RESTRICTED  
  
WT/TPR/S/392  
24 July 2019  
(19-4906) Page: 1/155 
Trade Policy Review Body   
 
TRADE  POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
COSTA RICA 
This report, prepared for the fifth Trade Policy Review of Costa Rica, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing 
the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World 
Trade Organization), sought clarification from Costa Rica on its trade policies and practices.  
 
Any technical questions arising from this report may b e addressed to Mr Angelo Silvy 
(022 739 5249); Ms Eugenia Lizano (022 739 6578); Ms Stephanie Dorange -Patoret 
(022 739 5497).  
 
Document WT/TPR/G/392 contains the policy statement submitted by Costa Rica.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Costa Rica. This report was drafted 
in Spanish.  WT/TPR/S/392 • Costa Rica  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  8 
1   ECONOMIC ENVIRON MENT  ................................ ................................ ........................  13 
1.1   Main features of the economy  ................................ ................................ ...................... 13 
1.2   Recent economic developments  ................................ ................................ .................... 15 
1.2.1    Production and employment  ................................ ................................ ...................... 15 
1.2.2    Fiscal policy  ................................ ................................ ................................ ............ 17 
1.2.3    Monetary and exchange rate policy  ................................ ................................ ............ 22 
1.2.4    Balance of payments  ................................ ................................ ................................ 25 
1.3   Trends and patterns in merchandise and services trade  ................................ ................... 27 
1.3.1    General aspects  ................................ ................................ ................................ .......27 
1.3.2    Merchandise trade  ................................ ................................ ................................ ...27 
1.3.2.1    Composition of merchandise trade  ................................ ................................ .......... 27 
1.3.2.2    Direction of merchandise trade  ................................ ................................ ............... 29 
1.3.3    Trade in services  ................................ ................................ ................................ .....30 
1.4   Trends and patterns in foreign direct investment  ................................ ............................ 31 
2   TRADE AND INVEST MENT REGIME  ................................ ................................ ............  33 
2.1   General Framework  ................................ ................................ ................................ ....33 
2.2   Trade policy formulation and objectives  ................................ ................................ ......... 36 
2.3   Trade agreements and arrangements  ................................ ................................ ............ 38 
2.3.1    WTO ................................ ................................ ................................ ...................... 38 
2.3.2    Regional and preferential agreements  ................................ ................................ ........ 39 
2.3.3    Other agreements and arrangements  ................................ ................................ ......... 42 
2.4   Investment regime  ................................ ................................ ................................ .....42 
3   TRADE POLICIES A ND PRACTICES BY MEAS URE ................................ ........................  47 
3.1   Measures directly affecting imports  ................................ ................................ ............... 47 
3.1.1    Customs procedures and requireme nts and customs valuation  ................................ ......47 
3.1.1.1    Customs procedures  ................................ ................................ .............................. 47 
3.1.1.2    Customs valuation  ................................ ................................ ................................ 49 
3.1.2    Rules of origin  ................................ ................................ ................................ ......... 50 
3.1.3    Tariffs  ................................ ................................ ................................ .................... 50 
3.1.3.1    Tariff structure  ................................ ................................ ................................ .....50 
3.1.3.2    Tariff bindings  ................................ ................................ ................................ ......52 
3.1.3.3    Tariff quotas  ................................ ................................ ................................ ......... 52 
3.1.3.4    Preferential tariffs  ................................ ................................ ................................ .53 
3.1.3.5    Tariff concessions  ................................ ................................ ................................ .54 
3.1.4    Other charges affecting imports  ................................ ................................ ................. 54 
3.1.5    Import licensing, restrictions and prohibitions  ................................ ............................. 55 
3.1.6    Anti-dumping, countervailing and saf eguard measures  ................................ ................. 56 
3.1.6.1    Anti-dumping and countervailing measures  ................................ .............................. 56 WT/TPR/S/392 • Costa Rica  
 
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  3.1.6.2    Safeguards  ................................ ................................ ................................ ........... 59 
3.2   Measures directly affecting exports  ................................ ................................ ............... 60 
3.2.1    Customs procedures and requirements  ................................ ................................ .......60 
3.2.2    Taxes, charges and levies  ................................ ................................ ......................... 61 
3.2.3    Export prohi bitions, restrictions and licences  ................................ ............................... 62 
3.2.4    Export support and promotion  ................................ ................................ ................... 63 
3.2.4.1    Free Zone Regime  ................................ ................................ ................................ .63 
3.2.4.2    Inward Processing Regime  ................................ ................................ ..................... 65 
3.2.4.3    Duty Drawback Scheme  ................................ ................................ ......................... 66 
3.2.4.4    Export promotion programmes  ................................ ................................ ............... 66 
3.2.5    Export financing, insurance and guarantees  ................................ ................................ 66 
3.3   Measures affecting production and trade  ................................ ................................ .......67 
3.3.1    Incentives  ................................ ................................ ................................ ............... 67 
3.3.2    Standards and other technical requirements  ................................ ............................... 69 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ ....73 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 77 
3.3.4.1    Competition policy  ................................ ................................ ................................ 77 
3.3.4.2    Consumer protection  ................................ ................................ ............................. 81 
3.3.4.3    Price controls ................................ ................................ ................................ ........ 81 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ............. 82 
3.3.6    Government procurement  ................................ ................................ ......................... 83 
3.3.7    Intellectual property rights  ................................ ................................ ........................ 87 
3.3.7.1    Industrial property  ................................ ................................ ................................ 88 
3.3.7.1.1    Patents, utility models and industrial models  ................................ ......................... 88 
3.3.7.1.2    Other industrial property rights  ................................ ................................ ............ 89 
3.3.7.2    Copyright and related rights  ................................ ................................ ................... 90 
3.3.7.3    New varieties of plants  ................................ ................................ .......................... 91 
3.3.7.4    Provisions for the enforcement of IPRs ................................ ................................ .....91 
4   TRADE POLICIES B Y SECTOR  ................................ ................................ .....................  93 
4.1   Agriculture, forestry and fishing  ................................ ................................ ................... 93 
4.1.1    Characteristics, objectives and institutional framework  ................................ ................. 93 
4.1.2    Policy instruments  ................................ ................................ ................................ ...96 
4.1.2.1    Border measures  ................................ ................................ ................................ ..96 
4.1.2.2    Domestic support measures  ................................ ................................ ................... 99 
4.2   Mining and energy  ................................ ................................ ................................ .... 102 
4.2.1    General characteristics  ................................ ................................ ...........................  102 
4.2.2    Mining  ................................ ................................ ................................ ..................  103 
4.2.3    Hydrocarbons  ................................ ................................ ................................ ........  104 
4.2.4    Electricity  ................................ ................................ ................................ .............  105 
4.3   Manufactures  ................................ ................................ ................................ ...........  108 WT/TPR/S/392 • Costa Rica  
 
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  4.4   Services  ................................ ................................ ................................ ..................  110 
4.4.1    Financial services  ................................ ................................ ................................ ... 110 
4.4.1.1    General characteristics  ................................ ................................ ........................  110 
4.4.1.2    Banks  ................................ ................................ ................................ ................  114 
4.4.1.3    Insurance  ................................ ................................ ................................ ..........  119 
4.4.2    Telecommunications  ................................ ................................ ...............................  121 
4.4.3    Transport  ................................ ................................ ................................ ..............  126 
4.4.3.1    Overview  ................................ ................................ ................................ ...........  126 
4.4.3.2    Air transport and airports  ................................ ................................ .....................  127 
4.4.3.2.1    Air transport  ................................ ................................ ................................ .... 127 
4.4.3.2.2    Airports ................................ ................................ ................................ ...........  130 
4.4.3.3    Maritime transport and ports  ................................ ................................ ................  131 
4.4.3.3.1    Maritime transport  ................................ ................................ ...........................  131 
4.4.3.3.2    Ports ................................ ................................ ................................ ..............  132 
4.4.4    Tourism  ................................ ................................ ................................ ................  133 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 136  
 
CHARTS  
 
Chart 1.1 Merchandise exports and imports by type of product, 2012 and 2018  ......................... 29 
Chart 1.2 Merchandise trade by trading partner, 2012 and 2018  ................................ .............. 30 
Chart 2.1 Ordinary legislative procedure  ................................ ................................ ............... 34 
Chart 2.2 Institutions involved in trade policy  ................................ ................................ ........ 36 
Chart 2.3 Trade agreements in force, 2019  ................................ ................................ ........... 39 
Chart 2.4 Formalities for setting up companies  ................................ ................................ ......45 
Chart 3.1 Import Procedures, 2019  ................................ ................................ ...................... 48 
Chart 3.2 Frequency distribution of MFN tariff rates, 2019  ................................ ....................... 52 
Chart 3.3 Adoption of anti -dumping and countervailing measures, 2019  ................................ ...57 
Chart 3.4 Safeguards investigation, 2019  ................................ ................................ .............. 59 
Chart 3.5 Export procedures,  2019 ................................ ................................ ....................... 61 
Chart 3.6 Bodies of the National Quality System  ................................ ................................ ....69 
Chart 3.7 Preparation and adoption of Costa Rican technical regulations  ................................ ...70 
Chart 3.8 Preparation of "technical standards"  ................................ ................................ .......73 
Chart 4.1 National electricity system  ................................ ................................ ..................  106 
Chart 4.2 Share of electricity generation, 2013 and 2018  ................................ ......................  107 
Chart 4.3 Production of electrical energy by source, 2013 and 2018  ................................ ....... 108 
Chart 4.4 Institutions responsible for regulating and supervising the National Financial System  . 111 
Chart 4.5 Support mechanisms for development banking  ................................ ......................  115 
Chart 4.6 Pa rticipation in the mobile services market, 2013 -18 ................................ ..............  123 
Chart 4.7 Type of transport used for exports, 2018  ................................ ..............................  126 
Chart 4.8 Institutions operating in the aviation sector  ................................ ...........................  128 WT/TPR/S/392 • Costa Rica  
 
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  TABLES  
 
Table 1.1 Structure of GDP and employment 2012 -18 ................................ ............................ 13 
Table 1.2 Basic economic indicators, 2012 -18 ................................ ................................ ........ 16 
Table 1.3 Public sector financial accounts, 2012 -18 ................................ ................................ 21 
Table 1.4 Main monetary indicators, 2012 -18 ................................ ................................ ........ 24 
Table 1.5 Balance of payments, 2012 -18 ................................ ................................ .............. 26 
Table 1.6 Trade in services, 2012 -18 ................................ ................................ .................... 31 
Table 1.7 Foreign direct investment by activity, 2012 -18 ................................ ........................ 31 
Table 2.1 Main laws pertaining to trade po licy ................................ ................................ .......35 
Table 2.2 Trade agreements in force, 2013 -19................................ ................................ .......41 
Table 2.3 Main restrictions on domestic and foreign investment, 2019  ................................ ......43 
Table 2.4 International investment agreements and agreements on the avoidance of double 
taxation, 2018  ................................ ................................ ................................ ................... 46 
Table 3.1 Preferential rules of orig in, 2013 -18 ................................ ................................ .......50 
Table 3.2 Structure of MFN tariffs, 2013 and 2019  ................................ ................................ .51 
Table 3.3 Tariff lines for which the applied MFN tariff exceeds the bound tariff  ........................... 52 
Table 3.4 Summary of Costa Rica's preferential tariffs, 2019  ................................ ................... 53 
Table 3.5 Anti -dumping measures, 2019  ................................ ................................ ............... 59 
Table 3.6 Export charges  ................................ ................................ ................................ ....61 
Table 3.7 Revenue from export taxes, 2013 -18 ................................ ................................ .....62 
Table 3.8 Main requirements for admission to the Free Zone Reg ime ................................ ........ 63 
Table 3.9 Income tax for enterprises operating in free zones  ................................ ................... 64 
Table 3.10 Principal financial incentives for production and investment, 2013 -18 ....................... 67 
Table 3.11 Incentives granted for imports and local purchases of electric vehicles, 2018  ............. 68 
Table 3.12 Tax cost, 2013 -17 ................................ ................................ .............................. 68 
Table 3.13 Regulations of the National Quality System, 2019  ................................ .................. 69 
Table 3.14 Main changes to the stages in the preparation of an RTCR  ................................ .......71 
Table 3.15 Main legislation on sanitary and phytosanitary matters  ................................ ........... 73 
Table 3.16 Provisions governing phytosanitary measures, 2013 -18 ................................ .......... 76 
Table 3.17 Exceptions to the compe tition law, 2019  ................................ ............................... 78 
Table 3.18 Competition data, 2013 -18 ................................ ................................ .................. 80 
Table 3.19 Main legislative changes concerning consumer protection, 2013 -18 .......................... 81 
Table 3.20 Main legislation governing government procurement  ................................ .............. 83 
Table 3.21 Ordinary govern ment procurement procedures, 2019  ................................ ............. 85 
Table 3.22 INS: exceptions to the ordinary procedures, 2019  ................................ .................. 86 
Table 3.23 Procurement breakdown by type of procedure, 2013 -18 ................................ ......... 87 
Table 3.24 Main legislation concerning protection of intellectual property rights, 2019  ................ 87 
Table 3.25 Patents, 2013 -18 ................................ ................................ ............................... 89 
Table 3.26 Border measures, 2013 -18 ................................ ................................ .................. 92 
Table 4.1 Principal indicators for the agricultural sector, 2013 -18 ................................ ............. 93 WT/TPR/S/392 • Costa Rica  
 
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  Table 4.2 Institutions within the agricultural public sector  ................................ ....................... 94 
Table 4.3 Principal agricultural legislation  ................................ ................................ .............. 95 
Table 4.4 Tariff lines for which the MFN applied tariff exceeds the bound rate, 2018  ................... 96 
Table 4.5 Principal changes in tariff quota administration from 2016  ................................ ........ 97 
Table 4.6 Domestic support to the agricultural sector, 2013 -2017 ................................ ..........  100 
Table 4.7 Access to the energy market  ................................ ................................ ...............  103 
Table 4.8 Main legislation regulating the electricity market  ................................ ....................  105 
Table 4.9 Private generating plant operating regimes  ................................ ...........................  107 
Table 4.10 Principal indicators in the manufacturing sector, 2013 -18 ................................ ...... 109 
Table 4.11 The National Financial System (entities and total assets), 2013 and 2018  ...............  110 
Table 4.12 Main laws regulating the National Financial System  ................................ ..............  112 
Table 4.13 Loa n portfolio of public and private commercial banks, 2013 -18 (August)  ...............  117 
Table 4.14 Bank soundness indicators, 2013 -18 ................................ ................................ .. 118 
Table 4.15 Financial intermediation margin, 2013 -18 ................................ ...........................  118 
Table 4.16 Funds of the Development Banking System  ................................ .........................  119 
Table 4.17 Insurance sector indicators, 2013 -18 ................................ ................................ .. 121 
Table 4.18 Legislation concerning telecommunications services  ................................ .............  121 
Table 4.19 Conditions governing the provision of public telecommunications services  ...............  122 
Table 4.20 Penetration of telecommunications services, 2013 -18 ................................ ...........  123 
Table 4.21 Competition in the relevant telecommunications markets, 2019  .............................  124 
Table 4.22 Main legislation on air transport  ................................ ................................ .........  128 
Table 4.23 Main legislation governing maritime transport  ................................ ......................  131 
Table 4.24 Selected tourism sector indicators, 2013 -18 ................................ ........................  133 
Table 4.25 Main legislation governing the tourism sector  ................................ ......................  134 
Table 4.26 Tourism contracts  ................................ ................................ ............................  135 
 
BOXES  
 
Box 2.1 CAFTA -DR: Tariff reduction, 2013-18 ................................ ................................ ........ 40 
Box 3.1 Summary of VAT rates, 2019  ................................ ................................ ................... 55 
Box 3.2 Circumvention practices  ................................ ................................ .......................... 58 
Box 3.3 Imports excluded from the Inward Processing Regime  as from 2016  ............................. 65 
Box 3.4 Main OECD recommendations  ................................ ................................ .................. 77 
Box 3.5 Government procurement procedures and modalities  ................................ .................. 84 
Box 4.1 Agro -industry concentration, 2019  ................................ ................................ .........  102 
Box 4.2 Basel principles in the banking sector  ................................ ................................ ..... 117 
Box 4.3 Self -issue insurance and conventional insurance  ................................ ......................  120 
Box 4.4 Platforms to facilitate procedures involved in port operations  ................................ ..... 127 
 WT/TPR/S/392 • Costa Rica  
 
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  APPENDIX TABLES  
 
Table A1. 1 Merchandise exports by HS section and main chapter, 2012 -18 ............................  136 
Table A1. 2 Merchandise imports by HS section and main chapter, 2012 -18 ............................  137 
Table A1. 3 Merchandise exports by trading partner, 2012 -18 ................................ ...............  138 
Table A1. 4 Merchandise impo rts by trading partner, 2012 -18 ................................ ...............  139 
 
Table A2. 1 Trade measures notified to the WTO, 1 January  2013-30 April 2019 ......................  140 
 
Table A3. 1 Customs regimes, 2019  ................................ ................................ ...................  143 
Table A3. 2 Summary analysis of the MFN tariff, 2019  ................................ ..........................  144 
Table A3. 3 Applied MFN tariff quota utilization  ................................ ................................ .... 145 
Table A3. 4 Preferential tariff quota utilization  ................................ ................................ ..... 146 
Table A3. 5 Other charges on imports, 2019  ................................ ................................ ........  149 
Table A3. 6 Import restrictions  ................................ ................................ ..........................  151 
Table A3. 7 Export restrictions  ................................ ................................ ...........................  153 
 
Table A4. 1 Main provisions on air services, 2018  ................................ ................................  154 
 
 
  WT/TPR/S/392 • Costa Rica  
 
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  SUMMARY  
1. Costa Rica is an upper middle -income country that presents positive human development 
indicators. In 2012 -18, per capita GDP at current prices increased by 20 % to reach USD  12,017 in 
2018. Real GDP also increased to an annual average rate of 3 .5%, in tandem with its potential 
growth, and was sustained mai nly by the rise in internal demand, especially by final household 
consumption. Net exports of goods and services also made a positive net contribution to GDP, due 
largely to the good performance of service exports. Nevertheless, the unemployment rate remai ned 
relatively high during the period under review, and stood at between 9 % and 10 % (annual average).  
2. One of the major challenges facing Costa Rica is how to achieve healthy public finances. The 
Central Government's deficit has remained above 5 % of GDP sin ce 2013 and has resulted in a 
significant rise in the debt/GDP ratio. To deal with this deterioration of public accounts, in 2018 the 
Law on the Strengthening of Public Finances was passed, introducing a series of changes, notably 
income tax reform; the in troduction of a value -added tax to replace the general sales tax; the 
adoption of measures to contain growing expenditure; and the establishment of a fiscal rule. This 
rule limits current expenditure and links it to the level of Central Government debt as a percentage 
of GDP, and to average growth of nominal GDP.  
3. With a view to administering its monetary policy, Costa Rica gradually implemented a flexible 
inflation -targeting scheme that was fully adopted in 2018. At that point, the long -term inflation 
targe t of 3% ± 1 percentage point was also approved. In the period under review, inflation remained 
within or under the target range. Active interest rates remained high due to an insufficient supply of 
financial resources for the private sector and high credit  demand. Costa Rica maintained an exchange 
rate band until January  2015, when it adopted a managed floating exchange rate system.  
4. Costa Rica has a structural savings -investment gap that is reflected in a relatively high deficit 
for the balance -of-payments current account, due in large measure to a high fiscal deficit. In the 
period under review, the current account deficit as share of GDP decreased, falling from 5.2 % of 
GDP in 2012 to 3.1 % in 2018. This is partly due to a lower deficit in the balance of tra de in goods, 
but above all to the increase in the balance of services surplus. Since 2015, the surplus of net 
services exports has been higher than the balance of goods deficit, which helped to improve the 
current account balance. The income balance has tr aditionally seen a deficit, due primarily to the 
fact that outflows under the heading of utilities of foreign firms operating in the country are higher 
than inflows of family remittances.  
5. In the period under review, Costa Rica's foreign trade growth rate s lowed down, mainly due 
to lower growth of imports. Manufactured products still account for the bulk of goods exports, 
i.e. 75% of the total in 2018. During the review period, the major manufactured goods for export 
were medical devices, followed by chemica ls, electronics, tyres, paper articles and rubber. One of 
the most significant changes to the composition of exports has been medical instruments and devices 
produced by companies located in free zones. These have become the leading export product and 
represented 28.9 % of total exports of goods in 2018 (16.9 % in 2012). However, agricultural 
products continue to feature among the leading export products: bananas are the main agricultural 
export (9.1 % of the total in 2018), followed by pineapples (8.9 %) and c offee (2.7 %). The 
United  States is Costa Rica's main export market, having absorbed 40.6 % of its exported goods in 
2018, followed by the E uropean Union with 20.8 % and the countries of the Central American 
Common Market (CACM) with 16 %. Imports are composed  mainly of manufactured products, which 
represented over three quarters of the total amount in 2018. Imports continue to come mainly from 
the United States, accounting for 39.1 % of total imports, followed by China (23.1 %) and 
the EU (9.6%). 
6. Costa Rica is a  net recipient of foreign direct investment (FDI). From 2012 to 2018, the FDI 
stock rose by 93 % to USD  43,100  million (71.7 % of GDP); the annual flow of FDI was on average 
USD 2,600  million. FDI in the manufacturing sector increased, especially in high tec hnology 
segments, such as medical equipment produced in free areas, and amounted to 53.2 % of total FDI 
in 2018. The United States continues to be the leading source of FDI, accounting for 62.2 % of the 
total in 2018, followed by the Netherlands, Panama and Mexico.  
7. The goals of Costa Rica's trade policy are listed in the National Development Plan. In 
accordance with the latest Plan (2019 -2022), foreign trade should be a tool for promoting the WT/TPR/S/392 • Costa Rica  
 
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  country's socio -economic development. The main objective of the country's foreign trade policy is 
to foster greater openness to trade and economic internalization in order to ensure more efficient 
resource allocation and thus create more sources of employment while reducing poverty and 
inequality. To this end, Costa Rica is using three strategies: the negotiation, implementation and 
administration of trade agreements; the development and promotion of exports of goods and 
services; and the attraction of foreign direct investment.  
8. Costa Rica, as a founding Member of the WTO, supports the inclusion of new trade -related 
issues in the negotiations. In 2017, Costa Rica ratified and approved the Protocol on the Trade 
Facilitation Agreement (TFA) and notified that it wo uld implement immediately almost all the 
provisions of the Agreement, except specific provisions related to import/export and transit. Between 
2012 and 2015, Costa Rica also participated in negotiations to increase the coverage of the 
Information Technolog y Agreement, to which it is signatory. Since 2015, Costa Rica has been an 
observer to the Committee established under the plurilateral Agreement on Government 
Procurement. Since its previous review in 2013, Costa Rica has regularly submitted notifications 
under various WTO Agreements. With regard to dispute settlement, Costa Rica has not participated 
in any dispute either as a complainant or a third party. However, in 2017 the first and only complaint 
was brought against Costa Rica. Costa Rica's trade polic ies have been reviewed four times by 
the WTO.  
9. Costa Rica attaches a great deal of importance to regional integration and, for that reason, 
has negotiated several trade agreements. These include the Central American Common Market 
(CACM) agreement and the Do minican Republic -Central America -United States Free Trade 
Agreement (CAFTA –DR). Since its previous trade policy review in 2013, Costa Rica has started to 
apply trade agreements signed with the European Free Trade Association (EFTA) States and 
Colombia, Mex ico, Peru, Singapore and the EU, and has deepened existing agreements. Moreover, 
in 2018, it signed a free trade agreement with the Republic of Korea.  
10. The foreign investment regime did not experience any major changes in the period under 
review. Foreign in vestors do not require prior authorization to invest. However, some restrictions do 
exist. Costa Rica does not impose exchange rate restrictions or limits on the repatriation of profits 
or capital, but remittances are subject to a tax. Foreign investment i s granted national treatment, 
but some activities are reserved for the State or for national investors. State monopolies exist for: 
the provision of public fixed -line telephone services; the import, refinement and wholesale 
distribution of petroleum and pe troleum by -products; the manufacturing and marketing of liqueurs; 
and lotteries and bingo. The Constitution provides that certain activities must remain under State 
ownership. However, national or foreign private investment in these activities, except for opencast 
mining and the exploration and exploitation of oil fields, is permitted.  
11. Since its previous review, Costa Rica has adopted various trade facilitation measures. It has 
continued to develop the Single Window for Foreign Trade (VUCE  2.0) to enable th e use of an 
e-payment and digital signature system, which will gradually include new functions. It has also made 
progress on certification processes for authorized economic operators (AEO). Furthermore, in 2017, 
the National Trade Facilitation Council (CON AFAC) was established to implement the Trade 
Facilitation Agreement (TFA). Despite the trade facilitation measures, the involvement of a customs 
broker continues to be necessary for most customs operations. Customs declarations are subject to 
a selective a nd random process for determining whether or not goods need to be inspected. In 2018, 
over 90 % of imports were allowed in without inspection.  
12.  In 2013, the Regulations on the Implementation of Customs Reference Values were repealed. 
Reference prices are th erefore not used currently. Costa Rica uses the customs valuation methods 
set out in the Agreement on Implementation of Article VII of the General Agreement on Tariffs and 
Trade 1994. Costa Rica uses databases of values of goods for risk assessment purpose s. 
13. Costa Rica's tariffs are based on the Central American Tariff System (SAC), barring a few 
exceptions. The MFN tariff consists of the import tariff duty plus a levy of 1 % that is applied to 
virtually all imports. In 2019, the tariff contained 10,434 12 -digit tariff lines of the HS 2017. 
Costa  Rica only applies ad valorem  tariffs. The MFN tariff is made up of 14 rates that vary between 
0% and 151 %. The simple average of applied MFN duties did not change significantly between 2013 
and 2019 and remains about  7%. The average tariff for agricultural goods (WTO definition) was 
14.1% in 2019, considerably higher than for non -agricultural products (5.6 %). The products with 
the highest average tariffs are dairy products (53.8 %), followed by animals and animal produ cts WT/TPR/S/392 • Costa Rica  
 
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  (28.8 %), sugar and confectionery (17.4 %) and clothing (14.8 %). Costa Rica bound all its tariff at 
rates that vary between 0 % and 233.07 %; 77.6 % of lines were bound at a rate of 45 %. 
14. Costa Rica gives preferential treatment to imports from countries with  which it has preferential 
agreements. The majority of imports from the CACM enter tariff -free, with the exception of sugar 
and coffee. Similarly, tariff preferences granted under various agreements (CAFTA -DR, Canada, 
Chile, Dominican Republic, Mexico and Panama) exceed 95 % of the tariff universe. The average 
preferential tariff under the agreements negotiated by Costa Rica is, in any case, much lower than 
the average MFN tariff. Preferential tariffs vary between 0.3 % and 3.9 %, and are lower for 
non-agricul tural products, ranging from 0 % to 2.1 %. 
15. Costa Rica applies taxes and ad valorem  or specific charges that generally affect both domestic 
products and imports. The only tax that is applied solely to imports is the tax on imported beer, 
which is used to fund  the Institute for Municipal Promotion and Support (IFAM). Costa Rica continues 
to tax banana, coffee and live cattle exports.  
16. Costa Rica prohibits or restricts imports and exports of specific products with a view to 
protecting the environment, species, ar chaeological heritage and health,  as well as in the interest of 
public safety. For these reasons, certain goods require a permit or authorization (non -automatic 
licence) for import and export purposes.  
17. The main change relating to trade defence that occurre d during the review period was the 
introduction in 2017 of a regulation enabling the authorities to conduct anti -circumvention 
investigations . Costa Rica does not regularly use trade defence measures. During the review period, 
two anti -dumping investigatio ns were initiated, one concerning white sugar and the other steel 
drums. Only the first resulted in the imposition of a measure. Similarly, Costa Rica did not initiate 
any investigation into subsidies, nor did it impose any countervailing or anti -circumven tion measure, 
but it did notify the WTO that it had initiated two safeguard investigations relating to pounded rice 
and steel bars. However, only one measure was applied affecting pounded rice: a tariff surcharge of 
24.88 % on the applied tariff of 35 %. This measure was adopted in 2015 for a four -year period with 
a phasing -out period.  
18. In 2017, Costa Rica notified the WTO of two subsidy -related programmes: the Free Zone 
Regime and the Inward Processing Regime. Through the first, fiscal incentives are offered to 
domestic and foreign investors so long as they meet specific investment, employment and national 
value -added criteria. Starting from 2016, they were given a certain leeway to meet these criteria. 
Similarly, on 1  January  2016, the income tax exoneration for export processing firms was eliminated 
unless these became "processing companies that produce, process, or assemble goods, irrespective 
of whether or not they export". In addition to these programmes, Costa Rica grants other fiscal and 
financial incent ives to support MSMEs, promote the green economy and assist women entrepreneurs, 
as well as to specific sectors. Costa Rica does not have official export funding programmes nor export 
credit insurance programmes.  
19. The process for formulating Costa Rican tec hnical regulations was modified significantly in 
2015 with a view to making it more streamlined. The country's technical regulations were not the 
subject of specific trade concerns within the WTO's Committee on Technical Barriers to Trade during 
the review  period. The plant and animal health policy does not appear to have changed much during 
the review period, and Costa Rica continues to attach great importance to it, having traditionally 
been an exporter of agricultural products. During the review period, the Members questioned 
three  plant and animal health measures notified by Costa Rica. One of them, the suspension of the 
issuing of forms on phytosanitary requirements for the import of avocados resulted in a complaint 
brought against Costa Rica under the dispute settlement system.  
20. All economic operators, both public and private, whether or not they are established in 
Costa  Rica, are subject to the Competition Law when their actions take effect in the country. 
However, certain sectors are not subject to the  provisions of this Law. Absolute monopolistic 
practices, deemed null and void, are prohibited, as are relative monopolistic practices. Economic 
mergers should be notified and are subject to control when the shares or the total income of the 
economic agent s involved exceed a specific threshold. The principle of favourable presumption is 
used in analysing mergers. Vertical agreements and mergers may be authorized even when they WT/TPR/S/392 • Costa Rica  
 
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  distort competition if they have a positive impact on the market. A draft law was  recently proposed 
to reform the competition framework.  
21. The State plays a pivotal role in the Costa Rican economy. There are 62 public enterprises in 
Costa Rica, all fully state -owned, and 50 non -state public entities. The majority of these operate in 
the services sector, especially the financial sector - both banking and insurance - and in the 
communications and energy sectors. Some of these entities have their own public procurement 
systems. Costa Rica notified five trading enterprises consistent with the  definition under Article XVII 
of the GATT: LAICA (sugar); RECOPE (hydrocarbons); CORFOGA (cattle); ICAFE (coffee); and 
CONARROZ (rice).  
22. The Government Procurement Law governs the purchases of public entities, except for 
non-state public entities financed over 50 % with own capital, public entities whose capital stock is 
owned mainly by individuals, and activities subject by law to a special procurement system. This 
Law was modified in 2016 to give way to a digital and unified public procurement system, whic h is 
still not being used by all institutions, and again in 2018 to allow SME consortia to participate in the 
procurement process. In accordance with the Law, the participation of foreigners is based on the 
principle of reciprocity, although in practice th ey are given national treatment. Nevertheless, any 
public purchase gives preference to products manufactured domestically. Ordinary procurement 
procedures (and modalities) exist, as well as exceptions. Ordinary procedures include competitive 
bidding (open and abbreviated) and auctions. Direct award of contracts, while an exception to the 
normal procedures, is the most widely used procedure. Use of these procedures, including the direct 
award of contracts, is determined by thresholds that vary depending on e ach institution's budget. 
That is why there is not a single threshold per procedure.  
23. Costa Rica's intellectual property rights are protected by the Constitution and by legislation 
that did not change significantly during the review period, except for the 2 014 revision of the 
Regulations implementing the Law on Patents, Industrial Designs and Utility Models. Costa Rica has 
signed various WIPO agreements, including the Marrakesh Treaty, which entered into force during 
the review period. With a view to acceler ating the patent application process, Costa Rica has, since 
2016, participated in the System of Cooperation on Aspects of Operational Information and Industrial 
Property. The National Customs Service (SNA) may automatically suspend customs clearance, in th e 
absence of a formal request by the right -holder, when it believes or suspects that goods violate 
intellectual property rights.  
24. Costa Rica's agricultural sector has a dual structure, with a dynamic export sub -sector that 
has developed alongside a sub -sector of traditional crops intended mainly for the domestic market, 
with lower productivity. The sector is facing some challenges, such as the need to increase 
productivity and enhance services provided to agriculture, while capitalizing on the transition off ered 
by tariff liberalization negotiated under free trade agreements. To tackle these challenges, better 
integration in international markets is being sought, as well as a stronger domestic market, enhanced 
agro-business management, and modernization of ag encies entrusted with implementing 
agricultural policy.  
25. The agricultural sector has traditionally benefited from greater tariff protection. During the 
review period, various requests were made to initiate preliminary safeguard investigations relating 
espec ially to rice. However, only one measure was applied to pounded rice. Furthermore, i n 2017 
and 2018, Costa Rica imposed a special agricultural safeguard measure that affected brown rice. 
The protection afforded to certain products has reduced market compet ition. This is the case of rice, 
which, in addition to benefiting from tariff protection and safeguard measures, has also benefited 
from other measures. The price of rice is still subject to intervention; tariff quotas for rice in the 
husk are only used wh en there are shortages on the domestic market, and participation in the import 
quota is subject to a requirement to purchase domestically grown rice.  
26. Costa Rica notified the WTO that during the period 2013 -17 it did not grant any export 
subsidies for agric ultural products and that domestic support provided to agriculture included: 
research, extension and advisory services; pest and disease control programmes; marketing and 
promotion services; and environmental programmes. Only the last of these offers econo mic 
compensation.  WT/TPR/S/392 • Costa Rica  
 
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  27. Mineral resources and hydrocarbons are the property of the State and may be exploited 
directly or through the granting of operating permits and concessions, both to nationals and 
foreigners. State company RECOPE still has the monopoly on the import, refining, transportation 
and wholesale distribution of petroleum and petroleum by -products. The price at which fuel is sold 
to the public is set using the international price as a benchmark, and is the same at all service 
stations throughout th e country. In the electricity sector, public operators may participate in the 
generation, transmission and distribution/marketing of electricity, while private companies may only 
participate in electricity generation. Foreign firms must be domiciled in Cos ta Rica to operate a 
generation plant and their investment is limited to 65 % of the capital. The state -owned Costa Rican 
Electricity institute (ICE) continues to be the largest generator and distributor/marketer of electric 
energy. It is also responsible f or administering and operating the national transmission grid. ICE has 
exclusive rights to participate in the purchase and sale of electricity on the regional market.  
28. The manufacturing sector is composed of export -oriented high -tech industries, as well as less 
competitive industries oriented mainly towards the domestic market. During the period under 
review, the main export products were medical, surgical, dental and veterinary instruments, as well 
as orthopaedic items and apparatus, produced mainly by comp anies located in free zones.  
29. The State's involvement in the banking and insurance sector continues to be significant. In 
2018, State banks held 52 % of the total assets of the banking sector and 47 % of the total assets of 
the national financial system. Stat e banks enjoy certain advantages over private banks. For example, 
deposits are fully guaranteed, while private commercial banks do not offer this type of guarantee. 
Also, unlike private commercial banks, in order to attract current account deposits, State banks do 
not need to use a specific percentage of their current account deposits to grant preferential loans, 
whether through the Development Bank or directly; nor do they need to meet other financial 
penetration requirements. Furthermore, State banks have  the monopoly on deposits of public 
entities. The preferential treatment given to State banks may have an impact on resource allocation. 
Foreign private banks may set up subsidiaries in Costa Rica, but not branch offices. Since 2013, 
banking performance ha s been good in terms of solvency, albeit with relatively narrow profit 
margins, and particularly so in the case of State banks. Moreover, the low level of competition in 
the banking sector leads to high intermediation margins. In the insurance market, notw ithstanding 
liberalization, the state -owned National Insurance Institute remains the primary provider. Foreign 
companies may establish branches and representative offices in Costa Rica. There are no limits on 
the number or type of transactions they conduct . 
30. In the telecommunications sector there are both public and private operators. However, State 
enterprise ICE continues to hold the monopoly on traditional basic fixed -line telephone services and 
captures the majority of the mobile telephony market, although its share of this market has dropped 
since 2013. This is due to the fact that during the review period, the sector came under review with 
a view to identifying those markets in which competition should be permitted.  
31. International air services are governed by agreements/memoranda signed by Costa Rica or, 
failing that, by the principle of reciprocity. This principle also applies to international maritime 
transport services. Involvement of foreigners in the provision of cabotage services is limited. T he 
State owns public ports and airports, whose construction, operation and administration may be 
handled through concessions.  
32. Tourism is one of the most dynamic sectors in the Costa Rican economy and has become a 
significant generator of foreign currency. Costa Rica promotes sustainable, innovative and inclusive 
tourism. Foreigners may provide any kind of tourism service in Costa Rica.  
 WT/TPR/S/392 • Costa Rica  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main features of the economy  
1.1.  Between 2012 and 2018, the changes to the productive structure of the Costa Rican economy 
observed during the previous review continue to be consolidated. The contribution of traditional 
activities to GDP fell, with the manufacturing industry dropping from 14.8 % of GDP  at basic prices 
in 2012 to 12.9 % in 2018, while agriculture, forestry and fisheries stood at 5.0 % of GDP in 2018 
compared to 5.9 % in 2012. Services, on the other hand, continued to grow steadily, and their share 
of GDP (in current terms) grew from 70.1 % in 2012 to 73.9 % in 2018 (Table 1.1). The services that 
most contributed to GDP in 2018 were: education, and human health and social welfare activities; 
professional, scientific, technical and administrative activities and support services; and trade.  
Table  1.1 Structure of GDP and employment 2012 -18 
 
2012  2013  2014  2015  2016  2017  2018  
Structure of current GDP, basic 
prices  (%)        
Agriculture, forestry and fisheries  5.9  5.5  5.6  5.4  5.6  5.4  5.0  
Mining and quarrying  0.3  0.3  0.3  0.3  0.3  0.3  0.3  
Manufacturing  14.8  13.8  13.3  12.4  12.4  12.7  12.9  
Electricity, water and sanitation 
services  3.0  3.4  3.3  3.1  3.1  2.9  3.1  
Construction  5.9  5.2  5.2  5.3  5.0  4.6  4.9  
Services  70.1  71.8  72.4  73.4  73.6  73.9  73.9  
Wholesale and retail trade, repair of 
vehicles  10.3  10.4  10.4  10.3  9.9  10.0  10.1  
Transport and warehousing  4.2  4.2  4.4  4.7  4.8  4.8  4.7  
Accommodation and food service 
activities  2.9  3.0  3.1  3.3  3.5  3.5  3.5  
Information and communications  3.8  4.0  4.4  4.6  4.6  4.7  4.8  
Financial and insurance activities  5.1  5.1  5.1  5.0  5.3  5.3  5.4  
Real estate activities  9.7  9.7  9.3  9.0  8.9  8.8  8.7  
Professional, scientific, technical and 
administrative activities and support 
services  11.0  11.5  11.8  12.3  12.4  12.6  12.8  
Public administration and compulsory 
social security  4.7  5.0  5.0  4.9  4.8  4.7  4.7  
Education, human health and social 
welfare activities  15.2  15.8  15.7  15.9  15.9  16.0  15.8  
Other activities  3.1  3.1  3.2  3.3  3.4  3.5  3.5  
Total  100.0  100.0  100.0  100.0  100.0  100.0  100.0  
Value added to basic prices 
(CRC billion)  21,382.1  22,747.1  24,959.7  26,871.7  28,577.7  30,397.6  32,055.4  
Taxes on products and imports (net of 
subsidies) (CRC  billion)  1,989.3  2,113.8  2,267.2  2,409.6  2,558.5  2,617.3  2,635.7  
GDP at purchaser's prices (CRC billion)  23,371.4  24,860.9  27,226.9  29,281.4  31,136.2  33,014.8  34,691.1  
Rate of growth of real GDP, at 
market prices (%)  4.8  2.3  3.5  3.6  4.2  3.4  2.7  
Agriculture, forestry and fisheries  4.8  0.1  1.5  -2.7  5.2  3.7  2.4  
Mining and quarrying  5.5  5.8  1.2  7.7  3.9  -5.3  4.2  
Manufacture  3.4  0.1  0.8  -5.1  4.5  3.3  2.9  
Electricity, water and sanitation 
services  5.8  -14.0  3.6  11.0  5.3  3.5  2.1  
Construction  4.6  -9.5  2.1  9.4  -3.4  -2.1  6.6  
Services  5.4  4.6  4.4  4.8  4.4  3.9  2.6  
Wholesale and retail trade, repair of 
vehicles  4.1  5.4  3.6  4.1  4.2  3.0  1.9  
Transport and warehousing  6.2  1.7  4.0  5.2  2.3  3.8  2.6  
Accommodation and food service 
activities  3.0  11.8  8.6  5.3  3.9  1.0  3.5  
Information and communications  9.3  6.6  8.7  11.1  5.0  6.7  6.6  
Financial and insurance activities  14.3  8.3  7.7  8.4  14.9  7.6  3.5  
Real estate activities  6.9  0.1  1.0  1.2  0.7  1.7  2.4  
Professional, scientific, technical and 
administrative activities and support 
services  8.6  6.8  6.1  9.9  6.2  5.6  4.2  
Public administration and compulsory 
social security  0.6  2.7  1.7  0.3  1.0  2.0  1.4  
Education, human health and social 
welfare activities  1.6  4.1  3.0  2.2  3.1  3.0  0.3  
Other  3.8  1.8  8.1  3.8  5.5  6.5  4.0  
Structure of employment by economic activity (%)  
Agriculture, livestock, forestry and 
fisheries  10.2  9.9  11.1  12.3  12.2  12.5  12.3  
Mining and quarrying  0.1  0.2  0.1  0.1  0.1  0.0  0.1  WT/TPR/S/392 • Costa Rica  
 
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2012  2013  2014  2015  2016  2017  2018  
Manufacturing industry  9.9  8.9  9.3  10.9  10.2  10.0  10.8  
Electricity, gas and water  1.8  1.8  1.6  1.5  1.9  1.5  1.3  
Construction  6.3  5.5  6.6  6.7  6.4  6.5  6.9  
Services  71.6  73.7  71.2  68.6  69.2  69.4  68.5  
Wholesale and retail trade, repair of 
vehicles  20.0  21.1  19.7  17.9  18.8  18.4  17.4  
Transport and warehousing  5.4  5.9  5.0  4.1  5.0  4.9  5.5  
Accommodation and food service 
activities  5.3  5.8  5.7  6.1  6.2  6.3  6.3  
Information and communications  1.8  1.2  1.2  1.4  1.8  1.9  1.7  
Financial and insurance activities  2.4  2.5  2.5  2.2  2.4  2.0  2.3  
Real estate activities  0.6  0.5  0.7  0.7  0.6  0.6  0.7  
Professional, scientific and technical 
activities  3.4  3.1  3.7  3.1  3.1  2.7  2.9  
Administrative and support service 
activities  4.3  4.5  4.9  5.2  5.1  5.9  5.6  
Public administration and defence  5.0  4.7  4.2  4.5  4.0  4.3  3.7  
Education  6.9  7.2  6.4  6.2  6.4  7.1  6.0  
Human health and social welfare  3.8  4.2  4.0  3.5  3.6  3.6  3.6  
Artistic, entertainment and 
recreational activities  1.1  1.6  1.2  1.3  1.2  1.1  1.0  
Households with domestic staff  7.4  7.0  7.7  8.0  7.0  6.3  7.1  
Extraterritorial organizations  0.1  0.1  0.0  0.1  0.1  0.0  0.1  
Other service activities  4.2  4.3  4.2  4.2  3.9  4.2  4.6  
Note:  Preliminary figures for 2018.  
Source:  Prepared by the WTO Secretariat on the basis of data from the Central Bank of Costa Rica.  
1.2.  Between 2012 and 2018, the most dynamic subsector in the economy was financial and 
insurance services, which grew at an average annual rate of 9.2 %. This may be explained by the 
increase in the level of financial intermediation and higher sales of insuranc e services. Other dynamic 
activities included: information and communications, which saw real average annual growth of 7.7 %, 
reflecting the growing demand for mobile telephone services and Internet services; professional 
activities (6.8 %), linked in part t o the development of financial management consultancy services, 
human resources, head offices and similar (linked to foreign direct investment in the country); and 
accommodation and food service activities (5.3 %). The dynamic nature of the last of these se ctors 
is associated with the healthy development of tourism in recent years.  
1.3.  The performance of merchandise activities fluctuated more than that of services. Agriculture, 
livestock, forestry and fisheries grew at a real average annual rate of 2.2 % between 2012 and 2018, 
as a result of a weak period between 2013 and 2015, followed by an upturn. The manufacturing 
sector also saw sluggish activity between 2013 and 2015, which picked up in 2016, with weak real 
average annual growth of 1.4 % between 2012 and 2018 .1 
1.4.  Regarding employment by branch of economic activity, the services sector continues to be the 
most significant, contributing with 68.5 % of the total number of employed persons in 2018 
(Table  1.1). Within services, the subsectors of trade and repairs, and  accommodation and food 
services, also contribute significantly to employment. Agriculture, livestock, forestry and fisheries 
accounted for 12.3 % of employment in 2018 and manufacturing industries 10.8 % (compared with 
10.2% and 9.9 %, respectively, in 2012).  
1.5.  Although the economy has grown and certain technology - and human capital -intensive 
industries have expanded, the Costa Rican economy has encountered some structural challenges 
linked to the inadequate level of competition and compet itiveness in the economy, as well as 
insufficient investment in infrastructure. This is compounded by the fact that the economy has been 
characterized by an insufficient level of internal savings, caused mainly by high public sector deficits, 
which transla ted into a systematic deficit in the balance of payments current account. In general, 
the high level of current expenditure leaves little leeway for carrying out further public investment 
projects, which has been to the detriment of private investment as t his requires funding that pushes 
interest rates up. This may end up having a negative impact on the economy's potential for growth.2 
                                                
1 Information from the Central Bank of Costa Rica. Viewed at: https://www.bccr.fi.cr/seccion -
indicadores -economicos/indicadores -econ%C3%B3micos . 
2 Costa Rica's economy has a growth potential of about 3.5 % according to the International Monetary 
Fund. See IMF (2019), IMF Country Report No.  19/101. Costa Rica, 2019 Article IV Consultation  – Press 
Release; Staff Report; and statement by the Executive Director for Costa Rica . Viewed at: WT/TPR/S/392 • Costa Rica  
 
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  1.6.  To deal with these issues, the Government has devised an economic recovery strategy and has 
identified challenges to be tac kled, such as ensuring macroeconomic stability, mainly by 
consolidating public finances, and addressing lags in terms of business competitiveness and human 
resource skill sets in order to bridge productivity and income gaps.3 Efforts are also being made to  
deal with new challenges in the area of technological changes and innovation, in order to enable the 
economy to grow steadily and generate employment. To this end, a series of proposals have been 
drawn up whose results should be seen in the short term. Th e main areas identified for economic 
recovery are: (a) support for SMEs and start -ups; (b) simplification of procedures; (c) employability; 
and (d) road infrastructure.  
1.7.  Proposed action to support SMEs includes: the establishment of a preferential tariff sc ale for 
payment of income tax for micro and small enterprises; the creation of a logistics platform for the 
distribution of online sales for SMEs at the domestic level; seed capital programmes for start -ups 
and entrepreneurship development programmes; the identification of new products and markets for 
the agricultural sector; and improved institutional coordination to remove barriers to the creation 
and development of such activities. To promote employability, training initiatives are being proposed 
to impr ove access to the job market, and there are plans to create an online platform for job 
matching (SIPE Job Matching System). An initial action plan for simplifying procedures is the 
Directive on Regulatory Improvement (Directive No.  20-MP-MEIC, on immediate  actions for the 
simplification of procedures), which calls for all existing formalities, requirements and procedures to 
be reviewed, updated, and included in the National Inventory of Formalities 
(http://w ww.tramitescr.meic.go.cr ). A second action plan for simplifying procedures is the Single 
Investment Window Project for reducing the time needed to open a business in the services and 
manufacturing sectors that fall under the Free Zone Regime. A third is th e development of a national 
strategy aimed at implementation of the public policy on digital governance, for which the High -Level 
Commission on Digital Governance was established. Regarding infrastructure, a first measure is the 
reallocation of funds to be  used for the improvement of certain highways and for other works to 
promote urban mobility, as well as for the sectorization and modernization of public transport.4 
Public -private partnerships are also being encouraged in the implementation of infrastruct ure 
projects. In addition, the model of subcontracted works is being strengthened and expanded. 
One example of such works is the widening of the San José -Caldera national route, with an estimated 
investment of USD 450  million based on the subcontracting mo del. 
1.2  Recent economic developments  
1.2.1   Production and employment  
1.8.  From 2012 to 2018, the Costa Rican economy saw sustained growth; GDP grew at a real 
average annual rate of 3.5 %. GDP growth varied between 2.3 % and 4.8 % during this period and 
was buttressed mainly by higher internal demand, mainly in final household consumption.  
1.9.  Private consumption was the main driver of growth in the period under review, growing at an 
average annual rate in real terms of 3.8 %, higher th an that of GDP as a whole. Gross capital 
formation rose at a real average annual rate of 2.8 %, lower than that of average GDP. In this regard, 
the OECD considers that investment in infrastructure and human capital in recent years has been 
inadequate, limit ing the country's competitiveness and development plans.5 There may also have 
been a disincentive to invest due to high real interest rates and the crowding out effect of the high 
level of public debt with the increase of internal financing costs.6 During the period under review, 
                                                
https://www.imf.org/~/media/Files/Publications/CR/2019/1CRIEA2019001.ashx , and 
https://www.imf.org/en/Publications/CR/Issues/2019/04/13/Costa -Rica-2019-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-46812 . 
3 Propuestas para la reactivación del país en el corto plazo , Edna Camacho, Minister for Economic Team 
Coordination. PowerPoint presentation, November  2018.  
4 Propuestas para la reactivación del país en el corto plazo , Edna Camacho, Minister for Economic Team 
Coordination. PowerPoint presentation, November  2018.  
5 OECD (2018), OECD Economic Surveys: Costa Rica 2018 . Viewed at: 
https://www.oecd -ilibrary.org/economics/oecd -economic -surveys -costa-rica-2018_eco_surveys -cri-2018-e. 
6 IMF (2017), IMF Country Report No.  17/156. Costa Rica, 2017 Article IV Consultation  – Press Release; 
and Staff Report . Viewed at: https://www.imf.org/en/Publications/CR/Issues/2 017/06/27/Costa -Rica-2017-
Article -IV-Consultation -Press -Release -and-Staff-Report -44991 ; and IMF (2019), IMF Country Report 
No. 19/101. Costa Rica, 2019 Article IV Consultation  – Press Release; Staff Report; and statement by the 
Executive Director for Costa  Rica. Viewed at: WT/TPR/S/392 • Costa Rica  
 
- 16 - 
 
  net exports of goods and services made a positive net contribution to GDP, since exports grew more 
steadily (at an annual average rate of 5.0 %) than imports (4.4 %) (Table 1.2). This was due mainly 
to the good performance of service  exports.  
1.10.   In 2017 and 2018, GDP grew below its potential growth rate, estimated at 3.5 %. After 
growing by 3.4 % in 2017, growth of real GDP dropped in 2018 to 2.7 %. Lower growth was due in 
large part to sluggish internal demand7; both household consumption and Central Government 
consumption slowed down, but gross capital formation picked up partially after shrinking the 
previous year.8 The slowdown was in part mitigated by an increase in external demand for goods 
and services due to higher growth of exports and lower growth of imports.9 Following a drop of 3.1 % 
in 2017, the gross formation of fixed capital rose by 1.9 % in 2018. In the first half of 2018, 
investment declined due to lower investment in housing construction work, but rose in the second 
half, boo sted by the development of non -residential construction works, such as shopping centres 
and office buildings. Nevertheless, although total investment rose in 2019, the gross formation of 
capital in non -construction activities fell, partly as a result of th e climate of uncertainty that prevailed 
in respect of the fiscal situation.10 External demand for goods and services grew by 4.1 % in real 
terms in 2018 as a result of higher exports of goods (4.9 %), in particular of medical equipment and 
devices, while serv ice exports rose by 3.0 %, with an emphasis on business services. Imports of 
goods and services, on the contrary, recorded a drop of 0.4 % in real terms (3.2 % in 2017). 
Purchases of goods fell by 0.4 %, due mainly to lower imports of hydrocarbons and consumer  goods.  
1.11.   Costa Rica has a structural savings -investment gap, with its savings/GDP ratio (estimated at 
14.6% for 2018) lower than its investment/GDP ratio (estimated at 18.7 % in 2018). This gap, which 
is reflected in the relatively high deficit of the balanc e of payments current account, is the result in 
large measure of the significant fiscal deficit.  
1.12.   Costa Rica is a high middle -income country. During the period under review, per capita GDP 
in current terms increased by 20 % to reach USD 12,017 in 2018 (Table  1.2). However, despite the 
continued growth of per capita income, the poverty rate increased slightly during the period under 
review, from 20.6 % in 2012 to al 21.1 % in 2018.11 Extreme poverty stood at about 6.34 % in 2018. 
The Gini coefficient, which measur es income inequality, improved slightly during the period under 
review, dropping from 0.52 in 2012 to 0.51 in 2018.  
Table 1.2 Basic economic indicators, 2012 -18 
 
2012  2013  2014  2015  2016  2017  2018  
GDP at purchaser's prices 
(current CRC  billion)  23,371.4  24,860.9  27,226.9  29,281.4  31,136.2  33,014.8  34,691.1  
GDP at purchaser's prices 
(USD million)  46,473.1  49,745.1  50,577.8  54,776.0  57,158.0  58,174.6  60,126.0  
GDP per capita (USD)  9,988.9  10,554.5  10,596.4  11,335.5  11,687.8  11,758.4  12,017.0  
Real GDP (annual 
percentage change)  4.8 2.3 3.5 3.6 4.2 3.4 2.7 
Final consumer 
expenditure  4.9 3.0 3.9 4.1 3.6 2.9 1.8 
                                                
https://www.imf.org/~/media/Files/Publications/CR/2019/1CRIEA2019001.ashx  and 
https://www.imf.org/en/Publications/CR/Issues/2019/04/13/Costa -Rica-2019-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-46812 . 
7 Anoth er factor that impacted on lower growth of internal demand was the strike in some public 
services in the last months of 2018, whose total negative impact (direct and indirect) on economic growth is 
estimated by the Central Bank of Costa Rica at 0.4 percent age points of GDP. Furthermore, the Central Bank 
considers that consumer confidence dropped with the uncertainty surrounding the adoption of the draft Law on 
the Strengthening of Public Finances (Law No.  9635). See: Central Bank of Costa Rica (2019), Memor ia Anual 
2018. Viewed at : 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anual_2018.pdf . 
8 The authorities indicated t hat other factors that contributed to the lower growth recorded in 2018 were 
the strike by civil servants between September and November, which deducted 0.4 percentage points from 
GDP growth, and events in neighbouring countries that had a negative effect on exports.  
9 This occurred despite the deterioration in terms of trade caused by an increase in the international 
price of imported raw materials, especially petroleum, and a fall in the price of certain exports, such as sugar, 
coffee and pineapples. See:  Central Bank of Costa Rica (2019), Memoria Anual 2018 . Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anua l_2018.pdf . 
10 Central Bank of Costa Rica (2019), Memoria Anual 2018 . Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual /Memoria_Anual_2018.pdf . 
11 Online information. Viewed at: http://www.inec.go.cr . WT/TPR/S/392 • Costa Rica  
 
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2012  2013  2014  2015  2016  2017  2018  
Of households and 
NPISHsa 6.1 2.9 4.2 4.6 4.0 2.8 2.2 
Of the Central 
Government  0.2 3.2 2.9 2.4 2.4 3.1 0.5 
Gross formation of fixed 
capital  9.9 -0.3 3.3 3.0 4.8 -3.1 1.9 
Exports of goods and 
services  5.6 3.3 5.0 2.6 9.4 5.0 4.1 
Of goods f.o.b.  7.6 0.7 5.9 -0.3 8.5 6.6 4.9 
Of services  2.4 7.4 3.6 6.9 10.6 2.8 3.0 
Imports of goods and 
services  7.8 1.7 5.0 4.5 8.9 3.2 -0.4 
Of goods f.o.b.  7.3 1.3 4.3 2.0 8.4 2.0 -0.4 
Of services  11.7 4.2 9.7 19.1 11.6 8.4 -0.5 
Other indicators:         
Current account balance (% 
of GDP)  -5.2 -4.9 -4.9 -3.5 -2.2 -3.1 -3.1 
Total external debt 
(USD million, end of period)  15,255.9  19,504.1  21,627.6  23,576.0  25,565.1  27,158.8  28,655.4  
Total external debt (% of 
GDP) 32.8 39.2 42.8 43.0 44.7 46.7 47.7 
International reserves 
(USD million, end of period)  6,856.7  7,330.9  7,211.4  7,833.9  7,573.8  7,149.8  7,500.9  
Unemployment rate  10.6 10.0 9.0 9.8 9.4 9.2 10.0 
Population at 30  June 
(million)  4.65 4.71 4.77 4.83 4.89 4.95 5.00 
a NPISH = Non -profit institutions serving households.  
Note:  2018 preliminary figures.  
Source:  Prepared by the WTO Secretariat on the basis of data from the Central Bank of Costa Rica.  
1.13.   Despite a good economic performance, the unemployment rate remained high during the 
period under review, at 10 % (annual average) of the workforce in 2018, alt hough lower than the 
rate of 10.6 % recorded in 2012. The unemployment rate rose significantly in 2018, reaching 12 % 
in the fourth quarter, some 43.8 % higher than the same period in 2017. This was due to lower 
growth and the fact that, although during the y ear the average annual employment rate rose by 
0.9 percentage points, the average participation rate recorded an even higher increase, of 
1.8 percentage points. So, although the economy generated more jobs, they were insufficient to 
absorb all the persons making up the workforce.12 According to data from the National Institute of 
Statistics and Censuses (INEC), the ex tended unemployment rate stood at 14.3 % in the 
fourth  quarter of 2018 – 39.9% higher than the same period in the previous year.13 The employment  
rate stood at 55.4 %.14 Unemployment is significantly higher among women than men, with a gender 
gap of almost 50 %.15 
1.2.2   Fiscal policy  
1.14.   The Ministry of Finance is tasked with defining and implementing fiscal policy in Costa Rica. 
One of the challenges facing Costa Rica is how to deal with fiscal accounts that have been 
deteriorating in recent years. In this regard, the main objective of the fiscal policy is to restore the 
health of the country's public finances. However, despite the efforts made to cont ain expenditure 
and strengthen tax revenue, the fiscal deficit remains high and has resulted in a significant increase 
in the debt/GDP ratio, which leaves the economy vulnerable and may prove unsustainable in the 
long run.  
                                                
12 Central Bank of Costa Rica (2019), Memoria Anual 2018 . Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anual_2018.pdf . 
13 The ex tended unemployment rate covers unemployed person s and persons who are discouraged from 
working for various reasons. Online information from INEC. Viewed at: 
http://www.inec.go.cr/s ites/default/files/documetos -biblioteca -virtual/reempleocomparacionivtri2018 -01.xlsx . 
14 Online information. Viewed at: http://www.inec.go.cr . 
15 According to the authorities, the rise in la bour supply that occurred from the second quarter of 2018 
onwards was driven mainly by the fact that more women and young people between 15 and 24 years of age 
entered the job market. The rise in the expanded unemployment rate therefore includes unemployed  persons 
who have been discouraged from seeking employment for various reasons.  WT/TPR/S/392 • Costa Rica  
 
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  1.15.   Towards the end of the period und er review, legislation was introduced to strengthen public 
finances both in terms of income and expenditure. Law No.  9635 on the Strengthening of Public 
Finances, published in Supplement No.  202 to the Official Journal ( La Gaceta ) of 4  December  2018, 
introduced a series of changes to the Costa Rican tax system, as well as significant caps on public 
expenditure.  
1.16.   The Law on the Strengthening of Public Finances introduced a series of changes, notably: 
(i) income tax reform (reform of Law No.  7092, Law on Incom e Tax, of 21  April 1988), increasing 
the maximum rate to make this tax more progressive; (ii) conversion of the general sales tax into a 
value added tax, thus increasing the taxable base (comprehensive reform of Law No.  6826, Law on 
the General Sales Tax; (iii) measures to cap expenditure growth, with salary caps (amendment to 
Law No.  2166, Law on Public Service Salaries); (iv) introduction of a fiscal rule16; and (v) transitional 
provisions on a tax amnesty (among other transitional provisions).  
1.17.   Replacement  of the general services tax by the value added tax (VAT) is provided for in Title  I 
of the Law on Value Added Tax. This Law defines application of VAT and sets a general rate of 13 %. 
It contains a list of exemptions (exports, interests and commissions, in surance premiums, etc.) and 
specifies the goods and services that are not subject to VAT. The Law provides for a simplified 
payment mechanism for this tax. It also sets lower rates for certain goods and services as follows:  
• 10% for international airline ti ckets;  
• 4% for the sale of airline tickets whose point of origin or destination is Costa Rica, and 
for private health care services provided by authorized health centres;  
• 2% for medicines, and the raw materials, inputs, machinery, equipment and reagents 
necessary for their production, as authorized by the Ministry of Finance; private 
education services, personal insurance premiums, and the purchase and sale of goods 
and services by State higher education institutions; and  
• 1% for the sale or import of agricul tural goods included in the basic basket, including 
machinery, equipment, raw materials, and necessary services and inputs; the sale or 
import of wheat and by -products thereof, soybean and by -products thereof, sorghum, 
and oil palm fruit and kernels and by -products thereof, to produce animal food; corn 
and by -products thereof; and veterinary products and agricultural and fisheries inputs.  
1.18.   Title II of Law No.  9635, known as the Law on Income and Profits Tax, introduced changes to 
the tax system and reformed Law No.  7092 on income tax. The reform is aimed at increasing tax 
receipts and limiting possibilities for tax avoidance and income segmentation. Among other things, 
the Law:  
• broadened the concept of taxpayer to all categories of companies, irrespective of 
whether or not they register any economic activity in any given year;  
• introduced a cap of 20 % for the deductible on profits before interests, taxes, 
depreciation and amortization17; 
• set a cap for expenses deductible in the form of donations, which cannot ex ceed 10 % 
of the net income calculated by the company;  
• extended the possibility of deducting losses for all taxpayers in the following three years 
(five years for agricultural companies), and not only for industries, as was the case prior 
to the reform;  
• introduced new tax rates of 20 % and 25 % for natural persons in dependent employment 
with an income above the thresholds of CRC 2.2  million and CRC 4  million, 
respectively18; 
                                                
16 The Law contains a chapter on the fiscal responsibility of the Republic, which establishes rules on the 
management of public finances to ensure fiscal sustainability.  
17 The tax authorities may authorize a higher limit if the taxpayer can reasonable justify why it is 
needed. However, the Law indicates that this limit may not exceed 30 % in 2020 and 2021, and will be 
gradually lowered by 2 % until it reaches 20 % in 2026.  
18 Previously, the maximum rate was 15 %. WT/TPR/S/392 • Costa Rica  
 
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  • left the maximum profits tax rate for legal persons at 30 %19, but established a 
progres sive tax pegged to net income for micro and small enterprises, for which lower 
rates on gross income will be maintained20; 
• increased to 25 % the rate applied to withholdings for professional services provided 
from outside the country to avoid technical consu ltancy income from being declared as 
professional services; and  
• a rate of 15 % for payments made to companies not domiciled in Costa Rica, for public 
events.  
1.19.   The changes to the income and value added taxes will gradually start taking effect. To 
facilitate i mplementation of the new provisions, a tax amnesty programme was introduced and 
remained in force until 3  March  2019. It is expected that the impact of the measures will be observed 
starting from the second half of 2019.  
1.20.   On the expense side, the Law on the  Strengthening of Public Finances introduced a fiscal rule. 
Caps were set on growth of current expenditure and were linked to: (a) the level of Central 
Government debt as a percentage of GDP; and (b) the average growth of nominal GDP for the 
four years pri or to the year in which the national budget was formulated. As a result of these 
changes, the growth of current expenditure in percentage terms will now be determined by 
multiplying average nominal GDP growth by a percentage set by level of Central Governm ent debt, 
according to certain brackets:  
• When the debt at the close of the budget year preceding the year in which the fiscal 
rule was applied does not exceed 30 % of GDP, or the current expenditure/GDP ratio of 
the Central Government is 17 %, year -on-year growth of current expenditure shall not 
exceed average nominal GDP growth.  
• When the debt is equal to or above 30 % but lower than 45 % of GDP, year -on-year 
growth of  current expenditure shall not exceed 85 % of average nominal GDP growth.  
• When the debt is equal to or above 45 % but below 60 % of GDP, year -on-year growth 
of current expenditure shall not exceed 75 % of average nominal GDP growth.  
• When the debt is equal to or above 60 % of the GDP, year -on-year growth of total 
expenditure shall not exceed 65 % of average nominal GDP growth. In this case, 
exceptional measures will be taken: pensions will not be adjusted,  except for cost of 
living; the Central Government will not contract loans or credits, except for those 
intended to alleviate public debt or to be used for capital expenses; cost -of-living 
increments on the base salary or other salary incentives will not b e made; and the 
Executive will not be allowed to make financial bailouts, grant subsidies or make any 
outlays of public funds on the productive sectors, except in those cases where the 
Legislative Assembly, by way of law, declares the source of the financi al bailout, support 
or subsidy.  
1.21.   Furthermore, the Law stipulates that, when growth of real GDP exceeds 6 % for 
two consecutive years, growth of current expenditure shall not exceed 85 % of it. Application of the 
fiscal rule shall be suspended in cases where a  state of emergency is declared in the country, 
requiring an outlay of current expenditure equivalent to or exceeding 0 .3% of GDP. Suspension of 
the fiscal rule cannot exceed two budget years. The fiscal rule can also be suspended in cases where 
the econom y is experiencing a recession or where economic growth forecasts are below 1 %. The 
                                                
19 Before the reform, the rates of 10 %, 20% and 30 % that applied to taxable income were based on the 
tranches of gross income, hence the possibility of "beating" the tax by declaring a slightly lower amount. The 
reform  is intended to rectify this situation by establishing tranches based on net income.  
20 The progressive tax will apply in the following manner: micro and small enterprises whose gross 
revenue does not exceed CRC 106  million during the financial period shall  pay 5 % on the first CRC 5  million of 
net annual revenue, 10 % on amounts exceeding CRC 5  million and up to CRC 7.5  million, 15 % on amounts 
above CRC 7.5  million and up to CRC 10  million, and 20 % on amounts exceeding CRC 10  million. Additionally, 
micro and small enterprises registered with the Ministry of the Economy, Industry and Trade (MEIC) or with the 
Ministry of Agriculture and Fisheries (MAG) shall not pay profits tax during the first year of their business 
activity. They will pay only 25 % of the profi ts tax in the second year, and 50 % in the third year.  WT/TPR/S/392 • Costa Rica  
 
- 20 - 
 
  exception may remain in place for a maximum period of two consecutive years. In these cases, the 
fiscal rule is gradually restored over a period of three years.  
1.22.   The Central Bank of Costa Rica considers the adoption of the Law on the Strengthening of 
Public Finances to have changed the fiscal outlook for the medium and long term, and that, by 
enforcing its provisions in a strict manner, this Law, combined with the administrati ve measures 
adopted in 2018, will restore healthy public finances in the long term.21 Moreover, it considers that 
the adoption of this Law reduced the uncertainty affecting the performance of macroeconomic 
variables in 2018. The OECD estimated the joint eff ect of the measures under the Law on the 
Strengthening of Public Finances at 1.92 % of GDP, of which 1.4 % of GDP corresponds to an increase 
in income (0.9 % in terms of VAT and 0.5 % in terms of income tax) and 0.52 % to a reduction in 
expenditure. The OECD co nsiders there to be substantial scope for increasing tax revenue by 
pursuing current efforts to combat tax avoidance and tax evasion, introduce higher VAT and personal 
income tax rates, and reduce the informal sector. On the expenditure side, it considers that greater 
efficiency can be achieved, thus reducing the highly fragmented nature of the public sector and the 
compulsory earmarking of funds for specific purposes, and looks to control expenditure in terms of 
public sector salaries.22 However, it believe s that additional measures are necessary to reduce 
spending to 1.08 % of GDP, in order to take the total impact of the fiscal adjustment measures to 
3% of GDP.23 
1.23.   In addition to the Law on the Strengthening of Public Finances, the Government has taken 
other i nitiatives, such as the Law on Exemptions (No.  19.531), the Law on the Use of Financing 
Mechanisms in the International Market (No.  20.535) and the merger of the Banco Crédito Agrícola 
with the Banco de Costa Rica. Furthermore, a number of administrative m easures were adopted to 
enhance management of tax collection and efforts to contain expenditure, such as Directive 
No. 098-H63, issued in January  2018, which, among other measures, limited the recruitment of civil 
servants and froze the salaries of ministe rs, vice -ministers, executive presidents and managers. 
Furthermore, in May  2018, the Ministry of Finance announced a proposal entitled "Fiscal 
Sustainability for Costa Rica's Well -Being", which includes measures setting caps on salary 
increments for all pu blic servants24, setting a limit on the use of posts (to 25 % of vacancies), and 
halving the budget for the payment of overtime.25 
1.24.   Public accounts recorded a deficit during all the years falling within the review period. This 
deficit varied between 4.3 % and 6 .1% of GDP, but since 2013 has remain above 5 % of GDP. The 
non-financial public sector deficit was lower than that of the Central Government, due mainly to the 
positive results of public firms and the rest of the non -financial public sector. The higher def icit seen 
during the review period was due to the continuous increase in public spending, particularly current 
expenses, although income remained stable (Table  1.3). Current expenditure was the largest 
spending heading, increasing its share of GDP by 1.9 p ercentage points between 2012 and 2018. It 
was mainly composed of current transfers to the public sector (mainly the allocation of resources to 
social and higher education programmes), representing 7.7 % of GDP, and wages and salaries 
(6.9%). On the income side, an increase of barely 0.3 % was observed in its share of GDP between 
2012 and 2018. Tax revenue rose from 12.9 % of GDP in 2012 to 13.2 % of GDP in 2018. The main 
components were income and profits taxes (4.9 % of GDP in 2018) and import taxes (tariffs a nd 
other import levies), which dropped during the review period from 3.7 % of GDP in 2012 to 3.1 % of 
GDP in 2018.  
1.25.   In 2018, the financial performance of the Central Government recorded a deficit equal to 
5.9% of GDP, based on total expenditure and income equ al to 20.2 % and 14.3 % of GDP respectively. 
The primary deficit dropped to 2.3 % of GDP in 2018 from the 3.0 % recorded in 2017. According to 
preliminary Central Bank of Costa Rica figures, in 2018, the financial deficit of the Reduced Global 
Public Sector (S PGR) represented 4.9 % of GDP, 0.4 percentage points lower than the deficit recorded 
                                                
21 Central Bank of Costa Rica (2019), Memoria Anual 2018 . Viewed at: 
https://activos.bccr.fi.cr /sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anual_2018.pdf . 
22 OECD (2018), OECD Economic Surveys: Costa Rica 2018 . Viewed at:  
https://www.oecd -ilibrary.org/economics/oecd -economic -surveys -costa-rica-2018_eco_surveys -cri-2018-en. 
23 OECD (2018), OECD Economic Surveys: Costa Rica 2018. Viewed at:  
https://www.oecd -ilibrary.org/economics/oecd -economic -surveys -costa-rica-2018_eco_surveys -cri-2018-en. 
24 For example, a cap of CRC 3,750 was set for the second half of 2018.  
25 These and other measu res were included in Executive Decrees No.  41157 -H, No.  41161 -H and 
No. 41162 -H, and in Directives No.  003-H, No.  007-H, No.  008-H, No.  009-H, No.011 -H, No.  012-H and 
No. 013-H, published in Supplement No.  115 to the Official Journal ( La Gaceta ) of 6  June 2018.  WT/TPR/S/392 • Costa Rica  
 
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  in 2017. This performance reflected the higher surplus among a sample of entities from the rest of 
the non -financial public sector and the improvement in Central Government  finances.26 The 
non-financial public sector registered a deficit equal to 4.4 % of GDP (Table 1.3).  
1.26.   Total expenditure grew by 3.4 % in 2018 (5.7 % in 2017), due to an increase of 6.5 % in 
current expenditure, which was partially offset by a shrinking of 26.1 % in capital expenses. The 
main items driving the increase in current expenses were interest payments (which rose by 20.2 %), 
wages and salaries (4.6 %) and current transfers (3.2 %). In 2018, interest payments represented 
17.6% of total expenditure (against 15.1 % in 2017) and the average cost of domestic and external 
debt was 9.6 % and 5.3 % respectively (compared with 7.9 % and 5.3 % in 2017).27 Current transfers 
were the most significant item in relative terms within the overall ex penditure framework (38.1 %) 
in 2018; transfers to the public sector represented 67.2 % of total current transfers. The fall in capital 
expenses reflects the fact that fewer resources were transferred to the public sector for road 
investment programmes and p rojects, and infrastructure, and to local governments, under the Law 
on Tax Simplification and Efficiency (Law No.  8114).  
Table 1.3 Public sector financial accounts, 2012 -18 
(% of current GDP)   
2012  2013  2014  2015  2016  2017  2018  
Performance of non -financial public sector  -4.3 -5.3 -4.5 -5.0 -4.2 -5.0 -4.4 
Central Government:         
Total revenue  14.0 14.2 14.0 14.3 14.7 14.4 14.3 
Total current revenue  14.0 14.2 13.9 14.3 14.6 14.4 14.2 
Total tax revenue  12.9 13.2 12.9 13.2 13.4 13.3 13.2 
Customs  3.6 3.4 3.5 3.5 3.5 3.3 3.1 
Income and profits tax  3.8 4.1 4.0 4.3 4.5 4.7 4.9 
Domestic sales  2.5 2.5 2.4 2.4 2.4 2.3 2.2 
Domestic consumption  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Other tax revenue  2.8 2.9 2.9 3.0 2.9 3.1 2.8 
Non-tax revenue  1.1 1.0 1.0 1.1 1.3 1.1 1.0 
Capital inflows  0.0 0.0 0.0 0.0 0.0 0.0 0.1 
Total expenditure  18.3 19.6 19.6 20.0 19.9 20.5 20.2 
Total current expenditure  16.9 18.0 17.9 18.2 18.1 18.5 18.8 
Wages and salaries  7.0 7.3 7.2 7.2 7.0 6.9 6.9 
Expenditure on goods and services  0.6 0.6 0.7 0.7 0.6 0.7 0.6 
Current transfers  7.2 7.5 7.4 7.5 7.6 7.8 7.7 
Interest payments  2.0 2.5 2.6 2.7 2.8 3.1 3.5 
Total capital expenditure  1.4 1.6 1.7 1.8 1.8 2.0 1.4 
Investment in non -financial assets  0.2 0.3 0.3 0.3 0.3 0.3 0.2 
Capital transfers  1.2 1.3 1.4 1.5 1.5 1.7 1.2 
Concessions  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Primary balance  -2.3 -2.8 -3.1 -3.0 -2.4 -3.0 -2.3 
Current savings of the Central Government  -2.9 -3.8 -3.9 -3.9 -3.4 -4.1 -4.5 
Balance of the Central Government  -4.3 -5.4 -5.6 -5.7 -5.2 -6.1 -5.9 
Balance of the rest of the non -financial public sectorb 0.0 0.1 1.1 0.7 1.1 1.2 1.4 
Balance of the Central Bank of Costa Rica  -0.6 -0.8 -0.7 -0.7 -0.5 -0.4 -0.4 
Total balance of global public sector  -4.9 -6.1 -5.2 -5.7 -4.8 -5.3 -4.9 
Memorandum item:         
Central Government debt (end of year)  34.3 35.9 38.5 41.0 45.1 48.6 53.6 
Internal  28.4 28.8 29.8 30.9 34.7 38.4 42.8 
External  5.9 7.1 8.7 10.1 10.4 10.2 10.8 
Consolidated public sector debt  37.5 41.7 42.8 45.4 49.3 51.9 .. 
Internal  7.2 8.7 10.2 11.3 11.3 11.1 .. 
External  30.3 33.0 32.6 34.1 38.0 40.8 .. 
.. Not available.  
a Includes the Central Government and the rest of the non -financial public sector.  
b Includes decentralized bodies, non -commercial decentralized institutions, local governments, and 
non-financial public enterprises.  
c Includes the non -financial public sector and the Central Bank of Costa Rica.  
Note:  Preliminary figures for 2018.  
Source:  Prepared by the WTO Secretariat based on data from the Central Bank of Costa Rica, the Ministry of 
Finance and the IMF.  
                                                
26 Central Bank of Costa Rica (2019), Programa Macroeconómico 2019 -2020. Viewed at: 
https://activos.bccr.fi.cr/sitio s/bccr/publicaciones/DocPolticaMonetariaInflacin/Programa_Macroeconomico_201
9-2020.pdf . 
27 Central Bank of Costa Rica (2019), Memoria Anual 2018 . Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anual_2018.pdf . WT/TPR/S/392 • Costa Rica  
 
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  1.27.   The total public debt of the Central Government increased significantly during the period 
under review as a result of unbalanced  public finances, rising from 34.3 % of GDP in 2012 to 53.6 % 
in 2018. The total public debt of the public sector as a whole (including the non -financial public 
sector and the Central Bank) grew by over 20 percentage points of GDP between 2012 and 2018 
and reached 70.6 % of GDP in 2018.28 The increase in public debt reflected, mainly, the indebtedness 
of the Central Government, whose financing absorbed the lion's share of domestic savings. The 
Central Government's relative share of total public debt was 76 % in 2018, while the debt burden of 
the Central Bank was 7.5 % of GDP. Regarding the source of the public debt, domestic sources 
continued to be the highest contributor, accounting for 70.6 % of the total. 58.7 % of the Central 
Government's debt was held in nation al currency at the end of 2018; short -term debt represented 
15.9% of the Central Government's debt in the same year, while 43.1 % represented medium -term 
debt and 41 % long-term debt. In 2018, the Government attempted to lengthen the term to maturity 
of shor t-term debt on the local market, with swaps and debt issuance to lower the risk of 
refinancing.29 
1.28.   As the authorities have pointed out, the upward trend of the fiscal deficit, public debt and the 
Government's financing needs on the domestic financial market had a direct impact on the risk 
premium of sovereign bonds on the different trading markets and made it difficult to manage the 
National Treasury in order to meet its needs on the local market. This meant resorting to external 
markets for financing, trigge ring a growing demand for foreign exchange by the Government. This 
resulted in a higher perception of risk in the country, which in turn led to a lower rating for sovereign 
debt by Moody's on 5  December and by Standard and Poor's on 21  December  2018. The d ifferential 
between the yield on Costa Rican debt bonds and US  Treasury Bonds rose from 367 points in 2017 
to 540 points at the end of 2018.30 
1.2.3   Monetary and exchange rate policy  
1.29.   The Central Bank of Costa Rica (BCCR) is responsible for defining and managing m onetary 
and exchange rate policy. Its functions include: maintaining the external value and conversion of 
the national currency; holding and administering the country's international reserves; serving as 
State treasurer and advisor; and promoting condition s that are conducive to the strengthening, 
liquidity, solvency and smooth functioning of the national financial system.31 Under the Organic Law 
on the BCCR (Law No. 7558 of 1995), the main objective of the BCCR is to ensure the national 
currency's domestic and foreign stability, as well as its conversion to other currencies. Domestic 
stability is defined as achieving and maintaining low, stable inflation.  
1.30.   On 31 January 2018, the Board of Directors of the BCCR unanimously approved the adoption 
of a flexible i nflation targeting scheme. The inflation targeting scheme used by Costa Rica is based 
on a publicly  announced numerical inflation target range within which the BCCR keeps inflation in 
the medium term, and on the use of the monetary policy interest rate (TP M) as the main instrument 
for inflation control and main indicator of monetary policy.32 The TPM, which is a benchmark for the 
cost of liquidity, is adjusted on the basis of forecasts. Adjustments are based primarily on inflation 
forecasts and the main macr oeconomic variables. If there is a high probability that inflation will 
deviate from the target range in 12 to 24 months, and not as a result of temporary shocks, the 
BCCR will change its monetary stance usually by adjusting the TPM. The central value of t he target 
range corresponds to the long -term inflation of the country's main trading partners.33 The target 
range values are announced in the Macroeconomic Programme, which is developed on an annual 
basis and revised every six months and in which the BCCR m akes its projections for the main 
                                                
28 Online information. Viewed at: 
https://view.officeapps.live.com/op/view.aspx?src=https://www.hacienda.go.cr/docs/5c70448387552_Deuda
%20Sin%20Consolidar%20SPNF%20HISTORICO%20ANUAL%202018.xlsx . 
29 Central Bank of Costa Rica (2019), Memo ria Anual 2018 . Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anual_2018.pdf . 
30 Central Bank of Costa Rica (2019), Programa Macroeconómico 2019 -2020. Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/ publicaciones/DocPolticaMonetariaInflacin/Programa_Macroeconomico_201
9-2020.pdf . 
31 Online information. Viewed at : https://www.bccr.fi.cr/seccion -sobre -bccr/plan -estrat%C3%A9gico -
2015-2018. 
32 Central Bank of Costa Rica (2019), Memoria Anual  2018. Viewed at : 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocM emoriaAnual/Memoria_Anual_2018.pdf . 
33 Central Bank of Costa Rica (2019), Memoria Anual  2018. Viewed at : 
https://activos.bccr.fi.cr/sitios/bccr/publi caciones/DocMemoriaAnual/Memoria_Anual_2018.pdf . WT/TPR/S/392 • Costa Rica  
 
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  macroeconomic variables, revises the inflation target and establishes the monetary policy guidelines 
to be followed in order to reach that target. The 201 8-2019 Macroeconomic Programme maintained 
the 3% ± 1 p.p. inflation target for this biennium.34 
1.31.   The inflation targeting scheme has been implemented gradually, having begun in 2005 when 
it was decided to move towards an inflation targeting monetary policy strategy. During the transition 
period, which ended in January 2018, m easures were taken to fully implement the inflation targeting 
scheme. These included: (i) improving the structure of the balance sheet of the BCCR in order to 
reduce its financial deficit; (ii) developing studies and tools to better understand the determin ants 
of inflation and the transmission of monetary policy in Costa Rica; (iii) gradually migrating from a 
crawling peg to a floating exchange rate regime; (iv) making changes to monetary control, 
positioning the TPM as a main policy instrument; and (v) mak ing an explicit commitment to a 
numerical inflation target. In 2008, a central value for the inflation target was announced for the 
first time, which was 8% with a tolerance range of ±1 percentage points. In July 2009, the central 
value was lowered to 5% a nd kept at this rate until January 2014, when it was set at 4%. 
In January  2016, it was lowered once again, this time to 3%. In June 2011, the Board of Directors 
of the BCCR defined the TPM as the reference rate for establishing the cost of overnight opera tions 
in the integrated liquidity market (MIL).  
1.32.   Although the TPM is the main monetary policy instrument in an inflation targeting regime, the 
BCCR also uses two other monetary policy instruments, the legal minimum reserve and the active 
management of its liquidity and debt instruments, to control changes in liquidity and monetary 
aggregates. The latter is achieved by the absorption or provision by the BCCR of the liquidity needed 
keep the interest rate in the MIL close to the TPM. In fact , since June 2011, the implementation of 
the BCCR's monetary policy has been accompanied by daily auctions involving the injection or 
removal of liquidity from the MIL, based on daily estimates of the liquidity in the financial system, 
so as to ensure that  the interest rates in the MIL remain close to the TPM.35 
1.33.   Costa Rica's monetary policy went through an expansive phase between 2015 and early 2016, 
during which the TPM was lowered several times, dropping from 5.25% in January 2015 to 1.75% 
in January 2016.  This caused M1 and M2 growth rates to accelerate, particularly in 2015. The TPM 
stayed at this level until April 2017, when the monetary policy stance became more restrictive: 
between April 2017 and November 2018, the TPM was raised seven times.36 This led  to a contraction 
of the most liquid indicators (M1 contracted) and slower credit growth. In 2018, the BCCR increased 
the TPM by 25 basis points twice, in February and again in November, so that it stood at 5.25% as 
of 1 November.37 In order to address the liquidity surpluses that arose between January and 
August  2018, the BCCR also increased the interest rate on its debt instruments to stimulate savings 
in colones, and attracted resources  in the MIL.38 From September 2018  onwards , the surplus 
decreased and t he BCCR provided the MIL with resources . In March 2019, the BCCR lowered the 
TPM by 25  percentage points to 5%.  
1.34.   In 2018, the BCCR kept the legal minimum reserve rate at 15%, which is the maximum rate 
permitted by law. This rate was used for both domestic a nd foreign currency operations.  
                                                
34 Central Bank of Costa Rica (2019), Memoria Anual  2018. Viewed at : 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anual_2018.pdf . 
35 Muñoz Salas, Evelyn, Adopción de meta de inflación en C osta Rica , Central Bank of Costa Rica 
Working Paper No. 001 2018, January 2018. Viewed at: 
https://activos.bcc r.fi.cr/sitios/bccr/investigacioneseconomicas/DocPoliticaMonetariaInflacion/2018 -DT-01-
Adop_de_MI_%20en_CR.pdf . 
36 Online information. Viewed at: 
https://gee.bccr.fi.cr/indicadoreseconomicos/Cuadros/frmVerCatCuadro.aspx?idioma=1&CodCuadro=%20779  
37 Central Bank of Costa Rica (2019),  Programa Macroeconómico 2019 -2020. Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocPolticaMonetariaInflacin/Programa_Macroeconomico_201
9-2020.pdf . 
38 In November, as it was adjusting the TPM, the BCCR also raised inte rest rates on its 1 -to-1,800-day 
deposits. The increases were larger for longer periods, reaching 170 basis points for 1 ,800-day deposits. The 
BCCR did this in order to  stimulate savings in colones, particularly in longer -term instruments, and to mitigate 
pressures on the foreign exchange market. Central Bank of Costa Rica (2019),  Programa Macroeconómico 
2019-2020. Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocPolticaMonetariaInflacin/Programa_Macroeconomico_201
9-2020.pdf . WT/TPR/S/392 • Costa Rica  
 
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  1.35.   Lending rates in both colones and dollars remained high throughout the period 2012 -18 
(Table  1.4), with very positive real rates. This was a result of the significant financing requirements 
in the public sector and the lack of competition in the banking sector. It was also the result of the 
relatively low level of financial intermediation, with an insufficient supply of financial resources for 
the private sector, due in part to the crowding out effect of public debt, cou pled with the robust 
demand for credit. The intermediation margin remained high throughout the period under review, 
standing at 19.7% in the national currency in 2017 and 8.3% in foreign currency.  
Table 1.4 Main monetary indicators, 2012 -18 
 
2012  2013  2014  2015  2016  2017  2018  
Money supply and credit (percentage 
change)         
M1 (in the financial system)  12.8 8.1 8.6 13.4 8.2 -2.8 7.1 
M2 (in the financial system)  18.2 13.2 12.9 14.8 8.7 10.1 3.7 
M3 (in the financial system  12.6 11.1 15.3 10.7 10.7 10.5 5.8 
Private sector credit  13.3 12.2 17.5 11.8 12.8 8.5 6.2 
Prices and interest rates         
Consumer price index (annual average, 
2010=100)  109.6  115.3  120.5  121.5  121.5  123.5  126.2  
Inflation (percentage change)  4.5 5.2 4.5 0.8 0 1.6 2.2 
Monetary policy rate (TPM) (end of period)  5.0 3.75 5.25 2.25 1.75 4.75 5.25 
TPM annual average  5.6 5.0 4.5 4.9 3.6 1.8 3.5 
Average lending rate in national currencya 28.1 26.7 26.8 26.2 23.4 24.0 22.7 
Average deposit rate in national currencyb 6.5 5.0 4.7 4.4 3.5 4.3 5.4e 
Interest rate spread in national currency  21.6 21.7 22.2 21.8 20.0 19.7 17.3 
Average lending rate in USD  10.9 10.8 10.1 9.6 9.8 9.7 10.5 
Average deposit rate in USD  1.5 1.5 1.4 1.1 1.3 1.4 1.7e 
Interest rate spread in USD  9.4 9.2 8.7 8.4 8.5 8.3 8.8 
Daily standard rate (TBD)c 9.20 6.50 7.20 5.95 4.45 5.95 6.0 
Rediscount rated 23.75  20.50  20.50  17.50  13.25  18.00  18.00  
Exchange rates         
CRC per USD (period average)  502.9  499.8  538.3  534.6  544.7  567.5  577.0  
Nominal exchange rate (percentage 
change)  -1.3 -0.6 10.8 -0.8 1.9 4.2 1.7 
Real effective exchange rate (percentage 
change December -December, 1997=100)  -3.0 -3.0 
72.2 11.4 
80.4 -3.0 
78.0 2.2 
79.7 5.5 
84.1 3.9 
87.4 
a Corresponds to the weighted average of interest rates notified by financial intermediaries to the 
Central Bank every Wednesday. The weights are the amounts of new loans made by each 
intermediary.  
b Corresponds to the weighted average of interest ra tes notified by financial intermediaries to the 
Central Bank every Wednesday. Income tax is deducted from yields at a rate of 8%.  
c The difference between the basic deposit  rate (TBP), which is a weighted average of the gross 
interest rates for term deposi ts in colones, of the various groups of financial intermediaries, and the 
effective rate in dollars (TED), which is a weighted average of the gross interest rates for term 
deposits in dollars.  
d The highest commercial loan interest rate of a representative  group of financial entities regulated by 
the Supervisory Authority for Financial Entities (SUGEF) is used to calculate the rate, with three 
percentage points added. This group consists of the entities with the greatest relative share of the 
total commerci al loan balance and which account for at least 50% of said balance.  
e Ceased to be published  on 16 October 2018.  
Source:  Prepared by the WTO Secretariat on the basis of data from the Central Bank of Costa Rica and the 
IMF. 
1.36.   During the period under review, inflation (as measured by the change in the Consumer Price 
Index  (CPI)) remained low (Table 1.4). During the period 2012 -14, the CPI remained within the 
inflation target ranges, which were 5% ± 1 p.p. for 2012 and 2013 and 4% ± 1 p.p. for 2014. 
Between 2015 and late 2017, however, inflation (0.8% in 2015, 0% in 2016 and 1.6% in 2017) was 
below the targets set in the respective monetary programmes (3% ± 1 p.p.). In 2018, general 
inflation in Costa Rica, measured by the year -on-year rate of change in the CPI, was 2.2%, falling 
within the BCCR's target range, but approaching its lower limit. This was due, on the one hand, to 
the impact of the increase in the international price of raw materials, especially oil, and on the other, 
offsetting this effect, to low inflationary pressures and limited levels of core inflation, although the WT/TPR/S/392 • Costa Rica  
 
- 25 - 
 
  latter rose at the end of 2018 due to exchange rate pressures and a slight increase in inflationary 
expectations. Services and regulated prices experienced higher increases in  2018.39 
1.37.   Costa Rica adopted a n exchange -rate-band system in 2006 as part of its gradual transition 
towards a floating exchange -rate system , with a view to establishing an inflation -targeting scheme. 
The exchange  band, which was increasingly large, was in fo rce until 31 January 2015, when the 
BCCR adopted a so -called managed floating exchange -rate regime. Under the managed floating 
regime, the BCCR allows the exchange rate to be determined by market supply and demand, with 
no commitment to a specific exchange  rate target or value. The BCCR intervenes in the foreign 
exchange market to satisfy its foreign currency requirements and those of the non -banking public 
sector and, on a discretionary basis, to moderate excessive exchange rate fluctuations, including 
when it identifies movements in the exchange rate that are not line with the macroeconomic 
variables that explain its behaviour in the medium and long term. The authorities have taken such 
measures in order to increase the effectiveness of monetary policy, el iminate its endogeneity and 
strengthen the use of the TPM as a transmission mechanism for monetary policy. They have also 
sought to reduce the pass -through effect of changes in the exchange rate on prices.  
1.38.   The BCCR recently introduced a greater degree of f lexibility in exchange -rate policy, 
particularly from the second half of 2018  onwards . For example, between July and November 2018, 
when exchange rate tensions were heightened due to excess liquidity in the economy, the BCCR 
intervened by selling foreign c urrency (USD 415.5 million in the first 11 months of the year) to meet 
the requirements of the non -banking public sector and to avoid violent fluctuations in the exchange 
rate. In December 2018, once the tensions had eased, the BCCR intervened by doing the  opposite 
and purchasing some of the foreign currencies that had been sold to the non -banking public sector 
during the preceding months, thus partially offsetting the effects of its intervention.  
1.39.   The average nominal exchange rate of the colón against the US dollar was CRC 577 in 2018, 
compared to CRC 503 in 2012, meaning that there was a 12.8% nominal depreciation of the colón 
against the US dollar between 2012 and 2018.40 During the same period, the multilateral real 
effective exchange rate depreciated by 13.9%.  
1.40.   During the period under review, the Costa Rican economy continued to have a high, albeit 
declining, rate of dollarization. The private sector's share of the loan p ortfolio in foreign currency 
(eliminating the effects of changes in the exchange rate) went from 44.2% in 2016 to 41.5% in 
2017 and 39.9% in 2018.41 High dollarization undermines the stability of the financial system, as 
roughly two  thirds of the foreign cu rrency loans have been made to debtors whose main source of 
income is in colones, creating credit and liquidity risks for the financial system in the event of 
changes in the exchange rate.  
1.2.4   Balance of payments  
1.41.   Costa Rica is running a structural current acc ount deficit in  the balance of payments. During 
the period under review, the current account deficit as a proportion of GDP declined, due in part to 
a smaller merchandise trade balance deficit, but above all, to an increase in the services balance  
surplus.  Since 2015, the surplus in net services exports has been larger than the deficit in the goods 
balance , thus improving the current account balance.  
1.42.   The current account deficit decreased from 5.2% of GDP in 2012 to 3.1% of GDP in 2017 and 
2018 (Table 1.5). In 2018, the goods trade balance showed a deficit of 7.3% of GDP, which was 
similar to the deficit from the previous year and much lower than in years prior; for example, in 
2013, the deficit was equivalent to 11.2% of GDP. The 6.2% increase in goods expor ts in 2018 was 
                                                
39 Central Bank of Costa Rica (2019), Memoria Anual  2018. Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anual_2018.pdf . 
40 The increased demand for foreign currencies resulting f rom excess liquidity in much of 2018 
generated upward pressures on the exchange rate as of September, with the exchange rate peaking at 
CRC 628.85 in November. It also led to an increase in the yield of external debt  bonds . See: Central Bank 
of Costa Rica (2019), Memoria Anual  2018. Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anual_2018.pdf . 
41 Central Bank o f Costa Rica (2019),  Memoria Anual 2018 . Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anual_2018.pdf . WT/TPR/S/392 • Costa Rica  
 
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  influenced by the 10.2% growth in the sales of special regimes, which accounted for 51.1% of total 
goods exports.  
1.43.   Historically, there has been a deficit in the income balance in Costa Rica. In particular, there 
was a significant deficit in t he primary income account between 2012 and 2018, mainly due to the 
outflows of profits of foreign companies located in the country. There was a surplus in the secondary 
income account as a result of income from family remittances, but it was much smaller t han the 
deficit in the primary income account.  
Table 1.5 Balance of payments, 2012 -18 
(USD million )  
2012  2013  2014  2015  2016  2017  2018  
Current account balance (% 
of GDP) -5.2 -4.9 -4.9 -3.5 -2.2 -3.1 -3.1 
Current account  -2,411.1  -2,431.2  -2,453.1  -1,921.3  -1,257.3  -1,815.4  -1,877.8  
Goods  -5,348.0  -5,558.8  -5,328.8  -4,607.1  -4,426.1  -4,342.6  -4,393.7  
Exports  8,922.6  8,866.3  9,455.6  9,452.4  10,100.3  10,807.8  11,477.2  
Imports  14,270.6  14,425.1  14,784.3  14,059.5  14,526.3  15,150.3  15,870.9  
Services  3,984.3  4,563.6  4,539.3  4,608.6  5,109.8  5,000.1  5,245.2  
Credit  6,208.6  6,949.2  7,106.1  7,693.6  8,537.1  8,704.3  9,092.4  
Debit 2,224.2  2,385.6  2,566.8  3,084.9  3,427.3  3,704.2  3,847.3  
Primary income  -1,455.7  -1,828.1  -2,113.9  -2,379.9  -2,451.6  -2,975.8  -3,193.0  
Credit  303.5  245.7  344.6  318.5  371.8  380.8  532.9  
Remuneration of employees  35.6  35.3  35.4  34.5  30.6  33.2  34.5  
Investment income  268.0  210.3  309.2  284.0  341.1  347.6  498.5  
Debit 1,759.2  2,073.8  2,458.5  2,698.4  2,823.3  3,356.6  3,725.9  
Remuneration of employees  64.8  69.9  90.8  95.4  94.9  133.0  142.0  
Investment income  1,694.4  2,003.8  2,367.7  2,603.1  2,728.5  3,223.6  3,584.0  
Secondary income  408.3  392.1  450.2  457.1  510.5  502.9  463.8  
Credit  807.5  848.5  885.3  857.3  934.2  956.6  956.7  
General Government  112.0  132.7  178.8  233.6  299.5  308.7  327.3  
Financial corporations, non -
financial corporations, 
households and NPISHsa 695.5  715.8  706.5  623.7  634.7  647.9  629.4  
Of which : workers' 
remittances  526.8  561.1  558.5  517.5  514.8  527.2  499.0  
Debits  399.2  456.4  435.1  400.2  423.7  453.7  492.9  
General Government  8.6  14.0  13.1  12.4  15.4  16.1  8.8  
Financial corporations, non -
financial corporations, 
households and NPISHsa 390.6  442.4  422.0  387.8  408.3  437.6  484.2  
Of which : workers' 
remittances  281.3  332.7  328.4  312.4  321.3  335.5  364.2  
Capital account  46.2  7.9  -25.3  30.7  86.8  40.5  30.7  
Financial account  -4,143.8  -3,544.4  -2,896.0  -3,251.9  -1,311.5  -1,725.1  -1,782.8  
Net acquisition of financial 
assets  1,564.7  2,846.8  1,514.2  1,145.1  1,754.2  1,942.0  2,006.4  
Direct investment  893.6  803.9  424.4  414.2  493.4  272.8  658.9  
Portfolio investment  -177.3  377.3  330.5  271.9  113.8  226.7  695.7  
Equity and investment fund 
shares  -183.4  38.2  72.5  44.5  244.3  41.6  440.3  
Debt securities  6.1  339.1  258.0  227.4  -130.5  185.1  255.4  
Financial derivatives (other 
than reserves)  -12.1  -4.4  -3.7  -3.0  -10.2  -10.3  -10.4  
Other investment  860.6  1,670.0  763.0  461.9  1,157.2  1,452.9  662.2  
Other equity  4.8  4.8  2.6  94.1  67.9  92.2  6.0  
Currency and deposits  226.0  1,225.4  763.6  392.2  594.5  658.5  -120.9  
Loans  17.6  14.1  6.4  -33.3  -3.6  -13.9  3.2  
Insurance, pension, and 
standardized guarantee 
schemes  14.5  -12.8  19.6  -8.7  37.7  39.2  40.6  
Trade credits and advances  556.5  446.3  -36.2  25.0  353.5  218.6  364.8  
Other accounts receivable  41.2  -7.8  7.1  -7.3  107.1  458.3  368.6  
Net liabilities incurred  5,708.5  6,391.2  4,410.2  4,396.9  3,065.7  3,667.1  3,789.2  
Direct investment  2,696.3  3,205.4  3,242.1  2,955.5  2,620.4  2,856.0  2,735.1  
Portfolio investment  1,960.5  2,583.4  905.6  844.7  529.7  618.8  -326.0  
Equity and investment fund 
shares  8.9  13.8  7.6  1.5  42.2  43.0  43.9  
Debt securities  1,951.6  2,569.6  898.0  843.2  487.5  575.7  -369.9  
Financial derivatives (other 
than reserves)  -1.7  -1.2  1.2  -1.8  -2.4  -2.4  -2.4  
Other investment  1,053.4  603.7  261.2  598.4  -82.1  194.8  1,382.5  WT/TPR/S/392 • Costa Rica  
 
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2012  2013  2014  2015  2016  2017  2018  
Other equity  0.0  0.0  0.0  0.0  0.0  0.0  0.0  
Currency and deposits  -14.3  232.9  -1.1  87.9  -56.2  42.3  134.5  
Loans  1,270.0  590.9  585.0  857.1  -13.1  119.2  1,463.0  
Insurance, pension, and 
standardized guarantee 
schemes  0.0  0.0  0.0  -2.9  5.3  5.3  5.3  
Trade credits and advances  -218.2  -148.0  -326.7  -377.1  -28.6  18.4  -228.4  
Other accounts payable  15.9  -72.1  4.0  33.4  10.5  9.5  8.0  
Net errors and omissions  330.7  -660.3  -530.8  -717.2  -376.2  -368.9  454.2  
Reserve assets  2,109.6  460.9  -113.2  644.0  -235.2  -418.7  389.9  
a Non-Profit Institutions Serving Household s. 
Note:  2018 preliminary figures.  
Source:  Prepared by the WTO Secretariat on the basis of data from the Central Bank of Costa Rica.  
1.44.   Net financial flows, particularly medium - and long -term private deposits and, above all, 
foreign savings in the form of direct investment, covered the total current account deficit in the 
balance of payments and contributed to the accumulation of reserve assets. The surplus was the 
result of large foreign direct investment (FDI) flows, a highe r level of external indebtedness (public 
and private) and significant portfolio investment incomes. In 2018, net flows from the financial 
account (including reserve assets) totalled USD 2 ,237 million  (up 65% from 2017), equivalent to 
3.7% of GDP. These inc luded direct investment flows, which were 1.46 times the current account 
deficit and equivalent to 4.5% of GDP in 2018.42 Although FDI flows were significant in 2018, they 
accounted for a smaller share of GDP than during the period 2008 -17, when they averag ed 5.8% 
of GDP.43 
1.45.   External  capital flows, associated with the BCCR's foreign currency purchases, resulted in a 
significant increase in the country's net international reserves (NIR) despite the current account 
deficit. In late 2018, NIR reached USD 7 ,501 million, equivalent to 3.3 months of imports of goods 
and services and 12.5% of GDP (12.3% in 2017).  
1.46.   During the period under review, external debt increased significantly in absolute terms, 
reaching USD 28 ,655 million (equivalent to 47.7% of GDP in 2018), c ompared to USD 14 ,473 million 
in 2012. This increase reflected the external indebtedness of the General Government, which was 
equivalent to 13.3% of GDP in 2018. External debt was equivalent to 140% of exports of goods and 
services in 2018. That year, most  external debt (61.1%) corresponded to long -term operations, and 
nearly 27.1% of total liabilities were indebtedness of direct investment companies and their parent 
companies.44 
1.3  Trends and patterns in merchandise and services trade  
1.3.1   General  aspects  
1.47.   Costa Ric a's foreign trade (exports and imports) in goods went from 50.1% of GDP in 2012 
to 46.4% in 2018, reflecting lower growth in securities traded than in GDP in general. During the 
period under review, Costa Rica's foreign trade continued to diversify, with s ervices accounting for 
a greater share of exports. Between 2012 and 2018, services exports rose from 41% to 44.2% of 
total exports, on a balance -of-payments basis.  
1.3.2   Merchandise trade  
1.3.2.1   Composition of merchandise trade  
1.48.   The composition and direction of Costa Ri ca's merchandise trade, including data generated in 
free zones, are shown in Appendix Tables A1.1 to A1.4. During the period under review, Costa Rica's 
                                                
42 Central Bank of Costa Rica (2019),  Memoria Anual 2018 . Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anual_ 2018.pdf . 
43 Central Bank of Costa Rica (2019),  Memoria Anual 2018 . Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/M emoria_Anual_2018.pdf . 
44 Central Bank of Costa Rica (2019),  Memoria Anual 2018 . Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anual_2018.pdf . WT/TPR/S/392 • Costa Rica  
 
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  foreign trade growth slowed down somewhat, mainly due to slower import growth. Between 2012 
and 2018, the value of merchandise exports grew at an average rate of 3.9% per annum, while 
imports grew at an average rate of 1.8%, compared to 4.9% for exports and 6.6% for imports 
during the period 2007 -12. In 2018, merchandise exports totalled USD 11 ,287 million, while imports 
totalled USD 16 ,566 million.  
1.49.    Exports of manufactured products  (according to the Standard International Trade 
Classification , Rev. 3) continue to dominate goods exports, accounting for 75% of the total in 2018 
(Table A1.1 and Chart 1.1). Agricultural products accounted for 25% of foreign sales in 2018. With 
regard to manufactured products, the main exports were medical instruments, followed by chemicals 
(including medicaments), electronics and other semi -manufactures (including tyres, paper and 
rubber). During the period under review, medical instruments and devices produced by companies 
located in free zones became the leading exports, accounting for 28.9% of total exported goods in 
2018 (16.9% in 2012), surpassing edible fruit and nuts, which accounted for 19.6% of the total 
(19.9% in 2012). As to the breakdown of agricultural products, bananas continued to be the leading 
individual export item (9.1% of the  total in 2017), with pineapples close behind (8.9%). Other 
significant exports included coffee, palm oil, melons, cassava, flowers, foliage and food preparations.  
1.50.   Most of Costa Rica's imports are manufactured goods, which accounted for more than 
three  quarters of total merchandise imports in 2018 (Table A1.2 and Chart 1.1). With regard to 
manufactured goods, imports of machinery and transport equipment, chemicals, and 
telecommunications machinery and equipment were significant. Imports of mineral products, 
essentially fuels, represented 10.6% of total imports in 2018, down from 15.7% in 2012, due to the 
decrease in the international prices of oil. Agricultural products co nstituted 11% of the import bill 
and consisted primarily of food and beverages (6.6% of the total).  WT/TPR/S/392 • Costa Rica  
 
- 29 - 
 
  Chart 1.1 Merchandise exports and imports by type of product, 2012 and 2018  
 
Source:  WTO Secretariat estimates based on information provided by the authorities.  
1.3.2.2   Direction of merchandise trade  
1.51.   The United States strengthened its position as Costa Rica's main export market during the 
period under review, receiving 40.6% of goods exports in 2018 ( Table A1.3 and Chart 1.2). The 
member countries of the Central American Common Market (CACM), as a whole, received 16% of 
Costa Rica's exports in 2018, down from 17.7% i n 2012. Exports to the European Union showed a 
slight increase, accounting for 20.8% of total merchandise exports in 2018, compared to 18.6% in 
2012; the main destinations were the Netherlands and Belgium. Exports to Asia accounted for 6.3% 
of the total, w ith Japan and China as the main export markets.  
1.52.   The United States continued to be the main country of origin of Costa Rican imports in 2018, 
although its share of total imports fell considerably, from 42.8% in 2012 to 39.1% in 2018 
(Table  A1.4 and Chart 1.2). Mexico was also an important supplier and was the origin of 7% of total 
imports in 2018. Imports from CACM countries, as a whole, accounted for 5.5% of the total in  2018. 
The share of total imports from Asia significantly increased, accounting for 23.1% in 2018 compared 
to 18.1% in 2012. Particularly noteworthy were imports from China, which rose from 9.6% of total 
2012 2018
Exports
Total:   USD 8,696.9 millon Total:  USD 11,287.0 millon
Imports
Transport 
equipment 
7.8%Other
13.7%
Mineral products 
15.7%
Plastics and 
rubber
8.2%Mineral 
products
10.6%Other
15.6%
Vegetable products 
4.4%
Total:  USD 14,915.2 millon Total:   USD 16,566.3 millonPrepared food, 
beverages and 
tobacco 13.2%
Chemicals
12.8%Other
16.3%
Precision instruments 
16.9%Other
11.8%
Pineapples
8.9%
Plastics and
rubber
7.1%
Transport equipment 
7.3%Chemicals
4.9%Bananas
9.4%
Other vegetable 
products
10.6%Vegetable 
products
25.3%
Chemicals
11.6%Electric machines 
and apparatus 
17.6%Electric machines 
and apparatus 
7.9%
Vegetable products 
5.1%Electric machines 
and apparatus
19.3%
Plastics and 
rubber
9.5%Vegetable 
products
28.9%Bananas
9.1%
Pineapples
8.9%
Other vegetable 
products
7.3%
Prepared food, 
beverages and 
tobacco 12.3%Chemicals
6.2%Plastics and
rubber
5.8%Precision instruments 
28.9%
Electric machines and 
apparatus
5.5%Base metals
4.9%
Base metals
4.2%
Base metals
9.3%Base metals
10.1%Prepared food, 
beverages and 
tobacco 6.6%Prepared food, 
beverages and 
tobacco 5.6%
Pulp of wood; 
paper and 
paperboard
4.5%Pulp of wood; 
paper and 
paperboard
4.6%WT/TPR/S/392 • Costa Rica  
 
- 30 - 
 
  imports in 2012 to 13.7% in 2018. European Union cou ntries supplied 9.6% of Costa Rican imports 
in 2017, up from 8% in 2012; the main European suppliers were Germany, Spain and Italy.  
Chart 1.2 Merchandise trade by trading partner, 2012 and 2018  
 
CACM = Centra l American Common Market.  
Source:  WTO Secretariat calculations based on data provided by the authorities.  
1.3.3   Trade in services  
1.53.   During the period under review, Costa Rica continued to increase its traditional surplus in the 
services balance. Preliminary data from the BCCR show that, in 2018, services exports expanded by 
4.4% and accounted for 15.1% of GDP (USD 9 ,092.4 million), while imports increased by 3.8% and 
had a relative weight of 6.4% with respect to GDP. The balance of trade in servic es was USD 5 ,245 
million, equivalent to 8.7% of GDP, while in 2012, the surplus reached USD 3 ,984 million (Table  1.6). 
1.54.    The most significant  services export s were travel (inbound tourism), followed by other 
business services and information technology and information services. The services exports that 
showed the greatest increases in 2018 included business support and exports related to 
telecommunications  and information. Travel accounted for 42.1% of total revenue in 2018, which, 
Gráfico 1.[cri]  Comercio de mercancías por interlocutor comercial, 2012 y 2018
2012 2018
Exports
Total:   USD 8,696.9 millon Total:  USD 11,287.0 millon
Imports
EU-28 
8%Other
4.1%
CACM
5.7%
United States 
42.8%Other
5.6%
CACM
5.5%
Total:  USD 14,915.2 millon Total:   USD 16,566.3 millonUnited States
40.6%
United States
39.1%Asia
3% Netherlands
5%Asia
6.3% Other
1.2%
Source: WTO Secretariat calculations based on data provided by the authorities.United States
40.6%Panama
5.3%EU-28
18.6%
Honduras
3.9% Panama
6.1%
China
13.7%
EU-28
9.6%Guatemala
4.7%Other EU -28
10.2%Belgium 
3.4%
Nicaragua
5.7%
El Salvador
3.4%EU-28
20.8%
Mexico
7.8%Other America   
13.5%Other America 
12.8%
Other America
9.7%Other
1.3%
Other Asia
9.4%Other Asia
8.5%Belgium
5.9%
Other America
10%
Mexico
7%China
9.6%CACM
16%CACM
17.7%Nicaragua
4.5%Guatemala
5.2%
Honduras
3.6%
El Salvador
2.7%Netherlands
6%Other EU -28
8.9%
CACM = Central American Common Market.WT/TPR/S/392 • Costa Rica  
 
- 31 - 
 
  according to the authorities, demonstrates that the country continues to be an attractive tourist 
destination and a competitive location for the installation of companies dedicated to the development 
of tradeable service activities.45 Transportation, travel, financial services and the use of trademarks 
or intellectual property were noteworthy among outgoings for services.  
Table 1.6 Trade in services, 2012 -18 
(USD million)   
2012  2013  2014  2015  2016  2017  2018  
Services balance  3,984.3  4,563.6  4,539.3  4,608.7  5,109.8  5,000.1  5,245.2  
Credit  6,208.6  6,949.2  7,106.1  7,693.6  8,537.1  8,704.3  9,092.4  
Travel  2,529.1  2,928.1  2,996.3  3,266.5  3,648.4  3,723.7  3,832.1  
Other business  1,718.5  2,064.8  2,252.2  2,606.8  2,925.0  2,960.6  3,144.8  
Telecommunications, information 
technology and information  691.6  723.4  849.1  1,001.7  1,094.7  1,174.7  1,255.6  
Transport  540.3  540.5  436.4  496.1  503.3  456.6  466.0  
Processing services  643.9  554.2  360.4  149.1  136.9  151.4  159.0  
Repair and maintenance n.i.e.  36.9  68.0  76.8  81.1  103.2  107.8  118.0  
Financial  17.3  41.5  86.4  65.3  89.6  90.3  85.3 
Government goods and services n.i.e.  29.9  26.6  31.8  24.6  29.0  31.8  23.9 
Charges for the use of intellectual 
property  0 0 0 0.4 5.4 5.6 5.9 
Insurance and Pension  0.9 1.7 1.5 2.0 1.7 1.9 1.9 
Construction  0 0 0 0 0 0 0 
Personal, cultural and recreational  0.3 0.4 15.1  0 0 0 0 
Debit  2,224.2  2,385.6  2,566.8  3,084.9  3,427.3  3,704.2  3,847.3  
Travel  422.0  424.8  450.1  690.1  802.9  895.3  861.8  
Other business  96.0  92.7  104.3  264.1  384.6  453.3  465.8  
Telecommunications, information 
technology and information  163.8  168.4  213.3  220.9  247.5  268.6  296.5  
Transport  981.2  1,003.2  962.1  1,008.6  1,078.0  1,119.0  1,157.3  
Processing services  0 0 0 0 0 0 0 
Repair and maintenance n.i.e . 4.2 4.3 1.4 1.2 1.2 3.9 3.4 
Financial  102.0  137.6  165.5  176.9  184.8  209.2  261.3  
Government goods and services n.i.e.  24.1  14.4  17.8  17.5  14.9  13.0  13.6  
Charges for the use of intellectual 
property  310.6  374.4  454.7  495.8  503.4  538.2  565.2  
Insurance and Pension  117.6  163.5  195.4  208.1  207.0  202.7  221.5  
Construction  0 0 0 0 0 0 0 
Personal, cultural and recreational  2.7 2.3 2.2 1.7 3.0 1.0 1.0 
Source:  Prepared by the WTO Secretariat on the basis of data from the Central Bank of Costa Rica.  
1.4  Trends and patterns in foreign direct investment  
1.55.   Costa Rica is a significant net recipient of FDI and continued to receive large FDI flows during 
the period under review. Between 2012 and 2018, FDI stock in Costa Rica increased by 93% to 
reach USD 43 ,100 million (71.7% of GDP). During the same period, FDI flows to the country 
continued to grow and averaged  roughly USD 2 ,600 million per annum (Table 1.7). In 2018, 
Costa  Rica received FDI flows totalling USD 2 ,134 million, equivalent to 3.5% of GDP. Costa Rica's 
foreign FDI stock stood at USD 7 ,034 million in 2018.46 As a result of the gap between its external  
assets and liabilities, at the end of 2018, Costa Rica had an international debt equivalent to 53% of 
GDP. 
Table 1.7 Foreign direct investment by activity, 2012 -18 
 2012  2013  2014  2015  2016  2017  2018  
Total direct investment  
(USD million)  2,258.1 2,741.1 2,926.6 2,751.9 2,203.9 2,742.3 2,134.2 
Sector  % of total  
Agriculture, forestry and fishery  1.0 0.1 0.9 14.6 2.4 0.1 0.4 
Mining quarrying  -0.1 0 -0.4 0 2.5 -0.1 0.1 
Manufacturing  17.7 12.0 21.0 22.6 43.3 46.2 53.2 
Electricity, water and sanitation 
services  1.1 0.5 6.4 0.7 9.8 1.1 0.3 
Construction  0.8 1.0 0.5 11.6 12.2 3.0 4.2 
                                                
45 Central Bank of Costa Rica (2019),  Memoria Anual 2018 . Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anual_2018.pdf . 
46 Central Bank of Costa Rica (2019),  Memoria Anual 2018 . Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anual_2018.pdf . WT/TPR/S/392 • Costa Rica  
 
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   2012  2013  2014  2015  2016  2017  2018  
Wholesale and retail trade  17.1 10.1 13.7 5.4 3.8 4.8 6.0 
Transportation and storage  0.9 0.9 0.4 0 0.3 0.1 -0.9 
Accommodation and food services  3.1 4.7 1.2 1.9 4.0 16.2 1.0 
Information and communication  22.0 4.2 10.2 6.8 4.8 5.3 16.2 
Financial and insurance activities  6.5 8.8 9.7 11.3 5.1 6.4 6.6 
Real estate activities  21.2 46.9 26.0 16.3 13.7 9.1 11.8 
Professional, scientific, technical, 
administrative and support  8.6 9.8 9.4 8.7 -1.6 7.4 0.9 
Education, human health and 
social work activities  0.4 0.3 0.1 0 -0.5 0.7 0 
Other activities  -0.3 0.7 0.9 0 0.1 -0.2 0.1 
Source:  Prepared by the WTO Secretariat on the basis of data from the Central Bank of Costa Rica.  
1.56.   During the period under review, there was a significant change in the sectoral composition of 
FDI flows. There was greater investment in the manufacturing sector, especially in high -tech 
segments, such as those for medical equipment produced in free zones, and its share of total FDI 
reached 46.2% in 2017. Investment in accommodation and food services grew exponentially as a 
result of the tourism boom, rising from 3.1% of the total in 2012  to 16.2% in 2017. At the same 
time, there was a smaller share of FDI in information and communication, in wholesale and retail 
trade, and in real estate activities. The United States continued to be the primary source of FDI flows 
to Costa Rica, accountin g for 62.2% of the total in 2018, followed by the Netherlands with 6%, 
Panama with 4.2% and Mexico with 3.4%.47 
 
                                                
47 Online information. Viewed at: 
http://indicadoreseconomicos.bccr.fi.cr/indicadoreseconomicos/Cuadros/frmVerCatCuadro.aspx?idioma=1&Cod
Cuadro=%202185 . WT/TPR/S/392 • Costa Rica  
 
- 33 - 
 
  2  TRADE AND INVESTMENT  REGIME  
2.1  General Framework  
2.1.  The Political Constitution of Costa Rica dates back to 1949 and has undergone several reforms 
in accordance with the procedures laid down in the document itself.1 Partial constitutional reforms 
may be put to a referendum; no referendum will be held, however, in the cases of reforms relating 
to budgetary, tax, fiscal, monetary, credi t, pension or security matters, the approval of loans and 
contracts, or administrative acts.2 Since the most recent review of Costa Rica's trade policies in 
2013, the Constitution has been amended twice: in 2015, to establish the multi -ethnic and 
multicult ural nature of the Costa Rican Republic, and in 2018, to stipulate that deputies must meet 
the standard of probity.3  
2.2.  Costa Rica is a unitary republic.4 The State consists of three Branches that discharge their 
functions independently. Legislative power is  vested in the Legislative Assembly, a unicameral body 
comprising 57 deputies. Executive power rests with the President (and 2 Vice -Presidents) of the 
Republic and 21 Ministers appointed by the President.5 The President and the Ministers make up the 
Govern ment Council. The President of the Republic is the Head of the Government Council and Head 
of State. Judicial power rests with the Supreme Court of Justice6 and other courts established by 
law. In addition, the Supreme Electoral Tribunal, which organizes a nd oversees the electoral process, 
exercises its powers independently in a manner similar to the Legislative, Executive and Judicial 
Branches, and is therefore regarded as the fourth branch of the State.7 
2.3.  Presidential and legislative elections are held con currently. The President of the Republic and 
the deputies serve four -year terms of office and may be re -elected, though not consecutively. Before 
a candidate may stand again for the office of President, eight years must have elapsed since the end 
of his fi rst term of office. In the case of deputies, that period is four years.  
2.4.  Costa Rica's territory is divided into seven provinces, which are subdivided into 81 cantons and 
481 districts.8 The cantons are run by a municipal council headed by a mayor, while th e districts are 
run by a district council chaired by a trustee (síndico) . In the municipal council, the trustee has only 
the right to speak. Nevertheless, in the districts furthest away from the centre of the canton there 
are district municipal councils, w hich are headed by a mayor (intendente) ; these councils may take 
certain decisions without having to consult the municipal council.9  
2.5.  The Political Constitution is the supreme law in Costa Rica and is followed, in order of 
importance, by: international tre aties, laws, decrees, regulations and other norms subject to the 
regulations.10 Costa Rica has an online judicial information system.  
2.6.  Draft laws may be prepared by the Executive, deputies or citizens (at least 5% of the citizens 
inscribed in the electoral r egister). Citizens may not table draft laws regulating budgetary, fiscal and 
tax matters, however. There are two procedures for the processing of draft laws: the extraordinary 
legislative procedure, which is used only for draft laws relating to the budget and to constitutional 
                                                
1 Articles 195 -196 of the Political Constitution, and the Manual of Legislative Procedures of the 
Legislative Assembly. Viewed at: 
http://www.asamblea.go.cr/ca/Docum entos%20compartidos/Proceso_Formacion_Ley.pdf . 
2 Articles 195 and 105 of the Constitution.  
3 Article 1 of the Constitution, as amended by Law No. 9305 of 24 August 2015, and Article 112 of the 
Constitution, as amended by Law No. 9571 of 23 May 2018.  
4 Online information. Viewed at: http://www.tse.go.cr/generalidades_jurisdiccion.htm . 
5 The list of the Ministries may be viewed at: http:// presidencia.go.cr/ministerios . 
6 The Supreme Court of Justice comprises 22 judges whose term of office is renewed automatically, 
unless two thirds (or more) of the Legislative Assembly object.  
7 Article 9 of the Political Constitution and online information. Viewed at: 
http://www.tse.go.cr/el_tse.htm . 
8 Statistical Yearbook -Population, National Institute of Statistics and Censuses (INEC). Viewed at:  
http://www.inec.go.cr/documento/cuadro -732-total-de-cantones -y-distritos -segun -provincia -2015. 
9 Articles 168 -175 of the Political Constitution, Law on Administrative Territorial Division (Law No. 8173) 
of 7 December 2001, and online information from the Supreme Electoral Court (TSE). Viewed at: 
http://www.tse.go.cr/generalidades_j urisdiccion.htm . 
10 Article 6 of Law No. 6227 of 2 May 1978.  WT/TPR/S/392 • Costa Rica  
 
- 34 - 
 
  reforms; and the ordinary legislative procedure, which is the one more often used.11 This latter 
procedure has not changed substantially since 2013 ( Chart 2.1). Citizens may approve or repeal 
laws and constitutional reforms by referendum.12 
Chart 2.1 Ordinary legislative procedure  
 
a A favourable opinion is generally required so as to initiate debates. In some cases, however, this 
opinion may be dispensed with if the Legislative Assembly so decides.  
b The Plenary appoints a standing committee with full legislative power to debate the draft laws that are 
assigned to it.  
c If two thirds of the vo tes are not obtained, the draft law is filed away and may be reconsidered during 
the following legislative session.  
Source:  Articles 123 -129 of the Constitution, and Manual of Legislative Procedures of the Legislative 
Assembly. Viewed at: 
http://www.asamblea.go.cr/ca/Documentos%20compartidos/Proceso_Formacion_Ley.pdf .  
                                                
11 Manual of Legislative Procedures of the Legislative Assembly. Viewed at: 
http://www.asamblea.go.cr /ca/Documentos%20compartidos/Proceso_Formacion_Ley.pdf . 
12 Articles 195 and 105 of the Constitution.  
PREPARATION OF THE DRAFT LAW
LEGISLATIVE 
ASSEMBLYThe draft law is tabled
Publication of the draft law 
in the Official Journal
The draft law is 
rejectedFirst debate
The draft law is 
approved
The draft law is 
approved
EXECUTIVE 
BRANCH
The draft law is 
passed and the 
law is enactedObjections are raised on grounds 
of unconstitutionality or 
disagreement with the contentYes No
The Legislative 
Assembly reconsiders 
the text of the draft lawSecond debatePLENARYOrdinary 
Standing 
Committee
Unfavourable opinion 
Standing committee 
with full legislative 
powerbStudy of the 
draft law
Favourable 
opiniona
If the amendments proposed by the 
Executive are not accepted, the rejected text 
must be approved by two thirds of the 
deputies in order to be passedcThe amendments 
proposed by the 
Executive Branch are 
acceptedConstitutional 
Chamber of the 
Supreme Court of 
JusticeObjections on grounds of
unconstitionality
Constitutional 
consultations WT/TPR/S/392 • Costa Rica  
 
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  2.7.  The President of the Republic and the corresponding line minister hold exclusive power to sign  
international treaties. These must be approved by the Legislative Assembly by means of a law and 
must be ratified by the Executive through an executive decree. Usually, international treaties must 
be approved by an absolute majority of deputies; meanwhile , those attributing power to a 
supranational entity (to implement regional objectives) must be approved by two thirds of the 
deputies.13 The provisional implementation of international treaties is not allowed in Costa Rica.14 
2.8.  Costa Rica does not have a forei gn trade law as such. This notwithstanding, there are laws that 
contain elements relating to international trade. Some of these laws were revised during the period 
of this review (Table 2.1).  
Table 2.1 Main la ws pertaining to trade policy  
Measure/sector  Legislation  Number and date  Latest 
reform  
Customs  General Customs Law  Law No. 7557 of 20.10.1995  2015 
Anti-dumping and 
countervailing 
measures  Central American Regulations on Unfair 
Trade Practices  Executive Decree No. 33809 
of 8.5.2007  n.a. 
 Rules of Procedure for the Application of 
Measures to Combat the Circumvention 
of Anti -Dumping and Countervailing 
Duties and Safeguard Duties  Executive Decree No. 40559 
of 15.5.2017  n.a. 
Safeguard measures  Central American Regulations on 
Safeguard Measures  Executive Decree No. 33810 
of 24.5.2007  n.a. 
Technical regulations  Law on the National Quality System  Law No. 8279 of 21.5.2002  n.a. 
Central American Guide to Good 
Regulatory Practices  Executive Decree No. 41296 
of 9.11.2018  n.a. 
Sanitary measures  General Law on Health  Law No. 5395 of 24.2.1974  2018 
Law on Phytosanitary Protection  Law No. 7664 of 08.4.1997  2013 
General Law on Animal Health  Law No. 8495 of 16.5.2006  2010 
Incentives  Law Regulating Current Exemptions, 
Derogations and Exceptions  Law No. 7293 of 31.3.1992  2012 
 General Telecommunications Law  Law No. 8642 of 4.6.2008  2018 
Competition  Law on the Promotion of Competition and 
Effective Consumer Protection  Law No. 7472 of 20.12.1994  2016 
Government 
procurement  Government Procurement Law  Law No. 7494 of 1.5.1996  2018 
Intellectual property  Law on the Creation of the Office for 
Livestock Marks  Law No. 2247 of 7.8.1958  2010 
Law on Copyright and Related Rights  Law No. 6683 of 14.10.1982  2010 
Law on Patents, Industrial Designs and 
Utility Models  Law No. 6867 of 25.4.1983  2008 
Law on Biodiversity  Law No. 7788 of 30.4.1998  2008 
Law on Layout -Designs of Integrated 
Circuits  Law No. 7961 of 17.12.1999  n.a. 
Law on Undisclosed Information  Law No. 7975 of 4.1.2000  2008 
Law on Trademarks and Other Distinctive 
Signs  Law No. 7978 of 6.1.2000  2008 
Law on Procedures for Enforcement of 
Intellectual Property Rights  Law No. 8039 of 12.10.2000  2018 
Law on the Protection of New Varieties of 
Plants  Law No. 8631 of 6.3.2008  2008 
 Approval of the Protocol to the Central 
American Convention for the Protection 
of Industrial Property (Trademarks, Trade 
Names and Advertising Slogans or Signs)  Law No. 7982 of 14.1.2000  n.a. 
Financial services  Law on the Organization of the National 
Banking System  Law No. 1644 of 26.9.1953  2019 
Law on the Organization of the Central 
Bank of Costa Rica  Law No. 7558 of 27.11.1995  2019 
Law on Modernization of the Financial 
System of the Republic  Law No. 7107 of 4.11.1988  1995 
Law Regulating the Insurance Market  Law No. 8653 of 7.8.2008  2011 
                                                
13 Articles 119, 121 and 140 of the Political Constitution.  
14 Reservation 2 of Law No. 7615 of 24 July 1996.  WT/TPR/S/392 • Costa Rica  
 
- 36 - 
 
  Measure/sector  Legislation  Number and date  Latest 
reform  
Law Regulating Insurance Contracts  Law No. 8956 of 17.6.2011  n.a. 
Comprehensive Reform of the Law on the 
Development Banking System  Law No. 9274 of 27.11.2014  n.a. 
 Law Regulating the Securities Market  Law No. 7732 of 17.12.1997  2018 
Telecommunications  Radio Law  Law No. 1758 of 19.6.1954  2016 
Law on the Strengthening and 
Modernization of Public Entities in the 
Telecommunications Sector  Law No. 8660 of 8.8.2008  2012 
General Telecommunications Law  Law No. 8642 of 4.6.2008  2018 
 Law on the Public Services Regulatory 
Authority (ARESEP)  Law No. 7593 of 15.9.1996  2018 
Air transport  General Law on Civil Aviation  Law No. 5150 of 14.5.1973  2009 
Maritime transport  National Flag Vessel Registration Law  Law No. 12 of 22.10.1941  1958 
Law on Coastal Shipping Services  Law No. 2220 of 20.6.1958  2009 
Tourism  Law Regulating Travel Agencies  Law No. 5339 of 23.8.1973  1994 
Law on Tourism Development Incentives  Law No. 6990 of 15.7.1985  2001 
Law on the Promotion of Rural 
Community Tourism  Law No. 8724 of 17.7.2009  2012 
n.a. Not applicable.  
Source:  WTO Secretariat.  
2.2  Trade policy formulation and objectives  
2.9.  The Ministry of Foreign Trade (COMEX) is the body charged with formulating and implementing 
foreign trade and foreign investment policy in Costa Rica. Other ministries collaborate with COMEX 
in this regard, including the Ministry of Foreign Affairs and Worship, the Ministry of the Economy, 
Industry and Trade (MEIC) and the Ministry o f Agriculture and Livestock (MAG) ( Chart 2.2). Some 
trade policy decisions are taken jointly by several ministries. To modify the tariff, for example, an 
executive decre e must be issued by COMEX, MEIC and MAG (when applicable).15 Besides, COMEX is 
advised by the Advisory Council on Foreign Trade16 comprising representatives of four ministries 
(COMEX, which chairs it, MEIC, MAG and the Ministry of Foreign Affairs and Worship ), as well as 
representatives of the private sector and consumer associations.  
Chart 2.2 Institutions involved in trade policy  
 
Source:  Law No. 7638 of 30 October 1996 and Law No. 9430 of 20 April 2017.  
2.10.   The National Council for Trade Facilitation (CONAFAC) is attached to COMEX. It was set up 
and launched in 2017 to help implement the provisions of the WTO Agreement on Trade Facilitation 
(Chart 2.2). The Council is the body that coordinates government entities responsible for foreign 
trade procedures and for projects to improve formalities and physical a nd technological 
                                                
15 Law No. 7638 of 30 October 1996.  
16 Article 4 o f Law No. 7638 of 30 October 1996.  
Ministry of Foreign 
Trade (COMEX)
Formulates and manages
Foreign trade and foreign 
investment policy
Implements 
programmesForeign Trade Promotion 
Agency (PROCOMER )
Costa Rican Coalition for 
Development Initiatives 
(CINDE )Directorate for the 
Implementation of 
International Trade 
Agreements
National Council for 
Trade Facilitation 
(CONAFAC ) Ministry of Foreign Affairs and 
Worship and other ministriesCollaborate Advisory Council on 
Foreign Trade
Consults/
advises
Ensures compliance 
with trade and 
investment policies
Promotes the 
implementation of 
provisions on trade 
facilitationOversees implementation 
of regional trade 
agreementsGeneral Directorate of 
Foreign Trade ( DGCE )WT/TPR/S/392 • Costa Rica  
 
- 37 - 
 
  infrastructure at ports, airports and border posts in order to facilitate trade. CONAFAC comprises 
seven Vice -Ministers17 and five private sector representatives, each with the right to vote, and of 
whom four are appointed by the Costa Rica n Union of Chambers and Associations of the Private 
Business Sector. The Council's decisions are binding on the Public Administration. Since its 
establishment, CONAFAC has promoted important projects for trade facilitation in Costa Rica, some 
of the main o nes being the Border Integration Programme (PIF), the National System of Non -
Intrusive Inspection (use of scanners), the multimodal transport initiative (ferry) between Costa 
Rica and El Salvador, and the Central American Trade Facilitation Strategy. CONAF AC is supported 
by local (public -private) trade facilitation committees, which are set up at the borders to support 
and oversee the implementation of the Agreement.18 The National Council for Trade Facilitation took 
over the functions of the Board of Land B order Posts established in 2013 to speed up border 
controls.19  
2.11.   The Foreign Trade Promotion Agency (PROCOMER) a government entity, and the Costa Rican 
Coalition for Development Initiatives (CINDE), a private non -profit organization, work together with 
COMEX  to implement programmes to promote exports and attract foreign investment.20  
2.12.   COMEX represents Costa Rica in trade negotiations and formulates negotiating strategies with 
the support of the various sectors of the economy as well as civil society. COMEX rep orts periodically 
on the progress of negotiations. The COMEX Directorate for the Implementation of International 
Trade Agreements is charged with monitoring the implementation of trade agreements.  
2.13.   Costa Rica's trade policy objectives are laid out in the N ational Development Plan (PND), 
which is drawn up every four years. Under the 2015 -18 PND as well as that for 2019 -22, foreign 
trade is meant to be a vehicle for furthering the country's economic and social advancement. Costa 
Rica's trade policy rests on t hree pillars: negotiating, implementing and managing trade agreements; 
developing and promoting goods and services exports, and attracting foreign direct investment. The 
main aim of foreign trade policy is still to foster greater trade openness and the int ernationalization 
of the economy so as to allocate resources more efficiently, thereby creating additional sources of 
employment and reducing poverty as well as social and territorial inequality.21 
2.14.   Costa Rica attaches great importance to regional integratio n as one of the main underpinnings 
of its foreign policy. Proof of this is the fact that it has negotiated a network of trade agreements 
that have been instrumental in liberalizing and modernizing the economy as well as improving 
market access. The authori ties deem the trade agreements to have been crucially important to Costa 
Rica, as they have given rise to new opportunities for trade, market diversification and integration 
into value chains, thereby helping to boost the competitiveness of the economy.22 Costa Rica will 
therefore strive to negotiate new trade agreements and better manage and profit from existing ones. 
While it attributes great importance to regionalism, Costa Rica believes that its trade policy must be 
in harmony with the rules of the multi lateral trading system.  
2.15.   The authorities have also stated that Costa Rica will continue to implement policies to promote 
and diversify goods and services exports and diversify its markets, thereby strengthening its 
presence on international markets. Likewise, it will continue its efforts to simplify customs formalities 
in order to boost competitiveness and the quality of exports and be able to comply with the sanitary 
and/or technical stipulations in place in the various markets.  
2.16.   As regards its policy  of promoting foreign investment, Costa Rica strives to attract investment 
to high value -added sectors that promote the integration of Costa Rican products into global value 
                                                
17 The Vice -Ministers of the following bodies: Foreign Trade (President of CONAFAC); Ministry of Finance 
(revenue); Agriculture and Livestock; Ministry of Public Works and Transport (transport); Health; Public 
Security; an d Governance and Police.  
18 Law No. 9430 of 20 April 2017 and Executive Decree No. 40476 of 30 June 2017.  
19 Law No. 9154 of 3 July 2013 and online information. Viewed at: 
http://presidencia.go.cr/comunicados/2017/09/lanzan -el-consejo -nacional -de-facilitacion -del-comercio . 
20 The cooperation agreement signed in 2011 between COMEX, PROCOMER and CINDE was renewed in 
2016 (COMEX Document DM -COR-CAE-0246-2016 of 15 June 2016).  
21 PND 2015 -19. Viewed at: http://www.mideplan.go.cr/tools/social ; and  Plan Nacional de Desarrollo y 
de Inversión Pública del Bicentenario 2019 -2022. Viewed at: 
https://www.mideplan.go.cr/component/content/article?id=1963 . 
22 Online information. Viewed at: http://www.comex.go.cr /tratados_ie . WT/TPR/S/392 • Costa Rica  
 
- 38 - 
 
  chains. It is believed that greater foreign investment would pave the way for expo rt promotion and 
diversification as well as the transfer of technology and knowledge to other sectors of the economy.  
2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.17.   As a founding Member of the WTO, Costa Rica has been very active in the Organization and 
has reitera ted its support for the WTO on numerous occasions, as it believes that the multilateral 
trading system has created enormous value and fostered economic growth and human development 
for its Members.23 Costa Rica is of the view that it is essential to continu e to have a strong WTO and 
a rules -based multilateral trading system.24 Costa Rica trusts that the forthcoming negotiations will 
include new trade -related topics such as global value chains, electronic trade, facilitation of 
investments, integration of micr o, small and medium -sized enterprises into international trade, the 
interaction between trade and competition policy, and climate change.25 In 2017, Costa Rica signed 
three plurilateral declarations relating to initiatives for negotiations on electronic tra de, the 
facilitation of investment and the incorporation of micro, small and medium -sized enterprises into 
international trade.26 Costa Rica participates in the negotiations on the Environmental Goods 
Agreement, the aim of which is to eliminate tariffs affe cting such goods. Furthermore, Costa Rica is 
a member of the group of "Friends of the System", the group of "Friends of E -Commerce for 
Development" (FED), the Cairns Group, the Group on Tropical Products and the group of Friends of 
Anti-Dumping Negotiation s, and is a sponsor of the Joint Proposal in intellectual property.  
2.18.   In 2017 Costa Rica ratified and accepted the Protocol concerning the Trade Facilitation 
Agreement (TFA).27 As notified, Costa Rica will immediately implement virtually all the provisions of  
the Agreement (Articles 1 to 12), except for certain provisions regarding import/export and transit 
formalities (Articles 10.1.1 and 10.2.1) for which it has requested technical assistance; the indicative 
timelines for the implementation of these provisio ns have been notified.28 As a signatory to the 
Information Technology Agreement (ITA), Costa Rica took part in the negotiations held between 
2012 and 2015 to expand its scope. The other participants have approved the schedule of 
concessions submitted by Cos ta Rica.29 Since 2015 Costa Rica has been an Observer in the 
Government Procurement Committee. Costa Rica is not a signatory to the Agreement on Trade in 
Civil Aircraft.  
2.19.   Costa Rica also accepted the Protocol amending the Agreement on Trade -Related Aspects o f 
Intellectual Property Rights30 and the Fifth Protocol (financial services) to the General Agreement on 
Trade in Services.  
2.20.   Costa Rica accords at least most -favoured -nation (MFN) treatment to all its trading partners. 
This is the fifth review of its trade policies; the preceding review took place in 2013. During the 
period of this review, Costa Rica submitted numerous notifications under the various 
WTO Agreements (Table A2.1).  
2.21.   Mexico and Costa Rica held bilateral consultations in 2017 owing to measures imp osed by 
Costa Rica on imports of fresh avocados from Mexico.31 In November 2018, Mexico requested the 
                                                
23 WTO document WT/MIN(17)/ST/24 of 13 December 2017.  
24 COMEX press release, December 2017. Viewed at: http://www.comex.go.cr/sala -de-
prensa/comunicados/2017/diciembre/costa -rica-inicia-su-participaci%C3%B3n -en-la-xi-conferencia -
ministerial -de-la-omc. 
25 WTO documents WT/MIN(13)/ST/5/Rev.1 of 5 December 2013, WT/MIN(15)/ST/11 of 
18 December  2015 and WT/MIN(17)/ST/24 of 13 December 2017.  
26 WTO documents WT/MIN(17)/58, WT/MIN(17)/59 and WT/MIN(17)/60 of 13 December 2017.  
27 Costa Rica ratified the Protocol through Executive Decree No. 40342 of 4 April 2017. Costa Rica's 
instrument of acc eptance was deposited on 1 May 2017.  
28 WTO documents WT/PCTF/N/CRI/1 of 19 May 2014 and G/TFA/N/CRI/1 of 7 November 2017.  
29 WTO documents G/MA/W/117/Add.6 of 28 January 2016 and G/MA/W/117/Add.6/Rev.1 of 
7 July 2016, and WTO online information. Viewed at: 
https://www.wto.org/english/tratop_e/inftec_e/itaintro_e.htm . 
30 WTO document WT/Let/838 of 14 December 2011.  
31 WTO document  WT/DS524/1 of 13 March 2017.  WT/TPR/S/392 • Costa Rica  
 
- 39 - 
 
  establishment of a panel,32 and this was done in May 2019.33 As of May 2019 this was the only 
complaint filed against Costa Rica. Between 2013 and 2018, Cost a Rica did not participate in any 
disputes either as a complainant or as a third party.  
2.3.2   Regional and preferential agreements34 
2.22.   Costa Rica is a member of the Central American Common Market, which was created through 
the General Treaty on Central American Eco nomic Integration. Costa Rica has also signed other 
trade agreements, including the Free Trade Agreement between Central America, the Dominican 
Republic and the United States (CAFTA -DR), which is one of the most important ( Chart 2.3). Since 
the preceding trade policy review in 2013, Costa Rica has concluded several trade agreements and 
stepped up its participation in existing ones.35 These trade agreements are in force for Costa Rica 
and, with the exception of that with CARICOM, have been notified to the WTO.36 
Chart 2.3 Trade agreements in force, 2019  
 
Source:  Online information from COM EX. Viewed at: http://www.comex.go.cr/tratados_ie .  
2.23.   During the review period, Costa Rica continued to implement the Tariff Reduction Programme 
agreed under the Free Trade Agreement between Central America,  the Dominican Republic and 
the United States (CAFTA -DR) (Box 2.1).37  
                                                
32 WTO document WT/DS524/2 of 27 November 2018.  
33 WTO document WT/DS524/3 of 20 May 2019.  
34 Online information. Viewed at: http://www.comex.go.cr/tratados_ie . 
35 Online information. Viewed at: http://www.comex.go.cr/tratados_ie . 
36 Online information. Viewed at: http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx . 
37 The CAFTA -DR was signed in 2004 and took effect on 1 March 2006 for El Salvador and the 
United  States; on 1 April 2006 for Honduras and Nicaragua; on 1 July 2006 for Guatemala; on 1 March 2007 
for the  Dominican Republic; and on 1 January 2009 for Costa Rica.  
ChinaUnited States
Dominican Republic 
ChileMexico
Costa Rica
NicaraguaHondurasEl SalvadorPanama
GuatemalaEU
Dominican Republic CAFTA -DR
CENTRAL AMERICAN
COMMON MARKET 
PeruColombia
SingaporeEFTA Canada
CARICOMWT/TPR/S/392 • Costa Rica  
 
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  Box 2.1 CAFTA -DR: Tariff reduction, 2013 -18 
Under the CAFTA -DR, Costa Rica has a tariff reduction schedule which will be fully implemented by  2025 with 
respect to all Parties. Pursuant to the tariff reduction programme, Costa Rica eliminated most tariffs in 2015, 
leaving 95.3% of tariff lines duty -free for signatories to the Agreement. In 2018, this percentage was 95.9%.  
The products that remain protected are all agricultural goods. Tariff reductions for "sensitive" agricultural 
produce began in 2016 and will be completed in 2025. The agricultural products concerned include: rice, 
chicken thighs, pork and beef and some dairy products. Fresh  potatoes and fresh onions (0.1% of total tariff 
lines) are excluded from the tariff reduction programme.  
Costa Rica also negotiated tariff quotas with the United States and the Dominican Republic. In the case of 
imports from the United States, quotas wer e negotiated for: rice, pork, poultry meat (thighs, legs), fresh 
onions, fresh potatoes and frozen potatoes for frying, as well as various dairy products (ice cream, milk 
powder, butter, cheese and others). In the case of the Dominican Republic, milk powde r and chicken breasts 
are subject to tariff quotas.  
For imports from the United States, a 0% tariff became applicable to in -quota imports as of the entry into 
force of the Agreement. The volume of in -quota imports will increase gradually, and the quotas eliminated 
within a 5 - to 20-year time -frame, and out -of-quota duties gradually phased out. The quotas for fresh potatoes 
and onions will not be eliminated; their volume will nevertheless increase by 6 tonnes annually. Out -of-quota 
imports will be subject to the MFN tariff.  
From 2013 to 2018, Costa Rica gradually increased the volume of in -quota imports and began the gradual 
elimination of out -of-quota tariffs on rice, pork, chicken thighs and dairy products.  
In the case of imports from the Dominican Rep ublic, a 12.5% in -quota tariff is currently applied to chicken 
thighs and 0% to imports of powdered milk. The volume of the quota (2,070 tonnes) remains constant. 
Out-of-quota tariffs will be phased out between 2016 and 2025. The in -quota tariff on milk po wder has been 
0% since 2013 and out -of-quota duties will be phased out between 2016 and 2025.  
Source:  WTO document WT/REG211/3 of 18 July 2016.  
2.24.   As of 2013, besides the Central America -Panama Free Trade Agreement and its Bilateral Trade 
Protocols of 2008, trade between Costa Rica and Panama has been regulated by the General Treaty 
on Central American Economic Integration (TGIEC), adopted by Panama through the Protocol 
Incorporating the Republic of Panama into the Central American Integration Subsystem. Cost a Rica 
abolished tariffs on 90% of imports from Panama as of 2013. The products to be gradually liberalized 
are vehicles, some oils and fats and certain types of pork.38  
2.25.   Since 2013 Costa Rica has signed regional trade agreements with the countries of the 
European Free Trade Association (EFTA), as well as with Colombia, the EU, Mexico, Peru and 
Singapore. The agreements with the EU and the EFTA countries consolidate and expand the 
preferences that are granted through the Generalized System of Preferences (GS P Plus).39 
Meanwhile, the 2013 Free Trade Agreement between Central America and Mexico replaced three old 
bilateral agreements, consolidating them into a single agreement; in virtue of this, the 1995 Bilateral 
Free Trade Agreement with Mexico was voided.40  
2.26.   The new trade agreements include provisions on market access for goods and services, as 
well as investment promotion measures. As pertains to market access for goods, the agreements 
lay out programmes for gradual tariff reduction (Table 2.2), and a number  of provisions have been 
negotiated to eliminate non -tariff barriers. In the case of access to services markets, the agreements 
provide for two modalities, namely, a "negative list" and a "positive list".41  
                                                
38 Resolution 331 -2013 (COMIECO -LXVI), as amended by Resolution 08 -2018 (CEIE).  
39 Information provided by the authorities.  
40 The signatories of the three free trade agreements were: Mexico and Costa R ica; Mexico and 
Nicaragua; and Mexico and the Northern Triangle (El Salvador, Guatemala and Honduras).  
41WTO documents WT/REG357/1/Rev.1 of 6 April 2016 (EFTA), WT/REG376/1 of 10 April 2018 
(Colombia), WT/REG349/1 of 7 September 2015 (Mexico), WT/REG342/1/R ev.1 of 26 June 2014 (Peru) and 
WT/REG347/1 of 3 March 2014 (Singapore).  WT/TPR/S/392 • Costa Rica  
 
- 41 - 
 
  Table 2.2 Trade agreements in force, 2013 -19 
 
Free Trade 
Agreement 
between the 
EFTA States and 
the Central 
American Statesa Free Trade 
Agreement 
between 
Costa Rica 
and 
Colombia  Free Trade 
Agreement 
between 
Central 
Americab 
and 
Mexico  Free Trade 
Agreement 
between 
Costa Rica 
and Peru  Free Trade 
Agreement 
between 
Costa Rica 
and 
Singapore  Association 
Agreement 
between 
Central 
Americac 
and the 
European 
Union  
Date of entry into force  Norway:  
19.8.2014  
Switzerland and 
Liechtenstein: 
29.8.2014  
Iceland:  
5.9.2014  1.8.2016  1.7.2013  1.6.2013  1.7.2013  1.10.2013  
Scope  Goods and services  Goods and 
services  Goods and 
services  Goods and 
services  Goods and 
services  Goods and 
services  
Tariff elimination programme   
End of tariff reduction 
period  2028 2030 2022 2027 2022 2028 
(% of total tariff lines)  
Duty-free lines  95.1 95.9 97.9 98.6 100.0  95.7 
Immediate tariff 
reduction  59.3 70.6 97.9 77.8 90.6 47.9 
Less than 10 years  6.4 4.1 0.0 3.6 0.1 7.4 
10 years  26.0 16.5 0.0 12.6 9.2 36.3 
More than 10 years  3.4 4.7 0.0 4.6 0.1 4.1 
Lines for which the tariff 
is maintained  4.9 4.2 2.1 1.3 0.0 4.0 
Tariff quotas  n.a. 0.0 n.a. 0.1 n.a. 0.3 
a Costa Rica and Panama.  
b Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.  
c Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.  
n.a. Not applicable.  
Source:  Online information from COMEX. Viewed at: http://www.comex.go.cr/tratados_ie , and information 
provided by the authorities.  
2.27.   Costa Rica undertook to eliminate tariffs immediately for a certain percentage of tariff lines 
ranging between 47.9% (EU) and 93.3% (EFTA). Broadly speaking, Costa Rica will eli minate most 
tariffs over a period not exceeding ten years (Table 2.2). The remaining goods are subject to a 
longer tariff reduction period (but never exceeding 15 years), or will be excluded from the tariff 
reduction programme. By the end of the tariff red uction period, Costa Rica will eliminate tariffs on 
all products from Singapore (Table 2.2). Tariffs will be removed from all imports of manufactures 
from EFTA  countries and the EU at the end of the respective tariff reduction periods.42 
2.28.   The agreements betw een Costa Rica and the EU, Colombia and Peru contain tariff quotas. 
Under the agreement with the EU, tariff quotas were negotiated for Central America as a whole 
(regional) and for each country in particular (national).43 Regional quotas are in place for im ports of 
cured hams and bellies (streaky), whey, and pork (prepared or preserved), while the quotas for 
Costa Rica will cover imports of powdered milk and cheese. In the case of regional quotas, 
out-of-quota tariffs will be eliminated gradually; this is no t so for the national quotas.44 Under the 
agreement with Colombia, tariff quotas were negotiated for imports of dog and cat food put up for 
retail sale, and in the case of Peru, for beef. The out -of-quota tariff will not be liberalized in either 
of these tw o cases.45  
                                                
42 Online information. Viewed at: http://www.comex.go.cr/tratados_ie . 
43 Executive Decree No. 37875 -COMEX of 24 September 2013.  
44 Online information from COMEX. Viewed at: http://www.comex.go.cr/tratados_ie . 
45 Online information from COMEX. Viewed at: http://www.comex.go.cr/tratados_ie . WT/TPR/S/392 • Costa Rica  
 
- 42 - 
 
  2.29.   With regard to rules of origin, the new Free Trade Agreement between Central America and 
Mexico amended the preferential rules of origin that governed the previous agreement. Specifically, 
the new agreement allows for regional and extended cumul ation of origin.46 
2.30.   In 2018, Central America47 and the Republic of Korea signed a free trade agreement that has 
not yet been ratified by Costa Rica (as at February 2019). Costa Rica is an Observer State in the 
Pacific Alliance and applied for membership in 20 14.48 
2.3.3   Other agreements and arrangements  
2.31.   Australia, Belarus, Japan, the Russian Federation, Kazakhstan, New Zealand and Turkey grant 
unilateral tariff preferences to Costa Rica under their respective Generalized System of Preferences 
(GSP).  
2.32.   Costa Rica participates in the negotiations on the Trad e in Services Agreement (TiSA).49 
2.4  Investment regime  
2.33.   Costa Rica's investment regime has remained virtually unchanged since 2013. There is no 
general law governing this regime; instead it falls under several laws and executive decrees as well 
as provisions of  the Constitution.  
2.34.   Foreign investors do not require prior authorization to invest in Costa Rica. There are no 
foreign exchange restrictions, nor are there are limitations on the repatriation of profits or capital 
from the liquidation of an investment. Rem ittances, however, are subject to a tax.50 
2.35.   Costa Rica accords national treatment to foreign investment.51 Some activities are 
nonetheless reserved either for the Costa Rican State or for domestic investors. State enterprises 
hold monopolies on the provision of public fixed telephony services; the import, refining and 
wholesale distribution of petroleum and petroleum by -products; the production and marketing of 
spirits; and lotteries and bingos (Table 2.3). Furthermore, the Constitution stipulates that the pow er 
generated through the use of water resources in the public domain, the working of deposits (coal, 
radioactive minerals as well as petroleum and other hydrocarbons), the provision of wireless services 
and the construction, operation and management of the  railway network, ports and airports may 
never definitively leave State ownership.52 Private investment (domestic or foreign) is still allowed 
in these activities, except for opencast mining and the exploration and exploitation of petroleum 
deposits (until 2021).53 There are some restrictions on professional, entertainment and advertising 
services.54 
                                                
46 Online information from SICEX, El Salvador. Viewed at: 
https://www.centrex.gob.sv/scx_html/FTAs%20Mexico -Central America.html , and explanatory document, 
Central America -Mexico FTA. Viewed at: http://infotrade.minec.gob.sv/mexico/wp -
content/uploads/sites/4/TLC -C.A.-México.WEB_.pdf . 
47 Costa Rica, El Salvador, Guatemala,  Honduras, Nicaragua, and Panama.  
48 Online information. Viewed at: https://alianzapacifico.net/en/observant -countries . 
49 Although the TiSA is being negotiated by a group of WTO Members, the negotiations are taking place 
outside the framework of this Organization. WTO online information. Viewed at: 
https://www.wto.org/english/thewto_e/minist_e/mc9_e/brief_serv_e.htm . 
50 Online information. Viewed at: 
http://www.hacienda.go.cr/docs/58c95fbf7e459_REMESAS%20 AL%20EXTERIOR.pdf . 
51 Article 19 of the Constitution.  
52 Article 121 of the Constitution.  
53 Executive Decree No. 36693 of 1 August 2011.  
54 WTO document WT/TPR/S/286/Rev.1 of 27 November 2013.  WT/TPR/S/392 • Costa Rica  
 
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  Table 2.3 Main restrictions on domestic and foreign investment, 2019  
Sector/activity  Investment  Legislation and/or description  
of the restriction  Domestic  Foreign  
Agriculture and fishing  
Fishing  Authorized  Not 
authorized  Law No. 8436 of 1.3.2005  
Only Costa Rican vessels are entitled to fish in the 
exclusive economic zone. Foreign vessels may 
nevertheless be authorized to engage in purse 
seine tuna fishing in the exclusive economic zone 
under an international treaty or a special 
domestic law.  
Manufacturing  
Production 
(distillation) and 
marketing of spirits  Not authorized  Not 
authorized  Law No. 2035 of 17.7.1956  
State monopoly  
Mining and energy  
Electricity (generation)  Authorized  Authorized, 
but with 
restrictions  Law No. 7200 of 28.9.1990  
Costa Rica must hold a 35% stake in the 
company.  
Electricity (generation, 
distribution and 
marketing in the 
domestic market)  Authorized, but with 
restrictions  Law No. 8660 of 8.8.2008  
The Costa Rican Electricity Institute (ICE), a 
state-owned enterprise, will retain majority 
ownership (51% of the capital) in enterprises that 
it acquires or sets up.  
Electricity (generation, 
distribution and 
marketing in the local 
market)  Authorized  Authorized, 
but with 
restrictions  Law No. 7789 of 3 0.4.1998  
The Heredia Public Services Company (ESPH), a 
municipal enterprise, will maintain majority 
ownership (a 51% stake) in joint ventures set up 
with foreign private companies.  
Mining  Authorized  Authorized, 
but with 
restrictions  Law No. 6797 of 4.10.1982  
Foreign mining companies will not be able to 
obtain bank credit exceeding 10% of their total 
investment.  
Mining (opencast)  Not authorized  Not 
authorized  Law No. 8904 of 1.12.2010  
Oil (prospecting and 
exploitation)  Not authorized  Not 
authorized  Executive Decree No. 26693 of 1.8.2011  
Petroleum and 
by-products (import, 
refining and wholesale 
distribution)  Not authorized  Not 
authorized  Law No. 7356 of 24.8.1993  
State monopoly  
Services    
Cooperative banks  Authorized  Authorized, 
but with 
restrictions  Law No. 1644 of 26.9.1953  
Establishing a cooperative bank requires the 
participation of at least 10 Costa Rican 
cooperative organizations.  
Mutual banks  Authorized  Authorized, 
but with 
restrictions  Law No. 7107 of 4.11.1988  
The establishment of a mutual bank requires the 
participation of at least 25 Costa Rican mutual 
associations.  
Air cabotage  Authorized  Not 
authorized  Agreements and memorandum on air services/the 
provision of the service is reserved for 
Costa  Rican airlines.  
Maritime cabotage  Authorized  Not 
authorized, 
but there 
are 
exceptions  Executive Decree No. 66 of 4.11.1960  
The cabotage service is reserved for Costa Rican 
vessels, but foreign vessels may be allowed to 
provide the service when no Costa Rican vessels 
are available.  
Telecommunications 
(domestic market)  Authorized, but with 
restrictions  Law No. 8660 of 8.8.2008  
The Costa Rican Electricity Institute (ICE), which 
is a state -owned enterprise, will retain majority 
ownership (51% of the capital) in enterprises that 
it acquires or sets up.  
Telecommunications 
(local market)  Authorized  Authorized, 
but with 
restrictions  Law No. 7789 of 30.4.1998  
The Heredia Public Services Company (ESPH), a 
municipal enterprise, will maintain majority 
ownership (a 51% stake) in joint ventures set up 
with foreign private companies.  WT/TPR/S/392 • Costa Rica  
 
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  Sector/activity  Investment  Legislation and/or description  
of the restriction  Domestic  Foreign  
International maritime 
transport  Authorized  Authorized, 
but with 
restrictions  Law No. 12 of 22.10.1941  
10% of the crew of Costa Rican vessels must be of 
Costa Rican nationality.  
Domestic land freight 
transport  Authorized  Authorized, 
but with 
restrictions  Executive Decree No. 15624 of 28 .8.1984  
Only Costa Rican companies (51% of the capital 
and effective control) may provide the service.  
International land 
transport of 
passengers  Authorized  Authorized, 
but with 
restrictions  Executive Decree No. 41404 of 19.10.2018  
Only Central American companies (60% of capital) 
may provide the service.  
Source: WTO Secretariat.  
2.36.   Border areas as well as coastal land areas are State property. While investors are not allowed 
to purchase land in these areas, they may apply for concessions to use su ch land.55 Concessions are 
granted only to foreigners who reside permanently in Costa Rica and to foreign companies 
established in Costa Rica with a minority foreign capital stake. There are no restrictions on land 
purchases by foreigners throughout the res t of Costa Rican territory.56 The State may expropriate 
properties for reasons of public interest.57  
2.37.   PROCOMER and CINDE provide assistance to foreign investors. Both bodies promote 
Costa  Rica as an investment destination; they support investors before and a fter setting up 
business; they strive to attract investment to sectors with substantial development potential (life 
sciences, services, manufacturing and food industry); and advise the Government Council on 
improving the investment climate.58 In collaborati on with CINDE, the Costa Rican Tourism Institute 
(ICT) is charged specifically with advising parties interested in investing in the tourism sector.59 
2.38.   Foreign companies may set up subsidiaries (commercial companies) or operate branches and 
representative off ices in Costa Rica.60 There are four types of commercial company: general 
partnerships, limited partnerships, limited liability companies and public limited companies, the 
latter being the most prevalent.61 At present both domestic and foreign companies must  complete a 
number of formalities at various government agencies in order to set up shop ( Chart 2.4). These 
formalities vary depending on the type of enterprise or busi ness. According to CINDE, a 
manufacturing plant setting up business under the Free Zone Regime takes one year to launch 
operations, and a service provider 30 weeks. Simplifying all these procedures would boost 
competitiveness and optimize the use of public  resources, especially bearing in mind that setting -up 
time-frames are longer for enterprises establishing themselves in national territory outside of free zones.  
                                                
55 Applications for concessions to use land located in border areas  must be submitted to the Rural 
Development Institute, and the Costa Rican Tourism Institute (ICT) issues concessions for the use of land in 
maritime areas. Meanwhile, the municipalities grant concessions for coastal urban areas (Executive Decree 
No. 39688  of 22 April 2016, Law No. 6043 of 16 March 1977 and Law No. 9221 of 27 March 2014).  
56 CINDE (2017), Preguntas Frecuentes . Viewed at: http://www.ict.go.cr/es/documentos -
institucionales/atracción -de-inversiones/1048 -inversiones -en-costa -rica-preguntas -frecuentes/file.html . 
57 Article 45 of the Political Constitution and Law No. 7495 of 8 June 1995.  
58 Online information. Viewed at: https://www.procomer.com  and https://www.cinde.org . 
59 Online information. Viewed at: http://www.ict.go.cr/es/informacion -institucional/atraccion -de-
inversiones.html#i -invertir -en-costa -rica. 
60 Commercial Code (Law No. 3284) of 30 April 1964.  
61 Article 17 of the Commercial C ode. WT/TPR/S/392 • Costa Rica  
 
- 45 - 
 
  Chart 2.4 Formalities for setting up companies  
 
a All insurance companies are permitted to sell occupational risk insurance. Currently, however, the 
National Insurance Institute is the sole provider of policies of this kind.  
b The GS1 Association is a private organization that issues product barcodes.  
Source:  PowerPoint presentation " Aspectos de formalización para emprendedores y PYME " of 
29 November  2017. Viewed at: 
https://www.meic.go.cr/meic/documentos/gxtqb0nqr/FormalizaEmprendePYME291117.pdf , and 
Guía rápida para establecer una empresa formalmente,  published by the MEIC.  Viewed at: 
https://www.meic.go.cr/meic/documentos/n5cw3f2v1/Formalizar.pdf . 
2.39.   The National Strategy for the Simplification of Administrative Procedures and Regulatory 
Improvemen t was launched in 2011 with a view to substantially reducing the formalities that 
constitute the greatest obstacles to productive activity, in particular that of SMEs. A digital tool called 
"Trámites Costa Rica "62 (Administrative Procedures in Costa Rica) w as developed to that end, 
designed to bring together all the formalities, requirements and procedures of each body or agency 
of the public administration, required both for the incorporation of enterprises and businesses as 
well as for export and import op erations.63 Besides this initiative, and to facilitate the simplification, 
automation and improvement of the procedures to be completed by enterprises wishing to operate 
in Costa Rica, the Investment Single Window (VUI) was created in 2016 and is operated b y 
PROCOMER.64 The VUI will come on stream gradually and in coordination with the various 
government institutions involved in the administrative procedures for the formal establishment, 
operation and functioning of enterprises. In the initial phase of implem entation, priority will be given 
to the formalities for establishment, operation and functioning under the Free Zone Regime. Besides 
these two initiatives, other digital tools exist to facilitate formalities, such as the Customs Control 
and Information Tec hnology System (TICA) and the port community system  at customs facilities65, 
the Port Single Window (VUP), the Integrated Logistics System (SIL)66 and the Construction Project 
Administrator Platform (APC).  
                                                
62 Viewed at: http://www.tramitescr.meic.go.cr/tramites/BuscarTramites.aspx . 
63 Online information. Viewed at: https://www.meic.go.cr/meic/comunicado/845/sistema -digital -
promueve -transparencia -y-rendicion -de-cuentas -para-la-simplificacion -de-tramites.php . 
64 Executive Decree No. 40103 of 20 December 2016.  
65 Online information from the Ministry of Finance. Viewed at: 
https://www.hacienda.go.c r/tica/web/hCnConsVariasE.aspx . 
66 Online information from PROCOMER. Viewed at: https://www.procomer.com/es/noticias /sistema -
integrado -de-logistica -de-costa-rica-servira -como -referencia -para-latinoamerica . 
Incorporating a legal firm
(Property Register )Trademark registration
(Industrial Property 
Registry)Non-mandatory 
formalities
Mandatory formalities
Land use
(Municipality)
Registration as employer 
(Costa Rican Social Security Fund)
Insurance policy against 
occupational risks
(National Insurance Institutea)Municipal business 
permit
(Municipality)Sanitary operating 
permit
(Ministry of Health)
Registration as 
taxpayer 
(Ministry of Finance)Environmental viability
(National Environmental Technical Secretariat, SETENA )
Connection to the sewerage system
(Costa Rican Institute of Aqueducts and Sewers)
Waste disposal
(Ministry of Health)
Certification of compliance with the Central American Technical 
regulations on Good Manufacturing Practices (GMP) 
(Ministry of Health)
Professional management
(for example: Ministry of Agriculture and Livestock or Ministry of the 
Environment and Energy) Further requirements depending on the 
activity and the size of the enterprise
Voluntary registration
Barcode
(GS1 Associationb)Mandatory registration
Sanitary registration: food, 
medicinal and cosmetic products 
(Ministry of Health)WT/TPR/S/392 • Costa Rica  
 
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  2.40.   Incentives are available for investments effected un der the Free Zone Regime and in various 
sectors of the economy.  
2.41.   To facilitate and promote foreign investment, Costa Rica has signed agreements to protect 
investment and avoid double taxation. Moreover, most of the regional agreements signed include 
investm ent provisions (Table 2.4).  
2.42.   Costa Rica is a member of the International Centre for Settlement of Investment Disputes 
(ICSID) and can therefore avail itself of that body's services in the event of a dispute between a 
foreign investor and the State. Costa R ica has also ratified the Convention on the Recognition and 
Enforcement of Foreign Arbitral Awards (New York Convention) and the Inter -American Convention 
on International Commercial Arbitration (the Panama Convention). In addition, the State recognizes 
the insurance against political risks offered by the Multilateral Investment Guarantee Agency (MIGA).  
Table 2.4 International investment agreements and agreements on the avoidance of 
double taxation, 2018  
Intern ational investment agreements  Agreements on the avoidance 
of double taxation  Reciprocal investment promotion 
and protection agreements 
(APPRI)  Regional trade agreements 
with investment provisions  
Germany  In force (1998)  EFTA  In force (2014 
and 2017)  Germany  In force (2017)  
Argentina  In force (2001)  CAFTA -DR In force (2009)  Spain  In force (2011)  
Canada  In force (1999)  CARICOM  In force (2005)  United Arab 
Emirates  Signed (2017)  
Chile In force (1998)  Canada  In force (2002)  Mexico  In force (2019)  
China  In force (2016)  Central 
America  Signed (2007)    
Korea, Rep. of  In force (2002)  Chile  In force (2002)    
United Arab 
Emirates  Signed (2017)  Colombia  In force (2016)    
Spain  In force (1999)  Korea, Rep. of  Signed (2018)    
France  In force (1997)  Mexico  In force (2013)    
Netherlands  In force (2001)  Panama  In force (2009)    
Paraguay  In force (2001)  Peru  In force (2013)    
Qatar  In force (2012)  Dominican 
Republic  In force (2002)    
Czech Republic  In force (2001)  Singapore  In force (2013)    
Switzerland  In force (2002)  EU  In force (2013)    
Chinese Taipei  In force (2004)    
Venezuela  In force (2001)    
Source: WTO Secretariat and information provided by the authorities . 
 WT/TPR/S/392 • Costa Rica  
 
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  3  TRADE POLICIES AND PRACTIC ES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Customs procedures and requirements and customs valuation  
3.1.1.1   Customs procedures  
3.1.  Customs procedures in Costa Rica are governed mainly by the General Customs Law and the 
Central American Unif orm Customs Code III (CAUCA III), along with the respective regulations.1 The 
Central American Uniform Customs Code IV (CAUCA IV) is not in force in Costa Rica, because its 
regulations have not been approved by the Legislative Assembly.2 The National Customs Service 
(SNA), which reports to the Ministry of Finance, consists of t he General Directorate of Customs 
(DGA), the customs posts, their offices and other customs bodies.  
3.2.  Importers are required to register with the DGA. In general, the services of a customs broker 
remain mandatory for customs operations3; however, this may be  optional for imports under certain 
customs arrangements (free zones, export, in -bond warehouse, in -flight supplies and outward 
processing), as well as for specific customs modalities.4 Only Costa Rican or other Central American 
natural persons can act as customs brokers in Costa Rica.5 In addition, customs carriers authorized 
by the DGA perform customs procedures and formalities related to presentation to the SNA of the 
vehicle or transport unit and its cargo.6 Only carriers duly authorized by the DGA can move cargoes 
that are in internal customs transit.7 
3.3.  In addition to registration with the DGA, the importers of certain products must also register 
with other specific agencies. Examples include importers of animals and animal products, which must 
also regi ster with the National Animal Health Service (SENASA)8; and those importing vegetable and 
plant products, which must be registered with the State Phytosanitary Service (SFE).9 Importers of 
food, cosmetics, biomedical equipment and materials, medicines, pes ticides, natural products, 
hygiene products, hazardous chemicals and tattoo inks must register the products in question in 
order to import them. This is done online through the Regístrelo.go.cr portal.10 
3.4.  The customs declaration must indicate the customs reg ime applicable to the goods: definitive; 
temporary; duty -free; inward processing and drawback (Table A3.1). Costa Rica has not 
implemented new customs regimes since 2013.  
3.5.  The single customs declaration (DUA) for goods subject to the definitive import regim e must 
be accompanied by the following documents: the commercial invoice, the transport document, the 
certificate of origin and other necessary documents depending on the nature of the product, 
e.g. relating to non -tariff requirements. In the case of impor ts from the Central American Common 
Market (CACM), the Central American Single Customs Form (FAUCA) serves as both commercial 
invoice and certificate of origin. The declarant or customs broker may undertake a preliminary 
examination of the goods to be clea red, in order to recognize them for correct preparation of the 
DUA ( Chart 3.1). 
                                                
1 Law No. 7557 of 20 October 1995.  
2 Article 134 of Law No. 8881 of 6 December 2010.  
3 Article 33 of Law No. 7557 of 20 October 1995.  
4 Luggage, emergency supplies, s amples of no commercial value, urgent or express courier  packages, 
postal packages, duty -free shops, non -commercial imports, parcels for family members, industrial and 
commercial home deliveries, and imports carried out by the State and its institutions (A rticle 37 of Law 
No. 7557 of 20 October 1995).  
5 Article 18 of the Regulations of the Central American Uniform Customs Code (RECAUCA III).  
6 Article 40 of Law No. 7557 of 20 October 1995.  
7 Article 138 of Law No. 7557 of 20 October 1995.  
8 Online informati on. Viewed at: https://www.senasa.go.cr/informacion/centro -de-
informacion/informacion/sgc/dca/dca -pg-01-registro -de-importador es. 
9 Online information . Viewed at: 
https://www.sfe.go.cr/SitePages/Tramites/tramites_importacion_vegetales.aspx . 
10 Information provided by the authorities and online information viewed at: 
https://www.ministeriodesalud.go.cr/index.php/tramites -ms/registro -de-productos -de-interes -sanitario -ms. WT/TPR/S/392 • Costa Rica  
 
- 48 - 
 
  3.6.  The importer or customs broker must submit the DUA via electronic data transmission through 
the Information Technology for Customs Control system (TICA). The DUA may be presented before 
the goods arrive at the destination port, and even before shipment.  
Chart 3.1 Import Procedure s, 2019  
 
a Ministry of Agriculture and Livestock (MAG), Ministry of Health, Ministry of Public Security, Ministry 
of the Environment and Energy (MINAE), National Seeds Office (ONS), National Chemical Weapons 
Prohibition Authority (ANAQ) and Costa Rican  Fisheries and Aquaculture Institute (INCOPESCA).  
Source:  WTO Secretariat.  
3.7.  Single customs declarations are subjected to a selective and random process to decide whether 
to perform an immediate verification of what has been declared. This process may includ e ordering 
a physical examination of the goods, or a review of the supporting documents and a laboratory 
analysis of the goods, depending on the channel through which they pass (Chart 3.1). The customs 
broker may witness the recognition of the goods in per son. In 2018, 90.6% of all imports went 
through the green channel, and only 8.6% passed through the red channel. Immediate verification 
does not prevent the customs authority from performing a subsequent inspection. When the 
verification process encounters  discrepancies with respect to the DUA, the customs authority will 
immediately notify the customs broker to make the corresponding corrections and adjustments. 
Once these procedures have been completed, the goods are authorized for release. Customs duties 
must be paid when the dutiable event occurs. Otherwise the importer is charged an interest rate of 
13.73%, which is updated periodically.11 
3.8.  In addition to immediate customs control and depending on the risk profiles of the goods in 
question, there may be a post -clearance control or, depending on the customs regime, permanent 
control. Post -clearance control is exercised, inter alia , in respect of customs operations, customs 
declarations and the assessment and payment of duties, within a period of four years. Permanent 
control can be exercised at any time on goods that are subject to non -definitive customs regimes 
after release, to monitor and ve rify compliance with their conditions of permanency, use and 
destination.  
3.9.  Through the Customs Facilitation Programme for Reliable Trade in Costa Rica (PROFAC), since 
2011 the DGA has been gradually implementing Costa Rica 's Authorized Economic Operator (AE O) 
certification programme. This voluntary programme encourages firms and agents engaged in 
international merchandise trade to build optimal levels of security into their commercial operations. 
The implementation of this programme in stages made it possibl e to identify aspects that needed 
modification. Accordingly, in 2015 a new regulation was issued to allow for a better development of 
the AEO scheme in the country.12 Currently (May 2019) there are 35 firms with AEO certification in 
Costa Rica.13 
                                                
11 Resolution DGH -017-2018 and DGA -DGT-008-2018 of 16 March 2018.  
12 Decree No. 38998 -H of 13 May 2015 repealing Decree No. 36461 -H of 17 January 2011.  
13 These include import -export firms (17), importers (12), exporters (one), export cargo terminals 
(three) and maritime port operators (two). Online information . Viewed at: 
https://www.hacienda.go.cr/contenido/409 -empresas -certificadas -como -oea. 
Register as an 
importer with the 
DGA
(Ministry of Finance)If appropriate, register as 
an importer and register 
the product with the 
competent authorityaContract a 
customs brokerThe customs broker prepares and 
presents the DUAfor the import, 
together with the supporting documents 
and documents on non -tariff 
requirements, if any
The corresponding 
taxes are paidRed: Physical 
and 
documentary 
review
Yellow: 
Documentary 
review 
Green: No 
review The customs broker 
receives a message from 
the TICA system, 
authorizing withdrawal of 
the merchandise at the 
customs postThe importer or customs 
broker presents the DUAfor 
the import at the customs 
post in person, pays the 
storage fee and withdraws 
the cargoStart
FinishWT/TPR/S/392 • Costa Rica  
 
- 49 - 
 
  3.10.   Natural or legal persons wishing to obtain AEO certification must satisfy requirements 
including the following: be domiciled in national customs territory and have exported and/or 
imported or offered services directly related to foreign trade, for a period of at leas t three years prior 
to the filing of the application. Certification as an AEO is issued for a period of four years, which may 
then be renewed. During the certification period, AEOs may be inspected, with prior notice. The AEO 
certificate may be suspended i f the regulatory requirements are not being fulfilled, and revoked in 
the event of serious misconduct.14 
3.11.   In the period 2013 -19, the Foreign Trade Single Window (VUCE)15, administered by the 
Foreign Trade Promotion Agency (PROCOMER), was upgraded to gradually  include new functions; 
and a new version (VUCE 2.0) was introduced in 2017. In February 2019, the VUCE, which 
encompasses 16 institutions, could be used to process the DUA, import/export permits (technical 
notes), certificates of origin, and certificates of free sale for food products, and also to register as 
an exporter (if applicable). In addition, the new version offers a 24/7 service to operators and makes 
it possible to track procedures, use digital signatures and make payments electronically. It is a lso 
possible to apply for the permits needed to import foodstuffs, chemicals and pharmaceuticals, which 
was not previously possible.16 VUCE 2.0 will continue to be developed to include additional 
procedures.  
3.12.   According to the National Council for Trade Facil itation (CONAFAC), created in 2017 to 
implement the Trade Facilitation Agreement (TFA), in recent years Costa Rica has undertaken 
several trade facilitation initiatives. CONAFAC is responsible for executing the Border Integration 
Programme (PIF); and it pa rticipates in the implementation of the Central American Digital Foreign 
Trade Platform (PDCC).17 The PIF aims to modernize infrastructure, equipment and information 
technology systems at interior border crossings18 to make customs controls more efficient, t hereby 
reducing waiting times and improving competitiveness.19 The PDCC will promote the use of IT best 
practices and simplify foreign trade procedures. This platform will enable Central American countries 
to exchange information on their foreign trade proc edures.20 
3.13.   The National Customs Tribunal, a body with decision -making autonomy attached to the 
Ministry of Finance, is the final administrative instance for hearing and ruling on appeals lodged 
against SNA decisions. The customs broker or consignee has 15 wo rking days (counted from the 
SNA decision in question) to lodge an appeal with the Tribunal. The DGA must issue its ruling within 
two months from the date on which the appeal was lodged.  
3.1.1.2   Customs valuation  
3.14.   The SNA's National Customs Valuation and Inspection  Authority (ONVVA) remains responsible 
for matters related to merchandise customs valuation. The regulations on customs valuation include 
the WTO Customs Valuation Agreement, along with the provisions contained in the General Customs 
Law and its regulation s.21 
3.15.   During the review period, the main legislative change was the repeal of the Regulations on 
the Implementation of Customs Reference Values in 2013, since when reference prices have not 
                                                
14 Chapter IV of Decree No. 38998 -H of 13 May 2015.  
15 Online information . Viewed at:  https://vuce20.procomer.go.cr/SIVUCEv2/Views/Login/loginOn.aspx . 
16 Online information . Viewed at:  http://www.sela.org/media/2424397/ventanilla -unica -de-comercio -
exterior -vuce-20-costa-rica.pdf  and http://www.com ex.go.cr/sala -de-
prensa/comunicados/2017/diciembre/sistema -vuce-20-implementar%C3%A1 -permisos -de-
importaci%C3%B3n -que-representan -un-72-de-los-tr%C3%A1mites . 
17 Online information . Viewed at:  https://presidencia.go.cr/wp -
content/uploads/2017/09/Presentacio%CC%CC%81n -Consejo -Nacional -de-Facilitacion -del-Comercio -
CONAFAC.pdf . 
18 The border crossings in question are Peñas Blancas and Las Tablillas with Nicaragua, and Paso Canoas 
and Sixaola with Panama. The PIF could be extended to the border crossing of Sabalito with Panama.  
19 Online information . Viewed at : 
https://www.wto.org/english/tratop_e/tradfa_e/1_jhon_fonseca_costa_rica.pdf  and 
http://www. comex.go.cr/media/5396/008 -brochure -pif.pdf . 
20 Online information . Viewed at: http://www.comex.go.cr/sala -de-
prensa/comunicados/20 17/enero/centroam%C3%A9rica -apuesta -a-plataforma -digital  and 
http://www.sela.org/media/2416279/2 -intercambio -electronico -de-informacion -sieca.pdf . 
21 Articles 243 -265 bis of Law No. 7557 of 20 October 1995 and Articles 537 -541 of Executive Decree 
No. 25270 -H of 28 June 1996.  WT/TPR/S/392 • Costa Rica  
 
- 50 - 
 
  been used in Costa Rica.22 In general, since the last review there ha ve been no other substantial 
changes in the procedures for determining the value of imported goods and, under the regulations, 
the ONVVA strictly applies the valuation methods specified in the WTO Agreement on Customs 
Valuation. Costa Rica uses databases o f merchandise values, supplied to customs by the ONVVA, for 
risk assessment purposes. These databases are compiled using the import values of the declared 
goods.  
3.1.2   Rules of origin  
3.16.   Costa Rica does not use non -preferential rules of origin.  
3.17.   Costa Rica applies p referential rules of origin as a member of the Central American Common 
Market (CACM), and also under its other free trade agreements currently in force. The preferential 
rules of origin contained in the agreements that entered into force in 2013 -19 are bro adly the same 
as in those signed previously by Costa Rica. The criteria conferring origin may be general or specific. 
Most trade agreements allow bilateral and regional cumulation ( Table 3.1).  
Table 3.1 Prefer ential rules of origin, 2013 -18 
 Change of 
tariff 
classification  Value of 
non-originating 
materials or 
regional content 
(RCV)  Cumulation 
of origin  De minimis  Sets or 
assortments 
of goods  
EFTA Yes 20% to 70% of the 
ex-works price  Bilateral and 
regional  10% of the ex -works price  15% of the 
ex-works price  
Colombia  Yes Percentage 
calculated by 
formula  Bilateral and 
diagonal  10% of the f.o.b. value or total 
weight of fibres and yarns for 
textiles and clothing  15% of f.o.b. 
value  
Mexico  Yes Percentage 
calculated by 
formula  Bilateral and 
regional  10% of the transaction value or 
total weight of fibres and yarns 
for textiles and clothing  10% of 
transaction 
value  
Peru Yes Percentage 
calculated by 
formula  Bilateral and 
regional  10% of the f.o.b. value or 
total weight of fibres and 
yarns for textiles and 
clothing  15% of f.o.b. 
value  
Singapore  Yes 35% of the 
f.o.b.  value  Bilateral  10% of the f.o.b. value  n.a. 
EU Yes 25% of the 
ex-works price  Bilateral and 
regional  10% of the ex-works price  15% of the 
ex-works price  
n.a. Not applicable.  
Source:  WTO Secretariat.  
3.1.3   Tariffs  
3.1.3.1   Tariff structure  
3.18.   Costa Rica's tariff is based on the Central American Customs System (SAC). In 2019, it 
contained 10,434 tariff lines at the 12 -digit level of t he Harmonized System (HS) of 2017. Costa  Rica 
only applies ad valorem  tariffs. The most -favoured nation (MFN) tariff consists of the customs duty 
(DAI) and an additional 1% duty applicable to virtually all imports.23 
3.19.   The arithmetic mean of Costa Rica 's appl ied MFN tariffs did not vary significantly between 
2013 and 2019, and remains around 7% (Table 3.2). The average tariff on agricultural products 
(WTO definition), which edged up from 14% in 2013 to 14.1% in 2019, remains substantially higher 
than the avera ge applied tariff on non -agricultural products (5.6%). The categories with the highest 
                                                
22 Decree No. 36582 -H was repealed by Article 1 of Executive Decree No. 37955 of 2 September 2013 
(WTO document G/VAL/N/1/CRI/3 of 1 November 2013).  
23 Law No. 6879 of 13 January 1984.  WT/TPR/S/392 • Costa Rica  
 
- 51 - 
 
  average tariff are dairy products at 53.8%, followed by animals and animal products (28.8%), sugar 
and confectionery (17.4%) and clothing (14.8%) (Table A3.2).  
Table 3.2 Structure of MFN tariffs, 2013 and 2019  
 2013  
(HS 2012)  2019 
(HS 2017)  
Total number of tariff lines  10,065  10,434  
Ad valorem rates (> 0%)  9,779  10,162  
Duty-free lines  286 272 
Arithmetic mean (%)  6.9 7.0 
Agricultural products (WTO definition)  14.0 14.1 
Non-agricultural products (WTO definition)  5.5 5.6 
Zero-tariff lines (% of all tariff lines)  2.8 2.6 
Average of lines exceeding zero (%)  7.1 7.2 
Tariff quotas (% of all tariff lines)  0.5 0.5 
Non-ad valorem tariffs (% of all tariff lines)  0.0 0.0 
Domestic tariff peaks (% of tariff lines)a 1.5 1.4 
International tariff peaks (% of all tariff lines)b 1.5 1.5 
Overall standard deviation of applied rates  9.6 9.6 
"Nuisance" rates applied (% of all tariff lines)c 47.7 46.7 
Bound tariff lines (% of all tariff lines)  100.0  100.0  
a Domestic tariff peaks are defined as rates exceeding three times the overall simple average of applied 
rates.  
b International tariff peaks are defined as rates above 15%.  
c "Nuisance" rates exceed zero but are no higher than 2%.  
Note:  The calculations are based on national tariff lines at the HS 2017 12 -digit level. For tariff lines that are 
subject to tariff quotas, only the out -of-quota rate is used in the calc ulations.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.20.   Costa Rica's MFN tariff structure consists of 14 rates ranging from 0% to 151%. In 2019, the 
most frequent tariff rates were no higher than 1% ("nuisance" rates); 75% of all tariff lines had 
rates of no more than 10%; and, as in 2013, only 1.5% of all lines had rates above 20%.  
3.21.   The distribution of tariffs by rate did not cha nge substantially during the period under review. 
In 2019, 49.3% of all tariff lines were subject to rates ranging from 0% to 5% (compared to 50.5% 
of them in 2013); and 49.2% had rates higher than 5% but less than 20% (48% in 2013) ( Chart 
3.2). The 156 HS 12 -digit tariff lines that are subject to MFN tariffs of over 20% include the following: 
meat and edible offal of poultry (HS 0207) (rates of 36%, 41% and 151%); sausa ges and similar 
products (HS 1601) (36% and 151%); other prepared or preserved meat (HS  1602) (41%  and 
151%); milk and products derived from milk (HS 0401 – HS 0406) (36%, 51% and 66%) and ice 
cream (HS 2105) (66%); cheese and curd (HS 0406) (51%); onions and shallots (HS  070310) 
(46%); and rice (HS 1006) (36%).  WT/TPR/S/392 • Costa Rica  
 
- 52 - 
 
  Chart 3.2 Frequency distribution of MFN tariff rates, 2019  
 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.3.2   Tariff bindings  
3.22.   In the Uruguay Round, Costa Rica bound all its tariffs at rates ranging from 0% to 233.07%. 
Most tariff lines (8,094 or 77.6% of the total) were bound at 45%; the other most frequent rate is 
50%, but this only applies to 353 lines. In the cas e of agricultural products (WTO definition), the 
bound tariffs vary between 1% and 233.07%, and for non -agricultural products they range from 
0% to 100%. The agricultural products that were bound at the top rate of 233.07% were: meat and 
edible offal (20 H S 0207 lines); sausages and similar products (two lines within HS 1601); and 
chicken preparations and preserves (six lines in HS 1602). In the case of non -agricultural products, 
those bound at the 100% rate were motor vehicles (HS 8703 (268 lines), HS 8704  (55 lines), 
HS 8706 (three lines) and HS 8707 (18 lines)). If the MFN applied tariff (2019) is compared with the 
bound tariff, considering only those lines that are strictly comparable owing to the change in 
nomenclature, Costa Rica's MFN applied tariff e xceeds the bound tariff in three cases (Table 3.3).  
Table 3.3 Tariff lines for which the applied MFN tariff exceeds the bound tariff  
HS Code  Item  MFN Tariff 
(incl. 1%  
Law No.  6946) 
(2019)  Bound 
tariffa 
040520000090  Dairy spreads  66 45 
200961000000  Grape juice (including grape must) of a Brix value not 
exceeding 30:    
200961000000ex  Concentrated grape juice, whether or not frozen  15 5 
848620910000  Resistance heated furnaces for temperatures up to 900ºC, 
except laboratory furnaces  10 0 
a The calculations of the bound tariff are based on the HS 07 certified nomenclature.  
Source:  WTO Secretariat, on the basis of WTO document WT/Let/1053 of 6 August 2015.  
3.1.3.3   Tariff quotas  
3.23.   Costa Rica bound MFN tariff quot as for some 172 products in its Schedule LXXXV (based on 
the 2019 tariff).24 However, most of these quotas (118 tariff lines) were not activated during the 
period under review, as the applied MFN tariff offered better conditions of access than those set out  
                                                
24 Online information . Viewed at:  
https://www.wto.org/english/tratop_e/schedules_e/goods_schedules_t able_e.htm#fnt -a. 
(2.6%)(46.7%)
(0.1%)(10.3%)(15.3%)(23.5%)
(1.5%)
0%20%40%60%80%100%
01,0002,0003,0004,0005,0006,000
0% 1% 5% 6% 10% 15% >20%No. of lines
Cumulative %
No. of lines (% of total)WT/TPR/S/392 • Costa Rica  
 
- 53 - 
 
  in the commitments.25 In 2013 -19, Costa Rica applied tariff quotas to meat and edible offal of poultry 
(HS 0207); dairy products (HS 04), including ice cream (HS 2105); sausages and similar products 
(HS 1601) and other prepared and preserved meat (HS 1602) . These products are also those subject 
to the highest tariffs ( Table A3.3) . Under its trade agreements, Costa Rica negotiated preferential 
quotas with Canada, China, the Dominican Republic, Panama, Peru and the EU, as well as under the 
Free Trade Agreemen t between Central America, the Dominican Republic and the United  States 
(CAFTA -DR) (Table A3.3  and Section 4).  
3.1.3.4   Preferential tariffs  
3.24.   Costa Rica grants preferential treatment to imports originating in the countries with which it 
has preferential trade agreem ents (Table 3.4). Most imports originating in the CACM enter duty -free, 
except for sugar and coffee. Costa Rica also extends preferential treatment to imports from countries 
with which it has signed plurilateral and bilateral agreements.  
3.25.   The average preferential tariff in the agreements negotiated by Costa Rica is in all cases well 
below the average MFN tariff. Preferential rates range from 0.3% to 3.9% and are always lower for 
non-agricultural products — between 0% and 2.1%. The tariff pr eferences granted under several of 
the agreements ( CAFTA -DR, Canada, Chile, Dominican Republic, Mexico and Panama) account for 
over 95% of the tariff universe (Table 3.4).  
Table 3.4 Summary of Costa Rica 's pre ferential tariffs, 2019  
 
Total  Agricultural products 
(WTO definition)  Non-agricultural 
products (WTO 
definition)  
Average 
(%) Zero-tariff 
lines (%)  Average 
(%) Zero-tariff 
lines (%)  Average 
(%) Zero-tariff 
lines (%)  
MFN 7.0 2.6 14.1 0.0 5.6 3.1 
CACMa 0.0 99.8 0.3 98.8 0.0 100.0  
CARICOM        
Barbados  1.2 92.4 4.8 77.8 0.5 95.2 
Belize  1.1 92.7 4.2 80.5 0.5 95.1 
Guyana  1.2 92.4 4.5 78.6 0.5 95.1 
Jamaica  1.7 89.0 6.6 70.0 0.8 92.7 
Trinidad and Tobago  1.2 92.3 4.5 78.4 0.5 95.0 
CAFTA -DR       
United States  0.3 95.2 1.8 70.8 0.0 100.0  
Dominican Republic  0.5 98.2 2.8 89.2 0.0 100.0  
EFTA        
Iceland  2.8 65.5 10.0 38.4 1.4 70.7 
Norway  2.8 65.5 10.0 38.4 1.4 70.8 
Switzerland and 
Liechtenstein  2.7 66.0 9.6 41.2 1.4 70.8 
EU-CAAAb       
EU 2.8 56.4 9.4 34.5 1.5 60.6 
Andorra  3.9 51.2 13.9 5.4 2.0 60.1 
Dominican Republic  0.5 97.9 2.7 89.4 0.0 99.5 
Bilateral FTAs        
Canada  0.8 98.1 4.9 88.6 0.0 100.0  
Chile 1.1 95.6 5.8 80.5 0.2 98.6 
China  2.2 65.4 6.7 54.2 1.3 67.6 
Colombia  3.0 66.3 8.0 53.9 2.1 68.7 
Mexico  0.7 97.8 4.4 87.4 0.0 99.9 
Panamac 0.3 98.4 2.1 90.1 0.0 100.0  
Peru 1.6 75.5 5.0 71.4 1.0 76.3 
Singapore  0.5 88.0 0.8 86.1 0.4 88.4 
                                                
25 The quotas that were not activated relate to: pork; whole poultry; evaporated milk; condensed milk; 
whey; dehydrated cheddar cheese; other grated cheeses; blue cheese; other cheeses; eggs; common beans; 
yellow maize; white maize; rice; lard; preparations of pork; sugar; and tobacco and jute fabrics (information 
provided by the authorities).  WT/TPR/S/392 • Costa Rica  
 
- 54 - 
 
   
Total  Agricultural products 
(WTO definition)  Non-agricultural 
products (WTO 
definition)  
Average 
(%) Zero-tariff 
lines (%)  Average 
(%) Zero-tariff 
lines (%)  Average 
(%) Zero-tariff 
lines (%)  
Memorandum item:        
Dominican Republicd 0.4 98.4 2.6 89.9 0.0 100.0  
a  Central American Common Market (El Salvador, Guatemala, Honduras and Nicaragua).  
b  Association Agreement between Central American countries and the European Union.  
c  Bilateral protocol between Costa Rica and Panama to the Free Trade Agreement between 
Central  America and Panama.  
d  Calculations made using the best preference that could be given to the Dominican Republic.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.3.5   Tariff concessions  
3.26.   Costa Rica continues to gr ant tariff concessions under various import regimes: temporary 
admission; duty -free; drawback; inward processing and free zones (Table A3.1) The importation of 
goods necessary for artisanal activities, small -scale enterprises and export industries also ben efit 
from tariff concessions.26 In addition,  inputs, raw materials and basic finished goods for agricultural 
and industrial activities, or for final consumption, are subject to tariffs ranging from 1% to 5%, 
provided  that inputs, raw materials and goods sim ilar in quality, quantity and price cannot be 
produced in the Central American region. However, the authorities indicated that these tariff 
concessions are not in use. Holders of exploration permits and exploitation concessions for mining 
activities enjoy exemption from all taxes and duties on the materials, rural vehicles and machinery, 
and other items that are imported for use throughout the mining production chain. This exemption 
is granted provided that the goods are not produced in sufficient quantity and quality in Costa Rica. 
If they are produced in the country, their price may not exceed the c.i.f. value of the imported 
products by more than 10%. Exemptions must be approved by the Ministry of Finance.27 
3.1.4   Other charges affecting imports  
3.27.   Costa Rica appli es a number of taxes and charges that generally affect both domestic and 
imported products. These are: the general sales tax (IGV), the selective consumption tax (ISC), the 
single tax on fuels, the tax on tobacco products, several specific taxes and others  created to finance 
specific institutions such as the Rural Development Institute (INDER) and the Institute for Municipal 
Promotion and Support (IFAM) (Table A3.5) . The taxes are either ad valorem  or specific; and the 
rates are adjusted periodically accord ing to the variation in the consumer price index.  
3.28.   The only tax levied on imported products alone is the tax used to finance IFAM, which is only 
applicable to imported beers.28 
3.29.   The general sales tax is levied on all goods and services at a general rate of 13 %, with some 
exceptions. A reduced rate of 5% applies to residential electricity consumption above 250 kWh per 
month, and wood is subject to an IGV rate that is three percentage points lower than the general 
rate.29 Products in the basic shopping basket, sc hool uniforms, some agricultural inputs, fishery 
products, pharmaceutical industry products, medicines and medical equipment are all exempt from 
ISC. With a view to promoting the use of electric vehicles, since 2018, imports and local purchases 
of such veh icles have been totally or partially exempted from payment of the IGV, ISC and the 1% 
duty on the customs value for a period of five years . 
3.30.   The Law to Strengthen Public Finances (Law No. 9635) of 3 December 2018 introduced value 
added tax (VAT) to replace IGV as from 1 July 2019. VAT is charged at a general rate of 13% (the 
same as the IGV rate) and three reduced rates of 4%, 2% and 1%. In addition, some goods and 
services were exempted. Products in the basic shopping basket, hitherto exempt from IGV, will be 
                                                
26 Article 21 of Law No. 6986 of 3 May 1985.  
27 Article 59 of Law No. 6797 of 4 October 1982.  
28 Law No. 10 of 7 October 1936.  
29 Article 42 of Law  No. 7575 of 13 February 1996.  WT/TPR/S/392 • Costa Rica  
 
- 55 - 
 
  liable for VAT at a rate of 1%. Other services affected by the tax change will be the monthly 
consumption of electricity and water (Box 3.1).  
Box 3.1 Summary of VAT rates, 2019  
General rate: 13%  
Reduced rate s 
4% • Purchase of airline or other travel tickets, with origin or destination in national territorya 
• Private health  services  
2% • Medicines and raw materials, inputs, machinery, equipment and reagents necessary for their production  
• Private education services  
• Personal insurance premiums  
• Goods and services purchased by State higher education institutions, their foundations, other State 
institutions, the Higher Education Council (CONARE) and the National Higher Education Accreditation 
System (S INAES)  
1% • Sale, throughout the marketing and import chain, of products included in the basic shopping basket, and 
of the raw materials, inputs, machinery, equipment and services needed to produce them  
• Sorghum  
• Soybeans, oil palm fruit and kernels, corn and wheat, as well as their derivatives to produce animal feed.  
• Veterinary products and agricultural and fishery inputs (as defined by MAG and the Ministry of Finance)  
VAT exemptions (35 categories)  
For example: exports; monthly consumption of electricity  equal to or less than 280 kW/h; own consumption of electricity; 
and monthly consumption of water up to 30 m3. 
Not subject to VAT (12 categories)  
For example: the sale of 13 types of fuels and the purchase/import of raw materials and inputs used for refining and 
manufacturing.  
Differences between IGV and VAT:  
Products 
included in the 
basic shopping 
basket  Exempt from IGV  Subject to the reduced rate (1%) of VAT  
Products that 
are essential 
for education  Exempt from IGV  Subject to the reduced rate (1%) of VAT  
Monthly 
electricity 
consumption  Consumption < 250 kWh was exempt from IGV; 
consumption > 250 kWh was subject to the 
reduced rate (5%) of IGV.  Monthly consump tion ≤ 280 kWh is exempt; monthly 
consumption > 280 kWh is subject to the general rate 
(13%) of VAT, payable on total consumption  
Monthly 
water 
consumption  Subject to IGV  Consumption ≤ 30 m3 is exempt. Above this amount, 
VAT is payable on total consumptio n 
Wood  Subject to IGV (10%)  Subject to VAT (13%)  
a For international transport, VAT will be charged on 10% of the ticket price.  
Source:  WTO Secretariat.  
3.31.   Costa Rica applies other charges that affect imports; these include the USD 3 fee charged by 
PROCOMER on each DUA (whether for an import or for an export) to finance its operations30, as well 
as the CRC  1 rate charged in Puerto Caldera per tonne of cargo moved, to finance a social welfare 
association.31 There are other charges for handling cargo in ports and for quarantine services.32 
3.1.5   Import licensing, restrictions and prohibitions  
3.32.   Costa Rica continues to ban imports of certain products, for reasons of safety and to protect 
the environment, health and species (Table A3.6). For the same reasons, some g oods require a 
permit or authorization (discretionary licence) to be imported (Table A3.6). These goods are subject 
to the same type of requirement in the case of export, including sealing (authorization by signature 
                                                
30 Executive Decree No. 25612 of 8 November 1996. Article 9 of Law No. 7638 of 30 October 1996 sets 
the maximum fee at USD 3.  
31 Law No. 6779 of 23 March 1983.  
32 Online information . Viewed at:  
https://www.hacienda.go.cr/docs/573e20f01ddfe_Listado%20de%20Cargas%20diferentes%20a%20Impuesto
s%20cobrados%20en%20TICA.pdf . WT/TPR/S/392 • Costa Rica  
 
- 56 - 
 
  and seal), except for precursors and ch emical substances and used clothing and footwear. The import 
(and export) of certain fish and marine products is prohibited unless it meets the conditions required 
by CITES, SENASA and INCOPESCA, as applicable.  
3.33.   Costa Rica also uses a discretionary licensin g system to administer tariff quotas (Section 4).  
3.1.6   Anti-dumping, countervailing and safeguard measures  
3.34.   The entity responsible for administering trade defence mechanisms (anti -dumping, 
countervailing and safeguard measures) is the Ministry of the Economy, Industry and Trade (MEIC), 
acting through the Trade Protection Directorate (DDC), which is the investigating authority created 
in 2013.33 This is one of the most important changes to have occurred in trade protection since the 
previous review in 20 13. 
3.35.   The legal framework governing trade defence mechanisms includes the provisions of the 
relevant WTO Agreements and of the GATT 1994 at the multilateral level; the Regulations on Unfair 
Trade Practices and on Safeguard Measures at the Central American le vel; and the Regulations on 
the Methodology for Calculating the Amount of Subsidies34, and the Rules of Procedure for the 
Application of Measures to Combat the Circumvention of Anti -Dumping, Countervailing and 
Safeguard Duties at the national level.35 The ma in change in the regulatory framework since 2013 
was the issuance of these Rules in 2017, which specified the procedure for extending a trade defence 
measure to similar products, or for enforcing it.  
3.36.   In 2017, a draft Trade Defence Law was also submitted to  the Legislative Assembly, which 
aims to establish a national legal framework to regulate implementation of the trade defence 
instruments, in accordance with the provisions of the WTO Agreements. The draft law establishes a 
single, comprehensive regulatory  framework for their application, which the authorities say is 
intended to close a gap in Costa Rica's legal system.  
3.1.6.1   Anti-dumping and countervailing measures  
3.37.   The procedure for conducting an investigation with a view to applying an anti -dumping or 
counterva iling measure has not changed substantially since 2013. The DDC receives and processes 
requests to open investigations and to conduct sunset reviews, and analyses them to decide whether 
or not to launch an investigation. Requests to launch an investigation  may be made by, or on behalf 
of, a domestic industry.36 The DDC may also initiate an ex officio  investigation when the domestic 
industry is fragmented or unorganized, or when it is in the public interest to do so. To this end, the 
DDC monitors imports of priority products, according to government criteria, to warn of possible 
market distortions, the reby enabling MEIC to react quickly to promote competition in the market 
(Chart 3.3). 
                                                
33 Executive Decree No. 37 457 of 2 November 2012.  
34 Executive Decree No. 35559 of 27 October 2009.  
35 Executive Decree No. 40559 -MEIC of 15 May 2017.  
36 The applicant may desist from the investigation at any time, by means of a duly reasoned written 
statement.  WT/TPR/S/392 • Costa Rica  
 
- 57 - 
 
  Chart 3.3 Adoption of anti -dumping and countervailing measures, 2019  
 
a  Additional information and on -site inspections may be requested when the questionnaire is not 
complete.  
b  The exporter or the authorities of the exporting country/territory voluntarily agree to revise prices or 
eliminate/limit subsidies.  
Source : WTO Secretariat.  
3.38.   The DDC announces the start of an investigation when it is decided a dumping or subsidy 
investigation is needed. Once the investigation is launched, the DDC verifies the existence of 
dumping or subsidization a nd decides whether to apply a provisional measure, which can be imposed 
for a maximum of four months. The parties may reach a mutually agreed solution involving a price 
undertaking or the elimination of subsidized or dumped exports. In the absence of an un dertaking, 
the investigation continues and concludes with the definitive identification of the existence of 
dumping or subsidization, the determination of the dumping margin or the amount of subsidy, as 
well as the injury caused to the domestic industry. M EIC issues a resolution terminating the 
investigation and indicating whether it is necessary to impose a definitive measure and the amount 
thereof, at the request of the DDC. The investigation must be completed within 12 months, but the 
period may be exten ded for up to six months in exceptional circumstances, either on the initiative 
of the DDC or at the request of one of the parties.  
3.39.   The legislation provides that anti -dumping and countervailing duties shall remain in force for 
up to five years as necessary  to counteract the injury to the domestic industry. The five -year 
time-limit may be extended on an exceptional basis if it is found that the conditions that gave rise 
to the measure still persist. In such cases, the DDC conducts sunset reviews to decide wh ether the 
measures should be extended.  
3.40.   The DDC conducts periodic annual or semi -annual reviews of the final measures; but this does 
not preclude review and amendment of the definitive anti -dumping and countervailing duties at any 
time, either at the reques t of a party or ex officio . Import charges imposed as a result of these 
investigations may be less than the margin of dumping or the amount of the subsidy, provided they 
are sufficient to discourage the importation of products through unfair trade practice s. 
3.41.   Since 2017, under the Circumvention Regulations, the DDC has also been responsible for 
conducting anti -circumvention investigations and issuing a recommendation that will be reviewed 
by the Minister of Finance to decide whether the measure should be app lied.37 Imports of any product 
which may give rise to a practice aimed at circumventing an existing trade defence measure are 
subject to this regulation. Examples include: like products, whether or not slightly modified; like 
products declared for other use s, parts or inputs of those products; and semi -finished or 
pre-industrialized products. The regulation specifies the types of practices that may be considered 
                                                
37 Executive Decree No. 40559 of 15 May 2017.  
The domestic industry asks the 
Trade Protection Directorate 
(DDC) of MEIC (investigating 
authority) to initiate an 
investigationStart
The DDC agrees 
to the requestThe DDC notifies the exporters of the 
request (dumping), or the authorities of the 
country/territory of origin of the exports 
(subsidies)Opportunity to hold consultations 
(in the case of subsidies only)
The DDC issues a statement 
announcing the launch of the 
investigationThe DDC notifies the parties and 
sends them a request for 
information (questionnaire)
Price commitmentsbThe DDC makes a preliminary 
determination as to the existence 
of dumping or subsidies that 
have caused material damage to 
the domestic industry or threaten 
to do soMEIC orders the 
application of 
provisional measuresThe DDC reviews, checks and 
clarifies the details and 
finalizes the investigation
Publication and 
notification of the 
commitmentsThe DDC denies 
the requestEnd
EndSolution mutually agreed on 
MEIC lifts the 
provisional 
measures 
MEIC issues a resolution declaring the 
investigation closed and ordering the 
application of anti -dumping or 
countervailing duties (definitive or 
otherwise)Application of provisional measures: 
maximum four months
Yes 
No 
EndThe questionnaire is answereda
The DDC recommends 
the application of 
provisional measures The DDC 
notifies the 
parties
The DDC notif ies 
the partiesEnd
The DDC issues the final 
determination report
End10 
calendar 
days15 calendar 
days
30 calendar days
The DDC 
notifies the 
parties
35 calendar days WT/TPR/S/392 • Costa Rica  
 
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  circumvention, when the intention to circumvent the anti -dumping, countervailing or safeguard 
measure is demonstrated (Box 3.2).  
Box 3.2 Circumvention practices  
(a) The importation of a product that is similar to the product subject to the trade defence measure, through suppliers that 
are subject to an indi vidual measure of smaller amount or not subject to any measure at all. The product must come from 
the country that is subject to the measure in force.  
(b) The importation via third countries of a product similar to the product covered by the trade defence measure.  
(c) The importation of a product similar to the product covered by the trade defence measure declared for other uses.  
(d) The importation of a slightly modified product similar to the product subject to the trade defence measure, so that  it can 
be brought in under different tariff lines that are not subject to trade defence measures, provided that the modifications do  
not alter the essential characteristics of the product and its end use.  
(e) The importation of a semi -finished or pre -industrialized product that serves as an input and undergoes production 
processes in national territory to obtain the product that is subject to the trade defence measure.a 
(f) The importation of parts of the product subject to the trade defence measure for the purpose of producing or assembling 
it in the Costa Rican market.  
(g) The importation of the product subject to the trade defence measure, assembled or subjected to a final stage of productio n 
in a third country, the parts or inputs of whic h originate in the country subject to the trade defence measure. The foregoing, 
provided that the parts or inputs in question as a whole constitute 60% or more of the total value of the parts or inputs of 
the finished product. This does not apply to import s from a third country under an existing trade agreement and complying 
with the rules of origin laid down in that agreement.a 
(h) Any other circumvention behaviour which is shown to undermine the remedial effects of the trade defence measures 
imposed.  
a Circumvention shall not be deemed to exist where the total value -added of the parts or inputs used 
during the assembly or production operation exceeds 25% of the production cost of the finished 
product.  
Source:  Article 6 of Executive Decree No. 40559 of 15  May 2017.  
3.42.   The investigation process to establish whether a circumvention practice exists may be initiated 
at the request of the sector concerned or by a natural or legal person showing a direct interest in 
the investigation process; in exceptional circums tances, it could also be initiated ex officio . The 
request for an investigation must be based on positive, objective and verifiable evidence that 
supports the facts being complained of and is relevant to the launch of the investigation. To be 
admissible, t he application must be submitted within six months of the implementation of the trade 
defence measure that is alleged to have been circumvented. Circumvention investigations must be 
concluded within six months (the normal time -limit) from their launch. Thi s period may be extended 
following a justified request by the parties or on the basis of a justified DDC opinion, for a period 
equivalent to half of the ordinary period. The anti -circumvention measure shall be adopted through 
a resolution and shall remain in force until the trade defence measure ends.  
3.43.   During the period 2014 -19, MEIC was requested, through the DDC, to conduct 
four anti-dumping investigations (oil, sugar, tuna and steel drums). Two of these investigations were 
dismissed (oil and tuna), and tw o were initiated. The first related to white sugar from Brazil and the 
second to steel drums from Chile. Only one investigation resulted in the application of an 
anti-dumping measure, concerning imports of unrefined white sugar from Brazil, as from 28 Marc h 
2017. In 2016, Costa Rica lifted the anti -dumping measure that had been applied since 2007 to 
water -based latex paint from the United States (Table 3.5).  WT/TPR/S/392 • Costa Rica  
 
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  Table 3.5 Anti-dumping measures, 2019  
Country  Product  Date  
of application  Date  
of extension  Termination 
date 
United States  Water -based latex paint  30 January 2007  21 November 2011  21 January 2016  
Brazil  Unrefined crystal white sugar  28 March 2017    
Chile Steel drums  No measure adopted  n.a. n.a. 
n.a.  Not applicable.  
Source:  WTO documents G/ADP/N/244/CRI of 24 September 2013; G/ADP/N/280/CRI of 21 April 2013, 
G/ADP/N/286/CRI of 12 October 2016; G/ADP/N/294/CRI of 30 March 2017; and G/ADP/N/300/CRI 
of 14 September 2017.  
3.44.   During the period under review, Costa Rica did not initiate any investigation into subsidies or 
adopt any countervailing or anti -circumvention measures.  
3.1.6.2   Safeguards  
3.45.   The DDC is responsible for conducting safeguard investigations. In 2015, a methodology was 
developed to determine th e tariff increase needed to prevent or repair the damage and facilitate 
adjustment.38 In addition to general WTO safeguards, Costa Rica may impose safeguards 
administered under the CACM.  
3.46.   The request to initiate an investigation must be made by representatives of the domestic 
industry and from associations of affected producers. The DDC may also initiate an ex officio  
investigation when the domestic industry in question is fragmented or uno rganized, or when it is in 
the public interest to do so. The request may be rejected through a reasoned decision if it does not 
provide sufficient evidence to justify launching the investigation, or if it has not been made on behalf 
of a domestic industry.  A provisional measure may be applied during the investigation process. Once 
the measure is imposed, WTO Members with a substantial interest in the measure should be 
consulted ( Chart 3.4). 
Chart 3.4 Safeguards investigation, 2019  
 
a  Additional information and on-site inspections may be requested when the questionnaire is not 
complete.  
Source:  WTO Secretariat.  
3.47.   The investigat ion must be concluded within six months, unless the DDC deems the 
circumstances exceptional, in which case it must be concluded no later than 12 months from its 
launch. Definitive measures should be "exceptional and temporary in nature" and remain in force  
only for as long as necessary to prevent or repair the serious injury that justifies them and to 
facilitate adjustment. The period of application of the measures should not exceed four years, unless 
extended pursuant to the WTO Agreement on Safeguards. Th e DDC performs the corresponding 
annual or semi -annual periodic reviews when a safeguard measure has been imposed. However, the 
measures may be reviewed and altered at any time either at the request of a party or ex officio , 
following a report from the DDC . 
3.48.   During the period 2014 -19, the DDC was asked to initiate 11 safeguard investigations 
concerning pounded rice and paddy rice (seven cases), tilapia, pork, and corrugated cylindrical bars 
and rods of alloy and non -alloy steel. In addition, a mid -term safeg uard review was requested on 
                                                
38 Information provided by the authorities.  
The domestic industry asks the 
Trade Protection Directorate (DDC) 
of MEIC (investigating authority) to 
initiate an investigationStart
The DDC agrees 
to the requestThe DDC issues a 
statement announcing 
the launch of the 
investigationThe DDC notifies the parties 
and sends them a request 
for information 
(questionnaire)The DDC makes a preliminary determination 
that the increase in imports of a product has 
caused material damage to the domestic 
industry or threatens to do so
MEIC orders the 
application of a 
provisional measure
The DDC notifies the parties 
and holds consultations with 
WTO MembersThe DDC reviews, checks and 
clarifies the details and 
finalizes the investigationThe DDC denies 
the requestEnd
EndThe DDC notifies the parties 
and holds consultations 
with WTO MembersMEIC lifts the provisional 
measure
MEIC declares the investigation closed 
and issues the final resolution, which 
may or may not authorize application 
of the definitive measureApplication of the provisional measure: maximum 200 daysThe 
questionnaire is 
answereda
The DDC recommends 
the application of a 
provisional measureThe DDC issues 
the final report10 
calendar 
days45 calendar days, 
renewable
10 calendar 
days
10 
calendar 
daysWT/TPR/S/392 • Costa Rica  
 
- 60 - 
 
  pounded rice. Investigations were initiated into pounded rice39 and steel bars (rods), which were 
notified to the WTO.40 Only the investigation concerning imports of pounded rice, of whatever origin, 
resulted in the application o f a safeguard measure. Costa Rica notified the WTO of the initiation of 
investigations into safeguards related to pounded rice and steel bars and rods for concrete 
reinforcement.  
3.49.   Costa Rica notified the WTO of the application of the safeguard measure on po unded rice.41 
This measure, which entered into force on 19 February 2015, consisted of a tariff surcharge of 
24.88% on top of the existing tariff of 35%, making a total of 59.88% on the c.i.f. value of all 
imports of pounded rice entering Costa Rica under t ariff items HS 1006.30.90.91 and 
HS 1006.30.90.99, of whatever origin. The measure was applied for a period of four years with a 
timetable for progressive liberalization.42 Brazil, Colombia, Ecuador, Mexico, Paraguay, South Africa, 
Thailand and Viet Nam wer e excluded from the application of the measure, as imports from these 
countries did not exceed 3% of Costa Rica 's total imports in the period 2011 -13 and jointly did not 
exceed 9%. Imports from Central America and the United States, within the CAFTA -DR quo ta, were 
also excluded from application of the measure. In July 2017, Costa Rica notified the WTO that Brazil 
and Paraguay should be removed from the list of countries exempted from the safeguard measure, 
having exceeded 3% of imports.43 
3.50.   Costa Rica imposed a special agricultural safeguard measure on brown rice in 2017 and 
201844, but did not make use of this mechanism during the remainder of the period under review 
(2013 -16).45 
3.2  Measures directly affecting exports  
3.2.1   Customs procedures and requirements  
3.51.   Exporters m ust register with PROCOMER through the VUCE, and this is shared digitally with 
the SNA. Exporter registration is free and must be renewed every two years.46 Version 2.0 of the 
VUCE, which was implemented in 201747, enables the exporter to register and also t o process the 
DUA, export permits or non -tariff requirements, and certificates of origin.48 Depending on the 
product to be exported, some exporters may require additional registration ( Chart 3.5). 
3.52.   The export DUA may be processed by the exporter or by a customs broker, via electronic 
transmission to the TICA using VUCE 2.0. The DUA must be accompanied by supporting documents, 
e.g. commercial invoice, cargo manifest, transport document and the authorizations, licences, 
permits and other documents required under non -tariff regulations. Exporters must pay USD 3 for 
the export declaration, as well as other taxes and charges where applicable ( Chart 3.5). 
                                                
39 WTO document G/SG/N/6/CRI/3 of 28 February 2014.  
40 WTO document G/SG/N/6/CRI/4 of 26 March 2018.  
41 WTO document G/SG/N/8/CRI/1, G/SG/N/10/CRI/1, G/SG/N/11/CRI/1 of 20 January 2015.  
42 WTO do cument G/SG/N/8/CRI/1/Suppl.1, G/SG/N/10/CRI/1/Suppl.1, G/SG/N/11/CRI/1/Suppl.1 of 
27 February 2015.  
43 WTO document G/SG/N/8/CRI/1/Suppl.2, G/SG/N/10/CRI/1/Suppl.2, G/SG/N/11/CRI/1/Suppl.2 of 
11 July 2017.  
44 WTO documents G/AG/N/CRI/60 of 12 September 2017; G/AG/N/CRI/65 of 26 April 2018; and 
G/AG/N/CRI/68 of 1 November 2018.  
45 WTO documents G/AG/N/CRI/45 of 22 January 2014; G/AG/N/CRI/49 of 4 February 2015; and 
G/AG/N/CRI/52 of 5 February 2016. WTO documents G/AG/N/CRI/60 of 12 September 2017 ; G/AG/N/CRI/65 
of 26 April 2018; and G/AG/N/CRI/58 of 23 March 2017.  
46 PROCOMER (2016), Guía Informativa sobre Temas de Comercio Exterior.  Viewed at: 
https://www.procomer.com/uploads/downloads/da7a40cf56882b146dc39548098cf8bd2bae0da5.pdf . 
47 Online information . Viewed at:  https://vuce20.procomer.go.cr/SIVUCEv2/Views/Login/logi nOn.aspx . 
48 Online information . Viewed at:  http://www.sela.org/media/2424397/ventanilla -unica -de-comercio -
exterior -vuce-20-costa-rica.pdf  and http://www.comex.go.cr/sala -de-
prensa/comunicados/2017/diciembre/sistem a-vuce-20-implementar%C3%A1 -permisos -de-
importaci%C3%B3n -que-representan -un-72-de-los-tr%C3%A1mites . WT/TPR/S/392 • Costa Rica  
 
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  Chart 3.5 Export procedures, 2019  
 
 
a For example: Ministry of Agriculture and Livestock (MAG), Ministry of Health, Coffee Insti tute of 
Costa Rica (ICAFE), Ministry of Public Security, Ministry of the Environment and Energy (MINAE), 
National Seeds Office (ONS), National Chemical Weapons Prohibition Authority (ANAQ), Costa Rican 
Fisheries and Aquaculture Institute (INCOPESCA) and Na tional Association of Textile Industry 
Exporters (ANEIT).  
Source:  WTO Secretariat.  
3.53.   When a documentary review and/or physical inspection of the goods is required (red traffic 
light), the customs service notifies the declarant. If the physical examination de tects discrepancies 
between the information declared and what should have been declared, the goods will be recognized, 
and security measures may be adopted if the differences relate to the nature of the goods. The 
discrepancies detected will not hold up th e release of the goods, unless they have to be retained as 
evidence owing to the nature of the infringement. Regular exporters may ask for the physical 
inspection of goods to be carried out at their premises.49 As in the case of imports, most exports 
(99%) pass through the green channel.  
3.2.2   Taxes, charges and levies  
3.54.   Costa Rica taxes exports of bananas, coffee and live cattle. The rates of these taxes, which 
may be ad valorem  or specific, remained unchanged between 2013 and 2018 (Table 3.6).  
Table 3.6 Export charges  
Goods 
subject to 
export 
taxes  Rate Legal basis  
Bananas  USD 1.00 per 40 -pound 
(18.14  kg) net box; rate is 
lowered or raised proportionately 
for lighter or heavier boxes  Article 1 of the Law Taxing the Exportation of Bananas in 
Boxes or Cartons (Law No. 5515) of 19 April 1974  
+ USD 0.05 per 18.14 kg box  Article 23 of the Law Creating the National Banana 
Corporation (Law No. 4895) of 16 November 1971  
+ USD 0.07 per 18.14 kg box  Articles 3 and 5 of Decree No. 37313 H -MAG of 
31 August  2012 and Article 1 of Decree No. 24981 
H-COMEX of 22  December 1995  
Coffee  1.5% of the f.o.b. value for each 
46 kg unit of green coffee (or its 
equivalent)  Article 108 of the Law on Relations between Coffee 
Producers, Processors and Exporters (Law No. 2762) of 
21 June 1961  
                                                
49 Regular exporters are defined as those who maintain a minimum average of 12 exports per year for a 
total f.o.b. value of at least 50,000 Central American  pesos (1 Central American peso = USD 1) (Online 
information: 
https://www.hacienda.go.cr/docs/58b7342145102_Manual%20de%20Pro cedimientos%20Aduaneros%20TICA
%20febrero%202017.pdf ). 
Additional and/or 
missing trade 
documentsRegister as an 
exporter with 
PROCOMERWhere appropriate, register 
as an exporter or register 
the product with the 
competent authorityaComplete the export 
procedure in person, or 
else hire a customs broker
Where appropriate , fulfil
non-tariff requirements
Pay export taxes, if 
anyRandom control performed by 
the Ministry of Finance
Red: Physical 
and/or 
documentary 
review
Green: No 
reviewSubmit to MAG 
inspection, where 
appropriateAuthorization
toexportTradeand export
documents
EndStartWT/TPR/S/392 • Costa Rica  
 
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  Goods 
subject to 
export 
taxes  Rate Legal basis  
Live cattle  USD 2 or USD 3 per head 
depending on the price of meat  Article 7 of the Law Creating the Livestock Corporation 
(Law No. 7837) of 5 October 1998  
CRC 0.03 per kga Article 17 of the Law on Livestock for the Supply of 
National Consumption and for Export (Law No. 6247) of 
2 May 1978  
Meat CRC 25 per tonne  Article 15 of the Law on the Supply of Meat for the 
Domestic and Export Market (Law No. 5135) of 
11 December 1972  
Article 21 of the Law on Livestock for the Supply of 
National Consumption and for Export (Law No. 6247) of 
2 May1978  
a These two taxes are not being applied, given their insignificance.  
Source:  WTO Secretariat.  
3.55.   During the period under review, revenues from export taxes ranged from CRC 6.01 billion 
(USD 12 million) in 2013 to CRC 7.73 billion (USD 13.4 million) in 2018 (Table 3.7). The revenue 
from the banana export tax is shared among several beneficiaries, including the municipalities in 
which the fruit is produced50 and the Special Fund for Prevention and Infrastructure for Banana 
Producers.51 Banana producers may also receive a portion of the tax revenue themselves.52 The 
proceeds of the tax on coffee exports are used to finance the admi nistrative expenses of the Coffee 
Institute of Costa Rica (ICAFE) and the activities it undertakes to promote, diversify and develop the 
coffee industry.53 The revenue from the tax on live cattle exports provides part of the income of the 
Livestock Promotio n Corporation.54 
Table 3.7 Revenue from export taxes, 2013 -18 
(CRC million )  
2013  2014  2015  2016  2017  2018  
Bananas  3,665.9  4,146.5  3,765.9  4,620.5  5,086.8  5,008.2  
Coffee  2,348.3  2,310.4  2,515.8  2,523.0  2,527.0  2,721.6  
Live cattle  0.5 0.5 0.5 1.1 0.4 0.8 
Total 6,014.7  6,457.4  6,282.2  7,144.6  7,614.20  7,730.6  
Memorandum item:        
CRC per USD (period average)  499.8  538.3  534.6  544.7  567.5  577.0  
Source:   WTO Secretariat estimates, based on information provided by the Costa Rican authorities.  
3.56.   There are also other charges on exports. To finance PROCOMER's operations, a fee of USD 3 
is charged for the processing of each export DUA.55 In addition, a tax of USD  25 is levied on exports 
leaving by land, with the revenue to be used to upgrade border crossings.56 
3.2.3   Export prohibitions, restrictions and licences  
3.57.   The exportation of some goods is prohibited, and others require an export permit or 
authorization, either for  reasons of public safety or to protect the environment, health, species and 
archaeological heritage (Table A3.7). In the case of coffee, authorizations are required for the 
purpose of controlling the quality of the coffee exported.  
                                                
50 Article 1 of Law No. 5515 of 29 September 1992.  
51 The Fund, which is administered by the National Banana Corporation (CORBANA), finances the 
construction and maintenance of infrastructure in banana -growing areas (Executive Decree No. 37313 of 
31 August 2012).  
52 Article 2 of Law No. 5515 of 19 April 1974.  
53 Article 108 of Law No. 2762 of 21 June 1961.  
54 Article 7 of Law No. 7837 of 5 October 1998.  
55 Executive Decree No. 25612 of 8 November 1996. Article 9 of Law No. 7638 of 30 October 1996 sets 
the maximum fee at USD 3.  
56 Law No. 9154 of 3 July 2013.  WT/TPR/S/392 • Costa Rica  
 
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  3.2.4   Export support and prom otion  
3.58.   Costa Rica did not grant any subsidies for agricultural exports in the period 2013 -17.57 
3.2.4.1   Free Zone Regime  
3.59.   The Free Zone Regime (RZF) is regulated by the Free Zone Regime Law (Law No. 7210) of 
1990 and its regulations (Executive Decree No. 34739) issue d in 2008. During the previous review 
period (2007 -13), both the Law and the regulations were revised to meet the requirements of the 
WTO Agreement on Subsidies and Countervailing Measures, which required export subsidies to be 
eliminated by 31 December 20 15.58 Between 2013 and 2019, the Free Zone Regime Law itself was 
not substantially amended, but the regulations underwent multiple changes.  
3.60.   PROCOMER and the Ministry of Foreign Trade (COMEX) administer the RZF in Costa Rica. The 
eligibility criteria for thi s regime have not changed significantly since 2013 (Table 3. 8). Firms 
operating under the RZF may be located either inside or outside an industrial park. Admission to the 
RZF is granted through the Executive Agreement for Admission to the Free Zone Regime,  which 
specifies requirements in respect of investment, employment and domestic value -added that the 
firms undertake to fulfil. Compliance is essential to be able to benefit from the incentives offered 
under the RZF. To demonstrate this, beneficiaries must  submit reports on their levels of investment, 
employment and domestic value -added or other issues, as indicated in the Executive Agreement for 
Admission to the Regime.59 Until 2016, firms had to comply strictly with the requirements agreed 
to, but since th en have been given a degree of flexibility subject to providing valid justification. 
Currently, firms covered by the Regime must fulfil at least 75% of the agreed requirements to avoid 
being penalized.60 This amendment does not exempt firms from fulfilling their commitments and 
obligations.  
3.61.   Both domestic and foreign investor firms with new investment projects may apply for 
admission to the RZF. Table 3.8 classifies the types of firm that are eligible, which can operate in all 
sectors except power generation;  the production and sale of arms; finance; and professional 
services. Companies operating under the RZF must undertake and maintain an investment of 
between USD 100,000 and USD 2 million, depending on location. Processing companies that 
produce, process or  assemble goods, irrespective of whether or not they export ( "type-f 
enterprises "), have to satisfy a number of additional requirements to benefit from the Regime. In 
addition to  fulfilling certain specific criteria, firms in this category can also be cons idered 
"mega -projects " (Table 3.8).  
Table 3.8 Main requirements for admission to the Free Zone Regime  
Type of firm  (a) export processing enterprises; (b) export trading enterprises; (c) service 
enterprises; (d) enterprises administering free zone parks; (e) enterprises 
engaged in scientific research; enterprises operating shipyards and dry or 
floating docks; and (f) processing enterprises that produce, process or assemble 
goods, irrespective of w hether or not they export ("type -f enterprises").  
Sectors in which firms 
may not operate under 
the RZF  Mining, hydrocarbons; electric power generation (except for own consumption); 
production and sale of arms and ammunition; financial services; and professional 
services.  
Initial investment 
requirement for all types 
of firms  Within 
the GAM  Inside an industrial park: 
USD 150,000  Outside an industrial park: 
USD 2 million  
Outside 
the GAM  Inside an industrial park: 
USD 100,000  Outside an industrial park: 
USD 500,000  
                                                
57 WTO Documents G/AG/N/CRI/46 of 22 January 2014; G/AG/N/CRI/50 of 4 February 2015; 
G/AG/N/CRI/54 of 7 March 2016; G/AG/N/CRI/56 of 22 March 2017; and G/AG/N/CRI/63 of 25 April 2018.  
58 WTO Document G/SCM/N/299/CRI -G/SCM/N/315/CRI of 23 October 2017.  
59 Law No. 7210 of 23 November 1990.  
60 Article 122 bis of Executive Decree No. 34739 of 29 August 2008.  WT/TPR/S/392 • Costa Rica  
 
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  Additional requirements 
for type -f enterprises  • Operate in a strategic sector (this requirement is imposed only if the company 
is established in the GAM)  
• Undertake a new investment, which could be made or moved to another country 
(principle of international mobility)  
• Be exempted from or not subject to income tax in Costa Rica. A new investment 
or a previously exempted firm (i.e.  an export processing firm).  
• In the case of supplier firms, 40% of production must be sol d to firms 
established in free zones.  
Specific requirements for 
type-f enterprises to be 
considered 
mega -projects  • Invest at least USD 10 million  
• Have an 8 -year investment plan  
• Employ at least 100 people  
Note:  GAM = Greater Metropolitan Area.  
Source:  Free Zone Regime Law; WTO document G/SCM/N/299/CRI -G/SCM/N/315/CRI of 23 October 2017; 
and PROCOMER online information viewed at: 
https://www.procomer.com/es/inversionist a/zonasfrancas#1 . 
3.62.   Firms operating under the RZF are exempt from customs duties and other charges when 
importing the goods they need to operate, including vehicles and fuels, provided that these are not 
produced in Costa Rica or do not exist in sufficient q uantity and quality. The firms in question are 
also exempt from export and re -export taxes and from sales tax (IGV) and consumption taxes (ISC) 
when they purchase goods and services on the domestic market.61 Firms operating under the RZF 
are also exempt fro m the following charges and taxes: (a) tax on capital and net assets, (b) territorial 
tax, (c) real estate transfer tax, and (d) municipal taxes and patent fees. These exemptions are 
granted for ten years.62 Remittances abroad by foreign investors in the RZ F are not taxed.63 
3.63.   Enterprises operating in free zones are also fully or partially exempted from income tax or 
subject to a reduced rate, depending on their type (Table 3.9). The amount and duration of the tax 
benefit depend on the location of the firm. In order to comply with the requirements of the WTO 
Agreement on Subsidies and Countervailing Measures, since 1 January 2016 export processing firms, 
which were previously exempt from income tax, have been subject to the general rate of 30%.64 In 
order to cont inue to benefit from the exemption, former export processing firms that meet the 
relevant requirements may become type -f enterprises.65 Firms in this category may also defer 
income tax and obtain a tax credit (of up to 10% of their income) in exchange for r einvesting profits 
or investing in staff training.66 Between 2013 and 2014, 75 export processing firms switched to being 
type-f enterprises.  
Table 3.9 Income tax for enterprises operating in free zones  
 Exempti ons 
Within GAM  Outside GAM  
All types of enterprise, except export processing firms (as 
from 2016) and type -f enterprises  100% for 8 years  
50% for 4 years  100% for 12 years  
50% for 6 years  
Type-f enterprises considered "mega -projects " 
 100% for 8 years  
50% for 4 years  100% for 12 years  
50% for 6 years  
 Reduced rate  
Within GAM  Outside GAM  
Type-f enterprises  6% for 8 years  
15% for 4 years  0% for 6 years  
5% for 6 years  
15% for 6 years  
Source:  Articles 20 and 21 ter of the Law on the Free Zone Regime.  
3.64.   In general, all RZF firms may sell their production on the domestic market67, albeit subject to 
a limit of 50% in the case of service providers. Moreover, export processing companies and type -f 
                                                
61 Article 20 of Law No. 7210 of 13 November 1990.  
62 Article 20 of Law No. 7210 of 13 November 1990.  
63 Article 20 of Law No. 7210 of 13 November 1990.  
64 Online information . Viewed at: https://www.procomer.com/es /inversionista/zonasfrancas#1 . 
65 WTO Document WT/TPR/S/286/Rev.1 of 27 November 2013.  
66 Article 21 ter of Law No. 7210 and online presentation viewed at: 
https://www.procomer.com/es/inversionista/zonasfrancas#1 . 
67 Article 22 of Law No. 7210 of 13 November 1990.  WT/TPR/S/392 • Costa Rica  
 
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  enterprises can outsource up to 50% of their production to local suppliers,  subject to authorization 
by PROCOMER.68 
3.65.   In 2018, some 443 firms were operating under the Free Zone Regime and there were 52 free 
zone management companies. In 2017 (latest available data), 55.5% of the enter prises covered by 
the regime were operating in the services sector, 44.8% in manufacturing and 3.6% in agribusiness. 
In 2018, 85% of RZF firms were located in the Greater Metropolitan Area, despite measures to 
encourage investment elsewhere in the country,  such as lower initial investment requirements and 
more attractive tax incentives for firms setting up business outside the GAM.69 In 2017 (latest 
available data), the total cost of exemptions was USD 866.8 million — 69.2% more than in 2013 .70 
3.2.4.2   Inward Process ing Regime  
3.66.   The Inward Processing Regime is a customs arrangement under which the payment of tariffs 
and indirect taxes is suspended when specified goods are imported for use in the manufacture of 
goods for export. To benefit from the Inward Processing Regi me, export firms must either re -export 
their entire production, or else re -export part of their production and sell the rest on the domestic 
market.71 In the latter case, they have to pay customs duties and domestic taxes.72 
3.67.   To comply with WTO provisions, th e Inward Processing Regime was amended during the 
period under review through the Inward Processing Regulation (Executive Decree No. 40198), which 
was issued in 2016.73 This regulation, as notified to the WTO, eliminated "benefits deemed to be 
export subsid ies".74 The Regime is also regulated by the General Customs Law and its regulations; 
and it is administered by PROCOMER.  
3.68.   Since 2016, if a good cannot be incorporated into the manufacture of the export product it 
cannot be imported under this Regime (Box 3.3 ). Currently, only raw materials, semi -finished 
products, labels, packaging, and chemical materials (except fuels) may be imported under the 
Regime.75 The inputs in question must be re -exported within 12 months of being imported and must 
have undergone a tr ansformation, repair, reconstruction, or assembly process, or else have been 
incorporated into machinery, transport equipment or goods with a higher degree of complexity.76 
Box 3.3 Imports excluded from the Inwar d Processing Regime as from 2016  
Machinery and transport equipment  
Goods intended for the enterprise 's administrative activities  
Articles used to prepare food and the furnishings necessary for the serving of food  
Equipment, fixtures and furnishings for training and safety  
Articles used for medical care or rehabilitation, intended exclusively for employees directly involved in the 
process of operation, transport, production and administration of enterprises  
Commercial or industrial samples  
Moulds, dyes, utensils and other devices used to supplement other appliances, models, patterns and similar 
articles essential for production and instructing personnel  
Source : WTO document G/SCM/N/299/CRI -G/SCM/N/315/CRI of 23 October 2017.  
                                                
68 Online information . Viewed at: https://www.procomer.com/es/inversionista/zonasfrancas#1 . 
69 COMEX/PROCOMER/CINDE (2016), Balance de las Zonas Francas: Beneficio Neto del Régimen para 
Costa  Rica 2011 -2015. Viewed at: https://procomer.com/downloads/zonas -
francas/balance_zf_2011_2015.pdf . 
70 Information provided by the authorities.  
71 Article 16 of Executive Decree No. 40198 of 13 December 2016.  
72 Article 23 of Executive  Decree No. 40198 of 13 December 2016; and WTO document 
G/SCM/N/299/CRI -G/SCM/N/315/CRI of 23 October 2017.  
73 Executive Decree No. 40198 repealed the 2007 regulations (Executive Decree No. 34165) 
(WTO  document G/SCM/N/299/CRI -G/SCM/N/315/CRI of 23 October 2017).  
74 WTO document G/SCM/N/299/CRI -G/SCM/N/315/CRI of 23 October 2017.  
75 Article 21 of Executive Decree No. 40198 of 13 December 2016.  
76 Article 1 of Executive Decree No. 40198 of 13 December 2016 and online information viewed at: 
https://procomer.com/es/soy/regimen -perfeccionamiento -Lawivo#12 . WT/TPR/S/392 • Costa Rica  
 
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  3.69.   In January 2019, 39 firms were covered by the Inward Processing Regime77, operating mainly 
in rural areas. In 2013, exports under this regime accounted for 2.1% of Costa Rica 's total goods 
exports; this proportion dropped to 1.4% in 2016 and to 1.3% in 2018.78 
3.2.4.3   Duty Drawback Scheme  
3.70.   The Duty Drawback Scheme is governed by the General Customs Law (Law No. 7557) of 1995 
and the Duty Drawback Regulations (Executive Decree No. 34740) of 2008. Neither of these was 
amended between 2013 and 2019. PROCOMER administers the  Scheme, which allows firms to 
recover the taxes paid when importing inputs, containers or packaging to be incorporated in goods 
that are later exported, provided that export occurs within 12 months following the import of the 
inputs, containers or packagi ng in question.79 
3.2.4.4   Export promotion programmes  
3.71.   PROCOMER continues to have responsibility for export promotion in Costa Rica. It undertakes 
initiatives to facilitate export procedures, diversify export supply, promote exports by small and 
medium -sized enterpr ises (SMEs) and nurture production chains. In this connection, it also provides 
assistance for firms to participate in international trade fairs and missions. Through its network of 
offices abroad, it directly promotes Costa Rican products in foreign marke ts, especially in new ones, 
with the aim of diversifying the country 's export destinations. PROCOMER offers services such as 
trade intelligence, and consulting and training.80 It also analyses and publishes foreign trade data to 
enable the exporter to make informed decisions.  
3.72.   In terms of trade facilitation, PROCOMER administers VUCE 2.0, through which firms can 
register as exporters and, where necessary, process non -tariff export requirements and certificates 
of origin. PROCOMER also administers the Integrat ed Logistics System, created in 2012, through 
which exporters can request information on the export and import process, other complementary 
services, and international transport and its costs.81 
3.73.   In 2017 (latest available data), PROCOMER supported 252 export ers, providing a total of 
CRC 227 million in assistance.82 
3.2.5   Export financing, insurance and guarantees  
3.74.   Costa Rica has no official export financing or export credit insurance programmes. Exporters 
finance themselves through commercial banks. The State insuran ce company (National Insurance 
Institute – INS) provides export credit insurance, as do private insurance companies. This can only 
be denominated in foreign currency and guarantees the reimbursement of up to 80% of the export 
value should the buyer fail to  pay, owing to ordinary (commercial) and/or extraordinary (political 
and force majeure ) risks. The insurance usually covers payments with terms of between 30 and 
180 days.83 Exporters can also insure the goods against possible damage during loading/unloadin g, 
transfer and storage operations. This type of insurance is provided by the INS and also by a private 
insurance company (ASSA).84 
                                                
77 Online information from PROCOMER . Viewed at: https://procomer.com/es/soy/regimen -
perfeccionamiento -Lawivo#12 . 
78 WTO document G/SCM/N/299/CRI -G/SCM/N/315/CRI of 23 October 2017.  
79 Online information . Viewed at: https://www.procomer.com/es/inversionista/devolutivo#18 . 
80 PROCOMER (2014), Plan Estratégico 2015 -2018. Viewed at: 
https://www.procomer.com/downloads/informes -planes/Plan_estrategico_PROCOMER_2015 -2018.pdf  and 
PROCOMER (2018), Memoria Institucional 2017 . Viewed at: https://www.procomer.com/downloads/informes -
planes/gestion/Memoria -PROCOMER -2017.pdf . 
81 Online information. V iewed at: https://www.procomer.com/es/noticias/sistema -integrado -de-
logistica -de-costa-rica-servira -como -referencia -para-latinoamerica . 
82 PROCOMER (2018), Memoria Institucional 2017 . Viewed at: 
https://www.procomer.com/downloads/informes -planes/gestion/Memoria -PROCOMER -2017.pdf . 
83 Online information . Viewed at: http://portal.ins -cr.com/portal.ins -
cr.com/Empresas/SegurosCo/SegCredExpLocal . 
84 Online informatio n. Viewed at: http://portal.ins -cr.com/portal.ins -
cr.com/Empresas/SegurosCo/SegCarga  and https://www.assanet.com.sv/productos/productos -para-
personas/seguro -de-transporte -de-mercancias . WT/TPR/S/392 • Costa Rica  
 
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  3.3  Measures affecting production and trade  
3.3.1   Incentives  
3.75.   In 2017 , Costa Rica notified to the WTO two programmes relating to subsidi es granted under 
the Free Zone Regime and the Inward Processing Regime.85 Both of these regimes were revised in 
order to comply with the requirements of the WTO Agreement on Subsidies and Countervailing 
Measures ( Section  3.2.4). In addition to these program mes, Costa Rica grants other tax and financial 
incentives to support micro, small and medium -sized enterprises  (MSMEs)  and women 
entrepreneurs, as well as for specific sectors (Section 4). Most of these programmes were already 
in force in 2013 and have not  been significantly modified , according to the authorities (Table  3.10). 
The new programmes include , in particular , a PROCOMER programme  entitled  Crecimiento Verde  
(Green Growth ), which , over a period of four years , grants  non-repayable financing to MSMEs to 
transform their production method s so as to incorporate g reen technology.  
Table 3.10 Principal financial incentives for production and investment, 2013 -18 
National Programm e to Support Micro -Enterprises (PRONAMYPE)  
Coverage:  Trade, industry, services, agriculture  (except coffee and palm hearts), livestock breeding and 
aquaculture  
Beneficiaries:  Micro-entrepreneur s, disabled persons, adults , women heads of household and y oung people  
Amount financed : Maximum of CRC 10 ,000,000  
Terms/benefits:  Security (mortgages, pledges and trust guarantees) and credit periods  
Implementing agency : Fiduciary trust operated by the Banco Popular y de Desarrollo Comunal  (BPDC ) 
Amount : Loans and education grants totalling  CRC 16, 048 mill ion 
Programme to Support Small and Medium -Sized Enterprises (PROPYME)  
Coverage : Technological development and innovation projects to improve management and 
competitiveness  
Beneficiarie s: SMEs   
Amount financed : Up to  80% 
Terms /benefi ts: Non-repayable funds  
Implementing agency : Ministry of Science, Technology and Telecommunications (MICITT ) 
Amounts:  Credit amounting to CRC 1,528.5 mill ion 
Development Fund for Micro, Small and Medium -Sized Enterprises  (FODEMIPYME)  
Coverage:  Loans and guarantees for development projects or transfer of technology and training   
Beneficiarie s: MSMEs   
Amount financed : Up to  USD 150,000 
Terms /benef its of loans : Term of up to 120 m onths  
Terms/benefits of guarantees:  Up to 75% of guarantee for the amount of loan/ maximum guarantee 
amount CRC 87.4 mill ion 
Implementing agency : BPDC  
Amount:  Guarantees totalling CRC 42,250 million, credit amounting to CRC 14,458 0 million and education  
grants amounting to CRC 240,212.2 million  
National Development Trust Fund (FINADE)  
Coverage:  Loan guarantees  
Beneficiaries:  MSMEs  
Terms/benefits:  Guarantees for a maximum of  75% of the loan 
Implementing agency : Development Banking System (SBD) 
Amount:  Credit totalling CRC 251,463.4 million and guarantees amounting to CRC 27,140.1 million  
Raising the productivity and competitiveness of small industrial producers  
Coverage:  Financing for construction and refurbishment, purchase of inputs and working capital  
Beneficiarie s: Small industrial firms  
Terms/benefits:  Loans for terms of up to 180 months; maximum loan amount of CRC 65 million  
Implementing agency : SBD and BNCR  
Amount : Loans totalling CRC 27 ,552 mill ion 
FOMUJERES  
Coverage : Non-repayable funds  
Beneficiarie s: Women entrepreneurs (individual s and  organiza tions) 
Terms/benefits:  CRC 3 million (individuals) and CRC 15 million (g roups) 
Implementing agency : National Institute for Women  (INAMU)  
Amount : Grants totalling CRC 5 ,626 mill ion  
                                                
85 WTO Document G/SCM/N/299/CRI -G/SCM/N/315/CRI of 23 October  2017.  WT/TPR/S/392 • Costa Rica  
 
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  Innovation and Human Capital for Competitiveness Programme  (PINN)  
Coverage  Innova tion and human capital training   
Beneficiarie s: MSMEs accredited by MEIC 
Terms /benefi ts: Up to  80% 
Implementing agency : MICITT  
Amount : Loans and education grants totalling CRC 194 ,235.1 mill ion 
GREEN GROWTH – PROCOMER  
Coverage : Shift to green production  
Beneficiaries:  MSMEs that export  or have export potential  
Terms/benefits:  Non-repayable funds will be granted to 200 enterprises over four years 
Implementing agency: PROCOMER and the Costa Rica United States Foundation for Co-operation (CRUSA)  
Amount:  During 2018, USD 332,124.21.  
Source:  WTO Secretariat, with information provided by the Costa Rican authorities.  
3.76.   Imports of goods, including fuel, for fishing other than recr eational fishing are wholly 
exempted from customs duties. All natural or legal persons holding a valid commercial fishing licence 
are eligible for these benefits. In addition, RECOPE establ ishes a  'competitive price'  for fuel (diesel 
and pet rol (gasoline)) used by the national fishing fleet. This price is fixed taking into account only 
the following variables: (a) cost of the fuel; (b) freight cost; (c) insurance; (d) cost of transport of 
the final product within the national territory to the  point of distribution; an d (e) storage and 
pumping costs. The calculation does not take into account some of the costs borne by RECOPE in 
importing the product nor its operating costs, which include its marketing margin, management 
support costs, deprecia tion and costs of delays. The proportion of the costs not included in the price 
of the diesel and petrol sold to the fishing industry is passed on to the other products.  
3.77.   For a five -year period starting in 2018, in order to attain one of the objectives of the National 
Energy Plan (promotin g the use of electric vehicles),  imports and local purchases of electric vehicles 
have been wholly or part ially exempted from the IGV,  ISC and the 1% duty on customs value.  The 
percentage of the exemption depends on the va lue of the vehicle (Table 3.11). In addition, for a 
ten-year period imports and local sales of the machinery and equipment for manufacturing or 
assembling these vehicles will be exempt from the IGV, and spare parts will be exempt from the IGV 
and ISC. Charging stations for electric vehicles will be exempted from IGV, ISC and the 1% duty on 
customs value for a five -year period . 
Table 3.11 Incentives granted for imports and local purchases of electric vehicles, 2018  
Value of vehicle  Taxes covered by the exemption   
General sales tax (IGV)a Selective consumption 
tax (ISC)  1% duty  
Up to  USD 30,000  100%  100%  100%  
USD 30,001 to USD 45,000 50% 75% 100%  
USD 45,001 to USD 60,000  0% 50% 100%  
USD 60,001 and over   0% 0% 0% 
a The IGV will be replaced by VAT as from 1 July 2019 . 
Source:  Electric Transport Incentives and Promotion Law (Law No. 9518) of 25 January  2018 and its 
implementing regulations (Executive Decre e No. 41092) of 10 April 2018.  
3.78.   During 2013 -17, the tax cost remained relatively stable , with  tax exemptions in 2017 
amounting to 5.5% of GDP (5.3% in 2013). Exemptions from the IGV represent ed over 50% of the 
tax cost, followed by income tax (Table  3.12).  
Table 3.12 Tax cost, 2013 -17 
(CRC million ) 
 General sales tax  
(IGV)  Income tax  Other Total  
Amount  % of 
GDP Amount  % of 
GDP Amount  % of 
GDP Amount  % of 
GDP 
2013  775,953.6 3.1 473,895.4 1.9 68,851.8 0.3 1,318,700.,8 5.3 
2014  794,001.3 2.9 504,519.4 1.9 72,511.2 0.3 1,371,031.9 5.0 
2015  823,463.5 2.8 532,034.0 1.8 74,934.3 0.3 1,430,431.8 4.9 
2016  890,989.3 2.9 693,519.6 2.2 76,699.0  0.3 1,661,207.9 5.3 
2017  949,961.8 2.9 765,740.7 2.3 85,078.5 0.3 1,800,781.0 5.5 
Source:  Information provided by the authorities.  WT/TPR/S/392 • Costa Rica  
 
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  3.3.2   Standards and other technical requirements  
3.79.   The Law on the National Quality System (Law No. 8279) of 2002  continues to regulate the 
National Quality System (SNC) and has not  been substantial ly amended since 2013 . However, during 
the review period, changes have been made in the regulations governing the various institutions 
that make up the SNC (Table 3.13).  
Table 3.13 Regulations of the National Quality System, 2019  
Title  Number and date   Latest 
amendment  
Regulations of the National Quality Council  Executive Decree  No. 31820 of 
29.04.2004  2015a 
2017b 
Regulations to Chapter III of Law No. 8279 – Creation 
of the Costa Rican Metrology Laboratory  Executive Decree  No. 31819 of 
30.04.2004  n.a. 
Regulations of the Technical Regulation Body  Executive Decree No. 32068 of 
19.05.2004  2015 
Regulations on the i nternal structure and o peration of 
the Costa Rican Accreditation Authority  Executive Decree No. 39508 of 
24.08.2015c n.a. 
a Amendments to provisions concerning the convening of CONAC meetings.  
b The month of November (instead of October) is declared 'Quality Month '.  
c Replaces the earlier regulations contained in Executive Decree No. 33963 of 16 March  2009.  
n.a. Not applicable.  
Source:  WTO Secretariat.  
3.80.   The SNC comprises  five institutions ( Chart 3.6). The National Quality Council (CONAC) is 
responsi ble for the SNC and determines national policy on quality and  promotes the culture of 
quality.86 The SNC also compr ises four technical bodies: the Technical Regulation Body (ORT) 
(chaired by MEIC), the Costa Rican Metrology Laboratory (LACOMET), the Costa Rican Accreditation 
Authority (ECA) and the Costa Rican Technical Standards Institute (INTECO), which together 
guarantee the quality of goods and services .87  
Chart 3.6 Bodies of the National Quality System  
 
Source:  WTO Secretariat and Inter -American Development Bank (IDB) (2016), El Sistema Nacional para la 
Calidad como bien público para la competitividad en Costa Rica . Viewed at: 
https://publications.ia db.org/handle/11319/7838 . 
                                                
86 Article 9 of Executive Decree No. 31820 of 29 April 2004.  
87 Law No. 8279  of 2 May 2002.  
Costa Rican Metrology Laboratory
(LACOMET )Technical Regulation Body
(ORT)
Accreditation Technical Standards Institute of 
Costa Rica ( INTECO )National Quality Council 
(CONAC)National Quality
System (SNC)Governing Body
Formulates national policy to guarantee and 
improve the quality of goods and servicesTechnical
Regulations
Recommends the adoption, 
amendment or removal of 
technical regulationsStandards
Prepares national standards and promotes the 
adoption of international standards.
Private non-profit entity
Metrology
Acts as custodian of and maintains the 
national measurement standardsCosta Rican Accreditation 
Authority ( ECA)
Grants accreditation for 
conformity assessment bodiesConsists of 19 members, chaired by the 
Ministry of the Economy, Industry and TradeWT/TPR/S/392 • Costa Rica  
 
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  3.81.   LACOMET, ORT and ECA are government entities , while INTECO is a private non -profit body 
that has been the national standardization body  since 1995 .88 New regulations governing ECA were 
adopted in 2015 to replace those  of 2009.  Among other things , the new regulations list the 
conformity assessment bodies accredited by ECA, including clinical laborat ories and verification and 
validation bodies.89 The Regu lations of ORT were also substantially amended in 2015, inter alia  to 
improve the process of preparing technical regulations.  
3.82.   The preparation of technical regulations is governed by the ORT regulations of 2004 and the 
Code of Good Practice of the WTO Agre ement on Technical Barriers to Trade.90 With the support of 
its Technical Secretariat, ORT proposes the adoption of Costa Rican technical regulations (RTCR s). 
Currently (2019) , 237 RTCRs are in force in Costa  Rica; they are used for both locally produced 
goods and imports  and are available in an online catalogue.91  
3.83.   The preparation  of an RTCR involves various stages, which include the preparation of the 
proposal, cost /benefit analysis, presentation and evaluation of the draft (form and substance) , and 
two public consultations, one national and the other at international level ( Chart 3.7).92 Draft RTCRs 
must fulfil all the stages in the process. Since 2015, all dr afts must be submitted to international 
public consultation.  
Chart 3.7 Preparation and adoption of Costa Rican technical regulations  
 
Source:  MEIC (2014), Guide to the preparation of National Technical Regul ations. Viewed at: 
https://www.reglatec.go.cr/reglatec/principal.jsp . 
3.84.   All draft RTCRs are notified to the WTO Committee on Technical Barriers to Trade , even where 
an international public consultation is not required. Since 2013, Costa  Rica has notified 47  new 
technical regulations concerning health, environmental and consumer protection. Three of these 
establish a ban on the import an d/or distribution and sale of toys, used tyres and sweets ( candies) 
(Table A3.6).93 Amendments to 23 technical regulations that had already been notified were also 
notified. Between 2013 and January 2019, Costa Rican technical regulations did not give rise to 
specific trade concerns in the WTO Committee on Technica l Barriers to Trade.94 The Information 
                                                
88 MEIC Decision No. 114 of 27 October 2017 and online information . Viewed at: 
https://www.inteco.org . 
89 Article 7  of Executive Decree No. 39508 of 24 August 2015.  
90 Article 11  of Executive Decree No. 32068 of 19 April 2004.  
91 Online information. Viewed at: https://www.reglatec.go.cr/reglatec/principal.jsp . 
92 Proposals for technical regulations submitted to public consultation and the res ponses given to the 
comments may be consulted through the Technical Regulation System 
(https://www.reglatec.go.cr/reglatec/principal.jsp ). 
93 WTO documents G/TBT/N/CRI/170 of 26 September 2017, G/TBT/N/CRI/181 of 17 October  2018 and 
G/TBT/N/CRI/182 of 17 October 2018.  
94 Online information. Viewed at: http://tbtims.wto.org . 
The competent ministry may appoint a 
technical committee to review the draft RT 
and help in analysing the comments received 
from the public consultations (national and 
international)The competent ministry 
forwards the draft RT to 
the ORT Technical 
Secretariat The ORT 
Technical 
Secretariat 
analyses the 
draft RTPositive technical
opinion given
The competent ministry publishes the 
notice of national public consultation
The competent ministry 
receives, analyses, 
incorporates or rejects the 
comments of the interested 
economic sectorsThe ORT Technical Secretariat 
publishes the draft RT and the 
responses to the comments 
(http://www.meic.go.cr/reglatec )
The competent ministry sends the 
draft RT and the responses to 
comments to the ORT Technical 
Secretariat.The ORT Technical 
Secretariat notifies 
the draft RT to the 
WTOInternational public consultation 
(60 days, but may be less)
The ORT Technical Secretariat receives 
the comments made by WTO Members 
and forwards them to the competent 
ministry
The RT is promulgated and 
published by Executive DecreeThe competent ministry and the 
private sector separately or 
together draw up a draft 
Technical Regulation (RT) and a 
cost/benefit assessment is 
madeNegative technical
opinion issued
Comments
No Yes
The competent ministry analyses, 
incorporates or rejects the commentsThe ORT Technical Secretariat 
publishes the draft RT and the 
responses to the comments 
(http://www.meic.go.cr/reglatec )National public consultation (10 days )
Comments
No YesStart
EndPositive opinion 
submitted to ORTRTnotauthorized
RTauthorizedThe draft RT is returned for amendmentWT/TPR/S/392 • Costa Rica  
 
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  Centre on Technical Barriers to Trade (CIOT) of the ORT  Technical Secretariat is the information 
centre  for the WTO.  
3.85.   ORT, its Technical Secretariat and ministries take part in the preparation of  a draft RTCR.  The 
private sector may also formulate draft RTCRs, either independently or in collaboration with the 
competent ministry, but only the ministry may present the draf t to ORT ( Chart 3.7).95 In 2015, some 
changes were made in the process for the drafting of RTCRs. The main change was that responsibility 
for analysing comments submitte d during the public consultation process and for responding to them 
was transferred from the ORT Secretariat to the competent ministries ( Table  3.14).  
Table 3.14 Main changes to the stages in the preparation of an RTCR  
(Changes are in bold) 
 Executive Decree No. 32068 of 
19.04.2004  Executive Decree No. 32068 as amended 
by Executive Decree No. 39320 of 
04.08.2015  
Evaluation of 
the draft 
(Article  13) The ORT Technical Secretariat evaluates 
the draft technical regulation  The ORT Technical Secretariat has ten days 
to evaluate the draft technical regulation; 
this period may be extended where 
further analysis is required  
 The ORT Technical Secretariat submits 
its evaluation report to ORT  
The project is not evaluated where 
an international standardization 
standard is adopted. The project is 
submitted directly to public 
consultation  Since 2015 all drafts are evaluated  
Technical 
opinion 
(Article 14) Technical opinions are not issued where 
an international standardization standard 
is adopted. The draft is directly 
submitted to public consultation  Since 2015, technical opinions must be 
issued for all drafts  
National public 
consultation  
(Article 16)  The ORT Technical Secretariat has 
eight  days to analyse and respond to 
the comments made during the national 
public consultation  The competent ministry has ten days to 
analyse and respond to the comments made 
during the national public consultation; this 
period may be extended when 
clarifications are required  
The competent ministry sends the ORT 
Technical Secretariat the final proposal 
of the draft technical regul ation  
Notification to 
the WTO and 
international 
public 
consultation 
(Article 17) In the case of the adoption of a 
standard issued by an international 
standardizing body , the international 
public consultation is not necessary. The 
WTO is notified only for transparency 
purposes  In the case of the adoption of a standard 
issued  by an international standardizing 
body  and drafts that establish measures 
to facilitate trade , there is no international 
public consultation. The WTO is notified only 
for transparency purposes  
  
ORT analyses and responds to the 
comments made during the international 
public consultation  The competent ministry has 30 days to 
analyse and respond to the comments made 
during the international public consultation  
Source:  WTO Secretariat . 
3.86.   RTCRs are issued by means of executive decree. T heir implementation may be immediate, in 
the case of measures that facilitate trade, or be delayed for between six months to two years to 
enable economic operators to have the time to adjust to them. RTCRs are reviewed at the request 
of interested parties. The revision of an RTCR involves the same stages as for its adoption/issuance.96 
3.87.   The labelling of pre -packaged foods, whether imported or locally produced, that are  marketed 
in Costa  Rica is governed by Central  American Technical Regulations ( RTCA s). All pre -packaged 
                                                
95 The private enterprises must submit their proposals to the comp etent ministry, which will then 
present them to ORT. Article 12  of Executive Decree No. 32068 of 19 April 2004.  
96 WTO Document WT/TPR/S/286/Rev.1 of 27 November 2013.  WT/TPR/S/392 • Costa Rica  
 
- 72 - 
 
  foods must comply with general labelling requirements (ingredients, weight, country of origin, expiry 
date, health registr y number, etc.) . Specific pre -packaged foods such as alcoholic beverages, 
sausages or dairy products must also meet specific requirements that take precedence over the 
general requirements.97 Some technical regulations have a section on marketing or labelling, as in 
the case of cement and fibre cement sheeting. There are Central Am erican regulations on the 
labelling of cosmetics, cleaning products, medicines for human use, pesticides for domestic  or 
professional use, footwear and textiles.  
3.88.   INTECO is responsi ble for standardization in Costa  Rica. "Technical standards98" (standards) 
are prepared by the INTECO national technical committees compris ing public and private sector 
participation as well as representatives of academic circles, research institutes, sectoral 
organizations, NGOs, professional colleges and wo rker and consumer asso ciations.99 For the 
preparation of  a "technical standard", account is taken primarily of the provisions of the WTO 
Agreement on Technical Barriers to Trade and the ISO Code of Good Practice for Standardization, 
as well as the guidelines issued by other inte rnational bodies in which Costa Rica participates 
(for example, the Pan -American Technical Standards Commission (COPANT) and the International 
Electrotechnical Commission (IEC )).100  
3.89.   The process of drawing up a "technical standard" comprises  various  stages ( Chart 3.8), all of 
which must be carried out. Nevertheless, a fast -track procedure may be used where an international 
standard is adopted. In this case, the proposal is  put to public consultation without need for prior 
approval from the technical committee.101 The period of public consultation is generally 60 calendar 
days but may be reduced to 30 calendar days on grounds of emergency (health, safety or 
environmental).102 The "technical standards" are adopted by consensus in technical committees.103 
Their use is  voluntary, but they may become mandatory in order to protect health, safety, the 
environment and consumers; in other words, where the re is a legitimate objective.104 In this case 
they become an RTCR by means of an executive decree. "Technical standards" are reviewed 
periodically every five years to remain in force. Currently (2019) there are more than 1,800 technical 
standards in Costa  Rica, 37% of them ISO standards a dopted by the country; they may be consulted 
in a paid online catalogue.105  
                                                
97 Central American Technical Regulation o n the General Labelling of Pre -Packaged F oods, 
RTCA 67.01.07:10 (Executive Decree No. 37280 of 18 June 2012) , and Manual  for the Interpretation of the 
Central American Technical Regulati on on the General Labelling of Pre -Packaged Foods (Executive Decree 
No. 40454 of  15 May 2017).  
98 Online information. V iewed at:  https://www.inteco.org/page/inteco.faq . 
99 Online information. Viewed at : https://www.inteco.org/page/inteco.tech_committees . 
100 Online information. Viewed at: 
http://www.icccostar ica.com/images/Anticorrupcion/Ponencia_Inteco.pdf ; and online information from INTECO. 
Viewed at: https://www.inteco.org/page/inteco.faq . 
101 Online information. Viewed at: 
http://www.icccostarica.com/images/Anticorrupcion/Ponencia_Inteco.pdf . 
102 Online information. Viewed at: https://www.inteco.org/page/ inteco.standards_public . 
103 Ibid. 
104 Online information. Viewed at : 
http://www.google.ch/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7&ved=2ahUKEwjygaeKqNHfAhVUoXEKHU
0TDAUQFjAGegQICBAC&url=http%3A%2F%2Fwww.hacienda.go.cr%2Fdocs% 2F56eae566bad22_2 -
%2520Inteco%2520(Normalizacion)%2520Felipe%2520Calvo%2520INTECO.pptx&usg=AOvVaw3ST5blzU4VoC
qNUeQ0wt_B . 
105 Online information. Viewed at : https://www.inteco.org/shop . WT/TPR/S/392 • Costa Rica  
 
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  Chart 3.8 Preparation of "technical standards"  
 
Source:  INTECO PowerPoint presentation. Viewed at: 
http://www.icccostarica.com/images/Anticorrupcion/Ponencia_Inteco.pdf . 
3.90.   The ECA accredits conformity assessment bodies ( CABs) such as testing laboratorie s and 
laboratories or bodies  for the certification  of product s, systems or persons; the accreditation 
procedure is voluntary and initiated at the CAB’s request .106 In order to become accredited , they 
must fulfil general and specific requirements, which are listed for each type of CAB in the ECA 
documents and in the  accreditation  criteria, technical regulations and "technical standards". 
Accreditation is granted for an indefinite period, b ut annual monitoring is carried out and an 
assessment is made every four years.107  
3.91.   In 2019 , there were 159 accredited CABs: 112 laborat ories, eight certification bodies, 
32 inspection bo dies, five clinical laboratories, one  verification and validation body and 
one proficiency testing provider. Since 2015 , clinical laboratories and validation bodies for the 
verification of greenhouse gases have also begun  to be accredited.108 
3.92.   LACOMET  is the national laboratory that administers the metrology system and as such the 
custodian of national measurement standards ; it facilitates calibration and measuring instrument 
verification services. However, there are areas in which it lacks the  necessary measurement and 
calibration capabil ity, in which case it designates national reference laboratories. At present (2019) 
there are four designated public laboratories that keep the national measurement standards for 
electricity, large masses and volumes, force and fibre optics.109 
3.3.3   Sanitary and phytosanitary requirements  
3.93.   The main laws on phytosanitary and animal health policies and m easures continue to be the 
Law on Phytosanitary Protection and its implementing regulations; the General Law on the National 
Animal Health Service and its implementing regulation s; and the General Law on Health.  The 
regulatory framework also consists of s ome other laws, decrees and regulations (Table 3.15).  
Table 3.15 Main  legislation on sanitary and phytosanitary matters  
Title Number and date  Most recent  
amendment  
Ministry of Health    
General Law on Health  Law No. 5395 of  30.10.1973  2018 
Microbiological criteria for food safety  Executive Decree No. 41420 of 
21.12.2018.  n.a. 
Central American Regulations on Sanitary and 
Phytosanitary Measures and Procedures  Executive Decree No. 37011 of 
02.12.2011  n.a 
State Phytosanitary Service (SFE)  
Law on Phytosanitary Protection  Law No. 7664 of 02.05.1997  2013 
                                                
106 Document ECA-MP-P01 of 4 January 2017. Viewed at : http://eca.or.cr/acr_proc.php . 
107 Online information. Viewed at : http://eca.or.cr/index.php ; and Document ECA -MP-P01 of 
4 Janua ry 2017. Viewed at: http://eca.or.cr/acr_proc.php . 
108 Article 7  of Executive Decree No. 39508 of 24 August 2015.  
109 Online information. Viewed at : https://www.lacomet.go.cr . 
Proposal
stagePreparation
stageCommittee
stage
Public
consultation
stage
Approval
stagePublication
stageReview
stage
AbolishedPreliminary
stageAccelerated procedure
30 calendar 
days60 calendar 
days
Updated MaintainedWT/TPR/S/392 • Costa Rica  
 
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  Title Number and date  Most recent  
amendment  
Implementing r egulations to the La w on Phytosanitary 
Protection  Executive Decree No. 26921 of 
22.05.1998  2016 
National Animal Health Service (SENASA)  
General Law on the National Animal Health Service  Law No. 8495 of 06.04.2006  2010 
Law for the Control of the Preparation and Retailing of 
Animal Feed  Law No. 6883 of 25.08.1983  1983 
Law on Wildl ife Conservation  Law No. 7317 of 30.10.1992  2017 
Regulations on Sanitary Requirements and Veterinary 
Inspection of Poultry Slaughter and Processing 
Establishments  Executive Decree No. 37548 of 
12.09.2012  n.a. 
n.a. Not applicable.  
Source:  Information provided by the authorities (SENASA and SFE).  
3.94.   The authority responsible for plant and animal health matter s at the primary production level 
is the Ministry of Agriculture and Health (MAG), through the State Phytosanitary Service (SFE) and 
the National Animal Health Service (SENASA), which work with international bodies such as the 
International Plant Protection Convention (IPPC), the OIE  and the Codex Alimentarius. The Ministry 
of Health is responsible for food safety. However, SENASA and the SFE deal with the safety of 
products of animal origin within their spheres of competence , and with maximum residue limits. The 
SFE is the informatio n centre for the WTO.  
3.95.   The objectives of Costa Rica's phytosanitary policy are to help to improve and raise 
agricultural productivity,  promote exports and protect the environment, human and animal health 
and plants . Costa Rica has a Food Safety Policy impl emented by various public institutions including 
the Ministry of Health, MAG and MEIC. Under this policy, all producers and enterprises dealing with 
food must have a system that ensures the quality and safety of their products by means of tools 
such as the  HACCP and voluntary certification.110 
3.96.   SENASA is responsible for animal health, veterinary public health and environmental 
protection. It monitors and controls the stages of production, processing and distribution of animal 
products, and takes action to prev ent, control and eradicate animal diseases and pests; it also 
exercises oversight for the safety of products, by -products and derivatives for human or animal 
consumption. In addition, it establishes and implements the necessary measures for the production,  
use and marketing of genetically modified organisms of animal origin.  
3.97.   The measures taken by SENASA are base d on risk assessment carried out in its official 
laboratory or in national or foreign public or private reference laborat ories. On the basis of its  risk 
assessment, SENASA classifies pests and diseases and determines those on which  the authorities 
must take  mandatory action and those that must be the object of mandatory or voluntary action by 
the private sector. The results of an analysis by an offic ial laboratory or by the reference laboratories 
are a necessary prerequisite for granting or cancelling permits, authorizations or registrations. In 
addition, SENASA has an epidemiological monitoring service to prevent and control diseases, which 
enables t he country to remain disease free. To this end , SENASA carries out inspections and visits 
and may require that health measures be applied on private or public premises if the goods pose a 
threat to veterinary public health or animal health.  
3.98.   SENASA ’s services are aimed at facilitating trade in animals and animal products and 
by-products in international markets. It maintains  border quarantine posts and internal control posts 
to ensure compliance with the sanitary requirements relating to the import or  export of animals and 
animal products and by -products.  
3.99.   With respect to imports, SENASA carries out the necessary risk assessment to determine the 
health conditions that will govern the importation or transit of goods, or to demonstrate the health 
safety of the products and by -products entering or marketed in the national territory for which it is 
responsi ble. These products must be accompanied by  the prior import health permit and 
international veterinary certificate or official certificate of the country  of origin. In the absence of 
these documents, SENASA may slaughter the animals, denature the products or return them to the 
country of origin. Where, following importation of an animal product or by -product, it is found that 
                                                
110 Decree No. 35960 of 3 May 2010.  WT/TPR/S/392 • Costa Rica  
 
- 75 - 
 
  it presents a serious  threat t o health and that the sanitary measures taken do not provide a 
satisfactory level of control, SENASA may suspend the movement of the product and apply the 
corresponding health measures or establish special conditions for the product to be able to move 
within the country or for it to be returned or re -exported.   
3.100.   SENASA determines the health measures required to ensure the safety of animal products 
and by -products intended for human consumption and the suitability of the inputs used in preparing 
them. It supervises and certifies the health safety and quality of animal products and by -products 
intended for human consumption nationally and internationally in accordance with the established 
rules and requirements. To this end, Costa Rica has a national traceabili ty programme for animals 
and animal products and by -products as well as for the inputs and raw materials covered by the 
programme. The programme comprises a number of traceability systems that must comply with the 
principle of national treatment. SENASA al so controls establishments that require a veterinary 
certificate to operate111 and carries out periodic inspections to check on compliance with the health 
requirements laid down for the authorized activities; in the absence of compliance, the certificates 
may be withdrawn.  
3.101.   There is a voluntary certification programme accompanied by a seal of good health. The 
programme is intended for farms and producers or marketers of animal products and by -products 
produced in Costa Rica that comply with good livestock pra ctices, the control of animal diseases that 
are the object of mandatory eradication, the regulation of veterinary medicine and pesticide 
residues, good transport practices, and any other health measure aimed at protecting human health 
and the environment.  
3.102.   The State Phytosanitary Service (SFE) controls and regulates trade in agricultural products 
in the case of both imports  and exports and is responsi ble for the registration, control and regulation 
of chemical and biological substances for agricultural use ( pesticides, fertilizers, biological 
substances and other similar products). It also monitors  and controls economically important pests , 
as well as  pests that are not present in the country but which may represent a threat to domestic 
agricultural productio n.  
3.103.   The SFE is committed to the protection of agricultural resources and contributes to the 
protection of human and environmental health by establishing  phytosanitary measures with a view 
to the sustainable development of the agricultural sector. Its main objectives are to protect plants 
from the effects of pests and avoid and avert the introduction and spread of pests that endanger the 
country's  food security in such a way that the phytosanitary measures do not constitute an 
unnecessary barrier to internat ional trade.112 To this end, in the same way as SENASA in the livestock 
sector, once the SFE establ ishes the existence of a pest of  economic or quarantine importance, it 
may adopt a mandatory phytosanitary measure to fight the pest and stop it spreading. The  SFE may 
also accept foreign phytosanitary measures even if they differ from the Costa Rican measures 
provided the interested party objectively shows that these measures achieve the appropriate l evel 
of protection. For this purpose , in coordination with  COMEX, it  signs bilateral and multilateral 
agreements for  the recognition of the equivalence of foreign phytosanitary measures.113  
3.104.   The SFE monitors the pests present in the country and exercises controls to ensure that new 
pests do not enter the country by me ans of a system of monitoring posts (phytosanitary stations) 
set up randomly throughout the country. In 2018, these stations protected the crops of greatest 
economic importance for the country (rice, bananas, coffee and pineapples). Thanks to this system, 
the measures required to protect crops throughout the country can be applied rapidly. Furthermore, 
in order to prevent or fight pests the SF E may restrict or prohibit the production or transit of plants 
or of any other material , and in the absence of compl iance may destroy them without any 
compensation.  
3.105.   The phytosanitary measures and requirements governing imports of plants and goods of 
plant or igin as well as their packaging  and means of transport are set out in various administrative 
and legal instruments. The SFE must ensure that phytosanitary measures are based on a proper 
                                                
111 Article 56 of the General Law on the National Animal Health Service lists the establishments subject 
to this control.  
112 Law No. 7664 of 2 May 1997.  
113 Idem, Article  6. WT/TPR/S/392 • Costa Rica  
 
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  assessment of the existing risks for human life and health or plant protection and take into account 
the ris k assessment methods developed by the relevant international organizations.   
3.106.   The import, re -export or transit of plants, biological control agents and other types of 
organisms for agricultural use are subject to control and inspection by the SFE. The latter issues 
authorizations for entry based on this inspection, for which it may require laboratory analysis, 
retention, treatment, repackaging, isolation or quarantine following entry. On the recommendation 
of the SFE, MAG promulgates by decree the req uirements for importation or entry in transit, as well 
as exceptions, including the specific entry point where necessary. In order to protect the national 
agricultural sector and where justified on quarantine grounds, the SFE may modify or eliminate any 
import or transit requirement. In order to prevent the introduction of pests it may establish external 
quarantine aimed at restricting or prohibiting importation or entry in transit when required for 
technical reasons, or adopt any other relevant measure.   
3.107.   According to the authorities, the main legal provisions on plant and animal health are 
harmonized with international guidelines. In the phytosanitary area, a number of texts establish the 
phytosanitary requirement for the import ation of plants, plant produc ts and other regulated articles, 
as well as the procedure for the control of imports and exports and the new list of quarantine pests, 
among other matters.  SENASA has published general agricultural and livestock good prac tice guides 
(Table  3.16).114  
Table 3.16 Provisions governing phytosanitary measures, 2013 -18 
Title  Number and date   Most recent 
amendment  
List of regulated pests   n.a.  2018 
Prohibition of registration, import, export, manufacture, 
formulation, storage, distribution, transport, repackaging, 
repacking, handling, sale, mixture and use of active 
ingredients and synthetic pesticides containing endosulfa n Executive Decree 
No. 38834  of 15.05.2014  n.a. 
Establishes the Registry of Importers  of plant products 
together with controls of transport units and warehouses  
with a view to traceability of imported agricultural products   Executive Decree 
No. 36999 of 25.01.2012  2016 
Establishes mandatory phytosanitary requirements for the 
import of fresh avocados originating in the Dominican 
Republic  Resolution No.  086-2016-
ARP-SFE of 22.09.2016  n.a. 
Phytosanitary measures for the establishment of 
phytosanitary requirements for the import of fresh avocados 
(Persea americana ) originating in Mexico  Resolution No. DSFE 003 -
2018 of 29.01.2018  n.a. 
Phytosanitary measures establishing  phytosanitary 
requirements for the import ation of regulated articles 
originating in any country where the avocado sun blotch 
viroid (ASBVd)  pest is present  Resolution No. DSFE 002 -
2018 of 29.01.2018  n.a. 
Procedure for establishing phytosanitary requirements for 
the import ation of regulated articles  Procedure NR -ARP-P0-01 
of 12.02.2019  n.a. 
General regulation s for the veterinary inspection of fishery 
product establishments  Executive Decree 
No. 39010 of 11.12.2014  n.a. 
Central American R egulation s on Sanitary and Phytosanitary 
Measures and P rocedures  Executive Decree 
No. 37011 of 09.01.2012  n.a. 
RTCA 67.06.55:09 Good hygiene practices for unprocessed 
and semi -processed foods , and verification manual  Executive Decree 
No. 37057 of 20.02.2012  n.a. 
RTCA 67.04.54:10 Processed foods and beverages. Food 
additives  Executive Decree 
No. 37294 of 18.06.2012  2017 
RTCA 65.05.63:13 Products used in animal feed. Good 
manufacturing practices and checklist  Executive Decree 
No.  37560 of 15.01.2013  n.a. 
RTCA 67.04.66:12 Pasteurized milk  Executive Decree 
No. 38434 of 28.02.2014  n.a. 
n.a. Not applicable . 
Source:  Information provided by the authorities, online information from SENASA 
(http://www.senasa.go.cr/informacion/legislacion -y-normativa ) and online information from the SFE 
(http:/ /www.sfe.go.cr/SitePages/Normativa/InicioNormativa.aspx ). 
                                                
114 The full list is available at: http://www.senasa.go.cr/informacion/manuales -de-buenas -practicas . WT/TPR/S/392 • Costa Rica  
 
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  3.108.   The SFE is the body responsi ble for notifying sanitary and phytosanitary measures to the 
WTO Committee on Sanitary and Phytosanitary Measures. During the period 2013 -19, Costa  Rica 
submitted  78 notifications (including addenda). Of these, 19 notifications concerned emergency 
measures (11 for plant protection and the others for animal health). As notified, the emergency 
measures are based on international standards. Most of the other measures concerne d plant 
protection as well as protection of the country against pest damage, while the remainder were 
adopted to protect animal health and ensure food safety. In general, the measures notified apply to 
regions or trading partners affected by diseases or pe sts that the Government would like to prevent 
from entering Costa Rica. Most of the measures are base d on international standards; only in a few 
cases is it specified that a relevant international standard does not exist or that the measure does 
not confor m to international rules.115  
3.109.   During the review period, Members question ed three of the phytosanitary and animal health 
measures notified by Costa Rica. Two of these, one relating to maximum residue limits of medicines 
in live animals116 and the other concerni ng the Costa Rican regulation s on the registration, use and 
control of pesticides, were only questioned once by one Member, while Costa  Rica's decision 
temporarily to suspend issuing  phytosanitary certification for the importation of avocad os117 was 
raised on four occasions by different Members. This measure led to a dispute settlement case 
brought against Costa  Rica b y Mexico.118  
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.110.   Costa  Rica's competition policy is governed by the Political Constitution (Article 46), the Law 
on the Promotion of Competition and Effective Consumer Protection (Law No. 7472 of 1994) and the 
General Telecommunications Law  (Law No. 8642 of 2008). The provisions regulating competition 
were not modified during the pe riod under review; however, in 2013 new implement ing regulations 
to Law No. 7472 entered in to force .119 In addition, in 2014 , Costa Rica's competition policy was 
studied  as part of the country 's process of accession to the OECD.120 As a re sult of the ensuing 
recommendations , an Interinstitutional Commission (MEIC, COPROCOM, SUTEL a nd COMEX) drew 
up draft legislation that has been submitted to the Legislative Assembly.121 According to the 
authorities, this draft includes most of the OECD's recommendations (Table  3.4). 
Box 3.4 Main OECD recommendations  
Expand the scope of Law 
No. 7472 to include all economic 
agents  Provide a leniency programme  Establish a single competition 
authority for all sectors  
Grant the competition authority 
more autonomy and financial 
resources  Establish special procedures for 
the analysis of anti -competitive 
practices  Strengthen the competition 
authorities' advocacy powers  
Establish more deterrent 
sanctions  Mergers must be notified in  
advance  Sign and implement international 
cooperation agreements  
Source:  Information provided by the authorities and OECD/BID (2014), Competition Law and Policy in 
Costa  Rica - a Peer R eview . Viewed at : https://www.oecd.org/daf/competition/CostaRica -
PeerReview2014en.pdf .  
3.111.   In principle, the Law on the Promotion of Competition and Effective Consumer Protection 
regulates compet ition in all economic sectors other than telecommunications , which are governed 
by the General Telecommunications Law. Accordingly, all economic operators (other than those in 
                                                
115 Sanitary and Phytosanitary Information Management System . Viewed at:  
http://spsims.wto.org/en/SpecificTradeConcerns . 
116 WTO Document G/SPS/N/CRI/136 of 11 March 2013.  
117 WTO Documents G/SPS/N/CRI/160 of 5 May 2015 and G/SPS/N/CRI/160/Add.1 of 12 May 2015.  
118 WTO Document WT/DS524/1 of 13 March 2017.  
119 Executive Decree No. 37899 of 8 July 2013 replacing Executive Decree No. 36234 of 
30 December  2010.  
120 OECD/IDB (2014), Competition Law and Policy in Costa Rica, a Peer Review . Viewed at : 
https://www.oecd.org/daf/competition/CostaRica -PeerReview2014en.pdf . 
121 Law on Strengthening the Competition Authorities of Costa Rica, Bill No. 21303.  WT/TPR/S/392 • Costa Rica  
 
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  the telecommunications sector), both public and private, whether or not establis hed in Costa  Rica, 
are in principle subject to the La w on the Promotion of Competition and Effective Consumer 
Protection. However, the Law excludes from its scope operators who: (i) have a concession to 
provide public services pursuant to a law;  (ii) perform acts authorized by special laws;  or (iii) fall 
under the State monopoly regime (Table  3.17)122; nor are municipalities subject to the Law.123 
Table 3.17 Exceptions to the competition law, 2019  
Enterprise or ent ity Servic e or sector  Excluded activities  
Holders of public service concessions pursuant to a law  
Correos de Costa Rica S.A.  Social service - postal 
communication  
All acts performed in the provision of the 
services indicated  Costa Rican Electricity Institute (ICE)  
Heredia Public Services Company 
(ESPH)  
Cartago Electricity Board (JASEC)  Electricity generation  and 
distribution  
Costa Rican Railway Institute  
(INCOFER)  Rail transport  
National Insurance Institute (INS)  Work-related risk  
insurances and mandatory 
motor vehicle insurance  
Acts duly authorized by specific laws  
Agro-industrial Sugar Cane  League 
(LAICA)  Sugar  Fixing production quotas and sale prices  
National Rice Growers Corporation 
(CONARROZ)  Rice Import ing paddy ric e and distributing it 
among industry operators  
Coffee Institute of Costa Rica (ICAFE)  Coffee Fixing profit margins for bean processors 
(who process coffee cherries after the 
harvest and up to roasting) and for 
exporters  
Shipping companies  Maritime transport  Agreements on rates and distrib ution of 
routes among competitors ( Liner 
Conferences ) 
Professional colleges   Professional services  Setting reference fees 
State monopolies  
National Spirituous B everages Factory 
(FANAL)  Alcohol  Production and importat ion of ethyl alcohol 
for spirit manufacturers  and industrial 
purposes  
Costa Rican Petroleum Refinery 
(RECOPE)  Fuels Importing, refining and wholesaling crude 
petroleum and  its derivatives  
Social Protection Board  (JPS) Lotteries and bingo s Lotteries , bingos  and the like  
Source:  Information provided by the authorities.  
3.112.   According to the OECD, as a result of these exemptions about one third of the economy is 
not subject to the competition regime. However, this  proportion could be much higher given that 
some of these sectors provide inputs for other sectors.124 
3.113.   The Commission for the Promotion of Competition (COPROCOM) is the authority responsi ble 
for implementing the competition regime. It investigates and sancti ons anti -competitive practices 
and approves mergers in all sectors of the economy other than telecommunications and those 
exempted from the competition regime. In the case of telecommunications, the Supervisory 
Authority for Telecommunications (SUTEL) is t he competition authority and therefore assumes 
COPROCOM's funct ions in this sector. I n the financial sector , COPROCOM investigates 
(and sanctions) anti -competitive practices , but the supervisory authorities approve mergers. There 
are mechanisms for consult ation between COPROCOM and SUTEL and the financial sector 
supervisory authorities. COPROCOM does not have authority over economic operators in sectors that 
are exempted from the competition regime.  
3.114.   COPROCOM is attached to MEIC; it has neither  budgetary nor administrative independence 
and lacks specific legal personality , so its staff must call upon the Attorney General's O ffice to defend 
its decisions in court. One of the OECD's recommendations is to strengthen COPROCOM's 
                                                
122 Article 31  of Executi ve Decree No. 37899 of 8 July 2013.  
123 Information provided by the authorities.  
124 OECD (2018), OECD Economic Surveys: Costa Rica 2018 . Viewed at: 
http://www.o ecd.org/eco/surveys/Costa -Rica-2018-Estudios -Economicos -de-la-OCDE.pdf . WT/TPR/S/392 • Costa Rica  
 
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  independence or create a wholly ind ependent institution with sufficient human resources to carry 
out the necessary activities.125  
3.115.   The Law  on the Promotion of Competition and Effective Consumer Protection prohibits 
monopolies, both public and private.126 Pursuant to the Constitution, the creation of a public 
monopoly requires the favourable vote of two thirds of all deputies of the National As sembly.127 In 
March 2019 there were public monopolies in the following sectors: (a) manufacture and marketing 
of spirits (FANAL); (b) importing, refining and wholesaling of petroleum and petroleum products 
(RECOPE); and (c)  lotteries  and bingos  (JPS) . 
3.116.   Absolu te monopolistic practices (horizontal agreements) are prohibited in Costa Rica and 
deemed  legally null and void.128 Absolute monopolistic practices exist where competing operators 
agree to  fix prices, limit supply, distribute the market, coordinate bids in t endering processes and 
refuse to trade  specific goods or services.129 
3.117.   Relative monopolistic practices (vertical agreements) are also prohibited. Such practices 
exist where operators that are not competing among themselves agree to exclude other market 
operat ors or prevent their access, or create exclusive advantages for third parties.130 However, these 
practices are prohibited only if it is found that the economic operator engaging in them has 
substantial power in the relevant market.  This is determined on the basis of a number of criteria; in 
particular , account is taken of market share, but other factors are also evaluated, such as the 
existence of barriers to entry.131 The Law on the Promotion of Competition and Effective Consumer 
Protection does not specify th e threshold of substantial power.132 These relative monopolistic 
practices may possibly not be sanctioned when their effect promotes competition in the market, 
such as practices that could help to improve production systems, marketing conditions, 
competitiveness, supply and innovation or to lower prices.133 
3.118.   COPROCOM investigates pos sible monopolistic practices (both absolute and relative) either 
ex officio or in response to a complaint.134 Where a monopolistic practice exists, COPROCOM 
determines the measures needed to eliminate the market distor tion and re -establish competitive 
conditions.  It also fines the economic operator; the amount of the fine depends on the type of 
offence.135 
3.119.   Costa  Rica does not have a leniency programme to lower (partially or entirely) the fines of 
economic operators who co operate in the investigations. According to the OECD, the introduction of 
such a programme would help to combat monopolistic practices more effectively.136  
3.120.    Mergers  whose total assets or income exce ed the threshold of 30,000  times the minimum 
wage must be n otified to COPROCOM, failing which penalties are imposed .137 The notification must 
be submitted to COPROCOM before the merger takes place or within five workin g days thereafter.138 
                                                
125 Ibid. 
126 Article 10  of Law No. 7472 of 20 December 1994.  
127 Article 46 of the Constitution.  
128 Article 11 of Law No. 7472 o f 20 December 1994.  
129 Ibid. 
130 Online information. Viewed at: 
https://www.coprocom.go.cr/tramites_y_servicios/investigacion_de_practicas_monopolisticas/practicas_mono
polisticas_relativas.html . 
131 Articles 12 -15 of Law No. 7472 of 20 December 1994.  
132 In the telecommunications market , an operator has substantial power w hen its market share exce eds 
25%, either by the number of clients, the volume  of sales (traffic), income or a combination of these and other 
factors (Article 12 of the Regulations on Telecommunication Network Access and Interconnection. Online 
information.  Viewed at: https://sutel.go.cr/normativas ). 
133 Article 12  of Law No. 7472 of 20 December 1994, and Article 52  of Executive Decree No. 37899 of 
8 July 2013.  
134 Article 32  of Executive Decree No. 37899 of 8 July 2013.  
135 For further information on the amount of fines, see Article 28 of Law No. 7472 of 20 December 1994.  
136 Online information. Viewed at: http://www.acodeco.gob.pa:8080/RE CAC/foro/Clemencia -
CostaRica.pdf ; and OECD (2014), Competition Law and Policy in Costa  Rica. Viewed at : 
https://www.oecd.org/daf/competition/CostaRica -PeerReview2014en.pdf . 
137 WTO Document WT/TPR/S/286/Rev.1 of 27 November  2013.  
138 Article 16  of Law No. 7472  of 20 December 1994 , and Article 46  of Executive Decree No. 37899 of 
8 July 2013.  WT/TPR/S/392 • Costa Rica  
 
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  Mergers may be refused, authorized, or authorized under conditions. In the latt er case, COPROCOM 
imposes the conditions it considers appropriate to offset pos sible anti -competitive effects or 
encourage competition. For this purpose it has the power to limit the geographical scope of operation 
or type of clients, or to oblige the oper ator to provide specific product s to specific clients or to 
competitors.139 Mergers may be authorized even when  they dist ort competition if they have a 
positive effect on  the market.140  
3.121.   In the analysis of mergers, the principle of favourable presumption is ad opted, i.e. in the 
absence of proof to the contrary it is presumed that the object or effect is not to acquire or increase 
substantial market power significantly, facilitate explicit or tacit coordination among competitors or 
reduce, hinder or prevent competition or free competition fo r goods or services that are the same , 
similar or substantially related , in the following cases: (i) where none of the enterprises concerned 
carries out economic activities in the same market or related markets within the production and 
marketing process; (ii) where the share of those involved in the markets is not sufficiently large as 
to be likely  significantly to affect competition; (iii) where an economic operator acquires exclusive 
control of one or more enterprises or parts of an en terprise over which it already has partial control; 
and ( iv) where the economic operator resulting from the merger does not carry out or intend to 
carry out activities within the national territory, or where such activities are marginal.141 
3.122.   COPROCOM's decisi ons may be challenged by appeal to a higher administrative authority 
and, if that fails , before the court hearing administrative disputes.142 Since 2013 there have been 
four appeals against COPROCOM decisions.  
3.123.   Over the period 2013 -18, COPROCOM initiated 110  investigations into anti -competitive 
practices: 58 of them were initiated ex officio and 52 in response to a complaint (Table 3.18). The 
markets investigated include agribusiness, the pharmaceutical and chemical industry, freight 
transport and banking. Penalties were imposed in the cases where there existed price or sales 
volume agreements, supply restrictions, tied sales, exclusivity contracts and delays in the provision 
of information, among other matters.143 During this period , 177 mergers were authorized , seven of 
them under conditions, and one was refused ( Table  3.18).  
Table 3.18 Competition data , 2013 -18 
 
2013  2014  2015  2016  2017  2018  
Monopolistic practices   
Investiga tions   13 23 22 22 14 17 
Ex officio  7 13 14 8 6 4 
In response to a complaint  5 10 8 14 8 13 
Practices sanctioned   1 2 1 0 0 1 
Absolute monopolistic practices   0 1 1 0 0 0 
Relative monopolistic practices  1 1 0 0 0 1 
Mergers   
Notifi ed  8 26 24 37 37 46 
Authorized   8 26 24 37 37 45 
Authorized with conditions  0 1 2 0 2 2 
Refused  0 0 0 0 0 1 
Sanctioned   0 0 0 0 0 0 
Source:  Information provided by the authorities.  
3.124.   COPROCOM may also put forward comments on regulatory changes. Since 2013 it has 
presented comments on the draft Law for the St rengthening of the Competition  Authorities of 
Costa  Rica, the regulation of rice prices , parallel imports of medicines and the revisio n of technical 
regulations.144  
                                                
139 Articles 16 and 28  of Law No. 7472  of 20 December 1994 , and online information.  Viewed at : 
https://www.meic.go.cr/meic/documentos/gs58ry7cg/guiaobligatoriaconcentraciones.pdf . 
140 Article 16  of Law No. 7472  of 20 December 199 4, and Article 46 of Executive Decree No. 37899 of 
8 July 2013.  
141 Article 53  of Law No. 7472  of 20 December 1994 . 
142 Article 64  of Law No. 7472  of 20 December 1994,  and Article 158  of Executive Decree No. 37899 of 
8 July 2013.  
143 Information provided by the authorities.  
144 Online information. Viewed at: https://www.coprocom.go.cr/buscador/Default.aspx?tipobuscador=1 . WT/TPR/S/392 • Costa Rica  
 
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  3.125.   COPROCOM does not have powers to take a position on acts of unfair compe tition, which 
may only be challenged through judicial channels.145 
3.3.4.2   Consumer protection   
3.126.   The Law on the Pro motion  of Competition and Effective Consumer Protection and its 
implementing regulations also regulate consumer protection. Changes have been introduced since 
2013 in order to ensure that "consumer protection in the sphere of electronic commerce may not be 
less than for other forms of trade146" (Table  3.19). Thus, trade requirements have been established 
for online sales of goods and services: these include for example (a)  in the case of refunds, re paying 
the entire amount paid within a ma ximum period of eight days ; (b) clear and full identif ication of 
the e nterprise and the goods and services being marketed as well as the payment method; 
(c) indica tion of the final price (including taxes ); (d) providing safe and reliable means of payment ; 
(e) establ ishing free mech anisms for complaints and evaluations; (f)  prohibition of the use of 
misleading advertising; and (g) protection of the personal data of consumers.  
Table 3.19 Main legislative changes concerning consumer protection, 2013 -18 
Legislation  Number and 
date Latest 
amendment  Changes introduced during 
2013 -18 
Law on the Promotion of 
Competition and Effective 
Consumer Protection  Law No. 7472 
of 20.12.1994  2016 New requirements for information on 
allergenic ingredients (Articles  33-34)  
Regulations to the Law on the 
Promotion of  Competition and 
Effective Consumer Protection  Executive 
Decree 
No. 37899 of 
08.07.2013  2017 New trading obligations for persons 
engaged in e-commerce  (Articl e 133 
and Articles  245-264) 
Source : WTO Secretariat . 
3.127.   In 2017 , the Ministry of the Economy, Industry and Trade (MEIC) set up the Electronic 
Commerce Observatory for the purpose of monitoring websites to detect fraudulent trade practices 
(such as misleading advertising ).147 In 2017 , it inspected 600 websites and requested 13  enterprises 
to correct some trade p ractices.148 In the absence of compliance with its instructions, MEIC may 
initiate a complaint procedure with the National Consumer Co mmission th at may lead to a fine.149  
3.3.4.3   Price controls  
3.128.   The G overnme nt is empowered to regulate sales prices, but only for a specified time and in 
abnormal circumstances, in other words cases of force majeure,  shortages, or a monopolistic or 
oligopolistic situation in the  production or sale of goods and services.150 Prices are regulated by 
means of an executive decree issued by MEIC; they are reviewed every six months, or at any time 
at the request of the interested  parties.151 
3.129.   MEIC, through its Directorate for Economic and Ma rket Investigations (DIEM) , or any other 
government entity or a third party  may request the regulation of the price of a good or service .152 
DIEM may consult COPROCOM concerning price regulation involving a monopoly or oligopoly . While 
                                                
145 Acts of unfair competition are acts contrary to good trading practices, such as imitating or 
reproducing t rademarks, commercial names  and so forth. Article 17  of Law No. 7472 of 20 December 1994, 
and online information. Viewed at : https://www.meic.go.cr/meic/documentos/qcr50f58s/guiapracticasanti.pdf . 
146 MEIC press release. Viewed at: https://www.meic. go.cr/meic/comunicado/886/ocde -avala -acciones -
de-costa-rica-en-proteccion -al-consumidor.php . 
147 Online information. Viewed at: 
https://www.consumo.go.cr/estudios/ob servatorio_de_comercio_electronico.aspx . 
148 MEIC (2017), Fiscalización de mercado en comercio electrónico , December. Viewed at: 
https://www.consumo.go.cr/estudios/observatorio%20de%20comercio%20electronico/InformeComercioElectro
nico2017.pdf . 
149 Online information. Viewed at: https://www.meic.go.cr/meic/comunicado/886/ocde -avala -acciones -
de-costa-rica-en-proteccion -al-consumidor.php . 
150 Article 5  of Law No. 7472 of 20 December 1994.  
151 Ibid. 
152 Articles 15 and 25  of Executive Decree No. 37899 of 8 July 2013.  WT/TPR/S/392 • Costa Rica  
 
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  COPROCOM's opinion is not binding, if DIEM does not take its comments into account it must justify 
its decision.153  
3.130.   Currently (2019) only the price of rice is regulated. A reference producer price is established 
for paddy rice, while floor and ceiling prices are fixed for the sa le of all qualities of milled rice.154 
During the review period, COPROCOM recommended that all rice price controls  be abolished .155 
3.131.   The Public Services Regulatory Authority (ARESEP) fixes prices and  rates for public services, 
which include airport services, dr inking water  supply , sewage and drains, bus passenger transport, 
maritime passenger cabotage transport, the supply of fuels, the postal service, electricity, tolls, port 
services, irrigation services, taxis and rail transport (freight and passengers).156 The Ministry of 
Public Works and Transport (MOPT) regulates the tariffs for maritime cabotag e for the transport of 
goods and vehicles.157 
3.3.5   State trading, s tate-owned enterprises, and privatization  
3.132.   The State still plays a leading role in Costa Rica's economy. There were no substantial 
changes concerning State enterprises during the period under review. However, in order to achieve 
better performance by State -owned enterprises and autonomous instituti ons and promote 
transparency in management and decision -taking, guidelines were issued that revised the functions 
of governing bodies, internal controls and the rendering of accounts.158 A draft Law (No.  20909) to 
align the corpora te practices of public ente rprises such as the ICE and the INS is also in the 
pipeline.159 
3.133.   An Advisory Unit for the management and c oordination of State -owned companies and the 
management of autonomous i nstitutions was established in 2017 for the purpose of systematizing 
information o n the performance of public enterprises and autonomous institutions and to carry out 
periodic audits to ensure that they perform well. However, only some State -owned  enterprises (15) 
and autonomous institutions (19) are coordinated by this Unit.  The former  include the Banco de 
Costa Rica (BCR),  Banco Hipotecario de la Vivienda (BANHVI) and Banc o Nacional de Costa Rica 
(BNCR),  Costa Rican Electricity Institute (ICE), National Insurance Institute (INS), Atlantic Coast 
Port Administration and Economic Developm ent Board (JAPDEVA) and Costa Rican Petroleum 
Refinery (RECOPE); the autonomous institutions include the Central Bank of Costa Rica (BCCR), the 
Public Service Regulato ry Authority (ARESEP) and the Costa Rican Social Security Fund (CCSS).160  
3.134.   Depending on  their legal form, State -owned  enterprises in Costa Rica may be State public 
enterprises (21), non -State public enterprises (6) or autonomous institutions (35). All of these 
enterprises are entirely State -owned. In addition there are 50 non -State public entiti es, some of 
which conduct commercial activities, such as the BANHVI, CONARROZ, the Cartago Electricity Board  
(JASEC) o r the Agro -Industrial Sugar Cane League (LAICA). Other non -State public entities have 
been created only to promote a particular industry a nd do not carry on any marketing or foreign 
trade activities, such as the Livestock Promotion Corporation (CORFOGA), the National Banana 
Corporation (CORBANA) and the National Horticultural C orporation (CHN).  
3.135.   Most of these S tate entities operate  in the se rvices sector, and above all the financial sector, 
including both banking and insurance, and the telecommunications and electricity sectors. The ICE 
remains the largest operator. In addition, RECOPE has a monopoly for the importation and refining 
                                                
153 Idem, Article 23.  
154 Executive  Decree No. 38884 of 24 February 2015.  
155 COPROCOM Opinion s 03-14 of 11 February 2014 and 02 -2017 of 18 April 2017, provided by the 
authorities.  
156 Online information. Viewed at: https://ares ep.go.cr . 
157 MOPT Resolution No. 001 of 8 November 2010.  
158 General Directive of 19 February 2018  revising the functions of management bodies and 
strengthening their strategic role in State -owned enterprises and autonomous institutions, and Overall Policy 
on Transparency and Disclosure of Financial and Non -Financial Information for State -owned enterprises,  Their 
Subsidiaries, and Autonomous Institutions  (Direct ive No. 102 of 06.04. 2018).  
159 Online information. Viewed at: https://cdn.delfino.cr/wp -content/uploads/2018/08/Proyecto -
20909.pdf . 
160 Law for the Creation of the  Advisory Unit for the Manage ment and Coordination of State -Owned 
Companies  and Man agement of Autonomous Instituti ons (Executive Decree No. 40696 -MP of 
20 October  2017).  WT/TPR/S/392 • Costa Rica  
 
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  of hydroc arbons (Section 4). Some of these S tate entities also have their own procurement systems. 
The value added of the main public institutions in 2017 was the equivalent of 5.9% of GDP (6.5% 
in 2013).161 
3.136.   In 2018 , Costa Rica notified that it had trading enterprises within the meaning of GATT 
Article  XVII. The enterprises notified were: LAICA ; RECOPE ( State enterprise); CORFOGA; the Costa 
Rican Coffee Institute (ICAFE); and CONARROZ.162 According to this notifi cation, CORFOGA promotes 
cattle -raising  in Costa  Rica but does no t have any marketing or foreign -trade -related activities. 
CONARROZ may play a part in rice marketing through importing rice supply quotas. ICAFE has the 
faculty to purchase and sell coffee inside or outside the  country but does not do so i n practice. The 
activities of the National Spirituous Beverages Factory (FANAL) have not been notified to the WTO . 
3.3.6   Government procurement   
3.137.   The procedures for public  procurement of goods, services and works are governed by the 
Constitution and the Government Procurement Law and its implementing regulations (Table 3.20). 
The Government Procurement Law provid es that public entities may issue supplementary internal 
rules to improve the procurement process.163 It covers all public entit ies, with the exception of 
non-State public entities over 50% of whose financing comes from their own resources, and public 
enterprises in which the public sector has a minority share holding . Furthermore, it does not apply 
to public entities that have their own specific procurement systems such as the ICE, JASEC, INS, 
INCOFER and the CCSS.  
3.138.   The Government Procurement Law was modified on various occasions during the period 
under review. One of th e main changes was the introduction in 2016 of a unified digital procurement 
system, the Integrated Government Procurement System (SICOP), which has gradually been 
replacing the CompraRED and the Online Purchasing  System (Mer -Link). The use of CompraRED wa s 
compulsory for the Central Government , while other public entities used Mer -Link. Almost 70% of 
entities were using  SICOP  in 2019. However, the government procurement s ystem is still not 
centralized. Among the other changes made during the review period,  since 2018 the participation 
of grouped MSMEs in tendering processes was authorized. The implementing regulations to the 
Government Procurement Law were also revised in 2013, inter alia, to regulate the use of framework 
agreements (since 2016).  
Table 3.20 Main legislation governing government procurement  
Title Number and date   Most recent 
amendment  
Government Procurement Law  Law No. 7494 of 02.05.1995  2018 
Regulations implementing the Government Procurement 
Law  Executive Decree No. 33411 
of 27.09.2006  2018 
General Law on the Concession of Public Works involving 
Public Services  Law No. 7762 of 14.04.1998  2018 
General Regulations on the Concession of Public Works 
involv ing Public Services  Executive Decree No. 27098 
of 12.06.1998  2012 
Law on Financial Administration and Government Budgets  Law No. 8131 of 18.09.2001  2018 
Regulation s implementing  the Law on Financial 
Administration and Government Budgets  Executive Decree No. 32988 
of 31.01.2006  2018 
Law Organizing  the Office of the Comptroller General of 
the Republic  Law No. 7428 of 07.09.1994  2018 
Regulations for the Use of the SICOP  Integrated 
Government Procurement System  Executive Decree No. 
41438 -H of 12 October 2018  n.a 
Source:  WTO Secretariat.  
3.139.   The objective of government procurement is the efficient use of institutional resources for 
the purpose of satisfying the public interest. Accordingly, at all stages of procurement the most 
suitable offer fulfilling the terms and conditions previously established in the bidding documents shall 
be selec ted.  
                                                
161 Information provided by the BCCR.  
162 WTO Document G/STR/N/17/CRI of 23 November 2018.  
163 Article 109  of Law No. 7494 of 2 May 1995.  WT/TPR/S/392 • Costa Rica  
 
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  3.140.   Government procurement procedures must respect equality in participation by all bidders. 
Thus, the procurement specifications may not include any clause hindering competition among 
bidders. While the law states that the participation of foreigners is governed by the principle of 
reciprocity, in practice they are given national treatment. Howev er, in any government procurement 
operation , preference must be given to domestic products when the quality is equivalent, supplies 
are adequate and the price is  equal to or lower than that of the imported product.164 In these cases, 
for the purposes of comp aring domestic and foreign manufacturers' prices, customs duties and any 
other import costs must be added to the price of the foreign good even where the purchasing entity 
is exempted from paying them. This provision applies only for comparison purposes an d does not 
entail the obligation to award a specific number of contracts.165  
3.141.   The entities responsible for the government procurement process are the Office of the 
Comptroller General of the Republic (CGR), the Directorate -General of Goods Administration and  
Government Procurement (DGBCA) in the Ministry of Finance, and the specialized units within each 
of the public agencies. There is no single body that provides centralized oversight .  
3.142.   There are three ordinary government procurement procedures: open competi tive bidding, 
abbreviated competitive bidding and auctions . Bidding may take various forms, such as pre -qualified 
bidding,  bidding wit h financing and reverse auctioning ( Table 3.5). Apart from the ordinary 
procedures, direct award of contracts may be used in the case of low -value contracts; this is an 
exception to the use of the normal procedures. There are also framework agreements for the 
procurement of specific common and continuously used goods or services. The procedure for the 
procurement of goods and  services by means of "administrative procurement principles" must be 
followed by non -State public entities and private entities using public funds. These entities must 
have procurement regulations that ensure that they respect the principles of efficiency , equality and 
transparency. The law also allows for other procurement procedures or forms that foster the public 
interest (Article  55). In emergencies, in order to safeguard the public interest and prevent serious 
injury, some or all of the formalities of  the procurement procedures may be waived, and substitute 
procedures may also be established (Article 80).  
Box 3.5 Government procurement procedures and modalities  
Ordinary procedures  
Open c ompetitive bidding  must be used for: the purchase of goods; concession of public installations; 
contracts where the value cannot be determineda; and  framework agreements.  
Competitive bidding with international publication may be used if it is deemed in the public in terest or where 
this has been agreed with the international public entity financing the procurement. In this case the tender 
specifications are published not only in La Gaceta  but also in foreign newspapers or circulated by means of 
trade and diplomatic re presentative office s or electronic procurement systems.  
In the case of abbreviated competitive bidding , the procuring agency has to invite a minimum of 
five accredited suppliers listed in the relevant register of suppliers.   
Auctions are the ordinary competitive procedure to which the Administration may resort as an alternative 
for the sale or leasing of property or immovable goods when this is in its best interest s. 
Modali ties 
Bidding with prequalification consists in prior selection of  the participants in the bidding (whether open 
competitive or abbreviated procedure). The selection is made according to the supplier’s characteristics 
(technical, financial, etc.).  
Bidding with financing is used where the Administration does not have the necessary financial resources 
when opening the tender  procedure and the supplier  must provide them. Before initiating this procedure the 
Administration must have the relevant authorizations to incur the debt. Where any of the authorizations 
requires that the information in the financial offer should be available, the authorization must be obtained 
before the contract is awarded. The Administration must have the necessary budgetary provisions to cover 
the debt it is incurring.  
                                                
164 Industrial Production Incentives Law, Annex A:  Central American Import Tariff, Law No. 7017 of 
16 December 1985; and Implementing Regulations to Article 12 of Annex 3 to Law No. 7017 " Industrial 
Production I ncentive s Law, Annex A:Central American Import Tariff", No. 32448 of 28 April 2005.  
165 Ibid. WT/TPR/S/392 • Costa Rica  
 
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  The reverse aucti on procedure is used where generic products are to be acquired (mass consumption 
goods). The procedure is established as part of the (open  or abbreviated ) tender in which  the Administration 
stipulates  that participants shall propose a base price in their o ffers which must be improved in the bidding 
process.  
Excep tion to the use of the ordinary procedures  
Direct procurement for low -value contracts is used when the ordinary competitive procedures are not 
appropriate in accordance with the established thres holds. In these cases , the Administration must invite at 
least three suitable potential suppliers, if they exist, and award the contract to the lowest bid, without 
prejudice to the appreciation of other factors considered relevant which must be set out in the invitation. The 
Administration must study all the bids submitted  in the competition regardless of whether they come from 
enterprises that were invited or not.  
a These are cases where it is difficult or impo ssible to calculate the exact amount of the contract, 
owing to the particularities of the good or s ervice: for example, the hiring of attorneys for an 
institution's legal proceedings since the amount of their fees cannot be known in advance.  
Source:  WTO Sec retariat, information base d on the Government Procurement Law and its Implementing 
Regulations, and online information from the Office of the Comptroller General. Viewed at: 
https://www. cgr.go.cr/02 -consultas/pf/ca/ca -menu.html .  
3.143.   The Law provides for specific exceptions to the use of the competitive procedures.166 These 
include: (1) procurement which, by its nature or the circumstances, cannot be put to public 
competition or where  it is not  appropriate to do so, because there is only a single supplier or for 
special security reasons; (2) where the goods and services or works are highly complex or specialized 
and therefore can only be obtained from a limited number of suppliers, so that for r easons of 
economy and efficiency the use of the ordinary procedures is not appropriate; (3) where the 
Administration, having already acquired technological equipment, decides to purchase further 
products from the same contractor in the interests of standar dization or to ensure compatibility with 
the equipment it is already using.  
3.144.   The ordinary government procurement procedure in Costa Rica is determined according to 
the public entity' s budget and the contract amount. There are therefore different thresholds for each 
type of procedure. Every year the CGR establishes the thresholds for purchases of goods and services 
as well as other thresho lds for procurement of works (Table 3.21).167 Purchases of goods and 
services may not be split up in order to modify the pro curement procedure. However, the public 
entity may use more rigorous procedures than would ordinarily apply according to the type or 
amount of the contract in order to safeguard the public interest.  
Table 3.21 Ordinary government procurement procedures, 2019  
(In CRC)  Category by 
value  Procurement budget for goods 
and services  Government procurement thresholds  
Direct 
procurement  Abbreviated competitive 
bidding  Open 
competitive 
bidding  
> ≤ < ≥ < ≥ 
A 76,400,000,000  95,600,000 95,600,000 663,000,000 663,000,000 
B 51,000,000,000 76,400,000,000 29,670,000  29,670,000 571,000,000 571,000,000 
C 25,500,000,000 51,000,000,000 26,700,000 26,700,000 400,000,000 400,000,000 
D 12,740,000,000 25,500,000,000 23,740,000 23,740,000 285,700,000 285,700,000 
E 2.550 ,000,000 12,740,000,000 20,770,000 20,770,000 200,000,000 200,000,000 
F 1,274,000,000 2,550,000,000 17,800,000 17,800,000 171,400,000 171,400,000 
G 764,000,000 1,274,000,000 14,840,000 14,840,000 114,300,000 114,300,000 
H 255,000,000 764,000,000 8,900,000 8,900,000 85,700,000 85,700,000 
I 76,400,000 255,000,000 5,930,000 5,930,000 57,100,000 57,100,000 
J  76,400,000 3,000,000 3,000,000 28,570,000 28,570,000 
 
                                                
166 Article 2 and 2  bis of Law No. 7494 of 2 May 1995.  
167 Online information. Viewed at: https://www.cgr.go.cr/02 -consultas/consulta -limites -ca.html . WT/TPR/S/392 • Costa Rica  
 
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Category by 
value   
Procurement budget for works   Government procurement thresholds  
Direct 
procurement  Abbreviated competitive 
bidding  Open 
competitive 
bidding  
> ≤ < ≥ < ≥ 
A 76,400,000,000  148,400,000 148,400,000 1,029,000,000 1,029,000,000 
B 51,000,000,000 76,400,000,000 46,040,000 46,040,000 886,000,000 886,000,000 
C 25,500,000,000 51,000,000,000 41,430,000 41,430,000 621,000,000 621,000,000 
D 12,740,000,000 25,500,000,000 38,840,000 38,840,000 443,300,000 443,300,000 
E 2,550,000,000 12,740,000,000 32,230,000 32,230,000 310,300,000 310,300,000 
F 1,274,000,000 2,550,000,000 27,620,000 27,620,000 265,900,000 265,900,000 
G 764,000,000 1,274,000,000 23,030,000 23,030,000 177,300,000 177,300,000 
H 255,000,000 764,000,000 13,810,000 13,810,000 133,000,000 133,000,000 
I 76,400,000 255,000,000 9,200,000 9,200,000 88,600,000 88,600,000 
J  76,400,000 4,700,000 4,700,000 44,330,000 44,330,000 
Note:  The CGR updates the thresholds by the second half of February of each year at the latest.  
Source:  Article 27  of Government Procurement Law (Law No. 7494) of 2 May 1995, as amended by 
Comptroller General of the Republic Resolution  R-DC-14-2019 of 21 February 2019.  
3.145.   Special procurement procedures are used by the Costa Rican Electricity Institute (ICE), 
Cartago Electricity Board (JASEC), Costa Rican Railway Institute  (INCOFER), National Insurance 
Institute (INS) and Costa Rican Social Security Fund (CCSS).  The principl es of the Government 
Procurement Law  (Law No. 7494) apply to these special procedures. Nonetheless, in these cases the 
thresholds for using the different procedures may be higher. Procurement by the CCSS uses special 
procedures that are regulated by the Co mptroller General of the Republic.168 In the case of the INS, 
procurement is governed by the G overnment  Procurement Law , but the purchase of goods, services 
or works that are essential for its operations are exempted from the ordinary procedure under the 
Law in order to speed up the procurement (Table 3.22). This procurement is governed by the INS  
Handbook of Administrative R ules, which specifies that open competitive bidding  should be used to 
select suppliers regardless of the procurement threshold.  All inte rested suppliers may participate in 
the competition, although it is also po ssible for the INS to invite only a limited number (which must 
be higher than three) .169  
Table 3.22 INS: exceptions to the ordinary pro cedures, 2019  
Excep tions  
Technological equipment, hardware and 
software  Contracts between the INS and its limited companies or 
companies in which it has share holdings  
Reinsurance and accesso ry insurance  Property (immo vable) worth not more than 50,000 
Development U nits (UD)  
Trusts  Advertising, communication, marketing and corporate 
image services worth not more than 50,000 UD  
Insurance or financial intermediation services, 
including the distribution of self-issue 
insurance  Advisory and consultancy  services worth not more than 
USD 50,000  
Strategic alliances to develop and improve 
INS activities  Training services worth not more than USD 50,000  
Source:  Articles 7 -9 of National Insurance Institute Law (Law No. 12) of 30 October 1924.  
3.146.   In order to promote the development of SM Es, under the coordination of MEIC a procurement 
programme for goods and services has been established to ensure that they obtain  a minimum share 
in the total amount of procurement b y government institutions or entities. Und er this programme, 
Costa Rican SM Es that offer a suitable supply of products of equivalent quality to imported products 
at a price that is equal to or lower than the latter will be given preference over other bidde rs. With 
respect to payment methods, delivery point s or timelines and comparison parameters, SM Es must 
                                                
168 Law No. 6914 of 28 November 1983.  
169 Titles IV and XXVIII of the Handbook may be viewed at: http://portal.ins -cr.com/PortalINS/D1 -
InformacionProdContenido.aspx?NRMODE=Published&NRORIGINALURL=%2Fportal%2Eins -
cr%2Ecom%2FAccesos%2FProveedores%2FNormativa%2Ehtm&NRNODEGUID=%7BA973C1 98-CCE4 -4D84 -
AFB9-1720AA6F98D6%7D&NRCACHEHINT=Guest . WT/TPR/S/392 • Costa Rica  
 
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  not be discriminated against in comparison with larger companies. In addition, procedures to 
facilitate procurement formalities for SMEs will be establis hed.170  
3.147.   With the aim of increasing the participation of development associations in government 
procurement processes, the Government will give preference to associations set up in accordance 
with the Community Development Law (DINADECO)171, provided there is no SME among the bidders.  
For this rule to apply, the association must fulfil all the requirements of the tender specifications and 
meet the public interest. In the event of a draw with an SME, however, the latter will have 
preference.172  
3.148.   The circumstances  under which administrative and judicial appeals may be l odged against 
government procurement decisions and the procedures for doing so  have not changed substantially 
since 2013. An objection to the tender docume nts may be lodged with the CGR in the case o f open 
or abbreviated competitive bids, while for other procedures it is lodged with the procuring entity. In 
addition, in specific situations, depending on the procuring entity and the contract amount , an appeal 
may be lodged  against the award of the cont ract.173 The CGR's final resolution exhausts 
administrative channels but may be contested before the courts. The court's decision is final.  
3.149.   Government procurement represented 4.6% and 4% of GDP in 2013 and 2018, respectively, 
according to the data in the Int egrated Procurement System (SIAC). Direct award of contracts, which 
is an exception to the ordinary procedures, is the method most widely used, followed by the different 
types of competitive tender (Table 3.23). During 2013 -18, the use of a national compet itive bidding 
procedure increased while that of direct procurement declined.  
Table 3.23 Procurement breakdown  by type of procedure, 2013 -18 
Type of procedure  2013  2014  2015  2016  2017  2018  
Total ( CRC billion ) 1,149.3  891.1 898.5 1,253.5 1,422.6 1,381.8 
(% of current  GDP) 4.6 3.3 3.1 4.0 4.3 4.0  
(% of total)  
Direct procurement  55.3 48.7 41.5 36.5 45.0 31.0 
Abbreviated competitive bidding  17.4 18.2 22.1 20.0 18.0 24.1 
National competitive bidding  11.4 12.0 17.9 29.3 28.9 20.6 
International competitive bidding  5.3 12.6 11.1 6.4 0.9 9.2 
Under administrative procurement principles  6.8 6.3 6.2 7.2 6.5 8.9 
Delivery on demanda 0.0 0.3 1.2 0.4 0.6 1.1 
Framework agreement  0.0 0.3 0.0 0.0 0.0 0.0 
Pre-qualified bidder procurement  3.7 1.6 0.0 0.1 0.1 5.1 
Total  100.0  100.0  100.0  100.0  100.0  100.0  
a This is a form of supply contract used when market conditions so justify or where there is frequent 
consumption of the product, for example in the case of food, office supplies and the like. A specific 
quantity is not determined, but a commitment is made t o provide goods periodically, in line with 
consumption needs as specified during the implementation stage.  
Source :  WTO Secretariat calculations, based on data viewed on the SIAC website.  
3.3.7   Intellectual property rights   
3.150.   In Costa  Rica, intellectual property rights are protected by the Constitution (Article 47) and 
other legislation that did not change substantially during the review period (Table  3.24).  
Table 3.24 Main legislation concerning protection of intellectual property rights, 2019  
Legisla tion Number and date   Most recent 
amendment  
Law on the Creation of the Office for Livestock Marks  Law No. 2247 of 07.08.1958  2010 
Regulations implementing the Law on Livestock Marks  Executive Decree No. 36471 
of 16.11.2010  2012 
Law on Copyright and Related R ights  Law No. 6683 of 14.10.1982  2010 
                                                
170 Law No. 8262 of 2 May 2002.  
171 Law No. 3859 of 7 April 1967.  
172 Law No. 9434 of 5 April 2017.  
173 Article 84 of Law No. 7494 of 2  May 1995.  WT/TPR/S/392 • Costa Rica  
 
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  Legisla tion Number and date   Most recent 
amendment  
Regulations implementing the Law on Copyright and 
Related R ights Executive Decree No. 24611 
of 04.09.1995  2012 
Regulations for the Protection of Computer Programmes in 
Central Government Ministries and Institutions  Executive Decree No. 37549  
of 26.11.2012  2013 
Law on Patents, Industrial Designs and Utility Models  Law No. 6867 of 25.04.1983  2008 
Regulations implementing the Law on Patents, Industrial 
Designs and Utility Models  Executive Decree No. 15222 
of 12.12.1983  2014 
Law on Biodiversity  Law No. 7788 of 30.04.1998  2008 
Regulations implementing  the Law on Biodiversity  Executive Decree No. 34433 
of 11.03.2008  2017 
Law on Layout -Designs of Integrated Circuits  Law No. 7961 of 17.12.1999  n.a. 
Regulations implementing the La w on Layout -Designs of 
Integrated Circuits  Executive Decree No. 32558 
of 08.03.2005  n.a. 
Law on Undisclosed Information  Law No. 7975 of 04.01.2000  2008 
Regulations implementing  the Law on Undisclosed 
Information  Executive Decree No. 34927 
of 28.11.2008  n.a. 
Law on Trademarks and Other Distinctive Signs  Law No. 7978 of 06.01.2000  2008 
Regulations implementing the Law on Trademarks and 
Other Distinctive Signs  Executive Decree No. 30233 
of 20.02.2002  2008 
Regulations implementing the Provisions on Geographical 
Indications and Appellations of Origin  Executive Decree No. 33743 
of 14.03.2007  2008 
Law on Procedures for Enforcement of Intellectual Property 
Rights  Law No. 8039 of 12.10.2000  2018 
Law on the Protection of New Varieties of Plants  Law N o. 8631 of 06.03.2008  2008 
Regulations implementing the Law on the Protection of New 
Varieties of Plants  Executive Decree No. 35677 
of 19.11.2009  n.a. 
n.a. Not applicable . 
Source:  WTO Secretariat.  
3.151.   Costa  Rica ratified the Protocol Amend ing the WTO Agreement on Trade -Related Intellectual 
Property Rights ( TRIPS). It also implemented a number of treaties administered by WIPO, including 
the Marrakesh Treaty, which entered into force  for Costa  Rica i n 2018.174 It is also a member of the 
International Convention for the Protection of New Varieties of Plants (UPOV Convention), 1991 Act. 
In 2017 , it adopted the C ouncil of Europe's Convention on Cybercrime (or Budapest Convention), 
which promotes international cooperation to fight computer crime, including intel lectual property 
infringement .175 
3.3.7.1   Industrial property  
3.3.7.1.1   Patent s, utility models and industrial models   
3.152.   The Re gistry of Industrial Property, belonging to the National Registry, is responsible for 
processing patent  applications filed both nationally and internationally. The Law on Patents, 
Industrial Designs and Utility Models (L aw No.  6867) and its Implementing Regulations govern 
patents in Costa  Rica. The Regulations were amended in 2014 to include new provisions on a number 
of matters, such as electronic filing of applications , delaying the publication of an application at the 
applicant’s r equest, and requesting compensatory additional time for the life of a patent.176  
3.153.   Since 2016, Costa  Rica has participated in the System of Cooperation on Aspects of 
Operational Information and I ndustrial Property (PROSUR), under which it has implemented a pilot 
programme for an accelerated patent ing procedure (Patent Prosecution Highway , PPH). In addition, 
in order to speed up the patent application process the Technology and Innovation Support Centre 
(CATI) provides free s earch services. The average time for  granting a patent is five years.177 Since 
                                                
174 Online information. Viewed at: https://www.wipo.int/treaties/en /ShowResults.jsp?country_id=40C . 
175 Law No. 9452 of 3 July 2017.  
176 Executive Decree No. 15222 of 12 December 1983.  
177 Online information. Viewed at: http://www.registronacional.go.cr/Tramite s%20RN.htm . WT/TPR/S/392 • Costa Rica  
 
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  2013, 761 patents have been registered in Costa  Rica (Table 3.25). Persons residing abroad who 
wish to file an application must use the services of a specialized lawyer residing in Costa Rica.178 
Table 3.25 Patents, 2013 -18 
 Patent applications  Registered patents  
PCT Paris National procedure  Total  PCT Paris National procedure  Total  
2013  568 10 21 599 95 7 0 102 
2014  515 12 17 544 96 11 2 109 
2015  567 19 13 599 117 7 1 125 
2016  477 17 11 505 64 0 3 67 
2017  495 6 22 523 182 5 3 190 
2018  485 2 10 497 154 8 6 168 
Source:  Information provided by the authorities . 
3.154.   The maximum term of a patent is 20 years as of the date of filing of the application. However, 
this term may be extended to compensate for possible delays in processing the application either 
for "unreasonable" grounds, in the case of the Registry of Industrial Proper ty, or,  in the case of the 
Ministry of Health, delay in approving the sanitary registration enabling the first marketing of a 
pharmaceutical patent.179 There have been no requests for such compensation since 2013.180 
3.155.   The patent holder must work it in Costa  Rica either on his own account or through an 
authorized third party (patent licence).  In Costa Rica,  working is understood to mean produ ction in 
the country and importation  of the patented matter. The working of the patent must begin within a 
specified period181 and must ensure supply of the domestic market. Where working does not begin 
within the specified time -limit or is inadequate or interrupted for more than one year, any person 
may request a compulsory licence for the patent. Compulsory licences may also b e issued where the 
patent holder has engaged in anti -competitive practices or where a patented invention has to be 
used in order to work another patent. The Government may also impose compulsory licensing 
requirements for a patent application or a patent t hat has already been granted on grounds of public 
utility . Compulsory licences are non -exclusive.182 Under the Law on Biodiversity, compulsory licences 
may also be issued for a biodiversity patent.183 No compulsory licences were issued during the review 
period .184 
3.156.   Costa  Rica recognizes the international exhaustion of intellectual property rights. Patent 
holders may not prevent parallel import s unless their interests are affected or the "normal" working 
of the patent is impaired.185 Second -use patents are not recogn ized in Costa  Rica.186  
3.157.   Protection of utility models and industrial drawings and models (industrial designs) is granted 
by means of inscription in the Registry of Industrial Property. Protection is granted for a 
non-extendable ten -year period . The registration process may take up to three years.187 
3.3.7.1.2   Other industrial property rights  
3.158.   The legislation protecting other industrial property rights has not changed substantially since 
2013 (Table  3.24).  
3.159.   Trademarks are protected by registering them in the  Registry of Industrial Property. Since 
2018, applicants may consult , online and free of charge , the trademarks that have been or are in 
                                                
178 Article 34  of Law No. 6867 of 25 April 1983.  
179 Idem, Article  17, and WTO Document  WT/TPR/M/286/Add.1 of 9 December  2013.  
180 Information provided by the authorities.  
181 The time -limit for beginning the working of the patent is four years from the date of the filing of the 
patent application or three years from the granting of the patent ( whichever is longer ). 
182 Articles 18 -20 of Law No. 6867 of 25 April 198 3, and Articles 27 -28 of Executive Decree No. 15222 of 
12 December  1983.  
183 Article 81  of Law No. 7788 of 30 April 1998.  
184 Information provided by the authorities.  
185 Article 16.2(d)  of Law No. 6867 of 25 April 1983  and o nline information. Viewed at : 
https://www.coprocom.go.cr/publicaciones/boletines/2013/edicion159.pdf . 
186 Online information. Viewed at: http://www.trademare s.net/pages/SegundosUsosDePatentes.pdf . 
187 Law No. 6867 of 25 April 1983, Executive Decree No. 15222 of 12 December 1983, and online 
information. Viewed at : http://www.registronacional.go.cr/Tramites%20RN.htm . WT/TPR/S/392 • Costa Rica  
 
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  the process of being registered of the 166 members participating in the TMview  platform, which 
Costa  Rica has joined .188 All types of  mark may be protected, including well -known marks. The 
registration of a mark takes an average of four months from the date of filing of the application. The 
term of protection of a trademark is ten years, which may be renewed indefinitely for  similar periods. 
If the trademark is not used within five years of having been registered, the registration is cancelled 
and ownership lost. Costa  Rica recognizes the international exhaustion of trademark rights.189 
Costa  Rica also protects livestock marks (or brands) for a period of 15 years, renewable 
indefinitely.190 
3.160.   Geographical indications (GIs) and appellations  of origin ( AOs) are protected by a sui generis 
system. The term of protection for a  GI/AO is indefinite unless the conditions on which it is base d 
change . The regulatory body set up to administer the registered G I/AO is res ponsi ble for authorizing 
the use of that G I/AO; all producers who fulfil the conditions laid down by the regulatory body may 
use the G I/AO. Costa  Rica has two GIs (Café de Costa  Rica and Banano de Costa  Rica) and three 
AOs (Queso Turrialba, Cerámica Chorotega and Café Tarrazú).191  
3.161.   Layout designs of integrated circuits are protected by means of registration in the Registry 
of Industrial Property. The term of protec tion is ten years from the year  of first commercial working 
or the filing of the application (whichever is longer). Compulsory licences may be granted for layout 
designs of integrated circuits. Costa  Rica recognizes the international exhaustion of rights on layout 
designs o f integrated circuits.192  
3.162.   Business and industrial secrets are protected without having to be registered. They may, 
nevertheless, be registered voluntarily for information purposes with the Registry of Industrial 
Property. Test data are also protected in Costa  Rica. In the pharmaceutical sector, the protection is 
granted for five years as of the first registration of the pharmaceutical pro duct with the Ministry of 
Health sanitary registry. The test data for agro -chemicals are protected for ten  years from their 
registration with the State Phytosanitary Service, attached to the Ministry of Agriculture and 
Livestock (MAG ).193  
3.3.7.2   Copyright and related rights  
3.163.   The legislation relating to copyright and related rights has not changed since 2013 
(Table  3.24). The protection of copyright and related rights arises when a work is created or 
performed. Nevertheless, holders may voluntarily register their works or performances in the 
Registr y of C opyright and Related Rights, for purely declaratory purposes. Accor ding to the 
authorities, between January and November 2018, the Registry of Copyright and Related Rights 
received 393 requests for registration.194  
3.164.   Copyright and related rights are protected throughout the life time of the performer and for 
70 years after their death. In Costa  Rica, content retransmi tted by  television signals through  the 
Internet must be authorized by the right holder. Costa  Rica recognizes the international exhaustion 
of economic exploitation ri ghts.195  
3.165.   There are limitations and exceptions to copyright which authorize the free use without charge 
of the work, for example in the academic sphere. However, the legislation does not include 
limitations and exceptions enabling  visually impaired persons t o have access to literary w orks. With 
the entry into force of the Marrakesh Treaty in 2018, Costa  Rica undertook to amend its Law on 
                                                
188 Online information. Viewed at: http://www.registronaci onal.go.cr/propiedad_industrial/index.htm . 
189 Law No. 7978 of 6 January 2000, Executive Decree No. 30233 of 20 February 2002 and online 
information. Viewed at : http://www.registronacional.g o.cr/Tramites%20RN.htm . 
190 Law No. 2247 of 7 August 1958 and Executive Decree No. 36471 of 16 November 2010.  
191 Law No. 7978 of 6 January 2000 and Executive Decree No. 33743 of 14 March 2007.  
192 Law No. 7961 of 17 December 1999 and Executive Decree No. 32558 of 8 March 2005.  
193 Law No. 7975 of 4 January 2000, Executive Decree No. 34927 of 28 November 2008 and Law 
No. 8702 of 14 January 2001.  
194 National Registry Document SUB -DGL-0546-2018 of 13 December 2018.  
195 Law No. 6683 of 14 October 1982 and Executive Decree No. 24611 of 4 September 1995.  WT/TPR/S/392 • Costa Rica  
 
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  Copyright and Related Rights in order to authorize the reproduction, distribution and maki ng 
available of published works i n formats designed to be accessible to visually impaired persons.196  
3.3.7.3   New varieties of plants  
3.166.   The National Seeds Office, attached to MAG, is the body responsi ble for granting plant 
breeder ’s certification, by registration in the Registry of Protected Varieti es. The term of the 
breeder' s right is 20 years (non -renewable) , except in the case of perennials where it is longer 
(25 years, non -renewable ). New plant varieties may  be subject to compulsory licens ing on grounds 
of pub lic interest. The protection granted  to a variety does not imply authorization for commercial 
exploitation. In order to be marketed, it must be registered in the Registry of Commercial Varieties; 
registration is valid for a renewable period of five years.197 
3.3.7.4   Provisions for the enforcement of I PRs 
3.167.   Infringements of intellectual property rights may give rise to administrative and judicial 
proceedings (civil and criminal).198 The Registry of Industrial Property and the Registry of Copyright 
and Related Rights are competent with respect to administrative proceedings; under Costa Rican 
law, their decisions may be appealed before the Administrative Registr y Tribunal, whose decisi ons 
exhaust the administrative channel. However, in May 2019 the Tribunal was still not functioning. In 
principle the Registries have the power  to order  provisional or precautionary measures, but they do 
not do so in practice; currently only the National C ustoms Service (SNA)  takes  action of this kind . 
3.168.   In Costa  Rica, the holder of an intellect ual property right may request the adoption of 
provisional  measures  when  they have evidence that goods which are being imported, in transit or 
exported are counterfeit  or pirated  goods that infringe their rights. The provisional  measure may 
consist of requesting the SNA to suspend the release  of import ed products; in that case the right 
holder has ten days to inspect the goods being held and institute legal proceedings before  the courts , 
otherwise, the protective measure will be lifted and the goo ds released. When requesting the 
adoption of a provisional measure, the right  holder must lodge  security  of a sufficient amount to be 
able to compensate the defendant, if necess ary. The purpose of this security is to avoid groundless 
requests.199  
3.169.   SNA may ex officio suspend the release of goods , without a ny formal application by a right 
holder, when it believes or suspects that goods being imported, in transit or exported infringe 
intellectual property rights.200 A Directive was issued in 2015 to regulate such ex officio action.201 In 
the case of imports, where the SNA suspects that an imported good infringes an intellectual property 
right, it should so inform the right holder to enable the latter to inspect the goods and provide 
evidence to show that their rights are being impaired.  The goods will be retain ed and the SNA will 
have ten days to lodge a complaint with the Public Prosecutor's Office with the backing of the right 
holder.202 Where the right holder does not come forward or disavows the SNA's action, the goods 
will be released . Until 2015, the SNA was liable for damages resulting from the retention of the 
goods and therefore had to compensate the importer where such action was justified.203 The 2015 
Directive stipulates that customs officials act in good faith, thus exempting the  SNA from any liability. 
During the review period, the SNA took  some 230 border measures (Table  3.26). The SNA works 
with the private sector to acquire a better knowledge of trademarks.  Costa  Rica also uses the WCO's 
trademark database ( Interface Public -Members ).204 
                                                
196 According to the data of the latest National Population Cen sus (2011), about 600,000  people in 
Costa  Rica have some visual disability. Materia Registral  of August 2017 .  Viewed at: 
http://www.registronacional.go.cr/bibl_virtual/Revista%20MT%20agosto%202017.pdf . 
197 Online information. Viewed at: http://ofinase.go.cr/servicios/variedades -protegidas  and 
http://ofinase.go.cr/servicios/variedadescomerciales . 
198 Articles  37 (civil proceedings) and 44 -48 (criminal  proceedings)  of Law No. 8 039 of 12 October 2000.  
199 Idem, Articles  3-9 and 13.  
200 Idem,  Article 16.  
201 Directive DN -003-2015 of 1 September 2015 (provided by the authorities).  
202 Ibid. 
203 Article 16  of Law No. 8039 of 12 October 2000.  
204 Information provided by  the authorities.  WT/TPR/S/392 • Costa Rica  
 
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  Table 3.26 Border measures,  2013 -18 
 2013  2014  2015  2016  2017  2018  
Complaints to the Public Prosecutor's Office  25 9 22 21 39 45 
Goods released because of lack of support from 
the representative of the trademark   5 5 1 7 8 12 
Responses to information received   13 0 17 7 0 0 
Total  43 14 40 35 47 57 
Source : Informa tion provided by the authorities .  
3.170.   Costa  Rica has provisions that waive liability for suppliers of Internet services who cooperate 
with copyright holders and take measures to protect their rights.205 In addition, Internet s ervice 
providers must warn their users about possible infringements so that they remove the material.206 
With regard to digital piracy, the autho rities stated that some Internet pages infringing copyright 
have been closed  since 2013.  
3.171.   The Interinstitutional Coordination Commission for the Protection of Intellectual Property 
(CIPPI), which groups various public institutions, continues to promote int erinstitutional coordination 
and cooperation with a view to the effective enforcement of the legislation in Costa  Rica. During the 
review period, the Registry of Copyright and Related Rights continued to respond to queries , organize 
training workshops, vis it educational centres and undertake outreach campaigns in the audio -visual 
media in order to heighten public awareness. Some training workshops were organized specifically 
to prevent and fight the il legal use of computer programmes in government ministrie s and 
institutions. In addition, the Costa Rican Intellectual Property Academy (ACOPI), which groups public 
and private sector entities, signed a cooperation agreement with WIPO in 2015 to set up a national 
intellec tual property training centre .207 
 
                                                
205 Executive Decree No. 36880 of 18 October 2011.  
206 Ibid. 
207 ACOPI (2015), "Convenio de Cooperación OMPI -ACOPI", Boletín ACOPI . Viewed at: 
https://www.rnpdigital.com/Boletin%20ACOPI%20diciembre%202015.pdf . WT/TPR/S/392 • Costa Rica  
 
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  4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture, forestry and fishing  
4.1.1   Characteristics, objectives and institutional framework  
4.1.  The contribution of agriculture to the GDP (including livestock, forestry and fishing) has 
remained relatively stable dur ing the period under review; in 2018 it was 5 %, while the level 
registered in 2013 was 5.5 %. However, the relative contribution of agriculture to the GDP has fallen. 
In addition, the growth rate of the sector during the period under review was variable due  to several 
factors, including the limited availability of land, which has led to the use of less fertile soils, and the 
impact of climate change, which has had a direct impact on agricultural production yields.  
4.2.  Costa Rica is a net exporter of agricultural  products. Agricultural products (WTO definition) 
represented 41.4 % of total exports in 2018. Fruit, specifically bananas and pineapples, followed by 
beverage preparations, were the principal export products in 2018, the same as in 2013 (Table 4.1). 
The ma in export markets have not changed since 2013; these continue to be the United States, 
which received 33.6 % of total exports in 2018, and the European Union, which received 32.0 % of 
exports in the same year.  
Table 4.1 Principal indicators for the agricultural sector, 2013 -18 
 
2013  2014  2015  2016  2017  2018  
Share of GDP (%, at current prices)a 5.5 5.6 5.4 5.6 5.4 5.0 
Real growth rates (%, at 2012 prices)a 0.1 1.5 -2.7 5.2 3.7 2.4 
Employment (%)a 9.9 11.1 12.3 12.2 12.5 12.3 
Agricultural sector, WTO definition:        
Exports        
Value (USD  million)  4,085.8  4,251.4  4,159.5  4,468.9  4,671.0  4,670.6  
Share of total exports (%)  47.5 46.4 45.0 45.0 44.0 41.4 
Growth rate (%)  -0.4 4.1 -2.2 7.4 4.5 -0.01 
The 5 most important products at HS 4 -(6-) digit level  
(% of total agricultural exports):      
0803 Bananas, including plantains  20.2 22.2 19.7 24.1 23.3 22.1 
0804.30 Pineapples  20.0 21.2 19.0 21.3 21.7 21.6 
2106 Food preparations not elsewhere specified 
or included  8.5 9.2 9.2 9.1 9.1 9.3 
0901 Coffee  7.5 6.9 7.3 7.4 6.8 6.6 
2009 Fruit juices  4.4 4.0 4.6 6.6 5.1 3.9 
Imports        
Value (USD  million)  1,815.1  1,831.9  1,791.9  1,965.7  2,016.0  2,030.8  
Share of total imports (%)  12.0 11.8 12.2 12.9 12.7 12.3 
Growth rate (%)  2.8 0.9 -2.2 9.7 2.6 0.7 
The 5 most important products at HS 4 -digit level  
(% of total agricultural imports):      
2106 Food preparations not elsewhere specified 
or included  8.6 8.4 7.0 9.8 9.2 8.7 
1005 Maize (corn)  10.8 9.5 8.7 9.0 8.3 8.7 
1201 Soya beans, whether or not broken  8.6 7.4 6.2 7.2 6.5 6.3 
2309 Preparations of a kind used in animal 
feeding  4.1 4.2 4.7 4.9 4.9 5.2 
1006 Rice  3.4 3.3 3.0 3.7 3.6 3.7 
Agricultural trade balance (USD  million)  2,270.8  2,419.5  2,367.5  2,503.3  2,655.0  2,639.7  
Pro memoria:        
Fish (WTO definition)        
Export        
Value (USD  million)  158.2  144.6  138.5  117.4  123.8  134.6  
% of total exports  1.8 1.6 1.5 1.2 1.2 1.2 
Import        
Value (USD  million)  93.8 220.3  150.3  159.6  194.9  185.4  
% of total imports  0.6 1.4 1.0 1.0 1.2 1.1 
a Includes forestry and fishing.  
Note:  The classification of the five main agricultural export and import products relates to 2018.  
Source:  WTO Secretariat calculations, based on data provided by the Costa Rican authorities and the 
Central  Bank of Costa Rica.  
4.3.  The agricultural sector in Costa Rica has two sides, with a very dynamic export sector that has 
developed alongside a traditional crop sector with lower productivity, the crops bei ng consumed 
primarily in the domestic market. The export sector, based on both traditional crops (coffee and WT/TPR/S/392 • Costa Rica  
 
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  bananas) and non -traditional crops (pineapples and palm), has achieved significant growth. 
Agricultural products for export are produced mainly by large and medium -sized producers, while 
traditional products (basic grains, fruits and vegetables) for domestic consumption – including for 
self-consumption – are produced by small producers with little integration in value chains.  
4.4.  The sector is facing a s eries of challenges, including: low productivity; lack of effectiveness of 
public institutions in providing the services required by the agricultural sector; lack of competition 
in domestic agricultural markets; and imminent tariff liberalization. The rate  of productivity growth 
of several agricultural products has stagnated, including those destined for the external market, due 
in large part to the limited availability of land. Consequently, productivity growth in the future should 
be based on the efficien t use of land, water and other inputs, as well as on improving workforce 
productivity (training) and innovation. The concentration of resources on agro -industries and on 
fertilizer and animal feed import and distribution companies severely limits the compe titiveness of 
producers, especially small producers. Maintaining the competitiveness of exports will also require 
improving infrastructure and access to credit and insurance, and reducing bureaucratic procedures.  
4.5.  The tariff liberalization envisaged in seve ral trade agreements signed by Costa Rica represents 
both a challenge and an opportunity for the country. It is an opportunity to reform policies, 
particularly in the most protected markets. However, the transition to more open markets means 
producers havi ng to make an adjustment (although not all will be able to be competitive in a more 
open market) and reduced protection; some producers would become more efficient while others 
would have to resort to more profitable activities. However, for this transitio n to be possible, the 
Government must indicate clearly the withdrawal of support measures, with no safeguard or sanitary 
measures to replace them or reductions in input prices. Similarly, gradual liberalization must go 
hand in hand with efforts to increase  productivity, for example by improving the quality and 
effectiveness of the services provided to farmers, and increasing research and development and 
other services. These services include: providing support to cooperatives and agricultural 
organizations;  introducing improvements in infrastructure; giving access to fast and affordable 
financing; and developing tools to promote resilience and risk management. These are all key 
aspects for ensuring that producers are in a good position to face growing compet ition. Programmes 
aimed at rural development focusing on the generation of non -agricultural economic activities should 
be developed for farmers who are not competitive, in particular to facilitate the transition towards 
ecotourism and agri -food processing.  
4.6.  The agricultural public sector (SPA), managed by the Minister of Agriculture, is composed of: 
(a) sectoral coordination bodies (the National Council for the Agricultural Sector (CAN), the Executive 
Secretariat for Sectoral Agricultural Planning (SEPSA), a nd the Agricultural Sector Technical 
Committee (COTECSA); (b) the Ministry of Agriculture and Livestock (MAG) and the institutions 
attached to it; and (c) decentralized institutions (Table 4.2). The minister in charge , with advice 
from the coordinating bod ies, formulates and implements policies that enhance the development of 
agricultural and rural activities, ensuring the protection of the environment and productive 
resources, as a means of improving the quality of life, especially in rural areas, and of p romoting 
greater and better integration into domestic and international markets.1 
Table 4.2 Institutions within the agricultural public sector  
Institution  Areas of competence  
Sectoral coordination institutions   
National Council for the Agricultural 
Sector (CAN)  Body responsible for coordinating, advising and providing information.  
Executive Secretariat for Sectoral 
Agricultural Planning (SEPSA)  Preparing and evaluating plans, programmes and projec ts, in 
accordance with the policy guidelines established by the minister in 
charge.  
Institutions attached to the MAG   
Agricultural Sector Technical 
Committee (COTECSA)  Coordinating the planning process of the institutions involved in the 
sector's activities.  
National Agricultural Technology 
Innovation and Technology Transfer 
Institute (INTA)  Promoting research and technological innovation in the sector and the 
diffusion of technologies.  
                                                
1 Online information. Viewed at: http://www.cambioclimatico -regatta.org/index.php/es/instituciones -
clave/item/ministerio -de-agricultura -y-ganaderia -mag. WT/TPR/S/392 • Costa Rica  
 
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  Institution  Areas of competence  
National Animal Health Service 
(SENASA)  Monitoring and regul ating trade in animals and animal products and 
by-products, ensuring that veterinary measures are based on animal 
health and veterinary public health risk assessments.  
State Phytosanitary Service (SFE)  Monitoring and regulating trade in agricultural produ cts and the 
registering of chemical and biological substances for agricultural use 
(pesticides and fertilizers); monitoring the MRLs of pesticides permitted 
in fresh consumer products; certifying the phytosanitary condition of 
products for export; and cont rolling pests of major economic 
importance and pests not present in the country that may pose a threat 
to domestic agricultural production.  
National Seeds Office (ONS)  Granting breeders' certificates for plant varieties; controlling seed 
production; and c ontrolling seed imports/exports.  
Decentralized institutions   
Rural Development Institute (INDER)  Implementing rural development policies.  
National Groundwater, Irrigation and 
Drainage Service (SENARA)  Managing water resources and developing irrigation and drainage 
projects.  
Integrated Agricultural and Livestock 
Marketing Programme (PIMA)  Providing marketing services for agricultural products.  
Costa Rican Fisheries and 
Aquaculture Institute (INCOPESCA)  Regulating and promoting the fisheries and aquaculture sector; and 
regulating fisheries production supply.  
National Production Council (CNP)  Promoting the production, industrialization, marketing and quality of 
agricultural products of small and medium -sized producers.  Addressing 
the demand fo r agricultural and agro -industrial products from public 
institutions.  
Source:  WTO Secretariat, and Estructura del Sector Público Agropecuario . Viewed at: 
http://www.infoagro.go.cr/InstitucionalidadSectorial/Paginas/estructura.aspx . 
4.7.  According to an OECD report, coordinating the various institutions involved in the agricultural 
sector is a challenge, as they enjoy different degrees of autonomy. The CAN facilitates institutional 
coordination; however, this could be improved.2 The lack of coordination is due, among other things, 
to the fact that the institutions are go verned by multiple laws and executive decrees (Table 4.3). 
This translates into inefficiencies in the functioning of the SPA, which means that some programmes 
are not implemented and the services provided to farmers are limited or not provided when they ar e 
needed or within the expected time frame. Similarly, registration processes for agrochemicals can 
also be long, bureaucratic and complex, which can have an impact on productivity, as producers do 
not have access to better quality inputs.3 
Table 4.3 Principal agricultural legislation  
Title Number and date  Most recent 
amendment  
Law on Fishing and Aquaculture  Law No.  8436 of 1  March  2005 2017 
Implementing regulations for the Law on 
Fishing and Aquaculture  Executive Decree No.  36782 of 24  May 2011 2016 
Law on Supporting and Strengthening the 
Agricultural Sector  Law No.  8835 of 10  May 2010 2019 
Implementing regulations for the Law on 
Supporting and Strengthening the Agricultural 
Sector  Executive  Decree No.  36104 of 14  July 2010 2010 
Law on Land Use, Management and Conservation  Law No.  7779 of 30  April 1998 2012 
Implementing regulations for the Law on Land 
Use, Management and Conservation  Executive Decree No.  29375 of 
8 August  2000 2012 
Law on the Development, Promotion and 
Fostering of Organic Farming  Law No.  8591 of 28  June 2007 n.a. 
Implementing regulations for the Law on the 
Development, Promotion and Fostering of 
Organic Farming  Executive Decree No.  35242 of 
18 November  2008 2018 
Organic Law on the Environment  Law No.  7554 of 4  October  1995 2018 
Regulations on Organic Farming  Executive Decree No.  29782 of 21  August  2001 2011 
n.a. Not applicable.  
Source:  WTO Secretariat.  
                                                
2 Law No. 7064 of 29 April 1987.  
3 OECD (2017), Agricultural Policies in Cost a Rica . Viewed at: https://www.oecd -
ilibrary.org/docserver/9789264269125 -
en.pdf?expires=15535 82285&id=id&accname=ocid195767&checksum=E73757E3159ECBA71C86A82BE2B5DE
4E. WT/TPR/S/392 • Costa Rica  
 
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  4.8.  Costa Rica's agricultural policy is set out in the Policy Guidelines for the Agricultural, Fisheries 
and Rural Sector 2019 -2022, which are based on the State Policy for the Costa Rican Agri -Food 
Sector and Rural Development 2010 -2021 and the State Policy f or Rural Territorial Development 
2015-2030. The main objectives of the agricultural policy include: poverty reduction, food security, 
and increasing competitiveness through the use of technology while, at the same time, promoting 
sustainability and inclusi veness. To this end, four priority areas were established: (1) greater 
integration into international markets and trade defence; (2) strengthening the domestic market; 
(3) improving agribusiness management; and (4) modernizing the institutions responsible for 
implementing agricultural policy.4 In addition, specific strategies have been implemented since 2014 
to reduce poverty in rural areas and to increase productivity, with an emphasis on small -scale 
farming. Furthermore, goals have been set to monitor the  increase in productivity of staple 
commodities such as rice, beans, potatoes and milk.5 
4.1.2   Policy instruments  
4.1.2.1   Border measures  
4.9.  The average tariff for agricultural products (WTO definition) has hardly changed since 2013, 
when it was 14 %; it is currently (2019)  14.1%. However, it continues to be substantially higher 
than the average tariff for non -agricultural products (5.6 %). The following agricultural products 
(12-digit HS tariff lines) are among those subject to an MFN tariff of more than 20 %: poultry meat 
and edible offal (HS 0207), sausages and similar products (HS 1601) and other prepared or 
preserved meat (HS 1602) (151 %); milk and dairy products (HS  0401-HS 0406) and ice cream 
(HS 2105) (66 %); cheese and curd (HS 0406) (51 %); onions and shallots (H S 0703.10) (46 %); 
and rice (HS 1006) (36 %). 
4.10.   Bound tariffs vary between 1 % and 233.1 %. The agricultural products (WTO definition) that 
were bound at the highest rate of 233.07 % were: meat and edible offal (20 HS 0207 lines), sausages 
and similar products (t wo HS 1601 lines) and prepared and preserved chicken (six HS 1602 lines). 
If the MFN applied tariff was compared with the bound tariff, taking into account only those lines 
that are strictly comparable due to the change in nomenclature, in two cases Costa Rica's 
MFN applied tariff is higher than the bound tariff (Table 4.4 Tariff lines for which the MFN applied 
tariff exceeds the bound rate, 2018).  
Table 4.4 Tariff lines for which the MFN applied tariff exceeds  the bound rate, 2018  
HS code  Description  MFN tariff  
(incl. 1%)  ICD (customs 
import duty)  Bound tariffa 
0405.20.00.00.90  Dairy spreads  66 65 45 
2009.61.00.00.00  Grape juice (including grape 
must) of a Brix value not 
exceeding 30     
ex2009.61.00.00.00  Concentrated grape juice, 
including frozen  15 14 5 
a Bound tariff calculations are based on the HS 07 certified nomenclature.  
Source:  WTO Secretariat.  
4.11.   Costa Rica uses WTO tariff -rate quotas and has also negotiated preferential quotas under 
various trade agreements. The majority of the MFN quotas (118 of 172 tariff lines) were not activated 
during the period under review, as the MFN tariffs currently being applied (2019) offer better access 
conditions. Therefore, dur ing the period 2013 -19, Costa Rica used tariff quotas only for products 
that are subject to the highest MFN applied tariffs: poultry meat and edible offal (HS 0207); 
dairy products (HS 04), including ice cream (HS 2105); sausages and similar products (HS 1601); 
and other prepared and preserved meat (HS 1602). However, the fill rate for most of the quotas, 
except for buttermilk (HS 0403) and butter (HS 0405), is quite low (Table A3.3).  
4.12.   Under its trade agreements, Costa Rica negotiated preferent ial tariff quotas with Canada, 
China, the Dominican Republic, Panama, Peru and the European Union, as well as under the 
                                                
4 Government of Costa Rica (2018), Lineamientos de política 2019 -2022 para el Sector Agropecuario, 
Pesquero y Rural . Viewed at: http://www.mag.go.cr/bibliotecavirtual/E14 -11045.pdf . 
5 OECD (2017), Agricultural Policies in Costa Rica . WT/TPR/S/392 • Costa Rica  
 
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  CAFTA -DR (Table A3.4). The fill rate for the preferential quotas varies depending on the agreement. 
In general, only in the case of the CAFTA -DR are quotas used for all products, and fill rates reach 
99.8% (rice in the husk). Under the other agreements, usually only one or two of the negotiated 
quotas are used. In the case of Canada, quotas are used for pork meat and offal and for refined 
sugar; for Panama, quotas are used only for palm oil and tomato sauce; for China, they are used 
only for black beans; and for the European Union, for ham and cheese.  
4.13.   Costa Rica uses a licensing system to allocate tariff quotas.6 In 2016, Costa Rica reviewe d the 
system for allocating MFN (WTO) tariff quotas and those negotiated under trade agreements, in 
order to ensure their maximum use and to adjust the methodology for allocating a share of the 
quotas to new importers.7 One of the main changes is that from  2016 the adjustments that will be 
made when an importer does not use the quota are specified (Table 4.5). During the period under 
review, there have been no changes in the administration and allocation of tariff quotas negotiated 
with the European Union, nor in those negotiated with Panama for agro -industrial products, under 
the CAFTA -DR for rice in the husk, and with China for black beans.8 In the case of rice in the husk, 
the quotas are opened only when CONARROZ determines that there is a supply shortage  in the 
domestic market. The share in the distribution of import quotas is subject to a requirement to 
purchase rice in the husk from the domestic harvest.9 In the case of the quota for black beans, 
distribution is also dependent on purchase from the domes tic harvest.10 The MAG keeps a record of 
purchases of beans harvested in the national territory for this purpose and provides this information 
to COMEX, for the calendar year prior to the allocation.  
Table 4.5 Principal changes in tariff quota administration from 2016  
 MFN administration 
(Executive Decree 
No. 30900 of 
20 December  2002)  CAFTA -DR administration  
(Executive Decree 
No. 34912 of 
25 November  2008)  MFN administration and trade 
agreements  
Executive Decree No.  39938 
of 29  September  2016  
Invitation  • First week of December  • First we ek of October  • First week of October  
Submission of 
applications  • Historical and new 
applicants: 15 working 
days following the 
invitation  • Historical and new 
applicants: 15 working 
days following the 
invitation  • Historical applicants: 
15 working days following the 
invitation  
• New applicants: first working 
day of January of the year 
following the invitation  
Specific 
requirements 
for new 
applicants  • None • None • Submit documents covering the 
import (for example: 
commercial invoice)  
• Receipt of applications on a 
"first-come, first -served" basis, 
according to daily sequence of 
submission of applications  
Volume and 
period for 
regular 
allocation  • 80% of the available 
volume for historical 
applicants; no period 
specified  
 • 80% of the available 
volume for historical 
applicants; first 15 working 
days of December  • 80% of the available volume for 
historical applicants; 
first 15 working days of 
December  
• 20% of the available 
volume for new applicants; 
period not specified  • 20% of the available 
volume for new applicants; 
first 15 working days of 
December  • 20% of the available volume for 
new applicants; from the first 
working day of January  
                                                
6 WTO document G/LIC/N/CRI/14 of 12 December 2018.  
7 Executive Decree No. 39938 of 29 September 2016. This regulation repealed Executiv e Decree 
No. 30900 of 20 December 2002 and Executive Decree No. 34912 of 25 November 2008.  
8 Executive Decree No. 34860 of 24 October 2008 (agro -industrial products, Panama); Executive Decree 
No. 34926 of 27 November 2008 (rice in the husk, CAFTA -DR); Exec utive Decree No. 36729 of 22 July 2011 
(black beans, China); and Executive Decree No. 37875 of 24 September 2013 (quotas, EU).  
9 Executive Decree No. 34926 of 27 November 2008.  
10 Executive Decree No. 36729 of 22 July 2011.  WT/TPR/S/392 • Costa Rica  
 
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   MFN administration 
(Executive Decree 
No. 30900 of 
20 December  2002)  CAFTA -DR administration  
(Executive Decree 
No. 34912 of 
25 November  2008)  MFN administration and trade 
agreements  
Executive Decree No.  39938 
of 29  September  2016  
Period of 
quota usage  • Historical and new 
applicants: from 1  January 
to 31 December  • Historical and new 
applicants: from 1  January 
to 31 December  • Historical applicants: from 
1 January to 31  December  
• New applicants: from the date 
of allocation to 31  December  
• Use beyond 31  December is 
permitted, provided failure to 
use is due to unforeseen 
circumstances, force majeure , 
or government actions or 
omissions  
Returns  • Last working day of June  • Last working day of June  • Last working day of June  
Extraordinary 
allocation  • Last working day of July  
• Returned volumes are 
included  • Last working day of July  
• Returned volumes are 
included  • Last working day of July  
• Remaining balances are 
included (unallocated volumes 
and returned volumes)  
Adjustments 
for non -usage  • Use of more than 95% of 
the allocated volume; if 
this is not achieved in the 
first year, a volume equal 
to that actually imported 
will be allocated. If, for 
2 consecutive years, that 
usage is not achieved, in 
the third year no allocation 
will be made . 
• Extraordinary allocation: 
use of at least 50% of the 
allocated volume . • Use of more than 95% of 
the allocated volume; if 
this is not achieved in the 
first year, a volume equal 
to that actually imported 
will be allocated. If, for 
2 consecutive years, that 
usage is not achieved, in 
the third year no allocation 
will be made . • Historical applicant:  
If applicants uses less than 
95% of the allocated volume, 
they will not be entitled to 
receive a volume higher than 
that actually imported under 
the quota in the following  
period.  
If, during 2 consecutive periods 
they use less than 95% of the 
quota volume, they will not 
receive a regular allocation in 
the following period, they will 
lose their status as an historical 
applicant and will be considered 
as a new applicant for t he 
following allocation period . 
• New applicant:  
If less than 50% of the 
allocated volume is used, the 
applicant will not be entitled to 
receive any allocation in the 
following period  
• Extraordinary allocation:  
If less than 50% of the 
allocated volume is used, the 
above -mentioned adjustments 
for historical and new 
applicants will be applied  
• Return of more than 50% of 
the allocated volume in 
2 consecutive periods:  
The historical applicant will not 
be entitled in the following 
period to receive an allocation  
higher than the volume actually 
imported.  
The new applicant will not be 
entitled to receive an allocation 
in the following period . 
Note:  A new applicant is any applicant not qualifying as an historical applicant and returning all of the 
allocated volume.  
Source:  Information provided by the authorities.  
4.14.   The inputs, raw materials and basic final goods for agriculture are subject to tariffs of 1 % to 
5%, provided that inputs, raw materials and similar goods in terms of quality, quantity and price 
cannot be produced in the Central American region. According to the authorities, this provision does 
not apply.  WT/TPR/S/392 • Costa Rica  
 
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  4.15.   In addition to tariffs, Costa Rica imposes a series of taxes and charges that apply in general 
to both domestic and imported products. These are: the gene ral sales tax (IGV)11, the selective 
consumption tax (ISC), the single tax on fuel , the tax on tobacco products, several specific taxes 
and others created to finance specific institutions such as INDER and IFAM. Taxes may be ad valorem  
or specific. The rate s are adjusted regularly in line with variations in the consumer price index.  
4.16.   The only tax that is applied to imported products is the IFAM tax, which is only imposed on 
imported beer.12 Likewise, some agricultural products are exempt from the above taxes. Wood is 
subject to the IGV rate, but at three percentage points lower than the general rate of 13 %.13 
Similarly, products in the basic food basket, some agricultural inputs and fishery products are 
exempt from the ISC . 
4.17.   Costa Rica uses non -tariff measures in  the agricultural sector, among other objectives to 
protect public health and plant and animal health. Agricultural products require a sanitary import 
permit and, depending on the circumstances, a sanitary export permit. During the period under 
review, Mem bers challenged three of the plant and animal health measures notified by Costa Rica. 
Two of these measures, one relating to MRLs for drugs in live animals14 and the other relating to the 
regulations for the registration, use and control of pesticides, were  only challenged once by a 
Member, while the decision of Costa Rica to temporarily suspend the issuance of phytosanitary 
certificates for avocado imports15 has been examined four times by different Members. This measure 
has resulted in a dispute settlement case being brought by Mexico against Costa Rica.16 
4.18.   During the period under review, Costa Rica considered initiating eight preliminary safeguard 
investigations related to pounded rice and rice in the husk (seven investigations) and to pork, and 
a safeguard midterm review (pounded rice). Safeguard measures were only applied to imports of 
pounded rice. Under the WTO Agreement on Agriculture, Costa Rica reserved the right to make use 
of the special safeguard. In 2017 and 2018, Costa Rica imposed a spe cial agricultural safeguard 
concerning husked (brown) rice.17 During the rest of the period examined (2013 -16), Costa Rica did 
not make use of this mechanism.18 
4.19.   Costa Rica taxes exports of bananas, coffee and livestock. During 2013 -18, the rates of those 
taxes (or contributions) were not changed. These are ad valorem  in the case of coffee and specific 
for bananas and livestock (Section 3.2.2).  
4.20.   Costa Rica notified the WTO that it had not granted any export subsidies for agricultural 
products during the period 2013-17.19 
4.1.2.2   Domestic support measures  
4.21.   Costa Rica notified the WTO that domestic support provided to the agricultural sector during 
2013-17 included: research, extension and advisory services; pest and disease control programmes; 
marketing and promotion servi ces; and environmental programmes (Table 4.6). Of the programmes 
notified, only environmental programmes, financed through the National Forestry Financing Fund 
(FONAFIFO), for farmers cultivating forest plantations alongside annual crops, offer economic 
compensation. The MAG also grants economic compensation for any benefit created under the 
projects of the Programme Promoting Sustainable Agricultural Production, and for micro, small and 
medium -sized organic producers. The amount granted under these program mes increased from 
2013 onwards, rising to USD  1.2 million in 2017.  
                                                
11 IGV will be replaced by value added tax (IVA) from 1 July 2019.  
12 Law No. 10 of 7 October 1936.  
13 Article 42 of Law No. 7575 of 13 February 1996.  
14 WTO document G/SPS/N/CRI/136 of 11 March 2013.  
15 WTO documents G/SPS/N/CRI/160 of 5 May 2015 and G/SPS/N/CRI /160/Add.1 of 12 May 2015.  
16 WTO document WT/DS524/1 of 13 March 2017.  
17 WTO documents G/AG/N/CRI/60 of 12 September 2017; G/AG/N/CRI/65 of 26 April  2018; and 
G/AG/N/CRI/68 of 1 November 2018.  
18 WTO documents G/AG/N/CRI/45 of 22 January 2014; G/AG/N/CRI/49 of 4 February 2015; 
G/AG/N/CRI/52 of 5 February 2016; G/AG/N/CRI/60 of 12 September  2017; G/AG/N/CRI/65 of 26 April 2018; 
and G/AG/N/CRI/58 of 23 March 2017.  
19 WTO documents G/AG/N/CRI/46 of 22 January 2014; G/AG/N/CRI/50 of 4 February 2015; 
G/AG/N/CRI/54 of 7 March 2016; G/AG/N/CRI/56 of 22 March 2017; and G/AG/N/CRI/63 of 25 April 2018.  WT/TPR/S/392 • Costa Rica  
 
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  Table 4.6 Domestic support to the agricultural sector, 2013 -2017  
(USD thousand)  
Support allocation  2013  2014  2015  2016  2017  
Research  10,788.1  8,733.1  7,764.3  8,917.3  7,768.8  
Pest and disease control  47,213.1  19,806.4  21,197.3  18,788.2  18,181.2  
Training services  21,118.8  35,107.1  37,566.2  32,802.7  26,251.5  
Extension and advisory services  17,547.4  1,365.2  1,429.4  1,438.6  1,294.0  
Inspection services  223.2  0.0 0.0 0.0 0.0 
Marketing and promotion services  515.2  584.8  471.9  607.7  528.6  
Infrastructural services  9,316.2  11,352.6  21,406.0  16,137.0  14,733.4  
Other general services  248.8  176.3  266.7  222.9  366.4  
Environmental programmes  967.7  890.9  852.3  939.5  1,278.2  
Regional assistance programmes  46,847.9  35,998.3  46,601.4  50,521.9  44,348.1  
Total  154,786.4  114,014.7  137,555.4  130,375.8  114,750.2  
Source:  WTO documents G/AG/N/CRI/48/Rev.1 of 27 February  2015; G/AG/N/CRI/51/Rev.1 of 31  July 2017; 
G/AG/N/CRI/55/Rev.1 of 1  August  2017; G/AG/N/CRI/59 of 1  August  2017; and G/AG/N/CRI/67 of 
17 October  2018.  
4.22.   Micro, small and medium -sized producers are also supported through the Institutional Supply 
Programme, which the National Production Council (CNP) implements, to meet the food supply needs 
of State institutions. The latter are obliged by law to acquire these supplies through direct 
procurement, via the CNP, which must ensure that supplies are prod uced by micro, small and 
medium -sized agricultural and agro -industrial producers and national fisheries.20 
4.23.   Until 2014, a percentage of the debts of small and medium -sized agricultural producers could 
be waived.21 Producers who had debts with the Trust Fund f or the Protection and Promotion of Small 
and Medium -Sized Producers (FIDAGRO), which were transferred to the Development Banking 
System (SBD), could have 20 % of the balance of those debts waived.22 
4.24.   In 2018, Costa Rica notified that it had five state trading  enterprises conforming to the 
definition of Article XVII of the GATT. Of these, four operate in the agricultural sector: the 
Agro-industrial Sugar Cane League (LAICA); the Livestock Promotion Corporation (CORFOGA); the 
Coffee Institute of Costa Rica (ICAF E); and the National Rice Growers Corporation (CONARROZ).23 
LAICA is responsible for the marketing of sugar and the by -products derived from sugar cane 
processing. CONARROZ is involved in the marketing of rice and in the allocation of import quotas in 
the event of shortages. CORFOGA is not involved in marketing or in foreign trade activities, but is 
responsible for collecting the tax on each animal slaughtered for domestic consumption or export.24 
ICAFE, although authorized to buy and sell coffee inside and o utside the country, does not use this 
power in practice. The National Spirituous Beverages Factory (FANAL) is also considered a state 
trading enterprise; however, it has not yet been notified to the WTO.  
4.25.   LAICA was created to maintain equitable relations be tween cane producers and sugar mills in 
order to guarantee a fair share for the various stakeholders involved in cane production and in the 
manufacture and sale of derivatives, in the interests of the further development of the industry.25 
LAICA annually fi xes and distributes the national sugar production quota among the mills, and 
distributes among independent producers the corresponding percentage of the production quota of 
each mill. The quota is distributed among the sugar mills in proportion to the refe rence quotas. The 
quota allocated to each mill establishes the quantity and type of sugar that should be processed, as 
part of the total national sugar production quota for domestic consumption, exports and reserves. 
The export quota is divided among the v arious export markets, in line with what "suits the industry".  
4.26.   With regard to sugar exports, the exporter must join the register kept by LAICA for this 
purpose, and also register the purchase agreement. Exporters must inform LAICA of the price at 
which the y export sugar, as LAICA has the power to reject any sugar export contract if the sales 
                                                
20 Agreement No. 39185 of 29 June 2017.  
21 Article 47 of Law No. 9274 of 12 November 2014.  
22 Law No. 8835 of 10 May 2010.  
23 WTO document G/STR/N/17/CRI of 23 N ovember 2018.  
24 CORFOGA is the body promoting the development of the beef industry in Costa  Rica. CORFOGA’s 
income comes from its entitlement to payment for each animal slaughtered for domestic consumption, bovine 
meat imports and exports of live cattle.  
25 Law No. 7818 of 22 September 1998.  WT/TPR/S/392 • Costa Rica  
 
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  price is lower than the price prevailing on the international market. Exports should be adjusted to 
the export quotas granted to each mill for the corresponding sugar y ear. LAICA determines when 
sugar can be exported to preferential markets or those covered by international agreements 
approved by Costa Rica.  
4.27.   CONARROZ collects and keeps updated all essential information to guarantee an adequate 
supply for the domestic mar ket.26 Agro-industrial companies must submit monthly verified 
statements of purchases of domestically produced rice, sales, value and rice stocks to CONARROZ. 
This information is used to determine the country's supply needs and to decide whether tariff quot as 
should be opened. The rice in the husk that is imported when there is a shortage, in other words 
when domestic production is insufficient, is distributed by CONARROZ among agro -industries, on the 
basis of the purchases of domestic production in the prev ious rice year. Importers of rice, clean rice, 
dry rice, rice in the husk or pounded rice are subject to the payment of a contribution to CONARROZ 
of 1.5 % of the import price. The document proving payment must be presented for the goods to be 
able to enter  the country.  
4.28.   State trading enterprises were created to regulate markets. However, especially in the sugar 
and rice markets, small producers find their opportunities limited by the lack of competition in the 
marketing chain because, for example, LAICA can regulate all the activities of the value chain, from 
purchase, export and storage to marketing at retail level.  
4.29.   The rice market is one of the most protected agricultural markets in Costa Rica. In addition 
to benefiting from CONARROZ intervention, rice bene fits from tariff protection and safeguard 
measures on imports of pounded rice and brown rice, and its price is still regulated. In 2015, the 
minimum price system for rice was eliminated, a purchase reference price for rice in the husk was 
established for t he producer, and the sales price (minimum and maximum) was fixed for all qualities 
of pounded rice.27 During the period under review, the Commission for the Promotion of Competition 
(COPROCOM) recommended eliminating rice price controls at all levels.28 
4.30.   The OECD analysis of rice production support policies indicates that these measures impose 
a significant burden on consumers, especially the poorest, as rice prices in Costa Rica's domestic 
market are among the highest in the world. This price policy gener ates an implicit tax on consumers 
and, considering that the neediest households are those that devote a greater proportion of their 
income to food, this burden could become a regressive tax and, contrary to the stated aim, have a 
negative effect on the foo d security of low -income households. In addition, support measures tend 
to benefit a handful of large -scale rice producers and processors. Rice production is dominated by 
large-scale producers, which account for more than 76 % of the planted area, while sma ll farmers 
(72% of all farmers) produce mostly for their own consumption, and others are net buyers of rice 
and are therefore also affected by the support measures.29 
4.31.   In general, in all agricultural markets, including input markets, competition should be 
promoted, transaction costs reduced and the benefits of trade liberalization better distributed, so 
that international market prices are transferred to domestic consumers. In Costa Rica, for example, 
some animal feeds (concentrates) are produced mainly from imported maize (70 %) and soya beans 
(75%). Given the high percentage of the imported component, the international price of maize and 
soya beans should be an important factor in the final price of the concentrate; however, this is not 
usually the case. In t he vertically integrated industries (poultry sector), which produce their own 
concentrate, the margin between the price of imported maize and soya beans and the price of 
concentrate produced on the farm is not significant. However, the price of concentrate s produced in 
the domestic market does not vary in line with the price of imported inputs. When the prices of 
maize and soya beans fell in the international market, the price of concentrated feeds in Costa Rica 
did not decrease, and the producers of concen trates did not transfer the fall in the international price 
of the inputs used to the domestic consumer. This is because three of the companies producing 
                                                
26 Data collected by CONARROZ: planting and production areas, stocklists of rice in the husk and 
pounded rice stored in agro -industries, exports, imports, and production costs.  
27 Executive Decree No. 38884 of 24 February 2015.  
28 Opinions of COPROCOM 03 -14 of 11 February 2014 and 02 -2017 of 18 April 2017 (provided by the 
authorities).  
29 OECD (2017), Agricultural Policies in Costa Rica . Viewed at: https://www.oecd -
ilibrary.org/docserver/9789264269125 -
en.pdf?expires=1553582285&id=id&accname=o cid195767&checksum=E73757E3159ECBA71C86A82BE2B5DE
4E. WT/TPR/S/392 • Costa Rica  
 
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  concentrates are among the main maize importers (for concentrates) and there is only one soya 
bean imp orting company in the country. Similarly, for fertilizer and agrochemicals, which are inputs 
representing a significant share of production costs in the agricultural sector, the fall in the 
international price has not been transferred to domestic agricultu ral producers. This is due to the 
fact that, as in the concentrates industry, the import/production of fertilizers is a highly concentrated 
industry, given that imports are effected by three companies. A similar situation exists in 
agrochemicals, for which  the concentrated active ingredient is imported, with the domestic industry 
only diluting and packaging products. The prices of veterinary drugs have followed a similar pattern 
of increases and significant margins between the c.i.f. price and the price in the domestic market. 
Agro-industries are also highly concentrated (Box 4.1).  
Box 4.1 Agro -industry concentration, 2019  
Poultry: There are three poultry meat processing companies that buy poultry from small and 
medium -sized farms. These three companies are also among the main importers of maize for 
concentrates. There is one soya bean importing company in the country.  
Rice: Ten companies process all domestic production and are also the main importers of rice in 
the husk.  
Bovine meat: Four companies carry out 85% of the slaughter of cattle and another 20 the 
remaining 15%. These plants also slaughter pigs, and some are beef and pork importers.  
Dairy products: One company (cooperative) processes 80% of milk in the formal market, and 
10 medium -sized companies the other 20%. The cooperative is the entity that establishes prices.  
Source:  Academia de Centroamérica.  
4.32.   The Development Banking System (SB D) was established in 2008 to enable certain sectors 
to have better access to financing. According to the law, at least 40 % of SBD funds must be allocated 
to agricultural, fisheries, agro -industrial or related trade projects.30 However, it appears that 
agricultural sector financing is still insufficient.31 
4.33.   The National Insurance Institute (INS) is the only institute to offer agricultural insurance, 
which has different premiums depending on the crop, the risk and the insured volume. Collective 
harvest insuranc e is offered to protect virtually all crops, but has only been used for rice, coffee, 
beans and livestock. However, livestock insurance is not currently provided. In addition, since 2011, 
insurance policies have not been subsidized. Between 2009 and 2011, the MAG, depending on the 
insured area, subsidized between 30 % and 50 % of the insurance premiums for basic grains and 
bananas. In general, agricultural loans are tied to insurance policies, and are granted through the 
SBD, cooperatives and microfinance ins titutions, particularly for the cultivation of rice and coffee. 
There is no reinsurance scheme for agricultural insurance. Ultimately, the State acts as guarantor 
for INS insurance.32 
4.2  Mining and energy  
4.2.1   General characteristics  
4.34.    The Ministry of the Environmen t and Energy (MINAE) is the entity governing the energy and 
mining sector. MINAE formulates and implements the sector's policy, whose objectives are set out 
in the National Energy Plan. According to the National Energy Plan 2015 -2030, the objectives of 
Costa Rica's energy policy are to: (1) improve energy efficiency; (2) promote the generation of 
energy for self -consumption; (3) optimize the use of renewable sources of energy generation; 
(4) achieve inclusive and sustainable development in the sector; (5) p romote the use of electric 
                                                
30 Law No. 9274 of 12 November 2014.  
31 OECD (2017), Agricultural Policies in Costa Rica . Viewed at: https://www.oecd -
ilibrary.org/docserver/9789264269125 -
en.pdf?expires=1553582285&id=id&accname=ocid195767&checksum=E73757E3159ECBA71C86A82BE2B5DE
4E. 
32 CLAC/Fair Trade (2017), Situación de los seguro s agrícolas en América Latina y el Caribe . Viewed at: 
http://clac -comerciojusto.org/wp -content/uploads/2015/04/Libro -Situaci%C3%B3n -de-los-Seguros -
Agr%C3  per centADcolas -en-Latino -Am%C3%A9rica -y-el-Caribe -ok.pdf . WT/TPR/S/392 • Costa Rica  
 
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  vehicles; (6) promote the use of public transport; and (7) improve the quality of petroleum 
products .33 
4.35.   Private entities, both domestic and foreign, can only invest in certain activities in the energy 
sector (Table 4.7).  
Table 4.7 Access to the energy market  
 Permitted activities  Type of authorization 
granted by the State  Restricted activities  
Hydrocarbons  Exploration and extraction  Partnership, operations, 
service or concession 
agreement  Importing of crude oil and its 
derivatives (RECOPE 
monopoly)  
Exploration and extraction of 
crude oil  
Storage  Licence (MINAE)  Refining (RECOPE monopoly)  
Transport  Licence (MINAE)  Wholesale distribution 
(RECOPE)  Retail sales  Licence (MINAE)  
Mining  Exploration  Permit  
Exploration and exploitation 
of opencast metal mining  Extraction  Concession agreement  
Transformation, processing 
and marketing  Entitlement granted under 
the concession agreement 
(MINAE)  
Electricity  Generation  Concession agreement and, 
where applicable, water 
concession  Transmission  
Distribution and marketing  
Source:  WTO Secretariat; Law No.  7399 of 3  May 1994; Law No.  6797 of 4  October  1982 and Law No.  7200 
of 28 September  1990.  
4.36.   The Public Services Regulatory Authority (ARESEP) fixes electricity rates and retail prices for 
petroleum products.34 
4.2.2   Mining  
4.37.   The Geology and Mines Directorate (DGM) of MINAE is the entity responsible for mining policy 
and for governing th e sector. Its objective is to contribute to the country's development through the 
rational exploitation of mining resources, which ensures a balance between social and environmental 
needs.35 The legal framework of the mining sector comprises the Mining Code  and its Regulations.36 
Mining activity is regarded as in the public's interests. According to the Code, the State has absolute, 
inalienable and imprescriptible control over all mineral resources. The State itself can exploit the 
minerals or grant concessio ns. However, certain deposits can only be exploited by the State or 
through a special concession.37 
4.38.   The DGM grants exploration permits and mining concessions, which are granted through a 
decision setting forth all the conditions of the contract. Permits are  granted for three years, 
extendable once only. Concessions give the operator the right to extract, transform, process and 
market minerals. They are granted for a period of 25 years, which can be renewed for up to ten 
years. The concession area can be a ma ximum of 10 km2; concessions cannot be obtained in 
adjoining areas when the original concession reaches the maximum permitted area. A separate 
concession is required for the mining of each mineral. However, an exception is made for opencast 
metal mining.38 Costa Rica's mining production consists of small amounts of diatomite, gold 
(including artisanal mining), limestone for cement, clay for cement, pozzolana and siliceous 
                                                
33 National Energy Plan. Viewed at: 
http://www.dse.go.cr/es/03Publicaciones/01PoliticaEnerg/VII_Plan_Nacional_de_Energia_2015 -2030.pdf . 
34 Online information. Viewed at: https://aresep.go.cr . 
35 Online information. Viewed at: http://www.geologia.go.cr/quienes_somo/index.html . 
36 Law No. 6797 of 4 October 1982 and Executive Decree No. 29300 of 8 February 2001.  
37 These are deposits of coal, natural gas, crude oil or any other hy drocarbon, and radioactive minerals.  
38 Article 8 bis of Law No. 6797 of 4 October 1982.  WT/TPR/S/392 • Costa Rica  
 
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  materials for cement, pumice, crushed stone and manufactured sand, materials for ballas t and fillers, 
and siliceous sandstone for glass.39 
4.39.   Any national or foreign natural or legal person can apply for a permit or a mining concession. 
Foreign companies must be domiciled in Costa Rica. No members of the executive, legislative and 
judicial branc hes of government or other Costa Rican public officials and employees, or foreign 
States, governments and agents, can apply for permits or concessions. Foreign -owned mining 
companies and companies with less than 50 % domestic capital are not allowed to rece ive financing 
from national banks for an amount greater than 10 % of the total investment.  
4.40.   Mining is subject to payment of income tax. Holders of exploration permits and mining 
concessions will enjoy exemption from all taxes and duties on the import of equi pment, vehicles and 
machinery required for mining activity, provided that those articles are not produced in the country. 
However, the amount of exemption will be subject to a 10 % tax. This tax is used to further geological 
research and promote State parti cipation in exploiting the country's mineral wealth.40 
4.41.   The sale of metallic minerals is taxed through a 2 % municipal tax. The mining of sand, stone, 
ballast and derivatives are subject to a municipal tax of 30 % on the amount paid in value  added 
tax. If conc ession holders use the mined product as an input to produce other materials, they pay 
CRC 100 per cubic metre extracted, in accordance with the law. However, this amount is updated 
annually on the basis of the consumer price index.  
4.2.3   Hydrocarbons  
4.42.   Hydrocarbon  resources are owned by the State, but private entities may engage in the 
exploration and exploitation thereof. The hydrocarbons sector is governed primarily by Law No.  7356 
of 1993, which provides that the import, refining and wholesale distribution of fu els, asphalts and 
naphtha to meet domestic demand are a State monopoly. The state-owned Costa Rican Petroleum 
Refinery (RECOPE) continues to have a monopoly on the import, refining and wholesale distribution 
of crude oil and its derivatives.41 It is also, w ith the prior authorization of the Office of the Comptroller 
General of the Republic, responsible for implementing the sector's development plans in line with 
the National Development Plan.42 RECOPE can market crude oil and its derivatives abroad, provided 
that domestic supply is guaranteed, and also sets conditions of sale in accordance with international 
markets.43 
4.43.   RECOPE hydrocarbon imports include petrol, diesel, fuel for aircraft and ships, asphalt and 
liquefied petroleum gas. In 2017, total hydrocarbon imports amounted to 21.6  million barrels at a 
c.i.f. value of USD  1,374  million.44 Total sales reached 20.9  million barrels, amounting to 
USD 2,450  million.45 
4.44.   Costa Rica has a National Fuel System to supply the domestic market. This system includes 
RECOPE's Caribbean Petroleum Port Terminal (at the port in Moín), a 553 km pipeline system, 
five pumping stations, four distribution facilities for the reception and sale of bulk fuels, and 
four terminals for supplying aircraft at the country's airports.46 The expan sion of the Petroleum Port 
Terminal was nearing completion in March  2019, at a total cost of USD  98.6 million.47 
                                                
39 Online information. Viewed at: 
http://www.geologia.go.cr/mineria/mineria_de_costa_rica_en_datos.html . 
40 Articles 58 -61 of Law No. 6797 of 4 October 1982.  
41 Law No. 7356 of 24 August 1993.  
42 Online inform ation. Viewed at: https://www.recope.go.cr/quienes -somos/fundamentos -legales . 
43 Executive Decree No. 14874 of 14 October 1983.  
44 Online information. Viewed at: https://www.recope.go.cr/wp -
content/uploads/2018/04/IMPORTACIONES -2017.pdf . 
45 RECOPE (2018), Informe Anual de Ventas 2017 . Viewed at: https://www.recope.go.cr/wp -
content/uploads/2018/04/INFORME -ANUAL -DE-VENTAS -2017. -v1pdf -2.pdf. 
46 Online information. Viewed at: 
http://www.recope.go.cr/nuestra_actividad/sistema_petroleo/Definicion.htm . 
47 Online information. Viewed at: https://www.recope.go.cr/proyectos/procesos -industriales -
portuarios/ampliacion -de-la-terminal -portuaria -petrolera -del-atlantico . WT/TPR/S/392 • Costa Rica  
 
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  4.45.   ARESEP sets fuel prices, which are updated on a monthly basis using an adjustment formula 
that uses international prices as a reference. Prices are uniform across the country's service stations.  
4.2.4   Electricity  
4.46.   The electricity market in Costa Rica is governed by a number of laws and regulations 
(Table  4.8). During the period under review, no substantial changes to this legislation were made, 
except for the promulgation, in 2015, of the regulation governing energy generation for 
self-consumption.  
Table 4.8 Main  legislation regulating the electricity market  
Title Number and date  Most recent 
amendment  
Law Declaring Public Interest in Geothermal Resources  Law No.  5961 of 6  December  1976 n.a. 
Law Authorizing Autonomous or Parallel Electricity 
Generation  Law No. 7200 of 
28 September  1990 2001 
Regulations implementing Chapter I of Law No.  7200 Executive Decree No.  37124 of 
19 March  2012 n.a. 
Regulations implementing Chapter II of Law No.  7200 Executive Decree No.  24866 of 
12 December  1995 n.a. 
Law Regulating the Rational Use of Energy  Law No.  7447 of 3  November  1994 2012 
Regulations for the Rational Use of Energy  Executive No.  25584 of 
24 October  1996 2012 
Law on the Public Services Regulatory Authority  Law No.  7593 of 9  August  1996 2018 
Regulations on Concessions for the Electricity Supply Public 
Service  Executive Decree No.  30065 of 
28 November  2001 2015a 
Law on the Participation of Rural Electrification Cooperatives 
and Municipal Public Utilities Companies in National 
Development  Law No.  8345 of 26  February  2003 2008 
Framework Law on Concessions for the Supply of Hydraulic 
Power for Hydroelectric Generation  Law No.  8723 of 22  April 2009 2012 
Regulations for Energy Generation Distributed for 
Self-Consumption Using Rene wable Sources and the Simple 
Net Metering Contractual Model  Executive Decree No.  39220 of 
14 September  2015 n.a. 
Law on the Strengthening and Modernization of Public 
Entities in the Telecommunications Sector  Law No.  8660 of 2007  n.a. 
a The functions of distribution companies are changing; from 2015 they must facilitate interconnection 
to the distribution network for generating energy for self -consumption.  
n.a. Not applicable.  
Source:  WTO Secretariat.  
4.47.   The National Electricity System (SEN) is composed of 30 private companies; two state-owned 
companies (the Costa Rican Electricity Institute (ICE) and its subsidiary, the National Power and 
Light Company (CNFL)); four rural electrification cooperatives48 and two  municipal companies 
(JASEC and the ESPH)49 (Chart 4.1). The SEN also includes four high -voltage consumers (major 
consumers), which the ICE supplies directly. Th e rest are regulated users.50 
4.48.   Public operators and cooperatives generate, distribute and market electricity. The ICE 
operates the national transmission network. Private companies can only operate in the power 
generation market. Distribution companies also m arket electricity, as Costa Rica does not allow the 
establishment of companies only marketing electricity ( Chart 4.1).51 
                                                
48 Alfaro Ruiz Cooperative (Coopealfaroruiz ), Rural Electrification Cooperative of Guanacaste 
(Coopeguanacaste), Electrification Cooperative of San Carlos (Coopelesca) and Rural Electrification Cooperative 
of Los Santos (Coopesantos).  
49 Cartago Electricity Board (JASEC) and Heredia Public Services Company (ESPH).  
50 The high -voltage consumers are: Holcim (cement), CEMEX (construction materials), Aluminios 
Nacionales (aluminium) and Intel (semiconductors). Academia de Centroamérica (2017), El sector eléctrico en 
Costa  Rica. Viewed at: https://www.academiaca.or.cr/wp -content/uploads/2017/05/El -sector -eléctrico -en-
Costa -Rica.pdf . 
51 Article 28 of Executive Decree No. 30065 of 28 Novembe r 2001.  WT/TPR/S/392 • Costa Rica  
 
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  Chart 4.1 National electricity system  
 
Source:  Online information, National Energy Control Centre (CENCE). Viewed at: 
https://appc enter.grupoice.com/CenceWeb/CenceDescargaArchivos.jsf?init=true&categoria=1&codig
oTipoArchivo=1001 . 
4.49.   Foreign private companies must be domiciled in Costa Rica to operate a power station.52 
Foreign equity participation in a power station is limited to 65 %.53 Private equity participation in ICE 
companies may only be for minority holdings; ICE must maintain 51 % of the capital. In the case of 
the ESPH, the limit applies only to foreign capital.54 
4.50.   In order to operate a power station, private companies must hold a public service 
energy -generating concession (generating concession), granted by ARESEP for a 20 -year period. 
The generating concession gives the right to operate power stations that use only renewable sources 
of energy, except for high -temperature geotherm al energy, the exploitation of which is reserved for 
the ICE.55 In order to operate a hydroelectric power station, a concession is also required for the use 
of hydraulic forces (water concession), granted by MINAE for a period of 20 years.56 
4.51.   Private generati ng plants operate either under the autonomous or parallel generating regime 
or under the competition regime (Table 4.9). Contracts awarded under the competition regime are 
for Build -Operate -Transfer (BOT) projects; these contracts are given for 20 years an d can be 
renewed for a shorter period. When the contract ends, the private company must transfer the power 
station to the ICE.57 Autonomous or parallel generating concessions can be renewed; in this case, 
the power station is still operated by the private c ompany.58 
                                                
52 Article 34 of Executive Decree No. 24866 of 12 December 1995.  
53 Law No. 7200 of 28 September 1990.  
54 Article 15 of Law No. 7789 of 30 April 1998 and Article 5 of Law No. 8660 of 8 August 2008.  
55 Law No. 7200 of 28 September 1990, Executive Decree  No. 30065 of 28 November  2001 and Law 
No. 5961 of 6  December 1976.  
56 Executive Decree No. 30065 of 28 November 2001 and Executive Decree No. 8723 of 22 April 2009.  
57 Article 22 of Law No. 7200 of 28 September 1990.  
58 Academia de Centroamérica (2017), El sector eléctrico en Costa Rica . Viewed at: 
https://www.academiaca.or.cr/wp -content/uploads/2017/05/El -sector -eléctrico -en-Costa -Rica.pdf . 
GENERATIONPrivate 
companies
TRANSMISSION
DISTRIBUTION /
MARKETINGRural electrification 
cooperativesMunicipal 
companies
Rural electrification 
cooperativesMunicipal 
companiesCNFL
End users (regulated ) ICE-Generation
ICE-Transmission
ICE-DistributionHigh-voltage 
consumersCNFLWT/TPR/S/392 • Costa Rica  
 
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  Table 4.9 Private generating plant operating regimes  
 Autonomous or parallel 
generation  
(public service generating 
concession)  Competition regime  
(contract)  
Type of generating concession  Build-Own-Operate (BOO)  Build-Operate -Transfer (BOT)  
Maximum installed capacity in each 
generating plant  20 MW  50 MW  
Maximum power  15% of the total power of the SNI 
(National Interconnected System)  30% of SNI total power  
Electricity purchase/sales price  The generator sets the sales price 
according to the price band 
established by ARESEP  The price is determined through 
open tender  
Source:  Law No.  7200 of 28  September  1990, Executive Decree No.  37124 of 19  March  2012 and Executive 
Decree No.  24866 of 12 December  1995.  
4.52.   Private generating plants are required to sell all of their production directly to the ICE; sale 
to third parties is not permitted.59 Contracts for the purchase/sale of electricity, which can be for up 
to 20 years, must be approved by ARES EP.60 Under the generating plant operating regime, the ICE 
must buy all surplus production from private generating plants.61 However, currently the ICE may 
not buy all of the surpluses under the provisions of purchase/sale agreements. Therefore, production 
surpluses that are above what was stipulated in contracts with the ICE cannot be sold either to the 
ICE or the Regional Electricity Market (MER), as the ICE is the only authorized agent to operate in 
that market.62 
4.53.   The ICE remains the largest producer of ele ctricity in Costa Rica ( Chart 4.2). It manages the 
National Energy Control Centre (CENCE), which allocates generating quotas to each of the ICE power 
stations, taking i nto account the estimated production of other power stations, so as to ensure the 
necessary dispatch of electrical energy in the National Interconnected System (SNI).63 The electricity 
distribution network covers the entire national territory (99.4 %). In 20 18, according to information 
provided by the authorities, the ICE distributed and marketed 42.1 % of electrical energy; the 
CNFL 35.6%; cooperatives 10.5 %; and municipal companies 11.8 %. 
Chart 4.2 Share of elec tricity generation, 2013 and 2018  
 
Source:  CENCE (2014 and 2019), Generación y Demanda: Informe Anual . Viewed at: 
https://appcenter.grupoice.com/CenceWeb/CenceDescargaArchivos.jsf?init=true&categoria=3&codig
oTipoArchivo=3008 . 
4.54.   ARESEP regulates el ectricity tariffs, which are determined according to the type of end user: 
commercial (general), residential or industrial. The tariffs, in addition to covering operating and 
                                                
59 BID ( 2017), Dossier Energético: Costa Rica . Viewed at: 
https://publications.iadb.org/handle/11319/8093 . 
60 Article 13 of Law No. 7200 of 28 September 1990.  
61 Article 15 of Law No. 7200 of 28 September 1990.  
62 Academia de Centroamérica (2017), El sector eléctrico en Costa Rica . Viewed at: 
https://www.academiaca.or.cr/wp -content/uploads /2017/05/El -sector -eléctrico -en-Costa -Rica.pdf ; 
and Article  5 of Law No. 7848 of 20 November 1998, as amended by Law No. 9004 of 31 October 2011.  
63 Online i nformation. Viewed at: https: //appcenter.grupoice.com/CenceWeb/CenceMain.jsf . 
2013
Rural 
electrification 
cooperatives
4.6%  
Private power
stations
15.8%
IC E
74.4%Municipal companies 
1.9% 
Rural electrification 
cooperatives
6.2%  
Private power 
stations
26.0%IC E
60.9%Municipal companies 
3.1% 2018
C NFL
3.4% C NFL 
3.8%WT/TPR/S/392 • Costa Rica  
 
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  investment expenses, must guarantee a return rate to the distribution/marketing c ompany.64 
Distribution/marketing companies can request ARESEP for an adjustment to the tariffs, which will 
make a decision taking into account the results of public consultations.65 ARESEP also regulates the 
tariffs charged to high -voltage consumers.66 In a s urvey conducted in 2013, the companies surveyed 
indicated that the cost of electricity was the main factor in increasing production costs; companies 
in the hospitality and industry sectors considered themselves to be the most affected.67 
4.55.   During the period u nder review, residential consumption (monthly) of less than 250 kW/h was 
exempt from IGV payment; for consumption above 250 kW/h, the reduced IGV rate of 5 % is 
applied.68 In addition, a subsidy of 30 % is granted to residential users who consume less than 
200 kW/h. Users who consume between 201 and 1,750 kW/h per month pay a contribution 
equivalent to 1.75 % of the invoice total, which is allocated to the Fire Service Fund.69 
4.56.   The installed capacity for generating electrical energy increased from 2,731 to 3,617 MW 
between 2013 and 2018. The use of renewable sources also increased during this period. In 2018, 
98.6% of electricity was generated from renewable sources, compared to 88.4 % in 2013 ( Chart 
4.3). Hydroelectric energy is the primary source of power, accounting for 73.5 % of energy generated 
in 2018. Dependence on this type of energy can be critical in periods of drought, such as the one 
that affected the country in 2014, w hen it had to resort to the use of thermal power plants to produce 
the electricity required.70 To reduce this dependence, it has invested in wind power plants, which 
has resulted in an increase in the use of this source of energy (from 4.8 % in 2013 to 15.8 % in 
2018). Geothermal power plants are also being used, generating 8.4 % of the energy supply in 2018; 
the use of biomass and solar energy is still in the early stages of development.  
Chart 4.3 Production of electrical energy by source, 2013 and 2018  
 
Source:  CENCE (2014 and 2019), Generación y Demanda: Informe Anual . Viewed at: 
https://appcenter.grupoice.com/CenceWeb/CenceDescargaArchivos.jsf?init=true&categoria=3&codig
oTipoArchivo=3008 . 
4.3  Manufactures  
4.57.   Since the last review, the manufacturing sector's contribution to GDP has continued to 
decrease, falling from 13.8 % in 2013 to 12.9 % in 2018. This trend, which had already been observed 
in the previous review, is largely due to the greater dynamism of other sectors of the economy, such 
                                                
64 Articles 3 and 31 of Law No. 7593 of 9 August 1996; and Academia de Centroamérica (2017), 
El sector eléctrico en Costa Rica . Viewed at: https://www.academiaca.or.cr/wp -content/uploads/2017/05/El -
sector -eléctrico -en-Costa -Rica.pdf . 
65 Online information . Viewed at: https://aresep.go.cr/audiencias . 
66 Getting the Deal Through (2016), Electricity Regulation  2017. Viewed at: 
https://www.whitecase.com/sites/whitecase/files/files/do wnload/publications/gtdt -electricity -regulation -
2017.pdf . 
67 Angulo J.E. (2013), "¿Es Costa  Rica un país caro?: Costo de vida, disparadores del costo de 
producción y retos para la competitividad", Vigésimo Informe Estado de la Nación en Desarrollo Humano 
Sostenible (2013), State of the Nation Programme. Viewed at: 
https://www.estadonacion.or.cr/files/biblioteca_virtual/020/economia/Angulo_CRcaro.pdf . 
68 Law No. 6826 of 8 November 1982 and Executive Decree No.  14082 of 29 November 1982.  
69 Article 40 of Law No. 8228 of 19 March 2002.  
70 GWP Central America (2016), Análisis socioeconómico del impacto sectorial de la sequía de 2014 en 
Centroamérica . Viewed at:  https://www.gwp.org/globalassets/global/gwp -cam_files/impacto -sequia -
2014_fin.pdf . 
2013
Geothermal
15.0%  Thermal
11.8%
Hydroelectric 
67.6%Biomass
0.9% 
Geothermal
8.4%  Thermal
1.4%
Hydroelectric
73.5%Biomass
0.7% 2018
Wind
4.8%
Wind 
15.8%Solar
0.1% WT/TPR/S/392 • Costa Rica  
 
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  as services. The manufacturing sector recorded an annual growth rate of 1.4 % in real terms between 
2013 a nd 2018. Employment in the industry has increased compared to 2013 (8.9 %); in 2018, the 
sector employed 10.8 % of the total labour force (Table 4.10). FDI flows remain significant, 
amounting to USD  1,266  million in 2017, or 46 % of the FDI total for that yea r (Section 1).  
Table 4.10 Principal indicators in the manufacturing sector, 2013 -18 
 
2013  2014  2015  2016  2017  2018  
Share of GDP (%, at current prices)a 13.8 13.3 12.4 1.4 12.7 12.9 
Real growth rates (%, at 2012 
prices)a 0.1 0.8 -5.1 4.5 3.3 2.9 
Employment (%)a 8.9 9.3 10.9 10.2 10.0 10.8 
Non-agricultural sector, 
WTO  definition:        
Exports        
Value (USD  million)  4,514.0  4,915.5  5,079.1  5,452.9  5,951.3  6,616.5  
Share of total exports  52.5 53.6 55.0 55.0 56.0 58.6 
Growth rate (%)  -1.7 8.9 3.3 7.4 9.1 11.2 
The 5 most important products at HS 4 -digit level  
(% of total non -agricultural products):      
9018 Instruments and appliances 
used in medical, surgical, dental or 
veterinary sciences  25.5 28.0 33.0 35.7 34.2 36.7 
9021 Orthopaedic appliances  6.8 6.0 8.2 9.1 10.5 10.8 
4011 New pneumatic tyres, of 
rubber  3.8 3.3 2.9 2.6 3.0 2.9 
3004 Medicaments, for therapeutic 
or prophylactic uses  1.7 2.6 2.9 2.8 2.7 2.8 
8544 Insulated wire, cable and 
other insulated electric conductors 
(..) 6.1 5.1 3.5 3.3 2.8 2.6 
Imports        
Value (USD  million)  13,273.4  13,729.8  12,954.1  13,265.2  13,885.7  14,535.5  
Share of total imports  88.0 88.2 87.8 87.1 87.3 87.7 
Growth rate (%)  0.9 3.4 -5.6 2.4 4.7 4.7 
The 5 most important products at HS 4 -digit level  
(% of total non -agricultural products):      
2710 Petroleum oils and oils 
obtained from bituminous minerals, 
other than crude  16.2 15.1 9.5 8.2 9.7 10.7 
8703 Motor cars and other motor 
vehicles principally designed for the 
transport of persons  4.2 4.4 5.5 6.2 5.4 4.4 
3004 Medicaments, for therapeutic 
or prophylactic uses  3.0 3.5 4.0 4.2 4.3 4.0 
8517 Telephone sets, including 
telephones for cellular networks  3.2 2.9 3.9 3.5 3.5 3.4 
9018 Instruments and appliances 
used in medical, surgical, dental or 
veterinary sciences  1.1 1.3 2.0 2.2 2.0 2.2 
Non-agricultural trade balance 
(USD million)  -8,759.4  -8,814.2  -7,875.1  -7,812.3  -7,934.5  -7,919.0  
a Definition of manufactures according to national accounts.  
Note:  The classification of the five main non -agricultural export and import products relates to 2018.  
Source:  WTO Secretariat calculations, based on data provided by the Costa Rican authorities and the Central 
Bank of Rica.  
4.58.   The manufact uring sector, like the agricultural sector, has two sides; Costa Rica has managed 
to develop high -tech manufactures, especially for export, while other branches have failed to achieve 
the same levels of competitiveness. During the period under review, the main export products have 
been medical, surgical, dental or veterinary instruments and orthopaedic appliances. These 
accounted for 25.5 % of manufactured exports in 2013, while in 2018 (most recent data), they 
accounted for 36.7 %. High-tech instruments are produced by companies that have benefited from 
the incentives provided under the Free Zone Regime (Section 3. 2.4.1). The production of goods in 
free trade zones continues to be significant, and the contribution of free trade area companies to 
exports of ma nufactures has gained much more importance since 2013. The branches of industry 
that operate outside the Regime have not achieved the same levels of productivity as those that 
have embraced it. Moreover, local industry has not managed to absorb the opportu nities created by 
foreign investment and the presence of high -quality multinational companies, such as those involved WT/TPR/S/392 • Costa Rica  
 
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  in technology transfer. In general, other important branches of industry (food products, beverages, 
tobacco and plastic products) have not  been competitive in international markets, and are more 
geared towards the domestic market.  
4.59.   Companies that are not established under the Free Zone Regime can benefit from the Inward 
Processing Regime (Sections 3. 2.4.1 and 3. 2.4.2) and other fiscal and fin ancial incentive 
programmes that promote manufacturing companies (Section 3. 3.1). 
4.60.   The average level of tariff protection afforded to the manufacturing sector (WTO definition of 
non-agricultural products) is relatively low: in 2019, the average tariff was 5 .6%, practically the 
same as in 2013 (5.5 %). In 2019, tariffs ranged between 0 % and 46 %. Most products (51 %) are 
taxed at a rate of 1 %, followed by a rate of 15 % (18.9 %) and 10 % (16.6 %). The highest average 
tariffs are applied in the clothing industry (14. 8%) and in the fish and fish products industry (12.2 %), 
followed by leather and rubber goods, footwear and travel goods (8.2 %). With regard to bound 
tariffs for non -agricultural products, these ranged between 0 % and 100 %. The 100 % bound 
products are automo tive vehicles (HS  8703, HS  8703, HS  8703 and HS  8703), followed by footwear, 
which is bound at 70 %. 
4.4  Services  
4.4.1   Financial services  
4.4.1.1   General characteristics  
4.61.   The National Financial System (SFN) is composed of financial intermediation, insurance, the 
securities market and the pension system . Financial activities and insurance accounted for 5.4 % of 
GDP in 2018.  
4.62.   The number of entities  operating in the SFN has remained relatively stable since 2013 
(Table  4.11) . The State continues to participate substantially in banking and insurance, although the 
market share of private financial entities increased during the review period . In 2018, State banks 
still accounted for 47 % of total assets in the SFN, in part because of the advantages they enjoy over 
private banks . For example, all deposits in State banks are guaranteed, while those in private 
commercial banks are not . State banks are exempt from an obligation imposed on private 
commercial banks, to transfer a specific percentage of their cu rrent-account deposits to the 
Development Credit Fund, and from other requisites as to financial penetration to be eligible to 
capture current -account deposits . In addition, State banks have a monopoly in respect of deposits 
by public agencies . The prefere ntial treatment granted to State banks has been detrimental to 
private banks and has contributed to a lack of competition in the banking sector, which represents 
one of the SFN's main problems .71 The authorities pointed out that State banks also have 
disadv antages and obligations.  
Table 4.11 The National Financial System (entities and total assets), 2013  and 20 18  
Supervisors/institutions  Number of entites  % of total assets  
2013  2018  2013  2018  
Supervisory Authority for Pensions (SUPEN)  18 18 22%  24%  
Operators of complementary pensions  6 6 48% 51% 
Other institutions  12 12 52% 49% 
General Supervisory Authority for Financial Entities 
(SUGEF)  58 49 61%  61%  
State commercial banks  3 2 44% 36% 
Public banks created by special laws  2 2 11% 11% 
Private commercial banks  11 11 28% 34% 
Foreign exchange dealers  5 2 0% 0% 
Credit unions  29 24 9% 10% 
Non-bank financial institutions  5 5 1% 1% 
Other institutions  3 3 7% 8% 
General Supervisory Authority for Securities (SUGEVAL)  65 62 13%  10%  
Securities exchanges  1 1 0% 0% 
Central securities depositories  1 1 0% 0% 
Stock exchange offices  17 16 6% 8% 
Investment fund management companies  14 14 1% 1% 
                                                
71 OECD (2018), OECD Economic Surveys: Costa Rica 2018 . Viewed at:  https://www.oecd -
ilibrary.org/economics/oecd -economic -surveys -costa-rica-2018_eco_surveys -cri-2018-en. WT/TPR/S/392 • Costa Rica  
 
- 111 - 
 
  Supervisors/institutions  Number of entites  % of total assets  
2013  2018  2013  2018  
Clearing and liquidation companies  1 1 - - 
Custodial entities  25 23 93% 91% 
Other institutions  6 6 0% 0% 
General Supervisory Authority for Insurance (SUGESE)  12 13 5% 4% 
State insurance entities  1 1 94% 87% 
Private insurance entities  11 12 6% 13% 
Reinsurance entities  0 0 n.a. n.a. 
Total no. of entities/assets  153 144 100%  100%  
n.a. Not applicable.  
Source:  Information provided by the authorities.  
4.63.   The institutions of the SFN are supervised by four supervisory authorities under the National 
Council for Financial System Supervision (CONASSIF) ( Chart 4.4).72 The Board of Directors of 
CONASSIF is composed of representatives from the public, private and labour s ectors . The 
superintendents also participate in CONASSIF meetings, but without the right to vote.73 
Chart 4.4 Institutions responsible for regulating and supervising the National Financial 
System  
 
Source:  WTO Secretariat.  
4.64.   The SFN is governed by several laws, some of which were amended on various occasions from 
2013 to 2019 (Table  4.12).  
4.65.   In addition to the laws mentioned above, the SFN is also regulated by CONASSIF, either 
ex officio  or following a proposal from a supervisory authority . The regulations proposed to 
CONASSIF by the supervisory authorities are intended to improve the functioning of financial entities  
and are therefore based on best international practices . SUGEF, for example, considers guidelines 
issued by the Basel Committee on Banking Supervision, the Association of Supervisors of Banks of 
the Americas, and/or the International Accounting Standards Board,  among other sources, in 
proposing any recommendation to CONASSIF .74 There is a public  consultation period prior to 
CONASSIF approval of any regulation ; once approved, such regulations are published in the Official 
Journal . During the period under rev iew several regulations were adopted and amended, introducing 
new risk management requirements, for instance, for the financial intermediation and insurance 
markets.75 
                                                
72 Online information . Viewed at: http://conassif.fi.cr . 
73 Articles 169 -171 of Law No. 7732 of 27 January  1998, and Camacho A.R. (2014), El Sistema 
Financiero Costarricense en los últimos 25 años: regulación y supervisión , Academia de Centroamérica. Viewed 
at: https://www.academiaca.or.cr/wp -content/uploads/2017/03/regulacion -y-supervision.pdf . 
74 Online information . Viewed at: 
https://www.sugef.fi.cr/servicios_sugef/preguntas_frecuentes/index.html . 
75 Online information . Viewed at: https://www.sugef.fi.cr/normativa/normativa_vigente  and 
http://www.sugese.fi.cr/marco_legal/acuerdos . 
Supervisory Authority for 
Pensions ( SUPEN ) General Supervisory Authority 
for Financial Entities ( SUGEF ) General Supervisory Authority 
for Insurance ( SUGESE )General Supervisory Authority 
for Securities ( SUGEVAL )
Pension operators Securities market Insurance market Financial intermediariesNational Council for Financial System Supervision (CONASSIF) Regulation SupervisionWT/TPR/S/392 • Costa Rica  
 
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  Table 4.12 Main laws regulating the Nation al Financial System  
Title Reforms 
during 
2013 -2019  Brief description of the changes made  
Financial intermediation  
Law on the Organization of the National 
Banking System (Law No. 1644) of 
26 September  1953 2015 Modification of the powers of the Governing Board 
of the Development Banking System (SBD) to 
include the determination of financial intermediation 
margins and effective interest rates for SBD 
operations.  
2015 Modification of the provisions on commercial bank 
loan operations  
2016 Modification of the amount fined for unauthorized 
use of the word "bank" or "banking establishment"  
2018 Modification of the number of State commercial 
banks (through mergers and acquisitions)  
Law Regulating Non -Bank Financial 
Enterprises (Law No. 5044) of 
13 September  1972 n.a. n.a. 
Law Regulating the Financial 
Intermediation Activity of Cooperative 
Organizations (Law No.  7391) of 
24 May 1994 2013 Modification of the operations in which credit unions 
can engage  
Law on the Organization of the Central 
Bank of Costa Rica (Law No. 7558) of 
27 November  1995 2014 Modification of the conditions under which private 
financial entities can have access to the rediscount  
Modification of the list of sanctions for illegal 
financial activities  
2015 Modification of the limits on operations that 
financial intermediaries can perform  
2018 Modification of the functions and duties of the Board 
of Directors  
 2019 Decoupling of the appointment of the President of 
the Central Bank of Costa Rica (BCCR) from the 
political cycle ; modification of the grounds for 
his/her dismissal ; elimination of the Finance 
Minister 's right to vote in the BCCR Board of 
Directors.  
Law of 2 7 November  2014 on the 
Comprehensive Reform of the 
Development Banking System  Law (Law 
No. 9274)  n.a. Expansion of the number of SBD beneficiaries and 
strengthening of operating conditions for the 
various SBD funds  
Securities market  
Law Regulating the Securities Market 
(Law No. 7732) of 2 7 January  1998 2018 Modification of the provisions for naming 
beneficiaries  
Insurance Market  
Law Regulating the Insurance Market 
(Law No. 8653) of 7 August  2008 n.a. n.a. 
Law Regulating the Insurance Contract 
(Law No. 8956) of 1 7 June 2011 n.a. n.a. 
Pensions  
Law on the Complementary Private 
Pensions Regime (Law No. 7523) of 
7 July 1995 n.a. n.a. 
n.a. Not applicable.  
Source:  WTO Secretariat.  
4.66.   CONASSIF also issues "crosscutting" regulations, to be followed by all supervised entities but 
particularly intended for financial groups . According to SUGESE, these crosscutting regulations are WT/TPR/S/392 • Costa Rica  
 
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  necessary for the SFN to function properly .76 There are currently 11 such crosscutt ing regulations, 
including several that have been amended since 2013 and three newly adopted ones.77 
4.67.   During the period between January  2013 and June 2019, Costa Rica amended its prudential 
supervision rules to continue its gradual implementation of Basel st andards, not only for banks but 
for the entire SFN . For example, the prudential framework  has been modified to implement the 
risk-based supervision model . The 2010 Regulations on comprehensive risk management were 
updated in 2017 to modify the definition o f exchange risk and interest rate risk . Among other 
measures taken to improve the prudential framework  are a higher risk weighting of mortgages on a 
high loan value basis . The Basel principles applied between 2013 and 2018 related to liquidity risk ; 
credit risk; market risk ; concentration risk and large exposure limits ; interest rate risk in the banking 
book; transfer risk ; capital adequacy ; disclosure and transparency ; problem assets, provisions and 
reserves ; the risk management process ; internal control a nd audit ; financial reporting and external 
audit; and consolidated supervision . Those efforts notwithstanding, Costa Rica would benefit and 
have a stronger SFN, according to the IMF, from adopting all the Basel III rules .78  
4.68.   The IMF finds that supervision of the SFN has improved but that the supervisory authorities 
lack the "key legal powers, tools, and responsibilities" essential for the early identification of risks 
and for a proactive approach to adopting corrective measures .79 A bill has ther efore been proposed 
to strengthen financial supervision . If approved it would enable SUGEF to perform consolidated 
supervision of all entities forming part of a financial group, including foreign banks . The bill also 
proposes to create a more dissuasive sa nctions regime, to improve compliance with prudential 
standards.80 
4.69.   In the insurance market, in the interests of improving prudential supervision, SUGESE is in 
the process of implementing a solvency regime based on European solvency capital requirements 
(Solvency II) . Implementation of this regime is expected to start in 2022 .81 
4.70.   Matters related to competition in the SFN are regulated by the Commission for the Promotion 
of Competition (COPROCOM) as well as the supervisory authorities . COPROCOM investigates (and  
sanctions) anticompetitive practices, whereas the supervisory authorities are responsible for 
authorizing economic concentrations . Both are required to consult each other in taking decisions . 
The opinions of COPROCOM are not binding on them, but the super visory authorities are required to 
justify any decision that does not take its opinion into account, and vice versa .82 During the period 
under review, in 2018, the merger of two State commercial banks was authorized : Banco de 
Costa  Rica absorbed the Agricul tural Credit Bank of Cartago (Bancrédito) .83 In addition, 17 operators 
in the insurance market were sanctioned for anticompetitive practices : these included insurance 
companies, which were fined, and intermediaries, whose licenses were suspended.84 
4.71.   Financial  inclusion in Costa  Rica has deepened since the last review, in 2013, because of 
diversification and penetration of mobile telecommunication services, among other factors . 
Initiatives launched in 2015 included simplified record accounts  (CES) and SINPE Móv il, which have 
provided wider public access to banking services . The CES is a type of account that customers with 
                                                
76 SUGESE (2017), Memoria Institucional 2016  and SUGESE (2016), Memoria Institucional 2015 . Viewed 
at: https://www.sugese.fi.cr/FlipBook/index.html?/seccion -
publicaciones/MemoriaInstitucional/Memoria_2016.pdf  and 
https://www.sugese.fi.cr/FlipBook/index.html?/seccion -publicaciones/MemoriaInstit ucional/Memoria_2015.pdf . 
77 Online information . Viewed at: http://www.sugese.fi.cr/marco_legal/reglamentos.html . 
78 IMF (2017), Costa  Rica – 2017 Article IV Consultation – Press Release; a nd Staff Report , IMF Country 
Report No. 17/156. Viewed at: https://www.imf.org/en/Publications/CR/Issues/2 017/06/27/Costa -Rica-2017-
Article -IV-Consultation -Press -Release -and-Staff-Report -44991 . 
79 IMF (2018), Costa Rica – Financial System Stability Assessment , IMF Country Report No.  18/30. 
Viewed at: http://www.imf.org/en/Publications/CR/Issues/2018/04/02/Costa -Rica-Technical -Assistance -
Report -Financial -Sector -Stability -Review -45729 . 
80 Online information . Viewed a t: http://www.asamblea.go.cr/Centro_de_informacion/Consultas_SIL 
/Pginas/Proyectos%20de%20ley.aspx . See also: IMF (2018), Costa Rica – Financial System Stability 
Assessment , IMF Country Report No.  18/30.  
81 Information provided by the authorities.  
82 Article 27 bis of Law No.  7472 of 20 December 1994 and WTO document WT/TPR/M/286/Add.1 
of 9 December  2013.  
83 Law No. 9605 of 12 September 2018.  
84 Online information . Viewed at: 
http://www.sugese.fi.cr/informacion_asegurados/participantes_sancionados.html . WT/TPR/S/392 • Costa Rica  
 
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  low risk profiles can open online using only their identity card number .85 SINPE Móvil allows use of 
a cellular telephone to make payments in s mall amounts .86 This progress notwithstanding, additional 
efforts are needed to further deepen financial inclusion : it was estimated in 2015 that some 32 % of 
the population did not have access to bank products .87 Such initiatives as the Alliance for 
Financia l Inclusion, in which SUGEF is a participant, have therefore been implemented.  
4.4.1.2   Banks  
4.72.   Commercial banking is regulated by the Law on the Organization of the National Banking 
System  (Law No. 1644) of 1953 (Table 4.12), as well as by regulations issued by CONA SSIF.88 
SUGEF is responsible for supervising commercial banks, both public and private.  
4.73.   The most important structural change in the financial intermediation market during the period 
reviewed was the absorption of one State bank, Bancredito, by another, Banco de Costa  Rica.89 As of 
2019, 16 Banks were operating in the banking sector : two State commercial banks 
(Banco  de Costa  Rica and Banco Nacional de Costa Rica) ; two public banks created by special laws 
(Banco  Popular y de Desarrollo Comunal and  Banco Hipotecario de la Vivienda (BANHVI)90; 
and 11 private commercial banks, nine of which are subsidiaries of foreign banks .91 
4.74.   While there are fewer public banks than private ones, the share of State banks in Costa Rica 's 
commercial banking sector is stil l substantial, accounting in 2018 for 52 % of total bank assets and 
60% of loan portfolio . Most of this activity is concentrated among foreign banks, with more than 
90% of assets and liabilities .92 These banks conduct most of their operations in foreign exch ange.  
4.75.   In terms of commercial presence, foreign private commercial banks can have subsidiaries in 
Costa Rica but not branches . There are no limits on the number of their subsidiaries or operations . 
Foreign banks can also open representative offices . There a re no limits either on private 
shareholdings (domestic and foreign) in private commercial banks established in Costa Rica, or on 
deposits that Costa Ricans can make in banks established abroad.93 
4.76.   Private commercial banks are required to establish themselves  as corporations94 and, since 
June 2018, maintain minimum capital of CRC 15,610 million .95 Once these establishment 
requirements have been completed, SUGEF issues authorization (renewable) to operate for 
30 years .96 SUGEF and BCCR approval are required to ope n and close a banking agency ; there is no 
limit on the number of banking agencies in the market.97 
                                                
85 ECLAC, 2017 , Recent developments, current situation and prospects for  financial 
inclusion  among  small-scale rural producers in Costa Rica. Project document. Viewed at: 
https://repositorio.cepal.org/hand le/11362/43170 . 
86 Online information . Viewed at: https://www.bccr.fi.cr/seccion -sistema -de-pagos/tarifas -y-comisiones -
del-sinpe/comisiones -cobradas -por-las-entidades -financieras/sinpe -m%C3%B3vil . 
87 Information provided by the authorities.  
88 Online information viewed at: https://ww w.sugef.fi.cr/normativa/normativa_vigente . 
89 Law No. 9605 of 12 September 2018.  
90 Ministry of Finance (2018), Compendio Económico . Viewed at: 
https://www.hacienda.go.cr/docs/5a905917ec3f1_Compendio%20Economico%20Republica%20de%20Costa%
20Rica%20Enero%202018.pdf . 
91 Online information viewed at: 
https://www.sugef.fi.cr/publicaciones/listado_entidades_sujetas_fiscalizacion . 
92 OECD (2018), OECD Economic Surveys: Costa  Rica 2018 . Viewed at: https://www.oecd -
ilibrary.org/economics/oecd -economic -surveys -costa-rica-2018_eco_surveys -cri-2018-en. 
93 WTO document WT/TPR/S/286/Rev.1 of 27 November 2013 . 
94 Article 141 of Law No. 1644 of 26 September 1953.  
95 Article 151 of Law No. 1644 provides that minimum capital cannot fall below CRC 100 million. BCCR 
regularly updates its minimum capital by means of decisions by its Board of Directors. The last update  was 
made on 25 June 2018 by means of Acuerdo BCCR  5828-2018. Viewed at: https://www.bccr.fi.cr/seccion -
marco -legal/marco -legal. 
96 Articles 142 -143 of Law No. 1644 of 26 September 1953,  and SUGEF Agreement 8 -08. 
97 Article 34 of Law No. 1644 of 26 September 1953.  WT/TPR/S/392 • Costa Rica  
 
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  4.77.   Commercial banking in Costa Rica continues to be characterized by regulatory asymmetries 
in favour of State banks that distort the market and undermine compet ition.98 These include "bank 
tolls", deposit guarantees and a monopoly on deposits by public entities.  
4.78.   Commercial banks are required to maintain a legal minimum reserve of 15 % of total 
deposits .99 To attract deposits to current accounts, private commercial banks must comply with the 
"bank tolls" requirement or an alternative mechanism . "Bank tolls" consist of transferring a specified 
percentage of a bank 's total current account deposits to the Development Credit Fund (FCD) (15 % of 
deposits in nati onal currency or 17 % of total deposits in national currency and foreign exchange) .100 
State banks, with the exception of BANHVI, use this Fund and pay a below -market interest rate to 
private banks ( Chart 4.5). Since 2014, private commercial banks have the alternative option of 
opening four agencies outside the central region and using 10 % of their deposits to grant loans 
through second -tier banks for specific development p rogrammes ( Chart 4.5).101 This alternative may 
not be viable, however, for small banks lacking economies of scale in sparsely populated areas.102 
Chart 4.5 Support mechanisms for development banking  
 
a 15% of deposits in national currency and 17 % of total deposits in national currency and foreign 
exchange . 
b In calculating these percentages, the legal minimum reserve must be deducted from total deposits.  
c BANHVI is the only State bank that does not participate in the SBD.  
d The interest rate can be either : (a) 50 % of the basic deposit rate calculated by BCCR, in national 
currency ; or (b) 50 % of the LIBOR rate in US dollars.  
e 10% of total deposits in both national currency and foreign exchange.  
Source:  Article 59 of Law No. 1644 of 26 September  1953, and Article 53 of Law No. 9274 of 
12 November  2014. 
4.79.   Under the Law on the Organization of the National Banking System, the State guarantees all 
deposits, in national currency and foreign exchange, made in State commercial banks .103 Deposits 
in private commercial banks are not insured by the State . The Costa Rican Banking Association does, 
however, offer insurance for deposits in  private commercial banks, up to a maximum of USD 10,000 
                                                
98 Academia de Centroamérica (2018), Asimetrías regulatorias en el sistema financiero costarricense . 
Viewed at: https://www.academiaca.or.cr/wp -content/uploads/2018/10/Asimetrías -regulatorias -en-el-sistema -
financiero -costarricense -FINAL.pdf . 
99 Article 60 of Law No. 1644 of 26 September 195 3 and o nline information . Viewed at: 
https://www.sugef.fi.cr/servicios_sugef/preguntas_frecuentes . 
100 The 15 % was introduced in 2014. Until 2014, there was only one requirement, that of transferring 
17% of total deposits in national currency and foreign exchange (Article 59 of Law No. 1644 
of 26 September  1953). 
101 Article 59 of Law No. 1644 of 26 September 1953.  
102 Academia de Centroamérica (2018), Asimetrías regulatorias en el sistema financiero costarricense . 
Viewed at: https://www.academiaca.or.cr/wp -content/uploads/2018/10/Asimetrías -regulatorias -en-el-sistema -
financiero -costarricense -FINAL.pdf . 
103 Article 4 of Law No. 1644 of 26 September 1953; and OECD (2018), OECD Economic Surveys: 
Costa  Rica 2018 . Viewed at: https://www.oecd -ilibrary.org/economics/oecd -economic -surveys -costa -rica-
2018_eco_surveys -cri-2018-en. 
Banco de Costa Rica 
(BCR) 
Development Credit 
Fund (FCD)
State bankscPrivate 
commercial 
banks
Development 
Banking 
System (SBD) Administers
Enterprises and entrepreneurs with projects 
not viable for private commercial banksLend at preferential ratesPay interestdOpening of 4 agencies 
outside of the central 
region
Specific development 
programmes defined by 
the Government Bank tolls Alternative mechanism to 
bank tolls
LendsTransfer of 15% or 17% 
of total 30 -day depositsb
Lend directly or through 
second -tier institutions, 
10% of total 30 -day 
depositsbWT/TPR/S/392 • Costa Rica  
 
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  per customer .104 When the last review was conducted, in 2013, Costa Rica mentioned a bill to create 
deposit insurance for private commercial banks .105 Since then, several other bills to create such 
insurance have been presented to the Legislative Assembly but were all tabled for technical or 
political reasons .106 In 2018, the OECD recommended the introduction of such insurance for private 
banks for the sake of levelling the playing field.107 
4.80.   As noted, State commercial banks enjoy a monopoly for the deposits of public entities . The 
Law on the Organization of the National Banking System requires the State, as well as State 
enterprises and entities, to make their deposits in State commercial banks only .108 This exclusive 
access to the deposits of public entities – such as the Costa Rican Electricity Institute (ICE), RECOPE, 
the Costa Rican Social Security Fund and the Ministry of Education – represents a major source of 
economic resources for State commercial  banks.109 
4.81.   When the last review was conducted, in 2013, Costa Rica indicated that the regulatory 
asymmetries did not run counter to the principle of national treatment, because they applied to 
Costa Rican as well as foreign private banks and did not limit ma rket access . Costa Rica also indicated 
that the regulatory asymmetries were compatible with its commitments under the 
GATS  framework .110 These measures can, however, distort the market, since they permit public 
banks to obtain low -cost funding at the expense  of private banks . So, apart from being a market 
failure to be corrected, these regulatory asymmetries could result in suboptimal resource allocation.  
4.82.   The Costa Rican banking system continues to be characterized by its high level of dollarization . 
As indic ated earlier, however, this is a phenomenon that mainly affects the private banks . In 2018, 
about 69 % of total lending by private commercial banks, but only 35 % of that by State commercial 
banks, was in foreign exchange . The high level of dollarization of bank lending is a continuing concern 
for BCCR, for two reasons . First, BCCR has limited room for injecting liquidity dollars into the 
economy should it need to intervene as a lender of last resort . Second, a good portion of the loans 
denominated in dollars  have gone to borrowers without foreign exchange earnings . This poses a 
high risk of insolvency should the colón depreciate or interest rates in dollars rise, affecting the 
borrower 's capacity to repay .111 According to BCCR, the outstanding balance of foreig n exchange 
loans to borrowers lacking foreign exchange income was reduced in 2017112 as a result of regulatory 
changes imposing stricter conditions on foreign exchange lending .113 In 2018, however, those 
provisions were adjusted to reverse a slowdown in bank l ending.  
4.83.   Between 2013 and 2018 (August) bank lending rose significantly, both in amount, from 
CRC 12.4 million  to CRC 20.4 million , and as a percentage of GDP, from 49.9 % to 59.6 %.114 The 
distribution of bank lending has not changed substantially since 2013 ( Table 4.13) . Commercial loans 
have gone primarily to the services and trade sectors . Consumer loans during the review period 
represented more than 30 % of the total annual portfolio . In 2018, according to the IMF, Costa Rican 
                                                
104 WTO document WT/TPR/S/286/Rev.1 of 27 November 2013.  
105 WTO document WT/TPR/M/286/Add.1 of 9 December 2013.  
106 Academia de Centroamérica (2018), Asimetrías regulatorias en el sistema financiero costarricense . 
Viewed at: https://www.academiaca.or.cr/wp -content/uploads/2018/10/Asimetrías -regulatorias -en-el-sistema -
financiero -costarricense -FINAL.pdf . 
107 OECD (2018), OECD Economic Sur veys: Costa  Rica 2018 . 
108 Article 60 of Law No. 1644 of 26 September 1953.  
109 Academia de Centroamérica (2018), Asimetrías regulatorias en el sistema financiero costarricense . 
110 WTO document WT/TPR/M/286/Add.1 of 9 December 2013.  
111 IMF (2018), Costa Rica – Financial System Stability Assessment , IMF Country Report No.  18/30. 
Viewed at: http://www.imf.org/en/Pub lications/CR/Issues/2018/04/02/Costa -Rica-Technical -Assistance -
Report -Financial -Sector -Stability -Review -45729 ; OECD (2018), OECD Economic Surveys: Costa  Rica 2018 . 
Viewed at: https://www.oecd -ilibrary.org/economics/oecd -economic -surveys -costa-rica-2018_eco_surveys -cri-
2018-en; and State of the Nation Programme (2017), Informe  Estado de la Nación 2017 . Viewed at: 
https://www.estadonacion.or.cr/inicio/estado -nacion -costa-rica. 
112 Central Bank of Costa Rica (2018), Memoria Anual 2017 . Viewed at: 
https://activos.bccr.fi.cr/sitios/bccr/publicaciones/DocMemoriaAnual/Memoria_Anual_2017.pdf . 
113 CONASSIF (2018), Informe de Gestión 2012 -2017. Viewed at: 
http://www.conassif.fi.cr/informes/ex -
funcionarios/19_Informe%20final%20de%20gestion%20de%20J.%20Cascante.pdf . 
114 Information provided by the authorities.  WT/TPR/S/392 • Costa Rica  
 
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  households were highly leveraged and the terms of their loans increasingly long (ten years for 
consumer loans and 30 years (or more) for mortgages) .115 
Table 4.13 Loan p ortfolio of public and private commercial banks, 2013 -18 (August)  
Loan portfolio  2013  2014  2015  2016  2017  2018 
(August)  
Total (in  million s of 
colones)  12.4 14.6 16.3 18.4 20.0 20.4 
By type of loan:  (% of total lending)  
Commercial  39.8 40.6 40.4 40.8 39.6 38.8 
Agricultural  2.5 2.3 2.1 2.3 2.1 2.1 
Trade  12.1 12 11.5 11.4 11.1 10.9 
Construction  2.8 2.7 2.7 2.6 2.4 2.5 
Industry  4.7 4.8 4.1 4.0 3.8 3.5 
Services  11.3 11.8 12.7 13.1 12.9 12.7 
Other activities  6.4 7.0 7.3 7.4 7.3 7.1 
Consumer  31.4 31.5 31.8 31.8 32.7 33.2 
Housing  28.8 27.9 27.8 27.4 27.7 28.0 
Bank loans/GDP (%)  49.9 53.6 55.7 59.3 61.1 59.6 
Source:  Data provided by the authorities.  
4.84.   Bank default rates remain moderate, but rose in 2017 -18. State commercial banks have a 
higher default rate (around 2.9 %), than private commercial banks (1.6 %).116 
4.85.   Between 2013 and 2019, Costa  Rica continued to strengthen its prudential supervision of the 
banking system, implementing the Basel principles to that end . Between 2015 and 2019 it gradually  
adopted the Liquidity Coverage Ratio  (Box 4.2) . In 2017, SUGEF adopted the minimum capital 
requirements for market risk under Basel III, as a means to protect bank capital adequacy . According 
to a study by S&P Global Ratings, banking regulation in Costa Rica has improved in recent years but 
still lags behind international standards . S&P recommended that SUGEF gradually adopt the Basel  III 
parameters, which would require it to adopt a broader definition of capital (according to the study, 
the capital  base of commercial banks consists primarily of basic ( tier 1) capital).117 
Box 4.2 Basel principles in the banking sector  
Definition of capital : The definition of capital used is the one established by Basel I ( tier 1 and 2 capital 
with deductions). The adoption of this definition in 1996 entailed some adjustments.  
Credit risk : The standardized Basel II approach is used . The latest reforms adopted by the Basel 
Committee do not appear in the medium -term regulatory  timetable.  
Operational risk : The basic approach is used (15% of average gross operating profit) . The latest reforms 
adopted by the Basel Committee do not appear in the medium -term regulatory timetable.  
Market risk : The approach followed departs from the Basel II standard approach . The latest reforms 
adopted by the Basel Committee  do not appear in the medium -term regulatory timetable.  
Situation with respect to Basel III (capital and leverage) : Adoption of the Basel III definition 
(start-up capital and  liquidation) and of the leverage indica tor is expected soon.  
Situation with respect to Basel III (liquidity) : In April 2013 the Liquidity Coverage Ratio (LCR) and the 
liquidity risk management framework were adopted . The LCR was introduced gradually, acc ording to a 
timetable:  
1 January  2015 Minimum LCR : 60% 
1 January  2016 Minimum LCR : 70% 
1 January  2017 Minimum LCR : 80% 
1 January  2018 Minimum LCR : 90% 
1 January  2019 Minimum LCR : 100% 
Adoption of the Stable Net Funding Ratio does not appear in the medium -term regulatory timetable.  
                                                
115 IMF (2018), Costa Rica – Financial System Stability Assessment , IMF Country Report No.  18/30. 
Viewed at: http://www.imf.org/en/Publications/ CR/Issues/2018/04/02/Costa -Rica-Technical -Assistance -
Report -Financial -Sector -Stability -Review -45729 . 
116 Information provided by the authorities.  
117 S&P Global Ratings (2017), Análisis de Riesgos de la Industria Bancaria por País: Costa Rica , 
18 May 2017. Viewed at: 
https://www.spratings.com/documents/20184/1493074/FI_BICRA_Mayo18_201 7_AnalisisdeRiesgosdelaIndust
riaBancariaporPaisCostaRica/daa65739 -068a-4283-94c5-cfd704aad96c . WT/TPR/S/392 • Costa Rica  
 
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  Transparency around capital : There are legal limitations as to the disclosure of information on the capital 
adequacy ratio . The Law on the Organization of the BCCR linked the level of the solvency indicator with the 
entity's rating, so it has not been agreed to publish solvency ratios or require entities to reveal them.  
Source:  Information  provided by SUGEF.  
4.86.   Banking sector performance since 2013 has been satisfactory from the standpoint of solvency, 
albeit with relat ively narrow profit margins, particularly in the case of State banks (Table  4.14) –
despite the advantages those banks enjoy : bank tolls, deposit guarantees and the monopoly for 
deposits by public institutions . The profitability of State banks is limited by  their obligation to allocate 
resources for specific purposes, including objectives of the National Development Plan (PND), the 
Financing for Development Fund (FOFIDE) and the Development Banking System (SBD), as well as 
the financing of government entitie s (transfers/parafiscal charges) .118 In 2018, the parafiscal 
charges of State banks represented 38 % of their profits . In 2018 the mandatory contributions and 
taxes paid by State banks represented 76 % of their net income.119 
Table 4.14 Bank soundness indicators, 2013 -18 
 2013  2014  2015  2016  2017  2018  
Capital adequacy ratio (CAR)  14.5 14.1 14.1 14.1 13.9 14.2 
Risk-weighted CAR  16.6 16.6 16.2 16.4 16.5 16.7 
Non-performing loans/total loans  1.8 1.6 1.7 1.6 2.1 2.1 
Loans in foreign exchange/total loans  41.5 40.6 41.1 40.3 38.6 38.5 
Deposits/total liabilities  74.9 74.4 71.4 72.0 73.3 73.8 
Deposits/total loans  97.6 95.0 90.2 89.6 91.9 91.2 
Return on assets (ROA)  1.2 1.2 1.0 1.2 0.9 0.9 
Return on equity (ROE)  8.2 8.2 7.3 8.8 6.5 6.8 
Liquid assets/total assets  30.4 29.1 28.9 28.2 29.1 28.0 
Liquid assets/short -term liabilities  101.2  98.6 97.8 96.0 102.7  98.6 
Source:  Data provided by the authorities.  
4.87.   During the review period, State commercial banks had an intermediation margin (difference 
between asset and  liable interest rates)  lower than that for private banks (Table  4.15) . Although the 
financial intermediation margins decreased over the review period, they have remained relatively 
high. The margins in  national currency are systematically higher, in part, because there is less 
competition in that segment, and also in principle because of the inflation risk . Over the last decade, 
however, the inflation rate fell much faster than did intermediation margin s in colones .120 State 
commercial banks pay much less favourable rates than for deposits since these are already 
guaranteed, while private banks need to offer their customers a higher return to compensate for the 
lack of deposit insurance . In paying lower re turns, State commercial banks can lend at lower interest 
rates, which distorts the market.121 
Table 4.15 Financial intermediation margin, 2013 -18 
(%) 
Intermediation margin  2013  2014  2015  2016  2017  2018  
National banking system        
In colones  6.7 6.9 6.7 6.5 6.0 6.3 
In US dollars  4.1 3.4 3.4 3.7 3.4 4.0 
State commercial banks  
In colones  5.7 5.8 5.8 5.9 5.2 4.9 
                                                
118 The parafiscal transfers made by State banks are not included in the national budget and go directly 
to government entities, such as the National Institute for  the Promotion of Cooperatives (INFOCOOP), National 
Commission for Education Loans (CONAPE), National Commission for Risk Prevention and Emergency Response 
(CNE), and the Disability, Old Age and Death Regime (IVM).  
119 Academia de Centroamérica (2018), Asime trías regulatorias en el sistema financiero costarricense . 
Viewed at: https://www.academiaca.or.cr/wp -content/u ploads/2018/10/Asimetrías -regulatorias -en-el-sistema -
financiero -costarricense -FINAL.pdf ; and OECD (2018), OECD Economic Surveys: Costa  Rica 2018 . Viewed at: 
https://www.oecd -ilibrary.org/economics/oecd -economic -surveys -costa-rica-2018_eco_surveys -cri-2018-en. 
120 Corrales G. (2016), "La eficiencia operativa de la banca costarricense y su impacto sobre la rigidez 
en las tasas de interés", Viges imosegundo Informe Estado de la Nación en Desarrollo Humano Sostenible 
(2015) , State of the Nation Programme. Viewed at: 
https://estadonacion.or.cr/files/biblioteca_virtual/022/Oportunidades/Corrales_2016b.pdf . 
121 Academia de Centroamérica (2018), Asimetrías regulatorias en el sistema financiero costarricense . 
Viewed at: https://www.academiaca.or.cr/wp -content/uploads/2018/10/Asimetrías -regulatorias -en-el-sistema -
financiero -costarricense -FINAL.pdf . WT/TPR/S/392 • Costa Rica  
 
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  Intermediation margin  2013  2014  2015  2016  2017  2018  
In US dollars  4.1 2.5 2.7 3.3 2.8 3.5 
Private commercial banks  
In colones  8.9 8.7 8.6 7.4 7.6 10.9 
In US dollars  4.2 4.1 4.0 4.0 3.9 4.4 
Source:  Information provided by the authorities.  
4.88.   Costa Rica 's Development Banking System (SBD) consists of three funds : the National 
Development Trust Fund (FINADE)122, the Financing for Development Fund  (FOFIDE) and the 
Development Credit Fund ( FDC) (Table  4.16) . All public banks except the Banco Hipotecario de la 
Vivienda (BANHVI), participate in the SBD .123 In 2013 and 2014, the SBD funds were not used at 
all. In 2014, SBD operations were reviewed with the aim of improving conditions of access to credit 
and increasing the number of beneficiaries .124 The funds began to be used in 2015, but to a still 
limited extent (only 3 %). Use increased to 37 % in 2018 . The rates (average wei ghted) ranged 
between 3.66 % for industry and 10.5 % for consumers.125 
Table 4.16 Funds of the Development Banking System  
Fund  Funding  
FINADE  Starting in 2014, 15% tax on interest and securities market earnings through branchless banking, 
or "banca de maletín "a 
FOFIDE  5% of public bank profits  
FCD "Bank tolls"  
a "Banca de maletín " refers to foreign domiciled banks that deposit or invest in the SFN.  
Source:  State of the Nation Programme (2017), Informe  Estado de la Nación 2017 . 
4.4.1.3   Insurance  
4.89.   The insurance market is governed by the Law Regulating the Insurance Market 
(Law No. 8653) of 2008 and the Law Regulating the Insurance Contract (Law No.  8956) of 2011 
(Table 4.12), as well as by regulations issued by CONASSIF . SUGESE supervises market agents.  
4.90.   The following entities can operate in the insurance market : (a) Companies established as 
corporations, including the subsidiaries of foreign companies ; (b) the branches of foreign companies ; 
and (c)  insurance cooperatives (those offering services only to their members) . There are no limits 
on the number or type of operations that such subsidiaries or branches can engage in . Foreign 
insurance companies can  also open representative offices in Costa  Rica without a legal 
representative being required.126 
4.91.   To offer services, insurance companies need administrative authorization from SUGESE .127 
They must also maintain a minimum level of capital, which varies dependin g on the category of 
insurance offered . General insurance and personal insurance companies are required to maintain a 
minimum capital level of 3  million  Development Units (UD) . For companies offering both general and 
personal insurance, the minimum level i s 7 million UDs, and for reinsurers, 10  million UDs.128 
4.92.   There are also insurance intermediaries operating in the market, including insurance agencies, 
insurance agents, insurance brokerages, insurance brokers and self -issue insurance operators 
(Box 4.3). With the exception of self -issue insurance operators, intermediaries are required to obtain 
                                                
122 In 2019, the National Development Trust Fund (FINADE) was eliminated and the National 
Development Fund (FONADE) created (Law No. 9654 of 14 February 2019).  
123 Article 2 of Law No. 9274 of 12 November 2014. Online information viewed at: 
https://www.sbdcr.com/webcenter/portal/sbdprod/pages_home . 
124 Sancho F. (2017), Avances del SBD como política pública de inclusión financiera , State of the Nation 
Programme. Viewed at: https://www.estadonacion.or.cr/files/biblioteca_virtual/023/Economicas/Sancho -
2017.pdf . 
125 Information provided by the authorities.  
126 Articles 7 and 17 of Law No. 8653 of 22 July 2008.  
127 Article 7 of Law No.  8653 of 22 July 2008.  
128 BCCR publishes the value of the UD daily. Online information: 
http://indicadoreseconomicos.bccr.fi .cr/indicadoreseconomicos/Cuadros/frmVerCatCuadro.aspx?idioma=1&Cod
Cuadro=%20349 . WT/TPR/S/392 • Costa Rica  
 
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  a licence from SUGESE in order to operate, and also need to be accredited by an insurance company 
or brokerage, as the case may be .129 Self-issue insurance operators nee d to be registered.  
Box 4.3 Self-issue insurance and conventional insurance  
Self-issue refers to low -cost insurance offering easy enrolment subject to conditions established in Article 24 of 
Law No.  8653 of 22 July 2008. For example, their terms and conditions must be worded clearly, precisely and 
simply and not require risk analysis prior to underwriting. Some examples of self -issue insurance include travel 
insurance or protection against credit card theft o r fraud.  
Differences between "conventional" and self -issue insurance policies  
Conventional insurance  Self-issue insurance  
Long and complex policy document . Simple policy document . 
Exceptions common . Few or no exceptions . 
Stricter underwriting requirements . More flexible underwriting requirements  
Premium payments are regular; bank transfers are 
used. Premium payments are based on income; other 
payment methods are used.  
The coverage period is usually 12 months . The coverage period can be less than 12 months.  
Medical examinations can be required to assess the risk 
of the prospective policy holder . Only statements of good health are required, to verify 
pre-existing conditions not as a health -screening 
measure.  
The amounts insured may be large or small . The amounts insured are small.  
Underwritten through agents and brokers . Simpler distribution channels are used for customer 
relations, including sales, premium collection and 
payment of losses. No advisory assistance  needed.  
The market has been familiarized with these insurance 
policies . The market has not been familiarized with these 
insurance policies . 
Source:  Information provided by the authorities and online information from SUGESE . Viewed at: 
http://www.sugese.fi.cr/preguntas_frecuentes/contrato_seguros.html . Online information from the 
Government of Costa Rica . Viewed at: http://gobierno.cr/tag/seguros -autoexpedibles . 
4.93.   Public and private insurance companies and private insurance intermediaries operate in the 
market . As of 2019 (January) the insurance market included the National Insurance Institute (INS), 
a State enterprise, and 12  private insurance companies ; there were nine foreign insurance 
subsidiaries and two foreign insurance branches in Costa  Rica; four insurance companies offered 
personal insurance ; three offered general insurance a nd six offered mixed insurance .130 The INS can 
by law offer reinsurance . Cross-border reinsurance is permitted.131 
4.94.   Insurance is compulsory in Costa  Rica for vehicles and occupational risks . All insurers can sell 
both compulsory and voluntary insurance . The mon opoly once held by INS for the sale of compulsory 
insurance was eliminated in 2012, but as of January  2019, INS was still the only provider of such 
insurance .132 INS was also still the leading provider of voluntary insurance, for which its market 
share in 20 18 was 62.5 %.133 
4.95.   The cost of premiums is not generally regulated or fixed, except for compulsory insurance 
premiums, which require approval by SUGESE . There are also limits on the premiums for compulsory 
automobile insurance, which may not exceed 6 % of the profit margin.134 
4.96.   Total insurance premiums in 2018 came to USD 1,277.2  million , equivalent  to 2.2% of GDP . 
Insurance density (premiums per capita) was roughly USD 250 (Table  4.17) . The level of premiums 
as a percentage of GDP remained at about 2 %. To promote access to the insurance market for the 
                                                
129 Articles 20 -21 and 24 of Law No. 8653 of 22 July 2008, SUGESE Agreement 01 -08 and online 
information . Viewed at: http://www.sugese.fi.cr/mercado_seguros . 
130 Online information viewed at: http://www.sugese.fi.cr/mercado_seguros/aseguradoras  
and SUGESE  statistics viewed at: http://www.sugese.fi.cr/estadisticas . 
131 Article 16 of Law No. 8653 of 22 July 2008.  
132 WTO document WT/TPR/S/286/Rev.1 of 27 November 2013 and SUGESE statistics. Viewed at: 
http://www.sugese.fi.cr/estadisticas . 
133 SUGESE statistics. Viewed at: http://www.sugese.fi.cr/estadisticas . 
134 Article 29 of Law No.  8653 of 22 July 2008, and Article 56 of Law No. 9078 of 4 October 2012.  WT/TPR/S/392 • Costa Rica  
 
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  population with less purchasing power, SUGESE is implementing the Inclusive Insurance Project, 
which promotes the purchase of self -issue insurance.  
Table 4.17 Insurance sector indicators, 2013 -18 
 2013  2014  2015  2016  2017  2018  
Total premiums (USD  million ) 1,046.4  1,167.4  1,060.4  1,193.3  1,322.9  1,277.2  
Compulsory insurance  320.6  364.6  258.2  276.2  330.8  316.0  
Voluntary insurance  725.8  802.9  802.1  917.1  992.2  961.2  
Personal insurance  238.1  289.0  270.9  342.8  375.2  394.7  
General insurance  487.7  513.9  531.2  574.3  617.0  566.5  
Premiums per capita (USD)  222.0  244.6  219.4  244.0  267.4  255.3  
Premiums/GDP (%)  2.1 2.3 1.9 2.1 2.3 2.2 
Source:  SUGESE statistics . Viewed at: http://www.sugese.fi.cr/estadisticas . 
4.4.2   Telecommunications  
4.97.   The provision of telecommunications services in Costa Rica is governed chiefly by the General 
Telecommunications Law of 20 08, which also regulates the competition regime in the sector 
(Table  4.18) . The Law was revised in 2018 to modify the obligations incumbent upon 
telecommunications service providers . Additionally, since 2013, the Public Services Regulatory 
Authority (ARESEP) has issued a number of resolutions regulating inter alia , shared use of 
infrastructure, the protection of users ' rights and the operation of the National Telecommunications 
Register .135 
Table 4.18 Legislation concerning telecommunications services  
Title Number and date  Most recent 
amendment  
General Telecommunications Law  Law No.  8642 of 4 June 2008 2018 
Regulations implementing the General 
Telecommunications Law  Executive Decree No.  34765 of 
22 September  2008 2017 
Law on the Public Services Regulatory Authority 
(ARESEP)  Law No.  7593 of 9  August  1996 2018 
Law on the Strengthening and Modernization of 
Public Entities  in the Telecommunications Sector  Law No.  8660 of 8  August  2008 2012 
Source:  WTO Secretariat.  
4.98.   Through the Department of Telecommunications, the Ministry of Science, Technology and 
Telecommunications (MICITT) formulates and evaluates telecommunications policy and sets it out 
in the National Telecommunications Plan . The Supervisory Authority for Telecommunications 
(SUTEL) is both the regulatory authority for the sector and the authority with responsibility for 
implementing competition p olicy in the sector .136 The State continues to have a significant presence 
in the telecommunications market through the Costa Rican Electricity Institute (ICE), a state -owned 
company providing public telecommunications services on the national market . It still holds a 
monopoly on traditional basic fixed -line telephony and is the largest operator.137 
4.99.   According to the National Telecommunications Development Plan 2015 -2021, 
telecommunications policy in Costa Rica aims to extend the use of information and communica tions 
technologies (ICTs), and access to them, in order to create an online government, promote digital 
inclusion and develop the digital economy .138 According to the Latin American Internet Association  
(ALAI), the sectors that could most benefit from digita lizing the Costa  Rican economy are 
manufacturing, tourism and professional services.139 
                                                
135 Information provided by the authorities and information available online. Viewed at:  
https://sutel.go.cr/normativas . 
136 Articles  52-58 of Law No.  8642 of 4  June 2008.  
137 The Heredia  Public Services Company (ESPH) also provides public telecommunications services.  
138 MICITT (2015), Plan Nacional de Telecomunicaciones 2015 -2021. Viewed at: 
https://w ww.micit.go.cr/images/Telecomunicaciones/pndt/PNDT -2015-2021.pdf . 
139 Latin American Internet Association  (2017), Economía digital y desarrollo productivo en 
Centroamérica: resultados y recomendaciones para Costa  Rica, Resumen Ejecutivo . Viewed at: WT/TPR/S/392 • Costa Rica  
 
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  4.100.   Since 2013, the use of ICTs and access to them has grown in Costa Rica, as shown by the 
annual indicators developed by the ITU140, the data compiled by SUTEL, and the Digit al Divide Index 
published by the MICITT .141 According to the ITU  however,  some barriers persist , including 
inadequate infrastructure .142 Additionally, a survey conducted by the University of Costa Rica (UCR) 
in 2014 reported that SMEs had problems using ICTs. However in another UCR survey in 2017, the 
118 micro, small, medium -sized and large enterprises consulted stated that the Internet was an 
important tool . All the companies had a  n Internet connection and the bulk of them (66.9 %) made 
purchases online , while 45.8 % made sales online and 50 % used the electronic public procurement 
system.143 
4.101.   Both foreign and Costa  Rican private investment in state -owned telecommunications 
businesses continues to be restricted . The share of private capital in the ICE group o f companies 
may not exceed 49 %. Where investment in Heredia Public Services Company (ESPH) is concerned, 
the restriction relates solely to foreign capital .144 In other cases, Costa Rica places no limits on 
investment by private entities . Foreigners must be r esident in Costa Rica in order to be able to 
operate on the market.  
4.102.   Private companies may supply any kind of telecommunications service with the exception of 
traditional basic fixed telephony services, which have been awarded to the ICE under a special 
legislative concession . An authorization is required in order to provide a service . The commercial use 
of frequencies on the radio spectrum is subject to a licensing requirement (Table  4.19).  
Table 4.19 Condition s governing the provision of public telecommunications services  
 Telecommunications services  Commercial use of radio 
frequencies  Traditional basic fixed 
telephony services  Other  
services  
Requirement  Special legislative 
concession  Authorization  Licence  
Method by which 
awarded  Direct award  Upon request by the service 
provider  Competitive bidding  
Responsible entity  Legislature  SUTEL  Executive/SUTELa 
Duration  Indefinite  10 years ; may be extended for 
5-year periods (maximum of 
3 extensions) up to a maximum 
period of 25 years  15 years ; may be extended to 
a maximum period of 25 years  
a SUTEL evaluates bids and makes a recommendation to the Executive concerning the award of the 
licence.  
Source:  General Telecommunications Law and information provided by the authorities.  
4.103.   State - and privately owned companies currently operate in the telecommunications sector . 
The state -owned company ICE continues to hold the monopoly on the provision of traditional basic 
fixed telephony and also has the greatest market share of mobile telephony services, although that 
share has shrunk owing to competition from private operators ( Chart 4.6). In addition to ICE, there 
are 13  providers on the fixed services market using Voice over Internet Protocol (VoIP) technology 
and 56  providers of Internet services . ICE and four other operators (Telefónica (Movistar), 
                                                
https://www.camtic.org/wp -content/uploads/2017/10/Economia -digital. -y-desarrollo -productivo -en-
Centroamerica -Resultados -y-recomendaciones -para-Costa -Rica-.pdf. 
140 The ITU calculates the ICT Development Index, which measures the level of infrastructure, 
accessibility, knowledge and quality of ICTs; in 2017, Costa Rica was ranked 60th of the 176  markets analysed.  
141 Information supplied by the authorities and information available online. Viewed at: 
https://www.micit.go.cr/imag es/imagenes_noticias/06 -28-2017_CP_049/Indice -de-Brecha -Digital -2016.pdf . 
142 ITU (2017), Measuring the Information Society Report 2017 . Available in English at: 
https://www.itu.int/en/ITU -D/Statistics/Documents/publications/misr2017/MISR2017_Volume1.pdf  and 
ITU (2016), "Executive Report", Measuring the Information Society Report 2015 . Available in English at: 
https://www.itu.int/dms_pub/itu -d/opb/ind/D -IND-ICTOI -2015-SUM-PDF-E.pdf. 
143 University of Costa Rica, PROSIC (2017), "Capítulo  5: Acceso y uso de las TIC en el sector 
productivo", Hacia la Sociedad de la Infor mación y el Conocimiento en Costa Rica: Informe 2017 . Viewed at: 
http://www.prosic.ucr.ac.cr/informe -2017-0. 
144 Article  15 of Law No.  7789 of 30  April 1998 and Article  5 of Law No.  8660 of 8  August  2008.  WT/TPR/S/392 • Costa Rica  
 
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  América  Móvil (Claro) and two  mobile virtual network operators (RACSA and Televisora de 
Costa  Rica145)) provide mobile telephony services in Costa Rica ( Chart 4.6). 
Chart 4.6 Participation in the mobile services market, 2013 -18 
(%) 
 
Source:  SUTEL (2018), Estadísticas del sector de Telecommunications, Costa  Rica 2017 . Viewed at: 
https://sutel.go.cr/sites/default/files/sutel_informe -esp_18_junio_ver_baja_0.pdf ; and information 
provided by the authorities.  
4.104.   Between  2013 and 2018 the use of traditional basic fixed telephony fell, whereas use of 
mobile telephony and, to a lesser extent, VoIP telephony, rose (Table  4.20) . According to the 
authorities, the rise in the use of mobile telephony is a result of a better rang e of services at more 
affordable prices .146 Consumption of mobile data also rose . Since 2017, operators have been 
required to provide a minimum browsing speed so that users can enjoy good quality access to the 
Internet at all times.147 
Table 4.20 Penetration of telecommunications services, 2013 -18 
(Subscriptions per 100  inhabitants)  
 2013  2014  2015  2016  2017  2018  
Traditional basic fixed telephony  20 18 17 16 15 15 
Mobile telephony  150 147 156 170 179 175 
VoIP telephony  7 9 11 14 17 15 
Landline Internet  10 11 12 13 15 16 
Mobile Internet  75 80 86 89 97 94 
Source:  SUTEL (2018), Estadísticas del sector de Telecommunications, Costa Rica 2017 . Viewed at: 
https://sutel.go.cr/sites/default/files/sutel_informe -esp_18_junio_ver_baja_0.pdf ; and information 
provided by the authorities.  
4.105.   In 2017, SUTEL launched an open tendering procedure for new radio frequency blocks in 
order to improve the provision of mobile services . ICE was not able to participate in the procedure 
because it already exceeded the requirement specifying the maximum number of frequency blocks 
that ten derers were allowed to hold . This SUTEL -imposed restriction was designed to prevent 
concentration of spectrum use, allow current operators to improve the service they provide and 
promote participation by other operators.148 
                                                
145 RACSA is a subsidiary of ICE; Televisora de Costa Rica is a private operator. Both operators use the 
ICE network to provide their services.  
146 Information provided by the authorities; and SUTEL (2018), Estadísticas del sector de 
Telecomunicaciones, Costa  Rica 2017 . Viewed at: https://sutel.go.cr/sites/default/files/sutel_informe -
esp_18_junio_ver_baja_0.pdf . 
147 Information available onl ine. Viewed at: http://sutel.go.cr/noticias/comunicados -de-prensa/sutel -
remite -sala-constitucional -velocidad -funcional -de-acces o. 
148 PROSIC (2017), "Evolución del sector telecomunicaciones en Costa Rica", Hacia la Sociedad de la 
Información y el Conocimiento 2017 . Viewed at: http://www.prosic.ucr.ac.cr/informe -2017-0; and i nformation 
available online. Viewed at: http://sutel.go.cr/noticias/comunicados -de-prensa/subasta -de-espectro -mejorara -
calida d-de-redes -moviles -en-el-pais, http://sutel.go.cr/noticias/comunicados -de-prensa/subasta -de-espectro -
61.4 61.957.653.3 51.8 53.018.5 16.318.8
19.7 21.3 19.518.1 20.4 22.325.7 26.3 26.92.0 1.4 1.3 1.3 0.6 0.6
0102030405060708090100
2013 2014 2015 2016 2017 2018 (T2)
ICE América Móvil Telefónica Operadores móviles virtualesWT/TPR/S/392 • Costa Rica  
 
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  4.106.   Between 2013 and 2018, SUTEL opene d 28 investigations into anticompetitive practices, and 
imposed a penalty on just one operator . In 2015 ICE was fined for engaging in relative monopolist 
practices in the mobile services market between 2011 and 2012 but the Administrative Court 
rescinded t he penalty in 2017 .149 During the period under review, 17  mergers were authorized 
(including three subject to operating conditions) and one was refused .150 SUTEL must consult the 
Commission for the Promotion of Competition (COPROCOM) when taking decisions on penalties and 
mergers.151COPROCOM 's opinion is not binding, but SUTEL must state the reasons for any decision 
that is not in accordance with COPROCOM 's views.152 
4.107.   During the period under review, SUTEL conducted a review of the relevant 
telecommunic ations markets and the competition conditions, leading to a determination that there 
was competition on all the relevant markets except for the retail fixed telephony market and three 
wholesale markets, namely service origination, service of termination on  individual fixed telephone 
networks, and service of termination on individual mobile networks (Table  4.21) . In the markets 
where competition was found to exist, the regulations on fees (fee caps) laid down by SUTEL were 
abolished and consequently fees are  currently set by operators . On the mobile services market, the 
obligations incumbent upon ICE were removed since it was no longer deemed to be a major 
operator.153 
Table 4.21 Competition in the relevant telecom munications markets, 2019  
Relevant markets according to 
SUTEL Resolution RCS 307 2009 of 
24 September 2009  New definition of relevant 
markets  Current situation (2019)  
Access to the public 
telecommunications network from a 
fixed location for residential customers  
Retail fixed telephony service  RCS 261 2016: not open to 
competition. The ICE is a 
major operator.  Services for voice communications 
originating at a fixed location to a 
national destination  
Switched access data transfer services 
(dial up)  
Access to the public 
telecommunications network from a 
mobile location  
Retail mobile 
telecommunications service  RCS 248 2017: open to 
competition.  Services for voice communications 
originating at a mobile location to a 
national destination  
Short messaging communications 
services  
Data transfer services via mobile 
networks  
Services for voice communications 
originating at a fixed location to an 
international destination  Retail international telephony 
service  RCS 262 2016: open to 
competition.  Services for voice communications 
originating at a mobile location to an 
international destination  
                                                
radioelectrico -2017, http://sutel.go.cr/noticias/comunicados -de-prensa/subasta -de-espectro -mejorara -calidad -
de-redes -moviles -en-el-pais-0 and http://sutel.go.cr/noticias/comunicados -de-prensa/sutel -anuncia -reglas -de-
proxima -licitacion -de-espectro . 
149 SUTEL Resolution RCS -088-2015 of 22  May 2015. Viewed at: 
https://sutel.go.cr/sites/default/files/rcs -088-2015.pdf . Information available online. Viewed at: 
https://Sutel.go.cr/noticias/comunicados -de-prensa/Sutel -aplica -sancion -por-practicas -monopolisticas -
anticompetitivas ; and El Mundo , 13 November  2017. Viewed at: https://www.elmundo.cr/tribunal -anula -
multa -sutel-ice-usar-haber -usado -pruebas -dadas -movistar . 
150 Information provided by the authorities.  
151 During the period under review, SUTEL issued guid elines on analysis of anticompetitive practices and 
mergers. Information supplied by the authorities and information available online. Viewed at: 
https://sutel.go.cr/guias -competencia . 
152 Articles 52 -58 of Law No.  8642 of 4  June 2008, and WTO document WT/TPR/M/286/Add.1 of 
9 December  2013.  
153 SUTEL press release of 22  September  2017. Viewed at: https://sutel.go.cr/noticias/comunicados -de-
prensa/sutel -declara -en-competencia -mercado -movil . For further information on the obligations incumbent 
upon the dominant operator, see SUTEL Resolution RCS -307-2009 of 24  September  2009.  WT/TPR/S/392 • Costa Rica  
 
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  Relevant markets according to 
SUTEL Resolution RCS 307 2009 of 
24 September 2009  New definition of relevant 
markets  Current situation (2019)  
Switched access data transfer services 
(ISDN)  Retail residential Internet access 
from a fixed location  RCS 258 2016: open to 
competition.  Always on data transfer services 
(dedicated)  
National and international roaming 
services  Retail international roaming 
service  RCS-259-2016: open to 
competition.  
Wholesale service for access and 
origination on a mobile network  RCS-040-2018: open to 
competition.  
Point-to-point, point -to-multipoint, and 
other communications services  Retail business connectivity 
service  RCS-266-2018: open to 
competition.  Virtual Private Network (VPN) services  
Unbundling of access elements to the 
public telecommunications network  Wholesale loop unbundling 
service  RCS-191-2017: open to 
competition.  
Access and interconnection services 
(origination of communications)  Wholesale origination service  RCS 260 2016: not open to 
competition; ICE is not a 
major operator . 
Wholesale service for access and 
origination on a mobile network  RCS-040-2018: open to 
competition.   
Access and interconnection services 
(termination of communications)  Wholesale termination service on 
individual fixed networks  RCS 263 2016: not open to 
competition; ICE is a major 
operator . 
Wholesale termination service on 
individual mobile networks  RCS 264 2016: not open to 
competition; ICE, América 
Móvil and Telefónica are 
major operators . 
Access and interconnection services 
(communications traffic)  Wholesale telecommunications 
traffic services  RCS-266-2016: open to 
competition.   
Access and interconnection services for 
converged or packet switched networks  Wholesale service for access and 
carrier capacity internationally  RCS-297-2018: open to 
competition.  
Wholesale service for dedicated 
lines RCS-339-2018: open to 
competition.  
Source:  Information provided by the authorities.  
4.108.   The National Telecommunications Fund (FONATEL) finances and implements the access and 
universal service programmes . Among other sources, the Fund is financed via a parafiscal 
contribution amounting to 1.5 % of operators ' income .154 Currently (2019) there are four 
programmes financed by FONATEL aiming to r educe the digital divide : the Connected Communities 
Programme, the Connected Homes Programme, the Connected Public Centres Programme, and the 
Connected Public Spaces Programme .155 Launched in 2016, the only programme that provides direct 
support to low -incom e households is the Connected Homes Programme . This programme subsidizes 
the purchase of a portable computer and the cost of accessing fixed Internet services . The amount 
of the subsidy varies depending on users ' incomes, and can amount to 40 %, 60% or 80 % of the 
monthly cost .156 In 2018, the subsidy amounted to CRC  17,894  million, and benefited 
95,917  homes.157 
4.109.   Telecommunications service users pay a contribution equivalent to 1 % of the sum invoiced 
to them, which is used to finance the Costa Rican Red Cross158; a further contribution of 0.75 % is 
used to finance the emergency service.159 
                                                
154 The Telecommunications Law states that the rate should be between 1.5 % and 3 % of gross income. 
(Articles  38-39 of Law No.  8642 of 4  June 2008, and information available online. Viewed at: 
https://Sutel.go.cr/pagina/contribucion -parafiscal ). 
155 Information available online. Viewed at: https://sutel.go.cr . 
156 Connected Homes Programme. Viewed at: https://sutel.go.cr/pagina/programa -2-hogares -
conectados -0. 
157 Information provided by the authorities.  
158 Law No.  8690 of 19  November  2008.  
159 Law No.  7566 of 18  December  1995.  WT/TPR/S/392 • Costa Rica  
 
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  4.4.3   Transport  
4.4.3.1   Overview  
4.110.   The transport network in Costa Rica comprises 44,207  km of roads (of which 18 % are 
national highways and the remainder cantonal highways) ; 24 public airports/aerod romes, including 
four international airports ; and eight international ports .160 The rail network is being upgraded for 
use as a means of interurban transport . Although the road network is extensive, its condition is 
suboptimal owing to lack of investment161: only 27 % of roads are paved, the remainder are gravel 
or dirt roads .162 The bulk of Costa Rica 's export products are carried by sea ( Chart 4.7). Although 
the volume of goo ds exported by air is low, their value is high . This is the result of the development 
of non -traditional exports such as medical devices and electronic components for microprocessors, 
which are high -value items . Juan Santamaría international airport in Val le Central is home to 
Costa  Rica's sole air cargo terminal .163 Trade within Central America is conducted chiefly over land, 
although the transport costs can be high because of the condition of the roads, which makes them 
unsuitable for overnight travel ; travel time owing to congestion in and around urban areas ; and 
waiting time at borders.164 
Chart 4.7 Type of transport used for exports, 2018  
 
 
Source:  PROCOMER statistics . Viewed at: http://sistemas.procomer.go.cr/estadisticas/inicio.aspx . 
4.111.   The Ministry of Public Works and Transport (MOPT) is responsible for the transport sector . 
The transport policy developed and del ivered by the MOPT is set out in the National Transport Plan 
of Costa Rica 2011 -2035.165 The Plan states that the Costa Rican transport system has deteriorated 
owing to lack of investment .166 That analysis is supported by the National Development Plan (PND) 
2015-2018, which states that the absence of a strategy to develop the sector and budget cuts are 
the major reasons for the deteriorating quality of the transport infrastructure .167 Moreover, the 
Bicentenary National Development and Public Investment Plan (PNDI PB) 2019 -2022 states that 
investment in the sector fell from 1.5 % to 0.95 % of GDP between 2008 and 2017 . The State of the 
Nation Programme (PEN) notes that as a result of the lack of investment in the road network the 
roads are in poor condition, causing p roblems for traffic (congestion), making it difficult to access 
production areas, increasing travel time, and resulting in higher costs .168 Delays in executing 
                                                
160 Article  4 of Executive Decree No.  28869 – MOPT of 14  July 2000.  
161 Information provided by the authorities.  
162 Bicentenary National Development and Public Investment Plan 2019 -2022 and PEN (2018), Informe 
Estado de la Nación 2018 . Viewed at: https://www.estadonacion.or.cr/2018/assets/en2018.pdf . 
163 DGAC (2017), Resumen Estadístico . Viewed at: http://www.dgac.go.cr/wp -
content/uploads/2018/04/ESTAD --STICAS -2017-5-4-18.pdf . 
164 World Bank. Logistics and Transport: A Long Road to Travel in Central America. Av ailable in English 
at: https://www.worldbank.org/en/news/feature/2013/02/07/logistica -transporte -en-centroamerica . 
165 Executive Decree No.  37738 of 29  May 2013.  
166 MOPT (2011), "Volumen 1: Memoria", Plan Nacional de Transportes de Costa Rica 2011 -2035. 
Viewed at: https://www.mopt.go.cr/wps/ wcm/connect/a86ca326 -d0c2-403f-9166-
259c356f4783/Memoria.pdf?MOD=AJPERES . 
167 Chapter 5.12 of the PND. Viewed at: http://www.mideplan.go.cr/instrumentos/pnd . 
168 (PEN) (2018), Informe Estado de la Naci ón 2018 . Viewed at: 
https://www.estadonacion.or.cr/2018/assets/en2018.pdf ; and Academia de Centroamérica (2017), La 
Sea 
51.5%
A ir
27.4%O ther
2.3% 
Total: USD 11,683,172Volume
Total: 8,994,960 tonnesLand
18.8%Value
Sea 
81.1%O ther
0.9% 
Land  
17.4%A ir
0.6% WT/TPR/S/392 • Costa Rica  
 
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  construction projects have also been remarked upon . For example, in 2014 a proposal was submitted 
to widen the road between San José and the country 's second largest port (Caldera), but as of 
March  2019 the proposal was still awaiting approval.169 
4.112.   Like the PND IPB 2019-2022, the National Transport Plan of Costa Rica underscores the need 
to improve the competitiveness of the various transport types in order to foster economic growth 
and high -quality employment, and to that end proposes structural reforms, infrastructure 
improvements and expansion, and the promotion of intermodal transport and logistics.170 
4.113.   Turning to external trade, the National Transport Plan of Costa Rica 2011 -2035 notes the 
importance of expediting cargo movements by establishing logistics hubs and introducing 
(straightforward, low -cost) systems for the clearance, release and inspection of goods . It is 
anticipated that these trade facilitation systems will be implemented and rolled out at the country 's 
major ports in particular .171 The PN DIP 2019-2022 stresses that it is necessary to cut the costs of 
external trade in order to be able to co mpete with other ports in the region . To that end the Port 
Single Window (VUP) and the Port Community System platform have been introduced to facilitate 
certain procedures involved in port operations (Box  4.4). 
Box 4.4 Platforms to facilitate procedures involved in port operations  
The VUP can be used to : request a stopover, port services and waste removal ; give notification of 
dangerous goods ; make health declarations ; and conduct other procedu res. 
The Port Community System platform facilitates logistics procedures such as cargo bookings, transport 
orders and other trade procedures not subject to public controls.  
Source : PowerPoint presentation . Viewed at: 
https://www.oas.org/cip/english/docs/Cartagena%202013/INTER -AMERICAN%20PORT%20FORUM/
12.pdf . 
4.114.   In Costa Rica, concession -holding private entities can operate and manage public highways, 
the rail network, ports and airports .172 The National Concessions Council (CNC), which is attached 
to the MOPT, is the body that evaluates projects, conducts the competitive tendering process and 
makes a recommendation to the Executive concerning the award of a  contract .173 The CNC has seven 
members and is chaired by the Minister for Public Works and Transport.174 
4.4.3.2   Air transport and airports  
4.4.3.2.1   Air transport  
4.115.   The provision of air services is governed chiefly by the General Law on Civil Aviation and 
various regulations (T able 4.22), the Convention on International Civil Aviation (or  Chicago 
Convention) and various Agreements/Memoranda on air services (Table  A4.1) . In 2013, new 
Regulations on the Granting of Operating Certificates were promulgated, replacing the regulations  
that had been in force since 1973 . The Costa Rican Aviation Regulations (RAC) regulate the 
functioning and safety of air operations ; 20 new RACs have been issued since 2013.175 
                                                
infraestructura vial en Costa  Rica: desafíos y oportunidades para las asociaciones público -privadas . Viewed at: 
https://www.academiaca.or.cr/wp -content/uploads/2017/12/PV -04-17.pdf . 
169 Academia de Centroamérica (2017), La infraestructura vial  en Costa  Rica: desafíos y oportunidades 
para las asociaciones público -privadas . 
170 MOPT (2011), "Volumen 1: Memoria", Plan Nacional de Transportes de Costa Rica 2011 -2035. 
Viewed at: https://www.mopt.go.cr/wps/wcm/connect/a86ca326 -d0c2-403f-9166-
259c356f4783/Memoria.pdf?MOD=AJPERES . 
171 MOPT (2011), "Volumen 1: Memoria", Plan Nacional de Transportes de Costa Rica 2011-2035. 
172 Article  121 of the Constitution.  
173 Information available online. Viewed at: http://www.cnc.go.cr . 
174 Law No.  7762 of 14  April 1998.  
175 Information available online.  Viewed at: http://www.dgac.go.cr/biblioteca -tecnica/reglamentos -
aeronauticos -costarricenses -racs. WT/TPR/S/392 • Costa Rica  
 
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  Table 4.22 Main legislation on air transport  
Title Number and date  Most recent 
amendment  
General Law on Civil Aviation  Law No.  5150 of 14  May 1973 2009 
Airport Services Regulations  Executive Decree No.  27380 of 
20 November  1998 2011 
Regulations governing Code -Share 
Arrangements  Executive Decree No.  35357 of 28  May 2009 2009 
Regulations on the Granting of Operating 
Certificates  Executive Decree No.  37972 of 24  October  2013a 2018 
Regulations governing Specialist Aerodrome 
Services, Costa  Rican Aviation Regulations  Executive Decree No.  38113 of 4  December  2013 n.a. 
a Repeals Executive Decree No.  3326 of 2 5 October  1973. 
n.a. Not applicable.  
Source:  WTO Secretariat.  
4.116.   Costa Rica is a member of the International Civil Aviation Organization (ICAO), the 
Latin American Civil Aviation Commission (CLAC), and the Central American Air Navigation Services 
Corporation (COCESNA) . COCESNA provides air traffic control, aeronautical telecommunications and 
radio-aid for the airspace of Belize, Costa  Rica, El  Salvador, Guat emala, Honduras, and Nicaragua.176 
4.117.   The Civil Aviation Technical Council (CETAC) and its executive body the Directorate -General 
of Civil Aviation (DGAC) regulate and oversee commercial air transport activities in Costa  Rica ( Chart 
4.8). CETAC and the DGAC are bodies attached to the MOPT .177 Following the recommendations of 
the National Transport Plan of Costa Rica 2011 -2035178, in 2018 CETAC an d the DGAC were 
restructured specifically to separate the regulatory and service provider functions of the DGAC .179 
Although the DGAC continues to be the airport operator, the service provider and regulator, other 
independent regulatory bodies were created w ithin the DGAC.  
Chart 4.8 Institutions operating in the aviation sector  
 
Source:  National Transport Plan of Costa Rica 2011 -2035 and Executive Decree No.  41,417 of 
11 October  2018.  
                                                
176 Information available online from COCESNA. Viewed at : http://cocesna.org . 
177 Article  4 of Law  No. 5150 of 14  May 1973.  
178 MOPT (2011), "Volumen  2: Aeropuertos y Navegación Aérea, Diagnóstico General", Plan Nacional de 
Transportes de Costa Rica 2011 -2035. Viewed at: 
http://repositorio.mopt.go.cr:8080/xmlui/bitstream/handle/123456789/239/380 -
1v2e.pdf?sequence=1&isAllowed=y . 
179 Executive Decree No.  41417 of 11  October  2018.  
Governing entity Ministry of Public Works and Transport ( MOPT )
Regulation and 
inspection of 
commercial air 
transport 
activitiesCivil Aviation Technical 
Council ( CETAC )
Directorate -
General
of
Civil 
Aviaation
(DGAC ) 
Air navigation 
services2 airports under concession
Other airportsBodies attached to the Ministry
Oversees
Juan Santamaría international 
airport
Liberia (Daniel Oduber Quirós ) 
international airportPublic Services Regulatory 
Authority ( ARESEP ) Economic regulation
operates and managesProvidesCOCESNA
ProvidesInspectorate for Public 
Private Management 
ArrangementsAdvises
Oversees concession 
contractsWT/TPR/S/392 • Costa Rica  
 
- 129 - 
 
  4.118.   International air services are governed by the agreements/memoranda on air services 
signed by Costa Rica . In the absence of any such arrangements, they are governed by the principle 
of reciprocity .180 Cabotage services may be provided only by Costa  Rican airlines or foreign -owned 
airlines established in Costa Rica . There is no restriction on the share of private (Costa Rican) capital 
in airlines providing cabotage services.  
4.119.   In order to operate international scheduled flights, all airlines must obtain : (1) an operating 
certific ate awarded by CETAC and approved by the executive ; and (2) the operational certificate (or 
air operator certificate) awarded by the DGAC demonstrating that the airline has the capacity to 
provide the service . Both certificates are awarded for a maximum pe riod of 15  years (renewable) .181 
The provision of international charter services requires authorization from the DGAC .182 Foreign 
airlines are not required to be certified in Costa Rica in order to be able to provide international 
transport services : Costa Ric a recognizes the certificate issued by the country of origin.  
4.120.   International air fees must be authorized by CETAC ; once CETAC has approved the fees it 
registers them .183 In some cases, pursuant to air services agreements/memoranda, there is no 
requirement to approve the fees ; they must merely be notified to CETAC (Table  A4.1) . The fees for 
air travel to and from Costa Rica include a number of taxes that vary depending on the direction of 
travel . Tickets for travel to Costa  Rica include a tax of USD  15184, wherea s outbound international 
flights purchased in Costa Rica include a 5 % tax on the ticket value .185 The taxes are used to finance 
campaigns to boost tourism run by the Costa Rican Tourism Institute (ICT) .186 Additionally, a tax of 
USD 27 is levied for leaving th e national territory .187 Costa Rica does not charge a fee for overflying 
its territory ; however COCESNA charges a fee for entering the airspace under its control.188 
4.121.   Regulations govern the fees for services related to fuel -handling and ground -handling for 
passengers .189 The state -owned business Self -Managed Aero -Industrial Services Cooperative 
(COOPESA) and a private Costa  Rican business provide aircraft maintenance services .190 However, 
during a stopover airlines may provide maintenance services only to their own aircraft .191 The 
state-owned company Costa Rican Petroleum Refinery (RECOPE) has a monopoly on refuelling.192 
4.122.   Costa Rican and foreign airlines that have signed a tourism contract with the ICT benefit 
from a number of incentives.  
4.123.   Only Costa Rican nationals and businesses may register an aircraft for commercial use in 
the National Aircraft Register .193 The DGAC is responsible for approving leases for aircraft registered 
abroad for commercial use in Costa Rica . If the lease is signed for more than one year the a irline 
must pay the DGAC a charge which, like the other taxes, is used to finance tourism -related 
projects.194 
                                                
180 Article  149 of Law No.  5150 of 14  May 1973.  
181 Articles  143-144 of Law No.  5150 of 14  May 1973, and Executive Decree No.  37972 of 
24 October  2013.  
182 Articles  32 and 181 of Law No.  5150 of 14  May 1973, and Circular DGAC -DG-CIR-033-2017 of 
8 December  2017.  
183 Article  10 of Law No.  5150 of 14  May 1973.  
184 Law No.  8694 of 11  December  2008.  
185 Executive Decree No.  37979 of 22  April 2013, and Executive Decree No.  35640 of 20  October  2009.  
186 Law No.  1917 of 30  July 1955.  
187 Law No.  8316 of 26  September  2002 and information available online. Viewed at: 
http://www.hacienda.go.cr/contenido/13053 -impuesto -derecho -de-salida -del-territorio -nacional . 
188 Information available online. Viewed at: https://www.aopa.org/travel/international -travel/central -
america . 
189 Information provided by the authorities.  
190 MOPT (2011), "Volumen 2: Aeropuertos y Navegación Aérea, Estrategias y Directrices", Plan Nacional 
de Transportes de Costa Rica 2011 -2035. Viewed at: https://www.mopt.go.cr/wps/wcm/connect/7d3bb15f -
167f-4c4f-852e-806f53730eb4/Aeropuertos -Estrategias -directrices.pdf?MOD=AJPERES . 
191 Section 43.3 of RAC  43. Viewed at: http://www.dgac.go.cr/biblioteca -tecnica/reglamentos -
aeronauticos -costarricenses -racs. 
192 Information available online. Viewed at: https://latinlawyer.com/jurisdiction/1004850/costa -rica. 
193 Article  42 of Law No.  5150 of 14  May 1973.  
194 The charge is equivalent to 4.5 % of the value of the lease; the annual payment may not exceed 
USD 6,000. Article  222 of Law No.  5150 of 14  May 1973.  WT/TPR/S/392 • Costa Rica  
 
- 130 - 
 
  4.124.   Costa Rica has 27  bilateral agreements/memoranda on air services (Table  A4.1) . Since 
2013, new agreements have been signed with China, France, Pana ma, Singapore, Switzerland, and 
Turkey . Generally Costa Rica grants fifth freedom traffic rights for passenger and cargo traffic 
(Table  A4.1) . Costa Rica has open skies agreements with Belgium, Brazil, Canada, Chile, Colombia 
and the United  States .195 Throug h the Airline Enticement Campaign strategy, the Costa Rican 
Tourism Institute (ICT) has supported delivery of commercial air transport policy . The strategy was 
rolled out in 2013 with a view to increasing service frequency and capacity, and attracting new 
airlines.196 
4.125.   Since 2013, 74  new routes have operated to/from Costa Rica . Currently (2019), 35  airlines 
operate scheduled international (passenger and/or cargo) flights (to Costa Rica) . The number of 
international passengers rose by 38 % between 2013 and 2018,  from 4.4  million to 6.1  million, of 
whom 99 % travelled on scheduled flights in 2018.197 
4.4.3.2.2   Airports  
4.126.   Costa Rica has four international airports .198 The State owns all the public airports, but their 
construction, operation and management may be put out to concessi on.199 The airport 
concession -holders may be private Costa Rican or foreign companies ; foreign companies must be 
established in Costa Rica.  
4.127.   Currently the two main international airports (Juan  Santamaría in San José and 
Daniel  Oduber Quirós in Liberia) are th e subject of concessions held by foreign private companies .200 
At Juan Santamaría airport, the terminals and runways are operated under concession by a single 
company, whereas at Liberia international airport only the passenger terminal was put out to 
conces sion. The DGAC continues to be responsible for the runways .201 The other public airports, 
including the other two international airports (in Limón and Pavas), are managed and operated by 
the DGAC .202 The Inspectorate for Public -Private Management Arrangements  (Gestion interesada ) is 
responsible for inspecting the airport concessions for Juan Santamaría and Liberia airports.  
4.128.   Consideration is currently being given to the possibility of constructing a new international 
airport to absorb a share of the  traffic handled by Juan Santamaría international airport which, for 
geographical reasons, cannot expand .203 Juan Santamaría airport handles approximately 80 % of 
international passenger traffic, followed by Liberia international airport, which almost exclusi vely 
services the US market .204 The other two international airports (Limón and Pavas) have almost no 
international traffic.205 
4.129.   Fees for aviation services under concession are regulated by ARESEP in accordance with the 
provisions of the Airport Services Regula tions. The aspects taken into account when setting fee caps 
include the investments made by the concession -holder, the calibre of the services provided, and 
                                                
195 MOPT (2011), "Volumen 2: Aeropuertos y Navegación Aérea, Diagnóstico General", Plan Nacional de 
Transportes de Costa Rica 2011 -2035. Viewed at: 
http://repositorio.mopt.go.cr:8080/xmlui/bitstream/handle/123456789/239/380 -
1v2e.pdf?sequence=1&isAllowed=y . 
196 Inform ation available online. Viewed at: http://logros.presidencia.go.cr/ict . 
197 DGAC statistics. Viewed at: http:// www.dgac.go.cr/transparencia/resumenes -estadisticos -y-
anuarios/#4 ; and data provided by the authorities.  
198 Information available online. Viewed at: 
http://mopt.opendata.junar.com/ dashboards/19902/aeropuertos . 
199 Article  121 of the Constitution.  
200 DGAC (2017), Resumen Estadístico . Viewed at: http://www.dgac.go.cr/wp -
content/uploads/2018/04/ ESTAD --STICAS -2017-5-4-18.pdf . 
201 MOPT (2011), "Volumen 2: Aeropuertos y Navegación Aérea, Diagnóstico General", Plan Nacional de 
Transportes de Costa Rica 2011 -2035. 
202 WTO document WT/TPR/S/286/Rev.1 of 27  November  2013 and DGAC (2017), Resumen Estadístico . 
Viewed at: http://www.dgac.go.cr/wp -content/uploads/2018/04/ESTAD --STICAS -2017-5-4-18.pdf . 
203 Information available online. Viewed at: http://gobierno.cr/tag/aeropuerto -internacional -orotina . 
204 MOPT (2011), "Volumen 1: Memoria", Plan Nacional de Transportes de Costa Rica  2011-2035. 
Viewed at: https://www.mopt.go.cr/wps/wcm/connect/a8 6ca326 -d0c2-403f-9166-
259c356f4783/Memoria.pdf?MOD=AJPERES . 
205 DGAC (2018), Resumen de Estadísticas de Transporte Aéreo, Primer Semestre 2018 . Viewed at: 
https:// www.dgac.go.cr/transparencia/resumenes -estadisticos -y-anuarios/#4 . WT/TPR/S/392 • Costa Rica  
 
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  operating data .206 ARESEP publishes the fee caps for each service .207 For Juan Santamaría 
international  airport, the concession -holder sets the fees for non -airport services, which must be 
approved by CETAC .208 The non -aviation -related fees at Liberia international airport were set in the 
concession contract.  
4.4.3.3   Maritime transport and ports  
4.4.3.3.1   Maritime transport  
4.130.   The provision of maritime transport services is governed by long -standing laws that were 
not amended during the period under review (Table  4.23) . The National Transport Plan of Costa Rica 
2011-2035 notes the need to conduct a thorough overhaul of the legisla tion in this area and to 
update it in order to provide operators in the sector with greater predictability .209 In 2018 the 
Draft Law on Waterborne Navigation (Draft Law No.  21,095)210 was tabled, which includes some 
provisions on the carriage of goods such as maritime safety and the prevention of pollution . 
Additionally it has been noted that in order to improve the regulation of the carriage of goods by 
sea, Costa Rica could ratify a number of international agreements such as the Hague -Visby Rules 
and the Hamb urg Rules.211 
Table 4.23 Main legislation governing maritime transport  
Title Number and date  Most recent 
amendment  
Book III of the Commercial Code 1853a Law No.  104 of 1 6 May 1853 n.a. 
National Flag Vessel Registration Law  Law No.  12 of 
22 November  1941 1958 
Regulations implementing the National Flag Vessel 
Registration Law  Executive Decree No.  1958 of 
10 September  1971 1988 
Law on Coastal Shipping Services of the Republic.  Law No.  2220 of 2 0 June 1958 2009 
Regulations implementing the Law on Coastal 
Shipping Services of the Republic  Decree No.  66 of 
4 November  1960 2009 
a Law No.  3284 of 30  April 1964 repealed Law No.  104 of 1 6 May 1853 with the exception of Book  III 
on maritime trade.  
n.a. Not applicable.  
Source:  WTO Secretariat.  
4.131.   The Shipping and Safety Directorate at the Ministry of Public Works and Transport (MOPT) 
is responsible for maritime safety .212 Two other regional port authorities operate and manage ports 
not put out to c oncession : the Costa Rican Pacific Ports Institute (INCOP), and the Atlantic Coast 
Port Administration and Economic Development Board (JAPDEVA) . The MOPT audits the concessions 
awarded to operate the ports used for coastal shipping . Fisheries ports are man aged by the 
Costa  Rican Fisheries and Aquaculture Institute (INCOPESCA), while the Interinstitutional 
Commission on Marinas and Tourist Docks (CIMAT) is responsible for marinas and tourist docks.  
4.132.   Costa Rica is a member of the regional -policy -making Central American Commission on 
Maritime Transport (COCATRAM) . In 2012, COCATRAM adopted the Central American Regional 
Strategy for Maritime Ports, Analytical Study and Action Plan, which aims to convert the region into 
a logistics platform in order to inte grate it into international trade.  
                                                
206 Executive Decree No.  27380 of 20  October  2008.  
207 Information available online. Viewed at: https://aresep.go.cr/otros/aeropue rtos/tarifas . 
208 Information provided by the authorities.  
209 MOPT (2011), "Volumen 2: Puertos y Navegación Marítima, Diagnóstico General", Plan Nacional de 
Transportes de Costa Rica  2011-2035. Viewed at: http://www.mopt.go.cr/wps/wcm/connect/3d701f37 -d9a4-
423c-b438-5d11eca29c70/Puertos -Navegacion -Maritima.pdf?MOD=AJPERES . 
210 Information available online. Viewed at: 
http://www.asamblea.go.cr/Centro_de_informacion/Consultas_SIL/Pginas/Proyectos%20de%20ley.aspx . 
211 Arce M orales G.A. and Redondo Rojas M.F. (2016), "La responsabilidad civil del cargador en 
transporte marítimo de mercancías en contenedores", Revista Judicial Costa Rica , No. 118, January. Viewed at: 
https://www.poder -
judicial.go.cr/escuelajudicial/archivos/documentos/revs_juds/Revista_118/PDFs/10_archivo.pdf . 
212 Executive Decree No.  40803 of 12  December  2017.  WT/TPR/S/392 • Costa Rica  
 
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  4.133.   The provision of international maritime transport services is governed by the principle of 
reciprocity . The fees charged by shipping companies (whether Costa Rican or foreign) operating 
international routes are not subjec t to controls .213 10% of the crew of a Costa Rican -registered vessel 
must be Costa Rican ; however in the absence of trained staff in Costa Rica this restriction is not 
applied .214 Captains may be foreign nationals but, unlike Costa Rican nationals, they are re quired to 
lodge a guarantee .215 Foreigners must have a legal representative in Costa Rica in order to register 
a vessel or in order to anchor in a Costa Rican port.216 
4.134.   Costa Rica does not participate in cargo reservation arrangements.217 
4.135.   Coastal shipping service s may only be provided by Costa Rican nationals or commercial 
corporations legally established in Costa Rica in which Costa Ricans hold at least 60 % of the 
capital .218 Additionally, these services may only be provided in Costa -Rican -registered vessels . 
However, in the absence of Costa Rican vessels, foreign vessels registered in Costa Rica may be 
employed . In order to operate a coastal shipping service on a regular and permanent basis, it is 
necessary to obtain a route licence, which is valid for ten years . In an emergency an "emergency 
permit " is required ; it is valid for one year (renewable) .219 Coastal shipping fees are regulated by 
the MOPT in respect of goods and vehicles, and by ARESEP in respect of passengers.220 
4.4.3.3.2   Ports  
4.136.   The State owns the public ports, but t heir construction, operation and management may be 
put out to concession .221 INCOP and JAPDEVA provide port services, which may also be put out to 
concession .222 Currently ( May 2019) there are ten concession contracts in force including contracts 
concerning po rt management, the provision of services, construction, and operation.  
4.137.   Fees for these services are regulated by ARESEP, which publishes fee caps for each service 
every year.223 
4.138.   Costa Rica has eight international ports . The chief ports used for goods are the Limón -Moín 
port complex (Caribbean coast) and Puerto  Caldera (Pacific coast), which handled 97.4 % of goods 
traffic in 2018 ; 67.1% of that traffic was through the Limón -Moín port complex .224 The National 
Transport Plan of Costa Rica 2011 -2035 lists a number o f the ports ' limitations . For example, it 
states that the port infrastructure is unable to cope with the existing traffic, resulting in some 
facilities being under -used and the saturation of others . Additionally, the Plan states that the highly 
specialist nature of the Limón -Moín port complex and Puerto Caldera increases the ports ' inefficiency . 
For example the country 's only oil terminal is in Limón -Moín whereas grain is handled only in 
Puerto  Caldera . As a result grain from the east coast of th e US must be unloaded at Puerto Caldera 
(Pacific coast), increasing costs because it must transit the Panama Canal.225 
4.139.   Between 2013 and 2018, the carriage of goods by sea rose from 14.9 to 17.5  million  tonnes . 
In 2018, container traffic at the Limón -Moín por t complex was 620,232  units (1,187,760  TEU).226 It 
                                                
213 WTO document WT/TPR/S/286/ Rev.1 of 27  November  2013.  
214 Article 41 of Law No.  12 of 22  October  1941.  
215 Article  580 of Book  III (Maritime Code) of the Commercial Code of 1853.  
216 Foreigners who register vessels of less than 50  tonnes for private use are not required to appoint a 
legal representative. (Article  12 of Executive Decree No.  12568 of 30  April 1981 and Article  43 of Law No.  12 
of 22 October  1941). 
217 WTO document WT/TPR/S/286/Rev.1 of 27  November  2013.  
218 Decree No. 66 of 4 November 1960.  
219 Information available online. Viewed at: https://www.mopt.go.cr . 
220 Resolution No.  001 of the MOPT of 8  November  2010.  
221 Article  121 of the Constitution.  
222 Law No.  8461 of 20  October  2005 and Law No.  5337 of 27  August  1973.  
223 Information available online. Viewed at: https://aresep.go.cr/puertos/tarifas . 
224 COCATRAM statistics. Viewed at: http://www.cocatram.org.ni/estadisticas . 
225 MOPT (2011), "Volumen 2: Puertos y Navegación Marítima, Diagnóstico General", Plan Nacional de 
Transportes de Costa Rica  2011-2035. Viewed at: http://www.mopt.go.cr/wps/wcm/connect/3d701f37 -d9a4-
423c-b438-5d11eca29c70/Puertos -Navegacion -Maritima.pdf?MOD=AJPERES ; and information available online. 
Viewed at: https://www.recope.go.cr/quienes -somos/sistema_nacional_combustibles/terminales -petroleras . 
226 COCATRAM statistics. View ed at: http://www.cocatram.org.ni/estadisticas . WT/TPR/S/392 • Costa Rica  
 
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  is anticipated that the entry into operation of the Moín container terminal (TCM) will reinvigorate the 
companies established in the Limón free zone, and Costa Rican commerce more widely.227 
4.4.4   Tourism  
4.140.   Tourism is  one of the most buoyant sectors of the Costa Rican economy and has become 
one of the leading generators of foreign currency . According to the latest Tourism Satellite Account 
(2016), the sector accounted for 6.3 % of GDP and 13.2 % of employment . In the sam e year, tourism 
generated revenue of CRC  1,978.2  billion, equivalent to 42.5 % of exports of services and 19.5 % of 
exports of goods and services . Between 2013 and 2017, the number of tourists rose from 2.4 to 
3 million (Table  4.24) . That increase can be exp lained by diversification in tourism -related products, 
especially as a result of the development in Costa Rica of conference and wellness tourism .228 
Additionally, commercial air transport policy and the Airline Enticement Campaign implemented by 
the ICT hav e led to a rise in the frequency, routes and capacity of air services and made it possible 
to welcome tourists from new markets (Section 4.4.3.2.1) . Nevertheless, in 2018, holidays 
continued to be the main reason for visits to Costa Rica and the United Sta tes was the leading 
inbound tourist market . According to the latest Tourism Satellite Account (2016), hotels were the 
top contributor to income in the sector (20.9), followed by catering services (20.5 %), other 
industries (16.6 %), road transport services ( 12%), and medical services (10.4 %).229 
4.141.   The tourism industry is regarded as an industry affected with a public purpose.230 
Table 4.24 Selected tourism sector indicators, 2013 -18 
 2013  2014  2015  2016  2017  2018  
Share of GDP (%)  4.7 5.1 5.5 6.3 .. .. 
International tourism expenditure (in  billion s of CRC)  1,525.3  1,617.6  1,752.1  1,978.2  .. .. 
Share of total employment (%)  13.2 13.3 13.3 13.2 .. .. 
International tourist arrivals (millions)  2.4 2.5 2.7 2.9 3.0 3.0 
Average spending (USD) per tourist arriving by air  1,322.6  1,351.3  1,369.3  1,309.1  1,561.4  1,335.4  
Average stay (days) per tourist arriving by air  11.6 12.4 11.3 12.1 11.9 11.7 
.. Not available.  
NB: Only overnight visitors staying in Costa Rica for more than 12  hours are included.  
Source:  ICT statistics . Viewed at: http://ict.go.cr/es/estadisticas.html . 
4.142.   The provision of services in the tourism sector is governed chiefly by the Law Regulating 
Travel Agencies, the Regulations governing Tourism Enterprises and Activities, the Regulations on 
Tourist Accommodation Companies and the Regulations governing Tourist Guides (Table  4.25) . In 
2018, new Regulations governing Tourism Enterprises and Activitie s were promulgated, simplifying 
the process for obtaining a tourism declaration, as were new Regulations governing Tourist Guides, 
which also simplified the procedures and requirements for obtaining tourist guide credentials . 
Additionally, the Regulations on Tourist Accommodation Companies  were amended in 2014 to cover 
rural community tourism lodgings, a new type of accommodation.  
                                                
227 Ministry of Finance (2018), Informe de Fin de Gestión 2018 . Viewed at: 
https://www.hacienda.go.cr/contenido/14495 -informe -de-fin-de-gestion -2018. 
228 Information available online. Viewed at: http:// gobierno.cr/turismo -de-reuniones -se-consolida -como -
punta -de-lanza-en-ese-sector -de-la-economia  and https://www.ict.go.cr/en/fe atured -news/1322 -costa-
rica per centE2  per cent80  per cent99s -wellness -pura-vida-on-display -in-termatalia.html . 
229 Information provided by the authorities and a BCCR/ICT press release of 15  November  2018. Viewed 
at: https://activos.bccr.fi.cr/sitios/bccr/noticias/Documentos%20compartidos/BCCR -
ICT_Comunicado_Cuenta_Sat%C3%A9lite%20Turismo.pdf . 
230 Law No.  6990 of 15  July 1985.  WT/TPR/S/392 • Costa Rica  
 
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  Table 4.25 Main legislation governing the tourism sector  
Title Number and date Most recent 
amendment  
Law on the Organization of the Costa Rican 
Tourism Institute  Law No.  1917 of 2 9 July 1955 2010 
Law Regulating Travel Agencies  Law No.  5339 of 2 3 August  1973 1994 
Regulations on Tourist Accommodation 
Companies  Executive Decree No.  11217 of 
25 February  1980 2014 
Regulations governing the Award of Business 
Permits and Operating Licences for Casinos  Executive Decree No.  20224 of 
15 January  1991 1996 
Regulations governing Tourist Guides  Executive Decree No.  41369 of 8 August  2018a n.a. 
Regulations governing Tourism Enterprises 
and Activities  Executive Decree No.  41370 of 1 9 July 2018b n.a. 
a Repealed Executive Decree No.  31030 of 17  January  2003.  
b Repealed Executive Decree No.  25226 of  15 March  1996.  
n.a. Not applicable.  
Source:  WTO Secretariat.  
4.143.   The Costa Rican Tourism Institute (ICT) is the body that draws up and delivers policy for 
this sector ; it also regulates and inspects tourism -related activities . The ICT is an autonomous entity 
managed by a board comprising the Minister of Foreign Affairs and four Government -appointed 
individuals who are "acknowledged to have experience in matters closely associated with problems 
arising from tourism".231 
4.144.   Tourism policy is set out  in the National Tourism Development Plan that is published every 
four years . According to the Plan for 2017 -21, Costa Rica aspires to a sustainable, innovative and 
inclusive tourism model . In order to achieve that aim, the Plan provides as follows : (1) tourism 
services should be distributed across the whole of the national territory ; (2) there should be 
diversification in the services supplied (e.g. conference tourism) and the markets covered232; 
(3) there should be better value for money and specialization in market niches with high potential 
for development ; and (4) chains of production should be strengthened.233 
4.145.   Foreigners can provide any tourism -related services in Costa Rica.  
4.146.   Businesses that provide tourism -related services or perform tourism -related activities can 
request the ICT to issue them with a "tourism declaration" recognizing them as tourism -related 
businesses . Additionally, tourist guides may apply for credentials, which vary depending on the 
category the guide falls into (general, sp ecialist or local) ; they are valid for three years and can be 
renewed . In order to obtain and renew the credentials the guide must have specific training . Only 
foreigners who are permanently resident in Costa Rica can obtain the credentials .234 Costa Rica do es 
not restrict the number of tourism service providers.  
4.147.   Service providers who hold a tourism declaration can enter into a tourism contract with the 
ICT, exempting them from paying tariffs and taxes on imports and local purchases of certain goods 
(Table  4.26). The type of activities covered by tourism contracts, their duration and the exempt 
goods have not changed since 2013 . The bulk of tourism contracts are with accommodation 
providers . Rural tourism cooperatives/partnerships can also enter into tourism c ontracts although to 
date no contracts of this kind have been signed.  
                                                
231 Law No.  1917 of 29  July 1955.  
232 The Bicentenary National Development and Public Investment Pl an 2019 -2022 makes it an 
ICT objective to implement a conference -tourism strategy.  
233 National Tourism Development Plan 2017 -2021. Viewed at: http://www.ict.go.cr/es/documentos -
institucionales/planes -y-documentos -institucionales.html#preliminares . 
234 Articles 16 -17 of Executive Decree No.  41369 of 8  August  2018.  WT/TPR/S/392 • Costa Rica  
 
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  Table 4.26 Tourism contracts  
Activity  Duration of the 
tourism contract  Exempt goods  
Law on Tourism Development Incentives (No.  6990) of 15  July 1985 (most recent amendment: 2001)  
Establishments offering 
accommodation  7 years  • Goods to construct, expand or renovate establishments offering 
accommodation  
Travel agencies  5 years  • Public -transport type vehicles (minimum capacity: 15 people)  
Waterborne transport 
businesses  Waterborne transport: 
6 years  
Marinas: 7 years  • Goods to construct, expand or renovate quays  
• Goods to construct and maintain marinas and resorts  
• Vessels for waterborne transport of passengers  
Costa Rican and foreign 
airlines  As stated on the air 
operating certificate  • Spare parts  
Vehicle rental businesses  9 years  • Rental vehicles for tourists  
Law on the Promotion of Rural Community Tourism (No.  8724) of 17  July 2009 (most recent amendment: 2012)  
Rural community tourism 
cooperatives or partnershipsa Once only  • Outboard motors  
• Vehicles and buses with a capacity of between 8 and 12 passengers  
• Materials, inputs and alternative technologies to construct waste 
water treatment plants  
a Rural community tourism businesses can also benefit from the incentives available under the Law on 
Tourism Development Incentives.  
Source:  Information available online . Viewed at: 
http://www.ict.go.cr/es/servicios -institucionales/contrato -turistico.html . 
 WT/TPR/S/392 • Costa Rica  
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS section and main chapter, 2012 -18 
HS section/HS chapter  2012  2013  2014  2015  2016  2017  2018  
Total (USD  million)  8,696.9  8,599.8  9,167.0  9,238.5  9,921.8  10,622.3  11,287.0   
(% of exports)  
01 Live animals; animal products  3.6 3.8 4.0 3.6 3.2 3.1 3.0 
02 Vegetable products  28.9 28.5 28.0 26.6 27.2 26.6 25.3 
08 Edible fruit and nuts  19.9 20.7 21.1 19.6 20.7 20.6 19.6 
0803 Bananas, including 
plantains, fresh or dried  9.4 9.6 9.9 9.0 10.1 9.8 9.1 
080430 Pineapples  8.9 9.5 9.4 8.7 8.9 9.1 8.9 
09 Coffee, tea, maté and spices  4.9 3.6 3.1 3.4 3.2 2.9 2.8 
0901 Coffee  4.8 3.6 3.1 3.4 3.1 2.8 2.7 
03 Animal or vegetable fats and 
oils 3.1 2.2 2.0 1.7 1.6 1.7 1.7 
04 Prepared foodstuffs; 
beverages; and tobacco  13.2 14.7 13.6 14.3 14.0 13.5 12.3 
20 Preparations of vegetables, 
fruit and nuts  4.1 4.0 3.7 3.9 4.5 4.0 3.3 
21 Miscellaneous edible 
preparations  4.9 5.2 5.3 5.5 5.1 5.0 5.0 
05 Mineral products  0.5 0.4 0.5 0.5 0.5 0.5 0.4 
06 Products of the chemical or 
allied industries  4.9 4.7 6.2 6.5 6.3 6.3 6.2 
07 Plastics and rubber  7.1 7.3 7.0 6.5 5.8 5.8 5.8 
08 Raw hides and skins, leather, 
furskins and articles  
thereof  0.3 0.3 0.3 0.2 0.1 0.1 0.1 
09 Wood and articles of wood; 
wood charcoal  0.9 0.8 0.8 0.8 0.7 0.8 0.7 
10 Pulp of wood; paper and 
paperboard and articles thereof  1.4 1.5 1.4 1.4 1.3 1.1 1.0 
11 Textiles and textile articles  2.0 1.8 1.6 1.4 1.2 1.1 1.1 
12 Footwear, headgear, umbrellas, 
walking -sticks, seat -sticks; articles 
made with feathers  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
13 Articles of stone, plaster, 
cement  1.4 1.3 1.4 1.1 1.0 1.2 1.4 
14 Precious stones and metals, 
pearls  0.6 0.4 0.3 0.3 0.3 0.4 0.3 
15 Base metals and articles of 
base metal  4.9 4.7 4.4 3.6 3.3 4.1 4.2 
16 Machinery and mechanical 
appliances, electrical equipment 
and parts thereof  7.9 7.5 7.2 5.8 5.6 5.2 5.5 
85 Electrical machinery and 
parts thereof  6.1 5.9 5.2 4.1 4.6 4.4 4.6 
17 Vehicles, aircraft, vessels and 
associated transport equipment  0.3 0.2 0.2 0.1 0.1 0.1 0.1 
18 Precision instruments  16.9 17.8 19.2 23.5 25.7 26.1 28.9 
90 Optical, photographic,  
measuring or  
medical instruments  16.9 17.8 19.2 23.5 25.7 26.1 28.9 
9018 Instruments used in 
medical, surgical, dental or  
veterinary sciences,  12.6 13.4 15.0 18.1 19.6 19.2 21.5 
90183 Syringes, needles, 
catheters, cannulae and the like  7.8 7.7 8.2 10.0 11.3 10.8 12.5 
19 Arms and ammunition  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous manufactured 
articles  2.2 2.2 2.0 2.2 2.0 2.3 2.0 
21 Works of art, collectors' pieces 
and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat calculations, based on data provided by the Costa Rican authorities.  
  WT/TPR/S/392 • Costa Rica  
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  Table A1. 2 Merchandise imports by HS section and main chapter, 2012 -18 
HS sections/HS chapters  2012  2013  2014  2015  2016  2017  2018  
Total (USD  million)  14,915.2  15,088.5  15,561.7  14,746.1  15,230.9  15,901.7  16,566.3   
(% of imports)  
01 Live animals; animal 
products  1.0 1.2 1.3 1.5 1.7 1.7 1.6 
02 Vegetable products  5.1 4.8 4.8 4.6 4.6 4.6 4.4 
03 Animal or vegetable fats 
and oils  0.4 0.4 0.4 0.3 0.6 0.6 0.6 
04 Prepared foodstuffs; 
beverages; and tobacco  5.6 6.0 6.5 6.5 6.8 6.8 6.6 
05 Mineral products  15.7 15.6 14.6 9.5 8,1 9.7 10.6 
27 Mineral fuels and mineral 
oils 15.4 15.3 14.3 9.1 7.8 9.4 10.4 
2710 Petroleum oils and 
oils obtained from 
bituminous minerals, other 
than crude  14.4 14.3 13.3 8.4 7.2 8.5 9.4 
06 Products of the chemical 
or allied industries  11.6 11.1 12.1 12.9 12.9 13.0 12.8 
30 Pharmaceutical products  3.0 3.1 4.0 4.6 4.7 5.0 4.7 
3004 Medicaments for 
therapeutic or  
prophylactic uses  2.6 2.6 3.1 3.5 3.6 3.8 3.5 
07 Plastics and rubber  8.2 8.5 8.9 9.3 9.2 9.2 9.5 
39 Plastics and articles 
thereof  6.6 7.0 7.5 7.9 7.9 7.8 8.1 
08 Raw hides and skins, 
leather, furskins and articles  
thereof  0.3 0.3 0.3 0.4 0.3 0.3 0.3 
09 Wood and articles of 
wood; wood charcoal  0.5 0.5 0.5 0.5 0.6 0.6 0.6 
10 Pulp of wood; paper and 
paperboard and articles 
thereof  4.6 4.6 4.4 4.5 4.2 4.4 4.5 
11 Textiles and textile articles  3.7 3.6 3.5 3.6 3.6 3.4 3.4 
12 Footwear, headgear, 
umbrellas, walking -sticks, 
seat-sticks; articles made 
with feathers  1.0 1.1 1.0 1.2 1.2 1.0 0.9 
13 Articles of stone, plaster, 
cement  1.2 1.2 1.3 1.5 1.5 1.4 1.3 
14 Precious stones and 
metals, pearls  0.2 0.2 0.2 0.3 0.3 0.3 0.3 
15 Base metals and articles of 
base metal  10.1 9.4 8.8 8.8 8.2 8.5 9.3 
72 Iron and steel  4.3 3.3 3.1 3.0 2.7 3.0 3.8 
73 Articles of iron or steel  2.5 2.7 2.5 2.6 2.6 2.7 2.7 
16 Machinery and mechanical 
appliances, electrical 
equipment and parts thereof  17.6 18.8 18.4 19.4 19.7 19.3 19.3 
84 Machinery and 
mechanical appliances  8.8 9.2 9.1 9.0 9.1 8.9 9.0 
85 Electrical equipment 
and parts thereof  8.8 9.6 9.3 10.4 10.6 10.4 10.2 
8517 Telephone sets, 
including telephones for 
cellular networks  2.5 2.8 2.5 3.4 3.0 3.0 3.0 
17 Transport equipment  7.8 8.0 7.9 8.9 9.9 8.4 7.3 
87 Vehicles other than 
railway or tramway 
rolling -stock, and parts and 
accessories thereof  7.0 6.7 6.7 8.8 9.8 8.2 6.8 
8703 Motor vehicles  4.0 3.7 3.8 4.8 5.4 4.7 3.9 
18 Precision instruments  3.1 2.5 2.9 3.7 3.9 3.8 3.8 
19 Arms and ammunition  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous 
manufactured articles  2.2 2.2 2.2 2.6 2.7 2.9 2.6 
21 Works of art, collectors' 
pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat calculations, based on data provided by the Costa Rican authorities.  
  WT/TPR/S/392 • Costa Rica  
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  Table A1. 3 Merchandise exports by trading partner, 2012 -18 
 
2012  2013  2014  2015  2016  2017  2018  
Total (USD  million)  8,696.9  8,599.8  9,167.0  9,238.5  9,921.8  10,622.3  11,287.0   
(% of exports)  
America  77.1 76.4 76.3 76.0 74.6 73.0 71.7 
United States  40.6 40.7 39.4 39.3 40.6 40.5 40.6 
Central American Common 
Market  17.7 17.8 17.8 18.6 17.2 16.8 16.0 
Guatemala  4.7 5.0 5.3 5.8 5.4 5.1 5.2 
Nicaragua  5.7 5.7 5.8 5.9 5.5 5.3 4.5 
Honduras  3.9 3.6 3.6 3.7 3.5 3.6 3.6 
El Salvador  3.4 3.5 3.2 3.2 2.8 2.8 2.7 
Panama  6.1 6.1 6.7 6.2 5.8 5.6 5.3 
Mexico  3.6 2.7 2.8 2.6 2.6 2.7 2.6 
Dominican Republic  2.9 2.6 2.9 2.8 2.6 2.2 2.1 
Canada  0.8 0.9 0.8 1.1 0.9 0.7 0.7 
Jamaica  0.6 0.5 0.5 0.5 0.5 0.6 0.5 
Colombia  0.7 0.8 0.9 0.8 0.7 0.5 0.5 
Brazil  0.3 0.4 0.3 0.2 0.3 0.3 0.5 
Europe  18.9 19.6 19.0 19.9 21.2 21.2 21.2 
EU-28 18.6 18.9 18.3 19.2 20.4 20.6 20.8 
Netherlands  5.0 5.0 4.6 4.7 5.6 5.5 6.0 
Belgium  3.4 3.6 4.0 4.6 5.3 6.3 5.9 
United Kingdom  2.7 2.6 2.5 1.8 1.8 1.9 1.8 
Italy 2.2 1.6 1.6 1.8 2.1 1.5 1.5 
Spain  1.0 0.9 1.3 1.4 1.5 1.5 1.5 
Germany  1.6 1.3 1.3 1.6 1.3 1.2 1.1 
Ireland  0.5 0.7 0.9 0.8 0.9 0.7 0.8 
France  1.1 1.2 0.9 1.2 0.7 0.6 0.5 
EFTA 0.2 0.2 0.3 0.4 0.3 0.2 0.2 
Other Europe  0.1 0.5 0.4 0.4 0.6 0.4 0.2 
Commonwealth of 
Independent States (CIS)  0.6 0.2 0.3 0.2 0.3 0.5 0.5 
Africa  0.1 0.4 0.2 0.1 0.1 0.1 0.1 
Middle East  0.3 0.3 0.3 0.3 0.3 0.3 0.2 
Asia 3.0 3.1 3.9 3.4 3.4 4.9 6.3 
China  0.6 0.7 0.9 0.6 0.5 1.0 1.8 
Japan  0.3 0.3 0.5 1.0 1.1 1.7 2.1 
Other Asia  2.0 2.1 2.6 1.8 1.9 2.2 2.4 
Hong Kong, China  0.4 0.4 0.3 0.3 0.3 0.4 0.7 
Source:  WTO Secretariat calculations, based on data provided by the Costa Rican authorities.  
  WT/TPR/S/392 • Costa Rica  
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  Table A1. 4 Merchandise imports by trading partner, 2012 -18 
 
2012  2013  2014  2015  2016  2017  2018  
Total (USD million)  14,915.2  15,088.5  15,561.7  14,746.1  15,230.9  15,901.7  16,566.3   
(% of imports)  
America  69.8 67.7 66.0 63.0 60.7 61.7 61.7 
United States  42.8 41.2 41.4 38.1 37.0 38.3 39.1 
Mexico  7.8 7.3 7.4 7.8 7.0 7.1 7.0 
Central American 
Common Market  5.7 5.7 5.7 5.9 5.9 5.8 5.5 
Guatemala  2.7 2.6 2.6 2.7 2.7 2.7 2.5 
El Salvador  1.5 1.5 1.4 1.6 1.6 1.6 1.5 
Nicaragua  0.7 0.8 1.0 0.9 0.9 1.0 0.9 
Honduras  0.8 0.8 0.7 0.7 0.7 0.6 0.7 
Brazil  2.8 2.5 1.7 2.0 2.2 1.9 2.1 
Colombia  2.2 2.1 2.0 2.1 1.9 1.9 1.9 
Chile 2.0 1.8 1.8 1.8 1.9 1.8 1.7 
Panama  2.4 2.2 2.3 1.9 1.9 1.7 1.3 
Canada  1.6 1.0 1.1 1.1 1.0 1.0 0.9 
Europe  8.9 9.5 10.3 10.9 11.1 11.5 11.1 
EU-28 8.0 8.5 9.1 9.6 9.7 10.1 9.6 
Germany  1.9 2.0 2.3 2.6 2.5 2.5 2.5 
Spain  1.3 1.3 1.3 1.5 1.5 1.8 1.6 
Italy 0.9 1.2 1.3 1.2 1.3 1.3 1.3 
United Kingdom  0.6 0.6 0.7 0.9 0.8 0.8 0.8 
France  0.6 0.6 0.7 0.8 0.8 0.8 0.8 
EFTA 0.7 0.7 0.9 0.9 1.0 1.0 1.0 
Switzerland  0.7 0.6 0.7 0.8 1.0 1.0 0.9 
Other Europe  0.2 0.3 0.4 0.4 0.4 0.4 0.5 
Commonwealth of 
Independent States 
(CIS)  0.4 0.2 0.2 0.4 0.4 0.4 0.7 
Africa  0.1 0.1 0.1 0.1 0.1 0.1 0.2 
Middle East  0.4 0.4 0.4 0.4 0.3 0.5 0.6 
Asia 18.1 19.3 20.0 22.9 24.3 22.8 23.1 
China  9.6 10.5 10.9 13.1 13.7 13.1 13.7 
Japan  3.4 2.9 2.6 2.7 2.7 2.4 2.2 
Other Asia  5.1 5.8 6.5 7.1 7.9 7.2 7.1 
Hong Kong, China  0.4 0.4 0.6 0.7 1.2 1.0 1.8 
Korea, Republic of  1.8 2.0 1.7 1.9 1.7 1.5 1.1 
India 0.6 0.6 0.7 0.9 1.2 1.2 1.1 
Chinese Taipei  0.7 0.7 1.0 0.8 0.7 0.7 0.7 
Other  2.3 2.8 2.9 2.3 3.0 3.1 2.5 
Source:  WTO Secretariat calculations, based on data provided by the Costa Rican authorities.  
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  Table A2. 1 Trade measures notified to the WTO, 1  January  2013 -30 April  2019  
Agreement  Description  Frequency  WTO documen t (most 
recent if submitted 
regularly)  
Agreement on Trade Facilitation (WT/L/911, replaced by WT/L/931)  
Article 15  Commitments designated under 
Category A  
Ad hoc  WT/PCTF/N/CRI/1, 
19 May 2014 
Article 16  Deadlines for the implementation 
of category B and C commitments  G/TFA/N/CRI/1, 
7 November  2017 
Article 1.4  Importation, exportation and 
transit procedures  G/TFA/N/CRI/2, 
23 March  2018 
Article 10.4.3  Operation of the single window  
Article 10.6.2  Use of customs brokers  
Article 12.2.2  Contact point for the exchange of 
information  
Agreement on Agriculture  
Article s 10 and 
18.2; ES:1  Export subsidies  On an annual basis  G/AG/N/CRI/63, 
25 April 2018  
Articles 10 and 
18.2; ES:2  Export subsidies  On an annual basis  G/AG/N/CRI/64, 
25 April 2018  
Article 18.2; 
DS:1 Domestic support  On an annual basis  G/AG/N/CRI/67, 
17 October  2018 
Article 18.2; 
MA:1 Administration of tariff and other 
quotas  Once; ad hoc  
(changes)  G/AG/N/CRI/61, 
5 October  2017 
Article 18.2; 
MA:2 Tariff and other quota 
commitments  On an annual basis  G/AG/N/CRI/66, 
27 April 2018 
Article 5.7; MA:3 
and MA:4  Special safeguard measures – 
Agriculture  Provisional or ad hoc   G/AG/N/CRI/68, 
1 November  2018 
Articles 5.7 and 
18.2; MA:5  Special safeguard provisions  On an annual basis  G/AG/N/CRI/65, 
26 April 2018 
General Agreement on Trade in Services  
Article III:4 
and/or IV:2  Enquiry points/contact points  Once only (within 
2 years of the entry 
into force of the 
Agreement)  S/ENQ/78/Rev.16, 
22 April 2016 
Article V:7(a)  Economic integration agreements  Ad hoc  S/C/N/870, 
1 November  2016 
S/C/N/774, 
21 November  2014 
S/C/N/717/Rev.1, 
28 January  2014 
S/C/N/709, 
17 September  2013 
S/C/N/696, 6 June 2013 
S/C/N/680, 
27 February  2013 
Agreement on Implementation of Article VI of the GATT 1994 (Anti -dumping)  
Article 16.4 – 
Semi-annual 
reports  Anti-dumping actions (taken within  
the preceding 6 months)  On a semi -annual 
basis G/ADP/N/322/CRI, 
27 March  2019 
Agreement on Implementation of Article VII of the GATT 1994 (Customs Valuation)  
Article 22.2  Changes to laws and regulations, 
and administrative provisions  Ad hoc  G/VAL/N/1/CRI/3, 
1 November  2013 
GATT 1994  
Article XVII:4(a)  State trading activities  On an annual basis  G/STR/N/17/CRI, 
23 November  2018 WT/TPR/S/392 • Costa Rica  
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  Agreement  Description  Frequency  WTO documen t (most 
recent if submitted 
regularly)  
Article  XXIV:7(a)  Formation of a free -trade area  Ad hoc  WT/REG376/N/1, 
1 November  2016 
WT/REG357/N/1, 
21 November  2014 
WT/REG349/N/1/Rev.1, 
28 January  2014 
WT/REG347/N/1, 
17 September  2013 
WT/REG342/N/1, 
6 June 2013 
WT/REG332/N/1, 
27 February  2013 
Agreement on Import Licensing Procedures  
Article 5.1, 5.2, 
5.3 Establishment of import licensing 
procedures or changes to these 
procedures  Ad hoc  G/LIC/N/2/CRI/3, 
12 December  2018 
Article 7.3  Replies to the questionnaire on 
import licensing procedures  On an annual basis  G/LIC/N/3/CRI/13, 
12 December  2018 
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7, 
Annex  B Sanitary and phytosanitary 
regulations  Ad hoc  G/SPS/N/CRI/213, 
8 April 2019 – 
G/SPS/N/CRI/136, 
11 January  2013 
Agreement on Rules of Origin  
Article 5 and 
Annex  II, 
paragraph 4  Modifications to preferential rules 
of origin; new preferential rules of 
origin  Ad hoc  G/RO/N/114, 2  April 2014 
G/RO/N/112, 2  April 2014 
G/RO/N/105, 
19 September  2013 
G/RO/N/93, 9 April 2013 
Article 5 and 
Annex  II, 
paragraph 4 – 
(first time)  Preferential rules of origin in force; 
judicial decisions and 
administrative rulings of general 
application relating to  
preferential rules of origin  Once only (within the 
90 days following the 
entry into force of the 
WTO Agreement for 
the Member 
concerned)  G/RO/N/161, 
21 July 2017 
G/RO/N/153, 
21 July 2017 
Agreement on Technical Barriers to Trade  
Article 2.10  Technical regulations (urgent)  Ad hoc  G/TBT/N/CRI/141, 
3 July 2013 
Article 2.9  Technical regulations  Ad hoc  G/TBT/N/CRI/184, 
28 January  2019 – 
G/TBT/N/CRI/137, 
25 February  2013  
Articles to be 
determined  Technical regulations  Ad hoc  G/TBT/N/CRI/182, 
17 October  2018 
G/TBT/N/CRI/181, 
17 October  2018 
G/TBT/N/CRI/166, 
20 April 2017 
G/TBT/N/CRI/165, 
7 February  2017 
G/TBT/N/CRI/150, 
9 July 2015 
G/TBT/N/CRI/148, 
8 December  2014 
G/TBT/N/CRI/140, 
8 May 2013 WT/TPR/S/392 • Costa Rica  
- 142 - 
  Agreement  Description  Frequency  WTO documen t (most 
recent if submitted 
regularly)  
Decision on Notification Procedures for Quantitative Restrictions (G/L/59/Rev.1)  
 List of quantitative restrictions 
currently in force  Once only before 
30 September  2012 
(within 2 years as 
from 
1 October  2012); 
Ad hoc (changes)  G/MA/QR/N/CRI/3, 
14 October  2018 
Agreement on Safeguards  
 Conclusion of an investigation 
without the adoption of safeguard 
measures  Ad hoc  G/SG/N/9/CRI/1, 
1 November  2013 
Article 12.1(a)  Safeguard measures (upon 
initiating an investigation)  Ad hoc  G/SG/N/6/CRI/4, 
26 March  2018 
G/SG/N/6/CRI/3, 
28 February  2014 
Article 12.1(b)  Safeguard measures (upon making 
a finding of serious injury or threat 
thereof)  Ad hoc  G/SG/N/8/CRI/1, 
20 January  2015 
Article 12.1(c)  Safeguard measures (upon taking 
a decision to apply or extend a 
safeguard measure)  Ad hoc  G/SG/N/10/CRI/1, 
20 January  2015 
Article 9.1, 
footnote 2  Non-application of safeguard 
measures against a product 
originating in a developing country 
Member  Ad hoc  G/SG/N/11/CRI/1, 
20 January  2015 
Agreement on Subsidies and Countervailing Measures  
Article 25.1 – 
GATT 
Article  XVI:1  Subsidies (any subsidy as defined 
in paragraph 1 of Article 1 of the 
Agreement, which is specific within 
the meaning of Article 2)  On an annual basis  G/SCM/N/299/CRI; 
G/SCM/N/315/CRI, 
23 October  2017 
Article 25.11 – 
Semi-annual 
reports  Countervailing measures (adopted 
in the previous 6 months)  On a semi -annual 
basis G/SCM/N/342, 
14 December  2018 
Article 27.4, 
Part VIII –
Developing 
country 
Members  Subsidies (extension beyond the 
8-year period, which expired on 
31 December  2002)  Ad hoc  G/SCM/N/284/CRI; 
G/SCM/N/290/CRI, 
21 July 2015 
G/SCM/N/253/CRI; 
G/SCM/N/260/CRI, 
1 July 2013 
Source: WTO Secretariat.  
  WT/TPR/S/392 • Costa Rica  
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  Table A3. 1 Customs regimes, 2019  
DEFINITIVE REGIMES  
Importation and exportation (Article 111) : Entry and exit of goods that comply with the formalities and 
the legal, regulatory and administrative requirements for use and definitive consumption within and outside 
the Costa Rican customs territory.  
TEMPORARY REGIMES  
National (internal) and international customs transit (Article 138) : Land transportation of goods under 
customs control within the nat ional territory.  
Multimodal transportation (Article 146): National and international transit of goods covered by a single 
contract of carriage, using at least 2 different modes of transport.  
Maritime and air transport (Article 151) : Transportation of goo ds under customs control, which are 
subject to duties, between 2 national ports or airports.  
Trans -shipment (Article 152) : Movement of goods under customs control from one transport unit to 
another in order to proceed with the customs transit without the goods being taxed.  
Bonded warehousing (Article 155) : Goods are temporarily placed in custody under the responsibility of 
the bonded warehouse operator and under customs control, without being subject to the payment of import 
duties.  
Repackaging and distribution services in bonded warehouses (Article 161) : The customs authority 
may authorize customs warehouses to provide services for the unpacking, splitting, sorting, packing, 
packaging, re -packing, re -packaging, re -marking, labelling and distribution of goods for subsequent 
consumption on the local market or for total or partial re -exportation.  
Temporary importation and exportation (Article 165) : Goods may enter the customs territory free of 
import duties for a specific period of time  with the suspension of import duties. The goods must be re -exported 
or imported definitively without undergoing any change or processing whatsoever,  within a period established 
by regulation and according to the purpose of the importation.  
On-board provi sions (Article 171) : On-board provisions are goods which are admitted temporarily and 
which are to be used for the maintenance of the crew, or to be consumed, sold or presented to passengers 
by the airline or maritime company. Such goods also include those  used in the operation, functioning and 
preservation of international passenger transport vehicles, not including spare and replacement parts and 
equipment for the vehicle or transport unit.  
REGIMES FOR EXEMPTION FROM PAYMENT OF CUSTOMS TAX  
Free zones (Articles 175 and 176) : The entry and exit of goods must take place at stations or places 
provided for the purpose of customs control. The customs authority shall perform, inter alia , the following 
customs control procedures: permanent or intermitten t watch at boundaries and on access roads; checks on 
the use and disposal of the merchandise; and inspection of beneficiary enterprises.  
Re-importation in the same state (Article 177) : This procedure allows for the duty -free and tax -free 
entry into the cu stoms territory of domestic or imported goods that have been exported definitively but return 
in the same state.  
Re-exportation (Article 178) : This procedure allows for the exit from the customs territory of foreign goods 
that have arrived in the country but have not been imported definitively.  
PROCESSING REGIMES  
Inward processing (Article 179) : This procedure allows for goods to be received in the national customs 
territory exempt from all types of taxes and under a guarantee. These goods must be re -exported within the 
time-limits laid down in the relevant regulations, after being processed.  
Temporary export for outward processing  (Article 187) : This procedure allows for the temporary 
exportation of goods circulating freely within the national customs territory, for the purpose of processing, 
working or repair abroad and subsequent re -importation.  
DRAWBACK REGIME  
Drawback regime (Article 190) : This procedure allows for  the refund of any duties paid following the 
definitive importation of input s, containers or packaging incorporated in export products, provided that the 
goods are exported within 12 months of their importation.  
Source:  General Customs Law (Law No.  7557) of 20  October  1995.  
  WT/TPR/S/392 • Costa Rica  
- 144 - 
  Table A3. 2 Summary analys is of the MFN tariff, 2019  
 
MFN Bound tariff 
rangea (%) Number 
of lines  Average  
(%) Range  
(%) CV 
Total  10,434  7.0 0-151 1.4 0-233.1  
HS 01 -24 2,060  14.3 1-151 1.2 1-233.1  
HS 25 -97 8,374  5.2 0-15 1.0 0-100 
By WTO category       
Agricultural products  1,700  14.1 1-151 1.3 1-233.1  
Animals and animal products  218 28.8 1-151 1.3 10-233.1  
Dairy products  48 53.8 1-66 0.4 35-94.7 
Fruit, vegetables and garden produce  534 12.9 1-46 0.6 1-45 
Coffee and tea  48 13.0 1-15 0.3 45-50 
Cereals and cereal preparations  194 10.1 1-66 1.0 1-94.7 
Oil seeds, fats and oils and their products  142 6.5 1-15 0.8 1-45 
Sugar and confectionery  37 17.4 1-46 0.9 45-45 
Beverages, alcohol and tobacco  190 13.6 1-41 0.3 5-60 
Cotton  6 1.0 1-1 0.0 45-45 
Other agricultural products n.e.s.  283 4.9 1-15 1.0 1-45 
Non-agricultural products  8,734  5.6 0-46 1.0 0-100 
Fish and fish products  481 12.2 1-46 0.4 45-60 
Mineral products and metals  1,382  4.8 0-15 1.1 0-60 
Chemicals and photographic products  2,105  3.1 0-15 1.3 0-55 
Wood, wood pulp, paper and furniture  651 7.5 0-15 0.7 10-55 
Textiles  852 0.7 1-15 0.5 30-70 
Clothing  251 14.8 1-15 0.1 45-45 
Leather, rubber, footwear and travel articles  276 8.2 1-15 0.6 25-70 
Non-electrical machinery  852 2.6 0-15 1.6 0-50 
Electrical machinery  495 3.0 0-15 1.6 0-63 
Transport equipment  703 4.7 0-15 1.2 14-100 
Non-agricultural products n.e.s.  640 7.3 0-15 0.9 0-45 
Petroleum  46 4.5 0-15 1.0 30-45 
By HS section       
01 Live animals; animal products  678 18.2 1-151 1.3 5-233.1  
02 Vegetable products  719 10.2 1-46 0.8 1-45 
03 Fats and oils  90 9 1-15 0.6 5-45 
04 Prepared foodstuffs, etc.  573 15.5 1-151 1.0 5-233.1  
05 Mineral products  244 3.4 0-15 1.1 30-45 
06 Products of the chemical or allied 
industries  1,899  2.5 0-15 1.4 0-55 
07 Plastics and rubber  469 5.9 1-15 0.8 5-45 
08 Raw hides and skins, leather  133 9.0 1-15 0.6 5-60 
09 Wood and articles of wood  242 9.1 1-15 0.5 10-45 
10 Pulp of wood, paper, etc.  363 6.1 1-15 0.8 20-55 
11 Textiles and textile articles  1,068  9.9 1-15 0.5 45-45 
12 Footwear and headgear  92 12.9 1-15 0.3 45-70 
13 Articles of stone  250 8.0 0-15 0.8 0-60 
14 Precious stones, etc.  58 8.0 1-15 0.7 40-45 
15 Base metals and articles of base metal  866 4.3 1-15 1.1 20-50 
16 Machinery and mechanical appliances  1,403  2.9 0-15 1.6 0-63 
17 Vehicles, aircraft, vessels and associated 
transport equipment  721 4.7 0-15 1.2 14-100 
18 Precision instruments  286 4.0 0-15 1.3 0-45 
19 Arms and ammunition  28 15.0 15-15 0.0 45-45 
20 Miscellaneous manufactured articles  241 11.1 0-15 0.5 20-45 
21 Works of art, etc.  11 8.2 6-10 0.2 45-45 
a Based on the 2019 tariff, which is in the HS 2017 nomenclature. The official bound rates are in the 
HS 2007 nomenclature. For the purpose of this analysis, concordance has been ensured between the 
HS 2007 nomenclature and the HS 2017 nomenclature wherever possible.  
CV =  Coefficient of variation . 
Source:  WTO Secretariat calculations, based on data provided by the Costa Rican authorit ies. 
  WT/TPR/S/392 • Costa Rica  
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  Table A3. 3 Applied MFN tariff quota utilization  
(Metric tonnes and  %) 
Product/  
Tariff headings  2013  2017  2019  Import volume  
% of 
utilization  
Import volume  
% of 
utilization  
In-quota rate  
(%) 
Out-of-quota 
rate 
% 
Other cuts and offal of poultry, fresh, chilled or frozen  
0207.13.92, 0207.13.93, 0207.13.94, 0207.13.99, 
0207.14.92, 0207.14.93, 0207.14.94, 0207.14.99, 
0207.26.90, 0207.44.90, 0207.54.90, 0207.60.49  0 0 719.8  56.1 35 151 
Milk and cream, not concentrated nor containing added 
sugar or other sweetening matter  
0401 1.8 0.5 0 0 35 66 
Milk and cream, concentrated or containing added sugar or 
other sweetening matter  
0402 (except 0402.91.10 and 0402.99.10)  0 0 0 0 35 66 
Buttermilk, curdled milk and cream, yogurt, kephir and 
other fermented or acidified milk and cream, whether or not 
concentrated or containing added sugar or other 
sweetening matter or flavoured or containing added fruit, 
nuts or cocoa  
0403 44 88.1 48.2 96.5 35 66 
Butter and other fats and oils derived from milk  
0405 13.8 30.6 19.5 43.4 35 66 
Fresh cheese; Processed cheese  
0406.10,  
0406.30  7.4 2.0 26.5 7.1 35 51 
66 
Sausages and similar products. Meat and meat offal of 
poultry of heading 0105; other prepared or preserved meat 
and meat offal of poultry of heading 0105  
1601.00.20, 1602.10.20, 1602.32.00/1602.32.10 and 
1602.32.90  2.3 1.5 0 0 20 
30 41 
151 
Ice cream and other edible ice, whether or not containing 
cocoa  
2105 36.1 5.0 21.9 3.0 40 66 
Note:  The bound tariff quotas that do not appear in the annexed table are those that were not activated 
during the period in question because better access conditions were applied than those established 
by Costa Rica in Schedule LXXXV.  
Source:  Information provided b y the authorities.  
  WT/TPR/S/392 • Costa Rica  
- 146 - 
  Table A3. 4 Preferential tariff quota utilization  
(Metric tonnes and  %) 
Product/  
Tariff headings  2013  2017  Tariff 
(2019)  Import volume  
% of utilization  
Import volume  
% of utilization  
In-quota rate  
(%) 
35 
Out-of-quota 
rate 
(%) 
CAFTA -DR       
Fresh potatoes  
0701.90  48.6 14.2 310.4  84.8 0 46 
Fresh onions  
0703.10.11, 0703.10.12, 0703.10.13, 0703.10.19  245.9  71.9 285.0  77.9 0 46 
Meat of swine  
0203.11, 0203.12, 0203.19, 0203.21, 0203.22, 
0203.29  1,697.6  90.5 2,224.9  91.7 0 5.1 
5.2 
Legs, thighs and drumsticks  
0207.13.93; 0207.14.93  460.2  85.2 630.7  95.6 0 68 
Milk powder  
0402.10; 0402.21; 0402.29  55.1 19.6 120.1  35.1 0 39.6 
Butter  
0405.10.00; 0405.20.00  1.8 0.9 2.0 0.8 0 39.6 
Cheese  
0406.10.10, 0406.10.90, 0406.20.20, 0406.20.90, 
0406.30.00, 0406.90.20, 0406.90.90  421.5  73.0 648.6  92.5 0 22.8 
30.6 
39.6 
Ice cream and other edible ice  
2105.00  156.3  74.1 200.9  78.2 0 39.6 
Other milk products; Milk beverages  
0402.99.90, ex 2202.90.90  3.1 1.6 14.6 6.1 0 39.6 
Pounded rice  
1006.20.00; 1006.30.10; 1006.30.90; 1006.40.00  5,601.4  80.0 6,467.7  80.8 0 1 
24.5 
Rice in the husk (paddy or rough)  
1006.10.90  57,916.0  99.9 61,888.8  99.8 0 24.5 
Chicken breastsa 
0207.13.91; 0207.14.91  0.0 0.0 0.0 0.0 41 41 
Milk powdera 
0402.10; 0402.21; 0402.29  0.0 0.0 0.0 0.0 35 66 
Costa Rica and Canada        
Meat and meat offal of swine  
0203, 0206.30.90, 0206.49.90  789.7  97.0 742.7  91.2 0 46 
Liquid milk or milk powderb 
0401.10.00, 0402.10.00  0.0 0.0 0.0 0.0 0 66 
Natural honey  
0409.00  0.0 0.0 n.a. n.a. n.a. n.a. 
Wheat or meslin flour  
1101.00.00, 1103.11.00  38.5 0.2 n.a. n.a. n.a. n.a. 
Soybean flour and residues of soya oil  
1208.10.00, 1208.90.00, 2304, 2306.41, 2306.49  0.0 0.0 n.a. n.a. n.a. n.a. 
Oils 
1507, 1512.11, 1512.19, 1514, 1515.21, 1515.29, 
1516.20.90, 1517.90  413.7  22.2 n.a. n.a. n.a. n.a. 
Refined sugar obtained from raw sugar from 
sugarcanec 
1701.91.00, 1701.99.00  0.0 0.0 3,997.2  99.9 0 0 
Costa Rica and Panama (Bilateral Protocol)        
Meat of swine  
0203.11, 0203.12, 0203.19, 0203.21, 0203.22, 
0203.29, 0210.11, 0210.19  8.5 2.5 0.0 0.0 0 
15 46 
Refrigerated pasteurized liquid milk  
0401.10, 0401.20  0.0 0.0 0.0 0.0 0 5.5 WT/TPR/S/392 • Costa Rica  
- 147 - 
  Product/  
Tariff headings  2013  2017  Tariff 
(2019)  Import volume  
% of utilization  
Import volume  
% of utilization  
In-quota rate  
(%) 
35 
Out-of-quota 
rate 
(%) 
Long-life ultra -pasteurized liquid milk (in aseptic 
packings)  
0401.10, 0401.20  0.0 0.0 0.0 0.0 0 5.5 
Skimmed milk powder  
0402.10  0.0 0.0 0.0 0.0 0 5.5 
Full-cream milk in bulk (not for repackaging)  
0402.21.22  0.0 0.0 0.0 0.0 5.5 5.5 
Crude palm oil  
1511.10  0.0 0.0 264.0  58.7 0 6 
Refined palm oil  
1511.90.10, 1511.90.90  0.0 0.0 0.0 0.0 0 6 
15 
Prepared or preserved meat, or meat offal of fowls 
of the species Gallus domesticus  
1602.32.10, 1602.32.90  0.0 0.0 n.a. n.a. n.a. n.a. 
Other tomato saucesd 
2103.20  0.0 0.0 446.5  38.5 0 0 
Sausages in airtight containers  
1601.00  0.0 0.0 0.0 0.0 0 2.3 
5.5 
23.2 
Ham in containers weighing more than 1 kg 
1601.00.30, 1601.00.30  0.0 0.0 0.0 0.0 0 5.5 
Ham, in airtight containers  
1602.41  0.0 0.0 0.0 0.0 0 5 
Stockings and socks  
6111.20, 6115.10.90, 6115.94, 6115.95, 6115.96, 
6115.99  0.0 0.0 n.a. n.a. n.a. n.a. 
Panty hose  
6115.10.90, 6115.30, 6115.96  0.0 0.0 n.a. n.a. n.a. n.a. 
Toilet paper  
4818.10  .. .. 431.8  98.1 0 0 
Paper towels  
4818.20  0.0 0.0 13.6 85.0 0 0 
Paper serviettes  
4818.30  34.4 78.2 35.9 81.6 0 0 
Costa Rica and China        
Meat of swine, frozene 
0203.21, 0203.22, 0203.29  0.0 0.0 0.0 0.0 0 46 
Black beans  
0713.33.10  7,716.0  77.2 9,398.6  94.0 0 31 
Costa Rica and Peru        
Meat of bovine animals  
0201.10, 0201.20, 0201.30, 0202.10, 0202.20, 
0202.30  n.a. n.a. 0.0 0.0 0 15 
Central America and the EU        
Preserved hams and bellies (streaky)f 
0210.11, 0210.12 0210.19  0.0 0.0 51.9 4.8 0 5 
24 
Prepared or preserved meat of swinef 
1602.41, 1602.42, 1602.49.90  0.0 0.0 10.2 0.9 0 21.3 
35 
Milk powder  
0402.10.00, 0402.21, 0402.29  0.0 0.0 0.0 0.0 0 65 
Cheese  
0406.20.90, 0406.30.00, 0406.90.20, 0406.90.90  6.5 8.2 245.7  64.5 0 35 
50 
65 
Wheyf 
ex0404.90  0.0 0.0 n.a. n.a. n.a. n.a. WT/TPR/S/392 • Costa Rica  
- 148 - 
  Product/  
Tariff headings  2013  2017  Tariff 
(2019)  Import volume  
% of utilization  
Import volume  
% of utilization  
In-quota rate  
(%) 
35 
Out-of-quota 
rate 
(%) 
Costa Rica and Colombia        
Feeding preparations for fish  
2309.90.19  n.a. n.a. 0.0 0.0 0 15 
.. Not available . 
a Quota for products from the Dominican Republic.  
b No defined volume for this quota; an additional tariff preference is granted for products from Canada 
under the WTO quota.  
c Quota for non -originating products.  
d Quota for products with flexible rule of origin.  
e This quota has not been made available as no plants have been granted sanitary authorization for 
exportation from China to Costa Rica.  
f Regional volumes.  
n.a. Not applicable . 
Source:  Information provided by the authorities . 
  WT/TPR/S/392 • Costa Rica  
- 149 - 
  Table A3. 5 Other charges on imports, 2019  
Tax Rates  Taxable 
goods/services  Exempt goods/services  
General sales tax (GAT)  
General Sales Tax Law 
(Law No.  6826) of 
8 November  1982 13% (unchanged since 2013)  Goods and services  174 goods in the basic food 
basket (including monthly 
electricity consumption not 
exceeding 250 kWh) and 
26 goods essential for 
education (Article 5 of the 
Regulations implementing 
the General Sales Tax Law 
(Executive Decree 
No. 14082) of 
29 November  1982)  
 
Energy efficient goods 
(Article 38 of the Law 
Regulating the Rational Use 
of Energy (Law No.  7447) 
of 3 November  1994)  
 
Electric vehicles and spare 
parts (Article 9 of the Law 
on Incentives for and the 
Promotion of Electric 
Transport (Law No.  9518) 
of 25 January  2018)  
Regulations implementing 
the General Sales Tax Law 
(Executive Decree 
No. 14082) of 
29 November  1982 5% (unchanged since 2013)  Monthly residential 
electricity 
consumption 
exceeding 250  kWh.  n.a. 
Law on Forestry (Law 
No. 7575) of 
13 February  1996 10% (unchanged since 2013)  Wood  n.a. 
Selective consumption tax (ISC)  
Law on the Harmonization 
of Selective Consumption 
Taxes (Law No.  4961) of 
11 March  1972 Between 5% and 95%, 
depending on the goods 
(unchanged since 2013)  Goods such as beer, 
wine, liqueurs, 
cigars, cigarettes, 
paints and varnishes, 
soap, tyres, 
machinery and 
applianc es, and 
vehicles and 
motorcycles  Energy efficient goods 
(Article 38 of the Law 
Regulating the Rational Use 
of Energy (Law No.  7447) 
of 3 November  1994)  
 
Goods included in tourism 
contracts (Law on Tourism 
Development Incentives 
(Law No.  6990) of 
15 July 1985 and Law on 
the Promotion of Rural 
Community Tourism (Law 
No. 8724) of 17  July 2009)  
 
Electric vehicles and spare 
parts (Article 9 of the Law 
on Incentives for and the 
Promotion of Electric 
Transport (Law No.  9518) 
of 25 January  2018)  
Special consumption tax on alcoholic beverages  
Law on the Tax on 
Cigarettes and Spirits for 
the Social Protection Plan 
(Law No.  7972) of 
24 December  1999 Between CRC 3.31 and CRC 
4.68 per ml of absolute 
alcohol, according to the 
percentage of alcohol by 
volume  Alcoholic beverages  n.a. 
Special consumption tax on packaged non -alcoholic beverages  
Law on Tax Simplification 
and Efficiency (Law 
No. 8114) of 4  July 2001  Between CRC 6.60 and CRC 
19.09 per 250 ml (rate 
applicable from 
1 January  2019)  Carbonated and 
concentrated 
beverages; other 
packaged liquid 
beverages; water  Milk and beverages for 
therapeutic or medical use  WT/TPR/S/392 • Costa Rica  
- 150 - 
  Tax Rates  Taxable 
goods/services  Exempt goods/services  
Special tax on toilet soap  
Law on Tax Simplification 
and Efficiency (Law 
No. 8114) of 4  July 2001 CRC 0.241 per gram (rate 
applicable from 
1 January  2019)  Toilet soap  n.a. 
Tax on fuel  
Law on Tax Simplification 
and Efficiency (Law 
No. 8114) of 4  July 2001 Between CRC 23.75 and 
CRC 257.75 per litre, 
according to fuel type (rate 
applicable from 
1 February  2019)  13 types of fuel 
(gasoline, diesel, 
kerosene, etc.)  Fuel for the refuelling of 
aircraft and vessels 
providing international 
transport services; fuel 
used by the Costa Rican 
Red Cross; fuel used by 
domestic fishing vessels 
(non-recreationa l fishing)  
Tax on tobacco products  
General Law on the 
Control of Tobacco and its 
Harmful Effects on Health 
(Law No.  9028) of 
26 March  2012  CRC 23.75 per unit  Unmanufactured 
tobacco, cigars, 
cigarettes and 
tobacco substitutes  Tobacco substitutes and 
extracts, and tobacco 
essences for insecticidal 
and fungicidal preparations  
Taxes for the financing of INDER  
Law establishing the 
Agricultural Stamp Duty 
and the Tax on the 
Consumption of Cigarettes 
and Beverages (Law 
No. 5792) of 
1 Septe mber 1975  2.5% on the price ( unchanged 
since 2013)  Cigarettes  
n.a. CRC 5.725 per unit of 250  ml 
(unchanged since  2013)  
Carbonated drinks  CRC 2.35 per unit of 250  ml, 
when manufactured by micro 
and small enterprises whose 
annual production does not 
exceed 17  million units 
(unchanged since  2013)  
8% on the price ( unchanged 
since 2013)  Liqueurs  
CRC 0.4 per ml of absolute 
alcohol ( unchanged since 
2013)  Beer 
CRC 0.1 or CRC 0.2 per ml of 
absolute alcohol ( unchanged 
since 2013).  Wine 
Taxes for the financing of IFAM  
Law on the Sale of Spirits 
(Law No.  10) of 
7 October  1936 10% on the sale price 
(unchanged since 2013).  Domestic liqueurs  
n.a. 10% of the total import cost 
(unchanged since 2013)  Imported liqueurs 
and beer  
Law establishing the 
Agricultural Stamp Duty 
and the Tax on the 
Consumption of Cigarettes 
and Beverages (Law 
No. 5792) of 
1 September  1975 CRC 0.25618 per ml of 
absolute alcohol (rate 
applicable since 
1 October  2018)  Domestic and 
imported beer  
n.a. Not applicable . 
Source:  WTO Secretariat: Tributos vigentes en Costa  Rica (actualizada al mes de abril de 2016) , Ministry of 
Finance. Viewed at: https://www.hacienda.go.cr/docs/570540179b204_tributosvi.pdf ; and online 
information from the Ministry of Finance. Viewed at: https://www.hacienda.go.cr/contenido/13036 -
subsitio -dgt. 
  WT/TPR/S/392 • Costa Rica  
- 151 - 
  Table A3. 6 Import restrictions  
(a) Prohibitions  
Product description  HS 
chapter  Grounds  
Prohibitions  
Arms and ammunition, explosives and other 
related materials  36; 87; 
89; 93  Combating illegal manufacturing and trafficking  
Hazardous waste  25; 27; 
28; 29; 30  Protection of human health  
Environmental conservation  
Freon gas  2903.76.20  Environmental conservation  
Worn undergarments and footwear  63 Protection of human health  
Used pneumatic tyres (including retreaded)  40 Protection of human health  
Mini jellies containing the food additive 
known as konjac flour INS No.  425 17 Protection of human health  
Toys containing toluene and xylene  95 Protection of human health  
Conditional prohibitions (imports subject to specific conditions)  
Fish, molluscs and crustaceans  03 Conservation of renewable natural resources  
(b) Import permits and authorizations  
Requirement  HS 
chapter  Grounds  Authorizing institution  
Convention on International Trade in 
Endangered Species of Wild Fauna and Flora 
(CITES) import (or export) permit  01, 03, 06, 
44 Protection of 
species   Senior Directorate, National 
Conservation Area Scheme 
(Ministry of the Environm ent 
and Energy)  
Authorization for the import (or export) of 
fish, molluscs and crustaceans, live or in 
any living state; sharks and their 
by-products, tuna, swordfish and sailfish in 
any form, authorization for the transit of 
sharks and their by -products in any form  03 Environmental 
protection  Costa Rican Fisheries and 
Aquaculture Institute  
Permit for the import (or export) of 
explosives  25, 28, 31, 
32, 36, 76  Public security  Department for the Control of 
Arms and Explosives 
(Ministry of Public S ecurity)  
Authorization for the import (or export) of 
hazardous waste (Basel Convention)  26, 27, 40, 
72, 78, 81, 
84, 85, 90  Environmental 
protection  Directorate for the Protection 
of the Human Environment 
(Ministry of Health)  
Authorization for the import (and export)  of 
substances that deplete the ozone layer 
(Montreal Protocol)  27, 28, 29, 
30, 38,  Environmental 
protection  Directorate of Environmental 
Quality Management, Ozone 
Technical Office (Ministry of 
the Environment and Energy)  
Authorization for the import of precursors 
and chemical substances, including customs 
seals 12, 22, 
27-29, 38. 
39, 84  Protection of 
public health  Unit for the Control and 
Inspection of Precursors 
(Office of the President)  
Authorization for the import (or export) of 
processed and/or preserved human body 
parts for transplantation  30 Protection of 
public health  Technical Executive 
Secretariat for Organ and 
Tissue Donation and 
Transplantation (Ministry of 
Health)  
Authorization to dewarehouse used clothing 
and footwear  63 Protection of 
public health  Service Platform Unit 
(Ministry of Health)  
Permit for the import (or export) of drugs 
and narcotics and customs seals  13, 14, 29  Protection of 
public health  Drugs and Narcotics 
Monitoring Board (Ministry of 
Health)  
Authorization for customs clearance of toxic 
and hazardous substances  25-29, 
32-34, 36, 
38, 68, 78, 
81, 84, 85, 
90 Environmental 
protection  Ministry of Health  
Authorization for the import (or export) of 
raw materials, basic elements for medicines  
and cosmetics; medicines, cosmetics and 
medical equipment  12, 13, 19, 
29, 30, 33, 
34, 38, 40, 
48, 56, 90, 
96 Protection of 
public health  Ministry of Health  
Permit for the import of arms  87, 93  Public security  Department for the Control of 
Arms and Explos ives 
(Ministry of Public Security)  WT/TPR/S/392 • Costa Rica  
- 152 - 
  Requirement  HS 
chapter  Grounds  Authorizing institution  
Permit for the import of ammunition  93 Public security  Department for the Control of 
Arms and Explosives 
(Ministry of Public Security)  
Import (or export) authorization from the 
National Chemical Weapons Authority  28, 29 and 
30 Public security  Technical Secretariat 
(National Chemical Weapons 
Authority)  
Source:  WTO documents G/MA/QR/N/CRI/3 of 24  October  2018, G/MA/QR/N/CRI/2 of 9  October  2014, 
G/MA/QR/N/CRI/1/Corr.1 of 27  February  2013 and G/MA/QR/N/CRI/1  of 8 October  2012.  
  WT/TPR/S/392 • Costa Rica  
- 153 - 
  Table A3. 7 Export restrictions  
(a) Prohibitions  
Product  HS 
chapter  Grounds  
Prohibitions  
Logs and roughly squared timber from 
forests  44 Conservation of natural resources  
Conditional prohibitions (exports subject to specific conditions)  
Coffee  09 Quality control  
Fish, molluscs and crustaceans  03 Conservation of renewable natural resources  
(b) Export permits and authorizations  
Requirement  HS 
chapter   Grounds  Authorizing institution  
CITES export permit  01, 03, 
06, 44  Protection of species  Ministry of the 
Environment and Energy  
Authorization for the export of fish, 
molluscs and crustaceans  03 Environmental 
protection  INCOPESCA  
Authorization for the export of coffee  09 Quality control  ICAFE  
Permit for the export of explosives  25, 28, 
31, 32, 
36, 76  Public security  Ministry of Public Security  
Authorization for the export of 
hazardous waste (Basel Convention)  26, 27, 
40, 72, 
78, 81, 
84, 85, 
90 Environmental 
protection  Ministry of Health  
Authorization for the export and 
re-export of substances that deplete the 
ozone layer (Montreal Protocol)  27, 28, 
29, 30, 
38 Environmental 
protection  Ministry of the 
Environment and Energy  
Authorization for the import (or export) 
of processed and/or preserved human 
body parts for transplantation  30 Protection of public 
health  Ministry of Health  
Authorization for the export of original 
archaeological items by the Board and 
Commission  97 Protection of national 
archaeological heritage  National Museum  
Permit for the export of textiles and 
clothing  50-62 Administration of 
export  quotas  National Association of 
Textile Industry Exporters  
Permit for the export of sugar in bulk  17 Registration and 
statistical monitoring of 
the production and 
export of sugar  LAICA  
Authorization for the export of plasms 
and blood for research purposes  30 Public health  Ministry of Health  
Permit for the export of arms and 
ammunition  93 Public security  Ministry of Public Security  
Permit for the export of seeds  09, 12  Registration and 
monitoring of the 
export of seeds  National Seeds Off ice 
Permit for the export of dogs and cats 
(pets)  01 Public health  SENASA  
Permit for the export of controlled 
substances such as precursors, essential 
chemical substances, and machinery 
and accessories used for producing 
narcotics and psychotropic substances in 
tablet or capsule form  n.a. Narcotics control  Office of the President  
n.a. Not available . 
Source:  WTO documents G/MA/QR/N/CRI/1 of 8  October  2012, G/MA/QR/N/CRI/1/Corr.1 of 
27 February  2013, G/MA/QR/N/CRI/2 of 9  October  2014 and  G/MA/QR/N/CRI/3 of 24  October  2018.  
  
  WT/TPR/S/392 • Costa Rica  
 
- 154 - Table A4. 1 Main provisions on air services, 2018  
 
Agreements on air 
services  
Memorandum of 
understanding  Passenger  Cargo  
Charter  
Designation of 
carriers  
Prices  
Withholding  
Cooperation 
agreement  Fifth freedom  
Capacity  
Fifth freedom  
Capacity  
Argentina   1997 
2003 With rights  Pre-determined  With rights  Pre-determined  Yes Multiple  Dual approval by the aeronautical authorities  Not indicated  Yes 
Belgium   2010 With rights  Free With rights  Free Yes Multiple  Not indicated  Not indicated  Not 
indicated  
Bolivia   1995 With rights  Pre-determined  With rights  Pre-determined  Yes Multiple  Dual disapproval by the aeronautical 
authorities  Not indicated  Not 
indicated  
Brazil  2011 2011 With rights  Free With rights  Free Yes Multiple  Free pricing  Effective control  Yes 
Canada  2011  With rights  Free With rights  Free Yes Multiple  Free pricing  Majority ownership and effective 
control  Yes 
Chile 1999  With rights  Free With rights  Free Yes Multiple  Free pricing  Majority ownership and effective 
control  Yes 
China   2013 With rights  Pre-determined  With rights  Pre-determined  Yes Multiple  Dual approval by the aeronautical authorities  Majority ownership and effective 
control  Yes 
Colombia  2015 2011 With rights  Free With rights  Pre-determined  Yes Multiple  Country of origin (the State in which the 
transportation starts must approve the price)  Effective control  Yes 
Cuba   2000 With rights  Pre-determined  With rights  Pre-determined  Yes Single  Dual disapproval by the aeronautical 
authorities  Majority ownership and effective 
control  Yes 
Dominican 
Republic   1991 With rights  Pre-determined  With rights  Pre-determined  Not indicated  Single  Dual approval by the aeronautical authorities  Majority ownership and effective 
control  Yes 
Ecuador  2002  With rights  Pre-determined  Without 
rights  n.a. Yes Multiple  Country of origin (the State in which the 
transportation starts must approve the price)  Majority ownership and effective 
control  Yes 
France  2017 2016 With rights  Free With rights  Free Yes Multiple  Free pricing  Effective control  Yes 
Germany   2004 
2018 With rights  Pre-determined  With rights  Pre-determined  Yes Multiple  Not indicated  Not indicated  Yes 
Mexico  1991  With rights  Free With rights  Free Yes Multiple  Dual approval by the aeronautical authorities  Majority ownership and effective 
control  Yes 
Netherlands  1994 
2018  With rights  Pre-determined  With rights  Pre-determined  Yes Multiple  Dual approval by the aeronautical authorities  Majority ownership and effective 
control  Yes 
Panama  2013 2013 With rights  Free With rights  Free Yes Multiple  Free pricing  Effective control  Yes 
Paraguay  2001  With rights  Pre-determined  With rights  Pre-determined  Yes Multiple  Dual approval by the aeronautical authorities  Majority ownership and effective 
control  Yes 
Peru  1997 With rights  Pre-determined  With rights  Pre-determined  Yes Multiple  Dual approval by the aeronautical authorities  Not indicated  Yes 
Qatar  2012 2014 With rights  Pre-determined  With rights  Pre-determined  Yes Multiple  Free pricing  Effective control  Yes 
Singapore   2015 With rights  Free With rights  Free Yes Multiple  Free pricing  Effective control  Yes 
Spain  1979  With rights  Pre-determined  With rights  Pre-determined  Yes Single  Dual disapproval by the aeronautical 
authorities  Majority ownership and effective 
control  Yes 
Switzerland  2017 2017 With rights  Free With rights  Free Yes Multiple  Free pricing  Established within the territory 
and effective control  Yes 
Turkey  2013 2013 With rights  Free With rights  Free Yes Multiple  Free pricing  Established within the territory 
and effective control  Yes 
United Arab 
Emirates  2011 2011 With rights  Free With rights  Free Yes Multiple  Dual disapproval by the aeronautical 
authorities  Effective control  Yes  
  WT/TPR/S/392 • Costa Rica  
 
- 155 -  
Agreements on air 
services  
Memorandum of 
understanding  Passenger  Cargo  
Charter  
Designation of 
carriers  
Prices  
Withholding  
Cooperation 
agreement  Fifth freedom  
Capacity  
Fifth freedom  
Capacity  
United 
Kingdom   1997 With rights  Free With rights  Free Yes Multiple  Dual approval by the aeronautical authorities  Majority ownership and effective 
control  Yes 
United 
States  1997  With rights  Free With rights  Free Yes Multiple  Dual disapproval by the aeronautical 
authorities  Majority ownership and effective 
control  Yes 
Venezuela  1991 1991 With rights  Free With rights  Free Yes Single  Dual approval by the aeronautical authorities  Majority ownership and effective 
control  Yes 
Source:  WTO Secretariat, based on online information from the Directorate General of Civil Aviation (DGAC) (viewed at: http://www.dgac.go.cr/aeronautica_/bilaterales ), and 
information provided by the authorities . 
 
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