Maritime cabotage and inland water transport services were previously reserved for national shipping companies with majority Peruvian ownership (51% of the paid-in capital owned by Peruvian citizens) and where the Chairman of the Board, the majority of Directors and the General Manager were Peruvian nationals. The captain and crew of the ships of national shipping companies were also required to hold Peruvian nationality.
In 2018, maritime cabotage transport of passengers and cargo (except for the transport of bulk liquids, other than liquefied natural gas) was liberalised by Legislative Decree No. 1413 of 2018. The Legislative Decree No. 1413 stipulates that cabotage may be carried out by a natural person or legal entity incorporated in Peru with foreign or national capital, lifting the previous Peruvian majority ownership and nationality requirements for directors and management for such a legal entity. Shipping companies carrying out maritime cabotage are also exempted from the requirement to have a crew consisting exclusively of Peruvian nationals, including the captain of the ship. Companies engaging in the transport of bulk liquids, other than liquefied natural gas remain subject to the previously applied restrictions. The Legislative Decree No. 1413 of 2018 entered into force on 7 August 2019 following the publication of its implementing regulations.
"Article 4.- Definitions
For the application of this Law, it is understood by:
1. National Shipowner or National Shipping Company.- To the natural person of Peruvian nationality or legal person incorporated in Peru, with main domicile, real and effective headquarters in the country, that is dedicated to the service of water transport in national traffic or cabotage and / or international traffic and is the owner or lessee under the modalities of Financial Leasing or Bareboat Charter, with compulsory purchase option, of at least one Peruvian-flag merchant ship and has obtained the corresponding Operation Permit from the General Directorate of Aquatic Transport.
The property of the legal entity must be national and that at least fifty-one percent (51%) of the capital stock of the company, subscribed and paid, must be owned by Peruvian citizens. The Chairman of the Board, the majority of Directors and the General Manager must be of Peruvian nationality and reside in Peru.
[...]
Article 6.- On the Operation Permits for the Merchant Marine
6.1 The Operation Permit is the administrative authorization with an indefinite term to carry out maritime, river and lake transport activities granted by the General Directorate of Aquatic Transport to a national shipowner or national shipping company, certifying that it has submitted all the documentation and complied with the requirements indicated in paragraph 1 of article 4 and in the second transitory and final provision. Said permit must be issued within seven (7) calendar days of the application.
The General Directorate of Aquatic Transportation will issue a conditional Operation Permit, valid for one hundred and eighty (180) days, which enables the acquisition of the ship in the modalities established by paragraph 1 of article 4. Said permit automatically becomes indefinite from the date of moment in which the shipowner acquires the ship and delivers the proofs of compliance, at the same time, of the requirements established in paragraph 1 of article 4 and in the second transitory and final provision of the Capital Law.
[...]
Article 7.- Cabotage transport
7.1 Commercial water transport in national or cabotage traffic is reserved exclusively for Peruvian-flag merchant ships owned by the National Shipowner or National Shipping Company or under the modalities of Financial Leasing or Bareboat Charter, with a mandatory purchase option; Except as provided in section 7.4.
7.2 For water transport between Peruvian ports only, and in cases of non-existence of own or leased vessels under the modalities referred to in paragraph 7.1, the chartering of foreign flag vessels will be allowed to be operated only by national shipowners or national shipping companies, for a period of three years from the issuance of the respective operating permit granted by the General Directorate of Aquatic Transport of the Ministry of Transport and Communications. Said period can be extended for a period of up to a maximum of one year, by the Ministry of Transport and Communications at the request of the national shipowner or national shipping company
7.3 The National Shipowners or National Shipping Companies must send a copy of the charter contract to the General Directorate of Aquatic Transport. The General Directorate of Aquatic Transport will issue the charter certificate of foreign flag vessels, upon verification of the absence of national flag vessels.
[...]
Article 13.- Of the competition regime [...]
13.6 The captain and crew of the ships of the national shipping companies will be of Peruvian nationality in their entirety, authorized by the General Directorate of Captaincies and Coast Guard. In exceptional cases and after the finding of non-availability of Peruvian personnel duly qualified and with experience in the type of ship in question, the contracting of services of foreign nationality could be authorized, up to a maximum of fifteen percent (15%) of the total crew of each ship and for the limited time. This exception does not apply to the captain of the ship.[...]" (Law  on  National  Merchant  Navy  Reactivation  and  Promotion  (Law  No. 28583 of 22 July 2005), as amended by Law No. 30580 of 8 June 2017, Articles 4, 6, 7 and 13 [google translation])
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"Article 2. Scope of application
2.1. This Legislative Decree applies to all natural or legal persons, under public or private law and entities of the Public Administration linked to the maritime transport of passengers and cargo on the Peruvian coast.
2.2. The maritime transport of bulk liquids, other than liquefied natural gas, is excluded from the effects of this Legislative Decree.
[...]
Article 4. Access to maritime cabotage for passengers and cargo
The maritime cabotage traffic of passengers and cargo is carried out by a natural person or legal entity incorporated in Peru, with social capital of national or foreign origin and that has obtained the corresponding Operating Permit from the General Directorate of Aquatic Transport of the Ministry of Transportation and Communications, excepting the provisions of paragraph 1 of article 4, in paragraphs 7.1, 7.2 and 7.3 of article 7, in paragraph 13.6 of article 13 and in the Second Transitory and Final Provision of Law No. 28583, Law of Reactivation and Promotion of the National Merchant Marine.
[...]
Final Supplementary Provisions [...]
SECOND. Validity
This Legislative Decree enters into force as of the day following the publication of its Regulations.
[...]
Transitional Supplementary Provision
ONLY. Temporary exception for national and foreign shipping companies
Except for the natural person or legal entity, with social capital of national or foreign origin linked to the maritime transport of passengers and cargo on the Peruvian coast, for a period of three (3) years from the effective date of this Legislative Decree, of the obligation to have the requirement of incorporation in the country and to obtain the corresponding operating permit from the General Directorate of Aquatic Transport of the Ministry of Transport and Communications, in order to generate a greater supply of vessels to meet the needs of the maritime transport by cabotage traffic, for the benefit of users and the competitiveness of the country.
The Ministry of Transportation and Communications must evaluate the continuity of this provision according to the benefits that are registered after the expiration of the three (3) year period from the effective date of this regulation.
If applicable, the extension of the term is established by a supreme decree endorsed by the Minister of Transport and Communications.
(*) In accordance with the First Transitory Complementary Provision of the Regulation approved by Article 1 of Supreme Decree No. 029-2019-MTC, published on August 06, 2019, the national or foreign natural person or the legal person with capital is excepted company of national or foreign origin, linked to the maritime transport of passengers and cargo on the Peruvian coast, for the period indicated in this Provision, of the obligation to have the requirement of incorporation in the country and to obtain the corresponding permission of operation issued by the DTA. As long as the indicated exception lasts, the natural or legal persons mentioned above are only obliged to obtain the Certificate of Transport Safety Conditions.
(*) In accordance with the Third Transitory Complementary Provision of the Regulation approved by Article 1 of Supreme Decree No. 029-2019-MTC, published on August 06, 2019, it is provided that the Ministry of Transportation and Communications within a period of one (1 ) year before the end of the three (3) years, indicated in this Provision, performs the impact assessment that allows evaluating the continuity or not of the exemption for national or foreign natural or legal persons.[...]" (Legislative Decree to Promote and Facilitate Cabotage (No. 1413 of 13 September 2018; entry into force on 7 August 2019 following the publication of implementing Regulations, approved by Supreme Decree No. 029-2019-MTC of 6 August 2018), Articles 2 and 4, Second final supplementary provision, and Single transitional supplementary provision [google translation])
Law  on  National  Merchant  Navy  Reactivation  and  Promotion  (Law  No. 28583 of 22 July 2005), as amended by Law No. 30580 of 8 June 2017, Articles 4, 6, 7 and 13
Legislative Decree to Promote and Facilitate Cabotage (No. 1413 of 13 September 2018; entry into force on 7 August 2019 following the publication of implementing Regulations, approved by Supreme Decree No. 029-2019-MTC of 6 August 2018), Articles 2 and 4, Second final supplementary provision, and Single transitional supplementary provision
Supreme Decree approving the Regulation of Legislative Decree No. 1413 (No. 029-2019-MTC of 6 August 2018)
[<a href="https://spij.minjus.gob.pe/spij-ext-web/detallenorma/H896669">Law</a>],[<a href="https://spij.minjus.gob.pe/spij-ext-web/detallenorma/H1216098">Decree</a>],[<a href="https://spij.minjus.gob.pe/spij-ext-web/detallenorma/H1241083">Decree</a>]