:

the Committee on Procurement shall agree on a suitable alternate threshold adjustment formula.

Annex 1401.1-8

Transitional Thresholds for Goods and Services Procured by Central Level Entities of Peru

Transitional Thresholds

1. For a transitional period of three years from the date of entry into force of this Agreement, Peru shall apply a threshold of SDR 95,000 for goods and services procured by entities listed in Annex 1401.1-1 (Central Level Entities).

Domestic Currency Adjustment

2. Peru shall adjust the transitional threshold value of this Annex in accordance with Annex 1401.1-7, paragraph 3.

Adoption of Permanent Thresholds

3. At the end of the transitional period, Peru may adopt the thresholds for goods and services procured by entities listed in Annex 1401.1-1 (Central Level Entities).

4. In the event that Peru is not able to adopt the thresholds for goods and services procured by entities listed in Annex 1401.1-1 (Central Level Entities):

5. The new thresholds adopted in paragraph 4(b) shall replace the thresholds for goods and services for Canada and Peru procured by entities in Annex 1401.1-1 (Central Level Entities), and the new adopted threshold values shall be adjusted in accordance with Annex 1401.1-7 (3).

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