San Fernando is a company dedicated to the breeding and marketing of poultry for human consumption and has several farms located throughout the country. Since 2015, San Fernando has been in possession of a piece of land – uncultivated land of 3460 hectares, called «Pampa Camino Enladrillado» – in the district of Subtanjalla, province and department of Ica (Peru), for more than two (02) years, which has been using as a breeding turkey farm, and which also has perimeter fences of cement, concrete and stone ditches in its premises. In this context, the Ministry of Housing and Construction (Ministry) as well as the National Superintendence of State Property (SBN) are imposing a regulatory burden related to the prohibition to obtain an act of administration with respect to a property, until the registration of its ownership right in the Land Registry in favour of the State or the corresponding Entity has been completed. This regulatory barrier generates for San Fernando higher costs in relation with its development in the market and with the investment such of company in “Pampa Camino Enladrillado” land.
In regard of this fact, we advised San Fernando in a complex complaint against the Ministry and SBN before the Commission for the Elimination of Bureaucratic Barriers (CEB) of Indecopi, which is one of the few government agencies in the world that deals with government failures that impose illegal and non-rational regulatory burdens on the private sector. Therefore, we prepared such complaint which included a deep analysis of the legal and regulatory framework regarding the National System of State Property. This analysis and development of such assessment included the evaluation of the legality of the prohibition that is being imposed by the authorities (the Ministry and the SBN) as well as the application of better regulation tools in relation with the non-rationality and non-proportionality of the prohibition too, in order to expose before the CEB why the prohibition is not only illegal considering it is against the legal framework, but also an irrational regulatory barrier.
We are waiting for CEB’s analysis in order to see the result of its assessment, considering that the consequence of declaring illegal or non-rational such prohibition is an order from CEB to the Ministry and SBN of not applying the prohibition for the complainer (San Fernando).