G/STR/N/18/CRI  
21 April  2021 
(21-3435) Page: 1/17 
Working Party on State Trading Enterprises   
 
  
STATE TRADING  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVII:4(A) OF THE G ATT 1994  
AND PARAGR APH 1  OF THE UNDERSTANDING ON THE  
INTERPRETATION OF ARTICLE XVII  
COSTA RICA 
The following communication, dated and received on  21 April 2 021, is being circulated at the request 
of the delegation of Costa Rica.  
 
_______________  
 
 
Pursuant to the provisions of Article XVII:4(a) of the G ATT 1994  and paragraph 1 of the 
Understanding on the Interpretation of Article XVII, Costa Rica submits here with its notification 
concerning State trading enterprises . The notification covers the Agro -Industrial Sugar Cane League 
(Liga Agrícola Industrial de la Caña de Azúcar , LAICA) for the period 2018 -2019; the Costa Rican 
Petroleum Refining Company ( Refinadora Costarricense de Petróleo , RECOPE) for 2018 -2019; the 
Livestock Promotion Corporation ( Corporación Ganadera , CORFOGA) for the period 2018 -2019; the 
Costa Rican Coffee Institute ( Instituto del Café de Costa Rica , ICAFE) for the period 2018 -2019; and 
the National Rice Growers Corporation ( Corporación Arrocera Nacional , CONARROZ) for the period 
2018-2019. G/STR/N/18/CRI  
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  REPLIES TO THE QUESTIONNAIRE ON STATE TRADING  
LIGA AGRÍCOLA INDUSTRIAL DE LA CAÑA DE AZÚCAR (LAICA)  
1   ENUMERATION OF STATE TRADING ENTERPRISES  
The Agro -Industrial Sugar Cane League ( Liga Agrícola Industrial de la Caña de Azúcar , LAICA) is a 
non-State public entity, with its own legal personality, that is subject to public law in the exercise of 
its legal powers and duties and to private law in th e conduct of its marketing and other corporate 
activities.  
 
2   REASON AND PURPOSE FOR ESTABLISHING AND MAINTAINING THE STATE 
TRADING ENTERPRISE  
LAICA was created under Law No. 3579 of 4 November 1 965. This law was amended by the 
Organic  Law on Sugar Cane Agriculture and the Sugar Industry (Law No. 7818 of 2 September 1 998) 
and amendments thereto with a view to improving LAICA's operational effectiveness and efficiency.  
 
The provisions of Law No. 7818 seek to maintain equitable relations b etween cane producers and 
sugar mills in order to guarantee each sector a reasonable and fair share, and to organize, in the 
interests of the industry's development and stability, the various factors involved in the production 
of sugar cane and the manufac turing and sale of sugar cane products . 
 
3   DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
LAICA has two divisions : the Corporate Division, governed by public law, and the Marketing Division, 
governed by private law.  
 
The Corporate Division i s managed by a Board of Directors made up of eight members, comprising 
the Minister of Agriculture and Livestock, the Minister of the Economy, Industry and Trade, three 
members appointed by the sugar industry, and three appointed by the cane sector.  
 
The M arketing Division is under the responsibility of the Marketing Board, which is made up of six 
members . The activities under LAICA's responsibility include the marketing of sugar and the by -
products of sugar cane processing . 
 
Regarding the quality control a nd marketing of the product, Law No. 7818 of 2 September  1998 and 
its amendments establish the variables that determine the quality of sugar intended for export, and 
set out LAICA's role in the inspection process, with a view to ensuring the quality of sug ar exports 
(Articles 141 -143).  
 
Under Article 9(f), LAICA is responsible for establishing and allocating the national sugar production 
quota on an annual basis . This quota is equivalent to the domestic sugar consumption recorded in 
the previous season, mul tiplied by a fixed factor of 1.5 . It is allocated among the mills in proportion 
to the reference quotas . The individual production quotas establish the amount and type of sugar to 
be produced within the national sugar production quota for domestic consumpt ion, export or 
stockpiling.  
 
The export quota is divided among the various export markets in consultation with the industry . If 
it benefits the industry, and subject to the conditions prevailing on the markets, the Board of 
Directors may order that the sug ar included in the quota be replaced by alcohol . 
 
Written contracts, duly registered with LAICA, are indispensable for sugar exports . Exports must 
comply with the individual quotas granted for the corresponding sugar crop year.  
 
The Board of Directors determines the periods during which the sugar included in each mill's export 
quota, destined for preferential markets or markets that are covered by international agreements 
approved by Costa Rica, may be exported . 
 G/STR/N/18/CRI  
- 3 - 
  Before authorizing sugar expor ts, LAICA must ensure that they are in conformity with the established 
quota system and that they do not violate any international agreements concluded by Costa Rica or 
affect or impede proper compliance with the quotas granted to Costa Rica in the interna tional sugar 
markets . 
 
Exporters are also required to inform LAICA of the real price of the sugar exported, and LAICA  has 
the authority to reject any sugar export transactions that involve a sales price lower than the 
prevailing international market prices.  
 
In addition to registering their contracts, exporters must also ensure they are entered in the register 
kept by LA ICA for that purpose, and to that end must provide general data concerning the natural 
or legal person in question . 
 
4   STATISTICS  
Statistical information is attached in Annex I.  
   
  G/STR/N/18/CRI  
- 4 - 
 
ANNEX I : LIGA AGRÍCOLA INDUSTRIA DE LA CAÑA DE AZÚCAR (LAICA)  
TABLE  I 
STATE TRADING : STATISTICAL INFORMATION, IMPORTS  
LAICA only reported imports for heading 17.01  amounting to 190.4 tonnes in  2017 and 200 ton nes in  2018.  
TABLE II 
STATE TRADING : STATISTICAL INFORMATION, EXPORTS  
Description 
of product(s)  Year* Total quantity 
exported*  
(50 kg sacks)  Quantity exported by 
State trading 
enterprise  
(50 kg sacks)  Average 
procurement 
price  
(CRC per 50 kg 
sack of sugar)  Average 
representative 
domestic sales  price  
(CRC per 50 kg sack of 
sugar)  Average export 
price  
(USD per 50 kg 
sack of sugar)  National 
production**  
(50 kg 
sacks)  
Sugar  
(17.01)  2017-2018 
2018-2019 4,167,165 
4,047,300 4,167,165 
4,047,300 15,201.38 
14,935.22 22,305 
22,487 22.75 
18.73 8,335,359 
8,344,073 
Source : LAICA.  
* The sugar cane crop year runs from 1 October  to 30 September . 
** Does not include the production/exports of sugar companies with a low level of production in relation to the national total ( LAICA  represents over 95 %). 
TABLE  III 
STATE TRADING : STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
 
Description of product(s)  Year* Domestic purchases by 
State trading enterprise  
(50 kg sacks)  National 
production**  
(50 kg sacks)  Domestic sales by 
State trading 
enterprise  
(50 kg sacks)  National 
consumption**  
(50 kg sacks)  
Sugar  
(17.01)  2017-2018 
2018-2019 8,335,359 
8,344,073 8,335,359 
8,344,073 4,188,254 
4,129,740 4,188,254 
4,129,740 
Source : LAICA.  
* The sugar cane crop year runs from 1 October  to 30 September . 
** Does not include the production/ consumption  of sugar companies with a low level of production in relation to the national total (LAICA represents over 95 %). G/STR/N/18/CRI  
- 5 - 
  REPLIES TO THE QUESTIONNAIRE ON STATE TRADING  
REFINADORA COSTARRICENSE DE PETRÓLEO ( RECOPE)  
1   ENUMERATION OF STATE TRADING ENTERPRISES  
The Costa Rican Petroleum Refining Company ( Refinadora Costarricense de Petróleo S.A ., RECOPE) 
has a legal monopoly on the importation, refining and wholesale distribution of crude oil, fuels 
derived from oil, asphalt and naphtha . RECOPE is a State trading enterprise which was established 
as a joint stock company . All of its shares are held by the State . It is a legal person regulated, as 
far as its commercial activities are concerned, by private law . 
 
The list of products imported and/or marketed by RECOPE during the period 2018 -2019 and their 
tariff headings is as follows : 
 
Product description  Tariff heading  
Crude oil  27.09.00.10.00.00  
Aviation gasoline ( AvGas) 27.10.12.20.00.00  
95 RON gasoline  27.10.12.30.00.22  
91 RON gasoline  27.10.12.30.00.21  
Jet fuel 27.10.12.90.00.11  
Kerosen e 27.10.19.11.00.00  
Heavy naphtha  27.10.19.13.00.10  
Diesel  27.10.19.21.00.90  
Bunker  oil 27.10.19.22.00.00  
IFO-380 27.10.19.22.00.00  
Fuel oil 2% S   27.10.19.23.00.00  
Fuel oil 3% 27.10.19.23.00.00  
Liquefied petroleum gas (LPG)  27.11.12.00.00.10  
Propan e 27.11.12.00.00.90  
Asphalt 27.13.20.00.00.00  
Methyl tertiary -butyl ether (MTBE)  29.09.19.00.00.00  
Gas oil  - 
 
2   REASON AND PURPOSE FOR ESTABLISHING AND MAINTAINING THE STATE 
TRADING ENTERPRISE  
RECOPE has the exclusive right to manage the State monopoly on the importation, refining and 
wholesale distribution of crude oil and derivatives in order to satisfy domestic d emand . This right is 
derived from Law No. 5508 of 8 April 1974 and Law No. 7356 of 2 4 August  1993 (ratification of the 
above -mentioned State monopoly administered by RECOPE).  
 
The importation and marketing of fuels is a strategic national interest . State intervention guarantees 
effective control over fuel price policies ; fuel prices in turn have a powerful impact on the stability 
of the prices of a wide range of other goods and services, hence even a slight increase in fuel prices 
is enough to appreciably a ffect inflation . It follows that, through the intermediary of RECOPE, the 
State performs an important social function, namely to maintain macroeconomic stability . Likewise, 
RECOPE must take proper account of the needs relating to the country's energy progr amme . 
 
3   DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
The monopoly held by RECOPE consists firstly of the exclusive right to import and refine all crude oil 
and oil by -products, and secondly of exclusive wholesale fuel distribution rights . In this connection, 
and in accordance with Executive Decree No. 24943 -MINAE of 1 3 January  1996, wholesale sales are 
defined, for the purposes of establishing the distribution monopoly, in terms of the following 
minimum volumes : G/STR/N/18/CRI  
- 6 - 
  Product s Minimum sales 
volume  
(litres)  
AvGas 1,900 
95 RON gasoline  1,900  
91 RON gasoline  1,900  
Jet fuel 1,900  
Kerosene  1,900  
Heavy naphtha  1,900  
Light naphtha  1,900  
Diesel  1,900  
Heavy diesel  1,900  
Bunker oil  1,900  
IFO-380 25,000 
IFO-180 25,000 
LPG 757 
Asphalt 1,900 
Asphaltic emulsion  1,900 
 
Article  4 of the Regulation under Law No. 6588 (law regulating the activity, objectives and other 
aspects of RECOPE) provides that RECOPE  may sell oil and oil derivatives abroad, provided that 
domestic market requirements are guaranteed . In addition to the above, it should be pointed out 
that, with regard to hydrocarbon exploration and production (national oilfields), Article 36 of the 
Hydrocarbons Law provides that such production shall be used as a matter of priority to cover 
domestic requirements and the national reserve . These requirements are determined by the 
Executive, through the Ministry of Natural Resources, Energy and Mining, and every contractor is 
obliged to sell to the State the amount of output required to satisfy domestic market needs . 
Accordingly, and in view of the monopoly managed by RECOPE, the output of national oilfields must 
be sold to RECOPE on a priority basis.  
 
Furth ermore, Article 6 of Law No. 6588 of 3 0 June 1 981 provides that RECOPE may participate 
individually or jointly in tendering procedures organized by the Directorate -General of Hydrocarbons 
for the exploration and production of hydrocarbons, in accordance wi th the provisions of the 
Hydrocarbons Law.  
 
RECOPE imports, processes and markets all the crude oil and derivatives consumed domestically in 
Costa Rica and exported (the country does not produce oil) . On the basis of its yearly demand 
estimates, RECOPE buy s crude oil and finished products on the international market . Import 
quantities are determined on the basis of local demand and the refining and storage capacity of 
RECOPE plants . Export levels are set principally in the light of storage capacity and the size of 
shipments.  
 
With regard to import prices and resale prices for imported products, RECOPE purchases crude oil 
and oil by -products on the international market on the basis of strict market criteria . These are 
determined by reference to international market prices in the United States Gulf Coast . RECOPE 
issues supply contracts for crude oil and fuel through international competitions ; these have a one 
year limit and prices are negotiated each year in the light of price fluctuations on the  international 
oil market.  
 
Article 4 of Law No. 5508 provides that, given RECOPE's status as a public enterprise (carrying with 
it certain general prerogatives and privileges which it enjoys exclusively or in conjunction with all 
other public entities), t he Ministry of Finance is authorized, on the State's behalf and under its 
responsibility, to give RECOPE the guarantee(s) it needs to obtain financing for its working capital, 
provided that the total amount does not exceed USD 5 ,000,000.00 (five  million  US dollars) . To this 
end, approval must be obtained from the Central Bank of Costa Rica and loans must be negotiated 
with leading banks and institutions.  G/STR/N/18/CRI  
- 7 - 
  Lastly, RECOPE has an obligation, which also takes the form of a right, to engage in an activity 
related  to its principal, statutory and routine corporate activity when situations arise requiring the 
efficient and effective supply of fuels in the national interest . This obligation and right is derived 
directly from Article  5.1 of Law No. 5508, which in turn comes within the framework of the public 
objectives assigned to RECOPE . For example, RECOPE would be required to engage in wholesale 
distribution activity when there is a need for an effective supply at that level and development of 
the activity is affecte d by serious or unexpected problems.  
 
RECOPE calculates fuel prices on the basis of the principle of service at cost, pursuant to Article 3(b) 
of Law No. 7593 (Public Services Act) ; these must be approved by the Public Services Regulatory 
Authority (ARESEP ), in accordance with Laws No. 6588 and No. 7593. Export sales prices are set by 
RECOPE on the basis of prescribed formulae which take both local prices and prices on other markets 
into consideration ; these are not controlled by the ARESEP.  
 
In conclusion,  as regards market structure, RECOPE - as mentioned earlier - has a monopoly on the 
importation and domestic distribution of petroleum products given that it was granted exclusive 
statutory powers to these ends . The situation is different with regard to ex ports, since any natural 
or legal person who buys products from RECOPE can resell them for export to another country . 
However, this type of transaction is not at all common.  
 
4   STATISTICS  
Statistical information is attached in Annex II . 
   
  G/STR/N/18/CRI  
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ANNEX II: REFINADORA COSTARRICENSE DE PETRÓLEO  
TABLE  I.A 
 
STATE TRADING : STATISTICAL INFORMATION, IMPORTS  
 
2018 
 
Product 
description  Description of 
product(s) 
(including HS 
number(s))  Total quantity 
imported 
(barrels ) Quantity imported 
by State trading 
enterprise1 
(barr els) Average import 
price 
(USD/barr el) Average 
representative 
domestic sales 
price (USD/barr el) Mark -up 
(USD/barr el) National 
production  
AvGas  27.10.12.20.00.00  7,650  7,650  157.25  256.32  99.07  - 
95 RON gasoline  27.10.12.30.00.22  4,048,583  4,048,583  81.41  165.63  84.22  - 
91 RON gasoline  27.10.12.30.00.21  3,778,643  3,778,643  78.69  158.73  80.05  - 
Jet fuel 27.10.12.90.00.11  1,703,835  1,703,835  86.41  113.33  26.92  - 
Diesel 0.0015% 
S 27.10.19.21.00.90  7,722,233  7,722,233  84.34  136.01  51.66  - 
Fuel oil 3% S  27.10.19.23.00.00  759,387  759,387  62.87  73.92  11.05  - 
Fuel oil 2% S  27.10.19.23.00.00  67,198  67,198  65.01  82.79  17.78  - 
LPG 27.11.12.00.00.10  1,955,732  1,955,732  45.07  57.67  12.60  - 
Propane  27.11.12.00.00.90  4,611  4,611  62.90  61.69  -1.20 - 
Asphalt AC -30 27.13.20.00.00.00  706,561  706,561  67.99  79.59  11.60  - 
MTBE  29.09.19.00.00.00  29,953  29,953  105.15  - - - 
 Notes: 
1. Import data are expressed in barrels and the average price  data in USD per barrel . 
2. MTBE is used as an oxygenate in 95 RON gasolin e and is therefore not sold separately.  
3. The average domestic price corresponds to the annual average at the point of sale  and includes taxes and RECOPE's operating margin as approved by the ARESEP.  
4. The differe nces in the margin observed among products are due to the  fact that the single tax on fuel is not the same for each product and that a subsidy for 
asphalts, LPG and bunker oil exists under the diesel  and gasoline sectoral policy . 
5. The sole product produc ed by RECOPE is the asphaltic emulsion  in various forms . However, this product was not imported in 2018 and 2019, but should have been 
imported  in part in 2020 . 
    
  G/STR/N/18/CRI  
- 9 - 
 
 
TABLE  I.B 
 
STATE TRADING : STATISTICAL INFORMATION, IMPORTS  
 
2019 
 
Product 
description  Description of 
product(s) 
(including HS 
number(s))  Total quantity 
imported 
(barrels)  Quantity imported 
by State trading 
enterprise1 
(barrels)  Average 
import price 
(USD/barrel)  Average 
representative 
domestic sales 
price 
(USD/barrel)  Mark -up 
(USD/barrel)  National 
production  
AvGas  27.10.12.20.00.00  8,810  8,810  147.27  254.93  107.67  - 
95 RON gasoline  27.10.12.30.00.22  4,519,951  4,519,951  73.95  155.70  81.74  - 
91 RON gasoline  27.10.12.30.00.21  4,196,248  4,196,248  72.39  149.84  77.45  - 
Jet fuel 27.10.12.90.00.11  1,947,056  1,947,056  80.55  105.17  24.63  - 
Diesel 0.0015% S  27.10.19.21.00.90  7,745,113  7,745,113  79.44  129.61  50.17  - 
Fuel oil 3% S  27.10.19.23.00.00  691,144  691,144  57.02  69.52  12.50  - 
Fuel oil 2% S  27.10.19.23.00.00  155,272  155,272  72.33  92.15  19.82  - 
LPG 27.11.12.00.00.10  2,180,882  2,180,882  29.82  40.88  11.06  - 
Asphalt AC -30 27.13.20.00.00.00  710,115  710,115  65.70  80.68  14.98  - 
MTBE  29.09.19.00.00.00  24,057  24,057  77.96  - - - 
Notes: 
1. Import data are expressed in barrels and the average price data in USD per barrel.  
2. MTBE is used as an oxygenate in 95 RON gasoline and is therefore not sold separately.  
3. The average domestic price corresponds to the annual average at the point of sale  and includes taxes and RECOPE's operating margin as approved by the ARESEP.  
4. The differences in the margin observed among products are due to  the fact that the single tax on fuel is not the same for each product and that a subsidy for 
asphalts, LPG and bunker oil exists under the diesel and gasoline sectoral policy.  
5. The sole product produced by RECOPE is the asphaltic emulsion in various for ms. However, this product was not imported in 2018 and 2019, but should have been 
imported in part in 2020 . 
    
  G/STR/N/18/CRI  
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TABLE  II 
 
STATE TRADING : STATISTICAL INFORMATION, EXPORTS  
 
RECOPE made no exports in 2018 or 2019.  
 
TABLE III.A  
 
STATE TRADING : STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
 
2018 
 
Product description  Tariff heading  Domestic 
purchases  
by RECOPE  
(m3)  National 
production  
and 
blending  
(m3)  Domestic sales  
by RECOPE  
(m3)  National  
consumption  
(m3) 
 
AvGas  27.10.12.20.00.00  - - 1,257  1,257  
95 RON gasoline  27.10.12.30.00.22  - - 665,875  665,875  
91 RON gas oline 27.10.12.30.00.21  - - 629,819  629,819  
Jet fuel 27.10.12.90.00.11  - - 272,110  272,110  
Kerosene  27.10.19.11.00.00  - - 7,132  7,132  
Heavy naphtha  27.10.19.13.00.10  - - 0 0 
Diesel  27.10.19.21.00.90  - - 1,233,245  1,233,245  
Bunker oil  27.10.19.22.00.00  - - 116,161  116,161  
IFO-380 27.10.19.22.00.00  - - 0 0 
LPG 27.11.12.00.00.10  - - 322,393  322,393  
Asphalt  27.13.20.00.00.00  - - 112,525  112,525  
Gas oil   - - - 10,846  10,846  
Source : RECOPE, Sales Department . 
Note: "-" indicates  zero. 
    
  G/STR/N/18/CRI  
- 11 - 
 
TABLE  III.B  
 
STATE TRADING : STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
 
2019 
 
Product description  Tariff heading  Domestic 
purchases  
by RECOPE  
(m3)  National 
production  
and 
blending  Domestic sales  
by RECOPE  
(m3)  National  
consumption  
(m3) 
(m3) 
AvGas  27.10.12.20.00.00  - - 1,281  1,281  
95 RON gasoline  27.10.12.30.00.22  - - 686,865  686,865  
91 RON gas oline 27.10.12.30.00.21  - - 660,546  660,546  
Jet fuel 27.10.12.90.00.11  - - 289,336  289,336  
Kerosene  27.10.19.11.00.00  - - 5,920  5,920  
Heavy naphtha  27.10.19.13.00.10  - - 0 0 
Diesel  27.10.19.21.00.90  - - 1,224,166  1,224,166  
Bunker oil  27.10.19.22.00.00  - - 123,447  123,447  
IFO-380 27.10.19.22.00.00  - - 0 0 
LPG 27.11.12.00.00.10  - - 342,062  342,062  
Asphalt  27.13.20.00.00.00  - - 103,386  103,386  
Gas oil   - - - 9,999  9,999  
Source:  RECOPE, Sales Department.  
Note:  "-" indicates zero.  
 G/STR/N/18/CRI  
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  REPLIES TO THE QUESTIONNAIRE ON STATE TRADING  
CORPORACIÓN GANADERA (CORFOGA)  
1   ENUMERATION OF STATE TRADING ENTERPRISES  
The Livestock Promotion Corporation ( Corporación Ganadera , CORFOGA), a non -State public law 
entity with its own legal personality and assets, was created under Law No. 7837 of 5 October 1 998 
to promote livestock production.  
 
CORFOGA does not perform marketing functions, or export or import bovine meat, although it does 
receive re venue generated by a mandatory payment that is required for each animal slaughtered 
for domestic consumption, and for imports of bovine meat and exports of live cattle . The information 
concerning CORFOGA is therefore being submitted for transparency purpos es and without prejudice 
to Costa Rica's legal position in respect of whether or not the enterprise is in compliance with Article 
XVII:4(a) of the G ATT 1994. F or the purposes of this notification, bovine meat shall be understood 
to mean the following:  
 
Product Tariff 
classification  
Live cattle  0102.2  
Meat of bovine animals, fresh or chilled  0201 
Meat of bovine animals, frozen  0202 
 
2   REASON AND PURPOSE FOR ESTABLISHING AND MAINTAINING THE STATE 
TRADING ENTERPRISE  
The existence, maintenance and promotion of bovine livestock, in particular that of small and 
medium -sized producers dedicated to this activity, is of public interest . Accordingly, the Corporation 
seeks to promote sustainable cattle -farming, the development and modernization of this act ivity, 
and increased productivity . The law also seeks to promote and support the technological and 
entrepreneurial restructuring of the livestock sector and the various segments of the agro -industrial 
meat chain ; to draw up and implement plans, programmes and projects for both the promotion of 
sustainable livestock farming, and the generation and application of appropriate technology for 
producer groups.  
 
CORFOGA's other aims include to monitor compliance with national and international agreements, 
treaties , conventions and negotiated outcomes that directly or indirectly affect livestock farming, 
and to ensure that the country is adequately self -sufficient in terms of bovine meat . 
 
3   DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
CORFOGA enjoy s an exclusive or special right or privilege in participating in the administration of 
the "settlement system", which involves the collection of a tax for each animal slaughtered for 
domestic consumption or export ; for each live bovine animal exported ; or for imported bovine meat . 
This money is paid to CORFOGA, which uses the funds for internal administration purposes . The 
money is not distributed among producers, but used for the Corporation's activities.  
 
CORFOGA, in collaboration with the Mi nistry of Agriculture and Livestock, participates in the 
preparation and implementation of plans, programmes and projects to promote bovine livestock . In 
this respect it:  
 
• Generates, compiles, processes, analyses and disseminates statistical information  
• Prepares the technical and economic studies needed to improve the analysis and 
monitoring of livestock -farming activity  
• Participates in the preparation, defining and implementation of livestock -farming policies 
that promote sustainable production  
• Protects th e genetic heritage of bovine livestock ; and 
• Fosters and supports livestock farming, through agreements, loans or donations  G/STR/N/18/CRI  
- 13 - 
  4  STATISTICS  
Not applicable, as CORFOGA does not market, export or import bovine meat . 
 
5  REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE  
CORFOGA does not participate in the marketing of bovine meat or livestock . 
 
  G/STR/N/18/CRI  
- 14 - 
  REPLIES TO THE QUESTIONNAIRE ON STATE TRADING  
INSTITUTO DEL CAFÉ DE COSTA RICA (ICAFE)  
1   ENUMERATION OF STATE TRADING ENTERPRISES  
The Costa Rican Coffee Institute ( Instituto del Café de Costa Rica , ICAFE) is a non -State public entity 
governed by the provisions of Law No. 2762 of 1961 ("Law on Relations between Coffee Producers, 
Processors and Exporters").  
 
ICAFE exercises regulatory authority over the following products : 
 
Product  Tariff 
classification  
Green coffee (c afé oro ) 0901.1130  
 
2   REASON AND PURPOSE FOR ESTABLISHING AND MAINTAINING THE STATE 
TRADING ENTERPRISE  
ICAFE's  objective is to ensure equitable relations among coffee producers, processors and exporters, 
with a view to guaranteeing each sector's rational and effective participation in the coffee industry . 
 
3   DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTER PRISE  
ICAFE exercises regulatory authority over the coffee sector . The National Coffee Congress is ICAFE's 
highest governing and administrative body . The Institute has a Board of Directors made up of nine 
members : five regular members representing the prod uction sector ; one regular member from the 
processing sector ; one regular member from the export sector ; one regular member from the 
roasting sector ; and the Minister of Agriculture and Livestock or a representative of the Executive of 
an equal or higher ranking, appointed by the Government Council.  
 
ICAFE's Board of Directors is authorized to appoint work committees . Furthermore, pursuant to 
Article 103(h) of Executive Decree No. 28018, the Chairman of the Board of Directors has the power 
to appoin t the committees that he believes are needed to study and implement institutional policies . 
 
ICAFE's functions include the following:  
 
• Buying and selling coffee in the country and abroad (although it does not exercise this 
right in practice)  
• Regulating certain aspects of transactions between individuals, for example:  
(i) Authorizing individual export transactions (ICAFE most notably controls the price and 
quality of exported coffee)  
(ii) In the event of a dispute between the buyer and the seller, deter mining material 
impossibility on the grounds of force majeure or unforeseen circumstances ; and 
(iii) Authorizing the purchasing of coffee through channels other than direct purchasing 
through the National Consumption Coffee Exchange  
 
• Officially accrediting entit ies that participate in the coffee sector, such as regional 
chambers, syndicates and unions  
• Managing registers of producers, processors, exporters, roasters and manufacturers that 
engage in the further processing of coffee and its by -products  
• Promoting Cos ta Rican coffee on the domestic market and on international markets  
• Providing coffee producers in areas where there are no processing plants, either directly 
or through other official entities, with the material facilities to process and market their 
produ cts 
• Financing transactions for producers  
• Researching and developing agricultural and industrial technology relevant to coffee 
production and processing  G/STR/N/18/CRI  
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  Individuals may export coffee once ICAFE has approved the respective contract . The aim of such 
approval is to guarantee the quality and price of the exported product . Individuals may import freely 
without any need for prior authorization . 
 
4   STATISTICS  
Not applicable, as ICAFE does not market, export or import coffee.  
 
5   REASON WHY NO FOREIGN TRADE HAS TAKEN P LACE  
ICAFE is authorized to participate in international trade, but, in practice, does not engage in any 
commercial activity . 
 G/STR/N/18/CRI  
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  REPLIES TO THE QUESTIONNAIRE ON STATE TRADING  
CORPORACIÓN ARROCERA NACIONAL (CONARROZ)  
 
1   ENUMERATION OF STATE TRADING ENTERPRISES  
The National Rice Growers Corporation ( Corporación Arrocera Nacional , CONARROZ) is a non -State 
public entity created under Law No. 8285 of  30 May 2002. 
 
 CONARROZ markets the following products : 
 
Tariff heading  Descrip tion 
10.06 Rice  
1006.10  Rice in the husk  (paddy or rough ) 
1006.10.90  Other 
 
2   REASON AND PURPOSE FOR ESTABLISHING AND MAINTAINING  THE STATE 
TRADING ENTERPRISE  
Rice is one of the most widely consumed food products in Costa Rica . CONARROZ was therefore 
created to promote a ll aspects of the rice sector, including agricultural production, agro -industrial 
processing, domestic trade, and exports and imports.  
 
CONARROZ is responsible for regulating relations between agricultural producers and processors in 
such a way as to ensur e the rational, fair and orderly participation of farmers and processors in the 
production, agro -industrial processing, domestic trading, and export and import of rice and its by-
products . 
 
CONARROZ  is authorized by law to assist the Ministry of Agriculture and Livestock (MAG), the 
National Production Council (CNP) and the Ministry of the Economy, Industry and Trade (MEIC) in 
the process of importing and exporting rice in the husk with a view to prev enting supply shortages 
on the domestic market and ensuring food security . 
 
3   DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
CONARROZ is a non -State public law entity, with its own assets, and operational and administrative 
autonomy . Its legal representatives, at both the judicial and extrajudicial level, are the Executive 
Director and the Chairman of the Board of Directors.  
 
Pursuant to Law No. 8285 and its implementing regulations (Executive Decree No. 32968 -MAG), 
CONARROZ is responsible  for compiling and updating statistical information on the rice sector related 
to sowing, production, inventories of rice in the husk and pounded rice stored in processing 
establishments, exports, imports, production costs, and any other type of informatio n that is vital 
for ensuring adequate domestic market supply.  
 
Each month, processors are required to submit sworn declarations to CONARROZ detailing their 
purchases of domestically harvested rice, their sales and the value of these sales, and their rice 
stocks.  
 
Producers and processors are required to pay a contribution amounting to 1.5 % of the price of the 
clean and dry in -the-husk or pounded rice that is delivered . Of this contribution, 0.75 % must be 
paid by the producer and 0.75 % by the processor, with in eight working days from when the rice is 
received . This amount, paid to CONARROZ, enables the entity to meet its operating costs, strengthen 
producer and processor organizations, and finance research, outreach, technological innovation and 
training proj ects in accordance with each region's contribution to domestic rice production . 
 
CONARROZ  has a permanent information and research system, and conducts technical studies that 
make it possible to ascertain in advance where overproduction or production shortfalls will occur . The 
results of these studies must be notified to the MAG or the MEIC wi th a view to the determination of 
supply requirements and the opening of a quota . 
 G/STR/N/18/CRI  
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  Rice in the husk imported due to rice shortages is distributed among processors by CONARROZ on the 
basis of the amounts of domestically produced rice purchased during the pr evious rice year.  
 
When importing clean, dry in -the-husk or pounded rice, a contribution amounting to 1.5 % of the price 
must be paid to CONARROZ . The document confirming this payment must be shown in order to bring 
the goods into the country . 
 
4   STATISTICS  
CONARROZ has the legal authority to import quotas to cover supply shortfalls . The following imports 
were made during the period in question : 
 
• Executive Decree  No. 40783 -MAG-COMEX -MEIC authoriz ed the importation of 
42,176 metric tonnes (MT) of rice in the husk (code 1006.10.9000), with an import tariff 
rate of 0%. This volume could be imported  between January and June 2 018. 
• Executive Decree No. 41067 -MAG-COMEX -MEIC amend ed Decree No. 40783 -MAG-
COMEX -MEIC, increas ed the volu me to be imported to 62,507 MT and extend ed the import 
period until August 2 018. 
• Executive Decree No. 41466 -MAG-MEIC-COMEX  authoriz ed the importation of 44,403 MT 
of rice in the husk (code 1006.10.9000), with an import tariff rate of 0 %. This volume 
could be imported between January and June 2 019. 
• Executive Decree No. 41945 -MAG-MEIC-COMEX authoriz ed the importation of 19,520 MT 
of rice in the husk ( code 1006.10.9000), with an import tariff rate of  0%. This volume 
could be imported  between August 2 019 a nd June 2 020. 
• Executive Decree No. 42226 -MAG-MEIC-COMEX amend ed Decree No. 41945 -MAG-MEIC-
COMEX and increas ed the volume to be imported to 39,662 MT. 
 
5   REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE  
CONARROZ  did not export rice, nor did it participate in the marketing of rice at the domestic level  
over the period in question . 
 
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