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Peru: Manufacture of Weapons and Munitions

(Mar. 3, 2009) Peru's President Alan Garcia Perez signed a law on January 9, 2009, that adopts provisions concerning the name, nature, and legal status of the Fabrica de Armas y Municiones del Ejercito [Factory of Weapons and Munitions of the Army], a state corporation operating within the jurisdiction of the Ministry of Defense (Law No. 29314). This institution manages the sale, development, manufacture, modification, modernization, and maintenance of war weapons and munitions for civilian use and research and technological development and related activities to support the armed forces, the National Police of Peru, and the Committees of Defense, pursuant to the objectives approved by the Ministry of Defense. The same activities will be performed to supply foreign persons and entities. In addition, the institution is authorized to sign agreements or contracts for technological, scientific, and training cooperation with domestic or foreign entities to promote technical and scientific development in matters of its jurisdiction. The capital to be used for operations is defined in the charter of the entity, but private capital may also participate.

The Law deals also with the organization of the Factory, its budget and financial statements, profits, and control and supervision. In addition, it provides for an exemption from the requirement of publicity, by reason of national security concerns, for the processes of contracting and acquisition. These processes must be kept confidential, the Law stipulates. (Ley No. 29314, EL PERUANO [official gazette] (Jan. 9, 2009), available at