WORLD TRADE
ORGANIZATIONG/AG/N/CRI/1/Rev.1
26 February 2001
(01-0950)
Committee on Agriculture Original:  Spanish
NOTIFICATION
Revision
The following revision to the notification concerning the administration of tariff quotas
(Table MA:1 ) for the years 1995-1999  was received from the Permanent Mission of Costa Rica on
14 February 2001.
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This notification is an updated version of the notification submitted in 1995 (G/AG/N/CRI/1).G/AG/N/CRI/1/Rev.1
Page 2Table MA:1
MARKET ACCESS:  COSTA RICA
REPORTING PERIOD:  1995-1999
Implementation of Market Access Opportunities:  Tariff and other Quota Commitments
Description of products Tariff item number(s) encompassed
in product descriptionDescription of import arrangement applicable
(From Section I-B (or I-A) of Part I of the Schedule) (From Section I-B (or I-A) of Part I of the Schedule)
12 3
Other 0207.39.90
Milk and cream, not concentrated nor containing added sugar
or other sweetening matter0401
Milk and cream, concentrated or containing added sugar or
other sweetening matter0402 (except for 0402.91.10 and 0402.99.10)
Buttermilk, curdled milk and cream, yoghurt, kephir and other
fermented or acidified milk and cream, whether or notconcentrated or containing added sugar or other sweeteningmatter or flavoured or containing added fruit, nuts or cocoa0403 Agricultural products whose access is subject to the opening of
tariff quotas are regulated in accordance with the special allocationsystem through transactions on the Exchange.  The system isexplained in the Annex to this table.
Butter and other fats and oils derived from milk 0405
Cheese and curd (excluding headings for Cheddar-type
cheese, dehydrated green- or, blue-veined and other cheese)0406 (except for 0406.20.10, 0406.20.90, 0406.40.00 and
0406.90.00)
Ice-cream and other edible ice, whether or not containing
cocoa2105
Sausages and similar products:
Meat and offal of poultry of Heading 0105, other prepared or
preserved meat and offal of poultry of Heading 0105.1601.00.20
1602.10.20
1602.39.00G/AG/N/CRI/1/Rev.1
Page 3
ANNEX TO TABLE MA:1
System of Quota Allocation
Through Commodity Exchange Transactions
As part of the commitments entered into under the Agreement on Agriculture of the Final Act
of the Uruguay Round, Costa Rica has established tariff quotas on certain agricultural products
following the tariffication of the non-tariff import barriers to which they were previously subject.
These quotas are not administered through import licences as used to exist in Costa Rica.  An
innovative market mechanism with certain administra tive procedures and formalities is in operation
and is described in detail below.
Aim and scope of application of the tariff quotas
Costa Rica has a unique system for applying import tariff quotas using the Exchange as an
allocation mechanism.  The system is governed by the Regulation on the Allocation of Tariff Quotas.1
Pursuant to the provisions on tariffication of import licences for agricultural goods in the Uruguay
Round Agreement on Agriculture, the administration and allocation of tariff quotas for current and
minimum access are based on a procedure in which Exchange certificates are granted entitling the
holder to import goods within the specified tariff quota subject to a lower tariff than if the imports
were outside the quota.
This procedure is a transparent way of allocating licences (certificates) using a market system.
These certificates will be allocated, through the Exchange, to whoever submits the lowest bid to
import the goods. The allocation will not involve any payment that may distort the price agreed in the
contract of sale of the commodity traded on the Exchange (apart from the usual commission charged
in Exchange transactions). The licence will not be  a permit to import as such (which is not required
since imports are permitted on payment of the MFN import tariff), but rather a permit to import at a
lower tariff for a specific quota.
The Regulation on the Allocation of Tariff Quotas is contained in Executive Decree
No. 23914-COMEX-MAG of 22 December 1994 which was published in Official Gazette No. 246 of27 December 1994. Article 5 of the Enabling Act of the Agreements of the Uruguay Round of
Multilateral Trade Negotiations, Act No. 7473 of 20 December 1994, provides the legal basis for this
Decree.  The licensing procedures are legally binding.  The law does not leave it to the discretion of
the public administration to decide which products should be subject to licensing:  they are those
subject to tariffication as a result of the Urug uay Round commitments.  The Executive has the legal
authority to do away with or amend the licensing pr ocedures without the approval of the Legislature,
pursuant to Act No. 7473 mentioned above.
These transactions will take place in any authorized Exchange dealing in agricultural goods.
In theory, whenever the session of the Exchange opens, the potential parties to the transaction (foreign
exporter or domestic importer), each acting through members of the Exchange, establish the terms and
conditions of the sale contract, fixing the price, quantity and specifications of the goods on apreliminary basis.  The quotation is based on DDP (delivery duty paid) prices.  This preliminary
contract will be put to public auction. At the auction, the commodity Exchange will award the
certificate to any third party (exporter or importer) that improves on the price terms in the preliminary
contract. If there are no better bids from the floor, the bid in the preliminary contract will finally be
accepted and the importer will be entitled to the import licence, in the form of a certificate, for the
                                                     
1 Executive Decree No. 23914-COMEX-MAG of 22 December 1994, published in Official Journal
No. 246 of 27 December 1994.G/AG/N/CRI/1/Rev.1
Page 4
good traded. The quantity of the good traded in this transaction is charged to the tariff quota of the
commodity in question. The parties are aware in advance of the size of the quota, as will be explained.
In order that the quota can be monitored officially, the quantities traded are monitored both by
the commodity Exchange and the Ministry of Agriculture and Livestock.  Once a certificate has been
awarded the goods will have to be imported within a maximum time-limit to be published by theMinistry of Agriculture and Livestock.  The ceiling for the volume of these transactions - considered
individually or jointly - is the maximum that may be imported under the tariff quota.  The quotas are
allocated periodically.
The mechanism aims to ensure free trade and non-discrimination and does not discriminate
according to the origin of the goods imported, whic h may, therefore, come from any country of the
world.  It seeks to control the quantities imported, not their origin, and is designed to limit quantitiesimported, not the value of imports.
Procedures
Quotas are not allocated to any particular country or person.  They are merely made available
to economic operators in general, who have reco urse to agricultural commodity Exchanges to take
part in the transaction.  The transaction does not involve any special formalities or require any kind of
licence application.  However, since economic operators have to channel their activities on the
commodity Exchange through a member of the Exchange, the member is required to present a
"transaction order", the usual document covering all kinds of transaction on commodity Exchanges, inwhich the agent authorizes the member to take part in a transaction on his behalf.  Consequently, there
is no need to publish information on distribution or formalities, nor to provide any details on
distribution or formalities to potential importers, governments, export promotion agencies or trade
representatives.
Before they are opened, the overall size of the quotas and the opening date are published.
There is no need to publish the quantities allocated to each country or each importer because the
system does not work through any kind of prior dist ribution.  Information on the opening of the quota
is published in the Official Gazette ten working days in advance.
The volume of the quotas is determined on the basis of the methodology and commitments
made during negotiations on the Uruguay Round Agreement on Agriculture (Schedule LXXXV,
Costa Rica). In the case of these products, quotas have been set for the entire period covered by the
commitments in the Agreement (1995-2004).  Under Article 4 of the Regulation on the Allocation of
Tariff Quotas, the Ministry of Agriculture and Livestock determines the intervals at which tariff
quotas will be made available to the public. The inte rvals may vary according to the characteristics of
the product concerned. The total or partial opening of the quota for a specific period is publishedten days beforehand. The licences or certificates awarded by the commodity Exchange may be used
only within the maximum time-limit set out in the afore-mentioned document and are not transferable.
The licence-holder will have to import the goods while the licence is valid.  If he fails to do so, the
licence may not be applied to a quota for the same product opened at a later date.
As of the date when the opening of quotas is announced, submissions of quotations to a
session of the Exchange may be made as soon as the quotas are opened, namely, ten working days
after such submission.
Market criteria are used to allocate quotas to specific importers.  The importer making the
best bid to supply a specific quantity is awarded the quota at the session of the Exchange.  There is no
upper limit - above the total amount of the quota made available to economic operators for a specific
period - allocated to importers.G/AG/N/CRI/1/Rev.1
Page 5
This system does not involve licence applications.  Import certificates or licences will not be
awarded to the economic operators who do not make the best bid during the session of the Exchange.
Because of the nature of the transaction on the Exchange, neither the commodity Exchange nor
governmental institutions are obliged to inform pa rticipants of why they have been turned down and
the Exchange’s decisions may not be challenged.
Conditions governing participation in a negotiating session on quotas
Any national or foreign natural or legal person may take part in a negotiating session through
a member of the Exchange, and does not need official authorization or to register beforehand. The
sole requirement is that they should participate through a member of the Exchange who is duly
authorized to take part in sessions of the Exchange.
Documents and requirements for participation
No applications are needed to contract a member of the Exchange to participate in the session
of the Exchange. This is a private service between the economic operator and members of the
Exchange. Customs will clear imports on presentation of the usual international trading documentsand the certificate awarded by the commodity Exchange on which the transaction took place.  This
certificate entitles the holder to import a given quantity of goods at a lower tariff for a duly specified
period of time.
Conditions governing allocation
For each case, the Executive is authorized to  set the maximum time-limit within which the
imports must be effected.  This time-limit and the conditions for extending it are set forth in the
decision that is issued periodically to open quotas.
In accordance with Article 8 of the Regulation, licences are not transferable.
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