G/SCM /N/343/CRI  
21 October  2020 
(20-7293) Page: 1/15 
Committee on Subsidies and  Countervailing Measures  Original:  Spanish  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1  
OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES  
NOTIFICATION UNDER ARTICLE 32.6 OF THE  AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES  
COSTA RICA 
The following notification , dated 12 October 2 020, is being circulated at the request of the delegation 
of Costa Rica . 
 
_______________  
 
 
Costa Rica hereby submits this new and full notification pursuant to Article XVI:1 of the G ATT 1994  
and Articles  25 and 32.6 of the Agreement on Subsidies and Countervailing Measures . 
  G/SCM/N/343/CRI  
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  Contents  
I. THE DUTY -FREE ZONE REGIME  ................................ ................................ ....................  3 
II. THE INWARD PROCESSING REGIME  ................................ ................................ .............  9 
III. FISHING  ................................ ................................ ................................ .................. 11 
A. FUEL SUBSIDY PROGRAMME (DIFFERENTIATED PRICING)  ................................ .............. 11 
B. EXEMPTION FROM THE SINGLE TAX ON FUEL  ................................ ............................... 13 
Tables  
Table 1 Costa Rica: Exports of goods under the Duty -Free Zone Regime  
(2016 -2019)  ................................ ................................ ................................ ......................  9 
Table 2 Costa Rica: Exports of goods under the Inward Processing Regime  
(2016 -2019)  ................................ ................................ ................................ ..................... 10 
Table 3 Costa Rica: Production of the main trading groups in the domestic  
fisheries sector (tonnes) (2015 -2019)  ................................ ................................ .................. 11 
Table 4 Costa Rica: International trade statistics on th e fisheries subsector  
(2015 -2019)  ................................ ................................ ................................ ..................... 11 
Table 5 Costa Rica: Subsidy provided to fishers by means of a competitive price  
(2015 -2019)  ................................ ................................ ................................ ..................... 12 
Table 6 Costa Rica: Subsidy provided to fishers by means of the exemption from  
the single tax on fuel (2015 -2019)  ................................ ................................ ....................... 13 
 
  G/SCM/N/343/CRI  
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  NOTIFICA TION 
I. THE DUTY -FREE ZONE REGIME  
1. Descrip tion of the subsidy  
The Duty -Free Zone Regime is the set of incentives and benefits offered by the State to enterprises 
making new investments in Costa Rica, subject to compliance with the requirements and obligations 
laid down in the Duty -Free Zone Regime Law  No. 7210, the amendments thereto, and its 
implementing Regulations . The Regulations establish the definition of new investments in the 
country . The establishment location of a group of enterprises operating as beneficiaries of this 
Regime is called a "duty -free zone", which is required to be a defined area, without a resident 
population, authorized  by the Executive to operate in this capacity . 
2. Period of notifica tion 
This notification provides a description of the Duty -Free Zone Regime for the calendar year 2019 . 
3. Policy o bjective 
The primary objective of Law No. 7210 is to foster the socioeconomic development of Costa Rica by 
attracting foreign direct investment, encouraging domestic investment and promoting exports . The 
Duty-Free Zone is an important government policy tool for raising the standard of living of the 
population of Costa Rica by creating sources of quality jobs and supporting human development, 
while also taking into account the  less-developed areas of the country . This type of regime is 
conducive to the establishment of enterprises engaged in a wide range of highly sophisticated 
operations and production processes that contribute to the generation of wealth and transfer of 
technological know -how and increase the coun try's international competitiveness . Moreover, this 
Regime promotes the establishment of links with  enterprises providing goods and services at the 
national  level, and, in certain cases,  even allows for enterprises providing goods to be admitted to  
the Duty-Free Zone Regime . This strengthens both the  promotion  of employment  and the country's 
development . 
4. Background and authority  
• Duty-Free Zone Regime Law No. 7210 of 2 3 November 1 990 (full text attached as an 
Annex to Costa Rica's notification in document G/SCM/N/71/CRI of 5 March 2 002) and the 
amendments thereto ; 
• Regulations implementing the Duty -Free Zone Regime Law - Executive Decree No.  34739 -
COMEX -H of 2 9 August 2 008 (full text attached as an Annex to Costa Rica's notification in 
document G/SC M/N/211/CRI of 1 2 July 2 010) and the amendments thereto;  
• General Customs Law No. 7557 of 2 0 October 1 995, Section I, Chapter V (Duty -Free Zone 
Regime1) and the amendments thereto;  
• Regulations implementing the General Customs Law  - Executive Decree No. 25270-H of 
28 June 1 9962, Chapter X (Duty -Free Zone Regime),  and the amendments thereto . 
 
1 The parts referred to are attached as Annexes to Costa Rica's notification in document 
G/SCM/N/71/CRI of 5 March 2002. The full text is available for consultation in the archives of the Rules 
Division.  
2 The parts referred to are attached as Annexes to Costa Rica's notification in document 
G/SCM/N/71/CRI of 5 March 2002. The full text is available for consultation in the archives of the Rules 
Division.  G/SCM/N/343/CRI  
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  5. Form of the subsidy  
The subsidy consists of exemption from payment of taxes and consular fees for enterprises situated 
in duty-free zones . The incentives granted by this regime, as set forth in  the Duty -Free Zone Regime 
Law No. 7210, are: 
(a)  Inward clearance into the duty-free zone of raw materials, manufactured and 
semi-manufactured products, components and parts, packing materials and containers 
and any other goods required for the operations of the enterprise, without payment of 
any taxes or consular fees on their import . Exemption from all import or internal taxes 
on packing and packaging materials and containers, as well as on computer equipment 
and electronic waste and any other waste resulting from the enterprise's activities in 
the duty -free zone provided that t hese packing and packaging materials, containers and 
waste are to be recycled or reused.  
(b)  Inward clearance into the duty -free zone of machinery, equipment, accessories and 
spare parts for such machinery and equipment, without payment of any taxes or 
consular fees on their import . Likewise, exemption from all import taxes and consular 
fees on the import of motor vehicles required for their operation, production, 
administration and transport activities . Machinery or equipment that has been imported 
duty-free more than five years previously may be freely transferred, used for a different 
purpose or brought into national territory, without the requirement to pay any tax . 
Vehicles purchased by enterprises covered by the Duty -Free Zone Regime may transit 
via the national territory ; the enterprises shall obtain the appropriate permits for that 
purpose from the relevant authorities . If persons operating within national customs 
territory purchase such vehicles, they shall pay the relevant taxes for both transit an d 
import into the national territory, with no exemption from payment.  
(c)  Exemption from all tax and consular fees payable on imports of fuel, oil and lubricants 
required for the operation of the enterprises . This exemption shall be granted solely 
where t hese goods are not produced within the country with the required quality, 
quantity and timeliness . The Ministry of the Economy, Industry and Trade shall grant 
prior authorization for imports of these items.  
(d)  Exemption from all taxes relating to the exp ort or re -export of products . This exemption 
shall be granted for the re -export from the zones of production machinery and 
equipment that entered pursuant to th e Law. 
(e) Exemption for a period of 10 years from commencement of the operations from 
payment of taxes on capital and net assets, land tax and tax on the conveyance of real 
estate.  
(f) Exemption from sales and consumption tax on purchases of goods and services . 
(g) Exemption from all tax payable on remittances abroad . 
(h) Exemption from all  taxes on profits, and any other taxes for which the tax base is 
determined according to gross or net earnings, dividends paid to shareholders, or 
revenue or sales, according to the following distinctions : 
• For enterprises based within the Greater Metropoli tan Area (GAM) , the exemption 
shall be 100 % for a period of up to eight years, and 50 % for the following 
four years . 
• For enterprises based outside the GAM, the exemption shall be 100 % for a period 
of up to 12 years, and 50 % for the following six years.  G/SCM/N/343/CRI  
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  The durations shall be calculated from the starting date of the production operations of 
the beneficiary enterprise, provided that that date is no more than three years after the 
publication of the relevant executive decision . In the definition of "within"  and "outside" 
the GAM, the Foreign Trade Promotion Agency (PROCOMER) shall have regard to the 
rules laid down by the Ministry of National Planning and Economic Policy (MIDEPLAN) 
for this purpose.  
(i)  Exemption from all municipal tax and business tax for a period of 10 years . The 
enterprises covered by this Article shall be required to pay for the municipal services 
they use . In this situation, the municipality in question shall be entitled to charge up to 
double the tariffs laid down by law for these serv ices. Notwithstanding the preceding, 
enterprises based in duty-free zones shall be entitled to commission these services from 
any natural or legal person . 
(j) Exemption from all taxes on the import or export of commercial or industrial samples, 
subject to prior authorization from PROCOMER.  
(k)  To enhance their business operations, enterprises covered by the Duty -Free Zone 
Regime may freely execute all kinds of deeds and contracts in foreign currency - in 
which case the amounts must be paid in that currency - with respect to their 
international transactions or transactions with other enterprises established under the 
Duty-Free Zone Regime.  
The enterprises covered  by the Duty -Free Zone Regime shall be freely entitled to hold 
and manage the foreign currency they acquire according to the provisions of the 
preceding paragraph or arising from their ordinary business activity, and they shall be 
exempted from application  of the foreign exchange regulations . The Central Bank of 
Costa Rica shall lay down rules for this entitlement and activities deriving therefrom . 
(l) Enterprises based in duty -free zones located in "relatively less developed" areas 
according to the classif ication applied by the Ministry of Foreign Trade (COMEX), subject 
to a report by MIDEPLAN, shall be entitled to receive a credit equal to 10 % of the 
amount paid as wages and salaries during the previous year, after deduction of the 
amount paid to the Costa  Rican Social Security Fund (CCSS) on those wages and 
salaries, in accordance with the payroll reported to the CCSS . These enterprises may 
apply for coverage under this Law within five years after the entry into force of the 
provisions of this paragraph . The entitlement shall be granted for five years, and shall 
decrease by two percentage points per annum, through to its termination in the last 
year. This credit shall be charged against the national budget in the manner laid down 
in the Regulations implemen ting this Law . Enterprises wishing to operate as 
beneficiaries under this Law shall apply by no later than 3 1 December 1 999. The 
entitlement shall last for five years ; for the first four years it shall decrease by two 
percentage points per year, and it sha ll terminate in the last year . This credit shall be 
charged against the National Budget, and shall be in the form of registered negotiable 
securities.  
(m) Export processing enterprises operating as beneficiaries of the Duty -Free Zone Regime 
which, upon com pletion of four years of operation under that Regime, reinvest in the 
country may be granted an additional exemption from payment of income tax, according 
to the following criteria : 
• If the reinvestment is in excess of 25 % of the original investment, the exemption 
shall be for one additional year;  
• If the reinvestment is in excess of 50 % of the original investment, the exemption 
shall be for two additional years;  
• If the reinvestment is in excess of 75 % of the original invest ment, the exemption 
shall be for three additional years;  G/SCM/N/343/CRI  
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  • If the reinvestment is in excess of 100 % of the original investment, the exemption 
shall be for four additional years.  
The additional exemptions shall be for 75 % of the income tax payable . The additi onal 
exemptions granted in this context shall apply as from the end of the eighth year of 
operations, without prejudice to the exemptions for the final period of four years initially 
granted, which shall come into effect on the expiry of the additional exe mption period 
referred to here . In the case of enterprises based in "relatively less developed" zones, 
the additional exemption shall apply on completion of the twelfth year of operations, 
without prejudice to the exemptions for the final period of six yea rs initially granted, 
which shall come into effect on the expiry of the additional exemption period . The 
reinvestment giving rise to the additional exemption must be made after completion of 
the fourth year and before the start of the eighth year of operat ions under the Duty -Free 
Zone Regime . The additional exemption may only be granted to enterprises whose 
original investment in fixed assets was at least two  million  United States dollars 
(USD 2,000,000.00).  
6. Beneficiaries and mechanism  
Enterprises within  the following categories qualify for the Duty -Free Zone Regime : 
(a) Export processing industries that produce, process or assemble for export or re -export . 
(b)  Export trading enterprises, with no production activity, which merely handle, re -pack or 
re-distribute non -traditional goods and products for export or re -export . 
(c) Service enterprises that comply with the Strategic Eligibility Index for Service 
Enterprises (IEES) . Banking, financial and insurance entities based in duty -free zones 
do not qualif y for the benefits of this Regime . Natural  or legal persons engaged in 
providing professional services do not qualify for the Regime  either . 
(d) Enterprises administering industrial parks intended for occupation by enterprises 
operating under the Duty -Free Zone Regime, provided that the parks meet the minimum 
conditions in terms of infrastructure and the availability of services as set out in the 
Regulations implementing this Law . Such enterprises shall qualify for the exemptions 
specified above, provided t hat the industrial park developed by them is occupied solely 
by enterprises covered by the Duty -Free Zone Regime . If enterprises not covered by 
the Duty -Free Zone Regime set up in the park, the administrator shall forfeit the 
exemption referred to in Artic le 20(g) of the Duty -Free Zone Regime Law from that 
time, and the other exemptions shall be reduced on a pro rata basis, in the same way 
as in the case of sales in the national customs territory pursuant to Article 22 of the 
Duty-Free Zone Regime Law . 
(e) Enterprises or entities engaged in scientific research to raise the technological level of 
the country's industrial or agribusiness activity and foreign trade . Enterprises operating 
shipyards or dry or floating docks for the construction, repair or mainten ance of ships . 
(f) Processing industries that produce, process or assemble goods, irrespective of whether 
or not they export, provided that they meet the requirements laid down in Article  21 bis 
of the Duty -Free Zone Regime Law . 
Enterprises engaged in mining, exploration or extraction of hydrocarbons, the 
production or sale of arms and ammunition containing depleted uranium, companies 
engaged in the production or sale of any type of arms are not eligible for the Duty -Free 
Zone Regime . Likewise, enterpri ses that generate electric power, unless the power is 
for their own consumption, shall not be eligible . G/SCM/N/343/CRI  
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  There are various requirements for the granting of Regime status : 
(a) Any natural or legal person wishing to obtain Duty -Free Zone Regime status is requ ired 
to submit the relevant application to PROCOMER in digital format using the form 
available to users on the site http://www.procomer.com  and provide the requi site 
detailed information, in accordance with the rele vant instructions issued by PROCOMER, 
according to the terms and conditions defined in the Regulations .3 
(b) Within two working days of submission of the application, PROCOMER  shall notify the 
applicant of any missing documentation, or of any requirement that has not been met 
relating to the application for admission to the Regime, granting a period of 10 working 
days for compliance with the requirements .4 
(c) Within not more than one working day of receipt of all the required information, the 
competent technical unit of PROCOMER shall forward an opinion to the Board of 
Directors or to the entity to which the Board of Directors has delegated this role ; the 
opinion shall include  an assessment of the aspects set out in these Regulations and a 
recommendation, with supporting arguments, on whether or not Regime status should 
be granted to the applicant enterprise . The Board of Directors, the entity to which this 
role has been delega ted, or PROCOMER may seek the opinion of other government 
entities or bodies where it considers that this will assist with the assessment of the 
project . After examining the application, within five working days of receipt of the 
complete application, the Board of Directors or the relevant entity of PROCOMER shall 
submit the final recommendation to COMEX so that the Executive can make a decision 
on the matter within not more than four working days from receipt of PROCOMER's 
recommendation .5 
(d) At its disc retion, PROCOMER is empowered to seek expert opinions from various State 
institutions to assist its examination of the enterprise's application .6 
If the recommendation is approved, the Executive grants the applicant enterprise Regime status and 
issues an Executive Resolution, which must contain the information defined in Article 14 of the 
Regulations implementing the Duty -Free Zone Regime Law .7 The Executive R esolution  granting 
Regime status, the amendments thereto, and the Resolution relinquishing the Regime  shall be 
published in full in the Official Journal . 
7. Estima ted amount of the subsidy  
As this subsidy involves exemptions from a number of different taxes and consular fees, which vary 
according to the level of compliance with the  specified requirements, the comprehensive information 
required to estimate the amount of the subsidy is not available . 
8. Duration of the subsidy  
The benefits granted to enterprises by the Law take effect as of the date on which the Resolution 
granting Regime status is forwarded to the applicant, without prejudice to the second paragraph of 
Article 20(g) of the Duty -Free Zone Regime Law and the provisions in subparagraph (d) of 
Article  21 ter of the Law . Notwithstanding the foregoing, performanc e of the activities under the 
Regime and actual enjoyment of the benefits may not commence until such time as the beneficiary 
enterprise has signed an operating contract with PROCOMER, in the format established for this 
purpose . 
In order to commence produc tion operations under the Regime, the enterprise must have been 
authorized by the Directorate -General of Customs to act as a Customs Service Auxiliary, in 
accordance with the General Customs Law and its implementing Regulations . 
 
3 Article 10 of the Regulations implementing the Duty -Free Zone Regime Law.  
4 Article 13 of the Regulations implementing the Duty -Free Zone Regime Law.  
5 Article 13 of the Regulations implementing the Duty -Free Zone Regime Law.  
6 Article 26 of the Duty -Free Zone Regime Law.  
7 Article 27 of the Duty -Free Zone Regime Law.  G/SCM/N/343/CRI  
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  The Executive R esolution gr anting Regime status, the amendments thereto, and the Resolution 
relinquishing the Regime shall be published in full in the Official Journal . 
The main incentives of the Duty -Free Zone Regime are subject to a specific expiry, depending on 
the case  and as defined in the Law. Moreover, where there is non -compliance with the conditions 
laid down, the Regime may be revoked by COMEX.  
Of the incentives described in Section 5 of this notification, the following are subject to a specific 
expiry date : 
(a) Exemption from taxes on capital and net assets, payment of  land tax and the tax on 
the conveyance of real estate for a period of 10 years  from the commencement of 
operations .8 
(b) Exemption from all taxes on profits and any other taxes for which the tax base is 
calculated in relation to gross or net earnings, dividends paid to shareholders, or  
revenue or sales, according to the following distinctions9: 
• For enterprises based within the GAM, the exemption shall be 100 % for a period 
of up to eight years, and 50 % for the following four  years . 
• For enterpr ises based outside the GAM, the exemption shall be 100 % for a period 
of up to 12 years, and 50 % for the following six  years . 
(c) Exemption from all municipal and business taxes for a period of 10 years .10 
(d) Enterprises based in  duty-free zones located in  relatively less -developed areas are 
entitled to a credit of 10 % of the amount paid as wages and salaries during the previous 
year, which will be granted for five years and shall decreas e by two percentage points 
per annum, through to its termina tion in the last year .11 
(e) The additional 75 % exemption from income tax for export processing enterprises 
operating as beneficiaries of the Duty -Free Zone Regime which, on completion of four 
years of operation under that Regime, reinvest in the country will be12: 
• For one additional year if the reinvestment is in excess of 25 % of the original 
investment . 
• For two additional years if the reinvestment is in excess of 50 % of the original 
investment . 
• For three additional years if the reinvestment is in  excess of 75 % of the original 
investment . 
• For four additional years if the reinvestment is in excess of 100 % of the original 
investment . 
9. Trade effects of the subsidy 
The Duty -Free Zone Regime has played a crucial role in the diversification of the country's exportable 
supply . Over the years, it has seen a shift  from high volume  and less  complex activities to activities 
that are more sophisticated  and value -adding. This is the result of  the increased  professional ization 
of human talent, greater  openness  to trade  and solid conditions for setting up enterprises . 
 
8 See section 5(e) of this notification.  
9 See section 5(h) of thi s notification.  
10 See section 5(i) of this notification.  
11 See section 5(l) of this notification. In practice, this incentive has not been requested by any 
beneficiaries and therefore has not been applied for a number of years.  
12 See section 5(m) of this n otification.  G/SCM/N/343/CRI  
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  The exports of goods under the Duty -Free Zone Regime over the last three years are set out  in the 
table below : 
Table 1 Costa Rica : Exports of goods under the Duty -Free Zone Regime (2016 -2019)  
 2016  2017  2018  2019  
Value of exports  
(USD million ) 4,715 5,110 5,669 6,100 
Growth  
(%) **  13 8 11 8 
Source : PROCOMER, Balance de las Zonas Francas : Beneficio Neto del Régimen  para Costa Rica  (Assessment  
of the Duty-Free Zones : Net Benefit of the Regime for Costa Rica) .13 
* Preliminary figures  subject to revision . 
** Figures prepared by the a uthor , based on  data from PROCOMER.  
II. THE INWARD PROCESSING REGIME  
1. Descrip tion of the subsidy  
The Inward Processing Regime is the customs regime allowing the entry of goods into national 
customs territory with the suspension of all types of taxes, subject to lodgement of a guarantee 
deposit . The goods must be processed, repaired, reconstructed, installed, assembled and 
incorporated into sub -assemblies, machinery, transport equipment or appliances with a higher 
degree of complexity, under the conditions laid down in the Regulations and in accord ance with the 
provisions stipulated for this purpose by the competent administrative authority . 
2. Period of notification  
This notifica tion provides  a description of the Inward Processing Regime for the calendar year 2019.  
3. Policy o bjective 
The Inward Processing Regime is designed to promote production, employment, and foreign direct 
and domestic investment  The conjunction of all these aspects helps to achieve national development 
objectives , such as raising the standard of living of the populati on, increasing income levels, reducing 
unemployment and increasing the country's productivity and ability to compete internationally . 
4. Background and authority  
• General Customs Law  No. 7557 of 2 0 October 1 995, Chapter VI (Processing Regimes )14 
and the amendments thereto;  
• Regulations implementing the General Customs Law - Executive Decree No. 25270 -H of 
28 June 1 99615, Chapter  XIII ( Inward Processing Regime) and the amendments thereto;  
• Regulations on the Inward Processing Regime  - Executive Decree No. 40198 of 
13 December  2016.16 
 
13 Document available at: 
https://www.procomer.com/uploads/downloads/2bdf7ec8d4b97404799810951bb85752f95e5215.pdf . 
14 The parts referred to a re attached as Annexes to Costa Rica's notification in document 
G/SCM/N/71/CRI of 5 March 2002. The full text is available for consultation in the archives of the Rules 
Division.  
15 The parts referred to are attached as Annexes to Costa Rica's notification in document 
G/SCM/N/71/CRI of 5 March 2002. The full text is available for consultation in the archives of the Rules 
Division.  
16 The full text is attached as an Annex to Costa Rica's notification in documents G/SCM/N/299/CRI and 
G/SCM/N/315/CRI of 23 Octob er 2017.  G/SCM/N/343/CRI  
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  5. Form of the subsidy, beneficiaries and mechanism  
To be eligible for the Inward Processing Regime, the enterprise must choose one of the modalities 
available : 
• 100% re-export modality : enterprises choosing this option may not sell their products on 
the domestic market . 
• Re-export and domestic sale modality : under this modality , enterprises may sell the goods 
on the domestic market or simply re -export them . 
Enterprises operating under the "domestic sale" option are required t o pay the full tax payable for 
the definitive importation of the goods . Similarly, at the time of inward clearance of machinery and 
equipment under the Regime, they are required to pay the proportion of tax corresponding to the 
percentage of sales on the d omestic market in relation to the total sales of the enterprise . 
The obligations for Regime beneficiaries include the following : 
• To submit reports on all their operations to PROCOMER's Special Regimes Administration;  
• To keep a log of operations carried out under the Regime;  
• Prior to commencing operations, to apply to the Directorate -General of Customs for 
permission to operate as a Customs Service Auxiliary;  
• To keep goods entering under the Regime in authorized premises or plants;  
• To keep a separ ate stock control system and accounting records for operations carried out 
under the Regime;  
• To comply with customs legislation . 
6. Estima ted amount of the subsidy  
The information required to estimate the amount of the subsidy granted under this Regime is not 
available . 
7. Duration of the subsidy  
Regime benefits apply as from the date of issue of the authorization to commence activities under 
the Inward Processing Regime . The benefits granted by this Regime continue for an indefinite term, 
except in the event of revocation of authorization to operate under the Regime by COMEX, or 
relinquishment of Regime status by the beneficiary  enterprise . 
8. Trade effects of the subsidy  
The value of  the export s of goods  under the Inward Process ing Regime is set forth  in the table below : 
Table 2 Costa Rica : Exports of goods under the Inward Processing Regime (2016 -2019)  
 
2016  2017  2018  2019  
Value of exports (USD million ) 131 157 144 151 
Growth  
(%) **  12 20 -8 5 
Source : 2018 Statistical Yearbook , PROCOMER . 
* Preliminary figures subject to revision . 
** Figures prepared by the a uthor, based on  data from  PROCOMER.  G/SCM/N/343/CRI  
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  III. FISHING  
This section sets out the  production, export and import data from the domestic fish eries sector  over 
the past years . It also provides details on  the specific subsidy programmes granted to this sector 
under the Agreement on Subsidies and Countervailing Measures . 
Table 3 Costa Rica : Production of the main trading groups in the domestic  fisheries  sector 
(tonnes) (2015 -2019)  
Category  2015  2016  2017  2018  2019a/  
Crust acean s 971.6  710.4  - - - 
Finfish 2,804.2  2,407.3  128.8 80.4 131.6 
Molluscs 47.5  4.1  - - - 
Pelagic fish 6,160.4  4,325.3  5,337.4  7207.3 5,441.7  
Shark s 3,792.9  3,412.4  3,324.5  2,684.4  3,122.9  
Other 5.2  2.8  - - - 
Total  13,781.7 10,862.3  8,790.7  9,972.1  8,696.2  
a/Preliminary data. 
Source : Executive Secretariat for Sectoral Planning in Agriculture (SEPSA), with information from the 
Fisheries Department of the Costa Rican Fisheries and A quaculture  Institute ( INCOPESCA ). 
Table 4 Costa Rica : International trade statistics on the fisheries subsector(2015 -2019)  
Fisheries sector  2015  2016  2017  2018  2019  
USD million  
Exports  99.34 83.23 88.99 98.61 88.96 
Imports  76.61 81.06 91.20 86.71 77.10 
Tonnes  
Exports  13,423.97 11,355.83 12,401.87 13,954.27 12,532.10 
Imports  32,168.20 30,340.79 33,421.09 29,904.63 26,859.17 
Source : Based  on data from the Central Bank of Costa Rica (BCCR)  and PROCOMER.  
Note: These figures cover  chapter 3 of the Harmonized System . 
A. FUEL SUBSIDY PROGRAMME (DIFFERENTIATED PRICING)  
1. Descrip tion of the subsidy  
The non -sport national fishing fleet shall purchase fuel  (petrol and diesel ) from the Costa Rican 
Petroleum Refinery  (RECOPE) at a price that is competitive  in relation to  the international price and 
takes into account only the following elements : 
i. The cost of the product  (refined product : amount of the purchasing invoice . Unrefined 
product : cost of refinement in  Costa Rica).  
ii. Freight costs incurred until reaching the port of destination in Costa Ri ca. 
iii. Insurance for the fuel . 
iv. The cost of transporting the final product within the national territory  to the point of 
distribution . 
v. The cost of storage and pumping for the establishment where the fuel is sold . These 
amounts will be set based on the  previous month's average import cost, or the most 
recent similar information available . 
The Costa Rican Fisheries and A quaculture Institute (INCOPESCA) is the authority responsible for 
the administration and  control  of the efficient use of fuel intended f or non-sport fishing . G/SCM/N/343/CRI  
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  2. Period of notifica tion 
This notifica tion provides  a description of the fuel subsidy programme (differentiated pric ing) for the 
calendar year  2019.  
3. Policy objective  
Pursuant to Law No. 8436, fishing activity is declared to be of public and social interest, and it is 
also in the national interest to promot e and develop this activity and the related industry . In this 
respect, this subsidy seeks to strengthen this sector, particularly its capacit y to cr eate employment 
opportunities in the coastal communities with few alternatives for the  generat ion of income and, 
thus, with high levels of economic and social vulnerability . 
4. Background and authority  
• Article 45 of Law No. 7384 establishing  the Cos ta Rican Fisheries and A quaculture Institute 
(INCOPESCA), publi shed in Official Journal No. 62 of 29 March 1 994. 
• Article 123 of Law No. 8436 on the Law on Fishing and Aquaculture, published in 
Official  Journal No. 78 of 25 April 2 005. 
• Law No. 9134 on the authentic interpretation of Article 45 of Law No. 7384 and Article  123 
of Law No. 8436, publi shed in Official Journal No. 113 of 13 June 2 013. 
• Amendment to the Regulation s governing and controlling the efficient use of fuel at a 
competitive  price, i ntended for the non -sport national commercial  fishing fleet , within o r 
outside jurisdictional waters. INCOPESCA Executive Board Agreement  AJDIP/330 -2016, 
published in Official Journal No. 40 of 24 February 2 017. 
5. Form of the subsidy, beneficiaries and mechanism  
Legal or natural persons possessing commercial fishing licences may purchase  fuel at a differentiated 
price. The Regulation s governing and controlling the efficient use of fuel at a competitive price 
stipulate that e ach beneficiary may apply  to purchase fuel at a competitive price, either personally 
or through their representatives  with individual or collective  power of attorney  when the  application 
is made  through organizations . 
6. Estima ted amount of the subsidy  
The estimated amount of  the annual subsidy granted to fishers  by means of a competitive price  is 
set out  below : 
Table 5 Costa Rica : Subsidy provided to fishers by means of a competitive price 
(2015 -2019)  
Year USD million   
2015 2.20 
2016 1.93 
2017 1.62 
2018 1.37 
2019 1.09 
Source : RECOPE.  
7. Duration of the subsidy  
The benefits take effect as soon as the subsidy is established and continue for an indefinite term . G/SCM/N/343/CRI  
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  B. EXEMPTION FROM THE SINGLE TAX ON FUEL  
1. Descrip tion of the subsidy  
The non-sport national fishing fleet is exempt from pay ment of  the single tax on fuel, pursuant to 
Law No. 8114.  
2. Period of notification  
This notifica tion provides a description of the exemption from the single  tax on fuel for the 
calendar  year 2019.  
3. Policy objective  
Pursuant to Law No. 8436, fishing activity is declared to be of public and social interest, and it is 
also in the national interest to promote and develop this activity and the related industry . In this 
respect, this subsidy seeks to strengthen this sector, particularly its capacity to create employment 
opportunities in the coastal communities with few alternatives for the generation of income and, 
thus, with high levels of economic and social vulnerability . 
4. Background and authority  
• Article 1 of Law No. 8114 on tax simplification and efficiency , publi shed in Official  Journal  
No. 131 of 9 July 2 001. 
5. Form of the subsidy, beneficiaries and mechanism  
The benefit is granted to the non -sport national fishing fleet . When purchasing petrol or diesel, 
fishers  must present the purchase authorization issued by INCOPESCA  so that the  exemption from 
the single tax on fuel  may be applied . 
6. Estima ted amount  of the subsidy  
The estimated amount of the annual sub sidy provided by means of the  exemption from the single 
tax on fuel for the fishing fleet is set forth  below : 
Table 6 Costa Rica : Subsidy provided to fishers by means of the exemption from the single 
tax on fuel (2015 -2019)  
Year USD million  
2015 9.59 
2016 10.33 
2017 10.02 
2018 7.07 
2019 6.90 
Source : RECOPE.  
7. Duration of the subsidy  
The benefits take effect as soon as the subsidy is established and continue for an indefinite term . 
  G/SCM/N/343/CRI  
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  NOTIFICA TION UNDER ARTI CLE 32 .6 OF THE  AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES  
Costa Rica hereby submit s this notification pursuant to  Article 32.6 of the Agreement on Subsidies 
and Countervailing Measures . 
1. Overview  
The regulatory amendments detailed below are adjustments made  to the services category of the 
Duty-Free Zone Regime between 2018 and 2020. They address specific a spects identified as 
possessing features that were incompatible with the international standards established under 
Action 5 of the Action Plan on Base Erosion and Profit Shifting (known as  BEPS)  and were therefore 
corrected by the country . Although th ese amendments bear no relation to the 
World  Trade  Organization  Agreements , Costa Rica ha s decided to report them here, with a vi ew to  
maximizing transparency for Members and the general public . 
The changes were made at two levels . The first was the legal level, as part of which amendments  
were made to the Duty -Free Zone Regime  Law through Law No. 9689 of 24 May 2 019. The second 
was the administrative level, as part of which three amendments  were made to th e 
Implementing  Regulation s, through Executive Decrees Nos. 41.346 -H-COMEX, 41.783 -COMEX -H 
and 42.189 -COMEX -H of 4 October 2 018, 4 June 2 019 and 12 February 2 020, respectively . Through 
these  amendments , the features  of the Regime identified as possessing these inconsisten cies were 
eliminated, thereby ensuring  that the adjustment s required for  compl iance with 
non-compartmentalization ("ring-fencing "), substantiality and transparency  criteria  were made , as 
stipula ted by the international standard . 
2. Specific content of the amendments  
(a) Executive Decree No. 41.346 -COMEX -H of 4 October 2 018: 
Amendment  to the Regulations implementing the Duty -Free Zone Regime  Law 
No. 34.739 -COMEX -H of 29 August 2 008 (publ ished in Official Journal  No. 195 
of 23 October 2 018).  
This a mendment  brought the Regulations into line with the indicated  substantiality and 
transparency standards . Specifically, definitions were incorporated into the  Regulation s 
to clarify the concepts of authorized activit y and skilled employees, establishing 
parameters that ensure  that the exempt ed activity takes place in the granting  
jurisdiction and that the resources used to carry out the act ivity are consistent with its 
development . 
(b) Law No. 9689 of 24 May 2 019: Amendment to the Duty -Free Zone Regime  Law 
No. 7210 of 23 November 1 990, in order to ensure compliance with the 
international standards established by the Organisation for Economic 
Cooperation and Development (OECD) as part of the Action  Plan on Base 
Erosion (publi shed in Official Journal No. 99 of 29 May 2 019).  
This amendment  corrected  the features of the  Regime that were inconsistent with the  
BEPS Action 5 non-compartmentalization (ring -fencing) criteri on. Specifically, the 
maximum limit (50%) on the sales that the beneficiary enterprises  under the Regime's 
services category m ay make on the domestic  market  was eliminated . Furthermore, rules 
were established to ensure that these sales are subject to the same  fiscal treatment as 
that granted to these enterprise s' exports . 
In addition, a new requirement for this category  was laid down : compliance with the 
new Strategic Eligibility Index for Service Enterprises (IEES) introduc ed by this 
amendment , the development of which was delegated  to the implementing Regulations . 
(c) Executive Decree  No. 41.783 -H-COMEX of 4 June 2 019: Amendment 
to the Regulations implementing the Duty -Free Zone Regime Law 
No. 34.739 -COMEX -H of 29 August 2 008 (publi shed in Official Journal No. 114 
of 19 June 2 019).  G/SCM/N/343/CRI  
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  This amendment  eliminated the requirement to submit domestic market sales 
projections, which were previously provided by the  beneficiary service enterprises to 
the administrator of the Regime , the Foreign Trade Promotion Agency of Costa Rica  
(PROCOMER ). As an administra tive burden only falling on  enterprises affected by the 
sales restriction contained in the Law prior to the amendment described in 
paragraph  (a), it was considered to be a  potentially harmful characteristic in light of the 
non-compartmentalization  (ring-fencing)  criteri on, and was therefore  repealed . 
(d) Executive Decree No. 42.189 -COMEX -H of 20 December 2 019: Amendment  to 
the Regulations implementing the  Duty -Free Zone Regime Law 
No. 34.739 -COMEX -H of 29 August 2 008 (publi shed in Official Journal No. 28 
of 12 February 2020).  
This amendment developed  the regulatory provisions required to apply the IEES to 
enterprises that henceforth  choose to be admitted to the  Duty-Free Zone Regime under 
the services category . Crucially, a new chapter was incorporated into the existing 
Regulation s, entitled "Chapter  XXV - On the Strategic Eligibility Index for service 
enterprises under the classification set out in Article  17(c) of Law No. 7210". In this 
Chapter, rules are establ ished to ensure compliance with this Index, which was built 
and developed in the text based on the parameters stipulated by the Law . In essence, 
applicant  enterprises must henceforth belong to one of the strategic sectors stipulated 
in the Law and must comply with its requirements on investment in human and physical 
capital, in line with the levels defined in the Law . 
The amendments described above are contained in the most recent vers ion of the Duty -Free Zone 
Regime Law No. 7210 and in the latest  version of the Regulations implementing the  Duty-Free Zone 
Regime  Law, which may be accessed at:  
http://www.pgrweb.go.cr/scij/Busqueda/Normativa/Normas/nrm_texto_completo.aspx?nValor1=1
&nValor2=11593 . 
http://ww w.pgrweb.go.cr/scij/Busqueda/Normativa/Normas/nrm_texto_completo.aspx?nValor1=1
&nValor2=64019 . 
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