Countries › Peru › Guide › 14. Disputes › Commercial arbitration in Peru: tribunal, challenges, interim measures, confidentiality, awards and costs under Decreto Legislativo Nº 1071

Commercial arbitration in Peru: tribunal, challenges, interim measures, confidentiality, awards and costs under Decreto Legislativo Nº 1071

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Last verified: 2026-10-28 · Status: Stable

Arbitration seated in Peru runs under Decreto Legislativo Nº 1071, a party autonomy statute modelled on international practice: three arbitrators by default, 15 business day appointment windows and a Chamber of Commerce as fallback appointing authority. The tribunal rules on its own jurisdiction, takes evidence, grants interim measures (even before hearing the other side when justified) and decides costs, with the loser paying by default; proceedings are confidential unless the State is a party. Court ordered measures before the tribunal exists lapse unless the arbitration starts within 10 business days and the tribunal is formed within 90; arbitrations with the State follow stricter 2020 rules on conflicts, challenges, publicity and fines.

USD figures use S/ 3.452 per US dollar, the banking system selling rate published by the Superintendencia de Banca, Seguros y AFP for 27 October 2026, from the Banco Central de Reserva del Perú statistics series PD04640PD. UIT amounts use the 2026 UIT of S/ 5,500 set by Decreto Supremo Nº 301-2025-EF, as cited in SUNAT Resolución de Superintendencia Nº 000016-2026/SUNAT. Conversions are for orientation only.

Key facts

Default number of arbitrators	3 arbitratorsDL Nº 1071 art. 19, as of 2026-10-28 · in force
Default time to appoint an arbitrator	15 business daysDL Nº 1071 art. 23 and 12 c), as of 2026-10-28 · in force
Fallback appointing authority	Chamber of Commerce of the seat (Lima Chamber in international cases without an agreed seat) textDL Nº 1071 art. 23 d) and e), as of 2026-10-28 · in force
Time to respond to a challenge (default)	10 business daysDL Nº 1071 art. 29.2 b), as of 2026-10-28 · in force
Time to start arbitration after a court interim measure is executed	10 business daysDL Nº 1071 art. 47.4, as of 2026-10-28 · in force
Court interim measure lapses if no tribunal within	90 business daysDL Nº 1071 art. 47.4, as of 2026-10-28 · in force
Time to request correction or interpretation of the award	15 business daysDL Nº 1071 art. 58, as of 2026-10-28 · in force
Proceedings confidential by default	Yes, except arbitrations with the State, which become public after they end textDL Nº 1071 art. 51 (DU Nº 020-2020), as of 2026-10-28 · in force
Default allocation of arbitration costs	Losing party pays, subject to apportionment by the tribunal textDL Nº 1071 art. 73.1, as of 2026-10-28 · in force
Unidad Impositiva Tributaria 2026	5,500 PENDS Nº 301-2025-EF, as of 2026-10-28 · in force
SBS banking system selling rate, 27 October 2026	3.452 PEN per USDBCRP series PD04640PD, as of 2026-10-28 · in force

The rule

1. The parties choose the number of arbitrators; failing agreement or in case of doubt there are three. Any natural person in full exercise of civil rights can be an arbitrator, and nationality is no obstacle unless the parties agree otherwise. In a national arbitration decided at law the arbitrators must be lawyers unless agreed otherwise; in an international arbitration no arbitrator needs to be a lawyer. Absent an agreed procedure, a sole arbitrator or a jointly appointed chair is named within 15 days of the request; with three arbitrators each side names one within 15 days and the two name the chair within 15 days of the last acceptance. If that fails, the Chamber of Commerce of the seat (or of the place where the agreement was signed) appoints, and in an international arbitration without an agreed seat the Lima Chamber of Commerce appoints. Clauses that give one party a privileged position in appointments are void. Each arbitrator has 15 days to accept in writing, and silence counts as refusal.
Cost to do it: No filing fee is set by the law; appointment by a Chamber of Commerce is a service charged under that Chamber's own schedule, and arbitrator fees follow the agreed rules or art. 70 to 72.
Example: A Lima distributor and a Peruvian buyer whose clause says nothing on numbers get a three member tribunal; if the buyer does not name its arbitrator within 15 days, the Chamber of Commerce of the seat names one. / In a US$2 million international arbitration seated in Lima with no seat specific appointing authority, a missing arbitrator is appointed by the Lima Chamber of Commerce, which also considers naming a sole arbitrator or chair of a nationality different from the parties.Decreto Legislativo Nº 1071, Decreto Legislativo que norma el arbitraje (El Peruano, 28 June 2008; in force 1 September 2008), Art. 19, 20, 22, 23, 25, 26 and 27, 2008-06-28 official text · verified 2026-10-28

2. Arbitrators must be and remain independent and impartial, disclose any circumstance that may raise justified doubts from the time they are proposed, and update disclosure during the case. A challenge only lies for justified doubts on impartiality or independence or for lacking the agreed or legal qualifications, and a party may only challenge the arbitrator it appointed for causes learned afterwards. Without an agreed procedure, the challenge is filed as soon as the cause is known; the other side and the arbitrator have 10 days to respond; if neither accepts, the institution or, failing it, the Chamber of Commerce decides for a sole arbitrator, and the remaining arbitrators decide for a panel. Unless agreed, no challenge is admissible once the period to issue the award has started. A challenge does not suspend the proceedings unless the arbitrators so decide, and the decision is final; the only further route is annulment of the award.
Cost to do it: Costs are the time of counsel and, where an institution decides, any challenge fee in its rules; the statute sets none.
Example: A Peruvian construction company that learns mid case that the chair advised the other side's parent files a challenge at once; it has no suspensive effect unless the tribunal orders it. / On a US$10 million claim, waiting until the award period has started to raise a known conflict is fatal: the challenge is inadmissible at that stage unless the parties agreed otherwise.Decreto Legislativo Nº 1071, Decreto Legislativo que norma el arbitraje (El Peruano, 28 June 2008; in force 1 September 2008), Art. 28 and 29, 2008-06-28 official text · verified 2026-10-28

3. Where the Peruvian State is a party, a person who acted in the specific case as counsel for a party or as expert, or who has personal, employment, economic or financial interests that may conflict with the role, cannot sit as arbitrator. If the challenge is not accepted, the arbitral institution or, failing it, the Chamber of Commerce decides it, and any agreement letting tribunal members decide challenges against each other is void.
Cost to do it: Same as ordinary challenges; the main cost is delay if an appointment has to be redone.
Example: In an arbitration against a regional government, an arbitrator who previously advised that government on the same contract is incompatible and must be replaced. / A foreign contractor in a US$25 million dispute with a ministry cannot agree that the two co arbitrators will decide a challenge against the chair; such a clause is void.Decreto de Urgencia Nº 020-2020, que modifica el Decreto Legislativo Nº 1071 (El Peruano, 24 January 2020), Art. 2 (DL 1071 art. 21 and art. 29 e)), 2020-01-24 official text · verified 2026-10-28 · changed: Decreto de Urgencia Nº 020-2020 (24 January 2020) added State specific incompatibilities to art. 21 and a new art. 29 e) sending challenges to the institution or Chamber of Commerce.

4. The tribunal alone decides on its own jurisdiction, including objections on the existence, validity or scope of the arbitration agreement, prescription, caducidad and res judicata. The arbitration clause is independent of the contract, so a void contract does not void the clause. Jurisdictional objections must be raised no later than the statement of defence, or as soon as an excess of mandate arises; late objections are only admitted if the delay is justified. The tribunal may decide them as a preliminary question or in the award; a decision rejecting them can only be attacked through annulment of the award. The tribunal controls the admission and weight of evidence, may appoint experts, and may proceed if a party fails to appear or produce evidence. Unless agreed, it cannot consolidate separate arbitrations or order joint hearings.
Cost to do it: Bifurcation on jurisdiction adds a procedural phase whose cost depends on the tribunal's fee basis; there is no court fee because courts cannot hear the objection mid case.
Example: A Peruvian supplier that argues the contract is void must still arbitrate that argument; the tribunal decides it under the separability rule. / A respondent in a US$3 million claim that raises lack of jurisdiction only after its defence loses the objection unless it justifies the delay.Decreto Legislativo Nº 1071, Decreto Legislativo que norma el arbitraje (El Peruano, 28 June 2008; in force 1 September 2008), Art. 39.4, 40, 41, 42, 43, 44 and 46, 2008-06-28 official text · verified 2026-10-28

5. Once constituted, the tribunal may grant interim measures (preserve the status quo, prevent harm, preserve assets or evidence) and require security. It may decide without hearing the other side where needed to make the measure effective, with reconsideration afterwards, and may modify or lift measures, including those ordered by a court. The requesting party is liable for costs and damages if the measure turns out to be unjustified. Before the tribunal exists, a party may ask a court; once the measure is executed, it must start the arbitration within 10 days, and the measure lapses automatically if the tribunal is not constituted within 90 days of the order. Tribunal measures are enforced by the court on request without appeal or opposition, and measures from a tribunal seated abroad are recognised under the foreign award rules with 10 day terms. In an international arbitration, a party may also seek court measures during the case with the tribunal's authorisation.
Cost to do it: Security set by the tribunal or court (often a bank guarantee) plus potential liability for damages if the measure proves unjustified.
Example: A creditor freezes a debtor's Lima bank account through a court before the tribunal exists; it must file the arbitration request within 10 days of execution, or the freeze lapses. / A foreign investor that obtains a US$1 million asset preservation order from a New York seated tribunal can have it recognised in Peru, with the court's 10 day terms under art. 48.4.Decreto Legislativo Nº 1071, Decreto Legislativo que norma el arbitraje (El Peruano, 28 June 2008; in force 1 September 2008), Art. 47 and 48, 2008-06-28 official text · verified 2026-10-28

6. Unless agreed otherwise, the tribunal, secretary, institution, witnesses, experts and the parties and their advisers must keep the proceedings and the award confidential, except where disclosure is legally required, or needed to protect or enforce a right or to seek annulment or enforcement in court. In every arbitration involving the Peruvian State, the proceedings and the award become public once the case has ended, subject to transparency law exceptions.
Cost to do it: No cost; breach of confidentiality can generate liability.
Example: A private shareholder dispute in Lima stays confidential, but the losing party may file the award in court to seek annulment. / An award in a US$40 million concession dispute with a ministry becomes public after the case ends, so commercially sensitive data should be flagged under transparency exceptions during the proceedings.Decreto Legislativo Nº 1071, Decreto Legislativo que norma el arbitraje (El Peruano, 28 June 2008; in force 1 September 2008); as amended by Decreto de Urgencia Nº 020-2020, que modifica el Decreto Legislativo Nº 1071 (El Peruano, 24 January 2020), DL 1071 art. 51 (num. 3 as amended by DU Nº 020-2020), 2020-01-24 official text · verified 2026-10-28 · changed: Decreto de Urgencia Nº 020-2020 (24 January 2020) made proceedings and awards public after the case ends in arbitrations with the State.

7. The tribunal decides by majority, and if there is no majority the chair decides; the chair can rule alone on procedural matters if authorised. The award must be issued and notified within the period agreed by the parties, the rules or, failing that, the tribunal; partial awards are allowed. Awards must be in writing, signed and reasoned unless the parties agreed otherwise or the award records a settlement, and state the date and seat. National arbitrations are decided at law unless the parties authorise equity; international ones apply the rules of law chosen by the parties. Parties may request correction, interpretation or completion within 15 days of notification. Where the State is a party, the award may not impose fines or similar penalties.
Cost to do it: No additional arbitrator fees may be charged for correction, interpretation, completion or exclusion of the award.
Example: A sole arbitrator in a Lima lease dispute who misses the term fixed by the rules risks the award being annulled under art. 63.1 g) if a party objected in time. / In a US$5 million international case the parties can choose New York law as the applicable rules of law even though the seat is Lima.Decreto Legislativo Nº 1071, Decreto Legislativo que norma el arbitraje (El Peruano, 28 June 2008; in force 1 September 2008); as amended by Decreto de Urgencia Nº 020-2020, que modifica el Decreto Legislativo Nº 1071 (El Peruano, 24 January 2020), Art. 52, 53, 54, 55, 56, 57 and 58, 2008-06-28 official text · verified 2026-10-28

8. Unless the parties agree otherwise, the tribunal can require advances on costs from each party in equal shares, plus additional advances, and may set separate advances for claim and counterclaim. If a party does not pay, the tribunal may suspend and then terminate the proceedings, or exclude the unfunded claims. Absent agreement, the losing party bears the costs of the arbitration, but the tribunal may apportion them if reasonable in the circumstances; costs cover arbitrator and secretary fees, institution fees, experts, reasonable legal representation and other expenses. Without agreed fees, the tribunal sets its own fees considering the amount, complexity, time and practice.
Cost to do it: Advances on costs in equal shares at the outset, set by the tribunal or institution; the law fixes no tariff. Budget for the full advance if the respondent may refuse to pay its half.
Example: If the respondent refuses to pay its half of a S/ 200,000 advance (US$57,937), the claimant can pay it to avoid suspension and recover it in the costs award. / A claimant that wins a US$1 million award usually also recovers its share of tribunal fees and reasonable legal costs, because costs follow the event unless the tribunal sees reason to apportion them.Decreto Legislativo Nº 1071, Decreto Legislativo que norma el arbitraje (El Peruano, 28 June 2008; in force 1 September 2008), Art. 70, 71, 72 and 73, 2008-06-28 official text · verified 2026-10-28

Step	Default term	Article
Appoint sole arbitrator or party arbitrator after request	15 days	Art. 23 a) to c)
Party appointed arbitrators name the chair	15 days after the last acceptance	Art. 23 b)
Arbitrator accepts in writing	15 days after notice of appointment	Art. 27.1
Response to a challenge	10 days after notice	Art. 29.2 b)
Reconsideration of a procedural decision	3 days, if no other term set	Art. 49.1
Start arbitration after a court interim measure is executed	10 days	Art. 47.4
Tribunal must be constituted after a court interim measure	90 days from the order	Art. 47.4
Correction, interpretation or completion of the award	15 days after notification	Art. 58
Annulment filing	20 days after notification	Art. 64.1

Default arbitration timeline under DL Nº 1071 (business days, unless the parties or rules provide otherwise)

Worked example

A Spanish equipment maker sues a Lima mining contractor for S/ 3,452,000 (US$1,000,000) under a clause providing for arbitration in Lima, with no rules chosen. The respondent does not name its arbitrator within 15 business days, so the Chamber of Commerce of Lima appoints one; the two arbitrators name the chair within 15 business days. The tribunal asks for advances in equal shares; the respondent refuses, the claimant pays both halves, and the award orders the respondent to bear the costs.
Before the tribunal exists, the claimant obtains a court order freezing the respondent's receivables. It files the arbitration request within 10 business days of the freeze being executed and makes sure the tribunal is formed within 90 business days, otherwise the freeze would lapse automatically.

Step by step

Draft the clause: institution or ad hoc, seat, language, number of arbitrators, applicable law, and whether equity is allowed (national cases are at law by default).
If a court interim measure is needed first, diary the 10 business day deadline to start the arbitration and the 90 business day deadline for constituting the tribunal (art. 47.4).
Appoint arbitrators within the 15 business day windows and check disclosure statements; challenge promptly, because causes known and not raised are waived and challenges close once the award period starts.
Raise jurisdictional objections no later than the statement of defence (art. 41.3).
Budget for equal advances on costs and for paying the other side's share to avoid suspension (art. 72).
After the award, use the 15 business days for correction requests and the 20 business days for annulment, and line up enforcement as described in the courts and enforcement page.

Common traps

In a national arbitration decided at law, a non lawyer arbitrator is only valid if the parties agreed to it (art. 22.1).
A party can only challenge its own appointee for causes learned after the appointment, and no challenge is admissible once the award period has started unless agreed (art. 28.5 and 29.3).
A pre arbitral court measure dies automatically if the arbitration is not started within 10 business days of execution or the tribunal is not formed within 90 business days (art. 47.4).
Without agreement, the tribunal cannot consolidate related arbitrations (art. 39.4), so multi contract projects need a consolidation clause.
Arbitrations with the State are public after they end and cannot result in fines, and arbitrators with prior involvement in the case are incompatible (DU Nº 020-2020).
Non payment of advances can lead to suspension and termination of the case, or exclusion of unfunded claims (art. 72.2 and 72.3).

Sources

← Courts, arbitration and enforcement in Peru: the arbitration law, annulment, foreign awards and judgments, the New York Convention and ICSIDClaims against the State in Peru: administrative litigation, public procurement arbitration and dispute boards, and collecting judgments →

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